Document:

exv10w5

 

      Confidential
Materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote omissions.

In Vitro Virus/PROfusion Mutual Patent License Agreement, December 10, 2004

Exhibit 10.5

MUTUAL PATENT LICENSE AGREEMENT

THIS MUTUAL PATENT LICENSE AGREEMENT, made and entered into as of the day of December 10, 2004
(“Effective Date”) by and between

MITSUBISHI CHEMICAL CORPORATION, a corporation of Japan, with its principal place of business at
33-8, Shiba 5-chome, Minato-ku, Tokyo, Japan (“MCC”)
and

COMPOUND THERAPEUTICS, INC., a corporation of U.S.A., with its principal place of business at 100
Beaver Street, Waltham MA 02453, U.S.A.(“COMPOUND”)

(MCC and COMPOUND are collectively referred to herein as the “Parties” and individually as a
“Party”)

WITNESSETH:

WHEREAS, MCC and COMPOUND own and control certain patent applications and patents worldwide in the
field of In vitro virus/PROfusion technology, and are respectively interested in receiving licenses
of such patents and patent applications of the other Party for the benefit of their developmental
work and business operation; and

WHEREAS, MCC and COMPOUND are willing and able to grant each other such licenses under the terms
and conditions as set forth herein;

NOW, THEREFORE, Parties hereto have agreed and do hereby agree as follows:

ARTICLE I

DEFINITIONS

The following terms as used in this Agreement shall, unless the context clearly indicates the
contrary, have the following meanings:

	1.1	 	“Affiliates” shall mean, in relation to a Party, any other company or entity, which directly
or indirectly, controls, is controlled by, or is under common control with such Party. For
the purpose of this definition, “control” means the possession of the power to direct or cause
the direction of the management or policies of such Party, whether through the ownership of
voting securities, by contract or otherwise.
	 
	1.2	 	“Antibody Mimetics” shall mean and be limited to [**].
	 
	1.3	 	“Therapeutic Products” shall mean any Products intended for a therapeutic use.
	 
	1.4	 	“MCC Patents” shall mean patent applications and patents owned or controlled (in the sense of
having a right to license or sublicense to others) by MCC in the field of In vitro
virus/PROfusion technology, as listed in Annex A attached hereto and 

 - 1 - 

 

	 	 	made a part hereof,
including any divisions, reissues, continuations, continuations-in-part, extensions and
reexaminations thereof and any patents issued or granted on such patent applications, and
foreign counterparts thereof. It is confirmed that MCC Patents that claim In vitro
virus/PROfusion technology and additional technology shall be considered and interpreted as
MCC Patents only with respect to that portion of the claimed technology that is In vitro
virus/PROfusion technology, but shall not be considered or interpreted as MCC Patents with
respect to that portion of the claimed technology that is not In vitro virus/PROfusion
technology.

	1.5	 	“In vitro virus/PROfusion technology” shall mean the technology to make and use a molecule
comprising a [**].
	 
	1.6	 	“Patents” shall mean MCC Patents or COMPOUND Patents, as the case may be.
	 
	1.7	 	“COMPOUND Patents” shall mean patent applications and patents owned or controlled (in the
sense of having a right to license or sublicense to others) by COMPOUND in the field of In
vitro virus/PROfusion technology, including those licensed to COMPOUND from The General
Hospital Corporation with the right to sublicense, as listed in Annex B attached hereto and
made a part hereof, including any divisions, reissues, continuations, continuations-in-part,
extensions and reexaminations thereof and any patents issued or granted on such patent
applications, and foreign counterparts thereof. It is confirmed that COMPOUND Patents that
claim In vitro virus/PROfusion technology and additional technology shall be considered and
interpreted as COMPOUND Patents only with respect to that portion of the claimed technology
that is In vitro virus/PROfusion technology, but shall not be considered or interpreted as
COMPOUND Patents with respect to that portion of the claimed technology that is not In vitro
virus/PROfusion technology.
	 
	1.8	 	“Products” shall mean compositions-of-matter such as proteins/peptides and nucleic acids that
derive directly from the use of methods or compositions claimed by Patents, but shall not
include any products that were not generated in whole or in part using In vitro
virus/PROfusion technology, such as chemical compounds or agents that bind to the primary
products.
	 
	1.9	 	“Services” shall mean any and all services conducted by a Party where such provision of
service would infringe a Patent but for the licenses granted herein-
	 
	1.10	 	“Japan-based” shall mean a company which has their primary headquarters or the headquarters of
their ultimate parent company in Japan.
	 
	1.11	 	“Non-Japan-based” shall mean a company which has their primary headquarters or the headquarters
of their ultimate parent company outside of Japan

 - 2 - 

 

ARTICLE II

LICENSE

	2.1	 	Subject to the terms and conditions of this Agreement, MCC agrees to grant and hereby
grants to COMPOUND;

	 	(a)	 	A non-exclusive, royalty-free and world-wide license to practice the MCC
Patents for identifying, developing, producing, and/or commercializing Antibody
Mimetics and rendering Services for Antibody Mimetics, with the right to sublicense to
others worldwide;
	 
	 	(b)	 	A non-exclusive and royalty-free license outside of Japan to practice the MCC
Patents for identifying, developing, producing, and/or commercializing Therapeutic
Products and rendering Services for Therapeutic Products, with the right to sublicense
outside of Japan to Non-Japan-based third parties, including companies and academia,
to practice the MCC Patents there, it being understood that any Therapeutic Products
developed by COMPOUND or such Non-Japan-based sublicensees using the MCC Patents can
be sold and distributed throughout the world without any financial obligations to MCC,
unless they fall within MCC patent rights not licensed hereunder; and
	 
	 	(c)	 	A non-exclusive and royalty-free license outside of Japan to practice the MCC
Patents for identifying, developing, producing, and/or commercializing any Products
other than Antibody Mimetics and Therapeutic Products and rendering Services for such
other Products, with the right to sublicense outside of Japan to Non-Japan-based third
parties, including companies and academia, to practice the MCC Patents there, it being
understood that such other Products developed by COMPOUND or such Non-Japan-based
sublicensees using the MCC Patents can be sold and distributed throughout the world
without any financial obligations to MCC, unless they fall within MCC patent rights
not licensed hereunder.

	2.2	 	Subject to the terms and conditions of this Agreement, COMPOUND agrees to grant and hereby
grants to MCC a non-exclusive and royalty-free license in Japan to practice the COMPOUND
Patents for identifying, developing, producing, and/or commercializing and rendering Services
for any Products for all fields except Antibody Mimetics, with the right to sublicense within
Japan to Japan-based third parties, including companies and academia in Japan the right to
practice the COMPOUND Patents there for all fields except Antibody Mimetics, it being
understood that any Products developed by MCC or such Japan-based sublicensees using the
COMPOUND Patents can be sold and distributed throughout the world without any financial
obligations to COMPOUND, unless they fall within COMPOUND patent rights not licensed hereunder.
	 
	2.3	 	The licenses granted to each Party pursuant to the preceding Paragraphs 2.1 and 2.2 shall
extend to Affiliates of MCC and COMPOUND respectively under the same terms and conditions of
this Agreement.

 - 3 - 

 

	2.4	 	MCC and COMPOUND agree not to assert any claim or right against the other Party or their
Affiliates or sublicensees for any acts of infringement prior to the Effective Date of MCC
Patents or COMPOUND Patents licensed hereunder. The sublicenses granted by COMPOUND under the
MCC Patents and by MCC under the COMPOUND Patents prior to the Effective Date are set forth on
a Schedule A attached hereto.
	 
	2.5	 	COMPOUND will use reasonable efforts to obtain written acknowledgement of the sublicense
granted hereunder from The General Hospital Corporation, owner of certain of the COMPOUND
Patents. If the agreement between COMPOUND and The General Hospital Corporation is terminated
or found to be void such that the sub-license of certain of the COMPOUND Patents to MCC
hereunder is also terminated this agreement shall terminate, unless agreed otherwise in
writing by the two parties.

