Document:

Exhibit 10.29

 

Confidential Treatment Requested under 17
C.F.R. §§ 200.80(b)(4) and
240.24b-2

 

	
  FINAL

  	
  CONFIDENTIAL

  

 

MASTER PRODUCT SALE AGREEMENT

 

This MASTER PRODUCT SALE AGREEMENT (this “Agreement”) is entered into
as of June 27, 2008 by and between Senesco Technologies Inc, a Delaware
corporation having its principal place of business at 303 George Street, Suite 420,
New Brunswick, NJ 08901 (“CUSTOMER”), and among VGXI, Inc., a Delaware
corporation having an address of 2700 Research Forest Drive Suite 180, The
Woodlands, Texas 77381, and VGX International, Inc. a Korean company
having an address of Jung-Hun Building, #701, 944-1 Daechi 3-Dong, Gangnam-gu,
Seoul, Korea, (collectively, “VGX”) with reference to the following facts:

 

BACKGROUND

 

A.                              VGX
has developed specific expertise and technology relating to production and
testing of DNA plasmids and is in the business of developing, manufacturing and
testing plasmid based products for research and therapeutic benefit.

 

B.                                CUSTOMER
desires to have VGX produce, from time to time, certain quantities of products
for human clinical and/or non-human pre-clinical testing (“Contract Materials”),
on each occasion, on the terms and conditions set forth in this Agreement and
Purchase Order therefore.

 

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

 

1.                                       Definitions.

 

When used in
this Agreement, each of the following terms shall have the meanings as set
forth in this Article

 

1.1.                              “VGX Technology” shall
mean VGX proprietary information, trade secrets, and/or know-how used by VGX in
the performance of this Agreement, including, but not limited to, information
relating to materials, devices and methods for fermenting bacteria and the
purification and testing of DNA Plasmids.

 

1.2.                              “Affiliates” shall mean
any corporation, firm, limited liability company, partnership or other entity,
which directly or indirectly controls or is controlled by or is under the
common control with a Party, or any corporation, firm, limited liability
company, partnership or other entity of behalf of which either Party is acting
as an agent, advisor, or distributor.

 

1.3.                              “Agreement” shall mean
this Master Product Sale Agreement, as amended from time to time.

 

1.4.                              “Bill of Testing” shall
be the tests agreed to in Exhibit B of this Agreement for each particular
Purchase Order. The Bill of Testing will be considered a draft until mutually
agreed upon in writing for a particular Purchase Order.

 

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1.5.                              “Biosafety Level 1” shall
mean a basic level of containment that relies on standard microbiological
practices with no special primary or secondary barriers recommended other than
a sink for hand washing, in which work is done with defined and characterized
strains of viable microorganisms not known to cause disease in healthy adult
humans and classified as such by the relevant authorities, regulations or law.

 

1.6.                              “Calendar Year” shall
mean each successive period of twelve (12) consecutive calendar months
commencing on January 1 and ending on December 31.

 

1.7.                              “Cell Banking Activities”
shall mean the creation, testing, and maintenance of a Master Cell Bank (MCB)
and/or a Manufacturer’s Working Cell Bank (MWCB) under cGMP conditions,
containing copies of the Parent Plasmid, each of which will meet the
specifications in Exhibit B as finalized pursuant to a particular Purchase
Order.

 

1.8.                              “Commencement Date” with
respect to any particular order, shall mean the first date specified in the
Purchase Order.

 

1.9.                              “Contract Materials”
shall mean all of the materials to be produced by VGX for CUSTOMER as specified
in Exhibit A including Product. The Parties hereto will prepare and sign
new Exhibits A, for each new DNA plasmid that VGX is to produce hereunder.

 

1.10.                        “CUSTOMER Materials” shall mean
all materials sent by CUSTOMER to VGX related to this Agreement and to the
applicable Purchase Order and documentation.

 

1.11.                        “Direct Materials Costs” shall
mean the cost to VGX of materials utilized in the performance of Production
Services, including freight-in costs, sales and excise taxes imposed thereon
and customs duty and charges levied by government authorities, and all costs of
packaging components.

 

1.12.                        “External Testing Costs” shall
mean the cost of any tests listed as “contract” on the draft or final Bill of
Testing, as well as any other testing not performed at the VGX facility.

 

1.13.                        “FDA” shall mean the U.S. Food
and Drug Administration.

 

1.14.                        “Good Laboratory Practices” or “GLP”
shall mean prescribed practices and policies related to all laboratory
manufacturing and test methods intended to assure quality, safety and integrity
of the resulting product, with the intent that such product shall be subject to
oversight by U.S. regulatory authorities and the corresponding authorities of
the European Union, Member States of the European Union, and other countries to
the extent they are applicable.

 

1.15.                        “Good Manufacturing Practices”
or “GMP” shall mean the good manufacturing practices required by the U.S. Food
and Drug Administration for the manufacture and testing of pharmaceutical
materials, and the corresponding requirements of the European Union, Member
States of the European Union, and other countries to the

 

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extent they are applicable. “cGMP” or “current GMP” shall mean the GMP
practices in effect at a particular time.

 

1.16.                        “Information” means all (a) techniques
and data pertaining and/or related to the Product, including, but not limited
to, ideas, inventions (including patentable inventions), practices, methods,
knowledge, know-how, trade secrets, skill, experience, documents, apparatus,
clinical and regulatory strategies, test data, including pharmacological,
toxicological and clinical test data, analytical and quality control data,
manufacturing, patent and legal data or descriptions and (b) chemical
formulations, compositions of matter, product samples and assays pertaining
and/or related to the Product.

 

1.17.                        “Manufacturer’s Working Cell
Bank” or “MWCB” shall mean viable E. coli containing Parent Plasmid, cultured
from the MCB under GMP conditions, diluted in glycerol and stored in sealed
vials at less than minus sixty degrees Celsius.

 

1.18.                        “Master Cell Bank” or “MCB”
shall mean viable E. coli containing Parent Plasmid, transformed directly from
CUSTOMER supplied stock under GMP conditions, diluted in glycerol and stored in
sealed vials at less than minus sixty degrees Celsius.

 

1.19.                        “Party” shall mean either
CUSTOMER or VGX as the case may be.

 

1.20.                        “Parent Plasmid” shall mean the
original DNA plasmid construct, prepared by CUSTOMER and provided to VGX,
listed in Exhibit C.

 

1.21.                        “Person” shall mean a natural
person, a corporation, a partnership, a trust, a joint venture, any
governmental authority or any other entity or organization.

 

1.22.                        “Pilot DNA Services” shall mean
the production of Research DNA at a sufficiently large scale as to provide a
reasonable indication of the growth, quality and yield of a GMP batch produced
with the same cell bank.

 

1.23.                        “Price” shall mean the amount
payable to VGX in U.S. dollars for the performance of Production Services
hereunder with respect to any Purchase Order.

 

1.24.                        “Product” shall mean finished
goods in final container/closure or other product as specified in Exhibit A,
meeting those specifications in Exhibit B and to be delivered to CUSTOMER.

 

1.25.                        “Production Services” shall
mean the activities to be performed by VGX hereunder, which shall mean the
production of the Product and relevant supporting documentation accordingly to
the Purchase Order.

 

1.26.                        “Purchase Order” means a
purchase order for a specific project, substantially in the form of a complete,
signed set of each of Exhibit A to this Agreement.

 

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1.27.                        “Research Cell Bank” or “RCB”
shall mean a small cell bank produced under research conditions used for the
production of Research DNA only. This material is provided “as-is”.

 

1.28.                        “Research DNA” shall mean a small
amount of DNA prepared by VGX under Research Laboratory Conditions from the RCB
as an initial indication of growth, yield, and quality characteristics. This
material is provided “as-is”

 

1.29.                        “Research Laboratory Conditions”
shall mean practices and policies generally accepted by trained scientists to
assure quality and integrity of laboratory experiments. Such practices include,
but are not necessarily limited to, aseptic techniques to avoid microbial
contamination, accurate measurements and calculations and documentation of
research results.

 

1.30.                        “Resuspension Buffer” shall
mean the liquid used to resuspend DNA in the Finished Product and having the
composition specified by the CUSTOMER in Exhibit C.

 

1.31.                        “Sample Plasmid” shall mean a
DNA plasmid supplied by CUSTOMER, of sufficiently similar characteristics to
the Parent Plasmid to perform initial quality control assay evaluations and/or
initial process development testing. Sample Plasmid and Parent Plasmid should
be the same plasmid whenever possible to ensure the validity of the results.

