Document:

f8k0212ex10xxiv_organovo.htm

Exhibit 10.24

 

With compliments -

 

	 	
Office of Technology Management and Industry Relations ,

Office of Research

University of Missouri-Columbia

	 	 	 	 
	DATE:    March 17, 2010	 
	 	 
	TO:            Keith Murphy-Organovo	 
	 	 
	 	 
	RE:             10UMC008 License Agreement	 

	 	 
	 	
 

 

	 	 	 	 
	 	Comments:	 	 
	 	 	 	 
	 	Please see the 2 original, partially executed agreements attached for your signature.  You may retain one and please return the other to me at the address below.
	 	 	 	 
	 	Thank you!	 	 
	 	
 

	 	 	 	 
	 	Should you have any questions, please contact:	Carolyn Dawson	 
	 	 	Administrative Assistant-OTMIR	 
	 	 	340 Bond Life Sciences Center	 
	 	 	1201 East Rollins	 
	 	 	Columbia, MO  65211-7310	 
	 	 	Phone:573-882-6013	 
	 	 	Fax: 573-884-0802 dawsonca@missouri.edu	 
	 	 	 	 
	 	GO TIGERS!!!!  =^..^=	 	 

 

  

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LICENSE AGREEMENT

 

THIS AGREEMENT  is made and entered into this 12th day of March, 2010 ("EFFECTIVE DATE"), by and between THE CURATORS  OF THE UNIVERSITY  OF MISSOURI, a public corporation  of the State of Missouri having a principal office at The Office of Technology Management & Industry Relations, 340

Bond Life Sciences Center, Columbia, MO  65211, ("UNIVERSITY") and Organovo having offices at

 

5871 Oberlin Dr., Suite 150, San Diego, CA  92121 ("LICENSEE").

 

 WHEREAS, UNIVERSITY has full ownership interest in PATENT RIGHTS related to LICENSED SUBJECT MATTER; and

 

WHEREAS, the LICENSED SUBJECT MATTER was developed in part under a research program sponsored by  the National Science Foundation. Therefore, this Agreement is subject to the terms and  conditions of Public Law 96-517 and 98-620 as amended; and

 

WHEREAS, LICENSEE is desirous of obtaining a license to practice the LICENSED SUBJECT MATTER; and

 

WHEREAS, UNIVERSITY is desirous of granting such a license to LICENSEE in accordance with the terms of this Agreement.

 

 NOW, THEREFORE, in consideration  of the foregoing premises and the covenants, representations and warranties contained herein, the Parties agree as follows:

 

ARTICLE I

 

 DEFINITIONS

 

1.01            "AFFILIATE" means any business entity more than fifty percent (50%) owned by LICENSEE, any business entity which owns more than fifty percent (50%) of LICENSEE, or any business entity that is more than fifty percent (50%) owned by a business entity that owns more than fifty percent (50%) of LICENSEE.

 

1.02            "KNOW-HOW" means research and development information, unpatented inventions, methods and techniques, formulae, biological materials and substances, processes and technical data, whether or not patentable or copyrightable,  which are needed to produce LICENSED PRODUCT  and are not otherwise in the public domain.

 

  

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1.03           "LICENSED FIELD" means each of the following business areas:

 

(a)   all fields of use.

 

1.03           "LICENSED PRODUCT" means any product or part thereof where such product or part, and any result of a method, or the practice of a method, comprising LICENSED SUBJECT MATTER pursuant to this Agreement, is Sold by LICENSEE or a SUBLICENSEE.

 

1.04           "LICENSED SUBJECT MATTER" means inventions and discoveries covered by

 

TECHNOLOGY  and PATENT RIGHTS, if any, within LICENSED FIELD.

 

1.05           "LICENSED TERRITORY" means worldwide.

 

1.06           "NET SALES" means [***}, less:

 

(a)  [***];

 

(b)  [***]; and/or

 

(c)  [***].

 

1.07           "PATENT RIGHTS" means UNIVERSITY's rights in any of the following: the United States patent application (serial number 61/337,037 titled "ENGINEERED BIOLOGICAL NERVE GRAFT,FABRICATION AND APPLICATION THEREOF") disclosing and claiming the TECHNOLOGY; and continuing applications thereof including divisions, substitutions, continuations, continuations-in-part derived from Organovo sponsored research; and any patents issuing on said applications including reissues, reexaminations and extensions; and any corresponding foreign applications or patents. All of the foregoing will be automatically incorporated in and added to this Agreement and shall periodically be added to Appendix A attached to this Agreement and made part thereof

 

1.08             "Sale", Sell", or "Sold" means the use, transfer, distribution or disposition of a LICENSED PRODUCT for value to a party other than LICENSEE, or SUBLICENSEE as the case may be.

 

1.09            "SUBLICENSEE" means any person or entity to whom LICENSEE transfers any right or interest granted to LICENSEE by UNIVERSITY under this Agreement.

 

1.10            "TECHNOLOGY" means

 

the information, discoveries or know how developed by Dustin Christiansen, Stephen H. Colbert, Gabor Forgacs, Bradley A. Hubbard and Francoise Marga at UNIVERSITY  prior to the date of this Agreement as disclosed in UM Disclosure No. 10UMC008 entitled "Engineering  Fully Biological Nerve Graft" dated July 28, 2009

 

  

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ARTICLE II

 

GRANT

 

2.01           UNIVERSITY hereby grants to LICENSEE and LICENSEE accepts, subject to the terms and conditions hereof, a royalty-bearing, exclusive license under LICENSED SUBJECT  MATTER to make, have made, use, Sell, have Sold, import, distribute, or otherwise transfer LICENSED PRODUCT within the LICENSED TERRITORY  for use within LICENSED FIELD for a term of the last to expire patent covered under PATENT RIGHTS.  UNIVERSITY  also grants to LICENSEE, a royalty free, non-exclusive license to KNOW-HOW with the right to grant sublicenses in concurrence with a sublicense to a SUBLICENESEE in accordance with 2.02 below.

2.02           The license granted in Section 2.01 above shall include the right to grant sublicenses, and the right of SUBLICENSEE  to grant further sublicenses subject to approval of LICENSEE.,   LICENSEE must deliver to UNIVERISTY a true and correct copy of each fully executed sublicense granted by LICENSEE or SUBLICENSEE,  and any modification or termination thereof, within thirty (30) days after execution, modification, or termination. LICENSEE shall, at such times as UNIVERSITY  directs and at UNIVERSITY's expense, request the inspection of the sublicensee's records by an independent certified public accountant.

 

2.03           UNIVERSITY shall have the right to make and to use the LICENSED SUBJECT  MATTER for research and educational purposes only, and to grant nonexclusive licenses to non-profit third parties to make and to use the LICENSED SUBJECT MATIER, for research and educational purposes only.

 

2.04           LICENSEE agrees that UNIVERSITY  shall have a right to publish the research results related to the LICENSED SUBJECT  MATTER in accordance with UNIVERSITY's general policies and that this Agreement shall not restrict, in any fashion, UNIVERSITY's right to publish.

 

2.05           LICENSEE understands that the LICENSED SUBJECT MATTER was developed  under a funding agreement with the Government of the United States of America and that the Government may have certain rights relative thereto. This Agreement shall be exclusive, to the extent allowed in accordance with Public Laws 96-517 and 98-620, in the LICENSED FIELD and is explicitly made subject to the Government's rights under such Government funding agreement and any applicable law or regulation. If there is a conflict between the Government funding agreement, applicable law or regulation and this Agreement, the terms of the Government funding agreement, applicable law or regulation shall prevail. LICENSEE agrees to take

 

any actions necessary to enable UNIVERSITY  to satisfy its obligations with the United States Government relating to the LICENSED SUBJECT MATTER. LICENSEE agrees, during the period of exclusivity of this license in the United States, that any LICENSED PRODUCT produced for Sale in the United States will be manufactured substantially in the United States.

 

  

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ARTICLE III

 

PAYMENTS

 

3.01           License Payments:   In consideration of rights granted by UNIVERSITY to LICENSEE under this

 

 Agreement, LICENSEE will pay UNIVERSITY the following:

 

	
  

	
a.

	
A license fee in the amount of [***], due and payable within 12 months of the effective date of this agreement;

 

	
  

	
b.

	
[***].; and

 

	
  

	
c.

	
[***].

 

	
  

	
d.

	
[***].

 

3.02           Sublicense Payments:   In consideration of rights granted by UNIVERSITY to LICENSEE under this Agreement, LICENSEE further agrees to pay UNIVERSITY the following after the execution of a sublicense hereunder:

 

	
  

	
a.

	
[***].

 

3.03           All payments to the UNIVERSITY  pursuant to this Agreement shall be paid in U.S. dollars. Conversion of foreign currency to U.S. dollars shall be made at the conversion rate existing in the United States (as reported in the in the Wall Street Journal) on the last working day of each royalty period.  Such payments shall be without deduction of exchange, collection or other charges.  Such payments shall be made payable to The Curators of the University of Missouri and shall be mailed to Office of Technology

 

Management & Industry Relations, 340a Bond Life Sciences Center, Columbia, MO 65211.

 

3.04           Unless stipulated otherwise, all payments due the University hereunder shall be made within thirty (30) days after the end of each calendar quarter.  Late payments shall be subject to an interest charge of one and one half percent (1 1/2%) per month.

 

3.05           Taxes and/or other governmental charges or fees shall not be levied on SALES ROYALTY payments made to UNIVERSITY and shall not be deducted from SALES ROYALTY payments due UNIVERSITY.

  

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ARTICLE IV 

 

REPORTING

 

4.01           Prior to signing this Agreement, LICENSEE has provided to UNIVERSITY a written plan (hereinafter "COMMERCIALIZATION PLAN") for LICENSED PRODUCT within the respective LICENSED FIELD and within the respective country or countries of the LICENSED TERRITORY  to be introduced by LICENSEE into commercial use. The COMMERCIALIZATION PLAN shall include, without limitation, 1) planned research and development activities, 2) milestones and evidence of sufficient financial resources to successfully implement the COMMERCIALIZATION PLAN and ensure that LICENSED PRODUCT will be kept reasonably available to the public, and 3) projection of Sales and proposed marketing efforts,  Such COMMERCIALIZATION PLAN is incorporated as Appendix B.

 

4.02           LICENSEE shall report to UNIVERSITY  the date of first Sale of LICENSED PRODUCTS  in each country of LICENSED TERRITORY  within thirty (30) days of occurrence.

 

4.03          Within 30 days after each March 31, June 30, September 30, and December 31following the first Sale of LICENSED PRODUCT,  whether Sold by LICENSEE or its SUBLICENSEE, if any exists, LICENSEE must deliver to UNIVERSITY a true and accurate written report, even if no payments are due UNIVERSITY, giving the particulars of the business conducted by LICENSEE and its SUBLICENSEE(s), during the preceding three (3) calendar months under this Agreement as are pertinent to calculating payments hereunder. This report will include at least:

 

a.      the quantities of LICENSED PRODUCT that it has produced;

 

b.      the total NET SALES;

 

c.      the calculation of royalties thereon;

 

d.      offsets of minimum annual royalties or other offsets allowed under this Agreement; and

 

e.      the total SALES ROYALTY computed and due UNIVERSITY.

 

This report shall identify the issued patents and/or patent applications under PATENT RIGHTS that cover the particular LICENSED PRODUCT being reported.  LICENSEE shall provide sufficient data for UNIVERSITY to verify the calculations, including gross Sales and allowable deductions to derive NET SALES figures, and any reasonable additional information UNIVERSITY  requires to determine LICENSEE's satisfaction of the reporting requirements hereunder or to clarify the information contained in reports provided by LICENSEE. LICENSEE shall provide such additional information within thirty (30) days of receiving a request from UNIVERSITY. Simultaneously with the delivery of each report, LICENSEE must pay to UNIVERSITY the amount, if any, due for the period of each report.

