Document:

EXHIBIT
10.3

 

RESEARCH AGREEMENT (PACLITAXEL)

 

 

                This Research Agreement (the
“Agreement”), effective as of the 15th day of November, 1999 (the
“Effective Date”), is between CLAYTON FOUNDATION FOR RESEARCH, a Texas
nonprofit corporation having its office at One Riverway, Suite 1560, Houston,
Texas 77056 (“Clayton”); RESEARCH DEVELOPMENT FOUNDATION, a Nevada nonprofit
corporation having its office at 402 North Division Street, Carson City, Nevada
89703 (“RDF”); and SUPERGEN, INC., a Delaware corporation having an office at
Two Annabel Lane, Suite 220, San Ramon, California 94583 (“Company”).

 

 

WITNESSETH:

 

                WHEREAS, Clayton is a nonprofit
organization exempt from taxation under Section 501(c)(3) of the Internal
Revenue Code of 1986, as amended (the “Code”);

 

                WHEREAS, RDF is a nonprofit
organization exempt from taxation under Section 501(c)(3) of the Code that is
assigned title to inventions, discoveries and know-how arising out of Clayton’s
research for patenting and licensing;

 

                WHEREAS, Company is interested
in research in the field described in Exhibit A hereto (the “Field of
Interest”);

 

                WHEREAS, Clayton has ongoing
research involving cancer therapy wherein paclitaxel and analogues thereof are
delivered in liposomes to the respiratory tract via aqueous aerosol droplets,
at Baylor College of Medicine (“Institution”) under the direction of Vernon
Knight, M.D. (“Scientist”), at least some of which is directed to the Field of
Interest;

 

                WHEREAS, Company will provide
funding to Clayton for its use in the conduct of further research at
Institution under the direction of Scientist, all as described herein;

 

                WHEREAS, Clayton will assign to
RDF any inventions, discoveries and know-how arising out of such research; and

 

                WHEREAS, RDF will, subject to
the terms and conditions hereof, grant to Company an exclusive license to any
inventions or discoveries arising out of the research funded hereunder;

 

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

 

 

 

 

                I.              Supply of Research Material.  Company will provide to Scientist at no cost
such quantities of paclitaxel (GMP grade) as Clayton and Scientist will need to
conduct the research contemplated hereunder. 
Clayton, through Scientist, will notify Company reasonably in advance of
its needs for and quantities of paclitaxel required.  In the event that Company cannot or does not provide Clayton with
the required quantities of paclitaxel, Clayton may purchase such quantities,
and Company will promptly reimburse Clayton for the cost thereof by cash
payment.  Such cost shall not reduce the
amounts that Company agrees to pay Clayton otherwise pursuant to this
Agreement.

 

                2.             Research. 
Clayton will conduct research at Institution under the direction of
Scientist in accordance with the work plan set forth in Exhibit B hereto.  Such work plan may be modified or changed
from time to time by written agreement of Clayton and Company.

 

                3.             Funding. 
Company will provide funding to be used for the performance of this
research as set forth in Exhibit C hereto.

 

                4.             Reporting.  Clayton will keep Company informed of the
progress of the research conducted hereunder. 
Clayton agrees to make periodic informal verbal reports to a designated
representative or representatives of Company, to respond to reasonable
inquiries of Company regarding the status of the research, to promptly disclose
to Company the existence of any discoveries or inventions which are made in the
conduct of the research hereunder, and to provide to Company a detailed written
report to be prepared annually or at the conclusion of the research.

 

                5.             Inventions/Patents.  Any discoveries or inventions which are conceived or reduced to
practice during the term of this Agreement and which directly result from the
performance of the research hereunder, as well as any patent applications and
patents therefor, shall be owned by RDF but shall be subject to Company’s
license as set forth below.  RDF shall
have the right in the first instance to elect to prepare, file, prosecute and
maintain patent applications for such inventions and, if it declines to do so,
Company shall have the right to do so. Neither Company nor RDF will forego or
abandon such patenting efforts without first notifying the other party of its
intent and allowing such other party the opportunity to pursue patenting at the
latter’s sole expense and responsibility.

 

                6.             a.             License.   Any discoveries or inventions hereunder
shall be deemed to be “Proprietary Property” as defined in the License
Agreement (Paclitaxel) of November 15, 1999, between RDF and Company (the
“License Agreement”), which License Agreement is incorporated herein by
reference for all purposes.  Thus such
discoveries and inventions automatically shall be licensed exclusively to
Company in the Field of Use as defined in the License Agreement under the terms
and conditions set forth therein. At the appropriate time, the parties agree to
amend Exhibit 1 of the License Agreement to include discoveries and inventions
hereunder as Proprietary Property for 

 

 

2

 

 

purposes
of the License Agreement.

 

                                b.             Analogue Research; Election.  While paclitaxel and all analogues thereof
are included in the Field of Use granted to Company pursuant to the License
Agreement, the Work Plan (Exhibit B) contemplates that the research pursuant to
this Agreement will be limited to paclitaxel itself.  Clayton, at its sole expense, may conduct research on paclitaxel
analogues (hereafter “Analogue(s)”) either during or after the term of this
Agreement.  If comparative xenograft
model studies of any Analogue(s) demonstrate equivalency to paclitaxel, Clayton
or RDF may so notify Company in writing. 
Within thirty (30) days from the date of such notice, Company shall
inform Clayton or RDF in writing whether it elects to enter into a research
agreement with Clayton and fund research with respect to the Analogue(s) that
are the subject of Clayton’s or RDF’s notice to Company.  Absent such a timely election by Company,
the Analogue(s) subject of Clayton’s or RDF’s notice to Company shall
thereafter be deemed excluded from the Field of Use of Exhibit 1A of the
License Agreement.  In the event that
Company elects to fund research with respect to the Analogue(s) that are
subject of Clayton’s or RDF’s notice to Company, the parties shall in good
faith negotiate a research agreement with mutually agreeable terms, and Company
will pay to Clayton (i) the amount that Company and Clayton agree upon for
conduct of the research, and (ii) a sum to reimburse Clayton for its research
costs with respect to each of the Analogue(s) up to the date of Company’s
written election, said sum to be calculated as follows:

 

i.              two hundred fifty percent (250%) of the research costs
up to and including $50,000.00; and

 

ii.             two hundred percent (200%) of the research costs in
excess of $50,000.00.

 

                7.             Term; Termination of Agreement.
Anything herein to the contrary notwithstanding, this Agreement and the
transactions contemplated by this Agreement shall terminate on November 15,
2001; provided that the term hereof may be extended by mutual consent in
writing of Clayton and Company; and provided further that this Agreement may
otherwise be terminated at any time as follows:

 

                                a.             Mutual Consent.  By mutual consent in writing of Clayton and
Company.

 

                                b.             Company’s Failure to Meet Its
Obligations Hereunder.  By Clayton
by written notice to Company if Company fails to carry out its obligations
under the terms of this Agreement or under the terms of other legal agreements
between Company and either RDF or Clayton, and does not cure any such failure
within thirty (30) days after notice thereof from Clayton.

 

 

 

3

 

 

                                c.             RDF or Clayton’s Failure to Meet
Obligations Hereunder.  By Company
by written notice to RDF if RDF or Clayton fail to carry out their obligations
under the terms of this Agreement and do not cure any such failure within
thirty (30) days after notice thereof from Company.

 

                8.             Effect of Termination.  In the event that this Agreement shall be terminated, all further
obligations of the parties under this Agreement shall terminate without further
liability of any party to another; provided, however, that the confidentiality
obligations of the parties contained in Section 17 hereof, Company’s license
under discoveries and inventions prior to termination pursuant to Section 6 a.,
and the analogue research and election pursuant to Section 6 b., shall survive
any such termination.  Notwithstanding
the foregoing, a termination shall not relieve any party of any liability for a
breach of, or for any misrepresentation under, this Agreement or be deemed to
constitute a waiver of any available remedy (including specific performance if
available) for any such breach or misrepresentation.

 

                9.             Amendments; Waivers.  This Agreement and any schedule or exhibit
attached hereto may be amended only by agreement in writing of all
parties.  No waiver of any provision nor
consent to any exception to the terms of this Agreement or any agreement
contemplated hereby shall be effective unless in writing and signed by the
party to be bound and then only to the specific purpose, extent and instance so
provided.

 

                10.           Schedules; Exhibits; Integration.  Each schedule and exhibit delivered pursuant
to the terms of this Agreement shall be in writing and shall constitute a part
of this Agreement, although schedules need not be attached to each copy of this
Agreement.  This Agreement, together
with such schedules and exhibits, and the License Agreement constitute the
entire agreement among the parties pertaining to the subject matter hereof and
supersede all prior agreements and understandings of the parties in connection
therewith.

 

                11.           Best Efforts; Further Assurances.  Each party shall use its best efforts to
cause all conditions to its and the other parties’ obligations hereunder to be
timely satisfied and to perform and fulfill all obligations on its part to be
performed and fulfilled under this Agreement, to the end that the transactions
contemplated by this Agreement shall be effected substantially in accordance
with its terms as soon as reasonably practicable.  The parties shall cooperate with each other in such actions.

 

                12.           Governing Law. 
Except as otherwise expressly provided, this Agreement and the legal
relations between the parties shall be governed by and construed in accordance
with the laws of the State of Nevada applicable to contracts made and performed
in such State and without regard to conflicts of law doctrines, and
jurisdiction and venue for any dispute regarding this Agreement will be in such
State.

