Document:

exv10w16

 

Exhibit 10.16

CERTAIN MATERIAL (INDICATED BY AN ASTERISK) HAS BEEN OMITTED FROM THIS DOCUMENT PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT. THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.

AMENDMENT NO. 1 TO LICENSE AND COLLABORATION AGREEMENT

     Reference is made to that certain License and Collaboration Agreement (“Agreement”)
dated June 30, 2004 by and between Migenix, Inc., formerly known as Micrologix Biotech Inc.
(“Migenix”) and Cadence Pharmaceuticals, Inc., formerly known as Strata Pharmaceuticals,
Inc. (“Cadence”). All capitalized terms used herein and not otherwise defined shall have
the meanings assigned to such terms in the Agreement.

     Whereas, the parties desire to amend the Agreement as of October 6, 2006 (the
“Amendment Effective Date”) in accordance with the terms of this Amendment No. 1 (this
“Amendment”).

     Now Therefore, for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged by the parties, the parties hereto, intending to be legally bound,
agree as follows:

	1.	 	Section 1.13 of the Agreement is hereby amended and replaced in its entirety as follows:
	 
	 	 	“Compound” means the compound C90H127N27O12:
L-Isoleucyl-L-leucyl-L-arginyl-L-trypto-phyl-L-prolyl-L-tryptophyl-L-tryptophyl-L-prolyl-L-tr
ypto-phyl-L-arginyl-L-arginyl-L-lysinamide, sometimes called omiganan, and any
pharmaceutically acceptable salt, solvate, or hydrate thereof.
	 
	2.	 	A new definition is hereby added as Section 1.13.1 as follows:
	 
	 	 	"New Compound” means any Compound other than the Original Compound.
	 
	3.	 	Section 1.46 is hereby amended and replaced in its entirety as follows:
	 
	 	 	“Micrologix Know-How” means any and all Know-How related to the Compound or the Product,
including research and development and clinical studies hereunder and other obligations of
Micrologix hereunder, and which is under the Control of Micrologix as of the Amendment
Effective Date and any and all Improvements thereto, which is not covered by the Micrologix
Patent Rights, but is necessary or useful to the use, development, manufacture, marketing,
promotion, distribution, sale and/or commercialization of the Product in the Territory for
use in the Field.
	 
	4.	 	Section 1.47 is hereby amended and replaced in its entirety as follows:
	 
	 	 	“Micrologix Patent Rights” or “Micrologix Patent” means any and all Patent Rights that claim
Micrologix’s proprietary technology for the Product or the Compound which is under the
Control of Micrologix as of the Amendment Effective Date and any and all Patent Rights
covering Improvements thereto, which are necessary or useful to the use, development,
manufacture, marketing, promotion, distribution, sale and/or commercialization of the Product in the
Territory for use in the Field. The Micrologix Patent Rights as of the Amendment Effective
Date are set forth on Exhibit “B”. Any Micrologix Patent Rights issued after the Amendment
Effective Date shall be added to Exhibit“B”.

 

 

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	5.	 	A new definition is hereby added as Section 1.52.1 as follows:
	 
	 	 	"Original Compound” means omiganan pentahydrochloride as same is in clinical development by
Strata as of the Amendment Effective Date.
	 
	6.	 	A new Section 3.4(c) is hereby added to the Agreement:
	 
	 	 	(c) to the extent of its legal right to do so, Strata shall, at Micrologix’s request, grant
Micrologix a worldwide, exclusive, royalty-free, license under any Strata Work Product which
relates to: (1) any New Compound; and (2) any Product resulting from any New Compound; in
each case, to the extent necessary or useful to use, market, advertise, promote, distribute,
offer for sale, sell, make, manufacture, have manufactured, export and import, and develop
Products based on any New Compound (but not the Original Compound) with the right to
sublicense and assign the foregoing:

(i) during the Royalty Term, outside the Territory and inside the Territory but
outside the Field; and

(ii) after the Royalty Term, outside the Territory and inside the Territory both
inside and outside the Field.

	7.	 	Section 13.5(b)(vi) is hereby amended and replaced in its entirety as follows:
	 
	 	 	(vi) to the extent of its legal right to do so, Strata shall, at Micrologix’s request, grant
Micrologix a worldwide, exclusive, royalty-bearing, license under any Strata Work Product
which relates to any Product resulting from the Original Compound to the extent necessary or
useful to use, market, advertise, promote, distribute, offer for sale, sell, make,
manufacture, have manufactured, export and import, and develop Products with the right to
sublicense and assign the foregoing, in consideration of such reasonable royalties on net
sales by Micrologix or Product to be negotiated in good faith between Micrologix and Strata
at such time, and if the Parties cannot agree on such license and royalties, either Party
may refer the matter to arbitration pursuant to Article 14. Nothing in this Section shall
cause a royalty to be payable in respect of rights obtained by Micrologix pursuant to
Section 5.3 or Section 6.2.
	 
