Document:

Exhibit 10.28

 

SECOND RESTATED COLLABORATION AGREEMENT

 

THIS
SECOND RESTATED COLLABORATION AGREEMENT (this “Agreement”), dated as of April 12,
2004, the “Revision Date”, is made between ABGENIX, INC., a Delaware
corporation (“ABX”), having a place of business at 7601 Dumbarton Circle,
Fremont, California 94555, and CURAGEN CORPORATION, a Delaware corporation (“CuraGen”),
having a place of business at 555 Long Wharf Drive, New Haven, Connecticut
06511, with respect to the following facts:

 

RECITALS

 

A. The
parties entered into the Collaboration Agreement effective as of December 8,
1999 (the “Original Agreement”) and a Restated Collaboration Agreement
effective as of November 27, 2000, as subsequently amended on January 23,
2001, January 16, 2002 and January 10, 2003 (the “Restated Agreement”).

 

B. The
parties desire to amend the Restated Agreement in certain respects effective as
of the date hereof, and for convenience to restate the Restated Agreement, on
the terms and conditions set forth below.

 

NOW
THEREFORE, in consideration of the foregoing premises and the mutual covenants
set forth below, the parties amend the Restated Agreement and agree as follows:

 

1. DEFINITIONS

 

For
purposes of this Agreement, the terms set forth in this Article 1 shall
have the respective meanings set forth below:

 

1.1 “ABX
In-License” shall mean a license, sublicense or other agreement under which
ABX acquired rights to the ABX Patent Rights or ABX Know-How, specifically
including (a) that certain license agreement between ABX and the Medical
Research Council, dated December 14, 1998 (as amended or restated from
time to time), (b) that certain license agreement between ABX and Babraham
Bioscience Technologies Limited dated May 14, 2002 (as amended or restated
from time to time) and (c) that certain license agreement between ABX and
ImmunoGen, Inc. dated September 5, 2000 (as amended or restated from
time to time) (the “ImmunoGen Agreement”) .

 

1.2 “ABX
Know-How” shall mean, collectively, all inventions, discoveries, data,
information, methods, techniques, technology and other results, whether or not
patentable but which are not generally known, regarding ABX Technology and
Information. All ABX Know-How shall be Confidential Information of ABX.

 

1.3 “ABX
Licensed Antigens” shall mean all ABX Optioned Antigens for which ABX has
exercised an option to obtain a commercial license pursuant to Article 7
below, and “ABX Licensed Antigen” shall mean any one of the ABX Licensed
Antigens.

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

 

1.4 “ABX
Optioned Antigens” shall mean all antigens which are selected from the
Eligible Antigens by ABX pursuant to Article 5 below (or otherwise
pursuant to the Extended Research Program), for which CuraGen has the right to
grant ABX the commercial license under Article 7 below, and which are not
Licensed Antigens, and “ABX Optioned Antigen” shall mean any one of the ABX
Optioned Antigens.

 

1.5 “ABX
Patent Claim” shall mean a Patent Claim within the Licensed ABX
Intellectual Property Rights.

 

1.6 “ABX
Patent Rights” shall mean, collectively, (a) all patents and patent applications
listed on Exhibit A and any foreign counterparts claiming priority
thereof; (b) all patent applications heretofore or hereafter filed in any
country which claim (and only to the extent they claim) ABX Technology and
Information or the use thereof; (c) all patents that have issued or in the
future issue from any of the foregoing patent applications, including without
limitation utility models, design patents and certificates of invention; and (d) all
divisionals, continuations, continuations-in-part, reissues, renewals,
supplemental protection certificates, extensions or additions to any such
patents and patent applications.

 

1.7 “ABX
Product” shall mean, with respect to any ABX Licensed Antigen, any product
comprising (a) an Antibody or Antibody Equivalent which binds to such ABX
Licensed Antigen; or (b) Genetic Material that encodes such an Antibody or
Antibody Equivalent, wherein, in respect of each ABX Product, said Genetic
Material does not encode multiple antibodies.

 

1.8 “ABX
Technology and Information” shall mean, collectively, (a) [*******************************];
(b) [*******************************]; (c) [*******************************],
and (d) [*******************************].
[*****************************************************************].

 

1.9 “Affiliate”
shall mean, with respect to any person or entity, any other person or entity
which controls, is controlled by or is under common control with such person or
entity. A person or entity shall be regarded as in control of another entity if
it owns or controls at least fifty percent (50%) of the equity securities of
the subject entity entitled to vote in the election of directors (or, in the
case of an entity that is not a corporation, for the election of the
corresponding managing authority).

 

1.10 “Antibody”
shall mean a composition comprising (a) a whole antibody, or any fragment
thereof, derived from the XenoMouse Animals hereunder; or (b) a whole
antibody, or any fragment thereof, which is derived from a whole antibody or
any fragment thereof, which itself is derived from the XenoMouse Animals
hereunder or which is derived from the Genetic Material encoding or derived
from, or the amino acid sequences of or derived from, a whole antibody or any
fragment thereof, which itself is derived from the XenoMouse Animals hereunder.

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

2

 

1.11 “Antibody
Cells” shall mean all cells that contain, express, or secrete antibodies or
Genetic Materials that encode antibodies.

 

1.12 “Antibody
Equivalent” shall mean (i) [***************************], or (ii) [***************************].
For purposes of clarification, the following are not [**************]: (a) [*******************************************]
and (b) [*******************************************].

 

1.13 “Antigen
Specific Materials and Information” shall mean with respect to an Antigen,
collectively, (a) [***********************************************]; and (b) [*********************************************].

 

1.14 “Antigens”
shall mean, collectively, the Research Antigens, Eligible Antigens, Optioned
Antigens and Licensed Antigens, and “Antigen” shall mean any one of the
Antigens.

 

1.15 “BLA”
shall mean a Biologics License Application, Product License Application, New
Drug Application, or similar application for marketing approval of a product
for use in the Therapeutic Field submitted to the FDA, or its foreign
equivalent.

 

1.16 “Commercial
Field” shall mean, collectively, the Therapeutic Field and the Diagnostic
Field.

 

1.17 “Confidential
Information” shall mean, with respect to a party, all information of any
kind whatsoever, and all tangible and intangible embodiments thereof of any
kind whatsoever, which is disclosed by such party to the other party pursuant
to this Agreement, and (if disclosed in writing or other tangible medium) is
marked or identified in writing as confidential at the time of disclosure to
the receiving party or (if otherwise disclosed or if not so marked or
identified in writing) is identified as confidential at the time of disclosure
to the receiving party and is summarized and identified as confidential in
writing or by electronic means within thirty (30) days after such disclosure.
Notwithstanding the foregoing, Confidential Information of a party shall not
include information which, and only to the extent, the receiving party can
establish by written documentation or electronic records (a) has been
publicly known prior to disclosure of such information by the disclosing party
to the receiving party; (b) has become publicly known without fault on the
part of the receiving party, subsequent to disclosure of such information by
the disclosing party to the receiving party; (c) has been received by the
receiving party at any time from a source, other than the disclosing party,
rightfully having possession of and the right to disclose such information free
of confidentiality obligations; (d) has been otherwise known by the
receiving party free of confidentiality obligations prior to disclosure of such
information by the disclosing party to the receiving party; or (e) has
been independently developed (as demonstrated by contemporaneous written or
electronic evidence maintained in the ordinary course of business of the
receiving party) by employees or agents of the receiving party without access
to or use of such information disclosed by the disclosing party to the
receiving party.

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

3

 

1.18 “CuraGen
Databases” shall mean, collectively, all data, information and materials
(other than Research Program Technology and Information) related to human
Genetic Materials and the expression products thereof which as of the Effective
Date are contained in CuraGen’s SeqCalling Database or which at any time during
the term of this Agreement are added thereto. For purposes hereof, the CuraGen
SeqCalling Database shall include without limitation the following data,
information, and materials possessed, acquired or developed by CuraGen as of
the Effective Date or at any time during the term of this Agreement, the
acquisition or development of which has not been sponsored or directed by a
commercial Third Party to whom rights in such data, information, and materials
have been granted in advance (without breaching the exclusivity obligations of
this Agreement): (i) sequence data with respect to human Genetic Materials
(including expressed sequences) and expression products thereof; (ii) the
tissue or cellular distribution relating to such Genetic Materials, their
expression and expression products; (iii) literature publications and patent
status (i.e., information related to CuraGen filing dates, priority of claim(s) and
any related patents and patent applications, and any information known by
CuraGen regarding Third Party patents and patent applications) related to such
Genetic Materials and expression products; (iv) the biological function of
such Genetic Materials and expression products; (v) clones, expression
products, proteins, cell lines and vectors related to such Genetic Materials
and expression products, and (vi) all of the data, information, and
materials described in the foregoing clauses (i) to (v) with respect
to any homologs of such Genetic Materials and expression products. As of the
Effective Date, the CuraGen SeqCalling Database includes at least
[************************************].

 

1.19 “CuraGen
Exclusive Antigen” shall mean an antigen (other than a Research Antigen) or
Research Antigen that is designated by CuraGen as a CuraGen Exclusive Antigen
in accordance with Section 4.6.

 

1.20 “CuraGen
Know-How” shall mean, collectively, all inventions, discoveries, data,
information, methods, techniques, technology and other results, whether or not
patentable but which are not generally known, regarding CuraGen Technology and
Information. All CuraGen Know-How shall be Confidential Information of CuraGen.

 

1.21 “CuraGen
Licensed Antigens” shall mean all CuraGen Optioned Antigens for which
CuraGen has exercised an option to obtain a commercial license pursuant to Article 7
below, and “CuraGen Licensed Antigen” shall mean any one of the CuraGen
Licensed Antigens.

 

1.22 “CuraGen
Optioned Antigens” shall mean all antigens which are selected from the
Eligible Antigens by CuraGen pursuant to Article 5 below (or otherwise
pursuant to the Extended Research Program), for which ABX has the right to
grant CuraGen the commercial license under Article 7 below, and which are
not Licensed Antigens, and “CuraGen Optioned Antigen” shall mean any one of the
CuraGen Optioned Antigens.

 

1.23 “CuraGen
Patent Claim” shall mean a Patent Claim within the Licensed CuraGen
Intellectual Property Rights, other than Patent Claims that are (i) directed
to a method of use of the Research Antigen or antibodies to such antigen that
is initially identified solely

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

4

 

through the use of
Antigen Specific Materials and Information or (ii) enabled solely by data
relating to or supporting a specific indication that was initially identified
solely through the use of the Antigen Specific Materials and Information.

 

1.24 “CuraGen
Patent Rights” shall mean, collectively, (a) all patent applications
heretofore or hereafter filed in any country which claim (and only to the
extent they claim) CuraGen Technology and Information or the use thereof; (b) all
patents that have issued or in the future issue from any of the foregoing
patent applications, including without limitation utility models, design
patents and certificates of invention; and (c) all divisionals,
continuations, continuations-in-part, reissues, renewals, supplemental
protection certificates, extensions or additions to any such patents and patent
applications.

 

1.25 “CuraGen
Product” shall mean, with respect to any CuraGen Licensed Antigen, any
product comprising (a) an Antibody or Antibody Equivalent which binds to
such CuraGen Licensed Antigen, or (b) Genetic Material that encodes such
an Antibody or Antibody Equivalent wherein, in respect of each CuraGen Product,
said Genetic Material does not encode multiple antibodies.

 

1.26 “CuraGen
Technology and Information” shall mean, collectively, (a) [*******************************];
(b) [*********************************]; (c) [*******************************];
and (d) [******************************].
[*************************************************************************].

 

1.27 “Derived”
or “derived” shall mean obtained, developed, created, synthesized,
designed, derived or resulting from, based upon or otherwise generated (whether
directly or indirectly, or in whole or in part).

 

1.28 “Diagnostic
Field” shall mean the use of Products for the following human medical
purposes: the detection, diagnosis and monitoring of [*************],
predisposition, state or condition in humans or the selection of a particular
patient(s) to receive a particular therapeutic treatment(s).

 

1.29 “Effective
Date” shall mean December 8, 1999.

 

1.30 “Eligible
Antigen” shall mean a Research Antigen which satisfies the criteria of Exhibit B
as determined by the JMC pursuant to Section 3.2 below or the arbitrator
pursuant to Section 3.5 below, and which is not an Optioned Antigen.

 

1.31 “Excluded
ABX Technology” shall mean, collectively,
[***********************************] (a) [*********************************];
(b) [********************************]; (c) [***************************];
(d) [***************************]; (e) [***************************];
and (f) [***************************].

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

5

 

1.32 “Excluded
CuraGen Technology” shall mean, collectively,
[*******************************************] (a) [*******************************************];
(b) [***********************************]; and (c) [*******************************************].

 

1.33 “FDA”
shall mean the United States Food and Drug Administration or its successor
agency.

 

1.34 “First
Commercial Sale” shall mean, with respect to each Product in each country,
the date of first commercial sale (other than for purposes of obtaining
regulatory approval) of such Product by a party hereto, its Sublicensee or
their respective Affiliates to an unaffiliated Third Party in such country.

 

1.35 “Gene
Therapy” shall mean the treatment or prevention of a disease by means of Ex
Vivo or In Vivo delivery (via viral or nonviral gene transfer systems) of
compositions comprising either (a) Genetic Material that encodes an
Antibody, wherein such Antibody serves a material function in the treatment or
prevention of such disease; (b) Genetic Material that encodes a moiety
other than an Antibody, wherein the moiety serves a material function in the
treatment or prevention of such disease and wherein such composition
incorporates an Antibody (or Genetic Material that encodes such Antibody),
which Antibody is used as a targeting vehicle for the composition; or (c) Genetic
Material that encodes an Antibody that serves a material function in the
treatment or prevention of such disease, wherein such composition also
incorporates an Antibody (or Genetic Material that encodes such Antibody) which
Antibody is used as a targeting vehicle for the composition. “Ex Vivo” delivery
shall mean the introduction, outside of the body of a human, of such
compositions into a cell, tissue, organoid, or organ, followed by the
administration of the cell, tissue, organoid, or organ which contains such
introduced compositions into the body of the same (autologous) or different
(allogeneic) human, without limitation as to the formulation, anatomic site, or
route of administration or the use of encapsulation or other devices for such
administration. “In Vivo” delivery shall mean the introduction of such
compositions into an individual, without limitation as to the formulation,
anatomic site, or route of administration or the use of encapsulation or other
devices for such administration.

 

1.36 “Genetic
Material” shall mean a nucleic acid, including DNA, RNA, and nucleic acid
complementary and reverse complementary to such nucleotide sequences or nucleic
acid, whether coding or noncoding and whether intact or a fragment.

 

1.37 “GenPharm
Cross License Agreement” shall mean that certain Cross License Agreement
entered into by and between ABX, JTI, XT, Cell Genesys, Inc., and GenPharm
International, Inc., effective as of March 26, 1997, as the same may
be amended from time to time.

 

1.38 “Human
Antibody Equivalent” shall mean (i) [*********************], or (ii) [**********************************].

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

6

 

1.39 “IND”
shall mean an Investigational New Drug application filed with the FDA, or any
similar filing with any foreign regulatory authority, to commence human
clinical testing of any Product in any country.

 

1.40 “JMC”
shall mean the joint management committee comprising representatives of ABX and
CuraGen described in Section 3.1 below.

 

1.41 “JTI”
shall mean Japan Tobacco Inc., a Japanese corporation.

 

1.42 “Licensed
Antigens” shall mean, collectively, the ABX Licensed Antigens and CuraGen
Licensed Antigens, and “Licensed Antigen” shall mean any one of the Licensed
Antigens.

 

1.43 “Licensed
ABX Intellectual Property” shall mean ABX’s rights in the ABX Patent
Rights, ABX Know-How, Research Program Patent Rights and Research Program
Know-How; provided, however, that the Licensed ABX Intellectual Property (a) is
all to the extent and only to the extent that ABX has the right to grant
(sub)licenses thereunder (including without limitation to the extent permitted
under the applicable ABX In-Licenses); (b) is expressly subject to the ABX
In-Licenses; and (c) shall exclude the Excluded ABX Technology.

 

1.44 “Licensed
CuraGen Intellectual Property” shall mean CuraGen’s rights in the CuraGen
Patent Rights, CuraGen Know-How, Research Program Patent Rights and Research
Program Know-How; provided, however, that the Licensed CuraGen Intellectual
Property (a) is all to the extent and only to the extent that CuraGen has
the right to grant (sub)licenses thereunder; and (b) shall exclude the
Excluded CuraGen Technology.

 

1.45 “Licensed
Intellectual Property” shall mean, collectively, the Licensed ABX
Intellectual Property and the Licensed CuraGen Intellectual Property.

 

1.46 “Net
Sales” shall mean, with respect to a Product, the gross sales price charged
by a party, its Sublicensees and their respective Affiliates for sales of such
Product to non-Affiliate customers, less (a) [***************************];
(b) [*****************]; and (c) [**********************************************************************].
[****************************************************************************].

 

1.47 “Optioned
Antigens” shall mean, collectively, the ABX Optioned Antigens and CuraGen
Optioned Antigens, and “Optioned Antigen” shall mean any one of the Optioned
Antigens.

 

1.48 “Patent
Claim” shall mean a claim of a pending patent application (pending for no
longer than five (5) years) or issued and unexpired patent included within
the Licensed Intellectual Property which has not been held unenforceable or
invalid by a court or other governmental agency of competent jurisdiction,
unappealable or unappealed within the time allowed for appeal and which has not
been admitted to be invalid or unenforceable through reissue, disclaimer or
otherwise.

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

7

 

1.49 “Person”
shall mean an individual, corporation, partnership, limited liability company,
trust, business trust, association, joint stock company, joint venture, pool,
syndicate, sole proprietorship, unincorporated organization, governmental
authority or any other form of entity not specifically listed herein.

 

1.50 “Phase
I Clinical Trial” shall mean a human clinical trial in any country that is
intended to initially evaluate the safety and/or pharmacological effect of a
Product in subjects, or that would otherwise satisfy requirements of 21 CFR
312.21(a), or its foreign equivalent.

 

1.51 “Phase
II Clinical Trial” shall mean a human clinical trial in any country that is
intended to initially evaluate the effectiveness of a Product for a particular
indication or indications in patients with the disease or indication under
study, or that would otherwise satisfy requirements of 21 CFR 312.21(b), or its
foreign equivalent.

 

1.52 “Phase
III Clinical Trial” shall mean a pivotal human clinical trial in any
country the results of which could be used to establish safety and efficacy of
a Product as a basis for a marketing approval application submitted to the FDA,
or that would otherwise satisfy requirements of 21 CFR 312.21(c), or its
foreign equivalent.

 

1.53 “PMA”
shall mean a Pre-Market Approval Application, 510(k) notice or similar
application for marketing approval of a product for use in the Diagnostic Field
submitted to the FDA, or its foreign equivalent.

 

1.54 “Products”
shall mean, collectively, the ABX Products and the CuraGen Products, and “Product”
shall mean any one of the Products.

 

1.55 “Program
Year” shall mean any period commencing on the Effective Date or any
anniversary thereof, and continuing through the first anniversary thereof,
during the term of the Research Program.

 

1.56 “Research
Antigens” shall mean, collectively, the antigens which are selected by the
JMC, ABX or CuraGen pursuant to Section 4.1 below for use in the Research
Program, for which ABX and CuraGen have the right to grant the other party the
commercial license under Article 7 below, and which are not Optioned
Antigens or Licensed Antigens, and “Research Antigen” shall mean any one of the
Research Antigens.

 

1.57 “Research
Field” shall mean the use of materials derived from XenoMouse Animals that
are immunized with Research Antigens solely for the creation, identification,
analysis, research, characterization and preclinical development of potential
Products for use in the Commercial Field.

 

1.58 “Research
Program” shall mean the collaborative research program described in Section 4.4
below

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

8

 

1.59 “Research
Program Know-How” shall mean, collectively, all inventions, discoveries,
data, information, methods, techniques, technology and other results, whether
or not patentable but which are not generally known, regarding Research Program
Technology and Information or the use thereof.

 

1.60 “Research
Program Technology and Information” shall mean, with respect to an Antigen,
collectively, (a) [*******************************************]; and (b) [*******************************************].

 

1.61 “Research
Program Patent Rights” shall mean, collectively, (a) all patent
applications hereafter filed in any country which claim Research Program
Technology and Information or the use thereof; (b) all patents that have
issued or in the future issue from any of the foregoing patent applications,
including without limitation utility models, design patents and certificates of
invention; and (c) all divisionals, continuations, continuations-in-part,
reissues, renewals, supplemental protection certificates, extensions or
additions to any such patents and patent applications.

