Document:

Exhibit
10.30

 

EXECUTION COPY

 

Confidential Materials omitted and filed separately with the

Securities and Exchange Commission. Asterisks denote omissions.

 

 

TRANSFER AND TERMINATION AGREEMENT

 

DATED AS OF APRIL 21, 2008

 

BY AND BETWEEN

 

TOPOTARGET A/S

 

AND

 

CURAGEN CORPORATION

 

 

 

TRANSFER AND TERMINATION AGREEMENT

 

THIS
TRANSFER AND TERMINATION AGREEMENT (this “Agreement”) is dated as of April 21,
2008 (the “Effective Date”), by and between TopoTarget A/S, a company
duly organized and existing under the laws of Denmark and having offices at
Symbion Science Park, Fruebjergvej 3, 2100 Copenhagen, Denmark (“TopoTarget”),
and CuraGen Corporation, a company duly organized and existing under the laws
of the State of Delaware and having offices at 555 Long Wharf Drive, New Haven,
Connecticut 06511, USA (“CuraGen”). As used herein, TopoTarget and
CuraGen are referred to as the “Parties”.

 

RECITALS

 

WHEREAS,
the Parties previously entered into a License and Collaboration Agreement dated
as of June 3, 2004 (as amended from time to time, the “License and
Collaboration Agreement”), pursuant to which the Parties collaborated in
connection with the research, development and commercialization of HDAC
Inhibitors (as defined herein); and

 

WHEREAS,
the Parties desire to terminate the License and Collaboration Agreement, and
further desire that TopoTarget and its Affiliates (as defined herein) be
enabled to carry on alone the research, development and commercialization of
HDAC Inhibitors, and in such connection CuraGen desires to sell, transfer,
convey and assign to TopoTarget, and TopoTarget desires to purchase from
CuraGen, all of CuraGen’s and its Affiliates’ interests in HDAC Inhibitors, and
in certain other rights and assets relating to HDAC Inhibitors and CuraGen
desires to grant and TopoTarget desires to receive certain other licenses and
rights related to HDAC Inhibitors, all upon the terms, and subject to the
conditions, set forth in this Agreement.

 

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

 

ARTICLE I.

 

DEFINITIONS

 

Section 1.1
Specific Definitions.

 

As
used in this Agreement, the following terms shall have the meanings set forth
below:

 

“Acquiror”
has the meaning set forth in Section 10.7(b).

 

“Affiliate”
means, in relation to any Person, any other Person which directly, or
indirectly through one or more intermediaries, controls, or is controlled by,
or is under common control with, that first Person. As used in this Agreement, “control”
(including, with correlative meanings, “controlled by” and “under
common control with”) shall mean possession, directly or indirectly, of (a) the
power to direct or cause the direction of the management or policies of any

 

 

other Person (whether
through ownership of securities or partnership or other ownership interests, by
contract or otherwise) or (b) at least fifty percent (50%) of the
issued share capital (whether directly or pursuant to any option, warrant or
other similar arrangement) or other applicable profit interests of any other
Person.

 

“Agreement”
has the meaning set forth in the recitals.

 

“Allocation”
has the meaning set forth in 3.5.

 

“Assignment
of Patents” means the assignment of Patents between the Parties to be
executed by the Parties on the Effective Date, substantially in the form of Exhibit B
hereto.

 

“Assumed
Liabilities” means any Liabilities of, arising out of or related to the
Transferred Assets (including post-Effective Date performance or breaches of
performance of any Contracts described on Schedule 2.1(h) (but
excluding any such Contract for which Section 2.2 applies until such time
as such Contract is assigned to TopoTarget)) with respect to all periods after
Effective Date; it being understood and agreed that “Assumed Liabilities” shall
exclude all Retained Liabilities.

 

“Authorizations”
means all investigational new drug applications, NDAs, clinical trial
exemptions and similar regulatory filings, licenses and permits owned or
controlled by CuraGen or its Affiliates and specific to the Regulatory Trials
involving HDAC Inhibitors or the Products.

 

“Business
Day” means a day other than a Saturday, Sunday or other day on which
banking institutions in Copenhagen, Denmark or New York, New York are
authorized or required by Legal Requirement to close.

 

“Combination
Product” has the meaning set forth within the definition of “Net Sales.”

 

“Common
Stock Equivalents” has the meaning set forth in Section 9.6.

 

“Competing
Product” has the meaning set forth in Section 10.7(a).

 

“Confidential
Information” means all confidential data, Know-How and other information
related to HDAC Inhibitors and/or the Products, including all regulatory
approvals and related filings, applications and data, the content of any
unpublished patent applications, manufacturing and technical data, operating
methods and procedures, marketing, distribution and sales methods and systems,
sales figures, clinical trial data and other business information relating
thereto, either marked as confidential or that by its nature or manner of
disclosure would reasonably be understood in the industry to be confidential,
and whether disclosed or maintained in tangible, electronic or other form.

 

“Contract”
means any contract, agreement, or other arrangement to which CuraGen or any of
its Affiliates is a party as of the Effective Date, including any license
agreement, supply agreement and agreement with any contract research and
testing organization, and which is solely (a) related to HDAC Inhibitors
or the Products, (b) related to the Regulatory Trials or (c) related
to the development, registration or commercialization of HDAC Inhibitors or the
Products, including clinical trials.

 

2

 

“Control”
means, with respect to any intellectual property right, the possession (whether
by ownership or license) by a Party or an Affiliate of a Party of the ability
to transfer such right or to grant a sublicense under such right without
violating the terms of any agreement with any Third Party. Otherwise, “Control”
shall have the meaning set forth within the definition of “Affiliate.”

 

“Covered
Patents” has the meaning set forth in Section 3.1(c).

 

“CuraGen”
has the meaning set forth in the recitals.

 

“CuraGen
Collaboration Technology” means, to the extent Controlled by CuraGen or any
of its Affiliates as of the Effective Date, (a) all Inventions and
Know-How first conceived and/or reduced to practice by employees of CuraGen or
of any Third Party working on behalf of or for the benefit of CuraGen and/or in
whose Inventions and Know-How CuraGen and its Affiliates shall have secured
rights, in each case in the course of or in connection with the Research
Program or with the product candidate having the designation PX106491, as well
as any and all Patents and other intellectual property rights covering the
same; and (b) all CuraGen Licensed Technology (as defined in the License
and Collaboration Agreement).

 

“CuraGen
Material Adverse Effect” has the meaning set forth in Section 8.11.

 

“Effective
Date” has the meaning set forth in the introductory paragraph hereof.

 

“Encumbrance”
means any mortgage or deed of trust, charge, pledge, lien (statutory or
otherwise), privilege, security interest, hypothecation, assignment for
security, claim, option, license, sublicense, covenant not to sue, or
preference or priority or other encumbrance upon or with respect to any
property of any kind.

 

“Exchange
Act” means the U.S. Securities and Exchange Act of 1934, as amended.

 

“FDA”
means the United States Food and Drug Administration and any successor agency
thereto.

 

“Field”
has the meaning set forth in Section 3.1(a).

 

“First
Commercial Sale” means, with respect to any Product, the first sale for use
or consumption by the general public of such Product in an country in the world
after all required marketing and pricing approvals have been granted, or
otherwise permitted, by the governing health authority of such country; it
being understood and agreed that “First Commercial Sale” shall not include the
sale of any Product for use in clinical trials or for compassionate use prior
to the approval of an NDA or other comparable regulatory approval.

 

“GAAP”
means United States generally accepted accounting principles.

 

3

 

“Governmental
Authority” means any court, tribunal, arbitrator, agency, commission,
authority, department, official or other instrumentality of any country
(including any political subdivision thereof) or association of countries or
any quasi-governmental body exercising any regulatory, governmental or
administrative authority, including any Regulatory Authority.

 

“HDAC
Inhibitor” means any small molecule that inhibits the activity of histone deacetylase.

 

“Improvements”
has the meaning set forth in Section 3.1(b).

 

“Indemnified
Party” has the meaning set forth in Section 12.4(a).

 

“Indemnifying
Party” has the meaning set forth in Section 12.4(a).

 

“Initial
Period” has the meaning set forth in Section 3.4(b).

 

“Inventions”
means any new or useful method, process, manufacture, compound or composition
of matter, whether or not patentable or copyrightable, or any improvement
thereof.

 

“Joint
Collaboration Technology” means, to the extent Controlled by CuraGen or any
of its Affiliates as of the Effective Date, all Inventions and Know-How first
conceived jointly and/or reduced to practice jointly by one or more employees
of CuraGen or its Affiliates (or of any Third Party working on behalf of or for
the benefit of CuraGen or its Affiliates and/or in whose Inventions and
Know-How CuraGen or its Affiliates otherwise has rights) and one or more
employees of TopoTarget or its Affiliates (or of any Third Party working on
behalf of or for the benefit of TopoTarget or its Affiliates and/or in whose
Inventions and Know-How TopoTarget or its Affiliates otherwise has rights), or
first conceived by such employees of one Party and reduced to practice by such
employees of the other Party, in all cases in the course of or in connection
with the Research Program or with the product candidate having the designation
PX106491, as well as any and all Patents and other intellectual property rights
covering the same, including WO06/082428, “Combination therapies using HDAC inhibitors”
and WO07/054719, “Histone deacetylase (HDAC) inhibitors (PXD101) for the
treatment of cancer alone or in combination with chemotherapeutic agent”. It is
understood, however, that no compounds in TopoTarget’s library of HDAC
Inhibitors at the outset of the Research Program were brought within the “Joint
Collaboration Technology” by virtue of CuraGen and TopoTarget employees or
Third Parties working on their behalf jointly reducing to practice or
demonstrating utility of such compound in any medical or clinical application
or indication

 

“Know-How”
means any and all information, ideas, inventions, data, files, plans, operating
records, instructions, processes, formulas, formulation information,
manufacturing technology, validations, package specifications, chemical
specifications, chemical and finished goods analytical test methods, stability
data, all clinical data, product specifications, information with respect to
expert opinion, drawings, formulae, reports and information (whether or not
patented or patentable), technology, techniques, and other intellectual
property, in any form including paper, electronically stored data, magnetic
media, film and microfilm.

 

4

 

“Legal
Requirement” means any statute, law, ordinance, regulation, order or rule of
any Governmental Authority.

 

“Liability”
means any and all debt, liabilities and obligations, due or owing to Third
Parties, whether accrued or fixed, absolute or contingent, matured or unmatured
or determined or determinable, including those arising under any Legal
Requirement, legal proceeding or action of any Governmental Authority and those
arising under any contract, agreement, arrangement, commitment or undertaking.

 

“License
and Collaboration Agreement” has the meaning set forth in the recitals.

 

“Licensed
CuraGen Rights” means (a) all rights of CuraGen and its Affiliates to
Product Technical Information; (b) all Patents Controlled by CuraGen or
its Affiliates which contain any claims which relate to HDAC Inhibitors or the
Products; (c) all rights of CuraGen and its Affiliates in and to the
CuraGen Collaboration Technology and Joint Collaboration Technology; in each
case that are Controlled by CuraGen or any of its Affiliates as of the
Effective Date and that are not included in the Transferred Assets.

 

“Litigation
Conditions” has the meaning set forth in Section 12.4(a).

 

“Losses”
has the meaning set forth in Section 12.2(a).

 

“NDA”
means (s) in the United States, a new drug application as defined in the U.S.
Federal Food, Drug and Cosmetic Act of 1938, as amended, and applicable
regulations promulgated thereunder and submitted to the FDA to obtain
regulatory approval of a product in the United States, and all subsequent
amendments and supplements to such NDA, and (b) in regulatory
jurisdictions outside the United States, such submissions filed with the
applicable Regulatory Authority in such regulatory jurisdiction to obtain
Regulatory Approval of such product in such regulatory jurisdiction, and any
amendments and supplements thereto.

 

“Net
Sales” means, with respect to any Product, the net cash amount received
from Third Parties by TopoTarget or its Affiliates (which in no case includes
any Sublicensee), as the case may be, for such Product, commencing with the
First Commercial Sale of such Product; it being understood that invoiced
amounts may include deductions for: (a) trade, quantity and/or cash
discounts actually granted to the extent consistently applied by TopoTarget to
its products; (b) credits, refunds and allowances (including, without
limitation, cash, credit and free goods allowances) actually allowed or given
for chargebacks but only to the extent it is a sales related deduction which is
accounted for within TopoTarget on a product-by-product basis, (c) retroactive
price reductions, billing errors and rebates (including, without limitation,
government-mandated and managed healthcare negotiated rebates), credits and
refunds for Product that is rejected, spoiled, damaged, outdated or returned,
to the extent each was actually allowed or given and as consistently applied by
TopoTarget to its products; (d) freight, postage, shipping, insurance and
other transportation costs actually incurred in transporting Product to a Third
Party; and (e) Taxes, tariffs, customs duties, surcharges and other
governmental charges incurred in connection with the sale, exportation or
importation of Product. The books and records of TopoTarget or its Affiliates,
as the case may be, shall be maintained in accordance with International
Financial Reporting Standards. In the event that TopoTarget, or its Affiliates

 

5

 

sell any Product which
contains any pharmaceutically active agents in addition to an HDAC Inhibitor
(any such pharmaceutical product, a “Combination Product”): (i) if
there is a stand alone Product on the market in a given country which
corresponds to the HDAC Inhibitor within the Combination Product, the
adjustment to Net Sales for such country shall equal the Net Sales of the
Combination Product multiplied by a fraction, the numerator of which is the
current price of the Product and the denominator of which is the reasonable
fair market value, in the aggregate, of all pharmaceutically active agents
contained in the Combination Product in each case in the same country as the
country in which the Combination Product is to be sold, and (ii) if no
such Product is on the market in a given country, Net Sales for such country
shall equal Net Sales of the Combination Product multiplied by a fraction, the
numerator of which is the reasonable fair market value of the Product and the
denominator of which is the reasonable fair market value, in the aggregate, of
all pharmaceutically active agents contained in the Combination Product. If
CuraGen objects to any calculation referred to in the immediately preceding
sentence and the Parties cannot agree on the “fair market value” of either the
Product or any of the pharmaceutically active agents within ninety
(90) days following notice of any objection, the Parties shall retain a
panel of three valuation experts to make such a determination, the costs for
which shall be shared equally by the Parties. Each Party shall select one
expert, who shall not be an employee of either and who shall have at least at
least a university degree in economics and five (5) years experience in
conducting such valuations. The two experts shall promptly select a mutually
agreeable third expert with like qualifications. The experts shall render a
written opinion binding on the Parties for the relevant countries within thirty
(30) days, which shall be binding, with no right of appeal, on both
Parties. For the avoidance of doubt, the disposition of Product for, or the use
of Product in, pre-clinical or clinical (Phase I — III) trials or other
market-focused (Phase IV or V) trials or free samples shall not result in any
Net Sales, unless TopoTarget, its Affiliate or Sublicensee is permitted to
receive payment for Product used in clinical trials which includes a reasonable
profit.

 

“Open
Payables” has the meaning set forth in Section 3.3(c).

 

“Parties”
has the meaning set forth in the preamble.

 

“Patents”
means all patents, patent applications and statutory invention registrations
(which, for the purposes of this Agreement, shall be deemed to include
provisional applications, invention disclosures, certificates of invention and
applications for certificates of invention), including reissues, divisions,
continuations, continuations-in-part, supplementary protection certificates,
extensions and reexaminations thereof, all inventions disclosed therein, all
rights therein provided by international treaties and conventions, including
priority patents, and all rights to obtain and file for patents and
registrations thereto.

 

“Person”
means any individual, firm, corporation, partnership, limited liability
company, association, trust, unincorporated organization, joint venture or
other entity.

 

“Prepaid
Expenses” has the meaning set forth in Section 3.3(a).

 

“Proceeding”
has the meaning set forth in Section 13.7.

 

6

 

“Product”
means any pharmaceutical product containing an HDAC Inhibitor with respect to
which CuraGen or any of its Affiliates conducted, sponsored or directed research
or development prior to the date hereof, including the First Product (commonly
referred to as PXD101 (belinostat)), all Future Products and all Backup
Products (each as defined in the License and Collaboration Agreement).

 

“Product
Technical Information” means all biological, chemical, pharmacological,
toxicological, pharmaceutical, physical and analytical, clinical, safety and
quality control data, information or Know-How (including all files, reports,
plans and operating records, including extracts thereof, in any form to the
extent transmissible, including paper, electronically stored data, magnetic
media, film or microfilm) which are under the Control of CuraGen or any
Affiliate as of the Effective Date and that relate to the development,
registration or manufacturing of HDAC Inhibitors or Products, including all
data, information and Know-How related to the Regulatory Trials (including
reports and case report forms), all correspondence with the FDA or any other
Regulatory Authority relating to the development, registration or manufacturing
of HDAC Inhibitors or Products and all other documents pertaining to
communications with the FDA or any other Regulatory Authority relating to the
development, registration or manufacturing of HDAC Inhibitors or Products
(including minutes or summaries of any FDA or any other Regulatory Authority
and communications regarding HDAC Inhibitors and Products and applications for
any regulatory approval of HDAC Inhibitors and Products).

 

“Public
Reports” has the meaning set forth in Section 9.7.

 

“Purchase
Price” has the meaning set forth in Section 3.4(a).

 

“Regulatory
Authority” means any Governmental Authority with responsibility for
granting any licenses or approvals necessary for the manufacturing, marketing
and sale of pharmaceutical products, including any drug regulatory authority,
and where the context admits any ethics committee or any equivalent review
board.

 

“Regulatory
Trials” means each of the clinical and other regulatory trials initiated,
sponsored, conducted or funded by CuraGen or any of its Affiliates with respect
to HDAC Inhibitors or the Products.

 

“Released
Claims” has the meaning set forth in Section 10.8.

 

“Released
Parties” has the meaning set forth in Section 10.8.

 

“Research
Program” means the research program that was at any time conducted by the
Parties and their Affiliates pursuant to Section 5 of the License and
Collaboration Agreement.

 

“Restricted
Period” has the meaning set forth in Section 10.7(a).

 

“Retained
Liabilities” means (a) any Liabilities (including any Liabilities
related to performance or breaches of performance of any Contracts on or prior
to the Effective Date) of, arising out of or related to the Transferred Assets
or the Licensed CuraGen Rights with respect to all periods on or prior to the
Effective Date and, in the case of all Contracts (including so-called CRO
agreements), all Liabilities involving any treatment or monitoring or
administrative activity

 

7

 

as and to the extent any
such treatment or monitoring or administrative activity relates to any patient
activity on or prior to the Effective Date, (b) any Liabilities of CuraGen
and its Affiliates associated with any assets or rights not transferred or
licensed hereunder, (c) all Liabilities relating to all Regulatory Trials
arising prior to the Effective Date, including claims arising out of or
resulting from a claim by a Third Party for death or bodily injury arising
(whether before, on or after the Effective Date) in connection with the
development, testing, manufacture or commercialization of Products prior to the
Effective Date, and (d) Taxes (other than VAT) of CuraGen and its
Affiliates with respect to all periods prior to the Effective Date.

 

“SEC”
means the U.S. Securities and Exchange Commission.

 

“SEC
Documents” means all forms, documents, certifications, statements and
reports, including any amendments thereto filed, or required to be filed, with
the SEC.

 

“Securities
Act” means the U.S. Securities Act of 1933, as amended.

 

“Sublicense”
has the meaning set forth within the definition of “Sublicensee.”

 

“Sublicensee”
means any licensee of TopoTarget who (a) is not an Affiliate and (b) has
obtained from TopoTarget a license of intellectual property rights Controlled
by TopoTarget (a “Sublicense”) to make, have made, use, sell and import
the Product in any country in the world.

 

“Sublicense
Income” means any and all royalties and all upfront, event and performance
milestone payments and other payments received by TopoTarget from any
Sublicensee pursuant to any Sublicense in connection with the sale of Products
anywhere in the world; it being understood and agreed that “Sublicense
Income” specifically excludes the following payments: (a) funding or
reimbursement for research activities performed by TopoTarget after the
effective date of the respective Sublicense; (b) payments or
reimbursements for materials made for or transferred to a Sublicensee after the
effective date of the respective Sublicense; (c) payments or reimbursements
for other expenses incurred by TopoTarget on behalf of and for the benefit of a
Sublicensee after the effective date of the respective sublicense; (d) reimbursement
for TopoTarget’s patent prosecution expenses incurred before or after the
effective date of the Sublicense; (e) payments for any debt or equity
securities or loan instruments of TopoTarget (based upon then-prevailing
capital markets circumstances); and (f) payments or reimbursements for the
cost of clinical trials conducted by TopoTarget on behalf of Sublicensee after
the effective date of the Sublicense, in each of cases (a) through (f) above
only to the extent such payments or reimbursements do not exceed the fair
market value of the applicable materials, services or instruments with respect
to which such payments or reimbursements were made.

 

“Tax”
or “Taxes” means any taxes or similar assessments imposed by a federal,
state, local or foreign Governmental Authority anywhere in the world, whether
direct or indirect, including income, franchise, trade, capital, withholding,
payroll, unemployment insurance, social security, gross receipts, sales and
use, value added taxes (“VAT”), excise, real property, personal
property, real estate and property transfer taxes, statutory, governmental,
state, provincial, local governmental or municipal impositions, duties,
contributions, rates and levies, together with all interest, penalties and
additions imposed with respect to any such taxes.

 

8

 

“Termination”
shall refer to the termination of the License and Collaboration Agreement,
together with survival of rights, as provided in Section 2.4 below.

 

“Third
Party” means any Person other than the Parties to this Agreement and their
respective Affiliates.

 

“Third
Party Claim” has the meaning set forth in Section 12.4(a).

 

“TopoTarget”
has the meaning set forth in the introductory paragraph hereof.

 

“TopoTarget
Material Adverse Effect” has the meaning set forth in Section 9.8.

 

“TopoTarget
Shares” means common shares of TopoTarget, with a nominal value of 1.00
Danish krone per share.

 

“Transaction
Document” means each agreement, document, certificate or instrument being
executed pursuant to this Agreement.

 

“Transferred
Assets” has the meaning set forth in Section 2.1.

 

“Transition
Services Agreement” means the transition services agreement between the
Parties to be executed on the Effective Date, substantially in the form of Exhibit A
hereto.

 

“VAT”
has the meaning set forth within the definition of “Taxes.”

 

Section 1.2
Interpretation and Rules of Construction. In this Agreement, except
to the extent otherwise provided or that the context otherwise requires:

 

(a) except
where expressly provided otherwise, when a reference is made in this Agreement
to an Article, Section, Exhibit or Schedule, such reference is to an Article or
Section of, or an Exhibit or Schedule to, this Agreement;

 

(b) the
headings for this Agreement are for reference purposes only and do not affect
in any way the meaning or interpretation of this Agreement;

 

(c) whenever
the words “include,” “includes” or “including” are used in this Agreement, they
are deemed to be followed by the words “without limitation;”

 

(d) the
words “hereof,” “herein” and “hereunder” and words of similar import, when used
in this Agreement, refer to this Agreement as a whole and not to any particular
provision of this Agreement;

 

(e) all
terms defined in this Agreement have the defined meanings when used in any
certificate or other document made or delivered pursuant hereto, unless
otherwise defined therein;

 

9

 

(f) the
definitions contained in this Agreement are applicable to the singular as well
as the plural forms of such terms;

 

(g) references
to a Person are also to its successors and permitted assigns; and

 

(h) the
use of “or” is not intended to be exclusive unless expressly indicated
otherwise.

 

ARTICLE II.

 

PURCHASE AND SALE OF ASSETS AND TERMINATION OF THE
LICENSE AND

COLLABORATION AGREEMENT

 

Section 2.1
Purchase and Sale of Assets. Upon the terms and subject to the
conditions set forth herein, on the Effective Date, CuraGen shall (and shall
cause its Affiliates to) sell, assign, transfer, convey and deliver to
TopoTarget or its designees (as specified by TopoTarget) all of CuraGen’s and
each of its Affiliate’s right, title and interest to the assets specified below
(the “Transferred Assets”), free and clear of all Encumbrances, and
TopoTarget shall purchase from CuraGen and its Affiliates all of their
respective right, title and interest in and to the Transferred Assets:

 

(a) All
CuraGen Collaboration Technology exclusively related to HDAC Inhibitors or the
Products;

 

(b) All
Joint Collaboration Technology exclusively related to HDAC Inhibitors or the
Products, including patent applications WO06/082428, “Combination therapies
using HDAC inhibitors” and WO07/054719, “Histone deacetylase (HDAC) inhibitors
(PXD101);

 

(c) All
Product Technical Information exclusively related to HDAC Inhibitors or the
Products;

 

(d) the
Authorizations, including those described on Schedule 2.1(d) hereto;

 

(e) all
tangible embodiments of Products containing HDAC Inhibitors Controlled by
CuraGen or its Affiliates as of the Effective Date, including those described
on Schedule 2.1(e) hereto;

 

(f) all
documentation and data relating to the Regulatory Trials, including all case
reports forms, safety databases, interim reports and final study reports;

 

(g) all
laboratory notebooks in the Control of CuraGen and its Affiliates relating to
Patents contained in the CuraGen Collaboration Technology or the Joint
Collaboration Technology listed in clauses (a) and (b) above, and all
patent prosecution files (including all correspondence with prosecution counsel
and patent offices) relating to such Patents; and

 

(h) subject
to the retention of the Retained Liabilities as provided in Section 3.5
below, the Contracts described on Schedule 2.1(h) hereto.

 

10

 

Section 2.2
Consents.

 

(a) There
shall be excluded from the Transferred Assets contemplated by this Agreement,
any agreement, license or asset and right, tangible or intangible, which is not
assignable or transferable without the consent of any Third Person to the
extent that such consent shall not have been obtained prior to the Effective
Date; provided, however, that CuraGen shall have the
continuing obligation after the Effective Date to use commercially reasonable
efforts to obtain all necessary consents to the assignment or license thereof; provided further,
however, neither CuraGen nor any of its Affiliates shall be required to
commence any litigation or offer or grant any accommodation, financial or
otherwise, and that, upon obtaining the requisite Third Party consents thereto,
such agreement, license, asset or right, if otherwise includable in the
Transferred Assets, shall be transferred and assigned to TopoTarget hereunder.

 

(b) With
respect to any agreement, license, asset or right, tangible or intangible, that
is not assigned to TopoTarget at the Effective Date by reason of this Section 2.2,
after the Effective Date and until any requisite consent is obtained and the
foregoing sold and assigned to TopoTarget, the Parties hereto shall cooperate
with each other, upon written request, in endeavoring to obtain for TopoTarget,
at no out-of-pocket cost to CuraGen or its Affiliates (unless such failure to
obtain such consent from any Third Party involves a breach of any of CuraGen’s
representations, warranties, covenants or agreements hereunder) an arrangement
which TopoTarget reasonably shall desire designed to provide for TopoTarget the
same net benefits thereof as if such agreement, license, asset or right were
included in the Transferred Assets.

 

Section 2.3
Excluded Assets.

 

Notwithstanding
anything to the contrary herein, Transferred Assets shall exclude:

 

(a) the
“CuraGen” name and logo in any form; and

 

(b) general
books of account and books of original entry that comprise any CuraGen’s or its
Affiliate’s permanent accounting, financial or Tax records.

 

Section 2.4
Termination of Rights Under the License and Collaboration Agreement.

 

(a) Upon
the terms and conditions set forth herein, at the Effective Date: TopoTarget
and CuraGen shall irrevocably terminate (and shall cause their respective
Affiliates to terminate irrevocably), and do hereby terminate effective as of
the Effective Date, the License and Collaboration Agreement so that the Parties
effective as of the Effective Date shall have no obligation to or rights from
one another pursuant to the License and Collaboration Agreement and such that
the License and Collaboration Agreement will have no further force or effect; provided,
however, that Sections 5.6 (solely with respect to the final sentence),
5.7, 6.2, 8.9, 12, 14, 17.12, 17.14, 17.15, 17.16 and 17.17 of the License and
Collaboration Agreement, together with any definitions referenced by such
Sections shall continue and survive without limitation.

 

(b) The
Parties understand and agree that, effective as of Effective Date, and
notwithstanding anything to the contrary in the License and Collaboration
Agreement, all

 

11

 

 

 

licenses and other rights
granted to CuraGen under the License and Collaboration Agreement, and all
sublicenses and other rights granted by CuraGen to any Affiliate or Third Party
under or with respect to such licenses and other rights, shall be terminated
and CuraGen will have no further right or obligation to develop or
commercialize any Products, and TopoTarget will be solely responsible for the
development and commercialization of Products from and after the Effective Date
in its sole discretion. Within thirty (30) days following the Effective
Date, as part of the services to be provided by CuraGen pursuant to the
Transition Services Agreement, CuraGen shall return to TopoTarget all relevant
records and materials, whether in written or electronic form, in CuraGen’s
possession or control containing Confidential Information (as defined in the
Collaboration and License Agreement) of TopoTarget or its Affiliates,
TopoTarget Collaboration Technology or TopoTarget Licensed Technology (each as
defined in the Collaboration and License Agreement and to the extent not
already delivered pursuant to Section 2.1 above). The Parties expressly
acknowledge and agree that the termination of the License and Collaboration
Agreement contained in this Section 2.4 is by mutual agreement of the
Parties and that, notwithstanding anything to the contrary in the Collaboration
and License Agreement, all effects and consequences of such termination are set
forth in this Agreement.

