Document:

Exhibit
10.1

AMENDMENT
NO. 1

to the

Asset
Purchase Agreement

by and between
Medarex, Inc. and Valentis, Inc.

THIS AMENDMENT No. 1 TO THE ASSET PURCHASE
AGREEMENT (“Amendment No. 1”) is made and entered into
as of January 26, 2007 (“First Amendment Effective Date”), by and between
Medarex, Inc. (“Medarex” or “Buyer” and Valentis, Inc. (“Valentis” or “Seller”),
each a Party and, collectively “Parties.”

Capitalized terms used in this Amendment No. 1
that are not otherwise defined herein shall have the meanings set forth in the
Collaboration Agreement, with an original Effective Date of January 15,
2007, and as amended.

WHEREAS, Medarex and Valentis
are Parties to an Asset Purchase Agreement concerning the Del-1 mAb Program,
that contains an original Effective Date of January 15, 2007 and an
original Closing Date of January 19, 2007; and

WHEREAS, each of Medarex and
Valentis, pursuant to the Amendment No. 1, wishes to change the Effective
Date and the Closing Date of the Asset Purchase Agreement, as well as make one
other change to the Asset Purchase Agreement.

NOW, THEREFORE, in consideration
of the mutual covenants set forth herein and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
Parties agree to amend the Asset Purchase Agreement as follows:

1.             Any
and all date references that correspond to the defined term, the Effective Date
shall be deleted and the following date shall be substituted for the original
Effective Date in each and every instance the Effective Date appears in the
Asset Purchase Agreement: 
January 26, 2007.

2.             Any
and all date references that correspond to the defined term, the Closing Date
shall be deleted and the following date shall be substituted for the original
Closing Date in each and every instance the Closing Date appears in the Asset
Purchase Agreement:  January 26,
2007.

3.             At
the end of the first paragraph/the preamble of the Asset Purchase Agreement,
the period shall be deleted and the following shall be added to define the term
“Party/Parties”:

“each a Party, and, collectively Parties.”

4.             This
Amendment No. 1 amends the terms of the Asset Purchase Agreement as
expressly provided above.  The Asset
Purchase Agreement, as amended and including all of its

other terms and conditions that are not amended,
remains in full force and effect.  This
Amendment No. 1 is deemed integrated into and part of the Asset Purchase
Agreement, and is governed by all other applicable provisions of the Asset
Purchase Agreement.

5.             The
Parties agree that this Amendment No. 1 may be executed in counterparts
and by facsimile.

6.             This
Amendment No. 1 shall be governed by and construed in accordance with the
laws of the State of California, excluding any conflicts or choice of law rule
or principle that might otherwise refer construction or interpretation of this
Amendment No. 1 to the substantive law of another jurisdiction.

IN WITNESS WHEREOF, the Parties
have caused this Amendment No. 1 to be executed by their duly authorized
representatives as of the First Amendment Effective Date.

	
  Medarex, Inc.

  	
   

  	
  Valentis, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Ron Pepin

  	
   

  	
  By:

  	
  /s/ Benjamin F. McGraw, III

  
	
   

  	
   

  	
   

  
	
  Name:

  	
  Ron Pepin, Ph. D.

  	
   

  	
  Name:

  	
  Benjamin F. McGraw, III, Pharm. D.

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  Senior Vice
  President, Business Development

  	
   

  	
  Title:

  	
  President and Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

ASSET PURCHASE AGREEMENT

BETWEEN

VALENTIS, INC.

AND

MEDAREX

EFFECTIVE DATE – JANUARY
15, 2007

LIST OF EXHIBITS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  List of Patents

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit B

  	
   

  	
  Contracts and License Agreements

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit C

  	
   

  	
  Materials

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit D

  	
   

  	
  Bill of Sale

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit E

  	
   

  	
  Letter from Valentis to Vanderbilt

  	
   

  	
  26

  

 

 i

This ASSET PURCHASE AGREEMENT (this “Agreement”),
dated as of January 15, 2007 (the “Effective Date”), between VALENTIS,
INC., a Delaware corporation, (acting on behalf of itself and as agent for its
Affiliates) (“Valentis” or “Seller”), and MEDAREX, Inc. a New Jersey
corporation (“Medarex” or “Buyer”).

WHEREAS, Valentis desires to sell the Acquired Assets,
on the terms and conditions set forth in this Agreement; and

WHEREAS, Medarex wishes to purchase, on the terms and
conditions set forth in this Agreement, the Acquired Assets excluding all
Liabilities, past, present or future related to the Acquired Assets.

NOW, THEREFORE, in consideration of the foregoing
recitals and the mutual covenants and agreements of the Parties contained in
this Agreement, intending to be legally bound, the Parties hereby agree as
follows:

ARTICLE I.

SALE AND
PURCHASE OF ASSETS

Section 1.01 
Purchase; and Sale       On
January 15, 2007 or such date as the Parties agree to in writing (“Closing Date”).
Valentis shall, and shall cause its Affiliates, on the terms and subject to the
conditions of this Agreement, to sell, assign, transfer, convey and deliver to
Medarex, free and clear of all encumbrances, and Medarex shall purchase from
Valentis and its Affiliates, all of the right, title and interest in, to and
under the Acquired Assets, for a fully paid fee of: Two Hundred and Fifty
Thousand Dollars ($250,000) U.S. (“Purchase Price”).  The purchase and sale of the Acquired Assets
are referred to in this Agreement collectively as the “Acquisition”.

Section 1.02 Transfer of Assets  

(a)           Medarex desires to
purchase and Valentis desires to sell, transfer, assign, bargain, convey and
deliver all right, title and interest to Medarex of certain intellectual
property (including all Patents, patent applications and trade secrets)  contracts and license agreements, know-how,
data, information and materials relating to the developmental endothelial
locus-1 (“Del-1”) gene, Del-1 protein, and certain Del-1 antibodies
(collectively “Del-1 MAb Program”) that are owned, in-licensed or otherwise
controlled by Valentis solely as expressly set forth in this Agreement and as
contained in the Exhibits to this Agreement (listed below) (collectively, the “Acquired
Assets”):

(i)            the intellectual
property (including the Patents) set forth in Exhibit A and any divisions,
continuations, continuations-in-part, reexaminations, reissues, substitutions,
renewals, restorations, additions or registrations thereof, as well as any
non-U.S. counterparts thereof and extensions and supplementary protection
certificates based thereon;

(ii)           Materials described in
Exhibit C

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(iii)          the license agreements
set forth in Exhibit B (the “Contracts”);

(iv)          all the rights owned or
controlled by Valentis related exclusively to the Acquired Assets; and

(v)           all information,
materials, files, documents, instruments, papers, books and records (scientific
or financial) of Valentis to the extent related to the Acquired Assets.

(b)           Delivery of Acquired Assets.  Valentis shall promptly execute and deliver
to Medarex any and all assignments, endorsements and other documents necessary
to effectuate the terms and conditions of this Agreement.  On the Closing Date, Valentis shall make
available to Medarex possession of the Acquired Assets, provided however that
the expense of retrieving, removing and transferring the Acquired Assets shall
be born exclusively by Valentis. 
Valentis’ assignment of the Contracts to Medarex expressly includes all
rights therein, including without limitation, any right to receive or
obligation to make payment for products licensed and services rendered after
the Closing Date of this Agreement, and, after the Closing Date, to receive
goods and services and to assert claims and to take other actions with respect
to breaches and defaults thereunder (“Assigned Contracts”), provided, that this
Agreement shall not constitute an assignment or attempted assignment or
agreement to assign an Assigned Contract if an assignment or attempted
assignment of an Assigned Contract without the consent of the other party or
parties thereto would constitute a breach of the Assigned Contract.  If, after the Closing Date, there exist any
uncompleted or ineffective Assigned Contracts to Medarex, Valentis, at its sole
cost, will obtain, and Medarex will cooperate with Valentis to obtain, within
thirty (30) business days after the Closing Date, any consents required for the
assignment of any Assigned Contract to Medarex or any novations of the Assigned
Contract to make Medarex a party directly (“Time to Obtain Consents”).  Medarex shall promptly provide notice to
Valentis of any and all consents, novations or assignments that it has not
received during the Time to Obtain Consents and Valentis shall promptly
cooperate with Medarex to obtain any and all consents, novations or assignments
not received.  If such consent or
novation is not obtained within the Time to Obtain Consents or if an attempted
assignment would be ineffective or impair Medarex’s rights under the applicable
Assigned Contract, the parties may, in Medarex’s sole option (i) cooperate to
insure that the benefits of the Assigned Contract will inure to Medarex
(including the remittance by Valentis to Medarex of any revenues paid to
Valentis which would be Medarex’s revenue if the Assigned Contracts have been
assigned); and (2) cooperate to insure that Valentis performs and discharges
all of Medarex’s obligations under the Assigned Contracts as a subcontractor or
otherwise (“Workaround Due to Ineffective Assignment”).  If Medarex decides to opt against pursuing
the Workaround Due to Ineffective Assignment and Medarex has provided timely
notice to Valentis of any and all consents or assignments not received by
Medarex during the Time to Obtain Consents, then this Agreement shall
automatically become null and void, 
Valentis shall immediately return to Medarex the Purchase Price in full,
and each Party shall be relieved of any and all obligations to the other Party
that are set forth in this Agreement, financial or otherwise, except the
Survival of Covenants obligations.