 

1.32.                        “Specifications” means, with
respect to any Product, the specifications therefore as set forth in Exhibit B
of the Purchase Order for such Product.

 

1.33.                        “Third Party” means any person
or entity other than VGX or CUSTOMER.

 

2.                                       Purchase Orders.

 

2.1.                              Supply. During the
term of, and subject to the terms and conditions in, this Agreement, CUSTOMER
may purchase from, and have Product produced by, VGX. Neither shall CUSTOMER
have any commitment to purchase any minimum quantity of Product nor shall VGX
have any commitment to produce and sell any minimum quantity of Product.
CUSTOMER shall become obligated to purchase, and VGX shall be obligated to
produce, Product only upon execution and delivery by both VGX and CUSTOMER of a
Purchase Order for such Product, as set forth below.

 

Neither VGX nor CUSTOMER may amend a Purchase
Order after it has been executed, except according to the provisions of Section 11
or by mutual agreement in writing as provided in Section 12.5. CUSTOMER
may cancel an existing Purchase Order prior to the Commencement date and
forfeit any prepayments made for such Purchase Order. For each new Product that
is to be produced by VGX pursuant to this Agreement, the Parties will prepare
and sign new, a Purchase Order, and upon signing such new Purchase Order shall
become a part of this Agreement. Each such new Purchase Order shall
specifically reference this Agreement and be signed by both Parties hereto.  Each

 

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new Purchase
Order will contain project details for the production and testing of some or
all of the Contract Material.

 

2.2.                              Project Specifications.
VGX will produce under appropriate conditions the specified amounts or number
of cycles of Contract Materials and Product. Such Product will be produced,
tested, released and delivered to CUSTOMER according to the schedule in Exhibit A.
VGX shall ship the Contract Materials directly to CUSTOMER. VGX will keep in
its possession any required documentation, regulatory retains, and will
maintain certain additional samples and/or cell banks at the request of
CUSTOMER for an additional fee (to be determined in the applicable Purchase
Order).

 

2.3.                              Laboratory Test
Production of Research DNA. Within one (1) week of the Commencement
Date, CUSTOMER will supply VGX with more than fifteen (15) milligrams of each
Parent Plasmid or more than ten (10) vials of a qualified cell bank
containing Parent Plasmid for VGX use and retain. VGX shall perform, under
Research Laboratory Conditions, the experiments in Exhibit A to establish
optimum fermentation and purification conditions for the Parent Plasmid, to
determine yield, stability, purity and form of the plasmid DNA. Such work will
be performed in accordance with the schedule in Exhibit A.

 

2.4.                              Modification If
Research Results Not Satisfactory. If the Research DNA produced pursuant to
this Section does not meet the draft productivity or purity standards in
Exhibits A and B, the Parent Plasmid shall be deemed not to be suitable for
performing Production Services. CUSTOMER and VGX shall then meet and negotiate,
in good faith, appropriate modifications to the Agreement to address the
failure to meet the criteria. VGX will produce additional Research DNA batches
if deemed necessary by mutual written agreement between VGX and CUSTOMER. The
cost of producing the additional batches will be borne by CUSTOMER. If the
parties agree that VGX should take other actions to address the purity or
productivity problems, they will also agree upon the appropriate modifications
to the payments in Exhibit A and execute an appropriate amendment. If the
parties are unable to reach an agreement despite good faith negotiations,
either party may terminate this Agreement by written notice to the other.

 

2.5.                              Testing to Release
Manufacture. If the Research DNA produced meets the standards in Exhibits A
and B, VGX shall produce and perform relevant testing needed to release the MCB
and/or MWCB into its facility, or evaluate and test any CUSTOMER supplied MCB
and/or MWCB as appropriate. Such work shall be performed in accordance with the
schedule in Exhibit A.

 

2.6.                              Finished Product
Production. If the Pilot DNA produced by VGX meets the standards in the
draft Bill of Testing, the final Bill of Testing will be signed by VGX and the
CUSTOMER and attached to this Agreement as Exhibit B. VGX shall then
commence with preparing for each Parent Plasmid under GMP conditions the
specified number of production cycles of Finished Product. Such Finished
Product will be produced, tested, released and delivered to CUSTOMER according
to the schedule in Exhibit A.

 

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2.7.                              Pilot Production
Unsatisfactory. If the Pilot DNA produced by VGX does not meet the
standards in the draft Bill of Testing, VGX and CUSTOMER will discuss the
possible amendment of the Bill of Testing. VGX will produce an additional Pilot
DNA batch if deemed necessary by mutual written agreement between VGX and
CUSTOMER. The cost of producing the additional batch will be borne by CUSTOMER.
If the parties agree that VGX should take other actions to address the purity
or productivity problems, they will also agree upon the appropriate
modifications to the payments in Exhibit A and execute an appropriate
amendment. If the parties are unable to reach an agreement despite good faith
negotiations, either party may terminate this Agreement by written notice to
the other.

 

3.                                       Materials and Information.

 

Promptly after execution of a Purchase Order pursuant to Section 2.1,
CUSTOMER shall deliver to VGX all materials and Information that are necessary
for VGX to produce and manufacture the Products, and that such Purchase Order
provides are to be delivered by CUSTOMER to VGX. Information supplied pursuant
to this Article 3 shall be in a format acceptable to VGX. CUSTOMER shall
bear the risk of loss of, and damage to, such materials and Information until
actual receipt by VGX. Following their receipt, VGX shall be responsible for
the risk of loss of, and damage to, such materials and Information.

 

4.                                       Production.

 

4.1.                              Performance of Work.
VGX shall produce the Product in accordance with this Agreement, the Purchase
Order therefore and any agreed technical or descriptive specifications.

 

VGX may subcontract the performance of
certain services necessary for the performance of this Agreement, such as, but
not limited to, external testing. CUSTOMER agrees to VGX’ use of the
subcontractors listed in Exhibit A. VGX will not subcontract to persons
other than those listed in Exhibit A without CUSTOMER’s written approval.

 

4.2.                              Quality Control and
Assurance. VGX shall manufacture Product in compliance and in accordance
with the Specifications and all applicable laws and regulations. Prior to each
shipment of Product, VGX shall perform quality control testing on Product in
accordance with Specifications as outlined in the Purchase Order. VGX shall,
during and after the term of this Agreement, maintain such records and data
that document its compliance with this Section 4.2 as is required by law
and regulation applicable to the manufacture of the Product. In performing its
obligations under this Agreement, VGX shall comply with all applicable
environmental and health and safety laws. VGX shall be solely responsible for
determining how to carry out these obligations.

 

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4.3.                              Audits by CUSTOMER.

 

(a)                                  Upon the written
request of CUSTOMER, VGX shall permit CUSTOMER or an independent consulting
firm specializing in pharmaceutical manufacturing facility inspections selected
by CUSTOMER and reasonably acceptable to VGX, at CUSTOMER’s expense, to have
access during VGX normal business hours to inspect such of the records and
facilities of VGX as may be reasonably necessary to verify that Products manufactured
by VGX are manufactured in accordance with Good Manufacturing Practices and
conform to the Specifications as outlined in a Purchase Order which is dated
not more than twelve (12) months prior to the date of such request. CUSTOMER’s right to inspection shall
continue until twelve (12) months from delivery of the Products. Only
information that is related to this Agreement will be the subject of such
inspection. VGX shall make all efforts to address any GMP or Specifications
deficiencies found by CUSTOMER in such inspection

 

(b)                                 CUSTOMER may make a
preproduction inspection of the facilities upon reasonable notice, prior to
signing the first Purchase Order. VGX shall make all good faith efforts to
address any GMP deficiencies found by CUSTOMER in any pre-production
inspection. If deficiencies are addressed to CUSTOMER’s satisfaction in a
reasonable time period, this Agreement or the applicable Purchase Order will
continue. If deficiencies are not addressed to CUSTOMER’s satisfaction,
CUSTOMER may terminate this Agreement or the applicable Purchase Order by
written notice to VGX and neither party shall have any further liability
hereunder as a result of such termination.

 

(c)                                  CUSTOMER shall treat
all information subject to review under this Section 4.3 in accordance
with the confidentiality provisions of this Agreement, and shall cause its
consultants who review such information to be bound by the same confidentiality
provisions.

 

4.4.                              Certificate of Release
and Analysis. Concurrent with its delivery of Product, VGX shall deliver to
CUSTOMER the certificate of pharmaceutical release and a written report
summarizing analytical and manufacturing documentation which will include the
final certificate of analysis for such Product.

