Document:

Exhibit 10(rr)

 

EMPLOYMENT AGREEMENT

 

This Agreement, dated as of January 23,
2006, by and between Andrew M. Schleimer (the “Executive”) and Six Flags, Inc.,
a Delaware corporation (the “Company”).

 

WITNESSETH

 

WHEREAS,
the Company has offered Executive, and Executive has accepted, employment on
the terms and conditions set forth in this Agreement; and

 

WHEREAS, the Company and
Executive wish to set forth such terms and conditions in a binding written
agreement.

 

NOW, THEREFORE, in
consideration of the mutual covenants set forth in this Agreement, it is hereby
agreed as follows:

 

1.                                       Term of Employment. Executive’s employment with the Company shall
begin on January 18, 2006 (the “Effective Date”) and end on the fourth
anniversary thereof (the “Term”), subject to earlier termination in accordance
with Section 4 hereof.

 

2.                                       Position, Duties and
Location.

 

(a)                                  Position. Beginning on the Effective Date, Executive shall serve as the
Executive Vice President, In-Park Services of the Company, with the duties and
responsibilities customarily assigned to such position and such other duties as
may reasonably be assigned to Executive from time to time by the Chief
Executive Officer consistent with such position. The Executive shall at all
times report directly to the Chief Executive Officer.

 

(b)                                 Duties. During his employment with the Company, Executive shall devote
substantially all his business attention and time to the duties reasonably
assigned to him by the Chief Executive Officer consistent with Executive’s
position and shall use his reasonable best efforts to carry out such duties
faithfully and efficiently.

 

(c)                                  Location.
Executive’s principal place of employment shall be located in New York, New
York; provided that Executive will travel and render services at such locations
as may reasonably be required by his duties hereunder.

 

3.                                       Compensation.

 

(a)                                  Base Salary. During his employment with the Company, Executive shall receive a
base salary (the “Base Salary”) at an annual rate of $500,000  Base Salary shall be paid at such times and
in such installments as the Company customarily pays the base salaries of its
employees. The Base Salary may be increased, but not be reduced, in the 

 

 

discretion of the Company, and the term “Base
Salary” shall thereafter refer to the Base Salary as so increased.

 

(b)                                 Annual
Bonus. During his employment with
the Company, Executive shall be paid an annual bonus in the discretion
of the Company; provided that in no event will Executive’s annual bonus
be less than $100,000.

 

(c)                                  Signing Bonus.              At the Effective Date, Executive shall
receive a signing bonus in the amount of $200,000.

 

(d)                                 Equity Awards.

 

(i)                                     As
soon as practicable following Executive’s execution of this Agreement, the
Company shall grant Executive an option to purchase 100,000 shares of its
common stock (the “Option”) under the Company’s applicable Stock Option and
Incentive Plan (the “Plan”). The per share exercise price of the Option shall
be the fair market value (as determined under the Plan) of the Company’s common
stock on the date of grant. Subject to Executive’s continuing employment with
the Company and the provisions of Section 4(b), the Option shall vest 20%
on the date of grant and the remainder shall vest in four equal installments on
the first four anniversaries of the Effective Date. In the event of stock
split, stock dividend, share combination, exchange of shares, recapitalization,
merger, consolidation, reorganization, liquidation or other comparable changes
or transactions of or by the Company, an appropriate adjustment to the number
and/or type of shares into which the Option is exercisable shall be made to
give proper effect to such event.

 

(ii)                                  As
soon as practicable following Executive’s execution of this Agreement, the
Company shall grant Executive an award of 100,000 restricted shares of its
common stock (the “Restricted Shares”) under the Plan. Subject to Executive’s
continuing employment with the Company and the provisions of Section 4(b),
the Restricted Shares shall become vested and the restrictions thereon shall
lapse in three equal installments on each of January 1, 2007, January 1,
2008 and January 1, 2009. In the event of stock split, stock dividend,
share combination, exchange of shares, recapitalization, merger, consolidation,
reorganization, liquidation or other comparable changes or transactions of or
by the Company, an appropriate adjustment to the number and/or type of
Restricted Shares shall be made to give proper effect to such event.

 

(e)                                  Benefits. During his employment with the Company, the Company shall
provide, and the Executive shall be entitled to participate in or receive
benefits under any pension plan, profit sharing plan, stock option plan, stock
purchase plan or arrangement, health and accident plan or any other employee
benefit plan or arrangement made available now or in the future to executives
of the Company; provided Executive complies with the conditions attendant with
coverage under such plans or arrangements. Nothing contained herein shall be
construed to require the Company to establish any plan or arrangement not in
existence on the date hereof or to prevent the Company from modifying or
terminating any plan or arrangement in existence on the date hereof. Without limiting the generality of the
foregoing, Executive shall be entitled to no less than two weeks of paid
vacation per calendar year.

 

2

 

(e)                                  Perquisites;
Expenses. During his employment with the Company, Executive shall be entitled to perquisites on the same basis
as perquisites are generally provided to executives of the Company, including
car service to and from airports and
first class air travel for flights in excess of 2.5 hours. In addition,
the Company shall promptly pay or, if such expenses are paid directly by
Executive, the Executive shall be entitled to receive prompt reimbursement, for
all reasonable expenses that Executive incurs during his employment with the
Company in carrying out Executive’s duties under this Agreement, including,
without limitation, those incurred in connection with business related travel
or entertainment, upon presentation of expense statements and customary
supporting documentation.

 

4.                                       Termination of Employment.

 

(a)                                  Death; Disability; Termination For Cause. Executive’s employment shall terminate
automatically upon his death or Disability (as defined below). The Company may
terminate Executive’s employment for Cause (as defined below) without prior
notice. Upon a termination of Executive’s employment (i) due to Executive’s
death or Disability, or (ii) by the Company for Cause, Executive (or, in
the case of Executive’s death, Executive’s estate and/or beneficiaries) shall
be entitled to: (A) unpaid Base Salary through the date of the
termination; (B) any earned but unpaid bonus for the prior fiscal year of
the Company; and (C) any benefits due to Executive under any employee
benefit plan of the Company and any payments due to Executive under the terms
of any Company program, arrangement or agreement, excluding any severance
program or policy (collectively, the “Accrued Amounts”). Executive shall have
no further right or entitlement under this Agreement; provided, however,
that in the event of a termination of Executive’s employment due to Executive’s
death or Disability, all Options and Restricted Shares previously granted to
Executive shall fully vest.

 

(b)                                 Termination Without Cause or for Good Reason. (i)  The Company may terminate
Executive’s employment without Cause and Executive may terminate his employment
for Good Reason, in each case upon thirty days prior written notice. In the
event that, during the Term, the Company terminates the Executive’s employment
without Cause or Executive terminates his employment for Good Reason, Executive
shall be entitled to the following in lieu of any payments or benefits under
any severance program or policy of the Company, and subject to execution by
Executive of a waiver and release of claims in a form reasonably determined by
the Company:

 

(i) the
Accrued Amounts;

 

(ii) a
lump sum cash severance payment equal to the unpaid balance of the Base Salary
and annual bonuses Executive would have been paid for the balance of the Term
hereof measured from the date of termination of employment pursuant to this
paragraph 4(b) to the expiration date of the Term; the severance payable
shall be computed based upon (A) Executive’s highest Base Salary in effect
at any time during his employment with the Company and (B)  Executive’s
annual bonus received for the most recent completed fiscal year of the Company
prior to the date of termination;

 

3

 

(iii) continued
coverage for a period of twelve months commencing on the date of termination (A) for
Executive (and his eligible dependents, if any) under the Company’s health
plans on the same basis as such coverage is made available to executives
employed by the Company (including, without limitation, co-pays, deductibles
and other required payments and limitations) and (B) under any Company
life insurance plan in which Executive was participating immediately prior to
the date of termination; and

 

(iv) other
than in the event of a termination for Good Reason pursuant to Section 4(c)(iii)(D),
full vesting of all Options and Restricted Shares previously granted to
Executive.

 

(c)                                  Definitions.                                  For purposes of this Agreement, the following
definitions shall apply:

 

(i)                                     “Cause”
shall mean: (A) Executive’s willful and continuing failure (except where
due to physical or mental incapacity) to perform his duties hereunder; (B) Executive’s
willful malfeasance or gross neglect in the performance of his duties
hereunder; (C) Executive’s conviction of, or plea of guilty or nolo
contendere to, the commission of a felony or a misdemeanor involving moral
turpitude; (D) the commission by Executive of an act of fraud or embezzlement
against the Company or any affiliate; or (E) Executive’s willful breach of
any material provision of this Agreement. For purposes of the preceding
sentence, no act or failure to act by Executive shall be considered “willful”
unless done or omitted to be done by Executive in bad faith and without
reasonable belief that Executive’s action or omission was in the best interests
of the Company.

 

(ii)                                  “Disability”
shall have the same meaning as in, and shall be determined in a manner
consistent with any determination under, the long-term disability plan of the
Company in which Executive participates from time to time, or if Executive is
not covered by such a plan, “Disability” shall mean Executive’s permanent
physical or mental injury, illness or other condition that prevents Executive
from performing his duties to the Company, as reasonably determined by the
Board of Directors of the Company.

 

(iii)                               “Good Reason” shall mean
the occurrence, without Executive’s express written consent, of: (A) an
adverse change in Executive’s employment’s title; (B) a significant
diminution in Executive’s employment duties, responsibilities or authority, or
the assignment to Executive of duties that are materially inconsistent with his
position; (C) any reduction in Base Salary; (D) a relocation of
Executive’s principal place of employment to a location outside of the New York
metropolitan area; or (E) any willful breach by the Company of any
material provision of this Agreement which is not cured within 15 days after
written notice is received from the Executive.

 

5.                                       Confidentiality of Trade Secrets and Business
Information. Executive
agrees that Executive will not, at any time during Executive’s employment with
the Company or thereafter, disclose or use any trade secret, proprietary or
confidential information of the Company or any subsidiary or affiliate of the
Company (collectively, “Confidential Information”), obtained during the course
of such employment, except for disclosures and uses 

 

4

 

required in the course of such employment or
with the written permission of the Company or, as applicable, any subsidiary or
affiliate of the Company or as may be required by law; provided that, if
Executive receives notice that any party will seek to compel him by process of
law to disclose any Confidential Information, Executive shall promptly notify
the Company and cooperate with the Company in seeking a protective order
against such disclosure.

 

6.                                       Return of Information. Executive agrees that at the time of any
termination of Executive’s employment with the Company, whether at the instance
of Executive or the Company, and regardless of the reasons therefore, Executive
will deliver to the Company, and not keep or deliver to anyone else, any and
all notes, files, memoranda, papers and, in general, any and all physical
(including electronic) matter containing Confidential Information and other
information relating to the business of the Company or any subsidiary or
affiliate of the Company which are in Executive’s possession, except as
otherwise consented in writing by the Company at the time of such termination. The
foregoing shall not prevent Executive from retaining copies of personal
diaries, personal notes, personal address books, personal calendars, and any
other personal information (including, without limitation, information relating
to Executive’s compensation), but only to the extent such copies do not contain
any Confidential Information.

 

7.                                       Noncompetition. In consideration for
the compensation payable to Executive under this Agreement, Executive agrees
that Executive will not, during Executive’s employment with the Company and for
a period of one (1) year after any termination of employment, render services
to a competitor of the Company or any of its affiliate, regardless of the
nature thereof, or engage in any activity which is in direct conflict with or
adverse to the interests of the Company or any affiliate. For purposes of this
Agreement, “Competitor” shall mean any business or enterprise which operates
theme parks or engages in the media or entertainment business or in any other
business that is competitive with the business of the Company. Notwithstanding
the foregoing, Executive’s providing services to an affiliate of a Competitor
that are not competitive with the business activities of the Company shall not
be a violation of the restrictions of this Section 7, and nothing in this Section 7
shall restrict Executive from providing investment banking or financial
advisory services to companies in the media and entertainment business.

 

8.                                       Noninterference. During Executive’s
employment with the Company and for a period of one (1) year following any
Termination, Executive agrees not to directly or indirectly recruit, solicit or
induce, any employees, consultants or independent contractors of the Company,
any entity in which the Company has made a significant investment, or any
entity to which Executive renders services pursuant to the terms of this Agreement
(each, a “Restricted Entity”) to terminate, alter or modify their employment or
other relationship with the Company or any Restricted Entity. During Executive’s
employment with the Company and for a period of one (1) year following any
termination thereof, Executive agrees not to directly or indirectly solicit any
customer or business partner of the Company or any Restricted Entity to
terminate, alter or modify its relationship with the Company or the Restricted
Entity or to interfere with the Company’s or any Restricted Entity’s
relationships with any of its customers or business partners on behalf of any
enterprise that directly or indirectly competes with the Company or the
Restricted Entity.

 

5

 

9.                                       Enforcement. Executive acknowledges
and agrees that:  (i) the purpose of
the covenants set forth in Sections 5 through 8 above is to protect the
goodwill, trade secrets and other confidential information of the Company; (ii) because
of the nature of the business in which the Company is engaged and because of
the nature of the Confidential Information to which Executive has access, it
would be impractical and excessively difficult to determine the actual damages
of the Company in the event Executive breached any such covenants; and (iii) remedies
at law (such as monetary damages) for any breach of Executive’s obligations
under Sections 5 through 8 would be inadequate. Executive therefore agrees and
consents that if Executive commits any breach of a covenant under Sections 5
through 8, the Company shall have the right (in addition to, and not in lieu
of, any other right or remedy that may be available to it) to temporary and
permanent injunctive relief from a court of competent jurisdiction, without
posting any bond or other security and without the necessity of proof of actual
damage. If any portion of Sections 5 through 8 is hereafter determined to be
invalid or unenforceable in any respect, such determination shall not affect
the remainder thereof, which shall be given the maximum effect possible and
shall be fully enforced, without regard to the invalid portions. In particular,
without limiting the generality of the foregoing, if the covenants set forth in
Section 7 are found by a court or an arbitrator to be unreasonable,
Executive and the Company agree that the maximum period, scope or geographical
area that is found to be reasonable shall be substituted for the stated period,
scope or area, and that the court or arbitrator shall revise the restrictions
contained herein to cover the maximum period, scope and area permitted by law. If
any of the covenants of Sections 5 through 8 are determined to be wholly or
partially unenforceable in any jurisdiction, such determination shall not be a
bar to or in any way diminish the Company’s right to enforce any such covenant
in any other jurisdiction.

 

10.                                 Indemnification. The Company shall indemnify Executive against any
and all losses, liabilities, damages, expenses (including attorneys’ fees)
judgments, fines and amounts paid in settlement incurred by Executive in
connection with any claim, action, suit or proceeding (whether civil, criminal,
administrative or investigative), including any action by or in the right of
the Company, by reason of any act or omission to act in connection with the
performance of his duties hereunder to the full extent that the Company is
permitted to indemnify a director, officer, employee or agent against the
foregoing under applicable law. The Company shall at all times cause Executive
to be included, in his capacity hereunder, under all liability insurance
coverage (or similar insurance coverage) maintained by the Company from time to
time.

 

11.                                 Executive’s
Representations. Executive acknowledges that before signing this Agreement, Executive was
given the opportunity to read it, evaluate it and discuss it with Executive’s
personal advisors. Executive further acknowledges that the Company has not
provided Executive with any legal advice regarding this Agreement.

 

6

 

12.                                 Notices. All notices and other
communications required or permitted hereunder shall be in writing and shall be
deemed given when delivered (a) personally, (b) by facsimile with
evidence of completed transmission, or (c) delivered by overnight courier
to the Party concerned at the address indicated below or to such changed
address as such Party may subsequently give such notice of:

 

If to the Company:

 

Six Flags, Inc

122 E. 42nd Street, 49th Floor

New York, New York  10168

Attn: Chief Executive Officer

 

If to the Executive:

 

Andrew M. Schleimer

c/o Six Flags, Inc.

122 E. 42nd Street, 49th Floor

New York, New York  10168

 

with a copy to:

 

Alan L. Sklover, Esq

Sklover & Associates, LLC

10 Rockefeller Plaza

New York, Ny 10020

 

13.                                 Assignment and
Successors. This Agreement shall inure to the benefit of and be binding upon the
Company and its successors and assigns. The Company may assign this Agreement
to another corporation, limited liability company, partnership, joint venture
or other business in which the Company has made an investment.

 

14.                                 Governing Law; Amendment. This Agreement shall
be governed by and construed in accordance with the laws of Delaware, without
reference to principles of conflict of laws. This Agreement may not be amended
or modified except by a written agreement executed by Executive and the Company
or their respective successors and legal representatives.

 

15.                                 Severability. The invalidity or
unenforceability of any provision of this Agreement shall not affect the validity
or enforceability of any other provision of this Agreement. If any provision of
this Agreement shall be held invalid or unenforceable in part, the remaining
portion of such provision, together with all other provisions of this
Agreement, shall remain valid and enforceable and continue in full force and
effect to the fullest extent consistent with law.

 

7

 

16.                                 Tax Withholding. Notwithstanding any
other provision of this Agreement, the Company may withhold from amounts
payable under this Agreement all federal, state, local and foreign taxes that
are required to be withheld by applicable laws or regulations.

 

17.                                 No Waiver. Executive’s or the Company’s failure to insist upon strict compliance
with any provision of, or to assert any right under, this Agreement shall not
be deemed to be a waiver of such provision or right or of any other provision
of or right under this Agreement. Any provision of this Agreement may be waived
by either party; provided that both parties agree to such waiver in
writing.

 

18.                                 No Mitigation. In no event shall Executive be obligated to seek
other employment or take other action by way of mitigation of the amounts
payable to Executive under any of the provisions of this Agreement and such
amounts shall not be subject to offset or otherwise reduced whether or not
Executive obtains other employment.

 

19.                                 Headings. The Section headings
contained in this Agreement are for convenience only and in no manner shall be
construed as part of this Agreement.

 

20.                                 Entire Agreement. This Agreement
constitutes the entire agreement of the parties with respect to the subject
matter hereof and shall supersede all prior agreements, whether written or
oral, with respect thereto.

 

21.                                 Duration of Terms. The respective rights
and obligations of the parties hereunder shall survive any termination of
Executive’s employment to the extent necessary to give effect to such rights
and obligations.

 

22.                                 Counterparts. This Agreement may be
executed simultaneously in two or more counterparts, each of which shall be
deemed an original but all of which together shall constitute one and the same
instrument.

 

[The remainder of this page is intentionally left blank.]

 

8

 

IN WITNESS WHEREOF, the
Executive has hereunto set Executive’s hand and, pursuant to the authorization
of its Board of Directors, the Company has caused this Agreement to be executed
in its name on its behalf, all as of the day and year first above written.

 

 

	
   

  	
  SIX
  FLAGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark Shapiro

  	
   

  
	
   

  	
  Name:

  	
  Mark Shapiro

  
	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Andrew M. Schleimer

  	
   

  
	
   

  	
   

  	
  Andrew M. SchleimerExhibit 10.22

 

EXECUTION COPY

 

LICENSE

 

AND

 

RESEARCH
AGREEMENT

 

BY AND
AMONG

 

BRISTOL-MYERS
SQUIBB COMPANY,

 

AMR
TECHNOLOGY, INC.,

 

AND

 

ALBANY
MOLECULAR RESEARCH, INC.

 

EXECUTED: OCTOBER 20,
2005

 

LICENSE AND RESEARCH AGREEMENT

 

 

CONFIDENTIAL
TREATMENT REQUESTED

 

 

LICENSE
AND RESEARCH AGREEMENT

 

This License and Research Agreement (this “Agreement”)
is made by AMR Technology, Inc., a corporation organized and existing
under the laws of Vermont and having a principle place of business at 5429 Main
Street, Manchester, Vermont, Albany Molecular Research, Inc., a
corporation organized and existing under the laws of the State of Delaware and
having a principle place of business at 21 Corporate Circle, Albany, New York
12203 (with “AMRI” meaning individually and
collectively AMR Technology, Inc. and Albany Molecular Research, Inc.)
and Bristol-Myers Squibb Company, a corporation organized and existing under
the laws of the State of Delaware and headquartered at 345 Park Avenue, New
York, New York 10154 USA (“BMS”).

 

Recitals

 

A. Bristol-Myers Squibb Pharma Company (an Affiliate (as defined below)
of BMS and formerly called “DuPont Pharmaceuticals Company”) assigned certain
patent applications and patents to Albany Molecular Research, Inc. (the “Assigned
Patent Rights”) under the Existing License Agreement (as defined below);

 

B. Under the Existing License Agreement, Albany Molecular Research, Inc.
retained the rights under the Assigned Patent Rights in the CNS Field (as that
term is defined in the Existing License Agreement) and granted BMS an exclusive
license under the Assigned Patent Rights so that BMS could make, have made,
import, use, offer to sell and sell compounds covered by the Assigned Patent
Rights and products containing those compounds in the Non-CNS Field (as that
term is defined in the Existing License Agreement).

 

C. Under the Existing License Agreement, Bristol-Myers Squibb Pharma
Company licensed certain then unpatented compounds (the “Attachment A Compounds”)
to Albany Molecular Research, Inc. in 

 

Confidential Treatment
Requested

 

1

 

the CNS Field and retained all rights in the Non-CNS Field (as that
term is defined in the Existing License Agreement);

 

D. Albany Molecular Research, Inc. and BMS entered into the
Warrant Issue Agreement (as defined below) on the same date as they entered
into the Existing License Agreement;

 

E. Albany Molecular Research, Inc. issued warrants to BMS under
the Warrant Issue Agreement and, on September 11, 2003, BMS and Albany
Molecular Research, Inc. entered into an amendment to amend the Warrant
Issue Agreement so that the period for BMS to exercise the warrants under the
Warrant Issue Agreement was extended, and they entered into the First Amendment
(as defined below)  in which the Existing
License Agreement was amended to be consistent with the amendment to the
Warrant Issue Agreement;

 

F. BMS is willing to have the warrants cancelled as part of this
Agreement;

 

G. On January 7, 2004, BMS, Bristol-Myers Squibb Pharma Company
and Albany Molecular Research, Inc. entered into the Second Amendment (as
defined below) under which the Existing License Agreement was amended so that
Albany Molecular Research, Inc. was given the right to file patent
applications and to obtain patents on the Attachment A Compounds as well as on
certain other compounds, including but not limited to derivatives of the
Attachment A Compounds and derivatives of compounds claimed in the Assigned
Patent Rights;

 

H. Albany Molecular Research, Inc. has generated Amine
Neurotransmitter Reuptake-Inhibitors (as defined below) after it entered into
the Existing License Agreement, some of which are analogs and derivatives of
the compounds covered by the Assigned Patent Rights or of the Attachment A
Compounds, and Albany Molecular Research, Inc. has filed patent
applications on some of these Amine Neurotransmitter Reuptake-Inhibitors it has
generated;

 

Confidential Treatment
Requested

 

2

 

I. Albany Molecular Research, Inc. would like to obtain ownership
rights in all Attachment A Compounds, to have Bristol-Myers Squibb Pharma
Company assign to AMR Technology, Inc. its entire right, title and
interest in and to those Attachment A Patent Rights (as defined in the Existing
License Agreement) in which Bristol-Myers Squibb Pharma Company has any
ownership interest, and to terminate certain other intellectual property rights
which it conveyed to BMS in the Existing License Agreement, while BMS would
like to obtain an exclusive license from AMRI under those rights and the
Assigned Patent Rights and the Attachment A Patent Rights to Develop (as
defined below) and Commercialize (as defined below) in the Field (as defined
below) Licensed Compounds (as defined below) and Licensed Products (as defined
below);

 

J. BMS, Bristol-Myers Squibb Pharma Company and Albany Molecular
Research, Inc. will enter into an agreement to terminate the Existing
License Agreement (the
“License Termination Agreement”) on the same date as BMS, AMRI Technology, Inc.
and Albany Molecular Research, Inc. enter into this Agreement. In
the License Termination Agreement, Bristol-Myers Squibb Pharma Company will
assign to Albany Molecular Research, Inc. its entire right, title and
interest in and to the Attachment A Compounds and will agree to assign to AMR
Technology, Inc. its entire right, title and interest in and to the BMS
Attachment A Patent Rights (as defined in the Existing License Agreement). As part of the upfront payment under
this Agreement, BMS and Albany Molecular Research, Inc. will cancel all
existing warrants issued by Albany Molecular Research, Inc. under the
Warrant Issue Agreement by entering into an agreement to terminate the Warrant
Issue Agreement (the “Warrant Termination Agreement”) on the same date as they
enter into this 

Agreement.
 This Agreement, the License Termination
Agreement and the Warrant Termination Agreement will not be effective unless
all of them are entered into on the same date.

 

Confidential Treatment
Requested

 

3

 

K. The Parties would like to undertake a
Research Program (as defined below) for the research, discovery and
identification of Amine Neurotransmitter Reuptake-Inhibitors for BMS to Develop
and Commercialize;

 

L. AMRI and BMS desire to manage such
Research Program through a Joint Research Committee (as defined below); and

 

M. This Agreement sets forth the particular terms and conditions
governing the Research Program to be undertaken by AMRI and BMS concerning
Amine Neurotransmitter Reuptake-Inhibitors and the Development (as defined
below) and Commercialization (as defined below) of Licensed Compounds and
Licensed Products by BMS under this Agreement.

 

NOW, THEREFORE, in consideration of the mutual covenants contained
herein and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the Parties hereto agree as follows:

 

1.                          DEFINITIONS.

 

1.1                                 Definitions. Capitalized terms used, shall have the meaning
ascribed to them in this Agreement. Words defined importing the singular also
include the plural and vice versa, unless the text requires otherwise. As used
in this Agreement, the following terms have the following meanings:

 

“Acceptance” or “Accepted”, as
it applies to a Drug Approval Application, means that the filing has been
accepted by the applicable Regulatory Authority for consideration of the filing
on its merits.

 

Confidential Treatment
Requested

 

4

 

“Action” means individually or collectively (a) any
lawsuit(s) or request(s) for preliminary discovery initiated by BMS or AMRI or
a Third Party on behalf of AMRI or BMS under Section 3.2(h) in the
United States or in a foreign country or jurisdiction against a Third Party or
Third Parties for infringement of AMRI Patent Rights, AMRI Third Party Rights,
BMS Licensed Patent Rights or BMS Third Party Rights and/or (b) any
counterclaim(s) or lawsuit(s) instituted by a Third Party against BMS or AMRI
or a Third Party that initiates a lawsuit on behalf of BMS or AMRI in the
United States or in a foreign country or jurisdiction, in relation to AMRI
Patent Rights, AMRI Third Party Rights, BMS Licensed Patent Rights or BMS Third
Party Rights.

 

“Advanced Lead Candidate Compound” means
a compound identified in Exhibit 1.1C, which shall be a written
list agreed upon and signed by the Parties within thirty (30) days of the
Effective Date identifying up to ten (10) compounds that are AMRI
Compounds as of the Effective Date. Such list shall be attached to this
Agreement and be part of this Agreement.

 

“Affiliate” means any company or organization that, either
directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with a Party. For the purpose of this
Agreement “control” means the power to, directly or indirectly, appoint a
majority of the managing directors, or otherwise direct or cause the direction
of the management or policies of such person, whether through share ownership
of at least fifty per cent (50%) of the stock entitled to vote for the election
of directors or, in case of non-stock company, by contract or otherwise.

 

“Agreement” means this
Agreement and all Exhibits attached hereto and incorporated herein by
reference, as the same may be amended or supplemented from time to time
hereafter.

 

“Amine Neurotransmitter Reuptake-Inhibitor” and/or “Amine
Neurotransmitter Reuptake-Inhibitor Compound”
means a compound that exhibits an inhibitory equilibrium binding

 

Confidential Treatment Requested

 

5

 

constant (Ki)
of less than one (1) micromolar in a competition binding assay for at
least two of the three biogenic amine transporters (norepinephrine, dopamine
and serotonin).

 

“AMRI
Compounds” means (i) the
Attachment A Compounds,

 

(ii) the Amine Neurotransmitter
Reuptake-Inhibitor Compounds that are listed in Part II of Exhibit 1.1E,

 

(iii) all compounds first synthesized
pursuant to the Research Program and owned solely or jointly by AMRI or any of
its Affiliates (including but not limited to any such compound that is jointly
owned by AMRI and BMS),

 

(iv) all compounds Covered at the time of
filing and/or at the time of grant by a compound claim of Patent Rights that
are filed on any of the compounds included in items (i)-(iii), (whether or not
such compounds in such claim are those of items (i) – (iii)) and such
Patent Rights are owned solely or jointly by AMRI or any of its Affiliates, and
in each case such compounds are owned solely or jointly by AMRI or any of its
Affiliates (including but not limited to any such compound that is
jointly owned by AMRI and BMS),

 

(v) all isomers, enantiomers, hydrates,
conjugates, esters, racemates, polymorphs, and metabolites of any of the
foregoing compounds,

 

(vi) all salt forms of any of the foregoing
compounds; and

 

(vii) all prodrugs of any of the foregoing
compounds.

 

Confidential Treatment
Requested

 

6

 

For the avoidance of doubt, a compound claim of item
(iv) excludes any formulation, process, method of use, or combination
claim and is limited to a claim that claims a compound per se.

 

“AMRI
Know-How” means (a) AMRI Compounds; (b) any Know-How
directly related to (i) AMRI Compounds and/or BMS Compounds and/or (ii) compositions
that contain any AMRI Compound and/or any BMS Compound, and (c) Know-How
reasonably required and/or useful for the research, discovery, identification,
Development, manufacture and/or use of any Licensed Compound and/or
compositions containing any Licensed Compound, in each case, which Know-How is
owned solely or jointly by AMRI or any of its Affiliates as of the Effective
Date and/or during the Combined Period. For the avoidance of doubt, AMRI
Know-How may include research tools and targets.

 

“AMRI Patent
Rights” means all of the Patent Rights that are owned solely or
jointly by AMRI or any of its Affiliates which (i) claim an invention
conceived or reduced to practice prior to the Effective Date or during the
Combined Period relating to any Amine Neurotransmitter Reuptake-Inhibitor
Compound and/or a composition containing such a compound and/or the research,
discovery, identification, Development, manufacture, Commercialization and/or
use of such a compound and/or composition, or (ii) to the extent not
included in (i) claim an invention conceived or reduced to practice
pursuant to work performed under the Research Program relating to a compound, a
composition and/or the research, discovery, identification, Development,
manufacture, Commercialization and/or use of a compound and/or composition, or (iii) to
the extent not included in (i) and (ii), are directed to an AMRI Compound
and/or BMS Compound and/or a composition containing such a compound and/or the
research, discovery, identification, Development, manufacture,
Commercialization and/or use of such a compound and/or composition. For the
avoidance of doubt AMRI Patent Rights include the Attachment A Patent Rights
and the Assigned Patent Rights. All of the Assigned Patent Rights as of the
Effective Date are listed in Part I of Exhibit 1.1A, all of
the Attachment A Patent Rights as of the Effective Date are listed in Part II
of Exhibit 1.1A, and all other AMRI Patent Rights as of the
Effective Date are listed in Part III of Exhibit 1.1A.

 

Confidential Treatment Requested

 

7

 

For the further avoidance of
doubt, all Patent Rights that are owned solely or jointly by AMRI or any of its
Affiliates and that are reasonably required and/or useful to use the AMRI
Know-How licensed to BMS under this Agreement for the research, discovery,
identification, Development, manufacture and/or use of any AMRI Compound and/or
any BMS Compound and/or compositions containing any AMRI Compound and/or any
BMS Compound are included in the AMRI Patent Rights, a Patent Right is an AMRI
Patent Right even if such Patent Right includes or claims an invention in
addition to those of items (i) – (iii) above, and AMRI Patent Rights may include
Patent Rights covering targets and/or research tools.

 

“AMRI Technology” means AMRI Patent Rights and AMRI Know-How.

 

“API” means an active pharmaceutical ingredient.

 

“Approvals” means and includes all licenses, permits,
authorizations, and approvals, including, but not limited to reimbursement
decisions and price approvals, of, and all registrations, filings, and other
notifications to, any governmental agency or department within the Territory,
including, without limitation, the FDA, the EMEA in Europe and the Koseisho in
Japan and equivalent foreign agencies, necessary or appropriate for the
manufacture, production, distribution, marketing, sale, and/or use of a
Licensed Product for commercial purposes anywhere within the Territory.

 

“Assigned
Patent Rights” has the meaning assigned in the
Recitals.

 

“Attachment
A Patent Rights” has the meaning assigned in the
Second Amendment to the Existing License Agreement.

 

“BMS
Compounds” means (i) the Amine Neurotransmitter
Reuptake-Inhibitor Compounds that are listed in Exhibit 1.1G and
those compounds that exist as of the Effective Date that (a) are 

 

Confidential Treatment
Requested

 

8

 

owned solely or jointly by BMS or any of its
Affiliates, (b) are known by BMS or any of its Affiliates to be Amine
Neurotransmitter Reuptake-Inhibitor Compounds as of the Effective Date, and (c) BMS
elects in writing to include them as BMS Compounds under this Agreement,

 

(ii) all compounds first synthesized
pursuant to the Research Program and owned solely or jointly by BMS or any of
its Affiliates,

 

(iii) all compounds Covered at the time of
filing and/or at the time of grant by a compound claim of Patent Rights that
are filed on any of the compounds included in item (ii), (whether or not such
compounds in such claim are those of item (ii)) and such Patent Rights are
owned solely or jointly by BMS or any of its Affiliates, and in each case such
compounds are owned solely or jointly by BMS or any of its Affiliates,

 

(iv) those compounds that (a) are Covered
at the time of filing and/or at the time of grant by a compound claim of Patent
Rights that are filed on any of the compounds included in item (i), (whether or
not such compounds in such claim are those of item (i)), and in each case such
Patent Rights are owned solely by BMS or any of its Affiliates, and (b) 
BMS elects to include as BMS Compounds under this Agreement,

 

(v) all isomers, enantiomers, hydrates,
conjugates, esters, racemates, polymorphs, and metabolites of any of the
foregoing compounds,

 

(vi) all salt forms of any of the foregoing
compounds; and

 

(vii) all prodrugs of any of the foregoing
compounds.