 

4.04           On or before each anniversary of the EFFECTIVE DATE, irrespective of having a first Sale or offer for Sale, LICENSEE must deliver to UNIVERSITY  a written annual report as to LICENSEE's (and any SUBLICENSEE's) efforts and accomplishments during the preceding year in diligently commercializing LICENSED PRODUCT in the LICENSED FIELD, including but not limited to, progress on research and development,  regulatory approvals, manufacturing, sublicensing, marketing and Sales and LICENSEE's (and, if applicable, SUBLICENSEE's) commercialization plans for the upcoming year. LICENSEE shall also provide any reasonable additional information UNIVERSITY requires to evaluate LICENSEE'S performance  under this Agreement.

  

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4.05           LICENSEE agrees to keep records for a period of three (3) years following termination of this Agreement showing the manufacturing, Sales, use, sublicense, and other disposition of LICENSED PRODUCT, Sold or otherwise disposed of under the license herein granted in sufficient detail to enable the royalties payable hereunder by LICENSEE to be determined. LICENSEE agrees to permit UNIVERSITY

 

or its representatives, at UNIVERSITY's expense, to periodically examine its books, ledgers, and records during regular business hours for the purpose of and to the extent necessary to verify any report required under this Agreement. If the amounts due to UNIVERSITY  are determined to have been underpaid, LICENSEE will pay the amount of such underpayment and interest on the amount of such underpayment, calculated in accordance with Section 3.05 with interest accruing from the date such payment was originally due the UNIVERSITY. Such examination is to be made by UNIVERSITY  at the expense of

 

UNIVERSITY, except in the event that the results of the audit reveal a discrepancy in UNIVERSITY's favor of five percent (5%) or more, then the audit fees shall be paid by LICENSEE.

 

ARTICLE V

 

DUE DILIGENCE

 

5.01           LICENSEE shall use reasonable efforts to effect introduction of the LICENSED PRODUCT into the commercial market as soon as practicable, consistent with sound and reasonable  business practices and judgment; thereafter, until the expiration of this Agreement, LICENSEE shall keep LICENSED PRODUCT reasonably available to the public.

 

5.02           UNIVERSITY shall have the right, at UNIVERSITY's sole discretion, to either terminate or render this license nonexclusive  in an individual LICENSED FIELD and/or individual country or countries within the LICENSED TERRITORY  if LICENSEE or its SUBLICENSEE:

 

(a) Has not within one (1) year of the EFFECTIVE DATE presented to and obtained UNIVERSITY'S approval, which approval shall not be unreasonably withheld, a new COMMERCIALIZATION PLAN for LICENSED PRODUCT within the respective LICENSED FIELD and within the respective country or countries of the LICENSED TERRITORY  not previously introduced by LICENSEE into commercial use, , or

 

(b) Has not within one (1)  year of the EFFECTIVE DATE received capital investments totaling two hundred fifty thousand dollars ($250,000),  or

 

(c) Has not within three (3) years initiated an animal study to further evaluate in vivo functionality of the TECHNOLOGY,  or

 

(d) Has not within 10 years submitted a regulatory filing for approval to commercialize products in any country within LICENSED TERRITORY.

 

  

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ARTICLE VI

 

LIABILITY, WARRANTIES AND INSURANCE

 

6.01       LICENSEE shall at all times during the term of this Agreement and thereafter,  indemnify, defend and hold UNIVERSITY, and their respective current or former Curators, officers, employees and affiliates (each individually  an "Indemnified Party," and collectively  the "Indemnified  Parties")  harmless from any judgments  and against  all claims  and expenses,  including  legal  expenses  and reasonable  attorneys'  fees, arising out of the death of or injury to any person or persons or out of any damage to property and against any other claim,  proceeding,  demand,  expense and liability of any kind whatsoever  resulting from 1) the development, manufacture, use, or Sale of LICENSED PRODUCT by LICENSEE, its subsidiaries, and SUBLICENSEEs, or 2) from the use by the end users of LICENSED PRODUCT, or 3) arising from any obligation  of LICENSEE  hereunder.  If any such claims or causes of action are made, Indemnified Parties shall be defended by counsel selected by LICENSEE, subject to each Indemnified  Party's approval, which shall not be unreasonably  withheld.  Each Indemnified Party reserves the right to be represented by its own counsel at its own expense.

 

6.02           At such time as any product, process, or service relating to, or developed pursuant to, this Agreement is being commercially distributed or Sold (other than for the purpose of obtaining regulatory approvals) by LICENSEE, a SUBLICENSEE, or a subsidiary or agent of LICENSEE, LICENSEE shall at its sole cost and expense, procure and maintain comprehensive general liability insurance in amounts not less than $1,000,000 per incident and naming the UNIVERSITY, its Curators, trustees, officers, agents, employees and affiliates,  as additional insureds.  Such commercial general liability insurance shall provide (i) product liability coverage and (ii) broad form contractual liability coverage for LICENSEE's indemnification under this Agreement. Such insurance will be considered primary as to any other valid and collectible insurance, but only as to acts of the named insured. Any carrier providing coverage shall have a minimum "Best" rating of "A-XII". The minimum amounts of insurance coverage required shall not be construed to create a limit of LICENSEE's liability with respect to its indemnification under this Agreement. LICENSEE shall maintain such commercial general liability insurance beyond the expiration or termination of this Agreement during (i) the period that any product, process, or service, relating to, or developed pursuant to this Agreement is being commercially distributed or Sold by LICENSEE, or its SUBLICENSEE, subsidiary or agent of LICENSEE and (ii) a reasonable period after the period referred to in (i) above which in no event shall be less than fifteen (15) years.

 

LICENSEE shall provide Workers' Compensation coverage for any employee of LICENSEE that visits UNIVERSITY  premises for matters relating to this Agreement.  In addition, Employers' Liability coverage shall be provided to such employee in an amount no less than $1,000,000 per occurrence. LICENSEE shall provide UNIVERSITY with written evidence of the insurance requirements of this Section 6.02 within thirty (30) days after execution of this Agreement.  LICENSEE shall provide UNIVERSITY with written notice at least fifteen (15) days prior to the cancellation, non-renewal or material change in such insurance; if LICENSEE does not obtain replacement insurance providing comparable coverage within such fifteen (15) day period, UNIVERSITY shall have the right to terminate this Agreement effective at the end of such fifteen (15) day period without notice or any additional waiting periods. It is agreed that the insurance required is required in the public interest and the UNIVERSITY  does not assume any liability for acts of LICENSEE, their officers, agents, and employees or of a SUBLICENSEE,  their officers, agents, and employees, in connection with the granting of this Agreement.

 

  

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LICENSEE shall require in any sublicense in which LICENSEE grants to a third party the right to make, have made, use, import, offer to Sell or Sell any LICENSED PRODUCT, provisions that provide the UNIVERSITY, its Curators, trustees, officers, agents, employees and affiliates, comparable protections as those provided the UNIVERSITY in this Article VI.

 

6.03           EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS LICENSE, UNIVERSITY MAKES NO REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE, AND VALIDITY OF PATENT RIGHTS CLAIMS, ISSUED OR PENDING, OR THAT THE MANUFACTURE, USE, OR SALE OF THE LICENSED SUBJECT MATTER WILL NOT INFRINGE ANY PATENT, COPYRIGHT, TRADEMARK, OR OTHER RIGHTS.

 

ARTICLE VII

 

DOMESTIC AND FOREIGN PATENT FILING AND MAINTENANCE

 

7.01           LICENSEE shall reimburse UNIVERSITY for all out-of-pocket expenses UNIVERSITY has incurred prior to the execution of this Agreement for the preparation, filing, prosecution  and maintenance of PATENT RIGHTS (hereinafter  "PATENT  EXPENSES")  within one year of execution of this Agreement. All PATENT EXPENSES UNIVERSITY incurs during the first year following the execution of this Agreement shall be reimbursed by LICENSEE within two (2) years following the execution of this agreement.  PATENT EXPENSES incurred by UNIVERSITY  beginning in the second year following execution of this agreement shall be reimbursed by LICNESEE on an ongoing basis following receipt of invoice by UNIVERSITY for such PATENT EXPENSES.  All reimbursements for PATENT EXPENSES shall be received as a separate payment apart from any royalties or other revenues owed UNIVERSITY. Late payment of invoices of PATENT EXPENSES received by LICENSEE from UNIVERSITY shall be subject to interest charges of one and one-half percent (1 1/2%) per month.  A payment under this Section 7.01 is considered late if payment is not received by UNIVERSITY within thirty (30) days from

 

LICENSEE's receipt of an invoice from UNIVERSITY.

 

7.02           UNIVERSITY shall be solely responsible for the preparation, filing, prosecution  and maintenance of any and all U.S. and foreign patent applications and patents included in PATENT RIGHTS mutually agreed upon by UNIVERSITY and LICENSEE.  UNIVERSITY shall first consult with LICENSEE as to the preparation, filing, prosecution, and maintenance of such patent applications and patents and shall furnish to LICENSEE copies of documents relevant to any such preparation, filing, prosecution or maintenance.

 

  

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7.03           If LICENSEE elects not to continue paying future PATENT EXPENSES, LICENSEE shall notify UNIVERSITY immediately in writing, but in no event less than sixty (60) days prior to any deadline which should or must be met in order to maintain the patent or patent application in force (a "deadline" includes a date by which an action must be taken to avoid payment of a late fee).  Such notice by LICENSEE shallconstitute a waiver of and relinquishment of all of LICENSEE's rights under this Agreement related to such patent or patent application.

 

ARTICLE VIII

 

INFRINGEMENT

 

8.01           LICENSEE, at its expense, shall have the right to enforce PATENT RIGHTS against infringement by third parties and it is entitled to retain the recovery from such enforcement, including any cash or other consideration received by way of judgment, settlement or compromise (hereinafter "RECOVERY"). However, any RECOVERY,  less direct out-of-pocket legal expenses incurred by LICENSEE for such enforcement, shall be considered lost Sales and LICENSEE shall pay UNIVERSITY a SALES ROYALTY on such lost Sales. Before LICENSEE commences a formal legal proceeding with respect to any infringement of PATENT RIGHTS, LICENSEE shall consult with UNIVERSITY regarding the potential effects such legal proceeding may have on the public interest. LICENSEE shall keep UNIVERSITY informed on all actions taken by LICENSEE in its enforcement against an infringer and shall furnish to UNIVERSITY copies of all documents related thereto.

 

8.02           In any infringement suit or dispute, UNIVERSITY agrees to cooperate reasonably with LICENSEE. At the request and expense of LICENSEE, the UNIVERSITY will permit access to all relevant personnel, records, papers, information, samples, specimens, etc., during regular business hours on UNIVERSITY  premises as reasonably necessary for LICENSEE to vigorously conduct such proceeding. In the event that travel is required, LICENSEE agrees to reimburse UNIVERSITY for such travel.

 

8.03           In the event that LICENSEE elects not to exercise its right to prosecute an infringement of the PATENT RIGHTS pursuant to the above paragraphs, UNIVERSITY may do so at its own expense, controlling such action and retaining all RECOVERY therefrom. LICENSEE agrees to cooperate reasonably with UNIVERSITY in any such infringement suit or dispute.

 

  

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ARTICLE IX

 

CONFIDENTIALITY

 

9.01           LICENSEE agrees that all patent prosecution information and all other information contained in documents marked "confidential"  received from UNIVERSITY shall (i) be received in strict confidence, (ii) be used only for the purposes of this Agreement, and (iii) not be disclosed by LICENSEE, its employees, agents, successors or assigns,  without the prior written consent of UNIVERSITY, except to the extent that the LICENSEE can establish competent written proof that such information:

 

a.      was in the public domain at the time of disclosure;

 

b.      later became part of the public domain through no act or omission of LICENSEE, its employees, agents, successors or assigns

 

c.      was lawfully disclosed to LICENSEE by a third party having the right to disclose it;

 

d.    was already known by LICENSEE at the time of disclosure;

 

e.      was independently  developed by LICENSEE; or f.is required by law or regulation to be disclosed.