 

4.5.                              Samples and Batch Records.
VGX shall prepare and maintain or cause to be prepared and maintained batch
records and a file sample, properly stored, from each lot or batch of Product
manufactured and shipped hereunder sufficient to perform each quality control
test identified in the Specifications. All batch records will be made available
to CUSTOMER in English upon completion of each batch. Such batch records will
be accessible for review by CUSTOMER at mutually convenient times for both
parties.

 

4.6                                 Inspections by
Government Agencies. If any governmental agency shall inspect any facility
at which any Product is manufactured or the records with respect to the
compliance by VGX with laws and regulations applicable to the manufacturing of
such Product, VGX shall notify CUSTOMER of such inspection, the results thereof
and, if VGX was required, as a result of any such inspection, to take any
corrective action in

 

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order to comply with any applicable law or regulation, any such action it
has taken in response to such requirement.

 

5.                                       Shipment and Delivery.

 

5.1.                              Storage.  VGX shall store each batch of Product ordered
pursuant to a Purchase Order in accordance with the specifications in that
Purchase Order, or, if not specified therein, in accordance with good
commercial standards. In no case will VGX be responsible for the storage of a
batch for greater than two months from quality release.

 

5.2.                              Packing.  VGX shall pack each batch of Product ordered
pursuant to a Purchase Order in accordance with the specifications in that
Purchase Order, or, if not specified therein, in accordance with good
commercial standards.

 

5.3.                              Shipment.  VGX shall notify CUSTOMER not less than five (5) business
days before shipment of a batch of Product that such batch will be ready for
shipment by the date specified in such notice. CUSTOMER shall be obligated to
notify VGX of the route and carrier by which CUSTOMER desires such batch to be
shipped to it. If VGX receives notice of the route and carrier by which CUSTOMER
desires a batch of Product to be shipped no later than five (5) business
days before the date stated in VGX’ notice to CUSTOMER, VGX shall ship such
batch in accordance with CUSTOMER’s directions; however, if CUSTOMER fails to
notify VGX as provided, VGX may ship such batch of Product by a carrier and on
a route selected by VGX. For purposes of this Section 5.3, a “business day”
is a day when VGX’ production facilities and administrative offices are
generally open for business.

 

All customs,
duties, taxes, insurance premiums, and other third party expenses relating to
the sale or transportation and delivery shall be paid by CUSTOMER.

 

5.4.                              Notice of Receipt.
 Upon receipt of Finished Product,
CUSTOMER shall notify VGX of its receipt.

 

5.5.                              Risk of Loss.  Title to and risk of loss to all Contract
Materials and other items shipped by VGX shall pass to CUSTOMER upon delivery
to shipper.

 

6.                                      Intended Use Specifications.

 

6.1.                              CUSTOMER Use Only.
All Contract Materials are being manufactured hereunder exclusively for the
CUSTOMER. The CUSTOMER shall use the Contract Materials only for its own
purposes or studies under CUSTOMER’s control and shall not forward such
materials to any third party except for testing or manufacturing services
without VGX’ prior written approval, which shall not be unreasonably withheld.
For the avoidance of doubt, this section 6.1 is intended to prevent the resale
of the Contract Materials to third parties, and is not intended to limit the
use of the Contract Materials by the CUSTOMER for its own purposes.

 

6.2.                              CUSTOMER Proprietary
Materials. All CUSTOMER Materials and materials derived from CUSTOMER
Materials shall remain CUSTOMER’s proprietary

 

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property. VGX shall use such CUSTOMER Materials solely for the purposes
of this Agreement and will not forward CUSTOMER Materials to third parties
except in connection with work by approved subcontractors.

 

6.3.                              CUSTOMER Use.  The CUSTOMER agrees to use the Contract
Materials in compliance with all regulations and laws and warrants and that
such materials shall only be used for purposes of civil research and
development, quality control, clinical research and/or validation of process
steps. The CUSTOMER will maintain full documentation in accordance with its
standard procedures on the use of the Contract Materials.

 

6.4.                              Other Laws and
Regulations.  In performing its
obligations under this Agreement, VGX shall comply with all applicable
environmental and health and safety laws. VGX shall be solely responsible for
determining how to carry out these obligations.

 

6.5                                 Improvements to VGX
Technology.  Customer shall promptly
disclose to VGX any improvements or additions made by Customer relating to the
VGX Technology and/or applications or uses thereof, and such improvements, and
improvements to VGX Technology made jointly by VGX and Customer, will be solely
owned by VGX. Customer hereby assigns all rights to the aforementioned
improvements to VGX and agrees to execute all documents required to confirm
such assignment or to protect such improvements.

 

7.4.                              Customer
Responsibility.  FDA and ICH
guidelines provide that a sponsor seeking a license is considered the “manufacturer”
even if they use a contract manufacturing organization, and the sponsor is
responsible for ensuring GMP compliance for those activities that have been
contracted out (US FDA 21 CFR 600.3(t), ICH Q7A Section 2). Therefore, VGX
shall provide Customer, its employees, agents, and consultants reasonable
access to VGX facilities, records, and personnel in order that appropriate
inspections, evaluations, testing and audits may be carried out. Customer shall
notify VGX in writing of any noted compliance deficiencies during any visit,
audit, or at any time when Customers Contract Materials are being produced,
packaged, shipped, or stored. VGX will use good faith efforts to correct any
noted deficiencies in a reasonable time. Failure to correct any such deficiency
to Customer’s reasonable satisfaction shall be grounds for Customer to terminate
this Agreement as specified in Section 11.3 upon written notice to VGX.

 

7.                                       Payment.

 

7.1.                              Price.  The price payable by CUSTOMER for all work
performed and Product delivered pursuant to a Purchase Order shall be the Price
specified therefore in that Purchase Order. All payments made under this
Agreement are non-refundable except as specified in sections 2 and 11.

 

7.2.                              Invoices.  Upon its execution, and concurrent with its
delivery of a Purchase Order unless otherwise specified in the applicable
Purchase Order, VGX shall

 

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deliver to CUSTOMER an invoice for ** of the Price stated therein for
Pilot DNA Services and ** of all other services listed in the Purchase Order.
For the avoidance of doubt, production capacity and Commencement Date will not
be considered to be reserved until such time as Customer has made an
appropriate non-refundable payment. ** days prior to the scheduled Commencement
Date of each line item of a Purchase Order, VGX shall deliver to CUSTOMER an
invoice for ** for each line item. Upon, and concurrent with, its delivery of
each Contract Material as specified in the amount and order of a particular
Purchase Order, VGX shall deliver to CUSTOMER an invoice for the remaining **
of the Price stated in the Purchase Order for such Contract Material. Payment
for External Testing Costs, shipping costs, and all additional costs listed in Exhibit A
shall be made within thirty (30) days of receipt of an invoice therefore from
VGX, which invoice may be sent in advance of such costs being incurred, with a
final calculation and reconciliation of such costs to be made after completion
of activities under this Agreement; any amounts paid by CUSTOMER in excess of
actual invoiced costs shall be credited against CUSTOMER’s final payment or, if
no payment is due, returned to CUSTOMER.

 

7.3.                              Price Modification.
The amounts set forth in Exhibit A are based on the number of experiments
and production cycles provided therein. The yield and quality for each production
batch of Contract Material cannot be determined prior to commencement of the
Agreement or particular Purchase Order. If after the initial research and pilot
stages are completed the plasmid yield or quality does not meet the needs of
the CUSTOMER, the Parties shall negotiate the steps to take and appropriate
price adjustments as provided in Section 2. If either party terminates the
Agreement pursuant to Section 2, VGX shall retain all payments made prior
to the date of termination. All Contract Materials not shipped to the CUSTOMER
prior to the date of termination shall be destroyed. In any event all price
modifications will be mutually agreed in writing.

 

7.4.                              Time For Payment.
CUSTOMER shall pay VGX the full amount specified in each appropriately rendered
invoice within thirty (30) days of date of receipt of the invoice.

 

7.5.                              Method of Payment.
All amounts due and payable shall be paid in United States Dollars. Payment
shall be wired via electronic funds transfer to the account specified by VGX in
respect of which payment is made.