	8.	 	A new Section 3.4(d) is hereby added to the Agreement:
	 
	 	 	To the extent of its legal right to do so, Strata shall, upon Micrologix’s request and at
Micrologix’s expense, transfer to or make available to Micrologix the then most-current
version of all relevant Strata Work Product in Strata’s possession or control necessary or
useful to enable Micrologix’s reasonably capable personnel to understand such Strata Work
Product as reasonably necessary to exploit the license granted to Micrologix in Section
3.4(c) and the termination provisions of this Agreement, provided that this Section 3.4(d)
shall in no way create any obligation on Strata to document, summarize, translate, keep
records of or otherwise reduce to tangible form, any Strata Work Product.
	 
	9.	 	Cadence will make good faith efforts not to take any action to restrict its ability to: grant
the licenses contained in this Amendment, or transfer or make available the Strata Work
Product contemplated by this Amendment.

 

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	10.	 	Migenix’s share of manufacturing development costs referred to in Section 4.7(k) and Section
5.3(f) shall apply only in respect of manufacturing development costs arising in respect of
the Original Compound, and not in respect of any other Compound.
	 
	11.	 	Exhibit B of the Agreement is hereby amended to add the following:

	 	 	 
	Country	 	Application or Patent No.
	USA
	 	[***]
	USA
	 	[***]
	Europe
	 	[***]
	Canada
	 	[***]

	12.	 	Subject to the following sentence, Cadence shall indemnify, defend and hold harmless Migenix
and its Indemnitees from and against any Loss which would not have arisen under the Agreement
without this Amendment. Each party shall indemnify, defend and hold harmless the other party
and its Indemnitees from and against any Loss arising from the indemnifying party’s
exploitation of any Compound, Products or Strata Work Product which would not have arisen
under the Agreement without this Amendment.
	 
	13.	 	EXCEPT AS MAY OTHERWISE BE SET FORTH IN THE AGREEMENT WITH RESPECT TO THE ORIGINAL COMPOUND,
NOTHING IN THIS AMENDMENT SHALL BE CONSTRUED AS A REPRESENTATION OR WARRANTY BY MIGENIX TO
CADENCE THAT THE SUBJECT MATTER OF THE LICENSES FROM MIGENIX TO CADENCE CONTAINED IN THIS
AMENDMENT ARE NOT INFRINGED BY ANY THIRD PARTY OR THE PRACTICE OF SUCH RIGHTS DOES NOT
INFRINGE ANY INTELLECTUAL PROPERTY RIGHTS OF ANY THIRD PARTY.
	 
	14.	 	NOTHING IN THIS AMENDMENT SHALL BE CONSTRUED AS A REPRESENTATION OR WARRANTY BY CADENCE TO
MIGENIX THAT THE SUBJECT MATTER OF THE LICENSES FROM CADENCE TO MIGENIX CONTAINED IN THIS
AMENDMENT ARE NOT INFRINGED BY ANY THIRD PARTY OR THE PRACTICE OF SUCH RIGHTS DOES NOT
INFRINGE ANY INTELLECTUAL PROPERTY RIGHTS OF ANY THIRD PARTY.
	 
	15.	 	EXCEPT AS MAY BE OTHERWISE SET FORTH IN THE AGREEMENT WITH RESPECT TO THE ORIGINAL COMPOUND,
NEITHER PARTY MAKES ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR
ANY OTHER WARRANTY, EXPRESS OR IMPLIED, WITH RESPECT TO THE SUBJECT MATTER OF THIS AMENDMENT.
	 
	16.	 	EXCEPT AS MAY BE OTHERWISE SET FORTH IN THE AGREEMENT WITH RESPECT TO THE ORIGINAL COMPOUND,
NEITHER PARTY MAKES ANY OTHER WARRANTIES HEREUNDER, EXPRESS OR IMPLIED, INCLUDING WARRANTIES

 

			
	***	 	Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the omitted portions.

 

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	 	 	CONCERNING THE SUCCESS OF THE DEVELOPMENT PROGRAM, THE SUCCESS OF THE MARKETING OR
COMMERCIALIZATION OF THE PRODUCT OR THE COMMERCIAL UTILITY OF THE PRODUCT.

	 	 	 
	17.	 	Cadence hereby agrees to pay all reasonable and documented out-of-pocket legal fees and
disbursements (e.g. faxes) incurred by Migenix in connection with the preparation, execution
and delivery of this Amendment and the diligence activities contemplated in support of same.
	 
	18.	 	Except for the matters set forth in this Amendment, all other terms of the Agreement shall
remain unchanged and in full force and effect.
	 