 

1.62 “Royalty
Commencement Date” shall mean, with respect to each Product in each
country, the date of the First Commercial Sale of such Product in such country.

 

1.63 “Sublicense”
shall mean, with respect to a Product, an agreement or arrangement pursuant to
which a (sub)license or distribution right regarding such Product has been
granted to a Sublicensee.

 

1.64 “Sublicense
Income” shall mean, with respect to a Product, the aggregate cash
consideration, and the fair market value of the non-cash consideration,
received by a party or its Affiliate in connection with the Sublicense of such
Product, excluding consideration received (a) in reimbursement of such
party’s or its Affiliate’s cost to perform research, development or similar
services conducted for such Product after the grant of such Sublicense, (b) in
reimbursement of patent or other out-of-pocket expenses on such Product, or (c) in
consideration for the purchase of any securities of such party or its
Affiliates at a price equal to no more than 120% of the then fair market value
of such securities).

 

1.65 “Sublicensee”
shall mean a Third Party that is granted (a) a (sub)license under the
Licensed Intellectual Property to develop, make, use, offer for sale, sell or
import a Product in the Commercial Field; or (b) a right to distribute a
Product in the Commercial Field, provided that such Third Party is responsible
for marketing and promotion of such Product within the applicable territory.

 

1.66 “Technology
and Information” shall mean, collectively, the ABX Technology and
Information, CuraGen Technology and Information and Research Program Technology
and Information.

 

1.67 “Therapeutic
Field” shall mean the use of Products for the following human medical
purposes: the prevention or treatment of [***************************].

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

9

 

1.68 “Third
Party” shall mean any Person other than ABX, CuraGen and their respective
Affiliates.

 

1.69 “XenoMouse
Animals” shall mean the transgenic mice capable of producing human
antibodies when immunized by ABX with an antigen.

 

1.70 “XT”
shall mean Xenotech, L.P., a California limited partnership.

 

1.71 “XT
Master Research License and Option Agreement” shall mean that certain
Master Research License and Option Agreement entered into by and among XT, JTI
and Cell Genesys, Inc. effective as of June 28, 1996, and
subsequently assigned to ABX by Cell Genesys, Inc., as the same may be
amended from time to time.

 

1.72 “XT/ABX
Product License Agreement” shall mean a license agreement between XT and
ABX entered into pursuant to the XT Master Research and License Agreement
granting to ABX a license (with the right to grant sublicenses) to
commercialize Products in one or more territories.

 

1.73 “Conjugate”
shall mean a specific composition, as mutually agreed upon by the parties in
writing, which ABX owns or to which ABX otherwise has rights (including the
right to grant sublicenses to CuraGen hereunder) to be conjugated to one or
more Antibodies hereunder. “DM1”, as defined under the ImmunoGen Agreement, is
the initial Conjugate.

 

1.74 “Imaging
Peptide” shall mean a peptide that (a) is less than fifty (50) amino
acids in length, and (b) is not derived from an Antibody Equivalent.

 

1.75 “Lambda
Antibodies” shall mean Antibodies derived from the Lambda XenoMouse Animals
hereunder comprising a human lambda light chain.

 

1.76 “Lambda
Licensed Antigen” shall mean an Optioned Antigen that is designated as a
Lambda Licensed Antigen at the time CuraGen exercises an option to take a
commercial license to such Optioned Antigen under Article 7.

 

1.77 “Lambda
Optioned Antigen” shall mean an Optioned Antigen for which Lambda XenoMouse
Animals will or may be immunized under the Research Program and designated as
such pursuant to Section 5.

 

1.78 “Lambda
XenoMouse Animals” shall mean XenoMouse Animals that are transgenic for a
portion of the human lambda light chain immunoglobulin locus and produce human
lambda light chain-containing immunoglobulin molecules.

 

1.79 “Specifically
Binds” refers to those antibodies that have a minimum affinity (KD value)
of [******] (as measured by standard techniques such as the BIAcore) toward a
specified antigen and do not bind to related isozymes, proteins or antigens
with an affinity of better than 1 uM.

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

10

 

2. REPRESENTATIONS AND WARRANTIES

 

Each party
hereby represents and warrants to the other party as follows:

 

2.1 Existence.
Such party is duly organized, validly existing and in good standing under the
laws of the state in which it is organized.

 

2.2 Authorization
and Enforcement of Obligations. Such party: (a) has the requisite
power and authority and the legal right to enter into this Agreement and to
perform its obligations hereunder; and (b) has taken all requisite action
on its part to authorize the execution and delivery of this Agreement and the
performance of its obligations hereunder. This Agreement has been duly executed
and delivered on behalf of such party, and constitutes a legal, valid, binding
obligation enforceable against such party in accordance with its terms except
as enforcement may be limited by equitable remedies or defenses and applicable
bankruptcy laws.

 

2.3 No
Consents. All necessary consents, approvals and authorizations of all
governmental authorities and other persons required to be obtained by such
party in connection with this Agreement have been obtained.

 

2.4 No
Conflict. The execution and delivery of this Agreement and the performance
of such party’s obligations hereunder (a) do not conflict with or violate
any requirement of applicable laws or regulations; and (b) do not conflict
with, or constitute a default under, any contractual obligation of it.

 

2.5 ABX
In-Licenses. ABX has made available to counsel to CuraGen correct copies of
ABX In-Licenses, as in effect on the Effective Date.

 

2.6 Disclaimer.
EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER PARTY MAKES
ANY REPRESENTATIONS OR EXTENDS ANY WARRANTIES OF ANY KIND REGARDING TECHNOLOGY
AND INFORMATION, PRODUCTS OR LICENSED INTELLECTUAL PROPERTY EITHER EXPRESS OR
IMPLIED, INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE, NONINFRINGEMENT OR VALIDITY. ALL TECHNOLOGY AND
INFORMATION IS PROVIDED “AS IS.”

 

3. JOINT MANAGEMENT COMMITTEE

 

3.1 Composition.
The JMC shall comprise three (3) named representatives of CuraGen and
three (3) named representatives of ABX. Each party shall notify the other
party in writing of its initial representatives to the JMC within ten (10) days
after the Effective Date, and may substitute one or more representatives from
time to time effective upon written notice to the other party.

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

11

 

3.2 Responsibilities.
The JMC shall be responsible for (a) selecting antigens from the CuraGen
Databases as Research Antigens; (b) monitoring and reporting the progress
of the Research Program; (c) recommending to the parties any modifications
to the Research Program with respect to any or all of the Research Antigens; (d) facilitating
open and frequent exchange of information between the parties regarding the
Research Program; (e) reviewing the data and information regarding
Research Antigens and determining whether a Research Antigen satisfies the
criteria set forth in Exhibit B; and (f) making selections of
Eligible Antigens under Article 5 below. The JMC shall also be responsible
for discussing potential Conjugates that are to be utilized in the Research
Program; provided, however, that no Conjugate shall be utilized in the Research
Program until the parties have mutually agreed in writing (i) that such
Conjugate shall be used in the Research Program, and (ii) those specific
one or more Antibodies with which such Conjugate will be utilized.

 

3.3 Meetings.
The JMC shall meet in person (unless otherwise agreed on a meeting-by-meeting
basis) not less than once each calendar quarter during the term of the Research
Program, on such dates and at such times and places as agreed to by CuraGen and
ABX, alternating between Fremont, California and New Haven, Connecticut, or
such other locations as the parties mutually agree. For all other meetings, the
JMC may meet by telephonic or video conference or in person, as the parties
mutually agree. Each party shall have the right to have one (or such greater
number as the parties mutually agree) employee or agent who is not a member of
the JMC attend each meeting of the JMC as a non-voting observer. Each party
shall be responsible for all its own personnel, travel and related expenses
relating to JMC meetings. The first meeting of the JMC shall take place at the
offices of ABX as soon as practicable after the Effective Date, but in no event
later than thirty (30) days after the Effective Date.

 

3.3.1
Within thirty (30) days following each JMC meeting, the party hosting the
meeting (or entitled to host the meeting, if held by telephonic or video
conference or at a location other than Fremont, California or New Haven,
Connecticut) shall prepare and provide to the other party mutually acceptable,
reasonably detailed written minutes describing (a) all matters reviewed or
considered by the JMC; (b) all discussions regarding potential and actual
Antigens; and (c) all determinations and actions of the JMC and the
reasons therefor. Such minutes shall be the Confidential Information of both
ABX and CuraGen; provided, however, that to the extent that such
minutes relate to the Optioned Antigens and Licensed Antigens of a party they
shall be the Confidential Information solely of such party.

 

3.3.2
Not less than ten (10) days prior to each regularly scheduled quarterly
meeting of the JMC, each party shall provide the other party with all data and
information, not previously disclosed to the other party, regarding the
activities of such party under the Research Program.

 

3.3.3
Not less than five (5) days prior to each regularly scheduled meeting of
the JMC, each party shall provide the other party with a list of the antigens
that such party desires to discuss at such JMC meeting for potential use in the
Research Program.

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

12

 

3.4 Actions.
ABX and CuraGen each shall be entitled to cast one vote on matters before the
JMC. Decisions of the JMC shall be made by unanimous approval.

 

3.5 Disagreements.
All disagreements within the JMC shall be resolved in the following manner:

 

3.5.1
Promptly upon receipt of written notice (a “Dispute Notice”) from one party to
the other of a disagreement to be resolved under this Paragraph 3.5, the JMC
representatives of each party promptly shall present the disagreement to the
chief executive officer of such party.

 

3.5.2
The chief executive officers of each party thereafter shall meet to discuss
each party’s view and to explain the basis for their respective positions of
such disagreement, and in good faith shall attempt to resolve such disagreement
among themselves.

 

3.5.3
If, within thirty (30) days after receipt of a Dispute Notice as to whether a
Research Antigen satisfies the criteria of Exhibit B, the chief executive
officers of each party cannot resolve such disagreement, then upon written
notice from one party to the other party, such disagreement shall be settled as
follows. Within forty five (45) days after receipt of such Dispute Notice, the
parties shall attempt to mutually agree upon a single independent Third Party
arbitrator, who shall be a scientific professional in the antibody field, to
resolve such disagreement. If the parties are unable to mutually agree upon one
such person, then each party shall appoint one independent Third Party
scientific professional in the antibody field prior to the expiration of such
forty five (45) day period, and within sixty (60) days after receipt of such
Dispute Notice, such person(s) shall select a single independent Third
Party arbitrator, who shall be a scientific professional in the antibody field,
to resolve such disagreement. Each party shall present all information
presented to the JMC and all other information as such party reasonably desires
regarding such disagreement. Within ninety (90) days after receipt of such
Dispute Notice, such arbitrator shall determine whether such Research Antigen
satisfies the criteria of Exhibit B and provide written notice to the
parties regarding such determination.

 

4. RESEARCH ANTIGEN IDENTIFICATION AND RESEARCH

 

4.1.1 Searches
for Research Antigens. During the term of the Research Program, CuraGen
shall have primary responsibility for the screening of the CuraGen Databases
and shall conduct searches thereof to identify and recommend to the JMC
potential antigens of interest hereunder. CuraGen shall recommend to the JMC
all antigens of interest (whether or not the genes encoding such antigens are
contained in the CuraGen Databases) that, based on the data and information in
the CuraGen Databases and such other data and information as CuraGen may have
acquired or developed, (i) CuraGen reasonably believes is not the subject
of any Third Party intellectual property rights (or the parties mutually believe,
as evidenced by written agreement, that a license to all applicable Third Party
intellectual property rights can be

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

13

 

reasonably obtained), (ii) CuraGen
reasonably believes could be subject (or the parties mutually believe, as
evidenced by written agreement, that the antibodies to which could be subject)
to a proprietary position of CuraGen, (iii) CuraGen reasonably believes
would be available hereunder as a Research Antigen, and (iv) CuraGen
reasonably believes is reasonably likely to have potential as a target for
antibody-based therapeutics. In addition, CuraGen will use its best efforts to
recommend to the JMC antigens that would have an IP Score (as defined below) of
1, 2, or 3 and not 4 or 5 in a sufficient number to allow selection of at least
[*****] Priority Research Antigens per year from the CuraGen Databases. ABX
shall have the right, but not the obligation, to recommend to the JMC antigens
of interest from the CuraGen Databases or from other sources that ABX
reasonably believes are not the subject of Third Party intellectual property
rights and would be available hereunder as Research Antigens and are reasonably
likely to have potential as targets for antibody-based therapeutics.

 

4.1.2 Research
Antigen Selection.

 

During the term of the
Research Program, based upon the data and information provided by the parties
regarding potential antigens of interest, the JMC shall select at any JMC
meeting, from those antigens proposed by the parties under Section 3.3.3
and 4.1, potential antigens of interest for use in the Research Program. With
respect to each potential antigen which is selected, by the action of the JMC,
for use under the Research Program, within thirty (30) days after the date of
such JMC meeting, each party shall notify the other party in writing if such
party does not have the right to grant the other party a commercial license
under Article 7 below for such antigen. Unless a party timely notifies the
other party in writing that it does not have the right to grant the other party
a commercial license under Article 7 below for such antigen, such antigen
thereafter shall be a Research Antigen.

 

4.1.3
Notwithstanding anything to the contrary in this Agreement, if a party gives
written notice to the other party at any time stating that such party does not
have the right to grant the other party a commercial license under Article 7
below for a Research Antigen, then effective thirty (30) days after the receipt
by the other party of such notice, such antigen shall cease to be a Research
Antigen and both parties shall destroy all Antigen Specific Materials and
Information pertaining to such antigen. A party shall give such written notice
to the other party promptly upon the occurrence of the event giving rise to
such party’s not having the right to grant the other party a commercial license
under Article 7, to the extent such party has the right to do so.

 

4.2 Research
Program.

 

4.2.1 Research
Responsibilities. During the term of the Research Program, each party shall
use its commercially reasonable efforts to perform its obligations set forth in
the Work Plan within the time schedules contemplated therein. The JMC may
recommend changes to the allocation of responsibilities set forth in Exhibit C,
from time to time; provided, however, that such changes shall only be effective
if in a written amendment duly executed by both parties. Other than the
activities specified in Exhibit C as being the

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

14

 

responsibility of one
party or another, the JMC shall allocate the responsibility for each such
activity between the parties, taking into account the skills of each party, in
an effort to divide the resources and internal costs reasonably required to be
dedicated by each party to the conduct of such activities
[*******************]. In the event that any activities with respect to
Research Antigens (other than CuraGen Exclusive Antigens), other than those
specified in Exhibit C as being the responsibility of one party or
another, require any payments to a Third Party for goods or services (e.g.,
specific animal models), such payments shall be [*******************], provided
that all such goods and services and payments therefor are approved by the JMC
prior to incurring any such expense. Notwithstanding anything to the contrary
in this Agreement, all activities with respect to Research Antigens that are
CuraGen Exclusive Antigens, other than the generation and biochemical
characterization of Antibodies as described and allocated to ABX in Exhibit C,
shall be the sole and exclusive responsibility of CuraGen, at its sole cost and
expense. With respect to each Research Antigen, during the term of the Research
Program, each party may conduct, in its sole discretion, such additional
preclinical research in the Research Field as such party reasonably desires to
evaluate its interest in such Research Antigen, provided that, the preceding
right shall not apply to ABX in the case of Research Antigens that are CuraGen
Exclusive Antigens, and provided further that prior to commencing such
additional preclinical research with respect to Research Antigens that are not
CuraGen Exclusive Antigens, such party shall give prior written notice to the
other party of the nature and scope of such additional preclinical research
regarding such Research Antigen and shall provide the other party with all
results of such research, which research shall be deemed to have been part of
the Research Program. Each party shall provide the personnel, materials,
equipment and other resources required to conduct its obligations hereunder;
provided, however, that CuraGen shall transfer to ABX all information and
materials available to CuraGen that are useful in the conduct of all assays
conducted by or on behalf of CuraGen in connection with the Research Program.
ABX shall reimburse CuraGen for all reasonable out-of-pocket expenses incurred
in effecting such transfer. CuraGen grants to ABX the nonexclusive, worldwide
license (without the right to grant sublicenses) to practice and use all such
assays both (a) for use in the Research Program, and (b) for research
purposes (unrelated to the Research Program or CuraGen) related to the research
and development of antigens and/or antibodies. Each party shall perform its
obligations hereunder in accordance with high scientific and professional
standards, and in compliance in all material respects with the requirements of
applicable laws and regulations. Each party shall provide reasonable assistance
required by the other party in connection with the performance of the Research
Program. Each party shall have the right, at reasonable times during normal
business hours and upon reasonable notice, to visit the facilities of the other
party where the other party is conducting its obligations under the Research
Program to observe such activities.

 

4.2.2
Research Antigen Work Plans.

 

(a) Each
year, the JMC will prioritize up to [****] Research Antigens for immunization
based on IP Score (as defined below) and biology (“Priority Research Antigens”).
The Parties agree that for purposes of this Agreement, an “IP Score” for a
Research Antigen shall be determined as follows: (i) if CuraGen has
priority for the composition of matter for a full length Research Antigen (that
is not a variant) such Research Antigen will be accorded a IP

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

15

 

Score of 1, (ii) if
CuraGen has priority for the composition of matter of a Research Antigen that
is a variant and has priority for data demonstrating a novel method of use for
such variant or antibodies thereto such Research Antigen shall be accorded an
IP Score of 2, (iii) if the composition of matter of a Research Antigen
has been publicly disclosed in the literature (other than the patent
literature, unless such disclosure does not include a disclosure of antibodies)
before CuraGen’s priority date and CuraGen has priority for data demonstrating
a novel method of use for such variant or antibodies thereto, such Research
Antigen shall be accorded an IP Score of 3, (iv), if the composition of matter
of a Research Antigen (or antibodies thereto) has been disclosed in patent
literature together with a disclosure of antibodies before CuraGen’s priority
date such Research Antigen shall be accorded an IP Score of 4, and (v) if
the composition of matter of a Research Antigen (or antibodies thereto) has
been claimed in an issued or granted patent in the patent literature together
with a disclosure of antibodies before CuraGen’s priority date such Research
Antigen shall be accorded an IP Score of 5. Unless agreed as provided herein,
neither Party shall have any obligation to undertake any work or continue any
work with respect to a Research Antigen accorded an IP Score of 4 or 5 and no
Research Antigen accorded an IP Score of 4 or 5 shall be a Priority Research
Antigen unless ABX agrees in writing. In the event that CuraGen reasonably
believes that, notwithstanding a Research Antigen having an IP Score of 4 or 5,
CuraGen has priority for a substantive method of use for the Research Antigen
not previously disclosed in the literature, CuraGen shall have the right to
propose such Research Antigen for reconsideration by ABX and if ABX agrees to
such reconsideration, present information demonstrating such method of use and
CuraGen’s priority information. Upon a determination by ABX that such a
Research Antigen would be acceptable, such Research Antigen shall be accorded
an IP Score of “4-MOU” or “5-MOU”, as the case may be, and may be designated a
Priority Research Antigen. From the pool of Priority Research Antigens, ABX
will attempt to raise Antibodies by immunization of Xenomouse Animals and the
Parties will attempt to generate and characterize such Antibodies to such
Priority Research Antigens. The Parties will use reasonable efforts to analyze
or reanalyze, as the case may be, the IP Score of each proposed Priority
Research Antigen within ten (10) business days of its becoming a proposed
Priority Research Antigen. If the JMC determines to reimmunize a Xenomouse
Animal with a Research Antigen, it will be counted as one of the Priority
Research Antigens.

 

(b) For
each Priority Research Antigen a Work Plan will be created, including design of
the immunogen(s) and specification of all assays required for Eligible
Antigen designation pursuant to Exhibit B. For each Research Antigen for
which research activities have already begun as of the Revision Date, a Work
Plan will be created that summarizes the work already completed and the work
that remains for Eligible Antigen designation pursuant to Exhibit B. In
each case, the Work Plan will detail the work to be done or remaining to be
done and define the responsibility of each party in conducting the work under
the Work Plan consistent with Section 4.2.2. It is understood and agreed
by the Parties that Exhibit C shall serve as a guide for the creation of
the Work Plans of each Research Antigen, however, the Work Plan once created
and agreed to by the Parties shall take precedence over Exhibit C with
respect to the particular Research Antigen to which the Work Plan applies.

