Document:

peregrine_8k-ex1022.htm

    
      

    

    Exhibit 10.22

    
COMMERCIAL
LICENSE AGREEMENT

     

    THIS
COMMERCIAL LICENSE AGREEMENT (this "Agreement") is
entered into as of the 1st day of December, 2003 by and between Avanir
Pharmaceuticals, a California corporation ("Avanir"), and Peregrine
Pharmaceuticals, Inc., a Delaware corporation ("Peregrine").

     

    RECITALS

     

    WHEREAS, Avanir, through its
wholly-owned subsidiary Xenerex Biosciences ("Xenerex"), has certain expertise
and technology relating to the creation of chimeric antibodies;

     

    WHEREAS, Peregrine and Xenerex
have entered into a collaborative arrangement (the "Collaboration") as
evidenced by a Materials Transfer and Antibody Generation Agreement With
Commercial Option, made effective as of October 28, 2002 ("Materials Transfer
Agreement");

     

    WHEREAS, the Materials
Transfer Agreement was directed to a Project (as defined therein) pursuant to
which Xenerex, using Xenerex's proprietary antibody technology and know how,
created a chimeric antibody by combining the marine variable regions of the 3G4
antibody with a fully-human constant region identified by Xenerex, and Xenerex
then transferred the completed chimeric antibody and the chimeric antibody
producing cell line to Peregrine;

     

    WHEREAS, pursuant to the
Materials Transfer Agreement, (a) the chimeric antibody and the chimeric
antibody producing cell line created by Xenerex pursuant to the Project are
jointly-owned by both Peregrine and Xenerex until final ownership rights are
determined in a definitive commercial agreement, (b) Xenerex granted to
Peregrine the option to acquire an exclusive worldwide license to such chimeric
antibody and cell line; and (c) Xenerex and Peregrine agreed to act in good
faith and use commercially reasonable efforts to execute a final license
agreement; and

     

    WHEREAS, Peregrine and Avanir
(on behalf of Xenerex) are entering into this Agreement the licenses granted
herein;

     

    NOW, THEREFORE, in
consideration of the foregoing and the covenants and promises contained in this
Agreement, the parties agree as follows:

     

    ARTICLE
1.

     

    DEFINITIONS

     

    As used
in this Agreement, any capitalized terms not defined in this Agreement will have
the meanings set forth for such terms in the Material Transfer Agreement, and
the following terms will have the following meanings:

     

    1.1.   "Affiliate" means any company
or entity controlled by, controlling, or under common control with a party to
this Agreement and will include without limitation any company fifty percent
(50%) or more of whose voting stock or participating profit interest is owned or
controlled, directly or indirectly, by a party, and any company which owns or
controls, directly or indirectly, fifty percent (50%) or more of the voting
stock of a party.

     

     

    
      
        
        

      

      
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    1.2.   "Antibody" means the
chimeric antibody and the chimeric antibody producing cell line created
by Xenerex, pursuant to the Project and fragments, or direct or indirect
derivatives or mimetics or chimeric constructs thereof, and samples of
biochemical, biological, clonal, or synthetic chemical materials or sequence
data relating thereto and regardless of whether such chimeric antibodies or cell
lines were subsequently modified by Peregrine, Peregrine's Affiliate or any
Third Party.

     

    1.3.   "Biologies License
Application" or "BLA" means an application filed with the FDA, as
defined
in the United States Food, Drug & Cosmetics Act and the regulations
promulgated thereunder and any corresponding U.S. or equivalent foreign
application, registration or certification.

     

    1.4.   "Cost" means all labor, material and
overhead costs incurred in connection with the procurement,
manufacture (if applicable) and testing as determined in accordance with
generally accepted accounting principles.

     

    1.5.   "FDA" means the
United States Food and Drug Administration and other governmental agencies
around the world charged with responsibility for approving the sale of drugs,
biologics, or diagnostics.

     

    1.6.   "First Commercial
Sale" means, in any country, the first commercial sale, where sale
means
delivery, billing out or invoicing, whichever comes first, of a Licensed Product
by Peregrine, its Affiliates or sublicensees to any person or entity other than
Peregrine, its Affiliates or sublicensees following Regulatory Approval in the
country in which the sale is to be made.

     

    1.7.   "Licensed Products"
means all products incorporating the Antibody.

     

    1.8.   "Net Revenues" means
(a) the worldwide gross amount received by Peregrine or its Affiliates
for sales of the Licensed Products (whether in the form of royalties or sales
revenues) and fees for services utilizing the Antibody, less (b) transportation
charges, commissions, prompt payment discounts, credits allowed for defective or
returned goods actually paid or allowed, insurance and sales and other taxes
based on sales prices when included in gross sales, but not including taxes
assessed on income derived from such sales. However, in the ease of a
disposition of Licensed Products to an Affiliate where there is no subsequent
sale to a Third Party, Net Revenues will be the sales price of such items
generally available to unaffiliated Third Parties making similar quantity
commitments.

     

    In the
event that Licensed Products are sold in the form of a combination product
containing one or more active ingredients other than Licensed Products, Net
Revenues for such combination products shall be calculated by multiplying actual
Net Revenues of the combination product by the fraction A/(A+B) where A is the
invoice price of the Licensed Product if sold separately and B is the total
invoice price of any other active component or components in the combination if
sold separately by Peregrine or its Affiliates or sublicensees; provided,
however that the resulting value of such Net Revenues of combination products
shall not be less than 50% of the value of the Net Revenues of the Licensed
Products had they been sold separately. If, on a country-by-country basis, the
Licensed Products and other active component or components in the combination
are not sold separately in any country by Peregrine or its Affiliates or
sublicensees, Net Revenues for purposes of determining royalties on the
combination product shall be calculated by multiplying actual Net Revenues of
such combination product by the fraction C/(C+D) where C is Peregrine's or its
Affiliates' or sublicensees' total actual cost of the Licensed Product and D is
the total actual cost of the other active
ingredient(s) included in the combination product at such point; provided,
however that the resulting value of such Net Revenues of combination products
shall not be less than 50% of the value of the actual cost of the Licensed
Products.

     

    
      
        
        

      

      
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    1.9.   "Phase III Clinical
Trial" means a clinical trial, in any country, involving patients with
the
disease or condition of interest, designed to obtain sufficient efficacy and
safety data to support product registration in the country in which the testing
is completed.

     

    1.10.   "Regulatory Approval"
means final regulatory approval required to market a Licensed Product for a
disease or condition in accordance with the applicable laws and regulations of a
given country.

     

    1.11.   "Third Party" means
any person or entity other than Peregrine, Avanir and their respective
Affiliates.

     

    ARTICLE
2.

     

    LICENSE
GRANT

     

    2.1.           GRANT BY AVANIR TO PEREGRINE.
Subject to the terms of this Agreement, Avanir hereby grants to Peregrine an
exclusive, worldwide royalty-bearing license under any and all patents,
copyrights, trademarks, trade secrets, know-how and other intellectual property
and other proprietary rights Avanir has or may have in and to the Antibody to
manufacture, have manufactured, use, sell, offer to sell and import Licensed
Products. In connection with the foregoing, Avanir agrees to provide to
Peregrine data it has directly relating to the Antibody or the Project, as set
forth in Exhibit A attached hereto, provided, however, that Avanir does not
agree to provide any information about Avanir's proprietary antibody generation
technology and know-how included therein or to undertake any efforts to create,
discover or acquire any new information or data not already in its possession
and control.

     

    2.2.           SUBLICENSING. Peregrine will
have the right to grant sublicenses of the license rights
provided in Section
2.1 to Affiliates and to Third Parties who are capable of fulfilling the
development or commercialization responsibilities of Peregrine as set forth in
Section 2.3,
subject to Avanir's prior consent, such consent not to be unreasonably withheld
or delayed. Each such sublicense will be consistent with the terms of this
Agreement and will provide for the termination or direct assumption of each such
sublicense at Avanir's option upon the termination of this Agreement. Peregrine
will furnish Avanir a copy of each sublicense agreement with a Third Party. In
considering whether or not to terminate or assume any sublicense Avanir will
give due consideration to the terms of the sublicense, the past performance
under the sublicense agreement and any other commercially significant
consideration which Avanir considers, in the exercise of its reasonable
judgment, to be relevant. Except as specifically provided above, Peregrine will
have no rights to sublicense all or any part of the license granted to Peregrine
pursuant to this Agreement. Any transfer or extension of rights under the
license granted under this Agreement, in whole or in part, by Peregrine to any
Third Party will be deemed and considered to be a sublicense under this Section 2.2, even if
not so designated in the relevant legal documents. Peregrine shall make all
payments due to Avanir by reason of any Net Revenues by any such sublicensee and
shall ensure each sublicensee's compliance with all terms of this Agreement
applicable to Peregrine (including all terms of this Agreement identified as
applicable to sublicensees), and Peregrine will cause any such sublicensee to
agree in writing (i) to keep accurate books and records and permit Avanir to
review the information concerning such books and records in accordance with the
terms of this Agreement and (ii) to comply with all other terms of this
Agreement applicable to Peregrine (including all terms of this Agreement
identified as applicable to sublicensees).

     

    
      
        
        

      

      
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    2.3.   DUE DILIGENCE. Peregrine will use
commercially reasonable efforts consistent with prudent
business judgment to develop, manufacture, market and sell the Licensed
Products. Peregrine will promptly give Avanir notice if Peregrine intends to
abandon permanently the commercial development of Licensed Products whereupon
any license will automatically and immediately terminate.

     

    2.4.   OBLIGATION TO INFORM. Peregrine will keep Avanir
reasonably informed in a timely manner as to the progress of the development and
commercialization of Licensed Products Peregrine determines, from time to time,
to pursue; and beginning on July 1, 2004, Peregrine will annually provide Avanir
with a written report summarizing Peregrine's activities related to development
of Licensed. Products and status of clinical trials and government approvals
necessary for marketing Licensed Products, provided that Peregrine shall not be
obligated to provide such a report more than once in any 12 month period. All
such reports will be the Confidential Information of Peregrine.

     

    2.5.   CARE AND USE OF MATERIALS; COMPLIANCE
WITH LAWS. Each
party acknowledges that the materials to be used and generated under this
Agreement are experimental in nature and may have unknown characteristics and
therefore will use prudence and reasonable care in the use, handling, storage,
transportation, disposition and containment of any such materials and will use,
handle, store, transport, dispose of and contain such materials in compliance
with all applicable laws.