 

ARTICLE III.

 

LICENSE TO TOPOTARGET; TRANSITION SERVICES; PURCHASE
PRICE

 

Section 3.1
Licenses to TopoTarget.

 

Subject
to the terms and conditions of this Agreement and only effective as of the
Effective Date:

 

(a) CuraGen
hereby grants to TopoTarget a fully paid-up, royalty-free (except as set forth
in Section 3.4), irrevocable, perpetual, transferable, exclusive
(including as to CuraGen and its Affiliates) and worldwide license, with right
of sublicense, under the Licensed CuraGen Rights to develop, make, have made,
use, offer to sell, sell, import, export and otherwise exploit and
commercialize HDAC Inhibitors and Products (the “Field”).

 

(b) TopoTarget
shall solely own all developments, Inventions and improvements relating to the
Licensed CuraGen Rights that are conceived of or authored by or on behalf of
TopoTarget, its licensees and their respective Affiliates on and after
Effective Date, and all intellectual property rights relating thereto (the “Improvements”).

 

(c) CuraGen
agrees to cooperate with all reasonable requests of TopoTarget in the filing and
prosecution of any Patents relating to or arising out of the CuraGen
Collaboration Technology or Joint Collaboration Technology assigned to
TopoTarget pursuant to Section 2.1 (the “Covered Patents”),
including making its records and personnel available on a reasonable basis.
TopoTarget, at its sole discretion and cost, shall have the right to prepare,
file, prosecute, file and maintain the Covered Patents, and to defend and to
institute all claims, causes of actions and other legal proceedings with respect
to the Covered Patents and to recover all damages in connection therewith.

 

12

 

(d) CuraGen
shall keep TopoTarget apprised of the continuing prosecution, maintenance and
defense of the Licensed CuraGen Rights. Payment of all fees and costs relating
to the filing, prosecution, maintenance and defense of the Licensed CuraGen
Rights shall be the sole responsibility of CuraGen. CuraGen promptly shall
provide to TopoTarget copies of all patent-related documents that it files with
any patent office with respect to the Licensed CuraGen Rights. In the event
CuraGen decides not to continue prosecution of a patent application comprised
within the Licensed CuraGen Rights to issuance, or to maintain any United States
or foreign patent comprised within the Licensed CuraGen Rights, or to defend
any Licensed CuraGen Rights, CuraGen timely shall notify TopoTarget in writing
of such decision so that TopoTarget may continue said prosecution, maintenance
or defense of such Licensed CuraGen Rights at its own expense. Prior to
undertaking such prosecution, maintenance or defense, TopoTarget shall consult
with CuraGen in good faith to discuss any issues or concerns identified by
CuraGen with respect to such prosecution, maintenance or defense by TopoTarget.

 

(e) TopoTarget
shall have the initial right, but not the obligation, to prosecute, at its own
expense and utilizing counsel of its choice, any infringement of the Licensed
CuraGen Rights within the Field. TopoTarget shall notify CuraGen within one
hundred and eighty (180) days after learning of such infringement whether
it will elect to undertake the prosecution of such infringement. Prior to
undertaking such prosecution, TopoTarget shall consult with CuraGen in good faith
to discuss any issues or concerns CuraGen may have with respect to such
prosecution. If TopoTarget elects to undertake such prosecution, CuraGen agrees
that TopoTarget may (i) bring any related suit, action or proceeding in
the name of CuraGen and, (ii) if necessary or desirable in TopoTarget’s
reasonable discretion, join CuraGen as a party to such suit, action or
proceeding. In the event that TopoTarget elects not to enforce the Licensed
CuraGen Rights within the Field as contemplated above, then CuraGen shall have
the second right, but not the obligation, to prosecute, at its own expense and
utilizing counsel of its choice, any infringement of the Licensed CuraGen
Rights within the Field. Unless the Parties otherwise agree, the total cost of
any such action commenced solely by one Party, shall be borne by such Party.
Except as the Parties may otherwise agree in writing, any damages or settlement
payments resulting from such any action commenced as set forth above, whether
in an out-of-court settlement or through legal adjudication of such action,
shall be retained by the Party bringing the prosecution of such action, provided that
any damages or settlement payouts received by TopoTarget or its Affiliates
shall be deemed to constitute Net Sales for purposes of Section 3.4(c). In
any infringement action either Party may institute pursuant to this Section 3.1(e),
the other Party hereto shall, at the request of the Party initiating such
action, cooperate in all respects and, to the extent possible, have its
employees testify when requested and make available relevant records, papers,
information, samples, specimens, and the like. The Party making such request
shall reimburse the other Party for its reasonable costs and expenses incurred
in providing such cooperation.

 

Section 3.2
Transition Services Agreement. On the Effective Date, the Parties shall
execute the Transition Services Agreement, which Transition Services Agreement
shall be effective as of the Effective Date in accordance with the terms
thereof.

 

13

 

Section 3.3
Reimbursement of Prepaid Amounts; Retained Liabilities.

 

(a) Attached
as Schedule 3.3(a) is a list of prepaid amounts previously paid by
CuraGen in cash (a) for services not yet performed prior to the Effective
Date from any of CuraGen’s subcontractors related to CuraGen’s development
activities with respect to the Products and (b) to TopoTarget or any Third
Party for supply of any Product not yet delivered to clinics on or prior to the
Effective Date (all such amounts, the “Prepaid Expenses”).

 

(b) [Intentionally Omitted]

 

(c) Attached
as Schedule 3.3(c) is a list of estimated amounts due as of the
date hereof to TopoTarget or any Third Party for the development or supply of
any HDAC Inhibitor or Product on or prior to the Effective Date (all such
amounts, the “Open Payables”).

 

(d) On
or before April 25, 2008, CuraGen shall pay to TopoTarget a non-refundable
cash advance in respect of Open Payables in an amount equal to [**] United
States Dollars ($[**]). For a period of one hundred eighty (180) days
following the Effective Date, the Parties shall cooperate with each other to
provide and review documentation regarding the Prepaid Expenses and Open
Payables and resolve any questions relating to the accounting thereof. On the
one hundred eightieth (180th) day after the Effective Date, if Open
Payables designated as payable by or to TopoTarget are greater than Prepaid
Expenses by an amount greater than the amount advanced in accordance with the
first sentence of this Section 3.3(d), then CuraGen shall pay to
TopoTarget the amount above such advance; it being understood and agreed that
CuraGen shall pay in full all Open Payables owed to Third Parties for the
development or supply of any HDAC Inhibitor or Product that is released for
clinical use on or prior to the Effective Date (including in the manner set
forth on Exhibit C) and for which TopoTarget obtains a bona fide invoice
or other comparable certification. CuraGen shall pay, be solely responsible
for, retain and hold TopoTarget harmless from all Retained Liabilities.

 

Section 3.4
Purchase Price.

 

(a) Subject
to the terms and conditions of this Agreement, the aggregate purchase price
(the “Purchase Price”) for the Transferred Assets and Licensed CuraGen Rights
(and which shall also include payment for the Termination as provided for
herein) shall be as follows: (i) Twenty Six Million United States Dollars
($26,000,000), together with such adjustments calculated in accordance with Section 3.3(d) above,
which total adjusted amount shall be payable by TopoTarget to CuraGen on the
Effective Date in cash by wire transfer of immediately available funds to such
account or accounts designated by CuraGen prior to the Effective Date (the “Cash
Purchase Price”), (ii) an obligation to deliver 5,000,000 TopoTarget
Shares, which shares shall be subscribed to by CuraGen and issued by TopoTarget
to CuraGen as soon as practicable after the Effective Date but in no event
later than thirty (30) days following the Effective Date and (c) the
contingent payment obligations, in an amount not to exceed Six Million United
States Dollars ($6,000,000) in the aggregate, pursuant to Section 3.4(c) and
Section 3.4(d) below.

 

(b) TopoTarget
shall use commercially reasonable efforts to, and shall request that its
financial advisors use commercially reasonable efforts to, during the period
commencing

 

14

 

on the Effective Date and
ending on July 7, 2008 (the “Initial Period”), assist CuraGen, at
CuraGen’s expense, in procuring placements for the 5,000,000 TopoTarget Shares
comprising part of the Purchase Price on terms and conditions (including price)
agreed upon by CuraGen in its sole discretion, provided that CuraGen
agrees it shall sell any TopoTarget Shares for which (i) TopoTarget’s
financial advisors are able to procure one or more placees for at least [**] or
more TopoTarget Shares and (ii) the price per share (net of any expenses
paid by CuraGen) is greater than or equal to the average closing price of
TopoTarget Shares on Nasdaq OMX Nordic Exchange Copenhagen over the [**]
trading day period ending on the Effective Date. Notwithstanding the foregoing,
should TopoTarget notify CuraGen that it intends to engage in any rights
offering of more than [**] TopoTarget Shares: (x) TopoTarget shall use its
commercially reasonable efforts to include all of the 5,000,000 TopoTarget
Shares held by CuraGen in such offering up to the maximum amount deemed prudent
by TopoTarget’s financial advisors, in which event CuraGen shall share in the
reasonable and customary expenses of the offering in proportion to the total
number of TopoTarget Shares sold by CuraGen and TopoTarget in such offering, (y) CuraGen
shall refrain from selling or otherwise transferring any of its TopoTarget
Shares during the Initial Period until the earliest to occur of the end of the
Initial Period and the completion and/or abandonment of such rights offering
and (z) CuraGen shall commit to sell in such rights offering any
TopoTarget Shares it holds, provided that the price per share (net of any
expenses paid by TopoTarget) is greater than or equal to the average closing
price of TopoTarget Shares on Nasdaq OMX Nordic Exchange Copenhagen over the
[**] trading day period ending on the Effective Date. Notwithstanding the
foregoing, should TopoTarget notify CuraGen that it intends to engage in any
public offering (other than a rights offering) or private placement of equity
securities representing more than [**] TopoTarget Shares: (x) CuraGen
shall refrain from selling or otherwise transferring any of its TopoTarget
Shares during the Initial Period until the earliest to occur of the end of the
Initial Period and the completion and/or abandonment of such public offering or
private placement, (y) TopoTarget shall offer to use the net proceeds of
such offering to repurchase at a price per share (net of any expenses paid by
TopoTarget) equal to the average closing price of TopoTarget Shares on Nasdaq
OMX Nordic Exchange Copenhagen over the [**] trading day period ending on the
Effective Date, provided that the offering is completed at a price per share
(net of any expenses paid by TopoTarget) greater than or equal to the average
closing price of TopoTarget Shares on Nasdaq OMX Nordic Exchange Copenhagen
over the [**] trading day period ending on the Effective Date, and (z) CuraGen
shall commit to sell to TopoTarget at such price any TopoTarget Shares it
holds. In the event any such TopoTarget Shares have not been placed or
otherwise sold in accordance with the first three (3) sentences of this Section 3.4(b) during
the Initial Period, CuraGen shall be free to trade such TopoTarget Shares,
provided such trades are in compliance in all cases with the requirements of
the Securities Act and other applicable laws. In furtherance of the foregoing,
TopoTarget shall take all steps necessary to ensure that the TopoTarget Shares
delivered as part of the Purchase Price shall be freely tradeable under Danish
law (but not the Securities Act) on Nasdaq OMX Nordic Exchange Copenhagen as
soon as practicable but in no event later than thirty (30) days after the
Effective Date. In the event any such TopoTarget Shares have not been placed or
otherwise sold in accordance with the first two sentences of this Section 3.4(b) during
the Initial Period and are not then freely tradeable under Danish law (but not
the Securities Act) on Nasdaq OMX Nordic Exchange Copenhagen as July 8,
2008 (and CuraGen has not withheld any reasonable assistance requested by
TopoTarget in connection with such freely tradeable obligation), TopoTarget
shall pay to CuraGen on a

 

15

 

monthly basis in arrears
an amount equal to (i) the number of such unplaced and unsold TopoTarget
Shares multiplied by (ii) [**]% of the average closing price of TopoTarget
Shares on Nasdaq OMX Nordic Exchange Copenhagen over the [**] trading day
period ending on the Effective Date multiplied by (iii) the number of days
elapsed since the later of (a) July 8, 2008 and (b) the last
payment made pursuant to this sentence of this Section 3.4(b). With
respect solely to the question of whether the TopoTarget Shares are freely
tradeable prior to the expiration of the Initial Period (and not including any
other default relating to the issuance of the TopoTarget Shares), such payment
shall be TopoTarget’s sole liability and CuraGen’s sole remedy. CuraGen
acknowledges that the TopoTarget Shares have not been registered under the
Securities Act, and therefore all transactions in such TopoTarget Shares shall
be conducted in transactions exempt from, or not subject to the registration
requirements of, the Securities Act.

 

(c) For
Net Sales of Products by TopoTarget and its Affiliates (but not for Net Sales
by any Sublicensee), TopoTarget shall pay to CuraGen a royalty equal to [**]
percent ([**]%) of the total Net Sales of Products received by TopoTarget or
any Affiliate until such time as the amounts paid to CuraGen under this Section 3.4(c) and
Section 3.4(d) below equal Six Million Dollars ($6,000,000) in the
aggregate.

 

(d) With
respect to any Sublicense to any Sublicensee, TopoTarget shall pay to CuraGen
an amount equal to [**] percent ([**]%) of the Sublicense Income actually
received in cash by TopoTarget until such time as the amounts paid to CuraGen
under Section 3.4(c) above and this Section 3.4(d) equal
Six Million United States Dollars ($6,000,000) in the aggregate.

 

(e) Notwithstanding
anything to the contrary contained herein, only one royalty or other payment
shall be paid to CuraGen for each unit of Product sold regardless of how many
transactions may occur between manufacture of the unit of Product and purchase
by the final end user, it being understood and agreed that (i) any royalty
under Section 3.4(c) will be based upon the first arms length
transaction between TopoTarget (or any Affiliate) and any Third Party, (ii) any
payment under Section 3.4(d) shall only arise at the time of receipt
in cash by TopoTarget of Sublicense Income and (iii) for the avoidance of
doubt, sale of any specific unit of Product may only be eligible for a
potential payment under either Section 3.4(c) or Section 3.4(d) but
not both such Sections.

 

Section 3.5
Allocation of Purchase Price.

 

(a) CuraGen
and TopoTarget agree that the Purchase Price and related consideration and
reimbursement of expenses provided herein shall be allocated among the
Transferred Assets on the basis of an allocation attached hereto as Schedule
3.5 (the “Allocation”). Each of CuraGen and TopoTarget agree to
report, as and when required, the allocation of the Purchase Price, as
adjusted, in a manner entirely consistent with the Allocation in the
preparation and filing of all Tax Returns. None of the CuraGen or TopoTarget
will take any action that would call into question the bona fides of the Allocation. Each of
TopoTarget and CuraGen, on behalf of itself and its respective Affiliates,
agrees that it will not take any position on a Tax Return that is inconsistent
with the Allocation. Any subsequent adjustment to the Purchase Price shall be
reflected in an allocation statement as revised by the Parties hereunder in a
manner consistent with the allocation statement as originally prepared, except
as

 

16

 

otherwise required by
applicable Legal Requirement. CuraGen and TopoTarget shall jointly allocate the
purchase price among the Transferred Assets and Licensed Rights and the
termination of the License and Collaboration Agreement in a manner that is
mutually acceptable and in accordance with applicable Tax and accounting rules.

 

ARTICLE IV.

 

SHIPMENT

 

CuraGen
shall cause all of the Transferred Assets consisting of books and records to be
shipped within two (2) days following the Effective Date to TopoTarget’s
US offices located at 100 Enterprise Drive, Rockaway, New Jersey 07866, USA.

 

ARTICLE V.

 

DELIVERIES

 

Section 5.1
Effective Date Deliveries. Contemporaneously with the Effective Date,
each Party agrees on its own behalf, as applicable, that the deliveries of such
instruments of conveyance, assignment and transfer, in form and substance
reasonably satisfactory to TopoTarget and CuraGen, as shall be appropriate, to
convey, transfer and assign to, and vest in, TopoTarget all of the right, title
and interest to the Transferred Assets free and clear of all Encumbrances as
specified below, will have been made by the respective Parties to this
Agreement and their Affiliates in order to consummate the transactions
contemplated hereby.

 

(a) Effective
Date Deliveries by TopoTarget and CuraGen. CuraGen and TopoTarget shall
deliver on the Effective Date:

 

(i) a
duly executed Assignment of Patents in substantially the form set forth on Exhibit B;
and

 

(ii) a
duly executed Transition Services Agreement.

 

(b) Effective
Date Deliveries by CuraGen. CuraGen shall deliver to TopoTarget on the
Effective Date at a location designated by TopoTarget, all originals or, where
applicable, CuraGen’s copy of the following items, documents and information,
it being understood that such delivery may be made in electronic form:

 

(i) all
Product Technical Information set forth on Schedule 5.1(b)(i);

 

(ii) all
documentation and data relating to the Regulatory Trials, including all case
reports forms, safety databases, interim reports and final study reports, and
data formats, structures and dependencies for such data relating to the
Regulatory Trials, provided that any such documentation or data that is
contained in a database provided by a Third Party licensor of CuraGen prior to
the Effective Date may be delivered in a form that requires a licensed copy of
the applicable database, which database shall not be assigned by CuraGen to
TopoTarget;

 

17

 

(iii) all
laboratory notebooks in the Control of CuraGen and its Affiliates relating to
Patents contained in the CuraGen Collaboration Technology and the Joint
Collaboration Technology, and all patent prosecution files (including all
correspondence with prosecution counsel and patent offices) relating to such
Patents;

 

(iv) all
tangible embodiments of Products containing HDAC Inhibitors Controlled by
CuraGen or its Affiliates as of the Effective Date, including those described
on Schedule 2.1(e) hereto

 

(v) the
Authorizations described on Schedule 2.1(d); and

 

(vi) the
Contracts described on Schedule 2.1(h).

 

Notwithstanding the
foregoing, in the event that information described above relates both to HDAC
Inhibitors, on the one hand, and to other products or businesses of CuraGen and
its Affiliates, on the other hand, and cannot be segregated in a reasonable
manner that preserves the usefulness of the information as it relates to HDAC
Inhibitors or other products or businesses, CuraGen shall not be required to
deliver original documents or other materials but shall be required (and shall
be required to cause its Affiliates) to provide copies of such documents and
other materials containing this information to TopoTarget on the Effective
Date. In instances where copies are provided to TopoTarget, TopoTarget and
their Affiliates shall have reasonable access to the original documents and
other materials under circumstances where copies of documents are insufficient
for evidentiary or regulatory purposes and CuraGen covenants and agrees, on
behalf of itself and its Affiliates to provide TopoTarget with a true and
accurate list of all the original documents retained by CuraGen and its
respective Affiliates.

 

(c) Effective
Date Deliveries by TopoTarget. TopoTarget shall deliver to CuraGen on the
Effective Date the cash portion of the Purchase Price as contemplated by Section 3.4.

 

(d) Post-Effective
Date Deliveries by TopoTarget. TopoTarget shall deliver to CuraGen as soon
as practicable after the Effective Date but in no event later than thirty
(30) days following the Effective Date the TopoTarget Share portion of the
Purchase Price as contemplated by Section 3.4(a)(ii).

 

ARTICLE VI.

 

TAXES AND FEES

 

Notwithstanding
any other provision herein, the following shall apply with respect to Taxes:

 

Section 6.1
Transfer and Conveyance Taxes.

 

(a) All
amounts payable by TopoTarget to CuraGen under this Agreement are stated
inclusive of VAT as the Parties do not anticipate any application of VAT; provided
that in the event that any VAT is applicable, the Parties agree to the
provisions contained in this Section 6.1 below.

 

18

 

(b) If
and to the extent that VAT on the sale of the Transferred Assets as provided
for under this Agreement is payable by CuraGen to the tax authorities,
TopoTarget shall pay to CuraGen any applicable VAT payable by CuraGen on the
sale of Transferred Assets five (5) days prior to the date that CuraGen’s
VAT liability falls due for payment to the tax authorities, but not earlier
than thirty (30) days after receipt by TopoTarget from CuraGen of a proper
invoice for such VAT. If and to the extent that TopoTarget is not able to
recover such VAT as input VAT from the tax authorities or the tax authorities
reject or cancel in writing by way of a Tax assessment or otherwise the
recovery of such VAT, such VAT shall be borne by TopoTarget.

 

(c) If
and to the extent that VAT on the sale of the Transferred Assets as provided
for under this Agreement is payable by TopoTarget to the tax authorities
(so-called reverse charge VAT), TopoTarget shall remit such reverse charge VAT
to the relevant taxing authority and shall be entitled to any refund of such
amount available under applicable Legal Requirement. If and to the extent that
TopoTarget is not able to recover such reverse charge VAT from the tax authorities
or if after such recovery the tax authorities reject or cancel in writing the
recovery of such VAT by way of a Tax assessment or otherwise, such VAT shall be
borne by TopoTarget.

 

(d) Any
interest charged or credited by the tax authorities to CuraGen or TopoTarget
shall be for the account of TopoTarget.

 

(e) All
transfer, excise and similar Taxes, other than VAT, shall be paid by the Party
legally liable therefor.

 

(f) CuraGen
shall retain all VAT records relevant to TopoTarget for a period of ten (10) years
following Effective Date and shall allow TopoTarget and their agents access to
and to take copies of the VAT records relevant to TopoTarget on reasonable
notice during normal business hours. TopoTarget and CuraGen shall each
co-operate to limit the other’s liability to all VAT, transfer and similar
Taxes.

 

ARTICLE VII.

 

[INTENTIONALLY OMITTED]

 

ARTICLE VIII.

 

REPRESENTATIONS AND WARRANTIES OF CURAGEN

 

CuraGen
hereby represents and warrants to TopoTarget as follows as of the Effective
Date:

 

Section 8.1
Organization and Authority. CuraGen is validly existing and in good
standing under the laws of Delaware. Each of CuraGen and any of its Affiliates
party to any Transaction Documents have full power and authority to execute and
deliver this Agreement and any Transaction Documents to which it is a party and
to perform its obligations hereunder and thereunder.

 

19

 

Section 8.2
Corporate Authority; Validity of Agreement; No Violation. The execution
and delivery of this Agreement and the other agreements contemplated hereunder
and the performance of CuraGen’s obligations hereunder and thereunder have been
duly and validly authorized by all necessary corporate action by CuraGen, and
no other corporate proceedings on the part of CuraGen are necessary to
authorize such execution, delivery and performance. This Agreement has been,
and the other agreements to be executed by CuraGen in connection with this
Agreement will be, duly and validly executed and delivered by CuraGen and
constitute or will constitute, as the case may be, the valid and binding
obligations of CuraGen enforceable against CuraGen in accordance with its or
their terms. Execution of this Agreement and the other agreements to be
executed by CuraGen in connection with this Agreement and consummation of the
transactions contemplated hereby and thereby will not (i) result in the
violation of or conflict with any of the terms and provisions of any of the
organizational or governing documents of CuraGen, (ii) result in a
violation or breach of, or constitute (with or without due notice or lapse of
time or both) a default (or give rise to any right of termination,
modification, cancellation or acceleration or loss of material benefits) under,
any of the terms, conditions or provisions of any note, bond, mortgage,
indenture, contract, agreement, permit, license, lease, agreement or other
obligation to which CuraGen is a party or may be subject or (iii) violate
any order, writ, injunction, decree, statute, treaty, rule or regulation
applicable to any CuraGen or the Transferred Assets or the Licensed CuraGen
Rights, except such violations, breaches or defaults with respect to clauses (ii) and
(iii) above which would not adversely affect CuraGen’s ability to perform
its obligations hereunder or TopoTarget’s use of the Transferred Assets and
Licensed CuraGen Rights.

 

Section 8.3
Government Approvals. Except as set forth on Schedule 8.3, no
authorization, consent, approval, license, exemption from or filing or
registration with any Governmental Authority under any applicable Legal
Requirements, is necessary for the execution and delivery by CuraGen of this
Agreement or any other agreement or instrument executed in connection herewith,
the consummation by CuraGen of the transactions contemplated hereby or thereby,
or the performance by CuraGen of its obligations under this Agreement and such
other agreements, except as relates solely to TopoTarget.

 

Section 8.4
Good Title; Absence of Encumbrances. CuraGen has good and valid title to
the Transferred Assets, all of which are free and clear of all Encumbrances as
of the Effective Date.

 

Section 8.5
Third Party Rights; Patents. Neither CuraGen nor any of its Affiliates
has received any notice, claim or assertion from any Third Party (a) to
the effect that the manufacture, use, sale, offer for sale or import of
Products infringes, or would infringe, the Patents or other intellectual
property rights of any Third Party; or (b) that questions the validity,
ownership or enforceability of any CuraGen Collaboration Technology or Joint
Collaboration Technology; and in each case, to CuraGen’s knowledge, there does
not exist any basis for any such notice, claim or assertion. The CuraGen
Collaboration Technology and Joint Collaboration Technology included in the
Transferred Assets, together with the Licensed CuraGen Rights, contain all
Patents and other intellectual property rights owned or Controlled by CuraGen
or any

 

20

 

Affiliate relating to or
necessary for the development, manufacture, use, or sale of HDAC Inhibitors and
Product. CuraGen and/or its Affiliates are the sole owner of, or have the
exclusive rights to, all of the CuraGen Collaboration Technology and Licensed
CuraGen Rights and (except for TopoTarget) the Joint Collaboration Technology
in existence as of the Effective Date, and have the exclusive right to grant
the licenses granted under this Agreement free and clear of any Encumbrances.
CuraGen has not entered into any licenses, sublicenses, options or any other
agreement or commitment with respect to any of the CuraGen Collaboration
Technology, Joint Collaboration Technology or Licensed CuraGen Rights. To
CuraGen’s knowledge and belief, none of the Inventions claimed in the CuraGen
Collaboration Technology, Joint Collaboration Technology and the Licensed
CuraGen Rights were obtained by CuraGen in violation of any contractual or
fiduciary obligation to which CuraGen, or any of its employees or staff members
are or were bound, or by the misappropriation of the trade secrets of any Third
Party; and CuraGen has not entered into any agreement with a Third Party for a
license or other rights to such Third Party’s Patents or other intellectual
property with respect to any HDAC Inhibitor or Product. To CuraGen’s knowledge
and belief, all of the data and information contained in the Product Technical
Information, the rights of which to use are included in the Transferred Assets
or the Licensed CuraGen Rights, are accurate and complete, and to CuraGen’s
knowledge and belief, CuraGen has not omitted therefrom any material data or
information in CuraGen’s possession or control. Neither CuraGen nor any of its
Affiliates has taken any action or failed to take any action in connection with
the License and Collaboration Agreement that has resulted in or could result in
the impairment of the validity, enforceability or ownership of any of the
CuraGen Collaboration Technology, Joint Collaboration Technology or Licensed
CuraGen Rights.

 

Section 8.6
Contracts. Schedule 2.1(h) sets forth a list of all
Contracts in existence as of the date hereof, full and complete written copies
of which have been made available to TopoTarget. Each of the Contracts is in
full force and effect, is valid and enforceable in accordance with its terms
and, to the knowledge of CuraGen, is not subject to any claims, charges,
setoffs or defenses. Neither CuraGen is, nor to CuraGen’s knowledge is any
other person, in default, nor has any event occurred which, with the giving of
notice or the passage of time or both, would constitute a default, under the
License and Collaboration Agreement or any of the Contracts.

 

Section 8.7
Litigation. Neither CuraGen nor any of its Affiliates has received any
notice of any claim, suit, investigation, arbitration or other legal
proceedings against CuraGen or any Affiliate of CuraGen (which claim, suit,
investigation, arbitration or other legal proceeding has not been conclusively
resolved as of the date of this Agreement) the adverse resolution of which
could reasonably be expected to adversely affect CuraGen’s ability to perform
its obligations hereunder or TopoTarget’s use of the Transferred Assets and
Licensed CuraGen Rights.