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

16

 

(c) Failure
by ABX to immunize a Xenomouse Animal within thirty (30) days of delivery of an
immunogen by CuraGen for a Priority Research Antigen meeting the Work Plan
criteria for such Priority Research Antigen will result in that Priority
Research Antigen being no longer designated as a Research Antigen. ABX will
return all CuraGen Technology and Information to CuraGen related to such
Research Antigen and CuraGen will no longer be subject to exclusivity provisions
of Section 4.4 with respect to such Research Antigen.

 

4.2.3
Neither Party is obligated to perform any further research on a Research
Antigen outside the scope of the agreed upon Work Plan once such Work Plan is
completed unless a new Work Plan is agreed to by the JMC. If either Party
unreasonably fails to perform an assigned task under a Work Plan after written
request for more than 90 days from the date of the request, unless such delay
is due to the failure of the other Party to perform, the other Party can
perform it instead and be reimbursed by the originally assigned Party.

 

4.2.4
The parties shall [**********] all costs incurred by ABX for the provision of
the Conjugates prior to the selection of an Eligible Antigen by one of the
parties including without limitation (a) fees paid by ABX in consideration
for the Conjugate in-licensed technology to the extent such fees are directly
related to the use of the Conjugates hereunder and are payable prior to such
selection, and (b) costs of scale-up manufacturing of Conjugates incurred
by ABX prior to such selection.

 

4.2.5 Access.
Without limiting the generality of Section 4.1, each party shall permit up
to three (3) employees of the other party access to such party’s
facilities, upon reasonable advance notice, at all times during normal business
hours during the term of the Research Program Term to work with the employees
of such party in the development and use of assays pursuant to the Research
Program. Each party shall provide such employees of the other party in person
access to one or more employees of such party skilled in the development and
use of such assays to enable such employees of such other party to utilize such
assays and develop similar assays for use in the Research Program and, in the
case of ABX, as contemplated under Section 4.2.2; provided, however,
except as otherwise provided in Section 4.2.2, that no license (or
sublicense, as the case may be) to any intellectual property relating to such
assays is granted hereby, whether expressly or by implication.

 

4.2.6 Term
of the Research Program. Unless this Agreement is earlier terminated, the
term of the Research Program shall commence on the Effective Date and shall
continue through completion of all Work Plans for Research Antigens for which CuraGen
has delivered to ABX for immunization on or prior to June 30, 2005 an
immunogen meeting the Work Plan criteria for such Research Antigen (the “Last
Immunization Date”). Without limiting the generality of the foregoing, CuraGen
will have no obligation to deliver Research Antigens after June 30, 2005
and ABX will have no obligation to immunize Xenomouse Animals with Research
Antigens delivered after June 30, 2005 or conduct any further work with
respect to such unimmunized antigens.

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

17

 

4.2.7 Extended
Research. Subject to Sections 6.1.4, 6.1.5, 6.1.6, both parties may use
Antibody Specific Materials and Information and Research Program Technology and
Information relating to Research Antigens (i) for which Xenomouse Immunizations
were conducted but that failed to become Eligible Antigens, as listed on Exhibit E
and as updated by agreement of the JMC, or (ii) which became Unpicked
Eligible Antigens under Section 5.2.12 (“Extended Research Antigens”). At
any time during the term of the Extended Research License under Section 6.1.6
(the “Extended Research License Term”), either party can designate such a
Research Antigen as an Optioned Antigen by notice to the other and payment of
the Section 8.2.1 fee, provided that a commercial license is available
from the other party. If a commercial license is not available, the Extended
Research License shall terminate for such Antigen and each party shall destroy
all Antigen Specific Materials and Information related to such antigen. Further,
at any time during the Extended Research License Term, should an antigen
subject to the Extended Research License cease to be available for commercial
license, the party no longer having the right to grant the exclusive license
shall notify the other party and the Extended Research License shall
immediately terminate and each party shall destroy all Antigen Specific
Materials and Information related to such antigen.

 

4.3 Research
Records and Reports.

 

4.3.1 Research
Records. Each party shall maintain records, in sufficient detail and in
good scientific manner appropriate for patent purposes, which shall be complete
and accurate and shall fully and properly reflect all work done and results
achieved in the performance of the activities under the Research Program. Each
party shall have the right, during normal business hours and upon reasonable
notice, to inspect and copy all such records of the other party to the extent
reasonably required for the performance of its obligations under this
Agreement. Each party shall maintain such records and the information of the
other party contained therein in confidence in accordance with Article 11
below.

 

4.3.2 Research
Reports and Information. Each party shall keep the other informed of the
progress of its own activities under the Research Program. At a minimum, within
thirty (30) days following the last day of each calendar quarter during the
term of the Research Program, each party shall prepare, and provide to the
other party, a reasonably detailed written summary report which shall describe
the work performed by such party to date under the Research Program.

 

4.4 Exclusivity.

 

4.4.1
Except as otherwise expressly permitted under this Agreement, during the term
of the Research Program, CuraGen shall not, [**************************************************************************].
[***********************************************], (i) [*******************]or (ii) [****************************************************************************].
[***********************************************] (i) [********************]
and (ii) [*************************************************************************].
[****************************************************************************].

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

18

 

4.4.2
For a period commencing on November 27, 2000, and ending on the earlier of
(i) the Last Immunization Date, and (ii) the effective date of a
termination of the Research Program and the options, licenses and rights of ABX
under this Agreement by CuraGen pursuant to Section 14.2.3 upon an uncured
material breach of a material obligation by ABX, CuraGen shall not enter into
any agreement (other than permitted license and sublicense agreements
hereunder) with any other Person under which:

 

(a) [*******************************************************].

 

(b) [*******************************************************].

 

(c) [*******************************************************].

 

(d) [*******************************************************].

 

(e) [*******************************************************]

 

4.4.3
Except as otherwise expressly permitted under this Agreement, for a period
ending on the earlier of (a) the Last Immunization Date, and (b) the
effective date of a termination of the Research Program and the options,
licenses and rights of ABX under this Agreement by CuraGen pursuant to Section 14.2.3
upon an uncured material breach of a material obligation by ABX, CuraGen shall
not, and shall not grant any license (or sublicense, as the case may be), immunity
or other right to any Person to, research, develop, make, have made, use,
import, offer to sell or sell any Antibody Equivalent to an
[**********************]. for use in the Commercial Field from and after the
date on which a XenoMouse Animal was first immunized with such Antigen;
provided, however, that the foregoing limitation shall not apply to antigens as
to which ABX has notified CuraGen that it does not have the right to grant
CuraGen a commercial license under Article 7 unless ABX has agreed to pay
CuraGen the amounts provided hereunder upon the development and
commercialization of an antibody product targeting such antigen as if it were
an ABX Product hereunder in return for the licenses from CuraGen for such
product as if it were an ABX Product hereunder. For the avoidance of doubt,
nothing in this Agreement shall preclude CuraGen from granting any license (or
sublicense, as the case may be), immunity or other right to any Person to
research, develop, make, have made, use, import, offer to sell or sell any
Antibody Equivalent to an antigen contained in the CuraGen Databases
[**********************] for any purpose other than for use in the prevention,
treatment, detection, diagnosis or monitoring of, or the determination of a
predisposition for, or the selection of a particular patient(s) to receive
a particular therapeutic treatment(s) for, [**********************],
unless and until a XenoMouse Animal has been immunized with such Antigen under
this Agreement.

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

19

 

4.4.4
Except as otherwise expressly permitted under this Agreement, for a period
ending on the earlier of (a) the Last Immunization Date, and (b) the
effective date of a termination of the Research Program and the options,
licenses and rights of CuraGen under this Agreement by ABX pursuant to Section 14.2.3
upon an uncured material breach of a material obligation by CuraGen, ABX shall
not, and shall not grant any license (or sublicense, as the case may be),
immunity or other right to any Person to, research, develop, make, have made,
use, import, offer to sell or sell any Antibody Equivalent to an
[***************************] for use in the Commercial Field from and after
the date on which a XenoMouse Animal was first immunized with such Antigen. For
the avoidance of doubt, nothing in this Agreement shall preclude ABX from
granting any license (or sublicense, as the case may be), immunity or other
right to any Person to research, develop, make, have made, use, import, offer
to sell or sell any Antibody Equivalent to an [****************************]
for any purpose, unless and until a XenoMouse Animal has been immunized with
such Antigen under this Agreement.

 

4.4.5
Except as otherwise expressly permitted under this Agreement, during the term
of this Agreement, ABX shall not, and shall not grant any license (or
sublicense, as the case may be), immunity or other right to any Person to,
research, develop, make, have made, use, import, offer to sell or sell any
Antibody Equivalent to a CuraGen Optioned Antigen [***************************],
for so long as such antigen remains a CuraGen Exclusive Antigen, CuraGen
Optioned Antigen, or a CuraGen Licensed Antigen [***************************]
for use in the Commercial Field.

 

4.4.6
Except as otherwise expressly permitted under this Agreement, during the term
of this Agreement, CuraGen shall not, and shall not grant any license (or
sublicense, as the case may be), immunity or other right to any Person to,
research, develop, make, have made, use, import, offer to sell or sell any
Antibody Equivalent to an ABX Optioned Antigen [***************************],
for so long as such antigen remains an ABX Optioned Antigen, or an ABX Licensed
Antigen [***************************] for use in the Commercial Field.

 

4.5 Research
Program Licenses.

 

4.5.1
Subject to the terms and conditions of this Agreement, ABX hereby grants to
CuraGen a nonexclusive license (or sublicense, as the case may be) under the
Licensed ABX Intellectual Property, without right to grant Sublicenses, in the Research
Field solely to conduct its obligations under the Research Program and to
conduct additional preclinical research as permitted under Sections 4.2 and
4.6. Except as expressly set forth in this Agreement or otherwise expressly
agreed in writing by the parties, CuraGen shall not use the Licensed ABX
Intellectual Property or any ABX Technology and Information or any Research
Program Technology and Information for any use other than those uses expressly
licensed under this Section 4.5.1.

 

4.5.2
Subject to the terms and conditions of this Agreement, CuraGen hereby grants to
ABX a nonexclusive license (or sublicense, as the case may be) under the

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

20

 

Licensed CuraGen
Intellectual Property, without right to grant Sublicenses, in the Research
Field solely to conduct its obligations under the Research Program and to
conduct additional preclinical research as permitted under Section 4.2.
Except as expressly set forth in this Agreement or otherwise expressly agreed
in writing by the parties, ABX shall not use the Licensed CuraGen Intellectual
Property or any CuraGen Technology and Information or any Research Program
Technology and Information for any use other than those uses expressly licensed
under this Section 4.5.2.

 

4.6 CuraGen Exclusive Antigens.

 

4.6.1 Designation of CuraGen Exclusive Antigens.

 

(a) As
of the Revision Date, Exhibit E lists the antigens designated as CuraGen
Exclusive Antigens. Subject to Section 4.6.3, CuraGen shall have no right
to designate any additional CuraGen Exclusive Antigens pursuant to this
Agreement.

 

(b) Each
CuraGen Exclusive Antigen shall be a Research Antigen, but shall not be a part
of the Pool (as defined in Section 5.2), (i) CuraGen shall have the
exclusive right to select such Research Antigen as an Optioned Antigen or
Licensed Antigen regardless of whether such Research Antigen is an Eligible
Antigen; and (ii) ABX shall have no right to select such Research Antigen
as an Optioned Antigen or Licensed Antigen.

 

4.6.2 Selection
of CuraGen Exclusive Antigens as Optioned Antigens. CuraGen shall have the
right to select any Research Antigen that is a CuraGen Exclusive Antigen as an
Optioned Antigen regardless of whether such CuraGen Exclusive Antigen is an
Eligible Antigen. CuraGen shall make any such selection by giving express
written notice to ABX at any time during the first eight (8) years after
the Effective Date. CuraGen’s right to make such selections under this Section 4.6.2
shall be outside, and in addition to, the selection process for Optioned
Antigens under Section 5.2.

 

4.6.3
If ABX notifies CuraGen in writing that ABX does not have the right to grant
CuraGen a commercial license under Article 7 below for an antigen that
CuraGen has designated as a CuraGen Exclusive Antigen, then CuraGen shall be
allowed to replace such antigen with another antigen by amending Exhibit E.

 

4.7
Material Transfer.

 

4.7.1
Subject to the reimbursement of costs, each party will use commercially
reasonable efforts to support the research activities of the other party under
this Section 4.

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

21

 

4.7.2
ABX will supply CuraGen with Control Antibody Material at commercial prices and
subject to the Control Antibody Material Transfer Agreement dated April 4,
2003, (the “Control Antibody MTA”).

 

4.7.3
With respect to Antibody Specific Materials and Information and Research
Program Technology and Information regarding any Research Antigen, other than a
CuraGen Exclusive Antigen or an Optioned Antigen or Licensed Antigen of a
Party, transfer to a Third Party shall be done under the terms of an MTA under
which both ABX and CuraGen are parties. The Parties agree they will execute any
such MTA if it is in the form of Exhibit F (the “Three-way MTA”). Any
change will require the approval of both Parties, not to be unreasonably
withheld. The Parties will dedicate sufficient resources to review and comment
on Three-way MTAs within ten business days and to execute such Three-way MTAs
within one week of receipt of the execution version. A Party will be free to
execute a Two-way MTA with respect to Antibody Specific Materials and
Information and Research Program Technology and Information regarding any
Research Antigen should the other Party fail to reasonably adhere to these
timelines with respect to such Research Antigen.

 

4.7.4
With respect to Optioned Antigens and Licensed Antigens, this Second Restated
Collaboration Agreement supercedes Transferred Cell Line Material Transfer
Agreement dated April 4, 2003 (the “Transferred Cell Line MTA”).

 

4.7.5
Notwithstanding the provisions of Section 12.6 or any other provisions
hereof, CuraGen may transfer to any Third Party (a) CuraGen Optioned
Antigens, and Antibody Specific Materials and Information and Research Program
Technology and Information regarding any CuraGen Optioned Antigen, (b) any
Antibodies to any such CuraGen Optioned Antigens and (c) any Control
Antibody Material, provided, that, in each such instance, (a) CuraGen
shall use a materials transfer and services agreement substantially in the form
attached hereto as Exhibit G (the “Two-way MTA”), (b) such Third
Party shall have first executed the Two-way MTA, (c) CuraGen shall
diligently enforce, and shall provide prompt written notice to ABX of any
breach of, any such Two-way MTA by such Third Party and (d) CuraGen shall
have made commercially reasonable efforts to include ABX as a third party
beneficiary of any such Two-way MTA as described more fully in Section 15
of the form of Two-way MTA. CuraGen shall provide to ABX copies of any reports
provided to CuraGen by a Third Party utilizing the materials covered by a
Two-way MTA, shall timely notify ABX of the proposed publication or required
disclosure of Confidential Information by any Third Party and shall disclose to
ABX any inventions arising under a Two-way MTA. CuraGen agrees to indemnify ABX
and hold it harmless from any and all claims, liabilities, and/or losses which
arise as a result of any Third Party’s use of the materials transferred, and
shall not permit a Third Party to undertake an assignment of its rights without
the prior consent of ABX. In addition, transfer to a third party of any Control
Antibody Materials shall be made only pursuant and subject to the Control
Antibody MTA.

 

4.7.6
Notwithstanding the provisions of Section 12.6 or any other provisions
hereof, ABX may transfer to any Third Party (a) ABX Optioned Antigens and

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

22

 

Antibody Specific
Materials and Information and Research Program Technology and Information
regarding any ABX Optioned Antigen, and (b) any Antibodies to any such ABX
Optioned Antigens, provided, that, in each such instance, (a) ABX shall
use a materials transfer and services agreement substantially in the form of
the Two-way MTA, (b) such Third Party shall have first executed a Two-way
MTA, (c) ABX shall diligently enforce, and shall provide prompt written
notice to CuraGen of any breach of, any such Two-way MTA by such Third Party
and (d) ABX shall have made commercially reasonable efforts to include
CuraGen as a third party beneficiary of any such Two-way MTA as described more
fully in Section 15 of the form of MTA. ABX shall provide to CuraGen
copies of any reports provided to ABX by a Third Party utilizing the materials
covered by a Two-way MTA, shall timely notify CuraGen of the proposed
publication or required disclosure of Confidential Information by any Third
Party and shall disclose to CuraGen any inventions arising under a Two-way MTA.
ABX agrees to indemnify CuraGen and hold it harmless from any and all claims,
liabilities, and/or losses which arise as a result of any Third Party’s use of
the materials transferred, and shall not permit a Third Party to undertake an
assignment of its rights without the prior consent of CuraGen.

 

4.7.7
A Party will be considered to have made commercially reasonable efforts to have
the other party included as a third party beneficiary if such language is
included in the initial draft Two-way MTA sent to a Third Party.

 

4.7.8
CuraGen may use and transfer to any Third Party (a) CuraGen Exclusive
Antigens and CuraGen Licensed Antigens and Antibody Specific Materials and
Information and Research Program Technology and Information regarding any
CuraGen Exclusive Antigen or CuraGen Licensed Antigen, and (b) Antibodies
(and Antibody Cells thereto) to CuraGen Exclusive Antigens and CuraGen Licensed
Antigens, all without the approval of ABX, provided, that, in each such
instance, (a) CuraGen shall use a materials transfer and services
agreement substantially in the form of the Two-way MTA, (b) such Third
Party shall have first executed the Two-way MTA, and (c) CuraGen shall
diligently enforce, and shall provide prompt written notice to ABX of any
breach of, any such Two-way MTA by such Third Party.

 

4.7.9
ABX may use and transfer to any Third Party (a) ABX Licensed Antigens and
Antibody Specific Materials and Information and Research Program Technology and
Information regarding any ABX Licensed Antigen, and (b) Antibodies (and
Antibody Cells thereto) to ABX Licensed Antigens, all without the approval of CuraGen,
provided, that, in each such instance, (a) ABX shall use a materials
transfer and services agreement substantially in the form of the Two-way MTA, (b) such
Third Party shall have first executed the Two-way MTA, (c) ABX shall
diligently enforce, and shall provide prompt written notice to CuraGen of any
breach of, any such Two-way MTA by such Third Party.

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

23

 

5. SELECTION OF OPTIONED ANTIGENS

 

5.1 Eligible
Antigens. Not less than ten (10) days prior to each regularly scheduled
meeting of the JMC, each party shall provide the other party with a dossier for
each Research Antigen that it proposes to be considered as a potential Eligible
Antigen. Such dossier shall contain all information reasonably available to
such party demonstrating whether such Research Antigen satisfies the criteria
set forth in Exhibit B. At such regularly scheduled meeting of the JMC,
the JMC shall consider whether such Research Antigen satisfies the criteria set
forth in Exhibit B. A Research Antigen shall be an Eligible Antigen at
such time as it is determined to satisfy the criteria set forth in Exhibit B,
as determined by the JMC under Section 3.2 above or the arbitrator under Section 3.5
above. Notwithstanding anything to the contrary in this Agreement, if a party
gives written notice to the other party at any time stating that such party
does not have the right to grant the other party a commercial license under Article 7
below for an Eligible Antigen, then effective thirty (30) days after the receipt
by the other party of such notice, such antigen shall cease to be an Eligible
Antigen and both parties shall destroy all Antigen Specific Materials and
Information pertaining to such Eligible Antigen.

 

5.2 Selection
of Optioned Antigens. During the first eight (8) years after the
Effective Date, each party shall have the right, in its sole discretion, to
select Optioned Antigens from the list of Eligible Antigens at the time in
question (the “Pool”) as follows:

 

5.2.1
[*************************************************].

 

5.2.2
[*************************************************].

 

5.2.3
[*************************************************].

 

5.2.4
[*************************************************].

 

5.2.5
[*************************************************].

 

5.2.6
[*************************************************].

 

5.2.7
[*************************************************].

 

5.2.8
[*************************************************].

