Document:

Exhibit 10.15

 

Confidential Materials omitted and filed separately with the

Securities and Exchange Commission. Double asterisks denote omissions.

 

LICENSE AGREEMENT

 

between

 

LONZA SALES AG

 

and

 

KOLLTAN PHARMACEUTICALS, INC.

 

 

INDEX

 

	
ARTICLE
    	
 
    	
TITLE
    	
 
    	
PAGE
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
1.
    	
 
    	
Definitions
    	
 
    	
3
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2.
    	
 
    	
Supply of the GS System and GS System Know-How
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
3.
    	
 
    	
Ownership of Property and Lonza Intellectual Property
    	
 
    	
9
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
4.
    	
 
    	
Licenses
    	
 
    	
9
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
5.
    	
 
    	
Payments
    	
 
    	
11
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
6.
    	
 
    	
Royalty Procedures
    	
 
    	
13
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
7.
    	
 
    	
Representations and Warranties
    	
 
    	
15
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
8.
    	
 
    	
Indemnity
    	
 
    	
17
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
9.
    	
 
    	
Confidentiality and Safekeeping
    	
 
    	
18
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
10.
    	
 
    	
Lonza Intellectual Property Enforcement
    	
 
    	
20
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
11.
    	
 
    	
Term and Termination
    	
 
    	
20
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
12.
    	
 
    	
Assignment
    	
 
    	
22
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
13.
    	
 
    	
Governing Law and Jurisdiction
    	
 
    	
23
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
14.
    	
 
    	
Disputes
    	
 
    	
23
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
15.
    	
 
    	
Force Majeure
    	
 
    	
23
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
16.
    	
 
    	
Illegality
    	
 
    	
23
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
17.
    	
 
    	
Miscellaneous
    	
 
    	
24
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
18.
    	
 
    	
Notice
    	
 
    	
25
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
19.
    	
 
    	
Interpretation
    	
 
    	
26
    
	
 
    	
 
    
	
Attachment
    	
 
    
	
 
    	
 
    	
 
    
	
1
    	
Lonza   Patent Rights
    	
 
    
	
 
    	
 
    	
 
    
	
2
    	
Royalty   Payments
    	
 
    
	
 
    	
 
    	
 
    
	
3
    	
Products
    	
 
    
	
 
    	
 
    	
 
    
	
4
    	
Approved   Sublicensees
    	
 
    
	
 
    	
 
    	
 
    
	
5
    	
Exceptions   to Representations and Warranties
    	
 
    
						

 

2

 

THIS LICENSE AGREEMENT is made effective as of the 30th day of March, 2012 (the “Effective Date”)

 

BETWEEN

 

LONZA SALES AG, incorporated and registered in Switzerland, whose registered office is at Muenchensteinerstrasse 38, CH-4002, Basel, Switzerland, and

 

KOLLTAN PHARMACEUTICALS, INC., a Delaware corporation with offices at 300 George Street, Suite #530, New Haven, CT 06511, United States.

 

WHEREAS

 

A.                                    Lonza and Kolltan are, as of the Effective Date, entering into the Development and Manufacturing Services Agreement (as hereinafter defined) for the development and manufacture of one or more Products (as hereinafter defined) to which use of the GS System (as hereinafter defined) is an integral part of such development and manufacture; and

 

B.                                    Lonza owns or otherwise controls the GS System and has the right to grant certain Lonza Intellectual Property (as hereinafter defined) rights in relation thereto; and

 

C.                                    Kolltan wishes to take a license under Lonza Intellectual Property to commercially exploit the Product in the form hereunder.

 

NOW THEREFORE the Parties hereby agree as follows:

 

1.                                      Definitions

 

1.1                               “Affiliate” means any company, corporation, limited liability company, partnership or other entity which directly or indirectly Controls, is Controlled by or is under common Control with the relevant Party. For purposes of this definition only, “Control” means the ownership of more than fifty percent (50%) of the issued share capital or the legal power to direct or cause the direction of the general management of the party in question.

 

1.2                               “Applicable Laws” means all applicable laws, statutes, regulations, guidelines, guidance and ordinances of the relevant regulatory authorities, including cGMP, in or of: (i) in the case of Kolltan, the United States; and (ii) in the case of Lonza, (a) the United States (b) Switzerland (c) the United Kingdom and (d) the European Union.

 

1.3                               “Business Day” means a day on which the London Stock Exchange in the United Kingdom and the New York Stock Exchange in the United States are open for trading.

 

1.4                               “cGMP” means Good Manufacturing Practices and General Biologics Products Standards as promulgated under the US Federal Food Drug and Cosmetic Act at 

 

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21CFR (Chapters 210, 211, 600 and 610) and the Guide to Good Manufacturing Practices for Medicinal Products as promulgated under European Directive 91/356/EEC. For the avoidance of doubt, Lonza’s operational quality standards are defined in internal cGMP policy documents which currently and in the future will comply with 21CFR (Chapters 210, 211, 600 and 610) and European Directive 91/356/EEC.

 

1.5                               “Combination Product” means a product that contains as an active ingredient a Product, together with one or more other (i.e., non-Product) pharmaceutically active ingredients, and are sold either as a fixed dose or as separate doses in a single package.

 

1.6                               “Competing Contract Manufacturer” means any Third Party that, for its fiscal year immediately preceding the date of determination, received more than [**] percent ([**]%) of its revenues from the contract manufacture (i.e., manufacturing for another party who will market and sell the product) of monoclonal antibodies and/or therapeutic proteins.

 

1.7                               “Development and Manufacturing Services Agreement” means the Development and Manufacturing Services Agreement between Lonza and Kolltan, dated as of the Effective Date, including any subsequent amendments thereto.

 

1.8                               “First Commercial Sale” means the date of the first sale or other arms length disposal of Product for consideration by Kolltan or its Sublicensee wherein Net Sales will be recorded by Kolltan.

 

1.9                               “Force Majeure Event” means an event beyond the reasonable control of and without the fault or negligence of the Party being affected by such event, including, but not limited to, an act of God, fire, act of government or state, terrorism, war, civil unrest, insurrection, embargo, or a labor dispute. Notwithstanding the foregoing, in the event of a complete or partial regulatory shutdown of a facility or service or other act by a regulatory authority that (a) specifically impacts a Party’s operations (i.e., without shutting down facilities owned by third parties) and (b) is due to a Party’s negligence, willful misconduct or non-compliance with Applicable Laws, such shutdown shall not constitute a “Force Majeure Event”.

 

1.10                        “GAAP” means the United States accounting standard known as Generally Accepted Accounting Principles.

 

1.11                        “GS System” means the glutamine synthetase gene expression system owned, developed, in-licensed or otherwise controlled by Lonza consisting of the Materials and the GS System Know-How, whether used individually or in combination with each other.

 

1.12                        “GS System Know-How” means Know-How owned, developed, in-licensed or otherwise controlled by Lonza relating directly or indirectly to the GS System known to Lonza from time to time, that is disclosed by Lonza to Kolltan pursuant to this License Agreement.

 

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1.13                        “Insolvency Event” means an event which occurs when a company: (a) is unable to pay its debts as they become due (under Swiss law: Zahlungsunfähigkeit); (b) enters into compulsory or voluntary liquidation; (c) is dissolved, or an order is made or a resolution is passed for its winding up (other than for the purpose of effecting a reconstruction or amalgamation in such manner that the company resulting from such reconstruction or amalgamation, if a different legal entity, shall agree to be bound by and assume the obligations of the relevant Party under this License Agreement); (d) with respect to any Swiss entity is, under Swiss law, over-indebted (überschuldet) pursuant to article 725 par. 2 of The Swiss Code of Obligations; (e) compounds with or convenes a meeting of its creditors or has or seeks to have an administrator, receiver, liquidator, or trustee appointed over all or any part of its assets or takes or suffers any similar action in consequence of a debt; (f) with respect to any Swiss entity, files under Swiss law a petition for the opening or postponement of bankruptcy proceedings (Antrag auf Konkurseröffnung oder Konkursaufschub) or the grant of a moratorium (Nachlassstundung); (g) with respect to any Swiss entity, has been issued a bankruptcy warning according to art. 159 Swiss Debt Enforcement and Bankruptcy Code; (h) causes or is subject to any event with respect to which, under the applicable laws of any jurisdiction has an analogous effect to any of the events specified above; or (i) ceases for any reason to carry on business.

 

1.14                        “Intellectual Property” means Patent Rights, rights to inventions, copyright, trademarks, service marks, trade, business and domain names, rights in goodwill, unfair competition rights, moral rights, rights in confidential information, including Know-How and any other intellectual property rights, in all cases whether patented, registered or unregistered and including all registrations of, applications for registration of and renewals of such rights, and all similar or equivalent rights or forms of protection in any part of the world.

 

1.15                        “Know-How” means confidential technical, business and other information not in the public domain, whether patented or unpatented, and subject to the confidentiality obligations imposed by Clause 9, including, but without prejudice to the generality of the foregoing, ideas, concepts, trade secrets, know-how, inventions, discoveries, data, formulae, specifications, processes, procedures for experiments and tests and other protocols, results of experimentation and testing, fermentation and purification techniques and assay protocols. For the avoidance of doubt, once such confidential technical or other information ceases to be subject to the confidentiality obligations of clause 9 (with the exception of clause 9.4.4, disclosure to a government agency or court), it shall cease to be Know-How as such term is defined in this License Agreement.

 

1.16                        Kolltan” means Kolltan Pharmaceuticals, Inc. including its Affiliates, subsidiaries, successors in title and lawful assigns.

 

1.17                        “Kolltan Cell Line” means a cell line for a particular human IgGx antibody of which Kolltan is the proprietor or licensee and that is constructed for Kolltan by 

 

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Lonza using the GS System pursuant to the Development and Manufacturing Services Agreement.

 

1.18                        “Kolltan Indemnitee” means the parties identified in Clause 8.1.

 

1.19                        “License Agreement” means this License Agreement incorporating Attachments 1, 2, 3, 4, and 5 as may be amended or updated from time to time by mutual written agreement of the Parties.

 

1.20                        “Lonza” means Lonza Sales AG, including its subsidiaries, successors in title and lawful assigns.

 

1.21                        “Lonza Indemnitee” means the parties identified in Clause 8.2.

 

1.22                        “Lonza Intellectual Property” means collectively, the GS System Know-How and the Lonza Patent Rights.

 

1.23                        “Lonza Patent Rights” means the Patent Rights owned or controlled by Lonza set forth on Attachment 1 hereto. Attachment 1 may be updated by Lonza from time to time upon the mutual agreement of the Parties.

 

1.24                        “Materials” means collectively the vectors and cell lines supplied by Lonza to Kolltan as described in Clause 2.1.1.

 

1.25                        “Net Sales” means the gross invoice price received by or on behalf of Kolltan or its Sublicensee(s) in respect of the sale of Product in the Territory, less the following items to the extent that they are paid or allowed and included in the invoice price, whether or not invoiced separately:

 

(a)                                 discounts and allowances actually granted, including without limitation, quantity, trade, cash and other discounts, rebates and charge-backs, other allowances or payments to government agencies;

 

(b)                                 amounts refunded or credits allowed for Product returned or not accepted by customers;

 

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

 

(d)                                 taxes, tariffs, customs duties, surcharges and other governmental charges actually incurred and paid by Kolltan or its Sublicensee(s) hereunder in connection with the sale, transportation, exportation, importation or delivery of Product to customers.

 

Sales between or among Kolltan, its Affiliates and Sublicensees shall be excluded from the computation of Net Sales, but subsequent sales by such parties to a Third Party shall be included in such computation. In the case of any sale or disposal of Product for consideration other than cash, such as barter or countertrade, or sale or 

 

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disposal other than on arms length terms without deceit or fraud, Net Sales shall be calculated on the fair market value of Product or consideration received, whichever is greater. Notwithstanding anything in this Clause, (i) the supply of Product (a) free of charge or for nominal consideration as commercial samples, (b) for use in clinical studies, (c) to third parties for evaluation purposes or (d) for charitable purposes or compassionate use if such uses do not result in compensation to Kolltan above the cost of goods, or (ii) the sale of Product rights (in contrast to the sale of tangible Product), as in the form of a license or asset purchase agreement, shall, in the case of both (i) and (ii), not be included as Net Sales.

