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   Exhibit 10.3

Confidential treatment requested  

 SEMI-EXCLUSIVE LICENSE AGREEMENT  

    THIS AGREEMENT, effective as Sept. 30, 1993, is between Enzon, Inc. a corporation of the State of Delaware (ENZON) having its principal place of
business at 40 Kingsbridge Road, Piscataway, NJ 08854-3998, and Bristol-Myers Squibb Company, a corporation of the State of Delaware (BMS) having a principal place of business at Route 206
and Province Line Road, Princeton, NJ 08540. 

RECITALS  

    ENZON has conceived and reduced to practice certain single-chain antigen binding molecules (as hereinafter further defined under SCA DISCOVERIES); 

    BMS
has an interest in the semi-exclusive development of said SCA DISCOVERIES into commercially useful products and processes in the field of Lewis-Y antigen
binding proteins (as hereinafter further defined under FIELD); 

    ENZON
has certain PATENT RIGHTS pertaining to the SCA DISCOVERIES; ENZON is interested in licensing said PATENT RIGHTS and know-how associated with SCA DISCOVERIES; and 

    BMS
is interested in becoming a semi-exclusive licensee and desires to develop, manufacture, use, and sell products and processes in the FIELD related to said SCA
DISCOVERIES throughout the world; 

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

1.  DEFINITIONS  

	1.1
	The
term "AFFILIATE" shall mean:

	(a)
	Any
corporation owning or controlling, directly or indirectly, at least fifty-one percent (51%) of the stock normally entitled to vote for election of directors of a
party and

	(b)
	Any
corporation at least fifty-one percent (51%) of whose stock normally entitled to vote for election of directors is owned or controlled, directly or indirectly, by a
party. 

	1.2
	The
term "EFFECTIVE DATE" shall mean the date first written above. 

    1.3 The
term "FIELD" shall mean proteins that derive their therapeutic activity by their binding affinity for the Lewis-Y antigen or that compete with
monoclonal antibody BR96 for binding to the Lewis-Y antigen, for therapeutic use only, excluding, without limitation, the areas listed in APPENDIX II. 

    1.4 The
term "FIRST COMMERCIAL SALE" shall mean the first commercial sale of any PRODUCT by BMS or its AFFILIATES or sublicensees. 

    1.5 The
term "ENZON IMPROVEMENT" shall mean any technology related to an SCA DISCOVERY disclosed or claimed in a patent application filed, or licensed on a
royalty-free basis with the right to sublicense, by ENZON or its AFFILIATES after the EFFECTIVE DATE and during the term of this Agreement; PROVIDED, HOWEVER, that ENZON IMPROVEMENT shall
not include any specific SCA PROTEIN, or any specific genetic sequence or host coding for or containing such genetic sequence coding for a specific SCA PROTEIN, or the therapeutic or diagnostic use of
such a specific SCA PROTEIN. 

[*]   Confidential treatment requested 

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    1.6 The term "NET SALES" shall mean the gross sales receipt for any quantity of PRODUCT subject to royalty under this Agreement that is sold by BMS or its AFFILIATES or
sublicensees to any third party, less deductions for (a) trade and cash discounts, credits, allowances, rebates or refunds incurred or granted; (b) bad debts actually incurred; and
(c) sales, use or excise taxes and duties, and freight and insurance, to the extent included in the gross price charged. 

    1.7 The
term "PATENT RIGHT(S)" shall mean any United States or foreign patent applications or patents owned, or licensed on a royalty-free basis with the
right to sublicense, by ENZON or its AFFILIATES containing one or more claims to SCA DISCOVERIES, any continuation-in-part, division, or continuation application thereof, any
patent or the equivalent thereof granted thereon, and any reissue, reexamination, or extension of any of these patent(s) including any applications filed and patent(s) granted on ENZON IMPROVEMENTS;
PROVIDED, HOWEVER, that PATENT RIGHTS shall not include any claim in patent applications to specific SCA PROTEIN, or to any specific genetic sequence or host coding for or containing such genetic
sequence coding for a specific SCA PROTEIN, or to the therapeutic or diagnostic use of such a specific SCA PROTEIN. Existing PATENT RIGHTS are listed in Appendix I, which shall be modified by
ENZON from time-to-time so that it accurately reflects those patent applications and patents includable under PATENT RIGHTS during the term of the Agreement, relevant to the
FIELD. 

    1.8 The
term "PRODUCT(S)" shall mean an SCA PROTEIN whose manufacture, composition, or use in the country in question, but for the license granted hereunder, would
constitute an infringement of one or more VALID CLAIMS in such country. 

    1.9 The
term "VALID CLAIM" shall mean a claim contained in any patent included in PATENT RIGHTS which has not been held invalid or unenforceable by final decision of a
court or other governmental agency of competent jurisdiction, unappealable within the time allowed for appeal, and which has not been admitted to be invalid or unenforceable through reissue,
disclaimer or otherwise. 

    1.10 The
term "SCA DISCOVERIES" shall mean an SCA PROTEIN, genetic sequences coding therefor, transformed hosts containing such genetic sequences, and methods of
producing and using such SCA PROTEIN. 

    1.11 The
term "SCA PROTEIN" shall mean a single chain polypeptide having binding affinity for an antigen, said polypeptide comprising: 

	(a)
	a
first polypeptide comprising the binding portion of the light chain variable region of an antibody;

	(b)
	a
second polypeptide comprising the binding portion of the heavy chain variable region of an antibody; and

	(c)
	at
least one peptide linker linking said first and second polypeptides (a) and (b) into a single chain polypeptide having binding affinity for said antigen. 

    1.12 The
term "BMS PATENT RIGHTS" shall mean any patents issuing after the EFFECTIVE DATE hereof and during the term of this Agreement, owned, or licensed on a
royalty-free basis with the right to sublicense, by BMS or its AFFILIATES, covering any SCA DISCOVERY, but only to the extent of claims therein, if any, that, as a matter of U.S. patent
law, are dominated by ENZON PATENT RIGHTS; PROVIDED, HOWEVER, that BMS PATENT RIGHTS shall not include any claim to specific SCA PROTEIN, or to any specific genetic sequence or host coding for or
containing such genetic sequence coding for a specific SCA PROTEIN, or to the therapeutic or diagnostic use of such a specific SCA PROTEIN. 

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2.  PATENT RIGHTS  

    2.1  Costs.  All future patent costs pertaining to PATENT RIGHTS whether or not such PATENT RIGHTS are
pending on the EFFECTIVE DATE, including preparation, filing, and prosecution of patent applications, issuance, taxation, and maintenance costs shall be borne by ENZON. 

    2.2  Control.  All control over PATENT RIGHTS will be in ENZON, and all PATENT RIGHTS will be filed and
prosecuted by ENZON's attorneys, subject to any rights BMS may have under Section 7. 

3.  LICENSE GRANT TO BMS  

    3.1  Semi-Exclusive License.  As of the EFFECTIVE DATE of this Agreement, ENZON hereby
grants to BMS and its AFFILIATES a worldwide license under PATENT RIGHTS to make, have made, use, and sell PRODUCTS in the FIELD with the right to grant sublicenses to third parties. The license shall
be exclusive (even as to ENZON and its AFFILIATES), subject only to the rights of the companies listed in Appendix III which have rights in the FIELD under the license agreements with ENZON
listed therein and, if applicable (i.e., to the extent that monoclonal antibody A33 may bind to the Lewis-Y antigen), subject to the right reserved by ENZON and its AFFILIATES to make,
have made, use and sell SCA PROTEINS based on monoclonal antibody A33. 

4.  PAYMENT BY BMS  

    4.1  Cash.  Within ten (10) days following the EFFECTIVE DATE of this Agreement, BMS shall pay
ENZON the sum of [*] Dollars ($[*]). 

    4.2  Milestone Payments.  For each therapeutic PRODUCT developed by BMS or its AFFILIATES or
sublicensees subject to Regulatory Approval by the Food and Drug Administration, BMS will pay ENZON the following sums at the indicated Milestones: 

	(a)
	[*]
Dollars ($[*]) at the time of an Investigational New Drug (IND) application filing;

	(b)
	[*]
Dollars ($[*]) at the time of a Product License Application (PLA) filing; and

	(c)
	[*]
Dollars ($[*]) at the time of the PLA approval. 

    Payments
under this Section 4.2 shall be credited against the Payments to Maintain Semi- Exclusivity otherwise payable under Section 4.4. It is understood
that, with respect to any PRODUCT, no additional
payment under this Section 4.2 will be payable as a result of filing in more than one jurisdiction or any filing seeking marketing approval for a new indication. 

    4.3  Royalties.  BMS shall pay to ENZON a [*] percent
([*]%) royalty on NET SALES for each PRODUCT sold by BMS or its AFFILIATES or sublicensees. If BMS must pay royalties to a third party on NET SALES of PRODUCT in a country due
to an issued patent of any third party relating to SCA DISCOVERIES, then the royalty payable by BMS to ENZON on NET SALES in such country shall be reduced by the amount of the royalty payable by BMS
to such third party, provided that the royalty rate payable by BMS to ENZON shall not be reduced below [*]% of NET SALES. Royalties hereunder shall be payable at the
[*]% rate (as may be reduced as aforesaid, if applicable), and no more, regardless of the extent of PATENT RIGHTS being exploited. 

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    4.4  Payments to Maintain Semi-Exclusivity.  BMS shall pay to ENZON the following sums on
the indicated anniversaries of the EFFECTIVE DATE: 

	ANNIVERSARY
 
	 	PAYMENT
 

	[*]	 	[*] Dollars ($[*])
	[*]	 	[*] Dollars ($[*])
	[*]	 	[*] Dollars ($[*])

    Payments
under this Section 4.4 shall be credited against the Milestone Payments otherwise payable under Section 4.2. If BMS fails to make a payment under this
Section 4.4, then ENZON in its sole discretion may send BMS a written notice of default and, unless the payment default is cured by BMS within thirty (30) days of the notice, convert
BMS' license granted under Section 3 to a non-exclusive license by giving written notice of such conversion to BMS. 

    4.5  Currency Conversion.  Royalties due on NET SALES made in currency other than United States dollars
shall first be calculated in the foreign currency and then converted to United States dollars on
the basis of the arithmetic average of the applicable selling rate reported in The Wall Street Journal for the foreign currency in question for each of the last ten (10) business days of the
period for which royalties are due. 

5.  ACCOUNTING  

    5.1  Reports.  BMS shall report in writing to ENZON within sixty (60) days after the end of each
calendar quarter (commencing the quarter during which the FiRST COMMERCIAL SALE occurs) the quantities of PRODUCT subject to royalties hereunder that were sold by BMS and its AFFILIATES and
sublicensees during said quarter, and the calculation of the royalties thereon. With said report BMS shall pay to ENZON the total amount of said royalties that have not been paid in advance. Reports,
notices, royalty payments, and other communications hereunder shall be sent to the appropriate party at the following addresses: 

For
ENZON: 

John
Caruso, Esq.

Vice President of Lega1 Affairs

ENZON, INC.

40 Kingsbridge Road

Piscataway, NJ 08854-3998 

For
BMS: 

Bristol-Myers
Squibb Company

Route 206 and Province Line Road

Princeton, NJ 08540

Attention:    Zola P. Horovitz

Vice President, Business Development and Planning 

    5.2  Records.  BMS shall keep, and require each AFFILIATE and sublicensee to keep, adequate records in
sufficient detail to enable the royalties payable by BMS hereunder to be determined and, upon reasonable advance notice, permit, and require each AFFILIATE and sublicensee to permit, said
records to be inspected at any time during regular business hours by an independent auditor appointed by ENZON and reasonably satisfactory to BMS for this purpose, who shall report to ENZON only the
amount of the royalties payable hereunder. 

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6.  OPTION TO BMS  

    6.1  Option to Non-Exclusive License.   ENZON hereby grants BMS and its AFFILIATES the option
to take a non-exclusive license under PATENT RIGHTS (as defined in the applicable license agreement referred to below) in the field of (a) cancer therapeutics, or (b) all
therapeutics. BMS may exercise this option by signing and delivering to ENZON the License Agreement of Appendix IV [*] or Appendix V [*]
accompanied by payment of the sum of [*] Dollars ($[*]) for cancer therapeutics, or [*] Dollars ($[*])
for all therapeutics. [*] Percent ([*]%) of the cash payment of Section 4.1 hereof shall be credited against the applicable option exercise
payment if exercise occurs on or before [*]. [*] Percent ([*]%) of the cash payment of Section 4.1 hereof shall be
credited against the applicable option exercise payment if exercise occurs after [*] but on or before [*]. This option shall expire on
[*]. With respect to each exclusive license agreement in the field of therapeutics covering PATENT RIGHTS entered into by ENZON after the EFFECTIVE DATE, ENZON shall expressly
subject the license granted thereunder to the option granted to BMS under this Section 6.1 by way of an express disclosure comparable to Appendix III in such exclusive license agreement. 

7.  INFRINGEMENT  

    7.1  No Warranty of Non-Infringement.   Nothing in this Agreement shall be construed as a
warranty, assurance, or representation by ENZON or its AFFILIATES that BMS or its AFFILIATES or sublicensees can make, have made, use, or sell PRODUCT free of any proprietary rights, including third
party patent rights, other than those specifically granted in this Agreement. ENZON hereby represents that, as of the EFFECTIVE DATE, BMS' practice of the inventions covered by PATENT RIGHTS pursuant
to the license granted hereunder will not infringe any existing patent (including patent to issue on an existing patent application) right owned, or licensed on a royalty-free basis with
the right to sublicense, by ENZON or its AFFILIATES not licensed hereunder, to the extent that such practice does not involve the modification of any SCA PROTEIN as described in Area 8 listed in
Appendix II. 