 

9.02            LICENSEE's obligation of confidence hereunder shall be fulfilled by using at least the same degree of care with UNIVERSITY's confidential information as LICENSEE uses to protect its own confidential information, but not less than reasonable care. This obligation shall exist during the term of this Agreement and for a period of five (5) years thereafter.

 

ARTICLE X

 

TERM AND TERMINATION

 

10.01         This Agreement shall become effective upon the EFFECTIVE DATE and, unless sooner terminated in accordance with any of the provisions herein, shall remain in full force in the LICENSED  TERRITORY during the life of the last to expire patents under PATENT RIGHTS.

 

10.02         In the event that either Party defaults or breaches any of the provisions of this Agreement, the other Party shall have the right to terminate this Agreement by giving written notice to the defaulting Party; provided, however, that if the said defaulting Party cures said default within thirty (30) days after said notice shall have been given, this Agreement shall continue in full force and effect.  The failure on the part of either of the Parties hereto to exercise or enforce any right conferred upon it hereunder shall not be deemed to be a waiver of any such right nor operate to bar the exercise or enforcement thereof at any time or times thereafter.

 

10.03         Upon termination of this Agreement, LICENSEE's interest in sublicenses granted by it under this Agreement shall at UNIVERSITY's option, terminate or be assigned to UNIVERSITY. LICENSEE shall make provision for the UNIVERSITY's rights under the preceding sentence to be included in all sublicenses granted by it under this Agreement.

 

10.04         In the event that LICENSEE shall become insolvent, shall make an assignment for the benefit of creditors, or shall have a petition in bankruptcy filed for or against it, this Agreement shall automatically terminate.

  

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10.05         Termination of this Agreement for any reason shall not release either Party from any obligation theretofore accrued. Articles III, VI, and IX and Sections 4.03, 4. 05, 10.03, 11.07, and 11.13 shall survive the termination of this Agreement.

 

ARTICLE XI

 

GENERAL

 

11.01         Prior to the issuance of patents under PATENT RIGHTS, LICENSEE agrees to mark LICENSED PRODUCTS (or their containers or labels) Sold by LICENSEE, or a SUBLICENSEE, under the license granted in this Agreement with the words "Patent Pending," and following the issuance of one or more patents under PATENT RIGHTS, with the words "Patent No.  "

 

11.02         LICENSEE agrees to comply with all applicable federal, state, and local laws and regulations. In particular, it is understood and acknowledged that the transfer of certain commodities and technical data is subject to United States laws and regulations controlling the export of such commodities  and technical data, including all Export Administration  Regulations of the United States Department of Commerce. These laws and regulations among other things, prohibit or require a license for the export of certain types of technical data to certain specified countries. LICENSEE hereby agrees and gives written assurance that it will comply with all United States laws and regulations controlling the export of commodities and technical data, that it will be solely responsible for any violation of such by LICENSEE, its AFFILIATE, or SUBLICENSEES, and that it will defend and hold UNIVERSITY harmless in the event of any legal action of any nature occasioned by such violation.

 

11.03         LICENSEE agrees not to identify UNIVERSITY  in any promotional advertising or other promotional materials to be disseminated to the public or any portion thereof or to use the name of any UNIVERSITY faculty member, employee, or student or any trademark, service mark, trade name, or symbol of UNIVERSITY, without UNIVERSITY'S  and prior written consent.

 

11.04         Except in connection with the sale of substantially all of LICENSEE's assets to a third party, this Agreement may not be assigned by LICENSEE without the prior written consent of UNIVERSITY, which will not be unreasonably withheld.

 

11.05         If LICENSEE desires UNIVERSITY participation in performing research and development activities directed towards PATENT RIGHTS, negotiation for such assistance shall be separate and apart from this Agreement, and shall be performed according to UNIVERSITY'S  procedures related to research grant and contract activities.

  

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11.06         In the event LICENSEE wishes to engage the inventors as consultants, such an arrangement shall be separate and apart from this Agreement, but shall be in keeping with UNIVERSITY'S policy on consulting and ownership of intellectual property developed by UNIVERSITY employees.

 

11.07         Any payment, notice, or other communication given ·under this Agreement (except for correspondence relating to patent filing, prosecution and/or maintenance matters under Article VII herein) shall be in writing and shall be deemed delivered when sent by certified first class mail, registered mail, or overnight courier, or by facsimile, provided that a copy of such facsimile is promptly sent by certified first class mail, registered or overnight courier, addressed to the Parties as follows (or at such other addresses as the Parties may notify each other in writing):

 

If to UNIVERSITY:

 

Office of Technology Management & Industry Relations

340A Bond Life Sciences Center

Columbia, MO  65211

Attn.: Director

 

If to LICENSEE: Organovo

 

5871 Oberlin Dr. Suite 150

San Diego, CA  92121

Attn.: CEO

 

11.08         This Agreement constitutes the entire and only agreement between the Parties for LICENSED SUBJECT MATTER  and all other prior negotiations, representations, agreements, and understandings are superseded hereby. No agreements altering or supplementing the terms hereof may be made except by a written document signed by both Parties.

11.09         None of the terms, covenants, and conditions of this Agreement can be waived except by the written consent of the Party waiving compliance.

 

  

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11.10         A failure by one of the Parties to this Agreement to assert its rights for or upon any breach or default of this Agreement shall not be deemed a waiver of such rights nor shall any such waiver be implied from acceptance of any payment.  No such failure or waiver in writing by any one of the Parties hereto with respect to any rights, shall extend to or affect any subsequent breach or impair any right consequent thereon.

 

11.11         If any sentence, paragraph, clause or combination of the same is found by a court of competent jurisdiction to be in violation of any applicable law or regulation, or is unenforceable or void for any reason whatsoever, such sentence, paragraph, clause or combinations of the same shall be severed from the Agreement and the remainder of the Agreement shall remain binding upon the Parties.

11.12         The headings of the paragraphs of this Agreement are inserted for convenience only and shall not constitute a part hereof.

 

11.13         This Agreement shall be construed, interpreted, and applied in accordance with the laws of the State of Missouri.  Any action to enforce the provisions of the Agreement shall be brought in a court of competent jurisdiction and proper venue in the State of Missouri.

 

IN WITNESS WHEREOF,  the Parties hereto have executed this Agreement in duplicate originals by their duly authorized officers or representatives.

 

	THE CURATORS OF THE UNIVERSITY OF MISSOURI	 	 	LICENSEE	 
	 	 	 	 	 
	

BY: /s/Christopher M. Fender

	 	 	

BY:/s/Keith Murphy

	 
	
Name: Christopher M. Fender

	 	 	

NAME: Keith Murphy

	 
	
TITLE:  Director, OTMIR

	 	 	
TITLE:  Chief Executive Officer

	 
	
 DATE : March 12, 2010

	 	 	 DATE: March 17, 2010	 

 

  

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EXHIBIT A

 

US Patent Application No. 61/337,037 titled "ENGINEERED BIOLOGICAL NERVE GRAFT, FABRICATION AND APPLICATION THEREOF"

 

 

 

15f8k0212ex10xxv_organovo.htm

Exhibit 10.25

 

	
 

LICENSE  AGREEMENT 

 

BETWEEN

 

 

CLEMSON UNIVERSITY

RESEARCH FOUNDATION

 

AND

 

Organovo, Inc.

 

 

CURF #01-025

 

Patent# 7,051,654

 

Entitled "Ink-Jet Printing of Viable Cells"

 

CURF License Agreement #                                

 

 

 

  

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License Agreement between the Clemson University Research Foundation and Organovo, Inc.

 

This Agreement is made and entered into by and between the Clemson University Research Foundation, a corporation duly organized and existing under the laws of South Carolina and having its principal office at 91 Technology Drive, AMRL Building, Anderson, South Carolina 29625 (hereinafter referred to as "CURF") and Organovo, Inc., a corporation duly organized under the laws of Delaware and having its principal office at 5871 Oberlin Dr., Suite 150, San Diego, CA 92121 (hereinafter referred to as "LICENSEE"). CURF and LICENSEE shall herein also be referred to collectively as "PARTIES" or individually as "PARTY."

 

WITNESSETH

 

WHEREAS, Clemson University (hereinafter referred to as "UNIVERSITY") is the assignee of certain TECHNOLOGY (as later defined herein) and PATENT RIGHTS (as later defined herein) developed at UNIVERSITY;

 

WHEREAS, CURF is organized and operates exclusively for the benefit of, to perform the functions of or to carry out specific purposes of UNIVERSITY, including but not limited to promoting and encouraging scientific research at UNIVERSITY and transferring and licensing technology developed at UNIVERSITY. CURF is responsible for the management and protection of and is authorized to enter into license agreements for intellectual property developed at UNIVERSITY;

 

WHEREAS, CURF and UNIVERSITY desire to have TECHNOLOGY and PATENT RIGHTS developed and commercialized to benefit the public and is willing to grant a license hereunder; and

 

WHEREAS, LICENSEE desires to obtain an exclusive royalty -bearing license to use TECHNOLOGY, to practice under PATENT RIGHTS, and to manufacture, use and sell in the commercial market the products made in accordance therewith upon the terms and conditions hereinafter set forth.

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, the PARTIES hereto agree as follows:

ARTICLE 1 -DEFINITIONS

 

	
1.1

	
"CONFIDENTIAL     INFORMATION"     means     all     information    pertaining    to TECHNOLOGY and /or  PATENT RIGHTS   unless  and  until  the  TECHNOLOGY  and any   pending   patent   applications  under   the   PATENT   RIGHTS  are  described    in  or encompassed  by  a  published   U .S.  or foreign  patent  application or  issued  patent.  This information shall be deemed confidential.

 

	
1.2

	
"EFFECTIVE DATE" means the date of the last signature of an authorized officer or representative of the PARTIES affixed hereto below.

 

	
1.3 

	
"FIELD OF USE" means all fields

 

	
1.4 

	
"GOVERNMENT" means the United States Government or any agency thereof .

 

  

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License Agreement between the Clemson University Research Foundation and Organovo, Inc.

 

	
1.5 

	
"INVENTOR(S)" means and includes Thomas Boland, Tao Xu, William C. Wilson Jr.

 

	

1.6

	

"LICENSED PRODUCT" or "LICENSED PRODUCTS" means any PROCESS or PRODUCT, or any combination thereof, made, having been made, sold, used, leased, provided and/or imported by LICENSEE or its SUBLICENSEES.

 

	

1.7

	

[***].

 

	

1.8

	

"NON-COMMERCIAL RESEARCH PURPOSES" means the use or practice of the licensed TECHNOLOGY or PATENT RIGHTS for academic, research and all other not­ for-profit or scholarly purposes.

 

	

1.9

	

"PATENT RIGHTS" shall mean (a) any U.S. patents and/or patent applications (including provisional applications) listed in Appendix A; (b) any continuations, divisions, and claims of U.S. continuations-in-part thereof; (c) any patents which issue on any of the foregoing applications including patents resulting from extensions, reissues or re-examinations thereof; and (d) any and all foreign patents and/or patent applications resulting from or corresponding to the U.S. patents and/or patent applications described in (a), (b), or (c) above, which will be automatically incorporated in and added to this Agreement and shall periodically be added to Appendix A.

 

	

1.10

	

"PROCESS" or "PROCESSES" means any process, procedure or method that is covered in whole or in part by a VALID CLAIM contained in PATENT RIGHTS.

 

	

1.11

	

"PRODUCT" or "PRODUCTS" means any product or part thereof that is (a) covered in whole or in part by a VALID CLAIM contained in PATENT RIGHTS; or (b) is manufactured by using a PROCESS.

 

	
1.12 

	
"SERVICE" means any service that incorporates or uses PRODUCTS or PROCESSES.

 

	

1.13

	

"SUBLICENSEE" means a third party to which LICENSEE has granted a sublicense in accordance with the terms of this Agreement to make, have made, use, lease, sell, import and/or provide LICENSED PRODUCTS.