 

7.6.                              Late Payment. If
CUSTOMER fails to pay any amount when due, or VGX fails to refund any amount
when due, it shall pay as a late charge to the other party an amount equal to
one per cent (1%) per month on the amount unpaid, or if less, the maximum
amount permitted by law, such amount to accrue from the date when payment was
due until the date when paid in full. In all cases failure of Customer to
provide payment according to the agreed schedule listed in any Project Plan Exhibit A
will cause VGX to delay the Scheduled Start date of the particular Project Plan
line item by a minimum of thirty days after outstanding payments are received,
or move the project task to the next available production slot, at the sole
discretion of VGX. Such notification will be provided to the Customer in
writing.

 

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8.                                       Warranties.

 

8.1.                              Representations and
Warranties of Both Parties.  Each
party hereby represents and warrants to the other party as follows:

 

(a)                                  Such party is a
corporation duly organized, validly existing and in good standing under the
laws of the jurisdiction in which it is incorporated.

 

(b)                                 Such party (i) has
the corporate power and authority and the legal right to enter into this
Agreement and to perform its obligations hereunder, and (ii) has taken all
necessary corporate action on its part to authorize the execution and delivery
of this Agreement and the performance of its obligations hereunder. This
Agreement has been duly executed and delivered on behalf of such party, and
constitutes a legal, valid, binding obligation, enforceable against such party
in accordance with its terms.

 

(c)                                  All necessary
consents, approvals and authorizations of all governmental authorities and
other Persons required to be obtained by such party in connection with this
Agreement have been obtained.

 

8.2.                              Product Warranties.
 VGX hereby covenants, represents and
warrants to CUSTOMER that:

 

(a)                                  All
Product will, on the date of delivery by VGX to CUSTOMER, comply with the
applicable laws, regulations and regulatory guidelines, the Specifications
therefore set forth in this Agreement and in the Purchase Order pursuant to
which such Product was ordered.

 

(b)                                 Title
to all Product sold hereunder shall pass to CUSTOMER as provided herein free
and clear of any security interest, lien or other encumbrance.

 

8.3                                 Disclaimer of
Warranties.  EXCEPT AS EXPRESSLY
PROVIDED IN SECTION 8.2, VGXMAKES NO REPRESENTATION OR WARRANTY AS TO ANY
CUSTOMER MATERIALS, EXPRESS OR IMPLIED, AND VGXSPECIFICALLY DISCLAIMS ANY
WARRANTY OF MERCHANTABILITY, WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE,
WARRANTY OF SYSTEM INTEGRATION, WARRANTY OF EFFECTIVENESS.

 

9.                                       Liability, Indemnification and Insurance.

 

9.1.                              Limitation on
Liability.  VGX shall not be liable
for any special, consequential, incidental, exemplary or punitive damages. VGX’
maximum liability with respect to any and all damages arising from its failure
to deliver, late delivery of, delivery of defective Product or failure to correct
or replace any Product shall be the total price payable by CUSTOMER under that
Purchase Order pursuant to which such Product were ordered by CUSTOMER.

 

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9.2.                              Responsibility and
Control.  VGX and CUSTOMER shall each
be solely responsible for the safety of its own employees, agents, licensees or
sublicensees with respect to Product, and each shall hold the other harmless
with regard to any liability for damages or personal injuries resulting from
acts of its respective employees, agents or servants to the extend that such
damages are not due to gross negligence or willful misconduct of the other
party.

 

9.3.                              Indemnification by
CUSTOMER.  CUSTOMER shall indemnify,
defend and hold harmless VGX from all losses, liabilities, damages and expenses
(including reasonable attorneys’ fees and costs) that VGX may suffer or incur
as a result of any claims, demands, actions or other proceedings made or
instituted by any Third Party arising out of (a) any alleged or actual
infringement or other violation of any patents, patent rights, trademarks,
trade mark rights, copyrights, trade secrets, proprietary rights and processes
or other such rights related to the Product except as related to the materials
or the process utilized by VGX in the manufacture of the Product as set forth
in Section 9.4 hereof and (b) any alleged or actual loss, damage or
injury including death, which arises from the use of any Product which conforms
to the specifications and warranties set in section 8.2.

 

9.4.                              Indemnification by VGX.
 Notwithstanding Section 9.1 hereof,
VGX shall indemnify, defend and hold harmless CUSTOMER from all losses,
liabilities, damages and expenses (including reasonable attorneys’ fees and
costs) that CUSTOMER may suffer or incur as a result of any claims, demands,
actions or other proceedings made or instituted by any Third Party arising out
of any alleged or actual infringement or other violations of any patents,
patent rights, trade secrets, proprietary rights or other such rights related
to the process utilized by VGX in the manufacture of the Product.

 

9.5.                              Notice and Assistance.
 An indemnifying party will not be
obligated to indemnify and hold harmless any Indemnified Person unless the
Indemnified Person gives the indemnifying Party prompt notice of any claim,
suit or action brought against the Indemnified Person, after it becomes aware
of it, allows the indemnifying Party to defend the same (without prejudice to
the right of the Indemnified Person to participate at through counsel of its
own choosing), renders the indemnifying Party all assistance reasonably
necessary in defending against such claim, suit or action at the indemnifying
Party’s expense, and does not compromise or settle such claim or action without
the indemnifying Party’s prior written consent.

 

9.6.                             Insurance.            VGX and CUSTOMER shall
maintain comprehensive general liability insurance, in such amounts as it
customarily maintains for similar products and activities.

 

10.                                 Confidentiality.

 

10.1.                        Confidential Information.
 During the term of this Agreement, and
for a period of five (5) years following the expiration or earlier
termination hereof, each party shall maintain in confidence all information
(including samples) disclosed by the other party and identified as, or
acknowledged to be, confidential (the “Confidential

 

12

 

Information”), and shall not use, disclose or grant the use of the
Confidential Information except on a need-to-know basis to those directors,
officers, employees, consultants, contractors, governmental regulatory
agencies, (sub)licensees or permitted assignees, to the extent that such
disclosure is reasonably necessary in connection with such party’s activities
as expressly authorized by this Agreement. To the extent that disclosure is
authorized by this Agreement, prior to disclosure, each party hereto shall
obtain agreement of any such Person to hold in confidence and not make use of
the Confidential Information for any purpose other than those permitted by this
Agreement.

 

10.2.                        Terms of this Agreement.
 Neither party shall disclose any terms
or conditions of this Agreement to any Third Party without the prior consent of
the other party.

 

10.3.                        Permitted Disclosures.  The confidentiality obligations contained in
this Article 10 shall not apply to the extent that (a) the receiving
party (the “Recipient”) is required (i) to disclose information by
applicable law, regulation or order of a governmental agency or a court of
competent jurisdiction, or (ii) to disclose information to any
governmental authority for purposes of obtaining approval to test or market a
Product, provided in either case that the Recipient shall provide written
notice thereof to the other party and sufficient opportunity to object to any
such disclosure or to request confidential treatment thereof; or (b) the
Recipient can demonstrate that (i) the disclosed information was public
knowledge at the time of such disclosure by the other party hereunder, or
thereafter became public knowledge, other than as a result of actions of the
Recipient in violation hereof; (ii) the disclosed information was
rightfully known by the Recipient (as shown by its written records) prior to
the date of disclosure to the Recipient by the other party hereunder; or (iii) the
disclosed information was disclosed to the Recipient on an unrestricted basis
from a source unrelated to any party to this Agreement and not under a duty of
confidentiality to the other party. CUSTOMER agrees that VGX may use CUSTOMER’s
corporate name in certain marketing and other publications and presentations,
as example of, but not limited to, a client list.

 

11.                                 Term of Agreement, Renewal, Termination.

 

11.1.                        Term.  This Agreement shall commence on the date
first written above and upon execution of the first Purchase Order, and unless
earlier terminated in accordance with the provisions of this Article 11,
shall continue in full force and effect for a period of five (5) years
from date of signature, and in any case as long as any Purchase Order is in
force. Thereafter, the term of this Agreement shall be renewed for successive
one (1) year periods upon mutual agreement.

 

11.2.                        Termination After Research
or Pilot Work.  Either Party may
terminate this Agreement as provided in Section 2.

 

11.3.                        Termination for Cause.  If either party breaches any provision of this
Agreement, the other party may give written notice to the breaching party that
if the default is not cured within thirty (30) days of the date of such notice,
the Agreement will be terminated. If the non-breaching party gives such notice
and the breach is not cured

 

13

 

during such
thirty (30) day period, then this Agreement shall terminate automatically at
the end of such thirty (30) day period.

 

Should CUSTOMER terminate this Agreement
pursuant to this Section 11.3, VGX shall reimburse to CUSTOMER all monies
paid by CUSTOMER in respect of outstanding uncompleted Purchase Order(s) less
the cost of those Production Services performed by VGX, under such Purchase
Order(s), which are compliant with this Agreement and can be exploited by
CUSTOMER. Such repayment and VGX liabilities toward CUSTOMER shall be within
the limits stated in section 9.1 in the event of such a breach.