 

5.2.9
With respect to each Eligible Antigen which is selected by CuraGen as a CuraGen
Optioned Antigen pursuant to this Section 5.2, ABX shall notify CuraGen in
writing, within thirty (30) days of receipt of the notice of selection from
CuraGen, if ABX does not have the right to grant CuraGen a commercial license
under Article 7 below for such Eligible Antigen. Unless ABX timely
notifies CuraGen in writing that ABX does not have the right to grant CuraGen a
commercial license under Article 7 below for such antigen, ABX shall use
its good faith efforts to nominate such Eligible Antigen under the XT/ABX
Master Research and License Agreement and to obtain the right thereunder to
obtain an XT/ABX

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

24

 

Product License Agreement
with respect to CuraGen Products to such Eligible Antigen. If ABX is successful
in nominating such Eligible Antigen and in obtaining the right to obtain an
XT/ABX Product License Agreement for CuraGen Products to such Eligible Antigen,
the ABX shall give prompt written notice to CuraGen. Effective upon such
notice, such Eligible Antigen shall be a CuraGen Optioned Antigen. If CuraGen
desires that an Eligible Antigen selected by CuraGen as a CuraGen Optioned
Antigen is also designated as a Lambda Optioned Antigen, then CuraGen shall so
notify ABX in writing at the time CuraGen selects such Eligible Antigen, and
subject to this Section 5.2.9, if such an Eligible Antigen becomes a
CuraGen Optioned Antigen it shall also be a Lambda Optioned Antigen hereunder.

 

5.2.10
With respect to each Eligible Antigen which is selected by ABX as an ABX
Optioned Antigen pursuant to this Section 5.2, CuraGen shall notify ABX in
writing, within thirty (30) days of receipt of the notice of selection from
ABX, if CuraGen does not have the right to grant ABX a commercial license under
Article 7 below for such Eligible Antigen. Unless CuraGen timely notifies
ABX in writing that CuraGen does not have the right to grant ABX a commercial
license under Article 7 below for such antigen, such Eligible Antigen
thereafter shall be an ABX Optioned Antigen upon the expiration of such thirty
(30) day period.

 

5.2.11
At such time as an Eligible Antigen becomes an Optioned Antigen of one of the
parties (the “Optioning Party”), the other party shall deliver to the Optioning
Party all Antigen Specific Materials and Information in its possession
pertaining to such Optioned Antigen and all related Confidential Information of
such other party, and such Antigen Specific Materials and Information and
Confidential Information shall thereafter be the Confidential Information of the
Optioning Party.

 

5.2.12
Within sixty (60) days after completion of the Research Program Term, the
Parties will meet to select any remaining Eligible Antigens in the Pool, with
the Party possessing the next pick selecting first, and then alternating, until
all Eligible Antigens are selected or both parties have passed on any remaining
Eligible Antigens (“Unpicked Eligible Antigens”). Within thirty (30) days after
completion of the Research Program Term, each Party will advise the other as to
whether it has the right to grant the other Party a commercial license under Article 7
for each such remaining Eligible Antigen.

 

6. RESEARCH FIELD LICENSES FOR OPTIONED ANTIBODIES

 

6.1 Research
Field Licenses.

 

6.1.1
Subject to the terms and conditions of this Agreement, ABX hereby grants to
CuraGen a nonexclusive license (or sublicense, as the case may be) under the
Licensed ABX Intellectual Property, without right to grant Sublicenses, (a) to
research, develop, make and use (but not to transfer, sell, lease, offer to
sell or lease, or otherwise transfer title to or an interest in) Antibody Cells
that contain, express or secrete Antibodies to the CuraGen Optioned Antigens
solely for use in the Research Field, (b) to research, develop, make and
use (but not to transfer, sell, lease, offer to sell or lease, or otherwise
transfer title to or an interest in) Antibodies that bind to the CuraGen
Optioned Antigens and Genetic Material that encodes such

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

25

 

Antibodies, solely for
use in the Research Field for the research and development of potential CuraGen
Products and (c) with respect to one or more Antibodies that bind to a
CuraGen Optioned Antigen, if the parties have mutually agreed in writing to a
Conjugate to be conjugated to such one or more Antibodies that bind to such
CuraGen Optioned Antigen, to research, develop, make and use (but not to
transfer, sell, lease, offer to sell or lease, or otherwise transfer title to
or interest in) such Conjugates conjugated to such Antibodies that bind to such
CuraGen Optioned Antigens, solely for use in the Research Field for the
research and development of potential CuraGen Products. Except as expressly
agreed in this Agreement or otherwise expressly agreed in writing by the
parties, CuraGen shall not use the Licensed ABX Intellectual Property, the ABX
Technology and Information or the Research Program Technology and Information
for any use other than those uses expressly licensed under this Section 6.1.1.

 

6.1.2 Subject
to the terms and conditions of this Agreement, CuraGen hereby grants to ABX a
nonexclusive license (or sublicense, as the case may be) under the Licensed
CuraGen Intellectual Property, without right to grant Sublicenses, (a) to
research, develop, make and use (but not to transfer, sell, lease, offer to
sell or lease, or otherwise transfer title to or an interest in) Antibody Cells
that contain, express or secrete Antibodies to the ABX Optioned Antigens solely
for use in the Research Field, and (b) to research, develop, make and use
(but not to transfer, sell, lease, offer to sell or lease, or otherwise
transfer title to or an interest in) Antibodies that bind to the ABX Optioned
Antigens and Genetic Material that encodes such Antibodies, solely for use in
the Research Field for the research and development of potential ABX Products.
Except as expressly agreed in this Agreement or otherwise expressly agreed in
writing by the parties, ABX shall not use the Licensed CuraGen Intellectual
Property, the CuraGen Technology and Information or the Research Program
Technology and Information for any use other than those uses expressly licensed
under this Section 6.1.2.

 

6.1.3
The licenses (or sublicenses, as the case may be) granted under this Section 6.1
shall terminate with respect to each Optioned Antigen on the second anniversary
of the date on which such antigen became an Optioned Antigen; provided,
however, if a party has timely exercised its option under Article 7 below
to obtain a license (or sublicense, as the case may be) for Products to such
Optioned Antigen, such license (or sublicense, as the case may be) shall remain
in effect for Products to such Optioned Antigen for the term of the applicable
license (or sublicense, as the case may be) under Article 7 below. If a
party does not timely exercise its option under Article 7 below to obtain
a license (or sublicense, as the case may be) for Products to an Optioned
Antigen and the other party does not timely exercise its standby option under Section 7.1.2
or 7.2.2, as the case may be, for Products to such Optioned Antigen, such
Antigen shall cease to be an Optioned Antigen but shall be restored as an
Eligible Antigen.

 

Extended
Research License

 

6.1.4
Subject to the terms and conditions of this Agreement, ABX hereby grants to
CuraGen a nonexclusive license (or sublicense, as the case may be) under the
Licensed ABX Intellectual Property and ABX’s interest in Antibody Specific
Materials and Information and Research Program Technology and Information
relating to Research Antigens,

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

26

 

without right to grant
Sublicenses, (a) to research, develop, make and use (but not to transfer,
sell, lease, offer to sell or lease, or otherwise transfer title to or an
interest in) Antibody Cells that contain, express or secrete Antibodies to the
Extended Research Antigens solely for use in the Research Field, (b) to
research, develop, make and use (but not to transfer, sell, lease, offer to
sell or lease, or otherwise transfer title to or an interest in) Antibodies
that bind to the Extended Research Antigen and Genetic Material that encodes
such Antibodies, solely for use in the Research Field for the research and
development of potential CuraGen Products and (c) with respect to one or
more Antibodies that bind to an Extended Research Antigen, if the parties have
mutually agreed in writing to a Conjugate to be conjugated to such one or more
Antibodies that bind to such Extended Research Antigen, to research, develop,
make and use (but not to transfer, sell, lease, offer to sell or lease, or
otherwise transfer title to or interest in) such Conjugates conjugated to such
Antibodies that bind to such Extended Research Antigens, solely for use in the
Research Field for the research and development of potential CuraGen Products.
Except as expressly agreed in this Agreement or otherwise expressly agreed in
writing by the parties, CuraGen shall not use the Licensed ABX Intellectual
Property, the ABX Technology and Information or the Research Program Technology
and Information for any use other than those uses expressly licensed under this
Section 6.1.4.

 

6.1.5
Subject to the terms and conditions of this Agreement, CuraGen hereby grants to
ABX a nonexclusive license (or sublicense, as the case may be) under the
Licensed CuraGen Intellectual Property and CuraGen’s interest in Antibody
Specific Materials and Information and Research Program Technology and
Information relating to Research Antigens, without right to grant Sublicenses, (a) to
research, develop, make and use (but not to transfer, sell, lease, offer to
sell or lease, or otherwise transfer title to or an interest in) Antibody Cells
that contain, express or secrete Antibodies to the Extended Research Antigens
solely for use in the Research Field, and (b) to research, develop, make
and use (but not to transfer, sell, lease, offer to sell or lease, or otherwise
transfer title to or an interest in) Antibodies that bind to the Extended
Research Antigens and Genetic Material that encodes such Antibodies, solely for
use in the Research Field for the research and development of potential ABX
Products. Except as expressly agreed in this Agreement or otherwise expressly
agreed in writing by the parties, ABX shall not use the Licensed CuraGen
Intellectual Property, the CuraGen Technology and Information or the Research
Program Technology and Information for any use other than those uses expressly
licensed under this Section 6.1.5.

 

6.1.6
The licenses (or sublicenses, as the case may be) granted under Sections 6.1.4
and 6.1.5 shall terminate with respect to each Extended Research Antigen on the
[********] anniversary of the date on which such antigen became an Extended
Research Antigen; provided, however, if a party has timely exercised its option
under Article 7 below to obtain a license (or sublicense, as the case may
be) for Products to such Extended Research Antigen, such license (or
sublicense, as the case may be) shall remain in effect for Products to such
Extended Research Antigen for the term of the applicable license (or
sublicense, as the case may be) under Article 7 below. If neither Party
timely exercise its option under Article 7 below to obtain a license (or
sublicense, as the case may be) for Products to an Extended Research Antigen,
such Extended Research Antigen shall cease to be an Antigen and all Antigen
Specific Materials and Information shall be destroyed by both Parties.

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

27

 

6.2 Research
and Preclinical Development.

 

6.2.1
As between ABX and CuraGen, ABX shall have the sole right and responsibility,
at its sole expense, to conduct research and preclinical development of
Antibodies that bind to the ABX Optioned Antigens and Genetic Material that
encodes such Antibodies for use in the research and development of potential
ABX Products in the Research Field.

 

6.2.2
As between ABX and CuraGen, CuraGen shall have the sole right and
responsibility, at its sole expense, to conduct research and preclinical
development of Antibodies that bind to the CuraGen Optioned Antigens and
Genetic Material that encodes such Antibodies for use in the research and
development of potential CuraGen Products in the Research Field.

 

6.2.3
Each party shall conduct such research and preclinical development in
accordance with high scientific and professional standards, and in compliance
in all material respects with the requirements of applicable laws and
regulations.

 

7. COMMERCIAL FIELD LICENSES FOR LICENSED ANTIGENS

 

7.1 CuraGen
Products.

 

7.1.1 Options
for CuraGen Optioned Antigens. Subject to the terms and conditions of this
Agreement, ABX hereby grants to CuraGen exclusive, non-transferable options to
obtain a license (or sublicense, as the case may be) under Section 7.1.3
below for CuraGen Products to each CuraGen Optioned Antigen, with each such
option being exercisable in accordance with the provisions of this Section 7.1.1
until the earliest of (a) the second anniversary of the date on which such
antigen became a CuraGen Optioned Antigen; (b) such time as ABX no longer
would be obligated to grant a license (or sublicense, as the case may be) under
Section 7.1.3 below for such CuraGen Products, and (c) the twelfth
anniversary of the Effective Date.

 

(a) If
CuraGen desires to exercise its option for CuraGen Products to such CuraGen
Optioned Antigen, CuraGen shall so notify ABX in writing. At the time CuraGen
exercises its option to obtain a license (or sublicense, as the case may be)
under Section 7.1.3 for any CuraGen Optioned Antigen that is a Lambda
Optioned Antigen, if CuraGen wishes such license to include rights for CuraGen
Products for use in the Therapeutic Field directed to a CuraGen Licensed
Antigen and comprising a Lambda Antibody or Genetic Material that encodes such
Lambda Antibody, then CuraGen shall designate such CuraGen Licensed Antigen as
a Lambda Licensed Antigen.

 

(b) Effective
upon such notice, such CuraGen Optioned Antigen shall be a CuraGen Licensed
Antigen, and the exclusive license (or sublicense, as the case may be) grant
under Section 7.1.3 below for CuraGen Products to such CuraGen Licensed
Antigen shall then be effective.

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

28

 

7.1.2 Standby
Options for ABX Optioned Antigens. If ABX fails to timely exercise its
option under Section 7.2.1 below for any ABX Optioned Antigen, within ten (10) days
after the written request by CuraGen, ABX shall provide CuraGen with copies of,
or access to, all data and information of ABX regarding such ABX Optioned
Antigen and Antibodies thereto. Except as otherwise expressly provided in this
Agreement or the parties otherwise expressly agree in writing, CuraGen shall
have the right to use such data and information for the sole purpose of
evaluating its interest in exercising its option under this Section 7.1.2
for such ABX Optioned Antigen. Subject to the terms and conditions of this
Agreement, ABX hereby grants to CuraGen exclusive, non-transferable options to
obtain a license (or sublicense, as the case may be) under Section 7.1.3
below for CuraGen Products to each ABX Optioned Antigen for which ABX fails to
timely exercise its option under Section 7.2.1 below, with each such
option being exercisable in accordance with the provisions of this Section 7.1.2
commencing on the expiration of ABX’s option under Section 7.2.1 below
until the earliest of (a) the date six (6) months thereafter, (b) such
time as ABX no longer would be obligated to grant a license (or sublicense, as
the case may be) under Section 7.1.3 below for such CuraGen Products, and (c) the
twelfth anniversary of the Effective Date.

 

(a) If
CuraGen desires to exercise its option for CuraGen products to such ABX
Optioned Antigen, CuraGen shall so notify ABX in writing. At the time CuraGen
exercises its option to obtain a license (or sublicense, as the case may be)
under Section 7.1.3 for any ABX Optioned Antigen that is a Lambda Optioned
Antigen, if CuraGen wishes such license to include the rights for CuraGen
Products for use in the Therapeutic Field directed to a CuraGen Licensed
Antigen and comprising a Lambda Antibody or Genetic Material that encodes such
Lambda Antibody, then CuraGen shall designate such CuraGen Licensed Antigen as
a Lambda Licensed Antigen.

 

(b) Within
thirty (30) days after receipt of such notice, ABX shall notify CuraGen in
writing if ABX does not have the right to grant CuraGen the license (or
sublicense, as the case may be) under Section 7.1.3 below for CuraGen
products to such ABX Optioned Antigen. If ABX does not have such a right, ABX
shall have no obligation to grant CuraGen the license (or sublicense, as the
case may be) under Section 7.1.3 below for CuraGen Products to such ABX
Optioned Antigen.

 

(c) Unless
ABX timely notifies CuraGen in writing that it does not have such a right,
effective upon the expiration of such thirty (30) day period, such antigen
shall be a CuraGen Licensed Antigen, and the exclusive license (or sublicense,
as the case may be) grant under Section 7.1.3 below for CuraGen Products
to such CuraGen Licensed Antigen shall be effective upon the expiration of such
thirty (30) day period.

 

7.1.3 Commercial
Field License. Subject to the terms and conditions of this Agreement, ABX
hereby grants to CuraGen an exclusive worldwide license (or sublicense,

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

29

 

as the case may be) (with
the right to grant Sublicenses) under Licensed ABX Intellectual Property to
research, develop, make, have made, use, import, offer to sell and sell CuraGen
Products in the Commercial Field. CuraGen shall provide ABX with a copy of each
Sublicense promptly after executing the same; provided, however, that
CuraGen shall have the right to redact any confidential financial terms or
confidential research, development or commercialization plans from the copy
provided to ABX. Any Sublicense shall be subject and subordinate to the terms
and conditions of this Agreement, and CuraGen shall remain responsible for all
payments due to ABX hereunder.

 

7.2 ABX
Products.

 

7.2.1 Options
for ABX Optioned Antigens. Subject to the terms and conditions of this
Agreement, CuraGen hereby grants to ABX exclusive, non-transferable options to
obtain a license (or sublicense, as the case may be) under Section 7.2.3
below for ABX Products to each ABX Optioned Antigen, with each such option
being exercisable in accordance with the provisions of this Section until
the earliest of (a) the second anniversary of the date on which such
antigen became a ABX Optioned Antigen, (b) such time as CuraGen no longer
would be obligated to grant a license (or sublicense, as the case may be) under
Section 7.2.3 below for such ABX Products, and (c) the twelfth
anniversary of the Effective Date.

 

(a) If
ABX desires to exercise its option for ABX Products to such ABX Optioned
Antigen, ABX shall so notify CuraGen in writing.

 

(b) Effective
upon such notice, such antigen shall be an ABX Licensed Antigen, and the
exclusive license (or sublicense, as the case may be) grant under Section 7.2.3
below for ABX Products to such ABX Licensed Antigen shall be effective.

 

7.2.2 Standby
Options for CuraGen Optioned Antigens. If CuraGen fails to timely exercise
its option under Section 7.1.1 above for any CuraGen Optioned Antigen that
is not a CuraGen Exclusive Antigen, within ten (10) days after the written
request by ABX, CuraGen shall provide ABX with copies of, or access to, all
data and information of CuraGen regarding such CuraGen Optioned Antigen and
Antibodies thereto. Except as otherwise expressly provided in this Agreement or
the parties otherwise expressly agree in writing, ABX shall have the right to
use such data and information for the sole purpose of evaluating its interest
in exercising its option under this Section 7.2.2 for such CuraGen
Optioned Antigen. Subject to the terms and conditions of this Agreement,
CuraGen hereby grants to ABX non-exclusive, non-transferable options to obtain
a license (or sublicense, as the case may be) under Section 7.2.3 below
for ABX Products to each CuraGen Optioned Antigen that is not a CuraGen
Exclusive Antigen for which CuraGen fails to timely exercise its option under Section 7.1.1
above, with each such option being exercisable in accordance with the
provisions of this Section 7.2.2 commencing on the expiration of CuraGen’s
option under Section 7.1.1 above until the earliest of (a) the date
six (6) months thereafter, (b) such time as CuraGen no longer would
be obligated to grant a license (or sublicense, as the case may be) under Section 7.2.3
below for such ABX Products, and (c) the twelfth anniversary of the
Effective Date.

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

30

 

(a) If
ABX desires to exercise its option for ABX products to such CuraGen Optioned
Antigen, ABX shall so notify CuraGen in writing.

 

(b) Within
thirty (30) days after receipt of such notice, CuraGen shall notify ABX in
writing if CuraGen does not have the right to grant ABX the license (or
sublicense, as the case may be) under Section 7.2.3 below for ABX products
to such CuraGen Optioned Antigen. If CuraGen does not have such a right,
CuraGen shall have no obligation to grant ABX the license (or sublicense, as
the case may be) under Section 7.2.3 below for ABX Products to such
CuraGen Optioned Antigen.

 

(c) Unless
CuraGen timely notifies ABX in writing that it does not have such a right,
effective upon the expiration of such thirty (30) day period, such antigen
shall be an ABX Licensed Antigen, and the exclusive license (or sublicense, as
the case may be) grant under Section 7.2.3 below for ABX Products to such
ABX Licensed Antigen shall be effective upon the expiration of such thirty (30)
day period.

 

7.2.3 Commercial
Field License. Subject to the terms and conditions of this Agreement,
CuraGen hereby grants to ABX an exclusive worldwide license (or sublicense, as
the case may be) (with the right to grant Sublicenses) under Licensed CuraGen
Intellectual Property to research, develop, make, have made, use, import, offer
to sell and sell ABX Products in the Commercial Field. ABX shall provide
CuraGen with a copy of each Sublicense promptly after executing the same; provided,
however, that ABX shall have the right to redact any confidential
financial terms or confidential research, development or commercialization
plans from the copy provided to CuraGen. Any Sublicense shall be subject and
subordinate to the terms and conditions of this Agreement, and ABX shall remain
responsible for all payments due to CuraGen hereunder.

 

7.3 No
Other Rights. No rights other than those expressly set forth in this
Agreement are granted to either party hereunder, and no additional rights shall
be granted to either party by implication, estoppel or otherwise.

 

7.4 Further
Restrictions.

 

7.4.1
Notwithstanding anything to the contrary in this Agreement, neither a party,
nor its Sublicensees hereunder nor their respective Affiliates shall submit an
IND for, or otherwise commence human clinical testing of, any Product to any
Antigen unless and until such party has obtained a commercial license under
this Article 7 for Products to such Antigen.