	19.	 	This Agreement shall be governed by, and construed and enforced in accordance with, the laws
of the State of Delaware, except that no conflict of laws provision shall be applied to make
the laws of any other jurisdiction applicable to this Agreement.
	 
	20.	 	This Amendment along with the Agreement (including the Exhibits attached thereto) sets forth
all of the covenants, promises, agreements, warranties, representations, conditions and
understandings between the parties hereto with respect to the subject matter hereof and
supersedes and terminates all prior agreements and understandings between the Parties. No
subsequent alteration, amendment, change or addition to this Agreement shall be binding upon
the Parties hereto unless reduced to writing and signed by the respective authorized officers
of the Parties.

In Witness Whereof, the parties hereto have duly executed this Amendment as of the
Amendment Effective Date.

	 	 	 	 	 	 	 
	Migenix, Inc.	 	Cadence Pharmaceuticals, Inc.
	 
	 	 	 	 	 	 
	By:

	 	/s/ Art Ayres
	 	By:
	 	/s/ Theodore R. Schroeder
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Name: Art Ayres	 	Name: Theodore R. Schroeder
	Title: Senior Vice-President Finance & CFO	 	Title: President and Chief Executive OfficerExhibit 4.1

 AMENDMENT
      TO THE

  STOCKIIOLDER
  PROTECTION RIGHTS AGREEMENT

      This Amendment dated
    as of October 8, 2006 (this “Amendment”) to the Stockholder
    Protection Rights Agreement, dated
    as of June 8,
    1999 (the “Rights Agreement”), between
    Mercantile Bankshares Corporation, a Maryland corporation (the “Company”), and
    Mercantile-Safe Deposit and Trust Company, a Maryland trust company, as Rights
    Agent (the “Rights Agent”). Capitalized
    terms used herein and not defined shall have the meanings specified in the
    Rights Agreement.

      WHEREAS,
    the Company proposes to enter into an Agreement and Plan of Merger, dated
    as of October 8, 2006 (as amended, supplemented, modified or replaced from
    time to time, the “Merger Agreement”),
    by and between the Company and The PNC Financial Services Group, Inc. (“PNC”),
    a Pennsylvania corporation, providing for the merger of the Company with
    and into PNC (the “Merger”), with PNC continuing
    as the surviving corporation;

      WHEREAS,
    the Board of Directors of the Company has determined that the Merger Agreement
    and the terms and conditions set forth therein and the transactions contemplated
    thereby, including, without limitation, the Merger, are in the best interests
    of the Company and its shareholders;

      WHEREAS,
    the Board of Directors of the Company has determined, in connection with
    its contemplation of the Merger Agreement, that an amendment to the Rights
    Agreement as set forth herein is necessary and desirable to exempt the Merger
    Agreement and the transactions contemplated thereby, including, without limitation,
    the Merger, from the application of the Rights Agreement as set forth in
    this Amendment;

      WHEREAS,
    pursuant to Section 5.4 of the Rights Agreement, the Company may, and the
    Rights Agent shall, if the Company so directs, supplement or amend any provisions
    of the Rights Agreement, subject to the limitations set forth in such Section
    5.4; and

      WHEREAS,
    pursuant to Section 5.4 of the Rights Agreement, the Company hereby directs
    that the Rights Agreement should be amended as set forth herein;

      NOW,
    THEREFORE, in consideration of the promises and mutual agreements set forth
    herein, and for other good and valuable consideration, the receipt and sufficiency
    of which are hereby acknowledged, and intending to be legally bound, the
    Company and the Rights Agent hereby agree as follows:

 

           A.
    Amendment of Certain Definitions.

           Section
    1.1 of the Rights Agreement is supplemented to add the following definitions
    in the appropriate alphabetical locations:

   “Buyer” shall
      mean The PNC Financial Services Group, Inc., a Pennsylvania corporation.

   “Merger” shall
      mean the “Merger” as such term is defined in the Merger Agreement.

   “Merger
      Agreement” shall mean the Agreement and Plan of Merger, dated as of
      October 8, 2006, by and between the Company and Buyer, as it may be amended,
      supplemented, modified or replaced from time to time.

          The
    definition of “Acquiring Person” in Section 1.1 of the Rights Agreement
    is hereby amended by adding the following sentence at the end thereof:

   “Notwithstanding
      anything in this Agreement to the contrary, neither Buyer, nor any of its
      Affiliates or Associates shall be deemed to be an Acquiring Person solely
      as a result of the approval, execution, delivery or performance of the
      Merger Agreement or the consummation of the Merger.”

         The
    definition of “Expiration Time” in Section 1.1 of the Rights Agreement
    is hereby deleted in its entirety and the following is substituted in lieu
    thereof:

   “Expiration
      Time” shall mean the earliest of (i) the Exchange Time, (ii) the Redemption
      Time, (iii) the close of business on the tenth anniversary of the Record
      Time and (iv) the Effective Time (as defined in the Merger Agreement).