 

Should VGX terminate this Agreement pursuant
to this Section 11.3 for breach, then upon termination CUSTOMER shall pay
VGX an amount equal to (i) all amounts due for completed Purchase Orders,
plus (ii) all amounts listed on any signed and uncompleted Purchase Order.
The terms of this Section will also apply if CUSTOMER reduces the
quantities or the number of batches of products for any Purchase Order

 

11.4.                        Termination by Mutual
Agreement This Agreement may be terminated at any time by written agreement
of the Parties.

 

11.5.                        Termination for Violation of
Ethical Principles.  If CUSTOMER
(including its employees, subcontractors, agents, servants, licensees) uses the
Contract Materials in a manner inconsistent with ethical principles as defined
in the Helsinki Declaration by the World Medical Association, VGX shall be
allowed to terminate this Agreement and any Purchase Order at any time without
prior notice to CUSTOMER and shall have no liability to CUSTOMER as a result of
such termination. All Payments made to VGX prior to the date of such
termination shall be retained by VGX.

 

11.6.                        Termination without Cause.
 Either Party may terminate this
Agreement by written notice during any period when no Purchase Order is
currently active, meaning (i) no activities are planned or being performed
by VGX for the CUSTOMER, (ii) no Contract Materials are due to be
delivered to the CUSTOMER, (iii) neither party owes the other any payment
or refund.

 

11.7.                        Returned Materials.  On the termination of this Agreement, VGX and
CUSTOMER each shall return to the other all information (including the
materials) which it possesses or controls that belongs to the other, or which
contains the other parties confidential information, except that each may
retain a copy solely for record keeping purposes.

 

11.8.                        During the term of this
Agreement and as long as it is in force and a Purchase Order has never been
terminated for breach or default of VGX before completion, CUSTOMER agrees to
offer the first right of refusal to VGX t o manufacture all DNA plasmids
required by CUSTOMER and to supply for CUSTOMER, such DNA plasmids as shall be
agreed upon from time to time by the Parties, for CUSTOMER’s pre-clinical and
clinical use and for commercial sale, according to the terms and

 

14

 

conditions set forth herein. If the CUSTOMER manufactures, or has
manufactured for it by a third party, DNA plasmids utilized in studies for
regulatory filings, without first obtaining from VGX a refusal to manufacture
the DNA plasmid, VGX may terminate this Agreement under the terms of Section 11.3,
by written notice to CUSTOMER.

 

11.9.                        Survival.  Articles 8, 9, 10, 11 and 12 shall survive any
termination or expiration of this Agreement.

 

12.                                 Miscellaneous Provisions.

 

12.1.                        Successors and Assigns.  Neither this Agreement nor any interest
hereunder shall be assignable by either party without the written consent of
the other (which approval shall not be unreasonably withheld), and any
attempted assignment without such consent shall be null and void; provided,
however, that either party may, without consent, assign this Agreement to its
successors in the event of the merger or consolidation of it or the business
with which the Product are associated with another company. This Agreement
shall be binding upon the successors and permitted assignees of the parties.
Any such successor or permitted assignee shall be subject to the same rights
and obligations as the original party hereunder.

 

12.2.                        Notices.  All notices or other communications required
or permitted to be given hereunder shall be in writing and shall be delivered
by hand, courier or facsimile and confirmed in writing, as follows:

 

If to VGX, as follows:

 

VGXI Inc.

2700 Research Forest Drive, Suite 180 

The Woodlands, TX 77381

 

If to CUSTOMER, as follows:

 

Senesco Technologies Inc

303 George Street, Suite 420

New Brunswick, NJ 08901

 

or in any case to such other address or addresses as hereafter shall be
furnished as provided in this Section 12.2 by any party hereto to the
other party. Any notice delivered pursuant to this Section 12.2 shall be
deemed delivered on the date received by the recipient unless such notice is
received on a day on which the recipient is not open for business or on a day
when the recipient is generally open for business but after the time when it is
generally open for business, in which case such notice shall be deemed to have
been received on the next day on which the recipient is generally open for
business.

 

12.3.                        Public
Disclosure.  Neither party will
announce or publicly refer to this Agreement without the prior consent of the
other, except as may be required by law and except that in marketing its
services VGX may disclose the existence of this Agreement

 

15

 

but none of its terms. For the avoidance of any doubt, each party shall
be permitted to use the name of the other party in any regulatory submission
associated with this Agreement without the prior written consent of the named
party. In the case of public disclosure of this Agreement, no reference will be
made to the financial terms of this Agreement or the Product.

 

12.4.                        Entire Agreement.  This Agreement and its appendices constitute
the entire agreement between the parties with respect to the subject matter
hereof and supersede all prior agreements or understandings of the parties
relating thereto.

 

12.5.                        Amendment.  This Agreement may be modified or amended only
by written agreement of the parties hereto.

 

12.6.                        Counterparts.  This Agreement may be executed in any number
of counterparts, each of which shall be deemed an original but all of which
together shall constitute a single instrument.

 

12.7.                        Governing Law / Arbitration.  This Agreement shall be governed by the laws
of the Pennsylvania, as those laws are applied to contracts entered into and to
be performed entirely in Pennsylvania without regard to principles of conflicts
of law. Any dispute arising out of or in connection with this agreement which
could not be solved by an amicable settlement shall be finally settled by
binding arbitration. Both parties agree that any arbitration decision may be
enforced in any court of law with proper jurisdiction over the party against
which the arbitration decision is to be enforced.

 

12.8.                        Captions.  All section titles or captions contained in
this Agreement and in any appendix referred to herein or annexed to this
Agreement are for convenience only, shall not be deemed a part of this
Agreement and shall not affect the meaning or interpretation of this Agreement.

 

12.9.                        Construction.  This Agreement shall be deemed to have been
drafted by both VGX and CUSTOMER and shall not be construed against either
party as the draftsperson hereof.

 

12.10.                  Expenses.  In the event a dispute between the parties
hereunder is resolved through litigation or other proceeding or a party must
engage an attorney (including internal counsel) to enforce its right hereunder,
the prevailing party shall be entitled to reimbursement of all reasonable fees
and disbursements incurred in connection with such litigation.

 

12.11.                  Independent Contractors.  Nothing contained herein shall be deemed to
create any joint venture or partnership between the parties hereto, and, except
as is expressly set forth herein, neither party shall have any right by virtue
of this Agreement to bind the other party in any manner whatsoever.

 

12.12.                  Severability.  If any provision of this Agreement is held to
be illegal, invalid or unenforceable under present or future laws effective
while this Agreement remains in effect, the legality, validity and
enforceability of the remaining provisions

 

16

 

shall not be
affected thereby, and in lieu of each such illegal, invalid or unenforceable
provision there shall be added automatically, as a part of the document, a
provision that is legal, valid and enforceable, and as similar in terms to such
illegal, invalid or unenforceable provision as may be possible while giving
effect to the benefits and burdens for which the parties have bargained
hereunder.

 

12.13.                  Force Majeure.  Neither Party shall be liable to the other for
its failure to perform any of its obligations under this Agreement, during any
period in which such performance is delayed because rendered impracticable or
impossible due to circumstances beyond the Party’s reasonable control,
including without limitation, earthquakes, governmental regulation, fire,
flood, labor difficulties, interruption of supply of key raw materials, civil
disorders, and acts of God, provided that the Party experiencing the delay
promptly notifies the other Party of delay.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first above written.

 

VGXI, INC.

 

 

	
  By:

  	
  /s/ Henry Hebel

  	
   

  
	
   

  
	
  Name:

  	
    Henry Hebel

  	
   

  
	
   

  
	
  Title:

  	
    VP Operations

  	
   

  
					

 

 

CUSTOMER

 

 

	
  By:

  	
  /s/ Richard S. Dondero

  	
   

  
	
   

  
	
  Name:

  	
    Richard S. Dondero

  	
   

  
	
   

  
	
  Title:

  	
    Vice President R & D

  	
   

  
					

 

17Exhibit 10.30

 

 

SUPPLY AGREEMENT

 

BETWEEN

 

POLYPLUS-TRANSFECTION SA, a company organized
under the laws of France (“Polyplus”), having its place of business at Bioparc,
Boulevard Sébastien Brant, 67401 Illkirch (France) hereinafter referred to as “SELLER” or “Seller”

 

AND

 

SENESCO TECHNOLOGIES, Inc. a Delaware
corporation, having its registered office at 303 George Street, Suite 420,
New Brunswick, NJ 08901, USA, hereinafter referred to as “BUYER” or “Buyer”
(each being referred to individually as a Party and collectively as the
Parties)

 

WHEREAS

 

Polyplus is a biotechnology company dedicated
to the development, manufacturing and marketing of transfection reagents. These
chemical agents make it possible
for DNA, interfering ribonucleic acids (siRNA) or proteins to enter into cells.