    7.2  Infringement by BMS.   In the event that BMS or its AFFILIATES or sublicensees are sued for
infringement by reason of practicing any invention covered by PATENT RIGHTS, BMS or its AFFILIATES shall notify ENZON in writing of the suit and shall have the sole right, but not the obligation, to
defend such suit at the expense of BMS or its AFFILIATES or sublicensees, as the case may be. Only with respect to matters pertaining to the validity or enforceability of PATENT RIGHTS shall ENZON
have the right to provide advice and assistance in any such litigation at its expense, unless such advice and assistance are requested by BMS or its AFFILIATES or sublicensees, in which case it shall
be at the expense of BMS or its AFFILIATES or sublicensees, as the case may be. In the event ENZON is joined in such litigation, ENZON shall have the right to defend itself with counsel of its choice
at its expense. 

    7.3  Infringement by Third Party.  

	(a)
	BMS
shall notify ENZON of any infringement by a third party of any PATENT RIGHTS in the FIELD that BMS is aware of, and shall provide ENZON with the available evidence, if any, of
such infringement.

	(b)
	ENZON
shall have the exclusive right and sole discretion during the term of this Agreement to stop such infringement including bringing suit or other proceeding against the
infringer in its own name and BMS shall be kept informed at all times of all such actions taken by ENZON. If ENZON requests, BMS may, at BMS' discretion, assist ENZON as a party to the lawsuit or
other proceeding at ENZON's expense; however, ENZON shall retain control of the prosecution of such suit or proceeding, as the case may be. 

5

 

	(c)
	ENZON
shall bear all its costs incurred in connection with such lawsuit or other proceeding, and consequently shall be entitled to collect and retain for its own account such
damages and profits as may be accrued as a result of such lawsuit or other proceeding; provided, however, that, if (and only if) such damages and profits have been determined on the basis of such
infringement, then the total amount of such damages and profits, net of ENZON's lost royalties hereunder, litigation costs and expenses, shall be shared with BMS as follows: ENZON shall be entitled to
[*] of such net amount; and BMS shall be entitled to the remainder.

	(d)
	If
third party infringement in the FIELD in a particular country continues for more than six months after BMS' notice to ENZON under this Section 7.3, then any royalty
obligation incurred by BMS under Section 4.3 hereof shall be reduced by [*] until such third party infringement terminates. For purposes of
the above sentence, sales by a third party of infringing product in such country shall not be considered to be "third party infringement" unless such sales, together with sales of infringing product
by any other third parties, equal or exceed [*] of BMS sales of PRODUCT in such country.

	(e)
	Nothing
in this Agreement shall be construed as obligating ENZON, or giving BMS the right, to proceed against a third party infringer. 

8.  CONFIDENTIALITY, NON-USE AND PUBLICATIONS  

    8.1  ENZON's Rights.   Other than the option granted to BMS pursuant to Section 6.1, nothing in
this Agreement shall be construed to prohibit or limit in any manner ENZON's right to grant any license for PATENT RIGHTS to any party outside the FIELD. ENZON may issue public announcements or press
releases relating to the existence and/or subject matter of this Agreement (excluding any disclosure of the financial terms hereof unless required by law or regulation) with reference to BMS as the
licensee, provided that ENZON shall provide BMS with not less that five (5) business days to review and comment on the form and substance of the public announcement or press release. In no
event shall ENZON include in such announcements or re1eases, explicitly or implicitly, any mention or indication that BMS endorses any SCA DISCOVERY. 

    8.2  BMS' Rights.   BMS may issue public announcements or press releases relating to the existence of
this Agreement (excluding any disclosure of the financial terms hereof unless required by law or regulation) with reference to ENZON as the licensor, provided that BMS shall provide ENZON with not
less that five (5) business days to review and comment on the form and substance of the public announcement or press release. In no event shall BMS include in such announcements or releases,
explicitly or implicitly, any mention or indication that ENZON endorses the manufacture, use, or sale of any PRODUCT. 

    8.3  BMS' Obligations.   BMS shall not use any unpublished PATENT RIGHTS including the text of
Appendix I of this Agreement for any purpose other than as permitted under this Agreement. BMS shall keep any unpublished PATENT RIGHTS including the text of Appendix I of this Agreement
disclosed to BMS by ENZON confidential for three (3) years following the termination of this Agreement for any reason. Nothing in this Agreement shall prevent BMS from making any disclosure of
unpublished PATENT RIGHTS including the text of Appendix I of this Agreement required by law. 

    Nothing
in this Agreement shall in any way restrict the right of BMS to use or disclose unpublished PATENT RIGHTS including the text of Appendix I that: 

	(a)
	at
the time of disclosure by ENZON to BMS had been published or is publicly known or otherwise in the public domain;

	(b)
	is
published, becomes publicly known, or otherwise becomes part of the public domain after disclosure by ENZON to BMS through no fault of BMS; 

6

 

	(c)
	was
known to BMS prior to the time of disclosure by ENZON, as demonstrated by written records; or

	(d)
	was
or is disclosed to BMS in good faith by a third party who was not and is not under any obligation of confidence to ENZON at the time of said disclosure by said third party. 

    The
obligation of this Section 8.3 shall apply equally to BMS and us AFFILIATES and sublicensees. 

9.  BMS' DILIGENCE  

    During
the term of this Agreement, BMS and its AFFILIATES and, if any, sublicensees will use commercially reasonable efforts to develop PRODUCTS for commercial sale and distribution
throughout the world, and to such end will use commercially reasonable efforts to create a demand for the manufacture, sale, and marketing of PRODUCTS, and to meet and fulfill any such demand for said
PRODUCTS. 

10.  INDEMNIFICATION  

    BMS shall defend, indemnify, and hold ENZON and its AFFILIATES harmless from and against any and all claims, suits, and expenses, including attorney expenses,
arising from the manufacture, use, or sale or other distribution of PRODUCTS by BMS or its AFFILIATES or sublicensees, except to the extent attributable to the indemnified party's negligence or
intentional misconduct. 

11.  BMS IMPROVEMENTS  

    11.1  License to ENZON.   BMS and its AFFILIATES agree to and hereby do grant to ENZON and its AFFILIATES
a worldwide, royalty-free, non-exclusive license, including the right to grant sublicenses to third parties, to make, use, and sell any product covered by BMS PATENT RIGHTS. 

12.  TERM AND TERMINATION  

    12.1  Default.   If either party shall fail to perform any of its obligations under this Agreement, the
nondefaulting party may give written notice of the default to the defaulting party. Unless such default is corrected within sixty (60) days after receipt of such notice, the notifying party may
thereafter terminate this Agreement. 

    12.2  Term.   Unless otherwise terminated, as provided for in this Agreement, this Agreement will
continue on a country by country basis until the expiration of the last to expire PATENT RIGHT in the country in question. 

7

 

    12.3  Termination by BMS.   This Agreement may be terminated as a whole by BMS at any time from and after
the second anniversary of the EFFECTIVE DATE pursuant to written notice and payment if the applicable amount set forth below: 

	Termination during period

	From and including

anniversary
	 	To but excluding

anniversary
	 	Pro Rata

Amount Payable
 

	[*]	 	[*]	 	$[*]
	[*]	 	[*]	 	$[*]
	[*]	 	[*]	 	$[*]
	[*]	 	[*]	 	$[*]
	[*]	 	[*]	 	$[*]
	[*]	 	[*]	 	$[*]
	[*]	 	[*]	 	$[*]
	[*]	 	[*]	 	$[*]
	[*]	 	 	 	$[*]

Any
foregoing amount payable by BMS is: (i) additional to all amounts that have in due course become payable under Section 4.4 and (ii) subject to any available credit resulting
from any prior Milestone Payments made by BMS under Section 4.2 

    12.4  Survivability.  Sections 5, 7, 8, 10 and, with respect to all BMS PATENT RIGHTS existing as of the
time of termination, 11 shall survive the termination of this Agreement, except that Section 11 shall not survive if BMS terminates this Agreement under Section 12.1 for ENZON's default. 

13.  MISCELLANEOUS  

    13.1  DISCLAIMER OF WARRANTIES.   EXCEPT AS OTHERWISE EXPRESSLY PROVIDED HEREIN, ENZON EXPRESSLY
DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. 

    13.2  Integration.   This Agreement constitutes the entire understanding between the parties with respect
to the subject matter hereof, and supersedes and replaces all prior agreements, understandings, writings, and discussions between the parties relating to said subject matter. 

    13.3  Amendments.   This Agreement may be amended only by a written instrument executed by the parties. 

    13.4  Waiver.   The failure of either party at any time or times to require performance of any provision
hereof shall in no manner affect its rights at a later time to enforce the same. No waiver by either party of any condition or term in any one or more instances shall be construed as a further or
continuing waiver of such condition or term or any other condition or term. 

    13.5  Successors.   This Agreement shall be binding upon and inure to the benefit of and be enforceable
by the parties hereto and their respective successors and permitted assigns. 

    13.6  Assignability.   This Agreement shall not be assignable by either party without the other parry's
written consent, except for ENZON's right to receive royalties payable hereunder, upon sixty (60) days prior written notice to BMS. Either party, however, shall have the right to transfer this
Agreement to any AFFILIATE, or to any successor of its entire business to which this Agreement relates without the consent of the other party. 

8

 

    13.7  Notices.   Any notice and payment of royalties required or permitted to be given hereunder shall be
deemed sufficient if mailed by registered or certified mail (return receipt requested), or delivered by hand to the party to whom such notice is required at its address set forth in
Section 5.1. 

    13.8  Validity of Provisions.   If any provision(s) of this Agreement are or become invalid, are ruled
illegal by any court of competent jurisdiction or are deemed unenforceable under then current applicable law from time to time in effect during the term hereof, it is the intention of the parties that
the remainder of this Agreement shall not be affected thereby. It is further the intention of the parties that in lieu of each such invalid, illegal, or unenforceable provision, there shall be
substituted or added as part of this Agreement a provision that shall be as similar as possible in economic and business objectives to such invalid, illegal, or unenforceable provision as was
originally intended by the parties, but that shall be valid, legal, and enforceable. 

    13.9  Titles.   All titles and subtitles used in this Agreement are for purposes of illustration or
organization and are not legally binding on the parties. 

    13.10  Relationship of the Parties.   Nothing in this Agreement is intended or shall be deemed to
constitute a partnership, agency, employer-employee, or joint venture relationship between the parties. 

    13.11  Further Acts and Instruments.   Each party hereto agrees to execute, acknowledge, and deliver such
further instruments and to do all such other acts as may be necessary or appropriate to effect the purpose and intent of this Agreement. 

    13.12  Export Restrictions.   This Agreement, and any products or technical data supplied during the term
of this Agreement, are made subject to any restrictions concerning the export of products or technical data from the United States of America that may be imposed upon ENZON or BMS or their respective
AFFILIATES or sublicensees from time to time by the Government of the United States of America. Furthermore, BMS and its AFFILIATES agree that at no time, either during the term of this Agreement or
thereafter, will they or their sublicensees export, directly or indirectly, any United States source products or technical data acquired from ENZON or its AFFILIATES under this Agreement or any direct
products of that technical data to any country for which the U.S. Government or any agency thereof at the time of export requires an export license or other governmental approval, without first
obtaining that license or approval when required by applicable United States law. 

    13.13  Choice of Law.   This Agreement shall be governed by and construed and interpreted in accordance
with the laws of the State of New Jersey. 

9

 

    The parties have duly executed this Agreement as of the date first above written. 

	 	 	ENZON, INC.
	

 	
 	
By:

Name:

Title:	
 	

/s/ ABRAHAM ABUCHOWSKI   
 Abraham Abuchowski
 President & CEO

	 	 	BRISTOL-MYERS SQUIBB COMPANY
	

 	
 	
By:

Name:

Title	
 	

/s/ WILLIAM A. SCOTT   
 William A. Scott
 Senior Vice President

10

  

 
 

APPENDIX I    
  

    Constituting part of Section 1.7 of the Semi-Exclusive License Agreement dated Sept. 30, 1993, between ENZON and BMS. 

ENZON PATENT RIGHTS

	A.
	SCA Polypeptides, Sequences, Hosts, Processes

	1.
	U.S.
Patent No. 4,946,778; filed 2 September 1986, issued 7 August 1990

	2.
	U.S.
Patent Application Ser. No. [*]; filed [*]

	3.
	European
Patent Application Ser. No. [*] filed [*] ([*])

	4.
	Canadian
Patent Application Ser. No. [*]; filed [*]

	5.
	Japanese
Patent Application [*]; filed [*] 

	B.
	Multimers of SCA Polypeptides

	6.
	U.S.
Patent Application Ser. No. [*]; filed [*]

	7.
	U.S.
Patent Application Ser. No. [*]; filed [*]

	8.
	International
Patent Application No. [*]; filed [*] 

	C.
	Surface Expression of SCA Polypeptides

	9.
	U.S.
Patent Application Ser. No. [*]; filed [*]

	10.
	European
Patent Application [*]; filed [*] (via [*]), designating [*] 

	D.
	Linkers

	11.
	U.S.
Patent Application Ser. No. [*]filed [*] 

	E.
	Computer Assisted Design of SCA Polypeptides

	12.
	U.S.
Patent No. 4,704,692; filed 2 September 1986, issued 3 November 1987

	13.
	European
Patent Application [*]; filed [*] ([*])

	14.
	U.S.
Patent No. 4,881,175; filed 9 June 1988, issued 14 November 1989

	15.
	U.S.
Patent No. 4,939,666; filed 2 September 1987, issued 3 July 1990

	16.
	Japanese
Patent Application [*]; filed [*]

	17.
	Canadian
Patent Application Ser. No. [*]; filed [*] 

11

 

 
 

APPENDIX II    
  

    Constituting part of Section 1.3 of the Semi-Exclusive License Agreement dated Sept. 30, 1993, between ENZON and BMS. EXCLUDED AREAS 

    The
following areas are specifically excluded from the FIELD: 

    1.  Making,
having made, using, or selling SCA PROTEIN for [*], in which a [*] SCA PROTEIN is administered to a
[*] patient; time elapses for preferential concentration of the [*] SCA PROTEIN in [*] tissue and decrease of
[*] in the patient; and such preferentially concentrated [*] SCA PROTEIN is detected within a surgical operative field by a detector probe placed in
juxtaposition with tissue suspected of containing said [*] SCA PROTEIN. 

