Document:

Exhibit 10.13

 

	

    	
LEASE AGREEMENT   BETWEEN WE GEORGE STREET, L.L.C. ("LANDLORD") AND KOLLTAN   PHARMACEUTICALS INC. ("TENANT")
    

 

	

    	
TABLE OF   CONTENTS 1. Basic Lease Information. 1 2. Lease Grant. 4 3. Commencement Date   Certificate 4 4. Rent. 4 5. Expenses and Taxes, 5 6. Compliance with Laws;   Use 9 7. Security Deposit and Assignment of Personal Property. 10 8. Services   to Be Furnished by Landlord. 11 9. Leasehold Improvements. 12 10. Repairs and   Alterations. 13 11. Utility Charges. 16 12. Entry by Landlord 17 13.   Assignment and Subletting. 17 14. Liens. 19 15. Indemnity and Waiver of   Claims. 20 16. Insurance. 20 17. Subrogation. 21 18. Casualty Damage. 21 19.   Condemnation 22 20. Events of Default 23 21. Remedies. 24 22. Limitation of   Liability. 25 23. No Waiver 25 24. Quiet Enjoyment. 25 25. Intentionally   Omitted. 26 26. Holding Over 26 27. Subordination to Mortgages; Estoppel   Certificate 26 28. Attorney's Fees 27 29. Notice. 27 30. Excepted Rights. 28   31. Surrender of Premises. 28 32, Environmental Compliance. 29 33.   Miscellaneous. 32 34. Option to Expand. 34 35. Renewal 35 36. Entire   Agreement. 36
    

 

	

    	
LEASE AGREEMENT   This Lease Agreement (the "Lease") is made and entered into as of   the 5th day of January, 2009 (the "Effective Date") , by and   between WE GEORGE STREET, L.L.C., a Delaware limited liability company   ("Landlord") and KOLLTAN PHARMACEUTICALS INC., a Delaware   corporation ("Tenant"). 1. Basic Lease Information. (a)   "Building" shall mean the building located at 300 George Street,   New Haven, Connecticut, as more particularly described on Exhibit A to this   Lease. (b) "Rentable Square Footage of the Building" is deemed to   be 518,940 square feet. (c) "Premises" shall mean that certain   space on the 5th Floor of the Building consisting of approximately 7,775 rentable   square feet of space substantially as shown on the Floor Plan attached hereto   as Exhibit A-1 to the Lease, in the aggregate, subject to confirmation of   actual area of the Floor Plan following completion of the Initial   Alterations. (d) "Lab Space" shall mean that certain space on the   5th floor of the Building consisting of approximately 3,888 rentable square   feet of space (the "Rentable Square Footage of the Lab Space")   substantially as shown on the Floor Plan attached hereto as Exhibit A-2 to   the Lease. (e) "Office Space" shall mean that certain space on the   5th floor of the Building consisting of approximately 3,887 rentable square   feet of space (the "Rentable Square Footage of the Office Space")   substantially as shown on the Floor Plan attached hereto as Exhibit A-2 to   the Lease. Notwithstanding the definition of Lab Space and Office Space set   forth herein, Landlord and Tenant agree that the exact breakdown of the Lab   Space and Office Space square footage remains to be confirmed (though not to   exceed approximately 7,775 rentable square feet in the aggregate), and both   parties agree, once the square footage has been confirmed, to modify the   Lease to reflect the correct square footage of each space, and adjust the   Base Rent and Tenant's Pro Rata Share, as necessary. (f) "Base   Rent": Period Rent Per RSF Annual Base Rent Monthly Installments From   the Lab Space Rent Commencement Date to the day prior to the Office Space   Rent Commencement Date 3,888 rsf at $24.88 $96,733.44 $8,061.12
    

 

	

    	
From the Office   Space Rent 7,775 rsf at $24.88 $193,442.00   $16,120.17 Commencement Date through the end of Lease Year 1 Lease Year 2 7,775 rsf at $25.21 $196,007.75   $16,333.98 Lease Year 3 7,775 rsf at $25.54 $198,573.50 $16,547.79 (g) "Additional   Rent" means all sums (exclusive of Base Rent) that Tenant is required to pay under this Lease. (h) "Rent" means,   collectively, Additional Rent and Base Rent. (i) "Lease Year" means   for the first Lease Year the period commencing on the Commencement Date,   through the Office Space Rent Commencement   Date, and ending on the last day of the 12th   full month after the Office Space Rent   Commencement Date (unless the Office Space Rent Commencement Date is the   first day of the month, in which event the first Lease Year shall end on the day prior to the first anniversary of the   Office Space Rent Commencement Date) and each Lease Year thereafter shall be   the 12 month period immediately following the expiration of the preceding   Lease Year. (j) "Tenant's Pro Rata Share" shall be .75% from the   Lab Space Rent Commencement Date through the day prior to the Office Space   Rent Commencement Date, and 1.50% from and after the Office Space Rent Commencement Date   and, if recalculated shall be the quotient   of the Rentable Square Footage of the Lab Space or the Rentable Square   Footage of the Office Space, as the case   may be, divided by the Rentable Square footage of the Building. (k)   "Term" means three (3) Lease Years, unless sooner terminated or   extended, in accordance with the provisions set forth herein. (I) "Commencement   Date" means the Effective Date of this Lease. (m) "Lab Space   Rent Commencement Date" means the date which is the earlier to occur of   (i) the date of Substantial Completion of the Initial Alterations for the Lab   Space (as defined on Exhibit C), or (ii) the date which is one hundred eighty (180) days from the   Effective Date. (n)   "Office Space Rent Commencement Date" means the date which is the   earlier to occur of (i) the date of Substantial Completion of the Initial   Alterations for the Office Space (as defined on Exhibit C), or (ii) the   date which is one hundred eighty (180) days from the Effective Date. (o)   "Termination Date" means the last day of Lease Year 3. (p)   "Tenant Allowance" means$ 162,500.00, which is $20.90 per rentable   square foot of the Premises for Initial   Alterations in accordance with Exhibit   C attached hereto.
    

 

	

    	
(q)   "Security Deposit" means   $32,240.33. (r) "Guarantor" NONE. (s)   "Broker" NONE. (t) "Permitted Use" means general office use and operation of dry or wet bench   laboratory research facilities limited to those meeting the National   Institutes of Health and Centers for Disease Control and Prevention for   bio-safety levels ("BSLs") BSL-1 and BSL-2 and in no event for any   use/research involving infectious diseases, other than as permitted in BSL-1   and BSL-2. (u) "Notice Addresses": Tenant: Kolltan   Pharmaceuticals Inc. 300 George Street New Haven, Connecticut 06510 Landlord:   WE George Street, L.L.C. Winstanley Enterprises LLC 150 Baker Avenue   Extension, Suite 303 Concord, Massachusetts 01742 Attention: Mr. Carter J.   Winstanley (v) "Law(s)" means all applicable statutes, codes, ordinances, orders, rules   and regulations of any municipal or governmental entity, as well as any   judicial or administrative interpretation thereof, including without   limitation, Laws related to the environment and human health and safety. (w) "Property" means the   Building and other related improvements together with the parcel( s) of land on which they are located. (x) "Laboratory Area" means any areas within the Premises having (i) 2 hour fire   walls separating such Laboratory Area from non-Laboratory Areas in the   Premises and (ii) negative air pressure relative to the air pressure in other   areas of the Premises. (y) "Substantial   Completion" shall have the   meaning ascribed to it in Exhibit C. (z) "Initial Alterations" shall have the meaning ascribed to it in Exhibit C. (aa) "BOMA" means a measurement of rentable or useable square footage of   space using the current Building Owners and Managers Association International   ANSI Z65.1 method of measurement. (bb) "Property Manager" means Winstanley Property Management.
    

 

	

    	
 2. Lease Grant. (a) From and   after the Commencement Date, Landlord leases the Premises to Tenant and Tenant leases the Premises from Landlord, together   with the right in common with others to use any portions of the Property that   are designated by Landlord for the common use of tenants and others, such as   sidewalks, common corridors, elevator foyers, restrooms, and lobby areas (the   "Common Areas"). (b) Tenant represents that Tenant has inspected   the Premises and the Building and is thoroughly acquainted with their   condition and, except for latent defects, takes the Premises "as   is", and the taking of possession by Tenant shall be conclusive evidence   that the Premises and the Building were in good and satisfactory condition at   the time possession was taken by Tenant, other than for latent defects.   Except as may be expressly set forth in this Lease, neither Landlord nor Landlord's   agents have made any representations or promises with respect to the   condition of the Building, the Premises, the Property or any other matter or   thing relating to or affecting the Building or the Premises, and no rights,   easements or licenses are acquired by Tenant by implication or otherwise. (c)   Landlord represents that on the Commencement Date, the Building and the   Premises, including without limitation the electrical, plumbing, HVAC and   security systems serving the Building and Premises shall be in good working   order and condition, and the roof and windows of the Building and ceiling and   windows of the Premises shall be free of leaks. (d) Landlord and Tenant agree   that measurements of the rentable and usable square footage of the Building   and the Premises shall be determined by using BOMA. 3. Commencement Date Certificate. Tenant shall   use commercially reasonable efforts to cause Substantial Completion of the   Initial Alterations for the Lab Space on or before May 1, 2009, and to cause   Substantial Completion of the Initial Alterations for the Office Space on or   before the date which is one hundred eighty (180) days from the Effective   Date. Landlord and Tenant shall execute a certificate confirming the Lab   Space Rent Commencement Date and the Office Space Rent Commencement Date   promptly after the occurrence of each. The Term of this Lease shall expire,   unless earlier extended or terminated in   accordance with the terms hereof, on the scheduled Termination Date, 4. Rent. (a) As   consideration for this Lease, Tenant shall pay Landlord, without any setoff   or reduction, the total amount of Base Rent and Additional Rent when due   throughout the Term. The obligation to pay Rent is an independent covenant of   Tenant. Tenant shall pay and be liable for all rental, sales and use taxes (but excluding income taxes payable by   Landlord), if any, imposed upon or measured by Rent under applicable Law.   Base Rent and recurring monthly charges of Additional Rent shall be due and payable in advance on the first   day of each calendar month without
    

 

	

    	
notice or   demand. Tenant's obligation to pay Base Rent and Additional Rent for the Lab   Space shall commence on the Lab Space Rent Commencement Date and Tenant's   obligation to pay Base Rent and Additional Rent for the Office Space shall   commence on the Office Space Rent Commencement Date. All other items of Rent   shall be due and payable by Tenant on or before 30 days after billing by   Landlord. All payments of Rent shall be by good and sufficient check or by   other means (such as automatic debit or electronic transfer) acceptable to   Landlord. If Tenant fails to pay any item or installment of Rent within five   (5) days of the date when due, Tenant shall pay Landlord an administrative fee equal to 5% of the past due   Rent. If a commencement date occurs on a day other than the first day of a   calendar month or if the Term terminates on a day other than the last day of   a calendar month, the monthly Base Rent and Tenant's Pro Rata Share of any   Taxes (defined in Article 5) or   Expenses (defined in Article 5) for the month shall be prorated based on the   number of days in such calendar month. Landlord's acceptance of less than the   correct amount of Rent shall be considered a payment on account of the   earliest Rent due during the term. No endorsement or statements on a check or   letter accompanying a check or payment shall be considered an accord and   satisfaction, and either party may accept the check or payment without   prejudice to that party's right to recover the balance or pursue other   available remedies. (b) This Lease is intended by the parties hereto to be a   so-called net lease and the Base Rent shall be received by Landlord net of   all costs and expenses related to the Property, the Building and the   Premises, except as otherwise set forth herein. Tenant shall pay to Landlord,   in addition to Tenant's obligation to pay its Pro Rata Share of Expenses (as   defined below) and Taxes (as defined below), all other costs which are   specifically set forth herein as being the obligation of Tenant, to Landlord,   as Additional Rent. 5. Expenses and Taxes. (a) Commencing on the applicable   Rent Commencement Date, Tenant shall pay Tenant's Pro Rata Share of Expenses   and Taxes for each calendar year during the Term for the Lab Space and/or   Office Space, as applicable. Landlord shall provide Tenant with a good faith   estimate of the Expenses and of the Taxes for each calendar year during the   Term. On or before the first day of each month, Tenant shall pay to Landlord   a monthly installment equal to one-twelfth of Tenant's Pro Rata Share of   Landlord's estimate of the Expenses and Taxes. If Landlord determines that   its good faith estimate of the Expenses or of the Taxes was incorrect by a   material amount, Landlord may provide Tenant with a revised estimate. After   its receipt of the revised estimate, Tenant's monthly payments shall be based   upon the revised estimate. If Landlord does not provide Tenant with an   estimate of the Expenses or of the Taxes by January 1 of a calendar year,   Tenant shall continue to pay monthly installments based on the previous   year's estimate(s) until Landlord provides Tenant with the new estimate. Upon   delivery of the new estimate, an adjustment shall be made for any month for   which Tenant paid monthly installments based on the previous year's   estimate(s). Tenant shall pay Landlord the amount of any underpayment within   30 days after receipt of the new estimate. Any overpayment shall be, at   Landlord's option, refunded to Tenant within 30 days or credited against the   next due future installment(s) of Additional Rent. (b) As soon as is   practical following the end of each calendar year, Landlord shall furnish   Tenant with a statement of the actual Expenses and Taxes for the prior   calendar year.
    

 

	

    	
If the   estimated Expenses and/or estimated Taxes for the prior calendar year is more   than the actual Expenses and/or actual Taxes, as the case may be, for the   prior calendar year, Landlord shall, at Landlord's option either refund the   overpayment within 30 days following the delivery of the statement or apply   any overpayment by Tenant against Additional Rent due or next becoming due,   provided if the Term expires before the determination of the overpayment,   Landlord shall refund, within 30 days after the delivery of the statement,   any overpayment to Tenant after first deducting the amount of Rent due. If   the estimated Expenses and/or estimated Taxes for the prior calendar year is   less than the actual Expenses and/or actual Taxes, as the case may be, for   such prior year, Tenant shall pay Landlord, within 30 days after its receipt   of the statement of Expenses and/or Taxes, any underpayment for the prior   calendar year. (c) "Expenses" means all   costs and expenses incurred in each calendar year in connection with   operating, maintaining, repairing, and managing the Building and the Property   including, but not limited to: (i) Labor costs, including wages, salaries,   social security and employment taxes, medical and other types of insurance,   uniforms, training, and retirement and pension plans. (ii) Management fees,   the cost of equipping and maintaining a management office, accounting and   bookkeeping services, legal fees not attributable to leasing or collection   activity, and other administrative costs. Landlord, by itself or through an   affiliate, shall have the right to directly perform or provide any services   under this Lease (including management services), provided that the cost of   any such services shall not exceed the cost that would have been incurred had   Landlord entered into an arms-length contract for such services with an   unaffiliated entity of comparable skill and experience. (iii) The cost of   services, including amounts paid to service providers and independent   contractors and the rental and purchase cost of parts, suppliers, tools and   equipment. (iv) Premiums and deductibles paid by Landlord for insurance,   including workers compensation, causes of loss — special form, earthquake,   general liability, rental loss, environmental, elevator, boiler and other   insurance customarily carried from time to time by owners of comparable buildings. (v) Electrical Costs (defined below)   and charges for water, gas, steam and sewer, allocable to the Common Areas of   the Building but excluding those charges for which Landlord is reimbursed by   tenants. "Electrical Costs" means charges paid by   Landlord for electricity; costs incurred in connection with an energy   management program for the Property; and, if and to the extent permitted by   Law, a fee for the services provided by Landlord in connection with   the selection of utility companies and the negotiation and administration of   contracts for electricity, provided that such fee shall not exceed 50% of any   savings obtained by Landlord. Electrical Costs shall be adjusted as follows: (A) amounts received by Landlord   as reimbursement for electrical consumption metered to Tenant as set forth in   Section 1 I shall be deducted from Electrical Costs; (B) the cost of   electricity incurred to provide overtime IIVAC to specific   tenants (as reasonably
    

 

	

    	
estimated by   Landlord) shall be deducted from Electrical Costs; and (c) the cost of   electricity consumed by tenants (and/or Landlord's affiliates, as a tenant)   for all other tenant spaces in the Building shall be deducted from Electrical   Costs. (vi) The cost of all window and other cleaning and janitorial provided   to the Common Areas, snow and ice removal and security services. (vii) The   cost of maintenance, repair and replacement of (A) exterior and interior   plantings and landscaping and (B) Common Areas, including, without   limitation, driveways and sidewalks. (viii) The amortized cost of capital   improvements (as distinguished from replacement parts or components installed   in the ordinary course of business) and alterations and improvements made to   the Property which are: (A) performed primarily to reduce operating expenses   costs or otherwise improve the operating efficiency of the Property; or (B)   required to comply with any Laws. The cost of capital improvements shall be   amortized by Landlord over the useful life as determined by generally   accepted accounting principals (GAAP). The amortized cost of capital   improvements shall include actual or imputed interest at the rate that   Landlord would reasonably be required to pay to finance the cost of the   capital improvement. (ix) If Landlord incurs Expenses for the Property   together with one or more other buildings or properties, whether pursuant to   a reciprocal easement agreement, common area agreement or otherwise, the   shared costs and expenses shall be equitably prorated and apportioned between   the Property and the other buildings or properties. (x) Expenses shall not   include: the cost of capital improvements (except as set forth in subsection   (viii) above); depreciation; interest (except as provided in subsection   (viii) above for the amortization of capital improvements); principal payments   of mortgage and other non- operating debts of Landlord; the cost of repairs   or other work to the extent Landlord is reimbursed by insurance or   condemnation proceeds; costs in connection with leasing space in the   Building, including brokerage commissions; lease concessions, including   rental abatements and construction allowances granted to specific tenants;   costs incurred in connection with the sale, financing or refinancing of the   Property; fines, interest and penalties incurred due to the late payment of   Taxes or Expenses; costs, expenses, fines, penalties, and fees including   legal and other professionals and consultants, related to, or incurred in   connection with, remediation of existing pollution of the soil and   groundwater at the Property including without limitation pursuant to any   applicable Remedial Action Plan, and costs for imposing ELURs (as defined below); organizational expenses associated with the creation and operation of the entity which constitutes   Landlord; payments, fines, liabilities, penalties, fees, costs and expenses   including legal fees, costs and expenses incurred by Landlord in connection   with any claims, action, lawsuit, settlement or judgment to the extent the   other party prevails; or any penalties or damages that Landlord pays to   Tenant under this Lease or to other tenants in the Building under their   respective leases. If the Building is not at least 95% occupied during any   calendar year or if Landlord is not supplying services to at least 95% of the   total Rentable Square Footage of the Building at any time during a calendar   year, Expenses shall, at
    

 

	

    	
Landlord's   option, be determined as if the Building has been 95% occupied and Landlord   had been supplying service to 95% of the Rentable Square Footage of the   Building during that calendar year. (d) Taxes Defined. "Taxes"   shall mean: (i) all real estate taxes and other assessments on the Building   and/or Property, including, but not limited to, assessments for special   improvement districts and building improvement districts, taxes and   assessments levied in substitution or supplementation in whole or in part of   any such taxes and assessments and the Property's share of any real estate   taxes or assessments under any reciprocal easement agreement, common area   agreement or similar agreement as to the Property; (ii) all personal property   taxes for property that is owned by Landlord and used in connection with the   operation, maintenance and repair of the Property (provided, however, if   Landlord incurs personal property taxes for property used in connection with   the operation, maintenance and repair of other buildings or properties in   addition to the Property, the shared personal property taxes will be   equitably prorated and apportioned between the Property and the other   buildings or properties) ; and (iii) all costs and fees incurred in   connection with seeking reductions in any tax liabilities described in (i)   and (ii), including, without limitation, any costs incurred by Landlord for   compliance, review and appeal of tax liabilities. Without limitation, Taxes   shall not include any income, capital levy, franchise, capital stock, gift,   estate or inheritance tax. If an assessment is payable in installments, Taxes   for the year shall include the amount of the installment and any interest due   and payable during the year. For all other real estate taxes, Taxes for that   year shall, at Landlord's election, include either the amount accrued or   assessed for the year or the amount due and payable for that year, provided   that Landlord's election shall be applied consistently throughout the Term.   If a change in, or abatement of, Taxes is obtained for any year of the Term   during which Tenant paid Tenant's Pro Rata Share of any Taxes, then Taxes for   that year will be retroactively adjusted and Landlord shall provide Tenant,   within thirty (30) days of such adjustment, with a refund, if any, based on   the adjustment. Tenant shall pay Landlord the amount of Tenant's Pro Rata   Share of any such increase in the Taxes within 30 days after Tenant's receipt   of a statement from Landlord. (e) Audit Rights. Tenant may, within 90 days   after receiving Landlord's statement of Expenses and Taxes, give Landlord   written notice ("Review Notice") that Tenant intends to review   Landlord's records of the Expenses and Taxes for that calendar year. Within   ten (10) business days after receipt of the Review Notice, Landlord shall   make all pertinent records available for inspection that are reasonably   necessary for Tenant to conduct its review. Tenant may inspect the records at   the office of Landlord or Landlord's property manager. If Tenant retains an   agent to review Landlord's records, the agent must be with a licensed CPA   firm and such agent shall not be compensated based on a percentage of   improper charges identified by the audit. Except as set forth below,   Tenant shall be solely responsible for all costs, expenses and fees incurred   for the audit. Within 60 days after the records are made available to Tenant,   Tenant shall have the right to give Landlord written notice (as   "Objection Notice") stating in reasonable detail any objection to   Landlord's statement of Expenses or Taxes for that year. If Tenant fails to   give Landlord an Objection Notice within the 60 day period or fails to   provide Landlord with a Review Notice within the 90 day period described   above, Tenant shall be deemed to have approved Landlord's statement of   Expenses or Taxes and shall be barred from raising any claims regarding the   Expenses or Taxes for that year based solely on the documents, provided,   however, Tenant reserves its right to make a claim arising out of information   that was not previously provided to its   auditor so long as such
    

 

	

    	
information   materially changes the result of the audit. If Tenant provides Landlord with   a timely Objection Notice, Landlord and Tenant shall work together in good   faith to resolve any issues raised in Tenant's Objection Notice. If Landlord   and Tenant determine that Expenses or Taxes for the calendar year are less than reported, Landlord shall provide   Tenant at Landlord's option either a refund of the amount of overpayment   within 30 days thereafter or with a credit against the next installment of   Rent in the amount of any overpayment by Tenant. Likewise, if Landlord and   Tenant determine that Expenses or Taxes for the calendar year are greater   than reported, Tenant shall pay Landlord the amount of any underpayment   within 30 days. The records obtained by Tenant shall be treated as   confidential. In no event shall Tenant be permitted to examine Landlord's   records or to dispute any statement of   Expenses or Taxes unless Tenant has paid and continues to pay all Rent when   due. In the event that Tenant's audit determines Landlord's statement of   actual Expenses is, in the aggregate, less than reported by an amount that   exceeds five percent (5%), Landlord shall reimburse Tenant for the   out-of-pocket costs, expenses and fees paid by Tenant to its auditor, not to   exceed $2,500.00. (f) Personal Property Taxes. Tenant shall pay for all ad valorem taxes on its personal property, and on the value of all tenant improvements   to the extent the improvements exceed a building   standard build-out. (g) Expenses   for Indemnification. Notwithstanding anything contained in this Lease to the   contrary, Landlord shall not be entitled to pass through any costs or   expenses incurred by Landlord in connection with Landlord's indemnification   of Tenant pursuant to this Lease, and such costs and expenses shall not be   included in Rent. 6. Compliance with   Laws; Use. The Premises shall be used only for the Permitted Use and for no other use   whatsoever. Tenant shall not use or permit the use of the Premises for any   purpose which is illegal, dangerous to persons or property or which, in   Landlord's reasonable opinion, unreasonably disturbs any other tenants of the   Building or interferes with the operation of the Building. Landlord   represents that, on the Commencement Date, the Common Areas and Premises   shall comply with all applicable Laws, including, without limitation, the   Americans with Disabilities Act Accessibility Guidelines for Buildings and   Facilities (the "ADAAG") and with all applicable Regulations of the   National Board of Fire Underwriters, including compliance and with the   National Fire Code Bulletins, NFPA 30 (the Flammable and Combustible Liquids   Code) and NFPA 45 (the standard for Fire Protection in Laboratories using   Chemicals). Tenant shall comply with all applicable Laws, including, without   limitation, the ADAAG and with all applicable Regulations of the National   Board of Fire Underwriters, including Compliance and with the National Fire   Code Bulletins, NFPA 30 and NFPA 45, as well as all applicable zoning laws   regarding the operation of Tenant's business and the use, condition,   configuration and occupancy of the Premises from and after the Commencement   Date. Tenant and Landlord, within 10 days after receipt, shall each provide   the other with copies of any notices it receives regarding a violation of any   Laws with respect to the Premises. Tenant shall comply with the rules and   regulations of the Building attached as Exhibit B and such other reasonable rules and regulations   adopted by Landlord from time to time. Tenant shall also cause its agents, contractors, subcontractors,   employees, customers, and subtenants to
    

 

	

    	
comply with all   rules and regulations. Landlord shall not knowingly discriminate against   Tenant in Landlord's enforcement of the rules and regulations. 7. Security Deposit and Assignment of Personal   Property. The Security Deposit shall be delivered to Landlord upon the   execution of this Lease by Tenant and shall be held by Landlord without   liability for interest as security for the performance of Tenant's   obligations. The Security Deposit is not an advance payment of Rent or a   measure of Tenant's liability for damages. In lieu of all cash, Tenant may   provide Landlord with an unconditional, irrevocable, assignable letter of   credit, (the "Letter of Credit") for all or a   portion of the Security Deposit. In the event Tenant furnishes the Letter of   Credit, the Letter of Credit shall be on the   following terms and conditions: (i) issued by a commercial bank acceptable to   Landlord, which bank must have a counter for presentment in New Haven or   Hartford, Connecticut; (ii) having a term which shall have an expiration date   not sooner than 60 days after the Termination Date, however, if the Letter of   Credit has an earlier expiration date, it shall contain a so-called   "evergreen clause" and be automatically renewed prior to the stated   expiration date(s) until a date that is not sooner than 60 days after the   Termination Date; (iii) available for negotiation by draft(s) at sight   accompanied by a statement signed by Landlord stating that the amount of the   draw represents funds due to Landlord (or its successors and assigns) due to   the failure of Tenant to pay Base Rent and/or Additional Rent when due or   otherwise perform its obligations under this Lease and (iv) be otherwise on   commercially reasonable terms and conditions reasonably satisfactory to   Landlord. It is agreed that in the event Tenant defaults beyond any   applicable notice and cure period in respect of any of the terms, provisions,   covenants, and conditions of this Lease, including, but not limited to, the   payment of Base Rent and Additional Rent, Landlord may draw upon the Letter   of Credit or upon the funds held on account as the Security Deposit to the   extent required for the payment of any Base Rent and Additional Rent or any   other sum as to which Tenant is in default or for any sum which Landlord may   expend or may be required to expend by reason of Tenant's default (beyond   applicable notice and cure periods) in respect of any of the terms,   provisions, covenants, and conditions of this Lease, including, but not   limited to, any damages or deficiency accrued before or after summary   proceedings or other re-entry by Landlord. In the event the bank issuing the   Letter of Credit gives Landlord notice that the Letter of Credit will not be   renewed (such notice being addressed and delivered to Landlord as required by   this Lease) it shall be deemed to be an automatic default entitling Landlord   to draw upon such bank at sight for the balance of the Letter of Credit and   hold or apply the proceeds thereof in accordance with the terms of this   Lease. Landlord shall return any unapplied portion of the Security Deposit to   Tenant within 60 days after the later to occur of: (1) payment by Tenant in   full of all Rent and Additional Rent due and completion of any restoration   required under the Lease; (2) the date Tenant surrenders possession of the   Premises to Landlord in accordance with this Lease; or (3) the Termination   Date. Tenant further covenants that it will not assign or encumber or attempt   to assign or encumber the Letter of Credit or any funds on deposit and that   neither Landlord nor its successors or assigns shall be bound by any such assignment,   encumbrance, attempted assignment or attempted encumbrance. In the event   Landlord draws upon the Letter of Credit or on funds on deposit as the   Security Deposit, Tenant shall provide a new irrevocable letter of credit (on   the terms set forth above) or with cash in the amount of the amount so drawn   within seven (7) days after Landlord notifies Tenant of the draw or   withdrawal so that at all times the total amount of Letters of Credit and/or   funds in the account held
    

 

	

    	
by Landlord   shall be equal to the aggregate Security Deposit. If Landlord transfers its   interest in the Premises, Landlord may assign the Security Deposit to the   transferee and, following the assignment, Landlord shall have no further liability for the return of the Security Deposit, provided the   transferee acknowledges in writing its receipt of the Security Deposit.   Tenant shall have the right to substitute cash for the Letter of Credit and   vice versa, provided that it shall be for the entire amount of the Security Deposit. Landlord shall not be required to keep the Security   Deposit separate from its other accounts. 8. Services to Be Furnished by Landlord. (a) Landlord agrees to furnish Tenant with the following   Building systems and services: (i) hot and cold water service for use in lavatories   on each floor on which the Premises are located; (ii) domestic cold water   through the base Building system; (iii) condenser-water, pre­conditioned and   delivered through the condenser loop of the Building to supply Tenant   specific heating, ventilating and air-conditioning systems serving areas   other than the Laboratory Area within the Premises and the refrigeration   systems within the Laboratory Area; (iv) tempered fresh air (HVAC) delivered   through the base Building system; (v) drainage system for domestic water and   sanitary waste at locations approved and designated by Landlord; (vi) a   back-up generator providing for emergency lighting of common areas of the   Building; (vii) maintenance and repair of the Premises and Property, to the   extent and as described in Section 10(b); (viii) elevator service; (ix)   electricity to the Premises, in accordance with and subject to the terms and   conditions in Article 11 of this Lease; (x) card key access   and a lock system to the Premises 24 hours a day, 7 days a week; and (xi)   such other services as Landlord reasonably determines are necessary or   appropriate for the Property, which may include security. Landlord's expenses   incurred in maintaining, repairing and operating the Building systems and   providing the foregoing services shall be Expenses payable by Tenant in   accordance with the provisions of this Lease. (b) Landlord's failure to   furnish, or any interruption or termination of, services or utilities due to   the application of Laws, the failure of any equipment, the performance of   repairs, improvements or alterations, or the occurrence of any event or cause   beyond the reasonable control of Landlord (a "Service Failure") shall not render Landlord liable to Tenant,   constitute a constructive eviction of Tenant, give rise to an abatement of   Rent, nor relieve Tenant from the obligation to fulfill any covenant or   agreement. In no event shall Landlord be liable to Tenant for any loss or   damage, including the theft of Tenant's Property (defined in Article 16),   arising out of or in connection with the failure of any security services,   personnel or equipment, provided that Landlord's and/or its employee's acts,   omissions or negligence did not contribute to or cause the loss or damage.   (c) Notwithstanding anything contained in this Section 8 to the contrary, if   a Service Failure continues for five (5) consecutive business days and such   Service Failure is caused by the negligence or willful misconduct of Landlord   or any of its agents, employees or contractors, then Tenant shall be entitled   to an abatement of all Rent hereunder in proportion to the extent to which   the interruption prevents Tenant from using the Premises for Tenant's normal   purposes, with such abatement to begin on the   sixth (6th) business day after such occurrence and continuing until
    

 

	

    	
such service   has been restored to a level sufficient to permit Tenant to resume its normal   business use. 9, Leasehold   Improvements. All improvements to the Premises (collectively, "Leasehold Improvements") shall be owned by Landlord and shall remain upon the Premises   without compensation to Tenant, except that Tenant may remove its vacuum   system equipment prior to the Termination Date, provided Tenant shall repair   any damage caused by the installation or removal of such vacuum system   equipment. Tenant shall remove, at Tenant's expense, unless Landlord, by   written notice to Tenant otherwise advises Tenant within 30 days prior to the   Termination Date that Tenant shall not remove, the following: (1) Cable   (defined in Section 10(a)) installed by or for the exclusive benefit of   Tenant and that is located within the Premises; (2) Auxiliary Generator   and/or Fuel Supply (defined in Section 10(c)) installed by or for the   exclusive benefit of Tenant and located in the Premises or other portions of   the Building; and (3) any or all Leasehold Improvements that are performed by   or for the benefit of Tenant and, in Landlord's reasonable judgment, are of a   nature that would require removal and repair costs that are materially in   excess of the removal and repair costs associated with standard laboratory or   office improvements (collectively referred to as "Required Removables"). Notwithstanding anything contained herein to the contrary,   Landlord agrees that the Initial Alterations shall not be deemed Required   Removables and may remain on the Premises at the end of the term and although   Tenant shall not be required to remove any of the Initial Alterations, Tenant   may remove the vacuum system equipment as provided above. Without limitation,   it is agreed that Required Removables may include internal stairways, raised   floors, personal baths and showers, vaults, rolling file systems, building   and roof penetrations, and property and equipment (including, without limitation, laboratory related   equipment) permanently affixed to the Premises or to the Building systems,   and structural alterations and modification of any type. The Required   Removables designated by Landlord to be removed shall be removed by Tenant   before the Termination Date. Tenant shall repair damage caused by the   installation or removal of Required Removables. If Tenant fails to remove any   Required Removables required by Landlord to be removed or perform related   repairs in a timely manner, Landlord, at Tenant's expense, may remove and   dispose of such Required Removables and perform the required repairs. Tenant,   within 30 days after receipt of an invoice, shall reimburse Landlord for the   reasonable costs incurred by Landlord. If Landlord elects to retain any of   the Required Removables, Tenant covenants that (i) such Required Removables   will be surrendered in good condition, free and clear of all liens and   encumbrances and (ii) if Cable is to be surrendered, it shall be left in safe   condition, properly labeled at each end and in each telecommunications/electrical   closet and junction box. Tenant may remove its trade fixtures, so long as   such fixtures are not permanently affixed to the Building or the Building   systems and not contained in or located above the ceiling, outside the   demising walls, beneath the floor of the Premises or in the interior walls of   the Premises. Notwithstanding the foregoing, Tenant, at the time it requests   approval for the Initial Alterations or for a proposed Alteration (defined in   Section 10 (c)), may request in writing that Landlord advise Tenant whether the   Initial Alterations, the Alteration or any portion of the Initial Alterations   or the Alteration will be designated as a Required Removable. Within ten (10)   days after receipt of Tenant's request, Landlord shall advise Tenant in   writing as to which portions of the Alteration, if any, will be considered to be a   Required Removable.
    

 

	

    	
10. Repairs and Alterations. (a) Tenant   shall, at its sole cost and expense, promptly perform all maintenance and   repairs to the Premises that are not Landlord's express responsibility under   this Lease, and shall keep the Premises in good condition and repair,   reasonable wear and tear excepted. Tenant's repair obligations include,   without limitation, repairs to: (i) floor coverings; (ii) interior partitions;   (iii) interior doors (including door(s) from Common Areas into the Premises);   (iv) the interior side of demising walls; (v) electronic, phone and data   cabling and related equipment (collectively, "Cable") that is   installed by or for the exclusive benefit of Tenant and located in the   Premises or other portions of the Building; (vi) any Auxiliary Generator and   Fuel Supply (defined below) that is installed by or for the exclusive benefit   of Tenant and located in the Premises or other portions of the Building,   (vii) air conditioning units, private showers and kitchens, including hot   water heaters, plumbing, and similar facilities serving Tenant exclusively;   (viii) Tenant's personal property and effects, including without limitation,   laboratory benches and trade equipment; (ix) Alterations performed by   contractors retained by Tenant, including related HVAC balancing; (x) Tenant   duct work or conduits located in chaseways and/or exhaust equipment and   systems located within or exclusively serving the Premises; and (xi) all   other repairs within the Premises, including, without limitation, those   required to plumbing, mechanical, electrical and HVAC systems located within   or exclusively serving the Premises up to and including the tie-in or point   of connection to the base Building systems. All work shall be performed in   accordance with the rules and procedures described in Section 10(c) below.   Tenant shall provide customary cleaning and rubbish removal service to the   Premises on each business day as required. If Tenant fails to make any   repairs to the Premises for which Tenant is responsible hereunder for more   than 15 days (or if the repair is of a nature that it can not reasonably be   completed within 15 days, fails to exercise efforts to commence the repair within   15 days) after written notice from Landlord (although notice shall not be   required if there is an emergency), Landlord may make the repairs, and Tenant   shall pay the reasonable cost of the repairs to Landlord within 30 days after   receipt of an invoice, together with an administrative charge in an amount   equal to 5% of the cost of the repairs. (b) Landlord shall keep and maintain   in good repair and working order and make repairs to and perform maintenance   upon: (i) structural elements of the Building; (ii) the base Building Systems   including the mechanical (including HVAC), electrical, plumbing and fire/life   safety systems serving the Building in general but excluding those for which   Tenant is responsible, such as the tie-ins or point of connection with those   systems which are located within or exclusively serving the Premises; (iii) Common   Areas; (iv) the roof of the Building, including the roof membrane; (v)   exterior windows of the Building and common area doors; and (vi) elevators   serving the Building. Landlord shall promptly make repairs (considering the   nature and urgency of the repair) for which Landlord is responsible. If   Landlord fails to make any repairs to the Premises for which Landlord is   responsible hereunder for more than 15 days (or if the repair is of a nature   that it can not reasonably be completed within 15 days, fails to exercise   efforts to commence the repair within 15 days) after written notice from   Tenant (although notice shall not be required if there is an emergency), Tenant may make the repairs, and Landlord shall pay   the reasonable cost of the repairs to Tenant within 30 days after receipt of an invoice therefor.
    

 

	

    	
(c) Tenant   shall not make alterations, additions or improvements to the Premises or   install any Cable or any Auxiliary Generator and/or Fuel Supply in the   Premises or other portions of the Building (collectively referred to as   "Alterations") without first obtaining the written consent of   Landlord in each instance, which consent shall not be unreasonably withheld   or delayed. Plans and specifications for all Alterations shall be prepared in   accordance with and not provide for any exceedance of the capacities of the   Building. However, Landlord's consent shall not be required for any   Alteration that satisfied all of the following criteria (a "Cosmetic   Alteration"): (i) is of a cosmetic nature such as painting,   wallpapering, hanging pictures and/or installing carpeting; (ii) is not   visible from the exterior of the Premises or Building; (iii) will not affect   the systems or structure of the Building; and (iv) does not require work to   be performed inside the walls or at, above or to the ceiling of the Premises.   However, even though consent is not required, the performance of Cosmetic   Alterations shall be subject to all the other provisions of this Section   10(c). Prior to starting work, including, without limitation, the initial   build-out, Tenant shall furnish Landlord with plans and specifications reasonably acceptable to Landlord;   names of contractors reasonably acceptable to Landlord (provided that   Landlord may designate specific contractors with respect to Building systems   and to the roof and Tenant shall be required to   utilize Landlord's mechanical, electrical and roofing consultants and/or   contractors provided (i) the written bid is commercially reasonable and   competitive with that of other consultants/contractors, or, (ii) regardless   of whether or not the bid is commercially reasonable, if Landlord's   mechanical, electrical and roofing consultants and/or contractors are   required to be used in order to maintain Landlord's warranty on such Building   systems or roof); copies of contracts;   copies of necessary permits and approvals, including certificate of occupancy   if applicable; evidence of contractor's and subcontractor's insurance in   amounts reasonably required by Landlord; and any security for performance   that is reasonably required by Landlord. Changes to the plans and   specifications must also be submitted to Landlord for its approval. Alterations shall be constructed in a good and   workmanlike manner using materials of a quality that is at least equal to the   quality designated by Landlord as the minimum standard for the Building.   Landlord may designate reasonable rules, regulations and procedures for the   performance of work in the Building and, to the extent reasonably necessary to avoid disruption to the occupants of the Building, shall have   the right to designate the time when Alterations may he performed. Except as   otherwise set forth herein, Tenant shall reimburse Landlord within 30 days   after receipt of an invoice for reasonable sums paid by Landlord for third   party examination of Tenant's plans for non-Cosmetic Alterations. In   addition, within 30 days after receipt of an invoice from Landlord, Tenant   shall pay Landlord a fee for Landlord's oversight and coordination of any   non-Cosmetic Alterations, other than Initial Alterations, equal to 10% of the   cost of the non-Cosmetic Alterations. Upon completion, Tenant shall furnish   "as-built" plans (except for Cosmetic Alterations, and Initial   Alterations for which Landlord's architect shall provide the as-built plans,   affidavits and lien waivers (the payment for which shall come from the Tenant   Allowance)), completion affidavits, full and final waivers of lien and   receipted bills covering all labor and materials. Tenant shall assure that   the Alterations comply with all insurance requirements and Laws. Landlord's   approval of an Alteration shall not be a representation by Landlord that the   Alteration complies with applicable Laws or will be adequate for Tenant's   use. Notwithstanding anything contained herein to the contrary, Tenant may,   at Tenant's discretion, install and maintain, in a location that is mutually   satisfactory to Landlord and Tenant, an auxiliary generator and/or fuel   supply, sufficient to meet Tenant's reasonable needs ("Auxiliary Generator and Fuel Supply"). Tenant shall comply with local ordinances and the   provisions of this Section
    

 

	

    	
10(c) when installing such Auxiliary Generator and Fuel Supply, and   Landlord shall not be entitled to any payments from Tenant with regard to   same. (d) In the event Tenant elects to perform any Alteration (whether   pursuant to the expansion right for the Expansion Area granted in this Lease   or any request made by Tenant throughout the Term of this Lease) which would   cause any one or more of the following   two events to occur: (i) an exceedance of the cubic feet per minute   ("cfm") for delivery of outside air to Laboratory Area beyond the   cfm for delivery of outside air to Laboratory Area   designated by Landlord as the minimum   standard for the Building, or (ii) an exceedance of the watts per square foot ("we') of demand power beyond   the wsf of demand power designated by Landlord as the minimum standard for   the Building (such occurrence, a "Significant Laboratory   Expansion"), then there will be an increase in the amount of annual Base   Rent per rentable square foot of $6.50 over the annual Base Rent per rentable   square foot payable from time to time as set forth in Section 1(d) solely   with respect to the "Deemed Excess Laboratory Area," as defined   below. (Calculations for the determination of any exceedance of cfm for   delivery of outside air or wsf of demand power to Laboratory Area shall be made on the basis of the usable square   footage of the Laboratory Area as the allowance for each designated by   Landlord is on the basis of usable square footage). The Deemed Excess   Laboratory Area shall be determined   based upon the plans and specifications submitted by Tenant in connection with any proposed Alteration of the Premises on   the basis of the greater of the exceedances, if any, of the two events used   to determine the occurrence of a Significant Laboratory Expansion as follows:   (i) As to an exceedance of cfm for delivery of outside air to Laboratory Area, the percentage that the cfm for all Laboratory   Area exceeds the cfm specified by Landlord for Laboratory Area, shall be   multiplied by the total rentable square footage of the total Laboratory Area.   The product so obtained shall be the amount of the Deemed Excess Laboratory   Area; and (ii) As to an exceedance of the wsf of demand power, the percentage   that the wsf for demand power for all Laboratory Area exceeds the wsf for   demand power specified by Landlord shall be multiplied by the total rentable   square footage of the total Laboratory Area. The product so obtained shall be   the amount of the Deemed Excess Laboratory Area. For example: Assume the   Premises consists of 20,000 rentable square feet ("rsf'), of which 12,000 rsf is Laboratory Area. Assume further that the cfm   for delivery of outside air and wsf of demand power for the Premises prior to   any alteration are equal to the capacity designated by Landlord. Assume   further that the significant Laboratory Expansion occurs due to Tenant   converting 4,000 rsf of office space to Laboratory Area. Assuming that the   total Laboratory Area exceeds the cfm for delivery of outside air by sixty   percent (60%) and it exceeds the wsf for demand power by fifty percent (50%).   Applying the methodology set forth above to determine the Deemed Excess   Laboratory Area: (i) the cfm exceedance is 60% x 16,000 (the original 12,000   rsf of Laboratory Area, plus the additional Laboratory Area of 4,000 rsf) or   9,600 rentable square feet; and (ii) the wsf exceedance is 50% X 16,000 or   8,000 rentable square feet. Accordingly, the Deemed Excess Laboratory Area is   9,600 rentable square feet and the applicable Base Rent per rentable square   feet for 9,600 rentable square feet of Deemed Excess Laboratory Area shall be   increased by $6.50 per rentable square feet.
    