ARTICLE III

INTERFERENCE

MCC and COMPOUND acknowledge that certain COMPOUND Patents and certain MCC Patents may
potentially be involved in an interference in the United States Patent and Trademark Office
(USPTO), and agree to attempt to avoid the time and expense incident to an interference
proceeding in an appropriate and mutually agreeable manner according to the terms of the
Interference Settlement Agreement attached hereto as Exhibit A. MCC and COMPOUND also agree that
each Party with surviving patent(s) or application(s) awards the other Party a license to the
surviving patent(s) or application(s) under the terms and conditions of this Agreement. The
terms of the Interference Settlement Agreement shall be subject to the rights of third party
licensors of any of the patents or patents applications hereunder. MCC and COMPOUND each hereby
represent and warrant that such rights of third party licensors are only those which are
disclosed herein. For COMPOUND, the terms of the Interference Settlement Agreement shall be
subject to the rights of The General Hospital Corporation. In the event that the terms of the
Settlement Agreement should not be performed or implemented in material respect due to such
rights of such third party(ies), this Agreement shall become null and void.

ARTICLE IV

TERM

	4.1	 	This Agreement shall become effective upon the Effective Date, and unless otherwise earlier
terminated hereunder, shall remain in full force until the expiry of all MCC Patents and
COMPOUND Patents.
	 
	4.2	 	If either Party contests in a court proceeding the validity, within the meaning of
the patent statutes of the relevant country, of the Patents of the other Party, then the

 - 4 - 

 

	 	 	other Party has a right to terminate this Agreement forthwith, unless settlement is made in a
timely manner.

	4.3	 	If either Party of this Agreement fails to perform or observe any of its material
obligations hereunder, the other Party may terminate this Agreement upon sixty (60) days
written notice to the defaulting Party, provided, however, that if the defaulting Party has
made substantial efforts to correct said default during said sixty (60) day period, the
notice shall be of no further force or effect.
	 
	4.4	 	Neither Party shall be liable for any delay in or failure of performance of its obligations
hereunder, if any, to the extent caused by any contingencies beyond its control, including,
without limitation, war, strikes, lockouts, fires, accidents, floods, droughts, natural
calamities, demands or requirements of the government of Japan or the United States or
restraining orders or decrees of any court. In this case, the performance of obligations
affected thereby shall be suspended as long as said contingency exists, however, all
obligations which shall not have been affected by said contingency shall remain in full
force.
	 
	4.5	 	From and after the termination of this Agreement, either Party shall have no further
licenses and rights granted. Without limiting the generality of the foregoing, Paragraphs
2.4 and Articles V, VI, VII, VIII, IX, X, XI , XII, and XIII shall survive termination or
expiration of this Agreement.

ARTICLE V

ASSIGNMENT

This Agreement shall not be transferable or assignable by MCC or COMPOUND without prior written
consent of the other Party, except to a third party that purchases substantially the entire
business and assets of the subject matter of this Agreement, subject, however, to the conditions
precedent that such third party shall have expressly agreed to succeed and assume all of the
rights and obligations and liabilities of the assigning Party under this Agreement. This
Agreement will be binding upon and inure to the benefit of the Parties and their respective
heirs, successors and assigns.

 - 5 - 

 

ARTICLE VI

NOTICES

All notices and deliveries to be given hereunder to either Party shall be deemed to have been
sufficiently or duly given for all purposes hereunder if and when sent by registered mail, telex
or telefacsimile with confirmation by air mail, addressed to the receiving Party at its address
as indicated above or such other address as hereafter shall be furnished by written notice to the
sending Party.

ARTICLE VII

DISCLAIMER

	7.1	 	Nothing contained in this Agreement shall be deemed or construed as giving or granting to
either Party any right or license in any trademark, patent or other intellectual property of
the other Party except as is specifically provided for in this Agreement. Neither Party
shall be deemed as a legal representative or agent of the other Party nor shall either Party
have the right or authority to assume or make any obligation, guarantee, warranty or
representation of any kind, express or implied, in the name of or binding upon the other
Party.
	 
	7.2	 	MCC OR COMPOUND MAKES NO REPRESENTATIONS AND EXTENDS NO WARRANTY OF ANY KIND, EITHER
EXPRESSED OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE, UNLESS OTHERWISE SPECIFICALLY PROVIDED FOR IN THIS AGREEMENT, INCLUDING THAT THE
PRACTICE OF THE LICENSED PATENTS DOES NOT INFRINGE ANY PATENT OR OTHER INTELLECTUAL PROPERTY
RIGHT OF A THIRD PARTY. IN NO EVENT SHALL MCC OR COMPOUND BE LIABLE FOR ANY PUNITIVE,
EXEMPLARY, MULTIPLE, SPECIAL, INCIDENTAL OR CONSEQUENTIAL LOSSES OR OTHER INDIRECT DAMAGES
SUFFERED OR INCURRED BY MCC OR COMPOUND AS THE RESULT OF OR IN CONNECTION WITH THIS
AGREEMENT.

ARTICLE VIII

ENTIRE AGREEMENT

This Agreement embodies the entire understanding between the Parties hereto with respect to
the subject matter of this Agreement and all prior representations, warranties, guarantees or
agreements relating hereto are hereby terminated and shall be of no force or effect whatsoever.

 - 6 - 

 

ARTICLE IX

AMENDMENTS

	9.1	 	All amendments or alterations in or to this Agreement shall be made in writing and shall be
of no force or effect unless signed by the duly authorized officers or representatives of each
Party. No delay or omission by a Party exercising any right under the Agreement shall operate
as a waiver of that or any other right. A waiver or consent given by a Party on any one
occasion shall be effective only in that instance and shall not be construed as a waiver of
any right on any other occasion.
	 
	9.2	 	If any provision of this Agreement shall be declared void by any court or administrative body
of competent jurisdiction, the validity of any other provision shall not be affected thereby.

ARTICLE X

GOVERNING LAWS

This Agreement shall be interpreted, construed and governed in accordance with the laws of the
State of New York, USA, without giving effect to its conflict of laws principles.

ARTICLE XI

ARBITRATION

If any dispute, controversy or difference arises between the Parties hereto in connection
with or out of this Agreement, the Parties hereto shall first attempt to settle it amicably
through mutual discussion. Should the Parties hereto fail to make said amicable settlement,
said dispute, controversy or difference shall be submitted to arbitration to take place in
Boston, Massachusetts, if initiated by MCC, or Tokyo, Japan, if initiated by COMPOUND,
pursuant to the then existing rules of American Arbitration Association. The award rendered
in said arbitration shall be final, conclusive and binding upon each Party of this
Agreement.

ARTICLE XII

PUBLIC ANNOUNCEMENTS AND CONFIDENTIALITY

Neither Party shall issue any public announcement or press release with respect to this
Agreement without the prior written consent of the other Party. No such consent shall be necessary
to the extent that disclosure is required by applicable law or the rules or regulations of any
stock exchange.

Each Party agrees to hold the terms and content of this Agreement in strict confidence and shall
not disclose any portion thereof to any Third Party without prior written consent
of the other Party. Each Party may disclose the terms to those of its own and its Affiliates’
employees, agents, and independent contractors, as well as potential or existing In vitro

 - 7 - 

 

virus/PROfusion technology related licensees, who have a need to know such information and who have
executed a confidentiality agreement which has a scope that encompasses the terms of this
Agreement. MCC may, if required by pre-existing contractual obligations, disclose the terms of
this Agreement to appropriate employees of Keio University, subject to a confidentiality agreement.
Compound may, if required by pre-existing contractual obligations, disclose the terms of this
Agreement to appropriate employees of the Massachusetts General Hospital, subject to a
confidentiality agreement.

The standard of care required in protecting the confidentiality of these terms shall be the same
standard of care that each Party uses to protect its own confidential information of a similar
nature, but in no event shall either Party use less than a reasonable standard of care. If either
Party is required by law to disclose any part of the terms, it shall undertake reasonable efforts
to promptly notify the other Party and shall use reasonable efforts to minimize the extent of the
disclosure and to obtain confidential treatment of any information required to be disclosed, if
available.