    2.  Making,
having made, using, or selling diagnostics based on [*] SCA PROTEINS and therapeutics based on [*] SCA
PROTEINS covalently linked to [*] or derivatives or fragments thereof. 

    3.  Making,
having made, or selling reagents and kits in the research market for production and cloning of genes encoding SCA PROTEIN(s) and their fusions in a
[*] system, and for expression and screening of SCA PROTEINS fused with the [*] or [*] or [*]. 

    4.  Selling
kits in the research market for [*] SCA PROTEINS. 

    5.  Selling
products containing SCA PROTEINS in the research market. 

    6.  Selling
SCA PROTEIN-containing products to diagnostic companies for inclusion in diagnostic kits. 

    7.  Making,
having made, using, or selling [*] SCA PROTEIN in which a protein binds to and [*] and in which an
antigen-binding site of an SCA PROTEIN is involved in said [*]. 

    8.  Making,
having made, using, or selling SCA PROTEINS that are, or have been modified by reaction with [*]. 

    9.  Making,
having made, using, or selling SCA PROTEINS fused with, or for the assay or purification of, [*]. 

12

 
 
 

APPENDIX III    
  

    Constituting part of Section 3.1 of the Semi-Exclusive License Agreement dated Sept. 30, 1993, between ENZON and BMS. PREVIOUS
LICENSEES 

PREVIOUS LICENSEES  

    The following companies and their affiliates have pre-existing rights in the FIELD under previous license agreements with ENZON: 

[*]
Corporation

[*] Incorporated

[*] Corporation 

    ENZON
hereby represents and warrants to BMS that at all times during the term of this Agreement: 

    (a) The
[*] license agreement covers only the fields of [*] as described under Area 1in Appendix II,
[*], and [*]. 

    (b) Neither
the [*] nor the [*] license agreement provides for any sublicensing right to the licensee. 

    ENZON
further covenants that it will not, during the term of this Agreement, permit any of the above-listed license agreements to be amended, supplemented or otherwise modified in any
manner inconsistent with the semi-exclusivity of the BMS license granted under this Agreement, including without limitation the granting of any consent to permit either
[*] or [*] to assign its license agreement, unless the proposed assignee shall acquire through the assignment in question no right with respect to the
FIELD. 

13

 
 
 

APPENDIX IV    
  

    Constituting part of Section 6.1 of the Semi-Exclusive License Agreement dated Sept. 30, 1993, between ENZON and BMS. 

NON-EXCLUSIVE LICENSE AGREEMENT—CANCER THERAPEUTICS  

14

 
  
 

    APPENDIX V    
  

    Constituting part of Section 6.1 of the Semi-Exclusive License Agreement dated Sept. 30, 1993, between ENZON and BMS. 

NON-EXCLUSIVE LICENSE AGREEMENT—ALL THERAPEUTICS  

15

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APPENDIX II

APPENDIX III

APPENDIX IV

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Exhibit 10.5

Confidential treatment requested  

 LICENSE AGREEMENT

BETWEEN

BRISTOL-MYERS SQUIBB

AND COMPANY

SEATTLE GENETICS, INC.

DATED AS OF MARCH 30, 1998  

 
  
 

    TABLE OF CONTENTS    
  

	1.	 	DEFINITIONS	 	1
	

2.	
 	

EXCHANGE OF DATA AND MATERIALS	
 	

5
	 	 	2.1	 	Licensed Technology	 	5
	 	 	2.2	 	Transfer of INDs	 	5
	 	 	2.3	 	Supply of Materials by SGI	 	6
	 	 	2.4	 	Exceptions and Limitations	 	6
	

3.	
 	

DEVELOPMENT AND COMMERCIALIZATION	
 	

6
	 	 	3.1	 	Development Obligations	 	6
	 	 	3.2	 	Conduct of Development by SGI	 	6
	 	 	3.3	 	Records	 	7
	 	 	3.4	 	Commercialization Responsibilities	 	7
	 	 	3.5	 	Market Conditions	 	7
	

4.	
 	

GRANT OF LICENSE AND OTHER RIGHTS	
 	

7
	 	 	4.1	 	License Grant	 	7
	 	 	4.2	 	Right to Sublicense or Sub-sublicense	 	8
	 	 	4.3	 	Reservation of Rights by BMS	 	9
	

5.	
 	

INITIAL PAYMENT; ROYALTIES	
 	

10
	 	 	5.1	 	Initial Payment	 	10
	 	 	5.2	 	Royalties	 	10
	 	 	5.3	 	Third Party Royalties	 	11
	 	 	5.4	 	Reduction for Generic Competition	 	11
	 	 	5.5	 	Obligation to Pay Royalties	 	12
	

6.	
 	

BMS IN-LICENSE EXPENSES	
 	

12
	 	 	6.1	 	Generally	 	12
	 	 	6.2	 	Notices of Payment	 	12
	 	 	6.3	 	Payments Non-Creditable	 	12
	

7.	
 	

PAYMENTS AND REPORTS	
 	

12
	 	 	7.1	 	Payment	 	12
	 	 	7.2	 	Mode of Payment	 	13
	 	 	7.3	 	Records Retention	 	13
	 	 	7.4	 	Audit Request	 	13
	 	 	7.5	 	Taxes	 	13
	 	 	7.6	 	Interest on Late Payments	 	13
	 	 	7.7	 	Obligations Under Ixsys Agreement	 	14
	

8.	
 	

REPRESENTATIONS AND WARRANTIES	
 	

14
	 	 	8.1	 	Representations and Warranties of Both Parties	 	14
	 	 	8.2	 	Representation and Warranty of BMS	 	14
	 	 	8.3	 	BMS Disclaimer of All Representations and Warranties	 	14
	

9.	
 	

PATENTS; IMPROVEMENTS	
 	

14
	 	 	9.1	 	Patent Filing, Maintenance and Prosecution	 	14
	 	 	9.2	 	Information; Consultation; Cooperation	 	15
	 	 	9.3	 	Prior Patent Rights	 	15
	 	 	9.4	 	Improvements	 	16
	 	 	9.5	 	Prior Improvement Rights; Reporting	 	16

i

 

	

10.	
 	

PATENT ENFORCEMENT: INFRINGEMENT	
 	

16
	 	 	10.1	 	Patent Enforcement	 	17
	 	 	10.2	 	Infringement Action by Third Parties	 	17
	 	 	10.3	 	Prior Rights	 	18
	

11.	
 	

INDEMNIFICATION	
 	

18
	 	 	11.1	 	By SGI	 	18
	 	 	11.2	 	By BMS	 	18
	 	 	11.3	 	Notice	 	18
	 	 	11.4	 	Complete Indemnification	 	18
	 	 	11.5	 	Insurance	 	18
	

12.	
 	

PUBLICATION; CONFIDENTIALITY	
 	

19
	 	 	12.1	 	Notification	 	19
	 	 	12.2	 	Review of Proposed Publications	 	20
	 	 	12.3	 	Confidentiality; Exceptions	 	20
	 	 	12.4	 	Exceptions	 	20
	 	 	12.5	 	Limitations on Use	 	21
	 	 	12.6	 	Remedies	 	21
	

13.	
 	

TERM; TERMINATION	
 	

21
	 	 	13.1	 	Term	 	21
	 	 	13.2	 	Termination by BMS	 	22
	 	 	13.3	 	Termination by SGI	 	22
	 	 	13.4	 	Breach	 	22
	 	 	13.5	 	Failure to Maintain Insurance	 	23
	 	 	13.6	 	Effect of Termination	 	23
	 	 	13.7	 	Termination of Sublicenses	 	24
	 	 	13.8	 	Accrued Rights, Surviving Obligations	 	24
	

14.	
 	

FORCE MAJEURE	
 	

25
	 	 	14.1	 	Events of Force Majeure	 	25
	

15.	
 	

MISCELLANEOUS	
 	

25
	 	 	15.1	 	Non-Solicitation	 	25
	 	 	15.2	 	Relationship of Parties	 	25
	 	 	15.3	 	Assignment	 	25
	 	 	15.4	 	Binding Effect	 	26
	 	 	15.5	 	Further Actions	 	26
	 	 	15.6	 	Costs and Expenses	 	26
	 	 	15.7	 	Inconsistency	 	26
	 	 	15.8	 	Notice	 	26
	 	 	15.9	 	Use of Name	 	27
	 	 	15.10	 	Public Announcements	 	27
	 	 	15.11	 	Waiver	 	27
	 	 	15.12	 	Compliance with Law	 	27
	 	 	15.13	 	Severability	 	27
	 	 	15.14	 	Amendment	 	28
	 	 	15.15	 	Governing Law	 	28
	 	 	15.16	 	Arbitration	 	28
	 	 	15.17	 	Entire Agreement	 	28
	 	 	15.18	 	Counterparts	 	28
	 	 	15.19	 	Descriptive Headings	 	28

ii

 
 
 

EXHIBITS    
  

	EXHIBIT A	 	Licensed Technology
	EXHIBIT B	 	Excluded Areas from Enzon Field

iii

  

 
 

LICENSE AGREEMENT    
  

    THIS LICENSE AGREEMENT (this "Agreement") dated as of March 30, 1998 by and between Bristol-Myers Squibb Company, a corporation duly organized and
existing under the laws of the State of Delaware, having offices at P.O. Box 4000, Route 206 and Province Line Road, Princeton, New Jersey 08543-4000, for and on behalf of itself
and its Affiliates ("BMS"), and Seattle Genetics, Inc., a corporation duly organized and existing under the laws of the State of Delaware, having offices at 22215 26th Avenue, SE, Bothell,
Washington 98021 ("SGI"). 

PRELIMINARY STATEMENTS  

    A.  BMS
has developed, is the owner of and has all right, title and interest in and to certain valuable technology, including know-how and patents or patent
applications, for the treatment of diseases and conditions in humans. 

    B.  In
addition, BMS has obtained licenses with respect to certain other valuable technology, including know-how and patents or patent applications, for the
treatment of diseases and conditions in humans by entering into: (i) that certain Agreement with the University of Washington (the "Washington Agreement"), dated as of January 26, 1989;
(ii) that certain License Agreement, with Ixsys, Inc. (the "Ixsys Agreement"), dated as of June 8, 1993; and (iii) that certain Semi-Exclusive License Agreement
with Enzon, Inc. (the "Enzon Agreement"), dated as of September 30, 1993. 

    C.  SGI
is interested in developing and commercializing such technology and desires to obtain a license from BMS to manufacture, market and sell products using such
technology in the Territory. 

    D.  BMS
is willing to grant such license to SGI on the terms and conditions set forth in this Agreement. 

    NOW,
THEREFORE, in consideration of the foregoing Preliminary Statements and the mutual covenants and agreements of the Parties contained in this Agreement, the Parties agree as
follows: 

1.  DEFINITIONS.  

    As used in this Agreement, the following terms will have those meanings set forth in this Section 1 unless the context dictates otherwise. 

    1.1 "Affiliate", with respect to any Party, shall mean any Person controlling, controlled by, or under common control
with, such Party. For these purposes, "control" shall refer to (a) the possession, directly or indirectly, of the power to direct the management or policies of a Person, whether through the
ownership of voting securities, by contract or otherwise or (b) the ownership, directly or indirectly, of at least 50% of the voting securities or other ownership interest of a Person. 

    1.2 "BMS In-Licenses" shall mean the Washington Agreement, the Ixsys Agreement and the Enzon Agreement,
collectively. 

    1.3 "Effective Date" shall have the meaning assigned thereto in Section 5.1. 

    1.4 "Enzon Field" shall mean proteins that derive their therapeutic activity by their binding affinity for the
Lewis-Y antigen or that compete with monoclonal antibody BR96 for binding to the Lewis-Y antigen, for therapeutic use only, excluding, without limitation, the areas set forth
in Exhibit B. 

    1.5 "Enzon Patents" shall have the meaning assigned thereto in Exhibit A. 

	[*]
	Confidential treatment requested

1

 

    1.6 "Enzon Product" shall mean a Product covered by the Licensed Technology relating to the Enzon Patents in the Enzon
Field that is an SCA Protein (as such term is defined in the Enzon Agreement) the manufacture, composition or use of which in a country in the Territory, but for the license to BMS under the Enzon
Agreement and the sublicense to SGI hereunder with respect to the Enzon Licensed Technology, would constitute an infringement of one or more Valid Claims of the Enzon Patents. 

    1.7 "FDA" shall mean the U.S. Food and Drug Administration, or the successor thereto. 

    1.8 "Field" shall have the meaning assigned thereto in Section 4.1(d). 

    1.9 "First Commercial Sale" shall mean, with respect to any Product, the first sale for use or consumption by the
general public of such Product in a country in the Territory after all required marketing and pricing approvals have been granted, or otherwise permitted, by the governing health authority of such
country. "First Commercial Sale" shall not include the sale of any Product for use in clinical trials or for compassionate use. 