     

    ARTICLE
3.

     

    COMMERCIAL
TERMS

    
       

      3.1.   LICENSE FEE. Upon execution of this
Agreement, Peregrine will pay to Avanir a non-refundable license fee of
[***].

       

      3.2.   ROYALTIES. In consideration for the
license granted under Section 2.1, and
without regard to whether Avanir or X.enerex has any patent covering the
Antibody, Peregrine will pay to Avanir within 45 days after the end of each
calendar quarter royalties equal to (a) [***] of Net Revenues or, (b) [***] of
Peregrine's Net Revenues that are paid to Peregrine by non-Affiliate
sublicensees in the event that Peregrine sublicenses its rights hereunder
pursuant to Section
2.2 above to a Third Party.

       

      3.3.   ROYALTY TERM. The royalties payable under
Section 3.2
will be paid until ten years from First Commercial Sale of a Licensed Product,
as determined on a country-by-country basis.

       

       

      
        [***] The
following portion has been omitted pursuant to a Confidential Treatment Request
under Rule 24b-2 of the Securities Exchange Act of 1934 and has been filed
separately with the Securities and Exchange Commission.

      

       

      
        
          
          

        

        
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      3.4.   MILESTONE PAYMENTS. Avanir
will be entitled to receive and Peregrine will be obligated to pay additional
amounts based upon the achievement of certain milestones (regardless of whether
such milestone is achieved by Peregrine or any of its sublicensees) for Licensed
Products as follows:

    

     

    (a)       [***]
upon treatment of the first patient in Phase 111 Clinical Trials in any country
for the first Licensed Product; and

     

    (b)       [***]
upon the first Regulatory Approval of a BLA in any country for the first
Licensed Product.

     

    ARTICLE
4.

     

    PAYMENTS;
RECORDS; AUDIT

     

    4.1.   PAYMENTS. All amounts payable
to Avanir under this Agreement will be paid in U.S.
Dollars no later than 45 days after the date upon which such amount becomes
owed. Each payment of royalties will be accompanied by a statement of the amount
of Net Revenues during such period, and all other information necessary to
determine the appropriate amount of such payments. Peregrine will be liable for
interest on any overdue payments equal to the annual prime rate listed at such
time in the Wall Street Journal plus 3% or the maximum annual rate allowable by
law, whichever is lower, commencing 30 days after the date such payments become
owed, until paid.

     

    4.2.           REPORTS Peregrine will make
written reports and royalty payments to Avanir within. 45 days after the close
of the calendar quarter to which they relate, beginning with the calendar
quarter in which the date of First Commercial Sale of a Licensed Product occurs.
These reports will show on a consolidated basis in reasonably specific detail
for each Licensed Product, (i) the Net Revenues during the corresponding
calendar quarter and the calculation of payments due to Avanir from such Net
Revenues; (ii) the royalties payable in US dollars, if any, which will have
accrued hereunder based upon Net Revenues of Licensed Products; (iii) the
withholding taxes, if any, required by law to be deducted in respect of such
royalties; (iv) the dates of the First Commercial Sale of each Licensed Product
in each country if it has occurred during the corresponding calendar quarter;
(e) the exchange rates used in determining the royalty amount expressed in. US
dollars. Concurrently with the making of each such report, Peregrine will make
any payment due to Avanir of royalties for the period covered by such
report.

     

    4.3.           EXCHANGE RATE. The rate of
exchange to be used in computing the amount of currency
equivalent in United States Dollars due Avanir will be made at the period-end
rate of exchange published for the last business day of the royalty period by
the United States edition of The Wall Street Journal.

     

     

    [***]
The following portion has been omitted pursuant to a Confidential Treatment
Request under Rule 24b-2 of the Securities Exchange Act of 1934 and has been
filed separately with the Securities and Exchange Commission.

     

    
      
        
        

      

      
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    4.4.           RECORDS AND AUDIT. During the term of this
Agreement and for a period of three years
thereafter, Peregrine will keep complete and accurate records pertaining to the
sale or other disposition
of the Licensed Products commercialized by it, in sufficient detail to permit
Avanir to confirm
the accuracy of all payments due hereunder. Avanir will have the right to cause
an independent
accounting firm of national standing to audit such records to confirm Net
Revenues and royalty payments made by Peregrine to Avanir hereunder; provided, however, that such
auditor will not disclose Peregrine's Confidential Information to Avanir, except
to the extent such disclosure is necessary to verify the amount of royalty
payments due under this Agreement. Such audits may be exercised no more than
once per year, within three years after the royalty period to which such records
relate, upon reasonable advance notice to Peregrine and during normal business
hours. Avanir will hear the full cost of such audit unless such audit discloses
an underpayment of more than 5% from the amount of payments due to Avanir for
such year ("Audit Difference Period"). In such case, Peregrine will bear the
full cost of such audit pertaining to the Audit Difference Period in addition to
paying any identified underpayment. In the event such audit reveals an
overpayment by Peregrine, the amount of such overpayment shall, at Peregrine's
option, be refunded to Peregrine or credited to royalties due and payable by
Peregrine to Avanir for the subsequent calendar quarter. The terms of this Section 4.4 will
survive any termination or expiration of this Agreement for a period of two
years.

     

    4.5.           NON-MONETARY CONSIDERATION. In
the event Peregrine or its Affiliates receives
any non-monetary consideration in lieu of royalties payable in cash in
connection with the Licensed Products, Peregrine's royalty obligations to Avanir
under Article 3
will be based on the monetary value of such other consideration. In such case,
Peregrine will disclose the terms of such arrangement to Avanir and the parties
will endeavor in good faith to agree on such monetary value. In the event that
the parties do not so agree, the parties will submit the matter to an
independent accounting firm of national standing to determine such value. The
cost of such determination will be borne equally by the parties.

     

    ARTICLE
5.

     

    OWNERSHIP;
PATENTS

     

    5.1.           OWNERSHIP. Except as may be
expressly set forth in this Agreement, the ownership of
intellectual property as between the parties to this Agreement will be as set
forth in the Material. Transfer Agreement.

     

    5.2.           PATENT PROSECUTION. Peregrine
will have sole right and responsibility for preparing,
filing, prosecuting and maintaining patents and patent applications worldwide
relating to the Licensed Products and conducting any interferences,
reexaminations, or requesting reissues or patent term extensions with respect
thereto, in each case in its name and sole discretion and at Peregrine's
expense. Peregrine will keep Avanir reasonably informed as to the status of such
patent matters and will provide Avanir copies of any documents received by
Peregrine from such patent offices including notice of all interferences,
reexaminations, oppositions or requests for patent term extensions. Avanir will
cooperate with and assist Peregrine in connection with such activities, at
Peregrine's request and expense. Peregrine may also determine whether to file
any patents covering the Antibody, in its name and sole discretion and at
Peregrine's expense. Avanir will cooperate with and assist Peregrine in
connection with such activities, at Peregrine's request and expense. In the
event that Peregrine determines not to file any patent applications for the
Antibody, Peregrine will notify Avanir of such fact no later than six months
before the deadline to file such patent application, and Avanir will have the
right to prepare, file, prosecute and maintain patents and patent applications
worldwide relating to the Antibody and conduct any interferences,
reexaminations, or request reissues or patent term extensions
with respect thereto. Peregrine will cooperate with and assist Avanir in
connection with such activities, at Avanir's request and expense.

     

    
      
        
        

      

      
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    5.3.           INFRINGEMENT OF THIRD PARTY PATENT
RIGHTS.

     

    (a)        Joint Strategy. In the event
that the manufacture, use or sale of the Licensed Products becomes the subject
of a claim of infringement of a patent, copyright or other proprietary right
anywhere in the world, and without regard to which party is charged with said
infringement, and the venue of such claim, the parties will promptly confer to
discuss the claim.

     

    (b)          Defense. Unless the parties
otherwise agree, Peregrine will assume the responsibility
for the conduct of the defense of any such claim. In any event, Avanir will have
the right, but not the obligation, to participate in any such suit at its sole
option and at its own expense. Each party will reasonably cooperate with the
party conducting the defense of the claim including, if required to conduct such
defense, furnishing a power of attorney. Neither party will enter into any
agreement, license or settlement that affects the other party's rights or
interests without such other party's written consent, which consent will not be
unreasonably withheld.

     

    ARTICLE
6.

     

    CONFIDENTIALITY

     

    6.1.           CONFIDENTIALITY. Except to the
extent expressly authorized by this Agreement or otherwise agreed in writing by
the parties, each party agrees that, for the won of this Agreement and for five
years thereafter, the confidentiality obligations of Section 4 of the Material
Transfer Agreement will apply and govern the parties' use of Confidential
Information (as defined in the Materials Transfer Agreement) as if such Section
was fully set forth herein.

     

    6.2.           EMPLOYEES; AGENTS. Each party
will ensure that each of its employees, consultants,
other agents, Affiliates and sublicensees who have access to Confidential
Information is bound in writing to obligations of confidentiality and non-use at
least equivalent in scope to those set forth in Sections 6.1 and 6.2 of the
Materials Transfer Agreement.

     

    6.3.           PUBLICITY. Any disclosures of
the teens of this Agreement will be consistent with the
disclosure in the press release. Except as expressly provided in this Agreement,
neither party may disclose the existence or tei His of this Agreement without
the prior written consent of the other party; provided, however, that either
party may make such disclosure to the extent required by law and that either
party may make a disclosure of the existence and terms of this Agreement to its
attorneys, advisors, investors, prospective investors, lenders and other
financing sources, and to strategic partners or licensees for the Licensed
Products under circumstances that reasonably ensure the confidentiality
thereof.

     

     

    
      
        
        

      

      
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    ARTICLE
7.

     

    REPRESENTATIONS AND
WARRANTIES

     

    7.1.           REPRESENTATIONS AND WARRANTIES OF
AVANIR.

     

    (a)        Corporate Power. Avanir is
duly organized and validly existing under the laws of California and has full
corporate power and authority to enter into this Agreement on behalf of itself
and on behalf of Xenerex, and to carry out its obligations under this
Agreement.