 

In particular, the firm is owner and licensed
of intellectual property rights related to transfection reagents including
Polyethylenimine (PEI).

 

Polyplus has also developed methods for
manufacturing PEI and derivatives. The process is derived from know-how arising
out of POLYPLUS’ research.

 

in vivo-jetPEITM,
which is a Polyplus product, is manufactured by a Polyplus
subcontractor in its capacity as
a GMP maker (hereinafter: “Product Maker”) acting under Polyplus’s instructions
and is marketed by Polyplus. in vivo-jetPEITM can be used for research or preclinical phases,
as well as for clinical trials.

 

BUYER is interested in using in vivo-jetPEITM
for human clinical trials and is desirous to be regularly supplied with in vivo-jetPEITM.

 

Given the very high distinctiveness of this
product, the Parties agree on the establishing of a long-lasting contractual
relationship to make easier the regularity and the quality of the supply of
this product.

 

1

 

NOW, THEREFORE, IT HAS BEEN AGREED AS FOLLOWS

 

ARTICLE 1: DEFINITIONS

 

For the purposes of this Agreement, the
following terms used herein with an initial capital letter shall have the
following respecting meanings, and shall be applicable both to the singular and
plural forms:

 

1.1                           “Affiliate” shall
mean, as applied to a Party, any corporation or other business entity, which controls, is
controlled by or is under common control with such Party. For the purposes of this definition,
the term “control”
shall mean direct or indirect ownership of fifty percent (50%) or more of the securities
or other ownership interests representing the equity, voting stock, general partnership
or membership interest of such entity, or the power to direct or cause the
direction of the management and policies of an entity (other than a natural
person), whether through the majority ownership of voting capital stock, by
contract or otherwise

 

1.2                           “Business days” the
part of a day from 9 am to 5 pm Monday through Friday, except for French or US
state holidays

 

1.3                           “Clinical Trials”
shall mean any investigation in human subjects intended to discover or verify the clinical,
pharmacokinetic (study of the processes of bodily absorption,
distribution, metabolism, and excretion of compounds and medicines), and/or
other pharmacodynamic (study of interactions between drugs and living
structures) effects of (an) investigational drug(s), and/or to identify any
adverse reactions to (an) investigational drug(s), with the object of ascertaining
its(their) safety and/or efficacy.

 

For the sake of clarity, it is hereby stated that,
according to international standards, clinical trials are usually broken down
into the following three steps:

 

· Phase I studies,
corresponding to the first time the drug is tested in (a limited number of) humans, and
which are primarily concerned with the drug’s safety, with the purpose of
determining how the experimental drug is absorbed, metabolized, and excreted in
humans. Additionally, these studies seek to determine what types of side
effects occur as the dosage of the drug is increased. Any beneficial effects of the drug are also
noted.

 

· Phase II studies,
generally conducted on a random and blinded basis on several hundred patients,
and whose aim is (i) to test the experimental drug in the patients that
have the disease or condition that the drug is expected to improve/cure, (ii) to
evaluate the effectiveness of the drug, and (iii) to determine the correct
dosage, that is, the most effective dosage with the least number of side effects (dose-ranging studies). In
general, the purpose of Phase II studies is to provide the sponsor

 

2

 

and the competent regulatory agency with comparative information about
the relative safety of the experimental drug, the proper dosage needed to treat
the condition, and the drug’s effectiveness.

 

·
Phase III studies, where the experimental drug is tested in several hundred to
several thousand patients with the disease/condition of interest, with this
large-scale testing seeking to provide the sponsor as well as the competent
regulatory agency with a more thorough understanding of the drug’s
effectiveness, benefits/risks, and range/severity of possible adverse side
effects.

 

1.4                           “Confidential
Information” shall mean any technical or business information furnished by one
Party (the “Disclosing Party”) to the other Party (the “Receiving Party”) in
connection with this Agreement, regardless of whether such information is
specifically designated as confidential and regardless of whether such
information is in written, oral, electronic or other form. Such Confidential
Information may include, without limitation, the trade secrets, know-how,
inventions, formulations, compositions, synthesis operating procedures,
protocols, technical data or specifications, testing methods, business or
financial information, research and development activities, product and
marketing plans, and customer and supplier information. The Confidential
Information shall not include applicable information which the Receiving Party
can demonstrate:

 

·
was in the public domain prior to the time of its disclosure under this
Agreement;

 

· entered the public
domain after the time of its disclosure under this Agreement through means
other than an unauthorized disclosure resulting from an act or omission by the
Receiving Party;

 

· was independently
developed or discovered by the Receiving Party prior to the time of its
disclosure under this Agreement, as demonstrated by contemporaneous written
evidence;

 

· is or was
disclosed to the Receiving Party at any time, whether prior to or after the
time of its disclosure under this Agreement, by a third party having no
fiduciary relationship with the Disclosing Party and having no obligation of
confidentiality with respect to such Confidential Information or;

 

· is required to be
disclosed so as to comply with applicable laws or regulations, or with a court
or administrative order, provided that the Disclosing Party receives, to the
extent practicable, prior written notice of such disclosure and the opportunity
to assess the need to disclose and/or limit the scope of disclosure, and that
the Receiving Party takes all reasonable and lawful actions to obtain
confidential treatment for such disclosure and, if possible, to minimize the
extent of such disclosure.

 

Confidential Information shall not be deemed to be in the public domain
merely because it is embraced by more general information in the public domain,
or merely because individual items of Confidential Information are in the
public domain, without a notice or suggestion associated with such individual
items to be combined in the manner suggested by the Disclosing Party.

 

1.5                           “Field”
shall mean research applications, in particular, the in-vivo use in clinical trials, for phases
I, II and III of those Clinical Trials.

 

3

 

1.6                           “Product”
shall mean the in vivo-jetPEITM GMP, manufactured by or on behalf of Seller, according
to the applicable Specifications, or any product whose function is accurately
equivalent, provided such product received the prior written approval of the
Buyer.

 

1.7                           “Specifications”
shall mean the applicable specifications as defined in quotations made by Seller
in view of orders from the Buyer.

 

ARTICLE 2: SUBJECT MATTER OF THE CONTRACT

 

2.1                           Subject
to the terms and conditions of this agreement, Buyer agrees to purchase from
Seller exclusively the Products needed for use in the Field and Seller agrees
to supply Buyer with its requirements of the Product as detailed in quotations
which will be made between the Parties from time to time.

 

Seller agrees to supply Buyer with the Product in compliance with the
Specifications and amounts as detailed in the quotations which will be made
between the Parties from time to time.

 

2.2                           The
Product will be supplied as Drug Substance under lyophilised form. The filling
step is not included in the present agreement.

 

2.3                           During
the initial term of this agreement according to subparagraph 9.1 below, and
after successful supply by Seller of a first batch of Products meeting
Specifications, Buyer shall purchase all its requirements for such Product
within the Field from Seller and undertakes not to purchase any product whose
structure and formula will be identical to the one of the Product with any
third parties.

 

ARTICLE 3: FORECASTS AND ORDERS

 

3.1                           General: The Product will be produced by Seller or on behalf of Seller,
on order from the Buyer and will be delivered for each batch of Product within
the time required for correct production.

 

3.2                           Forecasts: In order to ensure proper application of § 3.1 hereinabove,
Buyer shall provide Seller with written forecasts of its requirements of
Product for use in the Field regarding Phase I of Clinical Trials, broken down
by quarter for the ensuing 12 (twelve) months. Such forecasts shall be updated
every quarter. Buyer shall provide Seller with written forecasts of its Product
requirements for use in the Field under Phase II and Phase III of the Clinical
Trials 8 months before the beginning 

 

4

 

of each of that new phases, including in case of overlapping or
coupling of one phase with another (“Fast Track”).

 

3.3                           Orders: Buyer shall place its firm orders at least 6 (six) months
before the requested delivery date. Buyer shall place firm orders for the
quantity most recently estimated for the Clinical Trial, it being specified
that such estimate must be based on a document prepared using objective
criteria for the purpose of conducting said Clinical Trials. The Parties shall
agree from time to time on the information to be included in the order form.