    1.10 "Generic Product" shall mean, on a country-by-country basis, a Product: (i) the
manufacture, use or sale of which is not covered by a Valid Claim in such country, and (ii) that is also marketed by an unlicensed Third Party or Parties in such country, which Third Party or
Parties have, in the aggregate, at least [*]% of the unit volume of sales for such Product in any calendar quarter in such country, as measured by IMS. 

    1.11 "Improvement" all mean any new or useful invention, process or improvement, patentable or unpatentable, relating to
or arising from the Licensed Technology, conceived or first reduced to practice or demonstrated to have utility by either Party, its Affiliates or sublicensees during the term of this Agreement,
including, without limitation, any Products developed and marketed by SGI, its Affiliates or sublicensees. 

    1.12 "IND" shall mean an investigational new drug application filed with the FDA. 

    1.13 "Ixsys Field" shall mean the in vivo diagnosis or treatment of solid tumors in humans through the use of one or
more antibodies. 

    1.14 "Ixsys Patents" shall have the meaning assigned thereto in Exhibit A. 

    1.15 "Ixsys Product" shall mean a Product covered by the Licensed Technology relating to the Ixsys Patents in the Ixsys
Field that is (i) a diagnostic product, containing one or more Program Materials (as such term is defined in the Ixsys Agreement), for use in the in
vivo detection of solid tumors in humans, or (ii) the final dosage formulation of a product incorporating pharmaceutical compositions containing Program Materials for
use in the treatment of solid tumors in humans, regardless of the route of administration. 

    1.16 "Know-How" shall mean any and all technical data, information, material and other know-how,
if any, currently owned, developed or acquired by BMS that (i) arise from the Residual Program, or (ii) are necessary or useful to practice the Patents. 

    1.17 "Licensed Technology" shall mean the Patents and antibodies set forth in  Exhibit A, and, with respect to each Patent, the Know-How that is necessary or useful to
practice such Patent, collectively. When no
Patent(s) is specified, "Licensed Technology" shall mean all of the Patents, antibodies and Know-How, collectively. 

    1.18 "Major Market" shall mean each of France, Germany, Japan, Italy, Spain, the United Kingdom and the United States. 

    1.19 "Net Sales" shall mean, with respect to any Product, the gross amount invoiced for such Product by SGI, its
Affiliates, and sublicensees to Third Parties, less deductions for: (i) trade, quantity 

2

 

and/or cash discounts, allowances and rebates (including, without limitation, promotional or similar allowances) actually allowed or given; (ii) freight, postage, shipping, insurance and
transportation expenses and similar charges (in each instance, if separately identified in such invoice); (iii) credits or refunds actually allowed for rejections, defects or recalls of such
Product, outdated or returned Product, or because of rebates or retroactive price reductions; and (iv) sales, value-added, excise taxes, tariffs and duties, and other taxes directly related to
the sale, to the extent that such items are included in the gross invoice price (but not including taxes assessed against the income derived from such sale). Such amounts shall be determined from the
books and records of SGI, its Affiliates or its sublicensees, maintained in accordance with the reasonable accounting principles used by such entity, consistently applied. 

    In
the event that a Product is sold as part of a Combination Product (as defined below), the Net Sales from the Combination Product, for the purposes of determining royalty payments,
shall be determined by multiplying the Net Sales of the Combination Product (calculated using the standard Net Sales definition) during the applicable royalty reporting period by the fraction A/A+B,
where A is the average sale price of the Product when sold separately in finished form and B is the average sale price of the other product(s) included in the Combination Product when sold separately
in finished form, in each case during the applicable royalty reporting period or, if sales of both the Product and the other product(s) did not occur in such period, then in the most recent royalty
reporting period in which sales of both occurred. In the event that such average sale price cannot be determined for both the Product and all other product(s) included in the Combination Product, Net
Sales for the purposes of determining royalty payments shall be calculated by multiplying the Net Sales of the Combination Product (calculated using the standard Net Sales definition) by the fraction
C/C+D, where C is the fair market value of the Product and D is the fair market value of all other pharmaceutical product(s) included in the Combination Product. In such event, SGI shall in good faith
make a determination of the respective fair market values of the Product and all other pharmaceutical products included in the Combination Product, and shall notify BMS of such determination and
provide BMS with data to support such determination. BMS shall have the right to review such determination and supporting data, and to notify SGI if it disagrees with such determination. 

    As
used above, the term "Combination Product" shall mean any pharmaceutical product which comprises the Product and any other active compounds and/or ingredients. 

    1.20 "Party" shall mean BMS or SGI and, when used in the plural, shall mean BMS and SGI. 

    1.21 "Patents" shall mean all patents and patent applications throughout the Territory, and any substitutions,
extensions, renewals, continuations, continuations-in-part, divisions, patents-of-addition and/or reissues or extensions thereof, which (i) are
at present owned or controlled by BMS and are set forth in Exhibit A, or (ii) are owned or controlled by SGI or jointly by BMS and SGI, as
the case may be, and cover any Improvement. 

    1.22 "Person" shall mean any natural person, corporation, firm, business trust, joint venture, association,
organization, company, partnership or other business entity, or any government or any agency or political subdivision thereof. 

    1.23 "Product" shall mean any pharmaceutical formulation developed by SGI, its Affiliates or sublicensees during the
term of this Agreement, the manufacture, use or sale of which is either: (i) based upon or derived from any of the Know-How; or (ii) covered by one or more Patents and, but
for this Agreement, would constitute an infringement of a Valid Claim thereof. "Product" shall include Residual Product. 

    1.24 "Research Program" shall have the meaning assigned thereto in Section 5.2(f). 

    1.25 "Residual Product" shall mean any Product, the manufacture, use or sale of which is based upon or derived from any
of the Residual Program Licensed Technology. 

3

 

    1.26 "Residual Program" shall have the meaning assigned thereto in Section 5.2(f). 

    1.27 "Results" shall mean any and all technical data, information, material and other know-how, whether
patentable or not, including but not limited to analytical methodology, chemical, toxicological, pharmacological and clinical data, formulae, procedures, drafts and/or protocols, techniques, and
results of experimentation and testing, developed or acquired by SGI, its Affiliates or sublicensees during the term of this Agreement which relate to the Licensed Technology, except Improvements.
"Results" shall include data and information generated for the purpose of obtaining marketing approvals of the Products in any country in the Territory. The Results shall be owned by SGI. 

    1.28 "Royalty Term" shall mean, with respect to each Product in each country in the Territory, the period of time
commencing on the Effective Date and ending on the date that is the latest of (i) ten years from the date of the first Commercial Sale of such Product in such country, (ii) the
expiration of the last to expire of the Valid Claims necessary for the manufacture, use and sale of such product in such country, or (iii) with respect only to the Licensed Technology that
relates to, or is necessary or useful to practice, the Washington Patents, the twelfth anniversary from the First Commercial Sale of Unpatented Product (as such term is defined in the Washington
Agreement). 

    1.29 "Territory" shall mean the world. 

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

    1.31 "Valid Claim" shall mean a claim of any Patent which has not been held invalid or unenforceable by final decision
of a court or other governmental agency of competent jurisdiction, unappealable or unappealed within the time allowed for appeal, and which is not admitted to be invalid or unenforceable through
reissue, disclaimer or otherwise. 

    1.32 "Washington Patents" shall have the meaning assigned thereto in  Exhibit A. 

    1.33 "Washington Product" shall mean a Product covered by the Licensed Technology relating to the Washington Patents
that (i) the manufacture, use or sale of which would, but for the license to BMS under the Washington Agreement and the sublicense to SGI hereunder with respect to the Washington Licensed
Technology, infringe a Valid Claim of the Assigned Patent Rights (as such term is defined in the Washington Agreement), or (ii) is not covered by such Assigned Patent Rights which contains
antibody G28-5, fragments of antibody G28-5, a chimeric antibody made using antibody G28-5 or the Hybridoma (as such term is defined in the Washington Agreement),
or fragments of such chimeric antibody. 

2.  EXCHANGE OF DATA AND MATERIALS.

    2.1  Licensed Technology.  As soon as practicable after the Effective Date, but in any event within
90 days thereafter, BMS shall deliver to SGI copies of all data, studies and materials comprising the Licensed Technology in BMS's possession then reasonably available. During the term of this
Agreement, BMS shall deliver to SGI copies of all material clinical data that relate to the Licensed Technology that come into BMS's possession after the Effective Date. BMS shall have no obligation
to provide any scientific, technical or other consulting or assistance of any kind to SGI with respect to the Licensed Technology. 

    2.2  Transfer of INDs.  Promptly after the Effective Date, but in any event within 90 days
thereafter, BMS shall transfer to SGI ownership of all INDs and other regulatory filings, if any, filed by BMS with respect to any products based upon, derived from or related to any of the
Know-How or covered by one or more Patents. In addition, within 10 days after the Effective Date, BMS shall deliver to the FDA a letter transferring to SGI sponsorship of BMS's
BR96-sFv-PE4O program. All INDs and 

4

 

other regulatory filings filed with respect to any Products after the Effective Date shall be owned by SGI. 

    2.3  Supply of Materials by SGI.  Within 14 days after BMS's request therefor, SGI will supply BMS
with samples of any materials previously transferred to SGI by BMS. BMS shall be responsible for, and pay within 60 days after receipt of an invoice therefor, all of the reasonable
out-of-pocket costs incurred by SGI in connection with the shipment of such samples. 

    2.4  Exceptions and Limitations.  All of the information exchanged by the Parties pursuant to this
Section 2 shall be deemed to be Confidential Information and shall be subject to the confidentiality provisions of Section 12. 

3.  DEVELOPMENT AND COMMERCIALIZATION.

    3.1  Development Obligations.  Subject to Section 3.5, SGI shall, at its own expense, use all
commercially reasonable efforts, consistent with the efforts of companies of comparable size and financial resources as SGI, to develop Products, which efforts shall include the performance of all
studies necessary to obtain approval for each indication of such Products from governmental agencies in all Major Markets in the Territory where governmental approval is necessary in order to market
Products in such countries. During the 18-month period commencing on the Effective Date, such efforts also shall include the activities set forth in Section 13.2(ii). 

    3.2  Conduct of Development by SGI.  During the term of this Agreement, SGI shall: 

    (a) undertake
its development obligations, as set forth in this Agreement, and such other activities which are reasonably contemplated to be necessary for the
commercial success of the Products; 

    (b) conduct
all research pursuant to this Agreement in good scientific manner, and in compliance in all material respects with all requirements of applicable laws,
rules and regulations, and all other requirements of any applicable good laboratory or clinical practices to attempt to achieve its objectives efficiently and expeditiously; 

    (c) within
60 days following the end of each six-month period during the term of this Agreement, furnish BMS with written status reports, in summary
form, on all SGI activities under this Agreement during such six-month period; 

    (d) file
for marketing approval following the completion of the development of any Product in all Major Markets in the Territory, in a time-frame consistent
with the size and financial resources of SGI; and 

    (e) allow
representatives of BMS, upon reasonable notice and during normal business hours, to visit the facilities where the research is being conducted; provided that
such visits shall not be made more than two times per calendar year. 

    3.3  Records.  SGI shall maintain records, in sufficient detail and in good scientific manner, which
shall be complete and accurate and shall fully and properly reflect all work done and results (including, without limitation, the Results) achieved in the performance of its development obligations
under this Agreement (including all data in the form required under all applicable laws and regulations). 

    3.4  Commercialization Responsibilities.  Subject to Section 3.5, during the term of this
Agreement, following the completion of the development of any Product, SGI and/or its Affiliates or sublicensees shall: 

    (a) Market
and sell such Product under a trademark or trademarks owned or acquired by SGI. SGI shall be solely responsible for all matters relating to such
trademark(s), including without limitation the registration, maintenance and prosecution of such trademark(s) in each country in 

5

 

the Territory where such Product is being marketed and sold. SGI shall bear all liability of any kind with respect to such trademark(s) and the use of such trademark(s) by SGI, its Affiliates and its
sublicensees. 

    (b) Promptly
provide BMS with a copy of all reasonably material correspondence to or from health authorities in any country in the Territory relating to any material
development affecting such Product (including both its approval and labeling), and, within one month of receipt by SGI, its Affiliates or sublicensees, SGI shall provide, or cause its Affiliates or
sublicensees to provide, BMS with copies of all approvals and labeling changes received from the health authorities in any country in the Territory. 

    (c) Initiate
a commercial launch and diligently promote the sale of such Product in each Major Market in the Territory as soon as practicable after receiving all
governmental approvals (including reimbursement price approval, if any) necessary to market and sell such Product in such country. 

    3.5  Market Conditions.  SGI's development and commercialization diligence obligations set forth in this
Section 3 with respect to any Product shall be required only to the extent that such Product warrants such efforts in light of then prevailing market conditions, including the existence of new
or more competitive technologies. 

4.  GRANT OF LICENSE AND OTHER RIGHTS.

    4.1  License Grant.  

    (a) Subject
to the terms and conditions of this Agreement and, with respect to the licenses granted to BMS thereunder, of the respective BMS In-Licenses,
BMS hereby grants to SGI a right and license (or, in the case of Patents licensed to BMS under the BMS In-Licenses, a sublicense), under the Licensed Technology, to make, have made, use,
offer to sell, sell and have sold Products (except as set forth in Section 4.1(b)) in the relevant Field, as determined under Section 4.1(d), and in the Territory. 