 - 8 - 

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly
authorized officers effective as of the date first above written.

	 	 	 	 	 	 	 
	 	 	MITSUBISHI CHEMICAL CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Eiji Tanaka	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Eiji Tanaka	 	 
	 
	 	 	 	 	 	 
	 

	 	Title
	 	Executive Officer, General Manager,	 	 
	 

	 	 	 	MCC-Group Science & Technology Office	 	 
	 
	 	 	 	 	 	 
	 	 	COMPOUND THERAPEUTICS, INC	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ John Edwards	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	John Edwards	 	 
	 
	 	 	 	 	 	 
	 

	 	Title
	 	Senior Vice President	 	 
	 

	 	 	 	Commercial and Product Development	 	 
	 

	 	 	 	Compound Therapeutics
	 	 

 - 9 - 

 

ANNEX A

MCC PATENTS AND APPLICATIONS

	 	 	 	 	 
	Serial No.	 	Title	 	Inventor(s)
	US 6,361,943

	 	Molecule That Homologizes
Genotype and Phenotype and
Utilization Thereof
	 	YANAGAWA, Hiroshi
	 
	 	 	 	 
	WO 9816636A1

	 	Molecule That Homologizes
Genotype and Phenotype and
Utilization Thereof
	 	YANAGAWA, Hiroshi
	 
	 	 	 	 
	US 20030022230A1

	 	Molecule assigning genotype to
phenotype and use thereof
	 	YANAGAWA, Hiroshi
	 
	 	 	 	 
	US 20020072087A1

	 	Molecule assigning genotype to
phenotype and use thereof
	 	YANAGAWA, Hiroshi
	 
	 	 	 	 
	EP0962527B1

	 	Molecule That Homologizes
Genotype and Phenotype and
Utilization Thereof
	 	YANAGAWA, Hiroshi
	 
	 	 	 	 
	DE69730157D1

	 	Molecule That Homologizes
Genotype and Phenotype and
Utilization Thereof
	 	YANAGAWA, Hiroshi
	 
	 	 	 	 
	EP04018354.3
(not published)

	 	Molecule That Homologizes
Genotype and Phenotype and
Utilization Thereof
	 	YANAGAWA, Hiroshi
	 
	 	 	 	 
	JP98816636A1

	 	Molecule That Homologizes
Genotype and Phenotype and
Utilization Thereof
	 	YANAGAWA, Hiroshi
	 
	 	 	 	 
	JP04198470
(not published)

	 	Molecule That Homologizes
Genotype and Phenotype and
Utilization Thereof
	 	YANAGAWA, Hiroshi

 

 

	 	 	 	 	 
	Serial No.	 	Title	 	Inventor(s)
	 
	 	 	 	 
	US 6,228,994*

	 	Labeled protein and its producing
method, labeling compound to be
used in the method, and method
for analyzing function of genes
	 	YANAGAWA, Hiroshi
	 
	 	 	 	 
	US20010039011A1*

	 	Labeled protein and its producing
method, labeling compound to be
used in the method, and method
for analyzing function of genes
	 	YANAGAWA, Hiroshi
	 
	 	 	 	 
	US20010007751A1*

	 	Labeled protein and its producing
method, labeling compound to be
used in the method, and method
for analyzing function of genes
	 	YANAGAWA, Hiroshi
	 
	 	 	 	 
	JP11322781A2*

	 	Compound For Labeling Protein and
Labeling of Protein with the
Compound
	 	YANAGAWA, Hiroshi

 

			
	*	 	For clarity, these patent families are included among the MCC Patents only for exploitation within
the terms of the license granted in Paragraph 2.1 This inclusion is not intended, and shall not
be construed, to expand the terms of the license granted in Paragraph 2.1. For the avoidance of
doubt with respect to the territorial limitations provided in Paragraph 2.1, patents and patent
applications pending or issued in jurisdictions in Japan are included among the MCC Patents
only as necessary to allow the identification, development, production, and/or
commercialization of Antibody Mimetics, rendering Services for Antibody Mimetics, and to allow the
sale and distribution of Products worldwide pursuant to Paragraph 2.1. The inclusion of such
patents is not intended, and shall not be construed, to expand the territorial limitations provided
in Paragraph 2.1 with respect to the practice of the In vitro virus/PROfusion technology under the
MCC Patents.

 

 

ANNEX B

COMPOUND Patents

     For the avoidance of doubt with respect to the territorial limitations provided in
Paragraph 2.2, patents and patent applications listed in this ANNEX B and pending or issued in
jurisdictions other than Japan are included among the COMPOUND Patents only as necessary to allow
the sale and distribution of Products worldwide pursuant to Paragraph 2.2. The inclusion of such
patents is not intended, and shall not be construed, to expand the territorial limitations provided
in Paragraph 2.2 with respect to the practice of the In vitro virus/PROfusion technology under the
COMPOUND Patents.

PATENTS AND APPLICATIONS ORIGINATING FROM PHYLOS, INC.

	 	 	 	 	 	 	 	 	 	 	 
	R&G and	 	 	 	 	 	 	 	 
	COMPOUND	 	 	 	 	 	 	 	 
	Reference Nos.	 	 	Serial No.	 	 	Title	 	Inventor(s)	 	Status
	COTH-PWO-505
(PCT)

	 	US99/18600
	 	IDENTIFICATION OF
COMPOUND-PROTEIN
INTERACTIONS USING
LIBRARIES OF
PROTEIN-NUCLEIC
ACID FUSION
MOLECULES
	 	Lohse
	 	Filed: Aug 16 99
Published: Feb 24 00
as WO 00/09464
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-PJP-505
(Japan)

	 	 	2000-564919	 	 	IDENTIFICATION OF
COMPOUND-PROTEIN
INTERACTIONS USING
LIBRARIES OF
PROTEIN-NUCLEIC
ACID FUSION
MOLECULES
	 	Lohse
	 	Filed: Aug 16 99
Published:Jun 23 02
as JP2002-522057
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-PWO-510
(PCT)

	 	US00/19653
	 	PEPTIDE ACCEPTOR
LIGATION METHODS
	 	Kurz et al.
	 	Filed: Jul 19 00 Published: Feb 01 01
as WO 01/07657 A1
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-PJP-510
(Japan)

	 	 	2001-512922	 	 	PEPTIDE ACCEPTOR
LIGATION METHODS
	 	Kurz et al.
	 	Published Feb 12 03 as
JP2003-505094

 

 

	 	 	 	 	 	 	 	 	 	 	 
	R&G and	 	 	 	 	 	 	 	 
	COMPOUND	 	 	 	 	 	 	 	 
	Reference Nos.	 	 	Serial No.	 	 	Title	 	Inventor(s)	 	Status
	COTH-PWO-511
(PCT)

	 	US00/23414
	 	METHODS FOR ENCODING
AND SORTING IN VITRO
TRANSLATED PROTEINS
	 	Kuimelis
	 	Filed: Aug 25 00
Published: Mar 08 01
as WO 01/16352
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-PJP-511
(Japan)

	 	 	2001-520897	 	 	METHODS FOR ENCODING
AND SORTING IN VITRO
TRANSLATED PROTEINS
	 	Kuimelis
	 	Published Mar 4 03 as
JP2003-508761
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-PWO-512
(PCT)

	 	US 02/24180
	 	MODULAR ASSEMBLY OF NUCLEIC
ACID-PROTEIN FUSION
MULTIMERS
	 	Kurz et al.
	 	Filed: Jul 31 02
Published Feb 13 03 as WO
03/012146
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-PJP-512
(Japan)

	 	 	2003-517319	 	 	MODULAR ASSEMBLY OF NUCLEIC
ACID-PROTEIN FUSION
MULTIMERS
	 	Kurz et al.
	 	Pending, Unpublished.
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-PWO-502*
(PCT)