 

If a Product is sold as part of a Combination Product in a particular country, the Net Sales of the Product in such country shall be determined by multiplying the Net Sales (as defined above) of the Combination Product in such country by the fraction A/(A+B) where “A” is the weighted (by sales volume) average sale price in such country of a Product, sold in non-Combination Product form, containing the same amount of antibody as the Product contained in the Combination Product in question, and “B” is the weighted (by sales volume) average sale price in such country of the same amount of the other active ingredient(s) when sold separately in finished form. If A can be determined, but B cannot be determined, Net Sales for purposes of determining royalty payments shall be calculated by multiplying the Net Sales (as defined above) of the Combination Product by the fraction A/C, where “C” is the weighted (by sales volume) average sale price of the Combination Product in such country. If B can be determined, but A cannot be determined, Net Sales for purposes of determining royalty payments of such Combination Product shall be calculated by multiplying the Net Sales (as defined above) of the Combination Product by the fraction 1 - (B/C). If neither A nor B can be determined, the Parties shall, acting in good faith, agree to an appropriate adjustment to Net Sales of the Combination Product taking into account the relative values of A and B to such Combination Product.

 

1.26                        “Party” or “Parties” means Lonza and/or Kolltan as applicable in the context.

 

1.27                        “Patent Rights” means any and all (a) patents, (b) pending patent applications, including all provisional applications, continuations, continuations-in-part, divisions, reissues, all granted patents issuing from such pending applications, all renewals and all national and regional phase derivatives, (c) all patents-of-addition, reissue patents, re-examinations and extensions or restorations by existing or future extension or restoration mechanisms, author certificates, inventor certificates, improvement patents, utility models and certificates, patent disclosures, improvements and supplementary protection certificates or the equivalent thereof, and (d) any equivalent of any of the foregoing in any jurisdiction.

 

1.28                        “Product” means one or more products that contain or comprise all or part of an antibody expressed using a Kolltan Cell Line and that are agreed between the Parties should be the subject of this License Agreement, the particulars of which will be set out in Attachment 4 to this License Agreement, as may be modified by the written agreement of the Parties.

 

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1.29                        “Regulatory Approvals” has the meaning described in Clause 7.1.

 

1.30                        “Representatives” means the parties described in Clause 8.1.

 

1.31                        “Sublicense Fee” means the fee detailed on Attachment 2 under the column with the header “Sublicense Fees”.

 

1.32                        “Sublicensee” means a Third Party to whom Kolltan has granted a sublicense pursuant to Clause 4.3.

 

1.33                        “Term” has the meaning set forth in Clause 11.1.

 

1.34                        “Territory” means world-wide.

 

1.35                        “Third Party” means any person, partnership, joint venture, corporation, trust, estate, unincorporated organization, government or agency thereof, or any entity other than a Party or any of its Affiliates.

 

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

 

2.                                      Supply of the GS System and GS System Know-How

 

2.1                               At any time or times during the Term, upon the written request of Kolltan, Lonza shall supply to Kolltan free of charge (Ex-works Lonza’s premises, Slough, Berkshire (Incoterms 2010)), the following:

 

2.1.1                                                                     (a)                                 Vectors

 

·                  [**].

 

·                  [**].

 

(b)                                 Cell Lines

 

·                  [**].

 

Upon Kolltan’s reasonable request, Lonza shall supply reasonable additional amounts of (a) and (b) at no additional cost to Kolltan.

 

2.1.2                                 GS System Know-How

 

2.1.2.1                                   GS System Know-How as of the Effective Date, and as may be updated by Lonza from time to time for any improvements or 

 

8

 

modifications to the GS System, contained in (a) manuals of operating procedures for the GS System, (b) regulatory information on CD-ROM or comparable storage medium, and (c) vector nucleotide sequences.

 

2.2                               Lonza shall use reasonable commercial efforts to ensure that the Materials shipped to Kolltan are mycoplasma-free and shall promptly notify Kolltan if, at any time during the Term, Lonza becomes aware that any Materials shipped to Kolltan are contaminated with mycoplasma.

 

2.3                               Lonza expressly acknowledges and agrees that, in addition to any other rights granted to Kolltan hereunder, Kolltan shall be entitled to use the Materials in all research activities relating to the exploitation of a Product licensed under this License Agreement but only in relation or connection to an antibody expressed using a Kolltan Cell Line specific to such Product and not in relation to any other Kolltan products that are in the pipeline or are otherwise being developed by Kolltan.

 

3.                                      Ownership of Property and Lonza Intellectual Property

 

3.1                               Except as set forth in clause 3.2, it is hereby acknowledged and agreed that as between the Parties, the GS System and any and all Intellectual Property in the GS System is vested in Lonza.

 

3.2                               It is hereby acknowledged and agreed that as between the Parties, Kolltan is the owner or licensee of any one or more gene(s) or other material provided by Kolltan and inserted into the GS System for the purposes of producing Product and all Intellectual Property and Know-How associated with such genes or other material are vested in Kolltan. Accordingly, as between the Parties, Kolltan is the owner of the Kolltan Cell Line and any data or other information derived or arising from the use of the Kolltan Cell Line shall exclusively belong to Kolltan.  To the extent any Intellectual Property in the GS System is embedded in the Kolltan Cell Line, Lonza hereby grants to Kolltan the licenses stated in Clause 4.

 

4.                                      Licenses

 

4.1                               Lonza hereby grants to Kolltan a world-wide non-exclusive license (with the right to sublicense, subject to Clause 4.3 below) under the Lonza Intellectual Property to use the GS System and Kolltan Cell Line to develop, make, use, sell, offer for sale, market, import and export Product in the Territory.

 

4.2                               Save as expressly provided by the terms of this License Agreement, Kolltan hereby undertakes not to make any modifications or adaptations to the GS System during the Term.

 

4.3                               Subject to the provisions of this Clause 4.3, Kolltan shall be entitled to grant sublicenses to the rights granted by Clause 4 to any one or more third parties (each 

 

9

 

a Sublicensee) for the purposes of any such Sublicensee exploiting Product provided that:

 

4.3.1                                 Kolltan shall ensure such Sublicensee’s use of the GS System and the Kolltan Cell Line is undertaken solely for the purpose of establishing a manufacturing process for Product, or manufacturing Product, for Kolltan or its sublicensees, or as necessary or reasonably useful in connection with seeking, obtaining and/or maintaining Regulatory Approvals for Product or for any process for the manufacture of Product; and

 

4.3.2                                 The Sublicensee shall not, by virtue of this License Agreement, be granted any right or license, either express or implied, under the Lonza Intellectual Property to use the GS System other than as stated in 4.3.1 above. The grant of any sublicense shall not include the ability for Sublicensee to assign, transfer, further sublicense or otherwise alter the benefits or the burdens of the rights granted to it pursuant to this License Agreement; and

 

4.3.3                                 Any sublicense granted shall be expressly subject and subordinate to the terms of this License Agreement, and it shall be Kolltan’s responsibility to ensure the strict adherence by any Sublicensee with the terms and conditions of this License Agreement; accordingly, Kolltan shall have the right to disclose the License Agreement to Sublicensee; and

 

4.3.4                                 Prior to the grant of a sublicence pursuant to this Clause 4.3, Kolltan shall obtain the written consent of Lonza to the grant of such sublicense; such consent not to be unreasonably withheld, delayed or conditioned. Lonza acknowledges and agrees that the fact that a proposed Sublicensee is a Competing Contract Manufacturer, or other competitor or potential competitor of Lonza or an Affiliate of Lonza shall not constitute a reasonable justification for withholding, delaying or conditioning such consent. If Lonza refuses consent, then it shall give Kolltan reasons for the refusal, subject (if applicable) to any contractual or other legal obligations of confidentiality Lonza may have to a Third Party. Notwithstanding the foregoing, sublicenses may be granted to the following entities without Lonza’s prior written consent: (i) Affiliates of Kolltan, (ii) those entities listed in Attachment 5 hereto (each an “Approved Entity”), and (iii) any successors to an Approved Entity. Kolltan shall provide written notice to Lonza upon the grant of a sublicense to an entity described in the preceding sentence within [**] days of such grant.

 

4.4                               If, on a country-by-country basis, any issued patents that form part of the Lonza Patent Rights (including any re-issued patents and unexpired patents), subsequently expire or no longer contain a Valid Claim, such Lonza Patent Rights shall automatically fall outside the scope of this License Agreement, and the provisions of Clauses 4.1 to 4.3 shall only apply with respect to those unexpired issued patents

 

10

 

 

 

which contain a Valid Claim and form part of the Lonza Patents Rights for as long as those issued patents remain in force.

 

4.5                               Notwithstanding Clause 4.4, on a country-by-country basis, where no Valid Claims within the Lonza Patent Rights remain in force, the provisions of Clauses 4.1 to 4.3 shall only apply for as long as the GS System Know-How remains secret and substantial to Lonza.

 

4.6                               Upon expiration of the Term in accordance with Clause 11.1 for each Product, Kolltan shall have a fully-paid up, world-wide non-exclusive license under the Lonza Intellectual Property to use the GS System and Kolltan Cell Line to develop, have developed, make, have made, use, sell, offer for sale, have sold, market, import and export such Product, including through multiple tiers of sublicenses.

 

4.7                               No license is granted save as expressly provided herein and no license in addition thereto shall be deemed to have arisen or be implied by way of estoppel or otherwise.

 

5.                                      Payments

 

5.1                               Milestone Fee

 

5.1.1                                 In consideration of the licence granted to Kolltan pursuant to Clause 4 above, upon the one year anniversary of the first Regulatory Approval for each Product under this License Agreement that is manufactured by Lonza, Kolltan shall pay Lonza a one-time milestone fee of £[**] pounds) in respect of such Product.

 

5.2                               Royalties

 

5.2.1                                 In further consideration of the license granted to Kolltan pursuant to Clause 4 above, Kolltan shall pay Lonza the royalties at the rates set forth on Attachment 2 and Sublicense Fees as set forth in Attachment 2. On a Product-by-Product basis, the royalties, calculated as a percentage of Net Sales of Product, as set forth on Attachment 2, shall be payable from the date of First Commercial Sale of such Product until the ten (10) year anniversary of such date of First Commercial Sale for such Product. As set forth in Attachment 2, the royalty is a multi-tiered structure designed to differ depending on:

 

(i)                                     whether the manufacturer is (1) Lonza, (2) Kolltan or a Sublicensee (other than a Competing Contract Manufacturer), or (3) a Sublicensee who is a Competing Contract Manufacturer; and

 

(ii)                                  whether a Valid Claim within the Lonza Patent Rights remains in force wherein:

 

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(a)                                 the column with the header “Pre-Patent Expiry” details the royalty percentages payable by Kolltan on Net Sales of Products manufactured pursuant to the licenses granted herein, where, on a country-by-country basis, a Valid Claim within the Lonza Patent Rights for such Product remains in force at the time of such sales;

 

(b)                                 the column with the header “Post-Patent Expiry” details the royalty percentages payable by Kolltan on Net Sales of Products manufactured pursuant to the licenses granted herein, where, on a country-by-country basis, no Valid Claims within the Lonza Patent Rights for such Product remain in force at the time of such sales; and

 

(c)                                  where Lonza is the manufacturer of Product for Kolltan, the royalty is further determined by identifying the order in which Products have achieved First Commercial Sale.

 

5.2.2                                 For the avoidance of doubt, once a Product has been determined to be the first, second or third Product (and so forth) to achieve First Commercial Sale, it shall continue to be the first, second or third Product (and so forth) for purposes of determining the appropriate royalty percentage on Attachment 2, regardless of the total number of Products that have achieved First Commercial Sales or are manufactured by Lonza.

 

5.3                               Sublicense Fee

 

5.3.1                                 Where a Sublicensee is a Competing Contract Manufacturer, the payment of the Sublicense Fee shall be due annually and shall be first payable on the commencement date of the relevant sublicense. The annual payment with respect to a particular Product shall cease (i) if such Product ceases to be manufactured under such sublicense or (ii) on the date which is the ten (10) year anniversary of the date of First Commercial Sale for such Product.