    (b) Notwithstanding
Section 4.1(a): 

    (i)  The
right and sublicense granted in Section 4.1(a) under the Licensed Technology relating to the Enzon Patents shall be to make, have made, use, sell and
have sold Enzon Products only; 

    (ii) The
right and sublicense granted in Section 4.1(a) under the Licensed Technology relating to the Ixsys Patents shall be to make, have made, use, sell and
have sold Ixsys Products only; and 

    (iii) The
right and sublicense granted in Section 4.1(a) under the Licensed Technology relating to the Washington Patents shall be to make, have made, use, sell
and have sold Washington Products only. 

    (c) With
respect to the Licensed Technology, the right and license granted to SGI under Section 4.1(a) shall be either exclusive or partially exclusive or
non-exclusive, as set forth in Exhibit A. Except as set forth in this Agreement: (i) BMS shall retain no right to use the
Licensed Technology for which SGI is granted a right and license that is exclusive; (ii) BMS shall retain the right to use outside the Field the Licensed Technology for which SGI is granted a
right and license that is partially exclusive; and (iii) BMS shall retain all rights to use the Licensed Technology for which SGI is granted a right and license that is
non-exclusive. SGI acknowledges that the right and license granted to SGI under this Agreement with respect to Licensed Technology licensed to BMS under the BMS In-Licenses is
subject to all of the rights therein retained by the respective licensors thereunder. 

6

 

    (d) Subject to the limitations set forth in Section 4.1(b), the field (the "Field") with respect to Licensed Technology for which SGI is granted a right and
license that is exclusive under Section 4.1(c) shall be the treatment and diagnosis of conditions and diseases in humans and animals. The Field with respect to Licensed Technology for which SGI
is granted a right and license that is partially exclusive under Section 4.1(c) shall be: (i) if Exhibit A indicates that such
license is partially exclusive for linkers, all monoclonal antibody targeting applications; or (ii) if Exhibit A indicates that such
license is partially exclusive for cancer, the treatment and diagnosis of cancer in humans. The Field with respect to Licensed Technology for which SGI is granted a right and license that is
non-exclusive under Section 4.1(c) shall be the treatment and diagnosis of cancer in humans. Notwithstanding the foregoing, the Field with respect to the G28-5 Licensed
Technology shall be for the use of the antibody G28-5 fused with a toxin for the treatment of cancer in humans. 

    4.2  Right to Sublicense or Sub-sublicense.  

    (a) Subject
to Sections 4.2(b) and (c), SGI shall have the right to grant sublicenses or sub-sublicenses, without restriction on use, to Third Parties under
the license and sublicense granted exclusively to SGI under this Agreement. Subject to Sections 4.2(b) and (c), SGI shall have the right to grant sublicenses or sub-sublicenses, solely for
purposes of sponsoring research consistent with SGI's development obligations under Section 3 or for purposes of manufacturing, marketing or selling Products the development of which was
commenced by SGI during the term of this Agreement, to Third Parties under the license and sublicense granted partially exclusively or non-exclusively to SGI under this Agreement. In the
event of any such sublicensing or sub-sublicensing, SGI shall submit to BMS all material terms of any proposed sublicense or sub-sublicense for approval by BMS, which
submission BMS shall consider in good faith and which approval BMS shall not unreasonably withhold. BMS shall provide to SGI its approval, or the basis for withholding approval, of such sublicense or
sub-sublicense within 20 days after submission by SGI of a proposed term sheet containing all of the material terms of the proposed sublicense or sub-sublicense. The
only basis upon which BMS may reasonably withhold its approval of a proposed sublicense or sub-sublicense shall be its reasonable determination that the
proposed sublicensee or sub-licensee does not have the resources or experience necessary to fulfill its obligations under the proposed sublicense or sub-sublicense. BMS may not
reasonably withhold its approval based on competitive concerns. [*] 

    (b) SGI
shall be primarily responsible for all payments due and the making of reports under this Agreement by its sublicensees and shall guarantee their compliance with
all applicable terms of this Agreement. Each prospective sublicensee or sub-sublicensee shall agree in writing (i) (A) to maintain insurance coverage at the same levels and on the
same terms and conditions as set forth in Section 11.5, which insurance shall name BMS as an additional insured, or (B) to maintain a self-insurance plan that substantially
complies with the requirements of Section 11.5, provided that BMS reasonably determines in advance in writing that such sublicensee's or sub-sublicensee's self-insured
plan is adequate given its financial condition, and, at BMS's request (but not more than annually), such sublicensee or sub-sublicensee provides written evidence of such
self-insurance; and (ii) to keep books and records and permit BMS to review such books and records pursuant to Sections 7.3, 7.4 and 7.5 and to observe all other applicable terms of
this Agreement. 

    (c) In
the event of a breach by a sublicensee of SGI in the observance of applicable terms of this Agreement, BMS shall be entitled to proceed, at BMS's sole
discretion, against such sublicensee and/or SGI to enforce this Agreement. In furtherance of the foregoing and BMS's rights thereunder, each sublicense granted by SGI pursuant to this
Section 4.2 shall explicitly provide that BMS is a third party beneficiary of such sublicense. 

7

 

    4.3  Reservation of Rights by BMS.  SGI acknowledges and agrees that, notwithstanding the right and
license granted to SGI under this Agreement, BMS retains the right to use the Licensed Technology for internal research purposes and in connection with any research collaboration with a Third
Party(ies) commenced prior to the Effective Date; provided, however, that BMS may sublicense the Licensed Technology relating to one or more of the Patents set forth in Table 5 of  Exhibit A to
Third Parties only for purposes of developing, manufacturing, marketing or selling products the development of which was commenced
by BMS. 

5.  INITIAL PAYMENT; ROYALTIES.

    5.1  Initial Payment.  In partial consideration of the right and license granted by BMS to SGI under this
Agreement, SGI shall pay BMS a license fee of $[*] within 10 days after the date of this Agreement (the
date on which such payment is made, the "Effective Date"). Notwithstanding any other provision of this Agreement, such fee shall be non-refundable and non-creditable against
any other payments to be made by SGI under this Agreement. 

    5.2  Royalties.  In further consideration of the right and license granted by BMS to SGI under this
Agreement, subject to Sections 5.3, 5.4 and 9.1(b), during the Royalty Term, SGI shall pay to BMS a royalty on Net Sales of Products commencing on the First Commercial Sale of any Product by SGI, its
Affiliates or its sublicensees in any country in the Territory, as follows: 

    (a) With
respect to Products covered by Licensed Technology relating to one or more of the Patents set forth in Table 1 of  Exhibit A (such Licensed Technology, the "BR96 sFv-PE4O Program"), at the rate of
[*]%. 

    (b) With
respect to Products covered by Licensed Technology relating to one or more of the Patents set forth in Table 2 of  Exhibit A (such Licensed Technology, the "BR96/Drug Conjugate Program"), at the
rate of [*]% on annual Net Sales up to
and including $[*], and [*]% on annual Net Sales in excess of $[*]; provided that such thresholds shall be reduced pro rata with
respect to any partial year for which royalties under this Section 5.2(b) are to be calculated. 

    (c) With
respect to Products covered by Licensed Technology relating to one or more of the Patents set forth in Table 3 of  Exhibit A (such Licensed Technology, the "G28-5 sFv/Immunotoxin Program"), at the
rate of [*]%. 

    (d) With
respect to Products covered by Licensed Technology relating to one or more of the Patents set forth in Table 4 of  Exhibit A (such Licensed Technology, the "BDl Program"), at the rate of [*]%.

    (e) With
respect to Products covered by Licensed Technology relating to one or more of the Patents set forth in Table 5 of  Exhibit A (such Licensed Technology, the "Adept Program"), at the rate of [*]%.

    (f)  With
respect to Residual Products covered by Licensed Technology relating to one or more of the Patents or the antibodies set forth in Table 6 of  Exhibit A (such Licensed Technology, the "Residual
Program") (each of the BR96 sFv-PE4O Program, BR96/Drug Conjugate Program,
G28-5 sFv/Immunotoxin Program, BD1 Program, Adept Program and the Residual Program, a "Research Program"), at the rate of [*]%. 

    (g) With
respect to Products covered by Licensed Technology relating solely to one or more of Patents 5,491,088, 5,204,244, 5,202,238, 5,482,856 and
[*], [*], [*] and [*] and not covered by any of the other Licensed Technology comprising any Research
Program, at the rate of [*]%. 

    (h) Notwithstanding
the royalty rates set forth in Sections 5.2(a)-(g), with respect to Products having an ex vivo
application that are covered by Licensed Technology, at the rate of [*]%. 

8

 

    5.3  Third Party Royalties.  

    (a) SGI,
at its sole expense, shall pay all royalties accruing to any Third Party after the Effective Date that result from SGI's or its Affiliates' or sublicensees'
activities and that SGI determines, in its reasonable business judgment, are necessary in order to exercise SGI's rights hereunder to make, have made, use, sell or have sold any Product (all such
royalties, "Third Party Royalties"). 

    (b) SGI
shall be entitled to a credit against royalties payable to BMS under this Agreement as follows: 

    (i)  If
the aggregate Third Party Royalties and royalties under Section 5.2(a) payable to BMS by SGI with respect to Net Sales of Products covered by the
BR96-sFv-PE4O Program during a calendar quarter exceed an amount equal to [*]% of such Net Sales, then SGI shall be entitled to a credit against
royalties payable to BMS under Section 5.2(a) with respect to such Net Sales in an amount equal to [*]% of such excess, but in no event shall the royalties due under
Section 5.2(a) be reduced to less than [*]% of such Net Sales. 

    (ii) If
the aggregate Third Party Royalties and royalties under Section 5.2(b) payable to BMS by SGI with respect to Net Sales of Products covered by the
BR96/Drug Conjugate Program during a calendar quarter exceed an amount equal to [*]% of such Net Sales, then SGI shall be entitled to a credit against royalties payable to BMS
under Section 5.2(b) with respect to such Net Sales in an amount equal to [*]% of such excess, but in no event shall the royalties due under Section 5.2(b) be
reduced to less than [*]% of such Net Sales. 

    (iii) If
the aggregate Third Party Royalties and royalties under Section 5.2(c) payable to BMS by SGI with respect to Net Sales of Products covered by the
G28-5 sFv/Immunotoxin Program during a calendar quarter exceed an amount equal to [*]% of such Net Sales, then SGI shall be entitled to a credit against royalties
payable to BMS under Section 5.2(c) with respect to such Net Sales in an amount equal to [*]% of such excess, but in no event shall the royalties due under
Section 5.2(c) be reduced to less than [*]% of such Net Sales. 

    5.4  Reduction for Generic Competition.  With respect to any country in the Territory where a Product is
a Generic Product, the royalties payable to BMS under Section 5.2 with respect to Net Sales of such Product in such country shall be reduced by 50%, commencing with the calendar quarter during
which such Product first becomes a Generic Product in such country. Such reduction shall be in lieu of any other reduction with respect to such royalties under this Agreement to which SGI otherwise
would be entitled. 

    5.5  Obligation to Pay Royalties.  In the event that more than one royalty rate under Section 5.2
applies with respect to the Net Sales of any Product, SGI shall pay royalties with respect to such Net Sales at the highest applicable rate. There shall be no obligation to pay royalties to BMS under
this Section 5 on sales of Products among SGI, its Affiliates and its sublicensees, but in such instances the obligation to pay royalties shall arise upon the sale by SGI, its Affiliates or its
sublicensees to unrelated Third Parties. 

6.  BMS IN-LICENSE EXPENSES.

    6.1  Generally.  In further consideration of the right and license granted to SGI under this Agreement,
SGI shall be solely responsible for the payment of all costs, fees, milestone payments, royalties and other expenses (collectively, "BMS In-License Expenses") that accrue and become
payable by BMS under the several BMS In-Licenses, as may be amended or renegotiated from time to time, on or after the Effective Date, and for the making of all required reports associated
with any such payments. All royalties paid by SGI with respect to Net Sales of a Product that is covered by the BR96-sFv-PE4O Program, the BR96/Drug Conjugate Program or the
G28-5 sFv/Immunotoxin Program 

9

 

that constitute BMS In-License Expenses shall be deemed to be Third Party Royalties with respect to Net Sales of such Product for purposes of Section 5.3. SGI acknowledges that it
has received a complete and correct copy of all of the BMS In-Licenses. 

    6.2  Notices of Payment.  

    (a) Within
20 days after SGI pays any BMS In-License Expense other than royalties, SGI shall provide notice of such payment to BMS. Each such notice
shall set forth the amount of such payment and the reason such payment was made. 

    (b) In
conjunction with each royalty statement provided by SGI under Section 7.1, SGI shall provide a statement of all royalties paid by SGI as BMS
In-License Expense since the date of the last previous such statement provided by SGI. Each such report shall set forth the calculation of the royalties paid by SGI as BMS
In-License Expenses during the relevant period. 

    6.3  Payments Non-Creditable.  Except as expressly set forth in Section 5.3(b), SGI's
payment of BMS In-License Expenses shall not be creditable against any other payments to be paid by SGI under this Agreement. 

7.  PAYMENTS AND REPORTS.

    7.1  Payment.  All royalty payments payable to BMS under this Agreement shall be paid quarterly within
60 days of the end of each calendar quarter. Each such payment shall be accompanied by a statement, Product-by-Product and country-by-country of
the amount of Net Sales during such quarter and the amount of royalties due on such Net Sales. 

    7.2  Mode of Payment.  SGI shall make all payments required under this Agreement as directed by BMS from
time to time in U.S. Dollars. Whenever for the purpose of calculating royalties, conversion from any foreign currency shall be required, such conversion shall be at the rate of exchange published in
The Wall Street Journal, Eastern U.S. edition, for the last business day of the calendar quarter in which such sales were made. 

