Document:

exv10w6w1

 

Exhibit 10.6.1

*** Confidential Treatment Requested. Confidential portions of this document have been

redacted and have been separately filed with the Commission.

PATENT LICENSE AGREEMENT

THIS LICENSE AGREEMENT, dated as of March 30, 2001, is entered into between INCYTE GENOMICS, a
Delaware corporation, with offices at 3160 Porter Drive, Palo Alto, California 94303 (“Incyte”),
and Genomic Health, Inc., a Delaware corporation with offices at 101 University Avenue, Suite
220, Palo Alto, California 94301 (“GHI”).

BACKGROUND

     WHEREAS, Incyte has the right to grant licenses under certain patent applications and
patents that have application to Diagnostic Products (as defined herein) and Personalized
Research Products (as defined herein).

     WHEREAS, GHI is interested in obtaining, and Incyte has agreed to grant licenses under
certain of these patents and patent applications for use in the fields described herein, subject
to the terms and conditions of this Agreement.

     NOW THEREFORE, in consideration of the foregoing premises and the mutual covenants herein
contained, the parties hereby agree as follows:

ARTICLE

1

DEFINITIONS

In this Agreement the following words and expressions have the following meanings:

	1.1  	“Affiliate”: shall mean any corporation or other entity that is directly or
indirectly controlled by GHI. For the purpose of this agreement, control means ownership of
one hundred percent (100%), or in the case of foreign corporations or entities the greatest
percentage that may be owned by foreign interests, of the shares or other equity interests
entitled to vote for the election of directors, in the case of a corporation, or equivalent
governing body in the case of any other entity.
	 
	1.2  	“Calendar Quarter”: shall mean a period of three consecutive calendar months ending
on March 31, June 30, September 30 or December 31.
	 
	1.3  	“Cancer Marker Patent Rights”: shall mean all claims listed in any of the following
patents and patent applications, to the extent that they are owned by Incyte with the right to
license under this Agreement, and to the extent that they claim the composition of matter or
use of any nucleic acids or proteins as markers or diagnostics for cancer: (a) the patents and
patent applications listed in Schedule A to this Agreement, and (b) all counterpart foreign
patent applications claiming priority of the patents and patent applications described in
clause (a) above, together with all continuations, continuations-in-part and divisions of such
patents and patent applications, (c) all patents issuing from any patent

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	   	application described in clause (a) or (b) above, and (d) all reissues and
re-examinations of any of the foregoing patents.
	 
	1.4  	“Control” or “Controlled” shall mean possession of the ability to grant the
right and licenses provided for herein, without violating the terms of any agreement or other
arrangement with any third party, and which a party has the right to disclose or provide to
the other party without a resulting obligation to pay royalties or other amounts to a third
party.
	 
	1.5  	“Database Patent”: shall mean (a) the patents listed in Schedule D to this Agreement,
and (b) all counterpart foreign patent applications claiming priority of the patents and
patent applications described in clause (a) above, together with all continuations,
continuations-in-part and divisions of such patents and patent applications, (c) all patents
issuing from any patent application described in clause (a) or (b) above, and (d) all reissues
and re-examinations of any of the foregoing patents.
	 
	1.6  	“Diagnostic Field of Use”: shall mean the research, development, manufacture,
importation. use and/or sale of Diagnostic Product(s). The Diagnostic Field of Use excludes
the Personalized Research Field of Use, the Homebrew Field of Use and the Internal Research
Field of Use.
	 
	1.7  	“Diagnostic Product(s)”: shall mean an assay provided as a product or service
performed on a human tissue or other human biological sample containing nucleic acids or
proteins that are collectively intended to establish or identify an association between the
presence or absence of such nucleic acids or proteins and:

	 	(i)  	diagnosis of the presence of, or absence of, a specific disease(s),
state(s) or condition(s) in humans;
	 
	 	(ii)  	predisposition to the presence of, or absence of, a specific
disease(s), state(s) or condition(s) in humans;
	 
	 	(iii)  	response or lack of response to disease therapy(ies) in humans or
preventative strategies in humans;
	 
	 	(iv)  	prediction of the disease course in humans, and or other changes in
state(s) or condition(s) in humans over time;
	 
	 	(v)  	clinical traits in humans for which a medical professional should be
consulted;
	 
	 	(vi)  	variation(s) in specific trait(s) and/or characteristics among
individuals; and/or
	 
	 	(vii)  	predisposition to development of toxicities to disease therapies or
preventative strategies in humans,

	   	the results of which are provided to payors, providers or patients, and for which FDA
approval (or comparable regulatory agency in other jurisdictions) is required.
Diagnostic Products exclude Homebrew Products, Personalized
Research Products and GHI Database Products.

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	1.8  	 “Effective Date”: shall mean the date first set forth above.
	 
	1.9  	“GHI Database Field of Use”: shall mean the research, development, manufacture,
importation, use and/or sale of GHI Database Product(s) to end users.
	 
	1.10  	“GHI Database Product”: GHI Database Product shall mean a collection of information
derived from or by testing a person or persons in the Diagnostic Field of Use, Homebrew Field
of Use or the Personalized Research Field of Use. GHI Database Products exclude Diagnostic
Products, Homebrew Products, and Personalized Research Products.
	 
	1.11  	“Homebrew Field of Use”: shall mean the research, development, manufacture,
importation, use and/or sale of Homebrew Product(s). The Homebrew Field of Use excludes the
Diagnostic Field of Use, the Internal Research Field of Use and the Personalized Research
Field of Use.
	 
	1.12  	“Homebrew Product(s)” shall mean a Single Analyte Assay(s) provided as a product or a
service performed by a service provider that would constitute a Diagnostic Product with the
sole exception that it is provided prior to receipt of approval by the FDA or comparable
regulatory agency in any jurisdiction outside of the United States. Homebrew Products exclude
Diagnostic Products, Personalized Research Products and GHI Database Products. For purposes
of the foregoing, “Single-Analyte Assays” shall mean an assay designed for testing or
measuring only a single analyte.
	 
	1.13  	“Incyte Research Product” shall have the meaning set forth in Section 2.8.
	 
	1.14  	“Internal Research Field of Use”: shall mean (a) internal research, development,
manufacture, use, importation and/or sale of Internal Research Products; and (b) internal
research and development purposes (including without limitation, drug discovery, development,
commercialization and regulatory filings), including the development of databases and other
products and tools marketed for use in internal research and development purposes, including
without limitation, drug discovery, development. commercialization and regulatory filings.
The Internal Research Field of Use excludes the Diagnostic Field of Use, the Homebrew Field of
Use, and the Personalised Research Field of Use.
	 
	1.15  	“Internal Research Product(s)”: shall mean internal research and development
purposes (including without limitation, drug discovery, development, commercialization
and regulatory filings), including the development of databases and other products and
tools marketed for use in internal research and development purposes, including without
limitation, drug discovery, development. commercialization and regulatory filings.
Internal Research

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*** Confidential material redacted and filed separately with the Commission.