 

 

4

 

                13.           No Assignment. 
Neither this Agreement nor any rights or obligations under it are
assignable without the prior written consent of the other parties hereto.

 

                14.           Headings. 
The descriptive headings of the sections and subsections of this
Agreement are for convenience only and do not constitute a part of this
Agreement.

 

                15.           Counterparts. 
This Agreement and any amendment hereto or any other agreement (or
document) delivered pursuant hereto may be executed in one or more counterparts
and by different parties in separate counterparts.  All of such counterparts shall constitute one and the same
agreement (or other document) and shall become effective (unless otherwise
provided therein) when one or more counterparts have been signed by each party
and delivered to the other parties.

 

                16.           Publicity / Publications.

 

                                a.             Clayton and Company shall
coordinate all publicity relating to the transactions contemplated by this
Agreement.  No party hereto shall issue
any press release, publicity statement or other public notice relating to this
Agreement, or the transactions contemplated by this Agreement, without the prior
consent of both Clayton and Company, except to the extent otherwise required by
applicable law.  Unless required by law,
without prior written consent from the other party, a party shall not use for
purposes of sales, advertising, marketing, marking of goods, promotion to
investors, press releases or other publicity, etc.:  (i) the name of (or any other information which would identify)
the other party or any corporation which is controlled by the same persons who control
such other party (“Other Corporation”); (ii) the names of trustees, directors,
officers, or employees of such other party or an Other Corporation; or (iii)
any trademarks (or adaptations thereof) of such other party or an Other
Corporation.

 

                                b.             Each party is prepared to assist
the other parties in seeking patent or copyright protection for proprietary
property owned by the others.  In this
regard, no publication of the subject matter and/or results of the research
conducted hereunder shall be made by any party without giving the other parties
sixty (60) days notice in advance thereof so that patent applications can be
filed before such publication, if appropriate.

 

                17.           Confidentiality. 
All proprietary property and information disclosed by any party (or its
representatives) whether before or after the date hereof, in connection with
the transactions contemplated by, or the discussions and negotiations
preceding, this Agreement to any other party (or its representatives) shall be
kept confidential by such other party and its representatives and, unless
waived in writing by the other parties, shall not be used by any such persons
other than as contemplated by this Agreement, except that such restrictions
shall not apply to:  (i) information
which, at the time of disclosure, is in the public domain or which, after
disclosure, becomes part of the public domain through no fault of the receiving
party; (ii) information which the receiving party can show 

 

 

5

 

was
in its possession at the time of disclosure and which was not acquired,
directly or indirectly, from the disclosing party; (iii) information which was
lawfully obtained or received from a third party, other than the disclosing
party, having the legal right to transmit same; or (iv) the disclosure of such
information is essential for the commercial exploitation of the Proprietary
Property under this Agreement, provided that such information is disclosed
subject to a secrecy agreement.  If this
Agreement is terminated in accordance with its terms, each party shall use all
reasonable efforts to return upon written request from any other party all
documents (and reproductions thereof) received by it or its representatives
from such other party (and, in the case of reproductions, all such reproductions
made by the receiving party) that include information not within the exceptions
contained in the first sentence of this Section 17, unless the recipients
provide assurances reasonably satisfactory to the requesting party that such
documents have been destroyed; provided, however, that one copy of any such
documentation may be retained by the receiving party for the sole purpose of
monitoring compliance with this Agreement.

 

                18.           Parties in Interest.  This Agreement shall be binding upon and inure to the benefit of
each party, and nothing in this Agreement, express or implied, is intended to
confer upon any other person any rights or remedies of any nature whatsoever
under or by reason of this Agreement. 
Nothing in this Agreement is intended to relieve or discharge the
obligation of any third person to (or to confer any right of subrogation or
action over against) any party to this Agreement.

 

                19.           Notices. 
Any notice or other communication hereunder must be given in writing and
(a) delivered in person, (b) transmitted by telex, telefax or other
telecommunications mechanism, (c) mailed by certified or registered mail,
postage prepaid, receipt requested, or (d) sent by overnight delivery with
charges prepaid and receipt acknowledged, as follows:

 

                                If
to Clayton, addressed to:

                                Clayton
Foundation for Research

                                One
Riverway, Suite 1440

                                Houston,
Texas  77056

                                   Attn: 
C. W. Wellen, President

                                   cc: 
James F. Weiler, Esq., Vice President

 

 

 

6

 

                                If
to RDF, addressed to:

 

                                Research
Development Foundation

                                _
Andrew MacKenzie, Esq.

                                402
North Division Street

                                Carson
City, Nevada 89703

                                   Attn: 
C. W. Wellen, President

                                   cc: 
James F. Weiler, Esq.

 

                                If to Company,
addressed to:

 

                                SuperGen, Inc.

                                Two
Annabel Lane, Suite 220

                                San Ramon,
California 94583

                                   Attn: 
Simeon Wrenn, Ph.D., Vice President

                                   cc: 
Ms. Lucy Chang, Director, Planning and Legal Affairs

 

or
to such other address or to such other person as the party shall have last
designated by such notice to the other party. 
Each such notice or other communication shall be effective (i) if given
by mail, three (3) days after such communication is deposited in the mails with
postage prepaid, addressed as aforesaid, or (ii) if given by telecommunication
or any other means, when actually received at such address.

 

                20.           Expenses. 
Each party shall pay its own expenses incident to the negotiation,
preparation and performance of this Agreement and the transactions contemplated
hereby, including but not limited to the fees, expenses and disbursements of
their respective accountants and counsel.

 

                21.           Remedies; Waiver. 
All rights and remedies existing under this Agreement and any related
agreements or documents are cumulative to and not exclusive of, any rights or
remedies otherwise available under applicable law.  No failure on the part of any party to exercise or delay in
exercising any right hereunder shall be deemed a waiver thereof, nor shall any
single or partial exercise preclude any further or other exercise of such or
any other right.

 

                22.           Attorney Fees.     In the event of any action for the breach
of this Agreement or misrepresentation by any party, the prevailing party shall
be entitled to reasonable attorney’s fees, costs and expenses incurred in such
action.

 

                23.           Severability. 
If any provision of this Agreement is determined to be invalid, illegal
or unenforceable by any governmental entity, the remaining provisions of this
Agreement to the extent permitted by law shall remain in full force and effect;
provided that the essential terms and conditions of this Agreement remain
valid, binding and 

 

 

 

7

 

enforceable
and provided that the economic and legal substance of the transactions contemplated
is not affected in any manner materially adverse to any party.  In the event of any such determination, the
parties agree to negotiate in good faith to modify this Agreement to fulfill as
closely as possible the original intents and purposes hereof.  To the extent permitted by law, the parties
hereby to the same extent waive any provision of law that renders any provision
hereof prohibited or unenforceable in any respect.

 

 

[Remainder of page intentionally
left blank]

 

 

 

 

8

 

                IN WITNESS WHEREOF, each of the
parties hereto has caused this Agreement to be executed by its duly authorized
officers effective as of the date and year first above written.

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CLAYTON
  FOUNDATION FOR RESEARCH

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/
  C.W. Wellen

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  C.W.
  Wellen

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Date:

  	
  December
  3, 1999

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  RESEARCH
  DEVELOPMENT FOUNDATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/
  Andrew MacKenzie

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  Andrew
  MacKenzie

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Date:

  	
  December
  7, 1999

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	 
	
  SCIENTIST

  	
   

  	
   

  	
   

  	
  SUPERGEN, INC.

  
	 
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	 
	
  Agreed to and Accepted:

  	
   

  	
   

  	
   

  	
   

  
	 
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Dr. Joseph Rubinfeld

  
	 
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	 
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  Dr. Joseph Rubinfeld

  
	 
	
  /s/ Vernon Knight

  	
   

  	
   

  	
   

  	
   

  
	 
	
  Vernon Knight, M.D. (“Scientist”)

  	
  Title:

  	
  President & CEO

  
	 
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	 
	
   

  	
   

  	
   

  	
   

  	
  Date:

  	
  December 1, 1999

  
													

 

 

 

9

 

EXHIBIT A

 

Field of Interest

 

                Cancer therapy in humans wherein
paclitaxel is delivered in liposomes, lipid complexes, or other liposome
particles, to the respiratory tract via aqueous aerosol droplets.

 

 

 

 

 

 

 

 

 

 

 

EXHIBIT B

 

Work Plan

 

 

                The attachment titled
“Paclitaxel Liposome Aerosol Research Plan” describes the work plan and is
incorporated by reference herein.

 

 

 

 

 

 

 

 

 

EXHIBIT C

 

Funding Requirements

 

 

                The attachment titled “SuperGen
Budget for Paclitaxel” (the “Attachment”) sets forth the details for funding by
Company of the research to be conducted by Clayton in Years One and Two
pursuant to this Agreement and is incorporated by reference herein.

 

                Upon Company’s execution of this
Agreement and for each month thereafter (until Company’s transfer to Clayton of
registered stock for Year One as set forth below), Company shall pay Clayton
one-twelfth of the Total Budget amount for Year One as set forth in the
Attachment.  (In addition, for Year Two,
if the registered stock for such year is not issued to Clayton as set forth
below, Company shall for such year make monthly payments in advance to Clayton
in the amount of one-twelfth of the Total Budget amount for Year Two as set
forth in the Attachment.)

 

                Company’s obligations to make
monthly cash payments to fund this research shall terminate upon Company’s
delivery to Clayton of “Registered Stock” as set forth below, which stock the
parties agree will be subject to the following terms and conditions and will,
upon request by Clayton, be issued in the name of its nominee:

 

                1.             Shares of Company’s common stock (the “Registered
Stock”) for transfer to Clayton in satisfaction of Company’s funding
obligations under this Agreement will be registered with the Securities and
Exchange Commission (“SEC”).