 

Confidential Treatment
Requested

 

9

 

BMS Compounds do not include compounds that
are AMRI Compounds. For
the avoidance of doubt, a compound claim of item (iii) or (iv) excludes
any formulation, process, method of use, or combination claim and is limited to
a claim that claims a compound per se.

 

“BMS Know-How” means (a) BMS Compounds-, (b) Know-How
directly related to (i) BMS Compounds and/or AMRI Compounds and/or (ii) compositions
that include any BMS Compound and/or any AMRI Compound, and (c) Know-How
reasonably required for the manufacture or use of any Licensed Compound and/or
compositions that include any Licensed Compound, in each of the foregoing cases
which Know-How is owned by BMS or any of its Affiliates as of the Effective
Date and/or during the Combined Period. For the avoidance of doubt, BMS
Know-How excludes research tools and targets.

 

“BMS Licensed
Patent Rights” means all of the Patent Rights that are
owned solely or jointly by BMS or its Affiliates which (i) claim an invention conceived or reduced to practice pursuant
to work performed under the Research Program with respect to a compound, a composition
and/or the manufacture and/or use of a compound and/or composition, or (ii) to
the extent not included in (i), claim an Amine Neurotransmitter Reuptake
Inhibitor Compound included in item (i) of the definition of BMS Compounds
and/or a composition containing such a compound and/or the manufacture and/or
use of such a compound or composition, or (iii) to the extent not included
in (i) or (ii) is directed to an AMRI Compound and/or BMS Compound or
a composition containing such a compound and/or the manufacture and/or use of
such a compound and/or composition or (iv) to the extent not included in (i) or
(ii) claims an invention conceived or reduced to practice during the
Combined Period pursuant to
activities directed to researching, Developing and/or improving Licensed
Compounds as Amine Neurotransmitter Reuptake-Inhibitors.  For the avoidance of doubt, BMS Licensed
Patent Rights do not include Patent Rights Covering targets and/or research
tools. For the further avoidance of doubt, a Patent Right is a BMS Licensed
Patent Right even if such Patent Right includes or claims an invention in
addition to those of items (i) – (iii) above.

 

Confidential Treatment
Requested

 

10

 

“BMS Patent Rights” means Patent Rights that are Controlled
by BMS or its Affiliates prior to or during the term of this Agreement and that
BMS or its Affiliates have the right to enforce.

 

“BMS Technology” means BMS Licensed Patent Rights and BMS
Know-How.

 

“Business
Day” or “business day”
means a day other than Saturday, Sunday or any day on which commercial banks
located in New York, New York are authorized or obligated by law to close.

 

“Calendar Quarter” means a three-month period ending on the
last day of March, June, September or December in any year.

 

“Calendar
Year” means the period from January 1
through December 31.

 

“Combination Product” means a Licensed Product that includes at
least one API other than a Licensed Compound. Drug delivery vehicles,
adjuvants, and excipients shall not be deemed to be “APIs”, except in the case
where such delivery vehicle, adjuvant, or excipient is recognized by the FDA as
an API in accordance with 21 CFR 210.3(b)(7).

 

“Combined
Period” means the period beginning on the Effective Date and ending
at the end of the Extended Period.

 

“Commercialize” means to promote, market, distribute, sell
and provide product support (including manufacturing) for a product, and “Commercializing” and “Commercialization”
shall be interpreted accordingly.

 

“Commercially Reasonable Efforts” means, with respect to the
efforts to be expended by a Party with respect to an activity, such reasonable,
diligent, good faith efforts to accomplish such

 

Confidential Treatment
Requested

 

11

 

activity as such Party would normally use to
accomplish a similar activity.  With
respect to the Development of at least one Licensed Product in the United
States and Major Market Countries, Commercially Reasonable Efforts means the
reasonable, diligent good-faith effort (and funding thereof) that BMS would use
for a product at a similar stage of development as to which the Licensed
Product is being Developed, taking into account the safety and efficacy profile
of the Licensed Product and the regulatory requirements for Approval thereof in
the applicable country. With respect to Commercialization of at least one
Licensed Product in the United States and Major Market Countries, Commercially
Reasonable Efforts means the reasonable, diligent good-faith efforts (and
funding thereof) that would be used by BMS for a product of similar commercial
potential that BMS would continue to Commercialize in the United States and/or
the applicable Major Market Countries.

 

Such efforts
also require that the applicable Party shall (i) on a timely basis assign
responsibility for such activities to specifically identified and sufficiently
qualified and experienced employees who are held accountable for progress and
monitor such progress on an ongoing basis, (ii) set and consistently seek
to achieve specific and meaningful objectives for carrying out such activities,
and (iii) consistently implement decisions and allocate human, financial,
and organizational resources designed to advance progress toward each of these
objectives. The Parties shall regularly, clearly, and in reasonable detail
record evidence of compliance with each of items (i) through (iii) above
in research and development plans, laboratory and other logbooks, reports, and
other normally used documentation in the pharmaceutical business all in
accordance with standard scientific procedures.

 

“Confidential
Information” has the meaning assigned in Section 9.1.

 

“Control” or “Controlled”
means, with respect to any intellectual property right or other intangible property,
the possession (whether by license or ownership, or by control over an
Affiliate having possession by license or ownership) by a Party, of the ability
to grant to the other Party access

 

Confidential Treatment
Requested

 

12

 

and/or a license or sublicense as provided
herein without violating the terms of any agreement with any Third Party.

 

“Cover,” “Covered” or “Covering” means, with respect to Patent Rights, that the
making, using, importation, offer for sale or sale of an invention claimed in
such Patent Rights or the conducting of an activity, in the absence of a
license under such Patent Rights, would infringe at least one claim of such
Patent Rights whether present in an issued patent or in a patent application if
it issued as a patent containing such claim.

 

“Development”
means non-clinical and clinical drug development activities reasonably related
to the development and submission of information to a Regulatory Authority,
including, without limitation, toxicology, pharmacology and other discovery and
pre-clinical efforts, test method development and stability testing, process
development, formulation development, delivery system development, quality
assurance and quality control development, statistical analysis, clinical
studies (including, without limitation, pre- and post-approval studies and
specifically excluding regulatory activities directed to obtaining pricing and
reimbursement approvals) and manufacturing of clinical materials. When used as
a verb, “Develop” means to engage in
Development. “Developing”  means engaging in Development.

 

“Dollars” or “$” means the legal tender of the United States of America.

 

“Drug Approval Application”
means an application for Approval required for commercial sale or marketing of
a Licensed Product in a regulatory jurisdiction, including without limitation
an NDA, an MAA or a JNDA.

 

“ECN Approval” means
the approval, by BMS, of a Licensed Compound to proceed to studies leading to
an IND filing and clinical Development.

 

Confidential Treatment
Requested

 

13

 

“ECN Compound” means a Licensed Compound that has achieved
ECN Approval prior to the end of the Combined Period.

 

“Effective
Date” means the date on which this Agreement shall
have been executed by all Parties.

 

“EMEA”
means the European Agency for the Evaluation of Medicinal Products, or any
successor agency thereto.

 

“Excluded Compounds”
means the compounds included in items (i) and (iv), of the definition of
BMS Compounds and the corresponding compounds included in items (v) through
(vii) of the definition of BMS Compounds that are not ECN Compounds or
Released Compounds at the time any right or this Agreement is terminated under Section 13.2.1,
13.2.2 or 13.3.1, and (b) Licensed Compounds, the Development or
Commercialization of which was terminated by BMS or an Affiliate or sublicensee
of BMS for Safety Reasons.

 

“Excluded Products”
means (a) compositions, including products, containing any Excluded
Compound, and (b) Licensed Products, the Development or Commercialization
of which was terminated by BMS for Safety Reasons.

 

“Existing
License Agreement” means the License Agreement entered
into by Albany Molecular Research Inc., BMS and Bristol-Myers Squibb Pharma
Company (formerly called “DuPont Pharmaceuticals Company”) on March 15,
2002, as amended by the First Amendment
to License Agreement, dated September 11, 2003, and by the Second
Amendment to License Agreement, dated January 7, 2004.

 

“Extended Period” means the period beginning at the end of
the Research Term and ending four (4) years after the end of the Research
Term.

 

Confidential Treatment
Requested

 

14

 

“FDA” means the United States Food and Drug Administration or
any successor agency having comparable jurisdiction.

 

“Field” means all uses for the treatment, palliation,
prevention or control of any human or animal diseases, disorders or conditions.

 

“Finished Product” means a Licensed Product that is labeled,
packaged and released in a form suitable for use by the end user.

 

“First Commercial Sale” means, in any particular country of
the Territory, the first sale of a Royalty Bearing Product in that country for
use by the general public after Approval has been granted by the Regulatory
Authority of that country for such Royalty Bearing Product.

 

“FTE” means the equivalent of the work of one (1) employee
full time for one (1) year of work directly related to the research,
discovery, identification, Development or manufacture of Licensed Compounds and
Licensed Products, or any other activities contemplated under this Agreement.

 

“FTE Rate”
means the FTE rate applicable to AMRI’s FTEs, which rate, as of the Effective
Date, is set forth in Exhibit 1.1D. Beginning in the third year of
the Research Program, the FTE Rate will be increased by three (3) percent
per year.

 

“GAAP”
means United States generally accepted accounting principles.

 

Confidential Treatment
Requested

 

15

 

“Good Manufacturing Practices” or
“cGMPs” means current good
manufacturing practices for pharmaceuticals as described in regulations
promulgated by the FDA, or an equivalent regulatory agency.

 

“Included
Compounds” means (a) all isomers, enantiomers, hydrates, conjugates, esters, racemates,
polymorphs, and metabolites of a particular compound, (b) all salt forms
of such particular compound and of the compounds included in (a), and (c) all
prodrugs of such particular compound and of the compounds included in (a) and
(b).

 

“IND” means an Investigational New Drug Application filed
with the FDA in the United States with respect to a Licensed Product.

 

“IND
Equivalent” means any similar application filed with
the Regulatory Authority in any other country in the Territory with respect to
a Licensed Product.

 

“Indication” means a disease entity, disorder, condition,
symptom or syndrome, for which a product may be approved for treatment,
palliation, prevention or control by the FDA or equivalent Regulatory
Authority, or for which such Approval may be sought from the FDA or
equivalent Regulatory Authority. Examples of Indications are listed in the
major bullet points of Exhibit 1.1F, and each such Indication is
further exemplified by sub-indications listed below the Indication. For the
purposes of this Agreement, an Indication includes the Indication and all of
its respective sub-indications as exemplified in Exhibit 1.1F.

 

“Joint Research Committee” or “JRC”
means the committee comprised of representatives of both Parties established
pursuant to Section 2.3.1, having the responsibilities set forth in
Sections 2.3 2 and 2.3.3, and having the membership set forth in Section 2.4.1.

 

Confidential Treatment
Requested

 

16

 

“JNDA”
means a Drug Approval Application filed with the Koseisho required for
marketing approval for the applicable Licensed Product in Japan.

 

“JNDA
Approval” means Approval of a JNDA by the Koseisho for
the applicable Licensed Product in Japan.

 

“Know-How” means any information and/or invention and/or
material, whether or not proprietary or patentable and whether stored or
transmitted in oral, documentary, electronic or other form. Know-How includes,
without limitation, ideas, concepts, formulas, methods, procedures, designs,
compounds, compositions, plans, documents, data, discoveries, developments,
works of authorship, biological materials, and any information relating to
research and development plans, experiments, results, compounds, therapeutic leads,
candidates and products, clinical and preclinical data, trade secrets and
manufacturing, marketing, financial, regulatory, personnel and other business
information and plans, and any scientific, clinical, regulatory, marketing,
financial and commercial information or data. Notwithstanding anything herein
to the contrary, Know-How shall exclude Patent Rights.

 

“Koseisho”
means the Japanese Ministry of Health and Welfare, or any successor agency
thereto.

 

“Lead Party”
refers to that Party having pursuant to Section 3.2(e) or Section 3.2(f) the
patent enforcement and extension rights set forth in Article 14 of this
Agreement.

 

“Lead Party Patent Rights” means those Patent Rights for which a Party is the Lead Party.

 

“Lead Product” means a Licensed Product under
Development for which there is at least one back-up Licensed Product under
Development.

 

“License”
means a grant and/or transfer of rights, other than ownership, with respect to
the Development and/or Commercialization of any Licensed Compound and/or
Licensed Product.

 

Confidential Treatment Requested

 

17

 

“License” also
refers to the corresponding grant and/or transfer by AMRI of rights back to BMS
with respect to one or more Licensed Compound(s) and/or Licensed Product(s)
pursuant to Article 5.

 

“Licensed
Compound(s)” means (i) BMS Compounds, (ii) AMRI
Compounds, (iii) compounds which at the time of filing and/or at the time
of grant are Covered by a compound claim of an AMRI Patent Right and/or a BMS
Licensed Patent Right, (iv) Retained Compounds, (v) Released
Compounds, and (vi) compounds that (a) are conceived or reduced to
practice during the Combined Period or * thereafter, (b) are Amine
Neurotransmitter Reuptake Inhibitors, and (c) are based on and/or derived
from a compound of any of items (i) – (v) above. For the avoidance of doubt, a compound claim
of item (iii) excludes any formulation, process, method of use, or
combination claim and is limited to a claim that claims a compound per se.

 

“Licensed
Product” means any pharmaceutical product containing a
Licensed Compound (alone or with other APIs), in all forms, presentations,
formulations and dosage forms. For the avoidance of doubt, a Retained Product
is a Licensed Product, and a Released Product is a Licensed Product.

 

“MAA
Approval” means Approval by the EMEA of a marketing
authorization application (“MAA”) filed with the EMEA for the applicable
Licensed Product under the centralized European procedure and the subsequent
obtainment of any reimbursement decisions and price approvals necessary and/or
appropriate for the manufacture, production, distribution, marketing, sale,
and/or use of the Licensed Product for commercial purposes in any one of the
following countries:  France, Germany,
Italy, Spain and the United Kingdom. If the centralized EMEA filing procedure
is not used, MAA Approval shall be achieved upon the first Approval for the
applicable Licensed Product in one of the following countries:  France, Germany, Italy, Spain and the United Kingdom.

 

Confidential Treatment
Requested

 

18

 

“Major Market Countries” means the United States, Japan,
United Kingdom, France, Germany, Italy and Spain, and “Major Market Country”
means one of these countries.

 

“NDA”
means a New Drug Application filed with the FDA in the United States with
respect to a Licensed Product in conformance with applicable laws and
regulations, and includes any supplemental NDA, and supporting documents for
Approval in the United States.

 

“Net Sales”
shall mean the amount invoiced in a given country by BMS or any Affiliate of
BMS or any (sub)licensee of BMS or any Affiliate of a sub(licensee) for sales
of a Royalty Bearing Product to a Third Party, and less the following to the
extent accrued or credited and not paid or reimbursed by the Third Party:

 

(a)          discounts (including
cash discounts and quantity discounts), retroactive price reductions,
charge-back payments and rebates granted to managed health care organizations
or to federal, state and local governments, their agencies, and purchasers and
reimbursers or to trade customers;

 

(b)         credits or allowances
accrued upon claims, damaged goods, rejections or returns of such Royalty
Bearing Product, including Royalty Bearing Product returned in connection with
recalls or withdrawals;

 

(c)          shipping and insurance
charges relating to the delivery of a Royalty Bearing Product;

 

(d)         taxes or duties levied
on, absorbed or otherwise imposed on the sale of such Royalty Bearing Product,
including without limitation value-added taxes, or other governmental charges
otherwise imposed upon the invoiced amount, as adjusted for rebates and
refunds; and

 

(e)          amounts repaid, credited
or written off by reason of uncollectible debt and amounts written off on
account of factoring of receivables, to the extent consistent with BMS’

 

Confidential Treatment
Requested

 

19

 

business practices for the majority of its
pharmaceutical products, as determined on a country-by-country basis.

 

If a
Royalty Bearing Product is sold in the form of a Combination Product
(which may be either combined in a single formulation or packaged with
separate formulations but sold as one product), Net Sales for such Combination
Product will be calculated by multiplying actual Net Sales of such Combination
Product by the fraction A/(A+B) where A is the invoice price of the Licensed
Product containing the Licensed Compound if sold separately (for the same
dosage strength), and B is the total invoice price of the other active
ingredient or ingredients in the Combination Product, if sold separately. If,
on a country-by-country basis, the other active ingredient or ingredients in
the Combination Product are not sold separately in said country, Net Sales for
the purpose of determining royalties of the Combination Product shall be
determined in good faith by the Parties and in a manner consistent with the
intent of this Agreement.

 

Net Sales shall be determined by BMS in a
manner consistent with GAAP and consistently applied to all products of BMS. For
clarity, sales to a distributor (other than a distributor in a country where
BMS and its Affiliates do not normally sell through a distributor), wholesaler,
group purchasing organization, PBM, or retail chain customer (none of which
shall be considered a (sub)licensee or an Affiliate of a (sub)licensee for the
purposes of calculating Net Sales) are considered sales to a Third Party;
provided, that Net Sales by BMS or an Affiliate of BMS to a Third Party consignee
or to a distributor in a country where BMS and its Affiliates do not normally
sell through a distributor are not recognized as Net Sales by BMS until the
Third Party consignee or such distributor sells the Royalty Bearing Product.

 

In the case of
any sale or other disposal of a Royalty Bearing Product between or among BMS
and its Affiliates or their (sub)licensees and their Affiliates or distributors
in countries where BMS and its Affiliates do not normally sell through a
distributor for resale, Net Sales shall be calculated as above on the resale to
an independent Third Party. Subject to the preceding paragraph, for the
purposes of Net Sales, a (sub)licensee is a person or entity that obtains a
(sub)license from BMS or its

 

Confidential Treatment Requested

 

20

 

Affiliates or a person or entity that obtains
such rights through a person or entity that has been granted such a
(sub)license.

 

Only one
royalty shall be paid on the sale of each unit of a Royalty Bearing Product.

 

“Non-Advanced
Lead Candidate Compound” means a Licensed Compound
that is not identified in Exhibit 1.1C.

 

“Patent
Rights” means (a) patents and patent applications
Covering the research, discovery, identification, Development, manufacture,
use, exportation, importation, offer for sale and/or Commercialization of any
compound and/or product, (b) all foreign counterparts thereof, (c) all
divisionals, continuations, continuations-in-part thereof or any other
patent application claiming priority directly or indirectly to (i) any of
the patents or
patent applications in (a)  or (b) or (ii) any patent or patent
application from which the patents or patent applications in (a) or (b) claim
direct or indirect priority, and (d) all patents issuing on
any of the foregoing, and any foreign counterparts thereof, together with all
registrations, reissues, re-examinations, supplemental protection certificates,
or extensions thereof, and any foreign counterparts thereof.

 

“Patented Royalty Bearing Product” means a Licensed Compound
or Licensed Product that is Covered by a Valid Claim of an AMRI Patent Right
and/or BMS Licensed Patent Right.

 

“Party” means AMRI or BMS; “Parties”
means BMS and AMRI.

 

“Phase I
Clinical Trial” means a human clinical trial of a
Licensed Product, the principal purpose of which is a preliminary determination
of safety in healthy individuals or patients.

 

Confidential Treatment
Requested

 

21

 

“Phase IIa Clinical Trial” means a human clinical trial in
patients with the disease or indication under study of a Licensed Product, the
principal purpose of which is to provide an indication of the efficacy of
the Licensed Product for its intended use. A Phase IIa Clinical Trial shall be deemed to have commenced
when the first patient in such trial has been dosed.

 

“Phase IIb
Clinical Trial” means a controlled clinical trial
which utilizes the pharmacokinetic and pharmacodynamic information obtained
from one or more previous Phase I Clinical Trial(s) and/or Phase IIa Clinical
Trial(s) to confirm the optimal manner of use of the Licensed Product (dose and
dose regimen) prior to initiation of the pivotal Phase III Clinical Trials. The
period of dosing in Phase IIb Clinical Trials will typically be more than two (2) weeks
(the duration of dosing in Phase IIa
Clinical Trials) and less than twenty-six (26) weeks (the minimum
duration of dosing typically expected in the Phase III Clinical Trials). A
Phase IIb Clinical Trial shall be deemed to have commenced when the first
patient in such trial has been dosed.

 

“Phase III Clinical Trial” means a pivotal human clinical
trial of a Licensed Product on a sufficient number of subjects that is designed
to establish that a pharmaceutical product is safe and efficacious for its
intended use, and to define warnings, precautions, and adverse reactions that
are associated with such pharmaceutical product in the dosage range to be
prescribed, and to support approval by a Regulatory Authority of such
pharmaceutical product or label expansion of such pharmaceutical product. A
Phase III Clinical Trial shall be deemed to have commenced when the first
patient in such trial has been dosed.

 

“Primary
Screening Program” has the meaning assigned in Section 3.8.

 

“Registration Dossier” means (i) any Drug Approval
Application or (ii) any registration or other filing made with a
Regulatory Authority to initiate or receive approval to initiate clinical
testing in a country (e.g., an IND).

 

Confidential Treatment
Requested

 

22

 

“Regulatory Authority” means, any governmental authority,
including without limitation FDA, EMEA or Koseisho, with responsibility (i) for
granting any licenses or approvals or granting pricing and/or reimbursement
approvals necessary for the marketing and sale of a Licensed Product in any
country or (ii) for allowing the conduct of clinical trials in a given
country.

 

“Related Compounds” has the meaning assigned in Section 3.2(b).

 

“Released
Compound” means a compound that becomes a Released
Compound pursuant to Section 3.2(b), 3.2(c) or 3.2(d).

 

“Released
Product(s)” means any pharmaceutical product
containing a Released Compound (alone or with other APIs), in all forms,
presentations, formulations and dosage forms.

 

“Research
Plan” means the research activities and timelines set
forth in Exhibit 1.1B, and as may be amended from time to time
by the JRC.

 

“Research Program” means a research program directed to
researching, discovering and identifying Amine Neurotransmitter
Reuptake-Inhibitors for human therapeutic uses to be performed by the Parties
pursuant to this Agreement. For the avoidance of doubt, the Research Program
does not include any activities with respect to any Licensed Compound after
such Licensed Compound achieves ECN Approval or becomes a Released Compound. A
description of the Research Program and the responsibilities of the Parties
under the Research Program is contained in the Research Plan, which is attached
hereto as Exhibit 1.1B.

 

“Research Term” has the meaning assigned in Section 2.9.

 

Confidential Treatment
Requested

 

23

 

“Reserved Indications” has the meaning
assigned in Section 4.2.1.

 

“Retained Compound” means (i) an ECN
Compound and/or (ii) a compound that becomes a Retained Compound pursuant to
Section 3.2(b), 3.2(c) or 3.2(d).

 

“Retained Product”
means any pharmaceutical product containing a Retained Compound (alone or with
other APIs), in all forms, presentations, formulations and dosage forms.

 

“Royalty Bearing Product” means
individually and collectively Unpatented Royalty Bearing Product and Patented
Royalty Bearing Product.

 

“Safety Reasons”
means it is BMS’ or one of its Affiliates’ or sublicensee’s reasonable belief
that there is an unacceptable risk for harm in humans based upon pre-clinical
data, including but not limited to data from toxicology studies, or based upon
the observation of adverse effects in humans after a Licensed Compound or
Licensed Product has been administered to or taken by humans, such as during a
clinical trial or after the launch of a Licensed Product.

 

“Synthesized Compound” means a Licensed
Compound that has been synthesized by or on behalf of BMS and/or AMRI or any of
their Affiliates prior to the end of the Combined Period.

 

 “Territory”
means the world.

 

 “Third Party”
means any person other than a Party or an Affiliate of a Party.

 

“Unpatented Royalty Bearing Product”
means a Licensed Compound or Licensed Product that is not a Patented Royalty
Bearing Product.

 

Confidential Treatment Requested

 

24

 

“Unrestricted Indications” has
the meaning assigned in Section 4.2.1.

 

 “U.S.”
or “United States” means the fifty states
of the United States, the District of Columbia, Puerto Rico, and all
territories and possessions of the United States.

 

“Valid Claim” means a claim of any
issued, unexpired patent that has not been revoked or held unenforceable or
invalid by a decision of a court or governmental agency of competent
jurisdiction from which no appeal can be taken, or with respect to which an
appeal is not taken within the time allowed for appeal, and that has not been
disclaimed or admitted to be invalid or unenforceable through reissue,
disclaimer or otherwise.

 

“Warrant Issue Agreement” means
the Warrant Issue Agreement entered into by AMRI and BMS on March 15, 2002, as
amended by the First Amendment to the
Warrant Issue Agreement, dated September 11, 2003, and by the Second Amendment
to the Warrant Issue Agreement, dated April 30, 2004.

 

1.2          Additional Defined Terms.
The following additional defined terms shall have the meanings set forth below
or in the sections of this Agreement listed below:

 

“Additional Compound” has
the meaning assigned in Section 3.2(c).

 

“AMRI Third Party Rights”
has the meaning assigned in Section 3.7.

 

“Attachment A Patent Rights”
has the meaning assigned in the Second Amendment.

 

“BMS Third Party Rights”
has the meaning assigned in Section 4.3.

 

Confidential Treatment Requested

 

25

 

“First Amendment” means
the First Amendment to the Existing License Agreement entered into by AMRI and
BMS on September 11, 2003.

 

“Second Amendment” means
the Second Amendment to the Existing License Agreement entered into by AMRI and
BMS on January 7, 2004.

 

2.             OBJECTIVE
OF RESEARCH PROGRAM; MANAGEMENT OF RESEARCH PROGRAM

 

2.1          Objective
of Research Program. The objective of the Research Program is: (i) to
discover Amine Neurotransmitter Reuptake-Inhibitors for human therapeutic uses,
and (ii) to conduct IND-enabling testing on Licensed Compounds to the point
where BMS may identify those Licensed Compounds that BMS wants to take into
clinical development.

 

2.1.1        BMS
will be solely responsible for the following activities that are necessary for
the Research Program:  performing primary
and advanced biological testing, including, but not limited to screening
compounds for biological and therapeutic activities, performing secondary
pharmacodynamic testing, performing testing related to pre-clinical
optimization of compounds (including but not limited to safety studies),
performing pharmacokinetic and ADME studies, studying pharmaceutical
formulations, and performing toxicology testing. BMS, and any Third Parties
employed by BMS in its sole discretion to carry out any such activities, shall
perform such activities in accordance with the Research Plan, and in the case
of any such Third Parties, BMS shall be responsible for their compliance with
the Research Plan. AMRI shall have no right or option to supply or perform such
activities for BMS.

 

Confidential Treatment Requested

 

26

 

2.1.2        AMRI
will be responsible for performing all necessary medicinal chemistry and
analytical chemistry research included in the Research Program related to the
discovery of Amine Neurotransmitter Reuptake-Inhibitors for human therapeutic
uses, including but not limited to designing new molecules, synthesizing
compounds for biological testing, and providing bulk samples of compounds, if
appropriate, in such quantities as may be required for preliminary compound
optimization studies. BMS agrees to pay AMRI for all such costs pursuant to
Sections 2.7 and 2.8 and Exhibit 1.1D. AMRI may not outsource to any Third
Party any chemistry research included in the Research Program for which it is
responsible without the prior written consent of BMS, which shall not be
unreasonably withheld. AMRI, and any Third Parties employed by AMRI with the
written consent of BMS, shall perform the activities for which AMRI is
responsible under the Research Program, in accordance with the Research Plan, and
in the case of any such Third Parties, AMRI shall be responsible for their
compliance with the Research Plan and the applicable provisions of this
Agreement, including but not limited to Article 9 and Section 14.1.

 

2.1.3        AMRI
and BMS recognize that each Party will have knowledge and experience in the
other Party’s areas of responsibility. With this in mind, and for the purpose
of maximizing the productivity and probability of success of the Research
Program, AMRI and BMS will each be receptive to the advice and suggestions of
the other, in the conduct of the Research Program.

 

2.1.4        The
Research Program and the responsibilities of the Parties under the Research
Program are described in more detail in the Research Plan attached hereto as Exhibit
1.1B.

 

Confidential Treatment Requested

 

27

 

2.2           Additional
Agreements. The Parties may implement certain matters of this Agreement
through a number of separate agreements, as and when required, concluded
between them or at the level of their Affiliates as the case may be. The
provisions of such agreements will be determined in reasonable and fair
negotiations along the lines of, and respecting the principles set forth in
this Agreement. AMRI and BMS guarantee that their respective Affiliates will in
all respects adhere to the terms and provisions of this Agreement and all
agreements concluded pursuant thereto.

 

2.3  Joint
Research Committee.

 

2.3.1        Formation
and Purpose. Within thirty (30) days after the Effective Date, AMRI and BMS
shall establish the Joint Research Committee, which shall oversee and
coordinate the activities of the Parties under the Research Program and
expedite the synthesis of new compounds, and the selection, testing and
Development to pre-ECN Approval of Licensed Compounds. The JRC shall have the
membership and shall operate by the procedures set forth in Section 2.4. The
JRC shall be dissolved at the end of the Combined Period unless otherwise
agreed to by the Parties.

 

2.3.2        Specific
Responsibilities of the JRC During the Term of the Research Program. In
addition to its overall responsibility for the Research Program, the JRC shall,
in particular, during the Research Term:

 

(i)            resolve
any disputes or disagreements relating to the Research Program that are
submitted to it;

 

(ii)           monitor
the progress of pre-ECN Approval studies of each Licensed Compound in the
Territory;

 

Confidential Treatment Requested

 

28

 

(iii)          facilitate
the exchange of data relating to all tests and studies performed as part of the
Research Program for each Licensed Compound;

 

(iv)          modify
the Research Plan as necessary, but in no event shall such modification
increase the chemistry resource requirements for AMRI to greater than * FTEs
without the consent of AMRI or be contrary to the intent and purpose of this
Agreement, including but not limited to the requirements of Section 2.7;

 

(v)           control
all chemical process development and manufacturing of Licensed Products for GLP
toxicity studies and clinical trials (including, without limitation,
manufacture of API (other than API that is manufactured by the commercial
process for such API), but not formulation, packaging and finishing of
supplies); and

 

(vi)          facilitate
exchange of information with respect to work being performed by BMS on ECN
Compounds.

 

2.3.3        Specific
Responsibilities of the JRC Following the Term of the Research Program.
Following the expiration of the Research Term, the JRC shall continue to have
the responsibilities enumerated in Sections 2.3.2(ii) and (vi) during the
Extended Period. During the Extended Period, the JRC shall meet once per
Calendar Quarter, or less frequently, as the Parties may decide, and at each
such meeting, BMS will update the JRC on what Licensed Compounds are being
Developed by BMS at that time, and provide AMRI with any information it might
reasonably request in order for it to assess progress of any Licensed Compound.
The JRC will also be responsible for

 

Confidential Treatment Requested

 

29

 

determining the disposition of the
Synthesized Compounds, as described in Section 3.2(b).

 

2.3.4        Decisions
of the JRC. The JRC shall make its decision on matters within its purview
only after the JRC discusses such matters and only after reasonably considering
each Party’s comments (through its JRC members) on such matters. All decisions
by the JRC must be consistent with the terms of this Agreement, and may not
modify the terms and conditions of this Agreement or the rights and obligations
of a Party under this Agreement.

 

2.4           JRC Membership and
Procedures.

 

2.4.1        Membership.
For the JRC, each of AMRI and BMS shall designate four (4) representatives with
appropriate expertise to serve as members of such Committee. Each Party may
replace any of its JRC representatives at any time upon written notice to the
other Party. The JRC shall have co-chairpersons. BMS and AMRI shall each select
from their representatives a co-chairperson for the JRC. The co-chairpersons of
the JRC shall be responsible for calling meetings, preparing and circulating an
agenda in advance of each meeting of the JRC, and preparing and issuing minutes
of each meeting within thirty (30) days thereafter; provided
that a JRC co-chairperson shall call a meeting of the JRC promptly upon the
written request of the other co-chairperson to convene such a meeting. Such
minutes will not be finalized until both chairpersons review and confirm the
accuracy of such minutes in writing.