	   	Product(s) exclude Diagnostic Product(s), Homebrew Product(s) and Personalized Research
Product(s).
	 
	1.16  	“Layton Patent Rights”: shall mean (a) U.S. Patent No. 5,716,785, “Processes
for Genetic Manipulations Using Promoters” issued February 1, 1998; U.S. Patent No.
5,891,636, “Processes for Genetic Manipulations Using Promoters” issued April 6, 1999 (b)
all counterpart foreign patent applications claiming priority of the patent described in
clause (a) above, together with all continuations, continuations-in-part and divisions of such
patent applications, (c) all patents issuing from any patent application described in clause
(b) above and (d) all reissues and re-examinations of any of the foregoing patents.
	 
	1.17  	“Montefiore Patent Rights”: shall mean U.S. Patent No. 4,981,783, “Method for
Detecting Pathological Conditions”, issued Jan. 1, 1991.
	 
	1.18  	“Net Sales”: shall mean invoiced sales by a party or a party’s Affiliate on all sales
of Products (in final form for end use) to an unaffiliated third party, and exclusive of
intercompany transfers or sales, less the following deductions from such invoiced sales, which
are actually incurred, to the extent that they are reasonable and customary, and to the extent
that they do not exceed *** percent (***%) of invoiced sales during any Calendar Quarter:

(i) credits or allowances actually granted for damaged Products, returns or
rejections of Product and retroactive price reductions;

(ii) freight, postage, shipping, customs duties and insurance charges;

(iii) normal and customary trade, cash and quantity discounts, allowances and
credits;

(iv) uncollected amounts to the extent not exceeding *** percent (***%) of
invoiced sales for a calendar quarter; and

(v) sales, value added or similar taxes measured by the billing amount, when
included in billing.

	1.19  	“Patent Rights”: shall mean collectively, the Cancer Marker Patent Rights, Database
Patent Rights, Layton Patent Rights, the Montefiore Patent Rights, the Seilhamer/Scott Patent
Rights, and the Stanford Patent Rights;

	1.20  	“Personalized Research Field of Use”: shall mean the research, development,
manufacture, importation, use and/or sale of Personalized Research Product(s). The
Personalized Research Field of Use excludes the Diagnostic Field of Use, the Homebrew Field of
Use, and the Internal Research Field of Use.

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	1.21  	“Personalized Research Product(s)”: shall mean a Multi-Analyte Assay(s) provided as a
product or a service containing nucleic acids or proteins that are collectively intended to
establish or identify an association between the presence or absence of such nucleic acids or
proteins and:

	 	(i)  	diagnosis of the presence of, or absence of, a specific disease(s),
state(s) or condition(s) in humans;
	 
	 	(ii)  	predisposition to the presence of, or absence of, a specific
disease(s), state(s) or condition(s) in humans;
	 
	 	(iii)  	response or lack of response to disease therapy(ies) in humans or
preventative strategies in humans;
	 
	 	(iv)  	prediction of the disease course in humans, and or other changes in
state(s) or condition(s) in humans over time;
	 
	 	(v)  	clinical traits in humans for which a medical professional should be
consulted;
	 
	 	(vi)  	variation(s) in specific trait(s) and/or characteristics among
individuals; and/or
	 
	 	(vii)  	predisposition to development of toxicities to disease therapies or
preventative strategies in humans,

	   	Such an assay will be considered a “Personalized Research Product” only where the results
are provided directly to the tested individual and/or to the tested individual’s health
care provider, and where the approval by the FDA or comparable regulatory agency in any
jurisdiction outside of the United States is not required. “Personalized Research
Products” exclude Homebrew Products, Diagnostic Products and GHI Database Products. For
purposes of the foregoing, “Multi-Analyte Assay(s)” shall mean an assay designed for
testing or measuring more than a single analyte.

	1.22  	“Product(s)”: shall mean GHI Database Products, Personalized Research Products,
Homebrew Products, Incyte Research Products, Therapeutic Products and/or Diagnostic Products.

	1.23  	“Seilhamer/Scott Patent Rights”: shall mean (a) US Patent No. 6,114,114
“Comparative Gene Transcript Analysis” issued September 5, 2000, (b) US Patent No.
5,840,484 “Comparative Gene Transcript Analysis” issued November 24, 1998 (c) all
counterpart foreign patent applications claiming priority to the patents described in clauses
(a)and (b) above, together with all continuations, continuations-in-part and divisions of such
patents, and (d) all reissues and re-examinations of any of the foregoing patents.

	1.24  	“Stanford Patent Rights”: shall mean (a) US Patent No. 5,807,522 “Methods for
Fabricating Micro Arrays of Biological Samples” issued September 15, 1998 (b) all counterpart
foreign patent applications claiming priority of the patent described in clause (a) above,
together with all continuations, continuations-in-part and divisions of such patent
applications, (c) all patents issuing from any patent

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	   	application described in clause (b) above and (d) all reissues and re-examinations of any
of the foregoing patents.
	 
	1.25  	“Therapeutic Product” shall have the meaning set forth in Section 2.8.
	 
	1.26  	“Valid Claim”: shall mean a claim of an issued and unexpired patent which has not
been held unenforceable, unpatentable or invalid by a decision of a court or governmental body
of competent jurisdiction, unappealable or unappealed within the time allowed for appeal,
rendered unenforceable due to disclaimer or otherwise, or lost through an interference
proceeding.

ARTICLE

2

LICENSE GRANT

	2.1  	Layton and Stanford Patent Rights. Subject to the terms of this Agreement, Incyte
hereby grants to GHI and its Affiliates, and GHI and its Affiliates accept from Incyte a
nonexclusive, non-transferrable, limited sublicenseable (only as set forth in Sections 2.5 and
2.6 below), world-wide license under the Layton Patent Rights and the Stanford Patent Rights
to practice and use the subject matter within the Layton Patent Rights and the Stanford Patent
Rights in the GHI Database Field of Use, Diagnostic Field of Use, the Homebrew Field of Use
and the Personalized Research Field of Use.

	2.2  	Montefiore Patent Rights. Subject to the terms of this Agreement, Incyte hereby
grants to GHI and its Affiliates, and GHI and its Affiliates accept from Incyte a
non-transferrable, limited sublicenseable (only as set forth in Sections 2.5 and 2.6 below),
world-wide license under the Montefiore Patent Rights to practice and use the subject matter
within the Montefiore Patent Rights in the GHI Database Field of Use, the Diagnostic Field of
Use, the Homebrew Field of Use and the Personalized Research Field of Use. The license under
the Montefiore Patent Rights shall be exclusive in the Personalized Research Field of Use and
Co-exclusive (as described in Section 2.6) in the GHI Database Field of Use, the Homebrew
Field of Use and the Diagnostic Field of Use.