 

	
1.14 

	
"TECHNOLOGY" means the invention described in CURF Ref. 01-025, dated 8118/2000, entitled "Protein Jet Printing onto Solid Substrata."

 

	
1.15 

	
"TERRITORY" means worldwide

 

	

1.16

	

"VALID CLAIM" means (a) a claim of an issued, unexpired patent which has not been held invalid or unenforceable by a final, un-appealable decision of a court or other governmental agency of competent jurisdiction and which has not been admitted to be invalid through reissue, disclaimer or otherwise; or (b) any claim of a pending patent application.

 

  

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License Agreement between the Clemson University Research Foundation and Organovo, Inc.

 

ARTICLE 2 -GRANT

 

	

2.1

	

CURF hereby grants to LICENSEE, subject to the terms and conditions of this Agreement, the exclusive right and license for the FIELD OF USE in the TERRITORY to use TECHNOLOGY, to practice under PATENT RIGHTS, and to make, have made, use, lease, sell, provide and/or import LICENSED PRODUCTS until the end of the term for which PATENT RIGHTS are granted, all to the extent not prohibited by other patents, unless terminated earlier hereunder.

 

	

2.2

	

The grant in Section 2.1 shall be subject to, restricted by and non-exclusive with respect to:

 

	

(a)

	

The reserved rights of CURF, for itself and for UNIVERSITY, to practice the licensed PATENT RIGHTS and use TECHNOLOGY for any NON-COMMERCIAL RESEARCH PURPOSES, including sponsored research and collaborations, and the right to extend these reserved rights to INVENTOR(S), any non-profit academic or research institution or organization, and any successor(s) of CURF or UNIVERSITY. LICENSEE agrees that, notwithstanding any other provisions of this Agreement, it hasno right to enforce the licensed PATENT RIGHTS against CURF, UNIVERSITY, or any institution or INVENTOR(S) that are granted rights m accordance with this Section 2.2.

 

	

(b)

	

Any non-exclusive license of TECHNOLOGY that CURF is required by law or regulation to grant to the GOVERNMENT or to a foreign country pursuant to an existing or future treaty with the United States of America.

 

	

(c)

	

Any rights of GOVERNMENT or any restrictions or obligations that may be imposed for any TECHNOLOGY or PATENT RIGHTS developed with the support of GOVERNMENT as provided in United States laws and regulations and in its contract(s) with CURF, UNIVERSITY and/or any of the INVENTOR(S).

 

	

2.3

	

The provisions of this Agreement shall not be construed in such a manner as to restrict the ability of CURF or that of its licensees or assigns to use TECHNOLOGY or to practice under PATENT RIGHTS outside of the FIELD OF USE or in the FIELD OF USE outside TERRITORY for any commercial or non-commercial purposes.

 

	

2.4

	

LICENSEE agrees that the right of publication of TECHNOLOGY shall reside with UNIVERSITY. CURF shall use its best efforts to provide a copy of each proposed publication to LICENSEE for pre-publication review at least thirty (30) days before submission to a publisher. If LICENSEE identifies potentially patentable subject matter in any such publication, and so notifies CURF, then CURF shall notify INVENTOR(S) and shall use its best efforts to delay submission and publication for up to a combined maximum of ninety (90) days or until a patent application has been filed for such subject matter, whichever occurs first. Such review will in no way be construed as a right to restrict such publication.

 

  

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License Agreement between the Clemson University Research Foundation and Organovo, Inc.

 

	

2.5

	

This Agreement, unless terminated earlier pursuant to Article 13, shall terminate on the expiration of the last to expire patent under PATENT RIGHTS, whereupon the exclusive licenses granted hereunder shall be fully paid and LICENSEE and SUBLICENSEES shall be free to develop, make, have made, use, sell, have sold, practice or provide LICENSED PRODUCTS without further duties or responsibilities to CURF.

 

	

2.6

	

LICENSEE shall have the right to enter into sublicensing agreements for the rights, privileges and license granted hereunder with respect to the use of TECHNOLOGY and the practice of PATENT RIGHTS within TERRITORY and in the FIELD OF USE provided that LICENSEE is not in default of its obligations hereunder. Upon any termination of this Agreement, SUBLICENSEE's rights shall also terminate, subject to Section 13.8 hereof. No sublicense shall relieve LICENSEE of any of its obligations under this Agreement. LICENSEE has no obligation to enter into any such sublicensing agreement.

	
2.7 

	
LICENSEE agrees that any and all sublicenses granted by it shall be subject to thisAgreement in all respects and each such sublicense shall:

 

	
(a)

	
Include a requirement that the SUBLICENSEE use its best efforts to bring the subject matter of the sublicense into commercial use as quickly as is reasonably possible;

 

	

(b)

	

Include copies of Articles 2, 5, 7, 8, 9, 10, 11, 12, 13 and 15 of this Agreement and shall provide that the obligations of LICENSEE to CURF contained in such Articles shall be binding upon the SUBLICENSEE as if it were a party to this Agreement;

 

	

(c)

	

Prohibit further sublicensing by the SUBLICENSEE; and

 

	

(d)

	

Contain a provision stating that CURF shall be an intended third-party beneficiary of such sublicense agreement.

 

	

2.8

	

LICENSEE agrees to forward to CURF a copy of any and all sublicenses (including, without limitation, all amendments and addenda) granted hereunder within thirty (30) days of execution by the parties thereto.

 

	

2.9

	

LICENSEE shall not receive from SUBLICENSEES anything of value in lieu of cash payments as consideration for any sublicense under this Agreement without the express prior written permission of CURF, such permission shall not be unreasonably withheld.

 

	

2.10

	

LICENSEE's failure to perform in accordance with any and all of these Sections relating to sublicenses with regard to a particular sublicense shall render such attempted sublicense void, shall constitute a material breach of this Agreement and shall be grounds for CURF to terminate this Agreement pursuant to Section 13.5 herein.

 

	

2.11

	

CURF shall have no obligation to provide LICENSEE with technical information concerning TECHNOLOGY or PATENT RIGHTS or to provide technical assistance in the development or commercialization of TECHNOLOGY or PATENT RIGHTS. In the event that LICENSEE requires technical assistance with respect to the activities conducted by LICENSEE pursuant to this Agreement, obtaining such technical assistance (whether from the INVENTOR(S) or otherwise) shall be the responsibility of LICENSEE and at the expense of LICENSEE.

 

  

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License Agreement between the Clemson University Research Foundation and Organovo, Inc.

 

	
2.12

	
The license granted hereunder shall not be construed to confer any rights upon LICENSEE by implication, estoppel or otherwise as to any technology not specifically set forth in Appendix A.

 

ARTICLE 3 - DILIGENCE

 

	

3.1

	

LICENSEE shall use its best efforts to bring one or more LICENSED PRODUCTS to market through a thorough, vigorous and diligent program for exploitation of PATENT RIGHTS and to continue active, diligent marketing efforts for one or more LICENSED PRODUCTS throughout the life of this Agreement.

 

	
3.2

	
LICENSEE shall adhere to the following performance milestones:

 

	

(a)

	

LICENSEE shall deliver to CURF within thirty (30) days of the EFFECTIVE DATE of this Agreement a commercialization plan showing the amount of money, number and kind of personnel, and time budgeted and planned for each phase of development of LICENSED PRODUCT.

 

	

(b)

	

[***].

 

	

(c)

	

[***].

 

	

(d)

	

[***].

 

ARTICLE 4 -CONSIDERATION

 

	
4.1 

	
For the rights, privileges and license granted hereunder, LICENSEE shall pay to CURFuntil expiration or termination of this Agreement the following:

 

	
(a)

	
A License Issue [***].

 

The License Issue Fee shall be payable in 4 quarterly payments according to the schedule here described.

 

	
i.

	
The first payment [***] USD) will be due immediately upon the EFFECTIVE DATE

 

  

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License Agreement between the Clemson University Research Foundation and Organovo, Inc.

 

	
ii.

	
The second payment [***] will be due on or before August 31st 2011.

 

	
iii.

	
The third payment will be will be due on or before the December 31st, 2011.

 

	
iv

	
. The final payment will be due on or before April 31st, 2012.

 

	

(b)

	

LICENSEE and CURF agree to execute the convertible equity promissory note with a principal value of [***], attached hereto as APPENDIX D.

 

	
(c)

	
Running Royalties in the amount equal to a percentage of NET REVENUES

 

	

i.

	

For annual NET REVENUES [***] of NET REVENUES

 

	

ii.

	

For annual NET REVENUES [***] of NET REVENUES

	
(d)

	
An Annual Minimum Royalty in the amount here described during the term of thisAgreement.

 

	

i.

	

An Annual Minimum Royalty in the amount of [***] payable on or before January 1, 2014.

 

	

ii.

	

An Annual Minimum Royalty in the amount of [***]payable on and on or before January 1, 2015

 

	

iii.

	

An Annual Minimum Royalty per year in the amount of [***] pay able on January 1, 2016, and on or before January 1 of each year thereafter during the term of this agreement

 

AnnualMinimum Royalties paid each year shall be creditable against Running Royalties (defined above) earned and payable in the same calendar year. Annual Minimum Royalties paid in excess of Running Royalties earned and payable in a given calendar year shall not be creditable against Running Royalties in future years.

 

	

(e)

	

In addition to Running Royalties, [***] received from third parties, including SUBLICENSEES, in consideration for sublicensing rights to LICENSED PRODUCTS.

 

	

4.2

	

Any amount due to CURF as a result of each LICENSED PRODUCT made, having been made, used, sold, rented, leased, imported or provided pursuant to the license rights granted by this Agreement shall accrue at the time LICENSEE or SUBLICENSEE leases, bills, invoices, ships or receives payment, whichever shall occur first, for such

 

  

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License Agreement between the Clemson University Research Foundation and Organovo, Inc.

 

LICENSED PRODUCT. All amounts accrued for the benefit of CURF shall be deemed held in trust for the benefit of CURF until payment of such amounts is made to CURF.

 

	

4.3

	

All payments due hereunder shall be paid in full, without deduction of taxes or other fees that may be imposed, except as otherwise provided in Section 1.7.

 

	

4.4

	

No multiple royalties shall be payable because any LICENSED PRODUCT, its manufacture, use, lease, provision or sale are or shall be covered by more than one issued patent or patent application in PATENT RIGHTS licensed under this Agreement.

 

	

4.5

	

Amounts payable to CURF hereunder shall be paid in United States dollars in Anderson, South Carolina, or at such other place as CURF may reasonably designate consistent with the laws and regulations controlling in any foreign country. If any currency conversion shall be required in connection with the payment of royalties hereunder, such conversion shall be made using the exchange rate reported in the Wall Street Journal on the last business day of the calendar reporting period to which such payments relate.

 

	
4.6

	
LICENSEE's failure to make any payment under this Article 4 shall be grounds forCURF to terminate this Agreement pursuant to Section 13.3.

 

	

4.7

	

Any undisputed amount owed by LICENSEE to CURF shall, if overdue, bear interest at a rate of five percent (5%) after sixty (60) days of the due date specified in the Agreement.. LICENSEE shall also pay all reasonable collection costs incurred by CURF in obtaining payment of past due amounts, including reasonable attorney's fees. The payment of such interest shall not foreclose CURF from exercising any other rights it may have as a consequence of the lateness of any payment.

 

ARTICLE 5 - REPORTS AND RECORDS

 

	
5.1

	
LICENSEE shall submit a Licensee Information Form attached hereto as Appendix B within ten (10) days of the Effective Date of this Agreement and shall verify and update the information annually within 30 days of notice from CURF.

 

	

5.2

	

No later than sixty (60) days after December 31 of each calendar year, LICENSEE shall provide to CURF a written annual progress report describing progress by LICENSEE and any SUBLICENSEES on research and development, regulatory approvals, manufacturing, sublicensing, marketing, and sales during the preceding twelve (12) month period ending December 31 and plans for the forthcoming year. If multiple technologies are covered by the license granted hereunder, the progress report shall provide the information set forth above for each technology . LICENSEE also shall provide any additional data CURF reasonably requires to evaluate LICENSEE's performance and compliance with the terms of this Agreement.