    7.3  Records Retention.  SGI, its Affiliates and its sublicensees shall keep complete and accurate
records (specifically including originals or copies of documents supporting entries in the books of account) pertaining to the sale of Products in the Territory and covering all transactions from
which Net Sales are derived for a period of three calendar years after the year in which such sales occurred or such
longer period as may be required under the respective BMS In-Licenses, and in sufficient detail to permit BMS to confirm the accuracy of royalty calculations hereunder. 

    7.4  Audit Request.  At the request of BMS, SGI, its Affiliates and its sublicensees shall permit an
independent certified public accountant appointed by BMS, at reasonable times and upon reasonable notice (but in no event more than once per calendar year), to examine those records and all other
material documents relating to or relevant to Net Sales in the possession or control of SGI, its Affiliates or its sublicensees, for a period of three years after such royalties have accrued, as may
be necessary to: (i) determine the correctness of any report or payment made under this Agreement; or (ii) obtain information as to the royalties payable for any calendar quarter in the
case of SGI's failure to report or pay pursuant to this Agreement. Said accountant shall not disclose to BMS any information other than information relating to said reports, royalties, and payments.
The results of any such examination shall be made available to both Parties. BMS shall bear the full cost of the performance of any such audit except as hereinafter set forth. If, as a result of any
inspection of the books and records of SGI or its Affiliates or its sublicensees, it is shown that SGI's royalty payments under this Agreement were less than the amount which should have been paid,
then SGI shall make all payments required to be made to eliminate any discrepancy revealed by said inspection within 15 days after BMS's demand therefor. Furthermore, if the royalty payments
made by SGI were less than 95% 

10

 

of the amount of royalty payments which should have been paid with respect to the period in question, SGI shall also reimburse BMS for the cost of such examination. 

    7.5  Taxes.  All payments due under this Agreement shall be paid in full without deduction except for
withholding taxes, if any, required by law in any country in the Territory with respect to such payment. In the event that SGI is required to withhold any tax to the revenue authorities in any country
in the Territory regarding any payment to BMS due to the laws of such country, such amount shall be deducted by SGI, and it shall notify BMS and promptly furnish BMS with copies of any tax certificate
or other documentation evidencing such withholding. 

    7.6  Interest on Late Payments.  SGI shall pay interest on any payment to BMS under this Agreement that
is not made by the date due hereunder at a rate equal to the prime rate plus 2%, compounded monthly, obtained from The Wall Street Journal, Eastern U.S.
edition, on the business day next preceding the date such payment was due, from such date until payment in full has been made. 

    7.7  Obligations Under Ixsys Agreement.  Notwithstanding any other provision of this Agreement, with
respect to Ixsys Products, SGI shall make reports to Ixsys, keep and maintain records of Net Sales and grant access to such records by an independent accountant to the same extent required of BMS
under the Ixsys Agreement. 

8.  REPRESENTATIONS AND WARRANTIES.

    8.1  Representations and Warranties of Both Parties.  Each Party represents and warrants to the other
Party that: (i) it is free to enter into this Agreement; (ii) in so doing, it will not violate any other agreement to which it is a party; and (iii) it has taken all corporate
action necessary to authorize the execution and delivery of this Agreement and the performance of its obligations under this Agreement. 

    8.2  Representation and Warranty of BMS.  BMS represents and warrants to SGI that: (i) BMS has
obtained all consents necessary to grant the right and license granted to SGI under this Agreement, including without limitation all consents required under the respective BMS In-Licenses;
(ii) all payments and obligations that accrue under the BMS In-Licenses prior to the Effective Date have been paid, fulfilled or otherwise discharged, or will be paid, fulfilled or
discharged when due; (iii) neither party to the respective BMS In-Licenses has given the other party notice that such other party is in breach under such BMS In-License;
and (iv) BMS has provided to SGI a complete copy of the BMS In-License Agreements. 

    8.3  BMS Disclaimer of All Representations and Warranties.  EXCEPT AS SET FORTH IN SECTIONS 8.1 AND 8.2,
BMS DOES NOT MAKE ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING BUT NOT LIMITED TO WARRANTIES OF QUALITY, PERFORMANCE, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND
NON-INFRINGEMENT, WITH RESPECT TO THE LICENSED TECHNOLOGY, THE PRODUCTS OR ANY MATERIALS TRANSFERRED TO SGI UNDER THIS AGREEMENT. SGI acknowledges and agrees that BMS is licensing the
Licensed Technology to SGI strictly on an "AS IS, WHERE IS" basis and that SGI shall have no claims or causes of action of any kind against BMS with respect thereto. 

9.  PATENTS; IMPROVEMENTS. 

    9.1  Patent Filing, Maintenance and Prosecution.  

    (a) Subject
to Section 9.3, with respect to Patents that are licensed to SGI exclusively under this Agreement and with respect to Improvements relating to or
arising from such Patents, SGI shall have
the first right, in its sole discretion and at its sole cost and expense, to determine the strategies for prosecuting such Patents and to determine whether to maintain such Patents in each country in
the Territory. With respect to Patents that are licensed to SGI partially exclusively or non-exclusively under this Agreement and with respect to Improvements relating to or arising front 

11

 

such Patents, BMS shall have the first right, in its sole discretion and at its sole cost and expense, to determine the strategies for prosecuting such Patents and to determine whether to maintain
such Patents in each country in the Territory. 

    (b) In
the event that the Party having the first right to prosecute and maintain a Patent under Section 9.1(a) elects to abandon the prosecution or maintenance
of any such Patents in any country in the Territory, such Party shall give the other Party notice thereof at least 60 days prior to the date on which such other Party is required by law to make
a filing in order to preserve rights to patent protection in such country, and the other Party shall have the right to do so, at its own expense, in the name of the owning or controlling Party. In the
event that BMS elects to abandon the prosecution or maintenance in any country in the Territory of any Patent licensed to SGI partially exclusively or non-exclusively under this Agreement
and SGI elects to assume such prosecution or maintenance, then SGI shall be entitled to a credit against royalties payable to BMS pursuant to Section 5.2 with respect to Net Sales of any
Product covered by such Patent equal to the amount of the actual costs and expenses (including reasonable attorneys' fees) incurred by SGI in connection with such prosecution or maintenance. In the
event that SGI elects to abandon the prosecution or maintenance in any country in the Territory of any Patent licensed to SGI exclusively under this Agreement and BMS elects to assume such prosecution
or maintenance, then SGI's right and license under this Agreement in such country with respect to the Licensed Technology relating to such Patent shall terminate. 

    9.2  Information; Consultation; Cooperation.  

    (a) With
respect to the filing, prosecution and maintenance of any Patent pursuant to Section 9.1(a), the filing Party shall keep the other Party informed of its
decisions and actions in this regard by providing a report thereof to such other Party. Further, in connection with any such filing, prosecution or maintenance by either Party, such Party shall
consult with the other Party and in good faith consider and give due respect to such other Party's position with respect thereto. In the event that the sole owning or controlling Party elects not to
file for patent protection or prosecute or maintain such Patents and the other Party elects to do so, such owning or controlling Party shall cooperate with the other Party in such filing, prosecution
or maintenance. 

    (b) In
addition, with respect to the filing, prosecution and maintenance of any Patent pursuant to Section 9.1(a) that covers an Improvement by a Party that does
not solely own such Improvement, the
filing Party shall cooperate with the other Party in determining strategies for such filing, prosecution and maintenance, and the filing Party shall make its patent counsel available for consultation
with patent counsel for the other Party for this purpose. 

    9.3  Prior Patent Rights.  Notwithstanding anything to the contrary in this Agreement, with respect to
any Patents that have been licensed to BMS under the BMS In-Licenses, the rights and obligations of the Parties under Sections 9.1 and 9.2 with respect thereto shall be subject to BMS's
licensors' rights to participate in prosecution and maintenance thereof, in accordance with the terms and conditions of the relevant BMS In-Licenses. 

    9.4  Improvements.  

    (a) Improvements
that are made by an employee or agent of SGI, solely or jointly other than with an employee or agent of BMS, shall be owned by SGI. Improvements that
are made jointly by employees or agents of SGI and BMS shall be jointly owned by SGI and BMS and treated as joint inventions under U.S. laws applicable to joint inventions. Improvements that are made
by an employee or agent of BMS, solely or jointly other than with an employee or agent of SGI, shall be owned by BMS. Except as otherwise set forth in this Agreement, each of BMS and SGI shall retain
its unrestricted rights to make, have made, use, sell and have sold all Improvements that are owned by it either solely or jointly with the other Party. 

12

 

    (b) In the event that, during the term of this Agreement, either Party (the "proprietor Party") develops or acquires the rights to (including the right to license or
sublicense) any Improvements to Licensed Technology that is licensed to SGI under this Agreement partially exclusively or non-exclusively, the proprietor Party shall promptly disclose full
and complete information relating to such Improvements to the other Party (the "non-proprietor Party"). 

    (c) With
respect to any such Improvements, the proprietor Party shall grant to the non-proprietor Party a royalty-free,
non-exclusive right and license, including the right to grant sublicenses thereof, to use such Improvements during the term of this Agreement: (i) with respect to such right and
license granted to SGI by BMS, solely for the manufacture, use or sale of the Products pursuant to the right and license granted to SGI under this Agreement, and (ii) with respect to such right
and license granted to BMS by SGI, (A) if such Improvement is to Licensed Technology that is licensed to SGI under this Agreement partially exclusively for cancer, for any purpose that does not
relate to human cancer; (B) if such Improvement is to Licensed Technology that is licensed to SGI under this Agreement partially
exclusively for linkers, for any purpose that does not relate to monoclonal antibody targeting applications; and (C) if such Improvement is to Licensed Technology that is licensed to SGI under
this Agreement non-exclusively, for any purpose. Notwithstanding the foregoing, the non-proprietor party shall not be entitled to use any Improvement relating to or arising
from the Adept Program to develop, make, use or sell any product (including any Product) having the same primary mode of action as any product (including any Product) being developed, marketed or sold
by the proprietor party. 

    9.5  Prior Improvement Rights; Reporting.  Notwithstanding anything to the contrary in this Agreement,
SGI's rights in and to any Improvements relating to or arising from any Patents that have been licensed to BMS under the BMS In-Licenses shall be subject to BMS's licensors' rights therein
under the respective BMS In-Licenses. Each Party shall be responsible for making all reports to such licensors concerning its respective Improvements. 

10.    PATENT ENFORCEMENT: INFRINGEMENT.  

    10.1  Patent Enforcement.  As soon as it shall have knowledge thereof, each Party shall promptly advise
the other Party of any infringement of the Patents in the Territory by a Third Party. With respect to any Patent that is licensed to SGI exclusively under this Agreement, SGI shall have the first
right, but not the duty, to institute infringement actions against Third Parties. With respect to any Patent that is licensed to SGI partially exclusively or non-exclusively under this
Agreement, BMS shall have the first right, but not the duty, to institute infringement actions against Third Parties; provided, however, that SGI shall have the right, at its sole discretion, to
participate therein at its own expense. For so long as SGI shall continue to participate materially in any such action, BMS shall consult with SGI and take into account each Party's relative interests
in such Patent and such infringement action before entering into any settlement arrangement or other amicable arrangement with respect thereto. If the Party having the first right to institute an
infringement proceeding against an offending Third Party does not do so within 90 days after receipt of notice from the other Party, such other Party shall have the right, but not the duty, to
institute such an action. The costs and expenses of any such action (including reasonable fees of attorneys and other professionals) shall be borne by the Party instituting the action, or, if the
Parties elect to cooperate in instituting and maintaining such action, such costs and expenses shall be borne by the Parties in such proportions as they may agree in writing. Each Party shall execute
all necessary and proper documents and take such actions as shall be appropriate to allow the other Party to institute and prosecute such infringement actions. Any award paid by Third Parties as a
result of such an infringement action (whether by way of settlement or otherwise) shall be paid to the Party who instituted and maintained such action, or, if both parties instituted and maintained
such action, such award shall be allocated among the Parties in proportion to their respective contributions to the costs and expenses incurred in such action. 

13

 

    10.2  Infringement Action by Third Parties.  As soon as it shall have knowledge thereof, each Party
shall promptly advise the other Party of any infringement action instituted by a Third Party with respect to any Product or of any grounds for any such action, regardless of whether such action has
been instituted. In the event of the institution of any suit by a Third Party against SGI for patent infringement involving the manufacture, sale, distribution or marketing of any Product in the
Territory, SGI shall have the right to defend such suit at its own expense, and BMS hereby agrees to assist and cooperate with SGI, at its own expense, to the extent necessary in the defense of such
suit; provided, however, that with respect to any suit involving Patents licensed to BMS under the BMS In-Licenses, BMS shall have the right, at its sole discretion, to participate therein
at its own expense. For so long as BMS shall continue to participate materially in any such action, SGI shall not enter into any settlement arrangement or other amicable arrangement without the prior
written consent of BMS. During the pendency of such action, SGI shall continue to make all payments due under this Agreement. If, as a result of any judgment, award, decree or settlement resulting
from an action instituted by a Third Party, SGI is required to pay damages and/or a royalty to such Third Party, SGI shall be solely responsible for the payment of such damages and/or such royalties
for such Products to such Third Party and shall continue to pay royalties pursuant to this Agreement in the country which is the subject of such action. All royalties paid by SGI pursuant to this
Section 10.2 shall be deemed to constitute Third Party Royalties for purposes of Section 5.3. 