	2.3  	Cancer Marker Patent Rights. Subject to the terms of this Agreement, Incyte hereby
grants to GHI and its Affiliates, and GHI and its Affiliates accept from Incyte a
non-transferrable, limited sublicenseable (only as set forth in Sections 2.5 and 2.6 below),
world-wide license under the Cancer Marker Patent Rights to practice and use the subject
matter within the Cancer Marker Patent Rights in the GHI Database Field of Use, the Diagnostic
Field of Use, the Homebrew Field of Use and the Personalized Research Field of Use, only with
respect to cancer. The license under the Cancer Marker Patent Rights shall be exclusive in
the Personalized Research Field of Use with respect to cancer, and co-exclusive (as described
in Section 2.6) in the GHI Database Field of Use, Diagnostic Field of
Use and the Homebrew Field of Use with respect to cancer.

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	2.4  	Database Patent Rights and Seilhamer/Scott Patent Rights. Subject to the terms of
this Agreement, Incyte hereby grants to GHI and its Affiliates, and GHI and its Affiliates
accept from Incyte a non-exclusive, non-transferable, non-sublicenseable , world-wide license
under the Database Patent Rights and Seilhamer/Scott Patent Rights to practice and use the
subject matter within the Database Patent Rights and the Seilhamer/Scott Patent Rights in the
GHI Database Field of Use, the Diagnostic Field of Use, the Homebrew Field of Use, and the
Personalized Research Field of Use.

	2.5  	Sublicenses. Except as provided in Section 2.6 and this Section 2.5, the rights
granted in Section 2.1 through 2.3 above shall not be sublicensable; provided, GHI shall have
the right to grant sublicenses to third parties under such Patent Rights on a
Product-by-Product basis to make, use, import, sell, and offer for sale Product(s) developed
by GHI or its Affiliates.
	 
	2.6  	Co-Exclusive License(s) — Homebrew and Diagnostic Fields of Use.
For the purposes of this Article 2.0, “Co-Exclusive” shall mean that (a) each Party has
the right to exercise all of the rights under the Patent Rights in question in the field
of use for which the parties have co-exclusive rights, without obligation to the other
except to the extent provided in this Agreement, and (b) neither Party alone has the
right to grant sublicenses to third parties under such Patent Rights without express
written consent of the other Party with the following exceptions:

	 	(v)  	GHI shall have the right to grant sublicenses as provided in Section
2.5 above;
	 
	 	(w)  	Incyte shall have the right to grant licenses in the Homebrew Field of
Use and the Diagnostic Field of Use on a Product-by-Product basis to make, use,
import, sell, and offer for sale Product(s) developed by Incyte or its Affiliates.
	 
	 	(x)  	Incyte shall have the right to grant sublicenses with respect to the
Cancer Marker Patent Rights in the Homebrew and Diagnostic Fields of Use) with
respect to individual nucleic acids or proteins in connection with Incyte licenses
of nucleic acids or proteins for use as targets for the development of vaccines or
therapeutic products;
	 
	 	(y)  	GHI shall have the right to request that Incyte grant a sublicense
under the Montefiore Patent Rights in the Diagnostic Field of Use and/or the
Homebrew Field of Use to one (1) third party with which GHI enters into a cross
license agreement involving the Montefiore Patent Rights, and Incyte agrees to
grant such a sublicense;
	 
	 	(z)  	Incyte shall have the right to grant a sublicense under the Montefiore
Patent Rights in the Diagnostic Field of Use and/or the Homebrew Field of Use to
one (1) third party with which Incyte enters into a cross license
agreement involving the Montefiore Patent Rights; and

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	 	(zz)  	Any additional licenses under the Montefiore Patent Rights granted by
the Parties shall be subject to mutual written agreement of the parties, and the
parties shall share all revenues received from licensees for licenses under the
Montfiore Patent Rights, after deduction of all amounts owed to the owner of the
Montefiore Patent Rights.

	2.7  	No Implied Licenses. Incyte grants no licenses to GHI under any Patent Rights except
as expressly granted under this Agreement. There are no other licenses granted by Incyte to
GHI under this Agreement, whether by implication, estoppel or otherwise. GHI shall not use
any Patent Rights for any purpose or in any field other than as described in Sections 2.1
through 2.6.
	 
	2.8  	Grant Back. GHI hereby grants to Incyte, and Incyte hereby accepts, an exclusive,
paid up, non-transferable, sublicensable, worldwide license under GHI patent rights and trade
secret rights owned and Controlled by GHI, with respect to any discoveries (to the extent such
discoveries relate to the composition of matter or use of any nucleic acids or proteins
claimed in the Cancer Marker Patent Rights) made by GHI in connection with GHI’s use of the
Cancer Marker Patent Rights (the “Cancer Marker Improvements”) for use by Incyte and Incyte’s
sublicensees in the (i) Internal Research Field of Use, (ii) in connection with the
manufacture, use and sale of vaccines and therapeutic products (each therapeutic product a
“Therapeutic Product”), and (iii) Diagnostic Products in connection with the exercise of
rights under (ii).
	 
	   	GHI hereby grants to Incyte, and Incyte hereby accepts, a non-exclusive, royalty-bearing,
non-transferable, non-sublicensable, worldwide license under GHI patent rights and trade
secret rights owned and Controlled by GHI, with respect to Personalized Research Products
developed by GHI and licensed under this Agreement or the LifeSeq Collaborative Agreement
of even date herewith (the “GHI PRx Improvements”), to manufacture,have manufactured,
sell, offer for sale, and use such Personalized Research Products in the Internal
Research Field of Use (each an “Incyte Research Product”).
	 
	2.9  	GHI grants no licenses to Incyte under this Agreement except as expressly granted herein.
There are no other licenses granted by GHI to Incyte under this Agreement, whether by
implication, estoppel or otherwise. Incyte shall not use any GHI patent rights and trade
secrets for any purpose or in any other field other than described in Section 2.8.
	 
	2.10  	After the Effective Date and for a period of two (2) years thereafter, Incyte shall use
reasonable efforts to notify GHI and discuss with GHI any additional patents or patent
applications Controlled by Incyte that Incyte intends to make available for exclusive or
co-exclusive use in the Diagnostic Field of Use, the Homebrew Field of Use or Personalized
Research Field of Use.

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*** Confidential material redacted and filed separately with the Commission.

ARTICLE

3

LICENSE FEES

	3.1  	In consideration for Incyte’s agreement under Section 2.3 hereof, on the Effective Date, GHI
shall pay to Incyte each of the License Issuance fees and Royalties on Net Sales specified on
Schedule B.
	 
	   	In consideration for GHI’s agreement under Section 2.8 hereof, Incyte shall pay to GHI
each of the Royalties on Net Sales specified on Schedule C.
	 