 

	

    	
11. Utility   Charges. (a) From and after the earlier to   occur of the Lab Space Rent Commencement Date or the Office Space Rent   Commencement Date, Tenant shall pay, as Additional Rent, the cost of all   electricity, gas, water and all other utilities used or consumed at the   Premises, including, without limitation, the utilities and services described   in Article 5. (b) The electric, gas and water consumed and used at the   Premises shall be separately metered and said costs shall be paid directly by   Tenant to the utility company providing the same or if the cost is not directly payable to the utility companies   supplying utilities or services, then the actual costs incurred by Landlord,   net of all discounts and rebates received by Landlord in connection therewith   shall be paid by Tenant to Landlord as a separate line item of Expenses. (c)   All other utilities not separately metered, including, without limitation,   domestic cold water provided to the Building, sewer charges and common area   electric, shall be paid by Tenant as part of Expenses. Landlord may, at   Landlord's discretion, cause said utilities provided to the Building to be   separately metered or submetered, whereupon such utilities shall be directly   paid to the utility company providing such utility, or if not payable   directly to the providing utility company, paid to Landlord as a separate   line item of Expenses. (d) Tenant's use of electrical service shall not   exceed, either in voltage, rated capacity, or overall load, that which   Landlord deems to be standard for the Building. If Tenant requests permission   to consume excess electrical service, Landlord may refuse to consent or may   condition consent upon conditions that Landlord reasonably elects (including,   without limitation, the installation of utility service upgrades, meters,   submeters, air handlers or cooling units), and the additional usage (to the   extent permitted by Law), installation and maintenance costs shall be paid by   Tenant. The standard capacities for the Building are as set forth in the   attached Exhibit E. (e) Electrical service to the Premises may be furnished   by one or more companies providing electrical generation, transmission and   distribution services, and the cost of electricity may consist of several   different components or separate charges for such services, such as   generation, distribution and stranded cost charges. Landlord shall have the   exclusive right to select any company providing electrical service to the   Premises, to aggregate the electrical service for the Property and Premises   with other buildings, to purchase electricity through a broker and/or buyers   group and to change the providers and manner of purchasing electricity.   Landlord shall be entitled to receive a fee (if permitted by Law) for the   selection of utility companies and the negotiation and administration of   contracts for electricity, provided that the amount of such fee shall not   exceed 50% of any savings obtained by Landlord. If either the quantity or character of utility service is changed by the public utility corporation supplying such   service to the Building or the Premises is no longer available or suitable   for Tenant's requirements, no such change, unavailability or unsuitability   shall constitute an actual or constructive eviction, in whole or in part, or   entitle Tenant to any abatement or diminution
    

 

	

    	
of rent, or   relieve Tenant from any of its obligations under this Lease, or impose any   liability upon Landlord or Landlord's agents. (g) Tenant's consumption and   the delivery to the Premises of heating, ventilation and air-conditioning   will be separately metered as set forth in Section 11(b) above and the   actual out-of-pocket costs incurred by Landlord, net of all discounts and   rebates received by Landlord, in connection therewith shall be billed to Tenant   through the Building management system and payable by Tenant monthly,   together with Tenant's payment of Base Rent. 12. Entry by Landlord. Landlord, it   agents, contractors and representatives may enter the Premises to inspect or   show the Premises, to clean and make repairs, alterations or additions to the   Premises, and to conduct or facilitate repairs, alterations or additions to   any portion of the Building, including other tenants' premises. Except in   emergencies or to provide customary Building services after 6:00 p.m.   weekdays or on weekends, Landlord shall provide Tenant with reasonable prior   notice of entry into the Premises, which may be given orally. If reasonably   necessary for the protection and safety of Tenant and its employees, Landlord   shall have the right to temporarily close all or a portion of the Premises to   perform repairs, alterations and additions. However, except in emergencies,   Landlord will not close the Premises if the work can reasonably be completed   on weekends and after 6:00 p.m. weekdays or on weekends. Entry by Landlord   shall not constitute constructive eviction or entitle Tenant to an abatement   or reduction of Rent. Landlord agrees that it is solely responsible for the   safety and conduct of its agents, contractors, invitees, visitors and representatives (and   will carry appropriate insurance therefor) on the Premises and will indemnify   and hold harmless Tenant from any actual, out-of-pocket claim, damage,   injury, liability, judgment, loss, cost and expense, including reasonable legal   fees, costs and expenses arising out of or in connection with the entry onto   the Premises of Landlord, its agents, employees, contractors, invitees,   visitors and representatives. The foregoing shall however, in no event,   include consequential damages. Landlord shall be responsible for ensuring   that the Landlord, its agents, employees, contractors, invitees, visitors and   representatives do not touch, tamper with, disturb, inspect or in any way   interfere with Tenant's property except in the event of an emergency without   Tenant's prior consent. Notwithstanding the foregoing, in no event shall   Landlord, its agents, employees, contractors, visitors, invitees and   representatives tamper with, touch, disturb, inspect or in any way interfere with Tenant's work product, especially tissue material,   freezers, instruments, computers and biological material; except in the event   of an emergency which could lead to imminent loss of human life or   significant property damage to the Premises or Building, and where no other   reasonable alternative is available to Landlord. 13. Assignment and Subletting. (a) Except in connection with a Permitted Transfer (defined in   Section 13(e) below), Tenant shall not assign, sublease, transfer or encumber   any interest in this Lease or allow any third party to use any portion of the   Premises (collectively or individually, a "Transfer") without the   prior written consent of Landlord, which   consent shall not be unreasonably withheld or delayed if Landlord does not   elect to exercise its termination rights under Section 13(b) below. Without
    

 

	

    	
limitation, it   is agreed that Landlord's consent shall not be considered unreasonably   withheld with respect to an assignment, sublease, transfer or encumbrance of   this Lease if: (i) the proposed transferee's tangible net worth is not equal   to or greater than Tenant's tangible net worth as of the Effective Date or as   of the date of the request for the Transfer; (ii) the proposed transferee's   business is not suitable for the Building; (iii) the proposed transferee is a   governmental agency or other occupant of the Building; (iv) Tenant is in   default beyond the expiration of any applicable grace or notice and cure   periods in this Lease; or (v) any portion of the Building or Premises would   likely become subject to additional or different Laws as a consequence of the   proposed Transfer. No proposed sublease shall extend beyond the then current   term of the Lease. Any attempted Transfer in violation of this Article shall   constitute a breach of this Lease and shall, at Landlord's option, be void.   Consent by Landlord to one or more Transfer(s) shall not operate as a waiver   of Landlord's rights to approve any subsequent Transfer. In no event shall   any Transfer or Permitted Transfer release or relieve Tenant from any obligation   under this Lease. Notwithstanding anything contained herein to the contrary,   provided Tenant exercises its Expansion Option in accordance with the   provisions of Section 34 of the Lease, Landlord agrees to consent to Tenant's   sublease of the Expansion Space to Yale University or the Yale University   School of Medicine upon terms and conditions reasonably acceptable to   Landlord. (b) As part of its request for Landlord's consent to a Transfer,   Tenant shall provide Landlord with financial statements for the proposed   transferee, except Yale University or The Yale University School of Medicine,   a complete copy of the proposed assignment, sublease and other contractual   documents and such other information as Landlord may reasonably request. So   long as the proposed transfer is not a Permitted Transfer or previously   approved as otherwise set forth herein, Landlord shall, by written notice to   Tenant within 15 days of its receipt of the required information and   documentation, either: (i) consent to the Transfer by the execution of a   consent agreement in a form reasonably designated by Landlord or reasonably   refuse to consent to the Transfer in writing; or (ii) exercise its right to   terminate this Lease with respect to the portion of the Premises that Tenant   is proposing to sublet or assign. If Landlord exercises its right to   terminate this Lease, Landlord shall, in its notice of such exercise, give   Tenant notice of the termination date and such termination shall be   effective, without the necessity of any further notice to Tenant or amendment   to this Lease, on the date set forth in Landlord's notice, provided, however,   Tenant may, by giving notice to Landlord within ten (10) days after its   receipt of Landlord's notice of termination, withdraw its request to Transfer   and advise Landlord that Tenant desires to continue its tenancy in which   event Landlord's termination notice shall be deemed to be void and of no   further force and effect. In the event Landlord approves the Transfer (and   also in the event of a Permitted Transfer under subsection (e) below), and if   Tenant has provided a Letter of Credit for its Security Deposit, then Tenant   shall cause the issuer to amend the Letter of Credit, as and to the extent   necessary. (c) Tenant shall pay Landlord 50% of all rent and other   consideration which Tenant receives as a result of a Transfer that is in   excess of the Rent payable to Landlord for the portion of the Premises and   Term covered by the Transfer. Tenant shall pay Landlord for Landlord's share   of any excess within 30 days after Tenant's receipt of such excess   consideration. Tenant may deduct from the excess all reasonable and customary   third party expenses directly incurred by   Tenant attributable to the Transfer (other than Landlord's review fee, not to   exceed
    

 

	

    	
$1,500.00),   including brokerage fees, legal fees and construction costs provided Tenant   delivers to Landlord written documentation evidencing such costs. If Tenant   is in Monetary Default (defined in Section 20(a). below), Landlord may   require that all sublease payments be made directly to Landlord, in which   case Tenant shall receive a credit against Rent in the amount of any payments   received (less Landlord's share of any excess). (d) Except as provided below   with respect to a Permitted Transfer, if Tenant is a corporation, limited   liability company, partnership, or similar entity, and if the entity which   owns or controls a majority of the voting shares/rights at any time changes   for any reason (including but not limited to a merger, consolidation or   reorganization), such change of ownership or control shall constitute a   Transfer. The foregoing shall not apply so long as Tenant is an entity whose   outstanding stock is listed on a recognized security exchange, or if at least   80% of its voting stock is owned by another entity, the voting stock of which   is so listed. (e) Notwithstanding anything to the contrary contained herein,   Tenant may sublet all or a portion of its interest under this Lease to an   Affiliate (as defined below) of Tenant, or assign its entire interest under   this Lease to a successor to Tenant by purchase, merger, consolidation or   reorganization, or to an Affiliate Tenant, without the consent of Landlord   (such assignment or subletting, a "Permitted   Transfer"), provided that   all of the following conditions are satisfied: (i) Tenant is not in default   under this Lease; (ii) except in the case of an Affiliate of Tenant, Tenant's   successor shall own all or substantially all of the assets of Tenant; (iii)   Tenant's successor shall have a tangible net worth which is at least equal to   the greater of Tenant's tangible net worth at the Effective Date of this   Lease or Tenant's tangible net worth as of the day prior to the proposed   purchase, merger, consolidation or reorganization and Tenant, if requested by   Landlord, delivers to Landlord a guaranty by a parent or controlling entity   of Tenant's obligations under this Lease; and (iv) Tenant shall give Landlord   written notice at least 15 days prior to the effective date of the proposed   sublease or assignment. Tenant's notice to Landlord shall include information   and documentation showing that each of the above conditions has been   satisfied including, without limitation, financial statements of Tenant and   the proposed successor (which may include an annual report if such statements   are not yet available). Tenant's successor shall sign a commercially   reasonable form of assumption agreement. In addition to the foregoing, a   Permitted Transfer, where Landlord's consent shall not be necessary, shall   also include a sublease of all or any portion of the Premises or the   assignment of this Lease to an affiliate or subsidiary of Tenant, provided   that Tenant gives notice to Landlord of such sublease or assignment at least   thirty (30) days prior to the effective date thereof. For the purpose of this   Article, an "Affiliate" shall mean any entity which is controlled   by, controls or is under common control with Tenant. 14. Liens. Tenant shall   not permit mechanic's or other liens to be placed upon the Property, Premises   or Tenant's leasehold interest in connection with any work or service done or   purportedly done by or for benefit of Tenant. If a lien is so placed, Tenant   shall, within 60 days of notice from Landlord of the filing of the lien,   fully discharge the lien by setting the claim which resulted in the lien or   by bonding or insuring over the lien in the manner prescribed by the   applicable Law. If Tenant fails to discharge the lien, then, in addition to   any other right or remedy of Landlord,
    

 

	

    	
Landlord may   bond or insure over the lien or otherwise discharge the lien. Tenant shall reimburse Landlord for any amount paid by Landlord to bond   or insure over the lien or discharge the lien, including, without limitation,   reasonable attorneys' fees (if and to the extent permitted by Law) within 30   days after receipt of an invoice from Landlord. 15. Indemnity and Waiver of Claims. (a) Except to the extent caused by the negligence or willful   misconduct of Landlord or any Landlord Parties (defined below), Tenant shall   indemnify, defend and hold Landlord, its trustees, members, principals,   beneficiaries, partners, officers, directors, employees, and agents (the   "Landlord Parties") harmless against and from all liabilities,   obligations, damages, penalties, claims, actions, costs, charges and expenses,   including, without limitation, reasonable attorneys' fees and other professional fees (if and to the extent permitted   by Law), which may be imposed upon, incurred by or asserted against Landlord   or any of the Landlord Parties and arising out of or in connection with any   damage or injury occurring in the Premises or any acts or omissions   (including violations of Law) of Tenant, and the Tenant Parties (defined   below). (b) Except to the extent caused by the   negligence or willful misconduct of Tenant or any Tenant Parties, Landlord   shall indemnify, defend and hold Tenant, its trustees, members, principals,   beneficiaries, partners, officers, directors, employees and agents   ("Tenant Parties") harmless against and from all liabilities,   obligations, damages, penalties, claims, actions, costs, charges and   expenses, including, without limitation, reasonable attorneys' fees and other   professional fees (if and to the extent permitted by Law), which may be imposed upon, incurred by or asserted against Tenant or any of   the Tenant Parties and arising out of or in connection with the acts or omissions (including violations of Law) of Landlord   and the Landlord Parties. (c) Landlord and the Landlord Parties shall not be   liable for, and Tenant waives, all claims for loss or damage to Tenant's   business or loss, theft or damage to Tenant's Property or the property of any   person claiming by, through or under Tenant resulting from: (i) wind or   weather; (ii) the failure of any sprinkler, heating or air-conditioning   equipment, any electric wiring or any gas, water or steam pipes; (iii) the   backing up of any sewer pipe or downspout; (iv) the bursting, leaking or   running of any tank, water closet, drain or other pipe; (v) water, snow or   ice upon or coming through the roof, skylight, stairs, doorways, windows,   walks or any other place upon or near the Building; (vi) any act or omission   of any party other than Landlord or Landlord Parties; and (vii) any causes   not reasonably within the control of Landlord. Tenant shall insure itself against   such losses under Article 16 below. 16. Insurance. (a) Tenant shall carry and maintain the following insurance   ("Tenant's Insurance"), at its sole cost and expense: (i) ISO   Simplified Commercial General Liability Insurance applicable to the Premises   and its appurtenances providing, on an occurrence basis, a minimum combined   single limit of $2,000,000.00;   (ii) Special Form Property/Business Interruption Insurance written at replacement cost value and with a   replacement cost endorsement covering all of Tenant's trade fixtures, equipment, furniture and other personal property   within the Premises
    

 

	

    	
("Tenant's   Property"); (iii) Workers' Compensation Insurance as required by the   state in which the Premises is located and in amounts as may be required   applicable statute; and (iv) Employers Liability Coverage of at least   $500,000.00 per occurrence. Any company writing any of Tenant's Insurance   shall be reasonably acceptable to Landlord and its Mortgagee (as defined   below). All Commercial General Liability Insurance policies shall name Tenant   as a named insured and Landlord (or any successor), its property manager(s),   and its Mortgagee(s) (as defined in Article 27), and other designees of Landlord as their respective interests may appear,   as additional insureds. All policies of   Tenant's insurance shall contain certificates that the insurer(s) shall give   Landlord, its Mortgagee(s) and its designees at least 30 days' advance   written notice of any change, cancellation, termination or lapse of   insurance. Tenant shall provide Landlord with a certificate of insurance   evidencing Tenant's Insurance prior to the earlier to occur of the Effective   Date or the date Tenant is provided with possession of the Premises for any   reason, and upon renewals at least 15 days prior to the expiration of the   insurance coverage. Except as specifically provided to the contrary, the   limits of Tenant's insurance shall not limit its liability under this Lease.   (b) Landlord shall maintain, the cost of which shall be included in Expenses   (i) a policy of special form insurance, on the Premises and the Building, in   the amount of the full replacement value of the Building as the value may   exist from time to time, excluding foundations and footings; and (ii) an ISO   Simplified Commercial General Liability Insurance applicable to the Premises and its appurtenances   providing, on an occurrence basis, a minimum combined single limit of   $2,000,000.00. 17.   Subrogation. Notwithstanding anything in this   Lease to the contrary, Landlord and Tenant (each a "Releasing   Party") release each other and any party claiming by, through or under   Landlord or Tenant, as the case may be, from all liability for damage to any   property that is caused by or results from a risk which is actually insured   against or which is required to be insured against under this Lease by the   Releasing Party without regard to the negligence or other fault of the entity   so released. Each party shall cause each insurance policy it obtains to   provide that the insurer thereunder waives all right of recovery by way of   subrogation as required herein in connection with any injury or damage   covered by the policy. 18. Casualty Damage. (a) If all or   any part of the Premises is damaged by fire or other casualty, Tenant shall   immediately notify Landlord in writing. During any period of time that all or   a material portion of the Premises is rendered untenantable as a result of a   fire or other casualty, the Rent shall abate for the portion of the Premises   that is untenantable and not used by Tenant. Landlord shall have the right to   terminate this Lease if: (i) the Building shall be damaged so that, in   Landlord's reasonable judgment, substantial alteration or reconstruction of   the Building shall be required (whether or not the Premises has been   damaged); (ii) Landlord is not permitted by Law to rebuild the Building in   substantially the same form as existed before the fire or casualty; (iii) the   Premises have been materially damaged and there is less than 1 year of the Term remaining on   the date of the casualty; (iv) any Mortgagee requires that the insurance   proceeds be applied to the payment of the
    

 

	

    	
mortgage debt;   or (v) a material uninsured loss to the Building occurs. Landlord may   exercise its right to terminate this Lease by notifying Tenant in writing   within 90 days after the date of the casualty. If Landlord does not terminate   this Lease, Landlord shall commence and proceed with reasonable diligence to   repair and restore the Building and the Leasehold Improvements (excluding any   Alterations that were performed by Tenant in violation of this Lease).   However, in no event shall Landlord be required to spend more than the   insurance proceeds received by Landlord. Landlord shall not be liable for any   loss or damage to Tenant's Property or to the business of Tenant resulting in   any way from the fire or other casualty or from the repair and restoration of   the damage. Landlord and Tenant hereby waive the provisions of any Law   relating to the matters addressed in this Article, and agree that their   respective rights for damage to or destruction of the Premises shall be those   specifically provided in this Lease. (b) If all or any portion of the   Premises shall be made untenantable by fire or other casualty, Landlord   shall, with reasonable promptness, cause an architect or general contractor   selected by Landlord to provide Landlord and Tenant with a written estimate   of the amount of time required to substantially complete the repair and   restoration of the Premises and make the Premises tenantable again, using   standard working methods ("Completion Estimate"). If the Completion   Estimate indicates that the Premises cannot be made tenantable within 180   days from the date the repair and restoration is started, then regardless of   anything in Section 18(a) above to the contrary, either party shall have the right to   terminate this Lease by giving written notice to the other of such election   within 10 days after receipt of the Completion Estimate. Tenant, however,   shall not have the right to terminate this Lease if the fire or casualty was   caused by the gross negligence or intentional misconduct of Tenant, Tenant   Parties or any of Tenant's transferees, contractors or licensees. 19. Condemnation. Either party may   terminate this Lease if the whole or any material part of the Premises shall   be taken or condemned for any public or quasi-public use under Law, by   eminent domain or private purchase in lieu thereof (a "Taking").   Landlord shall also have the right to terminate   this Lease if there is a Taking of any   portion of the Building or Property which would leave the remainder of the   Building unsuitable for use as an office building in a manner comparable to   the Building's use prior to the Taking. In order to exercise its rights to   terminate the Lease, Landlord or Tenant, as the case may be, must provide   written notice of termination to the other within 45 days after the   terminating party first receives notice of the Taking. Any such termination   shall be effective as of the date the physical taking of the Premises or the   portion of the Building or Property occurs. If this Lease is not terminated,   the Rentable Square Footage of the Building, the Rentable Square Footage of   the Premises and Tenant's Pro Rata Share shall, if applicable, be   appropriately adjusted. In addition, Rent for any portion of the Premises   taken or condemned shall be abated during the unexpired Term of this Lease   effective when the physical taking of the portion of the Premises occurs. All   compensation awarded for a Taking, or sale proceeds, shall be the property of Landlord, any rights to receive compensation or   proceeds being expressly waived by Tenant. However, Tenant may file a   separate claim at its sole cost and expense for Tenant's Property and   Tenant's reasonable relocation expenses, provided the filing of the claim   does not diminish the award which would   otherwise be receivable by Landlord.
    

 

	

    	
20. Events of Default. Tenant shall be considered to be in default of this Lease upon   the occurrence of any of the following events of default: (a) Tenant's   failure to pay when due all or any portion of the Rent (a "Monetary Default"), provided the first 2 times within any 12 consecutive month   period that such failure to pay occurs, Landlord shall give to Tenant notice   of Tenant's failure to pay rent when due and Tenant shall have 5 days after   any such written notice shall have been given to make such payment and only   if Tenant fails to cure the default within such 5 days period after receipt of notice, shall   such failure be considered a default. If   Landlord has provided Tenant with 2 such notices within any 12 consecutive   month period of Tenant's Monetary Default, Tenant's subsequent failure to pay   Rent when due within such 12 consecutive month period shall, at Landlord's   option, be an incurable event of Monetary Default by Tenant. (b) Tenant's   failure to comply with any other term, provision or covenant of this Lease (which is other than a Monetary Default), if the   failure is not cured within 10 days after written notice to Tenant. However,   if Tenant's failure to comply cannot reasonably be cured within 10 days,   Tenant shall be allowed additional time (not to exceed 60 days) as is   reasonably necessary to cure the   failure so long as: (i) Tenant commences to cure the failure within 10 days, and (ii) Tenant diligently pursues a course of action that   will cure the failure and bring Tenant back into compliance with the Lease.   However, if Tenant's failure to comply creates a hazardous condition, the   failure must be cured immediately upon notice to Tenant. In addition, if   Landlord provides Tenant with notice of Tenant's failure to comply with any   particular term, provision or covenant of the Lease on 2 occasions during any   12 consecutive month period, Tenant's subsequent violation of such term,   provision or covenant within such 12 month period shall, at Landlord's option, be an incurable event of default by Tenant. (c) Tenant becomes   insolvent, makes a transfer in fraud of creditors or makes and assignment for   the benefit of creditors, or admit in writing its inability to pay its debts   when due. (d) The leasehold estate is taken by process or operation of Law.   (e) Tenant does not take possession within 6 months of the Commencement Date   of the Premises of, or abandons or vacates all or any portion of the   Premises. (f) Tenant is in default beyond any notice and cure period under   any other lease or agreement with Landlord, including, without limitation,   any lease or agreement for parking. (g) Tenant commences a voluntary case   under Title 11 Bankruptcy of the United States Code (-Title 11") as from time   to time in effect, or by its authorizing, by appropriate proceedings of   trustees or other governing body the commencement of such a voluntary case.
    

 

	

    	
(h) Tenant   files an answer or other pleading admitting or failing to deny the material   allegations of a petition filed against it commencing an involuntary case   under said Title 11, or seeking, consenting to or acquiescing in the relief   therein provided, or by failing to controvert timely the material allegations   of any such petition. (i) In the event of the entry of an order for relief in   any involuntary case commenced under said Title 1 I against Tenant or any   guarantor. 21. Remedies. (a) Upon any default, Landlord shall have the right   without notice or demand (except as provided in Article 20) to pursue any of   its rights and remedies at Law or in equity, including any one or more of the   following remedies: (i) Terminate this Lease, in which case Tenant shall   immediately surrender the Premises to Landlord. If Tenant fails to surrender   the Premises, Landlord may, in compliance with applicable Law and without   prejudice to any other right or remedy, enter upon and take possession of the   Premises and expel and remove Tenant, Tenant's Property and any party   occupying all or any part of the Premises. Tenant shall pay Landlord on   demand the amount of all past due Rent and other losses and damages which   Landlord may suffer as a result of Tenant's default, whether by Landlord's   inability to relet the Premises on satisfactory terms or otherwise,   including, without limitation, all Costs of Reletting (defined below) and any   deficiency that may arise from reletting or the failure to relet the   Premises. "Cost of Reletting" shall include all costs and expenses incurred by Landlord in reletting or attempting to   relet the Premises, including, without limitation, reasonable legal fees,   brokerage commissions, the cost of alterations and the value of other   commercially reasonable concession or allowance granted to a new tenant. (ii)   Terminate Tenant's right to possession of the Premises and, in compliance   with applicable Law, expel and remove Tenant, Tenant's Property and any   parties occupying all or any part of the Premises. Landlord shall use   reasonable efforts to relet all or any part of the Premises, without notice   to Tenant, for a term that may be greater or less than the balance of the   Term and on such conditions (which may include concessions, free rent and   alterations of the Premises) and for such uses as Landlord in its absolute   discretion shall determine. Landlord may collect and receive all rents and   other income from the reletting. Tenant shall pay Landlord on demand all past   due Rent, all Costs of Reletting and any deficiency arising from the   reletting or failure to relet the Premises. Landlord shall not be responsible   or liable for the failure to relet all or any part of the Premises or for the failure to collect any Rent. The   re-entry or taking of possession of the Premises shall not be construed as an   election by Landlord to terminate this Lease unless a written notice of termination is given to Tenant. (iii) In lieu   of calculating damages under Sections 21(a)(i) or 21(a)(ii) above, Landlord   may elect to receive as damages the sum of (A) all Rent accrued through the   date of termination of this Lease or Tenant's right to possession, and (B) an   amount equal to the total Rent that Tenant would have been required to pay   for the remainder of the Term discounted to present value at the Prime Rate (defined in Section 21(b) below)   then in effect, minus the then
    

 

	

    	
present fair   rental value of the Premises for the remainder of the Term, similarly   discounted, after deducting all anticipated Costs of Reletting. (b) Unless expressly provided in this Lease, the repossession or   re-entering of all or any part of the Premises shall not relieve Tenant of   its liabilities and obligations under the Lease. No right or remedy of   Landlord shall be exclusive of any other right or remedy. Each right and   remedy shall be cumulative and in addition to any other right and remedy now   or subsequently available to Landlord at Law or in equity. If Landlord   declares Tenant to be in default, Landlord shall be entitled to receive   interest on any unpaid item of Rent at a rate equal to the Prime Rate plus   4%. For purposes hereof, the "Prime Rate" shall be the   per annum interest rate publicly announced as its prime or base rate by a   federally insured bank selected by Landlord in the state in which the   Building is located. Forbearance by Landlord to enforce one or more remedies   shall not constitute a waiver of any default. (c) In the event this Lease   provides for any rent concession or abatement or for any period during which   Tenant is not obligated to pay Base Rent   and/or Additional Rent, then the entire   amount of the concession or of the abated Base Rent and Additional Rent that would otherwise have been due and payable for any such period shall become immediately due and payable upon the occurrence of a default by Tenant under this   Lease which continues beyond any applicable notice and cure periods. 22. Limitation of Liability. Notwithstanding anything to the contrary contained in this   Lease, the liability of Landlord (and of any successor landlord) to Tenant   shall be limited to the interest of Landlord in the Property and to all   proceeds derived therefrom, including, rental income, insurance proceeds, condemnation awards and   proceeds of sale. Tenant shall look solely to Landlord's interest in the Property for the recovery of any judgment or award against   Landlord. Neither Landlord nor any Landlord related party shall be personally   liable for any judgment or deficiency. Before filing suit for an alleged   default by Landlord, Tenant shall give Landlord and the Mortgagees of whom   Tenant has been notified hold Mortgages (defined in Article 27 below) on the   Property, Building or Premises, notice and reasonable time to cure the   alleged default. 23. No Waiver. Either party's   failure to declare a default immediately upon its occurrence, or delay in   taking action for a default shall not constitute a waiver of the default, nor   shall it constitute an estoppel. Either party's failure to enforce its rights   for a default shall not constitute a waiver of its rights regarding any   subsequent default. Receipt by Landlord of Tenant's keys to the Premises   shall not constitute an acceptance or surrender of the Premises. 24. Quiet Enjoyment. Tenant shall, and may peacefully have, hold and enjoy the   Premises, subject to the terms of this Lease, provided Tenant pays the Rent   and fully performs all of its covenants and
    

 

	

    	
agreements. This   covenant and all other covenants of Landlord shall be binding upon Landlord   and its successors only during its or their respective periods of ownership   of the Building, and shall not be a personal covenant of Landlord or the   Landlord Parties. 25. Intentionally   Omitted. 26. Holding Over. If Tenant fails to surrender the entirety   of the Premises at the expiration or earlier termination of this Lease,   occupancy of the Premises after the termination or expiration shall be that   of a tenancy at sufferance. Tenant's occupancy of the Premises during the   holdover shall be subject to all the terms and provisions of this Lease and   Tenant shall pay rent (on a per month basis without reduction for partial   months during the holdover) at a rate equal to the sum of (i) for the first   30 days, 1.5 times and for the period following the first 30 days, 2 times   the rate of Base Rent in effect immediately prior thereto plus (ii) the   Additional Rent in effect immediately prior thereto until the possession of   the Premises arc surrendered by Tenant and delivered to Landlord in   accordance with this Article. No holdover by Tenant or payment by Tenant   after the expiration or early termination of this Lease shall be construed to   extend the Term or prevent Landlord from immediate recovery of possession of   the Premises by summary proceedings or otherwise. In addition to the payment   of the amounts provided above, if Landlord is unable to deliver possession of   the Premises to a new tenant, or to perform improvements for a new tenant, as   a result of Tenant's holdover and Tenant fails to vacate the Premises within   10 days after Landlord notifies Tenant of Landlord's inability to deliver   possession, or perform improvements, Tenant shall be liable to Landlord for   all damages, including, without limitation, consequential damages, that   Landlord suffers from the holdover. 27.   Subordination to Mortgages; Estoppel Certificate. (a) This Lease, and   all rights of Tenant hereunder, are and shall be subject and subordinate in   all respects to any mortgage(s), deed(s), trust, ground lease(s) or other   liens now or subsequently arising upon the Premises, the Building or the   Property and to renewals, modifications, and extensions thereof   (collectively, the "Mortgages") whether or not the Mortgages shall also cover other lands   and/or buildings and each and every advance made or hereafter to be made   under the Mortgages. The provisions of this section shall be self-operative   and no further instrument of   subordination shall be required as to any Mortgage filed subsequent to the effective date hereof only if the holder of such Mortgage (a "Mortgagee") agrees in   writing or the terms of the Mortgage provide that for so long as Tenant is   not in default of its obligations set forth in this Lease beyond any   applicable notice and cure period, the Mortgagee will not, in foreclosing   against, or taking possession of the Premises or otherwise exercising its   right under the Mortgage, disturb Tenant's right of possession under this   Lease. In confirmation of such subordination, Tenant shall within 10 days   after receipt of a request for the same, execute and deliver (provided   Landlord is responsible for legal fees, costs and expenses incurred by Tenant   in connection therewith, up to a maximum amount of $1,000), any instrument,   in recordable form if required, that Landlord or the Mortgagee may reasonably   request to evidence such subordination, and Tenant hereby constitutes and   appoints Landlord attorney-in-fact for Tenant to execute any such instrument   for and on behalf of Tenant.
    

 

	

    	
(b) lf, at any   time prior to the expiration of the Term, the Mortgagee shall become the   owner of the Building as a result of foreclosure of its mortgage or   conveyance of the Building, or become a mortgagee in possession of the   Property or the Building, Tenant agrees, at the election and upon demand of   any owner of the Property or the Building, or of the Mortgagee (including a   leasehold mortgagee) in possession of the Property or the Building, to attorn   from time to time to any such owner, holder or lessee upon the then executory   terms and conditions of this Lease, provided that such owner, holder or   lessee, as the case may be, shall then be entitled to possession of the   Premises. Such successor in interest to Landlord shall not be bound by (i)   any payment of rent or additional rent for more than one month in advance,   except prepayments in the nature of security for the performance by Tenant of   its obligations under the Lease (and then only to the extent such security   has been received by the successor in interest), or (ii) any amendment,   modification or termination of this Lease made without the consent of the   Mortgagee or (iii) any default by or claims against Landlord hereunder   arising prior to the date such successor Landlord becomes landlord under this   Lease, except for defaults that are continuing following said date; or (iv)   any obligation by Landlord as lessor hereunder to perform any work or grant   any concession without the Mortgagee's express assumption of such obligation   to perform work or grant such concession. The foregoing provisions of this   Section shall inure to the benefit of any such owner, holder or lessee, shall   be self-operative upon any such demand, and no further instrument shall be   required to give effect to said provisions, although Tenant shall execute   such an instrument upon the request of a Mortgagee. (c) Landlord and Tenant   shall each, within 10 days after receipt of a written request from the other,   execute and deliver an estoppel certificate to those parties as are   reasonably requested by the other (including a Mortgagee or prospective   purchaser). The estoppel certificate shall include a statement certifying   that this Lease is unmodified (except as identified in the estoppel   certificate) and in full force and effect, describing the dates to which Rent   and other charges have been paid, representing that, to such party's actual   knowledge, there is no default (or stating the nature of the alleged default)   and indicating other matters with respect to the Lease that may reasonably be   requested. 28.   Attorney's Fees. If either party   institutes a suit against the other for violation of or to enforce any   covenant or condition of this Lease, or if either party intervenes in any   suit in which the other is a party to enforce or protect its interest or   rights, the prevailing party shall be entitled to all of its costs and expenses, including, without limitation, reasonable attorney's   fees. 29. Notice.   If a demand, request, approval, consent   or notice (collectively referred to as a -notice") shall or may be given to either party by the   other, the notice shall be in writing and delivered by hand or sent by   registered or certified mail with return receipt requested, or sent by overnight or same day courier service at the party's respective   Notice Address(es) set forth in Article 1,   except that if Tenant has vacated the Premises (or if the Notice Address for   Tenant is 
    

 

	

    	
other than the   Premises, and Tenant has vacated such address) without providing Landlord a   new Notice Address, Landlord may serve notice in any manner described in this   Article or in any other manner permitted by Law. Each notice shall be deemed   to have been received or given on the earlier of actual delivery or the date   on which delivery is refused, or, if Tenant has vacated the Premises or the   other Notice Address of Tenant without providing a new Notice Address, three   (3) days after notice is deposited in the U.S. mail or with a courier service   in the manner described above. Either party may, at any time, change its   Notice Address by giving the other party written notice of the new address in   the manner described in this Article. 30.   Excepted Rights. This Lease does not grant any rights to light or air   over or about the Building. Landlord excepts and reserves exclusively to   itself the use of: (1) roofs, (2) telephone, electrical and janitorial   closets, (3) equipment rooms, Building risers or chaseways or similar areas   that are used by Landlord for the provision of Building services, (4) rights   to the land and improvements below the floor of the Premises, (5) the   improvements and air rights about the Premises, (6) the improvements and air   rights outside the demising walls of the Premises, and (7) the areas within   the Premises used for the installation of utility lines and other installations   serving occupants of the Building. Notwithstanding the above, Tenant shall   have access to the roof for the installation and maintenance of Tenant's   Auxiliary Generator and Fuel Supply upon the terms and conditions set forth   in Section 10(c) of this Lease. Landlord has the right to change the   Building's name or address. Landlord also has the right to make such other   changes to the Property and Building as Landlord deems appropriate, provided   the changes do not materially reduce the size of the Premises, Tenant's   access to the Premises, materially increase Tenant's obligations (monetary or   otherwise), or affect Tenant's ability to use the Premises for the Permitted   Use. Landlord shall also have the right (but not the obligation) to   temporarily close the Building if Landlord reasonably determines that there   is an imminent danger of significant damage to the Building or of personal   injury to Landlord's employees or the occupants of the Building. The   circumstances under which Landlord may temporarily close the Building shall   include, without limitation, electrical interruptions, hurricanes and civil   disturbances. A closure of the Building under such circumstances shall not   constitute a constructive eviction but shall entitle Tenant to an abatement   of Rent from and after the fifth consecutive day of such closure until such   time as the Landlord opens the Building again. 31. Surrender of Premises. At the expiration or earlier   termination of this Lease or Tenant's right of possession, Tenant shall   remove Tenant's Property from the Premises, and quit and surrender the   Premises to Landlord, broom clean, and in good order, condition and repair,   ordinary wear and tear excepted. Tenant shall also be required to remove the   Required Removables in accordance with Article 9. If Tenant fails to remove   any of Tenant's Property within 2 days after the termination of this Lease or   of Tenant's right to possession, Landlord, at Tenant's sole cost and expense,   shall be entitled (but not   obligated) to remove and store Tenant's Property. Landlord shall not be   responsible for the value. preservation or safekeeping of Tenant's Property.   Tenant shall pay Landlord, upon demand, the expenses and storage charges   incurred for Tenant's Property. In addition, if Tenant fails to remove   Tenant's Property from the Premises or storage, as the case may be, within 30   days after 
    

 

	

    	
written notice,   Landlord may deem all or any part of Tenant's Property to be abandoned, and   title to Tenant's Property shall be deemed to be immediately vested in   Landlord. 32. Environmental   Compliance. (a) Tenant hereby covenants to   Landlord that Tenant shall (i) comply with all Laws applicable to the discharge, generation, manufacturing,   removal, transportation, treatment, storage, disposal and handling of   Hazardous Substances (as defined below) as apply to the activities of Tenant   and Tenant Parties at the Property; (ii) not store in the Premises Hazardous   Substances in a quantity that increases Landlord's insurance premiums or   exceeds Tenant's pro rata share of the 100% limit of the "exempt   amount" of "high hazard materials" (each as defined in the   Boca National Building Code, the "NBC") permitted for the Control   Area(s) in which the Premises is located to avoid classification of the   Building in Use Group H, High Hazard occupancy,   by the criteria of the NBC as the same may now or hereafter be modified by   any variance obtained by Tenant (the definition of the Control Area and method of determining Tenant's pro-rata   share is set forth below), (iii) promptly remove any waste, surplus or out of   specification Hazardous Substances generated by Tenant or Tenant Parties from   the Premises in accordance with all applicable Laws and orders of   governmental authorities having jurisdiction, (iv) pay or cause to be paid   all costs associated with such removal of Hazardous Substances generated by   Tenant or Tenant Parties including remediation and restoration of the   Property; (v) if required by Laws applicable to the activities of Tenant and   Tenant Parties at the Premises prior to the expiration or termination of this   Lease, close all hazardous waste storage areas, if any, regulated by the   Resource Conservation and Recovery Act, 42 U.S.C. Sections 6901 et seq., and   decommission and close all facilities regulated by the Nuclear Regulatory   Commission (or delegated state) if applicable to the activities of Tenant and   Tenant Parties at the Premises so as to render the Premises and the Building   suitable for Unrestricted Use within the meaning of Subpart E of 10 CFR 20   (and the foregoing obligations shall only apply if Tenant's use of the   Premises is subject to the foregoing Laws); (vi) keep the Property free of   any lien imposed pursuant to any applicable Laws in connection with the   existence of Hazardous Substances in or on the Property; (vii) not install or   permit to be installed during the Lease Term in the Premises any asbestos,   asbestos-containing materials, urea formaldehyde insulation or any other   chemical or substance which has been determined to be a hazard to health and   environment; (viii) not cause or permit to exist, as a result of an   intentional or unintentional act or omission on the part of Tenant, Tenant   Parties or occupant of the Premises, a releasing, spilling, leaking, pumping,   emitting, pouring, discharging, emptying or dumping (collectively, a   "Release") of any Hazardous Substances onto or from the Premises,   the Building or the Property except in compliance   with applicable Laws; (ix) provide to Landlord, promptly following request,   Material Safety Data Sheet(s) and other   pertinent information regarding Hazardous Substances brought into or used by   Tenant or the Tenant Parties at any time at the Property; (x) give all   notifications and prepare all reports required by Laws with respect to   Hazardous Substances existing on, or required in connection with a Release   at, the Premises and, promptly upon request, shall give copies of all such   notifications and reports to Landlord; (xi) if Tenant, Tenant Parties or any   occupant of the Premises permitted a Release of Hazardous Substances to occur   in violation of applicable Laws, pay, as   Additional Rent, for periodic environmental monitoring by Landlord as well as   subsurface testing of the Property; and (xii) promptly notify Landlord in   writing of any summons, citation, directive, notice, letter or other written   communication of any claim or threat of claim made by any 11-1219), I 67239.073 29 
    

 

	

    	
third party   relating to the presence or Release of any Hazardous Substances in, on or   from the Premises in violation of applicable Laws. Tenant further covenants   and agrees (A) that all waste water discharged from the Premises shall not damage the Building's plumbing and discharge   facilities and systems; (B) it shall collect all chemicals, biological waste and Hazardous Materials and Wastes into appropriate hazardous waste storage receptacles   and discard the same in accordance with   applicable Environmental Laws and shall not dispose of the same through the   Building's plumbing system; and (C) to comply with Tenant's internal   guidelines, protocols and procedures   governing the operation of microbiological and/or biomedical laboratories (if   any) within the Premises. For purposes of subsection (ii) above: The term   "Control Area" means one of the areas on the floor of the Building   on which the Premises are located which are separated from each other and   from adjoining floors by a one-hour fire wall and ceilings or floors, as   applicable; and Tenant's pro-rata share of the Control Area for each floor   shall be determined on the basis of a fraction, the numerator of which is the   rentable square footage of the Premises located on the applicable floor of   the Building that is a Control Area and the denominator of which is the   rentable square footage of the Control Area(s) available for such floor.   Tenant's obligations under this Article shall survive termination of the   Lease. (b) Landlord acknowledges that the Property is an Establishment under   Connecticut General Statutes Section 22a-134 et seq. (the "Transfer   Act"). A Form III (as defined in the Transfer Act) was filed with the   Connecticut Department of Environmental Protection by the prior owner in   connection with the sale of the Property to Landlord, and such prior owner   was the Certifying Party (as defined in the Transfer Act) pursuant to such   Form III filing. (c) Tenant agrees that, if Tenant is obligated to close any   hazardous waste storage area, if such closure has not been fully completed as of the   Termination Date, that Tenant shall, in connection therewith, and as security   for Tenant's obligation, on Landlord's request deposit with Landlord a   reasonable sum, not to exceed $40,000.00, which Landlord shall be entitled to   continue to hold as security for the proper and lawful closure of such   hazardous waste storage area (the "Closure Obligation"). In lieu of   cash, Tenant may provide Landlord with an unconditional, irrevocable,   assignable letter of credit, (the "Letter of Credit") for all or a   portion of such amount. In the event Tenant furnishes the Letter of Credit,   the Letter of Credit shall be on the following terms and conditions: (i)   issued by a commercial bank acceptable to Landlord, which bank must have an   office in Hartford, Connecticut; (ii) having a term which shall have an   expiration date not sooner than the date which is five (5) years from the   Termination Date or sooner termination date, however, if the Letter of Credit   has an earlier expiration date, it shall contain a so-called "evergreen   clause"; (iii) available for negotiation by draft(s) at sight   accompanied by a statement signed by Landlord stating that the amount of the   draw represents funds due to Landlord (or its successors and assigns) due to   the failure of Tenant to perform its Closure Obligation or (iv) be otherwise   on terms and conditions reasonably satisfactory to Landlord. It is agreed   that in the event Tenant fails to perform its Closure Obligation, Landlord   may draw upon the Letter of Credit or upon the funds held on account as the   Security Deposit to the extent required to perform the same. In the event   that 1 enant shall fully and faithfully perform its Closure Obligation (as shall be evidenced by a sign-off or other definitive   communication from applicable governmental authorities) and all of its other   obligations under this Lease, the Letter of Credit and/or funds on deposit   with Landlord shall be returned to Tenant. Tenant further covenants that it will not assign or encumber or   attempt to assign 
    

 

	

    	
or encumber the   Letter of Credit or any funds on deposit and that neither Landlord nor its   successors or assigns shall be bound by any such assignment, encumbrance,   attempted assignment or attempted encumbrance. The foregoing right of   Landlord to require that Tenant deposit such security is in addition to, and   not in lieu of, the rights and remedies otherwise available to Landlord under   this Lease. (d) Landlord may in the future enter into an Environmental Land   Use Restriction as defined in Section 22a-133n of the Connecticut General Statutes   ("ELUR"), in substantially the form attached hereto as Exhibit E, in connection   with the investigation and/or remediation of the environmental condition of   the Property referenced in the Summary of Environmental Investigations and   Remedial Action Plan prepared by ALTA Environmental Corporation, dated   February 29, 2008 (the "Environmental   Report"). The ELUR shall be filed on the   land records in the town that the Property is located and shall restrict the   use of the Property in the manner as set forth in the ELUR. Landlord shall,   on request of Tenant, make a copy of the ELUR available to Tenant. Tenant   hereby agrees, at Landlord's request from time to time, to execute and   deliver one or more subordination agreements, in form and content as   prescribed by the laws and regulations governing the ELUR, to subordinate   this Lease to the ELUR. Landlord may modify the language of the ELUR, and   Tenant shall not withhold its subordination of such modified ELUR, provided,   that such modified ELUR does not diminish or affect Tenant's rights or   increase Tenant's liability or obligations under the Lease, or interfere with   Tenant's use and occupancy of, or access to the Premises. Failure of Tenant   to execute and deliver such subordination agreement(s) within 10 days after   Landlord's request shall constitute a default under this Lease. (e) The term "Hazardous Substances" means any hazardous, toxic or regulated materials, pollutants,   chemicals or contaminants as defined, determined or identified as such in any   Laws, whether a waste or not, including, without limitation, asbestos,   asbestos-containing materials, urea formaldehyde foam insulation,   polychlorinated biphenyls, and petroleum products. (f) As of the Effective   Date, to Landlord's knowledge and belief, the Property is in material   compliance with all environmental laws, rules and regulations, except as set   forth in the Environmental Report, and Landlord has received no notice of any   violations of any environmental laws, rules or regulations at the Property.   (g) Tenant hereby agrees to   defend, indemnify and hold harmless Landlord, its employees, agents, contractors, subcontractors, licensees,   invitees, successors and assigns from and against any   and all claims, losses, damages, liabilities, judgments, costs and expenses   (including, without limitation, attorneys' fees and costs incurred in the   investigation, defense and settlement of claims or remediation of   contamination) incurred by such indemnified parties as a result of the acts   or omissions of Tenant and the Tenant Parties   at the Premises which are prohibited under Article 32(a). Tenant shall bear,   pay and discharge, as and when the same become due and payable, any and all   such judgments or claims for damages, penalties or otherwise against such   indemnified parties, shall hold such indemnified parties harmless against all   claims, losses, damages, liabilities, costs and   expenses, and shall assume the burden and expense of defending all suits,   administrative proceedings, and negotiations of any description with any and   all persons, political subdivisions or 
    

 

	

    	
government   agencies arising out of any of the occurrences set forth in this Article 32.   The provisions of this Article shall survive termination of this Lease. (h)   Landlord hereby agrees to defend, indemnify and hold harmless Tenant and its directors, officers,   shareholders, employees, agents, contractors, subcontractors, licensees,   invitees, successors, and assigns, from and against any and all claims,   losses, damages, liabilities, judgments, costs and expenses   (including, without limitation, attorneys' fees and costs incurred in the investigation, defense and settlement of claims or   remediation of contamination) incurred by such indemnified parties as a   result of or in connection with the presence at or removal of Hazardous   Substances from the Property which were introduced onto the Property prior to   the Effective Date of the Lease, or by Landlord or the Landlord Parties.   Landlord shall bear, pay and discharge, as and when the same become due and   payable, any and all such judgments or claims for damages, penalties or   otherwise against such indemnified parties, shall hold such indemnified   parties harmless against all claims, losses, damages, liabilities, costs and   expenses, and shall assume the burden and expense of defending all suits,   administrative proceedings, and negotiations of any description with any and   all persons, political subdivisions or government agencies arising out of any   of the occurrences set forth in this Article 32. The provisions of this   Section shall survive termination of this Lease. 33. Miscellaneous. (a) This Lease and the rights and obligations of   the parties shall be interpreted, construed and enforced in accordance with   the Laws of the State of Connecticut and Landlord and "Tenant hereby   irrevocably consent to the jurisdiction and proper venue of such state. If any   term or provision of this Lease shall to any extent be invalid or   unenforceable, the remainder of this Lease shall not be affected, and each   provision of this Lease shall be valid and enforced to the fullest extent   permitted by Law. The headings and titles to the Articles and Sections of this   Lease are for convenience only and shall have no effect on the interpretation   of any part of the Lease. (b) Tenant shall not record this Lease without   Landlord's prior written consent. Landlord agrees, at Tenant's request, to   execute and deliver to Tenant a Notice of Lease in the form authorized by   Law, which Tenant may record at Tenant's expense. (c) Landlord and Tenant   hereby waive any right to trial by jury in any proceeding based upon a breach   of this Lease. (d) Whenever a period of time is prescribed for the taking of   an action by Landlord or Tenant, the period of time for the performance of   such action shall be extended by the number of days that the performance is   actually delayed due to strikes, labor disputes, acts of God, shortages of   labor or materials, unusual delay in deliveries of materials, war, civil   disturbances, fire, unavoidable casualties, and other causes beyond the   reasonable control of the performing party ("Force Majeure"). However, events of Force Majeure shall not extend any period of   time for the payment of Rent or other sums payable by either party or any   period of time for the written exercise of an option or right by either   party. 
    