 

	

5.3

	

LICENSEE, within sixty (60) days after June 30 and December 31 of each year, shall submit to CURF a Royalty Report attached hereto as Appendix C. The first such Royalty Report shall be due within sixty (60) days after December 31st, 2011 and shall include all information since the Effective Date of this Agreement. With each Royalty Report submitted, LICENSEE shall pay to CURF the royalties due and payable under this Agreement. If no royalties shall be due, LICENSEE shall so report.

 

  

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License Agreement between the Clemson University Research Foundation and Organovo, Inc.

 

	
5.4

	
LICENSEE, within ninety (90) days following the close of its fiscal year, shall provide to CURF LICENSEE's financial statements for the preceding fiscal year including, at a minimum, a balance sheet and income statement.

 

	

5.5

	

LICENSEE shall keep full, true and accurate books of account containing all particulars that may be necessary for the purpose of showing the amount payable to CURF hereunder.The books of account shall be kept at LICENSEE's principal place of business or the principal place of business of the appropriate division of LICENSEE to which this Agreement relates. The books and the supporting data shall be open at all reasonable times for five (5) years following the end of the calendar year to which they pertain to the inspection of CURF or its agents for the purpose of verifying LICENSEE's royalty statement or compliance in other respects with this Agreement. Should such inspection lead to the discovery of a shortage equal to or greater than five percent (5%) of the total amount due in the period under audit, LICENSEE shall promptly reimburse CURF for the full cost of such inspection, the shortage and an interest of five percent (5%) on any shortage due.

 

ARTICLE6 -PATENT PROSECUTION

 

	

6.1

	

CURF shall , be responsible for the maintenance of any and all applications and patents included in the PATENT RIGHTS. CURF shall consult with LICENSEE as to the maintenance of such applications and patents and shall furnish to LICENSEE copies of documents relevant to any such maintenance. CURF and LICENSEE shall cooperate fully in determining, in a timely manner, the countries in which patent protection shall be maintained. Each PARTY shall provide to the other prompt notice as to all matters that come to its attention and which may affect the maintenance of any such patents. In particular, LICENSEE will immediately notify CURF if LICENSEE or a SUBLICENSEE does not qualify as a "small entity" as provided by the United States Patent and Trademark Office.

 

	

6.2

	

Payment of all fees and costs relating to the preparation, filing, prosecution and maintenance of PATENT RIGHTS shall be reimbursed by the LICENSEE, whether such fees and costs were incurred before or after the date of this Agreement. Such reimbursements for expenses accrued prior to the EFFECITVE DATE, as detailed in APPENDIX E are due according to the following schedule:

 

	
(a)

	
Fifty percent (50%) of patent fees related to PATENT RIGHTS accrued prior to the EFFECTIVE DATE are due on the EFFECTIVE DATE.

 

	
(b)

	
The remaining fifty percent (50%) of patent fees related to PATENT RIGHTSaccrued prior to the EFFECTIVE DATE are due on or before June 301 2011.

 

Suchreimbursements for expenses accrued on or after EFFECTIVE DATE shall be made within thirty (30) day of receipt of invoice from CURF, and, if overdue, shall be subjectto late charges as provided in Section 4.7. The exact amount of such expenses accrued to date are specified in APPENDIX E. No additional costs beyond that should be born without written approval of LICENSEE, except maintenance fees in existing jurisdictions, or which an estimated forward projection should be provided.

 

  

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6.3

	
In the event LICENSEE elects to discontinue maintenance of any patent issued thereon, or if LICENSEE elects not to continue to pay the patent expenses under the PATENT RIGHTS, in any country, LICENSEE shall notify CURF no later than thirty (30) days prior to any applicable statutory bar date or response due date. From and after the date of such notice:

 

	

(a)

	

LICENSEE and its SUBLICENSEES shall have no rights, privileges or license in the specified country(ies) under this Agreement;

 

	

(b)

	

LICENSEE shall have no responsibility for expenses incurred in preparation, filing, prosecution and maintenance of PATENT RIGHTS in the specified country(ies);

 

	
(c)

	
LICENSEE agrees that it will not thereafter manufacture, use, sell or provideLICENSED PRODUCTS in the specified country(ies); and

 

	
(d)

	
The specified country(ies) will be automatically deleted from TERRITORY.

 

	

6.4

	

All patent applications and issued patents contained in PATENT RIGHTS shall be owned by UNIVERSITY or CURF.

 

ARTICLE 7- INFRINGEMENT

 

	

7.1

	

Each PARTY shall inform the other PARTY promptly in writing of any alleged infringement of PATENT RIGHTS by a third party and any available evidence thereof.

 

	

7.2

	

During the term of this Agreement, LICENSEE shall have the first right, but shall not be obligated to prosecute at its own expense, all infringements or misappropriations of TECHNOLOGY. LICENSEE may, for such purposes, include CURF as party plaintiff, if necessary, without expense to CURF. No settlement, consent judgment or other voluntary final disposition of the suit may be entered into without the consent of CURF, which consent shall not unreasonably be withheld. The total cost of any such infringement or misappropriation action commenced or defended solely by LICENSEE shall be borne by LICENSEE, and LICENSEE shall keep any recovery or damages for past infringement or misappropriation derived therefrom subject to the payment of a percentage on any recoveries net of costs and expenses as an "other payment" in accordance with Section 4. l(e). LICENSEE shall indemnify CURF against any order for costs that may be made against CURF in such proceedings.

 

	

7.3

	

If within three (3) months after having been notified of any alleged infringement, LICENSEE is unsuccessful in persuading the alleged infringer to desist and has not brought or is not diligently pursuing an infringement action or if LICENSEE notifies CURF at any time prior thereto of its intention not to bring suit against any alleged infringer, then, and in those events only, CURF shall have the right, but shall not be obligated,to prosecute at its own expense all infringements or misappropriations of TECHNOLOGY and CURF may, for such purposes, include LICENSEE as a party plaintiff in any such suit, without expense to LICENSEE. The total cost of such infringement action commenced or defended solely by CURF shall be borne by CURF and CURF shall keep any recovery or damages for past infringement derived therefrom.

 

  

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License Agreement between the Clemson University Research Foundation and Organovo, Inc.

 

	

7.4

	

In the event that LICENSEE shall undertake the enforcement and/or defense of the TECHNOLOGY by litigation, LICENSEE may withhold up to fifty percent (50%) of the payments otherwise due CURF under Article 4 hereunder and apply the same toward payment of up to half of LICENSEE's expenses, including reasonable attorney 's fees, in connection therewith. LICENSEE shall modify the Royalty Report form to reflect any withholdings. Any recovery of damages by LICENSEE for each such suit shall be applied first in satisfaction of any unreimbursed expenses and legal fees of LICENSEE relating to such suit, and next toward reimbursement of CURF for any payments under Article 4 past due or withheld and applied pursuant to this Section 7.4. LICENSEE shall keep the balance remaining from any such recovery subject to the payment of a percentage as an "other payment" in accordance with Section 4.1(e).

 

	

7.5

	

In any infringement or misappropriation suit that either PARTY may institute to enforce the PATENT RIGHTS pursuant to this Agreement, the other PARTY hereto shall, at the request and expense 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, specimens and the like.

 

	

7.6

	

LICENSEE, during the exclusive period of this Agreement, shall have the sole right in accordance with the terms and conditions herein to sublicense any alleged infringer for the FIELD OF USE for future use of the PATENT RIGHTS. Any upfront fees as pm1 of such a sublicense shall be treated pursuant to Article 4.

 

ARTICLE 8 - LIABILITY AND INDEMNIFICATION

 

	

8.1

	

LICENSEE shall at all times during the term of this Agreement and thereafter, indemnify, defend and hold INVENTOR(S) and CURF, UNIVERSITY, and their trustees, directors, officers, employees and affiliates harmless against all claims, proceedings, demands and liabilities of any kind whatsoever, including legal expenses and reasonable attorney's fees related to third party claims, arising out of injury, including death, to any person or persons or out of any damage to property, resulting from the production, manufacture, sale, use, lease, consumption, provision or advertisement of the LICENSED PRODUCTS or arising from any obligation of LICENSEE hereunder, excepting only claims that PATENT RIGHTS infringe third party intellectual property.

 

	

8.2

	

LICENSEE shall obtain and carry in full force and effect commercial , general liability insurance that shall protect LICENSEE, CURF, INVENTOR(S) and UNIVERSITY with respect to events covered in Section 8.1. Such insurance shall be written by a reputable insurance company authorized to do business in the state of South Carolina, shall list CURF, INVENTOR(S) and UNIVERSITY as additional named insureds thereunder, shallbe endorsed to include product liability coverage and shall require thirty (30) days written notice to be given to CURF prior to any cancellation or material change thereof. The limits of such insurance shall not be less than one million U.S. dollars ($1,000,000.00) per occurrence with an aggregate of two million U.S. dollars ($2,000,000.00) for personal injury or death and not be less than one million U.S. dollars ($1,000,000.00) per occurrence with an aggregate of two million U.S. dollars ($2,000,000.00) for property damage. LICENSEE shall provide CURF with Certificates of Insurance evidencing the same within thirty (30) days of the EFFECTIVE DATE of this Agreement.

 

  

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License Agreement between the Clemson University Research Foundation and Organovo, Inc.

 

	

8.3

	

Except as otherwise expressly set forth in this Agreement, INVENTOR(S) and CURF, UNIVERSITY, and their trustees, directors, officers, employees and affiliates make no representations and extend no warranties of any kind, either express or implied, including but not limited to warranties of merchantability, fitness for a particular purpose, validity of PATENT RIGHTS claims, issued or pending, and the absence of latent or other defects, whether or not discoverable. Nothing in this Agreement shall be construed as a representation made or warranty given by CURF that the practice by LICENSEE of the license granted hereunder shall not infringe the patent, copyright, trademark or other intellectual property rights of any third party. In no event shall INVENTOR(S) and CURF, UNIVERSITY, and their trustees, directors, officers, employees, and affiliates be liable for incidental or consequential damage of any kind, including economic damage or injury to property and lost profits, regardless of whether INVENTOR(S), CURF or UNIVERSITY shall be advised, shall have other reason to know or in fact shall know of the possibility.

 

	

8.4

	

In no event shall LICENSEE, its directors, officers, employees, or affiliates be liable for incidental or consequential damages arising out of any of the te1ms or conditions of this Agreement, or with respect to their performance or lack thereof.

 

	

8.5

	

CURF shall have no liability to LICENSEE for any use of TECHNOLOGY or PATENT RIGHTS by a third party (including but not limited to UNIVERSITY and its employees) that is not specifically authorized in writing by CURF, and such use shall not constitute a breach of this Agreement.

 

ARTICLE 9 - EXPORT CONTROLS

 

	

9.1

	

It is understood that CURF is subject to United States laws and regulations controlling the export of technical data, computer software, laboratory prototypes and other commodities (including the Arms Export Control Act, as amended and the Export Administration Act of 1979), and that its obligations hereunder are contingent on compliance with applicable United States export laws and regulations. The transfer of certain technical data and commodities may require a license from the cognizant agency of GOVERNMENT and /or written assurances by LICENSEE that LICENSEE shall not export data or commodities to certain foreign countries without prior approval of such agency.CURF neither represents that a license shall not be required nor that, if required, it shall be issued.

 

  

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License Agreement between the Clemson University Research Foundation and Organovo, Inc.