	3.2  	In the event that a Product is sold in combination with other product(s) and/or service(s)
for which no royalty would be due hereunder if sold separately, Net Sales from such
combination sales for purposes of calculating the amounts due under this Article 3 shall be
calculated by multiplying the Net Sales of the combination product by the fraction A/(A+B),
where A is the average gross selling price during the applicable calendar quarter of the
Product sold separately to the same category of customers (e.g. patients, health care
providers, or Diagnostic Product distributors) and B is the average gross selling price during
the applicable calendar quarter of the other product(s) and/or services. In the event that
such separate sales were not made during the previous calendar quarter then the Net Sales
shall be calculated by multiplying the Net Sales of the combination product by the fraction
C/(C+D), where C is the average cost of goods sold during the applicable calendar quarter of
the Product and D is the average cost of good sold during the applicable calendar quarter of
the other product(s) and/or service(s) , in each case calculated in accordance with standard
and customary accounting principles.
	 
	3.3  	In the event that GHI pays royalties to third parties in connection with the sale of
Diagnostic Products either under agreements for patent rights (including applications
therefor) or other technologies which GHI, in GHI’s reasonable judgment, determines are
necessary or desirable to license or acquire with respect to such Diagnostic Products,
including joint owners of patent applications or patents within the Patent Rights, GHI may
deduct up to *** percent (***%) of such royalties which are due Incyte hereunder; provided,

	 	(i)  	in no event shall the royalties which are due Incyte hereunder be reduced
by reason of this Section 3.3 to less than *** percent (***%) of the amount that
would otherwise by payable to Incyte without any deduction under this Section 3.3;
and
	 
	 	(ii)  	provided further that GHI shall be entitled to deduct from royalties
payable on account of its licenses under (a) the Layton Patent Rights only royalties
payable for use of patents or other technologies directed toward sample preparation;
(b) the Stanford Patent Rights only

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*** Confidential material redacted and filed separately with the Commission.

	 	   	royalties payable for use of patents or other technologies directed toward
microarray manufacture, use and/or sale; and (c) the Cancer Marker Patent
Rights only royalties payable for use of patents or know-how rights directed
toward the composition of matter or use of nucleic acids or proteins.

	3.4  	In the event that Incyte pays royalties to third parties in connection with the sale of
Therapeutic Products, Diagnostic Products or Incyte Research Products either under agreements
for patent rights (including applications therefor) or other technologies which Incyte, in
Incyte’s reasonable judgement, determines are necessary or desirable to license or acquire
with respect to such Therapeutic Products, Diagnostic Products and Incyte Research Products,
Incyte may deduct up to *** percent (***%) of such royalties which are due GHI hereunder;
provided,

	 	(i)  	in no event shall the royalties which are due GHI hereunder be reduced by
reason of this Section 3.4 to less than *** percent (***%) of the amount that would
otherwise by payable to GHI without any deduction under this Section 3.4; and
	 
	 	(ii)  	provided further that Incyte shall be entitled to deduct from royalties
payable on account of its licenses hereunder only royalties payable for use of
patents or know-how rights directed toward the composition of matter or use of
nucleic acids or proteins.

	3.5  	Even if a Product is covered by more than one Valid Claim within each of the Layton Patent
Rights, the Stanford Patent Rights and the Cancer Marker Patent Rights, GHI shall be obligated
to pay only one royalty under each of the Cancer Marker Patent Rights, the Layton Patent
Rights, and the Stanford Patent Rights, as applicable. Likewise, even if a Product is covered
by more than one Valid Claim within the Cancer Marker Improvements and the GHI PRx
Improvements, Incyte shall be obligated to pay only one royalty under each of Cancer Marker
Improvements and the GHI PRx Improvements, as applicable. It is understood that no royalty
shall be due hereunder with respect to sales or other transfers of Products for use as
promotional samples if such Products are provided without charge.
	 
	3.6  	Each party owing amounts hereunder shall make quarterly written reports to the other party
within sixty (60) days after the end of each calendar quarter, stating in each such report the
aggregate Net Sales of Products sold during the calendar quarter. Simultaneously with the
delivery of each such report, the reporting party shall pay to the other party the total
royalties, if any, due to such party for the period of such report. If no royalties are due,
the reporting party shall so report. Neither party shall provide to third parties any
information contained in reports provided to such party pursuant to this Section 3.6, except
as required by a party’s agreements with its licensors.

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	3.7  	All such payments shall be paid in United States Dollars, originated from a United States
bank located in the United States and made by bank wire transfer in immediately available
funds to such account as the receiving party shall designate.

	3.8  	Each party shall permit an independent certified public accounting firm of nationally
recognized standing appointed by the inspecting party, and reasonably acceptable to other
party, to examine and audit its records during reasonable business hours upon at least fifteen
(15) days prior written notice to the extent necessary to verify the accuracy of the reports
delivered under Section 3.6 above for three (3) years after the date of such reports. Such
inspections may be made no more than once each calendar year, at reasonable times and on
reasonable notice. Inspections conducted under this Section 3.8 shall be at the expense of
inspecting Party, provided, if such an audit correctly uncovers a deficiency in payment of
royalties payable by a party hereunder, such audited party shall immediately pay to the other
party such deficient amount, and if the amount of any such deficiency is greater than 5% of
the total amount due during the audited period, such audited party shall bear the reasonable
out of pocket expenses of such accounting firm to conduct such audit.

	3.9  	Each party owing amounts hereunder shall pay, or reimburse the other party, as appropriate,
and indemnify the other party against any sales, use, value added/ad valorum, surtax and
personal property taxes, customs, duties, registration fees and the like including interest
and penalties arising out of this Agreement and the transactions contemplated herein,
including the costs and responsibility of any withholding taxes.

ARTICLE

4

PATENT PROSECUTION AND ENFORCEMENT

	4.1  	As between Incyte and GHI only, Incyte shall have the sole right (in its sole discretion),
but not the obligation, to control the preparation, filing, prosecution, maintenance and
enforcement of the Patent Rights. Incyte shall consult with GHI no less than once in any
calendar quarter regarding its filing and prosecution strategies with respect to the Cancer
Marker Patent Rights, including with respect to all decisions regarding the filing of patent
applications directed to the Cancer Marker Patent Rights in jurisdictions outside of the
United States. Prior to abandoning any patent applications included in the Cancer Marker
Patent Rights, or forefeiting potential patent claims directed to any nucleic acid or protein
sequence included in the Cancer Marker Patent Rights, Incyte shall notify GHI and provide GHI
with a reasonable opportunity to assume responsibility for the prosecution of any such
application or patent claims, at GHI’s expense. Upon issuance of any patents included within
the Cancer Marker

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*** Confidential material redacted and filed separately with the Commission.