          The
    definition of“Flip-in Date” in Section 1.1 of the Rights Agreement
    is hereby amended by adding the following sentence at the end thereof:

   “Notwithstanding
      anything in this Agreement to the contrary, a Flip-in Date shall not be
      deemed to have occurred solely as the result of the approval, execution,
      delivery or performance of the Merger Agreement or the consummation of
      the Merger.”

          The
    definition of“Flip-over Transaction or Event” in Section 1.1 of
    the Rights Agreement is hereby amended by adding the following sentence at
    the end thereof:

   “Notwithstanding
      anything in this Agreement to the contrary, a Flip-over Transaction or
      Event shall not be deemed to have occurred solely as the result of the
      approval, execution, delivery or

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   performance
      of the Merger Agreement orthe consummation of the Merger.”

          The
    definition of “Separation Time” in Section 1.1 of the Rights Agreement
    is hereby amended by adding the following sentence at the end thereof:

   “Notwithstanding
      anything in this Agreement to the contrary, a Separation Time shall not
      be deemed to have occurred solely as the result of the approval, execution,
      delivery or performance of the Merger Agreement or the consummation of
      the Merger.”

          The
    definition of“Stock Acquisition Date” in Section 1.1 of the Rights
    Agreement is hereby amended by adding the following sentence at the end thereof:

   “Notwithstanding
      anything in this Agreement to the contrary, a Stock Acquisition Date shall
      not be deemed to have occurred solely as the result of the approval, execution,
      delivery or performance of the Merger Agreement o rthe consummation of
      the Merger.”

          B.
    Amendment to Section 2.3. Section 2.3 of the Rights Agreement is amended
    to add the following sentence at the end thereof as a new Section 2.3(h):

    “    (h)
      Nothing in this Agreement shall be construed to give any holder of Rights
      or any other Person any legal or equitable rights, remedies or claims under
      this Agreement by virtue of the approval, execution, delivery or performance
      of the Merger Agreement or the consummation of the Merger.”

         C. Effect
      ofAmendment. Except as expressly set forth herein, the Rights Agreement
    shall not by implication or otherwise be supplemented or amended by virtue
    of this Amendment, but shall remain in full force and effect, as amended
    hereby. This Amendment shall be construed in accordance with and as a part
    of the Rights Agreement, and all terms, conditions, representations, warranties,
    covenants and agreements set forth in the Rights Agreement and each other
    instrument or agreement referred to therein, except as herein amended, are
    hereby ratified and confirmed. In the event that the Merger Agreement is
    terminated by either the Company or PNC, in accordance with Section 8.1 thereof,
    this Amendment shall be deemed to be no longer in effect.

         D.
    Waiver of Notice. The Rights Agent and the Company hereby waive any notice
    requirement with respect to each other under the Rights Agreement, if any,
    pertaining to the matters covered by this Amendment.

         E.
    Severability. If any term or provision hereof or the application thereof
    to any circumstance shall, in any jurisdiction and to any extent, be invalid
    or unenforceable, such term or provision shall be ineffective as to such
    jurisdiction to the extent ofsuch invalidity or unenforceability without
    invalidating or rendering unenforceable the remaining terms and

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 provisions
    hereof or the application of such term or provision to circumstances other
    than those as to which it is held invalid or unenforceable.

         F.
    Governing Law. This Amendment shall be deemed to be a contract made under
    the laws of the State of Maryland and for all purposes shall be governed
    by and construed in accordance with the laws of such state applicable to
    contracts to be made and performed entirely within such state.

         G.
    Counterparts. This Amendment may be executed in any number of counterparts
    and each of such counterparts shall for all purposes be deemed to be an original,
    and all such counterparts shall together constitute but one and the same
    instrument.

         H.
    Effective Date of Amendment. This Amendment shall be deemed effective as
    of the date first written above, as if executed on such date, when each party
    hereto shall have received a counterpart hereof signed by the other party
    hereto.

         I.
    Descriptive Headings. Descriptive headings appear herein for convenience
    only and shall not control or affect the meaning or construction of any of
    the provisions hereof.

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      IN
    WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
    executed as of the date first written above.

  	MERCANTILE
          BANKSHARES

        CORPORATION 
	 	 	 
	By:	/s/
          Edward J. Kelley, III 
	 	

	 	Name:	Edward
          J. Kelley, III 
	 	Title:	Chairman,
          President & CEO 

  
    	 
	 
	MERCANTILE-SAFE
            DEPOSIT AND 

          TRUST COMPANY 
	 	 	 
	By:	/s/
            John L. Unger 
	 	

	 	Name:	John
            L. Unger 
	 	Title:	Executive
            Vice President &

          General Counsel 

  

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