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(c)           Medarex acknowledges and agrees that it is
not acquiring any rights, title or interest in, to or under, and the Acquired
Assets shall not include, any of the following asset(s) (the “Excluded
Assets”):

(i)            any and all cash and
cash equivalents of Valentis or any of its Affiliates;

(ii)           any and all other
manufacturing equipment and packaging assets owned or leased by Valentis or any
of its Affiliates that relate to the Acquired Assets;

(iii)          any and all Valentis
Names and any and all logos, variations or derivatives thereof except for the
tradenames expressly included in Exhibit A as part of the Acquired Assets;

(iv)          any and all refunds or
credits of Taxes not attributable to the Acquired Assets;

(v)           any and all Retained
Information, except as expressly provided in Section 1.02 (b);

(vi)          any and all other
intellectual property or intellectual property rights that (a) do not pertain
to the Acquired Assets; and (2) are not part of the List of Patents in Exhibit
A (collectively, “Excluded IP”);and

(vii)         any and all rights,
claims and credits of Valentis or any of its Affiliates arising under insurance
policies and all guarantees, warranties, indemnities and similar rights in
favor of Valentis or any of its Affiliates relating to any Excluded Asset.

(d)           Medarex shall acquire
the Acquired Assets free and clear of all Liens and Liabilities.

Section 1.03 No Assumed Liabilities, Medarex Assumed Obligations and
Excluded Liabilities   

(a)           Medarex
agrees, effective as of the Closing Date, to assume those liabilities of
Valentis expressly listed in this Section 1.03 (a) (collectively, the “Assumed
Liabilities” and as defined in Section 7.02 of this Agreement):  No assumed Liabilities.

(i) Medarex
shall assume, effective as of the Closing Date, and from and after the Closing
Date, only those contracts, agreements, covenants and/or obligations that
pertain to the Acquired Assets and that are listed in the Exhibits to this
Agreement (“Medarex Assumed Obligations”). The foregoing shall not in anyway
limit or be construed to limit Medarex’s indemnity obligations as set forth in
Section 4.02(c)

(b)           Except
as expressly set forth in Section 1.03 (a) above, Medarex shall not assume or
become obligated in any way to pay any Liabilities, debts or obligations of
Valentis whatsoever, including but not limited to any liabilities or obligations,
including taxes and other

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charges, now or hereafter arising from Valentis’
business activities that took place prior to the Closing Date.  All Liabilities, debts and obligations of
Valentis not expressly assumed by Medarex under this Agreement are “Excluded
Liabilities”; Excluded Liabilities include, but are not limited to:

         
          (i)   any
Liens and encumbrances to which the Acquired Assets are subject, or would have
been subject to,  prior to and/or on the
Closing Date;

 
                  (ii)    any liability or
obligation relating to Taxes of Valentis, including any interest or penalties
related thereto;

         
          (iv)   
any warranty or performance liability claims relating to the Acquired Assets
which arose prior to and/or on the Closing Date; and

         
          (v)  any liability or obligation of
the Valentis, absolute or contingent, known or unknown not expressly agreed to
be assumed by Medarex pursuant to this Agreement.

Section 1.04  Closing; Closing Deliveries

(a)         The consummation of the
transactions contemplated by this Agreement (the “Closing”) will take
place on the Closing Date.

(b)           On the Closing Date, Valentis shall deliver
or cause to be delivered to Medarex the following:

(i)            The Acquired Assets in
such mutually agreeable format as reasonably requested; and

(ii)           Copies of all files and
records relating to the Acquired Assets.

(c)           On
the Closing Date, Medarex, subject to the terms and conditions of this
Agreement, shall deliver to Valentis the following:

(i)            The full and complete
Purchase Price, payable to Valentis by wire transfer of immediately available
funds to a bank account designated in writing by Valentis.

(d)           If
the Closing does not occur on the Closing Date, or such later date upon which
Medarex and Valentis may agree to in writing, this Agreement shall terminate
upon written notice of termination given by either Party that is not in default
of its obligations hereunder, and thereupon this Agreement shall become null
and void and no Party will have any further rights or obligations under this
Agreement, except with respect to the Survival of Covenants obligations.

ARTICLE II.

REPRESENTATIONS
AND WARRANTIES OF VALENTIS

Valentis represents and warrants to Medarex as
follows:

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Section 2.01     Organization Valentis
is duly organized, validly existing and in good standing under the laws of the
State of Delaware.

Section 2.02 
Authority; Execution and Delivery; Enforceability Valentis has
the requisite corporate power and authority to execute and deliver this
Agreement and to perform all of its obligations hereunder.  The execution and delivery of this Agreement
and the performance by Valentis of its obligations hereunder have been authorized
by all requisite corporate action on its part. 
This Agreement has been validly executed and delivered by Valentis.  Assuming that this Agreement has been duly
authorized, executed and delivered by Medarex, this Agreement constitutes a
valid and binding obligation of Valentis, enforceable against Valentis in
accordance with its terms, except as such enforceability may be limited by (a)
bankruptcy, insolvency, moratorium, reorganization or other laws of general
applicability relating to or affecting the enforcement of creditors’ rights generally
and general principles of equity; and (b) laws limiting the availability of
specific performance, injunctive relief or other equitable remedies. None of
the following:  the execution and
delivery of this Agreement by Valentis, the performance by Valentis of its
obligations under this Agreement or the consummation of the Acquisition,
knowingly:

(i)            violates the
certificate of incorporation, by-laws or other organizational documents of
Valentis;

(ii)           conflicts in any
respect with or results in a violation or breach of, or constitutes a default
under, any contract, agreement or instrument to which Valentis is a party or by
which Valentis or any Acquired Asset is bound, or results in the creation or
imposition of any Lien upon any Acquired Asset;

(iii)          conflicts or violates
with any existing law (including common law), statute, rule, regulation,
ordinance, judgment, order or decree (each, a “Law”) applicable to
Valentis or the Acquired Assets; or

(iv)          materially impairs
Valentis’ ability to consummate the transactions contemplated hereby or
materially delays the consummation of the transactions contemplated hereby.

(b)           No filing with, and no permit,
authorization, consent or approval of any Governmental Entity is necessary for
the consummation by Valentis of the transactions contemplated by this
Agreement.

Section 2.03     Title to Assets (a)     As of the Effective Date of
this Agreement, and subject to the rights held by Vanderbilt University to
certain Patents that Medarex acknowledges were fully disclosed to Medarex
heretofore as addressed in a letter from Valentis to Vanderbilt, containing a
signed acknowledgement from Vanderbilt, attached as Exhibit E to this
Agreement, Valentis and/or its Affiliates have good and valid title to all of
the Acquired Assets, in each case, free and clear of all Liens and Valentis
and/or its Affiliates are the sole legal and beneficial owner of the Acquired
Assets and have the right to sell them to Medarex in accordance with this
Agreement.

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(b)           Valentis and/or its Affiliates have the sole
and exclusive right to enforce, license or transfer, without payment to any
Third Party, each item of the Acquired Assets.

Section 2.04     Intellectual Property
Rights

(a)         Except as set forth herein, neither Valentis
nor any of its Affiliates has granted any option, license or right to use any
of the Acquired Assets.

(b)        Valentis has no knowledge of any claim made
against Valentis or brought by any Third Party arising from the Acquired Assets
as of the Effective Date of this Agreement.

Section 2.05     Material Facts Neither
this Agreement nor any written statement or certificate furnished in connection
herewith or any of the transactions contemplated hereby, contains an untrue
statement of a material fact or omits to state a material fact that is
necessary in order to make the statements contained herein and therein, in the
light of the circumstances under which they are made, not misleading.  There are no facts that affect, or in the
future might reasonably be expected to affect, adversely the Acquired Assets in
any material respect that is not set forth in this Agreement.