 

Section 8.8
SEC Reports; Financials. CuraGen has filed or otherwise transmitted all
SEC Documents required to be filed prior to the date hereof by it with the SEC
since January 1, 2006. As of their respective dates, or, if amended, as of
the date of the last such amendment prior to the date hereof, the SEC Documents
complied as to form, in all respects, with the requirements of the Exchange Act
and the applicable rules and regulations promulgated thereunder. None of
the SEC Documents so filed contained any untrue statement of a material

 

21

 

fact or omitted to state
any material fact required to be stated therein or necessary in order make the
statements therein, in the light of the circumstances under which they were
made, not misleading under the Exchange Act. To the knowledge of the Company,
none of the SEC Documents is the subject of ongoing SEC review, investigation
or enforcement action. The consolidated financial statements (including any
related notes thereto) of the Company included in the SEC Documents fairly
present in all material respects the consolidated financial position of the
Company and its subsidiaries, as of the date thereof, and the consolidated
statements of operations, cash flows and changes in stockholders’ equity for
the respective periods indicated and have been prepared in accordance with GAAP
applied on a consistent basis during the periods involved (except as may be
indicated therein or in the notes thereto). On the Effective Date, after giving
effect to the transactions contemplated hereby, (i) the aggregate value of
CuraGen’s assets will exceed its total liabilities (including contingent,
subordinated, unmatured and unliquidated liabilities) at a fair valuation and
at fair saleable value; (ii) CuraGen will have the ability to pay its
total debts and liabilities (including contingent, subordinated, unmatured and
unliquidated liabilities) as they become due in the usual course of its
business; and (iii) CuraGen will not have an unreasonably small amount of
capital with which to conduct its business.

 

Section 8.9
Clinical Product Inventory. All Products containing HDAC Inhibitors
described on Schedule 2.1(e) hereto has been and is, as of the
Effective Date, in good condition and properly stored and maintained,
consistent with past practice of CuraGen.

 

Section 8.10
Compliance with Laws. CuraGen and each of its Affiliates have complied
with all Legal Requirements applicable to their respective performance under
the License and Collaboration Agreement, the failure of which compliance could
reasonably be expected to adversely affect CuraGen’s ability to perform its
obligations hereunder or TopoTarget’s use of the Transferred Assets and
Licensed CuraGen Rights.

 

Section 8.11
Material Changes. Except as set forth on Schedule 8.11 hereto,
since December 31, 2007, (i) there has been no event, occurrence or
development that has had or that could reasonably be expected to result in a
material adverse effect on the results of operations, assets, business or
financial condition of CuraGen, taken as a whole (“CuraGen Material Adverse
Effect”), (ii) CuraGen has not incurred any liabilities (contingent or
otherwise) other than (A) trade payables and accrued expenses incurred in
the ordinary course of business consistent with past practice and (B) liabilities
not required to be reflected in CuraGen’s financial statements pursuant to GAAP
or required to be disclosed in filings made with the SEC, (iii) CuraGen
has not altered its method of accounting, (iv) CuraGen has not declared or
made any dividend or distribution of cash or other property to its stockholders
or purchased, redeemed or made any agreements to purchase or redeem any shares
of its capital stock; (v) CuraGen has not issued any equity securities to
any officer, director or Affiliate, except pursuant to existing employee
benefit plans; and (vi) CuraGen has not had any disagreement with its
independent auditors that would require public disclosure.

 

Section 8.12
Compliance. CuraGen (i) is not in default under or in violation of
(and no event has occurred that has not been waived that, with notice or lapse
of time or both, would result in a default by CuraGen under), nor has CuraGen
received notice of a claim that it is in default under or that it is in
violation of, any indenture, loan or credit agreement or any other agreement or
instrument to which it is a party or by which it or any of its properties is

 

22

 

bound (whether or not
such default or violation has been waived), (ii) is not in violation of
any order of any court, arbitrator or governmental body, or (iii) is not
and has not been in violation of any statute, rule or regulation of any
governmental authority, except in the case of clauses (i), (ii) and (iii) as
would not have or reasonably be expected to result in a CuraGen Material
Adverse Effect.

 

Section 8.13
Brokers and Finders. Except for the investment banking firm of The
Goldman Sachs Group, Inc., CuraGen has not employed any broker, finder,
consultant or intermediary in connection with the transactions contemplated by
this Agreement who would be entitled to a broker’s, finder’s or similar fee or
commission from TopoTarget in connection therewith or upon the consummation
thereof. All expenses, fees and commissions due to The Goldman Sachs Group, Inc.
in connection with the transactions contemplated herein shall be paid by
CuraGen.

 

Section 8.14
Disclaimer of CuraGen. EXCEPT AS SET FORTH IN THIS ARTICLE VIII OR
ANY TRANSACTION DOCUMENT, NONE OF CURAGEN, ITS AFFILIATES OR ANY OF THEIR
RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES OR REPRESENTATIVES MAKES OR HAS MADE
ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AT LAW OR IN EQUITY, IN
RESPECT OF THE TRANSFERRED ASSETS OR THE LICENSED CURAGEN RIGHTS OR OTHERWISE,
INCLUDING WITH RESPECT TO MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR
PURPOSE.

 

ARTICLE IX.

 

REPRESENTATIONS AND WARRANTIES OF TOPOTARGET

 

Buyer
hereby represents and warrants to CuraGen as follows:

 

Section 9.1
Organization and Authority of TopoTarget. TopoTarget is validly existing
under the laws of Denmark. TopoTarget and any of its Affiliates party to any
Transaction Document have full corporate power and authority to execute and
deliver this Agreement and any Transaction Documents to which it is a party and
to perform its obligations hereunder and thereunder.

 

Section 9.2
Corporate Authority; Validity of Agreement; No Violation. Except for the
preparation of appraisal valuation reports required under Danish law, the
execution and delivery of this Agreement and the other agreements contemplated
hereunder and the performance of TopoTarget’s obligations hereunder and
thereunder have been duly and validly authorized by all necessary corporate
action by TopoTarget, and no other corporate proceedings on the part of
TopoTarget are necessary to authorize such execution, delivery and performance.
This Agreement has been, and the other agreements to be executed by TopoTarget
in connection with this Agreement will be, duly and validly executed and
delivered by TopoTarget and constitute or will constitute, as the case may be,
the valid and binding obligations of TopoTarget enforceable against TopoTarget
in accordance with its or their terms. Execution of this Agreement and the
other agreements to be executed by TopoTarget in connection with this Agreement
and consummation of the transactions contemplated hereby and

 

23

 

thereby will not (i) result
in the violation of or conflict with any of the terms and provisions of any of
the organizational or governing documents of TopoTarget, (ii) result in a
violation or breach of, or constitute (with or without due notice or lapse of
time or both) a default (or give rise to any right of termination,
modification, cancellation or acceleration or loss of material benefits) under,
any of the terms, conditions or provisions of any note, bond, mortgage,
indenture, contract, agreement, permit, license, lease, agreement or other
obligation to which TopoTarget is a party or may be subject or (iii) violate
any order, writ, injunction, decree, statute, treaty, rule or regulation
applicable to TopoTarget, except such violations, breaches or defaults with
respect to clauses (ii) and (iii) above which would not adversely
affect TopoTarget’s ability to perform its obligations hereunder.

 

Section 9.3
Governmental Approvals. Except as set forth on Schedule 9.3, no
authorization, consent, approval, license, exemption from, or filing or
registration with any Governmental Authority under any applicable Legal
Requirements, is necessary for, or in connection with, the purchase of the
Transferred Assets, the execution and delivery by TopoTarget of this Agreement
and any other agreement or instrument executed in connection herewith, the
consummation by TopoTarget of the transactions contemplated hereby and thereby,
or the performance by TopoTarget of its obligations under this Agreement and
such other agreements, except as relates solely to CuraGen.

 

Section 9.4
Purchase Price. TopoTarget has available all of the funds described in Section 3.4(a)(i) above
as of the Effective Date that are necessary to consummate the transactions and
to perform its obligations under this Agreement on the date that TopoTarget
becomes obligated to pay such amount.

 

Section 9.5
Issuance of the TopoTarget Shares. The TopoTarget Shares are duly
authorized and, when issued and delivered to CuraGen in accordance with the
terms and conditions of this Agreement, will be duly and validly issued, fully
paid, free and clear of all Encumbrances.

 

Section 9.6
Capitalization. The capitalization of TopoTarget is as described in
TopoTarget’s most recent publicly filed periodic report as updated by any
current report filed with the Nasdaq OMX Nordic Exchange Copenhagen thereafter.
TopoTarget has not issued any capital stock since such filings other than
pursuant to the exercise of employee stock options/warrants under TopoTarget’s
stock option/warrant plans, pursuant to the conversion or exercise of any
outstanding securities of TopoTarget which would entitle the holder thereof to
acquire at any time TopoTarget Shares, including without limitation, any debt,
preferred stock, rights, options, warrants or other instrument that is at any
time convertible into or exchangeable for, or otherwise entitles the holder
thereof to receive, TopoTarget Shares (“Common Stock Equivalents”) and
pursuant to publicly-disclosed equity financings. Except as a result of the
purchase and sale of TopoTarget Shares or as described in the Public Reports
(defined below), there are no outstanding options, warrants, script rights to
subscribe to, calls or commitments of any character whatsoever relating to, or
securities, rights or obligations convertible into or exchangeable for, or
giving any Person any right to subscribe for or acquire, any TopoTarget Shares,
or contracts, commitments, understandings or arrangements by which TopoTarget
is or may become bound to issue additional TopoTarget Shares, or securities or
rights convertible or exchangeable into TopoTarget Shares. The issue and
delivery of TopoTarget Shares to CuraGen

 

24

 

 

 

as part of the Purchase
Price will not obligate TopoTarget to issue TopoTarget Shares or other
securities to any Person (other than CuraGen) and will not result in a right of
any holder of TopoTarget securities to adjust the exercise, conversion, exchange
or reset price under such securities.

 

Section 9.7
Public Reports; Financial Statements. The Company has filed all reports
required to be filed by it under the Danish Annual Accounts Act for the three
years preceding the date hereof (or such shorter period as TopoTarget was
required by law to file such material) (the foregoing materials, including the
financial statements and footnotes thereto, exhibits thereto and incorporated
by reference therein, being collectively referred to herein as the “Public
Reports”) on a timely basis or has received a valid extension of such time
of filing and has filed any such Public Reports prior to the expiration of any
such extension. As of their respective dates, the Public Reports complied in
all material respects with the requirements of the Danish Annual Accounts Act,
and none of the Public Reports, when filed, contained any untrue statement of a
material fact or omitted to state a material fact required to be stated therein
or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading. The financial
statements of the Company included in the Public Reports comply in all material
respects with applicable accounting requirements and rules and regulations
with respect thereto as in effect at the time of filing. Such financial
statements have been prepared in accordance with International Financial
Reporting Standards applied on a consistent basis during the periods involved,
except as may be otherwise specified in such financial statements or the
footnotes thereto, and fairly present in all material respects the financial
position of TopoTarget as of and for the dates thereof and the results of
operations and cash flows for the periods then ended, subject, in the case of
unaudited statements, to normal year-end audit adjustments.

 

Section 9.8
Material Changes. Except as set forth on Schedule 9.8 hereto,
since December 31, 2007, (i) there has been no event, occurrence or
development that has had or that could reasonably be expected to result in a
material adverse effect on the results of operations, assets, business or
financial condition of TopoTarget, taken as a whole (“TopoTarget Material
Adverse Effect”), (ii) TopoTarget has not incurred any liabilities
(contingent or otherwise) other than (A) trade payables and accrued
expenses incurred in the ordinary course of business consistent with past
practice and (B) liabilities not required to be reflected in TopoTarget’s
financial statements pursuant to International Financial Reporting Standards or
required to be disclosed in filings made with Nasdaq OMX Nordic Exchange
Copenhagen, (iii) TopoTarget has not altered its method of accounting, (iv) TopoTarget
has not declared or made any dividend or distribution of cash or other property
to its stockholders or purchased, redeemed or made any agreements to purchase
or redeem any shares of its capital stock; (v) TopoTarget has not issued
any equity securities to any officer, director or Affiliate, except pursuant to
existing TopoTarget stock option/warrant plans; and (vi) TopoTarget has
not had any disagreement with its independent auditors that would require
public disclosure.

 

Section 9.9
Compliance. TopoTarget (i) is not in default under or in violation
of (and no event has occurred that has not been waived that, with notice or
lapse of time or both, would result in a default by TopoTarget under), nor has
TopoTarget received notice of a claim that it is in default under or that it is
in violation of, any indenture, loan or credit agreement or any other agreement
or instrument to which it is a party or by which it or any of its properties is

 

25

 

bound (whether or not
such default or violation has been waived), (ii) is not in violation of
any order of any court, arbitrator or governmental body, or (iii) is not
and has not been in violation of any statute, rule or regulation of any
governmental authority, except in the case of clauses (i), (ii) and (iii) as
would not have or reasonably be expected to result in a TopoTarget Material
Adverse Effect.

 

Section 9.10
Brokers and Finders. Except for the investment banking firm of JP Morgan
Chase & Co., TopoTarget has not employed any broker, finder,
consultant or intermediary in connection with the transactions contemplated by
this Agreement who would be entitled to a broker’s, finder’s or similar fee or
commission from CuraGen in connection therewith or upon the consummation
thereof. All expenses, fees and commissions due to JP Morgan Chase &
Co. in connection with the transactions contemplated herein shall be paid by
TopoTarget.

 

Section 9.11
No Other Warranties. EXCEPT AS SET FORTH IN THIS ARTICLE IX OR ANY
TRANSACTION DOCUMENT, NONE OF TOPOTARGET, ITS AFFILIATES OR ANY OF THEIR RESPECTIVE
OFFICERS, DIRECTORS, EMPLOYEES OR REPRESENTATIVES MAKES OR HAS MADE ANY
REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AT LAW OR IN EQUITY.

 

ARTICLE X.

 

COVENANTS

 

Section 10.1
Additions to Product Technical Information. The Parties acknowledge that
in connection with the prosecution of regulatory approval of HDAC Inhibitors
and/or Products from the FDA or similar bodies or the compliance with legal and
regulatory requirements to which HDAC Inhibitors and/or Products may be subject
before or after receipt of such regulatory approval, TopoTarget may identify,
or may request CuraGen to identify, particular documents, reports, files and
records (whether in paper, electronically-stored, magnetic media, film or
microfilm or other tangible form) containing biological, chemical,
pharmacological, toxicological, pharmaceutical, physical and analytical,
clinical, safety, manufacturing and quality control data, information or
Know-How relating to the development or manufacturing of HDAC Inhibitors and/or
Products constituting or pertaining to correspondence or communications with
the FDA or any other Regulatory Authority (including, but not limited to,
minutes or summaries of any correspondence or communications with the FDA or
any other Regulatory Authority), and applications for regulatory approval of
any Product, which documents, reports, files and records are reasonably
required to be accessible to TopoTarget in connection with such prosecution of
regulatory approval or compliance with such legal or Regulatory Authority. At
any time after the Effective Date, at TopoTarget’s request as part of the
services to be provided pursuant to the Transition Services Agreement, CuraGen
agrees to take all reasonable steps to identify any such documents, reports,
files and records and to furnish a copy thereof to TopoTarget. The Parties
acknowledge that in certain cases such documents, reports, files and records
may be required by Regulatory Authorities to be accessible within specific and
inflexible deadlines, and in such cases CuraGen shall take all reasonable steps
to furnish such documents, reports, files and records so as to enable
TopoTarget to meet such deadlines.

 

26

 

Section 10.2
Consents; Filings. Upon the terms and subject to the conditions hereof,
each of the Parties hereto shall, and shall cause their respective Affiliates
to, use all reasonable efforts, to obtain from the requisite Governmental
Authorities any consents, licenses, permits, waivers, approvals, authorizations
or orders required to be obtained or made in connection with the authorization,
execution and delivery of this Agreement and the consummation of the
transactions contemplated by this Agreement.

 

Section 10.3
Efforts of the Parties. Each of CuraGen and TopoTarget shall, and shall
cause their respective Affiliates to do, or cause to be done, all things
necessary to consummate the transactions contemplated hereby and by the
Transaction Documents (save as otherwise provided herein).

 

Section 10.4
Further Assurances. CuraGen, on one hand, and TopoTarget, on the other
hand, agree that subsequent to the Effective Date, at the request of the other
Party, they will execute and deliver, or cause to be delivered, to the other
Party, such further instruments and take such other action as may be reasonably
necessary to carry out the transactions contemplated by this Agreement.

 

Section 10.5
Data; Books; Records. For a period of seven (7) years after the
Effective Date, (a) TopoTarget and their Affiliates agree to retain and
make available all books and records received from CuraGen and their respective
Affiliates after the Effective Date for inspection and copying by CuraGen or
their agents at CuraGen’s expense, upon reasonable request and upon reasonable
notice; provided, that such books and records shall be made available
only to the extent such availability is required for CuraGen or its Affiliates
to comply with a Legal Requirement, this Agreement, the Transaction Documents
or to enable CuraGen or its Affiliates to defend against, respond to, or
otherwise participate in any Third Party litigation, investigation, audit,
process, subpoena or other proceeding related to HDAC Inhibitors or to enforce
its rights hereunder or under any Transaction Document, and (b) no such
books and records shall be destroyed by TopoTarget without first advising
CuraGen in writing and giving CuraGen a reasonable opportunity to obtain
possession thereof. In addition, to the extent they are obligated by Legal
Requirement to do so, CuraGen and/or its Affiliates shall have the right to
retain books and records for legal, regulatory, tax or accounting purposes, so
long as CuraGen and/or its Affiliates provide at least one copy of such books
and records to TopoTarget.

 

Section 10.6
Confidentiality. Except as expressly provided in this Agreement or in
any Transaction Document, CuraGen agrees with TopoTarget, and TopoTarget agrees
with CuraGen, and CuraGen and TopoTarget undertake to cause their respective
Affiliates, to keep confidential at all times after the date of this Agreement,
and not directly or indirectly reveal, disclose or use for its own or any
purpose not contemplated by this Agreement, any Confidential Information of the
other Party delivered, received or obtained as a result of entering into or
performing, or supplied by or on behalf of a Party in the negotiations leading
to, the License and Collaboration Agreement or this Agreement and which relates
to: (i) the negotiations relating to this Agreement; (ii) the subject
matter or provisions of this Agreement or the License and Collaboration
Agreement; or (iii) the matters disclosed pursuant to this Agreement. The

 

27

 

Transferred Assets shall
be deemed Confidential Information of TopoTarget, whether or not marked as
confidential. Notwithstanding anything to the contrary contained herein,
CuraGen covenants and agrees that it and its Affiliates, their successors and
any of their agents shall not use for any purpose any Confidential Information,
or material of a technical, medical or scientific nature, exclusively relating
to HDAC Inhibitors, including any Product Technical Information exclusively
relating to HDAC Inhibitors, or any Confidential Information comprised within
the Licensed CuraGen Rights for any purpose within the Field, in each case
whether or not received from TopoTarget or any of their Affiliates or developed
by CuraGen or any of their Affiliates, which is not otherwise publicly
available at the Effective Date or becomes thereafter publicly available
pursuant to actions of TopoTarget or its Affiliates as contemplated by this Section 10.6.

 

The
prohibitions in this Section 10.6 do not apply if: (i) the
Confidential Information was in the public domain before it was furnished to the
relevant Party or, after it was furnished to that Party, entered the public
domain otherwise than as a result of (A) a breach by that Party of this Section 10.6
or any written confidentiality agreement to which any of CuraGen or TopoTarget
is a party or (B) a disclosure by the receiving Party in violation of a
confidentiality obligation; (ii) information was received by the receiving
Party on a non-confidential basis from a Third Party who, as far as the
receiving Party is aware, is not prohibited from disclosing such information to
the receiving Party by a legal, contractual or fiduciary obligation to the
disclosing Party; (iii) the information was independently developed by
CuraGen, TopoTarget or any of their Affiliates, as applicable, after the
Effective Date without reliance on the information disclosed by the disclosing
Party; or (iv) disclosure is necessary in order to comply with applicable
legislation, regulatory requirements, legal process, stock exchange rules or
to obtain tax or other clearances or consents from a taxation authority, provided
that any such information disclosable pursuant to this Section 10.6(b)(iv) shall
be disclosed only to the extent required by applicable Legal Requirement or
regulatory requirements and (unless such consultation is prohibited by
applicable Legal Requirement or regulatory requirements or is not reasonably
practicable) only after consultation with TopoTarget or CuraGen (as the case
may be).

 

Section 10.7
Noncompetition Covenant.

 

(a) Subject
to the terms and conditions of this Section 10.7, during the Period
commencing on the Effective Date and ending on the [**] anniversary of the
Effective Date (the “Restricted Period”), CuraGen hereby agrees, on
behalf of itself and its Affiliates, that none of CuraGen or its Affiliates
shall, or shall enable a Third Party, to directly or indirectly, whether
through license or otherwise, develop, market, sell, detail, promote,
co-promote or distribute any pharmaceutical product containing an HDAC
Inhibitor as an active ingredient (“Competing Product”) anywhere in the
world.

 

(b) The
restrictions set forth in Section 10.7(a) above shall not apply to
the development or commercialization of a Competing Product owned or controlled
by any Person (an “Acquiror”) who directly or indirectly acquires a
majority of the outstanding common stock of CuraGen or any Affiliate of such
Acquiror; provided that (i) such Acquiror or any Affiliate of such
Acquiror was not an Affiliate of CuraGen prior to the Effective Date, (ii) such
Competing Product was in existence immediately prior to the time that such
Third Party (or its Affiliate) became an Acquiror and (iii) in all cases
neither such Acquiror nor any Affiliate uses any CuraGen Collaboration
Technology, Joint Collaboration Technology or Licensed CuraGen Rights in
connection with such Competing Product.

 

28

 

(c) Notwithstanding
the provisions of this Section 10.7(a), none of CuraGen or any Affiliate
shall be deemed to be in violation of Section 10.7(a) or to have
enabled, directly or indirectly, a Third Party to market, sell, detail, promote
or distribute a Competing Product by virtue of an acquisition and subsequent
divestiture of a Competing Product that was acquired in connection with the
acquisition of other rights or interests in an entity (for purposes other than
the acquisition of the Competing Product as the primary purpose), provided
that such divestiture (i) is completed within 365 days of the initial
acquisition of such rights or interests, (ii) such divestiture occurs by
either (x) an outright sale of all such Competing Product rights to a
Third Party or (y) an out-license (exclusive as to CuraGen and its
Affiliates) to a Third Party of all such rights to develop and commercialize
such Competing Product and (iii) after such divestiture none of CuraGen or
its Affiliates exercises or has the ability to exercise any role or to
influence in any manner the development or commercialization of such Competing
Product that has been divested during the Restricted Period.

 

(d) If
CuraGen breaches any of the provisions of Sections 10.7, TopoTarget shall have
the following rights and remedies, each of which shall be independent of the
others and severally enforceable, and each of which is in addition to, and not
in lieu of, any other rights and remedies available to TopoTarget at law or in
equity, the right and remedy to have this Section 10.7 specifically
enforced by any court of competent jurisdiction, it being agreed that any
breach of this Section 10.7 would cause irreparable injury to TopoTarget
and that money damages would not provide an adequate remedy to TopoTarget.

 

(e) Each
Party acknowledges and agrees that provisions of this Section 10.7 are
reasonable in temporal scope and in other respects. If any court determines
that any of the provisions of this Section 10.7, or any part thereof, is
invalid or unenforceable, the remainder of the provisions of this Section 10.7
shall not thereby be affected and shall be given full force and effect, without
regard to the invalid portions. If any court determines that any of the
provisions of this Section 10.7, or any part thereof, is unenforceable
because of the duration or geographic scope of such provision, such court shall
have the power to reduce the duration or scope, as the case may be, of such
provision, and, in its reduced form, such provision shall then be enforceable.

 

Section 10.8
Mutual Release.

 

In
consideration of the mutual promises contained herein, each Party, for itself
and for each of its Affiliates, hereby generally, irrevocably, unconditionally
and completely releases and forever discharges the other Party, such other
Party’s Affiliates, and its and their officers, directors, stockholders,
agents, employees, heirs, administrators, executors, predecessors, successors
and assigns (hereinafter, the “Released Parties”) from, and hereby
irrevocably, unconditionally and completely waives and relinquishes, each of
such Party’s Released Claims. The Parties acknowledge they are aware that they
may hereafter discover facts in addition to or different from those now known
or believed to be true with respect to the subject matter of this release, but
that it is their intention to hereby fully, finally and forever settle and
release all such claims, disputes and differences, known or unknown, suspected
or unsuspected, that now exist or heretofore have existed between the Parties
and that in furtherance of such intention, this release

 

29

 

shall remain in effect as
a full and complete release notwithstanding the discovery or existence of any
such additional or different facts. The term “Released Claims,” when
used herein with respect to a Party, shall mean and include each and every
claim, charge, complaint, demand, action, cause of action, suit, right, debt,
sum of money, cost, reckoning, covenant, contract, agreement, promise, doing,
omission, damage, execution, obligation, liability and expense (including
attorneys’ fees and costs), of every kind and nature, whether at law or in
equity, that such Party may have had in the past, may now have or may have in
the future against the Released Parties, and which has arisen or arises
directly or indirectly out of, or relates directly or indirectly to, any
circumstance, agreement, activity, action, omission, event or matter occurring
or existing on or prior to the Effective Date to the extent such claim relates
to or arises under the License and Collaboration Agreement; provided, however,
that the Released Claims shall exclude: (1) any and all rights to seek and
obtain indemnification for any breach of any representation, warranty, covenant
or agreement under this Agreement (or, as provided herein, under the License
and Collaboration Agreement); and (2) any and all rights to seek and
obtain enforcement of, or a remedy arising out of the breach of, any obligation
provided for in this Agreement.

 

ARTICLE XI.

 

CERTAIN ADDITIONAL AGREEMENTS

 

Section 11.1
Costs and Expenses. Except as otherwise expressly provided herein, the
parties shall bear their own respective expenses (including, but not limited
to, all compensation and expenses of counsel, financial advisors, consultants
and independent accountants) incurred in connection with the preparation and
execution of this Agreement and consummation of the transactions contemplated
hereby.

 

Section 11.2
Notification of Certain Matters. CuraGen shall give prompt notice to
TopoTarget of any of the following of which it becomes aware: (i) any
notice of, or other communication relating to, a default or event that, with
notice or lapse of time or both, would become a default under any Contract; and
(ii) any notice or other communication from any Third Party alleging that
the consent of such Third Party is or may be required in connection with the
transactions contemplated by this Agreement.

 

ARTICLE XII.

 

SURVIVAL AND INDEMNIFICATION

 

Section 12.1
Survival.

 

(a) Subject
to applicable Legal Requirements, the covenants and representations and
warranties in this Agreement shall survive until the second anniversary of the
Effective Date; provided that the representations and warranties set
forth in Sections 8.1, 8.2, 8.4, 8.7, 8.8 (last sentence), 8.13, 9.1, 9.2, 9.3,
9.5, 9.6, 9.7 (last sentence), 9.8 and 9.10 shall survive indefinitely.

 

30

 

Section 12.2
Indemnification.

 

(a) From
and after the Effective Date and subject to the provisions of this Article XII,
CuraGen agrees to indemnify and hold harmless TopoTarget and its Affiliates and
each of their respective officers, directors, employees, agents, successors and
assigns against and in respect of any and all losses, claims, damages
(including special and consequential damages, including lost profits) (“Losses”),
resulting or arising from or otherwise relating to any Retained Liability, any
breaches by CuraGen of any representations, warranties, covenants or other
agreements contained in this Agreement or in any Transaction Document.

 

(b) From
and after the Effective Date and subject to the provisions of this Article XII,
TopoTarget agrees to indemnify and hold harmless CuraGen and its Affiliates and
each of their respective officers, directors, employees, agents, successors and
assigns against and in respect of any and all Losses resulting or arising from
or otherwise relating to any Assumed Liability or to any breaches of TopoTarget’
representations, warranties, covenants or other agreements contained herein or
in any Transaction Document.

 

Section 12.3
Limitations. CuraGen shall not have liability under Section 12.2(a) with
respect to any breach of any of its representations and warranties under this
Agreement: (i) for any individual item (or series of related items) where
the Loss relating thereto is less than $10,000 (Ten Thousand United States Dollars)
and (ii) in respect of each individual item (or series of related items)
where the Loss relating thereto is equal to or greater than $10,000 (Ten
Thousand United States Dollars), unless and until the aggregate amount of such
Losses exceeds $500,000 (Five Hundred Thousand United States Dollars) in the
aggregate, in which case CuraGen shall be liable for the entire amount of the
Losses described in this clause (ii) in excess of $500,000 (Five Hundred
Thousand United States Dollars). CuraGen’s maximum liability for all Losses
under Section 12.2 solely with respect to any breaches of representations
and warranties shall not exceed $6.5 million (Six Million Five Hundred Thousand
United States Dollars). Notwithstanding the foregoing, the limitations set forth
in this Section 12.3 shall not apply to indemnification obligations with
respect to (x) breaches of the warranties set forth in Sections 8.1, 8.2,
8.4, 8.8 (final sentence) and 8.11 hereof, (y) willful or knowing breaches
of any representations, warranties or covenants of CuraGen or (z) any
fraud or deliberate misrepresentation of CuraGen or any gross negligence or
willful misconduct of CuraGen.