     

    (b)        Due Authorization. Avanir is
duly authorized to execute and deliver this Agreement and to perform its
obligations hereunder. The person executing this Agreement on Avanir's behalf
has been duly authorized to do so by alt requisite corporate
action.

     

    (c)        Binding Agreement. This
Agreement is a legal and valid obligation binding upon Avanir and enforceable in
accordance with its terms. The execution, delivery and performance of this
Agreement by Avanir does not conflict with any agreement, instrument or
understanding, oral or written, to which it is a party or by which it may be
bound, nor violate any material law or regulation of any court, governmental
body or administrative or other agency having jurisdiction over it.

     

    (d)        Grant of Rights. Avanir has
not, and will not during the term of this Agreement, grant any right to any
Third Party which would conflict with the rights granted to Peregrine
hereunder.

     

    7.2.           REPRESENTATIONS AND WARRANTIES OF
PEREGRINE.

     

    (a)       Corporate Power. Peregrine is
duly organized and validly existing under the laws of Delaware and has full
corporate power and authority to enter into this Agreement and to carry out the
provisions of this Agreement.

     

    (b)       Due Authorization. Peregrine
is duly authorized to execute and deliver this Agreement and to perform its
obligations hereunder. The person executing this Agreement on Peregrine behalf
has been duly authorized to do so by all requisite corporation
action.

     

    (c)       Binding Agreement. This
Agreement is a legal and valid obligation binding upon Peregrine and enforceable
in accordance with its terms. The execution, delivery and performance of this
Agreement by Peregrine does not conflict with any agreement, instrument or
understanding, oral or written, to which it is a party or by which it may be
bound, nor violate any material law or regulation of any court, governmental
body or administrative or other agency having jurisdiction over it.

     

    7.3.           DISCLAIMER AND LIMITATION OF
LIABILITY. THE ANTIBODY IS PROVIDED AS IS AND AVANIR EXPRESSLY DISCLAIMS
ANY AND ALL WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING WITHOUT
LIMITATION THE WARRANTIES OF DESIGN, MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, NONINFRINGEMENT OF THE INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES OR
ARISING FROM A COURSE OF DEALING, USAGE OR TRADE PRACTICES, IN ALL CASES WITH
RESPECT THERETO. NEITHER PEREGRINE NOR AVANIR WILL BE LIABLE WITH RESPECT TO ANY
SUBJECT MATTER OF THIS AGREEMENT UNDER ANY CONTRACT, NEGLIGENCE, STRICT
LIABILITY OR OTHER THEORY FOR COST OF PROCUREMENT OF SUBSTITUTE GOODS, SERVICES,
TECHNOLOGY OR RIGHTS OR FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES. EXCEPT FOR
BREACHES OF ITS CONFIDENTIALITY OBLIGATIONS SET FORTH IN ARTICLE 6 ABOVE
NEITHER AVANIR OR XENEREX WILL BE LIABLE FOR ANY AMOUNTS AGGREGATING IN EXCESS
OF ONE HALF OF THE AMOUNTS PAID TO IT HEREUNDER.

     

    
      
        
        

      

      
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ARTICLE
8.

     

    INDEMNIFICATION

     

    8.1.          INDEMNIFICATION. Peregrine
hereby agrees to save, defend and hold Avanir and its Affiliates, officers,
directors, agents and employees (collectively, "Avanir Indemnities") harmless
from and against any and all third party claims, suits, actions, demands,
liabilities, expenses and/or losses, including reasonable legal expenses and
attorneys' fees (collectively, "Claims") resulting from the development,
clinical study, manufacturing, testing, use, handling, storage, or sale of the
Licensed Products by Peregrine and its Affiliates and sublicensees or directly
or indirectly from actions by Peregrine in connection with this Agreement. The
parties hereby agree that the risk of toxicity, immunogenicity, teratogenicity
or other "drug risk" associated with the Licensed Products will be with and for
the account of Peregrine and will be included under the foregoing
indemnification of Avanir by Peregrine.

     

    8.2.          CONTROL OF DEFENSE. Avanir
will give notice to Peregrine of any Claims that may be subject to
indemnification within 30 days, after learning of such Claim, and Peregrine will
have the exclusive right to assume the defense of such Claims with counsel of
its choosing. If such defense is assumed by Peregrine with counsel so selected,
Peregrine will not be obligated to pay the fees and expenses of any separate
counsel retained by Avanir with respect to such Claims, unless representation
presents a conflict due to actual or potential differing interests between
Avanir and any other party represented by such counsel in such proceeding, and
will have the right to settle such Claim on such terms and conditions it deems
advisable; provided, however,
that Peregrine will obtain Avanir's consent to any settlement which
requires payment or other action by Avanir or is likely to have a material
adverse effect on Avanir's business. The obligation of Peregrine stated in.
Section 8.1
above will apply only if Avanir notifies Peregrine in writing within 30 days
following receipt of written notice of any Claim brought against Avanir in
respect of which Avanir intends to invoke the provisions of Section
8.1.

     

    ARTICLE
9.

     

    TERM;
TERMINATION

     

    9.1.   TERM. Except as otherwise
provided in this Article 9, (a) the
term of license set forth in Sections 2.1 and
2.2 with
respect to Licensed Products will commence upon the date of this Agreement first
set forth above and will expire on the expiration date of the last to expire
royalty obligation, and (b) upon such expiration of this Agreement, Peregrine
will have an irrevocable, fully paid, royalty free, nonexclusive license to use
the Antibody for any purpose whatsoever.

     

    9.2.   TERMINATION FOR CONVENIENCE.
Peregrine will have the right to terminate this
Agreement at any time upon 30 day's written notice to Avanir.

     

    9.3.   TERMINATION FOR BANKRUPTCY.
Either party may terminate this Agreement by notice
in writing to the other party if the other party becomes insolvent, suspends
business, makes a general assignment for the benefit of creditors, suffers
execution to be levied against it or is subject to or takes or attempts to take
the benefit of any law for the release of the bankrupt or insolvent, whether
voluntarily or otherwise, and such proceedings are not dismissed within 90 days
of the commencement of any
such proceeding. The party with respect to which the event referred to in this
Section 9.3 has occurred will immediately notify the other party in writing of
the occurrence of such event. The parties acknowledge that all licenses granted
hereunder are and shall be deemed to be, for the purposes of Section 365(n) of
the United States Bankruptcy Code, as amended (the "Code"), licenses of rights
to intellectual property as defined under Section 101 of the Code. Each party
hereby agrees that the Antibody and all intellectual property rights thereto
shall and do hereby constitute "intellectual property" as such term is defined
and used for all purposes as set forth at 11 U.S.C. §101(35A). The parties
further agree that Peregrine, as licensee of such rights under this Agreement,
shall retain and may fully exercise all of its rights and elections under the
Code.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    9.4.   EFFECT OF TERMINATION; ACCRUED
RIGHTS; SURVIVING OBLIGATIONS.

     

    (a)           Upon
termination of this Agreement for any reason under the terms and conditions
hereof: (i) the licenses granted hereunder will immediately terminate, (ii)
Peregrine will discontinue its use of the Antibody, and destroy any and all
materials comprising the Antibody (including any DNA sequences encoding such
Antibody) in its possession, and (iii) upon the consent of Avanir and a given
sublicensee, each such sublicensee of Peregrine hereunder will become a licensee
of Avanir; provided that Peregrine and its Affiliates will retain the right to
sell Licensed Products existing on the date of such termination, which sales
will be subject to the royalty payment provisions set forth herein.

     

    (b)           Termination
of this Agreement for any reason under the terms and conditions of this
Agreement will not affect obligations of either party incurred prior to
termination or the right of either party to recover damages from any breach
thereof or affect Peregrine's obligations to pay to Avanir any royalties that
have accrued as of the date of such termination.

     

    (c)           In
the event Avanir terminates the licenses granted under this Agreement for
non­payment of royalties by Peregrine, all amounts then owing by Peregrine
will immediately become due and payable.

     

    (d)           Upon
termination of this Agreement by either party under the terms and conditions of
this Agreement, neither party will incur any liability whatsoever for any
damage, loss or expenses of any kind suffered or incurred by the other arising
from or incident to any termination of this Agreement (or any part thereof) by
such party which complies with the terms of the Agreement whether or not such
party is aware of any such damage, loss or expenses.

     

    (e)           Termination
is not the sole remedy under this Agreement and, whether or not termination is
effected; all other remedies will remain available.

     

    (f)           Upon
termination of this Agreement for any reason under the terms and conditions of
this Agreement, Avanir, may in its sole discretion, terminate any or all
licenses or sublicenses granted by Avanir to Peregrine pursuant to this
Agreement, together with any sublicenses by Peregrine hereunder.

     

    (g)           If
this Agreement terminates any time after royalties on Licensed Products are
payable, Peregrine will make a written report to Avanir, for each Licensed
Product, within 90 days after the date on which Peregrine, its Affiliates or
sublicensees last sell such Licensed Products stating in such report
the same
information required by yearly reports for all such Licensed Products made, sold
or otherwise disposed of which were not previously reported to
Avanir.

     

    The terms
of Sections 4.4, 5.1.
and 5.2 and Articles 6, 7, 8, 9,
10 and 11 will survive termination of this Agreement for as long as necessary to
permit their full discharge. Promptly after termination of this Agreement each
party will return or dispose of any know-how of the other in the accordance with
the instructions of the other, including without limitation any compounds,
assays or other biological or chemical materials.

     

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    ARTICLE
10.

     

    GOVERNING
LAW; DISPUTE RESOLUTION

     

    10.1.           GOVERNING LAW. This Agreement
will be governed by and construed in accordance with the laws of the State of
California, applicable to contracts entered into, and wholly to be performed
within the State of California (regardless of the choice of law principles of
California or any other jurisdiction).

     

    10.2.           
LEGAL COMPLIANCE. The
parties will review in good faith and cooperate in taking such actions to ensure
compliance of this Agreement with all applicable laws.

     

    10.3.           DISPUTE RESOLUTION. Any
dispute under this Agreement will be finally settled by binding arbitration,
conducted in accordance with the rules of the American Arbitration Association
by three arbitrators appointed in accordance with said rules. The costs of the
arbitration, including administrative and arbitrators' fees, will be shared
equally by the parties to the arbitration. The prevailing party in any
arbitration, as determined by the arbitration panel, will be entitled to an
award against the other party in the amount of the prevailing party's costs and
reasonable attorneys' fees. The arbitration will be held in San Diego,
California, if brought by Peregrine, or Irvine, California, if brought by
Avanir. A disputed performance or suspended perfoimances pending the resolution
of the arbitration must be completed within 30 days following the final decision
of the arbitrators. Any arbitration subject to this Section 10.3 will be
completed within six months from the filing notice of a request for such
arbitration.