 

                2.             Under the applicable securities laws, SEC registration
will qualify such shares for immediate sale by Clayton (although the actual
sale thereof by Clayton will be subject to the contractual volume and timing
limitations set forth below).  Company
will provide Clayton with an opinion of Company’s legal counsel as to the
foregoing in form reasonably satisfactory to Clayton.

 

                3.             The number of shares of Registered Stock to be initially
provided to Clayton hereunder will reflect the dollar amount for the Total
Budget for Year One as set forth in the Attachment, after deducting the total
cash payments made to Clayton prior to such Registered Stock being transferred
to Clayton.

 

                4.             The per share value of the Registered Stock for Year One
for purposes of calculating the number of shares to be transferred to Clayton
in accordance herewith is to be based upon the floating average sale price of
such stock for the thirty day period prior to the execution date of this
Agreement.

 

 

 

 

 

                5.             On or before December 1, 2000, additional shares of
Registered Stock will be provided by Company to Clayton in an amount reflecting
the Total Budget for Year Two as set forth in the Attachment.  The per share value of the Registered Stock
for Year Two for purposes of calculating the number of shares to be transferred
to Clayton in accordance herewith is to be based upon the floating average sale
price of such stock for the thirty day period prior to the delivery of such
shares to Clayton.

 

                6.             Upon its receipt from Company of shares of Registered
Stock hereunder, Clayton will proceed immediately to sell such shares on the
open market (assuming approval thereof in the opinion of Company’s legal
counsel that is provided to Clayton as described above and in a similar opinion
to be provided by Clayton’s counsel at the expense of Clayton).  However, upon receipt of shares hereunder,
Clayton agrees (a) not to sell, or offer for sale, more than one-fifth of such
shares on any given day, and (b) not to sell, or offer for sale, the entirety
of such shares over a period of less than one to two weeks.

 

                7.             Upon completion and settlement of the sales of such shares
for the year in question (i.e., Year One or Year Two) made by Clayton during
the course of such one to two week period, if the total proceeds from the sale
thereof, plus the total cash payments received by Clayton hereunder for such
year, is less than the Total Budget for such year, then in such event Company
will pay Clayton a sum in cash equal to the difference.  Any such deficiency payment that becomes due
hereunder will be paid to Clayton within one week of its providing notice and
documentation thereof to Company.EXHIBIT
10.4

 

 

 

 

 

 

 

 

 

 

 

 

 

LICENSE AGREEMENT (CAMPTOTHECIN)

 

BETWEEN

 

RESEARCH DEVELOPMENT FOUNDATION

 

AND

 

SUPERGEN, INC.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

 

 

	
   

  	
   

  
	
   

  	
   

  
	
  ARTICLE I Definitions

  	
   

  
	
   

  	
   

  
	
  ARTICLE II Grant of
  License

  	
   

  
	
  Scope of License

  	
   

  
	
  Right to Sublicense

  	
   

  
	
  Reference and Review

  	
   

  
	
   

  	
   

  
	
  ARTICLE III
  Patents and Improvements

  	
   

  
	
  Patent Applications

  	
   

  
	
  Patent Prosecution

  	
   

  
	
  Licensor Improvements

  	
   

  
	
  Licensee
  Improvements; Reporting

  	
   

  
	
  Licensee Improvements;
  Ownership

  	
   

  
	
  Assistance

  	
   

  
	
  Improvements;
  Prosecution by Licensee

  	
   

  
	
  Inclusions

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  IV Royalties and Other Consideration

  	
   

  
	
  License Fee

  	
   

  
	
  Royalty

  	
   

  
	
  Term of Royalty Obligation

  	
   

  
	
  Sublicenses

  	
   

  
	
  Deductions
  From Royalty Payments; Limitation on Deductions from Royalty Payments

  	
   

  
	
  Milestone Payments

  	
   

  
	
  Marketing Arrangements

  	
   

  
	
  Conditions

  	
   

  
	
   

  	
   

  
	
  ARTICLE V Payment and
  Reports

  	
   

  
	
  Notice of Commercial Sale

  	
   

  
	
  Payments and Reports

  	
   

  
	
  U.S. Dollars

  	
   

  
	
  Progress Reports

  	
   

  
	
  Report on Termination

  	
   

  
	
  Books and Records

  	
   

  
	
  Delinquent Payments

  	
   

  
	
   

  	
   

  
	
  ARTICLE VI Effort
  to Commercialize

  	
   

  

 

 

1

 

	
  Commercialization
  Obligation

  	
   

  
	
   

  	
   

  
	
  ARTICLE VII
  Protection of Patents

  	
   

  
	
  Protection

  	
   

  
	
  Notice
  of Infringement; Third Party Infringement

  	
   

  
	
  Notice
  of Infringement; Claim of Licensee Infringement

  	
   

  
	
  Assistance

  	
   

  
	
   

  	
   

  
	
  ARTICLE VIII
  Disclaimer of Liability and/or Warranty

  	
   

  
	
  No
  Warranty

  	
   

  
	
  No
  Damages

  	
   

  
	
  No Warranty of
  Quality or Usefulness

  	
   

  
	
  Indemnification

  	
   

  
	
  Insurance

  	
   

  
	
   

  	
   

  
	
  ARTICLE IX Term and
  Termination

  	
   

  
	
  Term

  	
   

  
	
  Termination for
  Cause; Insolvency

  	
   

  
	
  Default

  	
   

  
	
  Termination Upon Notice

  	
   

  
	
  Discontinuance of
  Commercialization

  	
   

  
	
  Provisions Surviving
  Termination

  	
   

  
	
   

  	
   

  
	
  ARTICLE X
  Representations and Warranties

  	
   

  
	
  Warranty to Title

  	
   

  
	
  No Other Information

  	
   

  
	
  Power and Authority

  	
   

  
	
  Compliance with Laws

  	
   

  
	
   

  	
   

  
	
  ARTICLE XI
  Agency/Partnership/Use of Name

  	
   

  
	
  No
  Agency

  	
   

  
	
  No Partnership

  	
   

  
	
  Prohibition Against
  Use of Name

  	
   

  
	
   

  	
   

  
	
  ARTICLE XII Marking

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  XIII Nondisclosure of Confidential Information

  	
   

  
	
  Additional Permitted
  Disclosures

  	
   

  
	
  Non-Disclosure

  	
   

  
	
   

  	
   

  
	
  ARTICLE XIV Miscellaneous

  	
   

  
	
  Captions

  	
   

  

 

 

 

2

 

	
  Notices

  	
   

  
	
  Assignment

  	
   

  
	
  No
  Waiver

  	
   

  
	
  Choice of Law and
  Jurisdiction

  	
   

  
	
  Severability

  	
   

  
	
  Further Acts

  	
   

  
	
  Entire
  Agreement

  	
   

  
	
  Successors and Assigns

  	
   

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

RESEARCH DEVELOPMENT FOUNDATION

 

LICENSE AGREEMENT

 

 

                This License Agreement
(hereinafter referred to as “Agreement”) is made and entered into as of the 15th
day of November, 1999 (the “Effective Date” of this Agreement), by and between
RESEARCH DEVELOPMENT FOUNDATION (hereinafter referred to as “Licensor”), a
Nevada nonprofit corporation having its office at 402 North Division Street,
Carson City, Nevada, 89703;

 

AND

 

SUPERGEN,
INC. (hereinafter referred to as “Licensee”), a Delaware corporation having an
office at Two Annabel Lane, Suite 220, San Ramon, California, 94583.

 

WITNESSETH:

 

                WHEREAS, Licensor is a nonprofit
organization exempt from taxation under Section 501(c)(3) of the Internal
Revenue Code of 1986;

 

                WHEREAS, Licensor is the owner
of certain inventions, discoveries, and know-how comprising certain Proprietary
Property (as hereinafter defined);

 

                WHEREAS, Licensor is the owner
of all the right, title and interest in and to said Proprietary Property and
has determined that the grant of a license to Licensee is the only practicable
manner in which the Proprietary Property can be utilized to benefit the public;

 

                WHEREAS, Licensor has filed or
intends to file for patents and/or other protection therefor in the countries
listed in Exhibit 2 hereto;

 

                WHEREAS, Licensee desires to
obtain an exclusive, world-wide license from Licensor as described herein to
produce, have produced, make, have made, manufacture, have manufactured, use,
sell, rent and/or lease (hereafter referred to as “make, use or sell”) methods,
processes, or

 

 

 

products
of Licensor’s Proprietary Property; and

 

                WHEREAS, Clayton Foundation for
Research (“Clayton”), Licensor and Licensee have entered into a Research
Agreement (Camptothecin) of even date herewith whereby Clayton will conduct
research in the field of interest relating to 9-Nitrocamptothecin (hereafter
the “Research Agreement”), which Research Agreement is incorporated by
reference herein for all purposes;

 

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

 

 

ARTICLE I

 

Definitions

 

                As used in this Agreement, the
following terms shall have the following respective meanings:

 

                1.1           The term “Proprietary Property” shall mean and include all
Patent Rights described in Exhibit 1 hereto and Know-How;

 

                1.2           The term “Patent Rights” shall mean any pending United
States or foreign patent applications and issued patents now or hereafter owned
or controlled by, or assigned to, Licensor which cover the Proprietary Property
and any divisions, substitutions, continuations and continuations-in-part based
thereon, any reissues, reexaminations, patents of addition or importation, or
other extensions thereof.