	   	Patent Rights, Incyte shall pay all maintenance fees required to maintain such patents.
Incyte shall remain the owner of record for all such Cancer Marker Patent Rights. GHI
shall execute such documents and take such additional steps as Incyte may reasonably
request to enable Incyte to exercise its rights and to perform its obligations under this
Section 4.1.
	 
	4.2  	Incyte shall have no obligation to take any action whether through the institution of legal
proceedings or otherwise with respect to any infringement or suspected infringement of the
Patent Rights. Without prejudice to any separate agreement that may be or have been reached
between the parties, if Incyte in its sole discretion decides to take any such action it shall
do so at its own cost, and GHI shall have no claim to any sums received by Incyte. GHI shall
provide reasonable assistance to Incyte at no out-of-pocket expense to GHI. In the event
Incyte declines to take any action with respect to any infringement or suspected infringement
of the Montefiore Patent Rights or the Cancer Marker Patent Rights, and such infringement
results in commercial loss in value of GHI’s rights under the applicable Patent Rights, Incyte
shall take reasonable steps to enable GHI to sue to terminate the infringement at GHI’s
expense, provided that GHI shall defend, indemnify Incyte and the owner of the Montefiore
Patent Rights, if applicable, against any cross-claims or counterclaims asserted by the
defendant in any such action brought by GHI. If GHI recovers any amounts as a consequence of
the filing of such infringement suits, GHI shall first be entitled to recover its fees for
bringing the action or actions, amounts owed to Incyte’s licensors, if any, shall then be
deducted, and GHI shall pay to Incyte *** percent (***%) of any remaining recovery.

ARTICLE

5

WARRANTIES AND WARRANTY DISCLAIMERS

	5.1  	Each party represents and warrants to the other that:

	 	(a)  	it is a corporation or entity duly organized and validly existing under
the laws of the state or other jurisdiction of incorporation or formation;
	 
	 	(b)  	it has the corporate power and authority and the legal right to enter
into this Agreement and to perform its obligations hereunder;
	 
	 	(c)  	the execution and delivery of this Agreement and the performance by such
Party of the transactions contemplated hereby have been duly authorized by all
necessary action of such party;
	 
	 	(d)  	it has not prior to the Effective Date, nor will it after the Effective
Date, enter into any oral or written agreement or arrangement that would conflict
with its obligations under this Agreement.

	5.2  	Incyte makes no warranty, representation or undertaking:

	 	(a)  	as to the efficacy or usefulness of the Patent Rights or any discovery
or
invention covered thereby;

Page 12

 

	 	(b)  	that any of the Patent Rights are or will be valid or subsisting or (in
the case of applications) will proceed to grant;
	 
	 	(c)  	that the exploitation of the Patent Rights, or the exercise of any rights
licensed hereunder, will not infringe any other intellectual property or other
rights of any other person or entity; or
	 
	 	(d)  	as imposing any obligation on Incyte to bring or prosecute actions or
proceedings against third parties for infringement or to defend any actions or
proceedings for revocation of any of the Patent Rights.

	5.3  	GHI makes no warranty, representation or undertaking:

	 	(a)  	as to the efficacy or usefulness of the Cancer Marker Improvements and
the GHI PRx Improvements (collectively, the “GHI Patent Rights”) or any discovery or
invention covered thereby;
	 
	 	(b)  	that any of the GHI Patent Rights are or will be valid or subsisting or
(in the case of applications) will proceed to grant;
	 
	 	(c)  	that the exploitation of the GHI Patent Rights , or the exercise of any
rights licensed hereunder, will not infringe any other intellectual property or
other rights of any other person or entity; or
	 
	 	(d)  	as imposing any obligation on GHI to bring or prosecute actions or
proceedings against third parties for infringement or to defend any actions or
proceedings for revocation of any of the GHI Patent Rights.

	5.4  	EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, ANY AND ALL RIGHTS LICENSED AND PATENTS MADE
AVAILABLE BY EITHER PARTY TO THE OTHER PARTY ARE LICENSED OR MADE AVAILABLE “AS IS”. NEITHER
PARTY MAKES ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND (OTHER THAN AS SET FORTH IN
PARAGRAPH 5.1). EXCEPT AS EXPRESSLY STATED HEREIN, INCYTE AND GHI DISCLAIM ALL WARRANTIES,
EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTIES OF QUALITY, MERCHANTABILITY, FITNESS FOR
A PARTICULAR PURPOSE. OR NONINFRINGEMENT.

ARTICLE

6

TERM AND TERMINATION

	6.1  	This Agreement and the license granted under hereby shall be effective as of the Effective
Date and unless terminated earlier in accordance with this Article 6 shall continue in force
on a country by country basis until the last to expire of the Patent Rights in such country.
	 
	6.2  	If GHI fails to timely satisfy its payment obligations under this Agreement, or is otherwise
in material breach of this Agreement, and such failure or breach is not

Page 13

 

	   	cured within ninety (90) days after written notice from Incyte specifying the breach,
then Incyte shall have the right in its sole discretion to terminate this Agreement upon
written notice to GHI (without prejudice to any other right or remedy Incyte may have),
provided that such ninety (90) day notice specifies the nature of the breach; and
provided further that GHI may avoid such termination if before the end of such ninety
(90) day period GHI notifies Incyte in writing that such breach or default has been cured
and states the manner of such cure.
	 
	6.3  	On a patent-by-patent basis, GHI shall have the right to terminate this Agreement with
respect to any patent(s) within the Patent Rights for any reason effective immediately;
provided, if GHI terminates this Agreement with respect to a particular patent, all rights
granted to GHI with respect to such patent shall immediately terminate. GHI shall also have
the right to terminate this Agreement in its entirety for any reason, effective immediately.
If GHI terminates the Agreement in it entirety under this Article 6.3, then all rights granted
to GHI shall immediately terminate; however all royalty obligations incurred by GHI prior to
expiration or termination shall survive such termination
	 
	6.4  	No termination of this Agreement, other than a termination by GHI for Incyte’s material
breach, shall in any way affect the licenses granted to Incyte under Section 2.8 or GHI’s
obligations pursuant to Article 3 to pay any amounts accrued prior to such termination of this
Agreement. Furthermore, no termination of this Agreement shall in any way affect either
party’s obligations under Article 7 with respect to any claims that arise from acts or
omissions of such party that occurred prior to the effective date of such termination. In the
event this Agreement is terminated by GHI due to Incyte’s material breach, the licenses and
rights granted by GHI to Incyte under Sections 2.8 shall terminate concurrently.
	 
	6.5  	In the event Incyte materially breaches, the right and license granted by GHI to Incyte
pursuant to Section 2.8, and such breach shall have continued for ninety (90) days after
written notice thereof was provide by GHI to Incyte, GHI shall be entitiled to terminate such
rights and licenses. Any termination shall become effective at the end of such ninety (90)
day period unless Incyte (or any other party on its behalf) has cured any such breach prior to
the expiration of the ninety (90) day period.
	 