    10.3  Prior Rights.  Notwithstanding anything to the contrary in this Agreement, with respect to any
Patents that have been licensed to BMS under the BMS In-Licenses, the rights and obligations of the Parties under this Section 10 with respect thereto shall be subject to BMS's
licensors' rights to enforce and defend against infringement claims with respect to same and all other applicable provisions of the respective BMS In-Licenses. 

11.    INDEMNIFICATION.  

    11.1  By SGI.  SGI, including any successor to SGI, shall, and shall obligate its Affiliates or its
sublicensees, if any, to, indemnify and hold BMS and its Affiliates, and their respective directors, officers, employees and agents harmless from and against any and all liability, damage to or loss
of property or injury to or death of any person or persons, costs and expenses (including reasonable attorney's fees) resulting from claims arising out of: 

    (a) negligence,
recklessness or wrongful intentional acts or omissions of SGI, its Affiliates or its sublicensees, if any, and their respective directors, officers,
employees and agents, in connection with the use or development of any Licensed Technology; or 

    (b) any
warranty claims, Product recalls or any tort claims of personal injury (including death) or property damage relating to or arising out of the manufacture, use,
distribution or sale of any Product or services by SGI, its Affiliates or its sublicensees, if any, due to any negligence, recklessness or wrongful intentional acts or omissions by, or strict
liability of, SGI, its Affiliates or its sublicensees, if any, and their respective directors, officers, employees and agents. 

    11.2  By BMS.  In the event that BMS makes, has made, uses, sells or has sold any Product pursuant to
Section 13.6(c) or (d), BMS shall, and shall obligate its sublicensees, if any, to, indemnify SGI and its Affiliates, and their respective directors, officers, employees and agents with respect
thereto to the same extent as the indemnification required to be provided by SGI in Section 11.1. 

    11.3  Notice.  In the event that either Party is seeking indemnification under Section 11.1 or
Section 11.2, such Party shall inform the indemnifying Party of a claim as soon as reasonably practicable after it receives notice of the claim, shall permit the indemnifying Party to assume
direction and control of the defense of the claim (including the sole right to settle it at the sole discretion of the indemnifying Party, provided that such settlement does not impose any obligation
on the indemnified 

14

 

Party), and shall cooperate as requested (at the expense of the indemnifying Party) in the defense of the claim. 

    11.4  Complete Indemnification.  As the Parties intend complete indemnification, all costs and expenses
of enforcing this Section 11 shall also be reimbursed by the indemnifying Party. 

    11.5  Insurance.  

    (a) In
furtherance and not in limitation of any indemnity obligations of SGI under this Agreement: (i) commencing on the Effective Date and thereafter for the
period of time required hereinbelow, SGI shall obtain and maintain on an on-going basis comprehensive general liability insurance in the amount of $[*] per
occurrence and $[*] annual aggregate combined single limit for bodily injury and property damage liability; and (ii) commencing not later than
[*] prior to the first use in humans of the first potential Product and thereafter for the period of time required hereinbelow, SGI shall obtain and maintain on an
on-going basis products liability insurance (including contractual liability coverage on SGI's indemnification obligations under this Agreement) in the amount of at least
$[*] per occurrence and annual aggregate combined single limit for bodily injury and property damage liability. All of such
insurance coverage shall be maintained with a insurance company or companies having an A. M. Best rating of "A-" or better and an aggregate deductible not to exceed
$[*] per occurrence. 

    (b) Not
later than the Effective Date with respect to the comprehensive general liability coverage, and not later than 30 days prior to the first use in, humans
of the first potential Product with respect to the products liability coverage, SGI shall provide to BMS a certificate(s) evidencing all such required coverage hereunder. Thereafter SGI shall maintain
such insurance coverage without interruption during the term of this Agreement and for a period of at least 10 years after the expiration or termination of the term and shall provide
certificates evidencing such insurance coverage without interruption on an annual basis (by no later than the annual renewal date for such coverage) during the period of time for which such coverage
must be maintained. 

    (c) SGI's
insurance shall name BMS as an additional insured, shall state that such insurance is primary to any valid and collectible insurance available to BMS that
also insures the same loss for which SGI has liability pursuant to this Agreement (including, without limitation, under the indemnification provisions hereof), shall contain a cross-liability or
severability of interest clause, and shall state that BMS shall be provided at least [*] prior written notice of any cancellation or material change in the insurance policy.
SGI shall promptly provide BMS with a copy of all communications passing between SGI and the carrier(s) providing the coverage required under this Section 11.5. SGI's failure to comply with the
provisions of this Section 11.5 shall be deeded to be a material breach of this Agreement. 

12.    PUBLICATION; CONFIDENTIALITY.  

    12.1  Notification.  Both Parties recognize that the Parties may wish to publish the results of its
development efforts relating to the Products. However, both Parties also recognize the importance of acquiring patent protection on inventions. Consequently, any proposed publication by either Party
on the subject matter of any of the Licensed Technology that is licensed to SGI hereunder partially exclusively or non-exclusively, or any subject matter related thereto, shall comply with
this Section 12. At least 30 days before a manuscript is to be submitted to a publisher, the publishing Party will provide the other Party with a copy of the manuscript. If the
publishing Party wishes to make an oral presentation, it will provide the other Party with a copy of the abstract (if one is submitted) at least 30 days before it is to be submitted. The
publishing Party will also provide to the other Party a copy of the text of the presentation, including all slides, posters and any other visual aids, at least 30 days before the presentation
is made. 

15

 

    12.2  Review of Proposed Publications.  The receiving Party will review the manuscript, abstract, text
or any other material provided under Section 12.1 for the express purpose of determining whether patentable subject matter or Confidential Information (as such term is defined herein) is
disclosed. The other Party will notify the publishing Party within 30 days of receipt of the proposed publication if the other Party, in good faith, determines that patentable subject matter is
or may be disclosed, or if the other Party, in good faith, believes Confidential Information or proprietary information is or may be disclosed. If it is determined by the other Party that patent
applications should be filed, the publishing Party shall delay its publication or presentation for a period not to exceed 90 days from the other Party's receipt of the proposed publication to
allow time for the filing of patent applications covering patentable subject matter. In the event that the delay needed to complete the filing of any necessary patent application will exceed the
90-day period, the Parties will discuss the need for obtaining an extension of the publication delay beyond the 90-day period. If it is determined in good faith by the other
Party that Confidential Information or proprietary information is being disclosed, the Parties will consult in good faith to arrive at an agreement on mutually acceptable modifications to the proposed
publication to avoid such disclosure. The publishing Party of any manuscript, text or oral presentation will acknowledge the other Party for its contribution to the material being published or
presented. In addition, to the foregoing, SGI shall cooperate with BMS to allow BMS to fulfill any obligations it may have under the respective BMS In-Licenses on account of any proposed
publication by SGI. 

    12.3  Confidentiality; Exceptions.  Except to the extent expressly authorized by or required for the
performance of this Agreement or otherwise agreed in writing, the Parties agree that, for the term of this Agreement and for five years thereafter (or any longer term provided for in any BMS
In-License) the receiving Party, its Affiliates and its sublicensees (collectively, the "receiving Party") shall keep, and shall ensure that its officers and directors keep, completely
confidential and shall not publish or otherwise disclose and shall not use for any purpose inconsistent with this Agreement any information furnished to it by the disclosing Party, its Affiliates or
its sublicensees that is marked as confidential or, if furnished orally, that the disclosing Party notifies the receiving Party is confidential within 10 days after such information is
furnished, or any information developed pursuant to this Agreement (collectively, "Confidential Information"). This Section 12.3 shall not apply to information that the receiving Party can
establish: (i) is or hereafter becomes generally available to the public other than by reason of any default with respect to a confidentiality obligation; (ii) was already known to the
receiving Party when disclosed by the disclosing Party, as evidenced by prior written records; or (iii) is disclosed to the receiving Party by a Third Party who reasonably was not known by the
receiving Party to be in default of any confidentiality obligation to the disclosing Party. 

    12.4  Exceptions.  

    (a) The
restrictions contained in Section 12.3 shall not apply to Confidential Information that (i) is submitted by the receiving Party to governmental
authorities to facilitate the issuance of marketing approvals for a Product, provided that reasonable measures shall be taken to assure confidential treatment of such information; (ii) is
provided by the receiving Party to Third Parties under appropriate terms and conditions, including confidentiality provisions equivalent to those in this Agreement, for
consulting, manufacturing development, manufacturing, external testing and marketing trials; or (iii) is otherwise required to be disclosed in compliance with applicable laws or regulations or
order by a court or other regulatory body having competent jurisdiction; provided that if a receiving Party is required to make any such disclosure of the other Party's Confidential Information it
will, except where impracticable for necessary disclosures, for example to physicians conducting studies or to health authorities, give reasonable advance notice to the other Party of such disclosure
requirement and, except to the extent inappropriate in the case of patent applications, will use its best efforts to secure confidential treatment of such Confidential Information required to be
disclosed. 

16

 

    (b) Nothing in Section 12.3 shall prevent SGI: (i) in connection with efforts to secure financing at any time during the term of this Agreement, from
issuing statements and sharing information as to SGI's agreements with BMS, achievements made, and the status of the work being done, under this Agreement, so long as such statements or information do
not jeopardize the ability to obtain patent protection on Improvements or disclose technical or scientific Confidential Information; or (ii) from issuing statements that SGI determines to be
necessary to comply with applicable law (including the disclosure requirements of the U.S. Securities and Exchange Commission, Nasdaq or any other stock exchange on which securities issued by SGI are
traded); provided that, in the case of statements made to or information shared with the general public, to the extent practicable under the circumstances, SGI shall provide BMS with a copy of the
proposed text of such statements sufficiently in advance of the scheduled release thereof to afford BMS a reasonable opportunity to review and comment upon the proposed text. 

    12.5  Limitations on Use.  Each Party shall use, and cause each of its Affiliates and its sublicensees
to use, any Confidential Information obtained by it from the other Party, its Affiliates or its sublicensees, pursuant to this Agreement or otherwise, solely in connection with the activities or the
transactions contemplated hereby. 

    12.6  Remedies.  Each Party shall be entitled, in addition to any other right or remedy it may have, at
law or in equity, to an injunction, without the posting of any bond or other security, enjoining or restraining the other Party, its Affiliates and/or its sublicensees from any violation or threatened
violation of this Section 12. 

13.    TERM; TERMINATION.  

    13.1  Term.  The term of this Agreement shall commence as of the Effective Date and, unless sooner
terminated as provided hereunder, shall terminate as follows: 

    (a) As
to each Product in each country in the Territory, this Agreement shall terminate upon the expiration of the Royalty Term. 

    (b) This
Agreement shall terminate in its entirety upon its termination in all countries in the Territory. 

    13.2  Termination by BMS.  BMS shall have the right to terminate this Agreement in the event that on or
before the 18-month anniversary of the Effective Date SGI shall not have both: 

    (i)  Obtained
and received unconditional cash payment of an aggregate of at least $4,000,000 in working capital; and 

    (ii) Completed
each of the following to the reasonable satisfaction of BMS, to the extent that the scientific results obtained by SGI and prevailing market conditions
do not, in the reasonable determination of BMS, indicate that same should be abandoned: 

    (A) Evaluation
of assays to evaluate clinical grade BR96 sFv-PE4O for use in the re-commencement of Phase I studies thereof; 

    (B) Production
and in vitro analysis of anti-CD4O-immunotoxins as anti-cancer agents for
purposes of treating hematologic malignancy; 

    (C) Design
of studies to evaluate novel BR96-based drugs; and 

    (D) Design
of studies to evaluate the utilization of human enzymes in mAb-sFv-enzyme fusion proteins. 

    13.3  Termination by SGI.  

17

 

    (a) SGI
shall have the right to terminate this Agreement in its entirety at any time by giving written notice thereof to BMS, which shall be effective three months from
the date such notice is given. 

    (b) SGI
shall have the right to terminate this Agreement partially by terminating a specific Research Program due to reasonable scientific considerations, including
without limitation toxicity, inefficacy and lack of bioavailability, by giving written notice thereof to BMS, which shall be effective three months from the date such notice is given. 

    13.4  Breach.  Failure by either Party to comply with any of the material obligations contained in this
Agreement (including, without limitation, SGI's obligation to pay BMS In-License Expenses under Section 6) shall entitle the other Party to give to the Party in default notice
specifying the nature of the default and requiring it to cure such default. If such default is not cured within 90 days after the receipt of such notice (or, if such default cannot be cured
within such 90-day period, if the Party in default does not commence and diligently continue actions to cure such default), the notifying Party shall be entitled, without prejudice to any
of its other rights conferred on it by this Agreement and in addition to any other remedies available to it by law or in equity, to terminate this Agreement by giving written notice to take effect
immediately upon delivery of such notice. The right of either Party to terminate this Agreement, as hereinabove provided, shall not be affected in any way by its waiver or failure to take action with
respect to any previous default. 

    13.5  Failure to Maintain Insurance.  This Agreement shall terminate automatically and without necessity
of any action by either Party in the event that (i) SGI fails to maintain all insurance coverage that it is required to maintain under Section 11.5, or (ii) a sublicensee or
sub-sublicensee of SGI fails to maintain all insurance coverage that it is required to maintain under Section 4.2(b) and SGI does not, prior to the cancellation or
non-renewal of such coverage, either (A) terminate such sublicense, or (B), obtain the requisite coverage on behalf and for the benefit of such sublicense or
sub-sublicensee, unless, in each event, such termination of this Agreement is waived in writing by BMS. 

    13.6  Effect of Termination.  

    (a) Following
the expiration of SGI's obligation to pay royalties with respect to any Product in any country in the Territory pursuant to Section 13.1(a), SGI
shall have the royalty-free, non-exclusive,
perpetual right and license to continue to use the Licensed Technology to make, have made, use, sell and have sold such Product in such country. 