 

                1.3           The term “Know-How” shall mean all information, data,
know-how, processes, materials, procedures, compositions, devices, protocols,
designs, specifications, techniques, 

 

 

2

 

software,
methods, and any clinical diagnostic and regulatory information or filings or
other subject matter necessary or useful for the practice of inventions covered
by the Patent Rights or Licensor Improvements which is owned by Licensor.  Know-How specifically includes existing data
and/or regulatory filings related to the Patent Rights, made or contributed to
or by Licensor or an Other Corporation (as defined herein), or Vernon Knight,
M.D.

 

                1.4           The term “Licensed Proprietary Property” shall mean and
include the Patent Rights and Know-How which are licensed hereunder to
Licensee.

 

                1.5           The term “Product” shall mean a product or portion of a
product that embodies an invention claimed, or which is specifically intended
to be used to practice a method or process, within the Licensed Proprietary
Property and which is made, used or sold by or for Licensee (or its Affiliates
or sublicensees).

 

                1.6           The term “Improvements” shall mean
any improvement and/or modification of the Licensed Proprietary Property,
wherein aerosol droplets contain one or more liposome particles.

 

                1.7           The term “Affiliate” shall mean any present or future
companies, corporations, partnerships, joint ventures, business trusts or other
business entities organized under the laws of any nation (a) with respect to
which:  (i) at least fifty percent (50%)
in value of the total equity interests, (ii) at least fifty percent (50%) of
the total combined voting power of all classes of shares entitled to vote, or
(iii) at least fifty percent (50%) of the profits interest in the case of a
partnership, joint venture or other non-stock entity, is directly or indirectly
under the control of Licensee, or (b) with respect to which Licensee has
effective control, directly or indirectly. 
“Control” shall mean the possession of the power to direct or cause the
direction of the management and the policies of an 

 

 

3

 

entity,
whether through an ownership interest or by contract or otherwise.  The term “Licensee” wherever used herein
shall include any Affiliate of Licensee.

 

                1.8           The term “Gross Revenues” shall mean the total amount
received from third parties for the use or sale of Products less:

 

(a)           usual trade, cash and quantity credits, discounts, refunds
or government rebates;

 

(b)           amounts for claims, allowances or credits for returns,
retroactive price reductions or chargebacks;

 

(c)           special packaging charges and handling fees, and prepaid
freight, sales taxes, duties and other governmental charges (including value
added tax) imposed directly on the seller with respect to such sales; and

 

(d)           credits for goods returned (not to exceed the original
billing or invoice amount).

 

No other allowance or deduction
shall be made by whatever name known.

 

                1.9           The terms “commercialize” and “commercialization” shall
mean the making, using, selling, or licensing by Licensee of the Product under
such circumstances as may be permitted by applicable international, federal,
and state laws and regulations.

 

                1.10         The term “Field of Use” shall mean the applications
described in Exhibit 1A hereto.

 

                1.11         The term “Valid Claim” shall mean a claim of an issued and
unexpired patent or a claim of a pending patent application which has not been
held unpatentable, invalid or unenforceable by a court or other government
agency of competent jurisdiction and has not been 

 

 

4

 

admitted
to be invalid or unenforceable through reissue, re-examination, disclaimer or
otherwise; provided, however, that if any holding of invalidity,
unenforceability or unpatentability is later reversed by a court or agency with
overriding authority, the relevant claim shall be reinstated as a Valid Claim
hereunder with respect to sales made after the date of such reversal.  Notwithstanding the foregoing provisions of
this Section 1.11, if a claim of a pending patent application has not issued as
a claim of an issued patent within five (5) years after the date from which
such claim takes priority, such pending claim shall not be a Valid Claim for
purposes of this Agreement unless and until the patent is issued including such
claim.

 

                1.12         The term “Final Report” shall mean a report by a principal
investigator who has conducted a completed human clinical trial on a Product
wherein the report provides primary and summary data and results from the
completed human clinical trial on the Product.

 

 

ARTICLE II

 

Grant of License

 

                2.1           Scope of License.  Licensor hereby grants and Licensee hereby
accepts a worldwide, exclusive license under the Licensed Proprietary Property
to make, use or sell Products for the Field of Use.  Licensor shall not license any other party rights to deliver
camptothecin or analogues thereof, alone or in combination with another drug, in
liposomes, lipid complexes or other liposome particles, to the respiratory
tract via aerosol droplets.

 

                2.2           Right to Sublicense.  Licensor hereby grants and Licensee hereby
accepts the right to grant sublicenses to others within the scope of and under
the terms and conditions herein set 

 

 

5

 

forth.  Licensee shall give written notice of such
sublicenses to Licensor.

 

                2.3           Reference
and Review.  Licensee will also
have the right to review and reference the Know-How in any application or
filing relating to the Proprietary Property with any governmental or regulatory
authority before, on, or after the Effective Date and that was, is, or will be
made or contributed to by Licensor, an Other Corporation (as defined herein),
or Vernon Knight, M.D.

 

 

ARTICLE III

 

Patents and Improvements

 

                3.1           Patent Applications.  Licensor agrees, at its own expense, to
timely file patent applications relating to the Proprietary Property in the
countries listed on Exhibit 2 hereto with regard to the Proprietary Property
listed in Exhibit 1 as of the Effective Date and with regard to Licensor
Improvements as set forth in Section 3.3.

 

                3.2           Patent Prosecution.  Licensor further agrees to use its best
efforts to prosecute such patent applications and to maintain any patents
issued thereon.  Notwithstanding the
foregoing sentence, in the event that Licensor within its sole judgment and
discretion determines that prosecution or maintenance of a patent in a
particular country is not economically viable or otherwise feasible, Licensor
shall promptly notify Licensee of Licensor’s intention to abandon such patent
application or patent.  Licensor shall
not otherwise abandon a patent or patent application within the Patent
Rights.  Upon receipt of such notice,
Licensee, in its sole discretion, may elect to assume responsibility (and to
pay associated fees and expenses generated after Licensee assumes such
responsibility) with respect to a patent application or patent which Licensor
intends to 

 

 

6

 

abandon.  The notice shall be provided sufficiently in
advance of any deadlines or due dates such that Licensee has a reasonable time
within which to assume responsibility and comply with the deadlines or due
dates.  Licensee may, in its sole discretion,
abandon any patent application or patent for which it has previously assumed
responsibility and will not be liable to Licensor in any way for such
abandonment.

 

                3.3           Licensor
Improvements.  Licensor agrees to make available promptly to Licensee during the
term of this Agreement any Improvements now or hereafter found, owned, or
controlled by Licensor, and to submit to Licensee all available Know-How
pertaining thereto.  Such Improvements
in or to the Licensed Proprietary Property and the corresponding rights
throughout the world in patents or copyrights shall be the property of
Licensor, and shall be included in the Licensed Proprietary Property licensed
to Licensee subject to all of the terms and conditions set forth in this
Agreement.

 

                3.4           Licensee Improvements; Reporting.  Licensee shall promptly submit to Licensor
during the term of this Agreement all available information and Know-How on any
Improvements, whether patentable, copyrightable or not, now or hereafter found,
discovered, invented, owned, or controlled by Licensee.

 

                3.5           Licensee Improvements; Ownership.  Any Improvements, whether patentable,
copyrightable or not, now or hereafter made and found by agents or employees of
Licensee either independently of agents or employees of Licensor (or an “Other
Corporation”), or jointly with others, shall be owned by Licensor and shall be
considered as part of the Licensed Proprietary Property.  The world-wide rights in the corresponding
patents, patent applications, copyrights 

 

 

7

 

and/or
know-how shall be the property of Licensor subject to all the terms and
conditions of this Agreement, but licensed hereunder to Licensee by
Licensor.  Licensee agrees to do all
things necessary and required to vest in Licensor all right, title and interest
in and to any such Improvements.

 

                3.6           Assistance.  If patentable or otherwise protectable
Improvements are now or hereafter made and found by agents or employees of
Licensee or Licensor, either independently or jointly with others, and Licensor
or Licensee considers it desirable to obtain patent, copyright or other protection
thereon, the other party agrees to cooperate fully and to do all proper things
necessary or desirable to obtain and maintain patent, copyright or other
protection therefor throughout the world. 
Upon request, each party agrees to provide reasonable technical
assistance and advice for purposes of filing and prosecuting patent
applications and engaging in opposition, interference and enforcement
proceedings with respect to patent applications and patents within the Patent
Rights or for Improvements.

 

                3.7           Improvements; Prosecution by Licensee.  Notwithstanding the provisions in Section
3.6 above, if Licensor fails to file an application for patent or other
protection therefor within six (6) months after receipt of a written request
from Licensee to do so, Licensor shall be deemed to have consented to Licensee
obtaining and maintaining the necessary protection therefor at Licensee’s
expense.

 

                3.8           Inclusions.  If either Licensor or Licensee files patent
applications or otherwise obtains patent rights or copyrights which relate to
the Licensed Proprietary Property, such patent application, patent rights or
copyrights shall be included in the Licensed Proprietary Property, and 

 

 

8

 

Licensee
shall have a license therefor under the terms and conditions set forth in this
Agreement.