 

	

    	
(e) Landlord   shall have the right to transfer and assign, in whole or in part, all of its rights and obligations under this   Lease and in the Building and/or Property referred to herein, and upon such   transfer, and such transferee's written agreement to be bound by the terms of   this Lease and assume Landlord's obligations hereunder from and after the   date of such transfer, Landlord shall be released from any further   obligations hereunder, and Tenant agrees to look solely to the successor in interest of Landlord for the performance of such obligations.   (t) Tenant represents that it has not dealt with any broker in connection   with this Lease. Tenant shall indemnify and hold Landlord and the Landlord   Parties harmless from all claims of any brokers claiming to have represented   Tenant in connection with this Lease. Landlord agrees to indemnify and hold Tenant   and the Tenant Parties harmless from all claims of any brokers claiming to have represented Landlord in   connection with this Lease. (g) Tenant covenants, warrants and represents that: (i) each individual executing,   attesting and/or delivering this Lease on behalf of Tenant is authorized to   do so on behalf of Tenant; (ii) this Lease is binding upon Tenant; and (iii)   Tenant is duly organized and legally existing in the state of its   organization and is qualified to do business in the state in which the Premises   are located. If there is more than one Tenant, or if Tenant is comprised of   more than one party or entity, the obligations imposed upon Tenant shall be   joint and several obligations of all the parties and entities. Notices,   payments and agreements given or made by, with or to any one person or entity   shall be deemed to have been given or made by, with and to all of them. (h)   Landlord covenants, warrants and represents that: (i) each individual   executing, attesting and/or delivering this Lease on behalf of Landlord is   authorized to do so on behalf of Landlord; (ii) this Lease is binding upon   Landlord; and (iii) Landlord is duly organized and legally existing in the   state of its organization and is qualified to do business in the state in   which the Premises are located. If there is more than one Landlord, or if   Landlord is comprised of more than one party or entity, the obligations   imposed upon Landlord shall be joint and several obligations of all the   parties and entities. Notices, payments and agreements given or made by, with   or to any one person or entity shall be deemed to have been given or made by,   with and to all of them. (i) Time is of the essence with respect to Tenant's   exercise of any expansion, renewal or extension rights granted to Tenant. This   Lease shall create only the relationship of landlord and tenant between the   parties, and not a partnership, joint venture or any other relationship. This   Lease and the covenants and conditions in this Lease shall inure only to the   benefit of and be binding only upon Landlord and Tenant and their permitted   successors and assigns. (j) The expiration of the Term, whether by lapse of   time or otherwise, shall not relieve either party of any obligations which   accrued prior to or which may continue to accrue after the expiration or   early termination of this Lease and the terms and provisions of this Lease,   to the extent relevant, shall continue to govern and apply to the   relationship of Landlord and Tenant. 
    

 

	

    	
(k) Landlord   has delivered a copy of this Lease to Tenant for Tenant's review only, and   the delivery of it does not constitute an offer to Tenant or an option. This   Lease shall not be effective against any party hereto fully executed   counterparts of the Lease have been delivered to the parties hereto. (1) All   understandings and agreements previously made between the parties are   superseded by this Lease, and neither party is relying upon any warranty,   statement or representation not contained in this Lease. This Lease may be   modified only by a written agreement signed by Landlord and Tenant. (m)   Tenant shall, within 15 days after written request of Landlord, deliver to   Landlord a copy of its audited financial statement and, within 15 days after   Landlord's written request, such other financial information as Landlord may   reasonably request. Upon written request by Tenant, Landlord shall enter into   a commercially reasonable confidentiality agreement, in form and substance   acceptable to both Landlord and Tenant, covering any confidential information   that is disclosed by Tenant. (n) Tenant shall be entitled to 24 hour, seven   day a week access to the Premises and shall obtain said access by means of a   key card or other similar means to be provided by Landlord to afford access   to the Building. (o) Landlord shall provide Tenant, at Tenant's sole cost and   expense, a listing on a building directory in the lobby and with two signs:   one next to Tenant's entry door and another wall sign directing visitors to   the Tenant's Premises. 34. Option to   Expand. (a) Subject to the rights of existing tenant(s) whose lease(s)   pre-date this Lease, and so long as Tenant is not in default beyond the   expiration of any applicable notice and cure period on the date Tenant   delivers Tenant's Expansion Notice (as hereinafter defined) or at any time   thereafter through the commencement date of the Expansion Premises (as   hereinafter defined), Tenant shall have a one-time right of first offer (the   "Expansion Option") to lease all or part of the following available   space adjacent to the Premises: (i) approximately 672 rentable square feet of   space known as the "PWC Space", and (ii) approximately 3,835   rentable square feet of space known as the "Cure Space" (that   portion of the PWC Space and/or the Cure Space that Tenant elects to lease   shall be known as the "Expansion Premises"), from and after   September 1, 2009 through the remainder of the initial Term of the Lease and   any Extension Term of the Lease, at the rent and upon the other terms set   forth below. The PWC Space and the Cure Space are depicted in Exhibit D attached hereto. Tenant   shall exercise the Expansion Option by delivering notice to Landlord   ("Tenant's Expansion Notice") exercising the Expansion Option   during the period from August 15, 2009 to August 31, 2009. Tenant shall   accept the Expansion Premises in its "as-is" condition, subject to   the Substantial Completion of the Initial Alterations to the Expansion   Premises as set forth in Section 34(b) below. Tenant shall, promptly   following request by Landlord, execute and deliver a statement confirming   that the Expansion Option has been waived (provided that failure to 
    

 

	

    	
deliver said   statement shall not be construed to mean that Tenant has properly exercised   the Expansion Option). (b) If Tenant does timely and properly exercise the   Expansion Option, Tenant shall perform Initial Alterations of the Expansion   Premises in accordance with the procedures set forth in the Work Letter   attached hereto as Exhibit C,   provided that the Tenant Allowance for the Expansion Premises shall be $14.47   per rentable square foot. Tenant shall promptly commence Initial Alterations of the Expansion Premises and   diligently pursue to completion. From and after the date of Substantial   Completion of the Initial Alterations of the Expansion Premises, the   Expansion Premises shall be deemed part of the Premises, and Tenant shall   commence paying Base Rent and Additional Rent on the Expansion Premises.   Promptly following the date of Substantial Completion of the Expansion   Premises, Landlord and Tenant shall enter into a certificate that confirms   the date of Substantial Completion, the amount of space in the Expansion   Premises, the revised amount of Base Rent for the Premises and monthly   installments, the revised Tenant's Pro- Rata Share, and any other similar   items that cannot be determined until said date. (c) The Base Rent for the   Expansion Premises shall be the same as for the original Premises as set   forth in Section 1(d) (i.e., $24.88 psf from the rent commencement date of   the Expansion Premises through the end of Lease Year 1, increasing to $25.21   psf for Lease Year 2, and then increasing to $25.54 for Lease Year 3). (d)   The Expansion Option shall automatically terminate upon the earlier to occur   of (i) the expiration or termination of this Lease, (ii) the termination of Tenant's   right to possession of the Premises, or (iii) the failure of Tenant to timely   exercise any right to lease space under its Expansion Option. 35. Renewal. (a) Provided that Tenant is not in default under the Lease beyond   the expiration of applicable notice and   cure periods on the date Tenant delivers Tenant's Renewal Notice (as hereinafter   defined) or at any time thereafter through the commencement date of a Renewal   Term (as hereinafter defined), Tenant shall have two options (each, a   "Renewal Option") to renew the Lease for a period of three years   each (each such term a "Renewal Term") at the rent and upon the   other terms set forth below. Tenant shall   exercise the Renewal Option by delivering notice to Landlord ("Tenant's Renewal Notice") no later than 270 days prior to the end of the initial Lease   Term, or the first Renewal Term, as applicable. Time shall be of the essence   with respect to Tenant's exercise of the Renewal Option and delivery of   Tenant's Renewal Notice. In the event that Tenant shall fail to deliver   Tenant's Renewal Notice in accordance with the provisions hereof, Tenant   shall be deemed to have forever waived its right to exercise the Renewal   Option and Tenant shall, promptly following request by Landlord, execute and   deliver a statement confirming that the Renewal Option has been waived   (provided that failure to deliver said statement shall not be construed to   mean that Tenant has properly exercised the Renewal Option). (b) Upon   Landlord's receipt of Tenant's Renewal Notice in accordance with the   requirements of this Section, the Lease, subject to the provisions of this   Section, shall be 
    

 

	

    	
automatically   extended for such Renewal Term with the same force and effect as if the   Renewal Term had been originally included in the term of the Lease, except   that the Base Rent under the Lease shall be at the rates that follow,   multiplied by the number of rentable square feet of the Premises (which may   include space leased pursuant to the Expansion Option, if it was exercised by   Tenant) to be renewed: Period Rent per RSF First Renewal Term Lease Year 4   $25.54 Lease Year 5 $25.88 Lease Year 6 $26.22 Second Renewal Term Lease Year   7 $26.22 Lease Year 8 $26.58 Lease Year 9 $26.93 (c) The Renewal Options   shall automatically terminate and become null, void and of no force and   effect upon the earlier to occur of (1) the expiration or termination of the   Lease by Landlord or pursuant to law, (2) the termination or surrender of   Tenant's right to possession of the Premises, (3) the sublease by Tenant of   the Premises or any part thereof, or (4) the failure of Tenant to timely and   properly exercise any Renewal Option. Notwithstanding the above, Tenant's   initial sublease of the Expansion Space (as contemplated in Section 13(a))   shall not act to terminate T'enant's Renewal Option as set forth herein. 36. Entire Agreement. This Lease and the   following exhibits and attachments constitute the entire agreement between   the parties and supersede all prior agreements and understandings related to   the Premises, including all lease proposals, letters of intent and other   documents: Exhibit A (Legal   Description of Property), Exhibit A-1 (Outline and Location of Premises on the Commencement Date), Exhibit A-2 (Outline and Location of the Lab   Space and Office Space), Exhibit B   (Rules and Regulations), Exhibit C   (Work Letter Agreement), Exhibit D   (PWC Space and Cure Space), and Exhibit   E (Environmental Land Use Restriction). (Remainder of page intentionally   blank, signature page to follow). 
    

 

 

IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease Agreement as of the day and year first above written.

 

	
 
    	
LANDLORD:
    
	
 
    	
 
    
	
 
    	
WE GEORGE STREET, L.L.C.
    
	
 
    	
 
    
	
 
    	
By: 
    	
WE George Street Holdings LLC
    
	
 
    	
 
    	
Its Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: 
    	
WE George Street Manager Corp.
    
	
 
    	
 
    	
 
    	
Its Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
/s/ Carter J. Winstanley
    
	
 
    	
 
    	
 
    	
 
    	
Name:
    	
Carter J. Winstanley
    
	
 
    	
 
    	
 
    	
 
    	
Title:
    	
Its President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TENANT:
    
	
 
    	
 
    
	
 
    	
KOLLTAN PHARMACEUTICALS INC.
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Michael Schmertzler
    
	
 
    	
 
    	
Name:
    	
Michael Schmertzler
    
	
 
    	
 
    	
Title:
    	
CEO
    

 

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EXHIBIT A LEGAL   DESCRIPTION OF PROPERTY LEGAL   DESCRIPTION All that certain piece or parcel   of land, with the buildings and improvements thereon, shown as Parcel 1 on a   survey entitled "Division of Land The Southern New England Telephone   Company York, George, College Streets & North Frontage Road New Haven,   Connecticut, Sheet No. 2 of 2", Dated 7/09/96, revised 8/06/96, Scale   1"=40', by Fuss & O'Neill, Inc., Consulting Engineers, which survey   was filed in the Office of the New Haven Town Clerk on October 18, 1996. Said   Parcel 1 is more particularly described as follows: Beginning at a point   marking the northeast corner of Parcel 1; Thence running S 60° 26' 10" E   along George Street, 63.97 feet; Thence running S 60° 50' 20" E along   George Street, to a concrete monument 269.61 feet; Thence running along a   curve to the right having a radius of 28.00' along the intersection of George   Street and College Street, a distance of 44.09 feet; Thence running S 29° 22'   54" W along College Street, 202.68 feet; Thence running along a curve to   the right having a radius of 37.00' along the intersection of College street   and North Frontage Road, a distance of 61.79 feet; Thence running along a   curve to the left having a radius of 3984.72' along North Frontage Road, a   distance of 322.45 feet; Thence turning and running N 29° 33' 38" E   along Parcel 2 as shown on said map, 247.73 feet to the point and place of   beginning. Together with all easements and rights set forth in Quit Claim   Deed from The Southern New England Telephone Company to 300 George Street LLC   dated October 1, 1996, recorded October 18, 1996 in Volume 5058, Page 150 at   2:27 p.m. of the New Haven Land Records. 
    

 

	

    	
EXHIBIT A-1 OUTLINE AND LOCATION OF PREMISES 
    

 

	

    	
[LOGO]
    

 

	

    	
EXHIBIT A-2   OUTLINE AND LOCATION OF THE LAB SPACE AND OFFICE SPACE 
    

 

	

    	
[LOGO]
    

 

	

    	
EXHIBIT B BUILDING RULES AND REGULATIONS The following rules and regulations shall apply, where   applicable, to the Premises, the Building, the parking garage (if any), the   Property and the appurtenances. Capitalized terms have the same meaning as   defined in the Lease. 1. Sidewalks, doorways, vestibules, halls, stairways   and other similar areas shall not be obstructed by Tenant or used by Tenant   for any purpose other than ingress and egress to and from the Premises. No   rubbish, litter, trash, or material shall be placed, emptied, or thrown in   those areas. At no time shall Tenant permit Tenant's employees to loiter in   Common Areas or elsewhere about the Building or Property. Plumbing fixtures   and appliances shall be used only for the purpose for which designed, and no   sweepings, rubbish, rags or other unsuitable material shall be thrown or   placed in the fixtures or appliances. Damage resulting to fixtures or   appliances by Tenant, its agents, employees or agents, shall be paid for by   Tenant, and Landlord shall not be responsible for the damage. 3. No signs,   advertisements or notices shall be painted or affixed to windows, doors or   other party of the Building, except those of such color, size, style and in   such places as are first approved in writing by Landlord. All tenant   identification and suite numbers at the entrance to the Premises shall be   installed by Landlord, at Tenant's cost and expense, using the standard   graphics for the Building. Except in connection with the hanging of   lightweight pictures and wall decorations, no nails, hooks or screws shall be   inserted into any part of the Premises or Building except by the Building   maintenance personnel. Landlord shall provide and maintain in the first floor   (main lobby) of the Building an alphabetical directory board or other   directory device listing tenants, as well as signage at the entrance to its   Premises and no other directory shall be permitted unless previously   consented to by Landlord in writing. 5 Tenant shall not place any lock(s) on   any door in the Premises or Building without Landlord's prior written consent   and Landlord shall have the right to retain at all times and to use keys to   all locks within and into the Premises. A reasonable number of keys to the locks   on the entry doors in the Premises shall be furnished by Landlord to Tenant   at Tenant's cost, and Tenant shall not make any duplicate keys. All keys   shall be returned to Landlord at the expiration or early termination of this   Lease. 6. All contractors, contractor's representatives and installation   technicians performing work in the Building shall be subject to Landlord's   prior approval, not to be unreasonably withheld and shall be required to   comply with Landlord's standard rules, regulations, policies and procedures,   which may be revised from time to time. 
    

 

	

    	
7. Movement in   or out of the Building of furniture or office equipment, or dispatch or   receipt by Tenant of merchandise or materials requiring the use of elevators,   stairways, lobby areas or loading dock areas, shall be restricted to   reasonable hours designated by Landlord. Tenant shall obtain Landlord's prior   approval by providing a detailed listing of the activity. If approved by   Landlord, the activity shall be under the supervision of Landlord and   performed in the manner required by Landlord. Tenant shall assume all risk   for damage to articles moved and injury to any persons resulting activity. If   equipment, property, or personnel of Landlord or of any other party is   damaged or injured as a result of or in connection with the activity, Tenant   shall be solely liable for any resulting damage or loss. If building   personnel are on-site during the move outside of normal business hours,   Tenant shall reimburse Landlord for 1.25 times the costs incurred. 8.   Landlord shall have the right to approve the weight, size, or location of   heavy equipment or articles in and about the Premises. Damage to the Building   by the installation, maintenance, operation, existence or removal of the   property of Tenant shall be repaired at Tenant's sole expense. 9. Corridor   doors, when not in use, shall be kept closed. 10. Tenant shall not: (1) make   or permit any improper, objectionable or unpleasant noises or odors in the   Building, or otherwise interfere in any way with other tenants or persons   having business with them; (2) solicit business or distribute, or cause to be   distributed, in any portion of the Building, handbills, promotional materials   or other advertising; or (3) conduct or permit other activities in the   Building that might, in Landlord's sole opinion, constitute a nuisance. 1 1.   No animals, except those assisting handicapped persons or those necessary for   the conduct of Tenant's business, shall be brought into the Building or kept   in or about the Premises. 12. Tenant shall not use, or permit any part of the   Premises to be used, for lodging, sleeping or for any illegal purpose. 13. Tenant shall not install, operate or maintain in the   Premises or in any other area of the Building, electrical equipment that   would overload the electrical system beyond its capacity for proper, efficient and safe operation as determined solely by   Landlord. Tenant shall not furnish cooling or heating to the Premises,   including, without limitation, the use of electronic or gas heating devices,   without Landlord's prior written consent. Tenant shall not use more than its   proportionate share of telephone lines and other telecommunication facilities   available to service the Building. 14.   Tenant shall not operate or permit to be operated a coin or token operated   vending machine or similar device (including, without limitation, telephones,   lockers, toilets, amusement devices and machines for sale of beverages,   foods, candy, cigarettes and other goods). 
    

 

	

    	
15. Bicycles   and other vehicles are not permitted inside the Building or on the walkways   outside the Building, except in areas designated by Landlord. 16. Landlord   may from time to time adopt systems and procedures for the security and   safety of the Building, its occupants, entry, use and contents. Tenant, its   agents, employees, contractors, guests and invitees shall comply with   Landlord's systems and procedures. 17. Landlord shall have the right to   prohibit the use of the name of the Building or any other publicity by Tenant   that in Landlord's sole opinion may impair the reputation of the Building or   its desirability. Upon written notice from Landlord, Tenant shall refrain   from and discontinue such publicity immediately. 18. Tenant shall not canvas,   solicit or peddle in or about the Building or the Property. 19. Neither   Tenant nor its agents, employees, contractors, guests or invitees shall smoke   or permit smoking in the Premises or in Common Areas, unless the Common Areas   have been declared a designated smoking area by Landlord. Landlord shall have   the right to designate the entirety of the Building (including the Premises)   as a non-smoking building. 20. Landlord shall have the right to designate and   approve standard window coverings for the Premises and to establish rules to   assure that the Building presents a uniform exterior appearance. Landlord   shall provide existing Building standard blinds on the exterior windows of   the Premises. Tenant shall ensure, to the extent reasonably practicable, that   window coverings are closed on windows in the Premises while they are exposed   to the direct rays of the sun. 21. Deliveries to and from the Premises shall   be made only at the times, in the areas and through the entrances and exits   designated by Landlord. Tenant shall not make deliveries to or from the Premises   in a manner that might interfere with the use by any other tenant of its   premises or of the Common Areas, any pedestrian use, or any use which is   inconsistent with good business practice. 22. The work of cleaning personnel   in the common areas shall not be hindered by Tenant after 5:30 p.m., and   cleaning work may be done at any time when the offices are vacant. Windows,   doors and fixtures may be cleaned at any time. Tenant will comply with the   Building's recycling policies. 
    

 

	

    	
EXHIBIT C WORK LETTER I. INITIAL ALTERATIONS AND   ALLOWANCE. A. Tenant, following the full and final execution and delivery of this Lease and all prepaid   rental and security deposits required hereunder shall have the right to   perform alterations and improvements in the Premises (the "Initial   Alterations"). Notwithstanding the foregoing, Initial Alterations may   not be performed in the Premises unless and until Tenant has complied with   all of the terms and conditions of the provisions of this Lease, including,   without limitation, approval by Landlord of the final plans for the Initial   Alterations. The plans and drawings prepared by Murdock Young Architects   dated November 24, 2008 (the "Layout Plan") are hereby deemed   approved by Landlord, with the exception of the location of the door to the   Premises, which door shall be relocated to its original position. Tenant   shall cause to be prepared complete construction drawings, plans and   specifications for the Initial Alterations based on the Layout Plan, in form   and substance suitable and adequate for submission, if necessary, to the   appropriate government authority(ies) for approval and in a form reasonably   satisfactory to Landlord, and which shall be submitted to Landlord for its   review and approval. Tenant shall be responsible for all elements of the   design of Tenant's drawings, plans and specifications relating to   functionality of design, compliance with Laws, the structural integrity of   the design, the configuration of the Premises and the placement of Tenant's   furniture, appliances and equipment. Landlord's approval of Tenant's plans   and specifications shall in no event relieve Tenant and its architect and   engineer of the responsibility for such design. All plans and specifications   shall be prepared in accordance with all applicable Laws and the capacities   of the Building allocated to the Premises and not exceed those capacities   unless Tenant agrees to pay for any necessary costs to increase such   capacities. The completed construction drawings, plans and specifications, as   approved by Landlord and Tenant, are sometimes referred to herein as   "Tenant Improvement Plans". B. Landlord shall permit Tenant to   deviate from the Building standards for the Initial Alterations; provided   that (1) the deviations shall not be of a lesser quality than the standards;   (2) the deviations conform to applicable governmental regulations; (3) the   deviations do not require base Building services or systems beyond that   reasonably allocated to the Premises by Landlord and do not overload the   floors; (4) Landlord has determined in its sole discretion that the   deviations are of a nature and quality that are consistent with the overall   objectives of Landlord for the Building; and (5) the cost associated with any   deviation shall be included within the cost of the Initial Alterations. C.   "Tenant shall, if necessary, submit Tenant Improvement Plans to the   appropriate governmental authority(ies) for approval and the issuance of   necessary building and other permits (the "Permits"). Tenant shall   cause to be made any changes in the plans and specifications necessary to   obtain the Permits. After the final approval of Tenant Improvement Plans, no   further changes to Tenant Improvement Plans may be made without the prior   written approval from both Landlord and Tenant (which approval shall not be   unreasonably withheld or 
    

 

	

    	
delayed), which   shall include agreement by Tenant to pay costs in excess of the Tenant   Allowance (as defined below) resulting from the design and/or construction of   such changes. D. Landlord shall provide approval or return the Tenant   Improvement Plans with comments within five (5) business days of Tenant's   request for same (and such deadline shall apply to all requests for approval   pursuant to Section LA and Section I.0 above). If Landlord fails to respond   within such five (5) day time period, Landlord's failure to so respond shall   be deemed approval. E. Landlord shall not be expected nor required to obtain   any permits or approvals relating to (1) any back-up generator or other   personal property and equipment installed on Tenant's behalf and (2) Tenant's   use of and operations of its business in the Premises. Tenant shall be solely   responsible for obtaining, at its sole cost and expense, all permits and   approvals necessary or appropriate for the conduct of its business, operation   of its property and equipment and use of the Premises. Tenant shall, through   its contractor, obtain Permit(s) for the construction of the Initial   Alterations and any temporary and/or permanent certificate(s) of occupancy   issued pursuant to such validly obtained Permits upon completion of the   Initial Alterations. Landlord agrees to reasonably cooperate with and assist   Tenant in obtaining the Permit(s) and Certificates of Occupancy. Tenant's   failure to obtain such Permit(s) and/or Certificates of Occupancy shall not   cause a delay in the Tenant's obligation to pay Rent or any other obligations   set forth in the Lease, unless such failure is due to the negligent act or   omission of, default of, failure to cooperate by, or existing problems with the   Building that are the fault of, Landlord or its agents, contractors,   employees, invitees or visitors. II. CONSTRUCTION OF INITIAL ALTERATIONS. A.   Tenant shall enter into a construction contract with its contractor for the   construction of the Initial Alterations in accordance with Tenant Improvement   Plans. The identity of the contractor selected by Tenant shall be approved in   advance by Landlord, which approval shall not be unreasonably withheld or   delayed. Tenant shall use only new, first-class materials in the Initial   Alterations, except where explicitly shown in the Tenant Improvement Plans.   All Initial Alterations shall be performed in a good and workmanlike manner.   The cost of such work shall be paid as provided in Section III hereof.   Landlord shall not be liable for any direct or   indirect costs, expenses or damages as a result of delays in construction   caused by Tenant Delays (as defined below) or Force Majeure. B. Tenant's   contractor shall carry (i) Comprehensive General Liability Insurance   (including Contractors' Protective Liability) in an amount not less than   $3,000,000.00 per occurrence combined single limit , which insurance shall   also provide for explosion and collapse, completed operations coverage and   broad form blanket contractual liability coverage, and (ii)   "All-risk" builder's risk insurance upon the entire Initial   Alterations to the full insurable value thereof, which shall include the interest of Landlord and   Tenant (and their respective contractors and subcontractors of any tier to   the extent of any insurable interest therein) in the Initial Alterations and   shall insure against the perils of fire and extended coverage and shall   include "all-risk" builder's risk insurance for physical loss or   damage including, without 
    

 

	

    	
duplication of coverage, theft, vandalism and malicious mischief. Any loss   insured under said "all-risk" builder's risk insurance is to be   adjusted with Landlord and Tenant and made payable to Landlord, as trustee   for the insureds, as their interests may appear. All such policies of   insurance shall name Landlord as an additional insured, and Tenant shall   provide a certificate of insurance evidencing the foregoing coverage prior to   commencement of the Initial Alterations. C. Without limitation of the   indemnification provisions contained in the Lease, to the fullest extent   permitted by law Tenant agrees to indemnify, protect, defend and hold   harmless Landlord; the parties listed, or required by, the Lease to be named   as additional insureds; Landlord's contractors; and Landlord's architects;   and their respective beneficiaries, partners, directors, officers, employees   and agents, from and against all claims, liabilities, losses, damages and   expenses of whatever nature arising out of or in connection with the acts,   omissions or negligence of Tenant, Tenant's contractors, employees, agents,   architects, invitees and visitors in connection with   the Initial Alterations (except if arising out of or in connection with (i)   latent defects in the Building or Premises or (ii) the acts, omissions or   negligence of Landlord, the parties listed, or required by, the Lease to be   named additional insureds, Landlord's contractors, employees, agents, architects, visitors and invitees) or the   entry of Tenant or Tenant's   contractors into the Premises, including,   without limitation, mechanic's liens, the cost of any repairs to the Premises necessitated by activities   of Tenant or Tenant's contractors, bodily injury to persons or damage to the   property of Tenant, its employees, agents, invitees, licensees or others. It   is understood and agreed that the foregoing indemnity shall be in addition to   the insurance requirements set forth above and shall not be in discharge of   or in substitution for same or any other   indemnity or insurance provision of the Lease. D. Tenant and Tenant's   contractors shall take all precautionary steps to minimize dust, noise and   construction traffic, and to protect their facilities and the facilities of   others affected by the Initial Alterations and to properly police same.   Construction equipment and materials are to be kept within the Premises and   delivery and loading of equipment and materials shall be done at such   locations and at such time as Landlord shall direct so as not to burden the   construction or operation of the Building. If and as required by Landlord,   the Premises shall be sealed off from the balance of the other tenant space   on the floor containing the Premises so as to minimize the disbursement of   dirt, debris and noise. Tenant and Tenant's contractors shall perform standard   work on the Initial Alterations between the hours of 7:00 a.m. and 6:00 p.m.   Monday through Saturday ("Working Hours"), provided, however, that any work which shall be considered, in Landlord's reasonable   discretion, to cause excessive noise and/or vibration shall he performed   before or after Working Hours. E. Landlord shall have the right to order   Tenant or any of Tenant's contractors who, after written notice and a   reasonable opportunity to cure such violation, continue to violate the   requirements contained in this Work Letter and imposed on Tenant or Tenant's   contractors in performing the Initial Alterations, to cease work and remove   its equipment and employees from the Building. No such action by Landlord   shall delay Tenant's obligation to pay Rent or any other obligations therein   set forth. 
    

 

	

    	
F. Utility   costs or charges for any service (including   HVAC, hoisting or freight elevator and the like) to the Premises shall be the   responsibility of Tenant from the date Tenant is obligated to commence or commences   the Initial Alterations and shall be paid for by Tenant at Landlord's   standard rates then in effect. Tenant shall apply and pay for all utility   meters required. Tenant shall pay for all support services provided by   Landlord's contractors at Tenant's request or at Landlord's discretion   resulting from breaches or defaults by Tenant under this Work Letter. All use   of freight elevators is subject to (i) scheduling by Landlord or property   manager, and (ii) the rules and regulations of the Building. Tenant shall   arrange and pay for removal of construction debris and shall not place debris   in the Building's waste containers. If required by Landlord, Tenant shall   sort and separate its waste and debris for recycling and/or environmental law   compliance purposes. Tenant or Tenant's contractor may provide for a dumpster   to be located and utilized at the Property, subject, however to scheduling by   Landlord or property manager. G. Tenant shall permit access to the Premises,   and the Initial Alterations shall be subject to inspection, by Landlord and   Landlord's architects, engineers, contractors and other representatives, at   all times during the period in which the Initial Alterations are being   constructed and installed and immediately following completion of the Initial   Alterations. H. Landlord shall provide, at no cost to Tenant, the services of   an on-site project manager, who will be charged with the task of performing   daily supervision of the Initial Alterations. Such on-site project manager   shall be familiar with all rules and regulations and procedures of the   Building and all personnel of the Building engaged directly or indirectly in   the management, operation and construction of the Building, and shall work   with the contractors to ensure a seamless connection between the design and   the construction of the Initial Alterations. Such on-site project manager   shall be accountable and responsible to Tenant and to Landlord, and where   necessary shall serve as a liaison between Landlord and Tenant with respect   to the Initial Alterations. III. PAYMENT OF COST OF THE INITIAL   ALTERATIONS. A. Landlord agrees to contribute the sum of up to $162,500.00 (the "Tenant Allowance") to be applied toward the cost of the Initial Alterations. The   Tenant Allowance shall be used only for: Soft costs, including, without   limitation, payment of the cost of preparing any initial space plan and the   final working drawings and specifications, including mechanical, electrical,   plumbing and structural drawings and of all other aspects of Tenant Improvement   P lans. (2) The payment of plan check, permit and license fees relating to   construction of the Initial Alterations. (3) Construction of Initial   Alterations, including, without limitation, the following: 
    

 

	

    	
(a)   Installation within the Premises of all partitioning, doors, floor coverings,   ceilings, wall coverings and painting, millwork and similar items. (b) All   electrical wiring, lighting fixtures, outlets and switches, and other   electrical work to be installed within the Premises. (c) All additional   Tenant requirements including, but not limited to, odor control, special   heating, ventilation and air conditioning, noise or vibration control,   plumbing systems and other special systems. (d) All fire and life protection   systems such as fire walls, alarms and accessories, safety control systems,   sprinklers, halon, fire piping, and wiring installed within the Premises. (e)   All plumbing fixtures, pipes and accessories to be installed within the   Premises. (f) Testing and inspection costs. (g) Contractor's fees, including,   but not limited to, any fees based on general conditions. (h) Architectural,   engineering and energy management services. (i) Installation of check meters   or flow meters for all Utilities serving the Premises as set forth in Section   1 l of the Lease. B. The approved cost of the performance of the Initial   Alterations shall be first charged against the Tenant Allowance. Tenant shall   submit to Landlord, from time to time, but not more often than two times in   any month, an application for payment (less the amount of any contract   retainage), which shall be signed by Tenant's general contractor and the   architect, for the portion of the work completed, together with the following   information: (1) A copy of a receipted invoice or other evidence reasonably   satisfactory to Landlord of the payment by Tenant of the prior application   for payment (not applicable to the first application for payment). (2) Lien   waivers from all parties supplying labor or material in connection with the   Initial Alterations, in form reasonably acceptable to Landlord, which waiver   may be conditioned only upon payment of work covered by the application for   payment. Landlord and Tenant acknowledge that the cost of installing the   Initial Alterations may exceed the Tenant Allowance. The amount by which the   cost of the Initial Alterations exceeds the Tenant Allowance is referred to   as the "Excess Cost". Tenant shall pay for the Excess Cost, 111219 v11 67239.073 
    

 

	

    	
and failure to   do so shall be a default under the Lease. C. In no event shall the Tenant   Allowance be used for the purchase of equipment, furniture or other items of   personal property of Tenant. In the event the entire Tenant Allowance is not   utilized or disbursed, any unused amount shall accrue to the sole benefit of   Landlord, it being understood that Tenant shall not be entitled to any   credit, abatement or other concession in connection therewith. Tenant shall   be responsible for all applicable state sales or use taxes, if any, payable   in connection with the Initial Alterations, Tenant Allowance and/or Excess   Cost. D. If Tenant fails to make any payment relating to the Initial   Alterations as required hereunder, Landlord, at its option, may complete the   Initial Alterations pursuant to the Tenant Improvement Plans and continue to   hold Tenant liable for the costs thereof and all other costs due to Landlord.   Tenant's failure to pay any amounts owed by Tenant hereunder when due or   Tenant's failure to perform its obligations hereunder shall also constitute a   default under the Lease and Landlord shall have all the rights and remedies   granted to Landlord under the Lease for nonpayment of any amounts owed   thereunder or failure by Tenant to perform its obligations thereunder. IV. COMPLETION.  A. Tenant shall   proceed with the Initial Alterations expeditiously, continuously and   efficiently, and shall use its best efforts to effect Substantial Completion   of the Initial Alterations on or before one hundred eighty (180) days after   the date Landlord tenders possession of the Premises to Tenant for the   construction of the Initial Alterations, and Tenant shall notify Landlord   upon completion of the Initial Alterations. Tenant shall promptly complete   all punch list items associated with the Initial Alterations. B. Substantial   Completion of the Initial Alterations for the Office Space or the Lab Space   (as applicable for each of these spaces) shall be the date which is the   earlier to occur of (1) the date when Tenant occupies all or any portion of   the Lab Space or Office Space, as   applicable, for its business use or (2) the date when the building department   or other appropriate governmental authority having jurisdiction issues either   a Certificate of Occupancy, a Temporary Certificate of Occupancy or other   communication or approval permitting legal occupancy of the Lab Space or   Office Space, as applicable. V. APPLICABILITY OF WORK LETTER. This Exhibit shall not be deemed applicable to any additional   space added to the original Premises at any   time or from time to time, whether by any options   under the Lease or otherwise, or   to any portion of the original Premises or any additions to the Premises in   the event of a renewal or extension of the original Term of this Lease,   whether by any options under the Lease or otherwise, unless expressly so   provided in the Lease or any amendment or supplement to the Lease. 
    

 

	

    	
EXHIBIT D PWC SPACE AND CURE SPACE 
    

 

	

    	
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EXHIBIT E ENVIRONMENTAL LAND USE RESTRICTION 
    

 

	

    	
DECLARATION OF   ENVIRONMENTAL LAND USE RESTRICTION AND GRANT OF EASEMENT This Declaration of   Environmental Land Use Restriction and Grant   of Easement is made this day of , between WE   George Street, L.L.C. (the "Grantor") and the Commissioner of   Environmental Protection of the State of   Connecticut (the "Grantee"). WITNESSETH: WHEREAS. Grantor is the   owner in fee simple of certain real property (the "Property") known   as 300 George Street, located in the City of New Haven, New Haven County,   Connecticut designated as Map #262, Block #203, Parcel #001 on the tax map of   the City of New Haven, New Haven County, Connecticut, more particularly   described on Exhibit A which is attached hereto and made a part hereof; and   WHEREAS, the Grantee has determined that the environmental land use   restriction set forth below is consistent with regulations adopted pursuant   to Section 22a-133k of the Connecticut General Statutes; and WHEREAS, the   Grantee has determined that this environmental land use restriction will   effectively protect public health and the environment from the hazards of   pollution; and WHEREAS. the Grantee's written approval of this environmental   land use restriction is contained in the document attached hereto as Exhibit   B (the "Decision Document")   which is made a part hereof: and WI IEREAS,   the property or portion thereof identified in the class A-2 survey (the "Subject Area") which survey is attached hereto as Exhibit C which   is made a part hereof, may contain pollutants; and WHEREAS, to prevent exposure to or migration of any such pollutants and to abate   hazards to human health and the environment and in accordance with the   Decision Document, the Grantor   desires to impose certain restrictions upon the use, occupancy, and   activities of and at the Subject   Area, and to grant this environmental land use   restriction to the Grantee on the terms and conditions set   forth below; and WHEREAS, Grantor intends that such restrictions shall run   with the land and be binding upon and   enforceable against Grantor and Grantor's successors and assigns; NOW, THEREFORE, Grantor agrees as follows: I. Purpose. In accordance   with the Decision Document, the purpose of this environmental land use   restriction is to assure that humans are not exposed to soils at the Subject Area polluted with substances in concentrations   exceeding the direct exposure criteria established in R.C.S.A. sections 22a- 133k- I through 22a-133k-3,   inclusive, and that water does not infiltrate soils at the Subject Area   polluted with substances in concentrations exceeding the pollutant mobility   criteria established in R.C.S.A. sections 22a- 133k-I through 22a-I 33k-3, inclusive. 2. Restrictions Applicable to the Property and the Subject Area. In   furtherance of the purposes of this environmental land use restriction,   Grantor shall assure that use, occupancy, and activity of and at the   Subject Area are restricted as follows: Disturbances. Inaccessible soil in   Subject Area A and Subject Area B (i.e., beneath the existing on-site   building vault, and a portion of the on-site trench) shall not be exposed as a   result of excavation, demolition or other activities. The building slab in   Subject Area A 
    

 

	

    	
and Subject Area   B, shall not be disturbed in any manner by activities such as demolition,   excavation or other intrusive activities. B. Demolition. Demolition of the   existing building at the Property, within Subject Area A and Subject Area B,   shall not be permitted, and soil in Subject Area A shall not be exposed to   infiltration of water. 3. Except as provided in Paragraph 4 below, no action   shall be taken, allowed, suffered, or omitted if such action or omission is   reasonably likely to: i. Create a risk of migration of pollutants or a potential hazard   to human health or the environment, or Result in a disturbance of the   structural integrity of any engineering controls designed or utilized at the   Property to contain pollutants or limit human exposure to pollutants. 4.   Emergencies. In the event of an emergency which presents a significant risk   to human health or the environment, the application of Paragraphs 2 and 3   above may be suspended, provided such risk cannot be abated without   suspending such Paragraphs and the Grantor: 1. Immediately notifies the   Grantee of the emergency; Limits both the extent and duration of the   suspension to the minimum reasonably necessary to adequately respond to the   emergency; iii. Implements all measures necessary to limit actual and   potential present and future risk to human health and the environment   resulting from such suspension; and iv. Implements a plan approved in writing   by the Grantee, on a schedule approved by the Grantee, to ensure that the   Subject Area is remediated in accordance with R.C.S.A. sections 22a-133k-1   through 22a-133k-3, inclusive, or restored to its condition prior to such   emergency. 5. Release of Restriction; Alterations of Subject Area. Grantor   shall not make, or allow or suffer to be made, any alteration of any kind in,   to, or about any portion of any of the Subject Area inconsistent with this   environmental land use restriction unless the Grantor has first recorded the   Grantee's riven approval of such alteration upon the land records of City of   New Haven, New Haven County, Connecticut. The Grantee shall not approve any   such alteration and shall not release the Property from the provisions of   this environmental land use restriction unless the Grantor demonstrates to   the Grantee's satisfaction that Grantor has remediated the Subject Area in   accordance with R.C.S.A. sections 22a-133k-I through 22a-133k-3, inclusive.   6. Grant of Easement to the Grantee. Grantor hereby grants and conveys to the   Grantee, the Grantee's agents, contractors, and employees, and to any person   performing pollution remediation activities under the direction thereof, a   non-exclusive easement (the "Easement") over the Subject Area and   over such other parts of the Property as are necessary for access to the   Subject Area or for carrying out any actions to abate a threat to human   health or the environment associated with the Subject Area. Pursuant to this   Easement, the Grantee, the Grantee's agents, contractors, and employees, and   any person performing pollution remediation activities under the direction   thereof, may enter upon and inspect the Property and perform such   investigations and actions as the Grantee deems necessary for any one or more   of the following purposes: Ensuring that use, occupancy, and activities of   and at the Property are consistent with this environmental land use   restriction; ii. Ensuring that any remediation implemented complies with   R.C.S.A. sections 22a-133k-1 through 22a-133k-3, inclusive; and 
    

 

	

    	
i i i .   Performing any additional investigations or remediation necessary to protect   human health and the environment.7. Notice and Time of Entry onto Property.   Entry onto the Property by the Grantee pursuant to this Easement shall be   upon reasonable notice and at reasonable times, provided that entry shall not   be subject to these limitations if the Grantee determines that immediate   entry is necessary to protect human health or the environment. 8. Notice to Lessees and Other   Holders of Interests in the Property. Grantor, or any future holder of any   interest in the property, shall cause any lease, grant, or other transfer of   any interest in the Property to include a provision expressly requiring the   lessee, grantee, or transferee to comply with this declaration of   environmental land use restriction and grant of easement. The failure to   include such provision shall not affect the validity or applicability to the   Property of this declaration of environmental land use restriction and grant   of easement. 9. Persons Entitled to Enforce Restrictions. The restrictions in   this environmental land use restriction on use, occupancy, and activity of   and at the Property shall be enforceable in accordance with section 22a-133p   of the General Statutes. 10 Severabi lit)/ and Termination. If any court of   competent jurisdiction determines that any provision of this declaration of   environmental land use restriction or grant of easement is invalid or   unenforceable, such provision shall be deemed to have been modified   automatically to conform to the requirements for validity and enforceability   as determined by such court. In the event that the provision invalidated is   of such nature that it cannot be so modified, the provision shall be deemed   deleted from this instrument as though it had never been included herein. In   either case, the remaining provisions of this instrument shall remain in full   force and effect. Further, in either case, the Grantor shall submit a copy of   this restriction and of the judgement of the Court to the Grantee in   accordance with R.C.S.A. section 22a- 133q-1(1). This environmental land use   restriction shall be terminated if the Grantee provides notification pursuant   to R.C.S.A. section 22a-133q-1(1). 11. Binding Effect. All of the terms, covenants and conditions   of this declaration of environmental land use restriction and grant of   easement shall run with the land and shall be binding on the Grantor. the   Grantor's successors and assigns, and each owner and any other party entitled   to possession or use of the Property during such period of ownership or   possession. 17. Terms Used Herein. The definitions of terms used herein shall   be the same as the definitions contained in sections 22a-133k-1 and   22a-133q-1 of the Regulations of Connecticut State Agencies as such sections   existed on the date of execution of this environmental land use restriction. [Signature Page Follows] 
    

 

	

    	
Declaration of   Environmental Land Use Restriction and Grant of Easement 300 George Street   New Haven, Connecticut] GRANTOR: WE   George Street, L.L.C. Date Witnesses: Signature Printed/Typed   Name Signature Printed/Typed   Name STATE OF ) COUNTY OF   Personally appeared of signer and sealer of the foregoing instrument, and acknowledged   the same to be his/her free act and   deed, and the tree act and deed of said corporation,   before me. Notary Public/Commissioner of the Superior Court GRANTEE: Grantee,   the Commissioner of Environmental Protection, by her duly   designated agent, Betsey Wingfield, Bureau Chief, Bureau of Water Protection   and Land Reuse. Date Betsey Wingfield, Bureau Chief Bureau of Water Protection &   Land Reuse Department of Environmental Protection 
    

 

	

    	
EXHIBIT B   DECISION DOCUMENT The purpose of   this document is to describe I) the type and location of pollutants in the   soil or groundwater at the specific area noted below at the WE George Street,   L.L.C. property located at 300 George Street in the City of New Haven, Connecticut   ("the Property") for which an Environmental Land Use Restriction ("ELUR") is necessary, 2) the   provisions of the ELUR and the reasons why   such restrictions or limitations on the use of the Property or portions of the Property are   necessary to adequately protect human health and the environment, and 3) why   the ELUR is consistent with the Remediation Standard Regulations, Sections 22a-133k-1   through 22a-133k-3 of the Regulations of Connecticut State Agencies   ("RCSA"). The ELUR prohibits certain activities within two Subject   Areas, as depicted on Exhibit C. Subject Area A is located beneath the   existing office building located on the property. Given access constraints posed by foundation structures and utilities   buried beneath large portions of the building, site-wide groundwater quality   data and other information indicating the absence of significant contamination sources   beneath the building, the Commissioner of Department of Environmental Protection has   accepted the placement of an   appropriate ELUR in lieu of conducting environmental   investigations beneath this building.   Subject Area B is located along the northern edge   of the property where inaccessible soil occurs beneath building vaults and more than four feet below the ground surface of a gravel-bottom trench. Within   Subject Area A on the Property, pollutant(s) may be present in soil at a   concentration in excess of the direct exposure criteria, as defined in   Section 22a-133k-I of the R.C.S.A. The polluted soil (if any) is located   beneath an existing building, and is therefore inaccessible. Polluted soil   beneath the building does not pose a risk to human health, provided the soil   is not exposed, exca ated or disturbed such that people may come into contact   with it, and the building slab which is rendering such possible polluted soil   inaccessible is not disturbed in any manner. If humans were to come into   contact with pollutants that may be present, these pollutant(s) may pose an   unacceptable risk to human health. As required by 22a-133k-2(b)(3) of the   R.C.S.A., the ELUR prohibits inaccessible soil from being exposed as a result   of excavation or other intrusive activities. Within Subject Area A on the   Property, pollutant(s) may be present in soil at a concentration in excess of   the pollutant mobility criteria, as defined in Section 22a-133k-1 of the   R.C.S.A. The polluted soil (if any) is located beneath an existing building,   and therefore environmentally isolated. Polluted soil   beneath the building does not pose a   risk to groundwater quality provided the soil is not exposed to infiltration   of soil water, due to among other things, the demolition of the building.   lithe building is   demolished or polluted soil is exposed to the infiltration of soil water,   such polluted soil may pose an unacceptable risk to groundwater quality. In   accordance with Section 22a-133k-2 (c)(4)(B) of the R.C.S.A, the ELUR   prohibits demolition of the building and the infiltration of soil water into   such polluted soil. Please note that the building consists of the roof, structural   walls, and building slabs, which collectively act to isolated polluted soil.   Within Subject Area B on the Property, pollution is present in soil at a   concentration in excess of the direct exposure   criteria, as defined in Section 22a-133k-I of the R.C.S.A. The polluted soil   is 
    

 

	

    	
located beneath   an existing building vault, and possibly may also occur more than four feet   below the ground surface of a gravel-bottom trench, and is therefore   inaccessible. Polluted soil beneath the building vault and as may occur more   than four feet below the ground surface of a gravel- bottom trench, does not   pose a risk to human health, provided the soil is not exposed, excavated or   disturbed such that people may come into contact with it, and the building   slab and overlying soil which is rendering such soil inaccessible is not   disturbed in any manner. If humans were to come into contact with pollutants   present in soil at a concentration in excess of the direct exposure criteria,   these pollutant(s) may pose an unacceptable risk to human health. As required   by 22a­133k-2(b)(3) of the R.C.S.A., the ELUR prohibits inaccessible soil   from being exposed as a result of excavation or other intrusive activities.   [Public Notice of Grantor's intent to record the ELUR was published in the   Name of Newspaper on Date.] [No comments from the public were received during   the 30-day comment period.); or [The following is a summary of all public   comments that were received, and the response to each comment. (Insert   summary of all public comments, and their associated responses)] Approval of   this Decision Document is hereby granted. Grantee, the Commissioner of   Environmental Protection, by her duly designated agent, Betsey Wingfield,   Bureau Chief, Bureau of Water Protection and Land Reuse. Date   Betsey Wingfield, Bureau Chief Bureau   of Water Protection and Land Reuse Department of Environmental Protection 
    

 

 

 

WE GEORGE STREET, L.L.C.

c/o Winstanley Enterprises LLC

150 Baker Avenue Extension, Suite 303

Concord, Massachusetts 01742

 

April 1, 2009

 

Kolltan Pharmaceuticals Inc.