 

5.3.2                                 Notwithstanding anything to the contrary in this License Agreement, Kolltan shall not be liable for the Sublicense Fee if Kolltan is forced to sublicense to a Competing Contract Manufacturer due to (i) a material failure by Lonza to perform in accordance with the material provisions of the Development and Manufacturing Services Agreement and any of the additional agreements referenced in Section 2.5 of that agreement that the Parties have entered into or will enter into, in any case that has a direct impact on the commercial manufacture of Products or (ii) Lonza’s inability or unwillingness to perform preclinical, clinical and/or commercial manufacturing on commercially reasonable terms that are commensurate with the terms offered to other Lonza customers ordering preclinical, clinical and/or commercial manufacturing services on the 

 

12

 

same scale as Kolltan. For clarification, inability to perform preclinical, clinical and/or commercial manufacturing may include, but is not limited to, Force Majeure Events suffered by Lonza or regulatory shutdown of Lonza facilities/operations or other act(s) by a regulatory authority that impact Lonza’s operations and are due to Lonza’s fault, wilful misconduct, negligence or non-compliance with Applicable Laws.

 

6.                                      Royalty Procedures

 

6.1                               Kolltan shall keep true and accurate records and books of accounts containing all data necessary for the calculation of royalties payable to Lonza in accordance with GAAP. Such records and books of account shall, upon reasonable notice having been given by Lonza (which in no event shall be less than [**] calendar days’ prior notice), be open at all reasonable times during regular business hours for inspection by independent auditors selected by Lonza and reasonably acceptable to Kolltan. Such independent auditors shall agree to maintain the confidentiality of the information and materials disclosed during the financial audit. Any such financial audit shall be conducted according to GAAP and in a manner that does not materially interfere with the operations of Kolltan’s business. Lonza may perform a financial audit [**]. Each financial audit shall begin upon the date specified by Lonza, and agreed to by Kolltan and shall be completed as soon as reasonably practicable, but in no case later than [**] Business Days after commencement. Lonza shall pay the costs of the independent auditors conducting such financial audit, unless the results of the financial audit reveal an underpayment of [**] percent ([**]%) or more by Kolltan, in which case, Kolltan shall pay the reasonable costs of the independent auditors. If a financial audit concludes that an overpayment or underpayment has occurred during the audited period, such payment shall be remitted by the Party responsible for such payment to the other Party within [**] calendar days after the date such auditor’s written report identifying the overpayment or underpayment is delivered to the Party responsible for such payment.

 

6.2                               On a Product-by-Product basis, royalties shall not be payable until First Commercial Sales are achieved. Thereafter Kolltan shall prepare a statement in respect of each calendar quarter which shall show for the immediately preceding quarter details of the Net Sales of Product and the royalty due and payable to Lonza thereon.

 

6.2.1                                 For the first three calendar quarters (i.e., those ending on March 31, June 30 and September 30), such statement shall be submitted to Lonza within [**] calendar days after the end of the calendar quarter to which it relates, together with a remittance for the estimated royalties due to Lonza for such calendar quarter, net of any adjustments from prior quarters, audit requirements or other reconciliation procedures. For the fourth calendar quarter (i.e., that ending on December 31), such statement shall be submitted within [**] calendar days after the end of the year, together with a remittance for the royalties due to Lonza for such fourth quarter, 

 

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net of any adjustments from prior quarters, year-end closing procedures or other reconciliation procedures.

 

6.3                               All sums due under this License Agreement:

 

6.3.1                                 Shall be made in British Pounds Sterling to Lonza. Payments due to Lonza shall first be calculated in the relevant local currency before being calculated into British Pounds Sterling at the rate of exchange in effect at the close of business [**] Business Days prior to the date such payment is due. The rate of exchange shall be the mean value of the British Pound Sterling/US Dollar FX Spot Rate in London first published in the Financial Times on the day for determining such rates.

 

6.3.2                                 Are exclusive of any value added tax, levies, imposts and duties imposed by or under the authority of any government or public authority (other than taxes on Lonza’s income), and shall be paid by Kolltan. The Parties agree to cooperate in all respects reasonably necessary to take advantage of any double taxation treaties as may be available. Where a deduction or withholding is required to be made by Kolltan, Kolltan shall give Lonza such assistance as may be necessary or expedient to enable Lonza to claim exemption therefrom or a reduction thereof and Lonza and Kolltan shall use reasonable efforts to ensure that such exemption or reduction is claimed. Such assistance shall include the provision by Kolltan to Lonza of such forms as the relevant tax authority may require Lonza to complete. Lonza shall complete and return to Kolltan any form provided by Kolltan that is required by the relevant tax authorities from time to time to: (i) attest to Lonza’s fiscal residence; and (ii) obtain the application of the reduced withholding tax rate or the exemption of withholding tax, according to the relevant bilateral convention for the prevention of double taxation. To the extent that withholding tax is payable, Kolltan shall remit the withholding tax to the proper tax authority and shall deliver as soon as is reasonably practicable to Lonza such certificate or other proof of payment of such tax as may be necessary to enable Lonza to credit the withholding tax paid against taxes to be paid by it.

 

6.4                               Where there is not a dispute for sums due under this License Agreement and Lonza has not received payment of any such undisputed sum by the date such payment would be due in accordance with this License Agreement, interest shall accrue thereafter on the undisputed sum due and owing to Lonza at the rate of [**] percent ([**]%) above the base lending rate from time to time of National Westminster Bank plc on any unpaid balance; interest to accrue on a day to day basis until payment by Kolltan or as otherwise resolved by the mutual agreement of the Parties.

 

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7.                                      Representations and Warranties

 

7.1                               Lonza represents, warrants and covenants as follows, provided that, with respect to each Product, such representations and warranties, as applicable, shall be deemed to be made by Lonza with respect to a given Product when such Product is appended to this License Agreement in Attachment 4 and, provided further that, prior to such time, Lonza shall disclose any exceptions to such representations and warranties as Attachment 5 hereto:

 

(a)                                 the GS System and Lonza Intellectual Property are owned by Lonza or Lonza otherwise has rights to use and license all Intellectual Property in and to them and as otherwise required for the purposes of providing a license to Kolltan on the terms of this License Agreement, and during the Term, Lonza shall not do, permit or cause anything to be done which would adversely affect Lonza’s ownership or entitlement to use the same for those purposes;

 

(b)                                 Lonza has the necessary corporate authorizations to enter into and perform its obligations under this License Agreement and the execution, delivery and performance of this License Agreement by Lonza does not conflict with any agreement, instrument or understanding, oral or written, to which it is a party or by which it may be bound;

 

(c)                                  Lonza is not in litigation or other judicial proceedings, nor has Lonza’s legal department received any written, including email, notification of a Third Party’s intention to commence litigation or judicial proceedings, in each case concerning the use of the Lonza Intellectual Property and the GS System as provided herein;

 

(d)                                 the licenses granted and the Materials to be provided pursuant to this License Agreement are the only intellectual property rights and materials that must be licensed or provided from Lonza in order to use the GS System itself, without infringing or misusing any Intellectual Property (including confidential information) of Lonza;

 

(e)                                  Lonza has existing and valid agreements with Lonza Group AG and other Lonza Affiliates that permits Lonza to grant the licenses under the Lonza Intellectual Property as set forth in Clause 4 and to give the representations, warranties and covenants set forth in this Clause 7.1 and Lonza covenants that it shall procure that such agreements stay in full force and effect for the term of this License Agreement and are not amended in a manner that would adversely alter Kolltan’s rights under this License Agreement;

 

(f)                                   the GS System Know-How disclosed pursuant to Clause 2.1.2 will, at the time of disclosure, (i) contain all of the data and information relating to the GS System that is required to obtain and maintain the approval by the Food and Drug Administration (FDA) or European Medicines Agency (EMA), or 

 

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other regulatory authorities as the Parties may agree upon, necessary to sell a biopharmaceutical product for therapeutic, prophylactic or diagnostic use in humans (“Regulatory Approvals”); and (ii) be accurate and complete in all material respects;

 

(g)                                  it is not aware of any scientific or technical facts or circumstances in relation to the GS System that would or could reasonably be expected to materially adversely affect the likelihood of a Regulatory Approval or other regulatory approvals being granted;

 

(h)                                 the Materials have been generated and kept in accordance with all Applicable Laws; and

 

(i)                                     the information provided with or concerning the Materials pursuant to Clause 2.1. is, to the best of Lonza’s knowledge, accurate and complete.

 

7.2                               Kolltan represents, warrants and covenants that:

 

(a)                                 it has the necessary corporate authorizations to enter into and perform its obligations under this License Agreement and the execution, delivery and performance of this License Agreement by Kolltan does not conflict with any agreement, instrument or understanding, oral or written, to which it is a party or by which it may be bound;

 

(b)                                 it shall use the GS System only in the expression of Product obtained by gene(s) coding for Product(s) in the GS System or as otherwise permitted by this License Agreement, and to obtain and maintain any Regulatory Approvals or other regulatory approvals in connection with the Products. Kolltan shall not use, cause the use of or permit to be used the GS System for any purpose not directly authorized by this License Agreement, the Development and Manufacturing Services Agreement or any relevant agreement subsequently entered into by the Parties involving the use of the GS System.

 

7.3                               Subject to Clause 7.1(d), Kolltan hereby acknowledges that, following use of the relevant Kolltan Cell Line to express Product, in order to exploit Product, Kolltan may require licences under (i) Patent Rights vested in Lonza or Affiliates of Lonza other than those herein licensed (it being understood that such Patent Rights do not relate directly to the GS System), or (ii) Third Party Patent Rights, that may be infringed by such exploitation of such Product and it is hereby agreed that it shall be Kolltan’s responsibility to satisfy itself as to the need for such licences and if necessary to obtain such licences except that Lonza shall promptly notify Kolltan of any changes under (i) above that would require Kolltan action to comply with this Clause 7.3. No licence is granted save as expressly provided herein and no licence in addition thereto shall be deemed to have arisen or be implied by way of estoppel or otherwise.

 

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8.                                      Indemnity

 

8.1                               Lonza shall defend, indemnify and hold harmless each of Kolltan and its directors, officers, employees, agents (collectively, “Representatives”), the successors and assigns of any of the foregoing, and each Sublicensee (each a “Kolltan Indemnitee”) from and against any loss, damage, costs and expenses of any nature (including court costs and reasonable legal fees and expenses) that a Kolltan Indemnitee may suffer arising directly out of any breach of the representations and warranties given by Lonza in this License Agreement. Lonza shall further indemnify Kolltan Indemnities against all claims, actions, costs, expenses (including court costs and reasonable legal fees and expenses) or other liabilities whatsoever in respect of any and all losses, damages, costs and expenses suffered or incurred as a result of (i) any tortious claims or proceedings of death or bodily injury relating to the Product to the extent such claims or proceedings result from the Lonza Intellectual Property and/or the GS System, (ii) any defect in Product attributable to Lonza or the GS System, or (iii) Lonza’s negligent acts or omissions, wilful misconduct, or breach of this License Agreement.

 

8.2                               Kolltan shall defend, indemnify and hold harmless each of Lonza and its Representatives and the successors and assigns of any of the foregoing (each a “Lonza Indemnitee”) from and against any loss, damage, costs and expenses of any nature (including court costs and reasonable legal fees and expenses), that a Lonza Indemnitee may suffer arising directly out of any breach of the representations and warranties given by Kolltan in this License Agreement, or any breach of a sublicence of this License Agreement by a Sublicensee. Kolltan shall further indemnify Lonza Indemnitees against all claims, actions, costs, expenses (including court costs and reasonable legal fees and expenses) or other liabilities whatsoever in respect of any and all losses, damages, costs and expenses suffered or incurred as a result of any tortious claims or proceedings of death or bodily injury relating to the Product, unless such liability is caused by (i) defects in the Lonza Intellectual Property and/or GS System, (ii) any defect in Product attributable to Lonza or the GS System, or (iii) the negligent act or omission, willful misconduct, or breach of this License Agreement or the Development and Manufacturing Services Agreement of or by Lonza.

 

8.3                               If a Lonza Indemnitee or Kolltan Indemnitee (the “Indemnitee”) intends to claim indemnification under this Clause 8, it shall promptly notify the other Party (the “Indemnitor”) in writing of such alleged liability. The Indemnitor shall have the right to control the defense thereof with counsel of its choice as long as such counsel is reasonably acceptable to Indemnitee; provided, however, that any Indemnitee shall have the right to retain its own counsel at its own expense, for any reason, including if representation of any Indemnitee by the counsel retained by the Indemnitor would be inappropriate due to actual or potential differing interests between such Indemnitee and any other Party reasonably represented by such counsel in such proceeding. The Indemnitee, its employees and agents, shall reasonably cooperate with the Indemnitor and its legal representatives in the investigation of any liability covered by this Clause 8. The obligations of this 

 

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Clause 8.3 shall not apply to amounts paid in settlement of any claim, demand, action or other proceeding if such settlement is effected without the consent of the Indemnitor, which consent shall not be withheld or delayed unreasonably. The failure to deliver written notice to the Indemnitor within a reasonable time after the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve the Indemnitor of any obligation to the Indemnitee under this Clause 8. It is understood that only Lonza or Kolltan may claim indemnity under this Clause 8 (on its own behalf or on behalf of its Indemnitees), and other Indemnitees may not directly claim indemnity hereunder.