 

2.4.2        Meetings.
Except as provided in Section 2.3.3, the JRC shall hold meetings at such times
as it elects to do so, but in no event shall such meetings be held less
frequently than once every Calendar Quarter. The JRC shall meet alternately at
AMRI’s

 

Confidential
Treatment Requested

 

30

 

facilities in
New York and BMS’ facilities in Connecticut or at such locations as the Parties
may otherwise agree. Other employees of each Party involved in the Development
and/or Commercialization of a Licensed Compound and/or Licensed Product may
attend meetings of the JRC as nonvoting participants, and, with the consent of
each Party, consultants, representatives, or advisors involved in the
Development of a Licensed Compound and/or Licensed Product may attend meetings
of the JRC as nonvoting observers; provided that each such Third Party
representative is under obligations of confidentiality and non-use applicable
to the Confidential Information of each Party that are at least as stringent as
those set forth in Article 9 and each such Third Party representative is
obligated under a written agreement to assign to a Party its entire right,
title and interest in any invention conceived by it in the course of its
activities related to this Agreement, including during its attendance at a
meeting of the JRC. Each Party shall be responsible for all of its own expenses
of participating in the JRC (including without limitation in the Working Group
and any sub-committee of the JRC). Meetings of the JRC may be held by audio or
video teleconference with the consent of each Party; provided
that at least one (1) meeting of the JRC per Calendar Year shall be held
in person. A quorum for a meeting of the JRC requires the presence of at least
one designee of each Party.

 

2.4.3        Decision-Making.
Each Party’s designees on the JRC shall, collectively, have one vote (the “Party Vote”) on all matters brought
before the JRC, which Party Vote shall be determined by majority vote (the “Designee Vote”) of such designees present
at the meeting. Except as otherwise expressly provided in this Agreement, the
JRC shall operate as to matters within its jurisdiction by unanimous Party Vote
(although the votes of the designees underlying such Party Votes need not be
unanimous); provided, that the JRC shall not have
the authority to amend or modify, or waive compliance with, this Agreement
other than to modify the Research Plan, but only as

 

Confidential Treatment Requested

 

31

 

permitted by this Agreement. Notwithstanding any other provision of
this Agreement, BMS shall have final decision-making authority and tie-breaking
vote on the JRC with respect to all matters delegated to the JRC that are set
forth in Section 2.3, which shall be made in good faith including a
consideration of the interests of both Parties to this Agreement; provided, that no such decision shall violate or breach any
provision of this Agreement, and no such authority or tie-breaking vote shall
extend to disputes concerning the validity, interpretation or construction of,
or the compliance with or breach of, this Agreement. No such decision by BMS in
the exercise of its final decision-making authority shall be subject to any
dispute resolution mechanism or procedure, including without limitation any
dispute resolution mechanism provided for in Article 17.

 

2.4.4        Meeting
Agendas. Each Party will disclose to the other proposed agenda items along
with appropriate information at least five (5) Business Days in advance of each
meeting of the JRC; provided that under exigent circumstances requiring JRC
input, a Party may provide its agenda items to the other Party within a lesser
period of time in advance of the meeting, or may propose that there not be a
specific agenda for a particular meeting, so long as such other Party consents
to such later addition of such agenda items or the absence of a specific agenda
for such JRC meeting.

 

2.4.5        Working
Groups. A working group will be
established immediately after the formation of the JRC (the “Working Group”). The Working Group will have three
chairpersons:  a chemistry chairperson
from AMRI, a chemistry chairperson from BMS and a biology chairperson from BMS.
The key responsibility of the Working Group will be the day-to-day execution of
the Research Plan. The Working Group will report directly to the JRC and will
present its progress against the Research Plan to the JRC once per Calendar
Quarter during the term of the Research Program. The

 

Confidential Treatment Requested

 

32

 

chairpersons
of the Working Group will designate employees from BMS and AMRI to be members
of the Working Group as needed to get proper representation on the Working
Group for all expertise needed to execute the Research Plan. In
addition, from time to time, the JRC may establish and delegate duties to
sub-committees on an “as-needed” basis to oversee particular projects or
activities. Each such sub-committee shall be constituted and shall operate as
the JRC determines. Sub-committees may be established on an ad hoc basis for
purposes of a specific project or on such other basis as the JRC may determine.
The Working Group and each sub-committee and their activities shall be subject
to the oversight, review and approval of, and shall report to, the JRC. Decisions
of the Working Group and each sub-committee shall be reached by consensus
between the Parties, and in no case shall either Party have a casting vote in
decisions of the Working Group, or any sub-committee of the JRC. In the case of
a non-concurrence in the Working Group, or in a sub-committee, the issue shall
be referred for a decision to the JRC. In no event shall the authority of the
Working Group exceed that specified for the JRC in this Article 2.

 

2.4.6        Interactions
Between the JRC and the Working Group, and Internal Teams. The Parties
recognize that while they will establish the JRC, the Working Group, and
sub-committees of the JRC for the purpose of the Research Program, each Party
possesses an internal structure (including without limitation various
committees, teams and review boards) that will be involved in administering
such Party’s activities under this Agreement. The JRC and the chairpersons of
the Working Group shall establish procedures to facilitate communications
between the JRC and the Working Group and any relevant internal committee, team
or board in order to maximize the efficiency of the Research Program, including
without limitation by requiring appropriate members of the JRC, the Working
Group, or any sub-committee

 

Confidential Treatment Requested

 

33

 

of the JRC to be available at reasonable times and places and upon
reasonable prior notice for making appropriate oral reports to, and responding
to reasonable inquiries from, the relevant internal committee, team or board. Furthermore,
the JRC and the Working Group will establish the necessary working level
contacts between the two Parties to ensure that necessary day-to-day
interactions will occur in implementing the Research Plan.

 

2.5           Research Program Guidelines. It is the intent of the
Parties, in working together in the Research Program to assign responsibilities
for the various operational aspects of the Research Program to those portions
of their respective organizations which have the appropriate resources,
expertise and responsibility for such functions. In all matters related to the
Research Program, the Parties shall strive to balance as best they can the
legitimate interests and concerns of the Parties and to realize the economic
potential of the Licensed Compounds and Licensed Products (taking into account
the risks and costs of further Development and Commercialization).

 

2.6           Compliance with Law. Each Party hereby covenants and agrees
to comply with all laws and regulations applicable to its activities connected
with the Development, manufacture and Commercialization (as applicable) of
Licensed Compounds and Licensed Products, including without limitation all
applicable laws in carrying out such research and development activities,
including, where applicable, Good Laboratory Practice Rules, Good Clinical
Practice Rules, Good Manufacturing Practice Rules, and Good Information
Practice Rules that are generally accepted in the pharmaceutical industry.

 

2.7           FTEs. BMS will fund * (*) FTE’s per year for each year of
the Research Term at the FTE Rate. All of such FTEs shall be deployed on the
Research Program to perform medicinal chemistry and analytical chemistry
related to the Research Program. If at any time after the

 

Confidential
Treatment Requested

 

34

 

second anniversary of the Effective Date of
the Agreement any of the * (*) FTEs are not required to work on the Research
Program, BMS shall have the right to have such funded FTEs redeployed to work
on other medicinal chemistry research for BMS.

 

2.8           In addition to the FTE Rate, BMS shall reimburse AMRI for all of its
Research Program-specific out-of-pocket costs, including but not limited to,
chemicals, reagents, materials, supplies, chromatography columns, and equipment
purchased directly for use in the Research Program. At the end of each month,
AMRI shall invoice BMS for such out-of-pocket costs incurred during such month;
provided, however, the Parties agree that any such out-of-pocket costs in
excess of $1,000.00 require the written approval of BMS, prior to being
incurred, and that BMS shall not be liable for items purchased for the Research
Program in excess of $1,000.00 per item without BMS’ prior written consent. BMS
shall pay any such invoices within fifty (50) days after receipt thereof. BMS
retains ownership of any such Research Program-specific items, including but
not limited to, chemicals, reagents, materials, supplies, chromatography
columns, and equipment, and at BMS’ option, AMRI agrees to deliver, at BMS’
expense, or to dispose of such Research Program-specific items following
completion of the Research Term or earlier termination of this Agreement. The
Parties agree that if AMRI wishes to retain any such Research Program-specific
items, BMS will consider reasonable offers from AMRI to purchase such Research
Program-specific items from BMS. AMRI shall afford BMS a reasonable
opportunity, from time to time, to verify the direct costs paid by AMRI for any
such Research Program-specific items.

 

2.9           Research Term. The Research Program shall commence on the
Effective Date and have an initial term of three (3) years (such initial term
together with any extensions thereof is referred to as the “Research
Term.”). BMS shall have the
option of extending the term of the Research Program on a year-by-year basis
thereafter. To extend the initial term of the Research Program by a year, BMS
must provide AMRI with at least ninety (90) days written

 

Confidential
Treatment Requested

 

35

 

notice prior to the end of the initial term of the Research Program
that BMS wants to extend the term of the Research Program by a year, whereupon
the term of the Research Program will be extended for a year. Thereafter, BMS
must provide AMRI with at least ninety (90) days written notice prior to the
end of the extended term of the Research Program that BMS wants to extend the
term of the Research Program by another year, whereupon the term of the
Research Program will be extended for another year. Should BMS fail to provide
such written notice, as described above, and ask to extend the term of the
Research Program less than ninety (90) days prior to the end of the initial
term of the Research Program or the extended term of the Research Program, as
the case may be, then AMRI shall have no obligation to extend the term of the
Research Program. At that time the Parties may agree to extend the Research
Program upon financial terms to be negotiated, but in no case shall the FTE
Rate be less than the then prevailing FTE Rate.

 

2.10         Records. Each Party shall maintain complete and accurate
records of all work conducted in furtherance of the Research Program and all
results, data and developments made in furtherance thereof. Such records shall
be in sufficient detail and in good scientific manner appropriate for patent
and regulatory purposes.

 

2.11         Reports. During the Combined Period, the Parties shall
provide each other with quarterly written reports during the Research Term of
the work performed under the Research Program and the results they achieve and
with quarterly written reports during the Extended Period of any work performed
in connection with the Development and Commercialization of Licensed Compounds
and Licensed Products. Each Parties’ quarterly written report shall be provided
to the other Party within approximately thirty (30) days of the end of a
Calendar Quarter and describe the work performed and the results achieved
during the just ended Calendar Quarter. After the Combined Period, and until
BMS has satisfied its diligence obligations under Section 8.2 with regard to
obtaining Approval of at least one Retained Product for at least one

 

Confidential
Treatment Requested

 

36

 

Reserved Indication in each Major Market
Country, unless Commercialization of such Product in any such Major Market
Country is not warranted because of Approval and/or Commercialization issues in
such country that are not caused by BMS or a product being marketed or to be
marketed by BMS in such country, BMS shall provide AMRI with written reports
with respect to each Retained Product under Development within sixty (60) days
after June 30 and December 31 of each calendar year, which shall describe the
work performed and results achieved during the applicable one-half year period
and key steps to be taken in the next calendar half-year. BMS shall cooperate
with AMRI to answer questions of AMRI with respect to any such report provided
after the Combined Period.

 

3.             AMRI LICENSE GRANTS TO BMS; EXCLUSIVITY;
TRANSFER OF AMRI KNOW-HOW

 

3.1           (a)           Subject
to the terms, conditions and limitations of this Agreement, including Sections
3.1(f) and 3.6, and the rights retained under Section 3.1(b), AMRI hereby
grants to BMS an exclusive license under the AMRI Technology, with the right to
sublicense as permitted by and consistent with this Agreement, to research,
discover, identify, Develop, make, have made, use, export, import, offer to
sell, sell, and Commercialize Licensed Compounds, and Licensed Products in the
Field in the Territory, which license after the Combined Period shall exclude
Released Compounds and Released Products and which license after the Combined
Period shall be co-exclusive with AMRI with respect to Licensed Compounds and
Licensed Products that are not Released Compounds and/or Released Products
and/or Retained Compounds and/or Retained Products. Any sublicense shall be
subject to the terms and conditions of Article 9, Sections 3.1(d) and
3.2(b)-(h), the first sentence of Section 3.6, and Sections 4.3, 4.4, 6.1-6.4
and 11.7 of this Agreement and BMS shall be liable for any breach of Article 9,
or the first sentence of Section 3.6, or Section 11.7  of this Agreement by a sublicensee.

 

Confidential
Treatment Requested

 

37

 

(b)           During
the Research Term, AMRI retains a license under the AMRI Technology, to perform
its obligations under Section 2.1.2 of this Agreement.

 

(c)           After
the Combined Period, BMS covenants and agrees that it will not grant any
sub-licenses with respect to Licensed Products and/or Licensed Compounds that
are not Retained Products and/or Retained Compounds, and AMRI covenants and agrees
that it will not grant any sub-licenses with respect to Licensed Compounds
and/or Licensed Products that are not Released Compounds and/or Released
Products.

 

(d)           After
the Combined Period, BMS agrees that BMS will use the co-exclusive license of
Section 3.1(a) only for the purpose of synthesizing and testing Licensed
Compounds for the purpose of designating such Licensed Compounds as Retained
Compounds and AMRI agrees that AMRI will use the co-exclusive license of
Section 3.1(a) only for the purpose of synthesizing and testing Licensed
Compounds for the purpose of designating such Licensed Compounds as Released
Compounds.

 

(e)           For
the avoidance of doubt nothing in this Section 3.1 shall be construed as a
right or license to any compound that is not a Licensed Compound, including but
not limited to any such compound that is not a Licensed Compound that now is or
in the future is under Development or being Commercialized by AMRI or any of
its Affiliates or any of their licensees or that is contained in a product that
now or in the future is under Development or being Commercialized by AMRI or
any of its Affiliates or any of their licensees.

 

(f)            Notwithstanding any provision of this
Agreement to the contrary, after the Combined Period (or in the event this
Agreement is terminated prior to the end of the Combined Period), BMS and its
Affiliates shall have the right and license under the AMRI Technology and the

 

Confidential
Treatment Requested

 

38

 

BMS Technology to make, have made, import and use all Licensed
Compounds for internal research purposes, and such internal research purposes
shall include the generation of derivatives and analogs of Licensed Compounds.

 

3.2           (a)           During
the Combined Period, BMS shall have exclusive rights to all Licensed Compounds
and all Licensed Products in the Field in the Territory so long as BMS is
Developing (pre-clinically or clinically) or Commercializing at least one
Licensed Compound or Licensed Product. For the avoidance of doubt, during the
Research Term, where BMS is paying for at least * (*) FTE’s of AMRI that are
working on the Research Program and/or Licensed Compounds, BMS shall be deemed
to be Developing or Commercializing at least one Licensed Compound or Licensed
Product.

 

(b)           At
least six (6) months prior to the end of the Extended Period, the JRC shall
initiate the selection and distribution of Synthesized Compounds as Retained
Compounds and Released Compounds in accordance with this Section 3.2(b), which
selection and distribution shall be completed by the end of the Extended Period.
It is the intention of the Parties that with respect to the selection and
distribution of Synthesized Compounds as Released Compounds and Retained
Compounds, a Party that selects a Synthesized Compound (e.g., under Section
3.2(b)(v) below) or has a Synthesized Compound distributed to it (e.g., under
Section 3.2(b)(i) or Section 3.2(b)(iii) below) that the Party is then
currently Developing or that the Party states in writing to the other Party
that it intends to Develop will have
additional compounds that are closely related structurally to such Synthesized
Compound and that may have the desirable properties of such Synthesized
Compound (“Related Compounds”) designated as Retained Compounds (where such
Synthesized Compound is selected or distributed to BMS as a Retained Compound)
or Released Compounds (where such Synthesized Compound is selected or
distributed to AMRI as a Released Compound), and such Related Compounds shall
in any event at least include the Included Compounds for such

 

Confidential
Treatment Requested

 

39

 

Synthesized Compound. Where the Party
selecting or being distributed a Synthesized Compound as a Retained Compound or
a Released Compound is not then Developing or does not state in writing to the
other Party that it intends to Develop such Synthesized Compound, no Related
Compounds for such Synthesized Compound, including but not limited to Included
Compounds for such Synthesized Compound, shall be designated as Retained
Compounds or Released Compounds as a result of such Synthesized Compound being
selected or distributed as a Retained Compound or a Released Compound, as the
case may be. In the event the Parties are unable to agree on the Related
Compounds that will be designated as Retained Compounds or Released Compounds
for a Synthesized Compound that is eligible to have Related Compounds
designated as Retained Compounds or Released Compounds, then such dispute shall
be subject to the dispute resolution procedure of Article 17. In the case of
such a dispute, the Included Compounds for that particular Synthesized Compound
shall nevertheless be designated as Retained Compounds or Released Compounds,
as the case may be, prior to the initiation of the dispute resolution procedure
of Article 17. The procedure for selecting and distributing Synthesized
Compounds as Retained Compounds and Released Compounds shall proceed in the
following order:

 

(i) 
All ECN Compounds shall be distributed to BMS as Retained Compounds, and
all Included Compounds for each ECN Compound shall be Retained Compounds.

 

(ii)  The Related Compounds other than the Included
Compounds for each ECN Compound shall be determined by the Parties and shall be
Retained Compounds.

 

(iii) 
All Synthesized Compounds that are not included in (i) and (ii) and that
are not Amine Neurotransmitter Reuptake Inhibitor Compounds shall be
distributed to AMRI as Released Compounds.

 

Confidential
Treatment Requested

 

40

 

(iv) 
Only with respect to each Synthesized Compound that is distributed to
AMRI as a Released Compound pursuant to (iii) above and that AMRI has stated in
writing to BMS that AMRI intends to Develop such Synthesized Compound shall the
Parties determine the Related Compounds, and the Related Compounds determined
by the Parties for each such Synthesized Compound shall be Released Compounds. The
Related Compounds for each such Synthesized Compound shall at a minimum include
the Included Compounds for such Synthesized Compound. For the avoidance of
doubt, the Related Compounds for each such Synthesized Compound may not include
any ECN Compound or any Related Compound of an ECN Compound. With respect to
each Synthesized Compound that is distributed to AMRI as a Released Compound
pursuant to (iii) above and that AMRI does not state in writing to BMS that it
intends to Develop such Synthesized Compound, there shall be no Related
Compounds for each such Synthesized Compound that will become Released
Compounds.

 

(v) 
With respect to Synthesized Compounds that are not Retained Compounds or
Released Compounds pursuant to (i) through (iv) above, BMS shall have the first
right to select one such Synthesized Compound as a Retained Compound. If BMS is
then currently Developing or states in writing to AMRI that it intends to
Develop such selected Synthesized Compound, the Parties shall determine the
Related Compounds for such selected Synthesized Compound, and such selected
Synthesized Compound and its Related Compounds that are not Released Compounds
shall be Retained Compounds. If BMS is not then currently Developing or does
not state in writing to AMRI that it intends to Develop such selected
Synthesized Compound, there shall be no Related Compounds for such selected
Synthesized Compound that will become Retained Compounds. AMRI shall have the
second right to select one such Synthesized Compound that is not a Retained
Compound as a Released Compound. If AMRI states in writing to BMS that it
intends to Develop such selected Synthesized Compound, the Parties shall
determine the Related Compounds for such selected Synthesized Compound, and
such selected Synthesized Compound and each of its Related Compounds that is
not a

 

Confidential
Treatment Requested

 

41

 

Retained Compound shall be Released
Compounds. If AMRI does not state in writing to BMS that it intends to Develop
such selected Synthesized Compound, there shall be no Related Compounds for
such selected Synthesized Compound that will become Released Compounds. Such
procedure shall continue until all the Synthesized Compounds have become a
Retained Compound or a Released Compound.

 

(vi) For the avoidance of doubt, the Related
Compounds of Synthesized Compounds do not have to be Synthesized Compounds, and
if there is any overlap between the Related Compounds of a Retained Compound
that is a Synthesized Compound and the Related Compounds of a Released Compound
that is a Synthesized Compound, the Party that is distributed or selects such
Retained Compound or such Released Compound first under the procedure set forth
in this Section 3.2(b) shall have the right to have the overlapping Related
Compounds included as Retained Compounds or Released Compounds, as the case may
be.

 

(c)           After
the Combined Period, if a Party or an Affiliate of such Party first synthesizes
a Licensed Compound that is not a Retained Compound or a Released Compound (“Additional Compound”) and demonstrates, in the case of BMS,
that such Additional Compound has activity potentially usable for a Reserved
Indication or Unrestricted Indication or, in the case of AMRI, such Additional
Compound has activity potentially usable for an Unrestricted Indication, then
such Additional Compound shall be a Retained Compound or a Released Compound,
as the case may be. If the relevant Party states in writing to the other Party
that it intends to Develop such Additional Compound, the Parties shall
determine the Related Compounds for such Additional Compound, and the Related
Compounds that are not Released Compounds if such Additional Compound is first
synthesized and demonstrated to have activity potentially usable for a Reserved
Indication or Unrestricted Indication by BMS or one of its Affiliates and that
are not Retained Compounds if such Additional Compound is first synthesized by
AMRI or one of its Affiliates and demonstrated to have activity

 

Confidential
Treatment Requested

 

42

 

potentially usable for an Unrestricted
Indication shall become Retained Compounds if BMS is such Party and Released
Compounds if AMRI is such Party, subject to the overlap rules of Section
3.2(b)(vi). If the relevant Party does not state in writing to the other Party
that it intends to Develop such Additional Compound, there shall be no Related
Compounds for such Additional Compound that will become Retained Compounds or
Released Compounds, as the case may be. If a Party disputes that the other
Party has met the criteria of this Section 3.2(c), then such dispute shall be
subject to the dispute resolution procedure of Article 17.

 

(d)           After
the Combined Period, in the event a Party selected or was distributed a
Synthesized Compound as a Retained Compound or a Released Compound under
Section 3.2(b)(iii), (iv) or (v) above, as the case may be, and no Related
Compounds for such Synthesized Compound were determined at the time such
Synthesized Compound was selected or distributed as a Retained Compound or a
Released Compound, as the case may be, and such Party notifies the other Party
in writing that it intends to Develop such Synthesized Compound or has begun
Developing such Synthesized Compound, the Parties shall determine the Related
Compounds for such Synthesized Compound, and such Related Compounds shall be
Retained or Released Compounds, as the case may be, subject to the overlap
rules of Section 3.2(b)(vi).

 

(e)           Once
the selection process under Section 3.2(b) is completed, as of the end of the
Extended Period, (i) BMS shall be the Lead Party for all AMRI Patent Rights and
all BMS Licensed Patent Rights that Cover a compound that is an ECN Compound as
of the end of the Extended Period or is a Retained Compound that is a Related
Compound of any such ECN Compound, or a composition containing any such
compound, or a method of use or manufacture of any such compound or any such
composition, regardless of whether any such Patent Right also Covers any
compound that is a Released Compound as of the end of the Extended Period, or a
composition containing any such compound, or a method of use or 

 

Confidential
Treatment Requested

 

43

 

manufacture of any such compound or any such
composition, (ii) BMS shall be the Lead Party for all AMRI Patent Rights and
all BMS Licensed Patent Rights not included in (i) above that Cover a compound
that is a Retained Compound as of the end of the Extended Period, or a
composition containing any such compound, or a method of use or manufacture of
any such compound or any such composition and do not Cover any compound that is
a Released Compound as of the end of the Extended Period, or a composition
containing any such compound, or a method of use or manufacture of any such
compound or any such composition, and (iii) 
AMRI shall be the Lead Party for (a) all AMRI Patent Rights that are not
included in (i) above and that Cover a compound that is a Released Compound as
of the end of the Extended Period, or a composition containing any such
compound, or a method of use or manufacture of any such compound or any such
composition and do not Cover any compound that is a Retained Compound as of the
end of the Extended Period, or a composition containing any such compound, or a
method of use or manufacture of any such compound or any such composition, and
(b) all BMS Licensed Patent Rights that are not included in (i) above, that are
licensed to AMRI under Section 4.2.2 of this Agreement, and that do not Cover
any compound that is a Retained Compound as of the end of the Extended Period,
or a composition containing any such compound, or a method of use or
manufacture of any such compound or any such composition.

 

(f)            With
respect to any AMRI Patent Right or BMS Licensed Patent Right for which there
is no Lead Party pursuant to Section 3.2(e), the first Party to initiate dosing
of a patient in a Phase IIb Clinical Trial of a Released Product (in the case
of AMRI) or a Retained Product (in the case of BMS) that is Covered, or the
manufacture or use of which is Covered, by such Patent Right or that contains a
Released Compound (in the case of AMRI) or a Retained Compound (in the case of
BMS) that is Covered, or the manufacture or use of which is Covered, by such
Patent Right, shall be the Lead Party for such Patent Right as of such dosing
date.

 

Confidential
Treatment Requested

 

44

 

(g)           With
respect to any AMRI Patent Right or BMS Licensed Patent Right for which there
is no Lead Party pursuant to Section 3.2(e) or Section 3.2(f) at the time a
Party becomes aware of a suspected
infringement of such Patent Right, such Party shall notify the other
Party of such suspected infringement and the Parties will consult and confer
with one another and decide whether an infringement Action should be brought
under such Patent Right and which Party should control any such Action that is
brought. Neither Party shall have the right to prevent the other Party from
initiating an infringement Action if the Parties do not reach agreement
pursuant to this Section 3.2(g).

 

(h)           With
respect to any Patent Right of a Third Party licensed to AMRI or BMS and
sublicensed to the other Party pursuant to Section 3.7 or 4.3, if either Party
becomes aware of a suspected
infringement of such Patent Right, such Party shall notify the other
Party of such suspected infringement and the Parties will consult and confer
with one another and decide whether an infringement Action should be brought
under such Patent Right. If the Parties decide that an infringement Action should
be brought under such Patent Right, to the extent that only one of the Parties
is permitted by such Third Party to bring such Action, such Party shall bring
and control such Action, to the extent that either Party is permitted by such
Third Party to bring such Action, the Parties will decide which Party will
bring and control such Action, and to the extent that neither Party is
permitted by such Third Party to bring such Action, such Third Party will be
requested to bring such Action pursuant to the terms of the license agreement
between such Third Party and the Party licensed by such Third Party. The right
to bring and pursue such an Action shall be controlled by the applicable
license agreement with such Third Party.

 

3.3           AMRI Covenants Regarding Licensed Compounds. During the
Combined Period, AMRI and its Affiliates will not Develop and/or Commercialize
themselves, or license any AMRI

 

Confidential
Treatment Requested

 

45

 

Technology to a Third Party to Develop and/or
Commercialize, or collaborate with a Third Party to Develop and/or
Commercialize, any Licensed Compound and/or any Licensed Product in the
Territory, for any use in the Field. During the Combined Period, AMRI and its
Affiliates will not outside of this Agreement (i) research, discover, identify,
Develop, make, have made, use, export, import, offer to sell, sell and/or
Commercialize themselves, or for or on behalf of or in collaboration with a
Third Party any Amine Neurotransmitter Reuptake-Inhibitor that is or has been
identified as an Amine Neurotransmitter Reuptake-Inhibitor through a Primary
Screening Program and/or (ii) license any AMRI Technology to any Third Party to
research, discover, identify, Develop, make, have made, use, export, import,
offer to sell, sell and/or Commercialize any Amine Neurotransmitter
Reuptake-Inhibitor that is or has been identified as an Amine Neurotransmitter
Reuptake-Inhibitor through a Primary Screening Program. Nothing in this Section
3.3 shall be construed to limit AMRI’s fee for services business, provided that
AMRI does not knowingly employ itself, or share with a Third Party, AMRI
Technology, for the purpose of, researching, discovering, identifying, making,
using, exporting, importing, Developing, offering to sell, selling and/or
Commercializing any Amine Neurotransmitter Reuptake Inhibitor.

 

3.4           Documentation.
During the ninety (90) day period following the Effective Date, AMRI shall
provide BMS as soon as reasonably possible with one (1) electronic or paper
copy of all material documents, data or other information Controlled by AMRI or
any of its Affiliates as of the Effective Date to the extent that such
documents, data and information contain or comprise AMRI Know-How licensed
under Article 3. AMRI shall be responsible for the cost of providing to BMS one
(1) set of copies only.

 

3.5           Technical
Assistance. Without charge to BMS, during the three (3) month period
following the Effective Date, AMRI shall reasonably cooperate with BMS to
assist BMS with understanding and using the AMRI Know-How provided to BMS under
Section 3.4. Such cooperation shall include, without limitation, providing BMS
with reasonable access by

 

Confidential Treatment Requested

 

46

 

teleconference or in-person at AMRI’s facilities (subject to AMRI’s
customary rules and restrictions with respect to site visits by non-AMRI
personnel) to AMRI personnel directly involved in the research, discovery,
identification and Development of Licensed Compounds and Licensed Products to
provide technical assistance and consultation in connection with the AMRI
Know-How transferred under Section 3.4.

 

3.6           BMS agrees that BMS will not use AMRI Technology, except with respect
to Licensed Compounds and Licensed Products during the Combined Period and
thereafter only with respect to Retained Compounds and Retained Products as to
which BMS is licensed under this Agreement and with respect to the synthesis
and testing of Licensed Compounds that are not Retained Compounds in order to
identify Licensed Compounds that BMS may want to select as Retained Compounds
under Section 3.2(c). Except as provided in Article 13, AMRI agrees that AMRI
will only use BMS Technology during the Research Term as permitted under
Section 4.1, will not use BMS Technology during the Extended Period except as
expressly permitted in a separate agreement, such as an agreement to provide
clinical supplies of a Licensed Product, and will only use BMS Technology after
the Extended Period as permitted under Section 4.2.2 with respect to Released
Compounds and Released Products and with respect to the synthesis and testing
of Licensed Compounds that are not Released Compounds in order to identify
Licensed Compounds that AMRI may want to select as Released Compounds under
Section 3.2(c).

 

3.7           In the event that prior to the end of the
Combined Period, AMRI is licensed under AMRI Third Party Rights that are useful
for the research, discovery, identification, Development, manufacture, use,
exportation, importation, offer for sale and/or Commercialization of any
Licensed Compound and/or Licensed Product and AMRI has the right to grant a
sublicense to BMS, AMRI shall promptly notify BMS after obtaining any such AMRI
Third Party Rights, and then at the request of BMS during or after the Combined
Period, AMRI shall grant to BMS such a sublicense to the fullest extent
permitted under the license under which the

 

Confidential Treatment Requested

 

47

 

sublicense
is granted and subject to the terms, conditions and requirements thereof to
research, discover, identify, Develop, manufacture, use, export, import, offer
for sale and/or Commercialize Licensed Compounds and Licensed Products to the
same extent and subject to the same restrictions as set forth in Section 3.1(a)
to (e). Such sublicense shall be granted by an amendment to this Agreement, and
without additional consideration to AMRI and provided that BMS agrees to pay
any and all amounts due to such Third Party as a direct result of the granting
of the sublicense and any other payments (royalties, milestones, etc.) due
thereunder as a direct result of BMS being a sublicensee and/or its activities
as a sublicensee, which payments shall not be creditable against any royalties
and/or payments due to AMRI under this Agreement.

 

3.8           During
the Combined Period, AMRI and its Affiliates will not conduct any screening
program specifically directed to identifying compounds as Amine
Neurotransmitter Reuptake-Inhibitor Compounds that are not Licensed Compounds
(and for the avoidance of doubt, such excluded screening program is limited to
a screening program that uses equilibrium binding assays for at least two of
the three biogenic amine transporters, norepinephrine, serotonin and dopamine,
as primary screens to identify compounds as Amine Neurotransmitter Reuptake
Inhibitor Compounds (i.e., the purpose of the screens is to identify compounds
whose intended activity is that of an Amine Neurotransmitter Reuptake Inhibitor
Compound)) (a “Primary Screening Program”)
themselves, or for or on behalf of or in collaboration with a Third Party.

 

4.             GRANT OF
LICENSES BY BMS TO AMRI

 

4.1           Grant to AMRI During the Research Program. Subject to the
terms and conditions of this Agreement, BMS hereby grants to AMRI a limited,
non-exclusive license in the Territory, without the right to sublicense, under
BMS Technology solely to the extent necessary for AMRI to perform AMRI’s
obligations under the Research Program.

 

Confidential Treatment Requested

 

48

 

4.2           Grant to AMRI for Released Compounds.

 

4.2.1        The
Unrestricted Indications. At the end of the Extended Period, if there is
only one ECN Compound that is still under Development or being Commercialized
by BMS as of such date, BMS may notify AMRI of * Indications for which BMS may
want to Develop or Commercialize such ECN Compound, and if there is more than
one such ECN Compound as of such date, BMS may notify AMRI for each such ECN
Compound of * Indications for which BMS may want to Develop or Commercialize
each such ECN Compound, and if there is
no such ECN Compound as of such date but BMS has an active discovery program
for at least one Licensed Compound as of such date, BMS may notify AMRI of *
Indications for which BMS may want to Develop such Licensed Compound. For
the avoidance of doubt, an ECN Compound that is a back-up for a Lead Product
and for which milestones are not to be paid under Section 10.4, shall not be
counted as an ECN Compound for determining the number of Reserved Indications
to which BMS is entitled. For example, if there are * ECN Compounds at the end
of the Extended Period that are still under Development or being Commercialized
by BMS as of such date, BMS may notify AMRI of * Indications (i.e., *
Indications per ECN Compound). All such Indications for which AMRI receives
such written notification shall collectively be called the “Reserved
Indications.”  The “Unrestricted Indications” shall be all Indications other
than the Reserved Indications. After the end of the Combined Period, BMS, by
written notice to AMRI, may, with respect to an ECN Compound, change an
existing Reserved Indication(s) therefor to an existing Reserved Indication(s)
for another ECN Compound as long as an ECN Compound does not have more than *
Reserved Indications when there is only one ECN Compound and each ECN Compound
does not have more than * Reserved Indications when there is more than one ECN
Compound.