	6.5  	Incyte agrees not to enter into amendment of any agreement between Incyte and the owners of
the Montefiore Patent Rights, the Layton Patent Rights or the Stanford Patent Rights that
would result in any lessening of the rights granted to GHI, or greater obligations on GHI,
under this Agreement, without GHI’s prior written consent. In the event that Incyte’s
license(s) under the Layton Patent Rights and/or Stanford Patent Rights terminate, the
assignment restrictions under Section 8.6 shall terminate with respect to the Layton Patent
Rights or Stanford Patent Rights respectively.

Page 14

 

	6.6  	This Agreement shall survive the expiration and any termination of any agreement between
Incyte and its licensor(s), or between such licensor(s) and their licensor(s), and so on, with
respect to the Layton Patent Rights, the Montefiore Patent Rights and/or the Stanford Patent
Rights, to the extent GHI is not in breach of this Agreement, and only to the extent this
Agreement is consistent with the rights and obligation under such agreement between Incyte and
its respective licensor. All obligations of GHI including the obligation to pay royalties
hereunder shall be assigned to Incyte’s licensor(s) in the event of any such termination.
	 
	6.7  	Sublicenses which are validly granted by a party under this Agreement shall survive any
termination, provided that such sublicense(s) are not inconsistent with the terms of this
Agreement and the respective sublicensee(s) is in full compliance with the terms of such
sublicense and the applicable provisions of this Agreement at all times, and the
sublicensee(s) promptly agrees in writing to be bound by the applicable terms of this
Agreement.

ARTICLE

7

INDEMNIFICATION

	7.1  	GHI shall indemnify and hold Incyte harmless from all losses, liabilities, damages and
expenses (including reasonable attorneys’ fees and costs) arising from any claims, demands,
actions or other proceedings by any third party arising out of or relating to (a) any breach
of any representation, warranty or covenant of GHI under this Agreement, or (b) any practice
or use by GHI or its Affiliates of the Patent Rights, except to the extent caused by the
negligence or willful misconduct of Incyte.

	7.2  	Incyte shall indemnify and hold GHI harmless from all losses, liabilities, damages and
expenses (including reasonable attorneys’ fees and costs) arising from any claims, demands,
actions or other proceedings by any third party arising out of or relating to (a) any breach
of any representation, warranty or covenant of Incyte under this Agreement, or (b) any
practice or use by Incyte, its Affiliates or their sublicensees of the rights granted by GHI
to Incyte under Section 2.8, except to the extent caused by the negligence or willful
misconduct of GHI.

	7.3  	A party that intends to claim indemnification (the “Indemnitee”) under this Article 7 shall
promptly notify the other party (the “Indemnitor”) in writing of any claim, complaint, suit,
proceeding or cause of action with respect to which the Indemnitee intends to claim such
indemnification (for purposes of this Section 7.3, each a “Claim”), and the Indemnitor shall
have sole control of the

Page 15

 

	   	defense and/or settlement thereof; provided that the Indemnitee shall have the right to
participate, at its own expense, with counsel of its own choosing in the defense and/or
settlement of such Claim. The indemnification obligations of the Parties under this
Article 7 shall not apply to amounts paid in settlement of any Claim if such settlement
is effected without the consent of the Indemnitor, which consent shall not be withheld or
delayed unreasonably. The failure to deliver written notice to the Indemnitor within a
reasonable time after the commencement of any such Claim, if prejudicial to its ability
to defend such action, shall relieve such Indemnitor of any liability to the Indemnitee
under this Article 7, but the omission so to deliver written notice to the Indemnitor
shall not relieve the Indemnitor of any liability to any Indemnitee otherwise than under
this Article 7. The Indemnitee under this Article 7, and its employees, at the
Indemnitor’s request and expense, shall provide full information and reasonable
assistance to Indemnitor and its legal representatives with respect to such Claims
covered by this indemnification.

ARTICLE

8

MISCELLANEOUS

	8.1  	No failure or delay on the part of either Party to exercise any right or remedy under this
Agreement shall be construed or operate as a waiver thereof, nor shall any single or partial
exercise of any right or remedy preclude the further exercise of such right or remedy.

	8.2  	Neither Party shall act or describe itself as the agent of the other, nor shall it make or
represent that it has authority to make any commitments on the other’s behalf.

	8.3  	Any consent, notice or report required or permitted to be given or made under this Agreement
by one of the parties hereto to the other party shall be in writing, sent to such other party
at its address and fax number indicated below, or to such other address as the addressee shall
have last furnished in writing to the addresser, and shall be effective upon receipt by the
addressee.

	 	 	 	 	 
	

	 	If to Incyte:
	 	FAX Number: 650-845-4500
	

	 	 	 	Incyte Genomics, Inc.
	

	 	 	 	3160 Porter Drive
	

	 	 	 	Palo Alto, California 94303
	

	 	 	 	Attention: Roy Whitfield, CEO
	 
	 	 	 	 
	

	 	with a copy to:
	 	Incyte Genomics, Inc.
	

	 	 	 	3160 Porter Drive
	

	 	 	 	Palo Alto, California 94303
	

	 	 	 	Attention: Lee Bendekgey, General Counsel

Page 16

 

	 	 	 	 	 
	

	 	If to GHI:
	 	FAX number: 650-322-8124
	

	 	 	 	Genomic Health, Inc.
	

	 	 	 	101 University Ave., Suite 220
	

	 	 	 	Palo Alto , CA 94301
	

	 	 	 	Attention: Randy Scott, PhD, Chief Executive Officer
	 
	 	 	 	 
	

	 	with a copy to:
	 	Pillsbury Winthrop, LLP
	

	 	 	 	50 Fremont Street
	

	 	 	 	San Francisco, CA 94105
	

	 	 	 	Attention: Stan Wong, Corporate Counsel

	8.4  	Each party may announce the existence of this Agreement promptly following its execution,
subject to approval by the other party of any such announcement, which approval will not be
unreasonably withheld. Except as contemplated by the last sentence or as may otherwise be
required by law or regulation, neither party shall make any public announcement concerning
this Agreement or the subject matter hereof without the prior consent of the other party. If
this Agreement is determined to be material to the business of Incyte (or GHI) so that its
disclosure is required by law or regulation, GHI (or Incyte) shall have the right to review
and comment on the text of the disclosure prior to its release to the public.
	 
	8.5  	This Agreement, including its Schedules, the Stock Purchase Agreement, the Collaboration and
Technology Transfer Agreement,, and the LifeSeq Collaborative Agreement, all of even date
herewith, sets out the entire agreement between the parties relating to its subject matter and
supersedes all prior oral or written representations, agreements, arrangements or
understandings between them relating to such subject matter.
	 