 

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

 

8.5                               IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR LOSS OF PROFITS, SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES ARISING OUT OF THIS LICENSE AGREEMENT OTHER THAN AS A RESULT OF GROSSLY NEGLIGENT OR INTENTIONALLY WRONGFUL ACTS OR OMISSIONS.

 

9.                                      Confidentiality and Safekeeping

 

9.1                               Kolltan expressly acknowledges that the GS System Know-How is supplied in circumstances imparting an obligation of confidence and, subject to the terms of this Clause 9, Kolltan agrees to keep such GS System Know-How secret and confidential and to respect Lonza’s proprietary rights therein and to use the same for the sole purpose of this License Agreement, and not during the Term or at any time for any reason whatsoever to disclose or permit to be disclosed such GS System Know-How to any Third Party. Notwithstanding the foregoing, Kolltan shall be permitted to disclose GS System Know-How to (i) Sublicensees and if applicable, Sublicensee’s Representatives, for use in accordance with the terms of this License Agreement, (ii) Kolltan’s Representatives, contractors and consultants who have a need to know such information in course of performance of their duties, and (iii) any regulatory or governmental agency or authority to the extent necessary to obtain and maintain the Regulatory Approvals or other regulatory approvals for a Product; subject to the requirement that each of the parties in (i) and (ii) shall be informed of the secret and confidential nature of such GS System Know-How and have the same obligations of confidence as Kolltan pursuant to this Clause 9.

 

9.2                               Kolltan hereby undertakes and agrees to keep the GS System secure and safe from loss, damage, theft, misuse and unauthorized access and shall procure that the GS System shall be made available only to its consultants, contractors, Representatives, Sublicensees and if applicable, the Representatives of its Sublicensee, who have a need to access the GS System hereunder and subject to the same obligations of confidence as provided in Clause 9.1 hereof, and to use the same for the sole purpose of this License Agreement.

 

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9.3                               Both Parties undertake and agree not to at any time for any reason whatsoever disclose or permit to be disclosed to any Third Party (provided that disclosure shall be permitted to contractors, consultants, Representatives or Sublicensees (in the case of Kolltan) of the receiving Party that have a need to know and have the same obligations of confidence and non-use as the Parties pursuant to this Clause 9) or otherwise make use of or permit or cause to be made use of any trade secrets or confidential information or materials relating to the Know-How (other than GS System Know-How, which is addressed in Section 9.1), business affairs or finances of the other Party or of any suppliers, agents, distributors, licensees or other customers of the other Party which comes into their possession pursuant to this License Agreement. Notwithstanding the foregoing, Kolltan shall be permitted to disclose the existence and terms of this License Agreement to any Third Party (i) with whom Kolltan is in a sublicensing relationship or is, in good faith, considering entering into a sublicensing relationship with or (ii) that has invested in or is, in good faith, considering an investment in Kolltan, provided that each of the parties in (i) and (ii) shall have the same obligations of confidence and non-use as the Parties pursuant to this Clause 9. In addition, both Parties undertake and agree to protect the other Party’s confidential information using the same procedures and standard of care they would use to protect their own confidential information and in any case, not less than a reasonable standard of care.

 

9.4                               The obligations of confidence referred to in this Clause 9 shall not extend to any information which the receiving Party demonstrates:

 

9.4.1                                 is or becomes generally available to the public otherwise than by reason of a breach by the recipient Party of such information of the provisions of this Clause 9;

 

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

 

9.4.3                                 is subsequently disclosed to the recipient Party without obligations of confidence by a Third Party owing no such obligation of confidentiality to the disclosing Party;

 

9.4.4                                 is required to be disclosed to a government agency or court for the purpose of any statutory, regulatory or similar legislative requirement applicable to the production of Product or to meet the requirements of any stock exchange to which the Parties may be subject or in the context of litigation, but only to the extent such disclosure is required, and wherever possible, subject to obligations of secrecy and minimizing the extent of the disclosure to just the required disclosure; or

 

9.4.5                                 can be demonstrated by competent written evidence as having been independently developed by the recipient Party without access to or use or knowledge of the information of the disclosing Party.

 

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10.                               Lonza Intellectual Property Enforcement

 

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

 

10.1.1                          diligently prosecute or procure prosecution of the patent applications comprising part of the Lonza Patent Rights so as to secure the best commercial advantage obtainable, as determined by Lonza in its commercially reasonable discretion, and will pursue, as determined by Lonza in its commercially reasonable discretion, all necessary actions against any Third Party that Lonza reasonably believes is infringing, misappropriating or violating any Lonza Intellectual Property; and

 

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

 

10.2                        Each Party shall promptly notify the other Party in writing if it receives, is notified or otherwise becomes aware of a claim from a Third Party of any infringement or improper or unlawful use of or of any challenge to the validity of the Lonza Patent Rights. Lonza undertakes and agrees to take all such steps and proceedings and to do all other acts and things as may in Lonza’s sole discretion be necessary to restrain any such infringement or improper or unlawful use or to defend such challenge to validity and Kolltan shall permit Lonza to have the sole conduct of any such steps and proceedings including the right to settle them whether or not Kolltan is a party to them provided that Lonza shall bear the full costs of any such settlement and Kolltan’s rights under this License Agreement are not adversely affected. Kolltan shall have the right at its own cost and for its own benefit to initiate, prosecute and control the enforcement of the Lonza Patent Rights against infringement by a Third Party in the Territory if all of the following conditions are fulfilled (a) the product manufactured through the infringing activity is a competing product to the Product, (b) Lonza has not granted rights to third parties which prevent Lonza from granting such a right to enforce to Kolltan, and (c) Lonza does not initiate proceedings within [**] calendar days of being requested to do so by Kolltan.

 

11.                               Term and Termination

 

11.1                        Unless terminated earlier in accordance with the provisions of this Clause 11 or Clause 15, this License Agreement shall continue in force, on a country-by-country basis and a Product-by-Product basis, until the later of (i) expiry of the last Valid Claim in the Lonza Patent Rights, and (ii) so long as the GS System Know-How remains secret and substantial (the “Term”). For the avoidance of doubt, it is understood and agreed that upon expiration of the Term, Kolltan shall have the license and rights set forth in Clause 4.6.

 

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11.2                        Kolltan may terminate this License Agreement in its entirety or on a Product-by Product basis by giving sixty (60) calendar days notice in writing to Lonza.

 

11.3                        Either Lonza or Kolltan may terminate this License Agreement forthwith by notice in writing to the other upon the occurrence of any of the following events:

 

11.3.1                          if the other commits a material breach of this License Agreement which in the case of a breach capable of remedy shall not have been remedied within [**] calendar days or such other reasonable period of time as mutually agreed by the Parties, of the receipt by the other of a notice identifying the breach and requiring its remedy.

 

11.3.2                          if the other Party experiences an Insolvency Event. In the case of Kolltan experiencing an Insolvency Event, Lonza’s right to terminate this Agreement forthwith as set out in the preceding sentence shall remain, but even if Lonza does so terminate, Lonza shall conduct good faith discussions with Kolltan exploring ways in which this License Agreement might continue.

 

11.4                        If at any time during the Term, Kolltan knowingly and directly opposes or assists any Third Party to oppose the grant of letters patent or any patent application within any of the Lonza Patent Rights or knowingly and directly disputes or assists any Third Party to dispute the validity of any patent or patent application within any of the Lonza Patent Rights or any of the claims thereof (other than in defense to any claim of infringement of any of the Lonza Patent Rights brought by Lonza) and Lonza is able to provide proof thereof, Lonza shall be entitled at any time thereafter to terminate the licenses under such Lonza Patent Rights granted hereunder forthwith by written thirty (30) calendar days’ notice to Kolltan.

 

11.5                        If this License Agreement is terminated under Section 11.2, 11.3 or 11.4, any and all licenses granted hereunder (or in the case of termination in relation to a specific Product under Section 11.2, then the licence to such Product only) shall terminate with effect from the date of termination and Kolltan shall destroy all Materials and shall certify such destruction within [**] calendar days thereafter in writing to Lonza. Notwithstanding the foregoing, after the date of termination Kolltan shall be entitled to (i) complete any Products already in manufacturing as of such date and (ii) subject to the royalties set forth in Clause 5, sell or otherwise dispose of (x) Products already in the commercial stream and (y) Products manufactured pursuant to (i) above.

 

11.6                        If this License Agreement is terminated by Lonza pursuant to Clause 11.3 or 11.4 and Kolltan has granted one or more sublicenses to a Sublicensee prior to such termination, then Lonza shall enter into licenses directly with each such Sublicensee granting each such Sublicensee the right to continue to use the GS System under the Lonza Intellectual Property to the extent previously permitted subject to provisions substantially equivalent to the applicable terms of this License Agreement, provided that such Sublicensee (i) is not a Competing Contract 

 

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Manufacturer; (ii) has not suffered an Insolvency Event; and (iii) has not committed any unremedied material breach of the relevant sublicense.

 

11.7                        If this License Agreement is terminated pursuant to an Insolvency Event suffered by Lonza under Clause 11.3.2, Lonza shall use good faith best efforts to procure the continuation of this License Agreement through Lonza Group AG or other Lonza Affiliate, as applicable.

 

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

 

11.9                        All intellectual property rights and licenses granted under or pursuant to this License Agreement by Lonza are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code or any analogous provisions in any other country or jurisdiction, licences of right to “intellectual property” as defined under Section 101 of the U.S. Bankruptcy Code. The Parties agree that Kolltan, as licensee of such rights under this License Agreement, shall retain and may fully exercise all of its rights and elections under the U.S. Bankruptcy Code or any analogous provisions in any other country or jurisdiction. The Parties further agree that, in the event of the commencement of a bankruptcy proceeding by or against Lonza under the U.S. Bankruptcy Code or any analogous provisions in any other country or jurisdiction, Kolltan shall be entitled to retain any such intellectual property and all embodiments of such intellectual property.

 

12.                               Assignment

 

12.1                        This License Agreement may not be assigned or otherwise transferred by either Party without the prior written consent of the other Party; provided, however, that either Party shall be entitled, without the prior written consent of the other Party, to assign this License Agreement (a) in connection with the transfer or sale of all or substantially all of its assets or the relevant line of business to which this License Agreement relates and, in the case of Kolltan, on a Product-by-Product basis, (b) to a successor entity or acquirer in the event of a merger, consolidation or change of control, or (c) to an Affiliate, provided that in all cases the permitted assignee shall not, at the time of such assignment, be insolvent or otherwise unable to provide satisfaction of any judgment levied against them. Any purported assignment in violation of the preceding sentence will be void. Any permitted assignee will assume the rights and obligations of its assignor for the Products subject to this License Agreement.

 

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

 

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13.                               Governing Law and Jurisdiction

 

13.1                        The construction, validity and performance of the License Agreement shall be governed by the laws of England, without giving effect to its principles of conflict of laws and the Parties shall submit to the non-exclusive jurisdiction of the Courts of England or the non-exclusive jurisdiction of the courts of the State of New York, in the United States.

 

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

 

14.                               Disputes

 

14.1                        If a dispute arises under this License Agreement, the Parties agree to attempt in good faith to resolve such dispute by mediation administered by the CEDR (Centre for Effective Dispute Resolution) in London. The Parties agree that they shall share equally the cost of any mediation fees, and the cost of the mediator. Each Party must bear its own attorneys’ fees and associated costs and expenses. The place of any mediation shall be London, England. If efforts at mediation are unsuccessful within [**] days of either Party referring the dispute to mediation, either Party may pursue its rights in a court of law.

 

15.                               Force Majeure

 

15.1                        If either Party is prevented or delayed in the performance of any of its obligations under the License Agreement by a Force Majeure Event, such Party shall give written notice thereof to the other Party specifying the matters constituting the Force Majeure Event together with such evidence as such Party reasonably can give and specifying the period for which it is estimated that such prevention or delay will continue. The Party experiencing a Force Majeure Event shall be excused from the performance or the punctual performance of such obligations as the case may be from the date of such notice for so long as the Force Majeure Event shall continue, provided however, if the reason continues for a period of ninety (90) consecutive calendar days and substantially affects the commercial basis of this License Agreement, the Party not claiming under this Clause 15 shall have the right to terminate this License Agreement by giving written notice of such termination to the other Party.