 

Confidential
Treatment Requested

 

49

 

4.2.2                        License Grant in the Unrestricted Field. After the end of the Extended Period, subject
to the terms, conditions and limitations of this Agreement, BMS agrees to grant and hereby grants to
AMRI (i) a royalty-free, exclusive license (with the right to sublicense
as permitted by and consistent with this Agreement,) in the Territory under that BMS Technology that is reasonably
required by AMRI to research, make, have made, use, sell, Develop and/or
Commercialize one or more Released Compounds and/or Released Products for one
or more Unrestricted Indications, to research, Develop, make, have made, use,
sell, offer to sell, export, import and Commercialize the Released Compounds
and Released Products for the Unrestricted Indications and (ii) a
non-exclusive, royalty-free license (with no right to sublicense) in the
Territory to synthesize and test Licensed Compounds that are not Retained
Compounds in order to identify Licensed Compounds that AMRI may want to
select as Released Compounds under Section 3.2(c) under that BMS
Technology that is reasonably required by AMRI to so synthesize and test such
Licensed Compounds. Any sublicense shall be subject to the terms and conditions
of Article 9,  Sections 3.1(d) and
3.2(c)-(h), the second sentence of Section 3.6, and Section 3.8 of
this Agreement and AMRI shall be liable for any breach of Article 9, the
second sentence of Section 3.6, or Section 3.8 of this Agreement by a
sublicensee. For the avoidance of doubt, AMRI shall have no right to Develop or
Commercialize any Released Compound or Released Product outside the
Unrestricted Indications, and BMS shall have no right to Develop or
Commercialize any Released Compounds or Released Products for any Indication,
and BMS shall have the right to Develop and Commercialize any Retained Compound
and any Retained Product for any Indication. For the further avoidance of
doubt, nothing in this Section 4.2.2 or this Agreement shall be construed
as a right or license to (a) any Know-How or Patent Right that is
Controlled by BMS or any Affiliate of BMS that may be useful but is not
reasonably required by AMRI to

 

Confidential Treatment Requested

 

50

 

research, make, have made, use, sell, offer to sell,
export, import, Develop and/or Commercialize Released Compounds and/or Released
Products for the Unrestricted Indications or reasonably required by AMRI to
synthesize and test Licensed Compounds that are not Retained Compounds in order
to identify Licensed Compounds that AMRI may want to select as Released
Compounds under Section 3.2(c), (b) any compound that is not a
Licensed Compound, including but not limited to any such compound that is not a
Licensed Compound that now is or in the future is under Development or being
Commercialized by BMS or any of its Affiliates or any of their licensees or
that is contained in a product that now is or in the future is under
Development or being Commercialized by BMS or any of its Affiliates or any of
their licensees, or (c) any Know-How or Patent Right Controlled by BMS or
any Affiliate of BMS relating to any such compound covered by (b) that is
not a Licensed Compound or any product containing any such compound covered by (b) that
is not a Licensed Compound. In
the event that AMRI wants to license the Development and/or Commercialization
of any Released Compound and/or a Released Product for the Unrestricted
Indications to a Third Party, BMS shall have a right of first refusal for such
Released Compound and/or Released Product as set forth in Article 5.

 

4.3                                 In the event that prior to the end of the
Combined Period, BMS is licensed under Patent Rights and/or Know How of a Third
Party that are reasonably required by AMRI for the research,  Development, manufacture, use, exportation,
importation, offer for sale and/or Commercialization of any Released Compound,
and/or Released Product ( “BMS Third Party Rights”) and BMS has the right to
grant a sublicense thereunder to AMRI, BMS shall promptly notify AMRI after
obtaining any such BMS Third Party Rights, and then at the request of AMRI
during or after the Combined Period, BMS shall grant to AMRI such a sublicense
to the fullest extent permitted under the license under which the sublicense is
granted and subject to the terms, conditions and requirements thereof to
research, Develop, manufacture, have manufactured, use, export, import, offer
for sale, sell and/or

 

Confidential Treatment Requested

 

51

 

Commercialize Released Compounds, and
Released Products for the Unrestricted Indications to the same extent and
subject to the same restrictions as set forth in Section 4.2.2. Such
sublicense shall be granted by an amendment to this Agreement, and without
additional consideration to BMS and provided that AMRI agrees to pay any and
all amounts due to such Third Party as a direct result of the granting of the
sublicense and any other payments (royalties, milestones, etc.) due thereunder
as a direct result of AMRI being a sublicensee and/or its activities as a sublicensee.

 

4.4                                During the Combined
Period, BMS and its Affiliates will not conduct any Primary Screening Program
with respect to any compound that is not a Licensed Compound themselves or on
behalf of or in collaboration with a Third Party. During the Combined Period,
BMS and its Affiliates will also not conduct any Development and/or
Commercialization activities themselves, or for or on behalf of or in
collaboration with a Third Party, relating to any Amine Neurotransmitter
Reuptake-Inhibitor Compounds that are or have been identified as Amine
Neurotransmitter Reuptake-Inhibitor Compounds through a Primary Screening
Program and that are not Licensed Compounds.

 

4.5                                 Notwithstanding any provision of this
Agreement to the contrary, after the Combined Period, AMRI and its Affiliates
shall have the right and license under the AMRI Technology and the BMS
Technology to make, have made, import and use all Licensed Compounds for
internal research purposes, and such internal research purposes shall include
the generation of derivatives and analogs of Licensed Compounds.

 

5.                                      BMS
RIGHT OF FIRST REFUSAL

 

5.1                                 BMS Right of First Refusal. BMS shall have a right of first
refusal with respect to Released Compounds and Released Products as follows.

 

Confidential Treatment Requested

 

52

 

5.1.1                        In the event that AMRI desires at any time to enter into a License
arrangement with respect to a Released Compound and/or a Released Product,
before entering into an agreement with any Third Party with respect to such
License, AMRI will notify BMS in writing of its desire, including information
as to the scope and type of License and the Released Compounds and Released
Products that are to be part of such License and a comprehensive,
confidential package of information with respect thereto that is in the
possession of AMRI (a “License Notice”).
During the thirty (30) day period after AMRI so notifies BMS, AMRI shall
promptly provide BMS with any additional information in the possession of AMRI
that BMS reasonably requests from AMRI relating to the Released Compounds and
Released Products that will be the subject of such License.  If BMS notifies AMRI in writing of its
election to pursue a License for such Released Compound(s) and/or Released Product(s)
within * (*) days after BMS’ receipt of such License Notice, AMRI and BMS shall
enter into good faith negotiations with respect to such License for a period of
* (*) days following AMRI’s receipt of such election from BMS (the “Negotiation Period”). During the Negotiation Period, AMRI
will provide BMS with an opportunity to make a proposal of terms and conditions
with respect to such License and AMRI will either accept the proposal, refuse
the proposal or provide a counter offer to BMS. During the Negotiation
Period, each Party may revise the terms and conditions of its proposal to
the other Party and the last such term sheet that BMS delivers to AMRI shall be
deemed the term sheet that BMS delivers to AMRI for purposes of Section 5.2
below. Such * day Negotiation Period shall be extended by an additional * (*)
days if AMRI and BMS reach agreement in principle with respect to a term sheet
with respect to such License during such * day Negotiation Period.

 

5.1.2                        If AMRI
and BMS do not conclude an agreement or an agreement in principle with respect
to such License during the * day Negotiation Period or an agreement in the * (*)
day extended period, AMRI will then be free to enter into an agreement

 

Confidential Treatment Requested

 

53

 

with any Third
Party regarding such a License for such Released Compound(s) and/or Released
Product(s)  that were the subject of the
License Notice delivered to BMS under Section 5.1.1, and free to enter
into any such License, subject to the provisions set forth in Section 5.2 and provided that such License has the same
territory, the same scope of Released Compound(s) and/or Released Product(s),
the same scope of Indications, and the same field of use as offered to BMS in
the License Notice delivered to BMS under Section 5.1.1.

 

5.2                                 To
the extent that BMS’ rights under this Article 5 have not terminated or
expired, AMRI shall not enter into any agreement with any Third Party with
respect to a License under terms and conditions which are Less Favorable to
AMRI than the terms and conditions set forth in the term sheet last offered by
BMS to AMRI, unless BMS is unwilling to enter into a license agreement for the
Less Favorable to AMRI terms. AMRI shall have the option, exercisable in its
sole discretion, of having an Independent Evaluator render a decision binding
upon AMRI and BMS as to whether a Third Party Term Sheet is Less Favorable to
AMRI than the terms and conditions set forth in the term sheet last offered by
BMS to AMRI.

 

5.2.1                        If AMRI intends to enter into a License
agreement with a Third Party and wants to exercise its option to have an
Independent Evaluator determine whether the Third Party Term Sheet with such
Third Party is Less Favorable to AMRI than the terms and conditions set
forth in the term sheet last offered by BMS to AMRI, AMRI shall so notify BMS and this Section 5.2.1 and Sections
5.2.2, 5.2.3 and 5.2.4 shall apply. AMRI shall bear the costs of engaging the
Independent Evaluator. AMRI shall provide the Independent Evaluator with a copy
of the Third Party Term Sheet with such Third Party, without revealing the
identity of such Third Party, and shall also provide the Independent Evaluator
with a copy of the last term sheet offered by BMS to AMRI.

 

Confidential Treatment Requested

 

54

 

5.2.2                        The Independent Evaluator shall promptly make
a determination of whether the terms and conditions of the Third Party Term
Sheet are Less Favorable to AMRI than the terms and conditions of the last term
sheet offered by BMS to AMRI in accordance with Section 5.4.1 below. The
Independent Evaluator shall be required to make a definite determination based
on the information provided to it as to whether or not the Third Party Term
Sheet is Less Favorable to AMRI than the last term sheet offered by BMS to AMRI.
The Independent Evaluator shall not have the authority to render any other
determination or to respond without a decision, and the Parties agree (i) that
the Independent Evaluator shall have no liability in any way by reason of its
decision, and (ii) to be bound by and not to challenge such determination,
except in the case where a Party alleges that the Independent Evaluator did not
act in good faith, breached a fiduciary duty or engaged in willful misconduct.

 

5.2.3                        If the Independent Evaluator determines that
the Third Party Term Sheet was not Less Favorable to AMRI than the last Term
Sheet offered by BMS to AMRI, AMRI will be free to enter into an agreement with
such Third Party having the terms and conditions set forth in the Third Party
Term Sheet (or terms and conditions more favorable to AMRI than the terms and
conditions set forth in the Third Party Term Sheet) and such other terms and
conditions as AMRI and the Third Party agree, provided
however, that AMRI shall not have the right to enter into an
agreement with respect to such License with a Third Party having terms and
conditions that are Less Favorable to AMRI than the terms and conditions set
forth in the Third Party Term Sheet presented to the Independent Evaluator.

 

5.2.4                        If the Independent Evaluator determines that
the terms and conditions set forth in the Third Party Term Sheet are Less
Favorable to AMRI than the terms and conditions last offered by BMS to AMRI,
AMRI may at its discretion continue its negotiation with the Third Party,
with the objective of obtaining financial terms and conditions

 

Confidential Treatment Requested

 

55

 

that are not Less Favorable
to AMRI than the financial terms and conditions last offered by BMS to AMRI. Alternatively,
AMRI may offer such financial terms and conditions set out in the Third
Party Term Sheet to BMS (or AMRI may offer BMS terms and conditions
financially less favorable to AMRI than those set out in the Third Party Term
Sheet). In the event that AMRI makes such offer to BMS, AMRI shall also offer
to BMS the same terms with respect to governance and decision-making as set out
in the Third Party Term Sheet (or otherwise proposed by AMRI to the Third
Party). If AMRI offers such terms and conditions for a License to BMS in
accordance with this Section 5.2.4, BMS will have an additional fifteen
(15) business days to provide AMRI with notice that BMS desires to enter into
an agreement with AMRI on substantially the same financial terms and conditions
as set out in such term sheet (an “Acceptance Notice”). If an Acceptance Notice
is provided by BMS, the Parties will work diligently to expeditiously complete
such an agreement. If an Acceptance Notice is not provided by BMS within such
fifteen (15) business day period, or if AMRI and BMS do not execute a binding
License agreement within ninety (90) days after receipt of the Acceptance
Notice, AMRI will be free to enter into an agreement with such Third Party
having the terms and conditions not financially Less Favorable to AMRI than
those set forth in the Third Party Term Sheet. Such ninety (90) day period
shall be extended for the period of any delays in completing the License
agreement caused by reasons beyond the reasonable control of BMS.

 

5.3                                 Any
License agreement entered into by AMRI in accordance with Section 5.2
shall be consistent with the terms and conditions of this Agreement and shall
fully enable AMRI to fully perform all of its obligations under this
Agreement which will continue in effect.

 

5.4                                 Certain Definitions. For the purposes of this Article 5,
the following capitalized terms shall have the following meanings:

 

Confidential Treatment Requested

 

56

 

5.4.1                        “Less
Favorable to AMRI” means, with respect to a Third Party Term Sheet compared
to the most recent term sheet offered by BMS to AMRI, that the Third Party Term
Sheet contains financial terms which, taken as a whole, are materially less
favorable to AMRI than financial terms set forth in the last term sheet for a
License offered to AMRI by BMS. 
The determination as to whether the financial terms are materially less
favorable to AMRI than the financial terms set forth in the last term sheet for
a License offered to AMRI by BMS shall be based upon the present value of the
total payments, adjusting for the risk of pharmaceutical compound development
(i.e., risk adjusted net present value (NPV) analysis), with the same assumptions
applied in the same manner to both the Third Party Term Sheet and the last term
sheet offered to AMRI by BMS. In such evaluation, payments of equity shall
be given less value than corresponding payments in cash. The assumed
probability of Approval for the risk assessment shall be based on industry
standards for compounds at the same stage of development.

 

5.4.2                        “Third
Party Term Sheet” means a term sheet summarizing the key terms and
conditions on which AMRI would be willing to enter into a potential License
arrangement with a Third Party, and such
a Third Party term sheet shall contain a level of detail comparable to the term
sheet last provided by BMS under Section 5.1.1.

 

5.4.3                            “Independent Evaluator” means an individual with relevant
expertise in the Commercialization of pharmaceutical products employed by an
independent certified public accounting firm or investment bank of nationally
recognized standing that,  at the time of
the evaluation set forth in Section 5.2 is not providing, and during the
twelve (12) months prior to such evaluation has not provided, auditing or
consulting services to either Party, and that is selected by AMRI and
reasonably acceptable to BMS, or such other qualified person as the Parties may mutually
agree to.

 

Confidential Treatment Requested

 

57

 

6.                                      OUTSOURCING

 

6.1                                 Subcontracting. Except for those activities for which AMRI
is responsible for performing for the Research Program, and subject to Section 6.2,
the JRC or BMS may perform any activities in support of the research,
discovery, identification, Development, exportation, importation, manufacture,
offering for sale or Commercialization of Licensed Compounds and Licensed
Products through subcontracting to a Third Party contractor or contract service
organization.

 

6.2                                 AMRI Option. AMRI shall have a first option to be the
supplier of any outsourcing of chemistry research by the JRC or BMS that is not
included in the chemistry research to be carried out by AMRI pursuant to the Research
Plan and that directly relates to the Research Program or directly relates to
the Development of Licensed Compounds, including new chemical synthesis, and
analytical development. (For the avoidance of doubt, this option shall not
apply to the outsourcing of chemistry process development, the manufacture of
any API or the manufacture of any clinical or commercial supplies of any
Licensed Products, and such outsourcing is dealt with below in Sections 6.3, 6.4 and 6.5.)  In the event the JRC or BMS wants to
outsource any such chemistry research, it shall notify AMRI in writing that it
wants to do so (such notice the “Chemistry Outsourcing
Notice”). If AMRI is both willing and able to provide such chemistry
research at the then current FTE Rate, AMRI shall so notify the JRC or BMS
within ten (10) business days of the receipt of the Chemistry Outsourcing
Notice, whereupon the JRC or BMS will not outsource such chemistry research to
a Third Party and will outsource such chemistry research to AMRI. If, however,
AMRI fails to notify the JRC or BMS within (10) business days of the
receipt of the Chemistry Outsourcing Notice that AMRI is both willing and able
to provide such chemistry research at the then current FTE Rate or AMRI
notifies the

 

Confidential Treatment Requested

 

58

 

JRC or BMS within (10) business days of
the receipt of the Chemistry Outsourcing Notice that AMRI is not interested in
providing such chemistry research at the then current FTE Rate, then the JRC or
BMS shall be free to outsource such chemistry research to any Third Party.

 

6.3                                 Chemical Process Development and Non-Commercial Manufacture of API and
Licensed Products. During its existence, the JRC will control all
chemical process development and manufacturing of Licensed Products for GLP
toxicity studies and clinical trials (including, without limitation,
manufacture of API (other than API that is manufactured by the commercial
process for such API), but not formulation, packaging and finishing of
supplies), and after the expiration of the Extended Period, BMS will control
all such activities. During the Extended Period, AMRI shall notify the BMS
co-chairperson of the JRC on each anniversary of the Effective Date, and after
the Extended Period, AMRI shall notify BMS, pursuant to Section 18.5, on
the anniversary of the Effective Date, whether AMRI has an interest in
performing such activities for BMS in the event that BMS seeks to outsource any
of the foregoing activities. AMRI acknowledges that where BMS seeks to
outsource any of the foregoing activities, BMS must have the flexibility to
have dual sources for each such activity, and in some cases, additional sources.
As a result, in the event that BMS desires to use an entity other than BMS to
perform such activities, BMS will give AMRI written notice of such desire
and will solicit bids from AMRI and Third Parties and will select AMRI to perform such
activities, alone or in addition to one or more Third Parties, provided that (a) AMRI
submits a bid to perform such activities, (b) AMRI can meet the
quality targets for such activities, (c) AMRI can meet the quality
performance criteria for such activities, (d) AMRI can meet the delivery
timelines for such activities, (e) AMRI’s bid is competitive with the
other bids from Third Parties for such activities, and (f) AMRI enters
into a quality agreement for such activities containing standard BMS terms. In
determining whether AMRI can

 

Confidential Treatment Requested

 

59

 

meet the quality targets, quality performance
criteria and the timelines for an activity, BMS may rely upon its prior
experiences with AMRI for the provision of process development work.  As long as AMRI can meet these criteria, it
shall receive a portion of the outsourcing work.

 

6.4                                 Commercial Manufacture of API and Licensed Products. With
respect to the manufacture of API (to be manufactured by the commercial process
for such API) and/or the formulation, packaging and/or finishing of Licensed
Product (as the case may be) for Development purposes or commercial sale,
in the event that BMS elects not to manufacture all of its requirements of such
API or to formulate, package and/or finish all of its requirements of such
Licensed Product (as the case may be) BMS will select AMRI to manufacture
at least * percent of BMS’ outsourced requirements of such API or to formulate,
package and/or finish at least * percent of BMS’ outsourced requirements of
such Licensed Product (as the case may be) provided that (a) AMRI
submits a bid to manufacture such API and/or formulate, package and/or finish
such Licensed Product (as the case may be), (b) AMRI has the
capabilities to manufacture such API and/or formulate, package and/or finish
such Licensed Product (as the case may be), (c) AMRI’s bid is
competitive with the other bids from Third Parties for the manufacture of such
API and/or the formulation, packaging and/or finishing of such Licensed Product
(as the case may be), and (d) AMRI meets the following criteria:

 

(i)  AMRI must have a manufacturing
plant in existence at the time it submits its bid with all necessary regulatory
permits and certifications that meet all applicable laws and regulations.

 

(ii)  Such plant must be suitable for
the production of products regulated by the FDA.

 

Confidential Treatment Requested

 

60

 

(iii)  Such plant must have existing
capacity at the time AMRI’s bid is submitted to meet the first three years of
AMRI’s potential allocation of BMS’ forecasted requirements (as of the time of
the bid).

 

(iv) AMRI may subcontract any
portion, but not all, of the manufacture of any such API and/or the
formulation, packaging and/or finishing of any such Licensed Product (as the
case may be) with the written consent of BMS, which consent shall not be
withheld unreasonably.

 

(v)  AMRI must not have any open FDA Form 483
observations from the FDA or any unaddressed written document from a regulatory
body equivalent to the FDA indicating non-compliance with cGMPs.

 

(vi) AMRI must enter into a quality
agreement containing standard BMS terms.

 

6.5                                 The
JRC or BMS shall be free to use any Third Party to perform any of the
activities described under Sections 6.2, 6.3 and 6.4 provided the applicable
process set forth above in Section 6.2, 6.3 or 6.4 is followed. Any breach
by the JRC or BMS of Sections 6.2, 6.3
or 6.4 shall not be a material breach of this Agreement and AMRI may not
terminate this Agreement for any such breach.

 

7.                      CLINICAL DEVELOPMENT;  REGULATORY
FILINGS;  COMMERCIALIZATION

 

7.1                                 Non-clinical Development Outside the Research Program. As
between the Parties, BMS shall have sole responsibility for, and shall bear the
cost of conducting all non-clinical Development that is not included in the
Research Program, and shall bear the cost of its

 

Confidential Treatment
Requested

 

61

 

activities in carrying out its
responsibilities under the Research Program and the costs incurred in
accordance with Sections 2.7 and 2.8.

 

7.2                                 Clinical
Development Responsibilities and Costs. As between the Parties, BMS shall
have sole responsibility for, and shall bear the cost of conducting all
clinical trials with respect to the Licensed Compounds, and Licensed Products
being Developed by BMS during the Combined Period and with respect to the
Retained Compounds and Retained Products being Developed by BMS after the
Combined Period. At the cost and expense of BMS, AMRI will cooperate with and
support BMS, as may be reasonably necessary, in obtaining Approvals for
any Retained Product, in the Territory, including providing necessary
documents, or other materials required by law to file Registration Dossiers or
obtain Approvals.

 

7.3                                 Regulatory
Responsibilities and Costs. As between the Parties, BMS shall have sole
responsibility for, and shall bear the cost of preparing, all regulatory
filings and related submissions with respect to the Licensed Compounds and
Licensed Products being Developed by BMS during the Combined Period and with
respect to the Retained Compounds and Retained Products being Developed by BMS
after the Combined Period, and BMS shall own all such regulatory filings,
including all Registration Dossiers.

 

7.4                                 Commercialization. As
between the Parties, BMS shall have sole responsibility for, and shall bear the
cost of Commercializing Retained Products in the Territory.

 

8.                                      COMMITMENT
UNDERTAKINGS OF AMRI AND BMS

 

8.1                                 Undertakings of AMRI and BMS. During the Research Term,
each Party will promptly communicate to the other Party all Know-How which, in
the case of BMS, is BMS Know-How and which, in the case of AMRI, is AMRI
Know-How.

 

Confidential Treatment
Requested

 

62

 

8.2                                 Diligent
Performance. Each Party
shall use Commercially Reasonable Efforts during the Research Term to perform that
part of the Research Program for which such Party is responsible pursuant
to the terms and conditions of this Agreement, and to complete such tasks in
compliance with the Research Plan. BMS shall use Commercially Reasonable
Efforts to Develop or Commercialize at least one Licensed Compound or Licensed
Product. During the Combined Period, such Commercially Reasonable Efforts shall
be satisfied if BMS uses Commercially Reasonable Efforts to conduct the
Development of at least one Licensed Compound to obtain ECN Approval thereof. During
the period that BMS is funding at least * (*) FTEs of AMRI that are working on
the Research Program, BMS shall be deemed to be using such Commercially Reasonable
Efforts and to have satisfied its obligation under this Agreement to use
Commercially Reasonable Efforts to Develop or Commercialize at least one
Licensed Compound or Licensed
Product. After the Combined Period, BMS shall use Commercially Reasonable
Efforts to conduct the Development, manufacturing, and obtain Approval of at
least one Retained Product for at least one Reserved Indication in the United
States. After Approval in the United States of a Retained Product for an
Indication, BMS shall use Commercially Reasonable Efforts to Commercialize each
such Retained Product for each such Indication in the United States. With
respect to countries outside the United States, after the Combined Period BMS
shall use Commercially Reasonable Efforts to obtain Approval of at least one
Retained Product for at least one Reserved Indication in each Major Market
Country other than the United States unless Commercialization of such Product
in any such Major Market Country is not warranted because of Approval and/or
Commercialization issues in such country that are not caused by BMS or a
product being marketed or to be marketed by BMS in such country. As reasonably
requested by AMRI, BMS shall provide AMRI with information as to why
Commercialization is not warranted. In
the event that BMS is complying with BMS’ obligations under this Section 8.2
with respect to one Retained Product, then all Reserved Indications shall
remain Reserved Indications. In

 

Confidential Treatment Requested

 

63

 

addition, if BMS is meeting its obligations under
this Section 8.2 with respect to one Retained Product, then BMS shall not
be obligated to Develop or Commercialize any other Retained Product.

 

8.3                                 In the event that there is a Reserved
Indication that is not a Reserved Indication for a Retained Compound that is
being Developed pursuant to Section 8.2, AMRI and BMS shall discuss in
good faith changing such Reserved Indication to an Unrestricted Indication.

 

8.4                                 In the event that within three (3) years
after the end of the Combined Period BMS has not initiated a Phase I Clinical
Trial with respect to an ECN Compound that was an ECN Compound at the end of
the Combined Period and there is a Reserved Indication for such ECN Compound
that is not a Reserved Indication for an ECN Compound that is being Developed
pursuant to Section 8.2, BMS agrees to change such Reserved Indication to
an Unrestricted Indication unless BMS can reasonably demonstrate a good faith
intent to initiate Development without an unreasonable delay and to continue to
Develop for Approval in the United States a Retained Product as to which such
Reserved Indication is a Reserved Indication. For the avoidance of doubt, in
the event BMS does demonstrate a good faith intent to initiate Development
without an unreasonable delay and to continue to Develop for Approval in the
United States a Retained Product for such Reserved Indication, all other
Reserved Indications associated with such Retained Product shall also remain
Reserved Indications.

 

8.5                                 In the event that BMS terminates Development
of an ECN Compound after initiation of a clinical trial with respect thereto
and BMS does not pursue in good faith a program to identify a Licensed Compound
that is licensed to BMS under this Agreement to replace such ECN Compound or
does not identify another ECN Compound licensed to BMS under this Agreement
that is such a replacement within two (2) years after the termination of
such

 

Confidential Treatment
Requested

 

64

 

clinical trials and there is a Reserved Indication
for such ECN Compound that is not a Reserved Indication for an ECN Compound
that is being Developed pursuant to Section 8.2, then BMS agrees to change
such Reserved Indication to an Unrestricted Indication unless BMS can
reasonably demonstrate a good faith intent to initiate Development without an
unreasonable delay and to continue to Develop for Approval in the United States
a Retained Product for such Reserved Indication. For the avoidance of doubt, in
the event BMS does demonstrate a good faith intent to initiate Development
without an unreasonable delay and to continue to Develop for Approval in the
United States a Retained Product for such Reserved Indication, all other Reserved
Indications associated with such Retained Product shall also remain Reserved
Indications.

 

8.6                                 In the event that BMS or any of its
Affiliates decides that BMS will discontinue and/or suspend Development and/or
Commercialization of a Licensed Product and/or such Development and/or
Commercialization is discontinued or suspended, BMS shall provide AMRI promptly
with written notice thereof.

 

Confidential Treatment
Requested

 

65

 

9.                                      CONFIDENTIAL INFORMATION.

 

9.1                                 In General. During the term of this Agreement, and for a
period of ten (10) years after this Agreement expires or terminates, each
Party will maintain all Confidential Information received by it under such
Agreement in trust and confidence and will not disclose any such Confidential
Information to any Third Party or use any such Confidential Information for any
purposes in each case other than those permitted by this Agreement. Confidential
Information shall not be used for any purpose or in any manner that would
constitute a violation of any laws or regulations, including without limitation
the export control laws of the United States. Confidential Information shall
not be reproduced in any form except as required to accomplish the intent
of this Agreement. No Confidential Information shall be disclosed to any
Affiliate or any employee, agent, consultant, contractor, clinical
investigator, or sublicensee of such Party or its Affiliates who does not have
a need for such information. To the extent that disclosure is authorized by
this Agreement, the disclosing Party will obtain prior agreement from its
employees, agents, consultants, contractors, Affiliates, sublicensees, and
clinical investigators to whom disclosure is to be made to hold in confidence
and not make use of such information for any purpose other than those permitted
by this Agreement. Each Party will use at least the same standard of care as it
uses to protect its own Confidential Information of a similar nature to ensure
that such employees, agents, consultants, contractors, Affiliates, sublicensees
and clinical investigators do not disclose or make any unauthorized use of such
Confidential Information, but no less than reasonable care. Each Party will
promptly notify the other upon discovery of any unauthorized use or disclosure
of the Confidential Information.

 

                                                As used
in this Agreement, “Confidential Information” shall mean all
information, data and tangible materials, received by either Party from the
other Party pursuant to this Agreement and all information, data and tangible
materials developed during the course of the Research Program that relates to
Licensed Compounds and/or Licensed Products shall be the

 

Confidential Treatment
Requested

 

66

 

Confidential Information of each Party (and
each Party shall be deemed to have received such information, data and tangible
materials from the other Party; provided that neither Party will be deemed a
disclosing Party with respect to such information, data and tangible materials
for the purposes of Section 9.2.1), including without limitation Know-How,
scientific information, clinical data, efficacy and safety data, adverse event
information, formulas, methods and processes, specifications, pricing information
(including discounts, rebates and other price adjustments) and other terms and
conditions of sales, customer information, business plans, and all other
intellectual property.

 

9.2                                 Exceptions. Confidential Information shall not include any
information that the receiving Party can demonstrate, by competent proof:

 

                                                9.2.1                       is publicly
disclosed by the disclosing Party, either before or after it becomes known to
the receiving Party or is already in or hereafter enters the public domain
through no fault of the receiving Party or its Affiliates;

 

                                                9.2.2                       was known
to the receiving Party or any of its Affiliates, without obligation to keep it
confidential, prior to when it was received from the disclosing Party or prior
to being developed in the case of information, data and tangible materials
developed during the course of the Research Program;

 

                                                9.2.3                       is
hereafter lawfully furnished to the receiving Party or any of its Affiliates by
a Third Party without restriction on disclosure and where such Third Party does
not violate any contractual, legal or fiduciary obligation to the disclosing
Party (or the other Party in the case of information, data and tangible
materials developed during the course of the Research Program) by providing
such Confidential Information to the receiving Party; or

 

Confidential Treatment
Requested

 

67

 

                                                9.2.4.                    is the subject
of a written permission to disclose provided by the disclosing Party (or the
other Party in the case of information, data and tangible materials developed
during the course of the Research Program), or

 

                                                9.2.5                       is
independently developed by employees of the receiving Party, who did not use
Confidential Information of the disclosing Party or information, data and
tangible materials developed during the course of the Research Program by
either Party and without breach of this Agreement.

 

9.3                                 Financial Terms Confidential. The Parties agree that the
financial terms of this Agreement will be considered Confidential Information of
both Parties. Notwithstanding the foregoing, either Party may disclose
such terms to sublicensees, its attorneys and financial advisers, bona fide
potential acquirors and/or merger/acquisition candidates and/or copromotion
partners, financial underwriters, potential investors, lenders, and permitted
subcontractors and sub-distributors, and other parties with a need to know such
information. All such disclosures shall be made only to parties under an
obligation of confidentiality. In addition, such financial terms may be
disclosed where required by an applicable rule, law and/or regulation, provided
that the disclosing Party provides prior notice to the other Party and attempts
to seek confidential treatment thereof to the extent available. With respect to
any filing relating to this Agreement required by the Securities and Exchange
Commission of the United States or any equivalent body, the Party making such
filing with the Securities and Exchange Commission of the United States or any
equivalent body shall provide the non-filing Party with a reasonable
opportunity to review and comment upon any such proposed filing prior to the
submission of such filing and shall make every effort to accommodate any
requests of the non-filing Party with respect to such proposed filing.

 

Confidential Treatment
Requested

 

68

 

9.4                                 Authorized Disclosure. Notwithstanding any other provision
of this Agreement, each Party may disclose Confidential Information if and
to the extent such disclosure:

 

                                                9.4.1                       is in
response to a valid order of a court or other governmental body of the United
States or a foreign country, or any political subdivision thereof; provided, however, that the responding Party shall first
have given notice to the other Party and shall have made a reasonable effort to
obtain a protective order requiring that the Confidential Information so
disclosed be used only for the purposes for which the order was issued;

 

                                                9.4.2                       is
otherwise required by law or regulation; or

 

                                                9.4.3                       is
otherwise necessary to file or prosecute patent applications included in the
AMRI Patent Rights or BMS Licensed Patent Rights, to prosecute or defend
litigation, to comply with applicable governmental regulations, or to establish
or exercise rights or enforce obligations under this Agreement, but only to the
extent that any such disclosure is necessary;

and provided
that with respect to Sections 9.4.2 and 9.4.3, the other Party is notified in
advance (where possible) or shortly thereafter (where it is not possible to
provide advance notice) of such disclosure.

 

9.5         Equitable Remedies. The Parties acknowledge and agree that
money damages may not be a sufficient remedy for any breach or threatened
breach of this Article 9 and that the Parties shall be entitled, without
the requirement of posting a bond or other security, to seek specific
performance and injunctive or other equitable relief as a remedy for any such
breach or threatened breach. Such remedies shall not be deemed to be the
exclusive remedies for a breach or threatened breach

 

Confidential Treatment
Requested

 

69

 

of this Article 9
but shall be in addition to all other remedies available to the Parties at law
or in equity.