	8.6  	GHI shall not directly or indirectly assign or otherwise transfer this Agreement, or its
rights or obligations under this Agreement, in whole or in part, whether voluntarily, by
operation of law or otherwise, without the prior written consent of Incyte. Notwithstanding
the foregoing, GHI may assign or transfer this Agreement without such consent to a third party
in connection with a merger, consolidation, reorganization, acquisition or similar transaction
involving all or substantially all of GHI’s voting stock or assets relating to this Agreement;
provided that, if GHI assigns or transfer this Agreement to any third party
that is either a party to litigation with Incyte regarding patent rights or other intellectual
property rights, or has advised Incyte in writing of the existence of patents or other
intellectual property rights controlled by the third party, that such third party suggests
that Incyte should license, then GHI shall not have the right to

Page 17

 

	   	assign or otherwise transfer this Agreement, or any rights or obligations under this
Agreement to such third party (other than with respect to those Products (i) under
development by GHI or GHI’s Affiliate (as evidenced by records of experimental testing of
such Product(s) by GHI or GHI’s Affiliate) prior to such assignment or transfer, (ii)
already commercially sold, or (iii) already licensed to a third party), unless the third
party first grants Incyte either a license or freedom from suit with regard to any
intellectual property controlled by such third party that is the subject of such
litigation or written communication. Any purported assignment or transfer in violation
of this Section 8.6 shall be void. This Agreement shall be binding upon and inure to the
benefit of a party and its permitted assignees.
	 
	8.7  	This Agreement shall be governed by and construed in accordance with the local laws of the
State of California, USA, without ,regard to the conflicts of law principles thereof.
	 
	8.8  	Sections 3.5, 3.6, 3.7, 3.8, 3.9, and 5.4 and Article 8 of this Agreement shall survive
termination of this Agreement for any reason. Sections 3.1, 3.2, 3.3 and 3.4 shall survive
with regard to Net Sales of Products prior to termination of this Agreement. Except as
otherwise expressly provided in Section 6.4 and this Section 8.8, all other rights and
obligations of the parties shall terminate upon termination of this Agreement.

In WITNESS WHEREOF, the parties have executelbd this agreement as of the date first set forth
above.

	 	 	 	 	 
	 	 	GENOMIC HEALTH, INC.
	

	 	Signature:
	 	/s/ Randy Scott
	

	 	 	 	 
	

	 	Print Name:
	 	Randy Scott
	

	 	Title:
	 	CEO
	 
	 	 	 	 
	 	 	INCYTE GENOMICS, INC
	

	 	Signature:
	 	/s/ Lee Bendekgey
	

	 	 	 	 
	

	 	Print Name:
	 	Lee Bendekgey
	

	 	Title:
	 	EVP and General Counsel

Page 18

 

*** Confidential material redacted and filed separately with the Commission.

SCHEDULE A

CANCER MARKER PATENT RIGHTS

(SEE ATTACHED)

***

Page 19

 

*** Confidential material redacted and filed separately with the Commission.

SCHEDULE B

(Payments)

1. GHI and GHI Affiliates

     A. Payments Under Layton Patent Rights

	 	(a)  	one-time, nonrefundable license fee of *** Dollars ($***),
payable within thirty (30) days after the Effective days after the Effective
Date; and
	 
	 	(b)  	royalties on Net Sales of *** percent (***%) for Personalized
Research Product(s) and Homebrew Product(s) and *** percent (***%) for
Diagnostic Product(s), in each case, which Product(s) would, but for the
licenses granted herein, infringe a Valid Claim under the Layton Patent Rights.

     B. Payments Under Stanford Patent Rights

	 	(a)  	a one time, nonrefundable license fee of *** Dollars ($***),
payable within thirty (30) days after the Effective Date; and
	 
	 	(b)  	royalties Net Sales of *** percent (***%) for Personalized
Research Product(s) and Homebrew Product(s) and *** percent (***%) for
Diagnostic Product(s), in each case, which Product(s) would, but for the
licenses granted herein, infringe a Valid Claim under the Stanford Patent
Rights.

     C. Payments under Cancer Marker Patent Rights

	 	(a)  	one-time, nonrefundable license fee of *** Dollars ($***),
payable within thirty (30) days after the Effective Date; and
	 
	 	(b)  	royalties on Net Sales of *** percent (***%) for Personalized
Research Product(s) and Homebrew Product(s) and *** percent (***%) for
Diagnostic Product(s), provided, however, that beginning five (5) years after
the Effective Date, royalties on Net Sales of Personalized Research Product(s),
Homebrew Product(s) and Diagnostic Product(s) shall be payable only in each
case, on account of Product(s) which would, but for the licenses granted
herein, infringe a Valid Claim under the Cancer Marker Patent Rights.

Page 20

 

*** Confidential material redacted and filed separately with the Commission.

	 	(c)  	beginning on the third (3rd) anniversary of the Effective Date,
minimum royalties of *** U.S. Dollars ($***) per year for each year thereafter
during the term of the Agreement to maintain GHI’s licenses under Section 2.3.
	 
	 	(d)  	Minimum royalties paid in any year are creditable only against
royalties due in that year, and may not be credited against royalties due in
subsequent years.

     C. Payments under Montefiore Patent Rights

	 	(a)  	one-time, non-refundable license fee of *** Dollars ($***),
payable within thirty (30) days after the Effective Date

     D. Payments under Database Patent Rights

	 	(a)  	one-time, non-refundable license fee of *** Dollars ($***),
payable within thirty (30) days after the Effective Date
	 
	 	(b)  	royalties on Net Sales of *** percent (***%) for GHI Database
Product(s) which would, but for the licenses granted herein, infringe a Valid
Claim of the Database Patent Rights (the “Database Patent Royalties”).
	 
	 	(c)  	Notwithstanding the foregoing, no royalties are payable on the
use of a GHI Database Product by GHI where such use by GHI involves is within
the Personalized Research Field of Use, Diagnostic Field of Use or the Homebrew
Field of Use.

     E. Payments under Seilhamer/Scott Patent Rights

	 	(a)  	one-time, non-refundable license fee of *** Dollars ($***),
payable within thirty (30) days after the Effective Date.

Page 21

 

*** Confidential material redacted and filed separately with the Commission.

SCHEDULE C

(Payments)

1. Incyte and Incyte Affiliates

     A. Payments under the Cancer Marker Improvements

	 	(a)  	royalties on Net Sales by Incyte and its Affiliates of ***
percent (***%) for Therapeutic Product(s) and Diagnostic Product(s), in each
case, which Product(s) would, but for the licenses granted herein, infringe a
Valid Claim under the Cancer Marker Improvements; and/or
	 
	 	(b)  	*** percent (***%) of any license fees or royalties received by
Incyte from sublicensing such Valid Claims under the Cancer Marker Improvements
for use in connection with the manufacture, use or sale of Therapeutic Products
or Diagnostic Products.