 

Section 12.4
Method of Asserting Claims.

 

(a) A
Party seeking indemnification pursuant to Section 12.2 (an “Indemnified
Party”) shall give prompt notice to the Party from whom such
indemnification is sought (the “Indemnifying Party”) of the assertion of
any claim, or the commencement of any action, suit or proceeding, in respect of
which indemnity may be sought hereunder and will give the Indemnifying Party
such information with respect thereto as the Indemnifying Party may reasonably
request, but failure to give such notice shall relieve the Indemnifying Party
of any liability hereunder only to the extent that the Indemnifying Party has
suffered actual prejudice thereby. The Indemnifying Party shall have the right,
exercisable by written notice to the Indemnified Party within thirty
(30) days (unless a shorter period is required by the circumstances) of receipt
of notice from the Indemnified Party of the commencement of or

 

31

 

assertion of any claim or
action, suit or proceeding by a Third Party in respect of which indemnity may
be sought hereunder (a “Third Party Claim”), to assume and control the
defense of such Third Party Claim which involves (and continues to involve)
solely monetary damages; provided, that the Indemnifying Party expressly
agrees in such notice that, as between the Indemnifying Party and the Indemnified
Party, the Indemnifying Party shall be solely obligated to satisfy and
discharge the Third Party Claim (all of the foregoing, the “Litigation
Conditions”). For the purpose of the foregoing, the Indemnified Party shall
promptly provide the Indemnifying Party with all supporting evidence of the
Third Party Claim available to the Indemnified Party as well as any arguments
identified by the Indemnified Party to oppose such Third Party Claim and comply
with all reasonable requests for information from the Indemnifying Party so as
to allow the Indemnifying Party to make to the extent possible an informed
judgment as to its potential liability under this Article XII.

 

(b) In
the event the Indemnifying Party assumes the defense in respect of any Third
Party Claim (subject to the Litigation Condition), the Indemnifying Party shall
conduct the defense of each Third Party Claim diligently and in good faith
using all reasonable means and defenses available to it (and the Indemnified
Party shall relinquish the conduct of the defense of the Third Party Claim).
The Indemnified Party shall have the right, if it so notifies the Indemnifying
Party, to be consulted in such defense of the Third Party Claim and to
participate at its own expense and with counsel of its choice. In such event,
the Indemnifying Party shall afford the Indemnified Party and its counsel the
opportunity to comment and the right to object (which comments shall be taken
into account to the extent reasonable and such right to object shall not be unreasonably
exercised) with respect to the conduct of the defense of such Third Party
Claim.

 

(c) In
the event the Indemnifying Party does not assume the defense in respect of the
Third Party Claim, the Indemnified Party shall conduct the defense of each Third
Party Claim diligently and in good faith using all reasonable means and
defenses available to it, and the Indemnifying Party shall promptly reimburse
the Indemnified Party for its reasonable attorneys’ fees. The Indemnifying
Party shall have the right, if it so notifies the Indemnified Party, to be
consulted in such defense of the Third Party Claim and to participate at its
own expense and with counsel of its choice. In such event, the Indemnified
Party shall afford the Indemnifying Party and its counsel the opportunity to
comment with respect to the conduct of the defense of such Third Party Claim.

 

(d) The
Party conducting the defense of the Third Party Claim shall keep the other
Party fully informed of the progress of any Third Party Claim and its defense,
and shall with reasonable promptness provide such Party with copies all
material notices, written communications and filings (including court papers)
made by or on behalf of any of the parties to the underlying claim.

 

(e) From
and after the delivery of a notice of a Third Party Claim under Section 12.4(a),
at the reasonable request of the Indemnifying Party, the Indemnified Party
shall grant the Indemnifying Party and its representatives all reasonable
access to the books, records and properties of the Indemnified Party to the
extent reasonably related to the matters to which the Third Party Claim
relates. The Indemnifying Party will not, and shall require that its
representatives do not, use (except in connection with such Third Party Claim)
or disclose to any

 

32

 

Third Party other than
the Indemnifying Party’s representatives (except as may be required by
applicable Legal Requirements and legal process) any information obtained
pursuant to this Section which is designated confidential by the
Indemnified Party. All such access shall be granted during normal business
hours and shall be granted under conditions which will not interfere with the
business and operations of the Indemnified Party.

 

(f) The
Indemnifying Party, if it shall have assumed the defense of any Third Party
Claim as provided in this Agreement, may consent to a settlement of, or the
entry of any judgment arising from, any such Third Party Claim without the
prior written consent of the Indemnified Party so long as such settlement or
judgment does not commit the Indemnified Party to take, or to forbear to take,
any action. The Indemnified Party shall have the sole and exclusive right to
settle any Third Party Claim, on such terms and conditions as it deems
reasonably appropriate, to the extent that such Third Party Claim involves
equitable or other non-monetary relief and such settlement does not involve the
payment by the Indemnifying Party of monies to the Indemnified Party or a Third
Party.

 

(g) Whether
or not the Indemnifying Party chooses to defend any claim involving a Third
Party, all the parties hereto shall cooperate in the defense or prosecution
thereof and shall furnish such records, information and testimony, and attend
such conferences, discovery proceedings, hearings, trials and appeals, as may
be reasonably requested in connection therewith.

 

(h) The
Indemnified Party shall take all reasonable steps to avoid or mitigate any
Losses in respect of which it might be entitled to indemnification (other than
seeking recovery under insurance policies with Third Parties) which would
reduce the Loss recoverable by the Indemnified Party from the Indemnifying
Party under this Article XII.

 

(i) No
claim of the Indemnified Party or any of its Affiliates under this Agreement or
the Transaction Documents may be indemnified more than once in respect of the
same Loss suffered.

 

ARTICLE XIII.

 

MISCELLANEOUS

 

Section 13.1
Notices. All notices, requests, demands and other communications
hereunder shall be in writing and shall be deemed to have been duly given (i) by
personal delivery, (ii) upon transmission by facsimile machine if a
confirmation sheet is emitted from such machine or (iii) upon delivery by
an internationally recognized overnight courier service, each to the other
Party at the following address (or at such other address as shall be given in
writing by any Party to the other in accordance with this Section 13.1):

 

	
   

  	
  (a)

  	
  If to CuraGen: 

  

 

322 East Main
Street

Branford,
Connecticut 06405

United States of
America

Attention:

Facsimile No.: +1.203.483.2552

 

33

 

With a copy to:

 

WilmerHale

399 Park Avenue

New York, New York 10022

United States of America

Attention: Steven D. Singer, Esq.

Facsimile No.: +1.212.230.8888

 

	
   

  	
  (b)

  	
  If to TopoTarget: 

  

 

Symbion Science Park

Fruebjergvej 3, 2100

Copenhagen

Denmark

Attention: Chief Executive Officer

Facsimile No.: +45.39.179.492

 

With a copy to:

 

David E. Schulman, Esq.

Dechert LLP

1775 I Street, N.W.

Washington, D.C. 20006-2401

United States of America

Facsimile No.: +1.202.261.3333

 

Section 13.2
Conflict; Construction of Documents. In the event of any conflict
between the provisions of this Agreement and the provisions or any other
agreements delivered hereunder, the provisions of this Agreement shall prevail.

 

Section 13.3
Assignability; Successors and Assigns. Neither this Agreement nor any
Transaction Document nor any of the rights or obligations of the parties
hereunder or thereunder may be assigned by any Party without the prior written
consent of the other Party to this Agreement. Notwithstanding the foregoing,
TopoTarget, may, without such consent, assign any or all of its rights and
obligations under this Agreement or any Transaction Document (a) to any one
or more of its Affiliates (provided TopoTarget remains responsible in
full for the Purchase Price hereunder); (b) in connection with the
transfer or sale of all or substantially all of its assets or stock, or in the
event of the merger or consolidation or similar transaction; (c) in the
event of the sale or transfer by TopoTarget to any Third Party as part of the
sale of substantially all of their rights to HDAC Inhibitors and Products. In
the event of any such assignment permitted by the foregoing, the assigning
Party shall remain liable to CuraGen with respect to the obligations so
assigned. It is further understood that in the event of any assignment of the
Patent rights included within the Licensed CuraGen Rights, CuraGen shall
require the assignee to acknowledge and agree in writing that such Patent
rights are subject to the license and other

 

34

 

rights granted to
TopoTarget hereunder. Any attempted assignment or delegation in contravention
hereof shall be null and void. Subject to the foregoing, this Agreement and any
Transaction Documents and all rights and powers granted and obligations created
hereby will bind and inure to the benefit of the parties hereto and their
respective successors and assigns.

 

Section 13.4
Specific Performance. Each of the parties hereto acknowledges and agrees
that the other Party would be damaged irreparably in the event that Sections 2,
3.1, 3.4, 10.6, 10.7, 10.8, 12 of this Agreement are not performed in
accordance with their specific terms or otherwise breached. Accordingly, each
of the parties agrees that the other Party shall be entitled to an injunction
or injunctions to prevent breaches of such provisions and to enforce
specifically such provisions in any action instituted in any court or tribunal
having jurisdiction over the parties and the matter in addition to any other
remedy to which it might be entitled, at law or equity.

 

Section 13.5
Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York without regard to its choice
of law rules. With respect to any suit, action or proceeding arising out of or
relating to this Agreement (each, a “Proceeding”), each Party hereto
irrevocably (i) agrees and consents to submit to the non-exclusive
jurisdiction of the United States District Court for the Southern District of
New York, United States of America, and (ii) waives, and agrees not to
assert by way of motion, defense, or otherwise, in any such Proceeding, any claim
that it is not subject personally to the jurisdiction of the above-named
courts, that its property is exempt or immune from attachment or execution,
that the Proceeding is brought in an inconvenient forum, that the venue of the
Proceeding is improper, or that this Agreement or the transactions contemplated
by this Agreement may not be enforced in or by any of the above-named courts.
Notwithstanding the immediately preceding sentence, either Party may seek
injunctive or similar equitable relief as to any matter arising out of or
relating to this Agreement in any court of competent jurisdiction.

 

Section 13.6
Headings. The headings preceding the text of the Articles, Sections and
subsections hereof are inserted solely for convenience of reference, and shall
not constitute a part of this Agreement, nor shall they affect its meaning,
construction or effect. All words used in this Agreement will be construed to
be of such gender or number as the context may require.

 

Section 13.7
Amendment and Waiver. The parties may by mutual agreement amend this
Agreement in any respect, and any Party, as to such Party, may (a) extend
the time for the performance of any of the obligations of any other Party; and (b) waive
(i) any inaccuracies in representations and warranties by any other Party,
(ii) compliance by any other Party with any of the agreements contained
herein and performance of any obligations by such other Party and (iii) the
fulfillment of any condition that is precedent to the performance by such Party
of any of its obligations under this Agreement. To be effective, any such
amendment or waiver must be in writing and be signed by the Party against whom
enforcement of the same is sought.

 

Section 13.8
Entire Agreement. This Agreement and the Transaction Documents shall
constitute the entire understanding and agreement among the parties hereto in

 

35

 

 

 

relation to the subject
matter of this Agreement and shall together supersede all previous agreements
among the parties in relation to the same subject matter. It is further agreed
that none of the parties has entered into this Agreement in reliance upon any
warranty or undertaking of the other Party which is not expressly set out or
referred to in this Agreement.

 

Section 13.9
Publicity. A copy of any public announcement or similar publicity
released in connection with the announcement of this Agreement and the
transactions contemplated herein shall be provided by the disclosing Party to
the non-disclosing Party, to the extent practicable, prior to the dissemination
of such announcement or publicity, and the parties shall coordinate with one
another regarding the timing, form and content of such disclosure.

 

Section 13.10
Counterparts. This Agreement and any amendments hereto may be executed
in one or more counterparts, each of which shall be deemed an original, but all
of which together will constitute one and the same instrument. Delivery of an
executed counterpart of a signature page to this Agreement by telecopier
shall be as effective as delivery of a manually executed counterpart of this
Agreement.

 

Section 13.11
No Third Party Beneficiary Rights. This Agreement is not intended to and
shall not be construed to give any Person or entity other than the parties
signatory hereto any interest or rights (including any Third Party beneficiary
rights) with respect to or in connection with any agreement or provision
contained herein or contemplated hereby.

 

Section 13.12
Severability. Each of the agreements, undertakings, covenants,
warranties, indemnities and other obligations of the parties entered pursuant
to this Agreement are considered reasonable by the parties hereto. If any
provision of this Agreement or an Transaction Document or any part thereof is
held void or unenforceable or in conflict with the Legal Requirements of any
relevant jurisdiction, the parties hereto shall negotiate in good faith to modify
this Agreement or Transaction Document, as applicable, so as to effect the
original intent of the parties as closely as possible in a mutually acceptable
manner in order that the transactions contemplated hereby be consummated as
originally contemplated to the greatest extent possible.

 

[Remainder of Page Intentionally
Left Blank]

 

36

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed this on the day and year first above written.

 

	
   

  	
   

  	
   

  	
   

  
	
  CURAGEN CORPORATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:  

  	
  /s/ Timothy M. Shannon

  	
   

  
	
  Name:  

  	
  Timothy M. Shannon

  	
   

  
	
  Title:  

  	
  President and CEO

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TOPOTARGET A/S

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Peter Buhl

  	
   

  	
  /s/ Hakan Astrom

  	
   

  
	
  Name:

  	
  Peter Buhl

  	
   

  	
  Hakan Astrom

  	
   

  
	
  Title:

  	
  CEO

  	
   

  	
  Chairman

  	
   

  
						

 

 

LIST OF SCHEDULES AND EXHIBITS

 

	
   

  	
   

  	
   

  
	
  Schedule
  2.1(d)

  	
   

  	
  Authorizations

  
	
   

  	
   

  	
   

  
	
  Schedule 2.1(e)

  	
   

  	
  Products

  
	
   

  	
   

  	
   

  
	
  Schedule 2.1(h)

  	
   

  	
  Contracts

  
	
   

  	
   

  	
   

  
	
  Schedule 3.3(a)

  	
   

  	
  Approved Prepaid
  Expenses

  
	
   

  	
   

  	
   

  
	
  Schedule 3.3(c)

  	
   

  	
  Approved Open Payables

  
	
   

  	
   

  	
   

  
	
  Schedule 3.5

  	
   

  	
  Allocation

  
	
   

  	
   

  	
   

  
	
  Schedule
  5.1(b)(i)

  	
   

  	
  Product Technical
  Information

  
	
   

  	
   

  	
   

  
	
  Schedule 8.3

  	
   

  	
  Required Government
  Approvals

  
	
   

  	
   

  	
   

  
	
  Schedule 8.11

  	
   

  	
  Material Changes

  
	
   

  	
   

  	
   

  
	
  Schedule 9.3

  	
   

  	
  Required Government
  Approvals

  
	
   

  	
   

  	
   

  
	
  Schedule 9.8

  	
   

  	
  Material Changes

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  Transition Services
  Agreement

  
	
   

  	
   

  	
   

  
	
  Exhibit B

  	
   

  	
  Assignment of Patents

  
	
   

  	
   

  	
   

  
	
  Exhibit C

  	
   

  	
  Sample Release of HDAC
  Inhibitor or Product for Clinical Use

  

 

 

Schedule 2.1(d)

 

Authorizations

 

All Authorizations
managed by CuraGen have been managed fully electronically; those electronic
files shall be included on a DVD with closing deliverables. The organizational
stucture, index and navigation instructions for the DVD are as noted below.

 

Table of Contents:

 

	
   

  	
   

  	
   

  
	
  1

  	
  Authorizations.

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.1

  	
  Authorities Included.

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.2

  	
  Navigation of DVD

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.3

  	
  Index of DVD

  	
  2

  

 

 

Schedule 2.1(e)

 

Products

 

	
  Study/Protocol Number

  	
   

  	
  CTM

  	
   

  	
  Lot/Job
  Number

  	
   

  	
  ID
  Number

  	
   

  	
  Inventory

  	
   

  	
  Expiration
  Date

  	
   

  	
  Comments

  	
   

  
	
  CuraGen PXD101

  	
   

  	
  PXD101 10mL vial

  	
   

  	
  07E24

  	
   

  	
  R071837

  	
   

  	
  1261

  	
   

  	
  24-May-09

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PXD101 10mL vial

  	
   

  	
  06K08

  	
   

  	
  R070430

  	
   

  	
  3

  	
   

  	
  08 Nov 2008

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PXD101 10mL vial

  	
   

  	
  07A27

  	
   

  	
  R071062

  	
   

  	
  2500

  	
   

  	
  27 Jan 2009

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PXD101 250mg
  capsules, 7 per bottle

  	
   

  	
  238491

  	
   

  	
  R070078

  	
   

  	
  5

  	
   

  	
  15 Jun 2008

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PXD101 250mg
  capsules, 7 per bottle

  	
   

  	
  245371

  	
   

  	
  R070079

  	
   

  	
  17

  	
   

  	
  29 Aug 2008

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Filter Extension
  Set

  	
   

  	
  2H5660

  	
   

  	
  R071794

  	
   

  	
  73

  	
   

  	
  NA

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  20-Hole Foam
  Insert

  	
   

  	
  C300170

  	
   

  	
  R060337

  	
   

  	
  45

  	
   

  	
  NA

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  20 Hole Box

  	
   

  	
  C300169

  	
   

  	
  R060313

  	
   

  	
  62

  	
   

  	
  NA

  	
   

  	
   

  	
   

  
	
  CuraGen PXD101-CLN-16

  	
   

  	
  Filter Extension
  Set

  	
   

  	
  2H5660

  	
   

  	
  R071024

  	
   

  	
  20

  	
   

  	
  NA

  	
   

  	
   

  	
   

  
	
  CuraGen PXD101-CLN-6

  	
   

  	
  PXD101 10 mL
  vial, 20 per box

  	
   

  	
  (06K08) PXD0005

  	
   

  	
  NA

  	
   

  	
  14

  	
   

  	
  8-Nov-08

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  20 Hole Foam
  Insert

  	
   

  	
  C300170

  	
   

  	
  R072028

  	
   

  	
  6

  	
   

  	
  NA

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Filter Extension
  Set

  	
   

  	
  2H5660

  	
   

  	
  R071026

  	
   

  	
  110

  	
   

  	
  NA

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Pharmacy Manual

  	
   

  	
  NA

  	
   

  	
  R060014

  	
   

  	
  1

  	
   

  	
  NA

  	
   

  	
   

  	
   

  
	
  CuraGen PXD101-CLN-8

  	
   

  	
  PXD101 10 mL
  vial, 20 per box

  	
   

  	
  (06K08) PXD0005

  	
   

  	
  NA

  	
   

  	
  13

  	
   

  	
  8-Nov-08

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Filter Extension
  Set

  	
   

  	
  2H5660

  	
   

  	
  R071846

  	
   

  	
  130

  	
   

  	
  NA

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Pharmacy Manual

  	
   

  	
  NA

  	
   

  	
  R060503

  	
   

  	
  8

  	
   

  	
  NA

  	
   

  	
   

  	
   

  
	
  CuraGen PXD101-CLN-9

  	
   

  	
  8x Kit Box

  	
   

  	
  C075923

  	
   

  	
  R060590

  	
   

  	
  174

  	
   

  	
  NA

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8x Divider

  	
   

  	
  C075924

  	
   

  	
  R060591

  	
   

  	
  176

  	
   

  	
  NA

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  20x Kit Box

  	
   

  	
  C075925

  	
   

  	
  R060588

  	
   

  	
  184

  	
   

  	
  NA

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  20x Divider

  	
   

  	
  C075926

  	
   

  	
  R060589

  	
   

  	
  183

  	
   

  	
  NA

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PXD101 250mg
  capsules, 7 per bottle

  	
   

  	
  252777

  	
   

  	
  R070638

  	
   

  	
  18

  	
   

  	
  05 Dec 2008

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WARMMARK
  30degreeC

  	
   

  	
  51020

  	
   

  	
  R060632

  	
   

  	
  103

  	
   

  	
  NA

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Pharmacy Manual

  	
   

  	
  NA

  	
   

  	
  R060681

  	
   

  	
  3

  	
   

  	
  NA

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PXD101 Capsules
  250 mg, 20 bottles per box

  	
   

  	
  CLN0003 (238491)

  	
   

  	
  NA

  	
   

  	
  1

  	
   

  	
  15 Jun 2008

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PXD101 Capsules
  250 mg, 20 bottles per box

  	
   

  	
  CLN0004 (245371)

  	
   

  	
  NA

  	
   

  	
  3

  	
   

  	
  29 Aug 2008

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PXD101 Capsules
  250 mg, 20 bottles per box

  	
   

  	
  CLN0005 (252777)

  	
   

  	
  NA

  	
   

  	
  27

  	
   

  	
  05 Dec 2008

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PXD101 Patient
  box

  	
   

  	
  CLB0001

  	
   

  	
  NA

  	
   

  	
  34

  	
   

  	
  NA

  	
   

  	
  QUARANTINE

  	
   

  
	
   

  	
   

  	
  PXD101 Patient
  box

  	
   

  	
  CLB0002

  	
   

  	
  NA

  	
   

  	
  57

  	
   

  	
  NA

  	
   

  	
  QUARANTINE

  	
   

  
	
  NCI studies

  	
   

  	
  PXD101 vials

  	
   

  	
  06H10

  	
   

  	
   

  	
   

  	
  5038 vials

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PXD101 vials

  	
   

  	
  2720(reserved for
  Canada)

  	
   

  	
   

  	
   

  	
  2720 vials

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

Schedule 2.1(h)

 

Contracts

 

	
  1.1

  	
  Clinical
  Contracts  

  

 

Master Trial Agreements
(MTA) with specific contract research organizations will be provided as copies
(not as originals) as these agreements are not project specific. The work
orders developed under the MTA are provided in original form. Attachment 1 to
this Schedule lists the clinical contracts and work orders.

 

	
  1.2

  	
  Quality
  Contracts  

  

 

Contract between Almac
and CuraGen will be provided in electronic format (not as the original) as the
contract is not project specific.

 

	
  1.3

  	
  Regulatory
  Contracts  

  

 

Contracts between CuraGen
and Technical Research Institute (TRI) and EDJ Associates.

 

 

Attachment 1

(to Schedule 2.1(h))

 

CONTRACT
INDEX

 

	
  Year

  	
   

  	
  Organization/Consultant

  	
   

  	
  Collaborator or

  Contact

  	
   

  	
  Project

  	
   

  	
  Antibody or

  CuraGen Protein ID

  	
   

  	
  Agreement

  	
   

  	
  Full Agreement Name

  	
   

  
	
  [**]

  	
   

  	
  [**]

  	
   

  	
  [**]

  	
   

  	
  [**]

  	
   

  	
  [**]

  	
   

  	
  [**]

  	
   

  	
  [**]

  	
   

  

 

Confidential Materials
omitted and filed separately with the Securities and Exchange Commission
pursuant to a request for confidential treatment.

 

A total of five pages were
omitted.

 

 

Schedule 3.3(a)

 

Estimated Prepaid Expenses

 

	
  Description

  	
   

  	
  Project Code #

  	
   

  	
  Prepaid Balance at

  April 21, 2008

  	
   

  
	
  [**]

  	
   

  	
  [**]

  	
   

  	
  [**]

  	
   

  
	
  [**]

  	
   

  	
  [**]

  	
   

  	
  [**]

  	
   

  
	
  [**]

  	
   

  	
  [**]

  	
   

  	
  [**]

  	
   

  
	
  [**]

  	
   

  	
  [**]

  	
   

  	
  [**]

  	
   

  
	
  [**]

  	
   

  	
  [**]

  	
   

  	
  [**]

  	
   

  
	
  [**]

  	
   

  	
  [**]

  	
   

  	
  [**]

  	
   

  
	
  [**]

  	
   

  	
  [**]

  	
   

  	
  [**]

  	
   

  
	
  [**]

  	
   

  	
  [**]

  	
   

  	
  [**]

  	
   

  
	
  [**]

  	
   

  	
  [**]

  	
   

  	
  [**]

  	
   

  
	
  [**]

  	
   

  	
   

  	
   

  	
  [**]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  [**]

  	
   

  

 

 

Schedule 3.3(c)

 

Estimated Open Payables

 

[**]

 

Confidential Materials
omitted and filed separately with the Securities and Exchange Commission
pursuant to request for confidential treatment.

 

A total of two pages were
omitted.

 

 

Schedule 3.5

 

Allocation

 

	
  Description

  	
   

  	
   

  	
   

  	
  Allocated

  Amount

  	
   

  
	
  Inventory
  of belinostat at April 21, 2008

  	
   

  	
   

  	
   

  	
  750,000

  	
   

  
	
  All
  other “Transferred Assets”

  	
   

  	
   

  	
   

  	
  37,847,147

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
  38,597,147

  	
  ^

  

 

	
  ^  Total purchase price calculated as follows:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Closing
  price of Topo Common Shares, April 17th

  	
   

  	
  11.80

  	
   

  	
   

  	
   

  
	
  Exchange
  rate DKK to USD April 17th

  	
   

  	
  4.6836

  	
   

  	
   

  	
   

  
	
  In
  USD

  	
   

  	
  2.5194295

  	
   

  	
   

  	
   

  
	
  Number
  of shares

  	
   

  	
  5,000,000

  	
   

  	
   

  	
   

  
	
  Value
  of shares

  	
   

  	
  12,597,147

  	
   

  	
   

  	
   

  
	
  Cash
  consideration

  	
   

  	
  26,000,000

  	
   

  	
   

  	
   

  
	
  Total
  Consideration

  	
   

  	
  38,597,147

  	
   

  	
   

  	
   

  

 

 

Schedule 5.1(b)(i)

 

Product Technical Information

 

The following is the
Table of Contents for the Product Technical Information provided to TopoTarget
on the Effective Date.

 

1                       Product Technical Information 

 

1.1              The Authorizations 

 

1.2              Tangible Embodiments of Products 

 

1.3              Documentation and data relating to the Regulatory
Trials 

 

1.3.1            Electronic Archives from Documentum 

 

1.3.2            Electronic Archives from Statistical Server (Troi) 

 

1.3.3            Oracle Clinical and AERS Safety Databases 

 

1.3.4            Future Products 

 

1.3.5            Quality Control Data 

 

1.3.6            Other Supportive Information 

 

1.3.7            Asian Discussions 

 

1.4              Laboratory Notebooks Relating to Patents 

 

Lab notebooks are included that
pertain to Joint Collaboration Technology filed in patents WO 06/082428 and WO
07/054719.

 

For lab notebooks that contained
only experiments relating to belinostat, the entire lab notebook has been
provided.

 

For lab notebooks that contained
experiments relating to belinostat and other CuraGen products, the notebook pages corresponding
to belinostat were photocopied and included

 

1.5              Backup Tape Creation and Restore Instructions 

 

1.6              Index of Troi DVDs for SAS Transport Files 

 

1.6.1            CLN-8 Disc 1 

 

 

1.6.2            CLN 8 Disc 2 

 

1.6.3            CLN 8 Disc 3 

 

1.6.4            CLN 8 Disc 4 

 

1.6.5            CLN-8 Disc 5 

 

1.6.6            CLN 4, CLN , CLN 9, CLN 16, CLN 17, CLN 6, TT20 and
TT30 

 

1.7              Index of Supportive Documents CD-ROM 

 

1.8              Index of Future Products CD-ROM 

 

1.9              Index of Recent 3 Months of Data to Archive 

 

1.10        Index of Asian Discussions CD-ROM 

 

1.11        Mapping of Paper Clinical Study Files 

 

 

Schedule 8.3

 

Required Government Approvals

 

None

 

 

 

Schedule 8.11

 

Material Changes

 

None

 

Schedule 9.3

 

Required Government Approvals

 

None

 

 

Schedule 9.8

 

Material Changes

 

None

 

 

Exhibit A

 

Transition Services Agreement

[See attached]

 

 

EXECUTION COPY

 

TRANSITION SERVICES AGREEMENT

 

This
Transition Services Agreement (this “Agreement”) is entered into as of April 21,
2008 by and between TopoTarget A/S, a company duly organized and existing under
the laws of Denmark and having offices at Symbion Science Park,
Fruebjergvej 3, 2100 Copenhagen, Denmark (“TopoTarget”), and
CuraGen Corporation, a company duly organized and existing under the laws of
the State of Delaware and having offices at 322 East Main Street, Branford,
Connecticut 06405, USA (“CuraGen”). As used herein, TopoTarget and
CuraGen are referred to as the “Parties.”