 

9.6         Other Terms. Nothing in this Article 9 shall be
construed to create or imply any right or license under any patent rights,
trademarks, copyrights or other intellectual property rights owned or
controlled by a Party or its Affiliates except as may be expressly set
forth in the other Articles of this Agreement. The confidentiality obligations
set forth in this Article 9 shall supersede the confidentiality
obligations set forth in the confidentiality agreement dated as of April 7,
2004 between BMS and AMRI, as amended, and the June 8, 2005, Material
Transfer Letter Agreement between BMS and AMRI, and shall govern any and all
information disclosed by either Party to the other pursuant thereto and shall
be retroactively effective to the date of such confidentiality agreement. Nothing
in this Article 9 shall be construed to preclude AMRI from Developing
and/or Commercializing a Released Compound and/or Released Product and/or
licensing a Released Compound and/or Released Product to a Third Party and
disclosing and using Confidential Information of BMS with respect thereto
consistent with the rights and obligations of AMRI under this Agreement;  provided however, Confidential Information of
BMS must be disclosed to any such Third Party on the same terms and conditions
as contained in this Article 9. Nothing in this Article 9 shall be
construed to preclude BMS from Developing and/or Commercializing a Retained
Compound and/or a Retained Product and/or licensing a Retained Compound and/or
Retained Product to a Third Party and disclosing and using Confidential
Information of AMRI with respect thereto consistent with the rights and
obligations of BMS under this Agreement; 
provided however, Confidential Information of AMRI must be disclosed to
any such Third Party on the same terms and conditions as contained in this Article 9.

 

9.7         Procedure
for Public Announcements. Neither Party will issue any press release
or make any public announcement concerning this Agreement without obtaining the
prior consent of the other Party to the content of the press release or
announcement, which consent shall not be

 

Confidential Treatment
Requested

 

70

 

unreasonably
withheld. This Section does not limit either Party’s right to make
disclosures to the extent required by applicable law.

 

9.8         Publications.
Neither Party shall publish or otherwise present any AMRI Know-How,
BMS Know-How or other Confidential Information (including, without limitation,
inventions arising under this Agreement) (collectively, the “Reviewable Publications”), without
the opportunity for prior review by the other Party and without the prior
written consent of the other Party, except where otherwise expressly provided
for under this Agreement. Each Party agrees to provide the other Party’s patent
counsel the opportunity to review any such proposed publication or presentation
(including, without limitation, abstracts, manuscripts or verbal presentations)
at least thirty (30) days prior to their intended submission for publication or
presentation and agrees, upon request, not to submit any such proposed
publication or make such proposed presentation for such additional reasonable
period of time (but not to exceed an additional 90 days) to enable the other
Party to secure patent protection for any material therein which it believes to
be patentable or to discuss the implications of publication or presentation on
eventual commercialization and competitors.   Neither Party shall have the right to publish
or present Confidential Information of the other Party. Notwithstanding the
foregoing, the Parties recognize that independent investigators will be engaged
in the future, to conduct clinical trials of Licensed Products. The Parties
recognize that such investigators operate in an academic environment and may release
information regarding such studies in a manner consistent with academic
standards; provided, that each Party will use reasonable efforts to file
relevant patent applications prior
to publication or presentation of such studies. Notwithstanding anything to the
contrary, BMS shall have the right to disclose the chemical structure of a
Licensed Compound after filing an IND therefor.

 

10.                                                                              UPFRONT
PAYMENT AND MILESTONE PAYMENTS.

 

10.1                           Initial Payment and Cancellation of Warrants. Within ten (10) business
days of the Effective Date, BMS shall pay to AMR Technology, Inc. a
non-refundable, non-creditable

 

Confidential Treatment Requested

 

71

 

payment of
eight million Dollars ($8,000,000) by electronic funds transfer into an account
designated in writing by AMRI, and BMS and Albany Molecular Research, Inc.
shall cancel the warrants issued to BMS pursuant to the Warrant Issue
Agreement.

 

10.2                           Milestone Payments. Subject to the terms of this Agreement,
and in particular Sections 10.4 and 10.5, BMS shall make the following
noncreditable, nonrefundable milestone payments to AMR Technology, Inc.
within twenty (20) business days following the occurrence of each of the
following milestone events for the first two (2) Licensed Products to
achieve each milestone event. The milestone payment to be made will depend upon
whether the Licensed Product contains an Advanced Lead Candidate Compound or a
Non-Advanced Lead Candidate Compound. By way of illustration, if the first two
products that are Licensed Products that achieve a milestone event contain a
compound that is not an Advanced Lead Candidate Compound, the milestone payment
will be the corresponding Non-Advanced Lead Candidate Compound milestone
payment set forth in this Section 10.2 in the table below and the third
product that is Licensed Product to achieve that milestone event contains an
Advanced Lead Candidate Compound, the milestone payment for such third product
achieving that milestone event would be the milestone payment set forth in the
table in Section 10.3, not the Advanced Lead Candidate Compound milestone
payment set forth in this Section 10.2 in the table below.

 

	
  EVENT

  	
   

  	
  Non-

  Advanced

  Lead

  Candidate

  Compound

  	
   

  	
  Advanced

  Lead

  Candidate

  Compound

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ECN Approval

  	
   

  	
  *

  	
   

  	
  *

  	
   

  
	
  IND Filing
  (or IND Equivalent)

  	
   

  	
  *

  	
   

  	
  *

  	
   

  
	
  Commencement
  of a Phase IIa Clinical Trial

  	
   

  	
  *

  	
   

  	
  *

  	
   

  

 

Confidential Treatment
Requested

 

72

 

	
  Commencement
  of a Phase III Clinical Trial

  	
   

  	
  *

  	
   

  	
  *

  	
   

  
	
  Acceptance
  of NDA filing in the US

  	
   

  	
  *

  	
   

  	
  *

  	
   

  
	
  NDA Approval

  	
   

  	
  *

  	
   

  	
  *

  	
   

  
	
  Acceptance
  of MAA filing

  	
   

  	
  *

  	
   

  	
  *

  	
   

  
	
  MAA Approval

  	
   

  	
  *

  	
   

  	
  *

  	
   

  
	
  Acceptance
  of JNDA filing in Japan

  	
   

  	
  *

  	
   

  	
  *

  	
   

  
	
  JNDA
  Approval

  	
   

  	
  *

  	
   

  	
  *

  	
   

  

 

10.3                           Subject
to the terms of this Agreement, and in particular Sections 10.4 and 10.5, BMS
shall make the following noncreditable, nonrefundable milestone payments to AMR
Technology, Inc. within twenty (20) business days following the occurrence
of each of the following milestone events for the * products that are Licensed
Products to achieve each milestone event (regardless of whether such Licensed
Product contains an Advanced Lead Candidate Compound or a Non-Advanced Lead
Candidate Compound):

 

	
  EVENT

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ECN Approval

  	
   

  	
  *

  	
   

  
	
  IND Filing (or IND Equivalent)

  	
   

  	
  *

  	
   

  
	
  Commencement of a Phase IIa Clinical Trial

  	
   

  	
  *

  	
   

  
	
  Commencement of a Phase III Clinical Trial

  	
   

  	
  *

  	
   

  
	
  Acceptance of NDA filing in the US

  	
   

  	
  *

  	
   

  
	
  NDA Approval

  	
   

  	
  *

  	
   

  
	
  Acceptance of MAA filing

  	
   

  	
  *

  	
   

  
	
  MAA Approval

  	
   

  	
  *

  	
   

  

 

Confidential Treatment
Requested

 

73

 

	
  Acceptance of JNDA filing in Japan

  	
   

  	
  *

  	
   

  
	
  JNDA Approval

  	
   

  	
  *

  	
   

  

 

10.4                           In
the event that the Development or Commercialization of a Lead Product is
terminated, milestone payments will be due for those milestone events that are
achieved by a backup Licensed Product and that were not achieved by the Lead
Product. For the avoidance of doubt, if a particular milestone payment has been
paid for one Licensed Product and another Licensed Product is substituted for
that Licensed Product which is no longer being developed where the substitute
Licensed Product is being developed for the same Indication as the earlier
Licensed Product and the substitute Licensed Product achieves the same
milestone, no payment will be due for the substitute Licensed Product achieving
that earlier milestone event, provided, however, that future milestones for the
substitute Licensed Product shall be paid under Section 10.2 or 10.3
dependent upon whether it contains an Advanced or Non-Advanced Lead Candidate
Compound. No milestone payments shall be due or payable for a Licensed Product
(after the end of the Combined Period) that is a backup to a Lead Product
(i.e., is being Developed for the same Indication as a Lead Product) and for
which BMS has not received Reserved Indications under Section 4.2.1
(during the Combined Period), until either the backup has replaced a Lead
Product and achieves a later milestone event, as described above, or until an
NDA for the Lead Product obtains Approval, for which it is a backup. In the
latter case, if the backup is continued in Development, after an NDA obtains
Approval for its respective Lead Product, then payment for all milestone events
achieved by that backup will be due and payable. Subject to the foregoing, for
the purposes of paying a milestone payment for more than one Licensed Product
that achieves the corresponding milestone event, each Licensed Product that
achieves that milestone event must have a different API than any other Licensed
Product that has previously achieved that milestone

 

Confidential Treatment Requested

 

74

 

event. No
milestone payment will be paid for a different Indication for a Licensed
Product that has already achieved the corresponding milestone event for any
other Indication.

 

10.5                           If
a milestone event is achieved for a Licensed Product and an earlier milestone
event(s) has not been achieved for such Licensed Product, then the milestone
payment for such earlier milestone event(s) shall also become due and payable
for such Licensed Product at such time. By way of illustration, if a Phase IIa
Clinical Trial is not conducted for a Licensed Product and a Phase III Clinical
Trial is commenced for such Licensed Product, then the milestone payment for
the commencement of a Phase IIa Clinical Trial for such Licensed Product and
the milestone payment for the commencement of a Phase III Clinical Trial would
both be due and payable.

 

10.6                           The fact that a payment under this Agreement
is indicated to be non-refundable shall not affect the calculation of any
damages that a Party may be entitled to under this Agreement.

 

11.                               ROYALTY
PAYMENTS

 

11.1                           Royalties.
BMS will pay the following royalties to AMR Technology, Inc. based on
combined, worldwide annual Net Sales of all Royalty Bearing Products containing
Non-Advanced Lead Candidate Compounds:

 

	
   

  	
   

  	
  Royalty Rate

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Annual Net Sales under $1.0 billion

  	
   

  	
  *

  	
  %

  
	
  Annual Net Sales between $1.0 billion and
  $2.0 billion

  	
   

  	
  *

  	
  %

  
	
  Annual Net Sales greater than $2.0 billion

  	
   

  	
  *

  	
  %

  

 

Confidential Treatment Requested

 

75

 

By way of illustration, if the annual worldwide Net Sales of Royalty
Bearing Products containing Non-Advanced Lead Candidate Compounds as APIs are
$2.2 billion, the royalties due would be $* million (i.e., (*% x $* billion) +
(*% x $* billion) + (*% x $* million) = $* million + $* million + $* million =
$* million).

 

BMS will pay the following royalties to AMR Technology, Inc. based on
combined, worldwide annual Net Sales of all Royalty Bearing Products containing
Advanced Lead Candidate Compounds:

 

	
   

  	
   

  	
  Royalty Rate

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Annual
  Net Sales under $1.0 billion

  	
   

  	
   

  	
  *%

  
	
  Annual
  Net Sales between $1.0 billion and $2.0 billion

  	
   

  	
   

  	
  *%

  
	
  Annual
  Net Sales greater than $2.0 billion

  	
   

  	
   

  	
  *%

  

 

By way of illustration, if the annual worldwide Net Sales of Royalty
Bearing Products containing Advanced Lead Candidate Compounds as APIs are $2.2
billion, the royalties due would be $* million (i.e., (*% x $* billion) + (*% x
$* billion) + (*% x $* million) = $* million + $* million + $* million = $*
million).

 

11.2         Royalty
Term.   Royalties will be paid by BMS on a
Royalty Bearing Product by Royalty Bearing Product and country-by-country basis
for each Royalty Bearing Product in each country for each year until ten (10)
years after First Commercial Sale in such country of such Royalty Bearing
Product; provided, however, that royalties shall continue in such country for
each Calendar Quarter that such Royalty Bearing Product sold in such country is
a Patented Royalty Bearing Product in such country (i.e., the actual commercial
manufacture of such Royalty Bearing Product in such

 

Confidential Treatment Requested

 

76

 

country, the sale of such Royalty Bearing Product in such country, or
the use for which such Royalty Bearing Product is sold in such country by BMS,
its Affiliates or (sub)licensees is Covered by a Valid Claim of an AMRI Patent
Right in such country and/or a Valid Claim of a BMS Licensed Patent Right in
such country) or *
(the “Royalty Term”), and if in such case such Patented Royalty
Bearing Product is a Patented Royalty Bearing Product in such country, the
royalty in such country shall not be reduced, and if in such case such Patented
Royalty Bearing Product is not a Patented Royalty Bearing Product in such
country but is * the royalty in such country shall be reduced by * percent, and further provided if there are
no Valid Claims in the AMRI Patent Rights and/or the BMS Patent Rights in such
country that are able, by filing of an infringement Action, to prevent a Third
Party or Third Parties from marketing a product or products containing the same
Licensed Compound as that contained in such Royalty Bearing Product (or any salt, solvate, crystalline or
noncrystalline form of such Licensed Compound), whether filed under an NDA or ANDA
(Abbreviated New Drug Application) or otherwise and such Third Party or Third
Parties are not authorized by BMS, its Affiliates or its (sub)licensees to sell
such product or products (each such product a “Generic
Product”), royalties shall be reduced in such country in a
Calendar Quarter by: (a) * percent
(*%) if sales of such Generic
Products in such country in such Calendar Quarter exceed * percent (*%) of the sum of all prescriptions for such form of such Royalty
Bearing Product sold by BMS, its Affiliates
and (sub)licensees and by the Third Party seller(s) of such Generic Product(s)
(based on unit-equivalent data for all dosage strengths of such form) in such
country during such Calendar Quarter, (b) by * percent (*%) if such
sales of such Generic Product(s) in such country in such Calendar Quarter
exceed * percent (*%) of the sum of all prescriptions for such form of such Royalty
Bearing Product sold by BMS, its
Affiliates and (sub)licensees and by the Third Party seller(s) of such Generic
Product(s) (based on unit-equivalent data for all

 

Confidential Treatment Requested

 

77

 

dosage
strengths of such form) in such country during such Calendar Quarter, and (c)
by * percent (*%) if sales of such Generic Product(s) in such country in such
Calendar Quarter exceed * percent (*%) of the sum of all prescriptions for such
form of such Royalty Bearing Product sold by BMS, its Affiliates and (sub)licensees and by the Third Party
seller(s) of such Generic Product(s) (based on unit-equivalent data for all
dosage strengths of such form) in such country in such Calendar Quarter.  If the prescriptions are not reportable in a
given country, then the Parties will use another mutually agreed upon method
for such country.  Such adjustments shall
be retroactive to the beginning of the applicable Calendar Quarter

 

11.3     If BMS, in its reasonable judgment, is
required to obtain a license from any Third Party under any patent or patent
application in order to import, export, manufacture, use, offer to sell and/or
Commercialize any Licensed Compound, and if BMS is required to pay to such
Third Party a royalty under such license calculated on sales of a Royalty
Bearing Product in a particular country, or if BMS is required by a court of
competent jurisdiction to pay such a royalty to such a Third Party, then the
amount of BMS’ royalty obligations under Section 11.1 hereof with respect to
such Royalty Bearing Product sold in such country in a Calendar Quarter shall
be reduced by * percent (*%) of the amount of the royalty paid to such Third
Party for such Royalty Bearing Product sold in such country in such Calendar
Quarter, provided however, that the royalties
payable under Section 11.1 hereof shall not be reduced in any such event below
*% of the amounts set forth in Section 11.1 with respect to such Royalty
Bearing Product in such country in such Calendar Quarter.

 

11.4     Reports; Payment
Procedures, Taxes.

 

11.4.1              Within
twenty (20) days of the end of each Calendar Quarter, BMS shall provide to AMR
Technology, Inc. a written report, in the English language, showing (a) the Net
Sales (and how calculated)  of each form
of Royalty Bearing Product sold by BMS, its Affiliates and its (sub) licensees
(if applicable) in each country of the

 

Confidential Treatment Requested

 

78

 

Territory during the reporting period; (b) the calculation of any
royalty amounts due AMR Technology, Inc., (c) withholding taxes, if any,
required by law to be deducted in respect of such Net Sales; and (d) the
exchange rates used in determining the amount of Dollars. With respect to sales
of a Licensed Product invoiced in Dollars, the Net Sales shall be expressed in
Dollars. With respect to sales of a Licensed Product invoiced in a currency
other than Dollars, the Net Sales hereunder shall be expressed in the domestic
currency of the entity making the sale, together with the Dollar equivalents of
same, calculated using the procedure set forth in Section 11.6.  If any permitted (sub)licensee makes any
sales invoiced in a currency other than its domestic currency, the Net Sales
shall be converted to its domestic currency in accordance with the permitted
(sub) licensee’s normal accounting practices.

 

11.4.2.             Any tax, duty or
other levy paid or required to be withheld by BMS or its sublicensees on behalf
of AMR Technology, Inc. on account of any payments payable to AMR Technology,
Inc. by BMS, under this Agreement shall be deducted from the amount of payments
otherwise due, provided that BMS shall use
diligent efforts to make such deductions only to the minimum practical extent
required by the relevant jurisdiction. 
Upon request, BMS shall secure and send to AMR Technology, Inc. proof of
any such taxes, duties or other levies withheld and paid by BMS or its
sublicensees for the benefit of AMR Technology, Inc., and
cooperate at AMR Technology, Inc.’s reasonable request to ensure that amounts
withheld are reduced to the fullest extent permitted by the relevant
jurisdiction, and to permit AMR Technology, Inc. to obtain tax credits and
other benefits.

 

Confidential Treatment Requested

 

79

 

11.4.3              Anything to the
contrary notwithstanding, neither Party shall have any obligation to pay any
income, revenue or profit tax imposed on the other Party or any of its
Affiliates that may arise from the transactions contemplated by this Agreement.

 

11.4.4              All payments to be
made by BMS under this Article 11 shall be payable within forty five (45) days
of the end of each Calendar Quarter in Dollars and shall be paid by BMS on its
account and on account of its Affiliates and (sub) licensees by electronic
funds transfer to AMR Technology, Inc.’s bank account in accordance with the
Transfer Instructions set forth in Exhibit 11.4.4 or to any other bank
account that may be indicated by AMR Technology, Inc. in writing by any officer
holding the title equivalent of Vice President (or higher) in AMR Technology,
Inc.    AMR Technology, Inc. shall provide
BMS in writing with such other information as BMS may require to make the
transfer.  If at any time legal
restrictions prevent the prompt remittance of part or all of any such payment
due under this Article 11 with respect to any country where the Licensed Product
is sold, BMS shall have the right and option to make such payments by
depositing the amount thereof in local currency to AMR Technology, Inc.’s
account in a bank or other depository in such country.

 

11.5         Late Payments.  In the
event that any payment due hereunder is not made when due, the payment shall
accrue interest from the date due at the rate of two percent (2%) per annum
above the Prime Rate then prevailing at Citibank, N.A., New York, New York, provided
that in no event shall such rate exceed the maximum legal annual interest rate
in New York, New York, USA.  The payment
of such interest shall not limit AMR Technology, Inc. from exercising any other
legal rights it may have as a consequence of the lateness of any payment.

 

11.6         Currency
Conversion.   Any amounts
required to be converted into U.S. dollars under this Article 11 shall be
converted into U.S. Dollars on a monthly basis using the applicable

 

Confidential Treatment Requested

 

80

 

exchange rates
then used by BMS for converting local currency into the United States Dollar in
producing its financial accounts for its annual report to its shareholders, it
being understood that BMS currently calculates the rate for an applicable month
based on the average of the New York Federal Reserve daily foreign exchange
rates as of 12 Noon EST from the 21st to the 20th of the
two (2) months prior to the month of calculation (e.g., the March monthly
calculation would be set based on January 21 to February 20th).

 

11.7         Records, Audits.  BMS
agrees to maintain and shall require its Affiliates, and (sub) licensees to
maintain accurate books and records in accordance with all applicable
accounting standards and law and regulations and consistent with the books and
records of BMS generally, that accurately reflect all costs, expenses, and
revenues relevant to the determination of any royalty payment obligations
pursuant to this Agreement.   AMR
Technology, Inc., together with its independent representatives and accountants
reasonably acceptable to BMS (and subject to the execution of an appropriate
written agreement of confidentiality), shall be entitled to audit such books
and records of BMS and its Affiliates and (sub) licensees, at reasonable times
and upon reasonable notice, solely for the purposes of verifying the
correctness and/or completeness of any royalty report and the calculation of
royalty payments with respect to one or more of the three (3) Calendar Years
preceding the Calendar Year in which the request is made. The foregoing right
of review may be exercised only once per Calendar Year and only once with
respect to any such royalty report and/or royalty payment.  Results of any such examination shall be (a)
limited to information relating to the royalty reports and royalty payments
being audited, (b) made available to both AMR Technology, Inc. and BMS and (c)
subject to Article 9 (Confidential Information).   AMR Technology, Inc. shall bear the full
cost of the performance of any such audit, unless such audit discloses a
variance to the detriment of AMR Technology, Inc. of more than five percent
(5%) from the amount of aggregate royalties payable for the Calendar Years that
are audited.  In such case, BMS shall bear
the full cost of the performance of such audit. 
BMS shall, within ten (10)

 

Confidential Treatment Requested

 

81

 

Business Days of receipt of the report of the
auditor, make a correcting payment to AMR Technology, Inc. in an amount
sufficient to correct the underpayment determined by the audit and to pay
interest on the amount of the underpayment equal to two (2) percentage
points over the Prime Rate as published from time to time by Citibank N.A., New
York, New York, compounded annually, from the date the underlying payments were
originally due to the date of the correcting payment.  Any overpayment shall be promptly refunded by
AMR Technology, Inc. to BMS without interest.

 

12.              INDEMNIFICATION
AND INDEMNIFICATION PROCEDURE.

 

12.1         Indemnification.

 

12.1.1      Indemnification
by BMS.   Subject to Section 12.2, BMS agrees to defend AMRI, its Affiliates and
their respective directors, officers, employees and agents (collectively, the “AMRI Indemnitees”) against (at BMS’
cost and expense), and shall indemnify and hold harmless the AMRI Indemnitees
from and against any liabilities, losses, costs, damages, fees and/or expenses
(including reasonable legal expenses and attorneys’ fees) (such liabilities,
losses, costs, damages, fees and/or expenses, collectively, “Losses”) payable to a Third Party
arising out of, any claim, action, lawsuit, or other proceeding (collectively, “Claims”) brought against any AMRI
Indemnitee by a Third Party resulting directly or indirectly from (i) the
research, discovery, identification, Development, use, handling, storage,
Commercialization and/or other disposition of Licensed Compounds, and/or
Licensed Products in the Territory by or on behalf of BMS, its Affiliates,
and/or their respective directors, officers,

 

Confidential Treatment Requested

 

82

 

employees,
agents, contractors and/or (sub)licensees, and/or (ii) the manufacture of
Licensed Products and/or Licensed Compounds for use and/or sale by or on behalf
of BMS, its Affiliates, and/or their respective directors, officers, employees,
agents, contractors and/or (sub)licensees, (iii) the use of Licensed Products
and/or Licensed Compounds obtained directly or indirectly from BMS, its
Affiliates and/or their (sub)licensees, and/or (iv) the negligence, unlawful
acts or willful misconduct of BMS and/or its Affiliates and/or their respective
(sub)licensees, directors, officers, agents, directors and/or contractors in
carrying out activities pursuant to this Agreement and/or in connection with
Licensed Compounds prior to the Effective Date of this Agreement, except (1) to
the extent that it is established that such Losses result from (a) the gross
negligence, willful misconduct or unlawful act of any AMRI Indemnitee; (b) any
breach by AMRI of any of its representations and warranties under Article 16 of
this Agreement or any breach by AMRI of any of its covenants and obligations
under this Agreement; (c) trade secret misappropriation liability by an AMRI
Indemnitee resulting from the research, discovery, identification, Development
and/or manufacture by or on behalf of any AMRI Indemnitee of any Licensed
Compound and/or Licensed Product prior to the Effective Date, and/or (2) to the
extent that it is established that AMRI is obligated to indemnify a portion of
such Losses pursuant to Section 12.1.2. 
Except as provided in Section 12.2.2, with respect to reasonable legal
expenses and attorneys’ fees incurred by the AMRI Indemnitees in connection
with a Claim, only such expenses and fees that are incurred until such time as
BMS has acknowledged and assumed its indemnification obligation hereunder with
respect to such Claim shall be included in Losses.

 

12.1.2      Indemnification
by AMRI.  Subject to Section 12.2, AMRI agrees to defend
BMS, its Affiliates and their respective directors, officers, employees and
agents (collectively, the “BMS Indemnitees”)
against (at AMRI’s cost and expense), and shall indemnify and hold harmless the
BMS Indemnitees from and against any and all Losses arising out of, any Claim
brought against any BMS Indemnitee by a Third Party resulting directly or
indirectly from (a) the research, discovery, identification, Development,

 

Confidential Treatment Requested

 

83

 

use,
handling, storage, Commercialization and/or other disposition of Licensed
Compounds and/or Licensed Products in the Territory by and/or on behalf of
AMRI, its Affiliates, and/or any of their respective directors, officers,
employees, agents, contractors and/or (sub)licensees, (b) the manufacture of
Licensed Products and/or Licensed Compounds for use and/or sale by or on behalf
of AMRI, its Affiliates, and/or their respective directors, officers,
employees, agents, contractors and/or (sub)licensees, (c) the use of Licensed
Products and/or Licensed Compounds obtained directly or indirectly from AMRI,
its Affiliates and/or their (sub)licensees, and/or (d) the negligence or
willful misconduct or unlawful acts of AMRI and/or its Affiliates and/or their
respective (sub)licensees, directors, officers, agents, directors and/or
contractors in carrying out activities pursuant to this Agreement and/or in
connection with Licensed Compounds prior to the Effective Date of this
Agreement, except (1) to the extent that it is established that such Losses
result from; (i) the gross negligence, unlawful act or willful misconduct of
any BMS Indemnitee; or (ii) any breach by BMS of any of its representations and
warranties under Section 16.1 of this Agreement and/or any breach by BMS of any
of its covenants and obligations under this Agreement; and/or (2)  to the extent that it is established that BMS
is obligated to indemnify a portion of such Losses pursuant to Section 12.1.1.  Except as provided in Section 12.2.2, with
respect to reasonable legal expenses and attorneys’ fees incurred by the BMS
Indemnitees in connection with a Claim, only such expenses and fees that are
incurred until such time as AMRI has acknowledged and assumed its
indemnification obligation hereunder with respect to such Claim shall be
included in Losses.

 

Confidential Treatment Requested

 

84

 

12.2         Procedure.

 

12.2.1      A Party believing that it is
entitled to indemnification under Section 12.1.1 or 12.1.2 (an “Indemnified Party”) shall give
prompt written notification to the other Party (the “Indemnifying
Party”) of the commencement of any Claim for which
indemnification may be sought or, if earlier, upon the assertion of any such
Claim by a Third Party (it being understood and agreed, however, that the
failure by an Indemnified Party to give notice of a Third Party Claim as
provided in this Section 12.2 shall not relieve the Indemnifying Party of its
indemnification obligation under this Agreement except and only to the extent
that such Indemnifying Party is actually prejudiced as a result of such failure
to give notice).  Within thirty (30) days
after delivery of such notification, the Indemnifying Party shall, upon written
notice thereof to the Indemnified Party, assume control of the defense of such
Claim with counsel reasonably satisfactory to the Indemnified Party.  If a Party believes that a Claim presented to
it for indemnification is one as to which the Party seeking indemnification is
not entitled to indemnification, it shall so notify the Party seeking
indemnification.

 

12.2.2      The Indemnified Party may
participate in such defense at its own expense; provided that if the
Indemnified Party reasonably concludes, based on advice from counsel, that the
Indemnifying Party and the Indemnified Party have conflicting interests with
respect to such Claim, the Indemnifying Party shall be responsible for the
reasonable fees and expenses of counsel to the Indemnified Party solely in
connection therewith.

 

12.2.3      The Indemnifying Party shall
keep the other Party advised of the status of such Claim and the defense
thereof and shall consider recommendations made by the Indemnified Party with
respect thereto.

 

Confidential Treatment Requested

 

85

 

12.2.4      The Indemnified Party shall
not agree to any settlement of such Claim without the prior written consent of
the Indemnifying Party.  The Indemnifying
Party shall not agree to any settlement of such Claim and/or consent to any
judgment in respect thereof that does not include a complete and unconditional
release of the Indemnified Party from all liability with respect thereto and/or
that imposes any liability and/or obligation on the Indemnified Party and/or
adversely affects the Indemnified Party and/or any intellectual property of the
Indemnified Party without the prior written consent of the Indemnified Party.

 

12.3    Insurance.  Each
Party shall maintain at its sole cost and expense, an adequate liability
insurance policy or a self-insurance program (including contractual liability
and product liability insurance) to protect against potential liabilities and
risk arising out of activities to be performed under this Agreement and any
agreement related hereto and upon such terms (including coverages, deductible
limits and self-insured retentions) as are customary in the pharmaceutical
industry for the activities to be conducted by such Parties under this
Agreement and are appropriate to cover the Parties’ respective indemnification
obligations hereunder (the “Coverage”).  Such liability insurance or self-insurance
program shall insure against all liability, including without limitation
personal injury, physical injury or property damage arising out of the
research, discovery, identification, Development, manufacture, use, or
Commercialization of the Licensed Compounds and Licensed Products.  In the case of BMS, as of the date a Licensed
Product is first administered to a human by or on behalf of BMS, and in the
case of AMRI, as of the earlier of the date a Released Product is first
administered to a human or the date any Licensed Product for which AMRI was
involved with the manufacture, formulation, packaging or finishing of such
Licensed Product or the API in such Licensed Product is first administered to a
human by or on behalf of BMS, the required minimum amount of Coverage by the
applicable Party shall be not less than twenty-five million Dollars
($25,000,000) per claim and fifty million Dollars ($50,000,000) in the
aggregate.  Each Party shall furnish to
the other evidence of such insurance and/or self insurance, upon request.  Such

 

Confidential Treatment Requested

 

86

 

insurance
information shall be kept in confidence in the same manner as any other
Confidential Information disclosed by one Party to the other hereunder.  The coverage limits set forth herein shall
not create any limitation on a Party’s liability to the other under this
Agreement.

 

13.          TERM
AND TERMINATION.

 

13.1         Term.  The term of this
Agreement shall commence upon the Effective Date and, unless earlier terminated
pursuant to another subsection of this Article 13, shall continue thereafter
until neither Party shall have any obligation to the other under this Agreement
(other than under Article 9 (Confidential Information) and Article 12
(Indemnification) or until both Parties agree in writing to terminate this
Agreement, in whole or in part.

 

13.2         Termination
by AMRI.  AMRI shall have the right
to terminate this Agreement, at AMRI’s sole discretion, as follows:

 

13.2.1      Breach.  Subject to Section 13.2.3, AMRI shall have
the right to terminate this Agreement, at AMRI’s sole discretion, upon delivery
of written notice to BMS in the event of any material breach by BMS of this
Agreement (except, the failure to use Commercially Reasonable Efforts to
Develop or Commercialize at least one Licensed Compound or Licensed Product,
which is covered under Section 13.2.2), provided that
such breach has not been cured within sixty (60) days after written notice
thereof is given by AMRI to BMS; provided, however,
that if such breach relates to the failure to make a payment when due, such
breach must be cured within thirty (30) days after written notice thereof is
given by AMRI.  If BMS disputes the amount
of a payment, BMS shall pay to AMRI any amount that is not in dispute.

 

13.2.2      Termination
for Failure to Develop or Commercialize. 
Subject to Section 13.2.3 below,
AMRI shall have the right to terminate this Agreement on a country-by-country
basis or in all countries as the case may be, (except as otherwise set forth in
this Section 13.2.2), at AMRI’s sole discretion, in the event that BMS fails to
use

 

Confidential
Treatment Requested

 

87

 

Commercially Reasonable Efforts to Develop or Commercialize at least one
Licensed Compound or Licensed Product in the Territory.  Termination
under this Section 13.2.2 shall apply to all Licensed Compounds and Licensed
Products, but only for the affected country or countries, provided
however, that (i) if the applicable termination event relates to the
United States, then the termination shall apply to all countries in the
Territory, and (ii) if the applicable termination event relates to any country
other than the United States, then the termination shall apply only to that
country.   For clarity, it is understood
and acknowledged that to the extent BMS uses Commercially
Reasonable Efforts (by itself or through its Affiliates or sublicensees) to
Develop at least one Licensed Compound or Licensed Product through a centralized filing with the EMEA,
BMS shall be deemed to be using Commercially Reasonable Efforts to Develop at
least one Licensed Compound or Licensed Product with respect to all countries
in Europe.