50 Rock-Hill Road

Woodbridge, CT 06525

Attention: Mr. Michael Schmertzler

 

Re:                             Lease for space at 300 George Street, New Haven, Connecticut (the “Building”)

 

Dear Mr. Schmertzler:

 

Reference is made to that certain Lease Agreement dated as of January 5, 2009 (the “Lease”) between WE George Street, L.L.C. (“Landlord”) and Kolltan Pharmaceuticals Inc. (“Tenant”) pursuant to which the Landlord has leased certain space in the Building to the Tenant. Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Lease.

 

A.                                    Pursuant to Section 1 of the Lease, Tenant is required to commence Rent payments to Landlord on the date which is the earlier to occur of (i) the date of Substantial Completion of the Initial Alterations for the Lab Space (and/or Office Space, as applicable), or (ii) the date which is one hundred eighty (180) days from the Effective Date of the Lease. Notwithstanding the foregoing, Landlord and Tenant hereby agree that the “Lab Space Rent Commencement Date” shall mean the date which is the earlier to occur of (i) the date of Substantial Completion of the Initial Alterations for the Lab Space, or (ii) August 15, 2009; and the “Office Space Rent Commencement Date” shall mean the date which is the earlier to occur of (i) the date of Substantial Completion of the Initial Alterations for the Office Space, or (ii) August 15, 2009.

 

B.                                    Section 34 of the Lease with regard to Tenant’s Expansion Option shall be deleted and the following shall be substituted in lieu thereof:

 

“34.                        Option to Expand.

 

(a)                                 Subject to the rights of existing tenant(s) whose lease(s) pre-date this Lease, and so long as Tenant is not in default beyond the expiration of any applicable notice and cure period on the date Tenant delivers Tenant’s Cure Expansion Notice (as hereinafter defined) or Tenant’s PWC Expansion Notice (as hereinafter defined), as applicable, or at any time thereafter through the commencement date of Tenant’s lease of the Cure Expansion Premises (as hereinafter defined) or Tenant’s lease of the PWC

 

 

Expansion Premises (as hereinafter defined), as applicable, Tenant shall have the following expansion options:

 

(i)                                     Tenant shall have a one-time right (the “Cure Expansion Option”) to lease all or part of the approximately 3,835 rentable square feet of space adjacent to the Premises known as the “Cure Space’” as depicted on Exhibit D attached hereto. Tenant shall exercise the Cure Expansion Option by giving notice to Landlord (“Tenant’s Cure Expansion Notice”) exercising the Cure Expansion Option during the period from August 15, 2009 to August 31, 2009, which notice shall specify the portion of the Cure Space that Tenant elects to lease, and which portion shall be contiguous to the Premises (that portion of the Cure Space that Tenant elects to lease shall be known as the “Cure Expansion Premises”). If Tenant exercises the Cure Expansion Option as aforesaid, then Tenant shall lease the Cure Expansion Premises, and the Cure Expansion Premises shall be deemed part of the Premises from and after September 1, 2009 through the remainder of the initial Term of the Lease and any Extension Term of the Lease, at the rent and upon the other terms set forth below.

 

(ii)                                  Tenant shall have a one-time right (the “PWC Expansion Option”) to lease all or part of the approximately 672 rentable square feet of space adjacent to the Premises known as the “PWC Space” as depicted on Exhibit D attached hereto. Tenant shall exercise the PWC Expansion Option by giving notice to Landlord (“Tenant’s PWC Expansion Notice”) exercising the PWC Expansion Option during the period from November 15, 2009 to November 30, 2009, which notice shall specify the portion of the PWC Space that Tenant elects to lease, and which portion shall be contiguous to the Premises (that portion of the PWC Space that Tenant elects to lease shall be known as the “PWC Expansion Premises”). If Tenant exercises the PWC Expansion Option as aforesaid, then Tenant shall lease the PWC Expansion Premises, and the PWC Expansion Premises shall be deemed part of the Premises from and after December 1, 2009 through the remainder of the initial Term of the Lease and any Extension Term of the Lease, at the rent and upon the other terms set forth below.

 

For purposes of this Lease, the Cure Expansion Premises and the PWC Expansion Premises are sometimes referred to collectively herein as the “Expansion Premises”. Landlord shall deliver the Expansion Premises to Tenant in vacant, broom clean condition, ordinary wear and tear excepted. Landlord represents that on the date Tenant leases the Expansion Premises as set forth above, the Expansion Premises, including without limitation, the electrical, plumbing, HVAC and security systems serving the Expansion Premises shall be in good working order and condition, and the ceiling and windows of the Expansion Premises shall be free of leaks. Tenant shall accept the Expansion Premises in its “as-is” condition. Landlord shall proceed diligently and exercise commercially reasonable efforts to deliver the Expansion Premises to Tenant in the aforementioned condition. Notwithstanding anything contained herein to the contrary, the Expansion Premises shall not be deemed part of the Premises until same have been tendered to Tenant in the condition set forth herein. If Tenant fails to, or

 

2

 

chooses not to, timely and properly exercise the Cure Expansion Option and/or the PWC Expansion Option, Tenant shall, promptly following request by Landlord, execute and deliver a statement confirming that the Cure Expansion Option and/or PWC Expansion Option, as applicable, has been waived (provided that failure to deliver said statement shall not be construed to mean that Tenant has properly exercised the applicable expansion option).

 

(b)           If Tenant does timely and properly exercise the Cure Expansion Option and/or the PWC Expansion Option, as applicable, Tenant shall perform Initial Alterations of the Expansion Premises in accordance with the procedures set forth in the Work Letter attached hereto as Exhibit C, provided that the Tenant Allowance for the Expansion Premises shall be $14.47 per rentable square foot. Tenant shall promptly commence Initial Alterations of the Expansion Premises and diligently pursue them to completion. Tenant shall commence paying Base Rent and Additional Rent on the Cure Expansion Premises from and after the date which is the earlier to occur of (i) the date of Substantial Completion of the Initial Alterations of the Cure Expansion Premises, or (ii) February 28, 2010. Tenant shall commence paying Base Rent and Additional Rent on the PWC Expansion Premises from and after the date which is the earlier to occur of (i) the date of Substantial Completion of the Initial Alterations of the PWC Expansion Premises, or May 30, 2010. Promptly following the date of Substantial Completion of each portion of the Expansion Premises, Landlord and Tenant shall enter into a certificate that confirms the date of Substantial Completion, the amount of space in the Expansion Premises, the revised amount of Base Rent for the Premises and monthly installments, the revised Tenant’s Pro-Rata Share, and any other similar items that cannot be determined until said date.

 

(c)           The Base Rent for the Expansion Premises shall be the same as for the original Premises as set forth in Section 1(d) (i.e., $24.88 psf from the rent commencement date of the Expansion Premises through the end of Lease Year 1, increasing to $25.21 psf for Lease Year 2, and then increasing to $25.54 for Lease Year 3).

 

(d)           Each of the Cure Expansion Option and the PWC Expansion Option shall automatically terminate upon the earlier to occur of (i) the expiration or termination of this Lease, (ii) the termination of Tenant’s right to possession of the Premises, or (iii) the failure of Tenant to timely exercise any right to lease space under the Cure Expansion Option and/or the PWC Expansion Option, as applicable.”

 

C.            The following sentence shall be added to Section III B following subsection (2) of the Work Letter attached to the Lease as Exhibit C:

 

“Landlord shall, within fifteen (15) days of its receipt of Tenant’s application for payment and any supplemental documentation required herein, pay to Tenant, as part of

 

3

 

the Tenant Allowance, such amounts as are requested and approved pursuant to Section III A herein.”

 

As modified herein, the Lease is hereby ratified and confirmed and shall remain in full force and effect. Please sign below to indicate your agreement with the foregoing.

 

(Signatures on following page)

 

4

 

	
 
    	
LANDLORD:
    
	
 
    	
 
    
	
 
    	
WE GEORGE STREET, L.L.C.
    
	
 
    	
 
    
	
 
    	
By: 
    	
WE George Street Holdings LLC
    
	
 
    	
 
    	
Its Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: 
    	
WE George Street Manager Corp.
    
	
 
    	
 
    	
 
    	
Its Sole Member
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
/s/ Carter J. Winstanley
    
	
 
    	
 
    	
 
    	
 
    	
Carter J. Winstanley
    
	
 
    	
 
    	
 
    	
 
    	
Its President
    

 

(Signatures continued on following page)

 

5

 

	
 
    	
Acknowledged and Agreed:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
TENANT:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
KOLLTAN PHARMACEUTICALS INC.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael Schmertzler
    	
 
    
	
 
    	
 
    	
Michael Schmertzler
    	
 
    
	
 
    	
 
    	
Its CEO
    	
 
    

 

6

 

WE GEORGE STREET, L.L.C.

c/o Winstanley Enterprises LLC

150 Baker Avenue Extension, Suite 303

Concord, MA 01742

 

SENT VIA UPS

 

January 28, 2010

 

Mr. Stanley Choy

Kolltan Pharmaceuticals Inc.

300 George Street, Suite 530

New Haven, CT 06511

 

RE:         HVAC System - Premises at 300 George Street, New Haven, CT - Suite 530

 

Dear Stan:

 

Reference is hereby made to that certain Lease Agreement between WE George Street, L.L.C. (“Landlord”) and Kolltan Pharmaceuticals Inc. (“Tenant”), dated as of January 5, 2009 (the “Lease”), by which Tenant leases space on the fifth floor of the Building consisting of approximately 7,775 rentable square feet of space and known as Suite 530 (the “Premises”).

 

The purpose of this letter is to set forth Landlord’s contribution towards the cost of the HVAC system servicing the Premises under the terms and conditions set forth herein.

 

Capitalized terms used but not defined herein shall have the same meaning ascribed to each in the Lease.

 

The undersigned have agreed to the following:

 

Landlord hereby agrees to contribute Five Thousand & 00/100 Dollars ($5,000.00) to Tenant for additional costs associated with the installation of the HVAC system in the leased Premises.

 

Furthermore, the undersigned parties agree that the execution of this letter agreement is in addition to, and will not affect or modify any other provision of the Lease.

 

 

Please sign and have witnessed four (4) originals and return two fully executed originals to Winstanley Enterprises LLC, 150 Baker Avenue Extension, Suite 303, Concord, MA 01742, Attention: Judy Sommers.

 

	
Sincerely,
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Acknowledged and Agreed:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
WE GEORGE STREET, L.L.C.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
WE George Street Holdings LLC
    	
 
    	
 
    
	
 
    	
Its Manager
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
WE George Street Manager Corp.
    	
 
    	
 
    
	
 
    	
 
    	
Its Sole Member
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: 
    	
/s/ Carter J. Winstanley
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Carter J. Winstanley
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
President
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Acknowledged and Agreed:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
KOLLTAN PHARMACEUTICALS INC.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ [ILLEGIBLE] 
    	
 
    	
Dated: 
    	
1/29/10
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Its:
    	
 
    	
 
    
								

 

 

Enclosure: Kolltan Pharmaceuticals Inc. Letter dated November 4, 2009

 

2

 

kolltan

Pharmaceuticals, Inc.

 

November 4, 2009

 

Ken Grant

Vice President of Asset Services

Winstanley Enterprises, LLC

150 Baker Avenue Extension, Suite 303

Concord, MA 01742

 

RE: Invoice for Heat Pump Valves

 

Dear Ken,

 

Per your request, please find attached the invoice from Babbidge Facilities Construction Company, Inc. for the amount of $10,117.57 for the heat pumps and increased water supply to our office.

 

Per our agreement via e-mail, Winstanley Enterprises, LLC will pay half of this bill in the amount of $5,000.00 payable to Kolltan Pharmaceuticals, Inc.

 

Thank you for your thoughtful attention to resolving this matter.

 

	
 
    	
Best regards,
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Stanley Ohoy
    
	
 
    	
Stanley Ohoy
    
	
 
    	
Vice President, Finance and Treasurer
    

 

 

Encs.

 

300 George Street, Suite 530, New Haven, Connecticut 06511

 

 

AMENDMENT NO. 1 TO LEASE

 

THIS AMENDMENT NO. 1 TO LEASE (this “Amendment”) is made and entered into as of the 10th day of September, 2010 between Landlord and Tenant named below:

 

	
LANDLORD:
    	
WE GEORGE STREET, L.L.C.
    
	
 
    	
c/o Winstanley Enterprises LLC
    
	
 
    	
150 Baker Avenue Extension, Suite 303
    
	
 
    	
Concord, MA 01742
    
	
 
    	
 
    
	
TENANT: 
    	
KOLLTAN PHARMACEUTICALS INC.
    
	
 
    	
300 George Street
    
	
 
    	
New Haven, Connecticut 06510
    
	
 
    	
 
    
	
BUILDING:
    	
300 George Street
    
	
 
    	
New Haven, Connecticut 06510
    

 

WHEREAS, Landlord and Tenant executed a lease dated as of January 5, 2009, as amended by that certain side letter dated April 1, 2009 (the “First Side Letter”), as affected by that certain Rent Commencement Letter dated July 8, 2009 (the “Rent Commencement Letter”), as further amended by that certain side letter dated January 28, 2010 (the “Second Side Letter”), by which Tenant leases approximately 7,775 rentable square feet of space in the Building (the lease, as amended by the First Side Letter, the Rent Commencement Letter, the Second Side Letter and as further amended herein, is hereinafter referred to collectively as the “Lease”); and

 

WHEREAS, Landlord and Tenant have agreed to amend the Lease to add the former PWC space to the Premises, on the terms and conditions set forth below.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows:

 

1.                                      Capitalized terms used but not defined herein shall have the meaning ascribed to each in the Lease.

 

2.                                      Tenant shall lease additional space in the Building consisting of approximately 641 rentable square feet of space (the “PWC Space”), substantially as shown on the Floor Plan attached hereto as Schedule A, beginning on the date of this Amendment (the “PWC Space Effective Date”), and continuing through the last day of the Term of the Lease. From and after the PWC Space Effective Date, the definition of Premises as used in the Lease shall be deemed to include the PWC Space and shall consist of approximately 8,416 rentable square feet in the aggregate.

 

3.                                      Tenant takes the PWC Space “AS-IS”. Landlord shall provide Tenant with a Tenant Allowance amount for the PWC Space of $14.47 per rentable square foot, for a total of $9,275.27. All Initial Alterations of the PWC Space, and the reimbursement of Tenant for the

 

 

costs thereof by Landlord from said Tenant Allowance, shall be conducted in accordance with the procedures set forth in the Work Letter attached to the Lease as Exhibit C.

 

4.                                      From and after the PWC Space Effective Date, Section 1(f) of the Lease is hereby amended to provide that Base Rent shall be due and payable to the Landlord at the time and in the manner set forth in the Lease, as follows:

 

	
Period
    	
 
    	
Base Rent Per RSF
    	
 
    	
Annual Base Rent
    	
 
    	
Monthly Base Rent
    	
 
    
	
06/09/09 — 06/30/10

(Lease Year 1)
    	
 
    	
7,775 rsf at $24.88
    	
 
    	
$
    	
193,442.00
    	
 
    	
$
    	
16,120.17
    	
 
    
	
07/01/10 — 09/09/10

(start of Lease Year 2)
    	
 
    	
7,775 rsf at $25.21
    	
 
    	
$
    	
196,007.75
    	
 
    	
$
    	
16,333.98
    	
 
    
	
09/10/10 — 06/30/11

(end of Lease Year 2)
    	
 
    	
8,416 rsf at $25.21
    	
 
    	
$
    	
212,167.36
    	
 
    	
$
    	
17,680.61
    	
 
    
	
07/01/11 — 06/30/12

(Lease Year 3)
    	
 
    	
8,416 rsf at $25.54
    	
 
    	
$
    	
214,944.64
    	
 
    	
$
    	
17,912.05
    	
 
    

 

5.                                      Commencing on the PWC Space Effective Date, Tenant’s Pro Rata Share as set forth in Section 1(j) of the Lease shall be equal to 1.62%.

 

6.                                      Landlord and Tenant represent and warrant to the other that each has full authority to enter into this Amendment and further agree to hold harmless, defend, and indemnify the other from any loss, costs (including reasonable attorneys’ fees), damages, or claim arising from any lack of such authority.

 

7.                                      As modified herein, the Lease is hereby ratified and confirmed and shall remain in full force and effect.

 

8.                                      Landlord and Tenant hereby represent and warrant to the other that each has not dealt with any broker, finder or like agent in connection with this Amendment and each does hereby agree to indemnify and hold the other, its agents and their officers, directors, shareholders, members, partners and employees, harmless of and from any claim of, or liability to, any broker, finder or like agent claiming a commission or fee by reason of having dealt with either party in connection with the negotiation, execution or delivery of this Amendment, and all expenses related thereto, including, without limitation, reasonable attorneys’ fees and disbursements.

 

9.                                      This Amendment constitutes the entire agreement by and between the parties hereto and supersedes any and all previous agreements, written or oral, between the parties. No modification or amendment of this Amendment shall be effective unless the same shall be in writing and signed by the parties hereto. The provisions of this Amendment shall inure to the benefit of, and be binding upon, the parties hereto and their respective legal representatives, successors and assigns.

 

 

10.                               This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of such counterparts shall constitute one agreement. This Amendment shall become effective when duly executed and delivered by all parties hereto.

 

11.                               This Amendment shall be effective as of the date set forth above, notwithstanding the date of execution.

 

(Signatures on following page)

 

 

IN WITNESS WHEREOF, Landlord and Tenant have signed this Amendment No. 1 to Lease as of the day and year first above written.

 

	
 
    	
LANDLORD:
    
	
 
    	
 
    
	
 
    	
WE GEORGE STREET, L.L.C.
    
	
 
    	
 
    
	
 
    	
By:
    	
WE George Street Holdings LLC
    
	
 
    	
 
    	
Its Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
WE George Street Manager Corp.
    
	
 
    	
 
    	
 
    	
Its Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Carter J. Winstanley
    
	
 
    	
 
    	
 
    	
Name: Carter J. Winstanley
    
	
 
    	
 
    	
 
    	
Title: Its President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TENANT:
    
	
 
    	
 
    
	
 
    	
KOLLTAN PHARMACEUTICALS INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stanley Choy
    
	
 
    	
 
    	
Name: Stanley Choy
    
	
 
    	
 
    	
Title: VP Finance and Treasurer
    

 

[Signature page to Amendment No. 1 to Lease by and between

WE George Street, L.L.C. and Kolltan Pharmaceuticals Inc.]

 

 

SCHEDULE A

 

FLOOR PLAN

 

 

 

 

AMENDMENT NO. 2 TO LEASE

 

THIS AMENDMENT NO. 2 TO LEASE (this “Amendment”) is made and entered into as of the 31 day of December, 2010 between Landlord and Tenant named below:

 

	
LANDLORD:
    	
WE GEORGE STREET, L.L.C.
    
	
 
    	
c/o Winstanley Enterprises LLC
    
	
 
    	
150 Baker Avenue Extension, Suite 303
    
	
 
    	
Concord, MA 01742
    
	
 
    	
 
    
	
TENANT:
    	
KOLLTAN PHARMACEUTICALS INC.
    
	
 
    	
300 George Street
    
	
 
    	
New Haven, Connecticut 06510
    
	
 
    	
 
    
	
BUILDING:
    	
300 George Street
    
	
 
    	
New Haven, Connecticut 06510
    

 

WHEREAS, Landlord and Tenant executed a Lease Agreement dated as of January 5, 2009, as amended by that certain side letter dated April 1, 2009 (the “First Side Letter”), as affected by that certain Rent Commencement Letter dated July 8, 2009 (the “Rent Commencement Letter”), as further amended by that certain side letter dated January 28, 2010 (the “Second Side Letter”), by which Tenant leases approximately 7,775 rentable square feet of space in the Building; and

 

WHEREAS, Landlord and Tenant executed an Amendment No. 1 to Lease dated as of September 10, 2010 (“Amendment No. 1”) whereunder the parties added approximately 641 rentable square feet of space to the Lease (the lease, as amended by the First Side Letter, the Rent Commencement Letter, the Second Side Letter, Amendment No. 1, and as further amended herein, is hereinafter referred to collectively as the “Lease”); and

 

WHEREAS, Landlord and Tenant have agreed to amend the Lease to extend the Term of the Lease and increase the area of the Premises, on the terms and conditions set forth below.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows:

 

1.                                      Capitalized terms used but not defined herein shall have the meaning ascribed to each in the Lease.

 

2.                                      Notwithstanding anything contained in the Lease to the contrary, the Term of the Lease is hereby extended to June 30, 2013, on the same terms and conditions set forth in the Lease as modified by this Amendment, and the Termination Date set forth in Section l(o) of the Lease is hereby revised accordingly.

 

1

 

3.                                      Tenant shall lease additional space in the Building consisting of approximately 3,835 rentable square feet of space (the “Cure Space”), substantially as shown on the Floor Plan attached hereto as Schedule A, beginning on the date of this Amendment (the “Cure Space Effective Date”), and continuing through the last day of the Term of the Lease, as extended. From and after the Cure Space Effective Date, the definition of Premises as used in the Lease shall be deemed to include the Cure Space and shall consist of approximately 12,251 rentable square feet in the aggregate.

 

4.                                      Tenant acknowledges that Connecticut United for Research Excellence, Inc., d/b/a/ CURE (“Cure”) currently has possession of the Cure Space pursuant to a lease between Landlord and Cure, and delivery of the Cure Space by Landlord on the Cure Space Effective Date is subject to said possession by Cure. Landlord, Tenant and Cure have entered into an amendment, of even date herewith, to the existing lease between Landlord and Cure that, among other things, converts said lease into a sublease between Tenant and Cure (the “Cure Sublease”). Tenant takes the Cure Space “AS-IS”, provided, however, that Landlord represents and warrants that the Cure Space is in full compliance with all applicable laws, rules, regulations and codes, except that the foregoing representation does not include compliance with applicable laws, rules, regulations and codes that are the responsibility of Cure under the Cure Sublease.

 

5.                                      Landlord shall provide Tenant with a Tenant Allowance amount for the Cure Space of $14.47 per rentable square foot, for a total of $55,492.45, which shall be available as of January 1, 2012 (i.e., the scheduled expiration of the Cure Sublease). All Initial Alterations of the Cure Space, and the reimbursement of Tenant for the costs thereof by Landlord from said Tenant Allowance, shall be conducted in accordance with the procedures set forth in the Work Letter attached to the Lease as Exhibit C. If Tenant elects to undertake the Initial Alterations, Tenant shall commence Initial Alterations of the Cure Space following January 1, 2012 as herein set forth and diligently pursue them to completion. Tenant shall not be entitled to a Tenant Allowance for the Cure Space if Tenant does not perform the Initial Alterations of the Cure Space.

 

6.                                       From and after the Cure Space Effective Date, Section 1(f) of the Lease is hereby amended to provide that Base Rent shall be due and payable to the Landlord at the time and in the manner set forth in the Lease, as follows:

 

	
Period
    	
 
    	
Base Rent Per RSF
    	
 
    	
Annual Base Rent
    	
 
    	
Monthly Base Rent
    	
 
    
	
06/09/09 – 06/30/10
    	
 
    	
7,775 rsf at $24.88
    	
 
    	
$
    	
193,442.00
    	
 
    	
$
    	
16,120.17
    	
 
    
	
(Lease Year 1)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
07/01/10 – 09/09/10
    	
 
    	
7,775 rsf at $25.21
    	
 
    	
$
    	
196,007.75
    	
 
    	
$
    	
16,333.98
    	
 
    
	
(start of Lease Year 2)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
09/10/10 (PWC Space
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Effective Date) – day prior to
    	
 
    	
8,416 rsf at $25.21
    	
 
    	
$
    	
212,167.36
    	
 
    	
$
    	
17,680.61
    	
 
    
	
Cure Space Effective Date
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(middle of Lease Year 2)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

2

 

	
Period
    	
 
    	
Base Rent Per RSF
    	
 
    	
Annual Base Rent
    	
 
    	
Monthly Base Rent
    	
 
    
	
Cure Space Effective Date —
    	
 
    	
8,416 rsf at $25.21
    	
 
    	
$
    	
212,167.36
    	
 
    	
$
    	
17,680.61
    	
 
    
	
06/30/11
    	
 
    	
3,835 rsf at $11.50
    	
 
    	
$
    	
+44,102.50
    	
 
    	
$
    	
+3,675.21
    	
 
    
	
(end of Lease Year 2)
    	
 
    	
 
    	
 
    	
$
    	
256,269.86
    	
 
    	
$
    	
21,355.82
    	
 
    
	
07/01/11 — 12/31/11
    	
 
    	
8,416 rsf at $25.54
    	
 
    	
$
    	
214,944.64
    	
 
    	
$
    	
17,912.05
    	
 
    
	
(start of Lease Year 3)
    	
 
    	
3,835 rsf at $11.50
    	
 
    	
$
    	
+44,102.50
    	
 
    	
$
    	
+3,675.21
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
$
    	
259,047.14
    	
 
    	
$
    	
21,587.26
    	
 
    
	
01/01/12 — 06/30/13
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(end of Lease Year 3
    	
 
    	
12,251 rsf at $25.54
    	
 
    	
$
    	
312,890.54
    	
 
    	
$
    	
26,074.21
    	
 
    
	
and Lease Year 4)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

7.             Landlord and Tenant acknowledge and agree that the Base Rent for the Cure Space as set forth above is meant to reflect that Cure shall sublease the Cure Space from Tenant through December 31, 2011, during which period Tenant shall pay the same Base Rent as Cure is currently paying for the Cure Space. From and after January 1, 2012 until the end of the Term, Tenant shall pay the same Base Rent for the Cure Space that it pays for the rest of the Premises. However, the obligations of Tenant as set forth in the Lease, as amended herein, including, without limitation, the obligations to pay the Base Rent as set forth above, are independent of whether Cure pays rent to Tenant under the Cure Sublease, whether Cure vacates and surrenders the Cure Space on December 31, 2011, and/or any other matter or thing related to Cure’s occupancy and use of the Cure Space. Notwithstanding the foregoing or any provisions in the Lease to the contrary, through December 31, 2011, provided that Cure is in full compliance with its obligations under the Cure Sublease, Tenant shall be deemed to be in full compliance with its obligations under the Lease with respect to the Cure Space.

 

8.             Commencing on the Cure Space Effective Date and ending on December 31, 2011, Tenant’s Pro Rata Share as set forth in Section 1(j) of the Lease shall be equal to 2.20%. From and after January 1, 2012 until the end of the Term, Tenant’s Pro Rata Share as set forth in Section 1(j) of the Lease shall be equal to 2.36%. The foregoing provision is meant to reflect that the pro-rata share of Taxes and Expenses paid by Cure under the Cure Sublease is 0.58% notwithstanding that the correct percentage is 0.74%, and Kolltan is therefore only obligated to pay Tenant’s Pro Rata Share for the Cure Space at the same rate as paid by Cure, until the scheduled termination date of the Cure Sublease, after which Kolltan shall pay the correct percentage for the Cure Space.

 

9.             Notwithstanding anything to the contrary in Section 35(a) of the Lease, Tenant shall have one Renewal Option to renew the Lease for a period of three years, followed by one Renewal Option to renew the Lease for a period of two years. Section 35(b) is hereby amended as follows:

 

“(b)         Upon Landlord’s receipt of Tenant’s Renewal Notice, in accordance with the requirements and subject to the provisions of this Section 35, the Lease shall be automatically extended for such Renewal Term with the same force and effect as if the Renewal Term had been originally included in the term of the Lease, except that the Base Rent under the Lease for each Renewal Term shall be as follows:

 

3

 

	
Period
    	
 
    	
Base Rent Per RSF
    	
 
    	
Annual Base Rent
    	
 
    	
Monthly Base Rent
    	
 
    
	
07/01/13 — 06/30/14
    	
 
    	
12,251 rsf at $25.88
    	
 
    	
$
    	
317,055.88
    	
 
    	
$
    	
26,421.32
    	
 
    
	
(Lease Year 5)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
07/01/14 — 06/30/16
    	
 
    	
12,251 rsf at $26.22
    	
 
    	
$
    	
321,221.22
    	
 
    	
$
    	
26,768.44
    	
 
    
	
(Lease Years 6 and 7)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

	
Period
    	
 
    	
Base Rent Per RSF
    	
 
    	
Annual Base Rent
    	
 
    	
Monthly Base Rent
    	
 
    
	
07/01/16 — 06/30/17
    	
 
    	
12,251 rsf at $26.58
    	
 
    	
$
    	
325,631.58
    	
 
    	
$
    	
27,135.97
    	
 
    
	
(Lease Year 8)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
07/01/17 —06/30/18
    	
 
    	
12,251 rsf at $26.93
    	
 
    	
$
    	
329,919.43
    	
 
    	
$
    	
27,493.29
    	
 
    
	
(Lease Year 9)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

10.                               The amount of the Security Deposit shall be increased by the amount of $19,234.29 (for a total Security Deposit of $51,474.62) which increase shall be paid by Tenant to Landlord within fifteen (15) business days of the date of this Amendment.

 

11.                               Article 34 of the Lease (Option to Expand) is hereby deleted in its entirety.

 

12.                               Landlord and Tenant represent and warrant to the other that each has full authority to enter into this Amendment and further agree to hold harmless, defend, and indemnify the other from any loss, costs (including reasonable attorneys’ fees), damages, or claim arising from any lack of such authority.

 

13.                               As modified herein, the Lease is hereby ratified and confirmed and shall remain in full force and effect.

 

14.                               Landlord and Tenant hereby represent and warrant to the other that each has not dealt with any broker, finder or like agent in connection with this Amendment and each does hereby agree to indemnify and hold the other, its agents and their officers, directors, shareholders, members, partners and employees, harmless of and from any claim of, or liability to, any broker, finder or like agent claiming a commission or fee by reason of having dealt with either party in connection with the negotiation, execution or delivery of this Amendment, and all expenses related thereto, including, without limitation, reasonable attorneys’ fees and disbursements.

 

15.                              This Amendment constitutes the entire agreement by and between the parties hereto and supersedes any and all previous agreements, written or oral, between the parties. No modification or amendment of this Amendment shall be effective unless the same shall be in writing and signed by the parties hereto. The provisions of this Amendment shall inure to the benefit of, and be binding upon, the parties hereto and their respective legal representatives, successors and assigns.

 

4

 

16.                               This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of such counterparts shall constitute one agreement. This Amendment shall become effective when duly executed and delivered by all parties hereto.

 

(Signatures on following page)

 

5

 

IN WITNESS WHEREOF, Landlord and Tenant have signed this Amendment No. 2 to Lease as of the day and year first above written.

 

	
 
    	
LANDLORD:
    
	
 
    	
 
    
	
 
    	
WE GEORGE STREET, L.L.C.
    
	
 
    	
 
    
	
 
    	
By:
    	
WE George Street Holdings LLC
    
	
 
    	
 
    	
Its Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
WE George Street Manager Corp.
    
	
 
    	
 
    	
 
    	
Its Sole Member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Carter J. Winstanley
    
	
 
    	
 
    	
Name: Carter J. Winstanley
    
	
 
    	
 
    	
Title: Its President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TENANT:
    
	
 
    	
 
    
	
 
    	
KOLLTAN PHARMACEUTICALS INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stanley Choy
    
	
 
    	
 
    	
Name:
    	
Stanley Choy
    
	
 
    	
 
    	
Title:
    	
VP Finance and Treasurer
    
							

 

[Signature page to Amendment No. 2 to Lease by and between

WE George Street, L.L.C. and Kolltan Pharmaceuticals Inc.]

 

6

 

SCHEDULE A

 

FLOOR PLAN

 

 

 

 

AMENDMENT NO. 3 TO LEASE

 

THIS AMENDMENT NO. 3 TO LEASE (this “Amendment”) is made and entered into as of the 7th day of July, 2011 (the “Amendment 3 Effective Date”) between Landlord and Tenant named below:

 

LANDLORD:                    WE GEORGE STREET, L.L.C

c/o Winstanley Enterprises LLC

50 Baker Avenue Extension, Suite 303

Concord, MA 01742

 

TENANT:                                       KOLLTAN PHARMACEUTICALS INC.

300 George Street

New Haven, Connecticut 06510

 

BUILDING:                           300 George Street

New Haven, Connecticut 06510

 

WHEREAS, Landlord and Tenant executed a Lease Agreement dated as of January 5, 2009 (as previously amended, and as further amended herein, the “Lease”), as amended by that certain side letter dated April 1, 2009, as affected by that certain Rent Commencement Letter dated July 8, 2009, as further amended by that certain side letter dated January 28, 2010, by which Tenant leased approximately 7,775 rentable square feet of space in the Building (the “Original Premises”); and

 

WHEREAS, Landlord and Tenant executed an Amendment No. 1 to Lease dated as of September 10, 2010 whereunder the parties added approximately 641 rentable square feet of space to the Lease (the “PWC Space”); and

 

WHEREAS, Landlord and Tenant executed an Amendment No. 2 to Lease dated as of December 31, 2010 (“Amendment 2”) whereunder the parties extended the term of the Lease and added approximately 3,835 rentable square feet of space to the Lease (the “Cure Space”); and

 

WHEREAS, Landlord and Tenant have agreed to increase the area of the Premises, on the terms and conditions set forth below.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows:

 

1.                                      Capitalized terms used but not defined herein shall have the meaning ascribed to each in the Lease.

 

2.                                      Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, additional space in the Building consisting of approximately 803 rentable square feet of space adjacent to the Original Premises which is formerly part of the premises leased to Winstanley Property Management

 

1

 

(the “WPM Space”), substantially as shown on the floor plan attached hereto as Schedule A-l, commencing on the Amendment 3 Effective Date and continuing through the last day of the Term.

 

3.                                      Landlord also hereby leases to Tenant, and Tenant hereby leases from Landlord, additional space in the Building consisting of approximately 356 rentable square feet of space (the “5G Space”), substantially as shown on the Floor Plan attached hereto as Schedule A-2, beginning on the Amendment 3 Effective Date and continuing through the last day of the Term.

 

4.                                      From and after the Amendment 3 Effective Date, the definition of Premises as used in the Lease shall be deemed to include the WPM Space and the 5G Space (which are hereinafter collectively referred to as the “Expansion Space”) and shall consist of approximately 13,410 rentable square feet in the aggregate. The Expansion Space is leased to Tenant “AS-IS”, provided, however, that Landlord represents and warrants that as of the Amendment 3 Effective Date, the existing electrical, plumbing, HVAC and security systems serving the Building and the Expansion Space, are in good working order and condition, and the roof and windows of the Building are free of leaks.

 

5.                                      Promptly following the Amendment 3 Effective Date, Tenant shall commence performing alterations to the Expansion Space substantially as set forth in the plans (the “Plans”) prepared by Robert Young Architects dated May 14, 2011 (the “Expansion Space Alterations”) and Tenant shall separate the HVAC system, electrical system, telephone/data cable and other utilities serving the WPM Space from the remaining part of the contiguous premises leased by Winstanley Property Management. Tenant shall connect such separated utilities serving the WPM Space and the utilities of the 5G Space to the utilities and meters serving the Original Premises. Landlord shall provide Tenant with a Tenant Allowance amount for the WPM Space of (a) $20.90 per rentable square foot, for a total of $16,782.70, if Tenant shall perform Alterations such that the WPM Space is Laboratory Space, and (b) $14.47 per rentable square foot, for a total of $11,619.41, if Tenant shall perform Alterations such that the WPM Space is Office Space. There shall be no Tenant Allowance for the 5G Space.

 

6.                                      Tenant shall contribute an amount equal to fifty percent (50%) of the actual cost to Landlord to reconfigure the remaining premises leased by Winstanley Property Management contiguous to the WPM Space, up to a maximum amount of $10,000.00 (the “Reimbursement”). Tenant shall reimburse Landlord for its portion of such costs within 30 days of Tenant’s receipt from Landlord of satisfactory evidence of the costs actually incurred by Landlord in reconfiguring the aforementioned space. All invoices for which Landlord seeks 50% reimbursement must be at competitive, market rates for the New Haven area.

 

7.                                      Landlord has reviewed and approved of the Plans and agrees that, notwithstanding anything in the Lease to the contrary, Landlord is waiving any right it might otherwise have to be reimbursed for any third party examinations of said Plans, or to receive any oversight, inspection or any other monies related to the Expansion Space Alterations other than the Reimbursement set forth in Section 6. Furthermore, Landlord represents that the Expansion Space Alterations will not be considered a “Significant Laboratory Expansion” pursuant to Section 10 of the Lease and Landlord will not increase the Base Rent per rentable square foot as a result of the performance of the Expansion Space Alterations.

 

2

 

8.                                      Tenant shall commence paying Base Rent and Additional Rent for the Expansion Space on the date (the “Expansion Space Rent Commencement Date”) which is the earliest to occur of (i) the date which is three (3) months from the Amendment 3 Effective Date, (ii) the date when the building department or other appropriate governmental authority having jurisdiction issues either a Certificate of Occupancy, a Temporary Certificate of Occupancy or other communication or approval permitting legal occupancy of the Expansion Space, and (iii) the date when Tenant occupies all or any portion of the Expansion Space for its business use. From and after the Expansion Space Rent Commencement Date, Section 1(f) of the Lease is hereby amended to provide that Base Rent shall be due and payable to the Landlord at the time and in the manner set forth in the Lease, as described on Schedule B attached hereto and made a part hereof.  Notwithstanding anything to the contrary in Section 35(a) of the Lease as amended by Amendment 2, the Base Rent for the Renewal Options (as defined in Amendment 2) shall be as set forth in Schedule B.

 

9.                                      Commencing on the Expansion Space Rent Commencement Date and ending on December 31, 2011, Tenant’s Pro Rata Share as set forth in Section l(j) of the Lease shall be equal to 2.42%, From and after January 1, 2012 until the end of the Term, Tenant’s Pro Rata Share as set forth in Section 1(j) of the Lease shall be equal to 2.58%. The foregoing provision is meant to reflect that the pro-rata share of Taxes and Expenses paid by Cure under the Cure Sublease (as such terms are defined in Amendment 2) is 0.58% notwithstanding that the correct percentage is 0.74%, and Tenant is therefore only obligated to pay Tenant’s Pro Rata Share for the Cure Space at the same rate as paid by Cure, until the scheduled termination date of the Cure Sublease, after which Tenant shall pay the correct percentage for the Cure Space.

 

10.                               Subject to the rights of existing tenant(s) whose lease(s) pre-date this Amendment, during the Term of this Lease, at such time as Landlord intends to lease all or any of the remaining 3,724 rentable square feet of space leased by Winstanley Property Management that is contiguous to the WPM Space (such space the “Right of First Offer Space”), and provided Tenant is not in default under the Lease beyond the expiration of applicable notice and cure periods, Landlord shall first notify Tenant (such notice, “Landlord’s Notice”) of such available space (the “Right of First Offer”).The Base Rent for the Right of First Offer Space shall be at the same Base Rent as Tenant pays for the Original Premises, and shall be delivered “as-is,” provided that Landlord shall provide Tenant with a Tenant Allowance amount for the Right of First Offer Space of (a) $20.90 per rentable square foot if Tenant shall perform Alterations such that the Right of First Offer Space is Laboratory Space, and (b) $14,47 per rentable square foot if Tenant shall perform Alterations such that the Right of First Offer Space is office space. Tenant may, within fifteen (15) days of the receipt of Landlord’s Notice, decline or accept such Right of First Offer, in writing, and within thirty (30) days thereafter enter into an amendment to the Lease incorporating the Right of First Offer Space into the Lease. Should Tenant fail to accept the Right of First Offer in writing within fifteen (15) days of receipt of Landlord’s Notice, then Landlord shall be free to lease such Right of First Offer Space. If Tenant accepts the Right of First Offer, Landlord shall tender the Right of First Offer Space to Tenant on the date set forth in the Right of First Offer, or such other date agreed to by and between Landlord and Tenant. Notwithstanding anything herein to the contrary, if at the time Tenant accepts the Right of First Offer, there remains less than two (2) years in the Term, then Tenant shall, at the time of acceptance of the Right of First Offer, also exercise any available Renewal Term (or otherwise the

 

3

 

acceptance shall be void and of no effect), and if no Renewal Terms are remaining, then the Term of the Lease shall automatically be extended such that there is at least two (2) years remaining in the Term at the time Landlord tenders the Right of First Offer Space to Tenant.

 

11.                               The amount of the Security Deposit shall be increased by the amount of $4,978.05 (for a total Security Deposit of $56,452.67) which increase shall be paid by Tenant to Landlord within fifteen (15) business days of the date of this Amendment.

 

12.                               Landlord and Tenant represent and warrant to the other that each has full authority to enter into this Amendment and further agree to hold harmless, defend, and indemnify the other from any loss, costs (including reasonable attorneys’ fees), damages, or claim arising from any lack of such authority.

 

13.                               As modified herein, the Lease is hereby ratified and confirmed and shall remain in full force and effect.

 

14.                               Landlord and Tenant hereby represent and warrant to the other that each has not dealt with any broker, finder or like agent in connection with this Amendment and each does hereby agree to indemnify and hold the other, its agents and their officers, directors, shareholders, members, partners and employees, harmless of and from any claim of, or liability to, any broker, finder or like agent claiming a commission or fee by reason of having dealt with either party in connection with the negotiation, execution or delivery of this Amendment, and all expenses related thereto, including, without limitation, reasonable attorneys’ fees and disbursements.

 

15.                               This Amendment constitutes the entire agreement by and between the parties hereto and supersedes any and all previous agreements, written or oral, between the parties. No modification or amendment of this Amendment shall be effective unless the same shall be in writing and signed by the parties hereto. The provisions of this Amendment shall inure to the benefit of, and be binding upon, the parties hereto and their respective legal representatives, successors and assigns.

 

16.                               This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of such counterparts shall constitute one agreement. This Amendment shall become effective when duly executed and delivered by all parties hereto.

 

(Signatures on following page)

 

4

 

IN WITNESS WHEREOF, Landlord and Tenant have signed this Amendment No. 3 to Lease as of the day and year first above written.

 

	
 
    	
LANDLORD:
    
	
 
    	
 
    
	
 
    	
WE GEORGE STREET, L.L.C.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
WE George Street Holdings LLC
    
	
 
    	
 
    	
Its Manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: 
    	
WE George Street Manager Corp.
    
	
 
    	
 
    	
 
    	
Its Sole Member
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
/s/ Carter J. Winstanley
    
	
 
    	
 
    	
 
    	
 
    	
Name: Carter J. Winstanley
    
	
 
    	
 
    	
 
    	
 
    	
Title:  Its President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
TENANT:
    
	
 
    	
 
    
	
 
    	
KOLLTAN PHARMACEUTICALS INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael Schmertzler
    
	
 
    	
 
    	
Name:
    	
Michael Schmertzler
    
	
 
    	
 
    	
Title:
    	
CEO
    
						

 

[Signature page to Amendment No. 3 to Lease by and between 
 WE George Street, L.L.C. and Kolltan Pharmaceuticals Inc.]