 

W I T N E S S E T H :

 

WHEREAS,
the Parties have entered into a Transfer and Termination Agreement (the “Transfer
and Termination Agreement”) of even date herewith, pursuant to which, among
other things, TopoTarget will acquire substantially all of CuraGen’s interests
in HDAC Inhibitors and in certain other related rights and assets, all on the
terms and conditions set forth in the Transfer and Termination Agreement;

 

WHEREAS,
capitalized terms used in this Agreement but not defined herein shall have the
meanings given to them in the Transfer and Termination Agreement and the rules of
construction set forth in the Transfer and Termination Agreement shall apply to
this Agreement; and

 

WHEREAS,
pursuant to the terms of the Transfer and Termination Agreement, CuraGen has
agreed to provide to TopoTarget certain transition services.

 

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

 

1.                    Services Provided. 

 

1.1              Commencing on the Effective Date, subject
to the terms hereof, CuraGen shall provide to TopoTarget those services set
forth on Exhibit A with respect to the HDAC Inhibitor development
program (the “Services”) and allocating resources as set forth in Section 1.2
below, until such Services are terminated in accordance with the terms hereof. 

 

1.2              CuraGen shall allocate the following
resources to performance of Services hereunder: (a) for the period
beginning on the Effective Date and ending May 31, 2008, [**] FTEs; (b) for
the period beginning on June 1, 2008 and ending June 30, 2008, [**]
FTEs; and (c) for the period beginning July 1, 2008 and ending on the
Termination Date, [**] of an FTE. For purposes of this Agreement, an “FTE”
shall mean the full-time equivalent of one person performing scientific,
technical, project management and/or managerial work for the specified period. 

 

1.3              The Services shall be consistent with
CuraGen’s standard processes, shall not include any Services that would be
unlawful for CuraGen to provide, and shall not include the making of strategic
business decisions for or general management of TopoTarget. 

 

 

1.4              On the Effective Date, CuraGen and
TopoTarget will each designate an appropriate point of contact for all
questions and issues relating to the Services during the term of this Agreement
(“Transition Managers”). The Transition Managers may meet from time to
time at CuraGen’s facilities to discuss issues relating to the Services. 

 

1.5              TopoTarget shall assume performance of
all activities with respect to the HDAC Inhibitor development program other
than the Services as of the Effective Date, and shall further assume
performance of the Services on or prior to the Termination Date (as defined
below). CuraGen shall have no obligation to perform any services other than the
Services after the Effective Date, and shall have no obligation to perform the
Services after the Termination Date. In furtherance of the foregoing,
TopoTarget shall use reasonable efforts to make or obtain any approvals,
permits and licenses and implement any systems as may be necessary for it to
provide the Services independently as soon as reasonably practicable following
the Effective Date, but in no event later than the Termination Date. 

 

1.6              Without limiting Section 1.5 above,
all activities related to the HDAC Inhibitor development program (including but
not limited to communications, clinical, regulatory, drug safety, chemistry,
manufacturing and controls, QA, project management, pharmacokinetics, financial
management, and intellectual property) being performed by CuraGen immediately
prior the Effective Date will be transferred from CuraGen to TopoTarget, after
discussion and agreement by the Transition Managers, according to the following
schedule: 

 

1.6.1                                 [**]% of such program activity shall be transferred on
or before five (5) business days after the Effective Date; 

 

1.6.2                                 [**]% of such program activity shall be transferred on
or before May 31, 2008; and 

 

1.6.3                                 [**]% of such program activity shall be transferred on
or before June 30, 2008. 

 

1.7              TopoTarget shall provide CuraGen with
such information and documentation in TopoTarget’s possession or control, and
provide any other assistance, as is reasonably necessary for CuraGen to perform
the Services. 

 

1.8              CuraGen shall operate and maintain until May 21,
2008, in the same manner as operated and maintained as of the Effective Date,
all software and databases used by CuraGen as of the Effective Date (including
without limitation the Oracle software) to collect, store and manage any and
all data generated by or on behalf 

 

2

 

 

of CuraGen with
respect to HDAC Inhibitors, including without limitation all data resulting
from clinical trials relating thereto. CuraGen shall provide TopoTarget with
reasonable access to such software and databases (including remote access),
upon TopoTarget’s request.

 

1.9              CuraGen hereby agrees to submit to the
FDA and the Canadian Bureau of Pharmaceutical Sciences, as applicable, letters
attached hereto as Exhibits B1, B2 and B3 requesting transfer and
assignment of the authorizations and files referenced therein from CuraGen to
TopoTarget, and TopoTarget hereby agrees to submit to the FDA and the Canadian
Bureau of Pharmaceutical Sciences, as applicable, the letters attached hereto
as Exhibits C1, C2 and C3 accepting such transfers and assignments, in all
cases within five (5) Business Days following the Effective Date. CuraGen
and TopoTarget shall cooperate regarding the transfer and assignment from
CuraGen to TopoTarget of all investigational new drug applications and other
comparable permits and authorizations with regulatory authorities outside the
United States relating to the HDAC Inhibitor development program as soon as
reasonably practicable. In addition, CuraGen agrees to use its commercially
reasonable efforts to assist TopoTarget in the transfer and continuation of the
clinical development program related to the Product with minimal interruption
to ongoing clinical trials in progress as of the Effective Date.

 

1.10        Subject to the terms and conditions of
this Agreement, all Services provided hereunder will be terminated on or before
the Termination Date. CuraGen shall be under no obligation to provide any
Services to TopoTarget after the Termination Date, except to the extent agreed
in writing by CuraGen and TopoTarget pursuant to Section 7 below.

 

1.11        CuraGen hereby agrees to file with the
FDA, within five (5) Business Days following the Effective Date, the
Request for Special Protocol Assessment letter, a form of which is attached
hereto as Exhibit D, in such form and with such changes as TopoTarget
shall reasonably request.

 

2.                         Performance Standard.

 

2.1              In performing the Services, CuraGen shall
use reasonable efforts to provide, or ensure that any applicable Third Party
will provide, a similar level of service and use the same degree of care and
skill as it exercises in providing similar services for itself from the
Effective Date until the Termination Date. All Services shall be performed in
substantial compliance with applicable law. The foregoing is subject to
Section 2.2 below.

 

2.2              CuraGen has disclosed to TopoTarget and
TopoTarget hereby acknowledges that CuraGen has outsourcing relationships with
Third Parties (“Service Providers”) who may, subject to Section 17
and in accordance with Section 1.1 hereof, in furtherance of CuraGen’s
obligations under this Agreement, be delivering Services to TopoTarget. To the
extent required under any such Service Provider

 

3

 

agreements governing such
Services, or otherwise as requested by CuraGen in its reasonable discretion and
subject to Section 17 hereof, TopoTarget agrees to cooperate with CuraGen
and will assist CuraGen in obtaining Third Party consents, licenses,
sublicenses, or approvals necessary to permit CuraGen or the applicable Service
Provider to perform or otherwise make the Services available to TopoTarget.
Without limitation to the foregoing, CuraGen shall make available to TopoTarget
as part of the Services those services CuraGen receives pursuant to the
Clinical Trial Agreement by and between CuraGen and the Division of Cancer
Treatment and Diagnosis of the National Cancer Institute (NCI) dated as of August 1,
2004 (“NCI Agreement”). During the term hereof the Parties shall
cooperate to obtain for TopoTarget an arrangement whereby TopoTarget may
continue to receive the benefits of the NCI Agreement after the Termination
Date, either via assignment of the NCI Agreement to TopoTarget or otherwise. 

 

2.3              EXCEPT AS PROVIDED IN THIS AGREEMENT,
NEITHER PARTY MAKES ANY WARRANTIES OR REPRESENTATIONS OF ANY KIND, EXPRESS OR
IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE, WITH RESPECT TO ANY SERVICES PROVIDED HEREUNDER. 

3.                    Fees. 

 

3.1              TopoTarget shall pay to CuraGen as
consideration for the Services an amount equal to (a) the FTE Rate
multiplied by (b) the number of FTEs (or fraction thereof) allocated to
the performance of Services in accordance with Section 2.2 for the
applicable period multiplied by (c) a fraction, the numerator of which is
the number of days in the applicable period and the denominator of which is
365. For purposes of this Agreement, the FTE Rate shall mean [**] Dollars
($[**]). 

 

3.2              CuraGen shall invoice TopoTarget for the
Services provided hereunder in arrears on a monthly basis. TopoTarget shall pay
any invoice for Services promptly but in no event later than thirty
(30) days after the date of invoice. Late payments due hereunder shall
bear interest at the prime rate then in effect, plus five percent (5%) per
annum or the maximum amount allowed by law, whichever is less. 

 

4.                    Confidentiality. The Parties agree that information
disclosed in connection with this Agreement shall be governed by the terms and
conditions of Section 10.6 of the Transfer and Termination Agreement. 

 

5.                    Ownership. This Agreement and the performance of the Services
hereunder will not affect the ownership of any of the Transferred Assets or
Excluded Assets allocated in the Transfer and Termination Agreement. All
Inventions and Know-How that are conceived and/or reduced to practice by or on
behalf of CuraGen or its Affiliates, whether alone or with others, that (i) result
from its performance of the Services, including the conduct of the HDAC
Inhibitor program, or (ii) relate to the Transferred Assets disclosed to
or 

 

4

 

accessed by CuraGen in
connection with this Agreement, whether during or after the Term, and all
Patents and other intellectual property rights relating thereto (collectively,
the “TopoTarget Property”), shall be disclosed promptly to TopoTarget and shall
be considered a “work made for hire” (as that term is defined under Section 101
of the U.S. Copyright Act, 17 U.S.C. § 101) with TopoTarget being the person
for whom the work was prepared and the TopoTarget Property shall be the sole
and exclusive property of TopoTarget. In the event that any TopoTarget Property
is deemed not to be a “work made for hire”, CuraGen agrees to assign, and
hereby does assign, unconditionally and irrevocably to TopoTarget, all of CuraGen’s
right, title and interest in and to the TopoTarget Property. No compensation or
other payments in addition to the charges for the Services payable pursuant to Section 3
shall be payable in respect of the ownership by, or assignment to, TopoTarget of
TopoTarget Property. CuraGen has entered into a binding agreement with each of
its employees and agents assigning to CuraGen any and all rights of such
employees and agents in any intellectual property conceived of or reduced to
practice by such employees and agents. Without limiting the foregoing, neither
party will gain, by virtue of this Agreement or the Services hereunder, by
implication or otherwise, any rights of ownership of any property or
intellectual property rights owned by the other. 

 

6.                    Limitation of Liabilities. 

 

6.1              Disclaimer. IN NO EVENT SHALL EITHER PARTY OR CURAGEN’S SERVICE
PROVIDERS BE LIABLE FOR ANY LOST PROFITS OR CONSEQUENTIAL, PUNITIVE, SPECIAL OR
OTHER INDIRECT DAMAGES EXCEPT FOR THOSE CAUSED BY GROSS NEGLIGENCE, WILFUL
MISCONDUCT OR ANY BREACH OF SECTION 4. 

 

6.2              Limitation. IN NO EVENT SHALL CURAGEN’S OR ITS SERVICE
PROVIDERS’ LIABILITY FOR ANY ACTION, REGARDLESS OF THE FORM OF ACTION,
WHETHER IN TORT OR CONTRACT, ARISING UNDER THIS AGREEMENT EXCEED SEVENTY-FIVE
PERCENT (75%) OF THE AMOUNT INVOICED TO TOPOTARGET BY CURAGEN FOR SERVICES
HEREUNDER IN THE TWELVE (12) MONTH PERIOD IMMEDIATELY PRECEDING THE
CIRCUMSTANCE THAT GAVE RISE TO SUCH LIABILITY EXCEPT FOR LIABILITIES CAUSED BY
GROSS NEGLIGENCE, WILFUL MISCONDUCT OR ANY BREACH OF SECTION 4. 

 

7.                    Term, Extension and Termination. 

 

7.1              Term. This Agreement shall become effective on the
Effective Date and, unless sooner terminated in accordance with the terms
hereof, shall continue in effect until December 31, 2008 (the “Term”).
The date of expiration of the Term, or of termination in accordance with Section 7.2
below, shall be the “Termination Date.” 

 

5

 

7.2              Termination. This Agreement may be terminated
earlier in accordance with any of the following provisions: 

 

7.2.1                                 By mutual written consent of both CuraGen and
TopoTarget; 

 

7.2.2                                 By TopoTarget on thirty (30) days written notice
to CuraGen; 

 

7.2.3                                 By either party entitled to the benefit of the
performance of any of the obligations under this Agreement (the “Non-Defaulting
Party”), if the other party (the “Defaulting Party”) shall fail to
perform or default in such performance. The Non-Defaulting Party must give
written notice to the Defaulting Party specifying the nature of such failure or
default and stating that the Non-Defaulting Party intends to terminate this
Agreement with respect to the Defaulting Party if such failure or default is
not cured within thirty (30) days after such written notice. If any
failure or default so specified is not cured within such thirty (30) day
period, the Non-Defaulting Party may elect to immediately terminate this
Agreement with respect to the Defaulting Party; provided, however,
that if the failure or default relates to a dispute contested in good
faith by the Defaulting Party, the Non-Defaulting Party may not terminate this
Agreement pending the resolution of such dispute. Such termination shall be
effective upon provision of written notice of termination from the
Non-Defaulting Party to the Defaulting Party and shall be without prejudice to
any other remedy which may be available to the Non-Defaulting Party against the
Defaulting Party. 

 

7.3              Effect of Termination. TopoTarget specifically agrees and
acknowledges that all obligations of CuraGen to provide Services hereunder
shall immediately cease on the Termination Date, or such earlier date of
termination pursuant to Section 7.2, and CuraGen’s obligations to provide
all of the Services shall immediately cease upon the termination of this
Agreement. 

 

7.4              Survival. Notwithstanding the expiration or early termination
of this Agreement or any Services hereunder, Sections 1.8, 2.3, 3, 4, 5,
5, 7, 8, 9, 11, 12, 13, 15, 16, 17, 18, 19 and 20 will survive the expiration
or termination of this Agreement for any reason. The expiration or termination
of this Agreement for any reason will not release either party from any
liabilities or obligations set forth herein which (a) the parties have
expressly agreed will survive any such expiration or termination or (b) remain
to be performed or by their nature would be intended to be applicable following
any such expiration or termination. 

 

8.                    Independent Contractors. The parties hereto understand and agree
that this Agreement does not make either of them an agent or legal
representative of the other for any purpose whatsoever. Neither party is
granted, by this Agreement or otherwise, any right or authority to assume or
create any obligation or responsibilities, express or implied, on behalf of or
in the name of the other party, or to bind the other party in any manner 

 

6

 

whatsoever. The parties
expressly acknowledge that (a) CuraGen is an independent contractor with
respect to TopoTarget in all respects, including the provision of the Services,
and (b) that the parties are not partners, joint venturers, employees or
agents of or with each other. 

 

9.                    Beneficiary of Services; No Third Party
Beneficiaries.
This Agreement is for the sole benefit of the parties hereto, and nothing
expressed or implied shall give or be construed to give any person any legal or
equitable rights hereunder, whether as a Third Party beneficiary or otherwise.
CuraGen and TopoTarget agree, and TopoTarget represents and warrants, that the
Services will be provided solely to, and will be used solely by, TopoTarget, in
each case only in connection with the Contributed Assets and the Assumed
Liabilities. TopoTarget shall not resell or provide the Services to any other
Person, or permit the use of the Services by any Person other than TopoTarget. 

 

10.              Force Majeure. Neither party will be held liable to
the other for any delay or failure of performance where such delay or failure
results from events beyond that party’s control, including acts of God, earthquakes,
fires, floods, civil disturbance, strikes, labor disputes, and lawful
governmental action. 

 

11.              Entire Agreement. This Agreement and the Transfer and
Termination Agreement constitute the entire agreement of the parties with
respect to the subject matter hereof, and supersede all prior agreements,
understandings and negotiations, both written and oral, between the parties
with respect to the subject matter hereof. 

 

12.              Amendment; Waiver. This Agreement may be amended, and any
provision of this Agreement may be waived, if but only if such amendment or
waiver is in writing and signed, in the case of an amendment, by CuraGen and
TopoTarget, or in the case of a waiver, by the party against whom the waiver is
effective. No failure or delay by any party in exercising any right, power or
privilege under this Agreement shall operate as a waiver thereof nor shall any
single or partial exercise thereof preclude any other or further exercise
thereof or the exercise of any other right, power or privilege. 

 

13.              Notices. All notices, requests, demands and other
communications hereunder shall be in writing and shall be deemed to have been
duly given (i) by personal delivery, (ii) upon transmission by
facsimile machine if a confirmation sheet is emitted from such machine or (iii) upon
delivery by an internationally recognized overnight courier service, each to
the other Party at the following address (or at such other address as shall be
given in writing by any Party to the other in accordance with this Section 13):

 

	
   

  	
   

  	
   

  
	
   

  	
  (a)    if
  to TopoTarget:

  	
  Symbion Science Park

  
	
   

  	
   

  	
  Fruebjergvej 3, 2100

  
	
   

  	
   

  	
  2100 Copenhagen

  
	
   

  	
   

  	
  Denmark

  
	
   

  	
   

  	
  Attention: Chief
  Executive Officer

  
	
   

  	
   

  	
  Facsimile No.:
  +45-39-179-492

  

 

7

 

	
   

  	
   

  	
   

  
	
   

  	
  with a copy to:

  	
  David E.
  Schulman, Esq.

  
	
   

  	
   

  	
  Dechert LLP

  
	
   

  	
   

  	
  1775 I Street, N.W.

  
	
   

  	
   

  	
  Washington, D.C.
  20006-2401

  
	
   

  	
   

  	
  United States of
  America

  
	
   

  	
   

  	
  Facsimile No.: +1
  202-261-3333

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)    if
  to CuraGen:

  	
  322 East Main Street

  
	
   

  	
   

  	
  Branford, Connecticut
  06405

  
	
   

  	
   

  	
  United States of America

  
	
   

  	
   

  	
  Attention:

  
	
   

  	
   

  	
  Facsimile No.:
  +1-203-483-2552

  
	
   

  	
   

  	
   

  
	
   

  	
  with a copy to:

  	
  WilmerHale

  
	
   

  	
   

  	
  399 Park Avenue

  
	
   

  	
   

  	
  New York, New York
  10022

  
	
   

  	
   

  	
  United States of
  America

  
	
   

  	
   

  	
  Attention: Steven D.
  Singer, Esq.

  
	
   

  	
   

  	
  Facsimile No.: +1
  617-526-5000

  

 

14.              Non Assignability. Neither party may, directly or
indirectly, in whole or in part, either by operation of law or otherwise,
assign or transfer this Agreement without the other party’s prior written
consent. Any attempted assignment, transfer or delegation without such prior
written consent will be void. 

 

15.              Counterparts; Effectiveness. This Agreement may be executed in two
or more counterparts, each of which shall be deemed to be an original and all
of which together shall be deemed to be one and the same instrument. Copies of
executed counterparts transmitted by telecopy, telefax or other electronic
transmission service shall be considered original executed counterparts for
purposes hereof, provided that receipt of copies of such counterparts is
confirmed. This Agreement shall become effective when each party has received a
counterpart hereof signed by the other party hereto. 

 

16.              Severability. If any provision of this Agreement
shall be declared by any court of competent jurisdiction to be illegal, void or
unenforceable, all other provisions of this Agreement shall not be affected and
shall remain in full force and effect, and CuraGen and TopoTarget shall
negotiate in good faith to replace such illegal, void or unenforceable
provision with a provision that corresponds as closely as possible to the
intentions of the parties as expressed by such illegal, void, or unenforceable
provision. 

 

17.              Subcontractors and Outsourcing. Except with respect to Third Parties
that are counterparties to any Contracts included in the Transferred Assets,
CuraGen shall not have the right to subcontract or outsource any of its
obligations hereunder without the express written consent of TopoTarget. 

 

8

 

18.              Other Agreements. This Agreement is not intended to amend
or modify, and should not be interpreted to amend or modify in any respect the
rights and obligations of CuraGen and TopoTarget under the Transfer and
Termination Agreement. 

 

19.              Taxes. The fees described in Section 3 are exclusive
of value added taxes, sales taxes and any other similar taxes. TopoTarget will
be responsible for all taxes (other than taxes based on net income or net
profits) imposed by applicable taxing authorities on the provision of Services
to TopoTarget hereunder. If CuraGen is required to pay such taxes, TopoTarget
shall promptly reimburse CuraGen therefor. 

 

20.              Governing Law. This Agreement shall be governed by,
and construed in accordance with, the laws of the State of New York without
regard to its choice of law rules. With respect to any suit, action or
proceeding arising out of or relating to this Agreement (each, a “Proceeding”),
each Party hereto irrevocably (i) agrees and consents to submit to the
non-exclusive jurisdiction of the United States District Court for the Southern
District of New York, United States of America, and (ii) waives, and
agrees not to assert by way of motion, defense, or otherwise, in any such
Proceeding, any claim that it is not subject personally to the jurisdiction of
the above-named courts, that its property is exempt or immune from attachment
or execution, that the Proceeding is brought in an inconvenient forum, that the
venue of the Proceeding is improper, or that this Agreement or the transactions
contemplated by this Agreement may not be enforced in or by any of the
above-named courts. Notwithstanding the immediately preceding sentence, either
Party may seek injunctive or similar equitable relief as to any matter arising
out of or relating to this Agreement in any court of competent jurisdiction. 

 

9

 

IN WITNESS WHEREOF, the
parties hereto have executed this Transition Services Agreement as of the day
and year first above written.

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CURAGEN CORPORATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Timothy M. Shannon

  
	
   

  	
   

  	
  Name:

  	
  Timothy M. Shannon

  
	
   

  	
   

  	
  Title:

  	
  President &
  CEO

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TOPOTARGET A/S

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Peter Buhl

  	
   

  	
  /s/ Hakan Astrom

  
	
   

  	
   

  	
  Name:

  	
  Peter Buhl

  	
   

  	
  Hakan Astrom

  
	
   

  	
   

  	
  Title:

  	
  CEO

  	
   

  	
  Chairman

  
								

 

[Signature page to Transition
Services Agreement]

 

 

EXHIBIT A

SERVICES

 

	
  1.

  	
  For
  the period 4/21/08-5/31/08

  
	
   

  	
   

  
	
   

  	
  a)

  	
  Continued
  medical management and preparation for transition of CLN6, CLN8, CLN-9

  
	
   

  	
  b)

  	
  Submission
  of CLN 19 SPA and facilitation of response to issues and feedback from FDA
  with completion of transfer of support by end of period

  
	
   

  	
  c)

  	
  Continued
  active regulatory support of belinostat in the US and CDN and preparation for
  transfer of regulatory activities regarding belinostat in the US and CDN

  
	
   

  	
  d)

  	
  Continued
  drug safety support and reporting for belinostat in the US and preparation
  for transfer

  
	
   

  	
  e)

  	
  Continued
  QA support of belinostat in US and preparation for transfer

  
	
   

  	
  f)

  	
  Continued
  alliance management with NCI and transfer of NCI agreement to TopoTarget;
  similar with MTAs in the US

  
	
   

  	
   

  	
   

  
	
  2.

  	
  For
  the period 6/1/08-6/30/08

  
	
   

  	
   

  
	
   

  	
  a)

  	
  Complete
  transition of all CLN6, CLN8, CLN-9 support to TopoTarget

  
	
   

  	
  b)

  	
  Complete
  transfer of regulatory activities regarding belinostat in the US and CDN to
  TopoTarget

  
	
   

  	
  c)

  	
  Complete
  transfer of drug safety in the US to TopoTarget

  
	
   

  	
  d)

  	
  Complete
  QA support of belinostat in US to TopoTarget

  
	
   

  	
  e)

  	
  Continued
  alliance management with NCI and transfer of NCI agreement to TopoTarget;
  similar with MTAs in the US

  
	
   

  	
   

  	
   

  
	
  3.

  	
  For
  the period 7/1/08-12/31/08

  
	
   

  	
   

  	
   

  
	
   

  	
  a)

  	
  Continued
  alliance management with NCI and transfer of NCI agreement to TopoTarget;
  similar with MTAs in the US

  
	
   

  	
  b)

  	
  Point
  person for resolution of any issues post transfer

  

 

 

EXHIBIT B-1

 

	
  [LOGO]

  	
   

  	
   

  
	
   

  	
   

  	
  322 East Main Street, 3rd Floor

  
	
   

  	
   

  	
  Branford, CT 06405

  
	
   

  	
   

  	
  (203) 481-1104

  
	
   

  	
   

  	
  (203) 315-2668 Fax

  
	
   

  	
   

  	
  www.curagen.com

  
	
  Robert Justice, MD

  	
   

  	
   

  
	
  Food and Drug
  Administration

  	
   

  	
  15 Apr 2008

  
	
  Center for Drug
  Evaluation and Research

  	
   

  	
   

  
	
  Division of Drug
  Oncology Products

  	
   

  	
   

  
	
  5901-B Ammendale Road

  	
   

  	
   

  
	
  Beltsville, MD
  20705-1266

  	
   

  	
   

  

 

IND
70,789, Serial #0

General
Correspondence: Change in ownership

 

Dear Dr. Justice:

 

Reference is made to our
IND 70,789 for belinostat (PXD101)

 

CuraGen notifies the
Agency that all rights to the application / IND have been transferred from
CuraGen Corporation to TopoTarget as new owner, effective <date>. A
complete copy of the IND, protocols, reports and amendments, regulatory
correspondence and of the data in support of the application was provided to
TopoTarget.

 

The name of the
authorized representative and the address of the new owner are:

 

<Name of TopoTarget official representative
(CuraGen Head of Regulatory Affairs? or other U.S. representative? ), and
TopoTarget address>

 

Per line 13 of the 1571
form, updated statements containing the name and address of the contract
research organizations, identification of the clinical study, and a list of the
sponsor obligations transferred to the contract research organization were
previously submitted on 27 Nov 2007 (SN 0107).

 

 

 

 

If you have any questions
regarding this submission, please contact me by phone (203) 871-4339,
facsimile (203) 315-2668 or email hscholl@curagen.com; or alternatively
contact Kimberly Fabrizio by phone (203) 871-4251, facsimile
(203) 315-2668 or e-mail kfabrizio@curagen.com.

 

Sincerely,

 

Hans Scholl, PhD

Vice President,
Regulatory Affairs and Quality Assurance

CuraGen Corporation

 

 

	
  DEPARTMENT OF HEALTH AND HUMAN
  SERVICES

  FOOD AND DRUG ADMINISTRATION

   

  INVESTIGATIONAL NEW DRUG
  APPLICATION (IND)

  (TITLE 21, CODE OF FEDERAL REGULATIONS (CFR) PART 312)

  	
   

  	
  Form Approved: OMB No. 0910-0014.

  Expiration Date: May 31, 2009

  See OMB Statement on Reverse.

  
	
   

  	
  NOTE: No drug may be shipped or
  clinical investigation begun until an IND for that investigation is in effect
  (21 CFR 312.40).

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  NAME
  OF SPONSOR

  	
   

  	
  2.
  DATE OF SUBMISSION

  
	
   

  	
   

  	
  CuraGen Corporation

   

  	
   

  	
      04/15/2008

  
	
  3.

  	
   

  	
  ADDRESS
  (Number, Street, City, State and Zip Code)

  	
   

  	
  4.
  TELEPHONE NUMBER (Include Area Code)

  
	
   

  	
   

  	
  322 East Main Street,
  Branford, CT 06405

   

  	
   

  	
      (203)
  871-4339

  
	
  5.

  	
   

  	
  NAME(S) OF
  DRUG (Include all available names: Trade,
  Generic, Chemical, Code)

  	
   

  	
  6.
  IND NUMBER (If previously assigned)

  
	
   

  	
   

  	
  belinostat (PXD101)

   

  	
   

  	
      70,789

  
	
  7.

  	
   

  	
  INDICATION(S) (Covered by this submission)

  multiple cancer
  indications

   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  PHASE(S) OF
  CLINICAL INVESTIGATION TO BE CONDUCTED:

  o PHASE
  1    x PHASE 2
      oPHASE
  3    o OTHER

  	
   

  
	
   

  	
   

  	
   

  	
  (Specify)

  
	
  9.

  	
   

  	
  LIST
  NUMBERS OF ALL INVESTIGATIONAL NEW DRUG APPLICATIONS (21 CFR Part 312), NEW DRUG OR
  ANTIBIOTIC APPLICATIONS (21 CFR Part 314),
  DRUG MASTER FILES (21 CFR Part 314.420),
  AND PRODUCT LICENSE APPLICATIONS (21 CFR Part 601)
  REFERRED TO IN THIS APPLICATION.