 

3.4                           Acceptance of orders: Subject to the producing capacity of
the Product Maker, Seller shall fill Buyer’s orders for Product for use in the
Field to the extent they do not exceed Buyer’s forecast for such Clinical
Trial. Seller shall use its reasonable efforts to fill any portion of the orders
exceeding the forecast to the extent they do not exceed one hundred twenty
percent (120%) of this forecast . Notwithstanding the reservations expressed in
the foregoing, Seller shall have a period of ten Business days in which to
confirm its acceptance of each order.

 

ARTICLE 4: QUALITY

 

4.1                           Seller
warrants that all Product sold to Buyer hereunder shall be produced in
accordance with the latest revision of the EC Guide to Good Manufacturing
Practices, shall be of good and merchantable quality and comply with the
applicable Specifications. It is understood that, even if a batch of Product
meets all Specifications at the time of delivery, its stability will be
affected by the passing of time. The expiration date will be determined after
the complete stability study performed on the first batch of Product. Moreover,
the stability of the Product is much shorter when the Product is mixed to
constitute a compound. Buyer shall be completely responsible for storage and
preserving conditions of the Product after delivery. Likewise, (i) Buyer
shall remain responsible for storage conditions of the Product employed by
investigators, inspectors, clinical research coordinators and other persons
involved in clinical studies, and undertakes to inform them about Product features
and requirements as to storage and preservation, and (ii) Seller does not
warrant the stability of the Product after delivery.

 

4.2                           Promptly
after receipt of any shipment of Product, Buyer shall verify the quantity and visually
inspect the quality of the Product. No claim for visible defective quality or
shortage in quantity of any individual shipment of Product shall be valid
unless made in writing within ten (10) Business days from the date of
delivery of Product, together with certificates of analysis, except in the
event of latent defects, in which case such claims shall be made within ten (10) Business
days from discovery of such defect. Such written notice shall substantiate the
non-conformity to Specifications.

 

5

 

4.3                           Seller shall promptly make up any shortfall
and/or replace all Product non-conforming to the Specifications, at no
additional cost to Buyer, as stated below.

 

4.4                           If a dispute arises concerning conformity of
the Product to Specifications or requirements as agreed to by the Parties, in
whole or in part, such dispute shall be referred to a reputable independent
testing organization recognized by the pharmaceutical industry, mutually agreed
by the Parties. The fees and expenses of such organization shall be borne by
the losing Party. The settlement of such dispute shall be limited to the loss
or damage arising directly from the non-conformity of the Product without
prejudice to any additional remedies that may be perused by the Parties.

 

ARTICLE 5: DELIVERY

 

5.1                           Seller shall deliver or have delivered by
Product Marker the Product to filling facilities as indicated by Buyer. The
Product shall be packaged in keeping with the nature of the Product in order to
maintain its qualities. Risk for the Product shall pass to Buyer at the time of
delivery.

 

5.2                           Seller shall provide certificates of analysis
for the Product for each delivery at the time of such delivery.

 

ARTICLE 6: PRICE AND PAYMENT CONDITIONS

 

6.1                           Prices: The prices for the
Product delivered in batches depend on the quantities ordered by Buyer and
shall be set forth in each quotation. The prices are exclusive of any taxes and
duties, such as sales, export, import, value-added tax, excise duty, which
shall be added as applicable. Seller may require changes in the prices to
reflect changes in Specifications, batch size, packaging and process
alterations where such changes are made at the Buyer’s request or pursuant to
an agreement entered into by the Parties providing for the modification of the
Specifications.

 

6.2                           Invoices: Seller shall issue an
invoice for thirty percent (30 %) of the nominal
amount of each order upon acceptance. The balance, plus or minus adjustments
for the quantity actually delivered shall be invoiced according to milestones
payments to be defined between the Parties at the time of the order, it being
specified that in case the Parties fail to reach agreement the balance shall be
fully paid in the following condition: 30% within 4 months from the date of the
order, 40% upon delivery. Buyer shall pay invoices in Dollars within thirty
(30) days from the date of the invoice by bank transfer to the account
indicated in the invoice. Any payments not made on or before the due date shall
accrue interest, from the tenth day following a written payment reminder sent
by Seller to Buyer until paid, at a rate equal to the EURIBOR in effect on the
date such payment first became due and payable.

 

6

 

6.3                           Retention of title: to the extent permitted by law, title to
the Product shall remain with Seller until the price is paid in full.

 

6.4                           Cancellation for non–payment: Should any payment not be received within
60 days from the invoice date, this Agreement may be cancelled eo ipso upon Seller’s request.

 

ARTICLE 7: PRODUCT LIABILITY

 

7.1                           Warranties: Seller warrants that: (i) Product(s) sold to Buyer pursuant
to this Agreement shall, at the date of delivery, be free from defective
material and workmanship, conform to the Specifications, contain no hidden
defects, satisfy current FDA requirements and be in compliance with applicable
EU legal and regulatory requirements as may be amended from time to time; and (ii) Seller
has requisite know-how, required expertise, and experience regarding the Product.

 

For
the sake of clarity it is again stated that Seller makes no warranty regarding
the stability of the Product after delivery. However, Seller undertakes to
provide its expertise after delivery and carry out the stability study
according to the Specifications upon Buyer’s request, as long as the Product is
in the same condition as it was at the time of delivery. It being specified
that should the stability study show that the Product has not kept the
stability it had at the time of the delivery, Seller shall not be obliged to
replace the Product and shall not incurred any liability.

 

SELLER
MAKES NO OTHER WARRANTY, EXPRESS OR IMPLIED, CONCERNING THE PRODUCT, and, in
particular, makes no warranty regarding the effectiveness of the Product once
it has been mixed to constitute a compound.

 

7.2                           Seller’s indemnification and hold harmless
agreement for the benefit of Buyer: Seller shall defend, indemnify and hold
Buyer, its Affiliates and the officers, directors and employees of each
harmless from and against any and all claims, demands, loss, damage,
liabilities, settlement amounts, costs or expenses whatsoever (including
reasonable attorneys’ fees and costs) arising from any claim, action or
proceeding made or brought against such party by a third party as a result of (a) nonconformity
of the Product to the Specifications; or (b) Seller’s intentional act or
grave misconduct in performing its obligations herein; or (c) Seller’s
breach of its obligations as detailed herein. SELLER MAKES NO OTHER WARRANTY,
EXPRESS OR IMPLIED, CONCERNING THIS PROTECTION.

 

7.3                           Buyer’s indemnification and hold harmless
agreement for the benefit of Seller: Buyer shall defend, indemnify and hold Seller, it’s Affiliates and
the officers, directors and employees of each harmless from and against any and
all claims, demands, loss, damage, liabilities, settlement amounts, costs or
expenses whatsoever (including reasonable attorneys’ fees and costs) arising
from any claim, action or proceeding made or brought against such party by a
third party as a result of (a) any damage caused by the use of the Product
except a damage due to a defect in the product caused, in

 

7

 

whole or in part, from the manufacture of the Product, a default in the
storage of the Product prior to delivery in accordance with Article 5, or
the nonconformity of the Product to the Specifications, but including a defect
of the product with which or into which the Product will be incorporated, mixed
or associated or (b) Buyer’s failure to perform its obligations hereunder
or (c) the use of the Product outside the Field. BUYER MAKES NO OTHER
WARRANTY, EXPRESS OR IMPLIED, CONCERNING THIS PROTECTION.

 

7.4                           Limitations: The foregoing indemnification and hold harmless undertakings
shall be contingent on the observance of the following additional terms and
conditions:

 

(i) The party claiming indemnification shall have given the
indemnifying party prompt and timely notice of the facts and circumstances
having given rise to such claim and shall reasonably co-operate with, inform
and assist the latter party in this regard;

 

(ii) The indemnifying party shall have sole control and authority
with respect to the defence, settlement or compromise of the claim against the
indemnified party; provided, however, that the indemnifying party shall not
agree to any settlement which would materially and adversely affect the
business of the other party without the prior written consent of that party,
which consent shall not be unreasonably withheld.

 

7.5                           Insurance obligation: The Buyer, as sponsor of the
Clinical Trials, shall maintain in effect a policy or policies of insurance
providing protection against the risk of liability associated with any loss,
injury or damage arising from the performance of Clinical Trials, and it shall
provide the Seller with the relevant insurance policy upon Seller’s request.