	 	US99/07203
	 	ADRESSABLE PROTEIN ARRAYS
	 	Kuimelis et al.
	 	Published: Oct 14 99 as
WO99/51773
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-PJP-502*
(Japan)

	 	 	2000-542484	 	 	ADRESSABLE PROTEIN ARRAYS
	 	Kuimelis et al.
	 	Published: Apr 9 02 as
JP2002-510505
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-PWO-501*
(PCT)

	 	US99/14776
	 	METHODS FOR GENERATING
HIGHLY DIVERSE LIBRARIES
	 	Wagner et al.
	 	Published: Jan 06 00 as
WO00/00632
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-PJP-501*
(Japan)

	 	 	2000-557385	 	 	METHODS FOR GENERATING
HIGHLY DIVERSE LIBRARIES
	 	Wagner et al.
	 	Published: Jul 02 02 as
JP2002-519038
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-PWO-504
(PCT)

	 	US99/18603
	 	METHODS FOR PRODUCING
NUCLEIC ACIDS LACKING
3’-UNTRANSLATED REGIONS AND
OPTIMIZING CELLULAR
RNA-PROTEIN FUSION
FORMATION
	 	Hammond et al.
	 	Published: Feb 24 00 as
WO00/09737
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-PJP-504
(Japan)

	 	 	2000-565171	 	 	METHODS FOR PRODUCING
NUCLEIC ACIDS LACKING
3’-UNTRANSLATED REGIONS AND
OPTIMIZING CELLULAR
RNA-PROTEIN FUSION
FORMATION
	 	Hammond et al.
	 	Published: Jul 23 02 as
JP2002-522091

 

 

	 	 	 	 	 	 	 	 	 	 	 
	R&G and	 	 	 	 	 	 	 	 
	COMPOUND	 	 	 	 	 	 	 	 
	Reference Nos.	 	Serial No.	 	Title	 	Inventor(s)	 	Status
	COTH-PWO-500*
(PCT)

	 	US99/22436
	 	SYNTHESIS OF CODON
RANDOMIZED NUCLEIC ACIDS
	 	Lohse et al.
	 	Published: Apr 06 00 as WO00/18778
No National Filing in Japan
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-PWO-506
(PCT)

	 	US99/28472
	 	DNA-PROTEIN FUSIONS AND
USES THEREOF
	 	Lohse et al.
	 	Published: Jun 08 00 as WO00/32823
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-PJP-506

(Japan)

	 	 	2000-585454	 	 	DNA-PROTEIN FUSIONS AND
USES THEREOF
	 	Lohse et al.
	 	Published: Sep 24 02 as
JP2002-531105
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-PW2-507*

(PCT)

	 	US01/32233
	 	PROTEIN SCAFFOLDS FOR

ANTIBODY MIMICS AND OTHER
BINDING PROTEINS
	 	Lipovsek et al.
	 	Published Apr 25 02 as WO02/032925
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-PJ2-507*

(Japan)

	 	 	2002-536306	 	 	PROTEIN SCAFFOLDS FOR

ANTIBODY MIMICS AND OTHER
BINDING PROTEINS
	 	Lipovsek et al.
	 	Published Sep 02-04 as
JP2004-526419
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-P01-509*

(United States)

	 	 	09/614264	 	 	C-TERMINAL PROTEIN TAGGING
	 	Lohse et al.
	 	Issued: Dec 09 03 as U.S. Pat.
6660473
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-P02-509*

(United States)

	 	 	10/730367	 	 	C-TERMINAL PROTEIN TAGGING
	 	Lohse et al.
	 	Filed: Dec 08 03, Not Published.
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-PEP-509*

(Europe)

	 	 	00960132.9	 	 	C-TERMINAL PROTEIN TAGGING
	 	Lohse et al.
	 	Published: Apr 10 02 as EP1194594
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-PWO-509*

(PCT)

	 	US00/40347
	 	C-TERMINAL PROTEIN TAGGING
	 	Lohse et al.
	 	Published: Jan 18 01 as WO01/04265
No National Filing in Japan.
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-PWO-513

(PCT)

	 	US01/00291
	 	SENSITIVE, MULTIPLEXED

DIAGNOSTIC ASSAYS FOR

PROTEIN ANALYSIS
	 	Wagner et al.
	 	Published: Jul 26 01 as WO01/53539
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-PJP-513

(Japan)

	 	 	2001-553398	 	 	SENSITIVE, MULTIPLEXED

DIAGNOSTIC ASSAYS FOR

PROTEIN ANALYSIS
	 	Wagner et al.
	 	Published: Jul 02 03 as
JP2003-520050
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-PWO-514

(PCT)

	 	US01/06147
	 	IMPROVED METHODS FOR

GENERATING CATALYTIC

PROTEINS
	 	Kurz et al.
	 	Published: Aug 30 01 as WO01/62983
	 
	COTH-PJP-514

(Japan)

	 	 	2001-561791	 	 	IMPROVED METHODS FOR

GENERATING CATALYTIC

PROTEINS
	 	Kurz et al.
	 	Published: Aug 12 03 as

JP2003-523756

 

 

	 	 	 	 	 	 	 	 	 	 	 
	R&G and	 	 	 	 	 	 	 	 
	COMPOUND	 	 	 	 	 	 	 	 
	Reference Nos.	 	Serial No.	 	Title	 	Inventor(s)	 	Status
	COTH-P01-515*

(United States)

	 	 	10/176826	 	 	IN VITRO PROTEIN

INTERACTION DETETION

SYSTEMS
	 	Kurz et al.
	 	Published: Jan 16 03 as US

20030013110
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-PWO-515*

(PCT)

	 	US02/19937
	 	IN VITRO PROTEIN

INTERACTION DETECTION

SYSTEMS
	 	Kurz et al.
	 	Published: Jan 03 03 as

WO03/000856

No National Filing in Japan
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-P01-518*

(United States)

	 	 	10/092750	 	 	POLYPEPTIDE

INTERACTIVE WITH BCL-X1
	 	Hammond et al.
	 	Published: Mar 13 03 as

US20030032157

	 
	 	 	 	 	 	 	 	 	 	 
	COTH-PWO-518*

(PCT)

	 	US02/06951
	 	POLYPEPTIDE

INTERACTIVE WITH BCL-X1
	 	Hammond et al.
	 	Published: Sep 19 02 as WO02/072761

No National Filing in Japan
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-P01-516*

(United States)

	 	 	10/293086	 	 	CELLULER KINASE TARGETS

AND INHIBITORS AND METHODS

FOR THEIR USE
	 	Cujec et al.
	 	Published: Jul 17 03 as
US20030134310
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-PWO-516*

(PCT)

	 	US02/36572
	 	CELLULER KINASE TARGETS

AND INHIBITORS AND METHODS

FOR THEIR USE
	 	Cujec et al.
	 	Published: May 22 03 as
WO03/042369
No National Filing in Japan
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-P01-519*

(United States)

	 	 	10/302456	 	 	SOLID-PHASE

IMMOBILIZATION OF PROTEINS

AND PEPTIDES
	 	Kurz et al.
	 	Published: May 29 03 as
US20030010004
	 
	 	 	 	 	 	 	 	 	 	 
	COTH-PWO-519*

(PCT)

	 	US02/37743
	 	SOLID-PHASE

IMMOBILIZATION OF PROTEINS

AND PEPTIDES
	 	Kurz et al.
	 	Published: Jun 05 03 as
WO03/045975

No National Filing in Japan

 

			
	*	 	For clarity, these patent families are included among the COMPOUND Patents only for
exploitation within the terms of the license granted in Paragraph 2.2. This inclusion is not
intended, and shall not be construed, to expand the terms of the license granted in Paragraph 2.2.