 

5

 

SCHEDULE A-l

 

WPM SPACE FLOOR PLAN

 

 

 

 

 

 

SCHEDULE B

 

RENT TABLE

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Base Rent
    	
 
    	
Annual Base
    	
 
    	
Monthly Base
    	
 
    
	
Period
    	
 
    	
Space
    	
 
    	
RSF
    	
 
    	
Per RSF
    	
 
    	
Rent
    	
 
    	
Rent
    	
 
    
	
06/09/09   — 06/30/10
    	
 
    	
Original Premises
    	
 
    	
7,775
    	
 
    	
$
    	
24.88
    	
 
    	
$
    	
193,442.00
    	
 
    	
$
    	
16,120.17
    	
 
    
	
(Lease   Year 1)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
07/01/10   — 09/09/10
    	
 
    	
Original Premises
    	
 
    	
7,775
    	
 
    	
$
    	
25.21
    	
 
    	
$
    	
196,007.75
    	
 
    	
$
    	
16,333.98
    	
 
    
	
(start   of Lease Year 2)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
09/10/10   (PWC Space Effective Date) — 12/30/10
    	
 
    	
Original Premises
    	
 
    	
7,775
    	
 
    	
$
    	
25.21
    	
 
    	
$
    	
196,007.75
    	
 
    	
$
    	
16,333.98
    	
 
    
	
(middle   of Lease Year 2)
    	
 
    	
PWC Space
    	
 
    	
641
    	
 
    	
$
    	
25.21
    	
 
    	
$
    	
+16,159.61
    	
 
    	
$
    	
+1,346.63
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
212,167.36
    	
 
    	
$
    	
17,680.61
    	
 
    
	
12/31/10   (Cure Space Effective Date) — Day prior to
    	
 
    	
Original Premises
    	
 
    	
7,775
    	
 
    	
$
    	
25.21
    	
 
    	
$
    	
196,007.75
    	
 
    	
$
    	
16,333.98
    	
 
    
	
Expansion   Space Rent Commencement Date
    	
 
    	
PWC Space
    	
 
    	
641
    	
 
    	
$
    	
25.21
    	
 
    	
$
    	
16,159.61
    	
 
    	
$
    	
1,346.63
    	
 
    
	
(end   of Lease Year 2 and start of Lease Year 3)
    	
 
    	
Cure Space
    	
 
    	
3,835
    	
 
    	
$
    	
11.50
    	
 
    	
$
    	
+44,102.50
    	
 
    	
$
    	
+3,675.21
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
256,269.86
    	
 
    	
$
    	
21,355.82
    	
 
    
	
Expansion   Space Rent Commencement Date —
    	
 
    	
Original Premises
    	
 
    	
7,775
    	
 
    	
$
    	
25.54
    	
 
    	
$
    	
198,573.50
    	
 
    	
$
    	
16,547.79
    	
 
    
	
12/31/11
    	
 
    	
PWC Space
    	
 
    	
641
    	
 
    	
$
    	
25.54
    	
 
    	
$
    	
16,371.14
    	
 
    	
$
    	
1,364.26
    	
 
    
	
(middle   of Lease Year 3)
    	
 
    	
Cure Space
    	
 
    	
3,835
    	
 
    	
$
    	
11.50
    	
 
    	
$
    	
44,102.50
    	
 
    	
$
    	
3,675.21
    	
 
    
	
 
    	
 
    	
WPM Space
    	
 
    	
803
    	
 
    	
$
    	
25.54
    	
 
    	
$
    	
20,508.62
    	
 
    	
$
    	
1,709.05
    	
 
    
	
 
    	
 
    	
5G Space
    	
 
    	
356
    	
 
    	
$
    	
8.12
    	
 
    	
$
    	
+2,890.72
    	
 
    	
$
    	
+240.89
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
282,446.48
    	
 
    	
$
    	
23,537.20
    	
 
    
	
01/01/12   — 06/30/13
    	
 
    	
All (except 5G)
    	
 
    	
13,054
    	
 
    	
$
    	
25.54
    	
 
    	
$
    	
333,399.16
    	
 
    	
$
    	
27,783.26
    	
 
    
	
(end   of Lease Year 3 and Lease Year 4)
    	
 
    	
5G Space
    	
 
    	
356
    	
 
    	
$
    	
8.24
    	
 
    	
$
    	
+2,933.44
    	
 
    	
$
    	
+244.45
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
336,332.60
    	
 
    	
$
    	
28,027.71
    	
 
    

 

 

Renewal Term 1:

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Base Rent
    	
 
    	
Annual Base
    	
 
    	
Monthly Base
    	
 
    
	
Period
    	
 
    	
Space
    	
 
    	
RSF
    	
 
    	
Per RSF
    	
 
    	
Rent
    	
 
    	
Rent
    	
 
    
	
07/01/13 — 06/30/14
    	
 
    	
All (except 5G)
    	
 
    	
13,054
    	
 
    	
$
    	
25.88
    	
 
    	
$
    	
337,837.52
    	
 
    	
$
    	
28,153.13
    	
 
    
	
(Lease Year 5)
    	
 
    	
5G Space
    	
 
    	
356
    	
 
    	
$
    	
8.37
    	
 
    	
$
    	
+2,979.72
    	
 
    	
$
    	
+248.31
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
340,817.24
    	
 
    	
$
    	
28,401.44
    	
 
    
	
07/01/14 — 06/30/16
    	
 
    	
All (except 5G)
    	
 
    	
13,054
    	
 
    	
$
    	
26.22
    	
 
    	
$
    	
342,275.88
    	
 
    	
$
    	
28,522.99
    	
 
    
	
(Lease Years 6 and 7)
    	
 
    	
5G Space
    	
 
    	
356
    	
 
    	
$
    	
8.49
    	
 
    	
$
    	
+3,022.44
    	
 
    	
$
    	
+251.87
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
345,298.32
    	
 
    	
$
    	
28,774.86
    	
 
    

 

Renewal Term 2:

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Base Rent
    	
 
    	
Annual Base
    	
 
    	
Monthly Base
    	
 
    
	
Period
    	
 
    	
Space
    	
 
    	
RSF
    	
 
    	
Per RSF
    	
 
    	
Rent
    	
 
    	
Rent
    	
 
    
	
07/01/16 — 06/30/17
    	
 
    	
All (except 5G)
    	
 
    	
13,054
    	
 
    	
$
    	
26.58
    	
 
    	
$
    	
346,975.32
    	
 
    	
$
    	
28,914.61
    	
 
    
	
(Lease Year 8)
    	
 
    	
5G Space
    	
 
    	
356
    	
 
    	
$
    	
8.62
    	
 
    	
$
    	
+3,068.72
    	
 
    	
$
    	
+255.73
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
350,044.04
    	
 
    	
$
    	
29,170.34
    	
 
    
	
07/01/17 — 06/30/18
    	
 
    	
All (except 5G)
    	
 
    	
13,054
    	
 
    	
$
    	
26.93
    	
 
    	
$
    	
351,544.22
    	
 
    	
$
    	
29,295.35
    	
 
    
	
(Lease Year 9)
    	
 
    	
5G Space
    	
 
    	
356
    	
 
    	
$
    	
8.75
    	
 
    	
$
    	
+3,115.00
    	
 
    	
$
    	
+259.58
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
354,659.22
    	
 
    	
$
    	
29,554.93
    	
 
    

 

 

AMENDMENT NO. 4 TO LEASE

 

THIS AMENDMENT NO. 4 TO LEASE (this “Amendment”) is made and entered into as of the 24 day of September, 2012 between Landlord and Tenant named below:

 

	
LANDLORD: 
    	
WE GEORGE STREET, L.L.C.
    
	
 
    	
c/o Winstanley Enterprises   LLC
    
	
 
    	
150 Baker Avenue   Extension, Suite 303
    
	
 
    	
Concord, MA 01742
    
	
 
    	
 
    
	
TENANT: 
    	
KOLLTAN PHARMACEUTICALS INC.
    
	
 
    	
300 George Street
    
	
 
    	
New Haven, Connecticut   06510
    
	
 
    	
 
    
	
BUILDING: 
    	
300 George Street
    
	
 
    	
New Haven, Connecticut 06510
    

 

WHEREAS, Landlord and Tenant executed a Lease Agreement dated as of January 5, 2009 (as previously amended, and as further amended herein, the “Lease”), as amended by that certain side letter dated April 1, 2009, as affected by that certain Rent Commencement Letter dated July 8, 2009, as further amended by that certain side letter dated January 28, 2010, by which Tenant leased approximately 7,775 rentable square feet of space in the Building (the “Original Premises”); and

 

WHEREAS, Landlord and Tenant executed an Amendment No. 1 to Lease dated as of September 10, 2010 whereunder the parties added approximately 641 rentable square feet of space to the Lease (the “PWC Space”); and

 

WHEREAS, Landlord and Tenant executed an Amendment No. 2 to Lease dated as of December 31, 2010 (“Amendment 2”) whereunder the parties extended the term of the Lease, added approximately 3,835 rentable square feet of space to the Lease (the “Cure Space”), and provided for two renewal options of three years and two years, respectively; and

 

WHEREAS, Landlord and Tenant executed an Amendment No. 3 to Lease dated as of July 7, 2011, as affected by a Rent Commencement Letter dated September 27, 2011 (together, “Amendment 3”) wherein the parties (i) added to the Lease approximately 803 rentable square feet of space known as the “WPM Space” and approximately 356 rentable square feet known as the “5G Space,” and which were collectively referred to in Amendment 3 as the “Expansion Space,” for a total premises of 13,410 rentable square feet, and (ii) agreed to a right of first offer on the remaining 3,764 rentable square feet occupied by Winstanley Property Management; and

 

WHEREAS, Landlord and Tenant have agreed to revised terms for the lease of said Winstanley Property Management space, on the terms and conditions set forth below.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows:

 

1

 

1.                                      Capitalized terms used but not defined herein shall have the meaning ascribed to each in the Lease.

 

2.                                      Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, additional space in the Building consisting of approximately 3,764 rentable square feet of space that is currently leased to Winstanley Property Management, together with an additional 211 rentable square feet of space that was previously common area (known as spaces 5N and 5O) but that will now be included in the Premises (all of which space is collectively referred to herein as the “Second Expansion Space”), substantially as shown on the floor plans attached hereto as Schedule A-l and Schedule A-2, commencing on the Amendment 4 Effective Date (as herein defined) and continuing through the last day of the Term, as extended below. As used herein, the “Amendment 4 Effective Date” shall be the date upon which Landlord has delivered vacant possession of the Second Expansion Space to Tenant, which is estimated to occur approximately ninety (90) days from the date of this Amendment. Landlord agrees to use commercially reasonable efforts to deliver the Second Expansion Space to Tenant sooner than said estimate.

 

3.                                      From and after the Amendment 4 Effective Date, the definition of Premises as used in the Lease shall be deemed to include the Second Expansion Space, and shall consist of approximately 17,385 rentable square feet in the aggregate. The Second Expansion Space is leased to Tenant “AS-IS”, provided, however, that Landlord represents and warrants that as of the Amendment 4 Effective Date, the existing electrical, plumbing, HVAC and security systems serving the Building and the Second Expansion Space are in good working order and condition, and the roof and windows of the Building are free of leaks.

 

4.                                      Landlord shall provide Tenant with a Tenant Allowance amount for the Second Expansion Space and the Cure Space of $20.90 per rentable square foot, for a total of $163,229.00 (based on a total rentable square footage of 7,810), which shall be available as of the Amendment 4 Effective Date. All Initial Alterations of the Second Expansion Space and the Cure Space, and the reimbursement of Tenant for the costs thereof by Landlord from said Tenant Allowance, shall be conducted in accordance with the procedures set forth in the Work Letter attached to the Lease as Exhibit C. Tenant shall commence Initial Alterations of the Second Expansion Space and the Cure Space promptly following the Amendment 4 Effective Date and diligently pursue them to completion. Landlord agrees to give notice to Tenant of whether the Initial Alterations constitute a Significant Laboratory Expansion within ten (10) business days of receipt of the utility and HVAC specifications necessary to make such determination, and shall in good faith work with Tenant to make such revisions to the Initial Alterations and specifications as are necessary to cause the Initial Alterations to not constitute a Signification Laboratory Expansion, if requested by Tenant.

 

5.                                      Tenant shall commence paying Base Rent and Additional Rent for the Second Expansion Space on the date (the “Second Expansion Space Rent Commencement Date”) which is the earliest to occur of (i) the date which is five (5) months from the Amendment 4 Effective Date, (ii) the date when the building department or other appropriate governmental authority having jurisdiction issues either a Certificate of Occupancy a Temporary Certificate of Occupancy or other communication or approval permitting legal occupancy of the Expansion Space, and (iii) the date when Tenant occupies all or any portion of the Second Expansion Space for its business use. The

 

2

 

parties shall enter into a rent commencement letter or other agreement confirming the Amendment 4 Effective Date and the Second Expansion Space Rent Commencement Date once known.

 

6.                                      Commencing on the Second Expansion Space Rent Commencement Date, Tenant’s Pro Rata Share as set forth in Section l(j) of the Lease shall be equal to 3.35%.

 

7.                                      The Term of the Lease is hereby extended for a period of time (said period, the “Extension Term”) such that there shall be three years remaining in the Term following the completion of the Initial Alterations on the Second Expansion Space and the Cure Space. Accordingly, the Termination Date shall be the last day of the month in which the third (3rd) anniversary of the Second Expansion Space Rent Commencement Date occurs, provided that notwithstanding the foregoing, if the Second Expansion Space Rent Commencement Date is the first day of a month, the Termination Date shall be the day immediately prior to the third (3rd) anniversary of the Second Expansion Space Rent Commencement Date. The first year of the Extension Term shall include the partial month at the beginning of said term, if any, and each subsequent year of the Extension Term shall consist of the twelve (12) month period immediately following the expiration of the preceding year.

 

8.                                      From and after the Second Expansion Space Rent Commencement Date, Section 1(f) of the Lease (as previously amended) is hereby further amended to provide that Base Rent shall be due and payable to the Landlord at the time and in the manner set forth in the Lease, as described on Schedule B attached hereto and made a part hereof.

 

9.                                      Subject to the rights of existing tenant(s) whose lease(s) pre-date this Amendment, during the Term of this Lease, at such time as Landlord intends to lease all or any of the adjacent 3,013 rentable square feet of space known as area 5M and leased by MiraDX, Inc., substantially as shown on the floor plan attached hereto as Schedule C (such space the “Right of First Offer Space”), and provided Tenant is not in default under the Lease beyond the expiration of applicable notice and cure periods, Landlord shall first notify Tenant (such notice, “Landlord’s Notice”) of such available space (the “Right of First Offer”). The Base Rent for the Right of First Offer Space shall be at the same Base Rent as Tenant pays for the Original Premises, and shall be delivered “as-is,” provided that Landlord shall provide Tenant with a Tenant Allowance amount for the Right of First Offer Space of (a) $20.90 per rentable square foot if Tenant shall perform Alterations such that the Right of First Offer Space is Laboratory Space, and (b) $14.47 per rentable square foot if Tenant shall perform Alterations such that the Right of First Offer Space is Office Space. Tenant may, within thirty (30) days of the receipt of the notice, decline or accept such offer, in writing, and within thirty (30) days thereafter enter into an amendment to the Lease incorporating the Right of First Offer Space into the Lease. Should Tenant fail to accept the Offer in writing within thirty (30) days of receipt of Landlord’s Notice, then Landlord shall be free to lease such available space. If Tenant accepts the Offer, Landlord shall tender the Right of First Offer Space to Tenant on the date set forth in the Offer, or such other date agreed to by and between Landlord and Tenant. Notwithstanding anything herein to the contrary, if at the time Tenant accepts the Right of First Offer for the entire Right of First Offer Space, there remains less than two (2) years in the Term, then Tenant shall, at the time of acceptance of the Right of First Offer (provided the Landlord’s Notice describes the entire Right of First Offer Space, and not a portion of said space), also exercise any available Renewal Term (or otherwise the acceptance shall be void and of no effect), and if no Renewal Terms are

 

3

 

remaining, then the Term of the Lease shall automatically be extended such that there is at least two (2) years remaining in the Term at the time Landlord tenders the entire Right of First Offer Space to Tenant.

 

10.                               Landlord and Tenant represent and warrant to the other that each has full authority to enter into this Amendment and further agree to hold harmless, defend, and indemnify the other from any loss, costs (including reasonable attorneys’ fees), damages, or claim arising from any lack of such authority.

 

11.                               As modified herein, the Lease is hereby ratified and confirmed and shall remain in full force and effect.

 

12.                               Landlord and Tenant hereby represent and warrant to the other that each has not dealt with any broker, finder or like agent in connection with this Amendment and each does hereby agree to indemnify and hold the other, its agents and their officers, directors, shareholders, members, partners and employees, harmless of and from any claim of, or liability to, any broker, finder or like agent claiming a commission or fee by reason of having dealt with either party in connection with the negotiation, execution or delivery of this Amendment, and all expenses related thereto, including, without limitation, reasonable attorneys’ fees and disbursements.

 

13.                               This Amendment constitutes the entire agreement by and between the parties hereto and supersedes any and all previous agreements, written or oral, between the parties. No modification or amendment of this Amendment shall be effective unless the same shall be in writing and signed by the parties hereto. The provisions of this Amendment shall inure to the benefit of, and be binding upon, the parties hereto and their respective legal representatives, successors and assigns.

 

14.                               This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of such counterparts shall constitute one agreement. This Amendment shall become effective when duly executed and delivered by all parties hereto.

 

(Signatures on following page)

 

4

 

IN WITNESS WHEREOF, Landlord and Tenant have signed this Amendment No. 4 to Lease as of the day and year first above written.

 

	
 
    	
LANDLORD:
    
	
 
    	
 
    
	
 
    	
WE GEORGE STREET, L.L.C.
    
	
 
    	
 
    
	
 
    	
By: 
    	
WE George Street Holdings LLC
    
	
 
    	
 
    	
Its Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: 
    	
WE George Street Manager Corp.
    
	
 
    	
 
    	
 
    	
Its Sole Member
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By: 
    	
/s/ Carter J. Winstanley
    
	
 
    	
 
    	
 
    	
 
    	
Name: Carter J. Winstanley
    
	
 
    	
 
    	
 
    	
 
    	
Title: Its President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TENANT:
    
	
 
    	
 
    
	
 
    	
KOLLTAN PHARMACEUTICALS INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Dr. Gerald McMahon
    
	
 
    	
 
    	
Name: Dr. Gerald McMahon
    
	
 
    	
 
    	
Title: President & CEO
    
						

 

[Signature page to Amendment No. 4 to Lease by and between

WE George Street, L.L.C. and Kolltan Pharmaceuticals Inc.]

 

5

 

SCHEDULE A-l

 

SECOND EXPANSION SPACE FLOOR PLAN

(WPM Space)

 

 

 

SCHEDULE A-2

 

SECOND EXPANSION SPACE FLOOR PLAN

(Additional Space)

 

 

 

SCHEDULE B

 

RENT TABLE

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Base Rent
    	
 
    	
Annual Base
    	
 
    	
Monthly Base
    	
 
    
	
Period
    	
 
    	
Space
    	
 
    	
RSF
    	
 
    	
Per RSF
    	
 
    	
Rent
    	
 
    	
Rent
    	
 
    
	
06/09/09 – 06/30/10
    	
 
    	
Original Premises
    	
 
    	
7,775
    	
 
    	
$
    	
24.88
    	
 
    	
$
    	
193,442.00
    	
 
    	
$
    	
16,120.17
    	
 
    
	
07/01/10 – 09/09/10
    	
 
    	
Original Premises
    	
 
    	
7,775
    	
 
    	
$
    	
25.21
    	
 
    	
$
    	
196,007.75
    	
 
    	
$
    	
16,333.98
    	
 
    
	
09/10/10 (PWC Space Effective Date) – 12/30/10
    	
 
    	
Original Premises
    	
 
    	
7,775
    	
 
    	
$
    	
25.21
    	
 
    	
$
    	
196,007.75
    	
 
    	
$
    	
16,333.98
    	
 
    
	
 
    	
 
    	
PWC Space
    	
 
    	
641
    	
 
    	
$
    	
25.21
    	
 
    	
$
    	
+16,159.61
    	
 
    	
$
    	
+1,346.63
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
212,167.36
    	
 
    	
$
    	
17,680.61
    	
 
    
	
12/31/10 (Cure Space Effective Date) – 8/31/2011
    	
 
    	
Original Premises
    	
 
    	
7,775
    	
 
    	
$
    	
25.21
    	
 
    	
$
    	
196,007.75
    	
 
    	
$
    	
16,333.98
    	
 
    
	
 
    	
 
    	
PWC Space
    	
 
    	
641
    	
 
    	
$
    	
25.21
    	
 
    	
$
    	
16,159.61
    	
 
    	
$
    	
1,346.63
    	
 
    
	
 
    	
 
    	
Cure Space
    	
 
    	
3,835
    	
 
    	
$
    	
11.50
    	
 
    	
$
    	
+44,102.50
    	
 
    	
$
    	
+3,675.21
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
256,269.86
    	
 
    	
$
    	
21,355.82
    	
 
    
	
09/01/2011 – 12/31/11
    	
 
    	
Original Premises
    	
 
    	
7,775
    	
 
    	
$
    	
25.54
    	
 
    	
$
    	
198,573.50
    	
 
    	
$
    	
16,547.79
    	
 
    
	
 
    	
 
    	
PWC Space
    	
 
    	
641
    	
 
    	
$
    	
25.54
    	
 
    	
$
    	
16,371.14
    	
 
    	
$
    	
1,364.26
    	
 
    
	
 
    	
 
    	
Cure Space
    	
 
    	
3,835
    	
 
    	
$
    	
11.50
    	
 
    	
$
    	
44,102.50
    	
 
    	
$
    	
3,675.21
    	
 
    
	
 
    	
 
    	
WPM Space
    	
 
    	
803
    	
 
    	
$
    	
25.54
    	
 
    	
$
    	
20,508.62
    	
 
    	
$
    	
1,709.05
    	
 
    
	
 
    	
 
    	
5G Space
    	
 
    	
356
    	
 
    	
$
    	
8.12
    	
 
    	
$
    	
+2,890.72
    	
 
    	
$
    	
+240.89
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
282,446.48
    	
 
    	
$
    	
23,537.20
    	
 
    
	
01/01/12 — Day prior to Second Expansion Space
    	
 
    	
All (except 5G)
    	
 
    	
13,054
    	
 
    	
$
    	
25.54
    	
 
    	
$
    	
333,399.16
    	
 
    	
$
    	
27,783.26
    	
 
    
	
Rent Commencement Date
    	
 
    	
5G Space
    	
 
    	
356
    	
 
    	
$
    	
8.24
    	
 
    	
$
    	
+2,933.44
    	
 
    	
$
    	
+244.45
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
336,332.60
    	
 
    	
$
    	
28,027.71
    	
 
    
	
Second Expansion Space Rent Commencement
    	
 
    	
All (except 5G)
    	
 
    	
17,029
    	
 
    	
$
    	
25.54
    	
 
    	
$
    	
434,920.66
    	
 
    	
$
    	
36,243.39
    	
 
    
	
Date — End of Extension Term
    	
 
    	
5G Space
    	
 
    	
356
    	
 
    	
$
    	
8.24
    	
 
    	
$
    	
+2,933.44
    	
 
    	
$
    	
+244.45
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
437,854.10
    	
 
    	
$
    	
36,487.84
    	
 
    

 

 

Renewal Term 1 (exercised herein):

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Base Rent
    	
 
    	
Annual Base
    	
 
    	
Monthly Base
    	
 
    
	
Period
    	
 
    	
Space
    	
 
    	
RSF
    	
 
    	
Per RSF
    	
 
    	
Rent
    	
 
    	
Rent
    	
 
    
	
Renewal Term 1, year 1
    	
 
    	
All (except 5G)
    	
 
    	
17,029
    	
 
    	
$
    	
25.88
    	
 
    	
$
    	
440,710.52
    	
 
    	
$
    	
36,725.88
    	
 
    
	
 
    	
 
    	
5G Space
    	
 
    	
356
    	
 
    	
$
    	
8.37
    	
 
    	
$
    	
+2,979.72
    	
 
    	
$
    	
+248.31
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
443,690.24
    	
 
    	
$
    	
36,974.19
    	
 
    
	
Renewal Term 1, years 2 and3
    	
 
    	
All (except 5G)
    	
 
    	
17,029
    	
 
    	
$
    	
26.22
    	
 
    	
$
    	
446,500.38
    	
 
    	
$
    	
37,208.37
    	
 
    
	
 
    	
 
    	
5G Space
    	
 
    	
356
    	
 
    	
$
    	
8.49
    	
 
    	
$
    	
+3,022.44
    	
 
    	
$
    	
+251.87
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
449,522.82
    	
 
    	
$
    	
37,460.24
    	
 
    

 

Renewal Term 2:

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Base Rent
    	
 
    	
Annual Base
    	
 
    	
Monthly Base
    	
 
    
	
Period
    	
 
    	
Space
    	
 
    	
RSF
    	
 
    	
Per RSF
    	
 
    	
Rent
    	
 
    	
Rent
    	
 
    
	
Renewal Term 2, year 1
    	
 
    	
All (except 5G)
    	
 
    	
17,029
    	
 
    	
$
    	
26.58
    	
 
    	
$
    	
452,630.82
    	
 
    	
$
    	
37,719.23
    	
 
    
	
 
    	
 
    	
5G Space
    	
 
    	
356
    	
 
    	
$
    	
8.62
    	
 
    	
$
    	
+3,068.72
    	
 
    	
$
    	
+255.73
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
455,699.54
    	
 
    	
$
    	
37,974.96
    	
 
    
	
Renewal Term 2, year 2
    	
 
    	
All (except 5G)
    	
 
    	
17,029
    	
 
    	
$
    	
26.93
    	
 
    	
$
    	
458,590.97
    	
 
    	
$
    	
38,215.92
    	
 
    
	
 
    	
 
    	
5G Space
    	
 
    	
356
    	
 
    	
$
    	
8.75
    	
 
    	
$
    	
+3,115.00
    	
 
    	
$
    	
+259.58
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
461,705.97
    	
 
    	
$
    	
38,475.50
    	
 
    

 

 

SCHEDULE C

 

RIGHT OF FIRST OFFER SPACE

 

 

 

AMENDMENT NO. 5 TO LEASE

 

THIS AMENDMENT NO. 5 TO LEASE (this “Amendment”) is made and entered into as of the 16th day of November, 2012 (the “Amendment 5 Effective Date”) between Landlord and Tenant named below:

 

	
LANDLORD:
    	
WE   GEORGE STREET, L.L.C.
    
	
 
    	
c/o   Winstanley Enterprises LLC
    
	
 
    	
150   Baker Avenue Extension, Suite 303
    
	
 
    	
Concord,   MA 01742
    
	
 
    	
 
    
	
TENANT:
    	
KOLLTAN   PHARMACEUTICALS INC.
    
	
 
    	
300   George Street
    
	
 
    	
New   Haven, Connecticut 06510
    
	
 
    	
 
    
	
BUILDING:
    	
300   George Street
    
	
 
    	
New   Haven, Connecticut 06510
    

 

WHEREAS, Landlord and Tenant executed a Lease Agreement dated as of January 5, 2009 (as previously amended, and as further amended herein, the “Lease”), as amended by that certain side letter dated April 1, 2009, as affected by that certain Rent Commencement Letter dated July 8, 2009, as further amended by that certain side letter dated January 28, 2010, by which Tenant leased approximately 7,775 rentable square feet of space in the Building (the “Original Premises”); and

 

WHEREAS, Landlord and Tenant executed an Amendment No. 1 to Lease dated as of September 10, 2010 whereunder the parties added approximately 641 rentable square feet of space to the Lease (the “PWC Space”); and

 

WHEREAS, Landlord and Tenant executed an Amendment No. 2 to Lease dated as of December 31, 2010 whereunder the parties extended the term of the Lease, added approximately 3,835 rentable square feet of space to the Lease (the “Cure Space”), and provided for two renewal options of three years and two years, respectively; and

 

WHEREAS, Landlord and Tenant executed an Amendment No. 3 to Lease dated as of July 7, 2011, as affected by a Rent Commencement Letter dated September 27, 2011 (together, “Amendment 3”) wherein the parties (i) added to the Lease approximately 803 rentable square feet of space known as the “WPM Space” and approximately 356 rentable square feet known as the “5G Space,” and which were collectively referred to in Amendment 3 as the “Expansion Space,” for a total premises of 13,410 rentable square feet, and (ii) agreed to a right of first offer on the remaining 3,764 rentable square feet occupied by Winstanley Property Management; and

 

WHEREAS, Landlord and Tenant executed an Amendment No. 4 to Lease dated as of September 24, 2012 (“Amendment 4”) wherein the parties added the remaining Winstanley Property Management space plus some additional former common area space to the Premises, extended the

 

1

 

Term of the Lease and added a right of first offer on adjacent space on the fifth floor, among other things; and

 

WHEREAS, Landlord and Tenant have agreed to add an additional space to the Premises, on the terms and conditions set forth below.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows:

 

1.                                      Capitalized terms used but not defined herein shall have the meaning ascribed to each in the Lease.

 

2.                                      Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, additional space in the Building consisting of approximately 356 rentable square feet of space (the “5I Space”), substantially as shown on the Floor Plan attached hereto as Schedule A, beginning on the Amendment 5 Effective Date and continuing through the last day of the Term.

 

3.                                      From and after the Amendment 5 Effective Date, the definition of Premises as used in the Lease shall be deemed to include the 5I Space, and shall consist of approximately 17,741 rentable square feet in the aggregate. The Second Expansion Space is leased to Tenant “AS-IS.”

 

4.                                      The 5I Space shall be used solely for storage, provided that notwithstanding the foregoing, Tenant may use the 51 Space for occasional operation of appliances such as a refrigerator or freezer or similar equipment.

 

5.                                      Commencing on the Amendment 5 Effective Date, Tenant’s Pro Rata Share as set forth in Section 1(j) of the Lease shall be equal to 2.65%, and commencing on the Second Expansion Space Rent Commencement Date, Tenant’s Pro Rata Share as set forth in Section l(j) of the Lease shall be equal to 3.42%.

 

6.                                      Tenant shall commence paying Base Rent and Additional Rent for the 5I Space as of the Amendment 5 Effective Date, and the Base Rent for the 5I Space shall be the same as Tenant pays for the 5G Space. From and after the Amendment 5 Effective Date, Section 1(f) of the Lease (as previously amended) is hereby further amended to provide that Base Rent shall be due and payable to the Landlord at the time and in the manner set forth in the Lease, as described on Schedule B attached hereto and made a part hereof.

 

7.                                      Tenant shall be responsible for providing electrical connections to the heat pump and, if used by Tenant, the exhaust fan that serve the 5I Space. Promptly following the Amendment 5 Effective Date, Tenant shall, at Tenant’s cost and expense, connect the electrical service for the 5I Space (including but not limited to the heat pump and exhaust fan, if used) to Tenant’s electrical panel such that Tenant’s electrical meter will include measurement of the electricity used and consumed at the 5I Space.

 

8.                                      Landlord and Tenant represent and warrant to the other that each has full authority to enter into this Amendment and further agree to hold harmless, defend, and indemnify the other from

 

2

 

any loss, costs (including reasonable attorneys’ fees), damages, or claim arising from any lack of such authority.

 

9.                                      As modified herein, the Lease is hereby ratified and confirmed and shall remain in full force and effect.

 

10.                               Landlord and Tenant hereby represent and warrant to the other that each has not dealt with any broker, finder or like agent in connection with this Amendment and each does hereby agree to indemnify and hold the other, its agents and their officers, directors, shareholders, members, partners and employees, harmless of and from any claim of, or liability to, any broker, finder or like agent claiming a commission or fee by reason of having dealt with either party in connection with the negotiation, execution or delivery of this Amendment, and all expenses related thereto, including, without limitation, reasonable attorneys’ fees and disbursements.

 

11.                               This Amendment constitutes the entire agreement by and between the parties hereto and supersedes any and all previous agreements, written or oral, between the parties. No modification or amendment of this Amendment shall be effective unless the same shall be in writing and signed by the parties hereto. The provisions of this Amendment shall inure to the benefit of, and be binding upon, the parties hereto and their respective legal representatives, successors and assigns.

 

12.                               This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of such counterparts shall constitute one agreement. This Amendment shall become effective when duly executed and delivered by all parties hereto.

 

(Signatures on following page)

 

3

 

IN WITNESS WHEREOF, Landlord and Tenant have signed this Amendment No. 5 to Lease as of the day and year first above written.

 

	
 
    	
LANDLORD:
    
	
 
    	
 
    
	
 
    	
WE GEORGE STREET, L.L.C.
    
	
 
    	
 
    
	
 
    	
By: 
    	
WE George Street Holdings LLC
    
	
 
    	
 
    	
Its Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: 
    	
WE George Street Manager Corp.
    
	
 
    	
 
    	
 
    	
Its Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
/s/ Carter J. Winstanley
    
	
 
    	
 
    	
 
    	
 
    	
Name:
    	
Carter J. Winstanley
    
	
 
    	
 
    	
 
    	
 
    	
Title:
    	
Its President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TENANT:
    
	
 
    	
 
    
	
 
    	
KOLLTAN PHARMACEUTICALS INC.
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Gerald McMahon
    
	
 
    	
 
    	
Name:
    	
Gerald McMahon
    
	
 
    	
 
    	
Title:
    	
CEO, President
    

 

[Signature page to Amendment No. 5 to Lease by and between

WE George Street, L.L.C. and Kolltan Pharmaceuticals Inc.]

 

4

 

SCHEDULE A

 

5I SPACE FLOOR PLAN

 

 

 

SCHEDULE B

 

RENT TABLE

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Base Rent
    	
 
    	
Annual Base
    	
 
    	
Monthly Base
    	
 
    
	
Period
    	
 
    	
Space
    	
 
    	
RSF
    	
 
    	
Per RSF
    	
 
    	
Rent
    	
 
    	
Rent
    	
 
    
	
06/09/09 — 06/30/10
    	
 
    	
Original Premises
    	
 
    	
7,775
    	
 
    	
$
    	
24.88
    	
 
    	
$
    	
193,442.00
    	
 
    	
$
    	
16,120.17
    	
 
    
	
07/01/10 — 09/09/10
    	
 
    	
Original Premises
    	
 
    	
7,775
    	
 
    	
$
    	
25.21
    	
 
    	
$
    	
196,007.75
    	
 
    	
$
    	
16,333.98
    	
 
    
	
09/10/10 (PWC Space Effective Date) — 12/30/10
    	
 
    	
Original Premises
    	
 
    	
7,775
    	
 
    	
$
    	
25.21
    	
 
    	
$
    	
196,007.75
    	
 
    	
$
    	
16,333.98
    	
 
    
	
 
    	
PWC Space
    	
 
    	
641
    	
 
    	
$
    	
25.21
    	
 
    	
$
    	
+16,159.61
    	
 
    	
$
    	
+1,346.63
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
212,167.36
    	
 
    	
$
    	
17,680.61
    	
 
    
	
12/31/10 (Cure Space Effective Date) — 8/31/2011
    	
 
    	
Original Premises
    	
 
    	
7,775
    	
 
    	
$
    	
25.21
    	
 
    	
$
    	
196,007.75
    	
 
    	
$
    	
16,333.98
    	
 
    
	
 
    	
PWC Space
    	
 
    	
641
    	
 
    	
$
    	
25.21
    	
 
    	
$
    	
16,159.61
    	
 
    	
$
    	
1,346.63
    	
 
    
	
 
    	
Cure Space
    	
 
    	
3,835
    	
 
    	
$
    	
11.50
    	
 
    	
$
    	
+44,102.50
    	
 
    	
$
    	
+3,675.21
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
256,269.86
    	
 
    	
$
    	
21,355.82
    	
 
    
	
09/01/2011 — 12/31/11
    	
 
    	
Original Premises
    	
 
    	
7,775
    	
 
    	
$
    	
25.54
    	
 
    	
$
    	
198,573.50
    	
 
    	
$
    	
16,547.79
    	
 
    
	
 
    	
 
    	
PWC Space
    	
 
    	
641
    	
 
    	
$
    	
25.54
    	
 
    	
$
    	
16,371.14
    	
 
    	
$
    	
1,364.26
    	
 
    
	
 
    	
 
    	
Cure Space
    	
 
    	
3,835
    	
 
    	
$
    	
11.50
    	
 
    	
$
    	
44,102.50
    	
 
    	
$
    	
3,675.21
    	
 
    
	
 
    	
 
    	
WPM Space
    	
 
    	
803
    	
 
    	
$
    	
25.54
    	
 
    	
$
    	
20,508.62
    	
 
    	
$
    	
1,709.05
    	
 
    
	
 
    	
 
    	
5G Space
    	
 
    	
356
    	
 
    	
$
    	
8.12
    	
 
    	
$
    	
+2,890.72
    	
 
    	
$
    	
+240.89
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
282,446.48
    	
 
    	
$
    	
23,537.20
    	
 
    
	
01/01/12 — Day prior to Amendment 5 Effective Date
    	
 
    	
All (except 5G)
    	
 
    	
13,054
    	
 
    	
$
    	
25.54
    	
 
    	
$
    	
333,399.16
    	
 
    	
$
    	
27,783.26
    	
 
    
	
 
    	
5G Space
    	
 
    	
356
    	
 
    	
$
    	
8.24
    	
 
    	
$
    	
+2,933.44
    	
 
    	
$
    	
+244.45
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
336,332.60
    	
 
    	
$
    	
28,027.71
    	
 
    
	
Amendment 5 Effective Date — Day prior to Second   Expansion Space Rent Commencement Date
    	
 
    	
All (except 5G and 5I)
    	
 
    	
13,054
    	
 
    	
$
    	
25.54
    	
 
    	
$
    	
333,399.16
    	
 
    	
$
    	
27,783.26
    	
 
    
	
 
    	
5G Space and 5I Space
    	
 
    	
712
    	
 
    	
$
    	
8.24
    	
 
    	
$
    	
+5,866.88
    	
 
    	
$
    	
+488.91
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
339,266.04
    	
 
    	
$
    	
28,272.17
    	
 
    
	
Second Expansion Space Rent Commencement Date —   End of Extension Term
    	
 
    	
All (except 5G and 5I)
    	
 
    	
17,029
    	
 
    	
$
    	
25.54
    	
 
    	
$
    	
434,920.66
    	
 
    	
$
    	
36,243.39
    	
 
    
	
 
    	
5G Space and 5I Space
    	
 
    	
712
    	
 
    	
$
    	
8.24
    	
 
    	
$
    	
+5,866.88
    	
 
    	
$
    	
+488.91
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
440,787.54
    	
 
    	
$
    	
36,732.30
    	
 
    

 

 

Renewal Term 1 (exercised in Amendment 4):

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Base Rent
    	
 
    	
Annual Base
    	
 
    	
Monthly Base
    	
 
    
	
Period
    	
 
    	
Space
    	
 
    	
RSF
    	
 
    	
Per RSF
    	
 
    	
Rent
    	
 
    	
Rent
    	
 
    
	
Renewal Term 1, year 1
    	
 
    	
All (except 5G and 5I)
    	
 
    	
17,029
    	
 
    	
$
    	
25.88
    	
 
    	
$
    	
440,710.52
    	
 
    	
$
    	
36,725.88
    	
 
    
	
 
    	
 
    	
5G Space and 5I Space
    	
 
    	
712
    	
 
    	
$
    	
8.37
    	
 
    	
$
    	
+5,959.44
    	
 
    	
$
    	
+496.62
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
446,669.96
    	
 
    	
$
    	
37,222.50
    	
 
    
	
Renewal Term 1, years 2 and 3
    	
 
    	
All (except 5G and 5I)
    	
 
    	
17,029
    	
 
    	
$
    	
26.22
    	
 
    	
$
    	
446,500.38
    	
 
    	
$
    	
37,208.37
    	
 
    
	
 
    	
 
    	
5G Space and 5I Space
    	
 
    	
712
    	
 
    	
$
    	
8.49
    	
 
    	
$
    	
+6,044.88
    	
 
    	
$
    	
+503.74
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
452,545.26
    	
 
    	
$
    	
37,712.11
    	
 
    

 

Renewal Term 2:

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Base Rent
    	
 
    	
Annual Base
    	
 
    	
Monthly Base
    	
 
    
	
Period
    	
 
    	
Space
    	
 
    	
RSF
    	
 
    	
Per RSF
    	
 
    	
Rent
    	
 
    	
Rent
    	
 
    
	
Renewal Term 2, year 1
    	
 
    	
All (except 5G and 51)
    	
 
    	
17,029
    	
 
    	
$
    	
26.58
    	
 
    	
$
    	
452,630.82
    	
 
    	
$
    	
37,719.24
    	
 
    
	
 
    	
 
    	
5G Space and 5I Space
    	
 
    	
712
    	
 
    	
$
    	
8.62
    	
 
    	
$
    	
+6,137.44
    	
 
    	
$
    	
+511.45
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
458,768.26
    	
 
    	
$
    	
38,230.69
    	
 
    
	
Renewal Term 2, year 2
    	
 
    	
All (except 5G and 5I)
    	
 
    	
17,029
    	
 
    	
$
    	
26.93
    	
 
    	
$
    	
458,590.97
    	
 
    	
$
    	
38,215.91
    	
 
    
	
 
    	
 
    	
5G Space and 5I Space
    	
 
    	
712
    	
 
    	
$
    	
8.75
    	
 
    	
$
    	
+6,230.00
    	
 
    	
$
    	
+519.17
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
464,820.97
    	
 
    	
$
    	
38,735.08Exhibit 10.14

 

Execution Version

 

Confidential Materials omitted and filed separately with the

Securities and Exchange Commission.  Double asterisks denote omissions.

 

LICENSE AND OPTION AGREEMENT

 

BY AND BETWEEN

 

MEDIMMUNE, LLC

 

AND

 

BULLDOG PHARMACEUTICALS, INC.

 

 

Table of Contents

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE 1
    	
DEFINITIONS
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE 2
    	
GRANT OF RIGHTS
    	
18
    
	
 
    	
 
    	
 
    
	
ARTICLE 3
    	
DEVELOPMENT AND REGULATORY
    	
20
    
	
 
    	
 
    	
 
    
	
ARTICLE 4
    	
COMMERCIALIZATION
    	
26
    
	
 
    	
 
    	
 
    
	
ARTICLE 5
    	
OPTION RIGHTS
    	
26
    
	
 
    	
 
    	
 
    
	
ARTICLE 6
    	
PAYMENTS
    	
33
    
	
 
    	
 
    	
 
    
	
ARTICLE 7
    	
OWNERSHIP OF INTELLECTUAL PROPERTY RIGHTS
    	
40
    
	
 
    	
 
    	
 
    
	
ARTICLE 8
    	
CONFIDENTIALITY
    	
47
    
	
 
    	
 
    	
 
    
	
ARTICLE 9
    	
REPRESENTATIONS AND WARRANTIES
    	
53
    
	
 
    	
 
    	
 
    
	
ARTICLE 10
    	
INDEMNIFICATION AND INSURANCE
    	
58
    
	
 
    	
 
    	
 
    
	
ARTICLE 11
    	
TERM AND TERMINATION
    	
61
    
	
 
    	
 
    	
 
    
	
ARTICLE 12
    	
MISCELLANEOUS
    	
66
    
	
 
    	
 
    	
 
    
	
Exhibits:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Schedules:
    	
 
    	
 
    

 

i

 

LICENSE AND OPTION AGREEMENT

 

This License and Option Agreement (this “Agreement”) is entered into and made effective as of the 24th day of July, 2013 (the “Effective Date”), by and between MedImmune, LLC, a limited liability company organized and existing under the laws of Delaware, having a principal office located at One MedImmune Way, Gaithersburg, MD 20878 (“MedImmune”), and Bulldog Pharmaceuticals, Inc., a company organized and existing under the laws of the British Virgin Islands, having a registered office located at Midocean Chambers, Road Town, Tortola, British Virgin Islands (“Kolltan”).  MedImmune and Kolltan are each referred to herein by name or as a “Party” or, collectively, as “Parties.”

 

RECITALS

 

WHEREAS, Kolltan is a wholly-owned subsidiary of Kolltan Pharmaceuticals, Inc.;

 

WHEREAS, Kolltan possesses expertise in the Research, Development, Manufacture and Commercialization (each as defined below) of pharmaceutical products;

 

WHEREAS, MedImmune controls certain intellectual property and regulatory materials and biological materials related to the Licensed Antibody (as defined below);

 

WHEREAS, Kolltan is interested in receiving certain licenses and other rights under which it may Research, Develop, Manufacture and Commercialize the Licensed Antibody, Licensed Products, Follow-On Antibodies and Follow-On Products (each as defined below), in each case in the Field in the Territory (each as defined below), and MedImmune is willing to grant Kolltan such licenses and other rights on the terms and conditions set forth in this Agreement; and

 

WHEREAS, the Parties desire to set forth herein the terms and conditions of the licenses and other rights to enable Kolltan to Research, Develop, Manufacture and Commercialize the Licensed Antibody, Licensed Products, Follow-On Antibodies and Follow-On Products.

 

NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

ARTICLE 1
 DEFINITIONS

 

As used in this Agreement, the following terms shall have the meanings set forth in this ARTICLE 1:

 

1.1           “Accounting Standards” means generally accepted accounting principles (GAAP) as practiced in the United States; provided, however, that from and after such time (if any) as Kolltan elects to maintain its books in accordance with International Financial Reporting Standards (“IFRS”), Accounting Standards shall mean IFRS.

 

1

 

1.2                               “Affiliate” means, as to a Person, any other Person that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with said first Person, regardless of whether such Affiliate is an Affiliate on the Effective Date or becomes an Affiliate after the Effective Date.  For purposes of this definition, a Person shall be deemed to “control” another Person if it (a) owns, directly or indirectly, beneficially or legally, more than fifty percent (50%) of the outstanding voting securities or capital stock (or such lesser percentage which is the maximum allowed to be owned by a Person in a particular jurisdiction) of such other Person, or has other comparable ownership interest with respect to any Person other than a corporation; or (b) has the power, whether pursuant to contract, ownership of securities or otherwise, to direct the general management and policies of the Person.

 

1.3                               “Annual Net Sales” means, for any Licensed Product or Follow-On Product, as the case may be, in any Calendar Year, aggregate Net Sales of such Licensed Product or Follow-On Product, as applicable, in such Calendar Year, but excluding any Net Sales of such Licensed Product or Follow-On Product, as applicable, in any country if the applicable sale is made after the expiration of the Royalty Term for such Licensed Product or Follow-On Product, as applicable, in such country.

 

1.4                               “Antibody” means any antibody, or any antigen-binding fragment thereof, with a unique amino acid sequence.  Two antibodies that have different amino acid sequences (even if differing by only a single amino acid) shall be deemed to be different Antibodies.

 

1.5                               “Applicable Law” or “Applicable Laws” means all laws, statutes, rules, regulations, orders, judgments, or ordinances having the effect of law of any federal, national, multinational, state, provincial, county, city or other political subdivision that may be in effect from time to time and applicable to the activities contemplated by this Agreement.

 

1.6                               “BLA” means a Biologics License Application and any amendments or supplements thereto filed with the FDA pursuant to 21 C.F.R. Part 601 or any other application that is required for the purpose of marketing and selling a biological product and is filed with a Regulatory Authority outside the United States, including, with respect to the EU, a Product License Application, Marketing Authorization Application and/or manufacturing and importation license.

 

1.7                               “Business Day” means a day on which banking institutions in New York, NY are open for business, excluding any Saturday or Sunday.

 

1.8                               “Calendar Quarter” means a period of three (3) consecutive months ending on the last day of March, June, September, or December.

 

1.9                                “Calendar Year” means a period of time commencing on January 1 and ending on the following December 31.

 

1.10                        “Clinical Trial(s)” means individually and collectively a Phase 1 Clinical Trial, a Phase 1b/2a Clinical Trial, a Phase 2 Clinical Trial, a Phase 3 Clinical Trial, a Phase 4 Study and a Post Approval Study.

 

2

 

1.11                        “Combination Product” means a Licensed Product or Follow-On Product, as the case may be, that (a) includes the Licensed Antibody or a Follow-On Antibody, as applicable, as an active pharmaceutical ingredient, together with one or more other active ingredients, and (b) is sold either as a fixed dose or with separate doses in a single package.

 

1.12                        “Commercialization” or “Commercialize” means any activities directed to obtaining pricing and/or reimbursement approvals, marketing, promoting, distributing, importing, offering to sell, and/or selling a product, including post-Regulatory Approval promotional activities conducted at scientific conferences or similar events.