 

 

ARTICLE IV

 

Royalties and Other Consideration

 

                4.1           License Fee.  Upon Licensee’s execution of
this Agreement, Licensee shall pay Licensor an up-front non-refundable license
fee consisting of Four Hundred and Ten Thousand Dollars ($410,000) payable in
shares of and by transferring to Licensor shares of the common stock of
SuperGen, Inc.  Licensee guarantees, as
described herein, the value of such shares to be no less than such dollar
amount (the “Guaranteed Value”) on the one (1) year anniversary of the date on
which the shares are transferred to Licensor (hereafter the “Anniversary
Date”).  If, during the thirty (30) days
preceding the Anniversary Date (or the next trading date if the Anniversary
Date is not a trading date), the common stock of Licensee has not traded on a
public stock exchange for an average price resulting in such shares being worth
on average at least the Guaranteed Value, then within thirty (30) days Licensee
will pay to Licensor a sum in cash (or, at Licensor’s option, in the equivalent
value of additional unrestricted shares of the common stock of SuperGen, Inc.)
equal to the difference between (a) the Guaranteed Value and (b) the average
price at which the common stock of SuperGen, Inc. traded publicly during the
thirty (30) days preceding the Anniversary Date multiplied by the number of
shares transferred as the up-front non-refundable license fee under this
Section 4.1.  Any shares provided to
Licensor will not be sold for at least one (1) year following the Anniversary
Date, and no more than three thousand (3,000) of the shares shall be sold on
any one trading date.

 

 

9

 

                4.2           Royalty.  Licensee shall pay Licensor during the term
of this Agreement an earned royalty of six and one-half percent (6.5%) on Gross
Revenues.  Only one (1) royalty shall be
payable on a Product, regardless of the number of licensed applications and licensed
patents of the Licensed Proprietary Property under which such Product has been
manufactured, used or sold.  In the
event that a Product is sold in combination as a single product with another
product (“Combination Product”), active component or service (which product,
component or service is not a portion of the Product) and whose sale and use
are not covered by a Valid Claim of the Product in the country for which the
combination product is sold, Gross Revenues from such sales for purposes of
calculating the amounts due under this Agreement shall be calculated by
multiplying the Gross Revenues of that combination by the fraction A/(A+B),
where A is the gross selling price of the Product sold separately and B is the
gross selling price of the other product, active component or service sold separately.  In the event that no such separate sales are
made by Licensee or its Sublicensee, Gross Revenues for royalty determination
shall be reasonably allocated between the Product and such other product,
active component or service, based upon their relative importance and
proprietary protection.  Without
limitation, liposomal compounds, camptothecin and analogues thereof, and
aerosol containers (nebulizers) are deemed to be portions of the Product.

 

                4.3           Term of Royalty
Obligation.  Royalty payments shall be paid on the
Products commencing on the Effective Date, and unless earlier terminated as
provided herein, shall continue on a country-by-country and Product-by-Product
basis until there are no remaining royalty payment obligations in a country, at
which time the Agreement shall expire in its entirety in such country.  Royalty payments shall cease for any patent
which has been declared invalid or unenforceable by a 

 

 

10

 

final
determination or judgment, or if this Agreement is terminated as hereinafter
specified and provided.

 

                4.4           Sublicenses.  Licensee will pay to Licensor fifty percent
(50%) of all consideration (including, but not limited to, royalties, minimum
royalties, up-front payments, marketing, distribution, franchise, option,
license or documentation fees, bonus and milestone payments, license
maintenance fees, and equity-related securities) received from sublicensees of
the Licensed Proprietary Property or the amount of royalty Licensee would have
owed pursuant to Section 4.2 had it engaged in the same licensed conduct as
said sublicensees, whichever is greater, as determined on a quarterly basis.  Notwithstanding the above, it is understood
and agreed that Licensor shall not be entitled to any share of amounts received
by Licensee for pilot studies, research and development, the license or
sublicense of any intellectual property other than the Licensed Proprietary
Property, reimbursement for patent or other expenses, or as consideration for
equity or debt of Licensee.

 

                4.5           Deductions From Royalty Payments; Limitation on
Deductions from Royalty Payments.  If Licensee or its Sublicensee is required
to pay a third party under a Valid Claim with respect to the third party’s
intellectual property or technology in order to make, use or sell a Product,
Licensee may deduct such amount from royalties due to Licensor for such
Product.  Notwithstanding the foregoing
provisions of this Section 4.5, wherever this Agreement provides that Licensee
may deduct expenses, payments or other amounts from royalties payable to
Licensor, (a) such deduction shall be applied only against royalties payable
from the territory with respect to which such deduction arose, and (b) such
deduction shall be prorated over such time as is necessary 

 

 

11

 

to
assure that the royalties payable to Licensor from such territory in any period
shall not be reduced by more than fifty percent (50%) of the amount that
otherwise would be due Licensor pursuant to this Agreement.

 

                4.6           Milestone Payments.  In addition to the up-front license fee and
royalties required under this Article IV, Licensee shall make milestone
payments to Licensor as set forth in Exhibit 3 hereto.  Such payments shall be made in common stock
of Licensee in the amounts recited in Exhibit 3 and shall be transferred to
Licensor within thirty (30) days of occurrence of each of the events indicated
on such exhibit.  Such common stock will
not be sold for at least one (1) year following the date on which the stock is
transferred to Licensor, and no more than three thousand (3,000) of the shares
shall be sold on any one trading date. 
Licensee guarantees the value of such shares to be the Guaranteed Value
calculated in the same manner as set forth in Section 4.1 of this Agreement.

 

                4.7           Marketing
Arrangements.  Where Products are marketed by an entity
other than Licensee under any type of commercial arrangement (including,
without limitation, a sublicense, joint venture, distributorship, or
collaboration agreement), the sales of the Products by such entity shall be
used in calculating Gross Revenues for purposes of determining royalties
payable to Licensor hereunder.

 

                4.8           Conditions.  The obligations of Licensee under this
License Agreement are conditioned on Licensee’s satisfaction in its sole
discretion at or prior to the date this License Agreement is executed with the
results of its due diligence with respect to the business, operations, affairs,
properties, assets, liabilities, obligations, profits and condition (financial
or otherwise) of 

 

 

12

 

Licensor;
provided that compliance with any such conditions or parts thereof may be
waived in writing by Licensee.  Licensor
agrees to provide Licensee with any information, including clinical or
laboratory data or regulatory filings, that Licensor requests as part of the
due diligence performed under this Section 4.8.

 

 

ARTICLE V

 

Payment and Reports

 

                5.1           Notice of
Commercial Sale.  Licensee shall notify Licensor, in writing,
within thirty (30) days of the date of the first commercial making, using or
selling of Products.

 

                5.2           Payments and Reports.  Licensee agrees that Licensee shall provide
within sixty (60) days after the end of each quarter of each calendar year:

 

                                                                (a)           payment of amounts due to Licensor pursuant to this
Agreement, including, but not limited to, amounts pursuant to Articles IV and
VI; and

 

                                                                (b)           a report summarizing the information and basis on which
such amounts have been calculated.

 

                5.3           U.S. Dollars.  All amounts payable in cash by Licensee
shall be paid in U.S. Dollars. 
Conversion from currencies other than U.S. Dollars shall be at the rate
of exchange used by Licensee for its general accounting purposes, consistent
with generally accepted accounting principles.

 

                5.4           Progress Reports.  Until such time as earned royalties become
payable pursuant to this Agreement, Licensee agrees to make an annual report to
Licensor on each annual anniversary 

 

 

13

 

of
the Effective Date covering Licensee’s progress during the previous year toward
research, development and commercialization.

 

                5.5           Report on Termination.  Licensee also
agrees to make a written report to Licensor within ninety (90) days after the
termination of this Agreement, stating in such report the royalties payable
hereunder and the basis therefor not previously reported to Licensor.  Licensee shall also continue to make annual
reports pursuant to the provisions of this Agreement covering making, using or
selling of Products after termination thereof, such as the selling of stock on
hand at termination which is specifically contemplated by this Agreement and
the applicable earned royalties hereunder, until such time as all such makings,
uses or sales shall have terminated. 
Concurrent with the submittal of each post-termination report, Licensee
shall pay Licensor all applicable royalties.

 

                5.6           Books and Records.  Licensee shall keep accurate books and
records with respect to the Products and/or Licensed Proprietary Property
sufficient to enable the calculation of royalties payable hereunder to be
verified.  Upon thirty (30) days prior
notice to Licensee, independent accountants selected by Licensor, reasonably
acceptable to Licensee, after entering into a confidentiality agreement with
Licensee, may have access to the books and records of Licensee to conduct a
review or audit once per calendar year, for the sole purpose of verifying the
accuracy of Licensee’s payments and compliance with this Agreement.  The accounting firm shall report to Licensor
only whether there has been a royalty underpayment and, if so, the amount
thereof.  Such access shall be permitted
during Licensee’s normal business hours during the term of this Agreement and
for three (3) years after the period to which the audit pertains.  Any such inspection 

 

 

14

 

or
audit shall be at Licensor’s expense; provided that in the event the
examination or audit results in a discrepancy in the correctness of the
payments due under this Agreement in an amount in excess of five percent (5%)
of the payments due Licensor for any single quarter audited, Licensee shall pay
any and all costs or fees associated with such examination or audit.  Neither such right to review or audit nor
Licensor’s right to receive any such underpayment shall be affected by any
statement to the contrary appearing on checks or otherwise, unless such
statements appear in a letter, signed by the party having such right and
delivered to the other party, expressly waiving such right.  Notwithstanding the foregoing, Licensor may
require Licensee to furnish any other information reasonably requested to
enable Licensor to evaluate Licensee’s performance under this Agreement.

 

                5.7           Delinquent Payments.  Payments provided for in this Agreement
shall, when overdue, bear interest at the then existing prime rate at Citibank
of New York (or its successor) plus four percent (4%) per annum until paid, but
in no event shall such interest exceed the usury limit, if any, as may exist
from time to time in the State of Nevada.