 

ARTICLE 8: CONFIDENTIALITY

 

8.1                                 Confidentiality and non-use covenants: Each Party shall and shall cause its
employees, agents or servants engaged in the performance of this Agreement to: (i) maintain
all Confidential Information received from the other Party in strict
confidence; (ii) use all such information solely for purposes of
performing this Agreement; and (iii) reproduce such information only to the
extent necessary to perform this Agreement, with all such reproductions being
considered Confidential Information. The terms and conditions hereof shall be
considered Confidential Information, unless both Parties agree in writing to
disclose certain terms in reply to a legitimate request by a third party.

 

8.2                                 Return of documents: Upon the termination of this
Agreement by either Party, the Receiving Party shall return to the Disclosing
Party all originals, copies, and summaries of documents, materials, and other
tangible manifestations of Confidential Information in the possession or
control of the Receiving Party, except for one copy, which may be kept in the

 

8

 

Receiving
Party’s legal archives and stored under secure conditions. The obligations set
forth hereunder shall remain in effect for a period of ten (10) years
after receipt of the Confidential Information by the Receiving Party.

 

ARTICLE 9: TERM AND TERMINATION

 

9.1                           Term: This Agreement shall enter into force on the date of last signature
hereof and shall have an initial term ending on the eighth anniversary of the
first Commercial Sale of the Product by Seller to Buyer. It shall remain in
force thereafter for consecutive one (1) year periods except if terminated
by either party, upon giving six (6) months written notice prior to the
initial or any renewal term.

 

9.2                           Survival:  Termination, expiration,
cancellation or abandonment of this Agreement through any means or for any
reason, shall be without prejudice to the rights and remedies of either party
with respect to any antecedent breach of any of the provisions of this
Agreement. The provisions of Sections 7, 8, 9, 10 and 12 hereof shall survive
expiration or termination of this Agreement.

 

9.3                           Termination for breach: Either Party may terminate this Agreement
on written notice to the other Party, with immediate effect, if the other Party
commits a material breach of any of its obligations essentially but non
limitatively stipulated in Article 2.3; Article 6.4; Article 7.3 and Article 8.1
hereunder which is not cured within thirty (30) days of the other Party’s
written notice of the breach. Such right of termination shall be without
prejudice to any other remedy
the non-defaulting party may have at law due to the other party’s breach of its
obligations hereunder.

 

9.4                           Termination for liquidation: This Agreement may be immediately
terminated by a Party if the other Party is dissolved or liquidated, files or
has filed against it a petition under any bankruptcy or insolvency law, makes
an assignment for the benefit of its creditors or has a receiver appointed for all or substantially
all of its property.

 

9.5                           Consequences of termination:
Expiration or termination of this Agreement in whole or in part shall not
relieve the Parties of any amounts of moneys or Product duly owing between them
according to the terms of this Agreement.

 

9

 

ARTICLE 10: INTELLECTUAL PROPERTY RIGHTS

 

10.1                     Intangible Property : Buyer acknowledges that
any and all of Seller’s intellectual property rights including its know-how
used or embodied in or in connection with the Product and any parts thereof
(hereafter: Seller’s Background IP Rights) are and shall remain the sole
property of Seller. Seller acknowledges that any and all of Buyer’s
intellectual property rights not in connection with the product and any parts
therof existing prior to the present Agreement or developed later on are and
shall remain the sole property of Buyer.

 

10.2                     Improvements : In case Improvements (defined
as “any ameliorations that cannot be exploited without infringing Seller’s
Background IP Rights) to the Product or to its method of manufacture or use are
generated in the performance of the Agreement or of the Clinical Trials by
either or both parties, all rights on these Improvements shall belong to Seller
which shall have the sole right, and at its own discretion, to file patent
applications in its own name and at its costs. Buyer undertakes to keep Seller
regularly informed, once a year, of the Improvements it shall make and to sign
any documents that could be necessary in order for Seller to file patent
applications and to secure its ownership.

 

Any
other improvements or inventions generated by Buyer in the performance of the
Clinical Trials will belong to Buyer.

 

10.3                     No warranty : Seller hereby declares that to
the best of its knowledge the Products do not infringe patents, trademarks or
other proprietary rights owned or controlled by any third party, and warrants
that no litigation or threatened litigation exist in connection with the use of
such third party proprietary rights as of the coming into force of this
Agreement.

 

However,
no representation is made by Seller, expressly or by implication, that any Products
sold to and used by Buyer will not infringe such third party proprietary
rights. Accordingly, Seller shall not be responsible, either directly or as an
indemnitor, to Buyer, for any consequence of any alleged, purported or
established infringement of said third party’s rights in connection with or
resulting from said use of Products, and Buyer shall indemnify and hold
harmless Seller with respect to any claims or actions of third parties related
thereto.

 

10.4                     If Buyer becomes aware of any infringement by
third parties of any of Seller’s Background IP Rights. Buyer shall give written
notice to Seller of such fact, it being understood and agreed that Seller
alone shall decide, at its sole discretion, whether, and if so, what measures
shall be taken as a result of any such infringement.

 

10

 

ARTICLE 11: GENERAL PROVISIONS

 

11.1                     Force Majeure:
The failure of either Party to
perform any of its obligations hereunder solely by reason of, acts of
government - particularly if at any time Seller or its Product Maker cease to
be entitled for any reason whatsoever to sell or manufacture the Product-,
riots, wars, strikes, natural disaster such as fire, storm and flood or other
outside causes beyond its control, shall not be deemed to be a breach of this Agreement; provided, however, that
the Party so prevented from complying herewith shall continue to take all
actions within its power to comply as fully as possible herewith. If such
prevention continues for a period of more than sixty (60) days, then either
Party may terminate this Agreement, effective upon written notice to the other
Party.

 

11.2                     Assignment: This Agreement and each and every covenant, term and condition herein
is binding upon and inures to the benefit of the Parties hereto and their
respective successors, and may not be assigned or transferred by either Party
to a third party.

 

11.3                     Headings: Headings are inserted for convenience only and shall not affect the
meaning or interpretation of this Agreement.

 

11.4                     Waiver: No waiver of any default hereunder by either Party or any failure to
enforce any rights hereunder shall be deemed to constitute a waiver of any
subsequent default with respect to the same or any other provision hereof.

 

11.5                     Severability: Should any part of this Agreement be held
unenforceable or in conflict with the applicable laws or regulations of any
jurisdiction, the invalid or unenforceable part or provision shall be replaced
with a provision which accomplishes, to the extent possible, the original
business purpose of such part or provision in a valid and enforceable manner,
and the remainder of this agreement shall remain binding upon the Parties
hereto.

 

11.6                     Notices: All notices given by one Party to the other shall he sent by registered
air mail or fax to the other party’s address as first set out hereinabove or to
the latest address of such Party as shall have been communicated to the other
Party.

 

11.7                     Entire agreement: This Agreement constitutes the entire
Agreement between the parties and shall prevail over any other prior
understanding or terms (including Buyer’s general purchase conditions). Any
amendment or modification to this Agreement shall be valid only if made in
writing and signed by authorized representatives of the Parties.

 

ARTICLE 12: GOVERNING LAW – JURISDICTION

 

12.1.                  Governing Law: Without regard to choice of law provisions
and regardless of the place or places where the terms hereof are actually
performed, this Agreement shall be governed by,

 

11

 

construed
and enforced in accordance with the laws of France, excluding the Vienna
Convention on the International Sale of Goods dated 11 April 1980.

 

12.2.                  Jurisdiction: ANY DISPUTE ARISING IN CONNECTION WITH THE
VALIDITY, INTERPRETATION OR THE PERFORMANCE OF THIS AGREEMENT SHALL BE REFERRED
TO THE COURTS OF STRASBOURG, FRANCE.

 

IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be executed by their duly authorized representatives on the
day and date written below.

 

Made
and executed in two (2) counterparts, which taken together constitute one
and the same instrument, with one copy of each counterpart having been
submitted to each party.

 

	
  BUYER

  	
  SELLER

  
	
  Senesco technologies, Inc.

  	
  Polyplus transfection

  
			

 

	
  /s/
  Richard Dondero

  	
   

  	
  /s/
  Joelle Bloch

  	
   

  
	
  Name:
  Richard Dondero

  	
  Name:
  Joelle Bloch

  
	
  Title:
  Vice President

  	
  Title:
  President

  
	
  Place:

  	
  Place:
   Illkiorch

  
	
  Date:

  	
  Date:  06/27/2008

  

 

12

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