     

    ARTICLE
11.

     

    GENERAL
PROVISIONS

     

    11.1.   NOTICES. All notices required
or permitted to be given under this Agreement will be in writing and will be
deemed effectively given upon personal delivery, or the day after delivery to a
recognized overnight courier, to the following address:

     

    If to
Peregrine:

     

    Peregrine
Pharmaceuticals, Inc. 

    14272
Franklin Avenue, Suite 100 

    Tustin,
CA 92780-7017

    Attention:
Steven King

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    Cc:          Mark
Ziebell

    Falk,
Shaff & Ziebell LLP

    18881 Von
Karman Ave, Suite 1400 

    Irvine,
CA 92612

     

    If to
Avanir:

     

    Avanir
Pharmaceuticals 11388 

    Sorrento
Valley Road 

    San
Diego, CA 92121

    Attention:
J. David Hansen

    President
and Chief Operating Officer

     

    Any party
may, by written notice to the other, designate a new address to which notices to
the party giving the notice will thereafter be sent.

     

    11.2.
FORCE MAJEURE. No party
will be liable for any delay or failure of performance to the extent such delay
or failure is declared to be caused by circumstances beyond its reasonable
control and that by the exercise of due diligence it is unable to prevent such
delay or failure, provided that the party claiming excuse uses its reasonable
best efforts to overcome the same. Notwithstanding the foregoing, should an
event force majeure persist for 180 days or more, the non-declaring party will
be entitled to terminate this Agreement without cost or liability.

     

    11.3.
ENTIRETY OF AGREEMENT.
This Agreement and the Materials Transfer Agreement set forth the entire
agreement and understanding of the parties relating to the subject matter
contained in this Agreement and merges all prior discussions and agreements
between them, and no party will be bound by any representation other than as
expressly stated in this Agreement, or by a written amendment to this Agreement
signed by authorized representatives of each of the parties.

     

    11.4.
NON-WAIVER. The failure
of a party in any one or more instances to insist upon strict performance of any
of the terms and conditions of this Agreement will not be construed as a waiver
or relinquishment, to any extent, of the right to assert or rely upon any such
terms or conditions on any future occasion.

     

    11.5.
DISCLAIMER OF AGENCY.
This Agreement will not constitute any party the legal representative or agent
of another, nor will any party have the night or authority to assume, create, or
incur any Third Party liability or obligation of any kind, express or implied,
against or in the name of or on behalf of another except as expressly set forth
in this Agreement.

     

    11.6.
SEVERANCE. In the event
that any provision of this Agreement becomes or is declared by a court of
competent jurisdiction to be illegal, unenforceable or void, this Agreement will
continue in full force and effect without such provision, and the parties will
discuss in good faith appropriate revised arrangements.

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    11.7.
AFFILIATES;
ASSIGNMENT.  Except as otherwise provided in this Agreement,
neither party may assign its rights or delegate its duties under this Agreement
without the prior written consent
of the other party, riot to be unreasonably withheld; provided, however, that
either party may assign this Agreement to any Affiliate or to any successor by
merger or sale of substantially all of its business unit to which this Agreement
relates in a manner such that the assignor will remain liable and responsible
for the performance and observance of all its duties and obligations hereunder.
References to a party will include any Affiliate of that party to whom such an
assignment or delegation has been made or ratified. Subject to the restrictions
contained in the preceding sentence, this Agreement will be binding upon the
successors and assigns of the parties. Any attempted delegation or assignment
not in accordance with this Section 11.7 will be
of no force or effect.

     

    11.8.  HEADINGS. The headings
contained in this Agreement have been added for convenience only and will not be
construed as limiting.

     

    11.9.  COUNTERPARTS. This Agreement
may be executed in two counterparts, each of which will be an original and both
of which will constitute together the same document.

     

    [Signature
Page Follows]

     

     

     

     

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    IN
WITNESS WHEREOF, the parties to this Agreement have duly executed this
Agreement.

     

    

    
      	
              AVANIR
      PHARMACEUTICALS

            	 
      	
              PEREGRINE
      PHARMACEUTICALS, INC

            
	 
      	 
      	 
      
	
              By:
      /s/ J. David Hansen

            	 
      	
              By:
      /s/ Steven King

            
	
                     (Signature)

            	 
      	
                     (Signature)

            
	 
      	 
      	 
      
	
              J.
      David Hansen

            	 
      	
              Steven
      King

            
	
              Printed
      Name

            	 
      	
              Printed
      Name

            
	 
      	 
      	 
      
	
              Sr.
      Vice President

            	 
      	
              President

            
	
              Title

            	 
      	
              Title

            
	 
      	 
      	 
      
	
              12/01/03

            	 
      	
              12-5-03

            
	
              Date

            	 
      	
              Date

            

    

    

    

     

     

     

     

    
 

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
A

     

    Information
to support the filing of an IND

     

    
      	
              I. 

            	
              Copies
      of all laboratory notebooks and development
  reports

            

    

    
      	
              II.

            	
              List
      of materials used, including animal derived components, including
      certification and testing

            

    

    
      	
              III. 

            	
              Vector
      and Gene Construction

            

    

     

    A.           Source
and function of the component parts of the vector

     

    
      	
               
      

            	
              1.

            	
              Name

            

    

    
      	
               
      

            	
              2.

            	
              Origin
      of Replication

            

    

    
      	
               
      

            	
              3.

            	
              Promoters

            

    

    
      	
               
      

            	
              4.

            	
              Enhancers

            

    

    
      	
               
      

            	
              5.

            	
              Antibiotic
      resistance genes/ selection genes

            

    

    
      	
               
      

            	
              6.

            	
              Other
      regulatory elements

            

    

    
      	
               
      

            	
              7.

            	
              Function
      of replicons, if applicable

            

    

    
      	
               
      

            	
              8.

            	
              Open
      reading frames

            

    

    
      	
               
      

            	
              9.

            	
              Genetic
      markers critical for characterization of production
  cells

            

    

    
      	
               
      

            	
              10.

            	
              Sequence
      of the vector

            

    

    
      	
               
      

            	
              11.

            	
              Restriction
      enzyme map of the vector

            

    

     

    B.           Details
of the Gene

     

    
      	
               
      

            	
              1.

            	
              Any
      names and/or laboratory codes

            

    

    
      	
               
      

            	
              2.

            	
              Rational
      for choosing this gene

            

    

    
      	
               
      

            	
              3.

            	
              Restriction
      enzyme map of the gene

            

    

    
      	
               
      

            	
              4.

            	
              Complete
      nucleotide and amino acid sequences including the heavy
    chain

            

    

    
      	
               
      

            	
              5.

            	
              Origins
      describing from what cell line and
type

            

    

    
      	
               
      

            	
              6.

            	
              Isolation
      strategy of the gene

            

    

    
      	
               
      

            	
              7.

            	
              Open
      reading frames

            

    

    
      	
               
      

            	
              8.

            	
              Designate
      any important sequence features

            

    

     

    C.           Details
of the antibody

     

    
      	
               
      

            	
              1.

            	
              Structural
      identity of human sequences (i.e. is it a kappa or lambda constant region,
      IgG or IgG 4 ,
      etc.?)

            

    

    
      	
               
      

            	
              2.

            	
              molecular
      mass

            

    

     

    D.           Detailed
description of how the gene and vector were constructed

     

    IV. Host
Cells

     

    
      	
               
      

            	
              A.

            	
              Source
      (name, origin, history, identification characteristics,
    etc.)

            

    

    
      	
               
      

            	
              B.

            	
              Pheno-
      and geno- types

            

    

    
      	
               
      

            	
              C.

            	
              Any
      extraneous sequences produced by this cell line including any
      immunoglobulin heavy or light chains that it synthesizes and/or
      secretes

            

    

     

    
      	
               
      

            	
              E.

            	
              Methods
      of cell culture, concentration of cells at passage and passage
      numbers

            

    

     

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    
V. Fusion
Strategy

     

    
      	
            	
              A. 

            	
              Mechanisms
      of gene/vector transfer into host
cells

            

    

    
      	
            	
              C. 

            	
              Are
      the genes integrated or
extra-chromosomal

            

    

    
      	
            	
              D. 

            	
              Demonstration
      that the construction is actually identical to that
  desired

            

    

    
      	
            	
              E. 

            	
              Constitutive
      or controlled expression

            

    

     

    VI. Sub-cloning and Isolation
Strategy

     

    
      	
            	
              A. 

            	
              Detailed
      methodology of candidate cell line
isolation

            

    

    
      	
            	
              B. 

            	
              Description
      of amplification process

            

    

    
      
        	
              	
                C. 

              	
                Selection
      methodology

              

      

    

     

    
      	
            	
              E.

            	
              Detailed
      methodology for establishment of the cell
line

            

    

    
      	
            	
              F.

            	
              Any
      extraneous sequences produced as a result of the
    sub-cloning

            

    

     

    VII.
Confirmation/comparison to known 3G4 sequence

     

    
      	
            	
              A. 

            	
              Sequencing
      methodology

            

    

    
      	
            	
              B. 

            	
              Results
      for identification and authenticity

            

    

     

     

     

     

     

    
      
        
        

      

      
        16peregrine_8k-ex1023.htm

    
      
        

      

      Exhibit 10.23

       

      

       

      LICENSE
AGREEMENT

      
 

      between

      

      

      LONZA
BIOLOGICS PLC

      
 

      and

       

       

      PEREGRINE
PHARMACEUTICALS INC

       

       

       

       

       

       

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      

      INDEX

       

      

      
        	
                ARTICLE

              	
                TITLE

              	
                PAGE

              
	
                1.

              	
                Definitions
      and Interpretation

              	
                3

              
	
                2.

              	
                Supply
      of Materials and Know-How

              	
                7

              
	
                3.

              	
                Ownership
      of Property and Intellectual Property

              	
                7

              
	
                4.

              	
                Licences

              	
                7

              
	
                5.

              	
                Payments

              	
                9

              
	
                6.