 

13.2.3      Disputed Breach.  If BMS disputes the existence or materiality
of a breach specified in a notice provided by AMRI pursuant to Section 13.2.1
within the applicable thirty (30) day or sixty (60) day period or a failure to use Commercially Reasonable
Efforts specified in a notice provided by BMS pursuant to Section 13.2.2
within thirty (30) days of receipt of such notice, and BMS provides notice to
AMRI of such dispute and the reasons therefor within the applicable period and
initiates arbitration pursuant to Section 17.2 during such applicable period,
(BMS in such arbitration may request that the arbitratior determine whether or
not BMS shall have the right to cure and if so the cure), AMRI shall not have
the right to terminate this Agreement unless and until there is a determination
in such arbitration that there is a material breach or such failure and BMS
fails to make a payment within thirty (30) days thereafter if the material
breach or such failure was for non-payment of an amount due to AMRI under this
Agreement, and if the arbitration determines a cure for such material

 

Confidential Treatment Requested

 

88

 

breach or such
failure that is not a non-payment of an amount due to AMRI under this
Agreement, BMS fails to cure as determined in the arbitration.  It is understood and acknowledged that during
the pendency of such a dispute, all of the terms and conditions of this
Agreement shall remain in effect and the Parties shall continue to perform all
of their respective obligations hereunder. 
If BMS does not dispute the existence or materiality of a breach
specified in a notice provided by AMRI pursuant to Section 13.2.1 or a failure to use Commercially Reasonable
Efforts specified in a notice provided by BMS pursuant to Section 13.2.2
and initiate arbitration pursuant to this Section 13.2.3, then BMS shall be
deemed to have agreed to termination of this Agreement pursuant to Section
13.2.1 or 13.2.2, as the case may be.

 

13.3         Termination by BMS.  BMS shall have the right to terminate this
Agreement, at BMS’ sole discretion, as follows:

 

13.3.1      Following expiry of the
Research Term, on a country-by-country and Licensed Product-by-Licensed Product
basis, effective upon three (3) months prior written notice, or upon six (6)
months prior written notice in the case where Approval has been obtained for
the applicable Licensed Product in the United States of America, BMS may
terminate its rights under this Agreement for any reason.

 

13.3.2      Subject
to Sections 13.3.3 and 13.3.4, BMS shall have the right to terminate this
Agreement at BMS’ sole discretion, upon delivery of written notice to AMRI in
the event of any material breach by AMRI of this Agreement, provided that such breach has not been cured within sixty
(60) days after written notice thereof is given by BMS to AMRI; provided, however, that if such breach relates to the
failure of AMRI to make a payment when due, such breach must be cured within
thirty (30) days after written notice thereof is given by BMS.   If AMRI
disputes the amount of a payment, AMRI shall pay to BMS any amount that is not
in dispute.

 

Confidential Treatment Requested

 

89

 

13.3.3      (a) Subject to Section
13.3.4, in lieu of termination under Section 13.3.2, in the event of any
material breach of this Agreement by AMRI during the Combined Period, at BMS’
sole discretion, BMS may deliver written notice of such breach and if such
breach has not been cured within sixty (60) days after written notice thereof
is given by BMS to AMRI under this Agreement, then (i) the ability of AMRI to
select and/or have distributed compounds under Section 3.2 as Released
Compounds shall be limited to the compounds of items (i) and (ii) in the
definition of AMRI Compounds and the corresponding compounds of items
(iv)-(vii) in the definition of AMRI Compounds, (ii) all licenses granted under
Section 4.2.2 shall be terminated and no further licenses shall be granted
under Section 4.2.2, (iii) the rights granted to AMRI under Sections 6.2, 6.3
and 6.4 shall be terminated and (iv) except for Licensed Compounds of item (i)
of this Section 13.3.3(a) that become Released Compounds, all other Licensed
Compounds shall be Retained Compounds.

 

(b) Subject to
Section 13.3.4, in lieu of termination under Section 13.3.2, in the event that
AMRI or an Affiliate of AMRI materially breaches this Agreement after the
Combined Term by Developing and/or Commercializing itself or in active
collaboration with a Third Party a Released Compound and/or a Released Product
for a Reserved Indication, BMS shall have the right to terminate the licenses
granted under Section 4.2.2 at BMS’ sole discretion by written notice to AMRI
provided that such breach has not been cured within sixty (60) days after
written notice thereof is given by BMS. Upon such termination of AMRI’s
licenses granted under Section 4.2.2, (i) AMRI and its Affiliates shall
terminate Development and Commercialization of all Released Compounds and
Released Products subject to the licenses granted under Section 4.2.2, and all
Related Compounds of such Released Compounds and of the Released Compounds
contained in such Released Products, and AMRI and its Affiliates shall
thereafter have no right to Develop and/or Commercialize such Released Compounds,
such Released Products and such Related

 

Confidential Treatment Requested

 

90

 

Compounds,
(ii) in the event that any Released Compound and/or Released Product that is
Developed and/or Commercialized for a Reserved Indication by AMRI or any
Affiliate of AMRI is not subject to the licenses granted under Section 4.2.2
(e.g., it is an AMRI Compound Covered by an AMRI Patent Right solely owned by
AMRI), AMRI and its Affiliates shall terminate Development and Commercialization
of such Released Compound and/or Released Product, and thereafter AMRI and its
Affiliates shall have no right to Develop and/or Commercialize such Released
Compound and/or its Related Compounds and/or such Released Product and/or the
Related Compounds of the Released Compound contained in such Released Product,
themselves or in active collaboration with a Third Party, or to license the
Development and/or Commercialization of such Released Compound, such Related
Compounds and/or such Released Product to any Third Party, and (iii) the rights
granted to AMRI under Sections 6.2, 6.3 and 6.4 shall be terminated.

 

13.3.4      If AMRI disputes the
existence or materiality of a breach specified in a notice provided by BMS
pursuant to Section 13.3.2 or 13.3.3  and
AMRI provides notice to BMS of such dispute and the reasons therefor within the
applicable thirty (30) day or sixty (60) day period, and initiates arbitration
pursuant to Section 17.2 during such applicable period, (AMRI in such
arbitration may request that the arbitration determine whether or not AMRI
shall have the right to cure and if so the cure), BMS shall not have the right
to terminate this Agreement as provided in Section 13.3.2 or AMRI’s rights as
provided in Section 13.3.3, as the case may be, and the provisions of Sections
13.3.3(a)(i)-(iv) or 13.3.3(b)(i)-(iii), as applicable, shall not take effect unless
and until there is a determination in such arbitration that there is a material
breach and AMRI fails to make such payment within thirty (30) days thereafter
if the material breach was for non-payment of an amount due to AMRI under this
Agreement, and if the arbitration determines a cure for such material breach
that is

 

Confidential Treatment Requested

 

91

 

not a
non-payment of an amount due to AMRI under this Agreement, AMRI fails to cure
as determined in the arbitration. It is understood and acknowledged that during
the pendency of such a dispute, all of the terms and conditions of this
Agreement shall remain in effect and the Parties shall continue to perform all
of their respective obligations hereunder. 
If AMRI does not dispute the existence or materiality of a breach
specified in a notice provided by AMRI pursuant to Section 13.3.2 or 13.3.3 and
initiate arbitration pursuant to this Section 13.3.4, AMRI shall be deemed to
have agreed to termination of this Agreement under Section 13.3.2 or
termination of AMRI’s rights pursuant to Section 13.3.3, and the provisions of
Sections 13.3.3(a)(i)-(iv) or 13.3.3(b)(i)-(iii), as applicable, shall take
effect, if the notice was provided under Section 13.3.3.

 

13.4         Effect of Termination
by AMRI under Section 13.2.1.  Upon
termination of this Agreement by AMRI under Section 13.2.1:

 

13.4.1      Subject to Section 13.12,
all rights and licenses granted to BMS under Article 3 and sublicenses
thereunder shall terminate.  AMRI shall
have no rights or licenses with respect to Excluded Compounds and Excluded
Products except for those rights and licenses under Section 4.5, and no right
to have any marketing authorizations, INDs or other regulatory filings and
Approvals for Excluded Compounds or Excluded Products assigned to it under this
Section 13.4, and except as provided below in this Section 13.4.1, shall have
no right to have access to any data or information concerning Excluded
Compounds and Excluded Products under this Section 13.4, and except for
Excluded Compounds and Excluded Products, neither BMS nor its Affiliates shall
Develop or Commercialize a Licensed Product and/or Licensed Compound.  Upon such termination, BMS shall notify AMRI
in writing as to those Excluded Compounds and Excluded Products the Development
and/or Commercialization of which was terminated by BMS or one of its
Affiliates or

 

Confidential Treatment Requested

 

92

 

sublicensees
for Safety Reasons and the nature of such Safety Reasons. BMS agrees to make
available for AMRI’s inspection, relevant data, materials and reports that
support such Safety Reasons, provided that AMRI enters into an agreement with
BMS or the relevant Affiliate or sublicensee of BMS to maintain the
confidentiality of such data, materials and reports.

 

13.4.2      Subject
to the terms, conditions and limitations of this Agreement, except for the
Excluded Compounds and Excluded Products, BMS agrees to grant and hereby grants
AMRI an exclusive license, with the
right to sublicense to, research, Develop, make, have made, use, export,
import, offer to sell, sell and Commercialize Licensed Compounds and Licensed
Products in the Field in the Territory under Patent Rights and Know-How that
(a) are owned by BMS or its Affiliates as of the date of the termination of
this Agreement, (b) are Controlled by BMS or its Affiliates as of the date of
the termination of this Agreement and (c) are reasonably required by AMRI to
make, have made, use, sell, import, export, offer to sell, research, Develop
and/or Commercialize Licensed Compounds and Licensed Products in the Field and,
to the extent not previously transferred, BMS shall transfer to AMRI, at the
cost and expense of BMS, the Know-How licensed to AMRI under this Section
13.4.2.  For the avoidance of doubt, such
Patent Rights and Know How licensed under this Section 13.4.2 exclude research
tools and targets and Patent Rights Covering research tools and/or targets. Any
sublicense shall be subject to the terms and conditions of Article 9 and AMRI
shall be liable for any breach of Article 9 by a sublicensee.

 

13.4.3      In the event that prior to such termination of this Agreement, BMS is
licensed under Patent Rights and/or Know How of a Third Party that have been
used by BMS or its Affiliates prior to such termination of this Agreement with
respect to Licensed Compounds and/or Licensed Products other than Excluded
Compounds and/or Excluded Products, and such Patent Rights and/or Know-How are
reasonably

 

Confidential
Treatment Requested

 

93

 

required by AMRI to make, have made, use, sell, offer to sell, import,
export, research, Develop and/or Commercialize Licensed Compounds and/or
Licensed Products other than Excluded Compounds and Excluded Products and BMS
has the right to grant a sublicense thereunder to AMRI when this Agreement is
terminated under Section 13.2.1, BMS shall notify AMRI of such Patent Rights
and Know-How, and then at the request of AMRI, BMS shall grant to AMRI such a
sublicense to the fullest extent permitted under the license under which the
sublicense is granted and subject to the terms, conditions and requirements
thereof to make, have made, use, sell, offer to sell, import, export, research,
Develop and/or Commercialize Licensed Compounds and Licensed Products other
than Excluded Compounds and Excluded Products to the same extent and subject to
the same restrictions as set forth in Section 13.4.2.  Such sublicense shall be granted in a
separate agreement without additional consideration to BMS, provided that AMRI
agrees to pay any and all amounts due to such Third Party as a direct result of
the granting of the sublicense and any other payments (royalties, milestones,
etc.) due thereunder as a direct result of AMRI being a sublicensee and/or its
activities as a sublicensee.

 

13.4.4      All amounts due and/or
payable to AMRI that were accrued, and/or that arise out of acts and/or events
occurring, prior to the effective date of termination shall remain due and
payable.

 

13.4.5      Should BMS have any
inventory of any Licensed Product licensed to BMS prior to the date of such
termination that is Finished Product approved and allocated prior to
termination for sale in a terminated country, BMS shall have six (6) months
thereafter in which to dispose of such inventory (subject to the payment to
AMRI of any royalties due hereunder thereon),

 

Confidential Treatment Requested

 

94

 

13.4.6      Neither Party shall be
relieved of any obligation that accrued prior to the effective date of such
termination.

 

13.4.7      The licenses granted to AMRI
under this Agreement shall remain in full force and effect, except that such
licenses shall be for all Indications.

 

13.4.8      Nothing in this Section 13.4
shall be deemed to limit any remedy to which AMRI may be entitled by applicable
law.

 

13.4.9      Except for Excluded Compounds
and Excluded Products, in the event that at the date of such termination BMS or
its Affiliate or their supplier is responsible for manufacturing a Licensed
Product and/or Licensed Compounds for the purposes of conducting clinical
trials and/or for Commercializing a Licensed Product, then until the earlier of
(A) the date that AMRI obtains an alternative supply thereof or (B) *, at AMRI’s
option, BMS shall supply such Licensed Product and Licensed Compounds to AMRI at * percent (*%) of BMS’ or its Affiliate’s
cost for such Licensed Product and/or Licensed Compounds (and in the case where
BMS or its Affiliate manufactures such Licensed Product and/or Licensed
Compounds, such cost shall be * percent (*%) of BMS’ or its Affiliate’s
fully-burdened manufacturing cost for such Licensed Product and/or Licensed
Compounds), under terms and conditions mutually agreed between the Parties;
provided however, if there are restrictions in an agreement between BMS or an Affiliate of BMS and a
Third Party governing the manufacture or supply of such Licensed Product and/or
any such Licensed Compound that would limit the amount of such Licensed Product
and/or any such Licensed Compound that could be supplied to AMRI or that would
preclude the period from being up until *, then the limits in such agreement as
to the amount of such Licensed Product and/or any such Licensed Compound that
could be supplied shall govern and such period shall be up to as long a time as
permitted under such agreement and further provided that if BMS or its
Affiliate is manufacturing the

 

Confidential Treatment Requested

 

95

 

Licensed Compound and/or
Licensed Product, BMS shall not be obligated to manufacture and supply such
Licensed Compound and/or Licensed Product in amounts that exceed the amounts of
such Licensed Compound and/or Licensed Product being manufactured by BMS or its
Affiliate as of the date of termination.

 

13.4.10    Subject to Section 13.12 and
except for Excluded Compounds and Excluded Products, BMS shall transfer to
AMRI, at the cost and expense of BMS, all marketing authorizations, INDs and
other regulatory filings and Approvals, on a country-by-country basis, for any
Licensed Product that is being Developed and/or Commercialized by BMS or its
Affiliates or its (sub)licensees at the time of such termination.  In the event that in any country such
transfer is not legally possible, BMS shall (and shall cause its Affiliates and
(sub)licensees to) take all reasonable actions that are permitted by the
applicable Regulatory Authority to permit AMRI to also have the benefit of the
relevant marketing authorizations, INDs and other regulatory filings and
Approvals that exist at the time of termination for any such Licensed Product,
including allowing AMRI to cross-reference data and information on file with
any Regulatory Authority, and to this end, BMS (itself and on behalf of its
Affiliates) consents to and shall cause its sublicensees to consent to any
Regulatory Authority cross-referencing to the data and information on file with
any Regulatory Authority to the extent that it exists at the time of such
termination as may be necessary to facilitate the granting of permitted second
marketing authorizations, INDs, regulatory filings and Approvals to AMRI.

 

13.4.11    The licenses granted under this Section 13.4 shall be royalty free
except for any license granted pursuant to Section 13.4.3 and any Licensed
Product that contains an ECN Compound or an Included Compound of an ECN
Compound.  With respect to any Licensed
Product that contains an ECN Compound or an Included Compound of an ECN
Compound, AMRI shall pay BMS a royalty of * percent (*%) of net sales

 

Confidential
Treatment Requested

 

96

 

(calculated in the same manner as Net Sales) of such Licensed Product
for the same term and with the same reductions specified in Section 11.2 with
respect to Royalty Bearing Product except that there shall be no reduction in
royalties for Generic Products in a country until the sales of Generic Products
in such country in a Calendar Quarter exceed * (*) percent of the sum of all
prescriptions for such form of such Royalty Bearing Product sold by AMRI, its
Affiliates and (sub)licensees and by the Third Party Seller(s) of such Generic
Product(s) in such country during such Calendar Quarter, and in such case, the
royalties shall be reduced by * (*) percent for such Calendar Quarter.    The terms and conditions set forth in
Sections 11.4 through 11.7 shall apply to AMRI with respect to such royalty
payments by AMRI in the same manner as they would apply to BMS prior to such
termination.

 

13.5         Effect of Termination
by AMRI under Section 13.2.2.  Upon
termination of this Agreement by AMRI under Section 13.2.2 or, with respect to all Licensed Compounds
and Licensed Products in each applicable country as to which termination occurs
pursuant to Section 13.2.2 hereof (the rights and obligations of the Parties as
to all Licensed Compounds and Licensed Products in countries of the Territory
in which termination under Section 13.2.2 has not occurred, being unaffected by
such termination):

 

13.5.1      Subject to Section 13.12, all rights
and licenses granted to BMS under Article 3 and sublicenses thereunder shall
terminate in each applicable country and except for Excluded Compounds and
Excluded Products, neither BMS nor its Affiliates shall Develop or
Commercialize a Licensed Product and/or Licensed Compound.  AMRI shall have no rights or licenses with respect
to Excluded Compounds and Excluded Products in each terminated country except
for those rights and licenses under Section 4.5, and no right to have any
marketing authorizations, INDs or other regulatory filings and Approvals for
Excluded Compounds or Excluded Products in

 

Confidential Treatment Requested

 

97

 

any terminated
country assigned to it, and except as provided below in this Section 13.5.1,
shall have no right to have access to any data or information concerning
Excluded Compounds and Excluded Products. Upon such termination, BMS shall
notify AMRI in writing as to those Excluded Compounds and Excluded Products the
Development and/or Commercialization of which was terminated by BMS or one of
its Affiliates or sublicensees for Safety Reasons and the nature of such Safety
Reasons. BMS agrees to make available for AMRI’s inspection, relevant data,
materials and reports that support such Safety Reasons, provided that AMRI
enters into an agreement with BMS or the relevant Affiliate or sublicensee of
BMS to maintain the confidentiality of such data, materials and reports.

 

13.5.2      Except for the Excluded Compounds and
Excluded Products, BMS agrees to grant and hereby grants AMRI an
exclusive license, with the right to
sublicense, to research, Develop make, have made, use, export, import, offer to
sell, sell and Commercialize Licensed Compounds and Licensed Products in the
Field in each terminated country under Patent Rights and Know-How that (a) are
owned by BMS or its Affiliates as of the date of such termination, (b) are
Controlled by BMS or its Affiliates as of the date of such termination and (c)
are reasonably required by AMRI to make, have made, use, sell, import, export,
offer to sell, research, Develop or Commercialize Licensed Compounds and/or
Licensed Products in the Field and, to the extent not previously transferred,
BMS shall transfer to AMRI, at the cost and expense of BMS, the Know-How
licensed to AMRI under this Section 13.5.2. For the avoidance of doubt, such
Patent Rights and Know How licensed under this Section 13.5.2 exclude research
tools and targets and Patent Rights Covering research tools and/or
targets.  Any sublicense shall be subject
to the terms and conditions of Article 9 and AMRI shall be liable for any
breach of Article 9 by a sublicensee.

 

Confidential
Treatment Requested

 

98

 

13.5.3      In the event that prior to such termination, BMS is licensed under
Patent Rights and/or Know How of a Third Party that have been used in a
terminated country by BMS or its Affiliates prior to such termination with
respect to Licensed Compounds and/or Licensed Products other than Excluded
Compounds and/or Excluded Products, and such Patent Rights and/or Know-How are
reasonably required by AMRI to make, have made, use, sell, offer to sell,
import, export, research, Develop and/or Commercialize Licensed Compounds
and/or Licensed Products other than Excluded Compounds and Excluded Products in
a terminated country and BMS has the right to grant a sublicense thereunder to
AMRI at the time of such termination under Section 13.2.2, BMS shall notify
AMRI of such Patent Rights and Know-How, and then at the request of AMRI, BMS
shall grant to AMRI such a sublicense to the fullest extent permitted under the
license under which the sublicense is granted and subject to the terms,
conditions and requirements thereof to make, have made, use, sell, offer to
sell, import, export, research, Develop and/or Commercialize Licensed Compounds
and Licensed Products other than Excluded Compounds and Excluded Products in
each terminated country to the same extent and subject to the same restrictions
as set forth in Section 13.5.2.  Such
sublicense shall be granted in a separate agreement without additional
consideration to BMS, provided that AMRI agrees to pay any and all amounts due
to such Third Party as a direct result of the granting of the sublicense and
any other payments (royalties, milestones, etc.) due thereunder as a direct
result of AMRI being a sublicensee and/or its activities as a sublicensee.

 

13.5.4      All amounts due and/or
payable to AMRI that were accrued, or that arise out of acts or events
occurring in a terminated country, prior to the effective date of termination
shall remain due and payable.

 

Confidential Treatment Requested

 

99

 

13.5.5       Should BMS have any
inventory of any Licensed Product licensed to BMS prior to the date of such
termination that is Finished Product approved and allocated prior to termination
for sale in a terminated country, BMS shall have six (6) months thereafter in
which to dispose of such inventory (subject to the payment to AMRI of any
royalties due hereunder thereon),

 

13.5.6      Neither Party shall be
relieved of any obligation that accrued prior to the effective date of such
termination.

 

13.5.7      The licenses granted to AMRI
under this Agreement shall remain in full force and effect except that such
license shall be for all Indications in each country where the licenses of BMS
have been terminated.

 

13.5.8      Nothing in this Section 13.5
shall be deemed to limit any remedy to which AMRI may be entitled by applicable
law.

 

13.5.9      Except for Excluded Compounds and Excluded Products, in the
event that at the date of such termination BMS or its Affiliate or their
supplier is responsible for manufacturing a Licensed Product and/or Licensed
Compounds for the purposes of conducting clinical trials and/or for
Commercializing a Licensed Product in or for a terminated country, then until
the earlier of (A) the date that AMRI obtains an alternative supply thereof or
(B) the second anniversary of the date of such termination in a terminated
country, at AMRI’s option, BMS shall supply such Licensed Product and Licensed
Compounds to AMRI at * percent (*%) of
BMS’ or its Affiliate’s cost for such Licensed Product and/or Licensed
Compounds (and in the case where BMS or its Affiliate manufactures such
Licensed Product and/or Licensed Compounds, such cost shall be * percent (*%) of
BMS’ or its Affiliate’s fully-burdened manufacturing cost for such Licensed
Product and/or Licensed Compounds), under terms and conditions mutually agreed
between the Parties;

 

Confidential Treatment Requested

 

100

 

provided
however, if there are restrictions in an agreement between BMS or an Affiliate of BMS and a
Third Party governing the manufacture or supply of such Licensed Product and/or
any such Licensed Compound that would limit the amount of such Licensed Product
and/or any such Licensed Compound that could be supplied to AMRI or that would
preclude the period from being up until the second anniversary of the date of
such termination, then the limits in such agreement as to the amount of such
Licensed Product and/or any such Licensed Compound that could be supplied shall
govern and such period shall be up to as long a time as permitted under such
agreement and further provided that if BMS or its Affiliate is manufacturing
the Licensed Compound and/or Licensed Product, BMS shall not be obligated to
manufacture and supply such Licensed Compound and/or Licensed Product in
amounts that exceed the amounts of such Licensed Compound and/or Licensed
Product being manufactured by BMS or its Affiliate as of the date of
termination.

 

13.5.10    Subject to Section 13.12 and except for Excluded Compounds and Excluded
Products, at the cost and expense of BMS, BMS shall transfer to AMRI all
marketing authorizations, INDs and other regulatory filings and Approvals in a
terminated country for any Licensed Product that is being Developed and/or
Commercialized by BMS or its Affiliates or its (sub)licensees in such
terminated country as of the date of such termination.  In the event that in any terminated country
such transfer is not legally possible, BMS shall (and shall cause its
Affiliates and (sub)licensees to) take all reasonable actions that are
permitted by the applicable Regulatory Authority to permit AMRI to also have
the benefit of the relevant marketing authorizations, INDs and other regulatory
filings and Approvals in such terminated country that exist at the time of
termination for any such Licensed Product in such terminated country, including
allowing AMRI to cross-reference data and information on file with the
Regulatory Authority in such terminated country, and to this end, BMS (itself
and on

 

Confidential Treatment Requested

 

101

 

behalf of its Affiliates) consents to and shall cause its sublicensees
to consent to such Regulatory Authority cross-referencing to the data and
information on file with such Regulatory Authority to the extent that it exists
at the time of such termination as may be necessary to facilitate the granting
of permitted second marketing authorizations, INDs, regulatory filings and
Approvals in such terminated country to AMRI.

 

13.5.11    The licenses granted under this Section 13.5
shall be royalty free except for any license granted pursuant to Section 13.5.3
and any Licensed Product that contains an ECN Compound or an Included Compound
of an ECN Compound. With respect to Licensed Product that contains an ECN
Compound or an Included Compound of an ECN Compound, AMRI shall pay BMS a
royalty of * percent (*%) of net sales (calculated in the same manner as Net
Sales) of such Licensed Product for the same term and with the same reductions
specified in Section 11.2 with respect to Royalty Bearing Product except that
there shall be no reduction in royalties for Generic Products in a country
until the sales of Generic Products in such country in a Calendar Quarter
exceed * (*) percent of the sum of all prescriptions for such form of such
Royalty Bearing Product sold by AMRI, its Affiliates and (sub)licensees and by
the Third Party Seller(s) of such Generic Product(s) in such country during
such Calendar Quarter, and in such case, the royalties shall be reduced by * (*)
percent for such Calendar Quarter. The terms and conditions set forth in
Sections 11.4 through 11.7 shall apply to AMRI with respect to such royalty
payments by AMRI in the same manner as they would apply to BMS prior to such
termination.

 

13.6         Effect
of Termination by BMS for AMRI Breach. Upon termination of this Agreement
by BMS pursuant to Section 13.3.2:

 

13.6.1      Subject
to Section 13.12, all rights and licenses granted to BMS and sublicenses
granted thereunder shall terminate, and except for Excluded Compounds and 

 

Confidential Treatment Requested

 

102

 

Excluded Products BMS shall not Develop and/or Commercialize any
Licensed Compound and/or any Licensed Product.

 

13.6.2      All
amounts due and/or payable to AMRI that were accrued, and/or that arise out of
acts and/or events occurring, prior to the effective date of termination shall
remain due and payable.

 

13.6.3      Neither
Party shall be relieved of any obligation that accrued prior to the Effective
Date of such termination or expiration.

 

13.6.4      Nothing
in this Section 13.6 shall be deemed to limit any remedy to which BMS may be
entitled by applicable Law.

 

13.6.5      Subject to Section 13.12, all rights and
licenses granted to AMRI under this Agreement (except for the rights and
licenses granted under Section 4.5), including but not limited to all rights
and licenses granted under Section 4.2.2, shall terminate, and AMRI shall not
Develop and/or Commercialize any BMS Compound and/or any Licensed Product
containing a BMS Compound.

 

13.7         Effect of Termination by BMS Under Section
13.3.1. Upon termination of
this Agreement under Section 13.3.1, with respect to each applicable Licensed
Compound and/or Licensed Product (such terminated Licensed Compounds and
terminated Licensed Products being collectively “Terminated Products”) in each
applicable country as to which termination occurs pursuant to Section 13.3.1
hereof (such countries being collectively “Terminated Countries”) (the rights
and obligations of the Parties as to the remaining Licensed Products and
Licensed Compounds and countries of the Territory in which termination under
Section 13.3.1 has not occurred, being unaffected by such termination):

 

13.7.1      Subject to Section 13.12, all rights and licenses granted to BMS
under Article 3 and sublicenses thereunder shall terminate for Terminated
Products in Terminated Countries and except for Excluded Compounds and Excluded
Products, neither BMS 

 

Confidential Treatment Requested

 

103

 

nor its Affiliates shall Develop and/or Commercialize Terminated
Products in Terminated Countries. AMRI shall have no rights or licenses with
respect to Excluded Compounds and Excluded Products in Terminated Countries
except for those rights and licenses under Section 4.5, and no right to have
any marketing authorizations, INDs or other regulatory filings and Approvals
for Excluded Compounds or Excluded Products in Terminated Countries assigned to
it under this Section 13.7, and except as provided below in this Section
13.7.1, shall have no right to have access to any data or information
concerning Excluded Compounds and Excluded Products under this Section 13.7. Upon
such termination, BMS shall notify AMRI in writing as to those Excluded
Compounds and Excluded Products the Development and/or Commercialization of
which was terminated by BMS or one of its Affiliates or sublicensees for Safety
Reasons and the nature of such Safety Reasons. BMS agrees to make available for
AMRI’s inspection, relevant data, materials and reports that support such Safety
Reasons, provided that AMRI enters into an agreement with BMS or the relevant
Affiliate or sublicensee of BMS to maintain the confidentiality of such data,
materials and reports.

 

13.7.2      Except for Excluded Compounds and Excluded
Products, BMS agrees to grant and hereby grants AMRI an exclusive license, with the right to sublicense, to
research, Develop, make, have made, use, export, import, offer to sell, sell
and Commercialize Terminated Compounds in the Field in each Terminated Country
under Patent Rights and Know-How that (a) are owned by BMS or its Affiliates as
of the date of such termination, (b) are Controlled by BMS or its Affiliates as
of the date of such termination and (c) are reasonably required by AMRI to
make, have made, use, sell, offer to sell, import, export, research, Develop
and/or Commercialize Terminated Products in the Field and, to the extent not
previously transferred, BMS shall transfer to AMRI, at the cost and expense of
AMRI, the Know-How licensed to AMRI under this Section 13.7.2. For the
avoidance of doubt, AMRI shall be responsible for all 

 

Confidential
Treatment Requested

 

104

 

internal costs (including
costs of employee time) and out-of pocket expenses incurred by BMS for the
transfer of such Know-How. For the avoidance of doubt, such Patent Rights and
Know How licensed under this Section 13.7.2 exclude research tools and targets
and Patent Rights Covering research tools and/or targets. Any sublicense shall
be subject to the terms and conditions of Article 9 and AMRI shall be liable
for any breach of Article 9 by a sublicensee.

 

13.7.3      In the event that prior to such termination,
BMS is licensed under Patent Rights and/or Know How of a Third Party that have
been used in a Terminated Country by BMS or its Affiliates prior to such
termination with respect to Terminated Products other than Excluded Compounds
and/or Excluded Products, and such Patent Rights and/or Know-How are reasonably
required by AMRI to make, have made, use, sell, offer to sell, import, export,
research, Develop and/or Commercialize Terminated Products other than Excluded
Compounds and Excluded Products in a Terminated Country and BMS has the right
to grant a sublicense thereunder to AMRI at the time of such termination under
Section 13.3.1, BMS shall notify AMRI of such Patent Rights and Know-How, and
then at the request of AMRI, BMS shall grant to AMRI such a sublicense to the
fullest extent permitted under the license under which the sublicense is
granted and subject to the terms, conditions and requirements thereof to make,
have made, use, sell, offer to sell, import, export, research, Develop and/or
Commercialize Terminated Products other than Excluded Compounds and Excluded
Products in each Terminated Country to the same extent and subject to the same
restrictions as set forth in Section 13.7.2. Such sublicense shall be granted
in a separate agreement without additional consideration to BMS, provided that
AMRI agrees to pay any and all amounts due to such Third Party as a direct
result of the granting of the sublicense and any other payments (royalties,
milestones, etc.) due 

 

Confidential
Treatment Requested

 

105

 

thereunder as a direct
result of AMRI being a sublicensee and/or its activities as a sublicensee.

 

13.7.4      The licenses granted under this Section 13.7
shall be royalty free except for any license granted pursuant to Section 13.7.3
and any Terminated Product that contains an ECN Compound or an Included Compound
of an ECN Compound. With respect to any Terminated Product that contains an ECN
Compound or an Included Compound of an ECN Compound, AMRI shall pay BMS a
royalty of * percent (*%) of net sales (calculated in the same manner as Net
Sales) of such Terminated Product for the same term and with the same
reductions specified in Section 11.2 with respect to Royalty Bearing Product,
except that there shall be no reduction in royalties for Generic Products in a
country until the sales of Generic Products in such country in a Calendar
Quarter exceed * (*) percent of the sum of all prescriptions for such form of
such Royalty Bearing Product sold by AMRI, its Affiliates and (sub)licensees
and by the Third Party Seller(s) of such Generic Product(s) in such country
during such Calendar Quarter, and in such case, the royalties shall be reduced
by * (*) percent for such Calendar Quarter. The terms and conditions set forth
in Sections 11.4 through 11.7 shall apply to AMRI with respect to such royalty
payments by AMRI in the same manner as they would apply to BMS prior to such
termination.

 

13.7.5
All amounts due and/or payable to AMRI that were accrued, or that arise out of
acts or events occurring, prior to the effective date of termination shall
remain due and payable.

 

13.7.6 Should BMS have any inventory of any Licensed Product licensed
to BMS prior to the date of such termination that is Finished Product approved
and allocated prior to termination for sale in a terminated country, BMS shall
have six (6) months thereafter in which to dispose of such inventory (subject
to the payment to AMRI of any royalties due hereunder thereon),

 

Confidential Treatment Requested

 

106

 

13.7.7  Neither Party shall be relieved of any obligation
that accrued with respect to a Terminated Product in a Terminated Country prior
to the effective date of such termination.

 

13.7.8 The licenses granted to AMRI under this Agreement shall remain
in full force and effect, except that the licenses shall be for all Indications
that are not Reserved Indications in the Terminated Countries.