 

 

MGH PATENTS AND APPLICATIONS

	 	 	 	 	 	 	 	 	 
	R&G and	 	 	 	 	 	 	 	 
	COMPOUND	 	 	 	 	 	 	 	 
	Reference Nos.	 	Serial No.	 	Title	 	Inventor(s)	 	Status
	COTH-PJP-701

(Japan)

	 	10-534534
	 	SELECTION OF

PROTEINS USING

RNA-PROTEIN FUSIONS
	 	Szostak et al.
	 	Pending
	 
	 	 	 	 	 	 	 	 
	COTH-WO-701

(PCT)

	 	US98/00807
	 	SELECTION OF

PROTEINS USING

RNA-PROTEIN FUSIONS
	 	Szostak et al.
	 	Filed: Jan 14 98

Published: Jul 23 98

as WO 98/31700
	 
	 	 	 	 	 	 	 	 
	COTH-PJ1-701

(Japan)

	 	2000-598669
	 	SELECTION OF

PROTEINS USING

RNA-PROTEIN FUSIONS
	 	Szostak et al.
	 	Pending
	 
	 	 	 	 	 	 	 	 
	COTH-PW1-701

	 	US00/02589
	 	SELECTION OF

PROTEINS USING

RNA-PROTEIN FUSIONS
	 	Szostak et al.
	 	Filed: Feb 01 00

(All countries designated)

Published: Aug 17 00

as WO 00/47775

 

 

GOLD PATENTS AND APPLICATIONS

	 	 	 	 	 	 	 
	Serial Number &	 	 	 	 	 	 
	Country	 	Title	 	Inventor(s)	 	Status
	07/829,461

United States

	 	SYSTEMIC

POLYPEPTIDE

EVOLUTION BY

REVERSE

TRANSCRIPTION
	 	Gold
	 	Filed: Jan 31 92
Issued: U.S. Pat
5,843,701 (Dec 01
98)
	 
	 	 	 	 	 	 
	09/197,649

United States

	 	SYSTEMIC

POLYPEPTIDE

EVOLUTION BY

REVERSE

TRANSCRIPTION
	 	Gold
	 	Filed: Nov 23 98
Issued: U.S. Pat
6,194,550 (Feb 27
01)
	 
	 	 	 	 	 	 
	09/790,399

United States

	 	SYSTEMIC

POLYPEPTIDE

EVOLUTION BY

REVERSE

TRANSCRIPTION

FUSIONS
	 	Gold
	 	Filed: Feb 22 01

 

 

In Vitro Virus/PROfusion Mutual Patent License Agreement, December 10, 2004

SCHEDULE A

	1.	 	The sublicenses granted by COMPOUND within the field of In vitro virus/PROfusion technology
prior to the Effective Date

          On September 27, 2004 Compound Therapeutics entered into a license agreement with Abbott
Laboratories granting Abbott non-exclusive rights to use Compound Therapeutics’ PROfusionÔ
technology and certain antibody libraries for purposes of (i) research and development, including
target validation, generation and use of research reagents, generation and use of Antibody
libraries, drug discovery, characterization and screening, and (ii) for isolating, developing and
commercializing therapeutic antibody products and diagnostic antibody products.

	2.	 	The sublicenses granted by MCC within the field of In vitro virus/PROfusion technology prior
to the Effective Date

          None

 

 

EXHIBIT

A

INTERFERENCE SETTLEMENT AGREEMENT

          This Settlement Agreement is made as of December 10, 2004 (the “Effective
Date”) by and among Mitsubishi Chemical Corporation, a corporation of Japan,
with its principal place of business at 33-8, Minaot-ku Shiba 5-chome, Chiyoda-ku, Tokyo, Japan
(“MCC”), and Compound Therapeutics, Inc., a corporation of U.S.A., with its principal
place of business at 100 Beaver Street, Waltham MA 02453, U.S.A.(“COMPOUND”).

	(A)	 	In the event that an interference is declared by the United States Patent and
Trademark Office, MCC and COMPOUND agree to settle such an interference in good faith and,
in a manner reasonably designed to identify which Party was the first to invent the
interfering subject matter, as defined by the United States Patent and Trademark
Office to allow the prompt issuance of a valid patent or patents according to the United
States patent law. MCC and COMPOUND agree that such identification will be made through the
following process:

	 	(i)	 	In the case of the declared Interference, and in the event that the United
States Patent and Trademark Office declares further Interferences between COMPOUND and
MCC patent filings, the Parties agree to mutually petition the United States Patent
and Trademark Office to suspend the Interference proceedings for at least such time as
required for the determination of priority of invention pursuant to the terms of the
present Settlement Agreement.
	 
	 	(ii)	 	The Parties will attempt to reach mutual agreement by sharing relevant proofs
of priority with each other. Within sixty (60) days of the mailing
date of Notice of Interference from the U.S. patent and Trademark
Office, each party will serve on designated counsel for the other party
a memorandum with attached evidence in support of dates of the conception,
diligence, and reduction to practice of the subject matter for each of the Counts of
the Interference. The Parties also agree that any reasonable costs
associated with the translation of Japanese language documents shall be borne equally
by the Parties. Each counsel shall review the memoranda and evidence provided by
the other party and shall meet (in person or telephonically) to determine priority of
invention in accordance with the

 

 

	 	 	 	Rules of Practice of the United States Patent and
Trademark Office regarding conception, diligence and reduction to practice of
inventions.

	 	(iii)	 	Unless otherwise agreed, if within sixty (60) days of the exchange of
memoranda and evidence the parties are unable to reach mutual agreement the Parties
agree to submit their respective memoranda and evidence to a disinterested
and mutually acceptable attorney or former administrative law judge (herein
“Third Party Expert”) having expertise in Interference law. Both
Parties agree that the findings of this Third Party Expert will be
binding. The Parties will also submit to the Third Party Expert the full file
histories for each of applications or patents designated in the Interference.

	 	(a)	 	The Third Party Expert has the right to request any additional
information that s/he may require. After review of each Parties memorandum,
evidence and any document inspections which the Third Party Expert deems
necessary, the Third Party Expert will issue a “Preliminary Interference
Settlement Report” designating for each Count to whom priority of invention
is to be given. Each party’s counsel will have fifteen (15) days from the
mailing date of Preliminary Interference Settlement Report to submit to the
Third Party Expert any arguments for modifying the decisions of the Third
Party Expert set forth therein. The Third Party Expert will then issue a
“Final Interference Settlement Report” setting forth for each Count, the
party to whom priority of invention is to be given. The determination
of priority of invention shall be made in accordance with the Patent Laws of
the United States and in accordance with the Rules of Practice of the United
States Patent and Trademark Office regarding conception, diligence, and
reduction to practice of inventions.
	 
	 	(b)	 	The Parties agree that the Third Party Expert shall have the right
to designate the particular form of reports, memoranda, evidence and other
submissions to the Third Party Expert by the Parties.
	 
	 	(c)	 	The Parties also agree that any costs associated with the Third
Party Expert shall be borne equally by the Parties.

 

 

	(B)	 	MCC and COMPOUND also agree to promptly make a determination of whether any of their
respective patents and applications claim the same patentable inventions in accordance with 37
CFR § 1.601(n) and applicable legal precedent (“Overlapping Subject Matter”). In the event
that the parties determine that there is such Overlapping Subject Matter (whether now or in
the future), then they shall promptly follow the procedure set forth in (A)
above to resolve which party is entitled to the patent(s) claiming the Overlapping Subject
Matter.
	 
	(C)	 	Unless agreed otherwise in writing, the Parties agree that as soon as practical
after the determination of priority of invention required by this Settlement Agreement,
each party will cancel claims in any pending U.S. Patent Application and disclaim any
claims in issued U.S. Patents for which the other party has been awarded priority. Any
disagreement between the Parties on whether a claim is to the same patent invention as
a Count shall, at the request of either party, be submitted to the Third Party Expert for
binding determination.
	 
	(D)	 	For each Interference that is declared by the United States Patent and Trademark
Office between claims which are within the scope of this, a copy of this Agreement
will be filed in the U.S. Patent and Trademark Office by MCC and COMPOUND before the
termination of such interference as provided by 37 CFR §1.666, with a request that the copy be
kept separate from the file of such interference, and with a request that the copy be made
available only to government agencies on written request or to any person on a showing of good
cause, as provided by 37 CFR §1.666(b). A copy of this agreement will be filed for each
interference.