 

 

ARTICLE VI

 

Effort to Commercialize

 

                6.1           Commercialization Obligation.  Licensee shall undertake to use commercially
reasonable efforts with regard to commercialization of the Products.

 

                6.2           Minimum
Royalties.  Licensee shall pay
to Licensor within ninety (90) days after the date specified at least the
following amounts of minimum royalties within the time periods specified:

 

 

15

 

                                                                (a)           on or before the third anniversary of the Effective Date,
at least Twenty-Five Thousand Dollars ($25,000.00).

 

                                                                (b)           on or before the fourth anniversary of the Effective Date,
at least Twenty-Five Thousand Dollars ($25,000.00).

 

                                                                (c)           on or before the fifth anniversary of the Effective Date,
at least Seventy-Five Thousand Dollars ($75,000.00).

 

                                                                (d)           on or before each succeeding anniversary of the Effective
Date, at least Seventy-Five Thousand Dollars ($75,000.00).

 

                                Minimum
royalties paid in excess of earned royalties in a given year shall not be
creditable to earned royalties for future years.  Minimum royalties paid under this Section 6.2 may, at Licensee’s
option, be paid in shares of the common stock of Licensee.  Common stock transferred under this Section
6.2 will not be sold for at least one (1) year following the date on which the
stock is transferred to Licensor, and no more than three thousand (3,000) of
the shares shall be sold on any one trading date.  Licensee guarantees the value of such shares to be the Guaranteed
Value calculated in the same manner as set forth in Section 4.1 of this
Agreement.

 

 

 

16

 

 

ARTICLE VII

 

Protection of Patents

 

                7.1           Protection.  Licensor agrees, where economically justified
and within reasonable limits, to protect the Licensed Proprietary Property from
infringement or misappropriation by third parties in the Field of Use and to
prosecute such infringers or defendants, but the decision to undertake such
protection shall be in the sole discretion of Licensor, and Licensor’s decision
as to whether any such action shall be taken by it shall be accepted by
Licensee.  In the event that Licensor
shall recover profits and/or damages from said infringer or defendant in the
Field of Use, Licensor agrees to turn over to Licensee twenty-five percent
(25%) of any amounts paid to it by said infringer or defendant after deducting
any of its expenses, including costs and legal fees incurred in such
litigation.  Each party agrees to
cooperate fully with the other party in protection of the Licensed Proprietary
Property, including by joining as a party to any proceeding if required by
applicable law.

 

                7.2           Notice of Infringement; Third Party Infringement.  Licensor and Licensee shall each give
immediate written notice to the other of any infringement of a Patent Right or
misappropriation of Know-How or Improvements by any third party in the Field of
Use as may come to its knowledge. 
Notwithstanding Section 7.1, if Licensor has not within six (6) months
from the date on which it is notified or otherwise becomes aware of an
infringement or misappropriation of the Licensed Proprietary Property in the
Field of Use either terminated such infringement or initiated legal action
against the infringer or defendant, it shall, upon written request of Licensee,
grant to Licensee the right to prosecute an action against the infringer or
defendant at Licensee’s expense. 
Licensor agrees, in the event that Licensee cannot prosecute such
infringement or misappropriation in its own name, to sign and give to Licensee,
as soon as 

 

 

17

 

practicable,
all necessary documents in order for Licensee to prosecute at Licensee’s
expense but in the name of Licensor, such infringement or
misappropriation.  Licensee shall be
entitled to deduct all of its expenses, including costs and legal fees incurred
in bringing and prosecuting such infringement or misappropriation action, from
royalties due Licensor with respect to the country in which such action is
prosecuted after commencement of such infringement or misappropriation
action.  In the event Licensee desires
to settle or compromise such suit or action in a manner that may adversely
impact Licensor or Licensed Proprietary Property, Licensee shall not so settle
or compromise such suit or action without the prior written consent of
Licensor.  In the event Licensee shall
recover profits and/or damages from said infringer or defendant, Licensee
agrees to pay to Licensor twenty-five percent (25%) of any amounts paid to it
by said infringer or defendant after deducting any of its expenses, including
costs and legal fees incurred in such litigation.

 

                7.3           Notice of Infringement; Claim of Licensee
Infringement.  Licensee shall promptly advise Licensor in
writing of any notice or claim of any infringement and of the commencement
against it of any suit or action for infringement of a third party patent made
or brought against Licensee and based upon the use hereunder by Licensee of the
Licensed Proprietary Property.  Licensee
shall have the right either to:

 

                                                                (a)           request that Licensor enter into negotiations with such
third party to obtain rights for Licensee under the third party patent; or

 

                                                                (b)           request that Licensor defend such suit or action at
Licensor’s expense.

 

                7.4           Assistance.  Licensor is neither obligated to enter into
negotiations with such third party to obtain rights for Licensee under the
third party patent nor obligated to defend such suit or 

 

 

18

 

action.  If Licensor, at its sole discretion, elects
to enter into negotiations with such third party to obtain rights for Licensee
under the third party patent or if Licensor, at its sole discretion, elects to
undertake at its own expense the defense of any such suit or action to the
extent that the alleged infringement is based upon such use hereunder of the
Licensed Proprietary Property, Licensee shall render to Licensor all reasonable
assistance that may be required by Licensor in the negotiations or in the
defense of such suit or action. 
Licensor has the primary right to control the defense of any such suit
or action by counsel of its own choice, and Licensee shall have the right, at
its own expense, to be represented in any such suit or action in respect of
which Licensee is a defendant by counsel of its own choice, subject to
Licensor’s right of control. 
Notwithstanding the foregoing, if Licensor has not within ninety (90)
days (or such lesser period of time as is necessary to avoid entry of a default
judgment against Licensor or Licensee) from the date of receipt of a request
from Licensee under Section 7.3 either entered into negotiations with such
third party to obtain rights for Licensee under the third party patent or
initiated legal action to defend such suit, it shall, upon written request of
Licensee, grant to Licensee the right to enter such negotiations or defend such
suit.  Licensee shall be entitled to
deduct all its expenses, including attorneys’ fees and specifically including
costs and legal fees incurred in entering into such negotiations or defending
such suit from royalties due Licensor after commencement of such action.  Licensee shall not settle or compromise any
such suit or action without the prior written consent of Licensor, which
consent shall not be unreasonably withheld.

 

 

ARTICLE VIII

 

 

19

 

Disclaimer of Liability and/or Warranty

 

                8.1           No Warranty.  Nothing in this Agreement shall be construed
as:

 

                                                                (a)           a warranty or representation by Licensor as to the
validity or scope of any Licensed Proprietary Property; or

 

                                                                (b)           a warranty or representation that anything sold, used,
produced or otherwise disposed of under any license granted in this Agreement
is or will be free from infringement of patents, copyrights, and/or trademarks
of third parties; or

 

                                                                (c)           an express or implied warranty of merchantability or
fitness for a particular purpose.

 

                8.2           No Damages.  Licensor shall exercise reasonable care in
verifying the accuracy of information provided under this Agreement but,
subject to the provisions of the last sentence of Section 8.4, Licensor shall
not be liable for any damages arising out of or resulting from any information
made available hereunder or of the use thereof, nor shall it be liable to
Licensee for consequential damages under any circumstances.

 

                8.3           No Warranty of Quality or Usefulness.  Licensor shall have no responsibility for
the ability of Licensee to use such information, the quality or performance of
any process or any product produced by Licensee with the aid of such
information, or with respect to claims of third parties arising from Licensee’s
use of such information.

 

                8.4           Indemnification.  Licensee shall assume all responsibility and
liability for the sale, use, production, and/or commercialization of the Products,
including, but not limited to, the safety, 

 

 

20

 

effectiveness,
and reliability of the process and/or products produced pursuant to this
Agreement.  Licensee further agrees to
defend, indemnify, and hold Licensor, its trustees, directors, officers,
employees, agents, representatives, successors, assigns, affiliated entities
and controlled corporations (as defined herein) harmless from and against any
and all liability, demands, damages, expenses and losses for death, personal
injury, illness, or property damage, including the cost of defense against
same, which may be asserted, or any claims which may be brought by third
parties resulting from the sale, use, production, commercialization, or other
disposition of the Licensed Proprietary Property or Products by Licensee.  Licensee agrees that any sublicenses granted
hereunder will include a similar indemnification provision for the benefit of
Licensor.  Licensee acknowledges that
the Licensed Proprietary Property included herein is experimental and agrees to
take all reasonable precautions to prevent death, personal injury, illness, and
property damage.  Licensor shall defend,
indemnify, and hold Licensee and its directors, officers, employees and agents
harmless as against any and all judgements, fees, expenses, liabilities, or
other costs arising from or incidental to any product liability or other
lawsuit, claim, demand or other action resulting from any claim, suit or
proceeding brought by a third party against any of the foregoing entities,
arising out of or in connection with any misrepresentation by Licensor with
regard to, or in breach of, the representations and warranties set forth in
Article X or to the extent due to the gross negligence or willful misconduct of
Licensor.

 

                8.5           Insurance.  Licensee agrees to purchase and/or maintain
insurance coverage sufficient, taking into account its other assets, to
establish the ability of Licensee to honor the indemnity made herein, and
Licensor shall be listed as an additional named insured on any such 

 

 

21

 

insurance
coverage.  Licensee shall furnish
evidence of its insurance coverage upon request of Licensor.  For purposes of this agreement, the initial
amount of insurance coverage required is in the face amount of Two Million
Dollars ($2,000,000.00).