    (b) Following
either the expiration of the term of this Agreement in its entirety pursuant to Section 13.1(b) or the termination of this Agreement by SGI
pursuant to Section 13.4, SGI shall have the royalty-free, non-exclusive, perpetual right and license to continue to use the Licensed Technology to make, have made, use,
sell and have sold the Product in all countries in the Territory, and the license granted to SGI under Section 9.4(c) shall become perpetual. Further, following the expiration of the term of
this Agreement in its entirety pursuant to Section 13.1(b), the license granted to BMS under Section 9.4(c) shall become perpetual. Further, following the termination of this Agreement
by SGI pursuant to Section 13.4, the license granted to BMS under Section 9.4(c) with respect to Improvements relating to such Licensed Technology shall terminate 

    (c) Upon
the termination of this Agreement by SGI pursuant to Section 13.3(a), by BMS pursuant to Section 13.2 or 13.4, or automatically pursuant to
Section 13.5, SGI shall promptly: (i) return to BMS all relevant records, materials or confidential information, including the Results, concerning the Patents, the Know-How
and any Products in the possession or control of SGI or any of its Affiliates or sublicensees; and (ii) assign to BMS, or BMS's designee, its registrations with governmental health authorities,
licenses, and approvals of the Products in the Territory, at SGI's sole expense. Thereafter, SGI shall have no rights whatsoever to use the Licensed Technology for any purpose, and BMS shall have a
royalty-free right and license, including the 

18

 

right to grant sublicenses, under the Patents and know-how covering SGI's Improvements, to make, have made, use, sell and have sold any Products. In such event, BMS shall indemnify SGI as
provided in Section 11.2. Further, the license granted to BMS under Section 9.4(c) shall become perpetual, and the license granted to SGI under Section 9.4(c) with respect to
Improvements relating to such Licensed Technology shall terminate. 

    (d) Upon
the termination of any Research Program by SGI pursuant to Section 13.3(b), SGI's right and license and obligations under this Agreement and any
applicable BMS In-License with respect to the Licensed Technology associated with such Research Program shall cease, and SGI shall promptly: (1) return to BMS all relevant records,
materials or confidential information, including the Results, concerning the Patents, the Know-How and any Products in the possession or control of SGI or any of its Affiliates or
sublicensees with respect to such' Licensed Technology; and (ii) assign to BMS, or BMS's designee, its registrations with governmental health authorities, licenses, and approvals of any such
Products in the Territory, at SGI's sole expense. Thereafter, SGI shall have no rights or obligations whatsoever relating to such Licensed Technology, and BMS shall have an exclusive (even as to SGI),
royalty-free right and license, including,the right to grant sublicenses, under the Patents, to make, have made, "use, sell and have sold any such Products. In such event, BMS shall
indemnify SGI
as provided in Section 11.2. Further, the license granted to SGI under Section 9.4(c) with respect to Improvements relating to such Licensed Technology shall terminate, and the license
granted to BMS under Section 9.4(c) shall become perpetual. All licenses, rights and obligations relating to all Research Programs not identified in SGI's notice of termination shall remain in
full force and effect and shall be unaffected by such notice. 

    (e) Upon
the termination of any BMS In-License, SGI's right and license and obligations under this Agreement and such BMS In-License with
respect to the Licensed Technology licensed to BMS thereunder shall cease, and SGI shall promptly: (i) return to BMS all relevant records, materials or confidential information, including the
Results, concerning the Patents, the Know-How and any Products in the possession or control of SGI or any of its Affiliates or sublicensees with respect to such Licensed Technology; and
(ii) assign to BMS, or BMS's designee, its registrations with governmental health authorities, licenses, and approvals of any such Products in the Territory. Thereafter, SGI shall have no
rights or obligations whatsoever relating to such Licensed Technology. Further, the licenses granted to each Party under Section 9.4(c) with respect to Improvements relating to such Licensed
Technology shall terminate. 

    13.7  Termination of Sublicenses.  Upon any termination of this Agreement, all sublicenses and
sub-sublicenses granted by SGI under this Agreement shall terminate simultaneously. 

    13.8  Accrued Rights, Surviving Obligations.  

    (a) Termination,
relinquishment or expiration of this Agreement for any reason shall be without prejudice to any rights which shall have accrued to the benefit of
either Party prior to such termination, relinquishment or expiration. Such termination, relinquishment or expiration shall not relieve either Party from obligations which are expressly indicated to
survive termination or expiration of this Agreement. 

    (b) Termination
of this Agreement shall not terminate SGI's obligation to make all payments which have accrued through the date of such termination. All of the Parties'
rights and obligations under Sections 2.4, 7, 8.3, 10, 11, 12.3, 12.4, 12.5, 12.6, 13.6, 15.1, 15.15 and 15.16 shall survive termination. 

14.    FORCE MAJEURE.  

    14.1  Events of Force Majeure.  Neither Party shall be held liable or responsible to the other Party or
be deemed to be in default under or in breach of any provision of this Agreement for failure 

19

 

or delay in fulfilling or performing any obligation of this Agreement when such failure or delay is due to force majeure, and without the fault or
negligence of the Party so failing or delaying. For purposes of this Agreement, force majeure shall be defined as causes beyond the control of the
Party, including, without limitation, acts of God; acts, regulations, or laws of any government; war; civil commotion; destruction of production facilities or materials by fire, flood, earthquake,
explosion or storm; labor disturbances; epidemic; and failure of public utilities or common carriers. In such event SGI or BMS, as the case may be, shall immediately notify the other Party of such
inability and of the period for which such inability is expected to continue. The Party giving such notice shall thereupon be excused front such of its obligations under this Agreement as it is
thereby disabled from performing for so long as it is so disabled and the 30 days thereafter. However, the Party giving such notice shall use all reasonable efforts to remedy such inability as
soon as reasonably possible or seek an alternative arrangement during the period of such inability. 

15.    MISCELLANEOUS.  

    15.1  Non-Solicitation.  Prior to the First Commercial Sale of the first Product, and for a
period of one year thereafter, neither Party shall solicit, induce, encourage or attempt to induce or encourage any employee of the other Party to terminate his or her employment with such other Party
or to breach any, other obligation to such other Party. 

    15.2  Relationship of Parties.  Nothing in this Agreement is intended or shall be deemed to constitute a
partnership, agency, employer-employee, or joint venture relationship between the Parties. No Party shall incur any debts or make any commitments for the other, except to the extent, if at all,
specifically provided herein. 

    15.3  Assignment.  Neither Party shall be entitled to assign its rights hereunder without the express
written consent of the other Party hereto, except that both SGI and BMS may otherwise assign their respective rights and transfer their respective duties hereunder to any assignee of all or
substantially all of their respective businesses or in the event of their respective merger or consolidation or similar transaction. No assignment and transfer shall be valid and effective unless and
until the assignee/transferee shall
agree in writing to be bound by the provisions of this Agreement. Any assignment not in accordance with this Section 15.3 shall be void. 

    15.4  Binding Effect.  This Agreement shall be binding upon the successors and permitted assigns of the
Parties and the name of a Party appearing herein shall be deemed to include the names of such Party's successors and permitted assigns to the extent necessary to carry out the intent of this
Agreement. 

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

    15.6  Costs and Expenses.  Except as otherwise expressly provided in this Agreement, each Party shall
bear all costs and expenses associated with the performance of such Party's obligations under this Agreement. 

    15.7  Inconsistency.  If there is any inconsistency between the provisions of this Agreement and any
other document passing between the Parties, the provisions of this Agreement shall control and be determinative. 

    15.8  Notice.  Any notice, request or other communication required or permitted to be given under or in
connection with this Agreement shall be deemed to have been sufficiently given if in writing and personally delivered or sent by registered or certified mail (return receipt requested), 

20

 

facsimile transmission (receipt verified), express courier service (signature required), or telegram, prepaid, to the Party for which such notice is intended, at the address set forth for such Party
below: 

	 
	 	 

	(a	)	In the case of BMS, to:
	

 	
 	

Bristol-Myers Squibb Company
	 	 	P.O. Box 4000
	 	 	Route 206 & Province Line Road
	 	 	Princeton, New Jersey 08543-4000
	 	 	Attention:      Vice President & Senior Counsel,
	 	 	               Pharmaceutical Research Institute
	 	 	               and Worldwide Strategic Business
	 	 	               Development
	 	 	Facsimile No.: (609) 252-4232
	

(b	
)	

In the case of SGI, to:
	

 	
 	

Seattle Genetics, Inc.
	 	 	22215 26th Avenue
	 	 	Bothell, Washington 98021
	 	 	Attention:    President
	 	 	Facsimile No.: (425) 489-4798
	

 	
 	

with a copy to:
	

 	
 	

Venture Law Group
	 	 	4750 Carillon Point
	 	 	Kirkland, Washington 98033
	 	 	Attention:    Sonya Erickson, Esq.
	 	 	Facsimile No.: (425) 739-8750

or
to such other address for such Party as it shall have specified by like notice to the other Party, provided that notices of a change of address shall be effective only upon receipt thereof. If sent
by mail, facsimile transmission, express courier service, or telegram, the date of mailing or transmission shall be deemed to be the date on which such notice or request has been given. 

    15.9  Use of Name.  Except as otherwise provided herein, neither Party shall have any right, express or
implied, to use in any manner the name or other designation of the other Party or any other trade name or trademark of the other Party for any purpose in connection with the performance of this
Agreement. 

    15.10  Public Announcements.  Except as required by law, neither Party shall make any public
announcement concerning this Agreement or the subject matter hereof prior to the Effective Date.
Thereafter, neither Party shall make any such public announcement without the prior written consent of the other, which shall not be unreasonably withheld. In the event of a, required public
announcement, the Party making such announcement shall provide the other Party with a copy of the proposed text prior to such announcement sufficiently in advance of the scheduled release of such
announcement to afford such other Party a reasonable opportunity to review and comment upon the proposed text. Following approval of a proposed text, such text may be used in subsequent public
announcements without further approval, to the extent it remains accurate, complete and not misleading. 

    15.11  Waiver.  A waiver by either Party of any of the terms and conditions of this Agreement in any
instance shall not be deemed or construed to be a waiver of such term or condition for the future, 

21

 

or of any subsequent breach hereof. All rights, remedies, undertakings, obligations and agreements contained in this Agreement shall be cumulative and none of them shall be in limitation of any other
remedy, right, undertaking, obligation or agreement of either Party. 

    15.12  Compliance with Law.  Nothing in this Agreement shall be deemed to permit a Party to:
(i) import, export, reexport, store, sell, distribute or otherwise transfer any Product sold under this Agreement without compliance with applicable laws; or (ii) make any claims with
respect to any Product, in promotional materials or otherwise, in any country that is inconsistent with applicable laws. 

    15.13  Severability.  When possible, each provision of this Agreement will be interpreted in such manner
as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision will be ineffective only to the
extent of such prohibition or invalidity, without invalidating the remainder of this Agreement. In such event, the Parties agree to substitute a valid and enforceable provision therefor which, as
nearly as possible, achieves the desired economic effect and mutual understanding of the Parties under this Agreement. 

    15.14  Amendment.  No amendment, modification or supplement of any provisions of this Agreement shall be
valid or effective unless made in writing and signed by a duly authorized officer of each Party. 

    15.15  Governing Law.  This Agreement shall be governed by and interpreted in accordance with the laws
of the State of New York, without regard to its choice of law principles. 

    15.16  Arbitration.  

    (a) Any
dispute arising out of or relating to any provisions of this Agreement shall be finally settled by arbitration to be held in San Diego, California, under the
auspices and then current commercial arbitration rules of the American Arbitration Association. Such arbitration shall be conducted by three arbitrators appointed according to said rules. The Parties
shall instruct such arbitrators to render a determination of any such dispute within 30 days after their appointment. Judgment upon any award rendered may be entered in any court having
jurisdiction, or application may be made to such court for a judicial acceptance of the award and an order of enforcement, as the case may be. 

    (b) Section 15.16(a)
shall not prohibit a Party from seeking injunctive relief from a court of competent jurisdiction in the event of a breach or prospective
breach of this Agreement by the other Party which would cause irreparable harm to the first Party. 

    15.17  Entire Agreement.  This Agreement sets forth the entire agreement and understanding between the
Parties as to the subject matter hereof and merges all prior discussions and negotiations between them, and neither of the Parties shall be bound by any conditions, definitions, warranties,
understandings or representations with respect to such subject matter other than as expressly provided herein or as duly set forth on or subsequent to the date hereof in writing and signed by a proper
and duly authorized officer or representative of the Party to be bound thereby. 

    15.18  Counterparts.  This Agreement may be executed simultaneously in any number of counterparts, any
one of which need not contain the signature of more than one Party but all such counterparts taken together shall constitute one and the same agreement. 

    15.19  Descriptive Headings.  The descriptive headings of this Agreement are for convenience only, and
shall be of no force or effect in construing or interpreting any of the provisions of this Agreement. 

*
* * 

22

 

    IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed by its duly authorized officer as of the day and year first above written. 

	 	 	BRISTOL-MYERS SQUIBB COMPANY
	

 	
 	

By:	
 	

/s/ P.S. RINGROSE   

	 	 	Name:	 	P.S. Ringrose

	 	 	Title:	 	President PRI

	

 	
 	
 SEATTLE GENETICS, INC. 
	

 	
 	

By:	
 	

/s/ H. PERRY FELL   

	 	 	Name:	 	H. Perry Fell

	 	 	Title:	 	President

23

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EXHIBITS

LICENSE AGREEMENT

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