	 	 	 	 	 
	 

	 	For Mitsubishi Chemical Corporation:	 	 
	 
	 	 	 	 
	 

	 	/s/ Eiji Tanaka	 	 
	 

	 	 	 	 
	 

	 	Eiji Tanaka	 	 
	 

	 	Executive Officer, General Manager, MCC Group

Science & Technology Office	 	 
	 

	 	Date: December 10, 2004	 	 
	 
	 	 	 	 
	 

	 	For Compound Therapeutics, Inc.:	 	 
	 
	 	 	 	 
	 

	 	/s/ John Edwards	 	 
	 

	 	 	 	 
	 

	 	John Edwards	 	 
	 

	 	Senior Vice President
Commercial and Product Development	 	 
	 
	 	 	 	 
	 

	 	Date: December 10, 2004exv10w6

 

      Confidential
Materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote omissions.

Exhibit 10.6

LICENSE AGREEMENT

This Agreement, effective as of March 27, 2000 (the “Effective Date”), is by and between Phylos,
Inc. (“Phylos”), a Delaware corporation, and University Technology
Corporation (“UTC”), a Colorado nonprofit corporation.

RECITALS

WHEREAS, pursuant to the UTC Assignment, UTC has the right to grant licenses to the Patent Rights
that describe the SPERT Technology; and

WHEREAS, Phylos desires to obtain a co-exclusive license to practice the invention
described in the Patent Rights and UTC is willing to grant such a license on the terms and subject
to the conditions provided herein.

NOW, THEREFORE, in consideration of the mutual covenants set forth in this
Agreement, the Parties hereby agree as follows:

1. DEFINITIONS

1.1 “Affiliate” means a corporation or other legal entity that owns, is
owned by, or is under common ownership with a Party. For purposes of this definition, “own” means
the ownership, directly or indirectly, of fifty percent (50%) or more of the outstanding equity
securities of a corporation which are entitled to vote in the election of directors or a fifty
percent (50%) or greater interest in the net assets or profits of an entity which is not a
corporation.

	1.2	 	“Agreement” means this License Agreement, together with all Exhibits hereto.
	 
	1.3	 	“Confidential Information” has the meaning set forth in Section 5.1.
	 
	1.4	 	“Party” means Phylos or UTC; “Parties” means Phylos and UTC.

1.5 “Patent Rights” means all Valid Claims of all issued patents and reissues,
reexaminations, extensions and supplementary protection certificates thereof, and all patent
applications and any divisions, continuations, or continuations-in-part thereof or patents issuing
thereon relating specifically to the SPERT Technology.

1.6 “Phylos Technology” means technology described or claimed in a patent or patent
application, owned or controlled by Phylos, as described or claimed in, the U.S. Provisional Patent
Application entitled In vitro selection of Proteins using RNA Protein
Fusions, filed January 21, 1997, or the equivalent of such application, including any
division, continuation or any foreign patent application or Letters

 

 

Patent or the equivalent thereof issuing thereon, or reissues, reexaminations or extensions
thereof, and including those claims in any continuation-in-part of the aforementioned patent
applications which claim an invention described or claimed in said patent application, or the Chip
Technology described in the U.S. Patent Application entitled Selection of Proteins using
RNA Protein Fusions,filed January 14, 1998, or the equivalent of such
application, including any division, continuation or any foreign patent application or Letters
Patent or the equivalent thereof issuing thereon, or reissues, reexaminations or extensions
thereof, and including those claims in any continuation-in-part of the aforementioned patent
applications which claim an invention described or claimed in said patent application.

1.7 “SPERT Technology” means the technology related to Systematic Evolution of Polypeptides
by Reverse Transcription, described in, and any continuations, divisionals, or ‘
continuations-in-part thereof:

     United States Serial Number 07/561,968, filed August 2, 1990

     United States Serial Number 07/739,055, filed August 1, 1991

     United States Serial Number 07/829,461, filed January 31, 1992
(now United States Patent Number 5,843,701)

     United States Serial Number 09/197,649, filed November 23, 1998.

1.8 “Third Party” means a person, business or corporation other than Phylos,
UTC and their respective Affiliates.

1.9 “Valid Claim” means either (i) a claim of an issued patent that has not been held
unenforceable or invalid by an agency or a court of competent jurisdiction in any unappealable or
unappealed decision or (ii) a claim of a pending patent application that has not been abandoned or
finally rejected without the possibility of appeal or refiling.

1.10 “URC” means University Research Corporation, a wholly owned subsidiary of The
University of Colorado Foundation, Inc. (the “Foundation”), designed to serve as the corporate
vehicle for new entrepreneurial ventures or start up companies which are formed to commercially
exploit inventions made by the faculty of the University of Colorado.

1.11 “URC Agreement” means the license agreement, dated July 17, 1991, between
NeXagen, Inc. (a predecessor to NeXstar Pharmaceuticals, Inc. [“NeXstar”]) and URC, as
amended October 26, 1992, March 30, 1994 and September 5, 1996, and restated June 25, 1998.

1.12 “URC Assignment” means the Assignment and Assumption Agreement dated as of
June 30, 1999, between URC and the Foundation assigning to the Foundation all of URC’s right, title
and interest in and to the URC Agreement and the “SELEXTM/Spert Technology” as defined
therein.

 

 

1.13 “UTC Assignment” means the Assignment and Assumption Agreement dated as of October 1,
1999, between UTC and the Foundation assigning to UTC all of the Foundation’s right, title and
interest in and to the URC Agreement and the “SELEXTM/Spert Technology” as defined
therein.

The above definitions are intended to encompass the defined terms in both the singular and plural
tenses.

2. LICENSE GRANTS

2.1 Co-Exclusive License to SPERT Technology and Patent Rights. Subject to the
terms of this Agreement, UTC hereby grants to Phylos the co-exclusive (solely with Optein,
Incorporated), world-wide, royalty-free right and license to the Patent Rights describing the SPERT
Technology with the right to grant sublicenses (subject to Section 2.2) to perform research for the
purpose of developing, to have developed, to make, have made, to sell and have sold, and import
products and services covered by a Valid Claim of the Patent Rights.

2.2 Right of Phylos to Grant Sublicenses. Phylos may grant sublicenses, to its
Affiliates and corporate partners, which have been granted licenses to the Phylos Technology for
the sole and exclusive purpose, and only to the extent necessary, to permit Affiliates and its
corporate partners to develop, have developed, make, have made, sell and have sold and import
products and services using the Phylos Technology.

3. INTELLECTUAL PROPERTY RIGHTS

3.1 Maintenance and Prosecution. Subject to Section 4.3, Phylos shall solely be
responsible, at its sole discretion and at its sole expense, for the preparation, filing,
prosecution and maintenance (including the decision to abandon ) of the Patent Rights. Phylos may
use a patent attorney of its choice to perform its obligations under this Article 3. UTC agrees to
facilitate the transfer to the Phylos patent attorney, of any, and all, records and documents
pertaining to the Patent Rights as are reasonably necessary to enable the patent attorney to
prosecute and maintain the Patent Rights, including previous patent related documentation, file
histories and communications with relevant patent offices.

3.2 Cooperation of the Parties. Each Party agrees to cooperate fully in the
preparation, filing, prosecution and maintenance of the Patent Rights. Such cooperation includes,
but is not limited to:

	 	(i)	 	executing all papers and instruments, or requiring its employees or agents,
to execute such papers and instruments, so as to effectuate the

 

 

	 	 	 	ownership of Patent Rights and to enable the Parties to apply for, prosecute and
maintain the Patent Rights;
	 
	 	(ii)	 	providing the other Party with copies of all patent applications, responses,
or any other filings with the United States or other applicable intellectual property,
judicial or administrative office sufficiently in advance of such filing to enable the
other Party to have a meaningful opportunity to comment thereon and otherwise keeping
the other Party reasonably informed of its activities associated with the preparation,
filing, prosecution or maintenance of the Patent Rights; and
	 
	 	(iii)	 	promptly informing the other Party of any matters coming to such
attention that may affect the preparation, filing, prosecution or
maintenance of the Patent Rights.