 

 

ARTICLE IX

 

Term and
Termination

 

                9.1           Term.  The Term of this Agreement shall be for a
period of ten (10) years extending from the first commercial revenue actually
collected or for the life of the last to expire of the patents or patent
applications of the Licensed Proprietary Property, whichever is earlier, unless
sooner terminated as herein provided.

 

                9.2           Termination for Cause; Insolvency.  If Licensee shall determine that it intends
to declare itself insolvent or file for bankruptcy or reorganization, it shall
give immediate written notice to Licensor. 
Failure to give such notice shall cause immediate termination of this
Agreement, and all rights of Licensee in the Licensed Proprietary Property
shall automatically revert to Licensor. 
If Licensee shall become bankrupt or insolvent; if the business or any
assets or property of Licensee shall be placed in the hands of a receiver,
assignee or trustee, whether by the voluntary act of Licensee or otherwise; if
Licensee institutes or suffers to be instituted any procedure in bankruptcy
court for reorganization or rearrangement of its financial affairs; or if
Licensee makes a general assignment for the benefit of creditors, this
Agreement shall immediately terminate, and all rights of Licensee in the
Licensed Proprietary Property shall automatically revert to Licensor.  Upon occurrence of any of the foregoing
events, Licensee shall give immediate written 

 

 

22

 

notice
thereof to Licensor.

 

                9.3           Default.  Upon any breach or default under this
Agreement by Licensee, or upon any breach or default by Licensee under other
legal agreements between Licensor and Licensee, Licensor may give written
notice thereof to Licensee, and Licensee shall have thirty (30) days thereafter
to cure such breach or default.  If such
breach or default is not so cured, Licensor may then in its sole discretion and
option:  (a) convert this exclusive
License Agreement into a non-exclusive License Agreement, or (b) terminate this
Agreement and the licenses granted by it, or (c) seek such other relief as may
be provided by law in such circumstances by giving written notice thereof to
Licensee.  Notwithstanding the
foregoing, in the event of any termination of this Agreement, any sublicenses
granted by Licensee shall remain in force and effect and shall be assigned by
Licensee to Licensor; provided that such sublicensee is currently in good
standing with regard to its obligations under the sublicense or has cured any
default or breach within the period provided in such sublicense; and further
provided that (a) the financial obligations of each such sublicensee shall be
limited to those due Licensor hereunder for the practice of such a sublicense;
and (b) Licensor shall have no greater obligations, liabilities or duties to
the sublicensee than Licensor has to Licensee under the terms of this
Agreement.

 

                9.4           Termination Upon
Notice.  Any provision herein not withstanding,
Licensee may terminate this Agreement, in its entirety or as to any particular
patent or patent application or item of Know-How within the Licensed
Proprietary Property, at any time by giving Licensor at least thirty (30) days
prior written notice.  From and after
the effective date of such termination under this Section 9.4 with respect to a
particular patent or patent application, such patent(s) or patent 

 

 

23

 

application(s)
in the particular country shall cease to be within the Licensed Proprietary
Property for all purposes of this Agreement. 
Likewise, from and after the effective date of such termination under
this Section 9.4 with respect to a particular item of Know-How, such item of
Know-How shall cease to be within the Licensed Proprietary Property for all
purposes of this Agreement.  From and
after the effective date of termination of a patent, patent application or item
of Know-How under this Section 9.4, all rights and obligations of Licensee with
respect to such patent, patent application or item of Know-How shall terminate
with respect to a particular Product, and the license to the terminated patent,
patent application or item of Know-How granted to Licensee under Section 2.1
shall terminate with respect to such Product. 
Upon termination of this Agreement in its entirety under this Section
9.4, all rights and obligations of the parties shall terminate except as
provided in Section 9.6 below.

 

                9.5           Discontinuance of Commercialization.  Upon termination hereof for any reason,
Licensee agrees to discontinue the commercialization of the Licensed
Proprietary Property, and (except as expressly provided herein) all sublicenses
granted hereunder by Licensee shall terminate, or at the option of Licensor, be
deemed to have been assigned to Licensor.

 

                9.6           Provisions Surviving Termination.  Article V, Article XIII and Sections 8.1,
8.2, 8.3, 8.4, 10.4 and 11.3 of this Agreement, as well as all provisions
relating to Guaranteed Value, shall survive termination of this Agreement.

 

 

ARTICLE X

 

Representations and Warranties

 

 

24

 

                10.1         Warranty to Title.  Licensor represents and warrants that (i) it
is a Nevada nonprofit corporation exempt from taxation under Section 501(c)(3)
of the Internal Revenue Code of 1986; (ii) it owns the Licensed Proprietary
Property; (iii) it has the legal power and authority to extend the rights
granted to Licensee pursuant to this Agreement; (iv) the execution, delivery
and performance of this Agreement have been duly authorized by all necessary
corporate action on the part of Licensor; (v) the Licensed Proprietary Property
is free and clear of any lien, encumbrance, security interest or restriction on
license in the Field of Use; (vi) it has not previously granted, and will not
grant during the term of this Agreement, any right, license or interest in or
to the Licensed Proprietary Property, or any portion thereof, in the Field of
Use inconsistent with the license granted to Licensee herein; and (vii) to
Licensor’s best knowledge, there are no threatened or pending actions, suits,
investigations, claims or proceedings in any way relating to the Licensed
Proprietary Property.

 

                10.2         No Other Information.  Licensor represents that it has no knowledge
of any information likely to have a material effect on the validity or
enforceability of any patents within Patent Rights or any claim thereof which
was not disclosed to the Patent Office at the time that the patent applications
therefor were filed or during the pendency of said applications.

 

                10.3         Power and Authority.  Licensee represents and warrants that it has
full power and authority to enter into this Agreement and to carry out the
transactions contemplated hereby.

 

                10.4         Compliance with Laws.  Licensee represents and warrants that it
will comply with all applicable laws and regulations, including without
limitation, all United States laws and regulations controlling the export of
commodities and technical data. 
Licensee will be solely 

 

 

25

 

responsible
for any violation of such laws or regulations by Licensee or its sublicensee,
and it will defend and hold Licensor harmless in the event of any legal action
of any nature occasioned by such violation.

 

 

ARTICLE XI

 

Agency/Partnership/Use of Name

 

                11.1         No Agency.  Neither party shall be deemed to be an agent
of the other party as a result of any transaction under or related to this
Agreement, and shall not in any way pledge the other party’s credit or incur
any obligations on behalf of the other party.

 

                11.2         No Partnership.  This Agreement shall not constitute either a
partnership or a joint venture, and neither party may be bound by the other to
any contract, arrangement or understanding except as specifically stated
herein.

 

                11.3         Prohibition Against Use of Name.  Except to the extent required to comply with
applicable laws and regulations and subject to Section 13.3, without prior
written consent obtained from Licensor, which shall not be unreasonably
withheld, Licensee (including any Affiliate or sublicensee of Licensee) shall
not use for purposes of sales, advertising, marketing, marking of goods,
promotion to investors, press releases or other publicity, etc.:  (i) the name of (or any other information
which would identify) Licensor or any corporation which is controlled by the
same persons who control Licensor (“Other Corporation”); (ii) the names of
trustees, directors, officers, or employees of Licensor or an Other
Corporation; or (iii) any trademarks (or adaptations thereof) of Licensor or an
Other Corporation.  Without prior written
consent obtained from Licensee, which

 

 

26

 

shall
not be unreasonably withheld, Licensor (including Other Corporations and any
other Affiliate of Licensor) shall not use for purposes of sales, advertising,
marketing, marking of goods, promotion to investors, press releases or other
publicity:  (i) the name of (or any
other information which would identify) Licensee or any corporation which is
controlled by the same persons who control Licensee (“Controlled Corporation”);
(ii) the names of trustees, directors, officers, or employees of Licensee or a
Controlled Corporation; or (iii) any trademarks (or adaptations thereof) of
Licensee or a Controlled Corporation.

 

 

ARTICLE XII

 

Marking

 

                Licensee
agrees to apply or have applied to all articles and to all containers
containing Products manufactured by it or any sublicensee(s) under this
Agreement such patent notices as may be required by the laws of the territories
where manufactured or as may reasonably be requested by Licensor.

 

 

ARTICLE XIII

 

Nondisclosure of Confidential Information

 

 

27

 

                13.1         Confidential
Information.  All Proprietary
Property and confidential scientific and technical information communicated by
one party to the other party under this Agreement, including information
contained in patent applications, if identified in writing as Confidential
Information at the time of disclosure, shall be kept confidential by such other
party.  Notwithstanding the foregoing,
either party shall be relieved of the confidentiality obligations herein and
not be prevented by this Agreement from utilizing any information received by
it from the other party if:

 

                                                                (a)           the information, at the time of disclosure, is in the
public domain or, after disclosure, becomes part of the public domain through
no fault of the receiving party;

 

                                                                (b)           the receiving party can show that the information was in
its possession at the time of disclosure and was not acquired, directly or
indirectly, from the disclosing party;

 

                                                                (c)           the information is lawfully obtained or received from a
third party, other than the disclosing party, having the legal right to
transmit same;

 

                                                                (d)           the disclosure of such information is essential for the
commercial exploitation of the Proprietary Property under this Agreement,
provided that such information is disclosed subject to a secrecy agreement;

 

                                                                (e)           was independently developed by the receiving party without
reference to any information or materials disclosed by the disclosing party; or

 

                                                                (f)            was subsequently disclosed to the receiving party by a
person other than a 

 

 

28

 

                                                party
without breach of any legal obligation to the disclosing party.