Section 2.06     No Proceedings There
are no proceedings pending or, to the Knowledge of Valentis, threatened against
Valentis which would reasonably be expected to affect Valentis’ ability to
consummate the transactions contemplated by this Agreement.

Section 2.07     Brokers or Finders Neither
Valentis nor its Affiliates have retained any agent, broker, investment banker,
financial advisor or other firm or person that is or will be entitled to any
brokers’ or finder’s fee or any other commission or similar fee in connection
with any of the transactions contemplated by this Agreement, and there are no
claims for any of the foregoing.

Section 2.08     Disclaimer 

Except as expressly set forth in this Agreement,
the Acquired Assets assigned by Valentis pursuant to this Agreement are
provided “AS IS” without any warranty, express, implied or statutory and
Valentis expressly disclaims any warranty of non-infringement, fitness for a
particular purpose or merchantability with respect to any Acquired Asset
assigned or delivered pursuant to this Agreement.  This Disclaimer is an essential part of the
bargain between Valentis and Medarex.

ARTICLE III.

REPRESENTATIONS
AND WARRANTIES OF MEDAREX

Medarex represents and warrants to Valentis as
follows:

Section 3.01     Organization Medarex
is duly organized, validly existing and in good standing under the laws of the
State of New Jersey.  Medarex has all
requisite corporate power

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and authority to execute and deliver this Agreement and to perform all
of its obligations hereunder.

Section 3.02      Authority; Execution and
Delivery; Enforceability  The
execution and delivery of this Agreement and the performance by Medarex of its
obligations hereunder have been authorized by all requisite corporate action on
the part of Medarex.  This Agreement has
been validly executed and delivered by Medarex. 
Assuming that this Agreement has been duly authorized, executed and
delivered by Valentis, this Agreement constitutes a valid and binding
obligation of Medarex, enforceable against Medarex in accordance with its
terms, except as such enforceability may be limited by (a) bankruptcy,
insolvency, moratorium, reorganization or other laws of general applicability
relating to or affecting the enforcement of creditors’ rights generally and
general principles of equity; and (b) law limiting the availability of specific
performance, injunctive relief or other equitable remedies.

(a)           None of the following: execution and
delivery of this Agreement by Medarex, the performance by Medarex of its
obligations under this Agreement or the consummation of the Acquisition:

(i)            violates the
certificate of incorporation, by-laws or other organizational documents of
Medarex ;

(ii)           conflicts in any
respect with or results in a violation or breach of, or constitutes a default
under, any material contract, agreement or instrument to which Medarex is a
party or by which Medarex is bound;

(iii)          conflicts or violates
with any existing Law applicable to Medarex; 
or

(iv)          materially impairs
Medarex’s ability to consummate the transactions contemplated hereby or
materially delays the consummation of the transactions contemplated hereby.

(b)           No filing with, and no permit,
authorization, consent or approval of, any Governmental Entity is necessary for
the consummation by Medarex of the transactions contemplated by this Agreement.

Section 3.03     Brokers or Finders Neither
Medarex nor its Affiliates have retained any agent, broker, investment banker,
financial advisor or other firm or person that is or will be entitled to any
brokers’ or finder’s fee or any other commission or similar fee in connection
with any of the transactions contemplated by this Agreement, and there are no
claims for any of the foregoing.

Section 3.04     No Proceedings There
is no proceedings pending or, to the knowledge of Medarex, threatened against
Medarex which would reasonably be expected to affect Medarex’s ability to
consummate the transactions contemplated by this Agreement.

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ARTICLE IV.

COVENANTS

Section 4                Conditions to Closing

(a)           Conditions
to Medarex’s Obligations.  The obligations of Medarex under
this Agreement shall be subject to the satisfaction and fulfillment of each of
the following conditions, except as Medarex may expressly waive the same in writing:

(i)            Accuracy of
Representations and Warranties on Closing Date.  The representations and warranties made
herein by Valentis shall be true and correct in all material respects, and not
misleading in any material respect, on and as of the date given, and on and as
of the Closing Date with the same force and effect as though such
representations and warranties were made on and as of the Closing Date.

(ii)           Compliance.  As of the Closing Date, Valentis shall have
compiled in all material respects with, and shall have fully performed, in all
material respects, all conditions, covenants and obligations imposed on
Valentis and required to be performed or complied with by Valentis at, or prior
to, the Closing Date.

(iii)          Delivery of the
Acquired Assets.  Valentis shall have
made the Acquired Assets available to Medarex as set forth in this Agreement.

(iv)          Delivery of Closing
Documents.  Valentis shall
have delivered, and Medarex shall have received, the documents described in
this Agreement, including the Exhibits.

(b)           Conditions
to Valentis’ Obligations   The obligations of Valentis
hereunder shall be subject to the satisfaction and fulfillment of each of the
following conditions, except as Valentis may expressly waive the same in
writing:

(i)            Accuracy of Representations
and Warranties on Closing Date.  The
representations and warranties made herein by Medarex shall be true and correct
in all material aspects, and not misleading in any material aspect, on and as
of the date given, and on and as of the Closing Date with the same force and
effect as though such representations and warranties were made on and as of the
Closing Date.

(ii)           Compliance.  Medarex shall have complied in
all material respects with, and shall have fully performed, the terms,
conditions, covenants and obligations of this Agreement imposed thereon to be
performed or complied with by Medarex at, or prior to, the Closing Date.

(iii)          Payment.  Medarex shall have transmitted
by wire transfer and Valentis shall have received payment of the Purchase Price
in accordance with this Agreement.

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Section 4.01           Property Transfer
Taxes Except as otherwise provided herein, any fees, charges, Taxes or
other payments required to be made to any Governmental Entity in connection
with the transfer of the Acquired Assets pursuant to the terms of this
Agreement (collectively, “Transfer Taxes”) shall be paid by
Valentis.  Valentis and Medarex shall
cooperate in timely making and filing all filings, Tax Returns, reports and
forms as may be required with respect to any Taxes payable in connection with
the transfer of the Acquired Assets.

Section 4.02           Further Assurances;
Etc. Each Party shall, from time to time after the Closing and without
additional consideration (except as otherwise expressly set forth in this
Agreement), execute and deliver such further instruments and take such other
commercially reasonable action as may be reasonably requested by the other
Party to make effective the transactions contemplated by this Agreement.

(a)           From and after the Closing Date, neither
Valentis nor any of its Affiliates shall make any use of the Acquired
Assets.  Valentis shall hold harmless and
indemnify Medarex, and its respective officers, director, employees, agents,
successors and assigns, against: (i) any claims, actions, judgments or awards
arising out of or relating to Valentis’ activities in connection with the
Acquired Assets on or prior to the Closing Date; or (ii) a Valentis breach of
any representation, warranty, covenant or agreement in this Agreement or in any
certificate or instrument delivered pursuant hereto; provided that Valentis
shall have no obligation for any claim arising from any use of the Acquired
Assets by Medarex after the Closing Date due to any clinical research,
non-clinical research or commercial use by Medarex, or modification of the
Acquired Assets by or for Medarex, or the sale of license of the Acquired
Assets by Medarex.

(b)           Valentis shall take no action, at any time,
to disparage or diminish the value of the Acquired Assets.

(c)           Medarex shall hold harmless and indemnify
Valentis, its respective officers, directors, employees, agents, successors and
assigns, against: (i) any claims, actions, judgments or awards arising out of
or related to Medarex’s use of the Acquired Assets following the Closing Date
due to any clinical research, non-clinical research,or commercial use by
Medarex, or modification of the Acquired Assets by or for Medarex, or the sale
or license of the Acquired Assets by Medarex; or (ii) a Medarex breach of any
representation, warranty, covenant or agreement in this Agreement or in any
certificate or instrument delivered pursuant hereto; provided that Medarex
shall have no obligation for any claim arising from any use of the Acquired
Assets by Valentis on or prior to the Closing Date, including any obligation
for the activities of Valentis’ employees, Affliates, suppliers, agents,
contractors, distributors or customers.