 

7.4.2
For purposes of this Agreement, if (a) ABX has otherwise granted exclusive
rights to antibodies to an antigen to a Third Party without breach of the-exclusivity
provisions of Section 4.4, or (b) ABX has an active research and
development program ongoing

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

31

 

for antibodies to an
antigen (that was not provided by CuraGen hereunder) that is independent of its
efforts hereunder and does not and did not involve access to, or otherwise make
use of, the CuraGen Databases, then ABX shall not have the right to grant
CuraGen a license (or sublicense, as the case may be) hereunder to use such
antigen in the Research Field or a license (or sublicense, as the case may be)
regarding the related CuraGen Products in the Commercial Field.

 

7.4.3
For purposes of this Agreement, if CuraGen has granted exclusive rights to
antibodies to an antigen to a Third Party without breach of the exclusivity
provisions of Section 4.4, then CuraGen shall not have the right to grant
ABX a license (or sublicense, as the case may be) hereunder to use such antigen
in the Research Field or a license (or sublicense, as the case may be)
regarding the related ABX Products in the Commercial Field.

 

8. PAYMENTS

 

8.1
Research Funding.

 

8.1.1
CuraGen has paid to ABX aggregate research funding of
[***************************(**********)] to date. CuraGen shall pay to ABX
additional research funding of [*******************************************].

 

8.1.2
CuraGen shall pay ABX [******************(**********)] for each of the first
five immunizations of Xenomouse Animals with Research Antigens after the
Revision Date, payable [**************************************].

 

8.2
Certain Fees.

 

8.2.1
Each party shall pay to the other party a non-refundable, non-creditable
technology access fee of [*********************(**********)] for each Eligible
Antigen it selects under Article 5 above that becomes an Optioned Antigen
within ten (10) days after such Eligible Antigen becomes an Optioned
Antigen. CuraGen additionally shall pay to ABX a non-refundable, non-creditable
technology access fee of [*************(**********)] for each Eligible Antigen
that becomes a Lambda Optioned Antigen hereunder, within ten (10) days
after such Eligible Antigen becomes a Lambda Optioned Antigen.

 

8.2.2
Each party shall pay to the other party a non-refundable, non-creditable
exercise fee of [*************(**********)] for each Optioned Antigen for which
it exercised an option to obtain a commercial license under Article 7
above within ten (10) days after such Optioned Antigen becomes a Licensed
Antigen. CuraGen additionally shall pay to ABX a non-refundable, non-creditable
exercise fee of [*************(**********)] for each Lambda Optioned Antigen
for which CuraGen exercised an option to obtain a commercial license under Article 7
above within ten (10) days after such Lambda Optioned Antigen becomes a
Lambda Licensed Antigen.

 

8.2.3
With respect to each Licensed Antigen for which a party exercised an option to
obtain a commercial license under Article 7 above, but for which it was
not required

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

32

 

to pay an option fee
under Section 8.2.1 above because it was not selected as an Optioned
Antigen by such party under Article 5 above, such party shall pay to the
other party, in lieu of the amounts set forth in Sections 8.2.1 and 8.2.2, a
non-refundable, non-creditable exercise fee of [*************(**********)] for
such Licensed Antigen within ten (10) days after such antigen becomes a
Licensed Antigen. CuraGen additionally shall pay to ABX a non-refundable,
non-creditable exercise fee of [*************(**********)] for each CuraGen
Licensed Antigen for which CuraGen exercised an option to obtain a commercial
license and designated such CuraGen Licensed Antigen as a Lambda Licensed
Antigen under Article 7 above, but for which it was not required to pay an
option fee under Section 8.2.1 above because it was not selected as an Optioned
Antigen by CuraGen under Article 5 above, and within ten (10) days
after such antigen becomes a Lambda Licensed Antigen.

 

8.3 Milestone
Payments.

 

8.3.1 In
the Therapeutic Field.

 

(a) Subject
to Section 8.3.1(d), and, in the case of Sublicenses, to Section 8.4.3(c) below,
within thirty (30) days following the achievement of each of the following
milestones with respect to each CuraGen Product for use in the Therapeutic
Field (other than a CuraGen Product directed to a CuraGen Licensed Antigen and
comprising a Lambda Antibody or Genetic Material that encodes such Lambda
Antibody), on a CuraGen Product-by-CuraGen Product basis, CuraGen shall give
written notice to ABX thereof and shall (i) pay to ABX the corresponding
milestone payments described below and (ii) pay to ABX the milestone
payments due any Third Party under an ABX In-License arising from use of a
Conjugate as part of such CuraGen Product (as permitted under this Agreement),
as applicable. Subject, in the case of Sublicenses, to Section 8.4.3(a) below,
within thirty (30) days following the achievement of each of the following
milestones with respect to each ABX Product for use in the Therapeutic Field,
on an ABX Product-by-ABX Product basis, ABX shall give written notice to
CuraGen thereof and shall pay to CuraGen the corresponding milestone payments
described below.

 

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

 

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

 

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

 

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

 

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

 

(b) Subject
to Section 8.3.1(d), and, in the case of Sublicenses, to Section 8.4.3(c) below,
within thirty (30) days following the achievement of each of the following
milestones with respect to each CuraGen Product for use in the Therapeutic
Field directed to a CuraGen Licensed Antigen and comprising a Lambda Antibody
or Genetic Material that encodes such Lambda Antibody, on a CuraGen
Product-by-CuraGen Product basis, CuraGen shall give

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

33

 

written notice to ABX
thereof and shall (i) pay to ABX the corresponding milestone payments
described below, and (ii) pay to ABX the milestone payments due any Third
Party under an ABX In-License arising from use of a Conjugate as part of such
CuraGen Product (as permitted under this Agreement), as applicable.

 

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

 

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

 

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

 

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

 

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

 

(c) If,
at the time when any milestone payment listed in this Section 8.3.1, with
respect to a Product for use in the Therapeutic Field, is due from a party,
such party has not paid all other milestone payments (if any) previously listed
in this Section 8.3.1 with respect to such Product, then at such time such
party shall pay all such unpaid milestone payments (if any) previously listed
in this Section 8.3.1 with respect to such Product. If, at the time of the
First Commercial Sale by a party, its Affiliate or their respective Sublicensee
of a Product for use in the Therapeutic Field, such party has not paid all
milestone payments (if any) listed in this Section 8.3.1 with respect to
such Product, then at such time such party shall pay all such unpaid milestone
payments (if any) listed in this Section 8.3.1 with respect to such
Product. If at any time a party abandons the development of a Product after the
payment to the other party of one or more milestone payments under this Section 8.3.1
and subsequently commences or continues the development of another Product
directed to the same Licensed Antigen as the abandoned Product, then such party
shall have no obligation to pay to the other party a milestone payment upon the
occurrence of a milestone event for the subsequent Product for which such party
previously has paid to the other party a milestone payment under this Section 8.3.1
for the abandoned Product.

 

(d) Notwithstanding
Sections 8.3.1(a) and (b), CuraGen shall only be required to make the
higher payments set forth in Section 8.3.1(b) with respect to a
CuraGen Product comprising a Lambda Antibody or Genetic Material that encodes a
Lambda Antibody if and to the extent that the additional amounts are owed or
paid by ABX to the licensors under the licenses specified in Section 1.2
of Amendment No. 2. If such payments to such licensors are not owed or
paid by ABX, CuraGen shall only be required to make the payments set forth in Section 8.1.3(a).

 

8.3.2 In
the Diagnostic Field.

 

(a) Subject
to Section 8.3.2(d), and, in the case of Sublicenses, to Section 8.4.3(d) below,
within thirty (30) days following the achievement of each of the following
milestones with respect to each CuraGen Product for use in the Diagnostic Field
(other than a

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

34

 

CuraGen Product directed
to a CuraGen Licensed Antigen and comprising a Lambda Antibody or Genetic
Material that encodes such Lambda Antibody), on a CuraGen Product-by-CuraGen
Product basis, CuraGen shall give written notice to ABX thereof and shall (i) pay
to ABX the corresponding milestone payments described below, and (ii) pay
to ABX the milestone payments due any Third Party under an ABX In-License
arising from use of a Conjugate as part of such CuraGen Product (as permitted
under this Agreement), as applicable. Subject, in the case of Sublicenses, to Section 8.4.3(b) below,
within thirty (30) days following the achievement of each of the following
milestones with respect to each ABX Product for use in the Diagnostic Field, on
an ABX Product-by-ABX Product basis, ABX shall give written notice to CuraGen
thereof and shall pay to CuraGen the corresponding milestone payments described
below.

 

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

 

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

 

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

 

(b) Subject
to Section 8.3.2(d), and, in the case of Sublicenses, to Section 8.4.3(d) below,
within thirty (30) days following the achievement of each of the following
milestones with respect to each CuraGen Product for use in the Diagnostic Field
directed to a CuraGen Licensed Antigen and comprising a Lambda Antibody or
Genetic Material that encodes such Lambda Antibody, on a CuraGen Product-by-CuraGen
Product basis, CuraGen shall give written notice to ABX thereof and shall (i) pay
to ABX the corresponding milestone payments described below, and (ii) pay
to ABX the milestone payments due any Third Party under an ABX In-License
arising from use of a Conjugate as part of such CuraGen Product (as permitted
under this Agreement), as applicable.

 

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

 

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

 

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

 

(c) If,
at the time when any milestone payment listed in this Section 8.3.2, with
respect to a Product for use in the Diagnostic Field, is due from a party, such
party has not paid all other milestone payments (if any) previously listed in
this Section 8.3.2 with respect to such Product, then at such time such
party shall pay all such unpaid milestone payments (if any) previously listed
in this Section 8.3.2 with respect to such Product. If, at the time of the
First Commercial Sale by a party, its Affiliate or permitted (sub)licensee of a
Product for use in the Diagnostic Field, such party has not paid all milestone
payments (if any) listed in this Section 8.3.2 with respect to such
Product, then at such time such party shall pay all such unpaid milestone
payments (if any) listed in this Section 8.3.2 with respect to such
Product. If at any time a party abandons the development of a Product after the
payment to the other party of one or more milestone payments under this Section 8.3.2
and subsequently commences or continues the development of another Product
directed to the same Licensed Antigen as the abandoned

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

35

 

Product, then such party
shall have no obligation to pay to the other party a milestone payment upon the
occurrence of a milestone event for the subsequent Product for which such party
previously has paid to the other party a milestone payment under this Section 8.3.2
for the abandoned Product.

 

(d) Notwithstanding
Sections 8.3.2(a) and (b), CuraGen shall only be required to make the
higher payments set forth in Section 8.3.2(b) with respect to a
CuraGen Product comprising a Lambda Antibody or Genetic Material that encodes a
Lambda Antibody if and to the extent that the additional amounts are owed or
paid by ABX to the licensors under the licenses specified in Section 1.2
of Amendment No. 2. If such payments to such licensors are not owed or
paid by ABX, CuraGen shall only be required to make the payments set forth in Section 8.1.3(a).

 

8.4 Royalties.

 

8.4.1 Notice
of Royalty Commencement Date. Within thirty (30) days following the Royalty
Commencement Date for each CuraGen Product in each country, CuraGen shall give
written notice to ABX thereof. Within thirty (30) days following the Royalty
Commencement Date for each ABX Product in each country, ABX shall give written
notice to CuraGen thereof.

 

8.4.2 Royalties
on Net Sales.

 

(a) Subject,
in the case of Sublicenses, to Sections 8.4.3(a) and (b) below, where
a CuraGen Patent Claim covers an ABX Product, ABX shall pay to CuraGen
royalties equal to (a) [*******************************************], and (b) [*******************************************].
[*******************************************].

 

(b) Subject,
in the case of Sublicenses, to Sections 8.4.3(a) and (b) below, where
no CuraGen Patent Claim covers an ABX Product, ABX shall pay to CuraGen
royalties equal to [******************************] (i) [**********************************]
and (ii) [*******************************************]; provided, however,
[*******************************************] (a) [*******************************************]
or (b) [*******************************************].

 

(c) Subject,
in the case of Sublicenses, to Sections 8.4.3(c) and (d) below, where
an ABX Patent Claim covers a CuraGen Product, CuraGen shall pay to ABX
royalties equal to (a) [*******************************************], (b) [*******************************************]
and (c) [*******************************************].
[*******************************************].

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

36

 

(d) Subject,
in the case of Sublicenses, to Sections 8.4.3(a) and (b) below, where
no ABX Patent Claim covers a CuraGen Product, CuraGen shall pay to ABX
royalties equal to (x) [*******************************************] or (y) [*******************************************].

 

8.4.3 Royalties
on Sublicense Income.

 

(a) In
the event that ABX grants a Sublicense with respect to any ABX Product for use
in the Therapeutic Field, ABX shall notify CuraGen in writing, within fifteen
(15) days of the grant of such Sublicense, whether ABX elects to pay to CuraGen
(i) the milestone payments set forth in Section 8.3.1 upon the
occurrence with respect to such ABX Product of the milestone events set forth
therein and the royalties set forth in Section 8.4.2 based on Net Sales of
such ABX Product or (ii) the following payments and royalties equal to the
following percentage of Sublicense Income received by ABX and its Affiliates in
connection with such Sublicense for each ABX Product for use in the Therapeutic
Field:

 

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

 

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

 

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

 

Notwithstanding
the foregoing, the royalties owing by ABX under this Section 8.4.3(a) in
any calendar quarter, with respect to Net Sales by such Sublicensee and its
Affiliates of any ABX Product for use in the Therapeutic Field, shall not be
less than [********(***)] of Net Sales by such Sublicensee and its Affiliates
of such ABX Product in such calendar quarter. Once made, the election of the
basis of payment hereunder may not be changed, and ABX shall pay the amounts
determined in accordance with its election.

 

(b) In
the event that ABX grants a Sublicense with respect to any ABX Product for use
in the Diagnostic Field, ABX shall notify CuraGen in writing, within fifteen
(15) days of the grant of such Sublicense, whether ABX elects to pay to CuraGen
(i) the milestone payments set forth in Section 8.3.2 upon the
occurrence with respect to such ABX Product of the milestone events set forth
therein and the royalties set forth in Section 8.4.2 based on Net Sales of
such ABX Product or (ii) the following payments and royalties equal to the
following percentage of Sublicense Income received by ABX and its Affiliates in
connection with such Sublicense for each ABX Product for use in the Diagnostic
Field:

 

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

 

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

 

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

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

37

 

Notwithstanding
the foregoing, the royalties owing by ABX under this Section 8.4.3(b) in
any calendar quarter, with respect to Net Sales by such Sublicensee and its
Affiliates of any ABX Product for use in the Diagnostic Field, shall not be
less than [********(***)] of Net Sales by such Sublicensee and its Affiliates
of such ABX Product in such calendar quarter. Once made, the election of the
basis of payment hereunder may not be changed, and ABX shall pay the amounts
determined in accordance with its election.

 

(c) In
the event that CuraGen grants a Sublicense with respect to any CuraGen Product
for use in the Therapeutic Field, CuraGen shall notify ABX in writing, within
fifteen (15) days of the grant of such Sublicense, whether CuraGen elects to
pay to ABX (i) the milestone payments set forth in Section 8.3.1 upon
the occurrence with respect to such CuraGen Product of the milestone events set
forth therein and the royalties set forth in Section 8.4.2 based on Net
Sales of such CuraGen Product or (ii) the following payments and royalties
equal to the following percentage of Sublicense Income received by CuraGen and
its Affiliates in connection with the Sublicense for each CuraGen Product for
use in the Therapeutic Field:

 

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

 

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

 

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

 

Notwithstanding
the foregoing, the royalties owing by CuraGen under this Section 8.4.3(c) in
any calendar quarter, with respect to Net Sales by such Sublicensee and its
Affiliates of any CuraGen Product for use in the Therapeutic Field, shall not
be less than the aggregate of (i) [********(***)] of Net Sales by such
Sublicensee and its Affiliates of such CuraGen Product in such calendar
quarter, plus (ii) [***************************************************************************************]
Once made, the election of the basis of payment hereunder may not be changed,
and CuraGen shall pay the amounts determined in accordance with its election.

 

(d) In
the event that CuraGen grants a Sublicense with respect to any CuraGen Product
for use in the Diagnostic Field, CuraGen shall notify ABX in writing, within
fifteen (15) days of the grant of such Sublicense, whether CuraGen elects to
pay to ABX (i) the milestone payments set forth in Section 8.3.2 upon
the occurrence with respect to such CuraGen Product of the milestone events set
forth therein and the royalties set forth in Section 8.4.2 based on Net
Sales of such CuraGen Product or (ii) the following payments and royalties
equal to the following percentage of Sublicense Income received by CuraGen and
its Affiliates in connection with the Sublicense for such CuraGen Product for
use in the Diagnostic Field:

 

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

 

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

 

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

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

38

 

Notwithstanding
the foregoing, the royalties owing by CuraGen under this Section 8.4.3(d) in
any calendar quarter, with respect to Net Sales by such Sublicensee and its
Affiliates of any CuraGen Product for use in the Diagnostic Field, shall not be
less than the aggregate of (i) [********(***)] of Net Sales by such
Sublicensee and its Affiliates of such CuraGen Product in such calendar
quarter, plus (ii) [*****************************************************************************************].
Once made, the election of the basis of payment hereunder may not be changed,
and CuraGen shall pay the amounts determined in accordance with its election.

 

(e) Length
of Royalty Obligations. Each party’s obligations to pay royalties (including
without limitation percentages of Sublicense Income) with respect to each
Product in each country shall commence on the Royalty Commencement Date for
such Product in such country, and shall continue for such Product in such
country until (i) [**************************], or (ii) [*************************************].

 

8.4.4 Discounting.
If a party, its Sublicensees or their respective Affiliates sells a Product to
a Third Party who also purchases other products or services from such party,
its Sublicensees or their respective Affiliates, and such party, its
Sublicensees or their respective Affiliates discounts the purchase price of
such Product to a greater degree than it generally discounts the price of its
other products or services to such customer, then in such case the Net Sales
for the sale of such Product to such Third Party shall equal the arm’s length
price that Third Parties would generally pay for the Product alone when not
purchasing any other product or service from such party, its Sublicensee or
their respective Affiliates. For purposes of this provision “discounting”
includes establishing the list price at a lower-than-normal level.

 

9. ACCOUNTING AND RECORDS

 

9.1 Royalty
Reports and Payments. Commencing with the first calendar quarter in which
the Royalty Commencement Date for a Product occurs, CuraGen in the case of
CuraGen Products, and ABX in the case of ABX Products (the “Payor”) shall make
written reports to the other party (the “Payee”) within sixty (60) days after
the end of each calendar quarter, stating in each such report (a) the
number, description, and aggregate Net Sales of such Product sold during the
calendar quarter, (b) the calculation of the royalties and other amounts
payable under Article 8 above, and (c) otherwise satisfying the
royalty reporting requirements under each ABX In-License applicable to such
Product (in the case of CuraGen Products). Concurrently with the making of such
reports, the Payor shall pay to the Payee all royalties payable under Article 8
above. With respect to (1) each CuraGen Product directed to a CuraGen
Licensed Antigen and comprising a Lambda Antibody or Genetic Material that
encodes such Lambda Antibody, and (2) each CuraGen Product comprising a
Conjugate, prior to the date any Third Party royalty is due for such CuraGen
Products pursuant to Section 8.4, ABX shall provide to CuraGen information
from the applicable ABX In-License(s) sufficient for CuraGen to calculate
the royalty then owing and to satisfy the royalty reporting obligations under such
ABX In-License(s).

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

39

 

9.2 Records;
Inspection. The Payor shall keep (and cause its Affiliates, Sublicensees
and Sublicensees’ Affiliates to keep) complete, true and accurate books of
account and records for the purpose of determining the royalties payable to the
Payee under this Agreement. Such books and records shall be kept at the
principal place of business of the Payor, its Sublicensee or their respective
Affiliates, as the case may be, for at least three years following the end of
the calendar quarter to which they pertain. Such records of the Payor and its
Affiliates shall be open for inspection during such three-year period by
independent accountants chosen by the Payee, and subject to the approval of the
Payor, which approval shall not be unreasonably withheld or delayed, (which
accountants, in the case of ABX, may also represent XT) for the purpose of
verifying the royalty statements. The Payor shall require each of its
Sublicensees to maintain similar books and records and to open such records for
inspection during the same three-year period by a representative of the Payor
reasonably satisfactory to the Payee on behalf of, and as required by, the
Payee for the purpose of verifying the royalty statements. All such inspections
may be made no more than once each calendar year at reasonable times mutually
agreed by the Payor and the Payee. The independent accountants chosen by the
Payee will be obliged to execute a reasonable confidentiality agreement prior
to commencing any such inspection. Inspections conducted under this Section 9.2
shall be at the expense of the Payee, unless a variation or error producing an
increase exceeding five percent (5%) of the amount stated for any period is
established in the course of any such inspection, whereupon all costs relating
to the audit of such period will be paid by the Payor.