 

ARTICLE10- CONFIDENTIALITY AND NON-USE OF NAMES

 

	

10.1

	

LICENSEE and its employees, agents and contractors shall maintain in confidence all CONFIDENTIAL INFORMATION furnished to LICENSEE or its employees, agents or contractors by any of the INVENTOR(S), CURF or UNIVERSITY or by persons, offices or facilities of CURF or UNIVERSITY in connection with this Agreement. Neither LICENSEE nor any of its respective employees, agents or contractors shall use CONFIDENTIAL INFORMATION for any purpose except in connection with the exercise of the license granted hereunder. Only those employees, agents and contractors of LICENSEE who are subject t0 a preexisting, written obligation of confidentiality shall be assigned to perform duties that involve the use of or require access to such CONFIDENTIAL INFORMATION. LICENSEE shall inform (and shall require its SUBLICENSEES to inform) all of its employees, agents and contractors who are assigned to perform duties involving the use or exploitation of any CONFIDENTIAL INFORMATION of the confidentiality obligations created by this Agreement and shall assure their agreement to be bound by such confidentiality obligations prior to disclosing to such employees, agents and contractors any CONFIDENTIAL INFORMATION.

 

	

10.2

	

Notwithstanding any provision contained in this Agreement, LICENSEE shall not be required to maintain in confidence any of the following information:

 

	

(a)

	

Information which, at the time of disclosure to LICENSEE,IS m the public knowledge;

 

	

(b)

	

Information which, after disclosure to LICENSEE, becomes part of the public knowledge by publication or otherwise, except by breach of this Agreement;

 

	

(c)

	

Information which was lawfully in LICENSEE's possession (as reflected in its written records) at the time of disclosure by the disclosing party, and which was not acquired, directly or indirectly, from INVENTOR(S), CURF or the UNIVERSITY;

 

	

(d)

	

Information which the LICENSEE can demonstrate by written documents is the result of its own research and development independent of disclosures hereunder;

 

	

(e)

	

Information which the LICENSEE receives from third parties, provided such information was not obtained by such third parties from INVENTOR(S), CURF or the UNIVERSITY on a confidential basis and that LICENSEE has no notice of that such information is confidential; and

 

	

(f)

	

Information which LICENSEE is required to disclose by law or pursuant to the order of a court or other tribunal of competent jurisdiction, provided LICENSEE gives CURF written notice of such order prior to the disclosure thereof and gives CURF an opportunity to seek a protective order from such court or tribunal.

 

	
10.3

	
LICENSEE shall not use the names, trademarks, or service marks of CURF or the UNIVERSITY,nor any adaptation thereof, nor the names of any of their employees or anyINVENTOR(S), in any advertising, promotional or sales literature without prior written consent obtained from CURF except that LICENSEE may state that it is licensed by CURF under one or more of the patents and/or applications comprising the PATENT RIGHTS. Any use of the names of CURF, UNIVERSITY, their employees or any INVENTOR(S) shall be limited to statements of fact and shall not imply endorsement of LICENSEE's products or services.

 

  

13

  

 

License Agreement between the Clemson University Research Foundation and Organovo, Inc.

 

	

10.4

	

CURF shall not use the names, trademarks, or service marks of LICENSEE, nor any adaptation thereof, nor the names of any of its employees, in any advertising, promotional or sales literature without prior written consent obtained from LICENSEE. Any use of the names of LICENSEE or its employees shall be limited to statements of fact.

 

	

10.5

	

CURF shall maintain confidentially of information contained in reports received by the LICENSEE, which is clearly marked as confidential, to the extent permitted by state and federal law.

 

ARTICLE 11 -ASSIGNMENT

 

	
11.1

	
Neither this Agreement nor any obligation or right hereunder is assignable by LICENSEE except with written approval by CURF; provided however that LICENSEE, upon written notice to CURF, may assign this Agreement to a successor in ownership of all or substantially all of its business assets, provided such successor expressly agrees to assume LICENSEE'S obligations under this Agreement.

 

ARTICLE 12- DISPUTE RESOLUTION

 

	

12.1

	

All disputes arising out of or related to this Agreement or the performance, enforcement, breach or termination hereof, and any remedies relating thereto, shall be construed, governed, interpreted and applied in accordance with the laws of the United States of America and of the State of South Carolina. The South Carolina State Courts of Pickens County, South Carolina (or, if there is exclusive federal jurisdiction, the United States District Court for South Carolina) shall have exclusive jurisdiction and venue over any dispute arising out of this Agreement, and LICENSEE consents to the jurisdiction of such courts, except that questions affecting the construction and effect of any patent shall be determined by the law of the country in which the patent shall have been granted.

 

	

12.2

	

Notwithstanding the foregoing, nothing in this Article 12 shall be construed to waive rights or timely performance of any obligations existing under this Agreement.

 

  

14

  

 

License Agreement between the Clemson University Research Foundation and Organovo, Inc.

 

ARTICLE13- TERMINATION

 

	

13.1

	

Upon any termination of this Agreement, excluding termination due to expiration of patents pursuant to Section 2.5, all rights, privileges and license granted hereunder shall terminate and all rights to TECHNOLOGY and PATENT RIGHTS shall revert to CURF and/or UNIVERSITY.

 

	

13.2

	

If LICENSEE shall cease to carry on its business, this Agreement shall terminate upon notice by CURF.

 

	

13.3

	

Should LICENSEE fail to make any payment whatsoever due and payable to CURF hereunder, CURF shall have the right to terminate this Agreement by providing notice of intent to terminate to LICENSEE. The Agreement shall terminate forty-five (45) days from notice unless LICENSEE shall make all such payments to CURF within the forty­ five (45) day period or CURF shall provide LICENSEE with a written extension thereto. Upon the expiration of the forty-five (45) day period or granted extension, if LICENSEE shall not have made all such payments to CURF, this Agreement shall automatically terminate.

 

	

13.4

	

If LICENSEE shall at any time become insolvent or make a general assignment for the benefit of creditors or if a petition of bankruptcy or any reorganization shall be commenced by, against or in respect of LICENSEE and shall remain un-dismissed for more than ninety (90) days, this Agreement shall automatically terminate.

 

	

13.5

	

Upon any material breach or default of this Agreement by LICENSEE, other than those occurrences set out in Sections 13.2, 13.3, and 13.4 hereinabove, which shall always take precedence in that order over any material breach or default referred to in this Section 13.5,CURF shall have the right to terminate this Agreement effective on forty-five (45) days from receipt of notice to LICENSEE or CURF shall provide LICENSEE with a written extension thereto. Such termination shall be automatically effective unless LICENSEE shall have cured any such material breach or default prior to the expiration of the forty-five (45) day period.

 

	

13.6

	

LICENSEE shall have the right to terminate this Agreement at any time on six (6) months notice to CURF and upon payment of a termination fee equal to the amount of the next Annual Minimum Royalty and all amounts due CURF through the effective date of termination.

 

	

13.7

	

Upon termination of this Agreement for any reason, nothing herein shall be construed to release either PARTY from any obligation that matured prior to the effective date of such termination; and Articles 1, 8, 9, 10, 13.7, 13.8, and 15, excluding 15.1, shall survive any such termination. Notwithstanding the foregoing, the license rights granted to CURF and UNIVERSITY pursuant to section 15.1, shall survive termination if such improvements or modifications are being used as part of an active research project at time of termination. Such license rights will continue through the end of the project. LICENSEE and any SUBLICENSEES thereof, may, however, after the effective date of such termination, complete and sell all LICENSED PRODUCTS in the process of manufacture at the time of such termination, provided that LICENSEE shall make the payments to CURFas required by Article 4 of this Agreement and shall submit the reports required by Article5 hereof.

 

  

15

  

 

License Agreement between the Clemson University Research Foundation and Organovo, Inc.

 

	

13.8

	

Upon termination of this Agreement for any reason, any SUBLICENSEE not then in default shall have the right to seek a license from CURF. CURF agrees to negotiate such licenses in good faith under reasonable, and substantially similar terms and conditions.

 

ARTICLE 14- NOTICES, PAYMENTS AND OTHER COMMUNICATIONS

 

	
14.1

	
Any payment, notice or other communication pursuant to this Agreement shall be sufficiently made or given on the date of receipt if sent to such PARTY by certified U.S. Postal Service Express Mail, or by using an express courier service (such as Fed Ex, DHL, etc.) addressed to it at the address below or as it shall designate by written notice given to the other PARTY:

 

In the case of CURF:

Clemson University Research Foundation

Attn: Director

AMRL, Clemson Research Park

91 Technology Drive

Anderson, South Carolina, 29625

 

In the case of LICENSEE: Organovo, Inc.

 

ATTN: Chief Executive Officer

5871 Oberlin Dr.  Suite 150

San Diego, CA 92121

 

	
14.2

	
Payments may be made by wire transfer rather than by certified mail. If payment is made by wire transfer, the wire transfer fee must be added to payment and written notice that payment was made by wire transfer must be made in accordance with Section 14.1. Wire transfers should be made to the following account:

 

Name on Account: Clemson University Research Foundation

 

Account Number: 0005126261642

 

Routing Number: 053201607

 

ARTICLE 15- MISCELLANEOUS  PROVISIONS

 

	

15.1

	

During the term of this Agreement, LICENSEE shall fully disclose to CURF all improvements and modifications to TECHNOLOGY and LICENSED PRODUCTS which are developed wholly or partly by LICENSEE or its SUBLICENSEES and their employees, contractors, agents and subsidiaries. The UNIVERSITY and CURF shall have a non-exclusive non -transferable royalty-free license to utilize such improvements and modifications for NON-COMMERCIAL RESEARCH PURPOSES. LICENSEE hereby acknowledges that the provisions of this paragraph shall not in any way inhibit or detract from the rights of ownership CURF or UNIVERSITY may enjoy in any improvements or modifications to the TECHNOLOGY and LICENSED PRODUCTS developed in whole or in part by INVENTOR(S) or other employees of CURF or the UNIVERSITY.

 

  

16

  

 

License Agreement between the Clemson University Research Foundation and Organovo, Inc.

 

	

15.2

	

Each PARTY expressly acknowledges that the relationship between the PARTIES to this Agreement is that of independent contractors, and not agents, employees or representatives of the other. This Agreement shall not be deemed to create a partnership, joint venture or principal-and-agent relationship between CURF and LICENSEE or UNIVERSITY and LICENSEE. Except as expressly permitted in this Agreement, neither PARTY shall have the authority to bind the other to any agreement or obligation whatsoever, nor shall either PARTY represent that it has any such right or authority to any third party.

 

	

15.3

	

This Agreement constitutes the entire and only agreement between the PARTIES as to the subject matter hereof and all other prior negotiations, representations, agreements and warranties are superseded in totality by this Agreement. No agreements altering or supplementing the terms hereof shall be made except by a written document signed by both PARTIES. To become effective, this Agreement must be signed by LICENSEE within twenty (20) calendar days of signature by CURF.

 

	

15.4

	

If any part of this Agreement is for any reason found to be invalid or unenforceable, all other parts nevertheless remain enforceable.

 

	

15.5

	

LICENSEE and its SUBLICENSEES shall mark all products covered by PATENT RIGHTS with patent numbers in accordance with the statutory requirements in the country(ies) of manufacture, use and sale, and pending the issue of any patents, LICENSEE and its SUBLICENSEES shall mark the products, "Patent Pending," or the foreign equivalent as appropriate.

 

	

15.6

	

The failure of either PARTY to assert a right hereunder or to insist upon compliance with any term or condition of this Agreement shall not constitute a waiver of that right or excuse a subsequent and/or similar failure to perform any such term or condition by the other PARTY.

 

	

15.7

	

Upon the request of the other PARTY, each PARTY shall execute and deliver such additional documents and perform such other acts as the other PARTY may reasonably request and as may be necessary to affect the purposes and intent of this Agreement.

 

	

15.8

	

All titles and article headings contained in this Agreement are inserted only as a matter of convenience and reference and do not define, limit, extend or describe the scope of this Agreement or the intent of any of its provisions.

 

  

17

  

 

License Agreement between the Clemson University Research Foundation and Organovo, Inc.

 

IN WITNESS WHEREOF, the PARTIES hereto have executed and delivered this Agreement in multiple originals by their duly authorized officers and representatives on the respective dates shown below.

 

	
CLEMSON UNIVERSITY RESEARCH 

FOUNDATION

	 	
Organovo, Inc.