  72,862

  72,990

  74,532

   

  
	
  10.

  	
   

  	
  IND submission should be consecutively numbered. The
  initial IND should be numbered “Serial number: 0000.” The next submission
  (e.g., amendment, report, or correspondence) should be numbered “Serial
  Number: 0001.” Subsequent submissions should be numbered consecutively in the
  order in which they are submitted.

   

  	
  SERIAL NUMBER

   0    1    2    0 

  
	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  THIS
  SUBMISSION CONTAINS THE FOLLOWING: (Check all that apply)

  o INITIAL
  INVESTIGATIONAL NEW DRUG APPLICATION
  (IND)              o RESPONSE TO
  CLINICAL HOLD

  
	
   

  	
   

  	
   

  
	
  PROTOCOL
  AMENDMENT(S):

  	
  INFORMATION
  AMENDMENT(S):

  	
  IND
  SAFETY REPORT(S):

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  NEW
  PROTOCOL

  	
  o
  CHEMISTRY/MICROBIOLOGY

  	
  o INITIAL
  WRITTEN REPORT

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  CHANGE
  IN PROTOCOL

  	
  o PHARMACOLOGY/TOXICOLOGY

  	
  o FOLLOW-UP TO
  A WRITTEN REPORT

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  NEW
  INVESTIGATOR

  	
  o CLINICAL

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  RESPONSE
  TO FDA REQUEST FOR INFORMATION

  	
  o ANNUAL REPORT

  	
  x GENERAL CORRESPONDENCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  REQUEST
  FOR REINSTATEMENT OF IND THAT IS WITHDRAWN,

  	
  x OTHER  

  	
  Change in ownership

  
	
   

  	
   

  	
  INACTIVATED,
  TERMINATED OR DISCONTINUED

  	
   

  	
  (Specify)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHECK ONLY IF APPLICABLE

  
	
   

  
	
  JUSTIFICATION STATEMENT MUST BE SUBMITTED WITH
  APPLICATION FOR ANY CHECKED BELOW. REFER TO THE CITED CFR SECTION FOR
  FURTHER INFORMATION.

  
										

 

	
  o  TREATMENT IND 21 CFR
  312.35(b)

  	
  o  TREATMENT PROTOCOL 21 CFR 312.35(a)

  	
  o  CHARGE REQUEST/NOTIFICATION 21 CFR312.7(d)

  

 

 

	
  FOR FDA USE ONLY

  
	
  CDR/DBIND/DGD
  RECEIPT STAMP

  	
  DDR
  RECEIPT STAMP

  	
  DIVISION
  ASSIGNMENT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  IND
  NUMBER ASSIGNED:

  

 

	
   

  	
   

  	
  CONTENTS OF APPLICATION

  This application contains the following items: (Check all that apply)

  
	
  x

  	
   

  	
  1. Form FDA 1571 [21 CFR 312.23(a)(1)]

  
	
  o

  	
   

  	
  2. Table of Contents [21 CFR 312.23(a)(2)]

  
	
  o

  	
   

  	
  3. Introductory
  statement [21 CFR 312.23(a)(3)]

  
	
  o

  	
   

  	
  4. General
  Investigational plan [21 CFR 312.23(a)(3)]

  
	
  o

  	
   

  	
  5. Investigator’s
  brochure [21 CFR 312.23(a)(5)]

  
	
  o

  	
   

  	
  6. Protocol(s) [21 CFR 312.23(a)(6)]

  
	
   

  	
   

  	
  o

  	
   

  	
  a. Study protocol(s) [21 CFR 312.23(a)(6)]

  
	
   

  	
   

  	
  o

  	
   

  	
  b. Investigator data [21 CFR 312.23(a)(6)(iii)(b)] or
  completed Form(s) FDA 1572

  
	
   

  	
   

  	
  o

  	
   

  	
  c. Facilities data [21 CFR 312.23(a)(6)(iii)(b)] or
  completed Form(s) FDA 1572

  
	
   

  	
   

  	
  o

  	
   

  	
  d. Institutional Review
  Board data [21 CFR 312.23(a)(6)(iii)(b)]
  or completed Form(s) FDA 1572

  
	
  o

  	
   

  	
  7. Chemistry,
  manufacturing, and control data [21 CFR
  312.23(a)(7)]

  
	
   

  	
   

  	
  o

  	
   

  	
  Environmental
  assessment or claim for exclusion [21 CFR
  312.23(a)(7)(iv)(e)]

  
	
  o

  	
   

  	
  8. Pharmacology and
  toxicology data [21 CFR 312.23(a)(8)]

  
	
  o

  	
   

  	
  9. Previous human
  experience [21 CFR 312.23(a)(9)]

  
	
  o

  	
   

  	
  10. Additional
  information [21 CFR 312.23(a)(10)]

   

  
	
  13.

  	
   

  	
  IS
  ANY PART OF THE CLINICAL STUDY TO BE CONDUCTED BY A CONTRACT RESEARCH
  ORGANIZATION?  x
  YES  o NO

   

  IF
  YES, WILL ANY SPONSOR OBLIGATIONS BE TRANSFERRED TO THE CONTRACT RESEARCH
  ORGANIZATION?   x
  YES  o NO

   

  IF
  YES, ATTACH A STATEMENT CONTAINING THE NAME AND ADDRESS OF THE CONTRACT
  RESEARCH ORGANIZATION, IDENTIFICATION OF THE CLINICAL STUDY, AND A LISTING OF
  THE OBLIGATIONS TRANSFERRED.

  
	
  14.

  	
   

  	
  NAME
  AND TITLE OF THE PERSON RESPONSIBLE FOR MONITORING THE CONDUCT AND PROGRESS
  OF THE CLINICAL INVESTIGATIONS

  
	
   

  	
   

  	
  Timothy M. Shannon, MD

  President and Chief
  Executive Officer, CuraGen Corporation

   

  
	
  15.

  	
   

  	
  NAME(S) AND
  TITLE(S) OF THE PERSON(S) RESPONSIBLE FOR REVIEW AND EVALUATION OF
  INFORMATION RELEVANT TO THE SAFETY OF THE DRUG

  
	
   

  	
   

  	
  Timothy M. Shannon, MD

  President and Chief
  Executive Officer, CuraGen Corporation

   

  
	
  I
  agree not to begin clinical investigations until 30 days after FDA’s receipt
  of the IND unless I receive earlier notification by FDA that the studies may
  begin. I also agree not to begin or continue clinical investigations covered
  by the IND if those studies are placed on clinical hold. I agree that an
  Institutional Review Board (IRB) that complies with the requirements set
  fourth in 21 CFR Part 56 will be responsible for initial and continuing
  review and approval of each of the studies in the proposed clinical
  investigation. I agree to conduct the investigation in accordance with all
  other applicable regulatory requirements.

   

  
	
  16.

  	
   

  	
  NAME
  OF SPONSOR OR SPONSOR’S AUTHORIZED 

  	
  17.

  	
  SIGNATURE
  OF SPONSOR OR 

  
	
   

  	
   

  	
  REPRESENTATIVE

  	
   

  	
  SPONSOR’S
  AUTHORIZED 

  
	
   

  	
   

  	
  Hans Scholl, PhD

  Vice President,
  Regulatory Affairs and QA CuraGen Corporation

  	
   

  	
  REPRESENTATIVE

  
							

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  18.

  	
   

  	
  ADDRESS
  (Number, Street, City, State and Zip Code)  

  	
  19.

  	
   

  	
  TELEPHONE
  NUMBER (Include Area Code)  

  	
  20.

  	
  DATE

  	 

	
   

  	
   

  	
  322 East Main Street

  Branford, CT 06405

  	
   

  	
   

  	
  (203) 871-4339

  	
   

  	
  04/15/2008

  	 

	
   

  	
   

  	
   

  	 

	
  (WARNING: A willfully
  false statement is a criminal offense. U.S.C. Title 18, Sec. 1001.)

  	 

	
   

  	 

	
  Public
  reporting burden for this collection of information is estimated to average
  100 hours per response, including the time for reviewing instructions,
  searching existing data sources, gathering and maintaining the data needed,
  and completing reviewing the collection of information. Send comments
  regarding this burden estimate or any other aspect of this collection of
  information, including suggestions for reducing this burden to:

  	 

	
   

  	 

	
  Department of Health and Human Services

  Food and Drug Administration  

  Center for Drug Evaluation and Research

  Central Document Room  

  5901-B Ammendale Road  

  Beltsville, MD 20705-1266

  	
  Department
  of Health and Human Services

  Food
  and Drug Administration

  Center
  for Biologics Evaluation and Research (HFM-99)

  1401
  Rockville Pike

  Rockville,
  MD 20852-1448

  	
  “An
  agency may not conduct or sponsor, and a person is not required to respond
  to, a collection of information unless it displays a currently valid OMB
  control number.”

  	 

	
   

  	
   

  	
   

  
	
  Please DO NOT RETURN this application to this
  address.

  	 

											

 

 

[LOGO]

 

EXHIBIT B-2

 

	
   

  	
   

  	
  322 East Main Street, 3rd Floor

  
	
   

  	
   

  	
  Branford, CT 06405

  
	
   

  	
   

  	
  (203) 481-1104

  
	
   

  	
   

  	
  (203) 315-2668 Fax

  
	
   

  	
   

  	
  www.curagen.com

  
	
   

  	
   

  	
   

  
	
  DMF Administrator

  	
   

  	
  08 Nov 2007

  
	
  Bureau of
  Pharmaceutical Sciences

  	
   

  	
   

  
	
  Therapeutic Products
  Directorate

  	
   

  	
   

  
	
  Health Canada Finance
  Building

  	
   

  	
   

  
	
  Tunney’s Pasture (A.L.
  0201D)

  	
   

  	
   

  
	
  Ottawa, Ontario

  	
   

  	
   

  
	
  Canada

  	
   

  	
   

  
	
  K1A 0K9

  	
   

  	
   

  

 

Subject
Matter: DMF 2006-008 - Type I - PXD101 — Change in ownership

 

Dear Sir or Madam:

 

CuraGen
notifies the Agency that DMF Administrator have been transferred from CuraGen
Corporation to TopoTarget as new owner, effective <date>. A complete copy
of the DMF, amendments, regulatory correspondence and of the data in support of
the DMF was provided to TopoTarget.

 

The
name of the official representative and the address of the new owner are:

 

<address>

 

If
there are questions or comments regarding this submission, please contact me by
phone (203) 871-4339, facsimile (203) 315-2668, or e-mail
hscholl@curagen.com or Kimberly Fabrizio. by phone (203) 871-4251, facsimile
(203) 315-2668, or e-mail kfabrizio@curagen.com.

 

Sincerely,

 

Hans Scholl

Vice President,
Regulatory Affairs and Quality Assurance

CuraGen Corporation

 

 

	
  cc:

  	
   

  	
  Sherry S. Ansher,
  Ph.D., Coordinator, National Cancer Institute

  
	
   

  	
   

  	
  Cheryl A. Grandinetti,
  Pharm.D., Senior Clinical Research Pharmacist, National Cancer Institute

  
	
   

  	
   

  	
  Pamela Degendorfer, MA,
  CCRP, Program Manager Drug Development, Princess Margaret Hospital

  

 

 

 

EXHIBIT B-3

 

	
   

  	
  322 East Main Street, 3rd Floor

  
	
   

  	
  Branford, CT 06405

  
	
   

  	
  (203) 481-1104

  
	
   

  	
  (203) 315-2668 Fax

  
	
   

  	
  www.curagen.com

  
	
   

  	
   

  
	
  DMF Administrator

  	
  08 Nov 2007

  
	
  Bureau of
  Pharmaceutical Sciences

  	
   

  
	
  Therapeutic Products
  Directorate

  	
   

  
	
  Health Canada Finance
  Building

  	
   

  
	
  Tunney’s Pasture (A.L.
  0201D)

  	
   

  
	
  Ottawa, Ontario

  	
   

  
	
  Canada

  	
   

  
	
  K1A 0K9

  	
   

  

 

Subject
Matter: DMF 2006-009 - Type IV - PXD101 Injection — Change in ownership

 

Dear Sir or Madam:

 

CuraGen notifies the
Agency that all rights to the DMF have been transferred from CuraGen
Corporation to TopoTarget as new owner, effective <date>. A complete copy
of the DMF, amendments, regulatory correspondence and of the data in support of
the DMF was provided to TopoTarget.

 

The name of the official
representative and the address of the new owner are:

 

<address>

 

If there are questions or
comments regarding this submission, please contact me by phone
(203) 871-4339, facsimile (203) 315-2668, or e-mail
hscholl@curagen.com or Kimberly Fabrizio. by phone (203) 871-4251,
facsimile (203) 315-2668, or e-mail kfabrizio@curagen.com.

 

Sincerely,

 

Hans Scholl

Vice President,
Regulatory Affairs and Quality Assurance

CuraGen Corporation

 

 

	
  cc:

  	
  Sherry S. Ansher,
  Ph.D., Coordinator, National Cancer Institute

  
	
   

  	
  Cheryl A. Grandinetti,
  Pharm.D., Senior Clinical Research Pharmacist, National Cancer Institute

  
	
   

  	
  Pamela Degendorfer, MA,
  CCRP, Program Manager Drug Development, Princess Margaret Hospital

  

 

 

EXHIBIT C-1

 

TopoTarget
Logo and Address

 

	
  Robert Justice, MD

  	
   

  
	
  Food and Drug
  Administration

  	
  15 Apr 2008

  
	
  Center for Drug
  Evaluation and Research

  	
   

  
	
  Division of Drug
  Oncology Products

  	
   

  
	
  5901-B Ammendale Road

  	
   

  
	
  Beltsville, MD
  20705-1266

  	
   

  

 

IND
70,789

General
Correspondence: Change in ownership

 

Dear Dr. Justice:

 

Reference is made to IND
70,789 for belinostat (PXD101)

 

TopoTarget notifies the
Agency that all rights to the application / IND have been transferred from
CuraGen Corporation to TopoTarget as new owner, effective <date>.

 

TopoTarget, as new owner,
commits to all agreements, promises, and conditions contained in the
application and made by CuraGen Corporation as former owner. A complete copy of
the IND, protocols, reports and amendments, regulatory correspondence and of
the data in support of the application was provided to TopoTarget.

 

Either:

 

TopoTarget will use the previous owner CuraGen
Corporation for submitting information to the IND on behalf of TopoTarget, and
will file updated Transfer of Obligations statements for the various studies
under the IND to reflect this.

 

Or:

 

TopoTarget will use <name of U.S.
representative> for submitting information to the IND on behalf of
TopoTarget, and will file updated Transfer of Obligations statements for the
various studies under the IND to reflect this.

 

If you have any questions
regarding this submission, please contact ...

 

Sincerely,

 

 

TopoTarget

 

Attachments

Form 1571

 

 

	
  DEPARTMENT OF HEALTH AND HUMAN
  SERVICES

  FOOD AND DRUG
  ADMINISTRATION

   

  INVESTIGATIONAL NEW DRUG
  APPLICATION (IND)

  (TITLE 21, CODE OF FEDERAL REGULATIONS (CFR) PART 312)

  	
   

  	
   

  Form Approved: OMB No. 0910-0014.

  Expiration Date: May 31, 2009

  See OMB Statement on Reverse.

  
	
   

  	
  NOTE: No drug may be shipped or
  clinical investigation begun until an IND for that investigation is in effect
  (21 CFR 312.40).

  
	
  1.

  	
   

  	
  NAME
  OF SPONSOR

  	
   

  	
  2.
  DATE OF SUBMISSION

  
	
   

  	
   

  	
  TopoTarget

  	
   

  	
  04/15/2008

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  ADDRESS
  (Number, Street, City, State and Zip Code)

  	
   

  	
  4.
  TELEPHONE NUMBER (Include Area Code)

  
	
   

  	
   

  	
  Address TopoTarget

  	
   

  	
  Phone
  TopoTarget

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  NAME(S) OF
  DRUG (Include all available names: Trade,
  Generic, Chemical, Code)

  	
   

  	
  6.
  IND NUMBER (If previously assigned)

  
	
   

  	
   

  	
  belinostat (PXD101)

  	
   

  	
  70,789

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  INDICATION(S) (Covered by this submission)

  multiple cancer
  indications 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  PHASE(S) OF
  CLINICAL INVESTIGATION TO BE CONDUCTED:

  o PHASE
  1    x PHASE 2
      o PHASE
  3    o OTHER 

  	
   

  
	
   

  	
   

  	
   

  	
  (Specify)

  
	
  9.

  	
   

  	
  LIST
  NUMBERS OF ALL INVESTIGATIONAL NEW DRUG APPLICATIONS (21 CFR Part 312), NEW DRUG OR
  ANTIBIOTIC APPLICATIONS (21 CFR Part 314),
  DRUG MASTER FILES (21 CFR Part 314.420),
  AND PRODUCT LICENSE APPLICATIONS (21 CFR Part 601)
  REFERRED TO IN THIS APPLICATION.

  72,862

  72,990

  74,532

   

  
	
   

  	
   

  
	
  10.

  	
   

  	
  IND submission should be consecutively numbered. The
  initial IND should be numbered “Serial number: 0000.” The next submission
  (e.g., amendment, report, or correspondence) should be numbered “Serial
  Number: 0001.” Subsequent submissions should be numbered consecutively in the
  order in which they are submitted. 

  	
  SERIAL NUMBER

   0    1    2    0 

  
	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  THIS
  SUBMISSION CONTAINS THE FOLLOWING: (Check all that apply)

  o INITIAL INVESTIGATIONAL
  NEW DRUG APPLICATION
  (IND)                o RESPONSE TO
  CLINICAL HOLD

  
	
   

  	
   

  	
   

  
	
  PROTOCOL
  AMENDMENT(S):

  	
  INFORMATION
  AMENDMENT(S):

  	
  IND
  SAFETY REPORT(S):

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  NEW
  PROTOCOL 

  	
  o CHEMISTRY/MICROBIOLOGY

  	
  o INITIAL
  WRITTEN REPORT

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  CHANGE
  IN PROTOCOL

  	
  o PHARMACOLOGY/TOXICOLOGY

  	
  o FOLLOW-UP TO
  A WRITTEN REPORT

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  NEW
  INVESTIGATOR

  	
  o CLINICAL

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  RESPONSE
  TO FDA REQUEST FOR INFORMATION

  	
  o ANNUAL REPORT

  	
  x GENERAL
  CORRESPONDENCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  REQUEST
  FOR REINSTATEMENT OF IND THAT IS WITHDRAWN,

  	
  x OTHER  

  	
  Change in ownership

  
	
   

  	
   

  	
  INACTIVATED,
  TERMINATED OR DISCONTINUED

  	
  (Specify)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHECK ONLY IF APPLICABLE

  
	
   

  
	
  JUSTIFICATION STATEMENT MUST BE SUBMITTED WITH
  APPLICATION FOR ANY CHECKED BELOW. REFER TO THE CITED CFR SECTION FOR
  FURTHER INFORMATION.

  
											

 

	
  o  TREATMENT IND 21 CFR 312.35(b)

  	
  o  TREATMENT PROTOCOL 21 CFR 312.35(a)

  	
  o  CHARGE REQUEST/NOTIFICATION 21 CFR312.7(d)

  

 

 

	
   

  	
   

  	
  FOR FDA USE ONLY

  	
   

  
	
  CDR/DBIND/DGD
  RECEIPT STAMP

  	
  DDR
  RECEIPT STAMP

  	
  DIVISION
  ASSIGNMENT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  IND
  NUMBER ASSIGNED:

  
					

 

	
  12.

  	
   

  	
  CONTENTS OF APPLICATION

  This application contains the following items: (Check all that apply)

  
	
   

  	
   

  	
   

  
	
  x

  	
   

  	
  1. Form FDA 1571 [21 CFR 312.23(a)(1)]

  
	
  o

  	
   

  	
  2. Table of Contents [21 CFR 312.23(a)(2)]

  
	
  o

  	
   

  	
  3. Introductory
  statement [21 CFR 312.23(a)(3)]

  
	
  o

  	
   

  	
  4. General Investigational
  plan [21 CFR 312.23(a)(3)]

  
	
  o

  	
   

  	
  5. Investigator’s
  brochure [21 CFR 312.23(a)(5)]

  
	
  o

  	
   

  	
  6. Protocol(s) [21 CFR 312.23(a)(6)]

  
	
   

  	
   

  	
  o

  	
   

  	
  a. Study
  protocol(s) [21 CFR 312.23(a)(6)]

  
	
   

  	
   

  	
  o

  	
   

  	
  b. Investigator data [21 CFR 312.23(a)(6)(iii)(b)] or
  completed Form(s) FDA 1572

  
	
   

  	
   

  	
  o

  	
   

  	
  c. Facilities data [21 CFR 312.23(a)(6)(iii)(b)] or
  completed Form(s) FDA 1572

  
	
   

  	
   

  	
  o

  	
   

  	
  d. Institutional Review
  Board data [21 CFR 312.23(a)(6)(iii)(b)]
  or completed Form(s) FDA 1572

  
	
  o

  	
   

  	
  7. Chemistry,
  manufacturing, and control data [21 CFR
  312.23(a)(7)]

  
	
   

  	
   

  	
  o

  	
   

  	
  Environmental
  assessment or claim for exclusion [21 CFR
  312.23(a)(7)(iv)(e)]

  
	
  o

  	
   

  	
  8. Pharmacology and
  toxicology data [21 CFR 312.23(a)(8)]

  
	
  o

  	
   

  	
  9. Previous human
  experience [21 CFR 312.23(a)(9)]

  
	
  o

  	
   

  	
  10. Additional
  information [21 CFR 312.23(a)(10)]   

  
	
  13.

  	
   

  	
  IS
  ANY PART OF THE CLINICAL STUDY TO BE CONDUCTED BY A CONTRACT RESEARCH
  ORGANIZATION?  x
  YES  o NO

   

  IF
  YES, WILL ANY SPONSOR OBLIGATIONS BE TRANSFERRED TO THE CONTRACT RESEARCH
  ORGANIZATION?   x
  YES  o NO

   

  IF
  YES, ATTACH A STATEMENT CONTAINING THE NAME AND ADDRESS OF THE CONTRACT
  RESEARCH ORGANIZATION, IDENTIFICATION OF THE CLINICAL STUDY, AND A LISTING OF
  THE OBLIGATIONS TRANSFERRED.

  
	
  14.

  	
   

  	
  NAME
  AND TITLE OF THE PERSON RESPONSIBLE FOR MONITORING THE CONDUCT AND PROGRESS
  OF THE CLINICAL INVESTIGATIONS

  
	
   

  	
   

  	
  TopoTarget Responsible
  Person

   

  
	
  15.

  	
   

  	
  NAME(S) AND
  TITLE(S) OF THE PERSON(S) RESPONSIBLE FOR REVIEW AND EVALUATION OF
  INFORMATION RELEVANT TO THE SAFETY OF THE DRUG

  
	
   

  	
   

  	
  TopoTarget Responsible
  Person

   

  
	
  I
  agree not to begin clinical investigations until 30 days after FDA’s receipt
  of the IND unless I receive earlier notification by FDA that the studies may
  begin. I also agree not to begin or continue clinical investigations covered
  by the IND if those studies are placed on clinical hold. I agree that an
  Institutional Review Board (IRB) that complies with the requirements set
  fourth in 21 CFR Part 56 will be responsible for initial and continuing
  review and approval of each of the studies in the proposed clinical
  investigation. I agree to conduct the investigation in accordance with all
  other applicable regulatory requirements.

  
	
  16.

  	
   

  	
  NAME
  OF SPONSOR OR SPONSOR’S AUTHORIZED

  	
  17.

  	
  SIGNATURE
  OF SPONSOR OR SPONSOR’S 

  
	
   

  	
   

  	
  REPRESENTATIVE

  	
   

  	
  AUTHORIZED
  REPRESENTATIVE

  
	
   

  	
   

  	
  Hans Scholl, PhD
  (or other TopoTarget Rep)

  Vice President, Regulatory Affairs and QA CuraGen Corporation

  	
   

  	
   

  
							

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
   

  	
  ADDRESS
  (Number, Street, City, State and Zip Code)

  	
  19.

  	
   

  	
  TELEPHONE
  NUMBER (Include Area Code)  

  	
  20.

  	
  DATE

  
	
   

  	
   

  	
  322 East Main Street

  Branford, CT 06405

  	
   

  	
   

  	
  (203) 871-4339

  	
   

  	
  04/15/2008

  
	
   

  	
   

  	
   

  
	
  (WARNING: A willfully
  false statement is a criminal offense. U.S.C. Title 18, Sec. 1001.)

  
	
   

  
	
  Public
  reporting burden for this collection of information is estimated to average
  100 hours per response, including the time for reviewing instructions,
  searching existing data sources, gathering and maintaining the data needed,
  and completing reviewing the collection of information. Send comments
  regarding this burden estimate or any other aspect of this collection of
  information, including suggestions for reducing this burden to:

  
	
   

  
	
  Department
  of Health and Human Services

  Food
  and Drug Administration  

  Center
  for Drug Evaluation and Research

  Central
  Document Room  

  5901-B
  Ammendale Road

  Beltsville,
  MD 20705-1266

  	
  Department
  of Health and Human Services

  Food
  and Drug Administration

  Center
  for Biologics Evaluation and Research (HFM-99)

  1401
  Rockville Pike

  Rockville,
  MD 20852-1448

  	
  “An
  agency may not conduct or sponsor, and a person is not required to respond
  to, a collection of information unless it displays a currently valid OMB
  control number.”

  
	
   

  	
   

  	
   

  
	
  Please DO NOT RETURN this application to this
  address.

  
										

 

 

 

EXHIBIT C-2

 

TopoTarget
Logo and Address

 

	
   

  	
   

  	
   

  
	
  DMF Administrator

  	
   

  	
  08 Nov 2007

  
	
  Bureau of
  Pharmaceutical Sciences

  	
   

  	
   

  
	
  Therapeutic Products
  Directorate

  	
   

  	
   

  
	
  Health Canada Finance
  Building

  	
   

  	
   

  
	
  Tunney’s Pasture (A.L.
  0201D)

  	
   

  	
   

  
	
  Ottawa, Ontario

  	
   

  	
   

  
	
  Canada

  	
   

  	
   

  
	
  K1A 0K9

  	
   

  	
   

  

 

Subject
Matter: DMF 2006-008 - Type I - PXD101 — Change in ownership

 

Dear Sir or Madam:

 

TopoTarget
notifies the Agency that the DMF have been transferred from CuraGen Corporation
to TopoTarget as new owner, effective <date>. A complete copy of the DMF,
amendments, regulatory correspondence and of the data in support of the DMF was
provided to TopoTarget.

 

TopoTarget
will maintain the Letters of Access and inform the involved parties of the
change.

 

The
name of the authorized representative and the address of the new owner are:

 

<Name
of TopoTarget official representative (CuraGen Head of Regulatory Affairs? or
other representative?), and TopoTarget address>

 

If
there are questions or comments regarding this submission, please contact me by
phone (203) 871-4339, facsimile (203) 315-2668, or e-mail
hscholl@curagen.com or Kimberly Fabrizio. by phone (203) 871-4251,
facsimile (203) 315-2668, or e-mail kfabrizio@curagen.com.

 

Sincerely,

 

Hans Scholl

Vice President,
Regulatory Affairs and Quality Assurance

CuraGen Corporation

 

	
  cc:

  	
   

  	
  Sherry S. Ansher,
  Ph.D., Coordinator, National Cancer Institute

  
	
   

  	
   

  	
  Cheryl A. Grandinetti,
  Pharm.D., Senior Clinical Research Pharmacist, National Cancer Institute

  
	
   

  	
   

  	
  Pamela Degendorfer, MA,
  CCRP, Program Manager Drug Development, Princess Margaret Hospital

  

 

 

EXHIBIT C-3

 

TopoTarget
Logo and Address

 

	
   

  	
   

  	
   

  
	
  DMF Administrator

  	
   

  	
  08 Nov 2007

  
	
  Bureau of
  Pharmaceutical Sciences

  	
   

  	
   

  
	
  Therapeutic Products
  Directorate

  	
   

  	
   

  
	
  Health Canada Finance
  Building

  	
   

  	
   

  
	
  Tunney’s Pasture (A.L.
  0201D)

  	
   

  	
   

  
	
  Ottawa, Ontario

  	
   

  	
   

  
	
  Canada

  	
   

  	
   

  
	
  K1A 0K9

  	
   

  	
   

  

 

Subject
Matter: DMF 2006-009 - Type IV - PXD101 Injection — Change in ownership

 

Dear Sir or Madam:

 

TopoTarget notifies the
Agency that all rights to the DMF have been transferred from CuraGen
Corporation to TopoTarget as new owner, effective <date>. A complete copy
of the DMF, amendments, regulatory correspondence and of the data in support of
the DMF was provided to TopoTarget.