 

9.3 Payment
Method. All payments by the Payor to the Payee hereunder shall be in United
States Dollars in immediately available funds and shall be made by wire
transfer from a United States bank located in the United States to such bank
account as designated by the Payee to the Payor.

 

9.4 Currency
Conversion. If any currency conversion shall be required in connection with
the calculation of royalties hereunder, such conversion shall be made using the
selling exchange rate for conversion of the foreign currency into United States
Dollars, quoted for current transactions reported under the heading “Currency
Trading — Exchange Rates” in The Wall Street Journal in the United States for
the last business day of the calendar quarter to which such payment pertains.
If The Wall Street Journal ceases to be published, then the rate of exchange to
be used shall be that reported in such other business publication of national
circulation in the United States as the parties reasonably agree.

 

9.5 Late
Payments. Any payments due from the Payor that are not paid on the date
such payments are due under this Agreement shall bear interest at the lesser of
(i) the Prime Rate as reported under the heading “Money Rates” in The
Wall Street Journal in the United States on the date such payment is due,
plus an additional two percent (2%), or (ii) the maximum rate permitted by
applicable law, in each case calculated on the number of days such payment is
delinquent. This Section 9.5 shall in no way limit any other remedies
available to any party. If The Wall Street Journal ceases to be published, then
the prime rate to be used shall be that reported in such other business
publication of national circulation in the United States as the parties
reasonably agree.

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

40

 

9.6 Withholding
Taxes. Each party shall be entitled to deduct from the royalties owing to
the other party hereunder the amount of any withholding taxes, value-added
taxes or other taxes, levies or charges with respect to such amounts, other
than United States taxes, payable by such party, or any taxes required to be
withheld by such party, to the extent such party pays to the appropriate governmental
authority on behalf of the other party such taxes, levies or charges. The
withholding party shall use reasonable efforts to minimize any such taxes,
levies or charges required to be withheld on behalf of the other party by such
party. The withholding party promptly shall deliver to the other party proof of
payment of all such taxes, levies and other charges, together with copies of
all communications from or with such governmental authority with respect
thereto, and shall reasonably assist the other party in obtaining a refund
thereof (to the extent permitted under applicable law) or to obtain a foreign
tax credit therefor.

 

10. DILIGENCE

 

10.1 Diligence
Obligation of CuraGen.

 

10.1.1
CuraGen shall use commercially reasonable efforts to actively research, develop
and obtain regulatory approvals as expeditiously as reasonably practicable to
market in major markets throughout the world at least one CuraGen Product to
each CuraGen Licensed Antigen, and following such approval to maximize Net
Sales of such CuraGen Product.

 

10.1.2
Without limiting Section 10.1.1, CuraGen, its Sublicensees or their
respective Affiliates shall file an IND with the FDA for at least one CuraGen
Product to each CuraGen Licensed Antigen within three (3) years after the
effective date of the applicable XT/ABX Product License Agreement. After the
filing of an IND for at least one CuraGen Product to a CuraGen Licensed
Antigen, CuraGen, its Sublicensees or their respective Affiliates, shall have
an active IND and actively and diligently conduct clinical trials in pursuit of
regulatory approval for at least one such CuraGen Product in the United States
until at least one such CuraGen Product may be sold commercially in the United
States.

 

10.1.3
During the term of this Agreement and for a period of five (5) years
thereafter, CuraGen shall keep complete and accurate records of its activities
conducted under this Agreement regarding the commercialization of CuraGen
Products and the results thereof. Within thirty (30) days after the end of each
semi-annual period during the term of this Agreement, CuraGen shall prepare and
provide ABX with a reasonably detailed written report of such activities and
results, through such date.

 

10.2 Diligence
Obligation of ABX.

 

10.2.1
ABX shall use commercially reasonable efforts to actively research, develop and
obtain regulatory approvals as expeditiously as reasonably practicable to
market in major markets throughout the world at least one ABX Product to each
ABX Licensed Antigen, and following such approval to maximize Net Sales of such
ABX Product.

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

41

 

10.2.2
Without limiting Section 10.2.1, ABX, its Sublicensees or their respective
Affiliates shall file an IND with the FDA for at least one ABX Product to each
ABX Licensed Antigen within three (3) years after the effective date of
the applicable XT/ABX Product License Agreement. After the filing of an IND for
at least one ABX Product to a ABX Licensed Antigen, ABX, its Sublicensees or
their respective Affiliates, shall have an active IND and actively and
diligently conduct clinical trials in pursuit of regulatory approval for at
least one such ABX Product in the United States until at least one such ABX
Product may be sold commercially in the United States.

 

10.2.3
During the term of this Agreement and for a period of five (5) years
thereafter, ABX shall keep complete and accurate records of its activities
conducted under this Agreement regarding the commercialization of ABX Products
and the results thereof. Within thirty (30) days after the end of each
semi-annual period during the term of this Agreement, ABX shall prepare and
provide CuraGen with a reasonably detailed written report of such activities
and results, through such date.

 

10.3 Standards
of Performance. The development and commercialization of a Product
hereunder by a party, its Sublicensees and their respective Affiliates shall be
performed in accordance with high scientific and professional standards, and in
compliance in all material respects with the requirements of applicable laws
and regulations. ABX, its Sublicensees and their respective Affiliates shall be
solely responsible for providing the personnel, materials, equipment, and other
resources for the development and commercialization of ABX Products hereunder.
CuraGen, its Sublicensees and their respective Affiliates shall be solely
responsible for providing the personnel, materials, equipment, and other
resources for the development and commercialization of CuraGen Products
hereunder.

 

10.4 Gene
Therapy Applications. Each party’s intention as of the Effective Date is to
commercialize a Product hereunder for an application other than Gene Therapy
before commercializing a Product hereunder for a Gene Therapy application. It
is understood, however, that either party may or may not also intend to develop
and sell Products for use in Gene Therapy, and that such Gene Therapy
application may ultimately be commercialized before a Product is commercialized
hereunder for a non-Gene Therapy application.

 

11. CONFIDENTIALITY

 

11.1 Confidential
Information. During the term of this Agreement and for a period of five (5) years
following the expiration or earlier termination hereof, each party shall
maintain in confidence the Confidential Information of the other party, and
shall not disclose, use or grant the use of the Confidential Information of the
other party except on a need-to-know basis to such party’s directors, officers
employees, consultants and collaborators, and to the Third Party licensors of
the Licensed Intellectual Property, to the extent such disclosure is reasonably
necessary or required in connection with such party’s activities as expressly
authorized by this Agreement. To the extent that disclosure by a party to any
Person is authorized by this Agreement, prior to disclosure, a party shall
obtain written agreement of such

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

42

 

Person to hold in
confidence and not disclose, use or grant the use of the Confidential
Information of the other party except as expressly permitted under this
Agreement. Each party shall notify the other promptly upon discovery of any
unauthorized use or disclosure of the other party’s Confidential Information.
Upon the expiration or earlier termination of this Agreement, each party shall
return to the other party all tangible items regarding the Confidential
Information of the other party and all copies thereof, except for Confidential
Information pertaining to any Licensed Antigen and related Products for which,
and for so long as, such party retains a license (or sublicense, as the case
may be) hereunder; provided, however, that each party shall have the right to
retain one (1) copy for its legal files for the sole purpose of
determining its obligations hereunder.

 

11.2 Terms
of Agreement. Neither party shall disclose any terms or conditions of this
Agreement to any Third Party without the prior consent of the other party;
provided, however, that either party may disclose the terms or conditions of
this Agreement, (a) on a need-to-know basis to its legal and financial
advisors to the extent such disclosure is reasonably necessary in connection
with such party’s activities as expressly permitted by this Agreement or for
the conduct of its business; (b) to the Third Party licensors of the
Licensed Intellectual Property; (c) to a Third Party in connection with (i) an
equity investment or other form of financing in such party by a Third Party; (ii) a
merger, consolidation or similar transaction entered into by such party; or (iii) the
sale of all or substantially all of the assets of such party; and (d) as
may, in the reasonable opinion of such party’s counsel, be required by
applicable law, regulation or court order, including without limitation, a
disclosure in connection with such party’s filing of a registration statement
or other filing with the United States Securities and Exchange Commission (in
which event such party will first consult with the other party, to the extent
reasonably practicable, with respect to such disclosure). Notwithstanding the foregoing,
(i) the parties will jointly issue a press release in mutually agreed form
promptly after execution hereof and (ii) prior to execution of this
Agreement CuraGen and ABX shall agree upon the substance of information that
can be used to describe the terms of this transaction, and CuraGen and ABX may
disclose such information, as modified by mutual agreement from time to time,
without the other party’s consent.

 

12. TECHNOLOGY, INFORMATION AND INTELLECTUAL PROPERTY

 

12.1 Ownership.

 

12.1.1
ABX shall solely own all right, title and interest in the ABX Technology and
Information and in all patent rights and other intellectual property rights
therein. CuraGen shall not (and shall not attempt or purport to) file or
prosecute any patent application in any country which claims or purports to
claim the ABX Technology and Information, unless the parties otherwise
expressly agree in writing. ABX shall solely own all right, title and interest
in the Excluded ABX Technology and in all patent rights and other intellectual
property rights therein. CuraGen shall not (and shall not attempt or purport
to) file or prosecute any patent application in any country which claims or
purports to claim the Excluded ABX Technology.

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

43

 

12.1.2
CuraGen shall solely own all right, title and interest in the CuraGen
Technology and Information and in all patent rights and other intellectual
property rights therein. ABX shall not (and shall not attempt or purport to)
file or prosecute any patent application in any country which claims or
purports to claim the CuraGen Technology and Information, unless the parties
otherwise expressly agree in writing. CuraGen shall solely own all right, title
and interest in the Excluded CuraGen Technology and in all patent rights and
other intellectual property rights therein. ABX shall not (and shall not
attempt or purport to) file or prosecute any patent application in any country
which claims or purports to claim the Excluded CuraGen Technology.

 

12.1.3
ABX shall solely own all right, title and interest in Research Program
Technology and Information conceived, reduced to practice or otherwise derived
solely by Persons on behalf of ABX, together with all patent rights and other
intellectual property rights therein and, subject to the provisions of this
Agreement, shall have the right to freely exploit, transfer, license, or
encumber its rights thereto. CuraGen shall solely own all right, title and
interest in Research Program Technology and Information conceived, reduced to practice
or otherwise derived solely by Persons on behalf of CuraGen, together with all
patent rights and other intellectual property rights therein and, subject to
the provisions of this Agreement, shall have the right to freely exploit,
transfer, license, or encumber its rights thereto. The parties jointly shall
own all right, title and interest in Research Program Technology and
Information conceived, reduced to practice or otherwise derived jointly by
Persons on behalf of ABX and by Persons on behalf of CuraGen, together with all
patent rights and other intellectual property rights therein. Each party shall
have the right, subject to the provisions of this Agreement, to freely exploit,
transfer, license or encumber its rights in any jointly-owned Research Program
Technology and Information (and all patent rights and other intellectual
property rights therein) without the consent of, or payment or accounting to,
the other party.

 

12.1.4
The transfer of physical possession of any Technology and Information owned by,
and the physical possession and use of any Technology and Information by,
CuraGen or ABX, as the case may be, shall not be (nor be construed as) a sale,
lease, offer to sell or lease, or other transfer of title of such Technology
and Information to CuraGen or ABX, as the case may be.

 

12.1.5
During the term of this Agreement, neither party shall (and neither party shall
attempt or purport to) assign, sell, have sold, lease, offer to sell or lease,
otherwise transfer title to, or otherwise distribute or license, sublicense or
otherwise commercialize or exploit, any Research Program Technology and
Information, except as otherwise set forth herein or the parties otherwise
expressly agree in writing.

 

12.2 Assignment
and Disclosure. Each party shall cause all employees and others conducting
work on its behalf under this Agreement to promptly disclose to the other party
all Technology and Information in which the other party has an ownership
interest, and to assign any and all right, title and interest in all Technology
and Information and all patent rights and other intellectual property rights
therein in accordance with this Agreement. Each party

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

44

 

shall maintain records in
sufficient detail and in good scientific manner appropriate for patent purposes
to properly reflect all work done and results achieved in conducting its work
hereunder, and shall respond to reasonable requests of the other party for
information regarding Technology and Information in which the other party has
an ownership interest.

 

12.3 Research
Program Patent Rights.

 

12.3.1
Prosecution and Maintenance.

 

(a) Subject
to the provisions of Section 12.3.1(e) and Section 12.3.1(g) below,
ABX shall have the right (but not the obligation), at its sole expense, to
prepare, file, prosecute and maintain the ABX Patent Rights. ABX will use
reasonable efforts to file Antibody composition of matter claims (i) with
respect to any ABX Patent Rights arising before the Revision Date, within 6
months of the Revision Date and (ii) with respect to any ABX Patent Rights
arising after the Revision Date, within 6 months of characterization of
Antibody supernatants resulting from immunizations with Research Antigens. If
ABX unreasonably fails to file such claims in such time period, CuraGen may, by
written notice to ABX, assume control of the preparation, filing, prosecution
and maintenance of the ABX Patent Rights, to the extent and only to the extent,
that such ABX Patent Rights claim such Antibodies as a composition of matter,
and ABX shall reimburse CuraGen on demand for all expenses of the preparation,
filing, prosecution and maintenance of such ABX Patent Rights.

 

(b) CuraGen
shall have the right (but not the obligation), at its sole expense, to prepare,
file, prosecute and maintain the CuraGen Patent Rights. CuraGen shall have the right to use
Antigen Specific Materials and Information and Research Program Technology and
Information in preparing, prosecuting, maintaining and defending CuraGen Patent
Rights; provided, however, that CuraGen shall not claim any ABX Technology.

 

(c) Subject
to the provisions of Section 12.3(a) above and Section 12.3.1(e) and
(f) below, (i) ABX shall have the right (but not the obligation), at
its sole expense, to prepare, file, prosecute and maintain the Research Program
Patent Rights owned solely by ABX; (ii) CuraGen shall have the right (but
not the obligation), at its sole expense, to prepare, file, prosecute and
maintain the Research Program Patent Rights owned solely by CuraGen; and (iii) CuraGen
shall have the right (but not the obligation) to prepare, file, prosecute and
maintain the Research Program Patent Rights owned jointly by the parties, and
ABX shall reimburse CuraGen on demand for one-half the reasonable expenses
thereof.

 

(d) Any
method of use data arising from the conduct of in-vitro assays or use of
in-vivo models in the Research Program will be filed by the responsible party
simultaneously in the patent applications claiming Antibodies and Research
Antigens, regardless of the category in which such patent applications fall.
The parties will coordinate such filings and will use reasonable efforts to
file such applications within three months of generating the data.

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

45

 

(e) Upon
the effective date of a research license under Article 6 to a CuraGen
Optioned Antigen, and for so long as such license or a commercial license under
Article 7 for such Antigen remains in effect, (i) CuraGen shall have
the right (but not the obligation) to assume control of the preparation,
filing, prosecution and maintenance of the Research Program Patent Rights that
specifically and solely claim such CuraGen Licensed or Optioned Antigen or the
use thereof; (ii) CuraGen shall have the right (but not the obligation) to
assume control of the preparation, filing, prosecution and maintenance of the
ABX Patent Rights that specifically and solely claim the use of such CuraGen
Antigen or Antibodies to such CuraGen Licensed or Optioned Antigen or the use
thereof; (iii) CuraGen shall reimburse ABX on demand for all previously
unreimbursed expenses of the preparation, filing, prosecution and maintenance
of such ABX Patent Rights and Research Program Patent Rights; and (iv) CuraGen
shall be solely responsible for the expenses of the preparation, filing,
prosecution and maintenance of such ABX Patent Rights and Research Program
Patent Rights thereafter. In the event there are any Research Program Patent
Rights or ABX Patent Rights with such claims and other claims, ABX shall file
such divisional or other applications, to the extent legally permitted, as may
be necessary to separate such claims into a separate application, which CuraGen
shall then have the right to control as aforesaid. If the claims cannot be so
separated ABX will take no action with respect to any such claim that would
materially narrow the scope thereof without CuraGen’s express written consent,
which consent shall not be unreasonably withheld or delayed. If CuraGen assumes
control of any patent application pursuant to this Section and determines
to abandon such application, CuraGen shall give written notice of such
intention to ABX at least thirty (30) days before taking such action, and ABX
shall have the right, by written notice to CuraGen, to assume the prosecution
and maintenance thereof.

 

(f) Upon
the effective date of a research license under Article 6 to an ABX
Optioned Antigen, and for so long as such license or a commercial license under
Article 7 for such Antigen remains in effect, (i) ABX shall have the
right (but not the obligation) to assume control of the preparation, filing,
prosecution and maintenance of the Research Program Patent Rights that
specifically and solely claim such ABX Licensed or Optioned Antigen or the use
thereof; (ii) ABX shall have the right (but not the obligation) to assume
control of the preparation, filing, prosecution and maintenance of the CuraGen
Patent Rights that specifically and solely claim antibodies to such ABX
Licensed or Optioned Antigen or the use thereof; (iii) ABX shall reimburse
CuraGen on demand for all previously unreimbursed expenses of the preparation,
filing, prosecution and maintenance of such Research Program Patent Rights and
CuraGen Patent Rights; and (iv) ABX shall be solely responsible for the
expenses of the preparation, filing, prosecution and maintenance of such
Research Program Patent Rights and CuraGen Patent Rights thereafter. In the
event there are any Research Program Patent Rights or CuraGen Patent Rights
with such claims and other claims, CuraGen shall file such divisional or other
applications, to the extent legally permitted, as may be necessary to separate
such claims into a separate application, which ABX shall then have the right to
control as aforesaid. If the claims cannot be so separated CuraGen will take no
action with respect to any such claim that would materially narrow the scope
thereof without ABX’s express written consent, which consent shall not be
unreasonably withheld or delayed. If ABX assumes control of any patent
application pursuant to this Section and determines to abandon such
application, ABX shall give

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

46

 

written notice of such
intention to CuraGen at least thirty (30) days before taking such action, and
CuraGen shall have the right, by written notice to ABX, to assume the
prosecution and maintenance thereof.

 

(g) CuraGen
shall have the right (but not the obligation) to control the preparation,
filing, prosecution and maintenance of any Research Program Patent Rights and
ABX Patent Rights that specifically and solely claim any CuraGen Exclusive
Antigen or the use thereof or Antibodies that Specifically Bind to such CuraGen
Exclusive Antigen or the use thereof. In the event there are any Research
Program Patent Rights or ABX Patent Rights with such claims and other claims,
ABX shall file such divisional or other applications, to the extent legally
permitted, as may be necessary to separate such claims into a separate
application, which CuraGen shall then have the right to control as aforesaid.
If the claims cannot be so separated ABX will take no action with respect to
any such claim that would materially narrow the scope thereof without CuraGen’s
express written consent, which consent shall not be unreasonably withheld or
delayed.

 

(h) With
respect to each patent application and patent within the Licensed Intellectual
Property Rights or Research Program Patent Rights that specifically and solely
claims an Optioned Antigen, a Licensed Antigen, an Antibody that Specifically
Binds to an Optioned Antigen, an Antibody to a Licensed Antigen or the use
thereof and with respect to each other patent and patent application within the
Research Program Patent Rights owned jointly by the parties, the controlling
party shall (i) provide the non-controlling party with any patent
application filed by the controlling party prior to filing in order to provide
the non-controlling party with an opportunity to comment thereon, and consider
in good faith reasonable comments by the non-controlling party thereon; (ii) provide
the non-controlling party with any patent application filed by the controlling
party promptly after such filing; and (iii) provide the non-controlling
party promptly with copies of all substantive communications received from or
filed in patent office(s) with respect to such filings and consider in
good faith reasonable comments by the non-controlling party thereon; and (iv) use
commercially reasonable efforts to obtain the broadest reasonable claims.

 

(i) The
non-controlling party shall assist the controlling party, upon the controlling
party’s request, and to the extent commercially reasonable, in preparing,
filing or maintaining the patent applications and patents within the Research
Program Patent Rights and Licensed Intellectual Property Rights.

 

12.3.2
Enforcement.

 

(a) Subject
to the provisions of Section 12.3.2(e) below, ABX shall have the
right (but not the obligation), at its sole expense, to control the enforcement
of the ABX Patent Rights; provided, however, that CuraGen shall have the right
(but not the obligation), at its sole expense, to control the enforcement of
those ABX Patent Rights (if any) for which CuraGen assumes control of the
preparation, filing, prosecution and maintenance under Section 12.3.1(e) and
(g) above.