Section 4.03           No Use of Valentis
Names Except for the Medarex’s use of tradenames included in Exhibit A as
part of the Acquired Assets and Medarex’s use of any Supplies provided to
Medarex by Valentis which relate to the Acquired Assets and/or are listed in
the Exhibits to this Agreements, Medarex shall not use any signs or stationery,
purchase order forms, packaging, labeling or other similar items or supplies,
advertising and promotional materials, product, training and service literature
and materials, or computer programs or like materials (collectively, the “Supplies”)
that include or contain any trademark, trade names, service mark or corporate
or

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business names of Valentis or its Affiliates (or any logo, variation or
derivative thereof) (collectively, “Valentis Names”).  Nothing in this Section 4.03 shall be deemed
as transferring any rights in, to or under the Valentis Names.

Section 4.04           Bulk Transfer Laws
Valentis and its Affiliates, and successor(s) of Valentis and its Affiliates
shall hold harmless indemnify Medarex and its Affiliates, and its respective
officers, directors, employees, agents, successors and assigns against any non-
compliance by Valentis and its Affiliates, and successor(s) of Valentis and its
Affiliates, with the provisions of any so-called “bulk transfer law” and/or for
any claims of the creditors of Valentis and its Affiliates, and successor(s) of
Valentis and its Affiliates of any jurisdiction in connection with the sale of
the Acquired Assets to Medarex.  Valentis
and its Affiliates, and successor(s) of Valentis and its Affiliates shall hold
harmless and indemnify Medarex and its Affiliates, and its respective officers,
directors, employees, agents, successors and assigns for any tax liability that
results from any such non-compliance or claims of creditors.

Section 4.05           Post-Closing
Cooperation

(a)           Medarex and Valentis shall cooperate with
each other, and shall cause their officers, employees, agents, auditors,
Affiliates and representatives to cooperate with each other, after the Closing
Date, to ensure the orderly transition of the Acquired Assets from Valentis to
Medarex.

(b)           Neither Party shall be required by this
Section 4.05 to take any action that would unreasonably interfere with the
conduct of its business or unreasonably disrupt its normal operations.

Section 4.06           Press Releases and
Public Announcements

Neither Party shall issue any press release or make
any disclosure or public announcement relating to the financial terms of this
Agreement or the identity of the other Party without the prior written approval
of the other Party, which shall not be unreasonably withheld.

Section 4.07           Survival of
Covenants

Each of the covenants set forth in Article IV and all
covenants, representations and warranties, including indemnity obligations,
made in the Agreement, shall survive the Closing Date.

ARTICLE V.

INDEMNIFICATION
PROCESS

In the case of any claim asserted by a Third Party
against a Party entitled to indemnification under this Agreement (the “Indemnified
Party”), notice shall be given by the Indemnified Party to the Party
required to provide indemnification (the “Indemnifying Party”) promptly
after such Indemnified Party has actual knowledge of any claim as to which
indemnity may be sought, and the Indemnified Party shall permit the
Indemnifying Party (at the expense of

 10
 

such Indemnifying Party) to assume the defense of any
claim or any litigation resulting therefrom; provided that (a) the
counsel for the Indemnifying Party who shall conduct the defense of such claim
or litigation shall be reasonably satisfactory to the Indemnified Party, (b)
the Indemnified Party may participate in such defense at such Indemnified Party’s
expense, and (c) the omission by any Indemnified Party to give notice as
provided herein shall not relieve the Indemnifying Party of its indemnification
obligation under this Agreement except to the extent that such omission results
in a failure of actual notice to the Indemnifying Party and such Indemnifying
Party is materially damaged as a result of such failure to give notice.  Except with the prior written consent of the
Indemnified Party, no Indemnifying Party, in the defense of any such claim or
litigation, shall consent to entry of any judgment or enter into any settlement
that provides for injunctive or other non-monetary relief affecting the
Indemnified Party or that does not include as an unconditional term thereof the
giving by each claimant or plaintiff to such Indemnified Party of a release
from all liability with respect to such claim or litigation.  In the event that the Indemnified Party shall
in good faith determine that the conduct of the defense of any claim subject to
indemnification hereunder or any proposed settlement of any such claim by the
Indemnifying Party might be expected to affect adversely the Indemnified Party’s
Tax liability or the ability of the Indemnified Party to conduct its business,
or that the Indemnified Party may have available to it one or more defenses or
counterclaims that are inconsistent with one or more of those that may be
available to the Indemnifying Party in respect of such claim or any litigation
relating thereto, the Indemnified Party shall have the right at all times to
take over and assume control over the defense, settlement, negotiations or
litigation relating to any such claim at the sole cost of the Indemnifying
Party; provided that if the Indemnified Party does so take over and
assume control, the Indemnified Party shall not settle such claim or litigation
without the written consent of the Indemnifying Party, such consent not to be
unreasonably withheld or delayed. In the event that the Indemnifying Party does
not accept the defense of any matter as above provided, the Indemnified Party
shall have the full right to defend against any such claim or demand and shall
be entitled to settle or agree to pay in full such claim or demand with the
written consent of the Indemnifying Party, such consent not to be unreasonably
withheld or delayed.  In any event, the
Indemnifying Party and the Indemnified Party shall cooperate in the defense of
any claim or litigation subject to this section and the records of each shall
be available to the other with respect to such defense.

ARTICLE VI.

LIMITATION
OF LIABILITY

Section 6.01           Disclaimer of
Consequential Damages.  NEITHER PARTY
WILL BE LIABLE TO THE OTHER PARTY FOR ANY LOSS, INDIRECT, SPECIAL,
CONSEQUENTIAL or INCIDENTAL DAMAGES OF ANY KIND (INCLUDING LOST PROFITS)
REGARDLESS OF FORM OR THEORY OF LAW OR OTHERWISE EVEN IF IT HAS BEEN ADVISED OF
THE POSSIBILITY.

Section 6.02           Liability Cap
Between the Parties.  Except in the
case of the Parties indemnity obligations to one another, as set forth in
Article 4  and Article V of this
Agreement,, the total cumulative liability of either Party to the other shall
not exceed the total amount of the Purchase Price paid to Valentis, i.e.,
Medarex’s total cummulative liability to Valentis shall not

 11
 

exceed Two Hundred and Fifty Thousand Dollars ($250,000) U.S. and
Valentis’ total cumulative liability to Medarex shall not exceed Two Hundred
and Fifty Thousand Dollars ($250,000) U.S..

ARTICLE VII.

MISCELLANEOUS

Section 7.01           Notices Except
as otherwise specifically provided herein, any notice or other documents to be
given under this Agreement shall be in writing and shall be deemed to have been
duly given if sent by registered post, nationally recognized overnight courier
or confirmed facsimile transmission to a Party (followed by hard copy by mail)
or delivered in person to a Party at the address or facsimile number set out
below for such Party or such other address as the Party may from time to time
designate by written notice to the other:

(a)           if
to Valentis, to:

Valentis, Inc.

863A Mitten Road

Burlingame, CA  94010

Attention : CEO, President

Facsimile No: (650) 652-1990

with a required copy to:

the arts and technology law group

Three Embarcadero Center, Suite 600

San Francisco, CA  94111

Attention: Gregory Alan Rutchik, Esq.

Facsimile No: (415) 399-9444

(b)           if
to Medarex, to:

MEDAREX, Inc.

707 State Road

Princeton, NJ 08540

Attn: General Counsel

Facsimile No: 609-430-4215

with a required copy to:

Contracts Administrator at Medarex at the
same address and facsimile number.

Any such notice or other document shall be deemed to
have been received by the addressee three (3) Business Days following the date
of dispatch of the notice or other document by post or, where the notice or
other document is sent by overnight courier, by hand or is given by facsimile,
simultaneously with the transmission or delivery thereof.

 12
 

Section 7.02           Definitions;
Interpretation Certain capitalized terms used in this Agreement shall have
the meanings assigned to them throughout the Agreement.  In addition, 
for purposes of this Agreement, the following terms shall be defined in
accordance with the definitions provided below:

“Affiliate” shall mean, with respect to any
Person, any other Person that directly, or indirectly through one or more
intermediaries, controls, is controlled by or is under common control with,
such Person. A Person shall be regarded as in control of another Person if such
Person owns, or directly or indirectly controls, more than fifty percent (50%)
of the voting securities (or comparable equity interests) or other ownership
interests of the other Person, or if such Person directly or indirectly
possesses the power to direct or cause the direction of the management or
policies of the other Person, whether through the ownership of voting
securities, by contract or any other means whatsoever, provided,
however, that for purposes of this Agreement, the term “Affiliate”
shall not include subsidiaries in which a Party or its Affiliates owns a
majority of the ordinary voting power to elect a majority of the Board of
Directors, but is restricted from electing such majority by contract or
otherwise, until such time as such restrictions are no longer in effect.