	 	 	 	 	 
	By	/s/ Vincie C. Albritton	 	By	/s/ Keith Murphy
	Name	Vincie C. Albritton	 	Name	Keith Murphy
	Title	Interim Executive Director	 	Title	CEO
	Date	5/2/2011	 	Date	5/2/2011

 

  

18

  

 

License Agreement between the Clemson University Research Foundation and Organovo, Inc.

 

APPENDIX A - PATENT RIGHTS

 

U.S. Utility Patent# 7,051,654 Entitled "Ink-Jet Printing of Viable Cells"

  

19

  

 

License Agreement between the Clemson University Research Foundation and Organovo, Inc.

 

APPENDIX B- LICENSEE INFORMATION FORM

 

Clemson University Research Foundation

Annual Licensee Questionnaire

 

	
Company/Licensee:

	 
	 	 
	
CURF Agreement ID:

	 

 

Primary Contact Information

 

	
Name:

	 
	 	 
	
Title:

	 
	 	 
	
Address:

	 
	 	 
	Telephone:	 	Fax:	 
	 	 
	Email:	 
	 	 
	Web site:	 

 

Accounting Contact Information

 

	
Name:

	 
	 	 
	
Address:

	 
	 	 
	City:	 	State	 	Zip Code	 
	 	 
	Telephone:	 	Fax:	 
	 	 	 	 
	Email	 
	 	 
	
Fiscal Year

	 

 

Accounting Firm:

 

	 	
Name of Firm:

	 
	 	 	 
	 	
Address:

	 
	 	 	 
	 	City:	 	State	 	Zip Code	 
	 	 	 
	 	
Telephone:

	 
	 	 	 
	 	
Contact:

	 

 

	
Who is responsible for the calculation of royalties due? 

	 
	 	 
	
Does this individual have a copy of the current license agreement? 

	 
	 	 
	
What procedures are performed in calculating royalties? 

	 
	 	 
	 	 
	 	 

 

	
Is a second review performed? 

	 

 

	
Have there been any changes to management in the prior twelve (12) months? 

	 

 

  

20

  

 

License Agreement between the Clemson University Research Foundation and Organovo, Inc.

 

If applicable, please provide the following documentation:

 

•      Certificate of Insurance for the most recent period.

 

•     Most current product catalogue.

 

I certify that the information provided in this report is accurate and complete. I understand that negligent or willful failure to disclose any requested information may result in penalty or termination of the associated agreement.

 

	 	 	 	 
	Authorized Signature  	 	 	Printed Name
	 	 	 	 
	Title	 	 	Date

 

  

21

  

 

License Agreement between the Clemson University Research Foundation and Organovo, Inc.

 

APPENDIX C- ROYALTY REPORT FORM

 

ROYALTY  REPORT FORM

 

Please also complete a separate form for each AFFILIATE and sublicensee for each product sold.

 

Submittedby:                                              (Company Name and Address)

 

Submit to: Clemson University Research Foundation P.O. Box 946 Clemson, South Carolina 29633-0946

 

	Report Period:	
Beginning date: 

	 	 	Ending date:	 

 

During the prior period:

 

	
Were any new licensed products added to your inventory? 

	 
	 	 
	
Did the company have its first commercial  sale?

	 
	 	 
	
If so, date of first commercial sale.  

	 

 

	 	
a. If not, please submit a progress towards commercialization update report.

	 

 

	 	
2. Di d the company grant its first sublicense? 

	 	 

 

	 	
a. If so, date of first sublicense. 

	 

 

	 	
3. Total amount invoiced for licensed products /processes? 

	 	 

 

	 	
4. Total amount invoiced for licensed services? 

	 	 

 

Royalty Report for the period indicated above.

 

	 	
A. Annual minimum royalty amount due this license year

	 	$	 

 

	 	
B. Less royalties previously paid this license year:

	 

 

	
a.  

	
January – March                             $                                         

 

	
b.  

	
April – June                                     $                                        

 

	
c.  

	
July – September                            $                                         

 

	
d.  

	
October – December                      $                                         

 

	 	Annual minimum less payments	$ 	 

 

C.    Report Period:

 

	
Product Number (SKU)

	
 

Product, Process, or Service Description

	
 

Product

Manufactured

	
 

Country

	
 

Units Sold or

Leased

	
 

Sales Price per Unit

	
 

Gross Sales

(US$)

	  	  	  	  	  	  	  
	  	  	  	  	  	  	  

 

	 	Total gross sales	$	 	 

 

a.      Less Deductions

 

	I.	Sales, Use, Occupation  and Excise Tax 	$	 	 
	 	 	 	 	 
	2.	Transportation	$	 	 
	 	 	 	 	 
	3.	Discounts	$	 	 
	 	 	 	 	 
	4.	
Returns and Allowances

	$	 	 

 

	 	Total net sales	$	 	 

 

  

22

  

 

License Agreement between the Clemson University Research Foundation and Organovo, Inc.

 

	 	
Royalty rate

	 	 %	 

 

	 	
Royalty due this period

	 	$	 

 

	D.	The greater of remaining annual minimum /royalty amount due. 	$	 
	 	 	 	 
	E.	Sublicensing Fees 	$	 
	 	 	 	 
	F.	Total amount due to CURF (D+E)	$	 

 

(If there were no sales of licensed product, process or service for the period, please indicate by using zeros (0) in the form above.)

 

I certify that the information provided in this report is accurate and complete. I understand that negligent or willful failure to disclose any requested information may result in penalty or termination of the associated agreement.

 

	 	 	 	 
	 	 	 	 
	Authorized  Signature  	 	 	Printed Name
	 	 	 	 
	 	 	 	 
	Title	 	 	Date

 

  

23

  

 

License Agreement between the Clemson University Research Foundation and Organovo, Inc.

 

APPENDIX D - ORGANOVO INC, CONVERTIBLE EQUITY NOTE

 

  

24

  

 

License Agreement between the Clemson University Research Foundation and Organovo, Inc.

 

APPENDIX E- PATENT EXPENSES

 

Patent fees related to PATENT RIGHTS accrued prior to the EFFECTIVE DATE:

 

	
 

 

Vendor/Provider

	
 

 

TechiD

	
 

 

Patent Serial No

	
 

 

Expense Type

	
 

Vendor

Invoice Date

	
 

Paid to Date by

CURF

	
 

Balance

Remaining

	
 

Dority & Manning

	
 

01-025

	  	
 

Patent Search

	
 

02/28/2001

	
 

1308.45

	
 

0.00

	
 

Dority & Manning

	
 

01-025

	  	
 

Patent Search

	
 

07/31/2001

	
 

120.25

	
 

0.00

	
 

Dority & Manning

	
 

01-025

	  	
 

Patent Search

	
 

03/31/2003

	
 

74.19

	
 

0.00

	
 

Dority & Manning

	
 

01-025

	
 

60/474,469

	
 

Provisional Patent Filings

	
 

04/30/2003

	
 

1295.63

	
 

0.00

	
 

Dority & Manning

	
 

01-025

	
 

60/474,469

	
 

Provisional Patent Filings

	
 

05/31/2003

	
 

7135.64

	
 

0.00

	
 

Dority & Manning

	
 

01-025

	
 

60/474,469

	
 

Provisional Patent Filings

	
 

08/31/2003

	
 

144.51

	
 

0.00

	
 

Dority & Manning

	
 

01-025

	
 

10/666,836

	
 

US Patent Legal Fees

	
 

08/31/2003

	
 

170.00

	
 

0.00

	
 

Dority & Manning

	
 

01-025

	
 

10/666,836

	
 

US Patent Legal Fees

	
 

09/30/2003

	
 

3581.60

	
 

0.00

	
 

Dority & Manning

	
 

01-025

	
 

10/666,836

	
 

US Patent Legal Fees

	
 

01/31/2004

	
 

208.36

	
 

0.00

	
 

Dority & Manning

	
 

01-025

	
 

10/666,836

	
 

US Patent Legal Fees

	
 

02/29/2004

	
 

1027.51

	
 

0.00

	
 

Dority & Manning

	
 

01-025

	
 

10/666,836

	
 

US Patent Lega l Fees

	
 

03/31/2004

	
 

2110.58

	
 

0.00

	
 

Dority & Manning

	
 

01-025

	
 

PCT/US2004/011276

	
 

Foreign Fees

	
 

04/30/2004

	
 

2659.10

	
 

0.00

	
 

Dority & Manning

	
 

01-025

	
 

10/666,836

	
 

US Patent Legal Fees

	
 

01/31/2005

	
 

1304.56

	
 

0.00

	
 

Dority & Manning

	
 

01-025

	
 

10/666,836

	
 

US Pa tent Lega l Fees

	
 

05/31/2005

	
 

1217.63

	
 

0.00

	
 

Dority & Manning

	
 

01-025

	
 

10/666,836

	
 

Miscellaneous Legal Fees

	
 

06/30/2008

	
 

720.00

	
 

0.00

	
Computer Packages

Inc.

	
 

01-025

	
 

10/666,836

	
 

Maintenance/Annuity  Fees

	
 

08/31/2009

	
 

715.00

	
 

0.00

	  	
$   23,793.01

	
 

-

 

Note: As stated in provision 6.2, these expenses are to be reimbursed by LICENSEE to CURF

 

•      $11,896.50 due on EFFECTIVE DATE

 

•      11,896.51 due on or before June 30'11 2011

 

Estimated* schedule of future maintenance fees due related to PATENT RIGHTS:

 

(*These fees and dates may be subject to change according to USPTO future policy changes)

 

7.5 years after issue:  maintenance payment due to USPTO5/30/14

 

•      Small entity $1,240.00

 

•      Large entity $2,480.00

 

11.5 years after issue: maintenance payment due to USPTO5/30/18

 

•      Small ent ity $2,055.00

 

•     Large entity $4,110.00

  

25

  

 

ORGANOVO, INC.

 

 

NOTE PURCHASE AGREEMENT

 

  

26

  

 

ORGANOVO, INC.

 

NOTE PURCHASE AGREEMENT

 

THIS NOTE PURCHASE AGREEMENT (the "Agreement") is made as of the 2nd day of May, 2011 (the "Effective Date") by and among Organovo, Inc., a Delaware corporation (the "Company"), and the persons and entities named on the Schedule of Purchasers attached hereto (individually, a "Purchaser" and collectively, the "Purchasers").

 

RECITAL

 

To provide the Company with additional resources to conduct its business, the Purchasers are willing to loan to the Company up to an aggregate amount of three million dollars ($3,000,000), subject to the conditions specified herein.

 

AGREEMENT

 

Now, Therefore, in consideration of the foregoing, and the representations, warranties, covenants and conditions set forth below, the Company and each Purchaser, intending to be legally bound , hereby agree as follows:

 

	
1.

	
AMOUNT AN D TERMS OF THE LOAN

 

1.1      The Loan. Subject to the terms of this Agreement, each Purchaser agrees to lend the Company at the Closing (as hereinafter defined) the amount set forth opposite each such Purchaser 's name on the Schedule of Purchasers attached hereto (each, a "Loan Amount" and collectively the "Total Loan Amount" or "Loan") against the issuance and delivery by the Company of a convertible promissory note or notes for such amount, in substantially the form as attached hereto as Exhibit A (each, a "Note" and collectively, the "Notes"). Each Note shall be convertible into shares of Equity Securities as provided in such Note.

 

	
2.

	
THE CLOSING

 

2.1      Closing Date. The closing of the sale and purchase of the Notes (the "Closing") shall be held on the Effective Date, or at such other time as the Company and a majority in interest of the Purchasers shall agree (the "Closing Date").

 

2.2      Deliver y. At the Closing (i) each Purchaser shall deliver to the Company a check or wire transfer funds in the amount of such Purchaser's portion of the Loan Amount; and (ii) the Company shall issue and deliver to each Purchaser a Note in favor of such Purchaser payable in the principal amount of such Purchaser's Loan Amount.