 

16.                               Illegality

 

16.1                        If any provision or term of this License Agreement or any part thereof shall become or be declared illegal, invalid or unenforceable for any reason whatsoever, including, but without limitation, by reason of the provisions of any legislation or 

 

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other provisions having the force of law or by reason of any decision of any court or other body or authority having jurisdiction over the parties hereto or this License Agreement including the EC Commission or the European Court of Justice:

 

(a)                                 such provision shall, so far as it is illegal, invalid or unenforceable, be given no effect by the Parties and shall be deemed not to be included in this License Agreement;

 

(b)                                 the other provisions of this License Agreement shall be binding on the Parties as if such provision was not included therein; and

 

(c)                                  the Parties agree to negotiate in good faith to amend such provision to the extent possible for incorporation herein in such reasonable manner as most closely achieves the intention of the Parties without rending such provision invalid or unenforceable.

 

17.                               Miscellaneous

 

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

 

17.2                        This License Agreement shall not be amended, modified, varied or supplemented except in writing signed by duly authorized representatives of the Parties.

 

17.3                        The obligations of the parties under Clauses 1, 3, 4.6, 6.1, 6.3.2, 6.4, 7, 8, 9, 11.5 through 11.9, and 12 though 19 shall survive the termination of this License Agreement for any reason.

 

17.4                        Except as required by law, the text of any press release or other communication to be published by or in the media whether of a scientific nature or otherwise and concerning this License Agreement shall require the prior written approval of Lonza and Kolltan.

 

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

 

17.6                        The Parties to this License Agreement do not intend that any term hereof should be enforceable by virtue of the Contracts (Rights of Third Parties) Act 1999, or by any other statute or common-law principle, by any person who is not a party to this License Agreement except that a person who is the permitted successor to or permitted assignee of the rights of a Party shall be deemed to be a party to this License Agreement and the rights of such successor or assignee shall, subject to and upon any succession or assignment permitted by this License Agreement, be regulated by the terms of this License Agreement. Notwithstanding that any term of this License Agreement may be or become enforceable by a Third Party who is not 

 

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a Party, the terms of this License Agreement may be amended or modified and this License Agreement may be suspended, cancelled or terminated only by an agreement in writing between the Parties and without the consent of any such Third Party.

 

18.                               Notice

 

18.1                        Any notice or other communication to be given under this License Agreement shall be delivered personally or sent by facsimile transmission, or if facsimile transmission is not available, by first class pre-paid post or prepaid recognized next business day delivery service to the following addresses:

 

(a)                                 If to Lonza to:

LONZA BIOLOGICS PLC,
 228 Bath Road
 Slough Berkshire SL1 4DX
 England
 Facsimile: +44 1753 777001
 For the attention of: The Head of Legal Services

 

(b)                                 If to Kolltan to:

KOLLTAN PHARMACEUTICALS, INC.
 300 George Street, Suite #530
 New Haven, CT 06511
 United States
 Facsimile: 1 203 773 1300
 For the attention of:  Chief Executive Officer

 

With a copy to:
 KOLLTAN PHARMACEUTICALS, INC.
 300 George Street, Suite #530
 New Haven, CT 06511
 United States
 Facsimile: 1 203 773 1300
 For the attention of: General Counsel

 

or to such other destination as either Party hereto may hereafter notify to the other in accordance with the provisions of this Clause 18.

 

18.2                        All such notices or other communications shall in the English language and shall be deemed to have been served as follows:

 

(a)                                 if delivered personally, at the time of such delivery;

 

(b)                                 if sent by facsimile, upon receipt of the transmission confirmation slip showing completion of the transmission;

 

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(c)                                  if sent by first class pre-paid post, ten (10) Business Days after being placed in the post; and

 

(d)                                 if sent by prepaid recognized next business day delivery service, the delivery time noted on the receipt confirmation.

 

19.                               Interpretation

 

19.1                        In this License Agreement, unless the context otherwise requires:

 

(a)                                 The headings in this License Agreement are inserted only for convenience and shall not affect the construction hereof;

 

(b)                                 References to “this License Agreement” shall mean this License Agreement and any and all Attachments to it, each as amended from time to time in accordance with the provisions of this License Agreement;

 

(c)                                  References to Clauses and Attachments are references to clauses and attachments to this License Agreement or as appended to this License Agreement by the written mutual agreement of the Parties;

 

(d)                                 The words “include”, “including” or “in particular” are to be construed without limitation to the generality of the preceding words;

 

(e)                                  Any reference to “writing” includes a reference to any communication effected by facsimile transmission or similar means;

 

(f)                                   Where appropriate words denoting a singular number only shall include the plural and vice versa;

 

(g)                                  Reference to any statute or statutory provision includes a reference to the statute or statutory provision as from time to lime amended, extended or re-enacted; and

 

(h)                                 Any covenant by a Party not to do an act or thing shall be deemed to include an obligation not to permit or suffer such act or thing to be done by that Party’s Affiliate(s).

 

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AS WITNESS the hands of the duly authorized representatives of the Parties hereto

 

	
Signed   for and on behalf of
    	
/s/   Karen Fallen
    	
 
    
	
 
    	
 
    	
 
    
	
LONZA   SALES AG
    	
 
    	
 
    
	
 
    	
Karen   Fallen
    	
 
    
	
 
    	
Authorised   Signatory
    	
TITLE
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   for and on behalf of
    	
/s/   Janet White
    	
 
    
	
 
    	
 
    	
 
    
	
LONZA   SALES AG
    	
 
    	
 
    
	
 
    	
Janet   White
    	
 
    
	
 
    	
Authorised   Signatory
    	
TITLE
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   for and on behalf of
    	
/s/   Michael Schmertzler
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
KOLLTAN   PHARMACEUTICALS, INC.
    	
Chief   Executive Officer
    	
TITLE
    

 

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Attachment 1.

 

LONZA PATENT RIGHTS

 

Confidential Materials omitted and filed separately with the Securities and Exchange Commission. A total of 4 pages were omitted. [**]

 

28

 

Attachment 2.

 

ROYALTY PAYMENTS

 

	
 
    	
 
    	
Sublicense Fees
    	
 
    	
Royalties (Section 5.2)
    
	
If Manufacturer Is:
    	
 
    	
(Section 5.2 and 5.3)
    	
 
    	
Pre-Patent Expiry
    	
 
    	
Post-Patent Expiry
    
	
Lonza
    	
 
    	
[**]
    	
 
    	
[**]%   for the [**] Product achieving First Commercial Sale

 

[**]%   for the [**] Product achieving First Commercial Sale

 

[**]%   for the [**] Product and beyond achieving First Commercial Sale
    	
 
    	
[**]%   for the [**] Product achieving First Commercial Sale

 

[**]%   for the [**] Product achieving First Commercial Sale

 

[**]%   for the [**] Product and beyond achieving First Commercial Sale
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Kolltan   or a Sublicensee other than a Competing Contract Manufacturer
    	
 
    	
[**]
    	
 
    	
[**]%
    	
 
    	
[**]%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sublicensee   who is a Competing Contract Manufacturer
    	
 
    	
£[**]   per year per sublicense
    	
 
    	
[**]%
    	
 
    	
[**]%
    

 

29

 

Attachment 3.

 

PRODUCTS

 

30

 

Attachment 4.

 

APPROVED SUBLICENSEES

 

Any entities listed herein shall automatically include any parent corporation, affiliates or subsidiaries of such entities that are established in the United States and/or Europe, whether or not such parent corporation, affiliates or subsidiaries are separately listed herein.

 

Confidential Materials omitted and filed separately with the Securities and Exchange Commission. A total of 4 pages were omitted. [**]

 

31

 

Attachment 5.

 

EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES

 

32

 

 

 

 

AMENDMENT NO. 1

 

to the

 

LICENSE AGREEMENT

 

Dated 30 March 2012

 

between

 

LONZA SALES AG

 

and

 

KOLLTAN PHARMACEUTICALS, INC.

 

1

 

THIS AMENDMENT NO. 1 (“Amendment No. 1”) is made the 31st day of October, 2013 (the “First Amendment Effective Date”)

 

BETWEEN

 

LONZA SALES AG, incorporated and registered in Switzerland whose registered office is at Muenchensteinerstrasse 38, CH-4002, Basel, Switzerland (“Lonza”), and

 

KOLLTAN PHARMACEUTICALS, INC., a Delaware corporation with offices at 300 George Street, Suite #530, New Haven, CT 06511, United States (“Kolltan”).

 

WHEREAS

 

A.                                    Kolltan and Lonza entered into a License Agreement dated 30 March 2012 (the “License Agreement”), under which Lonza agreed to grant a license of certain Lonza Intellectual Property (as defined in the License Agreement) to Kolltan;

 

B.                                    Kolltan now wishes to amend the terms of the License Agreement to obtain additional materials and rights, subject to the terms and conditions set out herein;

 

C.                                    Lonza now wishes to amend the terms of the License Agreement to supply or permit to be supplied additional materials and to grant additional license rights to Kolltan, subject to the terms and conditions set out herein; and

 

D.                                    Kolltan and Lonza desire to update the License Agreement by adding a Product, as such term is defined in the License Agreement and amended in accordance with this Amendment No. 1, to be subject to the License Agreement.

 

NOW THEREFORE, in consideration of the mutual promises and covenants contained herein and other good and valuable consideration, the sufficiency of which is acknowledged, it is hereby agreed by and between the Parties to amend the License Agreement as at the First Amendment Effective Date as follows:

 

1.                                      Any capitalized terms used in this Amendment No. 1 and not otherwise defined herein shall have the meanings ascribed to them in the License Agreement.

 

1.1                               The following definition in the License Agreement is hereby amended and restated as follows:

 

“1.28                                          “Product” means one or more products that contain or comprise all or part of an antibody expressed using a Kolltan Cell Line and that are agreed between the Parties should be the subject of this License Agreement, the particulars of which will be set out in Attachment 3 to this License Agreement, as may be modified by the written agreement of the Parties.”

 

2

 

1.2                               The following additional definitions are hereby inserted into Article 1 of the License Agreement:

 

“1.37                  “CDACF Version 8 Base Powders” means the powders set forth on Attachment 8;

 

1.38                        “CDACF Version 8 Feeds” means the concentrated nutrient solutions used in order to maintain the growth and productivity of mammalian cells, as set forth on Attachment 6;

 

1.39                        “CDACF Version 8 Know-How” means any Know-How specifically relating to the CDACF Version 8 Base Powders, CDACF Version 8 Feeds, CDACF Version 8 Media or the CDACF Version 8 Supplements, as set forth on Attachment 7;

 

1.40                        “CDACF Version 8 Media” means the solutions of nutrients used in mammalian cell culture, as set forth on Attachment 6;

 

1.41                        “CDACF Version 8 Supplements” means the supplement solutions, as set forth on Attachment 6.

 

1.42                        “CDACF Version 8 System” means the CDACF Version 8 Base Powders, CDACF Version 8 Feeds, CDACF Version 8 Media, CDACF Version 8 Know-How and the CDACF Version 8 Supplements, used either in combination or individually, and the Tropolone Patent;

 

1.43                        “First Amendment” means the first amendment agreement entered into by the Parties as of the First Amendment Effective Date amending the provisions of this License Agreement;

 

1.44                        “First Amendment Effective Date” means the date set forth in the recitals of the First Amendment;

 

1.45                        “Tropolone Patent” means the patent describing the use of tropolone in animal cell culture as set forth on Attachment 9.”

 

1.3                               The following additional Attachments as attached hereto are hereby inserted into the License Agreement:

 

·                  Attachment 6 CDACF Version 8 Supplements, Media and Feeds;

·                  Attachment 7 CDACF Version 8 Know-How;

·                  Attachment 8 CDACF Version 8 Base Powders; and

·                  Attachment 9 Tropolone Patent.

 

2.                                      Attachment 3 to the License Agreement is hereby deleted in its entirety and replaced with the Attachment 3 annexed hereto.

 

3

 

3.                                      In accordance with Clause 7.1 of the License Agreement, Attachment 5 of the License Agreement is hereby deleted in its entirety and replaced with the Attachment 5 annexed hereto, as updated by Lonza.