              	
                Royalty
      Procedures

              	
                10

              
	
                7.

              	
                Liability
      and Warranties

              	
                11

              
	
                8.

              	
                Confidentiality

              	
                12

              
	
                9.

              	
                Patents

              	
                13

              
	
                10.

              	
                Term
      and Termination

              	
                14

              
	
                11.

              	
                Assignment

              	
                15

              
	
                12.

              	
                Governing
      Law and Jurisdiction

              	
                16

              
	
                13.

              	
                Force
      Majeure

              	
                16

              
	
                14.

              	
                Illegality

              	
                16

              
	
                15.

              	
                Entire
      Agreement/Amendment/Waiver/Press Releases/Cost

              	
                17

              
	
                16.

              	
                Notice

              	
                17

              
	
                17.

              	
                Interpretation

              	
                18

              
	 
      	 
      	 
      
	
                SCHEDULE

              	 
      	 
      
	
                1

              	
                Patent
      Rights

              	
                20

              

      

      

       

       

       

       

      
 

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      

      THIS
AGREEMENT is made with effect from the first day of July 1998

      

      BETWEEN

      

      LONZA
BIOLOGICS PLC of 228 Bath Road, Slough, Berkshire SLI 4DY, England (hereinafter
referred to as "Biologics"), and

      

      PEREGRINE
PHARMACEUTICALS INC, (formerly known as TECHNICLONE CORPORATION) of 14282
Franklin Avenue, Tustin, CA 92780-7017, USA (hereinafter referred to as
"Licensee")

      

      WHEREAS

      

      A.           Biologics
is the proprietor of a system for gene expression utilising glutamine
synthetase, and

      

      B.           The
Licensee wishes to take a Licence under Intellectual Property (as hereinafter
defined) of which Biologics is the proprietor to commercially exploit a Product
(as hereinafter defined) in the form hereunder.

      

      NOW
THEREFORE the parties hereby agree as follows:

      

      1.           Definitions
and Interpretation

      

      "Affiliate"
means any company, partnership or other entity which directly or indirectly
controls, is controlled by or is under common control with the relevant party to
this Agreement. "Control" means the ownership of more than fifty percent (50%)
of the issued share capital or the legal power to direct or cause the direction
of the general management and policies of the party in question.

      

      "Cell
Lines" means those cell lines referred to in Clause 2.1.1(b) of the REA of which
Biologics is the proprietor or is otherwise entitled to use in accordance with
the terms set out herein.

      

      "Competing
Contract Manufacturer" means any party who undertakes or performs more than
fifty percent (50%) of its business as a third party manufacturer of monoclonal
antibodies and/or
therapeutic proteins or any product of a similar nature to that to which this
Agreement relates.

       

       

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      "Effective
Date" means the date first above written.

      

      "First
Commercial Sale" means the date of the first sale or other disposal of Product
for consideration by the Licensee pursuant to a New Drug Application that has
been approved by the Food & Drug Administration or the equivalent in the
appropriate jurisdiction.

      

      "Intellectual
Property" means Materials Know-How and Patent Rights.

      

      "Know-How"
means unpatented technical and other information including but without prejudice
to the generality of the foregoing ideas, concepts, inventions, discoveries,
data, formulae, specifications, procedures for experiments and tests and other
protocols, results of experimentation and testing, fermentation and purification
techniques and assay protocols.

      

      "Materials"
means the System and the Vectors, but excluding any gene proprietary to Licensee
inserted into the System for the purposes of producing Product.

      

      "Materials
Know-How" means Know-How specifically relating to the Materials of which
Biologics is the proprietor.

      

      "Net
Selling Price" means all monies received by or on behalf of Licensee in respect
of the sale of Product in the Territory less the following items to the extent
that they are paid or allowed and included in the invoice price:

      

      (a)           normal
discounts actually granted;

      

      (b)           credits
allowed for Product or other goods returned or not accepted by
customers;

      

      (c)           packaging,
transportation and prepaid insurance charges on shipments or deliveries to
customers;

      

      

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      (d)           taxes
actually incurred and paid by Licensee in connection with the sale or delivery
of Product or other goods to customers;

      

      (e)           cost
of radio isotopes, including cost of radio labelling services, which are added
to Product prior to sale; and

      

      (f)           cost
of any other component that is added to the final antibody and that is necessary
for Product to produce its desired effect, including cost of conjugation
services which are added to Product.

      

      Upon any
sale or other disposal of Product by or on behalf of Licensee other than a bona
fide arms length transaction exclusively for money or upon any use of the
Product for purposes which do not result in a disposal of such Product in
consideration of sales revenue customary in the country of use, such sale, other
disposal or use shall be deemed to constitute a sale at the then current maximum
selling price in the country in which such sale, other disposal or use
occurs.

      

      For the
avoidance of doubt, the supply of Product free of charge or at cost as
commercial samples or for use in clinical studies or to third parties for
research, development or evaluation purposes shall not be included in this
provision

      

      "Patent
Rights" means the patents and applications short particulars of which are set
out in Schedule 1 hereto and all patents and applications thereof of any kind
throughout the world whether national or regional including but without
prejudice to the generality of the foregoing, author certificates, inventor
certificates, improvement patents, utility certificates and models and
certificates of addition and including any divisions, renewals, continuations,
extensions of reissue thereof.

      

      "Phase I
Clinical Studies" means a limited series of studies in patients or healthy
volunteers whose primary purpose is to evaluate the safety and pharmacokinetics
of a Product in any indication.

      

      "Phase II
Clinical Studies" means the initial trials of a Product in a clinical
development programme on a limited number of patients for the primary purpose of
evaluating safety, dose ranging and efficacy in the proposed therapeutic
indications.

      

      

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      "Product"
means DNA/histone directed antibody of human or chimeric origin, in combination
with radio isotope or another component, of which antibody Licensee is the
proprietor and which is obtained by the expression of any one gene or of any
combination of genes by use of the Materials. For the avoidance of doubt, save
as expressly provided by Clause 4.4, this Agreement shall not entitle Licensee
to exploit the rights granted hereunder in respect of more than one antibody
without the prior written consent of Biologics.

      

      "REA"
means the Research Evaluation Agreement dated 25 April 1995 between Biologics'
predecessor in title, Celltech Therapeutics Limited, and Licensee's predecessor
in title, Cancer Therapeutics, Inc., as updated and consolidated in that certain
Research Evaluation Agreement between the parties dated

      

      "Strategic
Partner" means a party with whom Licensee has entered into a contractual
relationship to identify a therapeutic target for, or to collaborate in the
performance of research and development of, or to provide for the further
commercialisation of, a Product or a product of which the Strategic Partner is
the Proprietor. In no event may any entity that is primarily a Competing
Contract Manufacturer or a company which does not have independent operations
that will be materially relied on by Licensee for development of the relevant
Product be deemed a Strategic Partner for the purposes of this
Agreement.

      

      "Subsidiary"
means Avid Bioservices Inc., and each other Affiliate of Licensee

      

      "System"
means the glutamine synthetase gene expression system of which Biologics is the
proprietor, as the same is described in the Intellectual Property.

      

      "Territory"
means worldwide.

      

      "Valid
Claim" means a claim within the Patent Rights (including any re-issued and
unexpired patents) which has not been held unenforceable or invalid by the
decision of a court or other governmental agency of competent jurisdiction
unappealable or unappealed within the time allowed for appeal and which has not
been admitted to be invalid or unenforceable through re-issue or disclaimer or
otherwise.

      

      

       

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      "Vectors"
means those vectors containing the System referred to in clause 2.1.1 (a) of the
REA.

      

      "Year"
means a twelve (12) month period from the Effective Date hereof or an
anniversary of the Effective Date.

      

      2.           Supply
of Materials and Know-How

      

      
        	
                 
      

              	
                2.1

              	
                Following
      the signature of this Agreement by both parties and receipt of the payment
      specified in Clause 5.1 hereof Licensee shall be entitled to retain and
      use, in accordance with this Agreement, the Materials and Materials
      Know-How supplied by Biologics under the REA prior to 1st June 2004. For
      the avoidance of doubt, this Agreement does not impair the rights of
      Licensee under the REA to use the Materials and Materials Know-How in
      accordance with the terms of the
REA.

              

      

      

      3.           Ownership
of Property and Intellectual Property

      

      
        	
                 
      

              	
                3.1

              	
                It
      is hereby acknowledged and agreed that any and all property and
      Intellectual Property in the Materials is vested in Biologics, and any and
      all property and intellectual property in the Products and any gene
      belonging to the Licensee that is inserted into the System is vested in
      Licensee.

              

      

      

      3.2           The
provisions of this Clause 3 shall survive termination of this
Agreement.

      

      4.           Licences

      

      
        	
                 
      

              	
                4.1

              	
                Biologics
      hereby grants to Licensee a worldwide non-exclusive licence to use the
      System, the Cell Lines, the Materials, and the Intellectual Property to
      develop, manufacture, market and sell
Product.

              

      

      

      
        	
                 
      

              	
                4.2

              	
                The
      Licensee hereby undertakes not to make any modifications or adaptations to
      the Materials or the Cell Lines during the subsistence of this
      Agreement.

              

      

      

      
        	
                 
      

              	
                4.3

              	
                Subject to the provisions of this
      Clause 4.3, Licensee shall be entitled to grant one or more sublicences to
      the rights granted by Clause 4.1 to third parties for the purposes of any
      such third party manufacturing, or assisting in the manufacture of, a
      Product for Licensee provided
always:

              

      

       

       

       

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      4.3.1   Licensee
shall ensure such sublicensee's use of the Materials, the Cell Lines, the
Intellectual Property and the Product is undertaken solely for the purpose of
establishing a manufacturing process for Product, or producing Product, for
Licensee; and

       

      4.3.2   The
sublicensee shall not, by virtue of this Agreement, be granted any right or
licence, either express or implied, under any patent or proprietary right vested
in Biologics or otherwise, to use the Materials, the Intellectual Property or
the Product other than for the purposes of establishing a manufacturing Process
for Product or producing Product for Licensee and Licensee agrees to ensure that
such sublicensee shall not assign, transfer, further sublicense or otherwise
make over the benefit or the burden of the rights granted to it pursuant to this
Agreement; and

      

      4.3.3   Any
sublicence granted shall be expressly subject and subordinate to the terms of
this Agreement, and it shall be Licensee's responsibility to ensure the strict
adherence by any sublicensee hereunder to the terms and conditions of this
Agreement; and

      

      4.3.4   Prior
to the grant of any sublicence pursuant to this Clause 4 (other than a
sublicence to any Affiliate of Licensee), Licensee shall obtain the written
consent of Biologics (such consent not to be unreasonably withheld or delayed),
to the grant of such sublicence. Licensee shall notify Biologics of any
sublicence to any Affiliate of Licensee within thirty (30) days of signature of
such sublicence.