 

1.13                        “Commercially Reasonable Efforts” means, with respect to a Party, such level of efforts required to carry out an obligation in a sustained manner consistent with the efforts normally used by pharmaceutical or biopharmaceutical companies, as applicable, of comparable size and resources to such Party, for a similar activity with respect to the Research, Development, Manufacture or Commercialization of products that (a) are at a similar stage in their product life as the relevant Licensed Product or Follow-On Product, as applicable, and (b) that have commercial and market potential similar to the relevant Licensed Product or Follow-On Product, as applicable,, taking into account issues of intellectual property scope, subject matter and coverage, safety and efficacy, product profile, competitiveness with respect to Third Party products in the marketplace, and profitability (including pricing and reimbursement status achieved or likely to be achieved).

 

1.14                        “Competing Product” means any pharmaceutical product that (a) comprises or incorporates an Antibody as an active pharmaceutical ingredient alone or in combination with one or more other active agents and (b) operates by targeting HER-3.

 

1.15                        “Control,” “Controls,” “Controlled” or “Controlling” means, with respect to any Know-How, Patent, Regulatory Documentation or other intellectual property right, the possession (whether by ownership or license, other than pursuant to this Agreement) by a Party of the right to assign or grant access to, or grant a license or sublicense under, such Know-How, Patent, Regulatory Documentation or other intellectual property right as provided for herein without violating the terms of any agreement or other arrangement with any Third Party existing at the time such Party would be required hereunder to make such assignment or grant such access, license or sublicense; provided, however, that any Know-How, Patent, Regulatory Documentation or other intellectual property right that is licensed or acquired by a Party from a Third Party after the Effective Date (other than rights arising from the In-License Agreements) that would otherwise be considered to be under the Control of such Party shall not be deemed to be under the Control of such Party if the application of such definition in the context of any licenses or sublicenses granted to the other Party under this Agreement would require the granting Party to make additional payments or royalties to such Third Party in connection with such license or sublicense grants pursuant to an arm’s length agreement between the granting Party and such Third Party, unless the other Party agrees to pay such additional payments or royalties to the Third Party.

 

1.16                        “Cover” or “Covered” means, for any product, technology, process or method and any Valid Claim, that the composition, manufacture, use, offer for sale, sale or importation of such product or the practice of such technology, process or method would, absent ownership of a 

 

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Patent that includes such Valid Claim or a license or sublicense under such Valid Claim, infringe such Valid Claim (assuming, in the case of a Valid Claim that has not yet issued, that such Valid Claim had issued).  A product, technology, process or method shall be deemed Covered by a Patent if it is Covered by at least one Valid Claim included in such Patent.

 

1.17                        “Data Package Delivery Date” means the date on which Kolltan completes delivery to MedImmune of (a) the full data set of clinical trial data (including validated data for primary and secondary endpoints) in the clinical trial database for a Phase 1b/2a Clinical Trial of the Licensed Antibody or a Licensed Product for each of two (2) indications as provided in Section 5.1.1, and (b) the clinical data and non-clinical and/or Development data and information required to be delivered under Sections 5.1.2 and 5.1.3 together with the full data set described in clause (a) above.

 

1.18                        “Develop” or “Development” means development activities relating to the development of compounds, biologics, or processes, and submission of information to a Regulatory Authority for the purpose of obtaining Regulatory Approval of a product.  Development includes non-clinical activities, pharmacology studies, toxicology studies, manufacturing process development activities, analytical method development activities, formulation development activities, chemical analysis, bioanalytical analysis, material performance studies (including measurements of stability, physical form, dissolution, and visual and spectroscopic analysis), pharmacokinetic studies, clinical studies, biomarker and companion diagnostic discovery and development, regulatory affairs activities, and all other activities relating to seeking, obtaining or maintaining any Regulatory Approvals from the FDA or any other applicable Regulatory Authority.

 

1.19                         “Dollars” or “$” means the legal tender of the United States.

 

1.20                        “Dyax Agreement” means that certain Amended and Restated License Agreement, dated July 26, 2012 between MedImmune Limited and Dyax Corp.

 

1.21                        “EMA” means the European Medicines Agency, or any successor entity thereto.

 

1.22                        “EU” means all of the member countries of the European Union as of the applicable time during the Term.  For clarity, the member countries of the European Union as of the Effective Date are Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and United Kingdom.

 

1.23                        “Executive Officers” means (a) with respect to Kolltan, the Chief Executive Officer of Kolltan, and (b) with respect to MedImmune, the Executive Vice President, Research and Development of MedImmune.

 

1.24                        “Existing IND” means application number 116023 for the treatment of advanced solid tumors, filed with the FDA and effective as of January 11, 2013.

 

1.25                        “Existing Proceeding” means any post-grant proceeding that is being prosecuted by MedImmune or its Affiliates as of the Effective Date and that relates to a Patent that (a) could 

 

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be relevant to the exercise by Kolltan of the rights, licenses and sublicenses granted to Kolltan by MedImmune under this Agreement (including the making, using, selling, offering for sale or import of the Licensed Antibody or any Licensed Product, Follow-On Antibody or Follow-On Product) or (b) could otherwise affect the Research, Development, Manufacture, or Commercialization of the Licensed Antibody or any Licensed Product, Follow-On Antibody or Follow-On Product.  For the avoidance of doubt, Existing Proceeding includes the opposition proceeding set forth in Exhibit 9.2.6.

 

1.26                        “FDA” means the U.S. Food and Drug Administration, or any successor entity thereto.

 

1.27                        “FD&C Act” means the United States Federal Food, Drug, and Cosmetic Act, as amended.

 

1.28                        “Field” means any use in humans, including diagnosis, prophylaxis and treatment of human disease.

 

1.29                        “First Commercial Sale” means, for any Licensed Product or Follow-On Product, as the case may be, in any country, the first sale or other transfer for consideration of such Licensed Product or Follow-On Product, as applicable, in such country by or on behalf of Kolltan, its Affiliates or its Sublicensees for use or consumption pursuant to a Regulatory Approval (or as otherwise permitted by the applicable Governmental Authority) in such country, including any sales or other transfers for consideration to distributors (subject to the next sentence), that results in the recognition of revenue.  Sale or other transfer for consideration of a Licensed Product or Follow-On Product, as the case may be, in a country by Kolltan to an Affiliate or Sublicensee of Kolltan shall not constitute a First Commercial Sale in such country where such Affiliate or such Sublicensee (a) is not the end user of such Licensed Product or Follow-On Product, as applicable, and has purchased or received such Licensed Product or Follow-On Product, as applicable, for purposes of re-selling, transferring, distributing or otherwise commercially disposing of such Licensed Product or Follow-On Product, as applicable, or (b) is solely acquiring such Licensed Product or Follow-On Product, as applicable, for the purposes set forth in subsections (a)-(c) of Section 1.98.  In no event shall any sales in any country for sampling be deemed a First Commercial Sale in such country.

 

1.30                        “Follow-On Antibody” means any Antibody, other than the Licensed Antibody, that is Covered by a claim of a national stage application of or claiming priority to Intl. Appl. No. [**].  For avoidance of doubt, Follow-On Antibody includes any antibody or antigen-binding fragment thereof fused or conjugated to a molecule, which antibody is Covered by a claim of a national stage application of or claiming priority to Intl. Appl. No. [**].

 

1.31                        “Follow-On Product” means any pharmaceutical product (including all forms, presentations, doses and formulations) that comprises or incorporates any Follow-On Antibody as an active pharmaceutical ingredient alone or in combination with one or more other active agents.

 

1.32                        “Follow-On Product Transaction” means any sale by Kolltan of, or any grant of any license or sublicense by Kolltan under, Kolltan’s rights to Commercialize any Follow-On 

 

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Product; provided, however, that any Kolltan Sale or Financing, or any assignment or deemed assignment of this Agreement by Kolltan in connection with a Kolltan Sale or Financing, shall not be deemed a Follow-On Product Transaction.

 

1.33                        “Follow-On Program” means the Parties’ rights and obligations under this Agreement with respect to Follow-On Antibodies and Follow-On Products.

 

1.34                        “GCP” means the then-current standards, practices and procedures (a) promulgated or endorsed by the FDA as set forth in the guidelines entitled “Guidance for Industry E6 Good Clinical Practice: Consolidated Guidance,” including related regulatory requirements imposed by the FDA; (b) set forth in Directive 2001/20/EC of the European Parliament and of the Council of 4 April 2001 and Commission Directive 2005//28/EC of 8 April 2005; (c) set forth in ICH Guideline for Good Clinical Practice E6; (d) set forth in analogous Applicable Laws of an applicable Regulatory Authority; and (e) set forth in any Regulatory Authority documents or regulations that replace, amend, modify, supplant or complement any of the foregoing.

 

1.35                         “GLP” means the then-current good laboratory practice standards promulgated or endorsed by the FDA as defined in 21 C.F.R. Part 58, as such regulations may be amended from time to time, and analogous Applicable Laws of an applicable Regulatory Authority.

 

1.36                        “GMP” means then-current standards for the manufacture of pharmaceutical products, pursuant to (a) the FD&C Act (21 U.S.C. 321 et seq.); (b) relevant United States regulations in Title 21 of the United States Code of Federal Regulations (including Parts 11, 210, and 211); (c) European Community Directives 2003/94 and 91/356/EC; (d) the European Community Guide to Good Manufacturing Practice for Medicinal Intermediate Products; (e) ICH Q7A Good Manufacturing Practice Guidance for Active Pharmaceutical Ingredients; (f) analogous Applicable Laws of an applicable Regulatory Authority at the time of Manufacture; and (g) all additional Regulatory Authority documents or regulations that replace, amend, modify, supplant or complement any of the foregoing.

 

1.37                        “Governmental Authority” means any United States federal, state or local or any non-United States government, or political subdivision thereof, or any multinational organization or authority or any authority, agency or commission entitled to exercise any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power, any court or tribunal (or any department, bureau or division thereof), or any governmental arbitrator or governmental arbitral body.

 

1.38                        “HER-3” means the protein that (a) is also known as ErbB3 or EGFR3; (b) is an alias of V-erb-b2 erythroblastic leukemia viral oncogene homolog 3; (c) is a member of the ErbB family of receptor tyrosine kinases; and (d) has its DNA sequence located on human chromosome 12q13.

 

1.39                        “ICH” means the International Conference on Harmonization of Technical Requirements for Registration of Pharmaceuticals for Human Use.

 

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1.40                        “IND” means an Investigational New Drug Application filed with FDA or a similar application filed with an applicable Regulatory Authority outside of the United States such as a clinical trial application (CTA).

 

1.41                        “In-License Agreement” means each agreement pursuant to which MedImmune is granted a license or sublicense under the In-Licensed IP.  As of the Effective Date, the In-License Agreements are the agreements set forth on Exhibit 1.41.

 

1.42                        “In-Licensed IP” means the Patents and Know-How set forth on Exhibit 1.42.

 

1.43                        “Insolvency Event” means, as to a Party, (a) the entry of an order for relief with respect to such Party under the Bankruptcy Code or any other bankruptcy, insolvency, reorganization or other similar act or law of any jurisdiction now or hereafter in effect; (b) the commencement of an involuntary proceeding against such Party under the Bankruptcy Code or any other bankruptcy, insolvency, reorganization or other similar act or law of any jurisdiction now or hereafter in effect, if not dismissed, bonded or stayed within ninety (90) days after such commencement; (c) the making by such Party of a general assignment for the benefit of creditors; or (d) the appointment of or taking possession by a receiver, liquidator, assignee, custodian, or trustee of all or substantially all of the business or property of such Party.

 

1.44                        “Joint Information and Inventions” means Know-How that is first made or discovered jointly by (a) one or more employees, consultants or agents of MedImmune or its Affiliates and (b) one or more employees, consultants or agents of Kolltan or its Affiliates, in the course of Research, Development, Manufacture or Commercialization of the Licensed Antibody and Licensed Products.

 

1.45                        “Joint IP” means the Joint Know-How and the Joint Patents.

 

1.46                        “Joint Know-How” means all Joint Information and Inventions except to the extent disclosed by published Joint Patents.

 

1.47                        “Joint Patents” means Patents that Cover Joint Information and Inventions.

 

1.48                        “Know-How” means all tangible and intangible (a) information, techniques, technology, practices, trade secrets, inventions (whether patentable or not), methods, knowledge, know-how, strategies, skill, experience, data, results (including pharmacological, toxicological and non-clinical and clinical test data and results, and Research or Development data, reports and batch records), analytical and quality control data, analytical methods (including applicable reference standards), full batch documentation for all product forms, packaging records, release, stability, storage and shelf-life data, Manufacturing process information, results and descriptions, and software and algorithms (but excluding any Regulatory Documentation) and (b) compositions of matter, cells, cell lines, assays, animal models and physical, biological or chemical material (including reagents and antibodies).

 

1.49                        “Kolltan Development Costs” means the sum of (a) all Out-of-Pocket Costs incurred by Kolltan or its Affiliates under this Agreement as of a specified time that are specifically identifiable to (i) the Research or Development of the Licensed Antibody or Licensed Products or (ii) the Manufacture of the Licensed Antibody or Licensed Products in

 

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support of such Research or Development, including the validation, qualification and subsequent audit of Manufacturing facilities, and (b) an amount equal to the lesser of (x) the number of Kolltan employee hours attributable to Kolltan’s activities set forth in the foregoing subsections (i) and (ii) of clause (a) above multiplied by [**] Dollars ($[**]) and (y) [**] percent ([**]%) of the amount described in clause (a) above.  For avoidance of doubt, the Upfront Fee shall not be included in the Kolltan Development Costs.

 

1.50                        “Kolltan Indemnitees” means Kolltan and its Affiliates and Sublicensees and the directors, officers, employees and consultants of Kolltan and its Affiliates and Sublicenses.

 

1.51                        “Kolltan Information and Inventions” means Know-How that (a) is Controlled by Kolltan or its Affiliates during the Term and (b) relates to the Licensed Antibody, any Licensed Product, any Follow-On Antibody or any Follow-On Product, or the Manufacture of the Licensed Antibody, any Licensed Product, any Follow-On Antibody or any Follow-On Product; provided, however, that Kolltan Information and Inventions excludes any Joint Information and Inventions.

 

1.52                        “Kolltan IP” means the Kolltan Know-How and the Kolltan Patents.

 

1.53                        “Kolltan Know-How” means all Kolltan Information and Inventions except to the extent disclosed by published Kolltan Patents.

 

1.54                         “Kolltan Patents” means Patents Controlled by Kolltan or its Affiliates during the Term that Cover Kolltan Information and Inventions; provided, however, that Kolltan Patents excludes any Joint Patents.

 

1.55                        “Kolltan Sale or Financing” means (a) any transaction or series of related transactions that results in the sale or other disposition of all or substantially all of Kolltan’s assets; (b) any merger, consolidation or similar business combination involving Kolltan; or (c) any issuance, sale or exchange of any securities of Kolltan, whether in a public or private offering.

 

1.56                        “Licensed Antibody” means MedImmune’s proprietary Antibody known as MEDI3379 (anti-HER3), with respect to which the Existing IND has been filed, and/or its parent Antibody 2C2 (anti-HER3), or any isotype thereof.

 

1.57                        “Licensed Product” means any pharmaceutical product (including all forms, presentations, doses and formulations) that comprises or incorporates the Licensed Antibody as an active pharmaceutical ingredient alone or in combination with one or more other active agents.

 

1.58                        “Licensed Program” means the Parties’ rights and obligations under this Agreement with respect to the Licensed Antibody and Licensed Products.

 

1.59                        “Lonza Agreement” means that certain Licenses and Services Agreement made effective as of January 21, 2005 by and between AstraZeneca AB and Lonza Biologics PLC, as (a) novated by that certain Novation Agreement effective January 1, 2007 by and among Lonza

 

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Biologics PLC, Lonza Sales AG and AstraZeneca AB and (b) amended by Amendment No. 1 made effective as of March 20, 2009.

 

1.60                        “Major Indication” means any indication with a market potential of at least [**] Dollars ($[**]) in peak year sales in the Territory, as determined by Kolltan, in consultation with MedImmune, by reference to standard industry sources.

 

1.61                        “Manufacture” or “Manufacturing” means all activities related to the manufacturing of a product in all of its forms, including test method development, formulation development, process development, process and product characterization (including upstream and downstream processing), manufacturing scale-up, manufacturing for use in non-clinical and clinical studies, manufacturing for commercial sale, packaging, storage, quality assurance/quality control development, quality control testing (including in-process, release and stability testing) and release of product or any component or ingredient thereof, and regulatory activities related to all of the foregoing.

 

1.62                        “MedImmune Additional Information and Inventions” means Know-How (a) that is Controlled by MedImmune or its Affiliates on the Effective Date or thereafter during the Term; (b) that relates to the Licensed Antibody, any Licensed Product, any Follow-On Antibody or any Follow-On Product; and (c) the practice of which is reasonably useful in order to Research, Develop or Commercialize the Licensed Antibody, any Licensed Product, any Follow-On Antibody or any Follow-On Product in the Field in the Territory; provided, however, that MedImmune Additional Information and Inventions excludes any MedImmune Information and Inventions, any MedImmune Manufacturing Information and Inventions and any Joint Information and Inventions.

 

1.63                        “MedImmune Additional IP” means the MedImmune Additional Know-How and the MedImmune Additional Patents.

 

1.64                        “MedImmune Additional Know-How” means all MedImmune Additional Information and Inventions except to the extent disclosed by published MedImmune Additional Patents.

 

1.65                        “MedImmune Additional Patents” means Patents Controlled by MedImmune or its Affiliates on the Effective Date or thereafter during the Term that Cover MedImmune Additional Information and Inventions; provided, however, that MedImmune Additional Patents excludes any MedImmune Patents and any Joint Patents.

 

1.66                        “MedImmune Indemnitees” means MedImmune, its Affiliates and the directors, officers, employees and consultants of MedImmune and its Affiliates.

 

1.67                        “MedImmune Information and Inventions” means Know-How (a) that is Controlled by MedImmune or its Affiliates on the Effective Date or thereafter during the Term; (b) that relates to the Licensed Antibody, any Licensed Product, any Follow-On Antibody or any Follow-On Product; and (c) the practice of which is necessary to Research, Develop or Commercialize the Licensed Antibody, any Licensed Product, any Follow-On Antibody or any Follow-On Product in the Field in the Territory; provided, however, that MedImmune

 

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Information and Inventions excludes any MedImmune Manufacturing Information and Inventions and any Joint Information and Inventions.

 

1.68                        “MedImmune IP” means the MedImmune Know-How and the MedImmune Patents.

 

1.69                        “MedImmune Know-How” means all MedImmune Information and Inventions except to the extent disclosed by published MedImmune Patents.

 

1.70                        “MedImmune Manufacturing Information and Inventions” means Know-How (a) that is Controlled by MedImmune or its Affiliates on the Effective Date or thereafter during the Term and (b) either (i) the practice of which is necessary in order to Manufacture the Licensed Antibody, any Licensed Product, any Follow-On Antibody or any Follow-On Product in the Field in the Territory or (ii) is expressly disclosed in the Existing IND; provided, however, that MedImmune Manufacturing Information and Inventions excludes any Joint Information and Inventions.  For avoidance of doubt, MedImmune Manufacturing Information and Inventions shall not include any Know-How related to MedImmune proprietary cell culture media and nutrient feeds used in the Manufacturing process.

 

1.71                        “MedImmune Manufacturing Know-How” means all MedImmune Manufacturing Information and Inventions except to the extent disclosed by published MedImmune Manufacturing Patents.

 

1.72                        “MedImmune Manufacturing Patents” means Patents Controlled by MedImmune or its Affiliates on the Effective Date or thereafter during the Term that Cover MedImmune Manufacturing Information and Inventions; provided, however, that MedImmune Manufacturing Patents excludes any Joint Patents; and provided, further, that any Patents that qualify as both (a) MedImmune Manufacturing Patents and (b) either MedImmune Patents or MedImmune Additional Patents shall, for purposes of ARTICLE 7, be treated as MedImmune Patents or MedImmune Additional Patents, as applicable.

 

1.73                        “MedImmune Patents” means Patents Controlled by MedImmune or its Affiliates on the Effective Date or thereafter during the Term that Cover MedImmune Information and Inventions; provided, however, that MedImmune Patents excludes any Joint Patents.

 

1.74                        “MRC Agreement” means that certain Agreement, dated January 7, 1997, between Medical Research Council, Cambridge Antibody Technology Limited and Cambridge Antibody Technology Group plc, as may be amended from time to time.

 

1.75                        “Net Sales” means, with respect to Licensed Products or Follow-On Products, as the case may be, the gross amounts billed or invoiced by or on behalf of Kolltan, its Affiliates or its Sublicensees to Third Parties that are not Sublicensees for the sale or other transfer for consideration of Licensed Products or Follow-On Product, as applicable, less the following deductions, determined in each case in accordance with the Accounting Standards:

 

(a)                                 normal and customary trade, quantity or prompt settlement discounts allowed and taken;

 

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(b)                                 refunds, chargebacks and any other allowances given and taken which effectively reduce the gross amounts billed or invoiced;

 

(c)                                  product returns, credits, allowances and bad debt write-offs;

 

(d)                                 rebates, reimbursements, fees, taxes or similar payments to (i) wholesalers and other distributors, pharmacies and other retailers, buying groups (including group purchasing organizations), health care insurance carriers, pharmacy benefit management companies, health maintenance organizations, governmental entities, or other institutions or health care organizations to the extent actually paid or credited; or (ii) patients and other Third Parties arising in connection with any program that provides low income, uninsured or other patients the opportunity to obtain discounted Licensed Products or Follow-On Product, as applicable;

 

(e)                                  discounts mandated by, or granted to meet the requirements of, Applicable Law, including required chargebacks and retroactive price reductions;

 

(f)                                   transportation, freight, postage charges and other charges such as insurance, relating thereto, in each case included as a specific line item on a bill or an invoice to such Third Parties; and

 

(g)                                  taxes, excises or other governmental charges upon or measured by the production, sale, transportation, delivery or use of goods, in each case included as a specific line item on a bill or an invoice to such Third Parties.

 

Sales or other transfers for consideration of Licensed Products or Follow-On Products, as the case may be, (1) between Kolltan and its Affiliates and/or its Sublicensees (except to the extent that such Affiliates or Sublicensees are end users of such Licensed Products or Follow-On Products, as applicable) or (2) provided to Third Parties without charge, in connection with research and development, Clinical Trials, compassionate use, humanitarian and charitable donations, or indigent programs or for use, in reasonable and customary quantities, as samples, shall in each case ((1) and (2)) be excluded from the computation of Net Sales, and no payments will be payable on such sales or such other transfers for consideration.

 

If a Licensed Product or Follow-On Product is sold or otherwise commercially disposed of for consideration other than cash or in a transaction that is not at arm’s length between the buyer and the seller, then the gross amount to be included in the calculation of Net Sales shall be the amount that would have been invoiced had the transaction been conducted at arm’s length and for cash.  Such amount that would have been invoiced shall be determined, wherever possible, by reference to the average selling price of the relevant Licensed Product or Follow-On Product in arm’s length transactions in the relevant country.

 

Notwithstanding the foregoing, to the extent a Licensed Product or Follow-On Product, as the case may be, is sold as a Combination Product:

 

(i)                                     if, on a country-by-country basis, each of such Licensed Product or Follow-On Product, as applicable, and the other active ingredient(s) in such Combination Product are sold separately in a country, Net Sales with respect to such

 

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Combination Product in such country for the purpose of determining milestones and royalties due hereunder shall be calculated by multiplying the actual Net Sales of the Combination Product in such country by the fraction A/(A+B), where “A” is the total weighted (by sales volume) average Net Sales price of such Licensed Product or Follow-On Product, as applicable, as sold separately in such country and “B” is the total weighted (by sales volume) average net sales (calculated in a manner analogous to the manner in which Net Sales are calculated as set forth above) price of such other active ingredient(s)as sold separately in such country;

 

(ii)                                  if, on a country-by-country basis, such Licensed Product or Follow-On Product, as applicable, is sold separately in a country but the other active ingredient(s) in such Combination Product are not sold separately in such country, Net Sales with respect to such Combination Product in such country for the purpose of determining milestones and royalties due hereunder shall be calculated by multiplying the actual Net Sales of the Combination Product in such country by the fraction A/C, where “A” is the total weighted (by sales volume) average Net Sales price of the Licensed Product or Follow-On Product, as applicable, as sold separately in such country and “C” is the total weighted (by sales volume) average Net Sales price of the Combination Product in such country;

 

(iii)                               if, on a country-by-country basis, such Licensed Product or Follow-On Product, as applicable, is not sold separately in a country, but each of such Licensed Product or Follow-On Product, as applicable, and the other active ingredient(s) in such Combination Product are sold separately in at least one country, Net Sales with respect to such Combination Product in such first country for the purpose of determining milestones and royalties due hereunder shall be calculated by multiplying the actual Net Sales of such Combination Product in such first country by the fraction D/(D+E), where “D” is the worldwide average Net Sales price of the Licensed Product or Follow-On Product, as applicable, as sold separately, and “E” is the worldwide average net sales (calculated in a manner analogous to the manner in which Net Sales are calculated as set forth above) price of the other active ingredients included in the Combination Product as sold separately; and

 

(iv)                              if, on a country-by-country basis, none of clauses (i) through (iii) above is applicable with respect to a country, Net Sales with respect to such Combination Product in such country for the purpose of determining milestones and royalties due hereunder shall be determined by the Parties in good faith based on the fair market value of the contribution of the Licensed Product or Follow-On Product, as applicable, to the total fair market value of the Combination Product, using, to the extent practicable, the principles outlined in clauses (i) through (iii) above.

 

1.76                        “Out-of-Pocket Costs” means amounts actually paid by a Party or its Affiliates to a Third Party that are identifiable to the applicable activities under this Agreement, which amounts or commitments are not cancelable by such Party without penalty or otherwise reasonably capable of recovery from such Third Party.

 

1.77                        “Patent” means (a) all patents and patent applications in any country or supranational jurisdiction, and (b) any substitutions, divisionals, continuations, continuations-in-part, provisional applications, reissues, renewals, registrations, confirmations, re-examinations,

 

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extensions, supplementary protection certificates and the like of any such patents or patent applications.

 

1.78                        “Patent Matter” means any Dispute that relates to the inventorship, infringement, enforceability or validity of any Patent.

 

1.79                        “Person” means any individual, partnership, joint venture, limited liability company, corporation, firm, trust, association, unincorporated organization, governmental authority or agency, or any other entity not specifically listed herein.

 

1.80                        “Phase 1 Clinical Trial” means a human clinical trial that is intended to initially evaluate the safety and/or pharmacological effect of a product or that would otherwise satisfy the requirements of 21 C.F.R. 312.21(a) or an equivalent clinical trial in a country other than the United States.

 

1.81                        “Phase 1b/2a Clinical Trial” means a human clinical trial of a product as a single agent or in combination for any indication that (a) is intended for dose exploration, examination of pharmacological or clinical activity (including dose response, dose escalation, duration of effect or kinetic/dynamic relationship assessments) and preliminary determination of efficacy and safety in the target patient population, and (b) contains a sufficient number of well characterized and clinically uniform subjects for the applicable indication using a pre-specified and uniform dose, or, if in combination, a fixed combination regimen, to assess the response rate and safety of the investigational agent.  As used herein, “response rate” in the case of a Phase 1b/2a Clinical Trial of the Licensed Antibody or Licensed Product must be sufficiently robust, and demonstrate clinical benefit compared to standard of care (historical controls can be used), up to a maximum obligation of 40 subjects in the uniform dose cohort.

 

1.82                        “Phase 2 Clinical Trial” means a human clinical trial for which the primary endpoints include a determination of dose ranges or an indication of efficacy of a product in patients being studied as described in 21 C.F.R. §312.21(b), or an equivalent clinical trial in a country other than the United States.

 

1.83                        “Phase 3 Clinical Trial” means a human clinical trial that is prospectively designed to demonstrate statistically whether a product is safe and effective for use in humans in the indication being investigated in a manner sufficient to obtain Regulatory Approval to market such product in patients having the disease or condition being studied as described in 21 C.F.R. §312.21(c), or an equivalent clinical trial in a country other than the United States.

 

1.84                        “Phase 4 Study” means (a) a human clinical trial for a product for an indication that is required by a Regulatory Authority as a condition of (but is not completed before) obtaining the initial Regulatory Approval for such product for such indication and (b) any trial, test or study that is required or requested by a Regulatory Authority as a condition of maintaining the initial Regulatory Approval for a product for an indication, excluding any Post Approval Study.

 

1.85                        “Post Approval Study” means any human clinical study or other test or study with respect to a product for an indication that is not required in order to obtain or maintain Regulatory Approval for such product for such indication.  For clarity, any human clinical study

 

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that is intended to expand the product labeling for such product shall be deemed not to be a Post Approval Study.  Subject to the foregoing, Post Approval Study may include epidemiological studies, modeling and pharmacoeconomic studies, post-marketing surveillance studies, investigator or company sponsored or initiated studies and health economics studies.

 

1.86                        “Product Acquisition Price” means the greater of (a) the applicable Product FMV and (b) the Kolltan Development Costs as of the end of the calendar month immediately preceding the calendar month in which the applicable payment is made in accordance with this Agreement.

 

1.87                        “Product FMV” means the fair market value of the Product Rights based on a calculation of risk adjusted net present value and, if deemed necessary by the Panel, using one or more additional standard methodologies generally accepted in the valuation industry (including review of comparable programs).

 

1.88                        “Product Rights” means, as of the applicable time under this Agreement, (a) all right, title and interest of Kolltan or its Affiliates in and to the Licensed Antibody and any Licensed Products, including the rights, licenses and sublicenses granted by MedImmune hereunder, (b) to the extent not included in clause (a) above, the assignments to be made by Kolltan pursuant to Section 11.7.2(f), and (c) to the extent not included in clause (a) above, the licenses to be granted by Kolltan pursuant to Section 11.7.2(g), in each of the foregoing cases by reference to then-existing and future plans for Development of the Licensed Antibody and Licensed Products as reflected in any ongoing schedule of activities or otherwise in any Development plans to which Kolltan has committed, including for the specific indications included in any completed or in-progress Phase 1b/2a Clinical Trials with respect to the Licensed Antibody and Licensed Products, including the estimated costs for Development.

 

1.89                        “Program” means each of the Follow-On Program and the Licensed Program.

 

1.90                        “Qualified Bidder” means any Third Party bidder participating in the auction conducted by Kolltan pursuant to Section 5.4.3(e)(i) that is generally regarded within the biopharmaceutical industry as an entity that does not (a) inappropriately disclose or misuse the confidential information of its customers and licensors or (b) infringe the patent rights or misappropriate the trade secrets of its customers and licensors.

 

1.91                        “Qualified Contract Manufacturer” means any Third Party contract manufacturer that is generally regarded within the biopharmaceutical industry as an entity that does not (a) inappropriately disclose or misuse the confidential information of its customers and licensors or (b) infringe the patent rights or misappropriate the trade secrets of its customers and licensors.

 

1.92                        “Regulatory Approval” means all approvals, licenses, registrations or authorizations of any applicable Regulatory Authority necessary for the Commercialization (excluding pricing and/or reimbursement approvals) of a biological product for a particular indication in a country.

 

1.93                        “Regulatory Authority” means the FDA in the United States or any health authority in another country that is a counterpart to the FDA and holds responsibility for

 

14

 

regulating development of and/or granting Regulatory Approval for a biological product in such country, including the EMA, and any successor(s) thereto.

 

1.94                        “Regulatory Documentation” means all INDs (and/or clinical trial applications), BLAs (and/or marketing applications), and other regulatory applications submitted to any Regulatory Authority, copies of Regulatory Approvals, regulatory materials, drug dossiers, master files (including Drug Master Files, as defined in 21 C.F.R. §314.420 and any non-United States equivalents), and any other reports, records, regulatory correspondence, meeting minutes, telephone logs, and other materials relating to Regulatory Approval, including any underlying safety and effectiveness data whether or not submitted to any Regulatory Authority, and any information that relates to pharmacology, toxicology, chemistry, manufacturing and controls data, methods, processes and reports, executed batch records, safety and efficacy, and any safety database required to be maintained for Regulatory Authorities, in each case related to, or required to Develop, Manufacture or Commercialize, a biological product.

 

1.95                        “Research” means the use, discovery, identification, research, characterization, modification, derivatization and optimization of Antibodies and other biological products.

 

1.96                        “Research Program” means each of the internal MedImmune Research programs listed on Exhibit 1.96.

 

1.97                        “Royalty Term” means (a) with respect to the relevant Licensed Product, for any country, the period (i) commencing on the First Commercial Sale of the first Licensed Product in such country and (ii) expiring on the later of (x) the tenth (10th) anniversary of such First Commercial Sale and (y) the expiration of the last to expire Valid Claim of an issued MedImmune Patent in such country that Covers the sale of the relevant Licensed Product in such country, and (b) with respect to the relevant Follow-On Product, for any country, the period (i) commencing on the First Commercial Sale of the first Follow-On Product in such country and (ii) expiring on the later of (x) the tenth (10th) anniversary of such First Commercial Sale and (y) the expiration of the last to expire Valid Claim of an issued MedImmune Patent in such country that Covers the sale of the relevant Follow-On Product in such country.

 

1.98                        “Sublicensee” means a Third Party to whom Kolltan, as permitted under this Agreement, grants a license or sublicense, as the case may be, under the MedImmune IP, MedImmune Additional IP or Joint IP to Research, Develop, Manufacture, Commercialize or otherwise use the Licensed Antibody, any Licensed Product, any Follow-On Antibody or any Follow-On Product, or otherwise grants rights to distribute, promote or sell Licensed Products or Follow-On Products; provided, however, Sublicensee does not include any Third Party who purchases a Licensed Product or Follow-On Product under a limited license or sublicense, as the case may be, as required to enable such Third Party (a) to perform final packaging for such Licensed Product or Follow-On Product for local distribution, (b) to conduct a confirmatory Clinical Trial of such Licensed Product or Follow-On Product to support a filing for Regulatory Approval of such Licensed Product or Follow-On Product in such Third Party’s distribution territory or (c) to prepare and make a filing for a Regulatory Approval of such Licensed Product or Follow-On Product in such Third Party’s distribution territory.

 

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1.99                        “Term” means the period commencing on the Effective Date and ending on the expiration or earlier termination of this Agreement.

 

1.100                 “Territory” means the entire world.

 

1.101                 “Third Party” means any Person other than MedImmune or Kolltan that is not an Affiliate of MedImmune or of Kolltan.

 

1.102                 “United States” or “U.S.” means the United States of America and all of its territories and possessions.

 

1.103                 “Unredacted Provision” means any provision of any In-License Agreement that was attached to an email sent by Christian Dinneen-Long to W. Bradford Middlekauff on July 25, 2013 at 4:30pm, 4:31pm, 4:32pm or 4:33pm Eastern Standard Time, which provision was included in such attachment in unredacted form; provided, however, that Unredacted Provisions excludes any provision that is partially redacted or incorporates any term the definition of which is redacted or partially redacted (including by incorporating any other term the definition of which is redacted or partially redacted).

 

1.104                 “UT Agreement” means that certain Exclusive Patent License Agreement, effective November 1, 2005, between the Board of Regents of the University of Texas System on behalf of the University of Texas Southwestern Medical Center at Dallas and MedImmune, Inc., as amended by Amendment #1 to Exclusive License Agreement, effective December 13, 2011.

 

1.105                 “Valid Claim” means (a) a claim of an issued patent that has not expired or been abandoned, or been revoked, held invalid or unenforceable by a patent office, court or other governmental agency of competent jurisdiction in a final and non-appealable judgment (or judgment from which no appeal was taken within the allowable time period) or (b) a claim within a patent application which application has not been pending for more than [**] years from the date of its first filing and which claim has not been revoked, cancelled, withdrawn, held invalid or abandoned.

 

1.106                 Additional Definitions.  Each of the following definitions is set forth in the section of this Agreement indicated below:

 

 

	
Definition:
    	
 
    	
Section:
    
	
 
    	
 
    	
 
    
	
Actual   Kolltan Development Costs
    	
 
    	
5.4.4
    
	
Auction   License Agreement
    	
 
    	
5.4.3(e)(ii)
    
	
Audited   Party
    	
 
    	
6.9.1
    
	
Auditing   Party
    	
 
    	
6.9.1
    
	
Bankruptcy   Code
    	
 
    	
2.4
    
	
Buyout   Amount
    	
 
    	
5.4.1(b)
    
	
Clinical   and Research Supply Agreement
    	
 
    	
3.6.3(a)
    
	
Co-Development   and Co-Commercialization Agreement
    	
 
    	
5.4.1(c)
    
	
Co-Development   and Co-Commercialization Agreement Terms
    	
 
    	
5.4.1(c)
    

 

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Definition:
    	
 
    	
Section:
    
	
 
    	
 
    	
 
    
	
Commercial   Supply Agreement
    	
 
    	
3.6.4(a)
    
	
Confidential   Information
    	
 
    	
8.1
    
	
Court
    	
 
    	
12.2
    
	
Disclosing   Party
    	
 
    	
8.1
    
	
Dispute
    	
 
    	
12.1
    
	
Effective   Date
    	
 
    	
Preamble
    
	
Election   Notice
    	
 
    	
5.4.1
    
	
Estimated   Kolltan Development Costs
    	
 
    	
5.4.4
    
	
Exercise   Notice
    	
 
    	
5.3.1(a)
    
	
Existing   Confidentiality Agreement
    	
 
    	
8.4
    
	
Expert
    	
 
    	
5.2.2(a)
    
	
Final   Kolltan Development Costs
    	
 
    	
5.4.4
    
	
Follow-On   Product Transaction
    	
 
    	
2.5
    
	
Kolltan
    	
 
    	
Preamble
    
	
Kolltan   ROFN Notice
    	
 
    	
2.5
    
	
Indemnified   Party
    	
 
    	
10.3
    
	
Indemnifying   Party
    	
 
    	
10.3
    
	
Indirect   Taxes
    	
 
    	
6.9.3
    
	
Information   Delivery Period
    	
 
    	
5.2.2(a)
    
	
Inventory
    	
 
    	
3.6.1
    
	
Losses
    	
 
    	
10.1
    
	
Materials
    	
 
    	
3.6.1
    
	
MedImmune
    	
 
    	
Preamble
    
	
MedImmune   ROFN Notice
    	
 
    	
2.5
    
	
Non-Paying   Party
    	
 
    	
6.9.2
    
	
Option   Period
    	
 
    	
5.3.1(a)
    
	
Option   Termination Date
    	
 
    	
3.5.2(a)
    
	
Panel
    	
 
    	
5.2.2(a)
    
	
Party   or Parties
    	
 
    	
Preamble
    
	
Paying   Party
    	
 
    	
6.9.1
    
	
Paying   Party Withholding Tax Action
    	
 
    	
6.9.1
    
	
Product   Acquisition Price Notice
    	
 
    	
5.2.2(b)
    
	
Receiving   Party
    	
 
    	
8.1
    
	
Resolution   Period
    	
 
    	
12.1
    
	
Same   or Later Stage Clinical Trial
    	
 
    	
12.4.2(a)(i)
    
	
Selection   Period
    	
 
    	
5.2.2(a)
    
	
Sublicensed   Rights
    	
 
    	
11.7.6
    
	
Third   Party Transaction
    	
 
    	
5.5
    
	
Triggering   Sale
    	
 
    	
12.4.2(a)(i)
    
	
Trigger   Period
    	
 
    	
5.2.1(a)
    
	
Trigger   Notice
    	
 
    	
5.2.1(a)
    
	
Upfront   Fee
    	
 
    	
6.1
    

 

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ARTICLE 2
 GRANT OF RIGHTS

 

2.1                               License Grants to Kolltan.

 

2.1.1                     Licensed Antibody and Licensed Products.  Subject to the terms of this Agreement, MedImmune hereby grants Kolltan (a) an exclusive, royalty-bearing (to the extent provided in Section 6.4), non-transferable (except in accordance with Section 12.4) license or sublicense, as applicable, with the right to sublicense (subject to Sections 2.2 and 5.5), under MedImmune’s and its Affiliates’ interests in MedImmune IP, MedImmune Additional IP and Joint IP, to Research, Develop, Manufacture and Commercialize the Licensed Antibody and Licensed Products in the Field in the Territory; and (b) an exclusive, royalty-bearing (to the extent provided in Section 6.4), non-transferable (except in accordance with Section 12.4) license or sublicense, as applicable, with the right to sublicense (subject to Sections 2.2 and 5.5), under MedImmune’s and its Affiliates’ interests in MedImmune Manufacturing Know-How and MedImmune Manufacturing Patents, to Manufacture the Licensed Antibody and Licensed Products for use in Kolltan’s Research, Development and Commercialization activities hereunder.

 

2.1.2                     Follow-On Antibodies and Follow-On Products.  Subject to the terms of this Agreement, MedImmune hereby grants Kolltan (a) an exclusive, royalty-bearing (to the extent provided in Section 6.4), non-transferable (except in accordance with Section 12.4) license or sublicense, as applicable, with the right to sublicense (subject to Section 2.2), under MedImmune’s and its Affiliates’ interests in MedImmune IP, MedImmune Additional IP and Joint IP, to Research, Develop, Manufacture and Commercialize Follow-On Antibodies and Follow-On Products in the Field in the Territory; and (b) an exclusive, royalty-bearing (to the extent provided in Section 6.4), non-transferable (except in accordance with Section 12.4) license or sublicense, as applicable, with the right to sublicense (subject to Section 2.2), under MedImmune’s and its Affiliates’ interests in MedImmune Manufacturing Know-How and MedImmune Manufacturing Patents, to Manufacture Follow-On Antibodies and Follow-On Products for use in Kolltan’s Research, Development and Commercialization activities hereunder.

 

2.2                               Sublicenses.  Subject to Section 5.5 and in accordance with the requirements as set forth on Exhibit 9.2.9(b), Kolltan shall have the right to grant sublicenses within the scope of the licenses and sublicenses under Section 2.1 to its Affiliates and to Third Parties; provided, however, that any such sublicense granted to a Third Party shall be pursuant to a written agreement that subjects the sublicensee to all relevant restrictions and limitations set forth in this Agreement, including the confidentiality provisions of ARTICLE 8.

 

2.3                               Rights Retained by MedImmune.  Any rights of MedImmune not expressly granted to Kolltan pursuant to this Agreement shall be retained by MedImmune.  Notwithstanding the exclusive licenses and sublicenses granted to Kolltan under Section 2.1, but subject to Section 7.9 and ARTICLE 8, MedImmune and its Affiliates retain the right (a) to practice under the MedImmune IP, MedImmune Additional IP and Joint IP solely (except as set forth under clause (b) below with respect to Joint IP) as necessary to (i) exercise their rights and perform their obligations hereunder, (ii) complete any activities under any Research Program

 

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that are ongoing as of the Effective Date and (iii) conduct (or permit Third Parties to conduct) Research, Development or Commercialization activities other than Research, Development or Commercialization of the Licensed Antibody, Licensed Products, Follow-On Antibodies or Follow-On Products; and (b) to practice under the Joint IP, MedImmune Manufacturing Know-How and MedImmune Manufacturing Patents solely (except as set forth under clause (a) above with respect to Joint IP) as necessary to (i) exercise their rights and perform their obligations under this Agreement, the Clinical and Research Supply Agreement (if any) and the Commercial Supply Agreement (if any) and (ii) conduct (or permit Third Parties to conduct) Manufacturing activities other than Manufacture of the Licensed Antibody, Licensed Products, Follow-On Antibodies or Follow-On Products.

 

2.4                               Section 365(n) of the Bankruptcy Code.  All rights and licenses granted under or pursuant to any section of this Agreement are, and shall be deemed to be for purposes of Section 365(n) of the United States Bankruptcy Code (Title 11, U.S. Code), as amended (the “Bankruptcy Code”) or any analogous provision of Applicable Law outside the United States, licenses of rights to “intellectual property” as defined in Section 101(35A) of the Bankruptcy Code or any analogous provision of Applicable Law outside the United States.  Each Party shall retain and may fully exercise all of its respective rights and elections under the Bankruptcy Code or any analogous provision of Applicable Law outside the United States.  In the event of the commencement of a bankruptcy proceeding by or against a Party under the Bankruptcy Code or any analogous provision of Applicable Law outside the United States, the other Party shall be entitled to a complete duplicate of (or complete access to, as appropriate) any intellectual property subject to any rights or licenses granted to such other Party under or pursuant to this Agreement and to all embodiments thereof, which, if not already in such other Party’s possession, shall be promptly delivered to (or otherwise made available to, as appropriate) such other Party upon such other Party’s written request.  Any agreements supplemental hereto shall be deemed to be “agreements supplementary to” this Agreement for purposes of Section 365(n) of the Bankruptcy Code or any analogous provision of Applicable Law outside the United States.

 

2.5                               Right of First Negotiation for a Follow-On Product Transaction.  If Kolltan desires to enter into a Follow-On Product Transaction (as defined below) with respect to any Follow-On Product, Kolltan shall provide written notice thereof to MedImmune, including a reasonably detailed description of such Follow-On Product and any completed or ongoing Development activities (including a summary of any relevant clinical and non-clinical data) with respect thereto (“Kolltan ROFN Notice”).  MedImmune shall have the right, exercisable by written notice delivered to Kolltan within [**] days after delivery of the Kolltan ROFN Notice (the “MedImmune ROFN Notice”), to trigger its right of first negotiation under this Section 2.5 with respect to such Follow-On Product.  If MedImmune delivers a MedImmune ROFN Notice within such [**] day period, then (a) the Parties shall negotiate in good faith regarding a definitive agreement for a Follow-On Product Transaction with respect to such Follow-On Product until such time (if any) as MedImmune shall discontinue such negotiations, but in no event for longer than [**] days unless the Parties otherwise mutually agree.  During such period, Kolltan shall not negotiate or enter into any agreement with any Third Party for a Follow-On Product Transaction with respect to such Follow-On Product.  If MedImmune does not deliver a MedImmune ROFN Notice within such [**] day period, or if MedImmune delivers a MedImmune ROFN Notice within such [**] day period but the Parties fail to enter into a definitive agreement for a Follow-On Product Transaction with respect to such Follow-On

 

19

 

Product within the applicable negotiation period, then (subject to any restrictions set forth in any provision of this Agreement other than this Section 2.5) Kolltan shall be free to negotiate and enter into an agreement with any Third Party for a Follow-On Product Transaction with respect to such Follow-On Product and (notwithstanding anything the contrary in this Section 2.5) Kolltan shall have no further obligations and MedImmune shall have no further rights under this Section 2.5 with respect to such Follow-On Product.  For clarity, subject to the preceding sentence, in no event shall any Follow-On Product Transaction between Kolltan and a Third Party reduce or otherwise adversely affect any rights of MedImmune or obligations of Kolltan under this Agreement, including Kolltan’s payment obligations pursuant to ARTICLE 6.