 

4.                                      A new Article 20 is hereby inserted into the License Agreement as follows:

 

“20.                         CDACF VERSION 8

 

20.1                        Following the First Amendment Effective Date, Lonza shall:

 

(a)                                 provide Kolltan with the details of how to purchase the CDACF Version 8 Base Powders and CDACF Version 8 Supplements to enable Kolltan and, except as permitted by Clause 20.6, only Kolltan, to make CDACF Version 8 Feeds and CDACF Version 8 Media; and

 

(b)                                 supply Kolltan with the CDACF Version 8 Know-How.

 

20.2                        Lonza hereby grants to Kolltan a worldwide, non-exclusive, royalty-free license (with the right to sublicense in accordance with Clause 20.6 below), and a worldwide, non-exclusive, royalty-free license under the Tropolone Patent, to use the CDACF Version 8 System, in accordance with Clauses 20.3, 20.4, 20.5 and 20.6 below. For the avoidance of doubt, no further right or license is granted to Kolltan in respect of the CDACF Version 8 System.

 

20.3                        Kolltan shall use the CDACF Version 8 System only in conjunction with the GS System or the Kolltan Cell Line and shall use the CDACF Version 8 System only for the purposes described in Clause 20.5 below. The CDACF Version 8 System may not be used in conjunction with any other gene expression system or for any other purpose whatsoever.

 

20.4                        Kolltan hereby undertakes not to make any modifications or adaptations to the CDACF Version 8 System during the Term. Kolltan is specifically prohibited from performing any analysis, test, experiment or reverse-engineering on the CDACF Version 8 System. Kolltan hereby agrees that should any analysis or other investigation into the make-up of the CDACF Version 8 System be undertaken in violation hereof, damages shall not be an adequate remedy and Lonza may be entitled to obtain an injunction without proof of special damages to prevent all such acts which contravene the intent of this Clause 20.4, together with all reasonable related costs.

 

4

 

20.5                        Lonza hereby grants to Kolltan, a worldwide, non-exclusive, royalty-free license (with the right to sublicense consistent with Clause 20.6 below) to use the CDACF Version 8 System (i) in all research activities relating to the exploitation of a Product licensed under this License Agreement, but only in relation or connection to an antibody expressed using a Kolltan Cell Line specific to such Product and not in relation to any other Kolltan products that are in the Kolltan pipeline or are otherwise being developed by Kolltan; and (ii) to develop, make, use, sell, offer for sale, market, import or export Product in the Territory. For the avoidance of doubt, no royalties or milestone fees are payable by Kolltan in respect of the license to the CDACF Version 8 System or to the Tropolone Patent granted herein, however Kolltan remains subject to the royalties and milestone payments as set forth in Article 5 in connection with the GS System.

 

20.6                        Subject always to, and in accordance with the terms and conditions of Clause 4.3 of the License Agreement, Kolltan shall be entitled to grant sublicenses to the rights granted in this Article 20 (and transfer the CDACF Version 8 Feeds and CDACF Version 8 Media) to any Sublicensee for the purpose of exploiting Product.

 

20.7                        Notwithstanding anything to the contrary stated herein, Kolltan shall be permitted to transfer any Products made using the CDACF Version 8 Feeds and CDACF Version 8 Media for any purpose, but Kolltan shall not have any right to transfer the CDACF Version 8 Feeds or CDACF Version 8 Media itself.

 

5.                                      The representations and warranties set forth in Article 7 of the License Agreement shall be expanded to cover the CDACF Version 8 System at all times such that (i) in all instances where “GS System” appear in Clause 7.1 (a), (c), and (g) such text is hereby revised to read “GS System and CDACF Version 8 System”; and (ii) Clause 7.1(d), (f), and Clause 7.2(b), shall be amended and restated as follows:

 

“(d) the licenses granted pursuant to this License Agreement and the Materials to be provided pursuant to this License Agreement and the CDACF Version 8 System Know-How to be provided pursuant to Clause 20.1, are the only Intellectual Property and materials that must be licensed or provided from Lonza in order to use the GS System or the CDACF Version 8 System, as applicable, without infringing or misusing any Intellectual Property (including confidential information) of Lonza;

 

(f) the GS System Know-How disclosed pursuant to Clause 2.1.2 and the CDACF Version 8 System Know-How disclosed pursuant to Clause 20.1 will, at the time of disclosure, (i) contain all of the data and information relating to the GS System or the CDACF Version 8 System, as applicable, that is required to obtain and maintain the 

 

5

 

approval by the Food and Drug Administration (FDA) or European Medicines Agency (EMA), or other regulatory authorities as the Parties may agree upon, necessary to sell a biopharmaceutical product for therapeutic, prophylactic or diagnostic use in humans (“Regulatory Approvals”); and (ii) be accurate and complete in all material respects;

 

7.2(b) it shall use the GS System and/or the CDACF Version 8 System only in the expression of Product obtained by inserting gene(s) coding for Product(s) in the GS System or as otherwise permitted by this License Agreement, and to obtain and maintain any Regulatory Approvals or other regulatory approvals in connection with the Products. Kolltan shall not use, cause the use of or permit to be used the GS System or the CDACF Version 8 System for any purpose not directly authorized by this License Agreement, the Development and Manufacturing Services Agreement or any relevant agreement subsequently entered into by the Parties involving the use of the GS System and/or the CDACF Version 8 System.”

 

6.                                      The CDACF Version 8 System shall at all times be subject to Clause 4.6 such that (i) in all instances where “GS System” appears in Clause 4.6, such text is hereby revised to read as “GS System and/or CDACF Version 8 System”; and (ii) the CDACF Version 8 Know-How and CDACF Version 8 System shall be deemed to be a part of the Lonza Intellectual Property and the Lonza Patent Rights with respect to Clause 4.6.

 

7.                                      The CDACF Version 8 System shall at all times be subject to Article 8 such that in all instances where “GS System” appears in Article 8, such text is hereby revised to read as “GS System and/or CDACF Version 8 System”.

 

8.                                      The CDACF Version 8 Know-How shall at all times be subject to Articles 9 and 10 of the License Agreement such that (i) in all instances where “GS System Know-How” and “GS System” appear in Article 9, such text is hereby respectively revised to read as “GS System Know-How and CDACF Version 8 Know-How” and “GS System and CDACF Version 8 System” and (ii) the CDACF Version 8 Know-How and CDACF Version 8 System shall be deemed to be a part of the Lonza Intellectual Property and the Lonza Patent Rights with respect to Article 10.

 

9.                                      The provisions of Articles 13, 16, 18 and 19 and Clauses 17.2, 17.4, 17.5 and 17.6 of the License Agreement shall apply to this Amendment No. 1 as if set out in full and so that references in those provisions to “this License Agreement” shall be construed as references to “this Amendment No. 1”.

 

10.                               The License Agreement is hereby amended in accordance with the provisions of this Amendment No. 1 with effect on the First Amendment Effective Date. Except as herein provided, all other terms and conditions of the License Agreement shall remain in full force and effect.

 

6

 

IN WITNESS WHEREOF the Parties have caused this Amendment No. 1 to be executed by their respective authorized representatives effective as of the day and year first above written.

 

 

	
Signed   for and on behalf of
    	
/s/   Sven Frie
    	
 
    
	
LONZA   SALES AG
    	
Sven   Frie
    	
 
    
	
 
    	
Director,
    	
 
    
	
 
    	
Sales &   Business Dev.
    	
TITLE
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   for and on behalf of
    	
/s/   Nadia Zieger
    	
 
    
	
LONZA   SALES AG
    	
Nadia   Zieger
    	
 
    
	
 
    	
Legal   Counsel
    	
TITLE
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   for and on behalf of
    	
/s/   Gerald McMahon
    	
 
    
	
KOLLTAN   PHARMACEUTICALS, INC.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
President &   CEO
    	
TITLE
    

 

7

 

ATTACHMENT 3.

 

PRODUCTS

 

KTN-0158

 

8

 

ATTACHMENT 5.

 

EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES

 

None.

 

9

 

ATTACHMENT 6.

 

CDACF VERSION 8 SUPPLEMENTS, MEDIA AND FEEDS

 

CDACF Version 8 Media

 

[**]

 

CDACF Version 8 Feeds

 

[**]

 

CDACF Version 8 Supplements

 

[**]

 

10

 

ATTACHMENT 7.

 

CDACF VERSION 8 KNOW-HOW

 

Confidential Materials omitted and filed separately with the Securities and Exchange Commission. A total of one page was omitted. [**]

 

11

 

ATTACHMENT 8.

 

CDACF VERSION 8 BASE POWDERS

 

[**]

 

12

 

ATTACHMENT 9.

 

TROPOLONE PATENT

 

[**]

 

13Exhibit
10.16

 

	
  

  	
  27.84.04.14
  LICENSE AGREEMENT This LICENSE AGREEMENT, dated as of April 29, 2008 (this
  “Agreement”), by and between JOSEPH SCHLESSINGER, PH.D. (the “Licensor”) and
  KOLLTAN PHARMACEUTICALS, INC., a Delaware corporation (the “Licensee”). W I T
  N E S S E T H: WHEREAS, the Licensor has certain scientific information and
  knowhow that may be useful in the Licensee’s business; WHEREAS, upon the
  terms and subject to the conditions provided in this Agreement, the Licensee
  wishes to obtain from the Licensor the right and license to such information
  and know-how; and WHEREAS, contemporaneously with the execution and delivery
  of this Agreement, the Parties (such capitalized term and all other
  capitalized terms used herein having the respective meanings provided in this
  Agreement) are executing and delivering, one to the other, the Consulting
  Agreement and the Restricted Stock Agreement; NOW, THEREFORE, in
  consideration of the premises and of the covenants and conditions herein
  contained and other good and valuable consideration, the receipt and
  sufficiency of which are hereby acknowledged, the Parties agree as follows:
  1. Definitions. The following terms shall have the meaning assigned to them
  below when used in this Agreement: “Affiliate” means, with respect to any
  Person, any other Person that directly, or indirectly through one or more
  intermediaries, controls, is controlled by or is under common control with
  the subject Person. For purposes of this definition, “control” (including,
  with correlative meaning, the terms “controlled by” and “under common control
  with”), as used with respect to any Person, shall mean the possession,
  directly or indirectly, of the power to direct or cause the direction of the
  management and policies of such Person, whether through the ownership of
  voting securities or by contract or otherwise. “Business Day” means a day
  other than a Saturday, a Sunday or a day on which commercial banks in the
  State of New York are authorized or required by law or executive order to
  remain closed. “Claimant” is defined in Section 8.8(b). “Claimant’s Report”
  is defined in Section 8.8(b). 

  

 

	
  

  	
  27.84.04.14 -2-
  “Commencement Date” is defined in Section 8.8(f). “Confidential Information”
  means information generally unavailable to the public that has been created,
  discovered, developed or otherwise become known to the Licensor or in which
  property rights have been assigned or otherwise conveyed to the Licensor,
  which information is included in or relates to the Licensed Technology.
  Confidential Information shall include, but not be limited to, processes,
  formulas, writings, data, know-how, negative know-how, improvements,
  discoveries, developments, designs, inventions, techniques, technical data,
  customer or client lists, financial information, business plans or
  projections and any modifications or enhancements to any of the above and
  shall include information received by the Licensee or its representatives
  prior to and on or after the date of this Agreement. “Consulting Agreement”
  means the Consulting Agreement, dated as of the date hereof, by and between
  the Licensee and the Licensor, as the same may be amended, modified or
  restated from time to time. “Field” shall mean all therapeutic, diagnostic
  and prophylactic indications and uses that may induce, inactivate or
  otherwise modulate an RTK for the purpose of treating a disease or condition
  in humans or animals. “Licensed Know-How” shall mean any and all proprietary
  technical and scientific information, including biological materials and
  other tangible materials, discoveries, inventions, improvements, practices,
  methods, protocols, operating manuals, databases, compounds, chemical
  libraries, formulas, knowledge, know-how, trade secretes, technologies,
  processes, assays, sources, skills, experience, techniques, data and results
  of experimentation and testing (including pharmacological, toxicological and
  pre-clinical and clinical test data and analytical and quality control data,
  patentable or otherwise) which relate to the identification, analysis, characterization,
  optimization, synthesis, derivation, testing, use or production of Products
  in the Field and which exist and are known to Licensor on the date of this
  Agreement or which are developed, determined, conceived, discovered,
  identified or become known to the Licensor after the date of this Agreement
  and (1) rights to which (a) the Licensor has not prior to the date of this
  Agreement assigned, and is not, immediately prior to execution and delivery
  of this Agreement, obligated by agreement or applicable law to assign,
  transfer or license to any Person, other than by the license to the Licensee
  under this Agreement, or (b) in the case of the same that come into existence
  or become known to the Licensor only after the date of this Agreement, the
  Licensor is not obligated by an agreement entered into after the date of this
  Agreement and permitted by Section 2.3 or by applicable law to assign,
  transfer or license to any Person, other than by the license to the Licensee
  under this Agreement and (2) which the Licensor is not obligated by agreement
  or applicable law to keep confidential. “Licensed Technology” means the
  Confidential Information and the Licensed Know-How. “Party” shall mean either
  the Licensee or the Licensor; and “Parties” shall mean both the Licensee and
  the Licensor. 