3.3 Infringement by Third Parties of Patent Rights.

     3.3.1 The Parties shall each promptly notify the other in writing of any alleged or threatened
infringement of the Patent Rights. Phylos shall have the right, but not the obligation, to
prosecute at its own expense any such infringement. Any recovery or damages derived from such
action shall be retained by Phylos.

     3.3.2 If, within six (6) months after Phylos first becomes aware of any
infringement of the Patent Rights, Phylos fails to cause such infringement to terminate or to bring
a suit or action to compel termination, UTC shall have the right, but not the obligation, to bring
such suit or action to compel termination at the sole expense of UTC. Any recovery or damages
derived from such action shall be retained by UTC.

3.4 Cooperation in Infringement Actions. In any infringement suit which either Party may
institute to enforce the Patent Rights pursuant to this Agreement, the other Party hereto shall, at
the request of the Party initiating such suit, cooperate in all respects and, to the extent
possible, have its employees testify when requested and make available relevant records, papers,
information, samples and the like. Phylos’ cooperation in any suit initiated by UTC shall be at
UTC’s expense. UTC’s cooperation in any suit initiated by Phylos shall be at Phylos’ expense.

4. PAYMENTS AND RECORDS

4.1 License Fee. Phylos shall pay a license fee upon execution of this Agreement as
follows: [**] dollars ($[**]) to UTC and [**] dollars ($[**]) to Gilead Sciences, Inc. (as
successor in interest to NeXstar) (“Gilead”).

4.2 Invoices. All payments due under this Agreement shall be payable in United

 

 

States dollars on or before the dates indicated herein.

4.3 Patent Maintenance Fees. Notwithstanding Section 3.1, Phylos shall be obligated to pay
all maintenance fees for United States Patent 5,843,701. Any other fees required to maintain and
prosecute the Patent Rights shall be the sole responsibility of Phylos in its sole discretion and
at its sole expense. Phylos shall keep appropriate record of these transactions that will be open
for inspection by an agent of UTC.

5. CONFIDENTIAL INFORMATION

5.1 Definition of Confidential Information. Confidential Information means any
technical or business information furnished by a Party (the “Disclosing Party”) to other Party (the
“Receiving Party”) in connection with this Agreement, whether or not specifically designated as
confidential (“Confidential Information”). Such confidential Information may include, without
limitation, the identity of a protein, peptide, or nucleic acid sequence, the use of a protein,
peptide, or nucleic acid sequence, trade secrets, know-how, inventions, technical data or
specifications, testing methods, business or financial information, research and development
activities, product and marketing plans, and customer and supplier information.

5.2 Obligations. Subject to Sections 5.3 and 5.4, the Receiving Party agrees that it
shall:

	 	(i)	 	maintain all Confidential Information in strict confidence, except that the
Receiving Party may disclose or permit the disclosure of any Confidential Information
only to its directors, officers, employees, consultants, and advisors who are
obligated to maintain the confidential nature of such Confidential Information and who
need to know such Confidential Information for the purposes set forth in this
Agreement.
	 
	 	(ii)	 	use all Confidential Information solely for the purposes set forth in, or as
permitted by, this Agreement: and
	 
	 	(iii)	 	allow the Confidential Information to be copied or reproduced only to the
extent necessary to effect the purposes set forth in this Agreement, with all such
reproductions being considered Confidential Information.

5.3 Exceptions. The obligations of the Receiving Party under Section 5.2 above shall not
apply to the extent the Receiving Party can demonstrate that certain Confidential Information:

	 	(i)	 	was in the public domain prior to the time of its disclosure under this 

 

 

	 	 	 	Agreement;
	 
	 	(ii)	 	entered the public domain after the time of its disclosure under this
Agreement through means other than an unauthorized disclosure resulting from an act or
omission by the Receiving Party;
	 
	 	(iii)	 	was independently developed or discovered by the Receiving Party
without use of the Confidential Information;
	 
	 	(iv)	 	is or was disclosed to the Receiving Party at any time whether prior to or after the time
of its disclosure under this Agreement, by a Third Party having no fiduciary relationship with the
Disclosing Party and having no obligation of confidentiality to the Disclosing Party with respect
to such Confidential Information; or
	 
	 	(v)	 	is required to be disclosed to comply with applicable laws or regulations (such as
disclosure to the FDA or the United States Patent and Trademark Office or to their foreign
equivalents), or to comply with a court or administrative order, provided that the Disclosing Party
receives prior written notice of such disclosure and that the Receiving Party takes all reasonable
and lawful actions to obtain confidential treatment for such disclosure and, if possible, to
minimize the extent of such disclosure.

5.4 Survival of Obligations. The obligations set forth in this Article 5 shall remain in
effect for a period of five (5) years after the expiration or termination of this Agreement, except
that the obligations of the Receiving Party to destroy or return Confidential Information to the
Disclosing Party shall survive until fulfilled.

5.5 URC Agreement. The Parties acknowledge and agree that pursuant to that certain Release
Agreement, dated the date hereof, the URC Agreement, which was assigned to the Foundation by the
URC Assignment and then by the Foundation to UTC by the UTC Assignment, has been terminated solely
as to the SPERT Technology and that Gilead, as the successor to NeXstar, has no further rights or
obligations under the URC Agreement as to the SPERT Technology, subject to any obligations of
Gilead to Optein, Incorporated.

6. REPRESENTATIONS AND WARRANTIES

6.1 Representations, Warranties and Covenants. Each Party represents and warrants to and
covenants to the other that it has the legal right and power to enter into this Agreement, to
extend the rights and licenses granted to the other in this

 

 

Agreement, and to fully perform its obligations hereunder, and that the performance of such
obligations will not conflict with its charter documents or any agreements, contracts, or other
arrangements to which it is a party.

6.2 Ownership of Patent Rights. UTC represents and warrants that, as of the
Effective Date it has the full legal right and power to enter into the obligations and grant the
rights and licenses set forth in this Agreement.

6.3 No Representation. UTC makes no representation or warranty whatsoever that
any patents or patent applications licensed under this Agreement are valid or that the rights and
licenses granted to Phylos under this Agreement will not infringe any patents of third parties.

7. INDEMNIFICATION

7.1 Indemnification. Phylos shall indemnify, protect, defend, and hold harmless
UTC, its Affiliates, the University of Colorado, and their respective directors, officers,
trustees, regents, students, employees, and agents and their respective successors, heirs and
assigns (the “Indemnitees”) against any liability, damage, loss, or expense (including reasonable
attorneys fees and expenses of litigation) incurred by or imposed on the Indemnitees or any one of
them in connection with any costs, expenses, claims, suits, actions, demands, or judgments
concerning any product, process or service that is made, used, sold, or provided pursuant to any
right or
license granted under this Agreement, except in-the case that such event is occasioned by the gross
negligence, misrepresentation, willful misconduct or a fraudulent act of one or any of the
Indemnitees.

8. TERM AND TERMINATION

8.1 Term. Unless this Agreement is terminated in accordance with the provisions of this
Article 8, this Agreement shall automatically expire upon the last to expire of any Valid Claim of
the Patent Rights. Upon automatic expiration, the licenses granted under Article 2 hereof shall
become irrevocable and Phylos’ obligations to pay for the maintenance and prosecution of the Patent
Rights will cease.

8.2 Termination by Phylos. Phylos may terminate this Agreement at any time after April 30,
2000 by giving UTC three (3) months written notice of Phylos’ election to terminate.