 

13.7.9
Nothing in this Section 13.7 shall be deemed to limit any remedy to which BMS
may be entitled by applicable law.

 

13.7.10
Except for Excluded Compounds and Excluded Products, in the event that
at the date of such termination BMS or its Affiliate or their supplier is
responsible for manufacturing a Terminated Product for the purposes of
conducting clinical trials and/or for Commercializing a Terminated Product for
a Terminated Country, then until the earlier of (A) the date that AMRI obtains
an alternative supply thereof or (B) the second anniversary of the date of such
termination, at AMRI’s option, BMS shall supply such Terminated Product to AMRI
at * percent (*%) of BMS’ or its
Affiliate’s cost for such Terminated Product (and in the case where BMS or its
Affiliate manufactures such Terminated Product, such cost shall be * percent (*%)
of BMS’ or its Affiliate’s fully-burdened manufacturing cost for such Terminated
Product), under terms and conditions mutually agreed between the Parties;
provided however, if there are restrictions in an agreement between BMS or an Affiliate of BMS and a
Third Party governing the manufacture or supply of such Terminated Product that
would limit the amount of such Terminated Product that could be supplied to
AMRI or that would preclude the period from being up until the second
anniversary of the date of such termination, then the limits in such agreement
as to the amount of such Terminated Product that could be supplied shall govern
and such period shall be up to as long a time as permitted under such agreement
and further provided that if BMS or its Affiliate is manufacturing the
Terminated Product, BMS shall not be obligated to manufacture and supply such
Terminated 

 

Confidential Treatment Requested

 

107

 

Product
in amounts that exceed the amounts of such Terminated Product being
manufactured by BMS or its Affiliate as of the date of termination.

 

13.7.11 Subject to Section
13.12 and except for Excluded Compounds and Excluded Products, at the cost and
expense of AMRI, BMS shall transfer to AMRI all marketing authorizations, INDs
and other regulatory filings and Approvals, on a country-by-country basis, for
any Terminated Product in a Terminated Country that is being Developed and/or
Commercialized by BMS or its Affiliates or its (sub)licensees at the time of
such termination. For the avoidance of doubt, AMRI shall be responsible for all
internal costs (including costs of employee time) and out-of pocket expenses
incurred by BMS for the transfer of such regulatory filings and Approvals. In
the event that in any Terminated Country such transfer is not legally possible,
BMS shall (and shall cause its Affiliates and (sub)licensees to) take all
reasonable actions that are permitted by the applicable Regulatory Authority to
permit AMRI to also have the benefit of the relevant marketing authorizations,
INDs and other regulatory filings and Approvals that exist at the time of
termination for any such Terminated Product, including allowing AMRI to
cross-reference data and information on file with any Regulatory Authority, and
to this end, BMS (itself and on behalf of its Affiliates) consents to and shall
cause its sublicensees to consent to any Regulatory Authority cross-referencing
to the data and information on file with any Regulatory Authority to the extent
that it exists at the time of such termination as may be necessary to
facilitate the granting of permitted second marketing authorizations, INDs,
regulatory filings and Approvals to AMRI.

 

13.8                 Effect
of Expiration of this Agreement. Upon expiration of this Agreement:

 

Confidential Treatment Requested

 

108

 

13.8.1      All
amounts due and/or payable to BMS or AMRI that were accrued, and/or that arise
out of acts and/or events occurring, prior to the effective date of expiration
shall remain due and payable.

 

13.8.2      Neither
Party shall be relieved of any obligation that accrued prior to the effective
date of such expiration.

 

13.8.3      The
license with respect to AMRI Technology granted under Section 3.1 shall remain
in effect and shall be fully paid up, subject to the terms of this Agreement.

 

13.8.4      The
licenses granted under Sections 4.2.2 and 4.5 shall remain in effect and shall
be fully paid up.

 

13.9         Scope
of Termination. Except as otherwise expressly provided herein, termination
of this Agreement shall be as to all countries in the Territory and all
Licensed Compounds and Licensed Products.

 

13.10       Survival.
The following provisions shall survive termination or expiration of this
Agreement, as well as any other provisions which by their nature are intended
to survive termination or expiration: Articles 9, 12, 13, 16, 17 and 18 and
Sections 3.1(f), 3.6, 4.5, 11.4-11.7 (with respect to royalties and payments
that accrued prior to expiration or termination), 14.1 and 14.4 (with respect
to any infringement or suspected infringement by a Third Party occurring prior
to the termination or expiration of this Agreement).

 

13.11       Order of Divestment.

 

13.11.1    In the event that BMS or its Affiliate is
ordered by a government agency to divest all or any portion of the business
relating to its efforts to Develop and/or Commercialize Licensed Compounds
and/or Licensed Products, subject to Section 13.11.2, BMS shall have the right
to divest all or such portion of such business (as the case may be), which
right shall include, but not be limited to, the right to assign to one or more
Third Parties, without the consent of AMRI, all of BMS’ rights and obligations
under 

 

Confidential Treatment Requested

 

109

 

this
Agreement with respect to all or such portion of such business. AMRI shall
fully cooperate with BMS and take any actions that BMS reasonably requests,
including amending this Agreement, in order to effect any such divestiture
during the time period set by such government agency to divest all or any such
portion of such business. During such time period, BMS shall provide AMRI with
the opportunity to bid on all or such portion of such business and shall
consider any bid by AMRI in good faith.

 

13.11.2    In the event that BMS or its Affiliate is
ordered by a government agency to divest all or portion of the business
relating to its efforts to Develop and/or Commercialize Licensed Compounds
and/or Licensed Products during the Research Term and no Licensed Product is in
a clinical trial or is being Commercialized, then BMS and its Affiliates shall
assign such business to AMRI * to AMRI, except that AMRI shall be responsible
for the costs and expenses incurred by BMS to transfer any Know-How and any
regulatory filings associated with such business. For the avoidance of doubt,
AMRI shall be responsible for all internal costs (including costs of employee
time) and out-of pocket expenses incurred by BMS for the transfer of such
Know-How and regulatory filings.

 

13.12       Sublicense Survival. In the event that any license granted to a
Party under this Agreement is terminated (a “Terminated Party”) and the
Terminated Party has granted a sublicense thereunder to a Third Party
sublicensee, then the other Party (the “Non-Terminated Party”) shall grant a
direct license to such sublicensee under the terms and conditions of this
Agreement to the extent of such sublicense, provided that such sublicensee
agrees to be bound to the Non-Terminated Party under the terms and conditions
of this Agreement and such sublicensee is not in material breach of its
agreement for such sublicense with the Terminated Party (or if it is in
material breach, such sublicensee does not cure such breach within sixty 

 

Confidential Treatment Requested

 

110

 

(60)
days of the termination of the license from the Non-Terminated Party to the
Terminated Party with respect to such sublicensed rights). In the event that the
Non-Terminated Party is AMRI and AMRI grants a direct license to such
sublicensee, such sublicensee shall not be required to transfer to AMRI upon
the termination of such license granted to BMS under this Agreement any
marketing authorizations, INDs and/or other regulatory filings and Approvals
for any Licensed Product being Developed and/or Commercialized by such sublicensee.
Any such direct license between the Non-Terminated Party and such sublicensee
shall not prejudice any remedy a Party may have against another Party in
connection with such termination of the license to the Terminated Party under
this Agreement (in whole or in part), the Terminated Party shall no longer be
obligated under this Agreement to pay amounts set forth in this Agreement, to
the extent such amounts are payable based on the activities of such
sublicensee, its Affiliates and its sublicensees from and after the effective
date of such termination, under such direct license, and such direct license
shall not modify the rights and obligations of the Parties following any
termination of the license to the Terminated Party under this Agreement or the
termination of this Agreement in whole or in part.

 

14.          INTELLECTUAL
PROPERTY OWNERSHIP, PROTECTION AND RELATED MATTERS

 

14.1         Program Inventions. Inventorship of inventions conceived
and/or reduced to practice in the course of conducting activities under this
Agreement shall be determined by application of United States patent laws
pertaining to inventorship. If such inventions are jointly invented in the
course of such activities by one or more employees or consultants or
contractors of both Parties, such inventions shall be jointly owned by the
Parties (a “Joint Invention”), and if
one or more claims included in an issued patent or pending patent application
which is filed in a patent office in the Territory claim such Joint Invention,
such patent or patent application, respectively, shall be jointly owned by the
Parties. If such an invention is solely invented in the course of such
activities by one or more employees or consultants or contractors of a 

 

Confidential Treatment Requested

 

111

 

Party, such invention shall be solely owned by such Party (a ‘Sole Invention”), and any patent application filed and any
patent issuing therefrom claiming such solely owned invention (and no Joint
Invention) shall also be solely owned by such Party. This Agreement shall be
understood to be a joint research agreement in accordance with 35 U.S.C.
§ 103I(3) to develop the Licensed Compounds and Licensed Products. Each
Party shall enter into binding agreements obligating all employees and
consultants performing activities under or contemplated by this Agreement,
including but not limited to activities related to the AMRI Patent Rights,
Licensed Compounds and/or Licensed Products, to assign his/her interest in any
invention conceived and/or reduced to practice in the course of such activities
to the Party for which such employee or consultant is providing its services. With
respect to contractors, each Party shall use good faith and diligent efforts to
secure an agreement from such contractor to assign or license (with the right
to sublicense) to such Party inventions (and patent rights Covering such
inventions) made by such contractor in performing such services for such Party.

 

14.2         Filing, Prosecution and Maintenance of Patent Rights.

 

14.2.1      AMRI
shall be responsible, using outside patent counsel free of ethical conflicts
and mutually agreed upon by AMRI and BMS, for the preparation, filing,
prosecution (including, without limitation, any interferences, reissue
proceedings and reexaminations) and maintenance of the AMRI Patent Rights,
including AMRI Patent Rights claiming Joint Inventions.

 

14.2.2      Subject
to Section 14.2.8, starting on the Effective Date and during the Combined
Period BMS shall be responsible for the costs and expenses incurred by AMRI
with respect to the preparation, filing, prosecuting and maintenance of AMRI
Patent Rights and thereafter the Parties shall equally share such costs and
expenses of AMRI Patent Rights, except for AMRI Patent Rights that are solely
directed to Retained 

 

Confidential Treatment Requested

 

112

 

Products and/or solely directed to Released Products for which such
costs and expenses shall be paid only by BMS and only by AMRI, respectively. BMS
may, at its option and with prior written notice to AMRI, discontinue its
payment obligations for costs incurred in connection with the filing,
prosecution and maintenance of one or more particular patent(s) or patent
application(s) within the AMRI Patent Rights in one or more countries. It is
understood that BMS’ rights in accordance with this Agreement, under such
patent or patent application in such country, would terminate (such patent or
patent application hereinafter, a “Cost-terminated” patent or patent
application), but that all remaining rights and licenses under all other
patent(s) and patent application(s) of the AMRI Patent Rights would remain in
effect. It is also understood that BMS will be offered the opportunity to
assume all costs for the filing, prosecution, and maintenance of any patent or
patent application claiming priority directly or indirectly from such
Cost-terminated patent or patent application, and that where all such costs are
assumed by BMS, BMS will be afforded all rights and licenses contemplated by
this Agreement for the AMRI Patent Rights (other than Cost-terminated patents
or patent applications) in connection with such patent or patent application.

 

14.2.3      AMRI
shall provide BMS with quarterly updates of the filing, prosecution and
maintenance status for each of the AMRI Patent Rights.

 

14.2.4      The
Parties shall cooperate fully in the preparation, filing, prosecution and
maintenance of the AMRI Patent Rights. The
Parties agree to confer, and meet as necessary, through their respective
in-house patent counsels or other in-house legal representatives, together with
outside counsel selected in accordance with Section 14.2.1 in order to maximize
the potential for different patents to separately Cover, respectively, Retained
Compounds (or compounds likely to be Retained Compounds) 

 

Confidential Treatment Requested

 

113

 

and
Released Compounds (or compounds likely to be Released Compounds), such as by,
without limitation, the filing of appropriate divisional or continuation
applications, or original applications, Covering particular subject matter.

 

14.2.5      AMRI
shall reasonably consult with and cooperate with BMS with respect to the
preparation, filing, prosecution and maintenance of the AMRI Patent Rights. Such
consultation and cooperation shall include, but not be limited to, AMRI
providing BMS with a copy of each patent application included in the AMRI
Patent Rights that AMRI intends to file in sufficient time for BMS to provide its
comments with respect to such patent application before such patent application
is filed by AMRI, and providing BMS with a copy of all material official
correspondence to or from patent offices in sufficient time for BMS to provide
its comments with respect to such correspondence before a response to any such
correspondence is filed by AMRI.

 

14.2.6      BMS
may file a notice with governmental patent offices of the exclusive license to
the AMRI Patent Rights granted to BMS hereunder.

 

14.2.7      BMS
shall be responsible for the preparation, filing, prosecution (including
without limitation, any interferences, reissue proceedings and reexaminations)
and maintenance of the BMS Licensed Patent Rights, except for those claiming
Joint Inventions (which are handled pursuant to Sections 14.2.1 and 14.2.2) and
costs associated in connection therewith.

 

14.2.8      *

 

14.3         Patent Abandonment. In no event shall AMRI permit any of the
AMRI Patent Rights to be abandoned, or elect not to file a new patent 

 

Confidential Treatment Requested

 

114

 

application claiming priority to a patent application within the AMRI
Patent Rights either before such patent application’s issuance or within the
time period required for the filing of an international (i.e., Patent
Cooperation Treaty), regional (including European Patent Office) or national
application, without BMS first being given an opportunity to assume full
responsibility for the continued prosecution and maintenance of such AMRI
Patent Rights, or the filing of such new patent application. AMRI shall provide
BMS with notice of the allowance and expected issuance date of any such patent
within the AMRI Patent Rights, or any of the aforementioned filing deadlines. In
the event that AMRI decides either (i) not to continue the prosecution or
maintenance of a patent application or patent within the AMRI Patent Rights in
any country as permitted in this Section 14.3 or (ii) not to file such new
patent application requested to be filed by BMS, AMRI shall provide BMS with notice of this decision at least thirty (30) days prior to
any pending lapse or abandonment thereof. In such event, AMRI shall provide BMS
with an opportunity to assume responsibility for the filing and/or further
prosecution and maintenance of such patent application and any patent issuing
thereon (such filing to occur prior to the issuance of the patent to which the
application claims priority or expiration of the applicable filing deadline, as
set forth above). In the event that BMS assumes such responsibility for such
filing, prosecution and maintenance costs, AMRI shall transfer at BMS’ sole
option the responsibility for such filing, prosecution and maintenance of such
patent applications and patents to patent counsel selected by BMS and
reasonably acceptable to AMRI. In such case, BMS shall provide AMRI with an
update of the filing, prosecution and maintenance status for each of such
patent applications and patents, including copies of any material official
correspondence to or from patent offices. BMS shall reasonably consult with and
cooperate with AMRI with respect to the preparation, prosecution and
maintenance of such patent applications and patents. Such patent applications
and patents shall otherwise continue to be subject to all of the terms and
conditions of the Agreement in the same way as the other AMRI Patent Rights.

 

Confidential Treatment Requested

 

115

 

14.4         Enforcement of AMRI Patent Rights Against Infringers.

 

14.4.1      (a) In the event that BMS or AMRI becomes aware of a suspected
infringement of any AMRI Patent Right or BMS Licensed Patent Right in the
Field, such Party shall notify the other Party promptly, and following such
notification, the Parties shall confer. The Lead Party shall have the right,
but shall not be obligated, to bring an infringement action for suspected
infringement of its Lead Party Patent Rights in the Field at its own expense,
in its own name and entirely under its own direction and control, subject to
the following. The Party which is not the Lead Party (“Non-Lead
Party”) shall reasonably assist the Lead Party (at the Lead Party’s
expense) in any action or proceeding being prosecuted for such suspected
infringement if so requested, including by being named or joined as a plaintiff
to such actions or proceedings if requested by the Lead Party or required by
law. The Non-Lead Party if not requested to participate shall have the right to
voluntarily participate and be represented in any such suit by its own counsel
at its own expense.

 

(b)  No settlement of any such action or
proceeding which restricts the scope, or adversely affects the enforceability
or validity, of a Lead Party Patent Right in the Field may be entered into by
the Lead Party without the prior written consent of the Non-Lead Party, which
consent shall not be unreasonably withheld, delayed or conditioned. Further, no
settlement of any such action or proceeding which pertains to the infringement
of the Lead Party Patent Rights by virtue of the Development or
Commercialization of a Licensed Compound in the Field by a Third Party that is
not a sublicensee may be entered into by the Lead Party without the prior
written consent of the Non-Lead Party, which consent shall not be unreasonably withheld,
delayed or conditioned except no consent shall be required with respect to the
granting of a sublicense to the extent that the Lead Party has the right under
this Agreement to grant such a sublicense. Consent under this Section 14.4.1(b)
is not required where 

 

Confidential Treatment Requested

 

116

 

BMS
is the Lead Party enforcing a BMS Licensed Patent Right not claiming a Joint
Invention, and that is not licensed to AMRI under this Agreement with respect
to a Released Compound and/or Released Product. Consent under this Section
14.4.1 (b) is not required after the Combined Period, where AMRI is the Lead
Party enforcing an AMRI Patent Right not claiming a Joint Invention that is not
licensed to BMS for a Retained Product and/or Retained Compound.

 

I   Notwithstanding anything else to the
contrary in this Agreement, in the event that AMRI grants a (sub)license under
AMRI Technology and/or BMS Technology with respect to one or more Released
Compounds and/or Released Products and such (sub)licensee (or its (sub)licensee)
Develops and/or Commercializes such a Released Compound and/or Released Product
for a Reserved Indication, BMS shall have the right to enforce the AMRI Patent
Rights and/or BMS Licensed Patent Rights by bringing an infringement action
with respect to such Development and/or Commercialization by such (sub)licensee
(or its (sub)licensee) of such Released Compound and/or Released Product for
such Reserved Indication. The provisions of Section 14.4.1(a) shall be
applicable to any infringement action brought by BMS pursuant to this Section
14.4.1(c), and BMS shall be considered the Lead Party, AMRI shall be considered
the Non-Lead Party, and the applicable AMRI Patent Rights and/or BMS Licensed Patent
Rights shall be considered Lead Party Patent Rights of BMS for the purposes of
so applying Section 14.4.1(a). No settlement of any such infringement action
brought pursuant to this Section 14.4.1(c) which restricts the scope or
adversely affects the enforceability or validity of an AMRI Patent Right may be
entered into by BMS without the prior consent of AMRI, which consent shall not
be unreasonably withheld, delayed or conditioned.

 

14.4.2      Enforcement by Non-Lead Party. If the Lead Party elects not to bring any action for infringement
described in Section 14.4.1 and so notifies the Non-Lead Party, then the 

 

Confidential Treatment Requested

 

117

 

Non-Lead
Party may bring such action at its own expense, in its own name and entirely
under its own direction and control, subject to the following, and to the
written consent of the Lead Party, such consent to not be unreasonably withheld.
The Non-Lead Party shall include in any such action a claim agreed upon by the
Parties for reasonable damages suffered by the Lead Party as a result of such
infringement in an amount to be agreed upon by the Parties (“Lead Party Infringement Damages”). The Lead Party shall
reasonably assist the Non-Lead Party (at the Non-Lead Party’s expense) in any
action or proceeding being prosecuted if so requested, including by being named
or joined as a plaintiff to such actions or proceedings if requested by the
Non-Lead Party or required by law. The Lead Party shall have the right to participate
and be represented in any such suit by its own counsel at its own expense. No
settlement of any such action or proceeding which restricts the scope, or
adversely affects the validity or enforceability, of any Lead Party Patent
Right may be entered into by the Non-Lead Party without the prior written
consent of the Lead Party, which consent shall not be unreasonably withheld,
delayed or conditioned. This Section 14.4.2 is not applicable where AMRI is the
Non-Lead Party and the Patent Right is a BMS Licensed Patent Right not claiming
a Joint Invention, unless such Patent Right is licensed to AMRI under this
Agreement with respect to a Released Compound and/or Released Product.

 

14.4.3      Withdrawal. If
either Party brings an action or proceeding under this Section 14.4 and
subsequently ceases to pursue or withdraws from such action or proceeding, it
shall promptly notify the other Party and the other Party may substitute itself
for the withdrawing Party under the terms of this Section 14.4.

 

14.4.4      Each
Party authorizes both its in-house attorneys and outside counsel that are or
may be involved in the Actions to consult and cooperate with the attorneys for
the other 

 

Confidential Treatment Requested

 

118

 

Party in preparing for, defending, or pursuing claims against Third
Parties in the Actions.

 

14.4.5      To
ensure the protection of the mental impressions, conclusions, opinions, legal
theories, and other work product of counsel, as well as to ensure the protection
of client confidences and other attorney-client privileged and work product
immune information, and all information, documents, and other materials
directly or indirectly derived therefrom (hereinafter referred to collectively
as “Privileged Information”), each Party agrees that any such Privileged
Information it or its counsel receives from the other Party or its counsel in
connection with joint efforts in the preparation for, defense, or pursuit of
claims in the Actions shall be deemed subject to the terms of this Agreement (“Agreement
Privileged Information”).

 

14.4.6      Either
Party may designate any information, documents, or materials as “Privileged
Information” by so stating in connection with any oral or telephonic
communication, and/or by so marking or labeling any documents or materials. Such
a designation is not required for protection under this Agreement.

 

14.4.7      Subject
to Section 14.4.9, each Party shall honor the other Party’s claim that any
Agreement Privileged Information is subject to applicable attorney/client
privilege, work product protection, joint defense privilege, or other privilege
or protection until such claim is withdrawn by the Party making it or is
finally determined by a court to be invalid. Such claims of privilege or
protection may not be waived by any Party to this Agreement without the prior
written consent of the Party that produced or disclosed such Agreement
Privileged Information.

 

Confidential Treatment Requested

 

119

 

14.4.8      If
any person or entity requests or demands access to Agreement Privileged
Information provided pursuant to this Agreement, by subpoena or otherwise, the
Party receiving the demand or subpoena shall immediately notify the Party who
supplied that Agreement Privileged Information. The Party receiving the demand
or subpoena shall take all steps necessary or appropriate to permit the
assertion of all applicable rights and privileges with regard to said Agreement
Privileged Information in the appropriate forums, including providing an
opportunity for the Party from whom the Agreement Privileged Information
originated to assert all applicable rights and privileges, and shall cooperate
fully in any proceedings relating to the disclosure sought.

 

14.4.9      Other
than the disclosures authorized by this Agreement to be made among the Parties
and their attorneys, the Parties shall not disclose any Agreement Privileged
Information to any other person or body without the written consent of the
other Party that produced or disclosed such Agreement Privileged Information,
or an order of a court, or the receiving Party’s determination that, it its
opinion, the Agreement Privileged Information is not entitled to remain
privileged. In the latter case (that is, where the receiving Party has made
such determination), the receiving Party shall provide an opportunity, to the
extent it will not be prejudiced in doing so, for the disclosing Party to
present its arguments in support of privilege to a court for consideration. Neither
Party shall use Agreement Privileged Information for any purpose other than for
preparing, instituting, prosecuting and/or defending the Actions.

 

14.4.10    The
Parties may, pursuant to this Agreement, exchange confidential proprietary
business or trade information or documents (“Confidential Documents”). Each
Party agrees to maintain the confidentiality of any documents so designated by
the other 

 

Confidential Treatment Requested

 

120

 

Party. If any person or entity requests or demands access to
Confidential Documents provided to one Party by the other Party pursuant to
this Agreement, by subpoena or otherwise, counsel for the Party receiving the
demand or subpoena shall immediately notify counsel for the Party who supplied
those Confidential Documents. Counsel receiving the demand or subpoena shall
cooperate with counsel for the other Party by taking all steps necessary or
appropriate to permit the assertion of all applicable rights and privileges
with regard to Confidential Documents in the appropriate forums and shall
cooperate fully in any proceeding relating to the disclosure sought.

 

14.4.11    In
the event that a Party to this Agreement ultimately becomes an adverse party to
the other Party in an Action or in any other litigation arising out of the
subject matter of an Action, it is expressly agreed that any Agreement
Privileged Information obtained exclusively pursuant to this Agreement shall
not be admissible as evidence at trial in such litigation unless it is
determined by a court that the Agreement Privileged information is not entitled
to remain privileged.

 

14.4.12    Damages In the event that either Party exercises the rights conferred in this
Section 14.4 and recovers any damages or other sums in such action, suit or
proceeding or in settlement thereof, such damages or other sums recovered shall
first be applied to all out-of-pocket costs and expenses incurred by the
Parties in connection therewith, including, without limitation, attorneys fees.
If such recovery is insufficient to cover all such costs and expenses of both
Parties, it shall be shared in proportion to the total of such costs and
expenses incurred by each Party. If after such reimbursement any funds shall
remain from such damages or other sums recovered, such funds shall (i) belong
to AMRI to the extent that they result from damages with respect to a Released
Compound and/or Released Product and (ii) belong to BMS to the extent that they
result from a Licensed Product and/or Licensed Compound that is not a Released
Compound and/or Released Product and BMS shall pay to AMRI out of 

 

Confidential Treatment Requested

 

121

 

 

such
amounts an amount equal to the lost royalties that AMRI would have received if
BMS had sold such Licensed Products and/or Licensed Compounds.

 

14.4.13    In the event that a Party joins an Action
under this Article 14 at the request of the other Party or is required to join
an action under this Article 14, and in each such case such Party joins such
Action, then the other Party shall indemnify and hold harmless such Party from
and against any judgment, damages or liabilities incurred by such Party in
connection with or as a result of such Action provided that such judgment,
damages or liabilities does not result from a claim that such Party has
indemnification obligations to the other Party pursuant to Article 12 of this
Agreement.

 

14.5         Patent
Extensions. BMS and AMRI shall each cooperate with one another and shall
use Commercially Reasonable Efforts in obtaining patent term extension
(including without limitation, any pediatric exclusivity extensions as may be
available) or supplemental protection certificates or their equivalents in any
country with respect to AMRI Patent Rights or BMS Licensed Patent Rights
Covering the Licensed Products. If elections with respect to obtaining such
patent term extensions are to be made for a particular Lead Party Patent Right,
the Lead Party for that Lead Party Patent Right shall have the right to make
the election to seek patent term extension or supplemental protection, provided that such election shall be made so as to maximize
the period of marketing exclusivity for the Licensed Product.

 

14.6         Data
Exclusivity and Orange Book Listings.

 

14.6.1      With
respect to data exclusivity periods (such as those periods listed in the FDA’s
Orange Book (including without limitation any available pediatric extensions)
or periods under national implementations of Article 10.1(a)(iii) of Directive
2001/EC/83, and all international equivalents), BMS and AMRI, as appropriate
shall use Commercially Reasonable Efforts consistent with its obligations under
applicable law to seek, maintain and enforce all such data exclusivity periods
available for the 

 

Confidential Treatment Requested

 

122

 

Licensed Products. With respect to filings in the FDA Orange Book (and
foreign equivalents) for issued patents for a Licensed Product, the appropriate
Party shall, consistent with its obligations under applicable law, list in a
timely manner and maintain all applicable AMRI Patent Rights or BMS Licensed
Patent Rights required to be filed by it, or that it is permitted to file,
under applicable law in connection with such Licensed Product. At least sixty
(60) days prior to an anticipated deadline for the filing of patent listing
information for AMRI Patent Rights or BMS Licensed Patent Rights, the Party
making such filing shall notify in writing and consult with the other Party
regarding the content of such filing. In the event of a dispute between the
Parties as to whether an AMRI Patent Right or BMS Licensed Patent Right can be
listed and/or the content of the filing for such listing, the Parties shall
take expedited steps to resolve the dispute as promptly as possible, including
seeking advice of an independent legal counsel to guide their decision. The
other Party shall provide, consistent with its obligations under applicable
law, reasonable cooperation to the Party making such listing in filing and
maintaining such Orange Book (and foreign equivalent) listings.

 

14.6.2      Patent Analysis. A Party agrees to provide reasonable
cooperation to the other Party and its selected outside counsel, when the other
Party, at its sole option and expense, elects to obtain patent analyses and
opinions to assist it in decisions in connection with the other Party’s rights
under this Agreement to obtain patent term extensions, Orange Book listings
(and any foreign equivalents thereof) and/or enforcement.

 

14.6.3      Lead Party Patent Rights. AMRI and BMS agree that during the term of
this Agreement it will not relinquish to a Third Party (a) its ownership rights
in, or (b) its right to, at its sole option, extend the term of, list in the
Orange Book (or its equivalents outside the United States) or enforce, any
patent as to which the other Party has a Lead Party Patent Right.

 

Confidential Treatment Requested

 

123

 

14.7         Notification of Patent Certification. A Party receiving any allegation of patent
invalidity, unenforceability or non-infringement of an AMRI Patent Right or a
BMS Licensed Patent Right pursuant to a Paragraph IV Patent Certification by a
Third Party filing an Abbreviated New Drug Application, an application under
§505(b)(2) or other similar patent certification by a Third Party, and/or any
foreign equivalent thereof in connection with a Licensed Compound or Licensed
Product shall notify the other Party and shall provide the other Party with
copies of all such allegations. Such notification and copies shall be provided
to the other Party within five (5) days after receipt of such certification. The
Lead Party shall have the right, but not the obligation, to contest such patent
certification and initiate and control Actions with respect thereto. In
addition, upon request by the Lead Party having such right, the other Party
shall provide reasonable assistance and cooperation (including, without
limitation, making available to such Lead Party documents possessed by the
other Party that are reasonably required by such Lead Party and making
available personnel for interviews and testimony) in any actions undertaken by
such Lead Party to contest any such patent certification.

 

14.8         Neither
BMS nor AMRI shall be required to take any action pursuant to this Article 14
that it reasonably determines in its sole judgment and discretion conflicts
with or violates any court or government order or decree that it is then
subject to or otherwise may create legal liability on the part of it.

 

15.          BANKRUPTCY.

 

All rights and licenses granted under or pursuant to this Agreement,
including amendments hereto, by each Party to the other Party are, for all
purposes of Section 365(n) of Title 11 of the U.S. Code  (“Title 11”),
licenses of rights to intellectual property as defined in Title 11. Each Party
agrees during the term of this Agreement to create and maintain current copies
or, if not amenable to copying, detailed descriptions or other appropriate
embodiments, to the 

 

Confidential Treatment Requested

 

124

 

extent feasible, of all such intellectual property. If a case is
commenced by or against either Party (the “Bankrupt Party”)
under Title 11, then, unless and until this Agreement is rejected as provided
in Title 11, the Bankrupt Party (in any capacity, including
debtor-in-possession) and its successors and assigns (including, without
limitation, a Title 11 Trustee) shall, at the election of the Bankrupt Party
made within 60 days after the commencement of the case (or, if no such election
is made, immediately upon the request of the non-Bankrupt Party) either (i)
perform all of the obligations provided in this Agreement to be performed by
the Bankrupt Party including, where applicable and without limitation,
providing to the non-Bankrupt Party portions of such intellectual property
(including embodiments thereof) held by the Bankrupt Party and such successors
and assigns or otherwise available to them or (ii) provide access or a license
to the non-Bankrupt Party to all such intellectual property (including all
embodiments thereof) held by the Bankrupt Party and such successors and assigns
or otherwise available to them. If a Title 11 case is commenced by or against
the Bankrupt Party and this Agreement is rejected as provided in Title 11 and
the non-Bankrupt Party elects to retain its rights hereunder as provided in
Title 11, then the Bankrupt Party (in any capacity, including
debtor-in-possession) and its successors and assigns (including, without
limitations, a Title 11 Trustee) shall provide access or a license to the
non-Bankrupt Party to all such intellectual property (including all embodiments
thereof) held by the Bankrupt Party and such successors and assigns or
otherwise available to them immediately upon the non-Bankrupt Party’s written
request therefor. Whenever the Bankrupt Party or any of its successors or
assigns provides access or a license to the non-Bankrupt Party to any of the
intellectual property licensed hereunder (or any embodiment thereof) pursuant
to this Article 15, the non-Bankrupt Party shall have the right to perform the
obligations of the Bankrupt Party hereunder with respect to such intellectual
property, but neither such provision nor such performance by the non-Bankrupt
Party shall release the Bankrupt Party from any such obligation or liability
for failing to perform it. All rights, powers and remedies of the non-Bankrupt
Party provided herein are in addition to and not in substitution for any and
all other 

 

Confidential Treatment Requested

 

125

 

rights, powers and remedies now or hereafter existing at law or in
equity (including, without limitation, Title 11) in the event of the
commencement of a Title 11 case by or against the Bankrupt Party. The
non-Bankrupt Party, in addition to the rights, power and remedies expressly
provided herein, shall be entitled to exercise all other such rights and powers
and resort to all other such remedies as may now or hereafter exist at law or
in equity (including, without limitation, under Title 11) in such event. The
Parties agree that they intend the foregoing non-Bankrupt Party rights to
extend to the maximum extent permitted by law and any provisions of applicable
contracts with Third Parties, including without limitation for purposes of
Title 11, (i) the right of access or a license to any intellectual property
(including all embodiments thereof) of the Bankrupt Party or any Third Party
with whom the Bankrupt Party contracts to perform an obligation of the Bankrupt
Party under this Agreement, and, in the case of the Third Party, which is
necessary for the Development, registration and manufacture of Licensed
Products and (ii) the right to contract directly with any Third Party described
in (i) in this sentence to complete the contracted work. Any intellectual
property provided pursuant to the provisions of this Article 15 shall be
subject to the licenses set forth elsewhere in this Agreement and the payment
obligations of this Agreement, which shall be deemed to be royalties for
purposes of Title 11.