  

 

	
  

  	
  27.84.04.14 -3-
  “Person” means an individual, corporation, partnership, limited liability
  company, trust, business trust, association, joint stock company, joint
  venture, pool, syndicate, sole proprietorship, unincorporated organization,
  governmental authority or any other form of entity not specifically listed
  herein. “Prevailing Party” is defined in Section 8.8(g). “Product” shall mean
  any form of product, including but not limited to, a service, a diagnostic
  (or the like), a drug and other type of therapeutic for human (or other)
  disease or condition, including, without limitation, gene therapy constructs,
  small molecules, proteins, peptides, peptidomimetics, antisense constructs,
  or any other natural or synthetic molecule. “Respondent” is defined in
  Section 8.8(b). “Respondent’s Answer” is defined in Section 8.8(b).
  “Restricted Stock Agreement” shall mean the Restricted Stock Agreement, dated
  as of the date hereof, by and between the Licensee and Licensor, as the same
  may be amended, modified or restated from time to time. “RTK” means any or
  all of the c-kit receptor, fms-receptor, Flt3- receptor, PDGF-receptor-alpha,
  PDGF-receptor-beta, Flt1-receptor, KDR-receptor, and FLT4-receptor, and
  FGFR1, FGFR2, FGFR3, FGFR4 receptor tyrosine kinases. “Territory” shall mean
  all countries and continents of the world. “Yale” means Yale University. 2.
  License Grant. 2.1. The Licensor hereby grants to the Licensee the perpetual,
  sole and non-exclusive (subject to the rights reserved to the Licensor under
  this Agreement) right and license throughout the Territory, with the right to
  sublicense (subject to the limitations provided in this Agreement), under
  Licensed Technology to research, develop, make, have made, market, sell,
  export and distribute products or services which embody, or the use of which
  employ, Licensed Technology, subject to the rights reserved to the Licensor
  under Section 2.2. 2.2. Notwithstanding the grant of the right and license
  provided in Section 2.1, the Licensor shall be entitled to conduct academic
  research using or employing the Licensed Technology solely in the Licensor’s
  faculty position at an academic institution. Except as provided in this
  Section 2.2, the Licensor shall not make, have made, market, sell, export, license
  or distribute any product or service using the Licensed Technology while the
  license and right granted by this Agreement remains in effect. 

  

 

	
  

  	
  27.84.04.14 -4-
  2.3 The Licensor shall not grant any license or right to any person other
  than the Licensee to use or practice for commercial research, development,
  use, manufacture, distribution, or export the Licensed Technology. After the
  date of this Agreement, the Licensor shall not enter into any agreement which
  would limit his rights to include in the right and license provided by this
  Agreement any matter or thing that, in the absence of such agreement, would
  be Licensed Technology; provided, however, that nothing herein shall affect
  or limit the terms of employment that the Licensor may accept for his
  principal occupation if such terms are customary and usual for the Licensor’s
  particular employer in such occupation. 3. Certain Licensee and Licensor
  Obligations. 3.1. The Licensee shall have the right at any time or from time
  to time to grant sublicenses to the Licensed Technology. Any such sublicense
  shall be in writing. If the Licensee enters into a license agreement with
  Yale relating to certain inventions of the Licensor, then the Licensee may
  sublicense the Licensed Technology in connection with a sublicense by the
  Licensee under such Yale license agreement which is on terms permitted by
  such Yale license agreement. In the absence of such Yale license agreement or
  in case the Licensee is sublicensing Licensed Technology other than in
  connection with a sublicense under such Yale license agreement, then the
  terms of such sublicense of the Licensed Technology shall be as determined by
  the Licensee. The Licensee shall furnish to the Licensor a copy of any
  sublicense of the Licensed Technology within 20 days after the Licensee
  enters into such sublicense, from which the Licensee may redact confidential
  information if the Licensor shall at the time not be bound by a written
  confidentiality agreement with the Licensee. 3.2 The Licensor shall from time
  to time as requested by the Licensee provide such detailed written
  information about the content of the Licensed Technology as the Licensor may
  possess and reduce to writing such information as shall not be in writing
  (and in any such case not subject to an obligation of confidentiality) so
  that the Licensee may use and enjoy the Licensed Technology. 4. Patents and
  Copyrights. 4.1. The Licensee acknowledges that the Licensor has not prepared
  or filed any patent applications relating to the Licensed Technology and that
  the Licensor makes no representation or warranty as to whether the Licensed
  Technology is patentable or as to the usefulness, functionality, operation,
  application, reliability or merchantability or fitness for any particular
  purpose or use of the Licensed Technology. Notwithstanding the foregoing, the
  Licensor represents and warrants to the Licensee that Licensor has not sold
  or licensed the Licensed Technology to any Person other than the Licensee.
  4.2. The Licensee acknowledges and agrees that the Licensor is subject to the
  invention and patent policies of Yale, that the Licensor believes that the
  Licensed Technology includes no patentable discoveries or inventions to which
  Yale has any rights under Yale’s invention and patent policies. The Licensee 

  

 

	
  

  	
  27.84.04.14 -5-
  acknowledges that if it determines that the Licensed Technology includes
  patentable discoveries or inventions then the Licensor may be obligated to
  assign all of his rights thereto to Yale. If the Licensed Technology includes
  any such discovery or invention that the Licensor is so required to assign to
  Yale, then such discovery or invention shall not form part of the Licensed
  Technology and the Licensee shall have no right or license thereto under this
  Agreement. 4.3. Subject to Sections 4.1 and 4.2, the Licensee shall from time
  to time promptly notify the Licensor in reasonable detail of the Licensee’s
  decision to prepare, file, prosecute, and maintain any patent application for
  the Licensed Technology. Any patent application that claims any of the
  Licensed Technology shall be made in the name of the Licensor. If the
  Licensee determines to file a particular patent application after the
  Licensor and the Licensee determine that the subject matter of such proposed
  application is not something that the Licensor is required to assign to Yale,
  and thereafter the Licensee does not proceed to file such patent application,
  the Licensee shall notify the Licensor promptly so that the Licensor may, if
  he determines in his sole discretion, proceed to protect his rights in the
  Licensed Technology by filing such patent application at the Licensor’s sole
  cost and expense. In the case of any patent application that the Licensee
  files that claims any of the Licensed Technology, if thereafter the Licensee
  does not proceed to prosecute, maintain or defend such patent application or
  any issued patent, as the case may be, then the Licensee shall notify the
  Licensor promptly so that the Licensor may, if he determines in his sole
  discretion, proceed to protect his rights in the Licensed Technology by
  prosecuting, maintaining or defending such patent application or patent. If
  the Licensor determines not to prosecute, maintain or defend such patent
  application or patent, then the Licensor shall so notify the Licensee and
  thereafter the claims of such patent application or patent shall cease to be
  Licensed Technology. In case of any challenge to any patent application or
  patent that may be included in the Licensed Technology the Licensee will,
  promptly after it receives notice of such challenge, notify the Licensor of
  such challenge and advise the Licensor whether the Licensee elects to defend
  such challenge. If the Licensee elects not to defend such challenge, then the
  Licensor may defend such challenge. 4.4. Notwithstanding any failure of the
  Licensee to comply with Sections 4.2 and 4.3 or any decision by the Licensee
  to refrain from filing, prosecuting, maintaining or defending any patent or
  patent application relating to the Licensed Technology, the Licensor shall
  have the right, in his sole discretion and at his sole cost and expense, to
  file, prosecute and maintain one or more such patent applications and to
  maintain and defend any patent that may be issued relating to the Licensed
  Technology. The Licensor shall have no obligation to take any such action.
  Any such application or any issued patent from any such patent application
  shall be part of the Licensed Technology without further act on the part of
  the Licensor or the Licensee. The Licensor and the Licensee shall from time
  to time execute appropriate instruments confirming that such patent
  application and patents are included in the Licensed Technology. 

  

 

	
  

  	
  27.84.04.14 -6-
  5. Compensation in Lieu of Royalties. The right and license granted by this
  Agreement shall not be subject to payment of royalties. In lieu of royalties,
  the Licensee is issuing shares of Common Stock, $.001 par value, to the
  Licensor pursuant to the Restricted Stock Agreement, which shares also
  constitute consideration payable to the Licensor under the Consulting
  Agreement. 6. Certain Obligations and Limitations; Confidentiality. 6.1. (a)
  The Licensee shall maintain, and shall cause its Affiliates, officers,
  directors, employees, agents and representatives to maintain, the
  confidentiality of and not disclose to any Person other than its employees,
  consultants, attorneys, and certified public accountants any of the
  Confidential Information; provided, however, that the Licensee may disclose
  the Confidential Information to its permitted sublicensees who agree in
  writing with the Licensee, expressly for the benefit of the Licensor as a
  third party beneficiary, prior to receipt of any Confidential Information, to
  maintain the Confidentiality of the Confidential Information on the same
  terms as required of the Licensee under this Agreement, except that, such
  agreement of a sublicensee shall not permit such sublicensee to disclose
  Confidential Information to any of its sublicensees. The Licensee shall not
  disclose any of the Confidential Information to any of its employees or
  consultants unless prior to such disclosure each such employee or consultant
  shall have entered into a written agreement with the Licensee, which
  agreement shall state that it is expressly for the benefit of the Licensor as
  a third party beneficiary, to maintain the confidentiality of the
  Confidential Information to the same extent as the Licensee is obligated to
  do under this Agreement; provided, however, that no such employee or
  consultant shall have the right to disclose Confidential Information to its
  own employees or consultants or any sublicensees. The Licensee shall also
  take all precautions as it normally takes with its own confidential
  information to prevent any improper disclosure of the Confidential
  Information. (b) Notwithstanding Section 6.1(a), a particular item of
  Confidential Information shall not be subject to the restrictions and
  prohibitions set forth in Section 6.1(a) to the extent that such item of
  Confidential Information: (1) is available to the public in public literature
  or otherwise, or after disclosure by the Licensor to the Licensee becomes
  public knowledge through no fault of the Licensee or any of its Affiliates,
  officers, directors, employees, agents or representatives or any Person who
  receives Confidential Information from the Licensor or the Licensee; (2) was
  known to the Licensee from a source other than the Licensor or Yale prior to
  the receipt of such Confidential Information by the Licensee, whether the
  Licensee received such Confidential Information before or after the date of
  this Agreement, and was not learned under circumstance in which the Licensee
  had a duty of confidentiality to any Person with respect thereto; 

  

 

	
  