      

      
        	
                 
      

              	
                4.4

              	
                Notwithstanding
      the fact that the rights granted in Clause 4.1 relate only to a single
      molecule which falls within the definition of Product, the Licensee shall
      be entitled to conduct Phase I and Phase II Clinical Studies on more than
      one (1) antibody which antibodies otherwise satisfy the definition of
      Product. These additional rights are granted on the understanding that
      they are exploited in every other way in accordance with, and are subject
      to, the terms of this Agreement (including specifically Clause 5 below)
      and on the understanding Licensee shall identify in writing to Biologics
      the specific Product antibody it intends to proceed to develop beyond
      Phase II Clinical Studies prior to embarking on such further
      development.

              

      

       

       

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                4.5

              	
                Licensee
      may provide plasmid vectors containing the DNA sequence encoding Product
      and cell lines containing those plasmid vectors (hereafter "Licensee
      Materials"), but not the Materials themselves, to one or more third
      parties for analysis and testing purposes associated with the manufacture
      of Product (for example in relation to the integrity of the DNA sequence),
      subject to the following provisos:

              

      

      

      (a)           Licensee
shall obtain the written consent of Biologics prior to any disclosure to a third
party, such consent not to be unreasonably withheld or delayed; and

      

      (b)           Licensee
shall have obtained from each such third party an agreement that such third
party shall not use the Licensee Materials for any purpose except as set out
above in this clause 4.5, shall not disclose the Licensee Materials to any other
third party and shall destroy the Licensee Materials upon the conclusion of its
engagement.

      

      5.           Payments

      

      
        	
                 
      

              	
                5.1

              	
                In
      consideration of the licence granted to Licensee pursuant to Clause 4.1
      hereof, Licensee shall pay Biologics as
follows:

              

      

      

      
        
          	
                	
                  5.1.1 

                	
                  [***]
      within thirty (30) days of execution of this Agreement;
  and

                

        

      

      

      
        
          	
                	
                  5.1.2 

                	
                  a
      royalty of  [***]
      of the Net Selling Price in respect of Product manufactured by Biologics,
      Licensee or any of Licensee's Affiliates, including Avid Bioservices
      Inc.

                

        

      

      

      
        	
                 
      

              	
                5.2

              	
                In
      consideration for the right to sublicense the rights granted by Clause 4.1
      pursuant to Clause 4.3 to a Strategic Partner, Licensee shall pay
      Biologics as follows:

              

      

       

       

       

       

       

       

      
        [***] The
following portion has been omitted pursuant to a Confidential Treatment Request
under Rule 24b-2 of the Securities Exchange Act of 1934 and has been filed
separately with the Securities and Exchange Commission.

      

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      
        
          	
                	
                  5.2.1 

                	
                  [***]
      per sublicence per annum during which the sublicence in question subsists,
      beginning upon completion of patient recruitment for Phase II clinical
      trials; and

                

        

      

      

      
        
          	
                	
                  5.2.2 

                	
                  a
      royalty of  [***]
      of the Net Selling Price of Product Manufactured by such Strategic
      Partner.

                

        

      

      

      
        	
                 
      

              	
                5.3

              	
                In
      consideration for the right to sublicense the rights granted by Clause 4.1
      pursuant to Clause 4.3 to parties other than those expressly permitted
      under clauses 5.1 and 5.2 above, Licensee shall pay Biologics as
      follows:

              

      

      

      
        
          	
                	
                  5.3.1 

                	
                  [***]
      per sublicence per annum during which the sublicence in question subsists,
      which sum shall fall due on the commencement date of the relevant
      sublicence and on each anniversary of the commencement date of the
      relevant sublicence; and

                

        

      

      

      
        
          	
                	
                  5.3.2 

                	
                  a
      royalty of  [***]
      of the Net Selling Price of Product manufactured by a
      sublicensee.

                

        

      

      

      
        	
                 
      

              	
                5.4

              	
                Notwithstanding
      the foregoing provisions of this Clause 5, no amount shall be payable
      pursuant to Clause 5.2.2 or 5.3.2 with respect to a sub-licence if such
      sub-licence is not for the purpose of manufacturing, and does not permit
      or result in the manufacture of, Product for
  sale.

              

      

      

      6.           Royalty
Procedures

      

      
        	
                 
      

              	
                6.1

              	
                Licensee
      shall keep true and accurate records and books of account containing all
      data necessary for the calculation of royalties payable to Biologics. Such
      records and books of account shall, upon reasonable notice having been
      given by Biologics, be open at all reasonable times during business hours
      for inspection by Biologics or its duly authorised
      representative.

              

      

      

      
        	
                 
      

              	
                6.2

              	
                Subsequent to the commencement of
      Product sales, Licensee shall prepare a statement in respect of each
      calendar quarter which shall show for the quarter in question details of
      the sales of Product and the royalty due and payable to Biologics
      thereon.

              

      

      

       

       

       

       

       
[***] The following portion has been omitted pursuant
to a Confidential Treatment Request under Rule 24b-2 of the Securities Exchange
Act of 1934 and has been filed separately with the Securities and Exchange
Commission.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      Such
statement shall be submitted to Biologics within thirty (30) days of the end of
the calendar quarter to which it relates together with a remittance for the
royalties due to Biologics.

      

      6.3           All
sums due under this Agreement:

       

      
        	
              	
                6.3.1 

              	
                shall
      be made in pounds sterling to Biologics. Payments due to Biologics in
      currencies other than pounds sterling shall first be calculated in the
      relevant local currency before being calculated at the rate of exchange
      ruling at the close of business on the day payment is due or made,
      whichever is earlier, provided always that where payment is made after the
      date provided therefore herein conversion shall be at the rate ruling at
      the date of payment if this is more favourable to Biologics. The rate of
      exchange shall be the mean value of the Pound Spot Rate in London first
      published in the Financial Times on the day following the day for
      determining such rates.

              

      

      

      
        
          	
                	
                  6.3.2 

                	
                  are
      exclusive of any Value Added Tax or of any other applicable taxes, levies,
      imposts, duties and fees of whatever nature imposed by or under the
      authority of any government or public authority which shall be paid by
      Licensee. The parties agree to co-operate in all respects necessary to
      take advantage of such double taxation agreements as may be
      available.

                

        

      

      

      
        	
                 
      

              	
                6.4

              	
                Where
      Biologics does not receive payment of any sum by the due date, interest
      shall accrue thereafter on the sum due and owing to Biologics at the rate
      of two percent (2%) over the base rate from time to time of Midland Bank
      plc, interest to accrue on a day to day basis without prejudice to
      Biologics' right to receive payment on the due
  date.

              

      

      

      7.           Liability
and Warranties

       

      
        	
                 
      

              	
                7.1

              	
                Biologics
      gives no representation or warranty that the Patent Rights which are
      patent applications will be granted or if granted will be valid nor that
      the exercise of the rights granted to Licensee hereunder will not infringe
      other patent rights or intellectual property rights vested in Biologics or
      any third party.

              

      

       

       

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                7.2

              	
                The
      Licensee hereby acknowledges that in order to exploit the rights contained
      herein the Licensee may require licences under Biologics patent rights
      other than those herein licensed or under third party patent rights
      (including those vested in Affiliates of Biologics) that may be infringed
      by the use by the Licensee of the rights licensed herein and it is hereby
      agreed that it shall be the Licensee's responsibility to satisfy itself as
      to the need for such licences and if necessary to obtain such licences. No
      licence is granted save as expressly provided herein and no licence in
      addition thereto shall be deemed to have arisen or be implied by way of
      estoppel or otherwise.

              

      

      

      
        	
                 
      

              	
                7.3

              	
                Licensee
      shall indemnify and hold harmless Biologics and its officers, servants and
      agents at all times in respect of any and all losses, damages, costs and
      expenses suffered or incurred as a result of any contractual, tortious or
      other claims or proceedings by third parties against Biologics arising in
      any way out of the exercise by Licensee of any of the rights granted to it
      under this Agreement, and in particular, product liability claims or
      proceedings.

              

      

      

      
        	
                 
      

              	
                7.4

              	
                Any
      condition or warranty other than those relating to title which might
      otherwise be implied or incorporated within this Agreement by reason of
      statute or common law or otherwise is hereby expressly
      excluded.

              

      

      

      
        	
                 
      

              	
                7.5

              	
                The
      terms of this Clause 7 shall survive termination of the Agreement for
      whatever reason.

              

      

      

      8.           Confidentiality

      

      
        	
                 
      

              	
                8.1

              	
                Licensee expressly acknowledges
      that the Materials Know-How and any other Know-How with which it is
      supplied by Biologics pursuant to this Agreement is supplied in
      circumstances imparting an obligation of confidence and Licensee agrees to
      keep such Know How or Materials Know-How secret and confidential and to
      respect Biologics' proprietary rights therein and to use the same for the
      sole purpose of this Agreement and not during the period of this Agreement
      or at any time for any reason whatsoever to disclose or permit to be
      disclosed such Know How or Materials Know-How to any third party. Licensee
      shall procure that only its employees shall have access to the Know How or
      Materials Know-How on a need to know basis and that all such employees
      shall be informed of their secret and confidential nature and shall be
      subject to the same obligations as Licensee pursuant to this Clause 8.1,
      subject to applicable law.

              

      

       

      
        	
                 
      

              	
                8.2

              	
                Licensee
      hereby undertakes and agrees to keep the Materials and the Cell Lines
      secure and safe from loss, damage, theft, misuse and unauthorised access
      and shall procure that the Materials and the Cell Lines shall be made
      available only to employees of Licensee and other permitted persons under
      clause 4.5 above on a need to know basis and subject to the same
      obligations of confidence as provided in Clause 8.1 hereof, and to use the
      same for the sole purpose of this
Agreement.