“Business Day” shall mean any day other than
(a) a Saturday or Sunday or (b) any other day on which commercial banks in New
York City are authorized or required by law to close.

“Materials” shall mean the cell lines,
antibodies and purified protein solely as expressly described in Exhibit C.

“Closing” shall mean the date on which
Valentis, on the terms and conditions of this Agreement, sells, assigns,
transfers, conveys and delivers to Medarex, free and clear of all encumbrances,
and Medarex purchases from Valentis, all of the right, title and interest in,
to and under the Acquired Assets, for the Purchase Price.

“Code” shall mean the Internal Revenue Code of
1986, as amended.

“Governmental Entity” shall mean any federal,
state, local or non-United States government, legislature, governmental agency,
administrative agency or commission or other governmental authority or
instrumentality or any United States or non-United States court of competent
jurisdiction.

“Knowledge of Valentis” shall mean the actual
knowledge of the executive officers of the Company after due inquiry.  The term “due inquiry” shall mean such
inquiry by the applicable person as such person would normally be reasonably
expected to make in the ordinary course of his or her regular and usual duties
as an owner, director, officer of key employee of a corporation.

 “Liabilities”
means any past, present or future known or unknown (asserted or unasserted,
absolute or contingent, accrued or unaccrued, liquidated or unliquidated, and
due or to become due) debt, obligation, duty or liability of any nature
(including any liability for Taxes or Liens and any, undisclosed, unfixed,
unsecured, unmatured, unaccrued, unasserted, contingent, conditional, inchoate,
implied, vicarious, joint, several or secondary liability)

 13
 

pertaining to Valentis, relating to Valentis’ business
activity in connection with the Acquired Asset and/or relating to the Acquired
Asset itself, regardless of whether such debt, obligation, duty or liability
would be required to be disclosed on a balance sheet prepared in accordance
with generally accepted accounting principles applied on a consistent basis.

“Lien(s)” shall mean any lien (statutory or
otherwise), claim, charge, option, security interest, pledge, mortgage,
restriction, financing statement or similar encumbrance of any kind or nature
whatsoever (including any conditional sale or other title retention agreement
and any lease having substantially the same effect as any of the foregoing and
any assignment or deposit arrangement in the nature of a security device).

“Party” shall mean Valentis or Medarex and,
when used in the plural, shall mean Valentis and Medarex and in the case of
both parties shall include its Affiliates.

“Patents” shall mean all patents and patent
applications, and all additions, divisions, continuations, continuations-in-part,
substitutions, reissues, extensions, registrations and renewals.

“Person” shall mean any individual, group,
corporation, partnership or other organization or entity (including any
Governmental Entity).

“Retained Information” shall mean those books
and records prepared and maintained by Valentis and all Tax records.

“Tax Return” shall mean any report, return or
other information filed with any taxing authority with respect to Taxes imposed
upon or attributable to the Acquired Assets.

“Taxes” shall mean any and all taxes, charges,
fees, tariffs, imports, required deposits, levies or other like assessments,
including, but not limited to, transfer, income, profits, net worth, asset,
value added transactions, gains, gross receipts, excise, inventory, property
(real, personal or intangible), custom duty, sales, use, license, withholding,
payroll, employment, social security, capital stock and franchise taxes,
imposed by any Governmental Entity.

“Third Party” shall mean any Person who or
which is neither a Party nor an Affiliate of a Party.

(a)           In the event of an ambiguity or if a
question of intent or interpretation arises, this Agreement shall be construed
as if drafted jointly by the Parties, and no presumption or burden of proof
shall arise favoring or disfavoring any Party by virtue of the authorship of
any provisions of this Agreement.

(b)           The definitions of the terms used in this
Agreement shall apply equally to the singular and plural forms of the terms
defined.  Whenever the context may
require, any pronoun shall include the corresponding masculine, feminine and
neuter forms.  Any reference to dollars
shall mean United States dollars.  In
this Agreement, the words “include”,  “includes”
and “including” shall be deemed to be followed by the phrase “without
limitation”, and the word “will” shall be construed to have the same meaning
and effect as the word “shall”.  Unless
the

 14
 

context requires otherwise, in this Agreement (i) any definition of or
reference to any agreement, instrument or other document in this Agreement
shall be construed as referring to such agreement, instrument or other document
as from time to time amended, supplemented or otherwise modified (subject to
any restrictions on such amendments, supplements or modifications set forth
herein or therein), (ii) any reference in this Agreement to any Person shall be
construed to include the Person’s successors and assigns, (iii) the words “herein”,
“hereof” and “hereunder”, and words of similar import, shall be construed to
refer to this Agreement in its entirety and not to any particular provision
hereof, and (iv) all references in this Agreement to Articles, Sections,
Exhibits shall be construed to refer to Articles, Sections, and Exhibits of
this Agreement.

Section 7.03           Descriptive Headings
The descriptive headings herein are inserted for convenience only and are not
intended to be part of or to affect the meaning or interpretation of this
Agreement.

Section 7.04           Counterparts This
Agreement may be executed in one or more counterparts, all of which shall be
considered one and the same agreement and shall become effective when one or
more such counterparts have been signed by each of the parties and delivered to
the other Party.

Section 7.05           Entire Agreement
This Agreement, along with the Exhibits hereto and thereto contain the entire
agreement and understanding between the parties hereto with respect to the
Acquisition and supersede all prior agreements and understandings relating to
the Acquisition.  Neither Party shall be
liable or bound to any other Party in any manner by any representations,
warranties or covenants other than as specifically set forth in this Agreement.

Section 7.06           Fees and Expenses
Except as otherwise expressly provided in this Agreement, regardless of whether
or not any of the transactions contemplated by this Agreement are consummated,
each Party shall bear its own fees and expenses incurred in connection with the
transactions contemplated by this Agreement.

Section 7.07           Governing Law This
Agreement shall be governed by and construed in accordance with the internal
laws of the State of California, without regard to the conflicts of law
principles of such state, and, where appropriate, applicable federal law.

Section 7.08           Assignment Neither
Party may transfer or assign this Agreement, directly or indirectly, or any of
its rights hereunder without the prior written consent of the other Party,
other than (a) to one or more Affiliates or (b) to a successor in connection
with the transfer or sale of all or substantially all of its business relating
to the subject matter of this Agreement. 
This Agreement shall be binding upon and inure to the benefit of the
parties and their permitted successors and assigns.

Section 7.09           Amendments and
Waivers This Agreement may not be amended except by an instrument in
writing signed on behalf of each of the Parties hereto.  By an instrument in writing, Medarex, on the
one hand, or Valentis, on the other hand, provided by one Party to the other
Party, each respective Party may waive the compliance of the other Party
required under

 15
 

this Agreement with respect to any term or provision of this Agreement
that such other Party was or is obligated to comply with or perform.

Section 7.10           Successors and
Assigns This Agreement shall be binding upon and inure solely to the
benefit of the Parties, their successors and permitted assigns.  Nothing in this Agreement, express or
implied, is intended to or shall confer upon any other Third Party any right,
benefits or remedies of any nature whatsoever under or by reason of this
Agreement.

Section 7.11           Severability In the event that any
one or more of the provisions contained herein, or the application thereof in
any circumstances, is held invalid, illegal or unenforceable in any respect for
any reason, the parties shall negotiate in good faith with a view to the
substitution therefor of a suitable and equitable solution in order to carry
out, so far as may be valid and enforceable, the intent and purpose of such
invalid provision; provided, however,
that the validity, legality and enforceability of any such provision in every
other respect and of the remaining provisions contained herein or therein shall
not be in any way impaired thereby, it being intended that all of the rights
and privileges of the parties hereto and thereto shall be enforceable to the
fullest extent permitted by law.

Section 7.12           Governing Law; Consent to Jurisdiction  This Agreement shall be governed by,
interpreted and construed in accordance with the laws of the State of
California, without regard to its conflicts of law principles.  Each of Medarex and Valentis submits to the
jurisdiction of California for the purposes of any suit, action or other
proceeding arising out of this Agreement or any transaction contemplated
hereby.  Each of Medarex and Valentis
agrees to commence any such action, suit or proceeding in the San Francisco,
California.  Each of Medarex and Valentis
waives any objection to the laying of venue of any action, suit or proceeding
arising out of this Agreement or the transactions contemplated hereby hereby
agrees not to plead or claim in any such court that any such action, suit or
proceeding brought in any such court has been brought in an inconvenient forum.