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

47

 

(b) Subject
to the provisions of Section 12.3.2(e) below, CuraGen shall have the
right (but not the obligation), at its sole expense, to control the enforcement
of the CuraGen Patent Rights; provided, however, that ABX shall have the right
(but not the obligation), at its sole expense, to control the enforcement of
those CuraGen Patent Rights (if any) for which ABX assumes control of the
preparation, filing, prosecution and maintenance under Section 12.3.1(f) above.

 

(c) Subject
to the provisions of Section 12.3.2(e) below, the controlling party
identified under Section 12.3.1 above shall have the first right (but not
the obligation), at its sole expense, to enforce the Research Program Patent
Rights.

 

(d) With
respect to each patent within the Licensed Intellectual Property Rights or
Research Program Patent Rights that specifically and solely claims a Licensed
Antigen, an Antibody to a Licensed Antigen or the use thereof, the controlling
party shall keep the non-controlling party informed and consider in good faith
the reasonable comments of the non-controlling party, both prior to and during
any such enforcement. The non-controlling party shall assist the controlling
party, upon request and at the controlling party’s sole expense, and to the
extent commercially reasonable, in taking any action to enforce such Licensed
Intellectual Property Rights or Research Program Patent Rights to the extent
the non-controlling party has the right to do so.

 

(e) If
the controlling party fails to abate an infringement of any patent within the
Licensed Intellectual Property Rights or Research Program Patent Rights that
specifically and solely claims a Licensed Antigen, an Antibody to a Licensed
Antigen or the use thereof, or to file an action to abate such infringement,
within ninety (90) days after a written request from the non-controlling party
to do so, or if the controlling party discontinues the prosecution of any such
action after filing patent, the non-controlling party at its expense may, in
its discretion, undertake such action as it determines appropriate to enforce
the Research Program Patent Rights. In such case, the controlling party shall
assist the non-controlling party, upon request and at the non-controlling party’s
sole expense, and to the extent commercially reasonable, in taking any action
to enforce such patent within the Licensed Intellectual Property Rights or
Research Program Patent Rights to the extent the controlling party has the
right to do so.

 

(f) All
monies recovered upon the final judgment or settlement of any such action
regarding the Licensed Intellectual Property Rights or Research Program Patent
Rights that specifically and solely claims a Licensed Antigen, an Antibody to a
Licensed Antigen or the use thereof shall be used (i) first, to reimburse
the costs and expenses (including reasonable attorneys’ fees and costs) of the
controlling party and the non-controlling party, and (ii) the remainder,
[******************************].

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

48

 

12.4 Patent
Marking. Each party shall mark, and shall cause its Sublicensees and their
respective Affiliates to mark all Products, sold pursuant to this Agreement by
such party, its Sublicensees and their respective Affiliates in accordance with
the requirements of applicable laws and regulations in the country or countries
of manufacture and sale thereof.

 

12.5 Limitation.
Notwithstanding any other provision in this Article 12, (a) ABX shall
not be obligated to prepare, file, prosecute, and maintain patents and patent
applications, or to bring or pursue enforcement proceedings or defend
declaratory judgment actions regarding the Licensed ABX Intellectual Property
if, and to the extent that, ABX is not entitled to do so under one or more ABX
In-Licenses, and (b) any rights conveyed under this Article 12
permitting CuraGen to prepare, file, prosecute and maintain certain patents and
patent applications, or to bring and pursue enforcement proceedings, or defend
declaratory judgment actions, regarding the Licensed ABX Intellectual Property,
shall be subject to all applicable ABX In-Licenses, and are conveyed only to
the extent permitted under such agreements.

 

12.6 Use
and Transfer Restrictions. Each party shall use the Technology and
Information owned by the other party solely for purposes of conducting its
obligations or exercising its rights under this Agreement, at its facilities,
under commercially and scientifically reasonable containment conditions, and
not for any other commercial, business or other use or purpose, without the prior
express written consent of the other party. Except as otherwise provided in
this Agreement, (a) a party shall not transfer or provide access to the
Technology and Information owned by the other party to any Affiliate or Third
Party; (b) a party shall not transfer or transport the Technology and
Information owned by the other party from its facilities to any other location;
(c) a party shall limit access to the Technology and Information owned by
the other party to those of its employees working on its premises, to the
extent such access is reasonably necessary to conduct its obligations or
exercise its rights under this Agreement; and (d) a party shall not (and
shall not attempt or purport to) assign, sell, have sold, lease, offer to sell
or lease, otherwise transfer title to, or otherwise distribute or license,
sublicense or otherwise commercialize or exploit, any Technology and
Information owned by the other party or any interest therein.

 

12.7 Grant
Backs.

 

12.7.1
It is the intent of the parties that this Agreement shall not restrict ABX’s
freedom to practice and commercialize the Licensed ABX Intellectual Property,
the XenoMouse Animals and the ABX Technology and Information, except as
expressly set forth herein. CuraGen hereby grants to ABX a royalty-free,
perpetual, irrevocable, exclusive, worldwide license (with the right to grant
sublicenses) under CuraGen’s rights in the Research Program Patent Rights and
Research Program Know-How to research, develop, make, have made, use, offer for
sale, sell and import Human Antibody Equivalents and products comprising Human
Antibody Equivalents (other than CuraGen Products) for all uses. CuraGen hereby
grants to ABX a royalty-free, perpetual, irrevocable, nonexclusive worldwide
license (with the right to grant sublicenses) under CuraGen’s rights in the
Research Program Patent Rights and Research Program Know-How to research,
develop, make and use Antibody Equivalents (other

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

49

 

than Human Antibody
Equivalents) solely in connection with the research, development, making,
having made, using, offering for sale, selling and importing of Human Antibody
Equivalents and products comprising Human Antibody Equivalents (other than
CuraGen Products) for all uses. CuraGen hereby grants to ABX a royalty-free,
perpetual, irrevocable, nonexclusive, worldwide license (with the right to
grant sublicenses) under those certain one or more CuraGen Patent Rights, which
have a common claim of priority and relate to the same antigen and in which the
claims within such CuraGen Patent Rights are supported by information or data
derived from the use of the ABX Technology and Information and/or Research
Program Technology and Information, solely in connection with the research,
development, making, having made, using, offering for sale, selling and
importing of Human Antibody Equivalents and products comprising Human Antibody
Equivalents (other than CuraGen Products) for all uses.

 

12.7.2
It is the intent of the parties that this Agreement shall not restrict CuraGen’s
freedom to practice and commercialize the Licensed CuraGen Intellectual
Property, the CuraGen Databases, and the CuraGen Technology and Information,
except as expressly set forth herein. ABX hereby grants to CuraGen a
royalty-free, perpetual, irrevocable, exclusive, worldwide license (with the
right to grant sublicenses) under ABX’s rights in the Research Program Patent
Rights and Research Program Know-How to research, develop, make, have made,
use, offer for sale, sell and import Antibody Equivalents (other than Human
Antibody Equivalents) and compositions other than Antibody Equivalents, and
products (other than ABX Products) comprising Antibody Equivalents (other than
Human Antibody Equivalents) and compositions other than Antibody Equivalents, for
all uses; provided, however, that ABX reserves, for itself and its
sublicensees, the right under ABX’s rights in the Research Program Patent
Rights and Research Program Know-How to exercise its license rights granted
under Section 12.7.1 above. ABX hereby grants to CuraGen a royalty-free,
perpetual, irrevocable, nonexclusive, worldwide license (with the right to
grant sublicenses) under those certain one or more ABX Patent Rights, which
have a common claim of priority and relate to the same antigen and in which the
claims within such ABX Patent Rights are supported by information or data
derived from the use of the CuraGen Technology and Information and/or Research
Program Technology and Information, solely in connection with the research,
development, making, having made, using, offering for sale, selling and
importing of Antibody Equivalents (other than Human Antibody Equivalents) and
compositions other than Antibody Equivalents, and products (other than ABX
Products) comprising Antibody Equivalents (other than Human Antibody
Equivalents) and compositions other than Antibody Equivalents, for all uses.

 

12.8
Imaging Peptides. Nothing in this Agreement shall preclude CuraGen from making,
using, offering for sale, selling or importing Imaging Peptides for purposes of
in vivo diagnostic imaging use.

 

13. INDEMNIFICATION

 

13.1 ABX.
ABX shall indemnify and hold harmless CuraGen, and its directors, officers,
employees and agents, from and against all losses, liabilities, damages and
expenses, including reasonable attorneys’ fees and costs (collectively, “Liabilities”),
resulting from any

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

50

 

claims, demands, actions
or other proceedings by any Third Party arising from (a) the material
breach of any representation, warranty or covenant by ABX under this Agreement,
(b) any use, handling or storage by ABX, its Sublicensees (other than
CuraGen) and their respective Affiliates of the CuraGen Technology and
Information or the Research Program Technology and Information, (c) the
manufacture, use, sale, handling or storage by ABX, its Sublicensees (other
than CuraGen) and their respective Affiliates of ABX Products (without regard
to culpable conduct), or (d) any use by ABX, its Sublicensees (other than
CuraGen) and their respective Affiliates of the Confidential Information of
CuraGen; provided, however, that ABX shall not be obligated to indemnify or
hold harmless CuraGen for such Liabilities to the extent that such Liabilities
arise from the gross negligence or willful misconduct of CuraGen.

 

13.2 CuraGen.
CuraGen shall indemnify and hold harmless ABX, and its directors, officers,
employees and agents, from and against all Liabilities resulting from any
claims, demands, actions or other proceedings by any Third Party arising from (a) the
material breach of any representation, warranty or covenant by CuraGen under
this Agreement, (b) any use, handling or storage by CuraGen, its
Sublicensees (other than ABX) and their respective Affiliates of the ABX
Technology and Information or the Research Program Technology and Information, (c) the
manufacture, use, sale, handling or storage by CuraGen, its Sublicensees (other
than ABX) and their respective Affiliates of CuraGen Products (without regard
to culpable conduct), or (d) any use by CuraGen, its Sublicensees (other
than ABX) and their respective Affiliates of the Confidential Information of
ABX; provided, however, that CuraGen shall not be obligated to indemnify or
hold harmless ABX for such Liabilities to the extent that such Liabilities
arise from the gross negligence or willful misconduct of ABX.

 

13.3 Procedure.
If a party (an “Indemnitee”) intends to claim indemnification under this Article 13,
it shall promptly notify the indemnifying party (the “Indemnitor”) in writing
of any claim, demand, action or other proceeding for which the Indemnitee
intends to claim such indemnification, and the Indemnitor shall have the right
to participate in, and, to the extent the Indemnitor so desires, to assume the
defense thereof with counsel mutually satisfactory to the parties; provided,
however, that an Indemnitee shall have the right to retain its own counsel,
with the fees and expenses to be paid by the Indemnitor, if representation of
such Indemnitee by the counsel retained by the Indemnitor would be inappropriate
due to actual or potential differing interests between such Indemnitee and any
other party represented by such counsel in such proceeding. The indemnity
agreement in this Article 13 shall not apply to amounts paid in settlement
of any claim, demand, action or other proceeding if such settlement is effected
without the consent of the Indemnitor, which consent shall not be withheld or
delayed unreasonably. The failure to deliver written notice to the Indemnitor
within a reasonable time after the commencement of any such action, if
prejudicial to its ability to defend such action, shall relieve such Indemnitor
of any liability to the Indemnitee under this Article 13, but the omission
so to deliver written notice to the Indemnitor shall not relieve it of any
liability that it may have to any party claiming indemnification otherwise than
under this Article 13. The party claiming indemnification under this Article 13,
its employees and agents, shall reasonably cooperate with the Indemnitor and
its legal representatives in the investigation of any claim, demand, action or
other proceeding covered by this indemnification.

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

51

 

13.4 Insurance.
Each party shall maintain insurance, including product liability insurance,
with respect to the research, development, manufacture and sale of Products
hereunder by such party, its Sublicensees and their respective Affiliates in
such amount as such party customarily maintains with respect to the research,
development, manufacture and sale of its other products. Each party shall
maintain such insurance for so long as such party, its Sublicensees and their
respective Affiliates continues to research, develop, manufacture or sell any
Products hereunder, and thereafter for so long as such party customarily
maintains insurance covering the research, development, manufacture and sale of
its other products.

 

14. TERM AND TERMINATION

 

14.1 Term.
The term of this Agreement shall commence on the Effective Date and, unless
earlier terminated, shall continue in full force and effect until the
expiration of the parties’ respective royalty obligations pursuant to this
Agreement.

 

14.2 Termination.

 

14.2.1
If CuraGen breaches its obligations under Section 8.2, 8.3 or 8.4 above,
or materially breaches its obligations under Section 10.1 above, with
respect to any Antigen or to CuraGen Products to any CuraGen Licensed Antigen,
and such breach shall have continued for ten (10) days, in the case of
breaches under Section 8.2, 8.3, or 8.4, or for thirty (30) days, in the
case of material breaches under Section 10.1, after written notice of such
breach was provided to CuraGen by ABX, ABX shall have the right at its option
to terminate the licenses (or sublicenses, as the case may be) under this
Agreement with respect to such Antigen or to CuraGen Products to such CuraGen
Licensed Antigen (as applicable) effective at the end of such ten (10) day
or thirty (30) day period, as the case may be, without otherwise affecting the
other licenses (or sublicenses, as the case may be) granted under this
Agreement or the other remaining provisions of this Agreement. In the event of
such termination by ABX, the Antigen which was the subject of the termination
shall be subject to ABX’s standby option under Section 7.2.2, CuraGen’s
obligation to provide data and information under Section 7.2.2 shall apply
to all data and information in existence at the time of the termination, the
six-month period in which to exercise such option shall commence on the date of
termination, and no payment shall be due under Section 8.2.3 upon the
exercise by ABX of such option.

 

14.2.2
If ABX breaches its obligations under Section 8.2, 8.3 or 8.4 above, or
materially breaches its obligations under Section 10.2 above, with respect
to any Antigen or to ABX Products to any ABX Licensed Antigen, and such breach
shall have continued for ten (10) days, in the case of breaches under Section 8.2,
8.3, or 8.4, or for thirty (30) days, in the case of material breaches under Section 10.2,
after written notice of such breach was provided to ABX by CuraGen, CuraGen
shall have the right at its option to terminate the licenses (or sublicenses,
as the case may be) under this Agreement with respect to such Antigen or to ABX
Products to such ABX Licensed Antigen (as applicable) effective at the end of
such ten (10) day or thirty (30) day period, as the case may be, without
otherwise affecting the other licenses (or sublicenses, as the case may be)
granted under this Agreement or the other remaining

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

52

 

provisions of this
Agreement. In the event of such termination by CuraGen, the Antigen which was
the subject of the termination shall be subject to CuraGen’s standby option
under Section 7.1.2, ABX’s obligation to provide data and information
under Section 7.1.2 shall apply to all data and information in existence
at the time of the termination, the six-month period in which to exercise such
option shall commence on the date of termination, and no payment shall be due
under Section 8.2.3 upon the exercise by CuraGen of such option.

 

14.2.3
If a party shall have materially breached any of its material obligations
hereunder (other than under Sections 8.2, 8.3, 8.4, 10.1 and 10.2 above), and
such breach shall have continued for thirty (30) days after written notice of
such breach was provided to the breaching party by the nonbreaching party, the
nonbreaching party shall have the right (at its option), effective at the end
of such thirty (30) day period, to terminate the Research Program and all
options, licenses, and rights to obtain additional options and licenses granted
to the breaching party under this Agreement; provided, however, that any
commercial licenses previously granted to the breaching party under Article 7
above (and any related continuing research licenses to the breaching party
under Section 6.1 above), all licenses granted to the breaching party
under Section 12.7 above, and all options, licenses, and rights to obtain
additional options and licenses granted to the nonbreaching party under this
Agreement shall survive any such termination by the nonbreaching party under
this Section 14.2.3.

 

14.3 Effect
of Expiration or Termination.

 

14.3.1
Expiration or termination of this Agreement shall be without prejudice to any
rights which shall have accrued to the benefit of a party prior to such
expiration or termination. Without limiting the foregoing, the license rights
granted under Section 4.2.7, Section 4.2.2 and the provisions of
Sections 4.4.4 and 8.1 and Articles 9, 11, 12, 13, 14 and 15 shall survive any
expiration or termination of this Agreement.

 

14.3.2
Following the expiration under Section 8.4.3(e) of CuraGen’s
obligation to pay royalties to ABX hereunder with respect to a CuraGen Product
(provided that CuraGen’s option, license or other rights with respect to such
CuraGen Product have not been previously terminated), CuraGen shall have a
fully-paid up, non-exclusive license (or sublicense, as the case may be) (with
the right to grant sublicenses) under the ABX Know-How and Research Program
Know-How solely to make, have made, use, offer for sale, sell and import such
CuraGen Product for use in the Commercial Field. Following the expiration under
Section 8.4.3(e) of ABX’s obligation to pay royalties to CuraGen
hereunder with respect to an ABX Product (provided that ABX’s option, license
or other rights with respect to such ABX Product have not been previously
terminated), ABX shall have a fully-paid up, non-exclusive license (or
sublicense, as the case may be) (with the right to grant sublicenses) under the
CuraGen Know-How and Research Program Know-How solely to make, have made, use,
offer for sale, sell and import such ABX Product for use in the Commercial
Field.

 

14.3.3
Upon termination of this Agreement, or upon termination of the licenses (or
sublicenses, as the case may be) hereunder for any CuraGen Product, CuraGen,
its

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

53

 

Sublicensees and their
respective Affiliates shall have the right to sell or otherwise dispose
(consistent with all applicable laws and regulations and subject to Articles 8
and 9 above) of the stock of any CuraGen Product then on hand. Upon termination
of this Agreement, or upon termination of the licenses (or sublicenses, as the
case may be) hereunder for any ABX Product, ABX, its Sublicensees and their
respective Affiliates shall have the right to sell or otherwise dispose
(consistent with all applicable laws and regulations and subject to Articles 8
and 9 above) of the stock of any ABX Product then on hand.

 

14.3.4
Upon termination of this Agreement by ABX, or upon termination by ABX of the
licenses (or sublicenses, as the case may be) hereunder for any CuraGen
Product, any Sublicense granted by CuraGen hereunder shall survive, provided
that upon request by ABX, such Sublicensee promptly agrees in writing that such
Sublicensee shall be bound by the terms of such Sublicense for the benefit of
ABX and ABX shall have all of the rights of CuraGen under such Sublicense, but
ABX shall not be bound by any obligation of CuraGen thereunder except to the
extent it is already bound to an equivalent obligation hereunder. Upon
termination of this Agreement by CuraGen, or upon termination by CuraGen of the
licenses (or sublicenses, as the case may be) hereunder for any ABX Product,
any Sublicense granted by ABX hereunder shall survive, provided that upon
request by CuraGen, such Sublicensee promptly agrees in writing that such
Sublicensee shall be bound by the terms of such Sublicense for the benefit of
CuraGen and CuraGen shall have all of the rights of ABX under such Sublicense,
but CuraGen shall not be bound by any obligation of ABX thereunder except to
the extent it is already bound to an equivalent obligation hereunder.

 

14.3.5
Except as otherwise expressly agreed in writing by the parties, promptly upon
the expiration of the Extended Research License Term, each party shall destroy
all remaining Research Program Technology and Information and Antigen Specific
Materials and Information; in each case except to the extent such party retains
an option or license (or sublicense, as the case may be) thereto hereunder;
that survives such expiration or termination.

 

14.3.6
Except as otherwise expressly agreed in writing by the parties, promptly upon
the expiration or earlier termination of this Agreement, (a) CuraGen shall
destroy or return to ABX (as ABX shall direct) all remaining ABX Technology and
Information; (b) ABX shall destroy or return to CuraGen (as CuraGen shall
direct) all remaining CuraGen Technology and Information; and (c) each
party shall destroy all remaining Research Program Technology and Information
and Antigen Specific Materials and Information; in each case except to the
extent such party retains a license (or sublicense, as the case may be) thereto
hereunder; that survives such expiration or termination.