  	
  27.84.04.14 -7-
  (3) is obtained by the Licensee from a third party other than Yale, which
  third party is not subject to a requirement of confidentiality with respect
  to such Confidential Information; or (4) is required to be disclosed pursuant
  to any order of a court having jurisdiction or any lawful action or
  applicable requirement of a governmental or regulatory agency so long as (i)
  a reasonable time prior to such disclosure the Licensee shall have notified
  the Licensor of the order, demand or other compulsory action requiring such
  disclosure and (ii) the Licensee shall have used commercially reasonable
  efforts to seek a protective order for such Confidential Information, if
  necessary acting in the name of the Licensor for such purpose (as hereby
  authorized). 6.2. Each sublicense of the Licensed Technology that is not part
  of a sublicense by the Licensee of rights under the license agreement, if
  any, of the Licensee with Yale shall include such terms and provisions as are
  necessary or appropriate to protect the Licensor’s rights in the Licensed
  Technology, including, without limitation, its rights under this Agreement.
  7. Indemnification. 7.1. The Licensee shall indemnify and hold the Licensor,
  his heirs, executors, administrators, personal representatives and assigns
  harmless from and against any claim, action, suit, proceeding, loss,
  liability, damage or expense (including without limitation reasonable
  attorneys’ fees) directly or indirectly arising from or related to (1) the
  development, use, marketing, sale, sublicense, or distribution of the
  Licensed Technology or any product that uses or embodies any of the Licensed
  Technology or use of any such product by any Person or (2) infringement,
  alleged infringement, misuse, alleged misuse, misappropriation, or alleged
  misappropriation, of any such product or activity on the patent or other
  rights of any Person. 7.2. Any Person entitled to indemnification hereunder
  shall (i) give prompt notice to the Licensee of any claim with respect to
  which it seeks indemnification, (ii) permit the Licensee to assume the
  defense of such claim with counsel reasonably satisfactory to the indemnified
  Person and (iii) by notice to the Licensee, require the Licensee to assume
  the defense of such claim with counsel reasonably satisfactory to the
  indemnified Person; provided, however, that any Person entitled to
  indemnification hereunder shall have the right to employ separate counsel and
  to participate in the defense of such claim, but the fees and expenses of
  such counsel shall be at the expense of such Person unless (a) the Licensee
  has agreed to pay such fees or expenses, (b) the Licensee shall have failed
  to assume the defense of such claim and employ counsel reasonably
  satisfactory to such indemnified Person in a timely manner or (c) in the
  reasonable judgment of any such indemnified Person, based upon written advice
  of its counsel (d) a conflict of interest exists between such Person and the
  Licensee with respect to such claims that makes it inappropriate for the
  Licensee’s legal counsel to represent both such indemnified Person and the
  Licensee or (e) there are defenses available to such indemnified Person that
  are not available to the Licensee in connection with such 

  

 

	
  

  	
  27.84.04.14 -8-
  claim (in either of which cases, if such indemnified Person notifies the
  Licensee in writing that such Person elects to employ separate counsel at the
  expense of the Licensee, the Licensee shall not have the right to assume the
  defense of such claim on behalf of such indemnified Person); and provided,
  however, further, that the failure of any indemnified Person to give notice
  as provided herein shall not relieve the Licensee of its obligations
  hereunder, except to the extent that such failure to give notice shall
  materially adversely affect the Licensee in the defense of any such claim or
  litigation. It is understood that the Licensee shall not, in connection with
  any proceeding in the same jurisdiction, be liable for fees or expenses of
  more than one separate firm of attorneys at any time for all such indemnified
  Persons. The Licensee will not, except with the consent of each indemnified
  Person, consent to entry of any judgment or enter into any settlement that
  does not include as an unconditional term thereof the giving by the claimant
  or plaintiff to such indemnified Person of a release from all liability in
  respect of such claim or litigation. 7.3. The rights to indemnification
  provided in Sections 7.1 and 7.2 shall be in addition to, and not in
  limitation of, the indemnified Persons’ other rights at law or in equity.
  7.4. The Licensee shall obtain and maintain in force product liability
  insurance coverage before proceeding with clinical trials, marketing or sale
  of any product, which insurance shall be in amounts which are normal and
  customary and can be obtained at commercially acceptable levels, appropriate
  to the risk as determined by reference to reliable standards in the
  commercial biopharmaceutical research, development and marketing industry,
  such insurance specifically to name the Licensor as an additional insured and
  loss payee and not to be cancelable except on at least 30 days’ written
  notice from the insurer to the Licensor. 8. Miscellaneous. 8.1. Force
  Majeure. If the performance of any provision of this Agreement by either
  Party, or of any obligation under this Agreement, is prevented, restricted,
  interfered with or delayed by reason of any cause beyond the reasonable
  control of the Party liable to perform, unless conclusive evidence to the
  contrary is provided, the Party so affected shall, upon giving notice to the
  other Party, be excused from such performance to the extent of such
  prevention, restriction, interference or delay, provided that the affected
  Party shall use its reasonable best efforts to avoid or remove such cause of
  non-performance and shall continue performance with the utmost dispatch whenever
  such causes are removed. When such circumstances arise, the Parties shall
  discuss what, if any, modification of the terms of this Agreement may be
  required in order to arrive at any equitable solution. 8.2. Notices. Any
  notice required or permitted to be given pursuant to this Agreement shall be
  made by personal delivery, by courier service or, if by mail, by certified
  mail, return receipt requested, by one Party to the other Party at the
  addresses noted below. 

  

 

	
  

  	
  27.84.04.14 -9-
  In the case of the Licensor, notice shall be sent to: Joseph Schlessinger,
  Ph.D. 50 Rock Hill Road Woodbridge, Connecticut 06525 In the case of the
  Licensee, notice shall be sent to: Kolltan Pharmaceuticals, Inc. 50 Rock Hill
  Road Woodbridge, Connecticut 06525 Attention: Chairman of the Board or in
  either case such other address as a Party may provide by ten days’ notice to
  the other Party. 8.3. Amendment, Modification, Waiver, Etc. This Agreement
  shall not be changed, modified, or amended, or any obligation or compliance
  by any Party waived, except by a writing signed by the Party to be charged,
  and this Agreement may not be discharged except by performance in accordance
  with its terms or by a writing signed by the Party to be charged. 8.4. Entire
  Agreement. This Agreement, together with the other Transaction Documents,
  sets forth the entire agreement and understanding between the Parties as to
  the subject matter hereof and merges and supersedes all prior discussions,
  agreements and understandings of every kind and nature between them, and no
  Party hereto shall be bound by any condition, definition, warranty or
  representation other than as expressly provided for in this Agreement or as
  may be on a date subsequent to the date hereof duly set forth in writing
  signed by the Party hereto which is to be bound thereby. 8.5. Invalidity or
  Unenforceability. If any provision of this Agreement or the application of
  any provision hereof to any Person or circumstance is held invalid, the
  remainder of this Agreement and the application of such provision to other
  Persons or circumstances shall not be affected unless the provision held
  invalid shall substantially impair the benefits of the remaining portions of
  this Agreement. 8.6. Successors and Assigns. This Agreement shall be binding
  upon and inure to the benefit of the Parties hereto and their respective
  successors and permitted assigns. This Agreement may not be assigned by any
  Party hereto except with the prior written consent of the other Party hereto,
  except that the Licensor may assign its rights hereunder. 8.7. Governing Law.
  This Agreement shall be governed by, construed and enforced in accordance
  with, the laws of the State of New York applicable to contracts made and to
  be performed wholly within said State without giving effect to conflict of
  laws principles. 

  

 

	
  

  	
  27.84.04.14
  -10- 8.8. Dispute Resolution. (a) If a dispute arises between the Parties
  regarding any matter under this Agreement, as an alternative to unnecessary,
  timeconsuming and expensive litigation, the Licensor and the Licensee hereby
  agree that, if in connection with any such dispute and prior to the
  commencement of any action in a court of competent jurisdiction by the
  Licensor or Licensee, either one shall initiate the following informal
  dispute resolution procedures with respect to such dispute, then the other
  Party shall follow such procedures prior to seeking any judicial action or
  remedy; provided, however, that the Licensor shall not be bound to follow any
  such procedures of this Section 8.8 if the dispute relates solely to the
  Licensee’s failure to make any payment under this Agreement, the Consulting
  Agreement or the Restricted Stock Agreement. (b) If either Party believes in
  good faith that a dispute exists between them involving a claim for money
  damages, the Party (the “Claimant”) asserting such a claim shall submit to
  the other Party a detailed written report setting forth in reasonable detail
  the grounds for such claim (such report being herein called the “Claimant’s
  Report”). If the Party receiving the Claimant’s Report (the “Respondent”)
  disagrees in any respect with the Claimant’s Report, the Respondent shall
  prepare within ten Business Days of its receipt thereof its written response
  thereto, setting forth in reasonable detail the grounds for which such claim
  has been rejected in whole or in part (such response being herein called the
  “Respondent’s Answer”). (c) If the Respondent elects to deliver the
  Respondent’s Answer to the Claimant, the Respondent shall at the same time
  file a request with JAMS that JAMS assign an arbitrator with expertise in
  corporate finance and intellectual property licensing, and with no prior
  relationship to either the Claimant or the Respondent, to seek to resolve the
  dispute or disputes set forth in the Claimant’s Report and the Respondent’s
  Answer in accordance with the JAMS Comprehensive Arbitration Rules and
  Procedures and the terms of this Agreement. The Claimant agrees to cooperate
  fully in the submission of this request to JAMS. The Parties will use their
  commercially reasonable best efforts to have JAMS assign the arbitrator
  within 15 days of its receipt of the request for assignment. (d) The
  determination by JAMS of all such matters of disagreement shall be made in
  writing and shall be final, binding and conclusive upon both Parties. (e) If
  for whatever reason JAMS has not resolved the dispute within 60 days after
  the Commencement Date, either of the Parties may withdraw from the
  proceedings, without prejudice, and assert whatever claims such Party wishes
  to make in an action at law or in equity in the state or federal courts if
  bringing an action in either, or both, of such jurisdictions is appropriate.
  (f) Notwithstanding any provisions contained in this Agreement, the
  Consulting Agreement, or the Restricted Stock Agreement to the contrary, the
  Parties agree that, if the informal dispute resolution procedures of this
  Section 8.8 have been initiated as provided in Section 8.8(a), each of them
  shall forbear from 

  

 

	
  

  	
  27.84.04.14
  -11- enforcing whatever rights it may have under this Agreement, the
  Consulting Agreement, and the Restricted Stock Agreement for a period of 60
  days following either Party’s giving of a notice of a breach or violation of
  this Agreement, the Consulting Agreement, or the Restricted Stock Agreement
  (such date being herein referred to as the “Commencement Date”). During this
  period of sixty (60) days the Parties shall use their commercially reasonable
  best efforts to resolve any disputes through the forgoing dispute resolution
  procedure, and each Party waives any statute of limitations that otherwise
  would expire during, or within 30 days after, such 60-day period. (g) In the
  event of a dispute resolution proceeding as contemplated in this Section 8.8,
  if a final determination of JAMS is made in favor of one Party (the
  “Prevailing Party”) requiring the other Party to pay money damages or to take
  or refrain from taking any material action, then such other Party shall
  promptly pay to the Prevailing Party the reasonable fees and expenses of the
  Prevailing Party’s legal counsel incurred in connection with such dispute
  resolution proceeding. (h) In no event shall the Licensor be entitled to
  terminate or rescind this Agreement by reason of any breach or violation of
  this Agreement by the Licensee and no such remedy may be awarded in
  arbitration or any action or proceeding at law or in equity. 8.9. Venue;
  Forum Non Conveniens. Without in any way limiting the requirements of Section
  8.8 hereof, each Party hereby irrevocably (i) agrees that any suit, action or
  other legal proceeding arising out of or relating to this Agreement may be
  brought in a court of record in the Borough of Manhattan in The City of New
  York, the State of New York, or in the courts of the United States of America
  sitting in such Borough, City and State, (ii) consents to the jurisdiction of
  each such court in any such suit, action or proceeding, (iii) waives any
  objection which it may have to the laying of venue of any such suit, action
  or proceeding in any of such courts and any claim that any such suit, action
  or proceeding has been brought in an inconvenient forum and (iv) waives any
  and all right to trial by jury in any legal proceeding arising out of or
  relating to this Agreement or the transactions contemplated hereby or
  thereby. 8.10. Headings, Captions, Etc. The headings, captions and footers
  appearing in this Agreement are inserted only as a matter of convenience and
  for reference and in no way define, limit or describe the scope and intent of
  this Agreement or any of the provisions hereof. 8.11. Further Assurances.
  Each of the Parties hereto will, at any time and from time to time after the
  date hereof, upon request (and at the cost) of the other Party, execute,
  acknowledge and deliver all further acts, assignments, transfers, conveyances
  and powers of attorney that may be required to carry out the provisions of
  this Agreement. [signature page follows] 

  

 

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their respective officers thereunto duly authorized as of the day and year first above written.

 

 

	
 
    	
/s/ Joseph Schlessinger, Ph.D.
    
	
 
    	
Joseph Schlessinger, Ph.D.
    
	
 
    	
 
    
	
 
    	
Date: April 29, 2008
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
KOLLTAN PHARMACEUTICALS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Arthur G. Altschul, Jr.
    
	
 
    	
 
    	
Arthur G. Altschul, Jr.
    
	
 
    	
 
    	
Chairman of the Board
    
	
 
    	
 
    
	
 
    	
Date: April 29, 2008
    

 

13

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