 

ARTICLE 3
 DEVELOPMENT AND REGULATORY

 

3.1                               Development.  Subject to the terms and conditions of this Agreement, as between the Parties, Kolltan shall be solely responsible for all costs, activities and decision-making related to the Development of the Licensed Antibody, Licensed Products, Follow-On Antibodies and Follow-On Products in the Field in the Territory.

 

3.2                               Regulatory.  Subject to the terms and conditions of this Agreement, as between the Parties, Kolltan shall be solely responsible for all submissions to and all communications and interactions with Regulatory Authorities with respect to the Licensed Antibody, Licensed Products, Follow-On Antibodies and Follow-On Products.  MedImmune shall not make any submissions to or otherwise communicate or interact with any Regulatory Authority with respect to the Licensed Antibody or any Licensed Product, Follow-On Antibody or Follow-On Product unless Applicable Law requires such action, in which case MedImmune shall, unless prohibited by Applicable Law, (a) as promptly as practicable provide Kolltan with a draft of any proposed submission or communication and (b) consider in good faith any reasonable comments provided in a timely manner by Kolltan with respect to such proposed submission or communication.  MedImmune shall promptly forward to Kolltan (i) any communication received by MedImmune from any Regulatory Authority with respect to the Licensed Antibody, Licensed Products, Follow-On Antibodies or Follow-On Products and (ii) any information received by MedImmune from any Third Party specifically relating to the safety or efficacy of the Licensed Antibody, Licensed Products, Follow-On Antibodies or Follow-On Products.

 

3.3                               Diligence.  Kolltan shall, at its own expense, (a) conduct (i) a Phase 1 Clinical Trial of the Licensed Antibody or a Licensed Product and (ii) a Phase 1b/2a Clinical Trial of the Licensed Antibody or a Licensed Product for at least two indications, and (b) use Commercially Reasonable Efforts to complete any additional clinical trials required for Kolltan to submit a BLA (or ex-US equivalent) to a Regulatory Authority(ies) to obtain Regulatory Approval for at least one Licensed Product in the United States, France, Germany, Italy, Spain and the United Kingdom.  Kolltan shall use Commercially Reasonable Efforts with respect to the Research, Development, Manufacture or Commercialization of any Follow-On Antibody or Follow-On Product; provided, however, that such Commercially Reasonable Efforts shall not operate to impair or adversely affect Kolltan’s obligation to use Commercially Reasonable Efforts in the foregoing subsection (b).

 

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3.4                               Transfer of Know-How and Regulatory Documentation.

 

3.4.1                     Know-How.  Promptly after the Effective Date, MedImmune shall (a) transfer to Kolltan all MedImmune Know-How and MedImmune Additional Know-How described in clause (b) of Section 1.48, including the MedImmune Know-How and MedImmune Additional Know-How described in Exhibit 3.4.1, including any data or study reports generated since the filing of the Existing IND (provided, however, that MedImmune shall not have any obligation under this Section 3.4.1 to prepare or finalize any study reports), and (b) disclose to Kolltan all MedImmune Know-How and MedImmune Additional Know-How other than MedImmune Know-How and MedImmune Additional Know-How transferred pursuant to clause (a) above.  Such transfers and disclosures shall be made (x) in any manner or form reasonably requested by Kolltan (provided, however, that any data generated since the filing of the Existing IND shall be transferred in the form in which such data exists as of the Effective Date) and (y) at MedImmune’s expense.

 

3.4.2                     Research Programs.  Without limiting Section 3.4.1, upon the completion or other termination of any Research Program, MedImmune shall, at its own expense, transfer and/or disclose to Kolltan all Know-How developed under such Research Program that is Controlled by MedImmune.  Such transfers and disclosures shall be made (a) in any manner or form reasonably requested by Kolltan (provided, however, that any data included in such Know-How shall be transferred in the form in which MedImmune has collected or maintained such data prior to such transfer) and (b) at MedImmune’s expense.

 

3.4.3                     Regulatory Documentation.  MedImmune hereby assigns to Kolltan all of MedImmune’s right, title and interest in and to any Regulatory Documentation relating to the Licensed Antibody or Licensed Products Controlled by MedImmune as of the Effective Date, including the Existing IND.  Promptly after the Effective Date, MedImmune shall (a) transfer and/or disclose to Kolltan all such Regulatory Documentation and (b) provide Kolltan with an executed copy of a letter notifying the FDA of the assignment of the Existing IND to Kolltan.  MedImmune shall submit such assignment letter to the FDA as soon as reasonably possible following the Effective Date and shall promptly notify Kolltan of MedImmune’s correspondence with the FDA with respect to such assignment.  Promptly (but in no event more than [**] Business Days) thereafter, Kolltan shall submit to the FDA its acceptance of such transfer and provide MedImmune with written notice of such acceptance.  The transfers and disclosures described in clause (a) above shall be made (x) in any manner or form reasonably requested by Kolltan and (y) at MedImmune’s expense; provided, however, if at Kolltan’s request any such transfer or disclosure is made in any manner or form that is not reasonably standard in the biopharmaceutical industry for transfers or disclosures of a similar kind, such transfer or disclosure shall be made at Kolltan’s expense.

 

3.5                               Cooperation.

 

3.5.1                     Assistance.  Without limiting any other obligations of MedImmune under this Agreement, MedImmune shall, at its own expense, for a period of [**] months following the completion of the transfers, disclosures and assignments described in Section 3.4, use reasonable efforts to provide Kolltan with information or assistance reasonably requested by Kolltan in relation to the Know-How and Regulatory Documentation transferred, disclosed or assigned pursuant to Section 3.4 to ensure an expeditious transition of the applicable Research and Development activities.  Such information and assistance shall not exceed (a) [**].  Following

 

21

 

such [**] month period, if requested by Kolltan, the Parties shall discuss in good faith the possibility of entering into a consulting agreement pursuant to which MedImmune would provide additional information and assistance to Kolltan at Kolltan’s expense.

 

3.5.2                     Information.

 

(a)                                 Every [**] months or otherwise upon reasonable request of MedImmune from time to time, Kolltan shall provide a reasonably detailed written update to MedImmune regarding Kolltan’s Development activities hereunder with respect to the Licensed Antibody and Licensed Products; provided, however, that (i) Kolltan shall not be required to provide more than [**] such written updates in any Calendar Year, and (ii) from and after the date on which the provisions of Sections 5.3 and 5.4 are of no further force or effect in accordance with Section 5.2.1(b), or MedImmune has no further rights under ARTICLE 5 in accordance with Section 5.4.3(b) (the “Option Termination Date”), Kolltan shall not be required to provide more than [**] in any Calendar Year.

 

(b)                                 Every [**] months or otherwise upon reasonable request of MedImmune from time to time, Kolltan shall provide a reasonably detailed written update to MedImmune regarding Kolltan’s Development activities hereunder with respect to Follow-On Antibodies and Follow-On Products; provided, however, that (i) Kolltan shall not be required to provide more than [**] such written updates in any Calendar Year, and (ii) for any Follow-On Product, from and after the date on which MedImmune has no further rights under Section 2.5 with respect to such Follow-On Product, Kolltan shall not be required to provide more than [**] with respect to such Follow-On Product in any Calendar Year.

 

3.6                               Inventory; Supply.

 

3.6.1                     Assignment of Inventory.  MedImmune hereby assigns to Kolltan all of MedImmune’s right, title, interest and risk of loss in and to all quantities in the possession or under the control of MedImmune as of the Effective Date of the Licensed Antibody and Licensed Product (“Inventory”) and the materials used in the production of the Licensed Antibody and Licensed Product (“Materials”) , which quantities of Inventory and Materials are (except in the case of certain types of Materials) set forth in Exhibit 3.6.1.  The foregoing sentence notwithstanding, MedImmune may retain reference samples of Inventory and Materials.

 

3.6.2                     Storage, Filling and Delivery of Inventory.

 

(a)                                 MedImmune shall store, formulate, fill and deliver Inventory and Materials as described in Exhibit 3.6.2(a) and shall:

 

(i)                                     store the Inventory and Materials in accordance with Applicable Law and the applicable specifications set forth in Exhibit 3.6.2(a)(i) and use at least the same level of care in storing the Inventory and Materials as MedImmune uses in storing its own inventory of similar products, but no less than industry standard level of care;

 

(ii)                                  conduct stability testing of the Inventory in accordance with Applicable Law;

 

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(iii)                               upon the written request of Kolltan from time to time, (x) fill, finish and prepare for shipment, in accordance with Applicable Law and the specifications set forth in Exhibit 3.6.2(a), specified quantities of the Inventory, (y) prepare for shipment, in accordance with Applicable Law and the specifications set forth in Exhibit 3.6.2(a), specified quantities of the Materials, and (z) deliver such quantities of Inventory and Materials to Kolltan or any Third Party designated by Kolltan FCA MedImmune’s facility (Incoterms 2010), in each case ((x), (y) and (z)) in accordance with reasonable written instructions provided by Kolltan, including as to timing and manner of delivery; provided, however, that (1) with respect to any quantity of Inventory that is, as of the date of Kolltan’s request, in vialed form, MedImmune shall not be required to deliver such quantity to Kolltan or its designee in less than [**] months from the date of such request, and (2) with respect to any quantity of Inventory that is, as of the date of Kolltan’s request, not in vialed form, MedImmune shall not be required to deliver such quantity to Kolltan or its designee in less than [**] months from the date of such request; and

 

(iv)                              maintain appropriate property insurance coverage for losses arising from MedImmune’s failure to exercise due care over the Inventory and Materials, for as long as, and to the extent that, the Inventory and Materials remain at MedImmune’s facility; provided, however, that MedImmune’s obligation under this clause (iv) shall terminate with respect to any quantity of the Inventory or Materials upon delivery of such quantity to the shipping carrier designated by Kolltan in accordance with clause (iii) above.

 

(b)                                 MedImmune shall notify Kolltan promptly after (i) discovering that any quantity of Inventory or Materials has not been Manufactured, stored or maintained in accordance with Applicable Law or any applicable specifications or is otherwise not in a condition reasonably suitable for use by Kolltan in conducting its Research and Development activities hereunder or (ii) determining that it is unable, or reasonably expects to be unable, to comply with any of its obligations under Section 3.6.2(a).  MedImmune shall not transfer or otherwise dispose of any quantity of Licensed Antibody or Licensed Product from the Inventory except in accordance with Applicable Law, MedImmune’s standard practices and policies (to the extent previously disclosed to Kolltan) and Kolltan’s reasonable written instructions.

 

(c)                                  MedImmune hereby represents and warrants that:

 

(i)                                     the Inventory was Manufactured in accordance with Applicable Law and the applicable product specifications set forth in Exhibit 3.6.2(c)(i), which Exhibit includes specifications for drug product and unformulated drug substance, as well as the justification of specifications for drug product (which in turn references a Guideline for Release Specifications for Monoclonal Antibodies (DEV000 GB 0049 ED 002), a copy of which was provided to Kolltan);

 

(ii)                                  as of the date on which any quantity of the Inventory or Materials is delivered to Kolltan or its designee hereunder, such quantity will have been stored and maintained in accordance with Applicable Law and the applicable storage specifications set forth in Exhibit 3.6.2(a)(i); and

 

(iii)                               as of the Effective Date, stability testing of the Inventory has been conducted in accordance with Applicable Law;

 

23

 

(iv)                              as of the date of the last stability testing of the Inventory conducted prior to the Effective Date, the Inventory conformed to the applicable product specifications set forth in Exhibit 3.6.2(c)(i).

 

Except as expressly set forth in this Agreement, MedImmune makes no, and hereby disclaims all, other representations and warranties whatsoever concerning the Inventory and Materials, including any and all implied warranties of merchantability, fitness for a particular purpose and against infringement.

 

3.6.3                     Clinical and Research Supply of Licensed Antibody and Licensed Products.

 

(a)                                 Within [**] days after the Effective Date, the Parties shall commence good faith negotiations regarding a supply agreement pursuant to which MedImmune would supply to Kolltan, and Kolltan would purchase from MedImmune at rates not materially different from those charged by Third Party contract manufacturers, additional quantities of the Licensed Antibody and Licensed Products for use by Kolltan in conducting Research and Development activities with respect to the Licensed Program and the Follow-On Program, all in accordance with the principles set forth in Exhibit 3.6.3(a) (the “Clinical and Research Supply Agreement”).

 

(b)                                 If (i) the Parties fail to enter into the Clinical and Research Supply Agreement within [**] days after the commencement of negotiations pursuant to Section 3.6.3(a) (or such longer period as may be agreed by the Parties), or (ii) the Clinical and Research Supply Agreement is entered into by the Parties but is terminated for any reason other than breach by Kolltan, then upon Kolltan’s written request and subject to MedImmune’s good faith consent as described below, MedImmune shall (x) transfer and/or disclose to Kolltan or any Qualified Contract Manufacturer designated in good faith by Kolltan such MedImmune Manufacturing Know-How and (y) provide to Kolltan or such Qualified Contract Manufacturer such technical assistance, in each case ((x) and (y)) as reasonably required for Kolltan or such Qualified Contract Manufacturer to Manufacture the Licensed Antibody and Licensed Products for use in Kolltan’s Research and Development activities hereunder.  The foregoing sentence notwithstanding, except as set forth in Section 3.6.5 below, MedImmune has no obligation to disclose to Kolltan or any Qualified Contract Manufacturer the MedImmune Manufacturing Know How related to MedImmune proprietary cell culture media and nutrient feeds used in the Manufacturing process.  Kolltan acknowledges and agrees that any transfer and/or disclosure by Kolltan of any MedImmune Manufacturing Know-How described in the immediately preceding sentence to a Third Party shall require the prior written consent of MedImmune; provided, however, that (A) MedImmune shall not unreasonably withhold such consent and (B) MedImmune’s determination as to whether to provide such consent shall be made in good faith.  The transfers and disclosures described in clause (x) above shall be made (1) in any manner or form reasonably requested by Kolltan and (2) at MedImmune’s expense; provided, however, if at Kolltan’s request any such transfer or disclosure is made in any manner or form that is not reasonably standard in the biopharmaceutical industry for transfers or disclosures of a similar kind, such transfer or disclosure shall be made at Kolltan’s expense.  The assistance described in clause (y) above shall be provided at MedImmune’s expense, provided, however, that the scope

 

24

 

of such assistance will be limited to reasonable and customary assistance related to technology transfer under similar circumstances in the biologics industry.

 

3.6.4                     Commercial Supply.  After the Option Termination Date:

 

(a)                                 if requested by Kolltan, the Parties shall undertake good faith negotiations regarding a commercial supply agreement pursuant to which MedImmune would supply to Kolltan, and Kolltan would purchase from MedImmune, quantities of the Licensed Antibody or Licensed Product, in any of its forms, for use by Kolltan, for commercial sale (“Commercial Supply Agreement”); and

 

(b)                                 if (i) for any reason the Parties have not entered into the Commercial Supply Agreement (including if Kolltan has not requested that the Parties undertake negotiations with respect to thereto pursuant to Section 3.6.4(a)) or (ii) the Commercial Supply Agreement is entered into by the Parties but expires or is terminated for any reason other than breach by Kolltan, without limitation of any other rights that may be available to Kolltan, upon Kolltan’s written request and subject to MedImmune’s good faith consent as described below, MedImmune shall (x) transfer and/or disclose to Kolltan or any Qualified Contract Manufacturer designated in good faith by Kolltan such MedImmune Manufacturing Know-How and (y) provide to Kolltan or such Qualified Contract Manufacturer such technical assistance, in each case ((x) and (y)) as reasonably required for Kolltan or such Qualified Contract Manufacturer to Manufacture the Licensed Antibody and Licensed Products for use in Kolltan’s Commercialization activities hereunder.  The foregoing sentence notwithstanding, except as set forth in Section 3.6.5 below, MedImmune has no obligation to disclose to Kolltan or any Qualified Contract Manufacturer the MedImmune Manufacturing Know How related to MedImmune proprietary cell culture media and nutrient feeds used in the Manufacturing process.  Kolltan acknowledges and agrees that any transfer and/or disclosure by Kolltan of any MedImmune Manufacturing Know-How described in the immediately preceding sentence to a Third Party shall require the prior written consent of MedImmune; provided, however, that (A) MedImmune shall not unreasonably withhold such consent and (B) MedImmune’s determination as to whether to provide such consent shall be made in good faith.  The transfers and disclosures described in clause (x) above shall be made (1) in any manner or form reasonably requested by Kolltan and (2) at MedImmune’s expense; provided, however, if at Kolltan’s request any such transfer or disclosure is made in any manner or form that is not reasonably standard in the biopharmaceutical industry for transfers or disclosures of a similar kind, such transfer or disclosure shall be made at Kolltan’s expense.  The assistance described in clause (y) above shall be provided at MedImmune’s expense, provided, however, that the scope of such assistance will be limited to reasonable and customary assistance related to technology transfer under similar circumstances in the biologics industry.

 

3.6.5                     Supply of Media.  In each instance where MedImmune transfers MedImmune Manufacturing Know-How to Kolltan or a Qualified Contract Manufacturer pursuant to this Section 3.6, for a period of [**] months after the completion of such transfer, MedImmune shall sell to Kolltan, at MedImmune’s standard cost, such quantities of MedImmune’s proprietary cell culture media and nutrient feeds used in the Manufacture of the Licensed Antibody as may be reasonably requested by Kolltan in connection with the Manufacture by Kolltan or such Qualified Contract Manufacturer of the Licensed Antibody or

 

25

 

Licensed Products. Kolltan shall not reverse engineer, or have a third party reverse engineer, MedImmune’s proprietary cell culture media and nutrient feeds.

 

ARTICLE 4
 COMMERCIALIZATION

 

4.1                               In General.  Subject to the terms and conditions of this Agreement, as between the Parties, Kolltan shall be solely responsible for all costs, activities and decision-making related to the Commercialization of Licensed Products and Follow-On Products in the Field in the Territory.

 

4.2                               Trademarks.  Kolltan, its Affiliates and Sublicensees shall select the trademarks under which to market Licensed Products and Follow-On Products, which trademarks shall not contain the word “MedImmune” or be identical to or likely to cause confusion with the MEDIMMUNE trademark or any trademark for any pharmaceutical product of MedImmune or any of its Affiliates.

 

4.3                               Standards of Conduct.  Kolltan shall in all respects comply with all Applicable Law and applicable guidelines concerning the advertising, sales and marketing of prescription drug products in Commercializing Licensed Products and Follow-On Products under this Agreement.

 

ARTICLE 5
 OPTION RIGHTS

 

5.1                               Delivery of Data.

 

5.1.1                     Upon receipt and review by Kolltan of a validated data set (including the full data set) from the clinical trial database for any Phase 1b/2a Clinical Trial of the Licensed Antibody or a Licensed Product, which data set comprises the clinical trial data for a cohort of not less than [**] patients (or, if less, the number of remaining enrolled patients in such Phase 1b/2a Clinical Trial), and which data Kolltan has not previously delivered to MedImmune, Kolltan shall promptly deliver such data to MedImmune.

 

5.1.2                     Together with its delivery of any data set pursuant to Section 5.1.1, Kolltan shall (to the extent it has not already done so) deliver to MedImmune all data in Kolltan’s possession as of the date of such delivery that is contained in the clinical trial database for any Phase 1 Clinical Trial of the Licensed Antibody or a Licensed Product.

 

5.1.3                     Together with its delivery of any data set pursuant to Section 5.1.1 and the data pursuant to Section 5.1.2, Kolltan shall (to the extent it has not already done so) deliver to MedImmune all non-clinical and/or Development data and information in Kolltan’s possession as of the date of such delivery that (a) was generated by Kolltan’s Research, Development or Manufacturing activities with respect to the Licensed Antibody or Licensed Products hereunder and (b) is likely to be useful to MedImmune’s determination to deliver a Trigger Notice pursuant to Section 5.2.1 or Exercise Notice pursuant to Section 5.3.1, including any such pharmacokinetic data, pharmacodynamics data, biomarker data and genetic or epigenetic characterization of patients.

 

26

 

5.1.4                     After the Data Package Delivery Date, if Kolltan comes into possession of any data or information that Kolltan would have been required to deliver to MedImmune under Section 5.1.2 or 5.1.3 if such data or information had been in Kolltan’s possession as of the Data Package Delivery Date, or if MedImmune reasonably requests any other information related to the data and information described in Section 5.1.1, 5.1.2 or 5.1.3 or the foregoing clause of this Section 5.1.4, Kolltan shall promptly deliver such data or information to MedImmune.

 

5.2                               Trigger Period; Determination of Product Acquisition Price.

 

5.2.1                     Trigger Period.

 

(a)                                 From time to time between (i) the date on which Kolltan delivers the first data summary to MedImmune pursuant to Section 5.1.1 and (ii) the earlier of (x) [**] Business Days after the Data Package Delivery Date and (y) December 31, 2017 (the “Trigger Period”), MedImmune shall have the right, exercisable by written notice to Kolltan (a “Trigger Notice”), to trigger a determination of the Product Acquisition Price in accordance with Section 5.2.2.  For clarity, MedImmune shall have the right to deliver multiple Trigger Notices during the Trigger Period; provided, however, that subject to Section 5.3.2, after MedImmune has delivered any Trigger Notice, it shall not deliver a subsequent Trigger Notice unless and until MedImmune revokes such earlier Trigger Notice in writing (provided, however, that MedImmune shall not be entitled to revoke any Trigger Notice after the Parties have received notice of the applicable Product FMV pursuant to Section 5.2.2(a)) or the Option Period with respect to such earlier Trigger Notice expires without MedImmune’s having delivered an Exercise Notice.

 

(b)                                 If (i) MedImmune does not deliver a Trigger Notice to Kolltan prior to the expiration of the Trigger Period, (ii) as of the expiration of the Trigger Period, the Option Period with respect to any Trigger Notices previously delivered by MedImmune has expired without MedImmune’s having delivered an Exercise Notice, or (iii) any Option Period that has not expired as of the expiration of the Trigger Period expires without MedImmune’s having delivered an Exercise Notice, then the provisions of Sections 5.3 and 5.4 shall be of no further force or effect.  If MedImmune provides written notice to Kolltan during the Trigger Period that MedImmune declines to deliver any further Trigger Notices, then the provisions of Sections 5.3, 5.4 and 5.5 shall be of no further force or effect.

 

5.2.2                     Determination of Product Acquisition Price.

 

(a)                                 In the event MedImmune delivers a Trigger Notice to Kolltan prior to the expiration of the Trigger Period, the Parties shall obtain a determination of the Product FMV as of the date on which such Trigger Notice was delivered, in accordance with this Section 5.2.2(a).  Within [**] Business Days after MedImmune’s delivery of any Trigger Notice (the “Selection Period”), each Party shall select an independent expert suitably qualified to determine the applicable Product FMV, who, at a minimum, shall have expertise in the valuation of development-stage biological oncology products (each, an “Expert”), and the two Experts thereby selected shall, as promptly as practicable, select a third Expert (such three Experts, collectively, the “Panel”).  As soon as practicable after the selection of the Panel, the Parties shall meet with the Panel in order to agree upon a process for delivering to the Panel such

 

27

 

information in the Parties’ possession as the Panel may request in connection with the determination of the applicable Product FMV, which delivery shall be completed no later than [**] Business Days after such initial meeting with the Panel (the “Information Delivery Period”).  The Parties shall use reasonable efforts to cause the Panel to determine the applicable Product FMV and provide written notice to the Parties thereof within [**] Business Days after expiration of the Information Delivery Period (or, if the Panel is unable to comply with such timing, as promptly thereafter as practicable).  The Panel’s determination of applicable Product FMV shall be based on the agreement of a majority of the Panel members.  Subject to Section 5.3.2, the determination of the Panel shall be binding on the Parties.  Each Party shall bear its own costs and expenses with respect to the determination of the applicable Product FMV.  Subject to Section 5.3.2, the reasonable costs and expenses of the Panel shall be borne by MedImmune.

 

(b)                                 Within [**] Business Days after the Parties receive notice of the applicable Product FMV pursuant to Section 5.2.2(a), Kolltan shall provide written notice to MedImmune of (i) Kolltan’s good faith estimate of the Kolltan Development Costs as of the end of the calendar month immediately preceding the date of the applicable Trigger Notice, (ii) Kolltan’s good faith estimate of the Kolltan Development Costs for the [**] month period immediately following the period covered by estimate described in clause (i) above, and (iii) the Product Acquisition Price, on the assumption that the Kolltan Development Costs as of the end of the calendar month immediately preceding the calendar month in which the applicable payment is made in accordance with this Agreement will be equal to the sum of the estimates described in clauses (i) and (ii) above (the “Product Acquisition Price Notice”), and shall include reasonable supporting documentation.

 

5.3                               Option Period; New Determination of Product Acquisition Price.

 

5.3.1                     Option Period.

 

(a)                                 If, within [**] Business Days after delivery of any Product Acquisition Price Notice, MedImmune reasonably requests any additional supporting documentation relating to Kolltan’s estimates of the Kolltan Development Costs included therein, Kolltan shall provide such additional supporting documentation to MedImmune within [**] Business Days after the date of such request.  For a period of [**] Business Days after the expiration of the [**] Business Day period described in the preceding sentence (or, if applicable, the date on which Kolltan satisfies its obligation under the preceding sentence to provide additional supporting documentation), (i) the Parties shall engage in informal, nonbinding discussions regarding their respective interests with respect to their rights and obligations under this Section 5.3 and Section 5.4 with respect to such Product Acquisition Price Notice and (ii) within [**] Business Days after the conclusion of such [**] Business Day period (each, an “Option Period”), MedImmune shall have the option, exercisable by written notice to Kolltan (each, an “Exercise Notice”), to trigger the rights and obligations of the Parties under Section 5.4 with respect to such Product Acquisition Price Notice.

 

(b)                                 If MedImmune does not deliver an Exercise Notice to Kolltan prior to the expiration of an Option Period, then the Parties shall have no further rights or obligations under Section 5.4 with respect to the applicable Product Acquisition Price Notice.  If MedImmune provides written notice to Kolltan during an Option Period that MedImmune

 

28

 

declines to provide an Exercise Notice during such Option Period, then such Option Period shall be deemed expired and the Parties shall have no further rights or obligations under Section 5.4 with respect to the applicable Product Acquisition Price Notice.

 

5.3.2                     New Determination of Product Acquisition Price.  Notwithstanding anything to the contrary in Section 5.2, if at any time after the delivery by the Parties of information to the Panel pursuant to Section 5.2.2(a) and prior to the expiration of the applicable Option Period or, if MedImmune delivers an Exercise Notice to Kolltan prior to the expiration of the applicable Option Period, during any period for any election or rejection by a Party under Section 5.4.1 or 5.4.2, Kolltan receives additional data from (i) any Phase 1 Clinical Trial of the Licensed Antibody or any Licensed Product, (ii) any Phase 1b/2a Clinical Trial of the Licensed Antibody or a Licensed Product or (iii) any non-clinical studies or Development activities with respect to the Licensed Antibody or Licensed Products that would, in the case of any of (i), (ii) or (iii), likely have materially affected the determination of the Product FMV, (a) Kolltan shall promptly deliver such data to MedImmune (regardless of whether Kolltan would otherwise be required to deliver such data to MedImmune pursuant to Section 5.1) and (b) for a period of [**] Business Days after the date of such delivery, either Party shall have the right, exercisable by written notice to the other Party, to trigger a new determination of the Product Acquisition Price, factoring in such new information.  If either Party exercises its right under clause (b) above, unless otherwise agreed by the Parties, (w) ongoing activities (if any) to determine the Product Acquisition Price shall terminate, (x) the current Option Period (if any) shall be deemed expired without MedImmune’s having delivered an Exercise Notice, (y) the Parties shall have no further rights or obligations under Section 5.4 with respect to any Product Acquisition Price Notice delivered prior such Party’s exercise of its right under clause (b) above, and (z) a new determination of the Product FMV and the Product Acquisition Price shall be made in accordance with the provisions of Section 5.2.2 (which shall again trigger the applicable provisions of this Section 5.3 and Section 5.4); provided, however, that the costs and expenses of the Panel for such new determination shall be borne by the Party that exercised its right under clause (b) above.

 

5.4                               Kolltan Election; MedImmune Rights.

 

5.4.1                     Kolltan Election.  In the event MedImmune delivers an Exercise Notice in accordance with Section 5.3.1(a) with respect to any Product Acquisition Price Notice, Kolltan shall elect, in its sole discretion, by written notice to MedImmune delivered within [**]Business Days after MedImmune’s delivery of such Exercise Notice (the “Election Notice”), one of the following:

 

(a)                                 to terminate this Agreement with respect to the Licensed Program, subject to MedImmune’s payment to Kolltan of an amount equal to the Product Acquisition Price, in which case the provisions of Section 5.4.3(a) shall apply;

 

(b)                                 subject to MedImmune’s rights under Section 5.4.2(a), to terminate all further rights of MedImmune under this ARTICLE 5, subject to Kolltan’s payment to MedImmune of an amount equal to the greater of (i) fifty percent (50%) of the difference between (A) the Product Acquisition Price and (B) the sum of (x) the Kolltan Development Costs as of the end of the calendar month immediately preceding the calendar month in which

 

29

 

the applicable payment is made and (y) Eight Million Dollars ($8,000,000) (the amount described in this clause (i), the “Co-Agreement Amount”) and (ii) Twenty Million Dollars ($20,000,000) (the greater of the amounts described in clauses (i) and (ii), the “Buyout Amount”); or

 

(c)                                  subject to MedImmune’s rights under Section 5.4.2(b), to require the Parties to enter into a co-development and co-commercialization agreement (the “Co-Development and Co-Commercialization Agreement”) in accordance with the terms set forth on Exhibit 5.4.1(c) (the “Co-Development and Co-Commercialization Agreement Terms”).

 

Together with any Election Notice, Kolltan shall provide to MedImmune its then-current good faith estimate, for each potentially applicable scenario described in Section 5.4.3, of the Kolltan Development Costs as of the end of the calendar month immediately preceding the calendar month in which the applicable payment will be made by Kolltan or MedImmune as well as a good faith estimate of the Kolltan Development Costs for the [**] month period following delivery of the Election Notice, together with reasonable supporting documentation.  Kolltan shall provide MedImmune with monthly written updates to such estimates during any period in which the MedImmune is exercising its rights under Section 5.4.2 or the Parties are negotiating the Co-Development and Co-Commercialization Agreement under Section 5.4.3(c) or 5.4.3(d).

 

5.4.2                     MedImmune Rights.  In the event MedImmune delivers an Exercise Notice in accordance with Section 5.3.1(a):

 

(a)                                 in the event Kolltan, pursuant to the Election Notice, makes an election under Section 5.4.1(b), MedImmune shall have the right, in its sole discretion, exercisable by written notice to Kolltan delivered within [**] Business Days after Kolltan delivers the Election Notice to MedImmune, to reject Kolltan’s election, in which case the provisions of Section 5.4.3(c) shall apply; provided, however, that if MedImmune fails to deliver such a rejection notice within such time period, the provisions of Section 5.4.3(b) shall apply; and

 

(b)                                 in the event Kolltan, pursuant to the Election Notice, makes an election under Section 5.4.1(c), MedImmune shall have the right, in its sole discretion, exercisable by written notice to Kolltan delivered within [**] Business Days after Kolltan delivers the Election Notice to MedImmune, to reject Kolltan’s election, in which case Kolltan shall elect, in its sole discretion, by written notice to MedImmune delivered within [**] Business Days after delivery of such rejection notice by MedImmune, either (i) to terminate this Agreement with respect to the Licensed Program, subject to MedImmune’s payment to Kolltan of an amount equal to the Product Acquisition Price, in which case the provisions of Section 5.4.3(a) shall apply, or (ii) to terminate all further options of MedImmune under this ARTICLE 5, subject to Kolltan’s payment of the Buyout Amount to MedImmune, in which case the provisions of Section 5.4.3(b) shall apply; provided, however, that if MedImmune fails to deliver such a rejection notice within such time period, the provisions of Section 5.4.3(d) shall apply.

 

30

 

5.4.3                     Effect of Elections and Rights.

 

(a)                                 In the event Kolltan (i) pursuant to the Election Notice, makes an election under Section 5.4.1(a) or (ii) after receiving a rejection notice by MedImmune pursuant to Section 5.4.2(b), makes an election under clause (i) of Section 5.4.2(b), then (x) this Agreement shall terminate with respect to the Licensed Program thirty (30) days after such election is made and (y) MedImmune shall pay to Kolltan an amount equal to the Product Acquisition Price within [**] days after receipt of the corresponding invoice from Kolltan.

 

(b)                                 In the event Kolltan (i) pursuant to the Election Notice, makes an election under Section 5.4.1(b) that is not rejected by MedImmune pursuant to Section 5.4.2(a) or (ii) after receiving a rejection notice pursuant to Section 5.4.2(b), makes an election under clause (ii) of Section 5.4.2(b), then (x) this Agreement shall remain in effect in its entirety, including with respect to the Licensed Program (though MedImmune shall have no further rights under this ARTICLE 5 other than as set forth in this sentence), and (y) Kolltan shall pay the Buyout Amount to MedImmune within [**] days after receipt of the corresponding invoice from MedImmune.

 

(c)                                  In the event Kolltan, pursuant to the Election Notice, makes an election under Section 5.4.1(b) that is rejected by MedImmune pursuant to Section 5.4.2(a), then (i) the Parties shall enter into the Co-Development and Co-Commercialization Agreement in accordance with the Co-Development and Co-Commercialization Agreement Terms, as promptly as practicable after such election is made, subject to Section 5.4.3(e), and (ii) effective upon the effective date of the Co-Development and Co-Commercialization Agreement, this Agreement shall terminate with respect to the Licensed Program in accordance with Section 11.5.

 

(d)                                 In the event Kolltan, pursuant to the Election Notice, makes an election under Section 5.4.1(c) that is not rejected by MedImmune pursuant to Section 5.4.2(b), then (i) the Parties shall enter into the Co-Development and Co-Commercialization Agreement in accordance with the Co-Development and Co-Commercialization Agreement Terms, as promptly as practicable after such election is made, subject to Section 5.4.3(e), and (ii) effective upon the effective date of the Co-Development and Co-Commercialization Agreement, this Agreement shall terminate with respect to the Licensed Program in accordance with Section 11.5.

 

(e)                                  Notwithstanding anything in this Agreement to the contrary, in the event the Parties are required to enter into the Co-Development and Co-Commercialization Agreement pursuant to Section 5.4.3(c) or 5.4.3(d) but, for any reason, fail to do so within [**] days after Kolltan’s delivery of the applicable Election Notice, unless the Parties otherwise mutually agree, either Party may refer the matter to the Executive Officers for attempted resolution pursuant to the provisions of Section 12.1.  In the event that the Executive Officers are not able to resolve within the Resolution Period any issues referred to them by a Party pursuant to this Section 5.4.3(e), then:

 

(i)                                     Kolltan shall conduct an auction, in a manner reasonably customary in the industry, for the grant to a Third Party of exclusive rights (including with respect to Kolltan and MedImmune) to the Licensed Program, including (x) license and sublicense grants as appropriate from Kolltan and MedImmune and (y) transfer by MedImmune of MedImmune Manufacturing Know-How to such Third Party or its designee as necessary to enable the Manufacture of the Licensed Antibody and Licensed Products, which transfer

 

31

 

obligation shall be analogous to the transfer obligations described in Section 3.6.3(b) and 3.6.4(b);

 

(ii)                                  Kolltan shall determine in good faith the Qualified Bidder that is the preferred bidder and Kolltan shall negotiate, in good faith on behalf of the Parties, the terms of an agreement (the “Auction License Agreement”) with such Qualified Bidder that, subject to the other provisions of clauses (i) through (v) of this Section 5.4.3(e), does not treat either Kolltan or MedImmune preferentially vis-à-vis the other (the “Auction License Agreement”); provided, however, that Kolltan shall (x) reasonably consult with MedImmune with respect to such actions and provide sufficient opportunity for MedImmune to review and comment upon the material terms of such Auction License Agreement, and (y) reasonably incorporate any reasonable comments provided by MedImmune with respect to any provisions of the Auction License Agreement relating to the MedImmune Manufacturing Know-How and otherwise consider in good faith any reasonable comments provided by MedImmune with respect to the Auction License Agreement; and provided, further, that the Auction License Agreement shall provide that the proceeds of any payments to be made by such Third Party with respect to the Licensed Program shall be split evenly between the Parties, subject to the provisions of clause (iv) below;

 

(iii)                               upon the completion of such negotiations, Kolltan and MedImmune shall execute the Auction License Agreement with such Third Party;

 

(iv)                              (x) upon execution of the Auction License Agreement, each Party shall provide the other Party with written notice of the reasonable expenses, including reasonable attorneys’ fees, incurred by such Party in connection with their activities under clauses (i) through (iii) above (along with reasonable supporting documentation as requested by the other Party), and Kolltan or MedImmune, as the case may be, shall make an appropriate reconciling payment to the other so that, after giving effect to such reconciling payment, each Party will have borne fifty percent (50%) of their collective expenses described in this clause (x), and (y) MedImmune’s share of the proceeds of any payments to be made by the applicable Third Party with respect to the Licensed Program shall be paid to Kolltan (whether directly from such Third Party or from MedImmune following its receipt thereof) until such time as Kolltan has received from MedImmune’s share of such proceeds the amount that MedImmune would have been obligated to pay Kolltan under the applicable scenario as an upfront payment under the Co-Development and Co-Commercialization Agreement (as set forth in the “Upfront payment” section of Exhibit 5.4.1(c)); and

 

(v)                                 effective upon the effective date of the Auction License Agreement, this Agreement shall terminate with respect to the Licensed Program in accordance with Section 11.5.

 

5.4.4                     Determination of Kolltan Development Costs.  The amount payable by Kolltan or MedImmune, as applicable, under Section 5.4.3 or pursuant to the Co-Development and Co-Commercialization Agreement shall be based on Kolltan’s good faith estimate, as delivered to MedImmune together with the Election Notice or in the most recent update described in the last sentence of Section 5.4.1, of the Kolltan Development Costs as of the end of the calendar month immediately preceding the calendar month in which the applicable payment

 

32

 

would be made under the applicable scenario (the “Estimated Kolltan Development Costs”); provided, however, that within [**] days after the applicable payment is made, Kolltan shall provide written notice to MedImmune of its final determination of the Kolltan Development Costs as of the end of the calendar month immediately preceding the calendar month in which such payment was made (the “Final Kolltan Development Costs”), together with reasonable supporting documentation.  In the event there was any underpayment or overpayment by the applicable Party based on Kolltan’s final determination, an appropriate reconciling payment shall be made within [**] days after delivery of such notice.  Kolltan’s determination of the Final Kolltan Development Costs shall be subject to MedImmune’s rights as an Auditing Party under Section 6.10; provided, however, that (a) MedImmune’s right to audit the Final Kolltan Development Costs pursuant to this Section 5.4.4 shall be independent of the determination of whether MedImmune has exercised its [**] right as an Auditing Party in any applicable year pursuant to Section 6.10, (b) MedImmune shall pay the full cost of such audit unless (i) the applicable payment made by Kolltan or MedImmune in accordance with Section 5.4.3 was calculated on the basis of the Kolltan Development Costs and (ii) such audit shows that the Final Kolltan Development Costs exceeded [**] percent ([**]%) of the Kolltan Development Costs as of the end of the calendar month immediately preceding the calendar month in which such payment was made, as determined by the auditors (the “Actual Kolltan Development Costs”), in which case Kolltan shall pay the full cost of such audit, and (c) if (i) the applicable payment made by Kolltan or MedImmune in accordance with Section 5.4.3 was calculated on the basis of the Kolltan Development Costs and (ii) such audit shows that the Actual Kolltan Development Costs exceeded [**] percent ([**]%) of the Estimated Kolltan Development Costs, then Kolltan shall be solely responsible for such excess costs; provided, however, that for purposes of this clause (c), Actual Kolltan Development Costs excludes any Kolltan Development Costs incurred in any calendar month after the calendar month that Kolltan projected (for purposes of the Estimated Kolltan Development Costs calculation) to be the calendar month immediately preceding the calendar month in which the applicable payment would be made under the applicable scenario under Section 5.4.3 or pursuant to the Co-Development and Co-Commercialization Agreement, to the extent such payment was actually made in a later calendar month due to (x) the actual time required for the negotiation of the Co-Development and Co-Commercialization Agreement or (y) any delay caused by MedImmune.

 

5.5                               Restriction.  Prior to and during the Trigger Period and any Option Period, Kolltan shall not initiate discussions with any Third Party regarding, or consummate, any Third Party Transaction.  “Third Party Transaction” means any acquisition by a Third Party of, or the grant of any license or sublicense to a Third Party under, Kolltan’s rights to Research, Develop, Manufacture, or Commercialize the Licensed Antibody or Licensed Products; provided, however, that any transaction that does not conflict with MedImmune’s rights under Section 5.4, including any Kolltan Sale or Financing or any assignment or deemed assignment of this Agreement by Kolltan in connection with a Kolltan Sale or Financing, shall not be deemed a Third Party Transaction.

 

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ARTICLE 6
 PAYMENTS

 

6.1          Upfront Fee.  Kolltan shall pay MedImmune a non-refundable, non-creditable payment of Four Million Dollars ($4,000,000) within [**] days after the Effective Date (the “Upfront Fee”).

 

6.2          Development Milestones.

 

6.2.1       Development Milestones.  For each milestone event set forth in the following table, Kolltan shall pay the corresponding non-refundable, non-creditable amount solely for the first achievement thereof (regardless of the number of times such milestone event is achieved) by Kolltan or its Affiliates or Sublicensees:

 

	
Milestone Event
    	
 
    	
Payment Amount
    
	
 
    	
 
    	
 
    
	
(a)
    	
[**]
    	
 
    	
[**]
    
	
(b)
    	
[**]
    	
 
    	
[**]
    
	
(c)
    	
[**]
    	
 
    	
[**]
    
	
(d)
    	
[**]
    	
 
    	
[**]
    
	
(e)
    	
[**]
    	
 
    	
[**]
    
	
(f)
    	
[**]
    	
 
    	
[**]
    
	
(g)
    	
[**]
    	
 
    	
[**]
    
	
(h)
    	
[**]
    	
 
    	
[**]
    
	
(i)
    	
[**]
    	
 
    	
[**]
    

 

6.2.2       Notification; Payment.  Kolltan shall notify MedImmune in writing promptly, and in no event beyond [**] days, after a milestone event described in Section 6.2.1 has been achieved, and the corresponding milestone payment shall be due within [**] days after receipt of the corresponding invoice from MedImmune.

 

6.2.3       Milestones for Non-Major Indications.  Notwithstanding anything to the contrary herein, in the event that Kolltan achieves Annual Net Sales of at least [**] Dollars ($[**]) for any Licensed Product for an indication not considered to be a Major Indication, then Kolltan shall pay to MedImmune (a) the amount set forth in Section 6.2.1(b) (if such payment has not already been made) or 6.2.1(e) (if the payment set forth in Section 6.2.1(b) has already been made but the payment set forth in Section 6.2.1(e) has not already been made); provided, however, that if the payments set forth in Sections  6.2.1(b) and 6.2.1(e) have both already been made, Kolltan shall not be required to make any additional payments pursuant to this clause (a);

 

34

 

(b) if the First Commercial Sale of such Licensed Product for such indication in the United States has occurred as of the achievement of such level of Annual Net Sales, the amount set forth Section 6.2.1(c) (if such payment has not already been made) or 6.2.1(f) (if the payment set forth in Section 6.2.1(c) has already been made but the payment set forth in Section 6.2.1(f) has not already been made); provided, however, that if the First Commercial Sale of such Licensed Product for such indication in the United States has not occurred as of the achievement of such level of Annual Net Sales , the applicable payment shall be made at such time (if any) as such First Commercial Sale occurs; and provided, further, that if the payments set forth in Sections 6.2.1(c) and 6.2.1(f) have both already been made as of the achievement of such level of Annual Net Sales, Kolltan shall not be required to make any additional payments pursuant to this clause (b); and (c) if the First Commercial Sale of such Licensed Product for such indication in the EU has occurred as of the achievement of such level of Annual Net Sales, the amount set forth Section 6.2.1(d) (if such payment has not already been made) or 6.2.1(g) (if the payment set forth in Section 6.2.1(d) has already been made but the payment set forth in Section 6.2.1(g) has not already been made); provided, however, that if the First Commercial Sale of such Licensed Product for such indication in the EU has not occurred as of the achievement of such level of Annual Net Sales, the applicable payment shall be made at such time (if any) as such First Commercial Sale occurs; and provided, further, that if the payments set forth in Sections 6.2.1(d) and 6.2.1(g) have both already been made as of the achievement of such level of Annual Net Sales, Kolltan shall not be required to make any additional payments pursuant to this clause (c).

 

6.2.4       Follow-On Products.  The foregoing provisions of this Section 6.2 (excluding subsection (a) of Section 6.2.1) shall apply, mutatis mutandis, to Follow-On Products; provided, however, that except for the payments set forth in subsections (h) and (i) of Section 6.2.1, the amounts payable by Kolltan under this Section 6.2 with respect to Follow-On Products shall be [**] percent ([**]%) of the corresponding amounts payable by Kolltan under this Section 6.2 with respect to Licensed Products.

 

6.2.5       Clarification.  For clarity, the maximum aggregate amount payable by Kolltan under this Section 6.2 is (a) with respect to Licensed Products, [**] Dollars ($[**]), and (b) with respect to Follow-On Products, [**] Dollars ($[**]).

 

6.3          Sales Milestones.

 

6.3.1       Sales Milestone Payments.  For each milestone event set forth in the following table, Kolltan shall pay the corresponding non-refundable, non-creditable amount solely for the first achievement thereof (regardless of the number of times such milestone event is achieved):

 

	
Milestone Event
    	
 
    	
Payment Amount
    
	
 
    	
 
    	
 
    
	
(a)
    	
Annual Net Sales of a single Licensed Product in a single Calendar   Year in excess of [**] Dollars ($[**])
    	
 
    	
[**]
    
				

 

35

 

	
(b)
    	
Annual Net Sales of a single Licensed Product in a single Calendar   Year in excess of [**] Dollars ($[**])
    	
 
    	
[**]
    
	
 
    	
 
    	
 
    	
 
    
	
(c)
    	
Annual Net Sales of a single Licensed Product in a single Calendar   Year in excess of [**] Dollars ($[**])
    	
 
    	
[**]
    

 

6.3.2       Payment.  Milestone payments payable under this Section 6.3 shall be paid by Kolltan in accordance with Section 6.6.