Section 7.13           Non-waiver Any
failure on the part of a Party to enforce at any time or for any period of time
any of the provisions of this Agreement shall not be deemed or construed,
except if an express written waiver was authorized by such Party, to be a
waiver of such provisions or of any right of such Party thereafter to enforce
each and every such provision on any succeeding occasion or breach thereof.

Costs.  Each Party agrees to indemnify and keep
indemnified the other Party against any and all reasonable legal costs and/or
expenses incurred by the other Party as a result of any breach of this
Agreement by the indemnifying Party.

Equitable Relief.  Each Party agrees that on any breach of this
Agreement by it, the other Party shall be entitled to any appropriate
injunctive and/or other equitable relief in relation to such breach.

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the date first written above.

 16
 

 

	
   

  	
  VALENTIS, INC. (on behalf of itself and as
  agent

  for its Affiliates)

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
  /s/ Ben McGraw

  	
   

  
	
   

  	
   

  	
  Name: Ben McGraw

  
	
   

  	
   

  	
  Title: President & Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  MEDAREX, INC.

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
  /s/ Ron Pepin

  	
   

  	 

	
   

  	
   

  	
  Name: Ron Pepin

  	 

	
   

  	
   

  	
  Title: Senior Vice President, Business
  Development

  	 

 

 17

EXHIBIT A

LIST OF PATENTS

For each Item (a – h) below, Valentis shall deliver to
Medarex the following Acquired Assets:

List of inventor contact information and
attorney/agent contact information

 Original
physical patent files, including non-privileged communications with law firm,
file histories and related cases that have been abandoned or lapsed.  Electronic copy of specifications, figures
and miscellaneous electronic documents where available

Inventions disclosures and supporting material

a.                                       US Patent No. 7,041,801(09/237,981) “Antibodies Binding to Polypeptides encoded by Developmentally-Regulated
Endothelial Cell Locus-1”

b.                                      
US Patent No. 5,874,562
(08/480,229) “Nucleic
Acid Encoding Developmentally Regulated Endothelial Cell Locus-1”

c.                                       U.S. Patent No. 5,877,281

d.                                      U.S. Patent Application Serial No.
08/659,235

e.                                       WO96/40769 (evolved)

f.                                         CA2,224,012(pending)

g.                                      EP96919201.2, pub. as EP854883, (pending)

h.                                      JP09-501771 (1997), pub. as JP 11-507527, A (1999), (pending)

EXHIBIT B

CONTRACTS and LICENSE AGREEMENTS

License Agreement
between Vanderbilt University and Progenitor, Inc.

(dated July 17, 1995)

(containing the assignment of patents/patent applications from Progenitor to
Vanderbilt)

Amendment to
License Agreement between Vanderbilt University and Progenitor, Inc., Dated
July 17, 1995

(dated March 22, 1999)

(containing the acquisition by Valentis (formerly named Megabios) of the
Progenitor interest)

 19

EXHIBIT C

Materials

	
  Product Name

  	
   

  	
  Lot Number

  	
   

  	
  Concentration

  	
   

  	
  Quantity

  
	
  Mu Del- 1 Protein

  	
   

  	
  BS R010054

  	
   

  	
  1mg/ml

  	
   

  	
  1 vial

  
	
  Hu Del-1 Antibody

  	
   

  	
  15B.6H4

  	
   

  	
  7mg/ml

  	
   

  	
  17 vials/1ml

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  6 vials/ 100μl

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  9 vials/50μl

  
	
   

  	
   

  	
  BA 1,2-5E4-6F7-1C07

  	
   

  	
  1.8mg/ml

  	
   

  	
  32 vials

  
	
   

  	
   

  	
  BA 1,2-5E4-1A01

  	
   

  	
  1.04mg/ml

  	
   

  	
  32vials

  
	
  Mu Del-1 Antibody

  	
   

  	
  Clone 2.23 E5-2G8

  	
   

  	
  1mg/ml

  	
   

  	
  3 vial/200μl

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1 vial/500μl

  
	
   

  	
   

  	
  Clone 2.26 E7-1B8

  	
   

  	
  0.95mg/mL

  	
   

  	
  3 vials/1ml

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1 vial/200μl

  
	
   

  	
   

  	
  Clone 2.23 H102-E12

  	
   

  	
  0.6mg/ml

  	
   

  	
  2 vials/200μl

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1 vial/100μl

  
	
   

  	
   

  	
  Clone 2G8

  	
   

  	
  1mg/ml

  	
   

  	
  8vials/100μl

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8vials/1ml

  
	
  Hu Del-1 Protein

  	
   

  	
  DJJ

  	
   

  	
  0.3mg/ml

  	
   

  	
  6 vials/500μl

  
	
   

  	
   

  	
  BDS 100505

  	
   

  	
   

  	
   

  	
  8 ml

  
	
  Del-1 minor stock plaque virus

  	
   

  	
  51198 clon

  	
   

  	
   

  	
   

  	
  9 clones

  
	
  RAD mutant

  	
   

  	
  51898

  	
   

  	
   

  	
   

  	
  9 clones

  
	
  Del-1 major stock plaque virus

  	
   

  	
  5/11/1998

  	
   

  	
   

  	
   

  	
  15 vials

  
	
  Del-1 major Baculovirus

  	
   

  	
  092398MGR

  	
   

  	
   

  	
   

  	
  1 vial

  
	
  RAD Baculovirus

  	
   

  	
  82098

  	
   

  	
   

  	
   

  	
  4 vials

  
	
  Mudel-1 protein

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3 vials

  
	
  Del-1 major HTS Baculovirus

  	
   

  	
  5/19/1998

  	
   

  	
   

  	
   

  	
  1 vial

  
	
  Hu Del-1 pree bleed from BALBC

  	
   

  	
  11/4/2003

  	
   

  	
   

  	
   

  	
  5 vials

  
	
   

  	
   

  	
  12/22/2003

  	
   

  	
   

  	
   

  	
  5 vials

  
	
   

  	
   

  	
  1/19/2004

  	
   

  	
   

  	
   

  	
  5 vials

  
	
   

  	
   

  	
  6/30/2004

  	
   

  	
   

  	
   

  	
  4 vials

  
	
   

  	
   

  	
  8/5/2004

  	
   

  	
   

  	
   

  	
  4 vials

  
	
   

  	
   

  	
  9/7/2004

  	
   

  	
   

  	
   

  	
  4 vials

  
	
   

  	
   

  	
  6/9/2005

  	
   

  	
   

  	
   

  	
  5 vials

  
	
   

  	
   

  	
  7/18/2005

  	
   

  	
   

  	
   

  	
  5 vials

  
	
   

  	
   

  	
  8/14/2005

  	
   

  	
   

  	
   

  	
  5 vials

  
	
  Hu Del-1 BA 1,2 5EO4

  	
   

  	
  1A01

  	
   

  	
   

  	
   

  	
  ~3-5ml ea

  
	
   

  	
   

  	
  1B10

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1EO1

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  neg contrl

  	
   

  	
   

  	
   

  	
   

  
	
  Hu Del-1BA 1,2 6F07

  	
   

  	
  2E1O

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2G08

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1C07

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  neg contrl

  	
   

  	
   

  	
   

  	
   

  
	
  Baculovirus stock pDL

  	
   

  	
  pDL 1809 LX-1-3

  	
   

  	
   

  	
   

  	
  9 viials

  
	
   

  	
   

  	
  Negative Control

  	
   

  	
   

  	
   

  	
  1 vial

  
	
   

  	
   

  	
  Positive Control

  	
   

  	
   

  	
   

  	
  1 vial

  

 

 20
 

 

	
  Product Name

  	
   

  	
  Lot Number

  	
   

  	
  Concentration

  	
   

  	
  Quantity

  
	
  Mouse Del-1 fusion

  	
   

  	
  1A3

  	
   

  	
   

  	
   

  	
  ~2ml

  
	
   

  	
   

  	
  1A4

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1A7

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1B3

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1C1

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1C12

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1E 12

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1G11

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1H3

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  4A5

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  4C11

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  4E 10

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  5G6

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6G8

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  7E 8

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  7G10

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8A2

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8A9

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8B1

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8H7

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8H9

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8H10

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  9A8

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  9A9

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8D3

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8F1

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8F12

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8G2

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8H5

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  9A12

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  9B2

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  9B6

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  9D11

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  9F11

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  9H8

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10B10

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10C2

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10C3

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10E 2

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10H2

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10H6

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10H7

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10H9

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  11H3

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  11H7

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  12E 1

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  13E 1

  	
   