     B. Payments under GHI Prx Improvements

	 	(a)  	royalties on Net Sales by Incyte and its Affiliates of ***
percent (***%) for Incyte Research Product(s), which Product(s) would, but for
the licenses granted herein, infringe a Valid Claim under the GHI PRx
Improvements.

Page 22

 

*** Confidential material redacted and filed separately with the Commission.

SCHEDULE D

DATABASE PATENT RIGHTS

***

Page 23exv10w6w2

 

Exhibit 10.6.2

*** Confidential Treatment Requested. Confidential portions of this document have been redacted

and have been separately filed with the Commission.

AMENDMENT TO THE PATENT LICENSE AGREEMENT

This Amendment to the Patent License Agreement (the “License Amendment”) effective as of December
21, 2001 (the “Amendment Effective Date”), is entered into by and between Incyte Genomics, Inc., a
Delaware corporation, with a place of business at 3160 Porter Drive, Palo Alto, CA 94304 (“Incyte”)
and Genomic Health, Inc., a Delaware corporation, with a place of business at 301 Penobscot Drive,
Redwood City, CA 94063 (“GHI”).

A. WHEREAS, the parties to this License Amendment entered into that certain “Patent License
Agreement” executed on March 30, 2001 by Incyte and GHI (the “Agreement”), pursuant to which Incyte
granted certain licenses to GHI in certain fields therein.

B. WHEREAS, the parties wish to enter into an amendment to the Agreement in order to amend certain
definitions defined, and rights granted, therein.

NOW THEREFORE, for and in consideration of the covenants, conditions, and undertakings hereinafter
set forth it is agree by and between the Parties as follows:

	1.  	All capitalized terms not defined in this License Amendment shall have the meanings given to
them in the Agreement.
	 
	2.  	Section 1.3 is amended in the first part of the first sentence to read as follows:
	 
	   	“Cancer Marker Patent Rights”: shall mean all Valid Claims listed in any of the
following patents and patent applications...
	 
	3.  	Section 1.14 is amended in its entirety to read as follows:
	 
	   	“Internal Research Field of Use”: shall mean (a) internal research, development,
manufacture, use, importation and/or sale of Internal Research Products; and (b) internal
research and development purposes (including without limitation, drug discovery, development,
and regulatory filings), including the development of databases and other products and tools
marketed for use in internal research and development purposes, including without limitation,
drug discovery, development, and regulatory filings. The Internal Research Field of Use
excludes the Diagnostic Field of Use, the Homebrew Field of Use, and the Personalized Research
Field of Use.
	 
	4.  	Section 1.15 is amended in its entirety to read as follows:
	 
	   	“Internal Research Product(s)”: shall mean internal research and development purposes
(including without limitation, drug discovery, development and regulatory filings), including
the development of databases and other products and tools marketed for use in internal
research and development purposes, including without limitation, drug discovery, development
and regulatory filings. Internal Research Product(s) exclude Diagnostic Product(s), Homebrew
Product(s) and Personalized Research Product(s).

 

 

	5.  	Section 2.8 is amended in its entirety to read as follows:

2.8 Grantbacks.

	   	2.8.1 Cancer Marker Improvement Patents. GHI hereby grants to Incyte, and
Incyte hereby accepts, an exclusive (except with respect to subsection (iii) below, for which
the grant shall be nonexclusive), royalty bearing, non-transferable, sublicensable, worldwide
license under GHI patent rights owned and Controlled by GHI, with respect to any discoveries
(to the extent such discoveries relate to the composition of matter or use of any nucleic
acids or proteins claimed in the Cancer Marker Patent Rights) made by GHI in connection with
GHI’s use of Valid Claims within the Cancer Marker Patent Rights (the “Cancer Marker
Improvements”) for use by Incyte and Incyte’s sublicensees in the (i) Internal Research Field
of Use, (ii) in connection with the manufacture, use and sale of vaccines and therapeutic
products (each therapeutic product a “Therapeutic Product”), and (iii) on a Diagnostic
Product-by-Diagnostic Product basis, to manufacture, use and sell a Diagnostic Product that
tests for the same disease, state or condition as the Therapeutic Product under (ii) above.
	 
	   	2.8.2 GHI PRx Improvement Patents. GHI hereby grants to Incyte, and Incyte
hereby accepts, a non-exclusive, royalty-bearing, non-transferable, non-sublicensable,
worldwide license under GHI PRx Improvement Patents owned and Controlled by GHI to practice
and use the inventions claimed therein in the Internal Research Field of Use.
	 
	   	For purposes of this Section 2.8.2:
	 
	   	“GHI PRx Improvement Patents” shall mean, with respect to Personalized Research Products made
by GHI under this Agreement or the LifeSeq Collaborative Agreement and claimed within an
issued patent, those Personalized Research Products for which the practice or use thereof
would, but for a license granted by Incyte to GHI under this Agreement or the LifeSeq
Collaborative Agreement, infringe the patent rights granted by Incyte to GHI under this
Agreement or the LifeSeq Collaborative Agreement; and
	 
	   	“LifeSeq Collaborative Agreement” shall mean that certain license agreement titled the
“LifeSeq Collaborative Agreement” by and between Incyte and GHI of even date March 30, 2001,
including any amendments thereto.
	 
	6.  	Schedule B section 1.C.(b) “Payments Under Cancer Marker Patent Rights” is amended in its
entirety to read as follows:

2 of 3

 

 

*** Confidential material redacted and filed separately with the Commission.

(b) royalties on Net Sales of *** percent (***%) for Personalized Research Product(s) and
Homebrew Product(s) and *** percent (***%) for Diagnostic Product(s), which Product(s) would,
but for the licenses granted herein, infringe a Valid Claim under the Cancer Marker Patent
Rights.

	7.  	Except as specifically modified or amended hereby, the Agreement shall remain in full force
and effect and, as modified or amended, is hereby ratified, confirmed and approved. No
provision of this License Amendment may be modified or amended except expressly in a writing
signed by both parties nor shall any terms be waived except expressly in a writing signed by
the party charged therewith. This License Amendment shall be governed in accordance with the
laws of the State of California, without regard to principles of conflicts of laws.

IN WITNESS WHEREOF, each of the parties has executed this License Amendment as of the Amendment
Effective Date.

	 	 	 	 	 	 	 	 
	INCYTE GENOMICS, INC.	 	GENOMIC HEALTH, INC.
	 
	 	 	 	 	 	 
	By:

	 	/s/ Lee Bendekgey
	 	By:
	 	/s/ Randy Scott
	

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Name:

	 	Lee Bendekgey
	 	Name:
	 	Randy Scott
	

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Title:

	 	EVP & General Counsel
	 	Title:
	 	CEO

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