 

TopoTarget will maintain
the Letters of Access and inform the involved parties of the change.

 

The name of the
authorized representative and the address of the new owner are:

 

<Name of TopoTarget
official representative (CuraGen Head of Regulatory Affairs? or other
representative?), and TopoTarget address>

 

If there are questions or
comments regarding this submission, please contact me by phone
(203) 871-4339, facsimile (203) 315-2668, or e-mail
hscholl@curagen.com or Kimberly Fabrizio. by phone (203) 871-4251,
facsimile (203) 315-2668, or e-mail kfabrizio@curagen.com.

 

Sincerely,

 

Hans Scholl

Vice President,
Regulatory Affairs and Quality Assurance

CuraGen Corporation

 

	
  cc:

  	
   

  	
  Sherry S. Ansher,
  Ph.D., Coordinator, National Cancer Institute

  
	
   

  	
   

  	
  Cheryl A. Grandinetti,
  Pharm.D., Senior Clinical Research Pharmacist, National Cancer Institute

  
	
   

  	
   

  	
  Pamela Degendorfer, MA,
  CCRP, Program Manager Drug Development, Princess Margaret Hospital

  

 

 

EXHIBIT D

 

REQUEST FOR SPECIAL PROTOCOL
ASSESSMENT

 

	
   

  	
   

  	
  322 East Main Street, 3rd Floor

  
	
   

  	
   

  	
  Branford, CT 06405

  
	
   

  	
   

  	
  (203) 481-1104

  
	
   

  	
   

  	
  (203) 315-2668 Fax

  
	
   

  	
   

  	
  www.curagen.com

  

 

	
  Robert Justice, MD

  	
   

  	
   

  
	
  Food and Drug
  Administration

  	
   

  	
   

  
	
  Center for Drug
  Evaluation and Research

  	
   

  	
  XX Apr 2008

  
	
  Division of Drug
  Oncology Products

  	
   

  	
   

  
	
  5901-B Ammendale Road

  	
   

  	
   

  
	
  Beltsville, MD
  20705-1266

  	
   

  	
   

  

 

IND
70,789, Serial #0XXX

REQUEST
FOR SPECIAL PROTOCOL ASSESSMENT: CLINICAL

 

Dear Dr. Justice:

 

Reference is made to our
IND 70,789 for belinostat (PXD101), a histone deacetylase (HDAC) inhibitor
being developed in collaboration with TopoTarget A/S as a potential therapeutic
for peripheral T-cell lymphoma (PTCL) and other indications.

 

Please find enclosed a
Special Protocol Assessment (SPA) submission where we have incorporated your
comments regarding the Phase 3 clinical study discussed in our End-of-Phase 2
meeting held on 29 Nov 2007. We have considered all feedback given to us by the
Agency and posed any additional questions in Appendix 5 for your attention.

 

Please note that the
clinical study number has been changed from the original Protocol Synopsis
(PXD101-CLN-18) submitted in the EOP2 meeting brief on 31 Oct 2007, SN 0104 to
the current clinical study number of PXD101-CLN-19 which will be used from this
date forward.

 

Regarding all other
development aspects concerning the registration of belinostat please refer to
all correspondence regarding the two End-of-Phase 2 meetings held between
CuraGen Corporation and the FDA (see Attachment 1).

 

 

In accordance with the
Guidance for Industry — Special Protocol Assessment, and as requested in your
comments to our Phase 3 protocol at the End-of-Phase 2 meeting, attached are
the following documents:

 

	
   

  	
  (1)

  	
  Clinical trial Protocol
  PXD101-CLN-19, “A Multicenter, Open-Label
  Trial of Belinostat in Patients with Relapsed or Refractory Peripheral T-Cell
  Lymphoma”.—Appendix 1

  
	
   

  	
   

  	
   

  
	
   

  	
  (2)

  	
  Statistical Analysis
  Plan — Appendix 2

  
	
   

  	
   

  	
   

  
	
   

  	
  (3)

  	
  Independent Radiology
  Review Charter for PXD101-CLN-19 — Appendix 3

  
	
   

  	
   

  	
   

  
	
   

  	
  (4)

  	
  Sample Case Report
  Form — Appendix 4

  
	
   

  	
   

  	
   

  
	
   

  	
  (5)

  	
  Clinical Summary and
  List of Questions to FDA — Appendix 5

  
	
   

  	
   

  	
   

  
	
   

  	
  (6)

  	
  FDA Minutes of the 29
  Nov 2007 End-of-Phase 2 meeting — Appendix 6

  

 

A copy of this cover
letter will be sent today via facsimile to Dorothy Pease, Supervisor, Consumer
Safety Officer.

 

If you have any questions
regarding this submission, please contact me by
phone (203) 871-44251, facsimile (203) 315-2668 or email
kfabrizio@curagen.com or alternatively contact Hans Scholl by phone
(203) 871-4339 or e-mail hscholl@curagen.com.

 

Sincerely,

 

Kimberly Fabrizio

Assistant Director
Regulatory Affairs

CuraGen Corporation

 

	
  cc:

  	
   

  	
  Dorothy Pease,
  Supervisor, Consumer Safety Office

  
	
   

  	
   

  	
  XX Desk Copies sent to
  Brenda Atkins, Project Manager

  

 

2

 

ATTACHMENT
1: Regulatory History:

 

CuraGen has currently
held two End-of-Phase 2 meetings with the FDA in conjunction with PXD101 (belinostat)
for the treatment of Peripheral T-Cell Lymphoma (PTCL) and Cancer of Unknown
Primary (CUP). Both meetings have yielded input into our clinical development
plan and protocol designs. The following documentation and meetings should be
referenced in association with the clinical development of belinostat.

 

End-of-Phase 2 PTCL
Meeting Minutes Received (11 Jan 2008)

 

End-of-Phase 2 PTCL
Meeting (29 Nov 2007)

 

Supplemental PTCL
Briefing Document Request (15 Nov 2007, SN 0106)

 

End-of-Phase 2 PTCL Meeting
Brief (31 Oct 2007, SN 0104)

 

End-of-Phase 2 CUP
Meeting Minutes Received (11 Apr 2007)

 

End-of-Phase 2 CUP
Meeting (27 Mar 2007)

 

End-of-Phase 2 CUP
Meeting Brief (23 Feb 2007, SN 0068)

 

 

Exhibit B

 

Assignment of Patents

 

CuraGen
Corporation, a Delaware corporation, hereby assigns to TopoTarget A/S, a
company organized and existing under the laws of Denmark, the entire right,
title and interest for the United States of America and its territorial
possessions and all foreign countries, including all rights of priority, in all
inventions disclosed in the patents and patent applications identified on Schedule A,
and in and to such patents and patent applications and all Letters Patents of
the United States and all foreign countries which may or shall be granted on
said inventions or in respect of such patents and patent applications
identified on Schedule A, or any parts thereof, or any divisional,
continuing, reissue or other applications or patents based in whole or in part
thereon including the right to recover for past, present and future
infringement.

 

CuraGen
Corporation agrees to execute all applications, amended specifications, deeds
or other instruments, and to do all acts necessary or proper to secure the
grant of Letters Patent in the United States and in all other countries to
TopoTarget A/S to vest and confirm in said corporation, its successors and
assigns, the legal title to all such patents.

 

Each
of CuraGen Corporation and TopoTarget A/S does hereby authorize and request the
competent authorities to grant and issue any and all such Letters Patent as
shall be granted upon said inventions or applications based thereon in the
United States and throughout the world to said TopoTarget A/S, its successors
and assigns.

 

Witness my hand and seal this 21st day of April, 2008.

 

	
   

  	
   

  	
  CURAGEN CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Timothy M. Shannon

  
	
   

  	
   

  	
  Name:

  	
  Timothy M. Shannon

  
	
   

  	
   

  	
  Title:

  	
  President &
  CEO

  

 

STATE OF

 

County of
                    )

 

On this             
day of
                ,
2008, before me, the undersigned notary public, personally appeared                     ,
proved to me through satisfactory evidence of identification, which was                                 ,
to be the person whose name is signed on the preceding document, and
acknowledged to me that he signed it voluntarily for its stated purpose.

 

 

[affix
seal]

 

	
   

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
  My commission expires:

  

 

 

Schedule A

Assignment of Patents

from CuraGen Corporation to
TopoTarget A/S

 

Patent
Applications

 

	
  Filing
  Date

  	
   

  	
  Appl. No. /Serial No.

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  February 3, 2006

  	
   

  	
  PCT/GB2006/000391

  	
   

  	
  Combination therapies
  using HDAC inhibitors

  
	
   

  	
   

  	
  (WO 2006/082428)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  November 10, 2006
  

  	
   

  	
  PCT/GB2006/004215

  (WO 2007/054719)

  	
   

  	
  Histone deacetylase
  (HDAC) inhibitors (PXD101) for the  treatment of cancer alone or in
  combination with chemotherapeutic

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Agents

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  November 10, 2005

  	
   

  	
  U.S. 60/735,701

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  November 10, 2005

  	
   

  	
  U.S. 60/735,662

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  February 3, 2005

  	
   

  	
  U.S. 60/649,991Exhibit 10.34

 

CELLDEX
THERAPEUTICS, INC.

 

2008 STOCK
OPTION AND INCENTIVE PLAN

 

as amended
and restated effective as of February 24, 2010

 

SECTION 1.       GENERAL PURPOSE OF THE PLAN; DEFINITIONS

 

The name of the plan is the Celldex Therapeutics, Inc.
2008 Stock Option and Incentive Plan (the “Plan”). The purpose of the Plan is
to encourage and enable the officers, employees, Non-Employee Directors and
other key persons (including consultants and prospective employees) of Celldex
Therapeutics, Inc. (the “Company”) and its Subsidiaries upon whose
judgment, initiative and efforts the Company largely depends for the successful
conduct of its business to acquire a proprietary interest in the Company. It is
anticipated that providing such persons with a direct stake in the Company’s
welfare will assure a closer identification of their interests with those of
the Company and its stockholders, thereby stimulating their efforts on the
Company’s behalf and strengthening their desire to remain with the Company.

 

The following terms shall be defined as set forth
below:

 

“Act”
means the Securities Act of 1933, as amended, and the rules and
regulations thereunder.

 

“Administrator”
means either the Board or the compensation committee of the Board or a similar
committee performing the functions of the compensation committee and which is
comprised of not less than two Non-Employee Directors who are independent.

 

“Award”
or “Awards,” except where
referring to a particular category of grant under the Plan, shall include
Incentive Stock Options, Non-Qualified Stock Options, Stock Appreciation
Rights, Deferred Stock Awards, Restricted Stock Awards, Unrestricted Stock
Awards, Cash-Based Awards, Performance Share Awards and Dividend Equivalent
Rights.

 

“Award Agreement”
means a written or electronic agreement setting forth the terms and provisions
applicable to an Award granted under the Plan. Each Award Agreement is subject
to the terms and conditions of the Plan.

 

“Board”
means the Board of Directors of the Company.

 

“Cash-Based Award”
means an Award entitling the recipient to receive a cash-denominated payment.

 

“Change of
Control” is defined in Section 20.

 

“Code”
means the Internal Revenue Code of 1986, as amended, and any successor Code,
and related rules, regulations and interpretations.

 

 

“Covered Employee”
means an employee who is a “Covered Employee” within the meaning of Section 162(m) of
the Code.

 

“Deferred Stock
Award” means an Award of phantom stock units to a grantee.

 

“Dividend
Equivalent Right” means an Award entitling the grantee to receive
credits based on cash dividends that would have been paid on the shares of
Stock specified in the Dividend Equivalent Right (or other award to which it
relates) if such shares had been issued to and held by the grantee.

 

“Effective Date”
means the date on which the Plan is approved by stockholders as set forth in Section 22.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and
regulations thereunder.

 

“Fair Market
Value” of the Stock on any given date means the fair market value of
the Stock determined in good faith by the Administrator; provided, however,
that if the Stock is admitted to quotation on the National Association of
Securities Dealers Automated Quotation System (“NASDAQ”), NASDAQ Capital Market
or another national securities exchange, the determination shall be made by
reference to market quotations. If there are no market quotations for such
date, the determination shall be made by reference to the last date preceding
such date for which there are market quotations.

 

“Incentive Stock
Option” means any Stock Option designated and qualified as an “incentive
stock option” as defined in Section 422 of the Code.

 

“Non-Employee
Director” means a member of the Board who is not also an employee of
the Company or any Subsidiary.

 

“Non-Qualified
Stock Option” means any Stock Option that is not an Incentive Stock
Option.

 

“Option”
or “Stock Option” means any
option to purchase shares of Stock granted pursuant to Section 5.

 

“Performance-Based
Award” means any Restricted Stock Award, Deferred Stock Award,
Performance Share Award or Cash-Based Award granted to a Covered Employee that
is intended to qualify as “performance-based compensation” under Section 162(m) of
the Code and the regulations promulgated thereunder.

 

“Performance
Criteria” means the performance criteria used in performance goals
governing Performance-based Awards granted to Covered Employees which may
include any or all of the following: (i) the Company’s return on equity,
assets, capital or investment, (ii) pre-tax or after-tax profit levels of
the Company or any Subsidiary, a division, an operating unit or a business
segment of the Company, or any combination of the foregoing; (iii) cash
flow, funds 

 

2

 

from
operations, year-end cash and equivalents balance or similar measure; (iv) total
shareholder return; (v) changes in the market price of the Stock; (vi) sales
or market share; (vii) earnings per share; (viii) partnerships,
collaborations, joint ventures, alliances and similar arrangements involving
the Company; (ix) mergers, acquisitions and business combinations of or by
the Company; or (x) the Company’s rights to intellectual property and
scientific discoveries.

 

“Performance
Cycle” means one or more periods of time, which may be of varying
and overlapping durations, as the Administrator may select, over which the
attainment of one or more Performance Criteria will be measured for the purpose
of determining a grantee’s right to and the payment of a Restricted Stock
Award, Deferred Stock Award, Performance Share Award or Cash-Based Award.

 

“Performance
Goals” means, for a Performance Cycle, the specific goals
established in writing by the Administrator for a Performance Cycle based upon
the Performance Criteria.

 

“Performance
Share Award” means an Award entitling the recipient to acquire
shares of Stock upon the attainment of specified Performance Goals.

 

“Restricted Stock
Award” means an Award entitling the recipient to acquire, at such
purchase price (which may be zero) as determined by the Administrator, shares
of Stock subject to such restrictions and conditions as the Administrator may
determine at the time of grant.

 

“Sale Event”
shall mean (i) the sale of all or substantially all of the assets of the
Company on a consolidated basis to an unrelated person or entity, (ii) a
merger, reorganization or consolidation in which the outstanding shares of
Stock are converted into or exchanged for securities of the successor entity
and the holders of the Company’s outstanding voting power immediately prior to
such transaction do not own a majority of the outstanding voting power of the
successor entity immediately upon completion of such transaction, or (iii) the
sale of all of the Stock of the Company to an unrelated person or entity.

 

“Sale Price”
means the value as determined by the Administrator of the consideration
payable, or otherwise to be received by stockholders, per share of Stock
pursuant to a Sale Event.

 

“Section 409A”
means Section 409A of the Code and the regulations and other guidance
promulgated thereunder.

 

“Stock”
means the Common Stock, par value $.01 per share, of the Company, subject to
adjustments pursuant to Section 3.

 

“Stock
Appreciation Right” means an Award entitling the recipient to
receive shares of Stock having a value equal to the excess of the Fair Market
Value of the Stock on the date of exercise over the exercise price of the Stock
Appreciation Right multiplied by the number of shares of Stock with respect to
which the Stock Appreciation Right shall have been exercised.

 

“Subsidiary”
means any corporation or other entity (other than the Company) in which the
Company has at least a 50 percent interest, either directly or indirectly.

 

3

 

“Ten Percent
Owner” means an employee who owns or is deemed to own (by reason of
the attribution rules of Section 424(d) of the Code) more than
10 percent of the combined voting power of all classes of stock of the
Company or any parent or subsidiary corporation.

 

“Unrestricted
Stock Award” means an Award of shares of Stock free of any
restrictions.

 

SECTION 2.       ADMINISTRATION OF PLAN; ADMINISTRATOR AUTHORITY TO
SELECT GRANTEES AND DETERMINE AWARDS

 

(a)     Administration of Plan.    The
Plan shall be administered by the Administrator.

 

(b)     Powers of Administrator.    The
Administrator shall have the power and authority to grant Awards consistent
with the terms of the Plan, including the power and authority:

 

(i)  to
select the individuals to whom Awards may from time to time be granted;

 

(ii)  to
determine the time or times of grant, and the extent, if any, of Incentive
Stock Options, Non-Qualified Stock Options, Stock Appreciation Rights,
Restricted Stock Awards, Deferred Stock Awards, Unrestricted Stock Awards,
Cash-Based Awards, Performance Share Awards and Dividend Equivalent Rights, or
any combination of the foregoing, granted to any one or more grantees;

 

(iii)  to
determine the number of shares of Stock to be covered by any Award;

 

(iv)  to
determine and modify from time to time the terms and conditions, including
restrictions, not inconsistent with the terms of the Plan, of any Award, which
terms and conditions may differ among individual Awards and grantees, and to
approve the form of written instruments evidencing the Awards;

 

(v)  to
accelerate at any time the exercisability or vesting of all or any portion of
any Award;

 

(vi)  subject
to the provisions of Section 5(a)(ii), to extend at any time the period in
which Stock Options may be exercised; and

 

(vii)  at
any time to adopt, alter and repeal such rules, guidelines and practices for
administration of the Plan and for its own acts and proceedings as it shall
deem advisable; to interpret the terms and provisions of the Plan and any Award
(including related written instruments); to make all determinations it deems
advisable for the administration of the Plan; to decide all disputes arising in
connection with the Plan; and to otherwise supervise the administration of the
Plan.

 

All decisions and interpretations of the
Administrator shall be binding on all persons, including the Company and Plan
grantees.

 

4

 

(c)     Delegation of Authority to
Grant Options.    Subject to applicable law, the
Administrator, in its discretion, may delegate to the Chief Executive Officer
of the Company all or part of the Administrator’s authority and duties with
respect to the granting of Options, to individuals who are (i) not subject
to the reporting and other provisions of Section 16 of the Exchange Act
and (ii) not Covered Employees. Any such delegation by the Administrator
shall include a limitation as to the amount of Options that may be granted
during the period of the delegation and shall contain guidelines as to the
determination of the exercise price and the vesting criteria. The Administrator
may revoke or amend the terms of a delegation at any time but such action shall
not invalidate any prior actions of the Administrator’s delegate or delegates
that were consistent with the terms of the Plan.

 

(d)     Award Agreement.    Awards
under the Plan shall be evidenced by Award Agreements that set forth the terms,
conditions and limitations for each Award which may include, without
limitation, the term of an Award, the provisions applicable in the event
employment or service terminates, and the Company’s authority to unilaterally
or bilaterally amend, modify, suspend, cancel or rescind an Award.

 

(e)     Indemnification.    Neither
the Board nor the Administrator, nor any member of either or any delegate
thereof, shall be liable for any act, omission, interpretation, construction or
determination made in good faith in connection with the Plan, and the members
of the Board and the Administrator (and any delegate thereof) shall be entitled
in all cases to indemnification and reimbursement by the Company in respect of
any claim, loss, damage or expense (including, without limitation, reasonable
attorneys’ fees) arising or resulting therefrom to the fullest extent permitted
by law and/or under the Company’s articles or bylaws or any directors’ and
officers’ liability insurance coverage which may be in effect from time to time
and/or any indemnification agreement between such individual and the Company.

 

SECTION 3.       STOCK ISSUABLE UNDER THE PLAN; MERGERS; SUBSTITUTION

 

(a)     Stock Issuable.    The
maximum number of shares of Stock reserved and available for issuance under the
Plan shall be 3,900,000 shares,
subject to adjustment as provided in Section 3(b); provided that not more
than 375,000 shares shall be issued in the form of Unrestricted Stock Awards,
Restricted Stock Awards, Deferred Stock Awards or Performance Share Awards. For
purposes of this limitation, the shares of Stock underlying the Awards granted
under the Plan that are forfeited, canceled or otherwise terminated (other than
by exercise) shall be added back to the shares of Stock available for issuance
under the Plan. Subject to such overall limitations, shares of Stock may be
issued up to such maximum number pursuant to any type or types of Award;
provided, however, that Stock Options or Stock Appreciation Rights with respect
to no more than 333,333 shares of Stock may be granted to any one individual
grantee during any one calendar year period. The shares available for issuance
under the Plan may be authorized but unissued shares of Stock or shares of
Stock reacquired by the Company.

 

(b)     Changes in Stock.    Subject
to Section 3(c) hereof, if, as a result of any reorganization,
recapitalization, reclassification, stock dividend, stock split, reverse stock
split or other similar change in the Company’s capital stock, the outstanding
shares of Stock are increased or decreased or are exchanged for a different
number or kind of shares or other securities of the 

 

5

 

Company, or additional shares or new or different shares or other
securities of the Company or other non-cash assets are distributed with respect
to such shares of Stock or other securities, or, if, as a result of any merger
or consolidation, sale of all or substantially all of the assets of the
Company, the outstanding shares of Stock are converted into or exchanged for
securities of the Company or any successor entity (or a parent or subsidiary
thereof), the Administrator shall make an appropriate or proportionate
adjustment in (i) the maximum number of shares reserved for issuance under
the Plan, including the maximum number of shares that may be issued in the form
of Unrestricted Stock Awards, Restricted Stock Awards, Deferred Stock Awards or
Performance Share Awards, (ii) the number of Stock Options or Stock
Appreciation Rights that can be granted to any one individual grantee and the
maximum number of shares that may be granted under a Performance-Based Award, (iii) the
number and kind of shares or other securities subject to any then outstanding
Awards under the Plan, (iv) the repurchase price, if any, per share
subject to each outstanding Restricted Stock Award, and (v) the price for
each share subject to any then outstanding Stock Options and Stock Appreciation
Rights under the Plan, without changing the aggregate exercise price
(i.e., the exercise price multiplied by the number of Stock Options and
Stock Appreciation Rights) as to which such Stock Options and Stock
Appreciation Rights remain exercisable. The Administrator shall also make
equitable or proportionate adjustments in the number of shares subject to
outstanding Awards and the exercise price and the terms of outstanding Awards
to take into consideration cash dividends paid other than in the ordinary
course or any other extraordinary corporate event. The adjustment by the
Administrator shall be final, binding and conclusive. No fractional shares of
Stock shall be issued under the Plan resulting from any such adjustment, but
the Administrator in its discretion may make a cash payment in lieu of
fractional shares.

 

(c)     Mergers and Other
Transactions.    Upon the effective time of the
Sale Event, the Plan and all outstanding Awards granted hereunder shall terminate,
unless provision is made in connection with the Sale Event in the sole
discretion of the parties thereto for the assumption or continuation of Awards
theretofore granted by the successor entity, or the substitution of such Awards
with new Awards of the successor entity or parent thereof, with appropriate
adjustment as to the number and kind of shares and, if appropriate, the per
share exercise prices, as such parties shall agree (after taking into account
any acceleration hereunder). In the event of such termination, (i) the
Company shall have the option (in its sole discretion) to make or provide for a
cash payment to the grantees holding Options and Stock Appreciation Rights, in
exchange for the cancellation thereof, in an amount equal to the difference
between (A) the Sale Price multiplied by the number of shares of Stock
subject to outstanding Options and Stock Appreciation Rights (to the extent
then exercisable (after taking into account any acceleration hereunder) at
prices not in excess of the Sale Price) and (B) the aggregate exercise
price of all such outstanding Options and Stock Appreciation Rights; or (ii) each
grantee shall be permitted, within a specified period of time prior to the
consummation of the Sale Event as determined by the Administrator, to exercise
all outstanding Options and Stock Appreciation Rights held by such grantee.

 

(d)     Substitute Awards.    The
Administrator may grant Awards under the Plan in substitution for stock and
stock based awards held by employees, directors or other key persons of another
corporation in connection with the merger or consolidation of the employing
corporation with the Company or a Subsidiary or the acquisition by the Company
or a Subsidiary 

 

6

 

of property or stock of the employing corporation. The Administrator
may direct that the substitute awards be granted on such terms and conditions
as the Administrator considers appropriate in the circumstances. Any substitute
Awards granted under the Plan shall not count against the share limitation set
forth in Section 3(a).

 

SECTION 4.       ELIGIBILITY

 

Grantees under the Plan will be such full or
part-time officers and other employees, Non-Employee Directors and key persons
(including consultants and prospective employees) of the Company and its
Subsidiaries as are selected from time to time by the Administrator in its sole
discretion.

 

SECTION 5.       STOCK OPTIONS

 

Any Stock Option granted under the Plan shall be in
such form as the Administrator may from time to time approve.

 

Stock Options granted under the Plan may be either
Incentive Stock Options or Non-Qualified Stock Options. Incentive Stock Options
may be granted only to employees of the Company or any Subsidiary that is a “subsidiary
corporation” within the meaning of Section 424(f) of the Code. To the
extent that any Option does not qualify as an Incentive Stock Option, it shall
be deemed a Non-Qualified Stock Option.

 

Stock Options granted pursuant to this Section 5
shall be subject to the following terms and conditions and shall contain such
additional terms and conditions, not inconsistent with the terms of the Plan,
as the Administrator shall deem desirable.

 

(a)     Exercise Price.    The
exercise price per share for the Stock covered by a Stock Option granted
pursuant to this Section 5 shall be determined by the Administrator at the
time of grant but shall not be less than 100 percent of the Fair Market
Value on the date of grant. In the case of an Incentive Stock Option that is
granted to a Ten Percent Owner, the option price of such Incentive Stock Option
shall be not less than 110 percent of the Fair Market Value on the grant
date.

 

(b)     Option Term.    The
term of each Stock Option shall be fixed by the Administrator, but no Stock
Option shall be exercisable more than ten years after the date the Stock Option
is granted. In the case of an Incentive Stock Option that is granted to a Ten
Percent Owner, the term of such Stock Option shall be no more than five years
from the date of grant.

 

(c)     Exercisability; Rights of a
Stockholder.    Stock Options shall become
exercisable at such time or times, whether or not in installments, as shall be
determined by the Administrator at or after the grant date. The Administrator
may at any time accelerate the exercisability of all or any portion of any
Stock Option. An optionee shall have the rights of a stockholder only as to
shares acquired upon the exercise of a Stock Option and not as to unexercised
Stock Options.

 

7

 

(d)     Method of Exercise.    Stock
Options may be exercised in whole or in part, by giving written notice of
exercise to the Company, specifying the number of shares to be purchased.
Payment of the purchase price may be made by one or more of the following methods
to the extent provided in the Option Award Agreement:

 

(i)  In
cash, by certified or bank check or other instrument acceptable to the
Administrator;

 

(ii)  Through
the delivery (or attestation to the ownership) of shares of Stock that have
been purchased by the optionee on the open market or that are beneficially
owned by the optionee and are not then subject to restrictions under any
Company plan. Such surrendered shares shall be valued at Fair Market Value on
the exercise date. To the extent required to avoid variable accounting
treatment under FAS 123R or other applicable accounting rules, such
surrendered shares shall have been owned by the optionee for at least six
months; or

 

(iii)  By
the optionee delivering to the Company a properly executed exercise notice
together with irrevocable instructions to a broker to promptly deliver to the
Company cash or a check payable and acceptable to the Company for the purchase
price; provided that in the event the optionee chooses to pay the purchase
price as so provided, the optionee and the broker shall comply with such
procedures and enter into such agreements of indemnity and other agreements as
the Administrator shall prescribe as a condition of such payment procedure.

 

Payment instruments will be
received subject to collection. The transfer to the optionee on the records of
the Company or of the transfer agent of the shares of Stock to be purchased
pursuant to the exercise of a Stock Option will be contingent upon receipt from
the optionee (or a purchaser acting in his stead in accordance with the
provisions of the Stock Option) by the Company of the full purchase price for
such shares and the fulfillment of any other requirements contained in the
Option Award Agreement or applicable provisions of laws (including the
satisfaction of any withholding taxes that the Company is obligated to withhold
with respect to the optionee). In the event an optionee chooses to pay the
purchase price by previously-owned shares of Stock through the attestation
method, the number of shares of Stock transferred to the optionee upon the
exercise of the Stock Option shall be net of the number of attested shares. In
the event that the Company establishes, for itself or using the services of a
third party, an automated system for the exercise of Stock Options, such as a
system using an internet website or interactive voice response, then the
paperless exercise of Stock Options may be permitted through the use of such an
automated system.