              

      

       

       

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                8.3

              	
                Both
      parties undertake and agree not to at any time for any reason whatsoever
      disclose or permit to be disclosed to any third party or otherwise make
      use of or permit to be made use of any trade secrets or confidential
      information relating to the business affairs or finances of the other or
      of any suppliers, agents, distributors, licensees or other customers of
      the other which comes into their possession pursuant to this
      Agreement.

              

      

      

      
        	
                 
      

              	
                8.4

              	
                The
      obligations of confidence referred to in this Clause 8 shall not extend to
      any information which:

              

      

      

      
        
          
            	
                  	
                    8.4.1 

                  	
                    is
      or shall become generally available to the public otherwise than by reason
      of a breach by the recipient party of the provisions of this Clause
      8;

                  

          

        

      

      

      
        
          	
                	
                  8.4.2 

                	
                  is
      known to the recipient party and is at its free disposal prior to its
      receipt from the other;

                

        

      

      

      
        
          	
                	
                  8.4.3 

                	
                  is
      subsequently disclosed to the recipient party without obligations of
      confidence by a third party owing no such obligations in respect thereof;
      and

                

        

      

       

      
        
          	
                	
                  8.4.4 

                	
                  Biologics
      or Licensee may be required to disclose to a government agency for the
      purpose of any statutory, regulatory or similar legislative requirement
      applicable to the production of Product or to meet the requirements of any
      Stock Exchange to which the parties may be subject but only to the extent
      such disclosure is required, and subject to obligations of secrecy
      wherever possible.

                

        

      

      

      
        	
                 
      

              	
                8.5

              	
                The
      obligations of both parties under this Clause 8 shall survive the expiry
      or termination of this Agreement for whatever
  reason.

              

      

      

      
        	
                9. 

              	
                Patents

              

      

      

      
        	
              	
                9.1 

              	
                Biologics
      hereby undertakes and agrees that at its own cost and expense it
      will:

              

      

      

      
        
          	
                	
                  9.1.1 

                	
                  prosecute
      or procure prosecution of such of the Patent Rights which are patent
      applications diligently to grant so as to secure the best commercial
      advantage obtainable so far as it is reasonable to do so with reference to
      Biologics' commercial considerations;
and

                

        

      

      

      
        
          	
                	
                  9.1.2 

                	
                  pay
      or procure payment of all renewal fees in respect of the Patent Rights
      valid and subsisting for the full term thereof and in particular will
      procure such renewal of the registrations thereof as may be necessary from
      time to time so far as it is reasonable to do so with particular reference
      to commercial considerations.

                

        

      

       

       

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                9.2

              	
                Licensee
      shall promptly notify Biologics in writing of any infringement or improper
      or unlawful use of or of any challenge to the validity of the Patent
      Rights and/or Materials Know-How that shall become known to the senior
      executives of Licensee. Biologics undertakes and agrees to take all such
      steps and proceedings and to do all other acts and things as may in
      Biologics' sole discretion be necessary to restrain any such infringement
      or improper or unlawful use or to defend such challenge to validity and
      Licensee shall permit Biologics to have the sole conduct of any such steps
      and proceedings including the right to settle them whether or not Licensee
      is a party to them. Licensee hereby agrees to co-operate fully with
      Biologics at its own cost and expense lending its name to the proceedings
      as may be necessary.

              

      

       

      Biologics
shall be entitled to retain any and all monies received from such
proceedings.

      

      
        	
                10. 

              	
                Term
      and Termination

              

      

      

      
        
          	
                	
                  10.1 

                	
                  Unless
      terminated earlier in accordance with the provisions of this Clause 10 or
      Clause 13 or 14, this Agreement shall continue in force in each country of
      the world, until expiry of the last to expire of a period of fifteen (15)
      years from the date of First Commercial Sale or until expiry of the last
      Valid Claim, whichever is later always provided that this Agreement shall
      terminate before the expiry of the said fifteen (15) year period and after
      the expiry of the last Valid Claim if Biologics makes publicly available
      the Materials and the Materials
Know-How.

                

        

      

      

      
        
          	
                	
                  10.2 

                	
                  Licensee
      may terminate this Agreement by giving sixty (60) days notice in writing
      to Biologics.

                

        

      

      

      
        
          	
                	
                  10.3 

                	
                  Either
      Biologics or Licensee may terminate this Agreement forthwith by notice in
      writing to the other upon the occurrence of any of the following events
      :

                

        

      

      

      
        
          	
                	
                  10.3.1 

                	
                  if
      the other commits a breach of this Agreement which in the case of a breach
      capable of remedy shall not have been remedied within thirty (30) days of
      the r eceipt by the other of a notice identifying the breach and requiring
      its remedy.

                

        

      

      

      
        
          	
                	
                  10.3.2 

                	
                  if
      the other is unable to pay its debts or enters into compulsory or
      voluntary liquidation (other than for the purpose of effecting a
      reconstruction or amalgamation in such manner that the company resulting
      from such reconstruction or amalgamation if a different legal entity shall
      agree to be bound by and assume the obligations of the relevant party
      under this Agreement) or compounds with or convenes a meeting of its
      creditors or has a receiver appointed over all or any part of its assets
      or takes or suffers any similar action in consequence of a debt, or ceases
      for any reason to carry on
business.

                

        

      

       

       

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      
        
          	
                	
                  10.4 

                	
                  If
      at any time during this Agreement Licensee directly or indirectly opposes
      or assists any third party to oppose the grant of letters patent or any
      patent application within any of the Patent Rights or disputes or directly
      or indirectly assists any third party to dispute the validity of any
      patent within any of the Patent Rights or any of the claims thereof,
      Biologics shall be entitled at any time thereafter to terminate all or any
      of the licences granted hereunder forthwith by notice to
      Licensee.

                

        

      

      

      
        
          	
                	
                  10.5 

                	
                  If
      this Agreement is terminated for any reason any and all licences granted
      hereunder shall terminate with effect from the date of termination and
      Licensee shall destroy all Materials and Cell Lines forthwith and shall
      certify such destruction immediately thereafter in writing to Biologics.
      Licensee shall be permitted to sell such stocks of Product as have been
      manufactured or are being manufactured on or prior to the date of
      termination of this Agreement, and shall account to Biologics for
      royalties on the sale of such products in accordance with clause 5
      above.

                

        

      

      

      
        
          	
                	
                  10.6 

                	
                  Termination
      for whatever reason or expiration of this Agreement shall not affect the
      accrued rights of the parties arising in any way out of this Agreement as
      at the date of termination. The right to recover damages against the other
      and all provisions which are expressed to survive this Agreement shall
      remain in full force and
effect.

                

        

      

      

      
        	
                11. 

              	
                Assignment

              

      

      

      
        
          	
                	
                  11.1 

                	
                  Neither
      party shall be entitled to assign, transfer, charge or in any way make
      over the benefit and/or the burden of this Agreement without the prior
      written consent of the other which consent shall not be unreasonably
      withheld or delayed, save that Biologics shall be entitled without the
      prior written consent of the Licensee to assign, transfer, charge,
      sub-contract, deal with or in any other manner make over the benefit
      and/or burden of this Agreement to an Affiliate or to any 50/50 joint
      venture company of which Biologics is the beneficial owner of fifty
      percent (50%) or more of the issued share capital thereof or to any
      company with which that party may merge or to any company to which that
      party may transfer its assets and undertaking, provided in each case of an
      assignment of burdens, that all intellectual property and other property
      and rights of Biologics necessary to enable such assignee or transferee to
      specifically perform the obligations of Biologics hereunder
      shallalso
      be so assigned or transferred. Notwithstanding the foregoing, Licensee
      shall have the right to assign its rights and obligations hereunder in
      connection with a sale of all or substantially all of the assets involved
      in the line of business that includes the Product (including a sale of all
      or substantially all of its assets) without the prior written consent of
      Biologics.

                

        

      

      

      
        
          	
                	
                  11.2 

                	
                  This
      Agreement shall be binding upon the successors and assigns of the parties
      and the name of a party appearing herein shall be deemed to include the
      names of its successors and assigns provided always that nothing herein
      shall permit any assignment by either party except as expressly provided
      herein.

                

        

      

       

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      
        	
                12. 

              	
                Governing
      Law and Jurisdiction

              

      

      

      
        
          	
                	
                  12.1 

                	
                  The
      validity, construction and performance of this Agreement shall be governed
      by English law.

                

        

      

      

      
        
          	
                	
                  12.2 

                	
                  All
      disputes, claims or proceedings between the parties relating to the
      validity, construction or performance of this Agreement shall be subject
      to the exclusive jurisdiction of the High Court of Justice in England to
      which the parties hereto irrevocably
submit.

                

        

      

      

      
        
          	
                	
                  12.3 

                	
                  Each
      of the parties irrevocably consents to award or grant of any relief in any
      such proceedings before the High Court of Justice in England. Either party
      shall have the right to take proceedings in any other jurisdiction for the
      purposes of enforcing a judgement or order obtained from the High Court of
      Justice in England.

                

        

      

      

      
        	
                13. 

              	
                Force
      Majeure

              

      

      

      Neither
party shall be in breach of this Agreement if there is any total or partial
failure of performance by it of its duties and obligations under this Agreement
occasioned by any act of God, fire, act of government or state, war, civil
commotion, insurrection, embargo, prevention from or hindrance in obtaining any
raw materials, energy or other supplies, labour disputes of whatever nature and
any other reason beyond the control of either party. If either party is unable
to perform its duties and obligations under this Agreement as a direct result of
the effect of one of the reasons set out in this Clause 13 such party shall give
written notice to the other of such inability stating the reason in
question. The operation of this Agreement shall be suspended during the period
(and only during the period) in which the reason continues. Forthwith upon the
reason ceasing to exist the party relying upon it shall give written advice to
the other of this fact. If the reason continues for a period of more than ninety
(90) days and substantially affects the commercial basis of this Agreement the
party not claiming under this Clause 13 shall have the right to terminate this
Agreement by giving sixty (60) days written notice of such termination to the
other party.

      

      
        	
                14. 