  	
   

  	
   

  	
   

  

 

 21
 

 

	
  Product Name

  	
   

  	
  Lot Number

  	
   

  	
  Concentration

  	
   

  	
  Quantity

  
	
   

  	
   

  	
  13E 2

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  14D6

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  11D9

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  11D1 control,term bleed

  	
   

  	
   

  	
   

  	
   

  
	
  Frozen plasmid

  	
   

  	
  PCPG MCS J.3x2

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PCPG MCS K.3x2

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PCPG MCS Cx2

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PCPG LAC ZJ.3.1x2

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PCPG DL 1821 B3x2

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PCPG DL 1821 B5x2

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A1-12-LacZ-PDL 1817A

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A1-12-LacZ-PDL 1817B

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PCPGDL1821 BS Clone

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PCPGUCSB X2

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  D11SPDL187A1-1-2

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A2-1-1LACZ-A2-PDL1817B

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PDL1817C-1

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PDL1817B-1

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PDL1817A-1

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PCPGDL1821B3-L1X2

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PCPGDL1821B3J1

  	
   

  	
   

  	
   

  	
   

  
	
  Plasmid reagents

  	
   

  	
  GS 1694

  	
   

  	
   

  	
   

  	
  5 vials

  
	
   

  	
   

  	
  PAP 1166

  	
   

  	
   

  	
   

  	
  3 vials

  
	
   

  	
   

  	
  PAP 1205

  	
   

  	
   

  	
   

  	
  3 vials

  
	
  MAB huDEL-1-BA-1.1

  	
   

  	
  Negative Control

  	
   

  	
   

  	
   

  	
  ~10- 15ml ea

  
	
   

  	
   

  	
  1B08 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1G04 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1G05 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  4D10 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  4G09 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  5C07 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  5E04 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  5E05 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  5H07 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  5H11 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6A08 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6A12 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6C11 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6D07 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6D10 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6E07 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6F07 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6F09 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6G10 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  7E08 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  7H08 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8A05 fusion product

  	
   

  	
   

  	
   

  	
   

  

 

 22
 

 

	
  Product Name

  	
   

  	
  Lot Number

  	
   

  	
  Concentration

  	
   

  	
  Quantity

  
	
   

  	
   

  	
  8A06 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8D08 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8D10 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8E10 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8F05 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8G01 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8G09 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  9F01 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  9F09 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  9G09 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10A10 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10E11 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10G04 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  11A01 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  11A04 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  11A10 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  11B07 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  11C10 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  11F06 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  11H11 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  12B01 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  12C04 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  12C09 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  12D12 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  12F09 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  13A02 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  13C02 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  13C06 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  13D04 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  13F11 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  13F12 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  13G01 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  13G07 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  14A01 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  14A10 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  14A11 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  14C09 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  14D04 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  14E12 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  14F06 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  14F12 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  14H02 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  14H04 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  15A09 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  15C04 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  15C05 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  15C09 fusion product

  	
   

  	
   

  	
   

  	
   

  

 

 23
 

 

	
  Product Name

  	
   

  	
  Lot Number

  	
   

  	
  Concentration

  	
   

  	
  Quantity

  
	
   

  	
   

  	
  15E09 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  15F11 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  15H09 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  16A11 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  16B11 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  16C09 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  16C11 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  16D12 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  16E11 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  16F10 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  16F12 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  16G09 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  16H07 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  16H08 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  16H09 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  16H10 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  17F09 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  17G06 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  17G09 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  18G10 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  19A05 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  19A11 fusion product

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  20D01 fusion product

  	
   

  	
   

  	
   

  	
   

  

 

 24

EXHIBIT D

BILL OF SALE AGREEMENT

This Bill of Sale
Agreement (the “Agreement”) is made as of      day of
January, 2007, by and between Valentis, Inc., a Delaware corporation (the “Seller”)
and Medarex, Inc., a New Jersey corporation (the “Buyer”).  Seller and Buyer are parties to a certain
Asset Purchase Agreement dated  January
15      , 2007 (the “Asset Purchase Agreement”).
Capitalized terms used without definitions herein shall the meanings ascribed
to such terms in the Asset Purchase Agreement.

1.                                       Sale
and Purchase of Acquired Assets. 
Pursuant to the Asset Purchase Agreement, Buyer on the date hereof
purchased the Acquired Assets from Seller. 
In accordance with and subject to the terms and conditions set forth in
the Asset Purchase Agreement, for good and valuable consideration, the receipt
of which is hereby acknowledged, Seller does hereby sell, assign, bargain,
transfer, convey and deliver unto Buyer all of its right, title and interest in
and to the Acquired Assets.

2.                                       No
Assumed Liabilities.  In accordance
with and subject to the terms and conditions set forth in the Asset Purchase
Agreement, Buyer does not agree to assume or pay any Liabilities or any other
debts, obligations or Liabilities of Seller not expressly assumed by Buyer in
the Asset Purchase Agreement.

3.                                       Cooperation.  Buyer and Seller agree to cooperate with each
other to execute and deliver such other documents and instruments and to do
such further acts and things as may be reasonably requested by the other to
evidence, document or carry out the sale of the Acquired Assets and the
assumption of no assumed Liabilities.

4.                                       Effect
of Agreement.  Nothing in this
Agreement shall, or shall be deemed to, modify or otherwise affect any
provisions of the Asset Purchase Agreement or affect the rights of the parties
under the Asset Purchase Agreement.  In
the event of conflict between the provisions hereof and the provisions of the
Asset Purchase Agreement, the provisions of the Asset Purchase Agreement shall
govern and control.

IN WITNESS WHEREOF,
Seller and Buyer have caused this Bill of Sale to be executed on the date first
written above.

	
  SELLER:

  	
   

  	
  BUYER:

  
	
   

  	
   

  	
   

  
	
  Valentis,
  Inc.

  	
   

  	
  Medarex, Inc.

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
								

 

 25

EXHIBIT E

Valentis Letter Head

By Facsimile
(615-343-0488) and First Class US Mail

Office of Technology
Transfer

Vanderbilt University

405 Kirkland Hall

Nashville, TN 37240

Re:  Notice of Assignment of Del-1 Patent Rights
and License Agreement

To whom it may concern:

As
you know, Valentis, Inc. currently retains right, title and interest to the
Del-1 inventions (“Del-1 Inventions”), as they are identified in the license
agreement dated July 17, 2005, and as amended between Valentis, Inc., (f/k/a
Progenitor, Inc.) and Vanderbilt University (“Agreements”).

This
shall serve as notice that Valentis, Inc. is assigning to Medarex, Inc. its
equal, undivided and exclusive right, title and interest relating to the Del-1
Inventions, and assigning the Agreements themselves, provided the anticipated
closing between Valentis, Inc. and Medarex occurs (“Closing Date”).

Medarex,
Inc., in its agreement with Valentis, Inc. will expressly assume, in writing,
performance of all terms and conditions of the Agreements.

After
the Closing Date, Vanderbilt University should kindly cease interfacing with
Valentis, Inc. regarding the Del-1 Inventions and should direct any and all
information, correspondence and the like concerning the Del-1 Inventions to:  Medarex, Inc., Business Development
Department, 707 State Road, Princeton, NJ 08540, Attn: Melinda Shockley.

Please
sign and date and return to me by facsimile with the original by US mail in
acknowledgement of the foregoing.

Thank
you.

	
  

  	
   

  	
  Valentis, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Benjamin McGraw

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CEO

  

 

 26
 

READ AND
ACKNOWLEDGED:

Vanderbilt University

	
  By:

  	
   

  	
   

  
	
   

  
	
   

  
	
  Print Name:

  	
   

  	
   

  
	
   

  
	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  
									

 

Please
fax to Valentis at 650.652.1990 attention Mary Lou Froese and send original by
postpaid, first class, registered or certified mail to Valentis at 863A Mitten
Road, Burlingame, CA 94402.  Thank you.

Confidential

This shall serve as
notice that Valentis is assigning to Medarex, Inc. its equal, undivided and
exclusive right, title and interest relating to the Del-1 inventions, as
detailed in the relevant agreements (the “Agreements”), as amended, between
Valentis and Vanderbilt University, and assigning the Agreements
themselves,  provided the anticipated
closing between Valentis and Medarex is consummated (“Closing Date”).

In accordance with the
Agreements, Medarex, Inc., in its agreement with Valentis, will expressly
assume, in writing, performance of all terms and conditions of the Agreements.