 

2.3      Subsequent Sales of Notes. At any time on or before the 60th day following the Closing, the Company may sell additional Notes to such persons as may be approved by the Company (the "Additional Purchasers"). All such sales made at any additional closings (each an "Additional Closing"), shall be made on the terms and conditions set forth in this Agreement, and (i) the representations and warranties of the Company set forth in Section 3 hereof shall speak as of the Closing and the Company shall have no obligation to update any such disclosure, and (ii) the representations and warranties of the Additional Purchasers in Section 4 hereof shall speak as of such Additional Closing. The Schedule of Purchasers may be amended by the Company without the consent of the Purchasers to include any Additional Purchasers upon the execution by such Additional Purchasers of a counterpart signature page hereto. Any Notes sold pursuant to this Section 2.3 shall be deemed to be "Notes" for all purposes under this Agreement and any Additional Purchasers thereof shall be deemed to be "Purchasers" for all purposes under this Agreement.

 

  

27

  

 

	
3.

	
REPRESENTATIONS, WARRANTI ES, AND COV ENANTS OF TH E COMPANY

 

The Company hereby represents and warrants to each Purchaser as follows:

 

3.1      Organization, Good Standing and Qualification. The Company is a corporation duly organized , validly existing and in good standing under the laws of the State of Delaware. The Company has the requisite corporate power to own and operate its properties and assets and to carry on its business as now conducted and as proposed to be conducted . The Company is duly qualified and is authorized to do business and is in good standing as a foreign corporation in all jurisdictions in which the nature of its activities and of its properties (both owned and leased) makes such qualification necessary, except for those jurisdictions in which failure to do so would not have a material adverse effect on the Company or its business.

 

3.2      Corporate Power. The Company will have at the Closing Date all requiSite corporate power to execute and deliver this Agreement, to issue each Note (collectively, the "Loan Documents"), and to carry out and perform its obligations under the terms of this Agreement and under the terms of each Note. The Company's Board of Directors has approved the Loan Documents based upon a reasonable belief that the Loan is appropriate for the Company after reasonable inquiry concerning the Company 's financing objectives and financial situation.

 

3.3      Authorization. All corporate action on the part of the Company, its directors and its stockholders necessary for the authorization, execution, delivery and performance of this Agreement by the Company and the performance of the Company 's obligations hereunder, including the issuance and delivery of the Notes and the reservation of the equity securities issuable upon conversion of the Notes (the "Conversion Securities") has been taken or will be taken prior to the issuance of such Conversion Securities. This Agreement and the Notes, when executed and delivered by the Company, shall constitute valid and binding obligations of the Company enforceable in accordance with their terms, subject to laws of general application relating to bankruptcy, insolvency, the relief of debtors and , with respect to rights to indemnity, subject to federal and state securities laws. The Conversion Securities, when issued in compliance with the provisions of this Agreement and the Notes, will be validly issued, fully paid and nonassessable and free of any liens or encumbrances and issued in compliance with all applicable federal and securities laws.

 

3.4      Governmental Consents. All consents, approvals, orders, or authorizations of, or registrations, qualifications, designations, declarations, or filings with, any governmental authority, required on the part of the Company in connection with the valid execution and delivery of this Agreement, the offer, sale or issuance of the Notes and the Conversion Securities issuable upon conversion of the Notes, or the consummation of any other transaction contemplated hereby shall have been obtained and will be effective at the Closing.

 

 

  

28

  

 

3.5      Compliance with Laws. To its knowledge, the Company is not in violation of any applicable statute, rule, regulation, order or restriction of any domestic or foreign government or any instrumentality or agency thereof in respect of the conduct of its business or the ownership of its properties, which violation of which would materially and adversely affect the business, assets, liabilities, financial condition, operations or prospects of the Company.

 

3.6      Compliance with Other Instruments. The Company is not in violation or default of any term of its certificate of incorporation or bylaws or of any judgment, decree, order or writ, other than such violation(s) that would not have a material adverse effect on the Company. The execution, delivery and performance of this Agreement and the Notes, and the consummation of the transactions contemplated hereby or thereby will not result in any such violation· or be in conflict with, or constitute, with or without the passage of time and giving of notice, either a default under any such provision, instrument, judgment, decree, order or writ or an event that results in the creation of any lien, charge or encumbrance upon any assets of the Company or the suspension, revocation, impairment, forfeiture, or nonrenewal of any material permit, license authorization or approval applicable to the Company, its business or operations or any of its assets or properties. Without limiting the foregoing, the Company has obtained all waivers reasonably necessary with respect to any preemptive rights, rights of first refusal or similar rights, including any notice or offering periods provided for as part of any such rights, in order for the Company to consummate the transactions contemplated hereunder without any third party obtaining any rights to cause the Company to offer or issue any securities of the Company as a result of the consummation of the transactions contemplated hereunder.

 

3.7      Offering. Assuming the accuracy of the representations and warranties of the Purchasers contained in Section 4 hereof, the offer, issue, and sale of the Notes and the Conversion Securities are and will be exempt from the registration and prospectus delivery requirements of the Securities Act of 1933, as amended (the "Act"), and have been registered or qualified (or are exempt from registration and qualification) under the registration, permit, or qualification requirements of all applicable state securities laws.

 

	
4.

	
REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS

 

4.1      Purchase for Own Account. Each Purchaser represents that it is acquiring the Notes and the Conversion Securities (collectively, the "Securities") solely for its own account and beneficial interest for investment and not for sale or with a view to distribution of the Securities or any part thereof, has no present intention of selling (in connection with a distribution or otherwise), granting any participation in, or otherwise distributing the same, and does not presently have reason to anticipate a change in such intention.

 

4.2      Information and Sophistication. Without lessening or obviating the representations and warranties of the Company set forth in Section 3, each Purchaser hereby: (i) acknowledges that it has received all the information it has requested from the Company and it considers necessary or appropriate for deciding whether to acquire the Securities, (ii) represents that it has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the offering of the Securities and to obtain any additional information necessary to verify the accuracy of the information given the Purchaser and (iii) further represents that it has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risk of this investment.

 

  

29

  

 

4.3      Ability to Bear Economic Risk. Each Purchaser acknowledges that investment in the Securities involves a high degree of risk, and represents that it is able, without materially impairing its financial condition, to hold the Securities for an indefinite period of time and to suffer a complete loss of its investment.

 

4.4      Further Limitations on Disposition. Without in any way limiting the representations set forth above, each Purchaser further agrees not to make any disposition of all or any portion of the Securities unless and until:

 

(a)      There is then in effect a Registration Statement under the Act covering such proposed disposition and such disposition is made in accordance with such Registration Statement; or

 

(b)      The Purchaser shall have notified the Company of the proposed disposition and shall have furnished the Company with a detailed statement of the circumstances surrounding the proposed disposition, and if reasonably requested by the Company, such Purchaser shall have furnished the Company with an opinion of counsel , reasonably satisfactory to the Company, that such disposition will not require registration under the Act or any applicable state securities laws, provided that no such opinion shall be required for dispositions in compliance with Rule 144, except in unusual circumstances.

 

(c)      Notwithstanding the provisions of paragraphs (a) and (b) above, no such registration statement or opinion of counsel shall be necessary for a transfer by such Purchaser to a partner (or retired partner) or member (or retired member) of such Purchaser in accordance with partnership or limited liability company interests, or transfers by gift, will , or intestate succession to any spouse or lineal descendants or ancestors, if all transferees agree in writing to be subject to the terms hereof to the same extent as if they were Purchasers hereunder.

 

4.5      Accredited Investor Status. Each Purchaser is an "accredited investor" as such term is defined in Rule 501 under the Act.

 

4.6      Further Assurances. Each Purchaser agrees and covenants that at any time and from time to time it will promptly execute and deliver to the Company such further instruments and documents and take such further action as the Company may reasonably require in order to carry out the full intent and purpose of this Agreement and to comply with state or federal securities laws or other regulatory approvals.

 

  

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5.

	
FURTHER AGREEMENTS

 

5.1      Market Standoff Agreement. No Purchaser shall sell , dispose of, transfer, make any short sale of, grant any option for the purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale, any Common Stock (or other securities, including without limitation of the Securities) of the Company held by such Purchaser, for a period of time specified by the managing underwriter(s) (not to exceed one hundred eighty (180) days, or such longer period as may be necessary to facilitate compliance with NASD Rule 2711 , NYSE Member Rule 472 or any similar or successor rule) following the effective date of a registration statement of the Company filed under the Act. Each Purchaser agrees to execute and deliver such other agreements as may be reasonably requested by the Company and/or the managing underwriter(s) which are consistent with the foregoing or which are necessary to give further effect thereto. In order to enforce the foregoing covenant, the Company may impose stop­ transfer instructions with respect to such Common Stock (or other securities) until the end of such period. The underwriters of the Company's stock are intended third patty beneficiaries of this Section 5.1 and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto.

 

	
6.

	
MISCE LLANEOUS

 

6.1      Binding Agreement. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties. Nothing in this Agreement, expressed or implied , is intended to confer upon any third party any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

6.2       Governing Law. This Agreement shall be governed by and construed under the laws of the State of California as applied to agreements among California residents, made and to be performed entirely within the State of California, without giving effect to conflicts of laws principles.

 

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

 

6.4      Title and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

 

6.5      Notices. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified , (b) when sent by confirmed telex, electronic mail, or facsimile if sent during normal business hours of the recipient, if not then on the next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested , postage prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the Company at 5871 Oberlin Dr., Suite 150, San Diego, CA, 92121, and to Purchaser at the address(es) set forth on the Schedule of Purchasers attached here to or at such other address(es) as the Company or Purchaser may designate by ten (10) days advance written notice to the other parties hereto.

 

6.6      Modification: Waiver. No modification or waiver of any provision of this Agreement or consent to departure therefrom shall be effective unless in writing and approved by the Company and the Purchasers purchasing a majority of the Total Loan Amount. Any provision of the Notes may be amended or waived by the written consent of the Company and the holders of a majority of the outstanding principal amount of the Notes.

 

  

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6.7       Expenses. The Company and each Purchaser shall each bear its respective expenses and legal fees incurred with respect to this Agreement and the transactions contemplated herein.

 

6.8      Delays or Omissions. It is agreed that no delay or omission to exercise any right, power or remedy accruing to each Purchaser, upon any breach or default of the Company under this Agreement or any Note, shall impair any such right, power or remedy, nor shall it be construed to be a waiver of any such breach or default, or any acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. It is further agreed that any waiver, permit, consent or approval of any kind or character by Purchaser of any breach or default under this Agreement, or any waiver by any Purchaser of any provisions or conditions of this Agreement must be in writing and shall be effective only to the extent specifically set forth in writing and that all remedies, either under this Agreement, or by law or otherwise afforded to the Purchaser, shall be cumulative and not alternative.

 

6.9      Entire Agreement. This Agreement and the Exhibits hereto constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof and no party shall be liable or bound to any other party in any manner by any representations, warranties, covenants and agreements except as specifically set forth herein.

 

  

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IN WITNESS WHEREOF, the parties have executed this NOTE PURCHASE AGREEMENT as of the date first written above.

 

	
COMPANY:

	 
	 	 	 
	
By: 

	/s/Keith Murphy	 

 

	
ORGANOVO, INC.

	 
	 	 	 
	
By: 

	/s/Keith Murphy	 

	
PURCHASER:

	 
	 	 	 
	
By: 

	/s/Vincie C. Albritton	 
	 	
Vincie Albritton

	 
	 	
Interim Executive Director

	 

 

Clemson University Research Foundation

AMRL, Clemson Research Park

91 Technology Drive

Anderson, South Carolina, 29625

 

  

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SCHEDULES AND EXHIBITS

 

Schedule of Purchasers

 

Exhibit A: Form of Convertible Security Note

 

  

34

  

 

SCHEDULE OF PURCHASERS

 

	Name 	Loan Amount
	 	 
	Clemson University Research Foundation	$[***]

 

  

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Exhibit A

 

Form of Convertible Promissory Note

 

 

36

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