 

14.3.7
Except as otherwise expressly agreed in writing by the parties, promptly upon
the termination of the license (or sublicense, as the case may be)s granted to
CuraGen hereunder regarding any Antigen, CuraGen shall destroy or return to ABX
(as ABX shall direct) all remaining ABX Technology and Information regarding
such Antigen, Antibodies to such Antigens and Products to such Antigen, and
shall destroy all remaining Research Program Technology and Information and
Antigen Specific Materials and Information regarding such Antigen, Antibodies
to such Antigens and Products to such Antigen.

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

54

 

14.3.8
Except as otherwise expressly agreed in writing by the parties, promptly upon
the termination of the license (or sublicense, as the case may be)s granted to
ABX hereunder regarding any Antigen, ABX shall destroy or return to CuraGen (as
CuraGen shall direct) all remaining CuraGen Technology and Information
regarding such Antigen, Antibodies to such Antigens and Products to such
Antigen, and shall destroy all remaining Research Program Technology and
Information and Antigen Specific Materials and Information regarding such
Antigen, Antibodies to such Antigens and Products to such Antigen.

 

15. MISCELLANEOUS

 

15.1 Governing
Laws. This Agreement shall be governed by, interpreted and construed in
accordance with the laws of the State of Delaware, without regard to conflicts
of law principles.

 

15.2 Waiver.
No waiver by any party hereto of any breach or default of any of the covenants
or agreements herein set forth shall be deemed a waiver as to any subsequent
and/or similar breach or default.

 

15.3 Assignments.
Neither this Agreement nor any right or obligation hereunder may be assigned or
delegated, in whole or part, by either party without the prior express written
consent of the other; provided, however, that either party may, without the
written consent of the other, assign this Agreement and its rights and delegate
its obligations hereunder in connection with the transfer or sale of all or
substantially all of its business, or in the event of its merger,
consolidation, change in control or similar transaction. Any permitted assignee
shall assume all obligations of its assignor under this Agreement. Any
purported assignment in violation of this Section 15.3 shall be void.

 

15.4 Independent
Contractors. The relationship of the parties hereto is that of independent
contractors. The parties hereto shall not be deemed to be agents, partners or
joint venturers of the others for any purpose as a result of this Agreement or
the transactions contemplated thereby.

 

15.5 Further
Actions. Each party agrees to execute, acknowledge and deliver such further
instruments and to do all such other acts as may be necessary or appropriate in
order to carry out the purposes and intent of this Agreement.

 

15.6 Notices.
All requests and notices required or permitted to be given to the parties
hereto shall be given in writing, shall expressly reference the section(s) of
this Agreement to which they pertain, and shall be delivered to the other
party, effective on receipt, at the appropriate address as set forth below or
to such other addresses as may be designated in writing by the parties from
time to time during the term of this Agreement.

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

55

 

If to ABX:

 

Abgenix, Inc.

7601 Dumbarton Circle

Fremont, California 94555

Attn: President

 

with a copy to:

 

Gray Cary Ware & Freidenrich LLP

4365 Executive Drive, Suite 1600

San Diego, California 92121-2189

Attn: Mark R. Wicker

 

If to CuraGen:

 

CuraGen Corporation

555 Long Wharf Drive

New Haven, Connecticut 06511

Attn: President

 

with a copy to:

 

Mintz, Levin, Cohn, Ferris, Glovsky & Popeo,
P.C.

One Financial Center

Boston, Massachusetts 02111

Attn: Jeffrey M. Wiesen

 

15.7 No
Implied Licenses. Only licenses (or sublicenses, as the case may be) and
rights granted expressly herein shall be of legal force and effect. No license
(or sublicense, as the case may be) or other right shall be created hereunder
by implication, estoppel or otherwise. By way of clarification and not
limitation, no license (or sublicense, as the case may be) is granted hereunder
to CuraGen to have in its possession any XenoMouse Animals or to conduct
immunizations thereof.

 

15.8 Compliance
with Laws. Each party shall use the Technology and Information of the other
party and the Research Program Technology and Information in compliance in all
material respects with all applicable laws, guidelines and regulations which
are applicable to such Technology and Information or the use thereof, including
without limitation any biosafety procedures and all safety precautions
accompanying such Technology and Information. Except as otherwise expressly
agreed in this Agreement or otherwise expressly agreed in writing by the
parties, neither party shall administer the Technology and Information of the
other party or the Research Program Technology and Information to humans under
any circumstances.

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

56

 

15.9 Export
Laws. Notwithstanding anything to the contrary contained herein, all
obligations of ABX and CuraGen are subject to prior compliance with United
States export regulations and such other United States laws and regulations as
may be applicable, and to obtaining all necessary approvals required by the
applicable agencies of the government of the United States. Each party shall be
responsible for obtaining such approvals as required of it, and shall use
efforts consistent with prudent business judgment to obtain such approvals.
Each party shall cooperate reasonably with the other party and provide
reasonable assistance to the other party as may be reasonably necessary to
obtain any required approvals.

 

15.10 Force
Majeure. Nonperformance of a party (other than for the payment of money)
shall be excused to the extent that performance is rendered impossible by
strike, fire, earthquake, flood, governmental acts or orders or restrictions,
failure of suppliers, or any other reason where failure to perform, is beyond
the reasonable control and not caused by the negligence, intentional conduct or
misconduct of the nonperforming party.

 

15.11 No
Consequential Damages. IN NO EVENT SHALL A PARTY HERETO BE LIABLE FOR
SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF THIS AGREEMENT OR
THE EXERCISE OF ITS RIGHTS HEREUNDER, INCLUDING WITHOUT LIMITATION LOST PROFITS
ARISING FROM OR RELATING TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF ANY
NOTICE OF SUCH DAMAGES. NOTHING IN THIS SECTION 15.11 IS INTENDED TO LIMIT
OR RESTRICT THE INDEMNIFICATION RIGHTS OR OBLIGATIONS OF EITHER PARTY.

 

15.12 Third
Party Rights. Notwithstanding anything to the contrary in this Agreement,
the grant of rights by ABX under this Agreement shall be subject to and limited
in all respects by the terms of the applicable ABX In-License(s) pursuant
to which ABX acquired any Licensed ABX Intellectual Property, and all rights or
sublicenses granted under this Agreement shall be limited to the extent that
ABX may grant such rights and sublicenses under such ABX In-Licenses.
Additionally, and without limiting the foregoing, the rights granted to CuraGen
hereunder, including without limitation any grant of “exclusive” rights, shall
be subject to the rights granted to or retained by GenPharm under the GenPharm
Cross License Agreement.

 

15.13 Complete
Agreement. This Agreement constitutes the entire agreement between the
parties regarding the subject matter hereof, and all prior representations,
understandings and agreements regarding the subject matter hereof (including
without limitation, the Original Agreement and the letter dated July 5,
2000, from Christopher McLeod to Raymond Withy) either written or oral, expressed
or implied, are superseded and of no effect.

 

15.14 Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed
to be an original and both together shall be deemed to be one and the same
agreement.

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

57

 

15.15 Headings.
The captions to the several Articles and Sections hereof are not a part of this
Agreement, but are included merely for convenience of reference only and shall
not affect its meaning or interpretation.

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed by their
respective duly authorized officers as of the day and year first above written.

 

	
   

  	
  ABGENIX, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Signature)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Printed Name)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Title)

  
	
   

  	
   

  	
   

  
	
   

  	
  CURAGEN CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Signature)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Christopher K. McLeod

  
	
   

  	
   

  	
  (Printed Name)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Executive Vice
  President

  
	
   

  	
   

  	
  (Title)

  

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

58

 

EXHIBIT A

 

ABX PATENT RIGHTS

 

	
  I.

  	
  Pursuant to the MRLOA 

  

 

A. Any of the patent
applications listed in the following Table:

 

	
  [*******]

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

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

  	
   

  

 

	
   

  	
  B.

  	
  [****************************************************************]:
  

  

 

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

 

	
   

  	
  D.

  	
  [****************************************************************]:
  

  

 

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

 

	
   

  	
  E.

  	
  [****************************************************************]:
  

  

 

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

 

	
  II.

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

  

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

59

 

	
  A.

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

  

 

	
  B.

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

  

 

	
  C.

  	
  [******************************************************************]:
  

  

 

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

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

60

 

EXHIBIT B

 

ELIGIBLE ANTIGEN CRITERIA

 

A Research Antigen shall
become an Eligible Antigen if it meets the following criteria:

 

	
  1.

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

  

 

	
  2.

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

  

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

61

 

EXHIBIT C

 

RESEARCH PLAN

 

CuraGen/ABX Research Plan

 

[ATTACHED]

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

62

 

EXHIBIT D

 

THIRD PARTY AGREEMENTS

 

Collaboration Agreements
between CuraGen and

 

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

 

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

 

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

 

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

 

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

 

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

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

63

 

EXHIBIT E

 

RESEARCH ANTIGEN DESIGNATION

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

64

 

EXHIBIT F

 

FORM OF THREE-WAY MTA

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

65

 

EXHIBIT G

 

FORM OF TWO-WAY MTA

 

Portions
of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential Investment under Rule 24b-2 under the Securities Exchange Act
of 1934.

 

66Exhibit 10.29

 

	
  [LOGO]

  	
   

  
	
   

  	
  322 East Main Street  

  Branford, CT 06405  

  (203) 481-1104  

  (203) 315-3300
  Fax  

  www.curagen.com

  

 

May 2, 2009

 

Tom Boone

Vice President, Protein
Sciences

Amgen Fremont Inc.

One Amgen Center Drive

Thousand Oaks, CA
91320-1799

 

Dear Mr. Boone:

 

Reference
is made to that certain Second Restated Collaboration Agreement between Amgen
Fremont Inc. (successor in interest to Abgenix, Inc.) (“AFI”) and CuraGen
Corporation (“CuraGen”) dated as of April 12, 2004 and amended October 19,
2004 (“Collaboration Agreement”). AFI and CuraGen each may be referred to
herein as a “Party” and the two collectively as the “Parties,” and capitalized
terms used herein but not otherwise defined shall have the meanings ascribed to
them in the Collaboration Agreement.

 

Under
the Collaboration Agreement, (A) AFI granted to CuraGen certain licenses
relating to CuraGen Products, CuraGen Optioned Antigens and CuraGen Licensed
Antigens, and (B) CuraGen granted to AFI certain licenses to ABX Products,
ABX Optioned Antigens and ABX Licensed Antigens. The Parties now desire to
grant to each other such irrevocable licenses as may be necessary or useful to
permit each to fully develop and commercialize Products targeted to such Party’s
Optioned Antigens and Licensed Antigens as described more fully below, and
otherwise to terminate the Collaboration Agreement. Accordingly, this letter
agreement records the agreement between the Parties relating to such grants of
rights and termination of the Collaboration Agreement.

 

	
  1)

  	
  Licensed
  Antigens —
  The Parties hereby agree that each Optioned Antigen of either Party under the
  Collaboration Agreement immediately prior to the date this letter is
  acknowledged by AFI (the “Effective Date”) shall be deemed a Licensed Antigen
  for purposes of this letter agreement. The Parties further agree that as of
  the Effective Date the CuraGen Licensed Antigens consist of those antigens
  set forth on Schedule 1, and the ABX Licensed Antigens consist of those
  antigens set forth on Schedule 2.

  

 

1

 

	
  2)

  	
  Termination — By mutual agreement of the Parties,
  as of the Effective Date, the Collaboration Agreement will be irrevocably
  terminated and will be of no further force or effect; provided, however
  that Sections 8, 9, 11, 12.1, 12.3, 12.4, 12.5, 12.6, 12.7, 13 and 15 of the
  Collaboration Agreement, together with any definitions necessary to give
  effect to the terms of this letter agreement, shall survive such termination;
  and provided further that each reference to a Party’s
  Licensed Antigen or Optioned Antigen in any such surviving provision shall be
  deemed to refer to all of such Party’s Licensed Antigens as listed in
  Schedule 1 or 2 hereto, as applicable. The Parties expressly acknowledge and
  agree that this termination is by mutual agreement of the Parties.

  
	
   

  	
   

  
	
  3)

  	
  Royalties
  Payable by CuraGen — By mutual agreement of the Parties, as of the Effective Date, the
  Collaboration Agreement will be amended such that Article 8 of the
  Collaboration Agreement shall be deleted in its entirety and replaced with
  the following: 

  

 

“Curagen shall pay Amgen any payments that Amgen
reasonably believes are required to be made under the Third Party License
Agreements, including but not limited to any royalty and/or milestone payment
thereunder. For the purposes of this Agreement, “Third Party License Agreements”
shall mean (a) that certain License Agreement dated May 14, 2002
between Babraham Bioscience Technologies Limited and Amgen Fremont Inc.
(successor in interest to Abgenix, Inc.); (b) that certain License
Agreement with effective date of December 14, 1998, between Amgen Fremont
Inc. (successor in interest to Abgenix, Inc.) and Medical Research
Council; and (c) that certain License Agreement dated March 29, 1994,
by and between Medical Research Council, Agricultural and Food Research Council
Institute of Animal Physiology and Genetics Research of Babraham Hall, Marianne
Bruggeman c/o Institute of Animal Physiology and Genetics Research and Cell
Genesys, Inc.”

 

	
  4)

  	
  Grant
  of Rights 

  
	
   

  	
   

  
	
   

  	
  a)

  	
  Upon the Effective
  Date, CuraGen hereby grants to AFI an exclusive worldwide license (or
  sublicense, as the case may be) (with the right to grant sublicenses) under
  Licensed CuraGen Intellectual Property to research, develop, make, have made,
  use, import, offer to sell and sell ABX Products. “ABX Products” shall mean,
  with respect to any ABX Licensed Antigen, any product comprising (a) an
  Antibody which binds to such ABX Licensed Antigen; or (b) Genetic
  Material that encodes such Antibody, wherein, in respect of each ABX Product,
  said Genetic Material does not encode multiple antibodies. 

  
	
   

  	
   

  	
   

  
	
   

  	
  b)

  	
  Upon the Effective
  Date, AFI: 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  i)

  	
  shall deliver to
  CuraGen (a) all Antigen Specific Materials and Information in its
  possession pertaining to CuraGen Licensed Antigens, (b) all patent
  filings pertaining to or claiming CuraGen Licensed Antigens, and (c) all
  related Confidential Information of ABX or of CuraGen in AFI’s possession,
  and such Antigen Specific Materials and Information, patent filings and Confidential
  Information shall thereafter be the Confidential Information of CuraGen; 

  

 

2

 

	
   

  	
   

  	
  ii)

  	
  hereby grants to
  CuraGen an exclusive worldwide license (or sublicense, as the case may be)
  (with the right to grant sublicenses) under Licensed ABX Intellectual
  Property Controlled by AFI to research, develop, make, have made, use,
  import, offer to sell and sell CuraGen Products. “CuraGen Products” shall
  mean, with respect to any CuraGen Licensed Antigen, any product comprising (a) an
  Antibody which binds to such CuraGen Licensed Antigen; or (b) Genetic
  Material that encodes such Antibody, wherein, in respect of each CuraGen
  Product, said Genetic Material does not encode multiple antibodies. For the
  purposes of this Agreement, “Control” shall mean with respect to any
  intellectual property rights to which AFI has or obtains rights, possession
  by AFI or its Affiliate of the ability (whether by ownership, license or
  otherwise) to grant access, a license or a sublicense to such intellectual
  property right as provided for in this Agreement (i) without violating
  the terms of any agreement with any Third Party and (ii) without
  requiring any further payment (whether or not then due and payable) under any
  agreement with any Third Party (unless CuraGen elects in writing to pay any
  amounts owed to such Third Party under any such agreement by reason of
  CuraGen’s exploitation of CuraGen Products). For the sake of clarity, CuraGen
  has specifically elected to pay any amounts owing under the Third Party
  License Agreements referenced in Paragraph 3 (Royalties Payable by CuraGen). 

  
	
   

  	
   

  	
   

  	
   

  
	
  4)

  	
  Release — In consideration of the mutual
  promises contained herein, each Party, for itself and for each of its
  Affiliates, hereby generally, irrevocably, unconditionally and completely
  releases and forever discharges the other Party, such other Party’s
  Affiliates, and its and their officers, directors, stockholders, agents,
  employees, heirs, administrators, executors, predecessors, successors and
  assigns (hereinafter, the “Released Parties”) from, and hereby irrevocably,
  unconditionally and completely waives and relinquishes, each of such Party’s
  Released Claims. The Parties acknowledge they are aware that they may
  hereafter discover facts in addition to or different from those now known or
  believed to be true with respect to the subject matter of this release, but
  that it is their intention to hereby fully, finally and forever settle and
  release all such claims, disputes and differences, known or unknown, suspected
  or unsuspected, that now exist or heretofore have existed between the Parties
  and that in furtherance of such intention, this release shall remain in
  effect as a full and complete release notwithstanding the discovery or
  existence of any such additional or different facts. The term “Released
  Claims,” when used herein with respect to a Party, shall mean and include
  each and every claim, charge, complaint, demand, action, cause of action,
  suit, right, debt, sum of money, cost, reckoning, covenant, contract,
  agreement, promise, doing, omission, damage, execution, obligation,
  liability, and expense (including attorneys’ fees and costs), of every kind
  and nature, whether at law or in equity, that such Party may have had in the
  past, may now have or may have in the future against the Released Parties,
  and which has arisen or arises directly or indirectly out of, or relates
  directly or indirectly to, any circumstance, agreement, activity, action,
  omission, event or matter occurring or 

  

 

3

 

	
   

  	
  existing on or prior to
  the Effective Date to the extent such claim relates to or arises under the
  Collaboration Agreement; provided, however, that the Released Claims shall
  exclude: (1) any and all rights to seek and obtain indemnification under
  this letter agreement and the Collaboration; and (2) any and all rights
  to seek and obtain enforcement of, or a remedy arising out of the breach of,
  any obligation provided for in this letter agreement. 

  
	
   

  	
   

  
	
  5)

  	
  Miscellaneous  

  
	
   

  	
   

  	
   

  
	
   

  	
  a)

  	
  This letter agreement
  shall be binding upon the Parties and may not be modified in any manner,
  except by an instrument in writing of concurrent or subsequent date signed by
  duly authorized representatives of the Parties hereto. This letter agreement
  is binding upon and shall inure to the benefit of the Parties and their
  respective agents, assigns, heirs, executors, successors and administrators. 

  
	
   

  	
   

  	
   

  
	
   

  	
  b)

  	
  No delay or omission by
  either Party in exercising any right under this letter agreement shall operate
  as a waiver of that or any other right. A waiver or consent given by a Party
  on any one occasion shall be effective only in that instance and shall not be
  construed as a bar or waiver of any right on any other occasion.

  
	
   

  	
   

  	
   

  
	
   

  	
  c)

  	
  Should any provision of
  this letter agreement be declared or be determined by any court of competent
  jurisdiction to be illegal or invalid, the validity of the remaining parts,
  terms or provisions shall not be affected thereby and said illegal or invalid
  part, term or provision shall be deemed not to be a part of this letter
  agreement.

  
	
   

  	
   

  	
   

  
	
   

  	
  d)

  	
  This letter agreement
  shall be interpreted and construed by the laws of the State of Delaware
  without regard to its choice of law principles.

  
	
   

  	
   

  	
   

  
	
   

  	
  e)

  	
  This letter agreement
  contains and constitutes the entire understanding and agreement between the
  Parties hereto with respect to the subject matter hereof and cancels all
  previous oral and written negotiations, agreements, commitments, writings in
  connection therewith.

  

 

Please sign and date this
letter agreement in the space provided below to confirm our mutual
understandings and agreements as set forth in this letter agreement and return
a signed copy to the undersigned.

 

	
  Sincerely,

  	
   

  
	
   

  	
   

  
	
  CuraGen
  Corporation

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Tim Shannon

  	
   

  
	
  Name:

  	
  Tim Shannon

  	
   

  
	
  Title:

  	
  President and CEO

  	
   

  

 

4

 

	
  ACKNOWLEDGED
  AND AGREED

  	
   

  
	
   

  	
   

  
	
  AMGEN
  FREMONT INC.

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Thomas Boone

  	
   

  
	
  Name:

  	
  Thomas Boone

  	
   

  
	
  Title:

  	
  Vice President, Protein
  Sciences

  	
   

  
	
   

  	
   

  	
   

  
	
  5/1/09

  	
   

  	
   

  
	
  Date

  	
   

  	
   

  

 

5

 

Schedule 1

CuraGen Licensed Antigens

 

CR002

CR005

CR007

CR010

CR011

CR012

CR014

CR017

CR032

CR064

CR074

CR105

 

6

 

Schedule 2

ABX Licensed Antigens

 

CR026

CR031

CR039

CR106

CR109

CR110

 

7

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