 27
 

After the Closing Date,
Vanderbilt University should cease interfacing with Valentis regarding the
Del-1 inventions and should direct any and all information, correspondence and
the like concerning the Del-1 inventions to  
Medarex, Inc., Business Development Department, 707 State Road,
Princeton, NJ 08540, Attn: Melinda Shockley.

READ AND
ACKNOWLEDGED:

Vanderbilt
University

	
  By:

  	
   

  	
   

  
	
   

  
	
  Print
  Name:

  	
   

  	
   

  
	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  
								

 

(Vanderbilt:
Please fax to Valentis at
             and
send original by postpaid, first class, registered or certified mail to
Valentis.  Thank you.

 28Exhibit 10.1

KRAFT FOODS INC.

2005 PERFORMANCE INCENTIVE PLAN

RESTRICTED STOCK
AGREEMENT

(January 29, 2007)

KRAFT
FOODS INC. (the “Company”), a Virginia corporation, hereby grants to the
employee identified in the 2007 Restricted Stock Award section of the Award
Statement (the “Employee”) under the Kraft Foods Inc. 2005 Performance
Incentive Plan (the “Plan”) a Restricted Stock Award (the “Award”) dated
January 29, 2007, with respect to the number of shares set forth in the 2007
Restricted Stock Award section of the Award Statement (the “Shares”) of the
Class A Common Stock of the Company (the “Common Stock”), all in accordance
with and subject to the following terms and conditions:

1.             Book
Entry Registration.   The Shares shall be evidenced by a book entry account
maintained by the Company’s Transfer Agent for the Common Stock. Upon the
vesting of Shares, no certificates will be issued except upon a separate
written request therefore made to such Transfer Agent or other agent as
determined by the Company.

2.             Restrictions.   Subject
to Section 3 below, the restrictions on the Shares shall lapse and the Shares
shall vest on the Vesting Date set forth in the 2007 Restricted Stock Award
section of the Award Statement (the “Vesting Date”), provided that the Employee
remains an employee of the Company (or a subsidiary or affiliate) during the
entire period (the “Restriction Period”) commencing on the Award Date set forth
in the Award Statement and ending on the Vesting Date.

3.             Termination
of Employment During Restriction Period.   In the event of the
termination of the Employee’s employment with the Company (and with all
subsidiaries and affiliates of the Company) prior to the Vesting Date due to
death or Disability, or upon the Employee reaching eligibility for Normal
Retirement, the restrictions on the Shares shall lapse and the Shares shall
become fully vested on the date of death, Disability, or eligibility for Normal
Retirement.

If the Employee’s
employment with the Company (and with all subsidiaries and affiliates of the
Company) is terminated for any reason other than death or Disability, prior to
the end of the Restriction Period, the Employee shall forfeit all rights to the
Shares. For the avoidance of doubt, an Employee’s employment shall be
considered terminated if he or she has ceased to perform services for the
Company and is receiving or is eligible or entitled to receive severance pay,
notice of termination or pay in lieu thereof, salary continuation or other
benefits under the Kraft Foods Global, Inc. Severance Pay Plan or any similar
plan maintained by the Company, a subsidiary or an affiliate or under an
individual agreement or under local law; provided, however, that if an Employee
would have been eligible for Normal Retirement had the Employee continued in
the employ of the Company (or a subsidiary or affiliates of the Company) until
the expiration of such salary continuation or other benefits, the Employee
shall be treated as if he or she continued in employment during such period for
purposes of this Agreement. Notwithstanding the foregoing, the Compensation
Committee of the Board of Directors of the Company (the “Committee”) may, in
its sole discretion, waive the restrictions on, and the vesting requirements
for, the Shares.

4.             Voting
and Dividend Rights.   During the Restriction Period, the Employee
shall have the rights to vote the Shares and to receive any cash dividends
payable with respect to the Shares, as paid, less applicable withholding taxes
(it being understood that such dividends will generally be taxable as ordinary
compensation income during such Restriction Period).

5.             Transfer
Restrictions.   This Award and the Shares (until they become
unrestricted pursuant to the terms hereof) are non-transferable and may not be
assigned, hypothecated or otherwise pledged and shall not be subject to
execution, attachment or similar process. 
Upon

any
attempt to effect any such disposition, or upon the levy of any such process,
the Award shall immediately become null and void and the Shares shall be
forfeited.

6.             Withholding
Taxes.    The Company is authorized to satisfy the actual minimum
statutory withholding taxes arising from the granting or vesting of this Award,
as the case may be, by deducting the number of shares having an aggregate value
equal to the amount of withholding taxes due from the total number of shares
awarded or the number of shares vesting or otherwise becoming subject to
current taxation. The Company is also authorized to satisfy the actual
withholding taxes arising from the granting or vesting of this Award, or
hypothetical withholding tax amounts if the Employee is covered under a Company
tax equalization policy, as the case may be, by the remittance of the required
amounts from any proceeds realized upon the open-market sale of vested Shares
by the Employee. Shares deducted from this Award in satisfaction of actual
minimum withholding tax requirements shall be valued at the Fair Market Value
of the Shares on the date as of which the amount giving rise to the withholding
requirement first became includible in the gross income of the Employee under
applicable tax laws.  If the Employee is
covered by a Company tax equalization policy, the Employee also agrees to pay
to the Company any additional tax obligation calculated and paid in accordance
with such tax equalization policy.

7.             Death
of Employee.   If any of the Shares shall vest upon the death of the
Employee, they shall be registered in the name of the estate of the Employee
except that, to the extent permitted by the Committee, if the Company shall
have theretofore received in writing a beneficiary designation, the Shares
shall be registered in the name of the designated beneficiary.

8.             Other
Terms and Provisions.   The terms and provisions of the Plan (a copy of
which will be furnished to the Employee upon written request to the Office of
the Secretary, Kraft Foods Inc., Three Lakes Drive, Northfield, IL 60093) are
incorporated herein by reference. The Plan and this Award is governed by and
will be construed in accordance with the laws of the Commonwealth of Virginia.
To the extent any provision of this Award is inconsistent or in conflict with
any term or provision of the Plan, the Plan shall govern. For purposes of this
Agreement, (a) the term “Disability” means permanent and total disability as
determined under procedures established by the Company for purposes of the
Plan, and (b) the term “Normal Retirement” means retirement from active
employment under a pension plan of the Company, any subsidiary or affiliate or
under an employment contract with any of them on or after the date specified as
the normal retirement age in the pension plan or employment contract, if any,
under which the Employee is at that time accruing pension benefits for his or
her current service (or, in the absence of a specified normal retirement age,
the age at which pension benefits under such plan or contract become payable
without reduction for early commencement and without any requirement of a
particular period of prior service).  In
any case in which (i) the meaning of “Normal Retirement” is uncertain under the
definition contained in the prior sentence or (ii) a termination of employment
at or after age 65 would not otherwise constitute “Normal Retirement,” an
Employee’s termination of employment shall be treated as a “Normal Retirement”
under such circumstances as the Committee, in its sole discretion, deems
equivalent to retirement. Generally, for purposes of this Agreement, (x) a “subsidiary”
includes only any company in which the Company, directly or indirectly, has a
beneficial ownership interest of greater than 50 percent and (y) an “affiliate”
includes only any company that (A) has a beneficial ownership interest,
directly or indirectly, in the Company of greater than 50 percent or (B) is under common control with the Company
through a parent company that, directly or indirectly, has a beneficial
ownership interest of greater than 50 percent in both the Company and the
affiliate. In the event of any merger, share exchange, reorganization,
consolidation, recapitalization, reclassification, distribution, stock
dividend, stock split, reverse stock split, split-up, spin-off, issuance of
rights or warrants or other similar transaction or event affecting the Common
Stock after the date of this Award, the Board of Directors of the Company shall
make adjustments to the number and kind of shares of stock subject to this
Award, as necessary and appropriate to prevent the Employee from experiencing a
significant increase or decrease in the then existing fair market value
(disregarding restrictions based on future service) of this Award. Such
adjustments may include the substitution of equity interests in other entities
involved in 

such transactions and providing for cash payments in
lieu of restricted or unrestricted shares. The Committee shall also determine
whether continued employment with any entity resulting from such a transaction
will or will not be treated as continued employment by the Company or a
subsidiary or affiliate. Capitalized terms not otherwise defined herein have
the meaning set forth in the Plan.

IN WITNESS WHEREOF, this Restricted Stock
Agreement has been duly executed as of January 29, 2007.

	
  

  	
  Kraft Foods Inc.

  
	
   

  	
  By:

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