 

16.          REPRESENTATIONS AND
WARRANTIES.

 

16.1         Mutual Representations and Warranties. Each Party represents
and warrants to the other as of the Effective Date that:

 

16.1.1      it
is duly organized and validly existing under the laws of its jurisdiction of
incorporation or formation, has full corporate or other power and authority to
enter into this Agreement and to carry out the provisions hereof, is duly
authorized to execute and deliver this Agreement and to perform its obligations
hereunder, and the 

 

Confidential Treatment Requested

 

126

 

person or persons executing this Agreement on its behalf has been duly
authorized to do so by all requisite corporate action.

 

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

 

16.1.3      it
has not granted any right to any Third Party that would conflict with the
rights granted to the other Party hereunder. It has (or will have at the time performance is due) maintained and
will maintain and keep in full force and effect all agreements (including
license agreements) and filings (including patent filings) necessary to perform
its obligations hereunder.

 

16.1.4      (i)
subject to Section 16.4 to its knowledge, and after making reasonable inquiry
of its internal and external attorneys, it has sufficient legal and/or
beneficial title under its intellectual property rights to grant the licenses
contained in this Agreement; and (ii) has not received any material written
communications alleging that the conduct of the Parties’ responsibilities as
currently proposed under this Agreement would violate any of the intellectual
property rights of a Third Party.

 

16.2         Representations and Warranties of AMRI. AMRI represents and
warrants that, as of the Effective Date:

 

Confidential Treatment Requested

 

127

 

16.2.1      subject
to Section 16.4 the Patent Rights listed on Exhibit 1.1A are all owned solely
or jointly by AMRI, and as of the Effective Date are the only Patent Rights
Controlled by AMRI relating to the Development, manufacture, use, exportation,
importation, offer for sale or Commercialization of Licensed Compounds or
Licensed Products.

 

16.2.2      subject
to Section 16.4 to the knowledge of AMRI, and after making reasonable inquiry
of its internal and external attorneys, there are no claims, pending suits, judgments
or settlements against AMRI, pending or threatened, seeking to invalidate or
enjoin the use of any AMRI Technology or any rights therein;

 

16.2.3      to
the knowledge of AMRI after making reasonable inquiry of its internal and
external attorneys, its scientists and its regulatory employees and
consultants, there are no investigations, inquiries or other proceedings in
respect of any AMRI Technology or the Licensed Compounds pending or threatened
by any Regulatory Authority;

 

16.2.4      to
the knowledge of AMRI after making reasonable inquiry of its internal and
external attorneys and its scientists, AMRI has made available to BMS all
material information in AMRI or its Affiliates’ possession regarding safety and
toxicity of the Licensed Compounds that are in existence as of the Effective
Date;

 

16.2.5      AMRI
has not granted any lien, security interest or other encumbrance (including any
licenses, except those granted to BMS under the Existing License Agreement)
with respect to any AMRI Technology, or permitted such a lien, security
interest or other encumbrance (including any licenses, except those granted to
BMS under the

 

Confidential Treatment Requested

 

128

 

Existing License Agreement) to attach to the AMRI Technology in each
case that are inconsistent with the rights and licenses granted to BMS under
this Agreement;

 

16.2.6      to
the knowledge of AMRI after reasonable inquiry of its internal and external
attorneys and its scientists, the AMRI Technology does not include any trade
secrets that have been misappropriated from any Third Party or obtained in
breach of any contractual obligation of AMRI to a Third Party (it being
understood that this Section 16.2.6 is not applicable to Assigned Patent
Rights);

 

16.2.7      to
the knowledge of AMRI after reasonable inquiry of its internal and external
attorneys, its scientists and its business personnel, AMRI has no knowledge of
any infringement by any Third Party of any of the AMRI Technology;

 

16.2.8      To
the knowledge of AMRI after reasonable inquiry of its internal and external
attorneys and its scientists, there are no Third Party patents or Know-How
rights included in the AMRI Technology licensed to BMS under Article 3 as of
the Effective Date;

 

16.2.9      to
the knowledge of AMRI after reasonable inquiry of its internal and external
attorneys and its scientists, the development through the Effective Date of the
Licensed Compounds has been conducted by AMRI and its Affiliates and its
independent contractors in compliance in all material respects with all
applicable laws, rules and regulations, including any permits, governmental
licenses, registrations, approvals, orders, injunctions and decrees;

 

16.2.10    it
has not entered into any written agreements or other arrangements with any
Third Parties for the manufacture and/or supply of any clinical or commercial
quantities of

 

Confidential Treatment Requested

 

129

 

any AMRI Compound or any Licensed Product containing same;

 

16.2.11    to
the knowledge of AMRI, Schedule 1.1E includes all of the Attachment A Compounds
and all Amine Neurotransmitter Reuptake-Inhibitors Controlled by AMRI and any
of its Affiliates as of the Effective Date.

 

16.2.12    as of the Effective Date, AMRI has not received
any statement or assertion that any claim in any of the granted AMRI Patent
Rights is, or may be or become rendered, invalid or unenforceable;

 

16.2.13    AMR
Technology, Inc. is wholly owned by Albany Molecular Research, Inc.: and

 

16.2.14    AMRI acknowledges and understands that BMS is
operating under the FTC Consent Order dated April 14, 2003 and the Deferred
Prosecution Agreement dated June 15, 2005.

 

16.2.15       (i) all named inventors of any
inventions included within the Patent Rights that are part of the AMRI Patent
Rights, as of the Effective Date, have assigned their entire right, title and
interest in and to such inventions and the corresponding Patent Rights to AMRI
or its Affiliates, and (ii) to AMRI’s knowledge, no person other than
those persons named as inventors on any of the patents that are part of the
AMRI Patent Rights, as of the Effective Date, is or alleges being an inventor
of the inventions claimed in such Patent (it being understood that this Section
16.2.15 is not applicable to Assigned Patent Rights).

 

For purposes of this Article 16, (i) “knowledge,” with respect to a
Party, means the actual knowledge of its president, chief executive officer or
senior vice presidents.

 

Confidential Treatment Requested

 

130

 

16.3         NO OTHER REPRESENTATIONS. THE EXPRESS REPRESENTATIONS AND
WARRANTIES STATED IN THIS AGREEMENT ARE IN LIEU OF ALL OTHER
REPRESENTATIONS AND WARRANTIES, EXPRESS, OR IMPLIED, BY EITHER PARTY, INCLUDING
WITHOUT LIMITATION, THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE.

 

16.4         The
representations and warranties made by AMRI pursuant to Sections  16.1.3, 16.1.4, 16.2.1, 16.2.2 and 16.2.15
are subject to the effect of any of * has on the AMRI Patent Rights.

 

17.          DISPUTE
RESOLUTION.

 

17.1         Disputes. The
Parties recognize that disputes as to certain matters may from time to time
arise during the term of this Agreement that relate to either Party’s rights
and/or obligations hereunder. It is the desire of the Parties to establish
procedures to facilitate the resolution of disputes arising under this
Agreement in an expedient manner by mutual cooperation and without resort to
arbitration or litigation. To accomplish this objective, the Parties agree to
follow the procedures set forth in this Article 17 if and when a dispute arises
under this Agreement. If the dispute involves a matter for which the Agreement
does not provide a casting vote (e.g. for BMS at the JRC), then either Party
may, by written notice to the other Party, have such dispute referred to their
respective executive officers designated below or their successors, for
attempted resolution by good faith negotiations within thirty (30) days after
such notice is received. Such designated officers are as follows:

 

For BMS:              CEO
or his/her direct report

 

For AMRI:            CEO

 

Confidential Treatment Requested

 

131

 

In the event the designated officers are not able to resolve such
dispute within such thirty (30) day period after receipt of such written
notice, then each Party may request, within five (5) Business Days thereafter,
that the Parties attempt non-binding mediation of any such matter for a period
not to exceed thirty (30) days. If the dispute remains unresolved after such
30-day period, or if neither Party so requests such non-binding mediation, then
any such dispute, to the extent it relates to the validity, interpretation or
construction of, or the compliance with or breach of, this Agreement, shall, at
the election of either Party, be decided in accordance with the provisions of
Section 17.2 below.

 

17.2         Arbitration.
Any dispute between the Parties relating to or arising out of the validity,
interpretation or construction of, or the compliance with or breach of, this
Agreement that cannot be resolved in accordance with Section 17.1 above,
or that is submitted to arbitration pursuant to Section 13.2.3 or Section
13.3.3, shall be resolved through binding arbitration as follows:

 

(a)           A
Party may submit such dispute to arbitration by notifying the other Party, in
writing, of such dispute. Within thirty (30) days after receipt of such notice,
the Parties shall designate in writing a single arbitrator to resolve the
dispute; provided, however, that if the Parties
cannot agree on an arbitrator within such thirty (30) day period, the
arbitrator shall be selected by the New York, NY office of the American
Arbitration Association (the “AAA”) or, if such office does not exist or
is unable to make a selection, by the office of the AAA nearest to New York
City. The arbitrator shall be an expert knowledgeable and experienced in the
law concerning the subject matter of the dispute and the subject matter of the
dispute, and shall not be an Affiliate, employee, consultant, officer, director
or stockholder of either Party, or otherwise have any current or previous
relationship with either Party or its respective Affiliates. The governing law
in Section 18.1 shall govern any such proceedings.

 

Confidential Treatment Requested

 

132

 

(b)           Disputes
regarding the validity, scope or enforceability of intellectual property rights
or to confidentiality obligations shall not be subject to arbitration pursuant
to this Section 17.2.

 

I               Within
thirty (30) days after the designation of the arbitrator, the arbitrator and
the Parties shall meet, and each Party shall provide to the arbitrator a
written summary of all disputed issues, such Party’s position on such disputed
issues and such Party’s proposed ruling on the merits of each such issue.

 

(d)           The
arbitrator shall set a date for a hearing, which shall be no later than thirty
(30) days after the submission of written proposals pursuant to this Section
17.2I, for the presentation of evidence and legal argument concerning each of
the issues identified by the Parties. The Parties shall have the right to be
represented by counsel. All arbitration shall be conducted in the English
language. Except as provided herein, the arbitration shall be governed by the
Commercial Arbitration Rules of the AAA applicable at the time of the notice of
arbitration pursuant to Section 17.2(a); provided, however,
that the Federal Rules of Evidence shall apply with regard to the admissibility
of evidence in such hearing. The arbitrator shall permit discovery in
accordance with the discovery provisions of the Federal Rules of Civil
Procedure.

 

(e)           The
arbitrator shall use his or her best efforts to rule on each disputed issue
within thirty (30) days after completion of the hearing described in Section
17.2(d). In the case of an arbitration directed to a breach of this Agreement,
the arbitration shall also determine whether the breach is curable, and the
cure for such breach. The determination of the arbitrator as to the resolution
of any dispute shall be binding and conclusive upon all Parties. All rulings of
the arbitrator shall be in writing and shall be delivered to the Parties except
to the extent that the Commercial Arbitration Rules of the AAA provide
otherwise. Nothing contained herein shall be construed to permit the arbitrator
to award punitive, exemplary or any similar damages.

 

Confidential
Treatment Requested

 

133

 

(f)            The
(i) attorneys’ fees of the Parties in any arbitration, (ii) fees of engaging
the arbitrator and (iii) costs and expenses of the arbitration shall be borne
by the Parties in a proportion determined by the arbitrator.

 

(g)           Any
arbitration pursuant to this Section 17.2 shall be conducted in New York,
New York. Any arbitration award may be entered in and enforced by a court in
accordance with Section 17.3.

 

(h)           Notwithstanding
anything in Sections 17.1 or 17.2, each Party shall have the right to seek
injunctive or other equitable relief from a court of competent jurisdiction
pursuant to Section 17.3 that may be necessary to avoid irreparable harm,
maintain the status quo or preserve the subject matter of the arbitration.

 

17.3         Jurisdiction.
Any suit, action or other proceeding relating to a dispute regarding the validity,
scope or enforceability of intellectual property rights or to confidentiality
obligations shall not be subject to the provisions of this Section 17.3 and
Section 17.4. Unless the Parties otherwise agree in writing, each Party, for
the purpose of enforcing an award under Section 17.2 or for seeking injunctive
or other equitable relief as permitted under Section 17.2(h), hereby
irrevocably submits to the exclusive jurisdiction of (i) the Supreme Court of
the State of New York, New York County (the “State Court”) and (ii) the United
States District Court for the Southern District of New York (the “District
Court”), for the purposes of any suit, action or other proceeding arising out
of this Agreement or out of any transaction contemplated hereby. Each party
agrees to first commence any such action, suit or proceeding in the District
Court or if such suit, action or other proceeding may not be brought in such
court for jurisdictional reasons, in the State Court.

 

17.4         Each
party further agrees that service of any process, summons, notice or document
by personal delivery, by registered mail, or by a recognized international
express delivery service 

 

Confidential Treatment Requested

 

134

 

to such Party’s respective address set forth above shall be effective
service of process for any action, suit or proceeding in the District Court or
the State Court with respect to any matters to which it has submitted to
jurisdiction in this Section. Each party irrevocably and unconditionally waives
any objection to the laying of venue of any action, suit or proceeding arising
out of this Agreement or the transactions contemplated hereby in the applicable
District Court or State Court, and hereby and thereby further irrevocably and
unconditionally waives and agrees not to plead or claim in any such court that
any such action, suit or proceeding brought in any such court has been brought
in an inconvenient forum and further irrevocably waives the right to object,
with respect to such action, suit or other proceeding, that such Court does not
have any jurisdiction over such Party.

 

18.          MISCELLANEOUS.

 

18.1         Governing Law. This Agreement shall be governed by,
enforced, and shall be construed in accordance with the laws of the State of
New York without regard to its conflicts of law provisions (other than section
5-1401 of the New York General Obligations Law).

 

18.2         Amendment. No amendment or modification hereof shall be
valid or binding upon the Parties unless made in writing and signed by both
Parties.

 

18.3         Assignment. This Agreement will not be assignable in part or
in whole by any Party without the prior written consent of the other Party to
the Agreement being assigned; except that any Party may assign this Agreement
to one or more of its Affiliates, provided the assigning Party remains liable
for all of the duties and obligations of the assigning Party notwithstanding
the assignment. In addition, any Party may assign this Agreement to any
successor by merger, consolidation, or sale of substantially all of its
business to which this Agreement relates provided the assigning Party remains
liable for all of the duties and obligations of the assigning Party
notwithstanding the assignment (except where the assigning Party is not a 

 

Confidential Treatment Requested

 

135

 

surviving entity), and the assignee agrees to be bound by the
obligations under this Agreement. The Agreement will be binding upon the
successors and permitted assigns of the Parties. Any assignment that is not in
accordance with this section will be null and void ab initio.

 

18.4         Independent Contractors; No Agency. Neither Party shall have
any responsibility for the hiring, firing or compensation of, or for the
provision of any employee benefits to, the other Party’s employees. Neither
Party is, nor will be deemed to be, an employee, agent, or legal representative
of the other Party for any purpose. Neither Party will be entitled to enter
into any contracts in the name of, or on behalf of the other Party, nor will a
Party be entitled to pledge the credit of the other Party in any way or hold
itself out as having authority to do so. This Agreement is negotiated on an arm’s-length
basis between the Parties and shall not constitute or be construed as a joint
venture or partnership in any of Territories. For all purposes, and
notwithstanding any other provision of this Agreement to the contrary, each
Party’s legal relationship under this Agreement to the other Party shall be
that of independent contractor.

 

18.5         Notices. Any
notice or other communication required or permitted to be given to either Party
hereto shall be in writing and shall be delivered in person, by express
delivery service, or by facsimile, provided that any notice by facsimile shall
be promptly followed by delivery in person or by express delivery service. Notices
delivered in person will be deemed effective when so delivered; notices
delivered by express delivery service will be deemed to be effective when
delivered as indicated by the records of the express delivery service or, if
receipt is refused for any reason, the date on which delivery was first
attempted; notices sent by facsimile (and appropriately followed by personal or
express delivery) will be deemed effective when delivery is confirmed by the
sending fax machine. All notices shall be sent to the Parties at the following
respective addresses:

 

Confidential Treatment Requested

 

136

 

In the case of AMRI:

 

Albany Molecular Research, Inc.

 

21 Corporate Circle

 

Albany, New York 12212-5098

 

Attn:  Chief Executive Officer

Facsimile No.:  518 867 4375

 

With a required copy to:

 

Albany Molecular Research, Inc.

 

21 Corporate Circle

 

Albany, New York 12212-5098

 

Attn: 
Director, Legal Affairs

Facsimile No.:  518 867 4375

 

In the case of BMS:

 

Bristol-Myers Squibb Company

Route 206 and Province Line Road

Princeton, New Jersey 08543-4000

Attn:  Senior Vice President, Corporate
and Business Development

Facsimile No.:  609-252-7128

 

With a required copy to:

 

Bristol-Myers Squibb Company

Route 206 and Province Line Road

Princeton, New Jersey 08543-4000

Attn:  Senior Counsel, Business
Development and Licensing

Facsimile No.:  609-252-4232

 

Either Party may change its address for communications by a notice to
the other Party in accordance with this section.

 

18.6         Waivers. No failure on the part of BMS or AMRI to exercise
and no delay in exercising any right, power, remedy or privilege under this
Agreement, or provided by statute or at law or in equity or otherwise, shall
impair, prejudice or constitute a waiver of any such right, power, remedy or
privilege or be construed as a waiver of any breach of this Agreement or as an 

 

Confidential Treatment Requested

 

137

 

acquiescence therein, nor shall any single or partial exercise of any
such right, power, remedy or privilege preclude any other or further exercise
thereof or the exercise of any other right, power, remedy or privilege.

 

18.7         Cumulative Rights. Except as otherwise expressly provided in
any of this Agreement, (a) the rights, powers and remedies under this Agreement
shall be in addition to, and not in limitation of, all rights, powers, and
remedies provided at law or in equity, or under any other agreement between the
Parties, and (b) all of such rights, powers, and remedies shall be cumulative,
and may be exercised successively or cumulatively.

 

18.8         Severability. If any term, condition, or provision of this
Agreement is held to be unenforceable for any reason, it shall, if possible, be
interpreted, to achieve the intent of the Parties to this Agreement to the
extent possible rather than voided. In any event, all other terms, conditions,
and provision of this Agreement shall be deemed valid and enforceable to the
full extent unless enforcement of this Agreement without the term, condition,
or provision held to be unenforceable would materially alter the economic
consequences of this Agreement to either Party, in which event the Parties
shall negotiate in good faith an appropriate resolution.

 

18.9         Force Majeure. Except for payment obligations, each Party
shall be excused from the performance of their obligations under this Agreement
to the extent that such performance is prevented by force majeure and the
nonperforming Party promptly provides notice of the prevention to the other
Party. Such excuse shall be continued so long as the condition constituting
force majeure continues and the nonperforming Party takes Commercially Reasonable
Efforts to remove the condition. For purposes of this Agreement, force majeure
shall be limited to the conditions beyond the control of the Parties, including
without limitation, an act of God, war, acts of terrorism, civil commotion,
intervention of any 

 

Confidential Treatment Requested

 

138

 

governmental authority, labor strike or lock-out, epidemic, failure or
negligence of a Third Party supplier, failure or default of public utilities or
common carriers, destruction of production facilities or materials by fire,
earthquake, flood, storm or similar catastrophe.

 

18.10       Headings, Captions. All headings and captions in this
Agreement are for convenience only and shall not be interpreted as having any substantive
meaning.

 

18.11       Entire Agreement. This Agreement and any and all Exhibits
referred to in this Agreement, the Warrant Termination Agreement, and the
License Termination Agreement embody the entire understanding of the Parties
with respect to the subject matter of this Agreement and shall supersede all
previous communications, representations, or understandings, either oral or
written, between the Parties relating to the subject matter of this Agreement. The confidentiality agreement entered into by
BMS and Albany Molecular Research, Inc. on April 7, 2004, as amended, (the “Confidentiality
Agreement”) is hereby terminated and all Confidential Information (as that term
is defined in the Confidentiality Agreement), including Highly Confidential
Information (as that term is defined in the Confidentiality Agrement) disclosed
to BMS by Albany Molecular Research Inc. under the Confidentiality Agreement
shall be considered Confidential Information (as that term is defined in this
Agreement) of AMRI disclosed under this Agreement and shall be subject to the
terms and conditions of this Agreement. The letter agreement entered into by
BMS and Albany Molecular Research, Inc. on or about June 8, 2005 (the “Letter
Agreement”), is hereby terminated, and all data and results generated by BMS
under the Agreement and all information included in the Report (as defined in
the Letter Agreement) shall be considered Confidential Information (as that
term is defined in this Agreement) of BMS disclosed under this Agreement and
shall be subject to the terms and conditions of this Agreement.

 

Confidential Treatment Requested

 

139

 

18.12       Execution in Counterparts; Facsimile Signatures. This
Agreement may be executed in counterparts, each of which counterparts, when so
executed and delivered, shall be deemed to be an original, and all of which
counterparts, taken together, shall constitute, with respect to this Agreement,
one and the same instrument, even if both Parties have not executed the same
counterpart. Signatures provided by facsimile transmission shall be deemed to
be original signatures.

 

18.13       Nonsolicitation of Employees. During the Combined Period,
each Party agrees that neither it nor any of its Affiliates that participates
in or is responsible for the research, discovery, identification, Development,
manufacture, or Commercialization of any Licensed Compound or Licensed Product
pursuant to this Agreement shall recruit, solicit or induce any employee of the
other Party directly involved in the activities conducted pursuant to this
Agreement to terminate his or her employment with such other Party and become
employed by or consult for such other Party, whether or not such employee is a
full-time employee of such other Party, and whether or not such employment is
pursuant to a written agreement or is at-will. For purposes of the foregoing, “recruit”,
“solicit” or “induce” shall not be deemed to mean (a) circumstances where an
employee of one Party initiates contact with the other Party or any of its
Affiliates with regard to possible employment, or (b) general solicitations of
employment not specifically targeted at employees of a Party or any of its
Affiliates, including responses to general advertisements.

 

18.14       No Debarment. In the course of the Development of Licensed
Product pursuant to this Agreement, such Party has not used, and during the
term of this Agreement will not use, any employee or consultant that is
debarred by any Regulatory Authority or, to the best of such Party’s knowledge,
is the subject of debarment proceedings by any Regulatory Authority. If either
Party learns that its employee or consultant performing on its behalf under
this Agreement has been debarred by any Regulatory Authority, or has become the
subject of debarment proceedings by any Regulatory Authority, such Party shall
so promptly notify the 

 

Confidential
Treatment Requested

 

140

 

other Party
and shall prohibit such employee or consultant from performing on its behalf
under this Agreement.

 

18.15       Further Assurance. Each Party will duly execute and
deliver, or cause to be duly executed and delivered, such further instruments
and do and cause to be done such further acts and things, including the filing
of such assignments, agreements, documents and instruments, as may be necessary
or as the other Party may reasonably request in connection with this Agreement
or to carry out more effectively the provisions and purposes, or to better
assure and confirm unto such other Party its rights and remedies under this
Agreement.

 

18.16       Affiliates. In
the event an Affiliate of a Party performs an act (or fails to act), which
performance or failure, if committed by such Party, would be a breach of this
Agreement, then such Party shall cause such Affiliate to cure such breach and
such Party shall be liable for any such breach.

 

18.17       Construction. Except where the context otherwise
requires, the use of any gender will be applicable to all genders and
the singular includes the plural and vice versa. The captions of this Agreement
are for convenience of reference only and in no way define, describe, extend or
limit the scope or intent of this Agreement or the intent of any provision
contained in this Agreement. The term “including” as used herein means
including, without limiting the generality of any description preceding such
term. References to “Section” or “Sections” are references to the numbered
sections of this Agreement, unless expressly stated otherwise. All dollars are
United States Dollars.

 

18.18       This Agreement shall only be effective if
this Agreement, the License Termination Agreement and the Warrant Termination
Agreement are entered into on the same date. In the event all of these
agreements are entered into on the same date, the License Termination Agreement
shall be deemed to have been entered into first, this Agreement shall be deemed
to have been entered into second, and the Warrant Termination Agreement shall
be deemed to have been entered into last.

 

Confidential Treatment Requested

 

141

 

[The next page is the signature page]

 

 

Confidential Treatment Requested

 

142

 

In witness whereof, duly authorized representatives of the Parties have
duly executed this Agreement on the Effective Date.

 

 

	
  BRISTOL-MYERS SQUIBB COMPANY

  	
  ALBANY MOLECULAR RESEARCH, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
  /s/ Elliott Sigal

  	
   

  	
  By

  	
  /s/ Thomas E. D’Ambra

  	
   

  
	
  Name: Elliott Sigal, M.D., Ph.D.

  	
  Name: Thomas E.
  D’Ambra, Ph.D.

  
	
  Title: Chief Scientific Officer & President, PRI

  	
  Title: Chairman, President & CEO

  
	
  Date:

  	
  October 20, 2005

  	
   

  	
  Date:

  	
  October 20, 2005

  	
   

  
								

 

 

	
  AMR TECHNOLOGY, INC.

  
	
   

  
	
   

  
	
  By

  	
  /s/ Thomas E. D’Ambra

  	
   

  
	
  Name: Thomas E. D’Ambra, Ph.D.

  
	
  Title: President

  
	
  Date:

  	
  October 20,
  2005

  	
   

  
					

 

Confidential Treatment Requested

 

143

 

EXHIBIT 1.1A

AMRI PATENT RIGHTS

 

 

PART I

THE ASSIGNED PATENT
RIGHTS

 

Title:  ARYL AND HETEROARYL SUBSTITUTED
TETRAHYDROISOQUINOLINES AND USE THEREOF TO BLOCK REUPTAKE OF NOREPINEPHRINE,
DOPAMINE AND SEROTONIN

 

	
  Country

  	
   

  	
  Patent or Patent Application Number

  
	
   

  	
   

  	
   

  
	
  Japan

  	
   

  	
  2001-534777

  
	
  South Korea

  	
   

  	
  10-2002-7005744

  
	
  Mexico

  	
   

  	
  PA/a/2002/004330

  
	
  Canada

  	
   

  	
  2,389,306

  
	
  EPC

  	
   

  	
  00976885.4

  
	
  Australia

  	
   

  	
  14597/01

  
	
  New Zealand

  	
   

  	
  519145

  
	
  Russian Federation

  	
   

  	
  2002114338

  
	
  Brazil

  	
   

  	
  PI 0015320-6

  
	
  China P.R.

  	
   

  	
  00818078.4

  
	
  India

  	
   

  	
  IN/PCT/2002/00631CHE

  
	
  United States

  	
   

  	
  6,579,885

  
	
  United States

  	
   

  	
  10/426,097

  
	
  United States

  	
   

  	
  10/917,801

  

 

Title:  4-PHENYL SUBSTITUTED TETRAHYDROISOQUINOLINES
AND USE THEREOF TO BLOCK REUPTAKE OF NOREPINEPHRINE, DOPAMINE AND SEROTONIN

 

	
  Country

  	
   

  	
  Patent or Patent Application Number

  
	
   

  	
   

  	
   

  
	
  United States

  	
   

  	
  *

  
	
  Japan

  	
   

  	
  2001-534776

  
	
  South Korea

  	
   

  	
  10-2002-7005740

  
	
  Mexico

  	
   

  	
  PA/a/2002/004329

  
	
  Canada

  	
   

  	
  2,389,300

  
	
  EPC

  	
   

  	
  00976884.7

  
	
  Australia

  	
   

  	
  14596/01

  
	
  New Zealand

  	
   

  	
  519146

  
	
  Russian Federation

  	
   

  	
  2002114337

  
	
  Brazil

  	
   

  	
  PI 0015307-9

  
	
  China P.R.

  	
   

  	
  00817789.9

  
	
  India

  	
   

  	
  IN/PCT/2002/00630CHE

  

 

Confidential Treatment Requested

 

144

 

Title:  NOVEL 4-PHENYL SUBSTITUTED
TETRAHYDROISOQUINOLINES THERAPEUTIC USE THEREOF

 

	
  Country

  	
   

  	
  Patent or Patent Application Number

  
	
   

  	
   

  	
   

  
	
  United States

  	
   

  	
  09/902,845

  
	
  Japan

  	
   

  	
  2002-509320

  
	
  South Korea

  	
   

  	
  10-2003-7000364

  
	
  Mexico

  	
   

  	
  PA/a/2003/000275

  
	
  China P.R.

  	
   

  	
  01815157.4

  
	
  Brazil

  	
   

  	
  PI 0112350-5

  
	
  Russian Federation

  	
   

  	
  2003103849

  
	
  Canada

  	
   

  	
  2,415,532

  
	
  India

  	
   

  	
  40/CHENP/2003

  
	
  EPC

  	
   

  	
  01952616.9

  
	
  Australia

  	
   

  	
  2001273349

  
	
  New Zealand

  	
   

  	
  523456

  
	
  United States

  	
   

  	
  Filed 9/21/05 as a continuation application
  of 09/902,845

  

 

 

PART II

THE ATTACHMENT A
PATENT RIGHTS

 

Title:
 ARYL- AND HETEROARYL-SUBSTITUTED
TETRAHYDROISOQUINOLINES AND USE THEREOF TO BLOCK REUPTAKE OF NOREPINEPHRINE,
DOPAMINE AND SEROTONIN

 

	
  Country

  	
   

  	
  Patent Application Number

  
	
   

  	
   

  	
   

  
	
  United
  States

  	
   

  	
  *

  
	
  PCT

  	
   

  	
  PCT/US2005/025193

  
	
  United
  States

  	
   

  	
  *

  

 

Confidential Treatment Requested

 

145

 

PART III

OTHER AMRI PATENT RIGHTS

 

Title:  NOVEL 4-PHENYL SUBSTITUTED
TETRAHYDROISOQUINOLINES AND THERAPEUTIC USE THEREOF

 

	
  Country

  	
   

  	
  Patent Application Number

  
	
   

  	
   

  	
   

  
	
  United
  States

  	
   

  	
  10/994,706

  

 

Title:  ARYL- AND HETEROARYL-SUBSTITUTED
TETRAHYDROISOQUINOLINES AND USE THEREOF TO BLOCK REUPTAKE OF NOREPINEPHRINE,
DOPAMINE AND SEROTONIN

 

	
  Country

  	
   

  	
  Patent Application Number

  
	
   

  	
   

  	
   

  
	
  United
  States

  	
   

  	
  10/994,956

  

 

Title:  4-PHENYL SUBSTITUTED TETRAHYDROISOQUINOLINES
AND USE THEREOF TO BLOCK REUPTAKE OF NOREPINEPHRINE, DOPAMINE AND SEROTONIN

 

	
  Country

  	
   

  	
  Patent Application Number

  
	
   

  	
   

  	
   

  
	
  United
  States

  	
   

  	
  10/994,688

  

 

 

Title:  ARYL- AND HETEREROARYL-SUBSTITUTED
TETRAHYDROBENZAZEPINES AND USE THEREOF TO BLOCK REUPTAKE OF NOREPINEPHRINE,
DOPAMINE AND SEROTONIN

 

	
  Country

  	
   

  	
  Patent Application Number

  
	
   

  	
   

  	
   

  
	
  United
  States

  	
   

  	
  *

  

 

Confidential Treatment Requested

 

146

 

EXHIBIT 1.1B

RESEARCH PLAN

 

*

 

 

CONFIDENTIAL TREATMENT REQUESTED

 

147

 

EXHIBIT 1.1C

ADVANCED LEAD CANDIDATE COMPOUNDS

 

The list of Advanced Lead Candidate Compounds will identify up to ten (10)
compounds that are AMRI Compounds as of the Effective Date and will be agreed
upon and signed by the Parties within thirty (30) days of the Effective Date.

 

 

CONFIDENTIAL TREATMENT REQUESTED

 

 

148

 

EXHIBIT 1.1D

FTE RATE

 

The FTE Rate for the first two years of the
Research Program shall be $* per FTE. Beginning in the third year of the
Research Program, the FTE Rate will be increased by * (*) percent per Year.

 

 

CONFIDENTIAL TREATMENT REQUESTED

 

149

 

EXHIBIT 1.1.E

 

PART I

 

ATTACHMENT A COMPOUNDS

 

Compound Code in the Existing License
Agreement

 

*

 

PART II

 

AMINE NEUROTRANSMITTER REUPTAKE-INHIBITORS
NOT

INCLUDED IN PART I ABOVE

 

AMRI Compound Code

 

*

 

 

CONFIDENTIAL TREATMENT REQUESTED

 

150

 

EXHIBIT 1.1.F

INDICATIONS

 

*

 

CONFIDENTIAL TREATMENT REQUESTED

 

151

 

EXHIBIT 1.1.G

BMS AMINE NEUROTRANSMITTER REUPTAKE
INHIBITORS

 

BMS Compound Code

 

*

 

 

CONFIDENTIAL TREATMENT REQUESTED

 

152

 

EXHIBIT 11.4.4

TRANSFER INSTRUCTIONS

 

AMRI Transfer Instructions:

 

AMR Technology, Inc.

Bank Name:  TD Banknorth, N.A.

Account Name:  AMR Technology
Inc.

Acct number:  *

ABA number:  *

 

#263232 v20 - License Agt - Bristol Myers & albany
Molecular

 

 

CONFIDENTIAL TREATMENT REQUESTED

 

153

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]