 

                13.2         Additional Permitted Disclosures.  In addition, either party may disclose
Confidential Information of the other (i) to their legal representatives,
employees and Affiliates, and legal representatives and employees of
Affiliates, consultants and sublicensees, to the extent such disclosure is
reasonably necessary to achieve the purposes of this Agreement, and provided
such representatives, employees, consultants and sublicensees have agreed in
writing to obligations of confidentiality with respect to such information no
less stringent than those set forth herein; (ii) in connection with the filing
and support of patent applications; (iii) as reasonably required in the course
of a contemplated public offering or private financing; (iv) to a potential
sublicensee or corporate partner that has agreed in writing to confidentiality
obligations no less stringent than set forth herein; or (v) if disclosure is
compelled to be disclosed by a court order or applicable law or regulation,
provided that the party compelled to make such disclosure (a) requests
confidential treatment of such information; (b) provides the other party with
sufficient advance notice of the compelled disclosure to provide adequate time
to seek a protective order; and (c) discloses only the minimum necessary to
comply with the requirement to disclose.

 

                13.3         Non-Disclosure.  The terms of this Agreement shall not be
disclosed by Licensee or Licensor to any third party or be published unless
both parties expressly agree otherwise in writing.  Either party shall allow at least three (3) business days notice
of any proposed public disclosure for the other party’s review and comment or
to provide written consent.  The text of
any press release to be issued by Licensee and/or Licensor concerning this
Agreement as well as the precise date and timing of the press release shall be
agreed between the parties in writing in advance, such 

 

 

29

 

agreement
not to be unreasonably withheld or delayed. 
However, this restriction shall not apply to announcements required by
law or regulation, except that in such event the parties shall coordinate to
the extent possible with respect to the details of any such announcement.  This restriction shall not apply to
disclosure of this Agreement to certain private third parties such as the
shareholders, investment bankers, attorneys and other professional consultants
of, and prospective investors in, Licensee or Licensor.  Once a particular disclosure has been
approved, further disclosures to similarly situated private third parties under
this provision that do not differ materially therefrom may be made without
obtaining any further consent of the other party.

 

 

ARTICLE XIV

 

Miscellaneous

 

                14.1         Captions.  The captions herein are for convenience only
and shall not be deemed to limit or otherwise affect the construction hereof.

 

                14.2         Notices.  Any notice or other communication hereunder
must be given in writing and (a) delivered in person, (b) transmitted by telex,
telefax or other telecommunications mechanism, (c) mailed by certified or
registered mail, postage prepaid, receipt requested, or (d) sent by overnight
delivery with charges prepaid and receipt acknowledged, as follows:

 

 

30

 

 

                If
to Licensor, addressed to:

 

                                Research
Development Foundation

                                _
Andrew MacKenzie, Esq.

                                402
North Division Street

                                Carson
City, Nevada 89703

                                   Attn: 
C. W. Wellen, President

                                   cc: 
James F. Weiler, Esq.

 

                If to Licensee, addressed to:

 

                                SuperGen, Inc.

                                Two Annabel
Lane, Suite 220

                                San Ramon,
California  94583

                                   Attn: 
Dr. Joseph Rubinfeld, CEO and President

                                   cc: 
Ms. Lucy Chang, Senior Director, Planning and Legal Affairs

or
to such other address or to such other person as the party shall have last
designated by such notice to the other party. 
Each such notice or other communication shall be effective (i) if given
by mail, three (3) days after such communication is deposited in the mails with
postage prepaid, addressed as aforesaid, or (ii) if given by telecommunication
or any other means, when actually received at such address.

 

                14.3         Assignment.  This Agreement, in whole or in part, shall
not be assignable by either party without prior written consent of the other
party, which consent shall not be unreasonably withheld (unless to a successor
entity to the assigning party by merger, acquisition or other non-bankruptcy
reorganization), and any attempted assignment without such consent shall be
void.

 

                14.4         No Waiver.  The failure of either party to enforce at
any time any of the provisions of this Agreement, or any rights in respect
thereto, or to exercise any election herein provided, shall in no way be
considered to be a waiver of such provisions, rights, or elections, or in any
way to affect the validity of this Agreement. 
The exercise by either party of any of its rights herein or any 

 

 

31

 

of
its elections under the terms or covenants herein shall not preclude either
party from exercising the same or any other rights it may have under this
Agreement, irrespective of any previous action or proceeding taken by either
party hereunder.

 

                14.5         Choice of Law and
Jurisdiction.  This Agreement shall be governed and
construed in accordance with the laws of the State of Nevada, U.S.A. applicable
to contracts made in such State without regard to conflicts of law doctrines,
and the parties agree that jurisdiction and venue for any dispute regarding
this Agreement will be in such State.

 

                14.6         Severability.  If any provision of this Agreement is
judicially determined to be void or unenforceable, such provision shall be
construed to be severable from the other provisions of this Agreement, which
shall retain full force and effect.

 

                14.7         Further Acts.  The parties hereto agree promptly to
execute, forward, or otherwise provide all documents and material necessary or
desirable to effectuate this Agreement.

 

                14.8         Entire Agreement.  Except for a pre-existing confidentiality
agreement, the terms and conditions herein contained together with the Research
Agreement constitute the entire agreement between the parties and shall
supersede all previous communications, either oral or written, between the
parties hereto with respect to the subject matter hereof.  No agreement or understanding bearing on the
same shall be binding upon either party hereto unless it shall be in writing
and signed by the duly authorized officer or representative of each of the
parties and shall expressly refer to this Agreement.

 

                14.9         Successors and
Assigns.  This Agreement shall be binding on and shall inure to the benefit
of the parties hereto, and their respective successors and assigns.

 

 

32

 

 

[Remainder of page intentionally
left blank]

 

 

 

33

 

 

                IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be duly executed in multiple originals by
their duly authorized representatives.

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
  RESEARCH DEVELOPMENT FOUNDATION

   

   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/
  Andrew MacKenzie

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Print
  Name:

  	
  Andrew
  MacKenzie

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  SUPERGEN,
  INC.

   

   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/
  Dr. Joseph Rubinfeld

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Print
  Name:

  	
  Dr.
  Joseph Rubinfeld

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  President
  & CEO

  
								

 

 

34

 

 

EXHIBIT 1

 

Proprietary Property

 

 

                1.             The methods, composition, and information claimed in
U.S. Patent No. 5,049,388, entitled “Small Particle Aerosol Liposome and
Liposome-Drug Combinations for Medical Use,” including any division,
continuation, continuation-in-part, re-issue, re-examination, or extension of
the above-described patent and all foreign equivalent patents and patent
applications therefor; Inventors:  Jack
Vernon Knight, Brian E. Gilbert, Samuel Z. Wilson, Howard R. Six, and Philip R.
Wyde.

 

                2.             All of Licensor’s rights in the methods, compositions
and information claimed in U.S. Patent Application Serial No. 09/353,496, filed
July 13, 1999, entitled “Small Particle Liposome Aerosols for Delivery of
Anti-Cancer Drugs,” including any division, continuation, continuation-in-part,
re-issue, re-examination, or extension of the above-described patent
application and any patent issuing thereon, and all foreign equivalent patents
and patent applications therefor. 
Inventors:  Jack Vernon Knight,
Brian E. Gilbert, Nadezhda Koshkina, J. Clifford Waldrep, Clyde W. Wellen and
Beppino Giovanella.

 

 

 

 

EXHIBIT 1A

 

Field of Use

 

 

                Cancer therapy in humans wherein
camptothecin or analogues thereof, including, but not limited to,
9-nitro-camptothecin and analogues thereof, are delivered in liposomes, lipid
complexes, or other liposome particles, to the respiratory tract via aerosol
droplets.

 

                This Field of Use is subject to
modification pursuant to Section 6 b. of the Research Agreement.

 

 

 

EXHIBIT 2

 

List of Countries

 

 

                                                                                United
States

                                                                                PCT
*

 

 

 

 

* PCT Countries:                                                        All countries will
be designated in the initial PCT filing. 
Within 30 months of the U.S. filing date, Licensor must select the
specific PCT countries in which to actually file, which countries are currently
expected to be as follows:  Australia,
Austria, Belgium, Canada, China, France, Germany, Ireland, Israel, Italy,
Japan, Republic of Korea, New Zealand, Netherlands, Russian Federation, South
Africa, Spain, Sweden, Switzerland, Taiwan, United Kingdom

 

 

 

EXHIBIT 3

 

Milestone Payments

 

 

                Licensee shall make the
following milestone payments to Licensor with respect to each Product subject
to this Agreement:

 

                                                                (a)           Fifty Thousand Dollars ($50,000.00) upon the earlier of
(i) approval, or (ii) the date of effectiveness, of an “IND” filed with the FDA
for such Product;

 

                                                                (b)           Fifty Thousand Dollars ($50,000.00) upon completion of a
“Phase I” human clinical trial for such Product and the Final Report thereon;

 

                                                                (c)           Two Hundred Thousand Dollars ($200,000.00) upon completion
of a “Phase II” human clinical trial for such Product and the Final Report
thereon;

 

                                                                (d)           Two Hundred Fifty Thousand Dollars ($250,000.00) upon
completion of any other phase of human clinical trials for such Product
required by the FDA and the Final Report thereon; and

 

                                                                (e)           Four Hundred Fifty Thousand Dollars ($450,000.00) upon
approval by the FDA of an “NDA” for such Product.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}]]