              	
                Illegality

              

      

      

      If any
provision or term of this Agreement or any part thereof shall become or be
declared illegal, invalid or unenforceable for any reason whatsoever including
but without limitation by reason of the provisions of any legislation or other
provisions having the force of law or by reason of any decision of any Court or
other body or authority having jurisdiction over the parties hereto or this
Agreement including the EC Commission or the European Court of Justice, such
terms or provisions shall be divisible from this Agreement and shall be deemed
to be deleted from this Agreement in the jurisdiction in question provided
always that if any such deletion substantially affects or alters the commercial
basis of this Agreement either party shall have the right to terminate this
Agreement by giving sixty (60) days written notice of such termination to the
other party.

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      
        	
                15. 

              	
                Entire
      Agreement/Amendment/Waiver/Press
Releases/Costs

              

      

      

      
        
          	
                	
                  15.1 

                	
                  This
      Agreement embodies and sets forth the entire agreement and understanding
      of the parties and supersedes all prior oral and written agreements,
      understanding or arrangements relating to the subject matter of this
      Agreement. Neither party shall be entitled to rely on any agreement,
      understanding or arrangement which is not expressly set forth in this
      Agreement.

                

        

      

      

      
        
          	
                	
                  15.2 

                	
                  This
      Agreement shall not be amended, modified, varied or supplemented except in
      writing signed by duly authorised representatives of the
      parties.

                

        

      

      

      
        
          	
                	
                  15.3 

                	
                  No
      failure or delay on the part of either party hereto to exercise any right
      or remedy under this Agreement shall be construed or operated as a waiver
      thereof nor shall any single or partial exercise of any right or remedy
      underthis
      Agreement preclude the exercise of any other right or remedy or preclude
      the further exercise of such right or remedy as the case may be. The
      rights and remedies provided in this Agreement are cumulative and are not
      exclusive of any rights or remedies provided by
  law.

                

        

      

      

      
        
          	
                	
                  15.4 

                	
                  The
      text of any press release or other communication to be published by or in
      the media whether or a scientific nature or otherwise and concerning the
      subject matter of this Agreement shall require the prior written approval
      of Biologics.

                

        

      

      

      
        
          	
                	
                  15.5 

                	
                  Each
      of the parties hereto shall be responsible for its respective legal and
      other costs incurred in relation to the preparation of this
      Agreement.

                

        

      

      

      
        	
                16. 

              	
                Notice

              

      

      

      
        
          	
                	
                  16.1 

                	
                  Any
      notice or other document to be given under this Agreement shall be in
      writing and shall be deemed to have been duly given if left at or sent by
      registered post, courier, facsimile or other electronic media to a party
      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(s):

                

        

      

      

      Address
of Biologics

      Lonza
Biologics plc, 228 Bath Road, Slough, Berkshire SL1 4DX

      Facsimile
: 01753 777001

      

      Address
of Licensee

      Peregrine
Pharmaceuticals Inc, 14282 Franklin Avenue, Tustin, CA 92780-7017

      Facsimile
: 001 714 838 4094

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      
        
          	
                	
                  16.2 

                	
                  All
      such notices and documents shall be in the English language. Any such
      notice or other document shall be deemed to have been received by the
      addressee seven (7) working days following the date of despatch of the
      notice or other document by post or, where the notice or other document is
      sent by hand or is given by facsimile or other electronic media,
      simultaneously with the transmission or delivery. To prove the giving of a
      notice or other document it shall be sufficient to show that it was
      despatched.

                

        

      

      

      
        	
                17. 

              	
                Interpretation

              

      

      

      
        
          	
                	
                  17.1 

                	
                  The
      headings in this Agreement are inserted only for convenience and shall not
      affect the construction
hereof.

                

        

      

      

      
        
          	
                	
                  17.2 

                	
                  Where
      appropriate words denoting a singular number only shall include the plural
      and vice versa.

                

        

      

      

      
        
          	
                	
                  17.3 

                	
                  Reference
      to any statute or statutory provision includes a reference to the statute
      or statutory provision as from time to time amended, extended or
      re-enacted.

                

        

      

      

       

       

       

       

      
 

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      AS
WITNESS the hands of the duly authorised representatives of the parties
hereto

       

      
      

       

      
        	
                Signed
      for and on behalf of

              	 
	LONZA BIOLOGICS
      PLC 	/s/
      LONZA BIOLOGICS
      PLC                  
      
	 	TITLE:
        Finance Director 
	 	DATE:   05
      OCT 2004 
	 	 
	
                Signed
      for and on behalf of

              	 
	PEREGRINE
      PHARMACEUTICALS INC  	/s/ Paul
      Lytle                                            
       
	 	
                TITLE: 
       CFO

              
	 	DATE:   15
      Sept 04
	 	 

      

       

       

       

       

       

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

      
SCHEDULE
1

       

      PATENT
RIGHTS

       

      
        
           

          
            	
                    Biologics
      Ref:

                  	
                    LBP07
      (formerly known as PA 98)

                  
	
                    Priority
      Dates:

                  	
                    01.04.85
      and 03.09.85

                  
	
                    Title:

                  	
                    Transformed
      Myeloma Cell-Line and a Process for the Expression of a

                  
	 
      	
                    Gene
      Coding for a Eukaryotic Polypeptide employing same 

                  
	
                    Inventors:

                  	
                    John
      Henry Kenten

                  
	
                     

                  	
                    Michael
      Alan Boss

                  

          

          
 

          
            
              	 	
                      Territory

                    	
                      Patent
      Application

                    	
                      Patent
      Expiry Date

                    	 
	 	
                       

                    	
                      or
      * Patent Number

                    	 
      	 
	 	 	 	 	 
	 	
                      Australia

                    	
                      *584417

                    	
                      01.04.02

                    	 
	 	
                      Bulgaria

                    	
                      77296

                    	
                      -

                    	 
	 	
                      Canada

                    	
                      *1319120

                    	
                      15.06.10

                    	 
	 	
                      Europe+

                    	
                      *216846

                    	
                      01.04.06

                    	 
	 	
                      Japan

                    	
                      501959/86

                    	
                      -

                    	 
	 	
                      United
      Kingdom

                    	
                      *2183662

                    	
                      01.04.06

                    	 
	 	
                      USA

                    	
                      07/701374

                    	
                      -

                    	 
	 	
                      Russia
      (formerly a USSR application)

                    	
                      4028654.13

                    	 
      	 

            

            

              +  includes Austria,
Belgium, France, Germany, Italy, Luxembourg, Netherlands, Swede and
Switzerland.

            

             

             

          

        

        
          
            
            

          

          
            20

            
              

            

          

          
            
            

          

        

         

        
          

          
            	
                    Biologics
      Ref:

                  	
                    PA
      108

                  
	
                    Priority
      Date:

                  	
                    23.01.86

                  
	
                    Title:

                  	
                    Recombinant
      DNA Sequences, Vectors containing them and Method for
  the

                  
	 
      	
                    use
      thereof

                  
	
                    Inventors:

                  	
                    Richard
      Harris Wilson (Glasgow University)

                  
	
                     

                  	
                    Christopher
      Robert Bebbington

                  

          

          

          

          
            	 	
                    Territory

                  	
                    Patent
      Application

                  	
                    Patent
      Expiry Date

                  	 
	 	 
      	
                    or
      * Patent Number

                  	 
      	 
	 	 	 	 	 
	 	
                    Australia

                  	
                    *599081

                  	
                    23.01.03

                  	 
	 	
                    Canada

                  	
                    528011

                  	
                    -

                  	 
	 	
                    Europe+

                  	
                    *256055

                  	
                    23.01.07

                  	 
	 	
                    Japan

                  	
                    500891/87

                  	
                    -

                  	 
	 	
                    USA

                  	
                    *5122464

                  	
                    16.06.09

                  	 
	 	
                    USA
      (Divisional)

                  	
                    07/852390

                  	
                    -

                  	 

          

           

        

         

        +       includes
Austria, Belgium, France, Germany, Italy, Luxembourg, Netherlands, Swede and
Switzerland.

         

         

         

        
          
            
            

          

          
            21

            
              

            

          

          
            
            

          

        

         

        
          

          
            	
                    Biologics
      Ref:

                  	
                    LBP09
      (formerly known as PA 140)

                  
	
                    Priority
      Date:

                  	
                    23.07.87

                  
	
                    Title:

                  	
                    Recombinant
      DNA Product and Processes using it

                  
	
                    Inventors:

                  	
                    Christopher
      Robert Bebbington

                  

          

          

          

          
            	 	
                    Territory

                  	
                    Patent
      Application

                  	
                    Patent
      Expiry Date

                  	 
	 	
                     

                  	
                    or
      * Patent Number

                  	 
      	 
	 	 	 	 	 
	 	
                    Europe+

                  	
                    *323997

                  	
                    22.07.08

                  	 
	 	
                    Japan

                  	
                    506088/88

                  	 
      	 
	 	
                    USA

                  	
                    07/339615

                  	 
      	 

          

          
+  includes Austria,
Belgium, France, Germany, Italy, Luxembourg, Netherlands, Sweden, Switzerland
and United Kingdom

           

           

           

           

          
             

          

           

          
            
              
              

            

            
              22

              
                

              

            

            
              
              

            

          

           

           

          
            	
                    Biologics
      Ref:

                  	
                    LBP10
      (formerly known as PA 177)

                  
	
                    Priority
      Date:

                  	
                    18.04.88

                  
	
                    Title:

                  	
                    Recombinant
      DNA Methods, Vectors and Host Cells

                  
	
                    Inventors:

                  	
                    Christopher
      Robert Bebbington

                  
	
                     

                  	
                    Geoffrey
      Thomas Yarranton

                  

          

          

          

          
            	 	
                    Territory

                  	
                    Patent
      Application

                  	
                    Patent
      Expiry Date

                  	 
	 	
                     

                  	
                    or
      * Patent Number

                  	 
      	 
	 	 	 	 	 
	 	
                    Australia

                  	
                    *624616

                  	
                    18.04.05

                  	 
	 	
                    Canada

                  	
                    597034

                  	 
      	 
	 	
                    Europe+

                  	
                    89303964.4

                  	 
      	 
	 	
                    Japan

                  	
                    505128/89

                  	 
      	 
	 	
                    USA

                  	
                    07/460154

                  	 
      	 

          

          

          +  includes Austria,
Belgium, France, Germany, Greece, Italy, Luxembourg, Netherlands, Spain, Sweden,
Switzerland and United Kingdom

           

           

           

           

           

           

          
            
              
              

            

            
              23

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}]]