8.3 Default by Either Party. If a Party defaults under any terms, covenants or
provisions of this Agreement, such Party shall have thirty days after the giving of written notice
of such default, within which to correct such default. If such default is not corrected within such
thirty day period, the other Party shall have the right, at its option, and in addition to any
other remedy available at law or equity, to cancel and

 

 

terminate this entire Agreement and the licenses granted hereunder, including the licenses extended
to Affiliates, except that in the event that UTC defaults, Phylos may choose to retain irrevocable,
fully paid up rights to the licenses granted in Article 2, while no longer being obliged to honor
its commitments to maintain and
prosecute the Patent Rights (Sections 3.1 and 4.3).

8.4 Effect of Termination. In the event of termination pursuant to Section 8.2
Phylos’ rights under the Patent Rights shall terminate immediately and the provisions of Articles
1, 5, 6, 7 and 9 shall survive. The expiration or termination of this Agreement shall not relieve
the Parties of any obligation accruing prior to such expiration or termination.

8.5 Return of Materials. Upon termination pursuant to Section 8.2 by Phylos or
pursuant to Section 8.3 by either Party, any and all originals, copies, and summaries of documents,
materials, and other tangible manifestations of the Confidential Information of the nondefaulting
Party in the possession of the defaulting Party shall be promptly destroyed or returned to the
non-defaulting Party, except that the defaulting Party may retain one copy of such Confidential
Information in the possession of its legal counsel, solely for the purpose of monitoring its
obligations under this Agreement.

9. MISCELLANEOUS

9.1 Publicity. Neither Party shall use the name of the other Party or reveal the terms of
this Agreement in any publicity or advertising without the prior written approval of the other
Party, such consent not to be unreasonably withheld.

9.2 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the Commonwealth of Massachusetts.

9.3 Dispute Resolution Procedures.

     9.3.1 The Parties hereby agree that they will attempt in good faith to resolve any
controversy, claim or dispute (“Dispute”) arising out of or relating to this Agreement promptly by
negotiations between the Chief Executive Officer of Phylos, and the Chief Executive Officer of UTC
(“Senior Executives”). The Senior Executives will meet for negotiations within ten (10) days of the
date written notice of such Dispute is given, at a time and place mutually acceptable to both
Senior Executives. If the Dispute has not been resolved within thirty (30) days after the
date written notice of such Dispute is given, (which period may be extended by mutual agreement),
subject to any rights to injunctive relief and unless otherwise specifically provided for herein,
any Dispute will be settled by binding arbitration as described in Section 9.3.2 below.

 

 

     9.3.2
Any Dispute which is not resolved by the Parties as provided in Section 9.3.1 shall be submitted to arbitration conducted under the Commercial Rules of the American
Arbitration Association and shall be conducted in Boston, Massachusetts. Each such arbitration
shall be conducted in the English language by a panel of three arbitrators appointed in accordance
with such rules and who shall have experience in resolving disputes among parties in the
biotechnology industry. The decision of the arbitrators shall be final and binding on the Parties
and may be entered into any court of competent jurisdiction.

     9.3.3 Nothing contained in this Section 9.3 or any other provisions of this
Agreement shall be construed to limit or preclude a Party from bringing any action in any court of
competent jurisdiction for injunctive or other provisional relief to compel the other Party to
comply with its obligations hereunder. The Parties hereby irrevocably consent to submit to the
jurisdiction of the courts of the Commonwealth of Massachusetts and/or any other court having
jurisdiction for this purpose.

     9.4 Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, and all of which together shall be deemed to be one and the same
instrument.

     9.5 Captions. The parties agree that the captions appearing in this Agreement have
been inserted for reference and as a matter of convenience and in no way define, limit or enlarge
the scope or meaning of this Agreement or any provision.

     9.6 Binding Effect. This Agreement shall inure to the benefit of and be binding upon
the Parties, their Affiliates, and their respective lawful successors and assigns.

     9.7 Assignment. Except for the sublicensing provisions of Section 2.2, the Parties
agree that this Agreement and the rights duties and obligations of the Parties under this Agreement
shall not be assigned by either of them without the prior written consent of the other, such
consent not to be unreasonably withheld, and any attempt to assign the rights, duties or
obligations without this consent will be of no effect, except that the Parties may assign this
Agreement to a successor in connection with the merger, consolidation or sale of all or
substantially all of its assets or that portion of its business pertaining to the subject matter of
this Agreement.

     9.8 Notices. All notices, requests, demands and other communications required or
permitted to be given pursuant to this Agreement shall be in writing and shall be deemed to have
been duly given upon the date of receipt if delivered by hand, recognized international overnight
courier, confirmed facsimile transmission, or registered or certified mail, return receipt
requested, postage prepaid to the following addresses or facsimile numbers:

 

 

	 	 	 
	If to UTC:

	 	University Technology Corporation

	 	 	 
	 

	 	3103 Iris Avenue, Suite 250
	 

	 	Boulder, CO 80301
	 

	 	Attention: President
	 

	 	Tel: 303-440-5495
	 

	 	Fax: 303-440-5875
	 
	 	 
	If to Phylos:

	 	Phylos, Inc.
	 

	 	128 Spring Street
	 

	 	Lexington, MA 0242
	 

	 	Attention: Ashley Lawton, Ph.D.
	 

	 	Tel: 78 1-862-6400
	 

	 	Fax: 781-402-8800
	 
	 	 

Either Party may change its designated address and facsimile number by notice to the other Party in
the manner provided in this Section.

     9.9 Amendment and Waiver. Any amendment to this Agreement shall only be effective if
the amendment is in writing and is signed by UTC and by Phylos. Any waiver of any rights or failure
to act in a specific instance shall relate only to such instance and shall not be construed as an
agreement to waive any rights or fail to act in any other Instance, whether or not similar.

     9.10 Severability. In the event that any provision of this Agreement shall, for any
reason, be held to be invalid or unenforceable in any respect, such invalidity or unenforceability
shall not affect any other provision hereof, and the Parties shall negotiate in good faith to
modify the Agreement to preserve (to the extent possible) their original intent.

     9.11 Entire Agreement. This Agreement constitutes the entire agreement between the
Parties with respect to the subject matter hereof and supersedes all prior agreements or
understandings between the Parties relating to the subject matter hereof.

     9.12 Force Majeure. Neither Party shall be held liable or responsible to the other
Party, nor be deemed to be in breach of this Agreement, for failure or delay in fulfilling or
performing any provisions of this Agreement when such failure or delay is caused by or results from
any cause whatsoever outside the reasonable control of the Party concerned including, but not
limited to, fire, explosion, breakdown of plant, strike, lock-out, labor disputes, casualty or
accident, lack or failure of transportation facilities, flood, lack or failure of sources of supply
or of labor, raw materials or energy, civil commotion, embargo, any law, regulation, decision,
demand or requirement of any national or local government or
authority. The Party claiming relief shall, without delay, notify the other Party by registered airmail or by telefax of the
interruption and cessation thereof and shall use its best efforts to remedy the

 

 

effects of such hindrance with all reasonable dispatch. The onus of proving that any such Force
Majeure event exists shall rest upon the Party so asserting. During the period that one Party is
prevented from performing its obligations under this Agreement due to a Force Majeure event, the
other Party may, in its sole discretion, suspend any obligations that relate thereto. Upon
cessation of such Force Majeure event the Parties hereto shall use their best efforts to make up
for any suspended
obligations. If such Force Majeure event is anticipated to continue, or has existed for nine (9)
consecutive months or more, this Agreement may be forthwith terminated by either Party by
registered airmail or by telefax. In case of such termination the terminating Party will not be
required to pay to the other Party any indemnity whatsoever.

IN WITNESS WHEREOF, the parties hereto have each caused a duly authorized officer to sign this
Agreement to be effective the Effective Date.

	 	 	 	 	 	 	 
	University Technology Corporation	 	Phylos, Inc.
	 
	 	 	 	 	 	 
	By:

	 	/s/ Mitchell M. Griffith
	 	By:
	 	 /s/ S. Ashley Lawton
	 

	 	 
	 	 	 	 
	 

	 	Mitchell M. Griffith. Ph.D.
	 	 	 	S. Ashley Lawton, Ph.D.
	 

	 	President and CEO
	 	 	 	President and CEO

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