 

(iv)  Annual Limit on Incentive Stock Options.    To
the extent required for “incentive stock option” treatment under Section 422
of the Code, the aggregate Fair Market Value (determined as of the time of
grant) of the shares of Stock with respect to which Incentive Stock Options
granted under this Plan and any other plan of the Company or its parent and
subsidiary corporations become exercisable for the first time 

 

8

 

by an optionee during any
calendar year shall not exceed $100,000. To the extent that any Stock Option
exceeds this limit, it shall constitute a Non-Qualified Stock Option.

 

SECTION 6.       STOCK APPRECIATION RIGHTS

 

(a)     Exercise Price of Stock
Appreciation Rights.    The exercise price of a
Stock Appreciation Right shall not be less than 100 percent of the Fair
Market Value of the Stock on the date of grant.

 

(b)     Grant and Exercise of Stock
Appreciation Rights.    Stock Appreciation
Rights may be granted by the Administrator independently of any Stock Option
granted pursuant to Section 5 of the Plan.

 

(c)     Terms and Conditions of Stock
Appreciation Rights.    Stock Appreciation
Rights shall be subject to such terms and conditions as shall be determined
from time to time by the Administrator.

 

SECTION 7.       RESTRICTED STOCK AWARDS

 

(a)     Nature of Restricted Stock
Awards.    The Administrator shall determine the
restrictions and conditions applicable to each Restricted Stock Award at the
time of grant. Conditions may be based on continuing employment (or other
service relationship) and/or achievement of pre-established performance goals
and objectives. The grant of a Restricted Stock Award is contingent on the
grantee executing the Restricted Stock Award Agreement. The terms and
conditions of each such Award Agreement shall be determined by the Administrator,
and such terms and conditions may differ among individual Awards and grantees.

 

(b)     Rights as a Stockholder.    Upon
execution of the Restricted Stock Award Agreement and payment of any applicable
purchase price, a grantee shall have the rights of a stockholder with respect
to the voting of the Restricted Stock, subject to such conditions contained in
the Restricted Stock Award Agreement. Unless the Administrator shall otherwise
determine, (i) uncertificated Restricted Stock shall be accompanied by a notation
on the records of the Company or the transfer agent to the effect that they are
subject to forfeiture until such Restricted Stock are vested as provided in Section 7(d) below,
and (ii) certificated Restricted Stock shall remain in the possession of
the Company until such Restricted Stock is vested as provided in Section 7(d) below,
and the grantee shall be required, as a condition of the grant, to deliver to
the Company such instruments of transfer as the Administrator may prescribe.

 

(c)     Restrictions.    Restricted
Stock may not be sold, assigned, transferred, pledged or otherwise encumbered
or disposed of except as specifically provided herein or in the Restricted
Stock Award Agreement. Except as may otherwise be provided by the Administrator
either in the Award Agreement or, subject to Section 18 below, in writing
after the Award Agreement is issued if a grantee’s employment (or other service
relationship) with the Company and its Subsidiaries terminates for any reason,
any Restricted Stock that has not vested at the time of termination shall
automatically and without any requirement of notice to such grantee from or
other action by or on behalf of, the Company be deemed to have been reacquired
by the 

 

9

 

Company at its original purchase price (if any) from such grantee or
such grantee’s legal representative simultaneously with such termination of
employment (or other service relationship), and thereafter shall cease to
represent any ownership of the Company by the grantee or rights of the grantee
as a stockholder. Following such deemed reacquisition of unvested Restricted
Stock that are represented by physical certificates, a grantee shall surrender
such certificates to the Company upon request without consideration.

 

(d)     Vesting of Restricted Stock.    The
Administrator at the time of grant shall specify the date or dates and/or the
attainment of pre-established performance goals, objectives and other
conditions on which the non-transferability of the Restricted Stock and the
Company’s right of repurchase or forfeiture shall lapse. Notwithstanding the
foregoing, in the event that any such Restricted Stock granted to employees
shall have a performance-based goal, the restriction period with respect to such
shares shall not be less than one year, and in the event any such Restricted
Stock granted to employees shall have a time-based restriction, the total
restriction period with respect to such shares shall not be less than three
years; provided, however, that Restricted Stock with a time-based restriction
may become vested incrementally over such three-year period. Subsequent to such
date or dates and/or the attainment of such pre-established performance goals,
objectives and other conditions, the shares on which all restrictions have
lapsed shall no longer be Restricted Stock and shall be deemed “vested.” Except
as may otherwise be provided by the Administrator either in the Award Agreement
or, subject to Section 18 below, in writing after the Award Agreement is
issued, a grantee’s rights in any shares of Restricted Stock that have not
vested shall automatically terminate upon the grantee’s termination of
employment (or other service relationship) with the Company and its
Subsidiaries and such shares shall be subject to the provisions of Section 7(c) above.

 

SECTION 8.       DEFERRED STOCK AWARDS

 

(a)     Nature of Deferred Stock
Awards.    The Administrator shall determine the
restrictions and conditions applicable to each Deferred Stock Award at the time
of grant. Conditions may be based on continuing employment (or other service
relationship) and/or achievement of pre-established performance goals and
objectives. The grant of a Deferred Stock Award is contingent on the grantee
executing the Deferred Stock Award Agreement. The terms and conditions of each
such Award Agreement shall be determined by the Administrator, and such terms
and conditions may differ among individual Awards and grantees. Notwithstanding
the foregoing, in the event that any such Deferred Stock Award granted to
employees shall have a performance-based goal, the restriction period with
respect to such Award shall not be less than one year, and in the event any
such Deferred Stock Award granted to employees shall have a time-based
restriction, the total restriction period with respect to such Award shall not
be less than three years; provided, however, that any Deferred Stock Award with
a time-based restriction may become vested incrementally over such three-year
period. At the end of the deferral period, the Deferred Stock Award, to the
extent vested, shall be settled in the form of shares of Stock. To the extent
that a Deferred Stock Award is subject to Section 409A, it may contain
such additional terms and conditions as the Administrator shall determine in
its sole discretion in order for such Award to comply with the requirements of Section 409A..

 

10

 

(b)    Election
to Receive Deferred Stock Awards in Lieu of Compensation.    The
Administrator may, in its sole discretion, permit a grantee to elect to receive
a portion of future cash compensation otherwise due to such grantee in the form
of a Deferred Stock Award. Any such election shall be made in writing and shall
be delivered to the Company no later than the date specified by the
Administrator and in accordance with Section 409A and such other rules and
procedures established by the Administrator. Any such future cash compensation
that the grantee elects to defer shall be converted to a fixed number of
phantom stock units based on the Fair Market Value of Stock on the date the
compensation would otherwise have been paid to the grantee if such payment had
not been deferred as provided herein. The Administrator shall have the sole
right to determine whether and under what circumstances to permit such
elections and to impose such limitations and other terms and conditions thereon
as the Administrator deems appropriate.

 

(c)    Rights
as a Stockholder.    A grantee shall have the
rights as a stockholder only as to shares of Stock acquired by the grantee upon
settlement of a Deferred Stock Award; provided, however, that the grantee may
be credited with Dividend Equivalent Rights with respect to the phantom stock
units underlying his Deferred Stock Award, subject to such terms and conditions
as the Administrator may determine.

 

(d)    Termination.    Except
as may otherwise be provided by the Administrator either in the Award Agreement
or, subject to Section 18 below, in writing after the Award Agreement is
issued, a grantee’s right in all Deferred Stock Awards that have not vested
shall automatically terminate upon the grantee’s termination of employment (or
cessation of service relationship) with the Company and its Subsidiaries for
any reason.

 

SECTION 9.    UNRESTRICTED STOCK AWARDS

 

Grant or Sale of Unrestricted
Stock.    The Administrator may, in its sole discretion,
grant (or sell at par value or such higher purchase price determined by the
Administrator) an Unrestricted Stock Award under the Plan. Unrestricted Stock
Awards may be granted in respect of past services or other valid consideration,
or in lieu of cash compensation due to such grantee.

 

SECTION 10.    CASH-BASED AWARDS

 

Grant of Cash-Based Awards.    The
Administrator may, in its sole discretion, grant Cash-Based Awards to any
grantee in such number or amount and upon such terms, and subject to such
conditions, as the Administrator shall determine at the time of grant. The
Administrator shall determine the maximum duration of the Cash-Based Award, the
amount of cash to which the Cash-Based Award pertains, the conditions upon
which the Cash-Based Award shall become vested or payable, and such other
provisions as the Administrator shall determine. Each Cash-Based Award shall
specify a cash-denominated payment amount, formula or payment ranges as
determined by the Administrator. Payment, if any, with respect to a Cash-Based
Award shall be made in accordance with the terms of the Award and may be made
in cash or in shares of Stock, as the Administrator determines.

 

11

 

SECTION 11.    PERFORMANCE SHARE AWARDS

 

(a)    Nature
of Performance Share Awards.    The
Administrator may, in its sole discretion, grant Performance Share Awards
independent of, or in connection with, the granting of any other Award under
the Plan. The Administrator shall determine whether and to whom Performance
Share Awards shall be granted, the Performance Goals, the periods during which
performance is to be measured, and such other limitations and conditions as the
Administrator shall determine.

 

(b)    Rights
as a Stockholder.    A grantee receiving a
Performance Share Award shall have the rights of a stockholder only as to
shares actually received by the grantee under the Plan and not with respect to
shares subject to the Award but not actually received by the grantee. A grantee
shall be entitled to receive shares of Stock under a Performance Share Award
only upon satisfaction of all conditions specified in the Performance Share
Award agreement (or in a performance plan adopted by the Administrator).

 

(c)    Termination.    Except
as may otherwise be provided by the Administrator either in the Award agreement
or, subject to Section 18 below, in writing after the Award agreement is
issued, a grantee’s rights in all Performance Share Awards shall automatically
terminate upon the grantee’s termination of employment (or cessation of service
relationship) with the Company and its Subsidiaries for any reason.

 

SECTION 12.    PERFORMANCE-BASED AWARDS TO COVERED EMPLOYEES

 

(a)    Performance-Based
Awards.    Any employee or other key person
providing services to the Company and who is selected by the Administrator may
be granted one or more Performance-Based Awards in the form of a Restricted
Stock Award, Deferred Stock Award, Performance Share Awards or Cash-Based Award
payable upon the attainment of Performance Goals that are established by the
Administrator and relate to one or more of the Performance Criteria, in each
case on a specified date or dates or over any period or periods determined by
the Administrator. The Administrator shall define in an objective fashion the
manner of calculating the Performance Criteria it selects to use for any
Performance Period. Depending on the Performance Criteria used to establish
such Performance Goals, the Performance Goals may be expressed in terms of
overall Company performance or the performance of a division, business unit, or
an individual. The Administrator, in its discretion, may adjust or modify the
calculation of Performance Goals for such Performance Period in order to
prevent the dilution or enlargement of the rights of an individual (i) in
the event of, or in anticipation of, any unusual or extraordinary corporate
item, transaction, event or development, (ii) in recognition of, or in
anticipation of, any other unusual or nonrecurring events affecting the
Company, or the financial statements of the Company, or (iii) in response
to, or in anticipation of, changes in applicable laws, regulations, accounting
principles, or business conditions provided however, that the Administrator may
not exercise such discretion in a manner that would increase the
Performance-Based Award granted to a Covered Employee. Each Performance-Based
Award shall comply with the provisions set forth below.

 

(b)    Grant
of Performance-Based Awards.    With respect to
each Performance-Based Award granted to a Covered Employee, the Administrator
shall select, within the first 90 days of

 

12

 

a
Performance Cycle (or, if shorter, within the maximum period allowed under Section 162(m) of
the Code) the Performance Criteria for such grant, and the Performance Goals
with respect to each Performance Criterion (including a threshold level of
performance below which no amount will become payable with respect to such
Award). Each Performance-Based Award will specify the amount payable, or the
formula for determining the amount payable, upon achievement of the various
applicable performance targets. The Performance Criteria established by the
Administrator may be (but need not be) different for each Performance Cycle and
different Performance Goals may be applicable to Performance-Based Awards to
different Covered Employees.

 

(c)    Payment
of Performance-Based Awards.    Following the
completion of a Performance Cycle, the Administrator shall meet to review and
certify in writing whether, and to what extent, the Performance Goals for the
Performance Cycle have been achieved and, if so, to also calculate and certify
in writing the amount of the Performance-Based Awards earned for the
Performance Cycle. The Administrator shall then determine the actual size of
each Covered Employee’s Performance-Based Award, and, in doing so, may reduce
or eliminate the amount of the Performance-Based Award for a Covered Employee
if, in its sole judgment, such reduction or elimination is appropriate.

 

(d)    Maximum
Award Payable.    The maximum Performance-Based
Award payable to any one Covered Employee under the Plan for a Performance
Cycle is 250,000 Shares (subject to adjustment as provided in Section 3(b) hereof).

 

SECTION 13.    DIVIDEND EQUIVALENT RIGHTS

 

(a)    Dividend
Equivalent Rights.    A Dividend Equivalent
Right may be granted hereunder to any grantee as a component of a Deferred
Stock Award, Restricted Stock Award or Performance Share Award or as a
freestanding award. The terms and conditions of Dividend Equivalent Rights
shall be specified in the Award Agreement. Dividend equivalents credited to the
holder of a Dividend Equivalent Right may be paid currently or may be deemed to
be reinvested in additional shares of Stock, which may thereafter accrue
additional equivalents. Any such reinvestment shall be at Fair Market Value on
the date of reinvestment or such other price as may then apply under a dividend
reinvestment plan sponsored by the Company, if any. Dividend Equivalent Rights
may be settled in cash or shares of Stock or a combination thereof, in a single
installment or installments. A Dividend Equivalent Right granted as a component
of a Deferred Stock Award, Restricted Stock Award or Performance Share Award
may provide that such Dividend Equivalent Right shall be settled upon
settlement or payment of, or lapse of restrictions on, such other Award, and
that such Dividend Equivalent Right shall expire or be forfeited or annulled
under the same conditions as such other Award. A Dividend Equivalent Right
granted as a component of a Deferred Stock Award, Restricted Stock Award or
Performance Share Award may also contain terms and conditions different from
such other Award.

 

(b)    Interest
Equivalents.    Any Award under this Plan that
is settled in whole or in part in cash on a deferred basis may provide in the
grant for interest equivalents to be credited with

 

13

 

respect
to such cash payment. Interest equivalents may be compounded and shall be paid
upon such terms and conditions as may be specified by the grant.

 

(c)    Termination.    Except
as may otherwise be provided by the Administrator either in the Award Agreement
or, subject to Section 18 below, in writing after the Award Agreement is
issued, a grantee’s rights in all Dividend Equivalent Rights or interest
equivalents granted as a component of a Deferred Stock Award, Restricted Stock
Award or Performance Share Award that has not vested shall automatically
terminate upon the grantee’s termination of employment (or cessation of service
relationship) with the Company and its Subsidiaries for any reason.

 

SECTION 14.    TRANSFERABILITY OF AWARDS

 

(a)    Transferability.    Except
as provided in Section 14(b) below, during a grantee’s lifetime, his
or her Awards shall be exercisable only by the grantee, or by the grantee’s
legal representative or guardian in the event of the grantee’s incapacity. No
Awards shall be sold, assigned, transferred or otherwise encumbered or disposed
of by a grantee other than by will or by the laws of descent and distribution.
No Awards shall be subject, in whole or in part, to attachment, execution, or
levy of any kind, and any purported transfer in violation hereof shall be null
and void.

 

(b)    Administrator
Action.    Notwithstanding Section 14(a),
the Administrator, in its discretion, may provide either in the Award Agreement
regarding a given Award or by subsequent written approval that the grantee (who
is an employee or director) may transfer his or her Awards (other than any
Incentive Stock Options) to his or her immediate family members, to trusts for
the benefit of such family members, or to partnerships in which such family
members are the only partners, provided that the transferee agrees in writing
with the Company to be bound by all of the terms and conditions of this Plan
and the applicable Award.

 

(c)    Family
Member.    For purposes of Section 14(b), “family
member” shall mean a grantee’s child, stepchild, grandchild, parent,
stepparent, grandparent, spouse, former spouse, sibling, niece, nephew,
mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or
sister-in-law, including adoptive relationships, any person sharing the grantee’s
household (other than a tenant of the grantee), a trust in which these persons
(or the grantee) have more than 50 percent of the beneficial interest, a
foundation in which these persons (or the grantee) control the management of
assets, and any other entity in which these persons (or the grantee) own more than
50 percent of the voting interests.

 

(d)    Designation
of Beneficiary.    Each grantee to whom an Award
has been made under the Plan may designate a beneficiary or beneficiaries to
exercise any Award or receive any payment under any Award payable on or after
the grantee’s death. Any such designation shall be on a form provided for that
purpose by the Administrator and shall not be effective until received by the
Administrator. If no beneficiary has been designated by a deceased grantee, or
if the designated beneficiaries have predeceased the grantee, the beneficiary
shall be the grantee’s estate.

 

14

 

SECTION 15.    TAX WITHHOLDING

 

(a)    Payment by Grantee.    Each
grantee shall, no later than the date as of which the value of an Award or of
any Stock or other amounts received thereunder first becomes includable in the
gross income of the grantee for Federal income tax purposes, pay to the
Company, or make arrangements satisfactory to the Administrator regarding
payment of, any Federal, state, or local taxes of any kind required by law to
be withheld by the Company with respect to such income. The Company and its
Subsidiaries shall, to the extent permitted by law, have the right to deduct
any such taxes from any payment of any kind otherwise due to the grantee. The
Company’s obligation to deliver evidence of book entry (or stock certificates)
to any grantee is subject to and conditioned on tax withholding obligations
being satisfied by the grantee.

 

(b)    Payment
in Stock.    Subject to approval by the
Administrator, a grantee may elect to have the Company’s minimum required tax
withholding obligation satisfied, in whole or in part, by authorizing the
Company to withhold from shares of Stock to be issued pursuant to any Award a
number of shares with an aggregate Fair Market Value (as of the date the
withholding is effected) that would satisfy the withholding amount due.

 

SECTION 16.    SECTION 409A AWARDS.

 

To the extent that any Award is determined to constitute
“nonqualified deferred compensation” within the meaning of Section 409A (a
“409A Award”), the Award shall be subject to such additional rules and
requirements as specified by the Administrator from time to time in order to
comply with Section 409A. In this regard, if any amount under a 409A Award
is payable upon a “separation from service” (within the meaning of Section 409A)
to a grantee who is then considered a “specified employee” (within the meaning
of Section 409A), then no such payment shall be made prior to the date
that is the earlier of (i) six months and one day after the grantee’s
separation from service, or (ii) the grantee’s death, but only to the
extent such delay is necessary to prevent such payment from being subject to
interest, penalties and/or additional tax imposed pursuant to Section 409A.
Further, the settlement of any such Award may not be accelerated except to the
extent permitted by Section 409A.

 

SECTION 17.    TRANSFER, LEAVE OF ABSENCE, ETC.

 

For purposes of the Plan, the following events shall
not be deemed a termination of employment:

 

(a)   a
transfer to the employment of the Company from a Subsidiary or from the Company
to a Subsidiary, or from one Subsidiary to another; or

 

(b)   an
approved leave of absence for military service or sickness, or for any other
purpose approved by the Company, if the employee’s right to re-employment is
guaranteed either by a statute or by contract or under the policy pursuant to
which the leave of absence was granted or if the Administrator otherwise so
provides in writing.

 

15

 

SECTION 18.    AMENDMENTS AND TERMINATION

 

The Board may, at any time,
amend or discontinue the Plan and the Administrator may, at any time, amend or
cancel any outstanding Award for the purpose of satisfying changes in law or
for any other lawful purpose, but no such action shall (a) adversely
affect rights under any outstanding Award without the holder’s consent or (b) except
as provided in Section 3(b) or 3(c), without the prior approval of
the Company’s stockholders, reduce the exercise price of or otherwise reprice,
including through replacement grants, any outstanding Stock Option or Stock
Appreciation Right. To the extent required under the rules of any
securities exchange or market system on which the Stock is listed, to the
extent determined by the Administrator to be required by the Code to ensure
that Incentive Stock Options granted under the Plan are qualified under Section 422
of the Code or to ensure that compensation earned under Awards qualifies as
performance-based compensation under Section 162(m) of the Code, Plan
amendments shall be subject to approval by the Company stockholders entitled to
vote at a meeting of stockholders. Nothing in this Section 18 shall limit
the Administrator’s authority to take any action permitted pursuant to Section 3(c).

 

SECTION 19.    STATUS OF PLAN

 

With respect to the portion of any Award that has
not been exercised and any payments in cash, Stock or other consideration not received
by a grantee, a grantee shall have no rights greater than those of a general
creditor of the Company unless the Administrator shall otherwise expressly
determine in connection with any Award or Awards. In its sole discretion, the
Administrator may authorize the creation of trusts or other arrangements to
meet the Company’s obligations to deliver Stock or make payments with respect
to Awards hereunder, provided that the existence of such trusts or other
arrangements is consistent with the foregoing sentence.

 

SECTION 20.    CHANGE OF CONTROL PROVISIONS

 

Upon the occurrence of a Change of Control as
defined in this Section 20:

 

(a)   Except
as otherwise provided in the applicable Award agreement, each outstanding Stock
Option, Stock Appreciation Right and Dividend Equivalent Right shall
automatically become fully exercisable.

 

(b)   Except
as otherwise provided in the applicable Award Agreement, conditions and
restrictions on each outstanding Restricted Stock Award, Deferred Stock Award
and Performance Share Award which relate solely to the passage of time and
continued employment will be removed. Performance or other conditions (other
than conditions and restrictions relating solely to the passage of time and
continued employment) will continue to apply unless otherwise provided in the
applicable Award Agreement.

 

(c)   “Change
of Control” shall mean the occurrence of any one of the following events:

 

16

 

(i)  any
“Person,” as such term is used in
Sections 13(d) and 14(d) of the Act (other than the Company, any
of its Subsidiaries, or any trustee, fiduciary or other person or entity
holding securities under any employee benefit plan or trust of the Company or
any of its Subsidiaries), together with all “affiliates” and “associates” (as
such terms are defined in Rule 12b-2 under the Act) of such person, shall
become the “beneficial owner” (as such term is defined in Rule 13d-3 under
the Act), directly or indirectly, of securities of the Company representing 25 percent
or more of the combined voting power of the Company’s then outstanding
securities having the right to vote in an election of the Company’s Board of
Directors (“Voting Securities”) (in such case other than as a result of an
acquisition of securities directly from the Company); or

 

(ii)  persons
who, as of the Effective Date, constitute the Company’s Board of Directors (the
“Incumbent Directors”) cease for any reason, including, without limitation, as
a result of a tender offer, proxy contest, merger or similar transaction, to
constitute at least a majority of the Board, provided that any person becoming
a director of the Company subsequent to the Effective Date shall be considered
an Incumbent Director if such person’s election was approved by or such person
was nominated for election by either (A) a vote of at least a majority of
the Incumbent Directors or (B) a vote of at least a majority of the
Incumbent Directors who are members of a nominating committee comprised, in the
majority, of Incumbent Directors; but provided further, that any such person
whose initial assumption of office is in connection with an actual or
threatened election contest relating to the election of members of the Board of
Directors or other actual or threatened solicitation of proxies or consents by
or on behalf of a Person other
than the Board, including by reason of agreement intended to avoid or settle
any such actual or threatened contest or solicitation, shall not be considered
an Incumbent Director; or

 

(iii)  the
consummation of (A) any consolidation or merger of the Company where the
stockholders of the Company, immediately prior to the consolidation or merger,
would not, immediately after the consolidation or merger, beneficially own (as
such term is defined in Rule 13d-3 under the Act), directly or indirectly,
shares representing in the aggregate more than 50 percent of the voting
shares of the corporation issuing cash or securities in the consolidation or
merger (or of its ultimate parent corporation, if any), (B) any sale,
lease, exchange or other transfer (in one transaction or a series of
transactions contemplated or arranged by any party as a single plan) of all or
substantially all of the assets of the Company; or

 

(iv)  the
shareholders of the Company shall approve any plan or proposal for the
liquidation or dissolution of the Company.

 

Notwithstanding the foregoing, a “Change of Control”
shall not be deemed to have occurred for purposes of the foregoing clause (i) solely
as the result of an acquisition of securities by the Company which, by reducing
the number of shares of Voting Securities outstanding, increases the
proportionate number of shares of Voting Securities beneficially owned by any
person to

 

17

 

25 percent
or more of the combined voting power of all then outstanding Voting Securities;
provided, however, that if any person referred to in
this sentence shall thereafter become the beneficial owner of any additional
shares of Voting Securities (other than pursuant to a stock split, stock
dividend, or similar transaction or as a result of an acquisition of securities
directly from the Company), then a “Change
of Control” shall be deemed to have occurred for purposes of the
foregoing clause (i).

 

SECTION 21.    GENERAL PROVISIONS

 

(a)    No
Distribution.    The Administrator may require
each person acquiring Stock pursuant to an Award to represent to and agree with
the Company in writing that such person is acquiring the shares without a view
to distribution thereof.

 

(b)    Delivery
of Stock Certificates.    Stock certificates to
grantees under this Plan shall be deemed delivered for all purposes when the
Company or a stock transfer agent of the Company shall have mailed such
certificates in the United States mail, addressed to the grantee, at the
grantee’s last known address on file with the Company. Uncertificated Stock
shall be deemed delivered for all purposes when the Company or a Stock transfer
agent of the Company shall have given to the grantee by electronic mail (with
proof of receipt) or by United States mail, addressed to the grantee, at the
grantee’s last known address on file with the Company, notice of issuance and
recorded the issuance in its records (which may include electronic “book entry”
records). Notwithstanding anything herein to the contrary, the Company shall
not be required to issue or deliver any certificates evidencing shares of Stock
pursuant to the exercise of any Award, unless and until the Administrator has
determined, with advice of counsel (to the extent the Administrator deems such
advice necessary or advisable), that the issuance and delivery of such
certificates is in compliance with all applicable laws, regulations of
governmental authorities and, if applicable, the requirements of any exchange
on which the shares of Stock are listed, quoted or traded. All Stock
certificates delivered pursuant to the Plan shall be subject to any
stop-transfer orders and other restrictions as the Administrator deems
necessary or advisable to comply with federal, state or foreign jurisdiction,
securities or other laws, rules and quotation system on which the Stock is
listed, quoted or traded. The Administrator may place legends on any Stock
certificate to reference restrictions applicable to the Stock. In addition to
the terms and conditions provided herein, the Administrator may require that an
individual make such reasonable covenants, agreements, and representations as
the Administrator, in its discretion, deems necessary or advisable in order to
comply with any such laws, regulations, or requirements. The Administrator
shall have the right to require any individual to comply with any timing or
other restrictions with respect to the settlement or exercise of any Award,
including a window-period limitation, as may be imposed in the discretion of
the Administrator.

 

(c)    Stockholder
Rights.    Until Stock is deemed delivered in
accordance with Section 21(b), no right to vote or receive dividends or
any other rights of a stockholder will exist with respect to shares of Stock to
be issued in connection with an Award, notwithstanding the exercise of a Stock
Option or any other action by the grantee with respect to an Award.

 

(d)    Other
Compensation Arrangements; No Employment Rights.    Nothing
contained in this Plan shall prevent the Board from adopting other or
additional compensation arrangements,

 

18

 

including
trusts, and such arrangements may be either generally applicable or applicable
only in specific cases. The adoption of this Plan and the grant of Awards do
not confer upon any employee any right to continued employment with the Company
or any Subsidiary.

 

(e)    Trading
Policy Restrictions.    Option exercises and
other Awards under the Plan shall be subject to such Company’s insider trading
policy and procedures, as in effect from time to time.

 

(f)    Forfeiture
of Awards under Sarbanes-Oxley Act.    If the
Company is required to prepare an accounting restatement due to the material
noncompliance of the Company, as a result of misconduct, with any financial
reporting requirement under the securities laws, then any grantee who is one of
the individuals subject to automatic forfeiture under Section 304 of the
Sarbanes-Oxley Act of 2002 shall reimburse the Company for the amount of any
Award received by such individual under the Plan during the 12-month period
following the first public issuance or filing with the United States Securities
and Exchange Commission, as the case may be, of the financial document
embodying such financial reporting requirement.

 

SECTION 22.    EFFECTIVE DATE OF PLAN

 

This Plan shall become effective upon approval by
the holders of a majority of the votes cast at a meeting of stockholders at
which a quorum is present. No grants of Stock Options and other Awards may be
made hereunder after the tenth anniversary of the Effective Date and no grants
of Incentive Stock Options may be made hereunder after the tenth anniversary of
the date the Plan is approved by the Board.

 

SECTION 23.    GOVERNING LAW

 

This Plan and all Awards and actions taken
thereunder shall be governed by, and construed in accordance with, the laws of
the State of Delaware, applied without regard to conflict of law principles.

 

19

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