 

6.3.3       Follow-On Products.  The foregoing provisions of this Section 6.3 shall apply, mutatis mutandis, to Follow-On Products; provided, however, that the amounts payable by Kolltan under this Section 6.3 with respect to Follow-On Products shall be [**] percent ([**]%) of the corresponding amounts payable by Kolltan under this Section 6.3 with respect to Licensed Products.

 

6.3.4       Clarification.  For clarity, the maximum aggregate amount payable by Kolltan under this Section 6.3 is (a) with respect to Licensed Products, [**] Dollars ($[**]), and (b) with respect to Follow-On Products, [**] Dollars ($[**]).

 

6.4          Royalties.

 

6.4.1       Annual Net Sales.  Subject to Sections 6.4.2 and 6.4.3, for each Licensed Product in any Calendar Year, Kolltan shall pay MedImmune royalties on Annual Net Sales of such Licensed Product in such Calendar Year at the following rates:

 

	
Annual Net Sales Level
    	
 
    	
Rate
    
	
 
    	
 
    	
 
    
	
(a)
    	
On that portion of Annual Net Sales of   such Licensed Product in such Calendar Year that is less than or equal to [**] Dollars ($[**])
    	
 
    	
[**] Percent ([**]%)
    
	
 
    	
 
    	
 
    	
 
    
	
(b)
    	
On that portion of Annual Net Sales of   such Licensed Product in such Calendar Year that is more than [**] Dollars   ($[**]) but less than or equal to [**] ($[**])
    	
 
    	
[**] Percent ([**]%)
    
	
 
    	
 
    	
 
    	
 
    
	
(c) 
    	
On that portion of Annual Net Sales of   such Licensed Product in such Calendar Year that is greater than [**] Dollars   ($[**])
    	
 
    	
[**] Percent ([**]%)
    

 

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6.4.2       MRC Agreement.  In addition to the royalties described in Section 6.4.1, for each Licensed Product, Kolltan shall pay MedImmune a royalty equal to [**] percent ([**]%) of Net Sales of such Licensed Product.  Notwithstanding the foregoing, if for any sale or other transfer for consideration of any Licensed Product by Kolltan or its applicable Affiliate or Sublicensee, MedImmune or its applicable Affiliate is not required to pay royalties under the MRC Agreement, or is required to pay royalties under the MRC Agreement at a rate that is lower than [**] percent ([**]%) of Net Sales of such Licensed Product, then the royalty payable by Kolltan to MedImmune under this Section 6.4.2 with respect to such sale or other transfer for consideration shall be accordingly reduced.  MedImmune shall promptly notify Kolltan of the occurrence of any event or circumstance that would trigger a reduced royalty payment obligation under the previous sentence.

 

6.4.3       Reductions.

 

(a)           Third Party Royalty Reduction.  If Kolltan or its Affiliate or Sublicensee decides in its sole discretion to acquire a license or other rights from any Third Party (other than under any In-Licensed IP) under any Patents or Know-How controlled by such Third Party in order to Research, Develop, Manufacture, or Commercialize the Licensed Antibody or Licensed Products without infringing or misappropriating such Patents or Know-How and, pursuant to the applicable agreement with such Third Party, is required to pay royalties based on sales of a Licensed Product by Kolltan or its applicable Affiliate or Sublicensee in any Calendar Quarter, then the royalties that, but for this Section 6.4.3(a) and Section 6.4.3(b), would be payable by Kolltan to MedImmune with respect to sales of such Licensed Product in such Calendar Quarter shall be reduced by [**] percent ([**]%) of the royalties payable by Kolltan or its applicable Affiliate or Sublicensee under such Third Party agreement with respect to sales of such Licensed Product in such Calendar Quarter; provided, however, that this Section 6.4.3(a) shall not operate to reduce (i) the royalties that, but for this Section 6.4.3(a) and Section 6.4.3(b), would be payable by Kolltan to MedImmune with respect to sales of such Licensed Product in such Calendar Quarter by more than [**] percent ([**]%), or (ii) the royalties payable under Section 6.4.2.

 

(b)           Know-How Only Reduction. If, for any portion of any Calendar Quarter, any Licensed Product sold by Kolltan or its Affiliates or Sublicensees in any country is not Covered by a Valid Claim of an issued MedImmune Patent in such country, then the royalties that, but for this Section 6.4.3(b) (but after giving effect to Section 6.4.3(a)), would be payable by Kolltan to MedImmune with respect to sales of such Licensed Product in such country in such Calendar Quarter shall be reduced by [**] percent ([**]%); provided, however, that this Section 6.4.3(b) shall not operate to reduce the royalties payable under Section 6.4.2.

 

6.4.4       Payments under Certain In-License Agreements.  Each Party shall perform its obligations under Exhibit 6.4.4.

 

6.4.5       Effect of Expiration of Royalty Term.  On a Licensed Product by Licensed Product and country-by-country basis, upon expiration of the Royalty Term for a Licensed Product in a country, the rights, licenses and sublicenses granted to Kolltan hereunder with respect to such Licensed Product in such country shall continue in effect but become fully paid-

 

37

 

up, royalty-free, transferable (to the extent not transferable previously), perpetual and irrevocable.

 

6.4.6       Follow-On Products.  The foregoing provisions of this Section 6.4 (including Exhibit 6.4.4) shall apply, mutatis mutandis, to Follow-On Products; provided, however, that except with respect to the royalties payable pursuant to Section 6.4.2 and the payments described in Exhibit 6.4.4, the amounts payable by Kolltan under this Section 6.4 with respect to Follow-On Products shall be [**] percent ([**]%) of the corresponding amounts payable by Kolltan under this Section 6.4 with respect to Licensed Products.

 

6.5          Healthcare Reform Tax.  Notwithstanding anything herein to the contrary, for purposes of determining the sales milestones and royalties payable by Kolltan under Sections 6.2.4 and 6.4, Kolltan shall have the right to offset from Net Sales of Licensed Products sold in the United States that portion of the annual fee paid by Kolltan and its Affiliates and Sublicensees to the United States Government pursuant to Section 9008 of the Patient Protection and Affordable Care Act, Pub. L. No. 111-148 (as may be amended) reasonably attributable to Licensed Products, as determined in accordance with an equitable method as agreed in good faith by the Parties.  This Section 6.5 shall apply, mutatis mutandis, to Follow-On Products.

 

6.6          Reports; Payments.  Within [**] days after the end of each Calendar Quarter during which there are Net Sales giving rise to a payment obligation under Section 6.2.4 or 6.4, Kolltan shall submit to MedImmune a report identifying for each Licensed Product, the Net Sales of such Licensed Product for each country for such Calendar Quarter, the calculation of royalties (including gross sales and all deductions taken from gross sales), and the sales milestones and royalties payable to MedImmune.  Together with the delivery of each such report, Kolltan shall pay to MedImmune the sales milestones and royalties payable by it under Sections 6.2.4 and 6.4.  This Section 6.6 shall apply, mutatis mutandis, to Follow-On Products.

 

6.7          Methods of Payments.  All payments due under this Agreement shall be paid in Dollars by wire transfer to a bank in the United States designated in writing by MedImmune.  For the purpose of calculating any amounts due under, or otherwise reimbursable pursuant to, this Agreement (including the calculation of Net Sales expressed in currencies other than Dollars), a Party shall convert any amount expressed in a foreign currency into Dollar equivalents using its, its Affiliate’s or Sublicensee’s standard conversion methodology consistent with the Accounting Standards.

 

6.8          Late Payments.  Any amount owed by a Party to the other Party under this Agreement that is not paid on or before the date such payment is due as set forth herein shall bear interest at a rate per annum equal to the lower of (i) [**], or (ii) the highest rate permitted by Applicable Law.

 

6.9          Taxes.

 

6.9.1       Withholding Taxes.  All payments due and payable by a Party (the “Paying Party”) under this Agreement will be made without any deduction or withholding, unless such deduction or withholding tax is required by Applicable Law.  If the Paying Party is so required to deduct or withhold, the Paying Party shall (a) promptly notify the other Party (the

 

38

 

“Non-Paying Party”) of such requirement; (b) remit to the relevant authorities the full amount required to be deducted or withheld promptly upon the earlier of determining that such deduction or withholding is required or receiving notice that such amount has been assessed against the Non-Paying Party; and (c) promptly forward to the Non-Paying Party an official receipt (or certified copy), or other documentation reasonably acceptable to the Non-Paying Party evidencing such payment to such authorities.  Notwithstanding the foregoing, if the Non-Paying Party is entitled under any applicable tax treaty to a reduction of rate of, or the elimination of, or recovery of, the applicable deduction or withholding tax, it may deliver to the Paying Party or the appropriate governmental authority (with the assistance of the Paying Party to the extent that this is reasonably required) the prescribed forms necessary to reduce the deduction or applicable rate of withholding or to relieve the Paying Party of its obligation to deduct or withhold tax, and the Paying Party shall apply the reduced deduction or rate of withholding, or dispense with deduction or withholding, as the case may be, provided that the Paying Party has received evidence of the Non-Paying Party’s delivery of all applicable forms (and, if necessary, its receipt of appropriate governmental authorization).

 

6.9.2       Withholding Taxes Resulting from Withholding Tax Action.  If the Paying Party (or its Affiliates or successors) is required to make a payment to the Non-Paying Party subject to a deduction or withholding of tax, then if such deduction or withholding of tax obligation arises or is increased solely as a result of the assignment or transfer of all or a portion of this Agreement by the Paying Party (or its Affiliates or successors) as a result of which payments arise or are deemed to arise in a territory other than in the United States, or there is a change in the tax residency of the Paying Party (or its Affiliates or successors), or the payments arise or are deemed to arise through a branch of the Paying Party in a territory other than the United States (a “Paying Party Withholding Tax Action”), then notwithstanding any other provision in this Agreement, the payment by the Paying Party (in respect of which such deduction and withholding of tax is required to be made) shall be increased by the amount necessary to ensure that the Non-Paying Party receives an amount equal to the same amount that it would have received had no Paying Party Withholding Tax Action occurred.

 

6.9.3       Indirect Taxes. All payments are exclusive of Indirect Taxes.  If any Indirect Taxes are chargeable in respect of any payments, the Paying Party shall pay such Indirect Taxes at the applicable rate in respect of such payments following receipt, where applicable, of an Indirect Taxes invoice in the appropriate form issued by the Non-Paying Party in respect of those payments.  The Parties shall issue invoices for all amounts payable under this Agreement consistent with Indirect Tax requirements and irrespective of whether the sums may be netted for settlement purposes. If such amounts of Indirect Taxes are refunded to the Non-Paying Party by the applicable tax authority or other fiscal authority subsequent to payment, the Non-Paying Party will transfer such amount to the Paying Party within [**] days of receipt.  For purposes of this section, “Indirect Taxes” shall mean value added taxes, sales taxes, consumption taxes and other similar taxes.

 

6.10        Books and Records; Audit Rights.  Each Party (the “Audited Party”) shall keep (and, in the case of Kolltan, shall cause its Affiliates and Sublicensees to keep) complete, true and accurate books and records in accordance with the Accounting Standards in sufficient detail for the other Party (the “Auditing Party”) to determine the amount of any payments due to such Party under this Agreement. Each Auditing Party shall have the right, [**] at its own expense, to

 

39

 

have an independent, certified public accounting firm of nationally recognized standing, selected by the Auditing Party and reasonably acceptable to the Audited Party, review any such records of the Audited Party in the location(s) where such records are maintained by the Audited Party upon reasonable notice (which shall be no less than [**] days’ prior written notice) and during regular business hours and under obligations of confidence, for the sole purpose of verifying the accuracy of the amounts paid under this Agreement within a [**] year period preceding the date of the request for review.  The Audited Party shall (and, in the case of Kolltan as the Audited Party, shall cause its Affiliates and Sublicensees to) make its (and their) personnel reasonably available to answer queries reasonably required for such report. The report of such accounting firm shall be limited to a certificate stating whether any report made or invoice or payment submitted by the Audited Party during such period is accurate or inaccurate and the amounts of any discrepancy.  No other information shall be provided to the Auditing Party.  The Audited Party shall receive a copy of each such report concurrently with receipt by the Auditing Party.  Should such inspection lead to the discovery of a discrepancy to the Auditing Party’s detriment, the Audited Party shall pay the amount of the discrepancy within [**] days after its receipt from the accounting firm of the certificate showing the amount of the discrepancy.  The Auditing Party shall pay the full cost of the review unless the underpayment is greater than [**] percent ([**]%) of the amount due for the applicable period, in which case the Audited Party shall pay the reasonable costs charged by such accounting firm for such review.

 

ARTICLE 7
 OWNERSHIP OF INTELLECTUAL PROPERTY RIGHTS

 

7.1          Inventorship.  Inventorship for patentable inventions made in the course of Research, Development, Manufacture or Commercialization of the Licensed Antibody, Licensed Products, Follow-On Antibodies and Follow-On Products shall be determined in accordance with the patent laws of the jurisdiction where the invention was made; provided, however, that the issue as to whether any such invention is jointly made by the Parties shall be determined in accordance with the substantive Applicable Laws of the United States, irrespective of the country in which such invention is made.

 

7.2          Ownership.  Subject to the rights and licenses granted to Kolltan under this Agreement, as between the Parties, MedImmune shall own the entire right, title and interest in and to all inventions and discoveries (and Patents claiming patentable inventions therein) first made or discovered solely by employees or consultants of MedImmune or its Affiliates or acquired solely by MedImmune or its Affiliates in the course of Research, Development or Manufacture of the Licensed Antibody, Licensed Products, Follow-On Antibodies and Follow-On Products.  Kolltan shall own the entire right, title and interest in and to all inventions and discoveries (and Patents claiming patentable inventions therein) first made or discovered solely by employees or consultants of Kolltan or its Affiliates or acquired solely by Kolltan or its Affiliates in the course of Research, Development, Manufacture or Commercialization of the Licensed Antibody, Licensed Products, Follow-On Antibodies and Follow-On Products.  Each Party shall own an undivided, one-half interest in any Joint IP and, subject to the terms and conditions of this Agreement, shall retain the right to practice under such interest without the consent of or accounting to the other.  Subject to the terms of this Agreement, the rights of the Parties as joint owners shall be determined in accordance with the substantive Applicable Laws

 

40

 

of the United States, irrespective of the country in which any invention or discovery is made or discovered.

 

7.3          Prosecution and Maintenance of Patents.

 

7.3.1       Kolltan Rights.

 

(a)           Kolltan shall have (i) the sole right, at Kolltan’s discretion and expense, to file, prosecute, and maintain (including with respect to any interference, derivation, re-issuance, re-examination, opposition or other post-grant proceedings) any Kolltan Patents throughout the world, and (ii) the first right, at Kolltan’s discretion (subject to the remainder of this Section 7.3.1), to file, prosecute, and maintain (including with respect to any interference, derivation, re-issuance, re-examination, opposition or other post-grant proceedings) (x) any MedImmune Patents throughout the world (subject to Section 12.10 of the Dyax Agreement) and (y) any Joint Patents throughout the world.

 

(b)           Promptly after the Effective Date, MedImmune shall transfer or disclose to Kolltan, in whatever manner or form Kolltan may reasonably request, all documents, correspondence and other information and materials Controlled by MedImmune as of the Effective Date that relate to the MedImmune Patents as reasonably necessary for Kolltan to exercise its rights under clause (ii)(x) of Section 7.3.1(a).  Such transfers and disclosures shall be made (i) in any manner or form reasonably requested by Kolltan and (ii) at MedImmune’s expense; provided, however, if at Kolltan’s request any such transfer or disclosure is made in any manner or form that is not reasonably standard in the biopharmaceutical industry for transfers or disclosures of a similar kind, such transfer or disclosure shall be made at Kolltan’s expense.

 

(c)           MedImmune shall reimburse Kolltan for the reasonable Out-of-Pocket Costs of Kolltan in the filing, prosecution and maintenance of any MedImmune Patent or Joint Patent; provided, however, that MedImmune shall have the right to assign any such Patent in any country (or, in case of a Joint Patent, to assign MedImmune’s interest in such Joint Patent in any country) to Kolltan, in which case such Patent (or Joint Patent) in such country shall thereafter be deemed a Kolltan Patent, or (in the case of a MedImmune Patent) to cause the abandonment of any such Patent in any country, at Kolltan’s election, and thereby to terminate MedImmune’s obligation to reimburse such costs incurred thereafter, upon [**] days’ written notice to Kolltan.  Kolltan will provide an invoice to MedImmune for reimbursement of Out-of-Pocket Costs within [**] days of receiving an invoice from a Third Party for such Out-of-Pocket Costs.

 

(d)           The Parties shall work together in good faith to agree upon a strategy for the prosecution of any MedImmune Patents and Joint Patents, including the list of countries in which such Patents will be filed; provided, however, that (subject to Section 7.3.1(e)) Kolltan shall have the final right to make such determinations.  Kolltan shall provide MedImmune with a draft of any prosecution filing related to any MedImmune Patents or Joint Patents at least [**] days in advance of submission (or, if such timing is not practicable, as far in advance of submission as practicable) and shall provide MedImmune an opportunity to provide comments on and make requests of Kolltan concerning such filing and shall consider in good faith any comments or requests regarding such filing that MedImmune may timely provide.  In

 

41

 

addition, Kolltan shall provide to MedImmune such other information related to prosecution of any MedImmune Patents or Joint Patents as MedImmune may from time to time reasonably request to allow MedImmune to track prosecution and maintenance of such Patents and shall consider in good faith any comments that MedImmune may provide with respect to such matters.

 

(e)           Kolltan shall give MedImmune written notice reasonably, but in no event less than [**] days, in advance of any decision by Kolltan not to file an application for or to abandon the prosecution of or otherwise not maintain or extend any MedImmune Patent or Joint Patent in any country.  Upon receiving such notice, MedImmune shall have the right, at its own cost, to file, prosecute, maintain and extend, as the case may be, such MedImmune Patent or Joint Patent, in MedImmune’s name, in such country; provided, however, that MedImmune shall not exercise such right without the prior written consent of Kolltan (which Kolltan may withhold in its sole discretion) if Kolltan’s decision not to file an application for or to abandon the prosecution of or otherwise not maintain or extend such MedImmune Patent or Joint Patent is made for strategic business reasons (e.g., in countries with compulsory licensing policies).  If MedImmune exercises its rights under this Section 7.3.1(e) with respect to any Joint Patent in any country, Kolltan shall (i) assign its entire right, title and interest in such Joint Patent in such country to MedImmune, (ii) use reasonable efforts to make its authorized attorneys, agents or representatives available to MedImmune and to assist MedImmune in obtaining and maintaining such patent protection, and (iii) sign or use reasonable efforts to have signed all legal documents necessary to file and prosecute such Joint Patent or to obtain or maintain such Joint Patent.

 

7.3.2       MedImmune Rights.

 

(a)           MedImmune shall have (i) the sole right, at MedImmune’s discretion and expense, to file, prosecute, and maintain (including with respect to any interference, derivation, re-issuance, re-examination, opposition or other post-grant proceedings) any MedImmune Manufacturing Patents throughout the world, and (ii) the first right, at MedImmune’s discretion (subject to the remainder of this Section 7.3.2) and expense, to file, prosecute, and maintain (including with respect to any interference, derivation, re-issuance, re-examination, opposition or other post-grant proceedings) any MedImmune Additional Patents throughout the world.

 

(b)           The Parties shall work together in good faith to agree upon a strategy for the prosecution of any MedImmune Additional Patents, including the list of countries in which such MedImmune Additional Patents will be filed; provided, however, that (subject to Section 7.3.2(c)) MedImmune shall have the final right to make such determinations. MedImmune shall provide Kolltan with a draft of any prosecution filing related to any MedImmune Additional Patents at least [**] days in advance of submission (or, if such timing is not practicable, as far in advance of submission as practicable) and shall provide Kolltan an opportunity to provide comments on and make requests of MedImmune concerning such filing and shall consider in good faith any comments or requests regarding such filing that Kolltan may timely provide.  In addition, MedImmune shall provide to Kolltan such other information related to prosecution of any MedImmune Additional Patents as Kolltan may from time to time reasonably request to allow Kolltan to track prosecution and maintenance of such Patents and shall consider in good faith any comments that Kolltan may provide with respect to such matters.

 

42

 

(c)           MedImmune shall give Kolltan written notice reasonably, but in no event less than [**] days, in advance of any decision by MedImmune not to file an application for or to abandon the prosecution of or otherwise not maintain or extend any MedImmune Additional Patents in any country.  Upon receiving such notice, Kolltan shall have the right, at its own cost, to file, prosecute, maintain and extend, as the case may be, such MedImmune Additional Patents, in Kolltan’s name, in such country; provided, however, that Kolltan shall not exercise such right without the prior written consent of MedImmune (which MedImmune may withhold in its sole discretion) if MedImmune’s decision not to file an application for or to abandon the prosecution of or otherwise not maintain or extend such MedImmune Additional Patent is made for strategic business reasons (e.g., in countries with compulsory licensing policies).

 

7.4          Third Party Infringement.

 

7.4.1       Notice.  Each Party shall promptly report in writing to the other Party any known or suspected (a) infringement of any of the MedImmune Patents, MedImmune Additional Patents, Kolltan Patents or Joint Patents; (b) unauthorized use or misappropriation of any of the MedImmune Know-How, MedImmune Additional Know-How, Kolltan Know-How or Joint Know-How of which such Party becomes aware; or (c) notification under the Biologics Price Competition and Innovation Act of 2009, as amended, or any similar law, from a biosimilar applicant arising from the filing of an application for the Regulatory Approval of a product intending to show that such product is biosimilar to any Licensed Product (or, in the case of MedImmune as the notifying Party, any Follow-On Product) that is a reference product for which a claim of infringement of any of the MedImmune Patents, MedImmune Additional Patents, Kolltan Patents or Joint Patents by the manufacture or sale of such product could reasonably be asserted, and shall provide the other Party with all available evidence regarding such known or suspected infringement or unauthorized use.

 

7.4.2       Enforcement of Patents.

 

(a)           Kolltan Rights.

 

(i)            Kolltan shall have (x) the sole right, but not the obligation, to initiate a lawsuit or take other reasonable action to enforce any Kolltan Patents throughout the world and (y) the first right, but not the obligation, to initiate a lawsuit or take other reasonable action to enforce (A) any MedImmune Patents throughout the world and (B) any Joint Patents throughout the world; provided, however, that Kolltan shall not initiate any such lawsuit or take such other action with respect to any matter described in this clause (y) without first consulting with MedImmune and giving good faith consideration to any reasonable objection from MedImmune regarding Kolltan’s proposed course of action.  MedImmune shall cooperate in the prosecution of any suit under this Section 7.4.2(a)(i) as may be reasonably requested by Kolltan (including joining such suit as a plaintiff if Kolltan is unable to initiate or prosecute such action solely in its own name); provided, however, that Kolltan shall promptly reimburse all Out-of-Pocket Costs (including reasonable counsel fees and expenses) of MedImmune in connection with such cooperation.  In connection with any such proceeding, Kolltan shall not enter into any settlement admitting the invalidity of, or otherwise impairing MedImmune’s rights in, any MedImmune IP or Joint IP without the prior written consent of MedImmune.

 

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(ii)           Any recoveries resulting from an action brought by Kolltan under Section 7.4.2(a)(i) shall (x) first be applied to reimburse each Party for all Out-of-Pocket Costs incurred by such Party in connection with such proceeding (on a pro rata basis, based on each Party’s respective litigation costs, to the extent the recovery was less than all such litigation costs), and (y) second, as to any remainder after such reimbursements are made, be retained by Kolltan; provided, however, that (A) to the extent the award is based on lost profits with respect to a Licensed Product or Follow-On Product, MedImmune shall receive an amount equal to the royalty that would be payable, pursuant to Section 6.4, on the imputed amount of Net Sales of such Licensed Product or Follow-On Product, as applicable, in the country in which such infringement occurred based on the amount retained by Kolltan under this clause (y), and (B) to the extent the award reflects the amount of reasonable royalty payments due to Kolltan with respect to a Licensed Product or Follow-On Product (excluding, for clarity, any award to the extent described in clause (A) above), the amount retained by Kolltan under this clause (y) shall be deemed Net Sales hereunder (and accordingly subject to any applicable royalty obligation under Section 6.4).

 

(iii)          If Kolltan in good faith does not intend to initiate a lawsuit or take other reasonable action with respect to any matter described in clause (y) of Section 7.4.2(a)(i), then Kolltan shall notify MedImmune thereof (x) if there is no time limit for the filing of such action, within [**] days following the notice of alleged infringement, or (y) if there is a time limit for the filing of such action (including those set forth in Applicable Law), at least [**] days before the time limit, and upon receipt of such notice MedImmune shall have the right, but not the obligation, to initiate such lawsuit or take such other action, after providing [**] days (or [**] days in the event there is a time limit) notice to Kolltan and giving good faith consideration to Kolltan’s reason(s) for not initiating a lawsuit or taking other action; provided, however, that MedImmune shall not initiate such a lawsuit or take such other action without the prior written consent of Kolltan (which Kolltan may withhold in its sole discretion) if Kolltan’s decision not to exercise its first right with respect thereto was made for strategic business reasons.  Kolltan shall cooperate in the prosecution of any suit initiated by MedImmune to the extent permitted by the prior sentence as may be reasonably requested by MedImmune (including joining such suit as a plaintiff if MedImmune is unable to initiate or prosecute such action solely in its own name); provided, however, that MedImmune shall promptly reimburse all Out-of-Pocket Costs (including reasonable counsel fees and expenses) of Kolltan in connection with such cooperation.  Subject to the proviso in the immediately preceding sentence, any recoveries resulting from such an action brought by MedImmune in accordance with this Section 7.4.2(a)(iii)shall be retained by MedImmune.

 

(b)           MedImmune Rights.

 

(i)            MedImmune shall have (x) the sole right, but not the obligation, to initiate a lawsuit or take other reasonable action to enforce any MedImmune Manufacturing Patents throughout the world and (y) the first right, but not the obligation, to initiate a lawsuit or take other reasonable action to enforce any MedImmune Additional Patents throughout the world; provided, however, that MedImmune shall not initiate any such lawsuit or take such other action with respect to any matter described in this clause (y) without first consulting with Kolltan and giving good faith consideration to any reasonable objection from Kolltan regarding MedImmune’s proposed course of action.  Kolltan shall cooperate in the

 

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prosecution of any suit under this Section 7.4.2(b)(i) as may be reasonably requested by MedImmune (including joining such suit as a plaintiff if MedImmune is unable to initiate or prosecute such action solely in its own name); provided, however, that MedImmune shall promptly reimburse all Out-of-Pocket Costs (including reasonable counsel fees and expenses) of Kolltan in connection with such cooperation.  In connection with any such proceeding, MedImmune shall not enter into any settlement admitting the invalidity of, or otherwise impairing Kolltan’s rights in, any MedImmune Additional IP without the prior written consent of Kolltan.

 

(ii)           With respect to any lawsuit initiated or other action taken by MedImmune under clause (y) of Section 7.4.2(b)(i), (w) MedImmune shall keep Kolltan reasonably informed of the status of such lawsuit or action; (x) without limiting clause (w), MedImmune shall provide Kolltan with copies of any court filings or other material documents or correspondence received from any Third Party in connection with such lawsuit or action promptly after such filings or documents or correspondence are received by MedImmune; (y) MedImmune shall consult with Kolltan with respect to such lawsuit or action and consider any comments from Kolltan with respect to such lawsuit or action in good faith; and (z) without limiting clause (y), MedImmune shall provide Kolltan with drafts of any court filings or other material documents or correspondence to be filed or delivered by MedImmune prior to the date of filing or delivery such that Kolltan has a reasonable opportunity to review and provide comments, and to the extent Kolltan provides comments thereon promptly and in sufficient time to allow MedImmune to meet applicable filing requirements, MedImmune shall consider such comments in good faith.

 

(iii)          Any recoveries resulting from an action brought by MedImmune under Section 7.4.2(b)(i) shall (x) first be applied to reimburse each Party for all Out-of-Pocket Costs incurred by such Party in connection with such proceeding (on a pro rata basis, based on each Party’s respective litigation costs, to the extent the recovery was less than all such litigation costs), and (y) second, as to any remainder after such reimbursements are made, (A) to the extent the award is based on lost profits with respect to a Licensed Product or Follow-On Product, such remainder shall be retained by Kolltan; provided, however, that if the award is based on lost profits with respect to a Licensed Product or Follow-On Product, then MedImmune shall receive an amount equal to the royalty that would be payable, pursuant to Section 6.4, on the imputed amount of Net Sales of such Licensed Product or Follow-On Product, as applicable, in the country in which such infringement occurred based on the amount retained by Kolltan under this clause (A); (B) to the extent the award reflects the amount of reasonable royalty payments due to Kolltan with respect to a Licensed Product or Follow-On Product (excluding, for clarity, any award to the extent described in clause (A) above), such remainder shall be retained by Kolltan; provided, however, that if the award is based on the amount of reasonable royalty payments due to Kolltan with respect to a Licensed Product or Follow-On Product, as applicable, then the amount retained by Kolltan under this clause (B) shall be deemed Net Sales hereunder (and accordingly subject to any applicable royalty obligation under Section 6.4); and (C) to the extent the award is not described in clauses (A) or (B) above, such remainder shall be equitably divided between MedImmune and Kolltan.

 

(iv)          If MedImmune in good faith does not intend to initiate a lawsuit or take other reasonable action with respect to any matter described in clause (y) of

 

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Section 7.4.2(b)(i), then MedImmune shall notify Kolltan thereof (x) if there is no time limit for the filing of such action, within [**] days following the notice of alleged infringement, or (y) if there is a time limit for the filing of such action (including those set forth in Applicable Law), at least [**] days before the time limit, and upon receipt of such notice Kolltan shall have the right, but not the obligation, to initiate such lawsuit or take such other action, after providing [**] days (or [**] days in the event there is a time limit) notice to MedImmune and giving good faith consideration to MedImmune’s reason(s) for not initiating a lawsuit or taking other action; provided, however, that Kolltan shall not initiate such a lawsuit or take such other action without the prior written consent of MedImmune (which MedImmune may withhold in its sole discretion) if MedImmune’s decision not to exercise its first right with respect thereto was made for strategic business reasons.  MedImmune shall cooperate in the prosecution of any suit initiated by Kolltan to the extent permitted by the prior sentence as may be reasonably requested by Kolltan (including joining such suit as a plaintiff if Kolltan is unable to initiate or prosecute such action solely in its own name); provided, however, that Kolltan shall promptly reimburse all Out-of-Pocket Costs (including reasonable counsel fees and expenses) of MedImmune in connection with such cooperation.  Subject to the proviso in the immediately preceding sentence, any recoveries resulting from such an action brought by Kolltan in accordance with this Section 7.4.2(b)(iv)shall be retained by Kolltan.

 

7.4.3       Conduct of Certain Actions; Costs.  The Party initiating legal action shall have the sole and exclusive right to select counsel for any suit initiated by it pursuant to Section 7.4.2 (the “Initiating Party”). Unless otherwise expressly provided herein, the Initiating Party shall bear its own Out-of-Pocket Costs incurred in any such legal action, including the fees and expenses of the counsel selected by it.  The other Party shall have the right to participate and be represented in any such legal action (in cases where such other Party has standing) by its own counsel at its own expense.

 

7.5          Patent Invalidity Claim.  Each Party shall promptly notify the other in the event of any legal action (excluding any actions covered by Section 7.3) by any Third Party with respect to the validity of a MedImmune Patent, MedImmune Additional Patent, Kolltan Patent or Joint Patent of which it becomes aware.  With respect to any such action:

 

7.5.1       Kolltan shall have (a) the sole right, but not the obligation, at its expense, to defend against any such action relating to any Kolltan Patents throughout the world, and (b) the first right, but not the obligation, at its expense, to defend against any such action relating to any MedImmune Patents throughout the world and any Joint Patents throughout the world.  If Kolltan does not defend against any such action described in clause (b) above, then MedImmune shall have the right, but not the obligation, to defend such action at MedImmune’s expense; provided, however, that MedImmune shall not defend against any such action described without the prior written consent of Kolltan (which Kolltan may withhold in its sole discretion) if Kolltan’s decision not to exercise its first right with respect thereto was made for strategic business reasons.

 

7.5.2       MedImmune shall have (a) the sole right, but not the obligation, at its expense, to defend against any such action relating to any MedImmune Manufacturing Patents throughout the world and (b) the first right, but not the obligation, at its expense, to defend against any such action relating to any MedImmune Additional Patents throughout the world.  If

 

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MedImmune does not defend against any such action described in clause (b) above, then Kolltan shall have the right, but not the obligation, to defend such action at Kolltan’s expense; provided, however, that Kolltan shall not defend against any such action described without the prior written consent of MedImmune(which MedImmune may withhold in its sole discretion) if MedImmune’s decision not to exercise its first right with respect thereto was made for strategic business reasons.  In addition, with respect to any such action described in clause(b) above, (i) MedImmune shall keep Kolltan reasonably informed of the status of such action; (ii) without limiting clause (i), MedImmune shall provide Kolltan with copies of any court filings or other material documents or correspondence received from any Third Party in connection with such action promptly after such filings or documents or correspondence are received by MedImmune; (iii) MedImmune shall consult with Kolltan with respect to such action and consider any comments from Kolltan with respect to such action in good faith; and (iv) without limiting clause (iii), MedImmune shall provide Kolltan with drafts of any court filings or other material documents or correspondence to be filed or delivered by MedImmune prior to the date of filing or delivery such that Kolltan has a reasonable opportunity to review and provide comments, and to the extent Kolltan provides comments thereon promptly and in sufficient time to allow MedImmune to meet applicable filing requirements, MedImmune shall consider such comments in good faith.

 

7.6          Patent Term Extensions.  The Parties shall cooperate with each other in obtaining patent term extensions or supplemental protection certificates or their equivalents in any country, where applicable to MedImmune Patents, MedImmune Additional Patents, Kolltan Patents and Joint Patents; provided, however, that (a) Kolltan shall have the right of final decision as to whether to seek patent term extensions or supplemental protection certificates or their equivalents in any country with respect to the MedImmune Patents, Kolltan Patents and Joint Patents, and (b) MedImmune shall have the right of final decision as to whether to seek patent term extensions or supplemental protection certificates or their equivalents in any country with respect to the MedImmune Additional Patents.

 

7.7          Patent Marking.  Kolltan shall comply with the patent marking statutes in each country in which a Licensed Product or Follow-On Product is sold by Kolltan, its Affiliates and/or its Sublicensees.

 

7.8          CREATE Act.  The Parties acknowledge and agree that this Agreement is a “joint research agreement” as defined in the Cooperative Research and Technology Enhancement Act of 2004, 35 U.S.C. 103(c)(2)-(c)(3) (the “CREATE Act”).  MedImmune (a) without the prior written consent of Kolltan, shall not make any election under the CREATE Act with respect to the Licensed Antibody, Licensed Products, Follow-On Antibodies or Follow-On Products and (b) shall cooperate with Kolltan with respect to any actions taken by Kolltan in connection with any election made by Kolltan under the CREATE Act with respect to the Licensed Antibody, Licensed Products, Follow-On Antibodies or Follow-On Products.

 

7.9          Publications.

 

7.9.1       Publication by MedImmune.  Notwithstanding anything to the contrary in this Agreement, MedImmune may publish, present or otherwise disclose preclinical data relating to Licensed Antibody or Licensed Products, either orally or in writing, in a publication,

 

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presentation or other disclosure (a “MedImmune Publication”), only in accordance with the terms and conditions of this Section 7.9.1.

 

(a)           MedImmune shall provide a copy of any proposed MedImmune Publication to Kolltan at least [**] days prior to its submission or other disclosure, and Kolltan shall have [**] days from receipt of such proposed MedImmune Publication to provide comments and/or proposed changes to MedImmune.  Without limiting the remainder of this Section 7.9.1, MedImmune shall in good faith take into account any such comments and/or proposed changes.

 

(b)           Subject to the last sentence of Section 8.1 and Section 8.2, MedImmune shall not include any Confidential Information of Kolltan (other than preclinical data relating to Licensed Antibody or Licensed Products) in any MedImmune Publication without Kolltan’s prior written consent.

 

(c)           If Kolltan reasonably determines that any MedImmune Publication would entail the disclosure of any MedImmune Know-How or Joint Know-How upon which Kolltan desires to file a patent application, or if MedImmune has made the decision not to draft and file a patent application covering any MedImmune Additional Know-How disclosed in any proposed MedImmune Publication, then, at Kolltan’s request, disclosure of the proposed MedImmune Publication shall be delayed for a period not to exceed [**] days after the date of proposed submission or disclosure to enable Kolltan to draft and file a patent application covering such MedImmune Know-How, Joint Know-How or MedImmune Additional Know-How, as applicable.

 

(d)           MedImmune shall designate appropriate authors in accordance with generally recognized standards for academic publications on any MedImmune Publication.

 

7.9.2       Publication by Kolltan.  Notwithstanding anything to the contrary in this Agreement, Kolltan may publish information or data relating to the Licensed Antibody or Licensed Products in a scientific journal (a “Kolltan Publication”), only in accordance with the terms and conditions of this Section 7.9.2.

 

(a)           Prior to the Option Termination Date, (i) Kolltan shall provide to MedImmune a copy of any proposed Kolltan Publication at least [**] days prior to submission, (ii) MedImmune shall have [**] days from receipt of such proposed Kolltan Publication to provide comments to Kolltan, and (iii) without limiting the remainder of this Section 7.9.2, Kolltan may, in its sole discretion, take into account any such comments.  From and after the Option Termination Date, Kolltan shall have no obligation to provide a copy of any proposed Kolltan Publication to MedImmune prior to submission or other disclosure.

 

(b)           Subject to the last sentence of Section 8.1 and Section 8.2, Kolltan shall not include any Confidential Information of MedImmune in any Kolltan Publication without MedImmune’s prior written consent.

 

(c)           Kolltan shall designate appropriate authors in accordance with generally recognized standards for academic publications on any Kolltan Publication.

 

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7.10        Existing Proceedings.

 

7.10.1     Prosecution by MedImmune.  Until such time as Kolltan assumes control of a particular Existing Proceeding pursuant to Section 7.10.2, MedImmune shall continue to prosecute such Existing Proceeding.  MedImmune shall provide Kolltan with a draft of any filing or document to be submitted related to any such Existing Proceeding at least [**] days in advance of submission (or, if such timing is not practicable, as far in advance of submission as practicable) and shall provide Kolltan an opportunity to provide comments on and make requests of MedImmune concerning such filing or document and shall consider in good faith any comments or requests regarding such filing or document that Kolltan may timely provide.  In addition, MedImmune shall provide to Kolltan such other information related to such Existing Proceeding as Kolltan may from time to time reasonably request to allow Kolltan to track such Existing Proceeding and shall consider in good faith any comments that Kolltan may provide with respect to such matters.  MedImmune shall also work with Kolltan in good faith with respect to the strategy for the prosecution of such Existing Proceeding.

 

7.10.2     Assumption of Control by Kolltan.  MedImmune shall give Kolltan written notice reasonably, but in no event less than [**] days, in advance of any decision by MedImmune not to continue to prosecute any Existing Proceeding.  Upon receiving such notice, Kolltan shall have the right, at its own cost, to continue to prosecute such Existing Proceeding.  In addition, Kolltan shall have the right, at Kolltan’s discretion and at its own cost, at any time to assume control of any Existing Proceeding by providing written notice to MedImmune.  If Kolltan exercises its rights under this Section 7.10.2, MedImmune shall transfer or disclose to Kolltan, in whatever manner or form Kolltan may reasonably request, all documents, correspondence and other information and materials Controlled by MedImmune (and not previously disclosed to Kolltan) as reasonably necessary for Kolltan to exercise its rights under this Section 7.10.2.  Such transfers and disclosures shall be made (a) in any manner or form reasonably requested by Kolltan and (b) at MedImmune’s expense; provided, however, if at Kolltan’s request any such transfer or disclosure is made in any manner or form that is not reasonably standard in the biopharmaceutical industry for transfers or disclosures of a similar kind, such transfer or disclosure shall be made at Kolltan’s expense.  In addition, MedImmune shall (x) use reasonable efforts to make its authorized attorneys, agents or representatives available to Kolltan and to assist Kolltan in transitioning control of such Existing Proceeding to Kolltan and (y) sign or use reasonable efforts to have signed all legal documents necessary to transfer control of such Existing Proceeding to Kolltan.

 

7.10.3     Assistance.  If Kolltan assumes control of an Existing Proceeding pursuant to Section 7.10.2, MedImmune shall provide such cooperation in the prosecution of such proceeding as may be reasonably requested by Kolltan (including permitting Kolltan to continue such proceeding in MedImmune’s name if Kolltan is unable to prosecute such proceeding solely in Kolltan’s own name); provided, however, that Kolltan shall promptly reimburse all Out-of-Pocket Costs (including reasonable counsel fees and expenses) of MedImmune in connection with such cooperation.

 

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ARTICLE 8
 CONFIDENTIALITY

 

8.1          Confidentiality; Exceptions.  Except to the extent expressly authorized by this Agreement or otherwise agreed in writing, the Parties agree that the receiving Party (the “Receiving Party”) shall keep confidential and shall not publish or otherwise disclose or use for any purpose other than as provided for in this Agreement any Know-How in any form (whether written, oral, graphic, photographic, electronic, magnetic, or otherwise) that is disclosed to the Receiving Party by the other Party (the “Disclosing Party”) directly, or indirectly in the course of the Receiving Party’s performing its obligations or exercising its rights under this Agreement (collectively, “Confidential Information”).  Notwithstanding anything to the contrary in this Agreement, (a) any Regulatory Documentation relating to the Licensed Antibody or Licensed Products shall be deemed to be the Confidential Information of Kolltan (and not MedImmune), (b) any MedImmune Know-How, MedImmune Additional Know-How and Joint Know-How shall be deemed to be the Confidential Information of each Party and (c) subject to Section 8.3, the terms of this Agreement shall be deemed to be the Confidential Information of each Party.  Notwithstanding the foregoing, the restrictions set forth in the first sentence of this Section 8.1 shall not apply to Confidential Information of the Disclosing Party to the extent that it can be established by the Receiving Party that such Confidential Information:

 

8.1.1       was in the lawful knowledge and possession of the Receiving Party prior to the time it was disclosed to, or learned by, the Receiving Party pursuant to this Agreement, or was otherwise developed independently by the Receiving Party, as evidenced by written records kept in the ordinary course of business, or other documentary proof of actual use by the Receiving Party;

 

8.1.2       was generally available to the public or otherwise part of the public domain at the time of its disclosure to the Receiving Party;

 

8.1.3       became generally available to the public or otherwise part of the public domain after its disclosure and other than through any act or omission of the Receiving Party in breach of this Agreement; or

 

8.1.4       was disclosed to the Receiving Party, other than under an obligation of confidentiality, by a Third Party who had no obligation to the Disclosing Party not to disclose such information to others.

 

8.2          Authorized Disclosure.  Except as expressly provided otherwise in this Agreement, a Receiving Party may use and disclose Confidential Information of the Disclosing Party as follows:

 

8.2.1       under appropriate confidentiality provisions similar to those in this Agreement, in connection with the performance of its obligations or exercise of rights expressly granted or reserved under this Agreement; provided, however, that the Receiving Party shall remain responsible for any violation of such confidentiality provisions by any Person receiving such Confidential Information;

 

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8.2.2       to the extent such disclosure is reasonably necessary in filing or prosecuting patent and copyright applications, prosecuting or defending litigation, complying with applicable governmental regulations (including the rules and regulations of any stock exchange or NASDAQ), preparing and submitting filings to Regulatory Authorities or as otherwise required by Applicable Law; provided, however, that if a Receiving Party is required by Applicable Law to make any such disclosure of a Disclosing Party’s Confidential Information (other than a disclosure to a Regulatory Authority in a filing required by Applicable Law) it will give reasonable advance notice to the Disclosing Party of such disclosure requirement and shall furnish only that portion of the Disclosing Party’s Confidential Information that the Receiving Party is legally required to furnish;

 

8.2.3       in communications with existing or bona fide prospective acquirers, merger partners, lenders, investors, licensees, sublicensees or collaborators, and consultants and advisors of the Receiving Party in connection with transactions or bona fide prospective transactions with any of the foregoing, in each case on a need to know basis and under appropriate confidentiality provisions substantially equivalent to those of this Agreement; provided, however, that the Receiving Party shall remain responsible for any violation of such confidentiality provisions by any Person receiving such Confidential Information; or

 

8.2.4       to the extent mutually agreed to in writing by the Parties.

 

8.3          Press Release; Disclosure of Agreement.

 

8.3.1       On or promptly after the Effective Date, the Parties shall issue a joint public announcement of the execution of this Agreement or each Party shall issue a separate public announcement of the execution of this Agreement; provided, however, that the content of any such public announcement (whether joint or separate) shall be mutually agreed by the Parties.  Thereafter, (a) subject to Section 7.9.1, MedImmune shall not (i) issue any other press release regarding this Agreement or the Parties’ activities hereunder without the prior written consent of Kolltan or (ii) make any other disclosures regarding this Agreement or the Parties’ activities hereunder, or any results or data arising hereunder, except for any disclosure that is reasonably necessary to comply with applicable securities exchange listing requirements or other Applicable Law; provided, however, that (x) the restrictions set forth in clauses (i) and (ii) above shall terminate at such time, if any, as this Agreement terminates pursuant to Section 5.4.3(a); and (y) if it is determined that the Parties will enter into the Co-Development and Co-Commercialization Agreement pursuant to Section 5.4.3(c) or 5.4.3(d), Kolltan shall not unreasonably withhold its consent to any press release proposed to be issued by MedImmune with respect to the Parties’ entering into the Co-Development and Co-Commercialization Agreement; and (b) subject to Section 7.9.2, Kolltan may, in its sole discretion, issue other press releases regarding its Development and Commercialization activities hereunder (including any results or data arising hereunder); provided, however, that Kolltan shall not issue any other press releases regarding the terms of this Agreement or the exercise by either Party of its rights under ARTICLE 5 without the prior written consent of MedImmune.

 

8.3.2       Each Party shall, if practicable, give the other Party a reasonable opportunity to review those portions of all filings with the United States Securities and Exchange Commission (or any stock exchange, including Nasdaq, or any similar regulatory agency in any

 

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country other than the United States) describing the terms of this Agreement (including any filings of this Agreement) prior to submission of such filings, and shall give due consideration to any reasonable comments by the non-filing Party relating to such filing, including the provisions of this Agreement for which confidential treatment should be sought.

 

8.4          Existing Confidentiality Agreement.  For the avoidance of doubt, any information disclosed by either Party to the other Party prior to the Effective Date pursuant to the Mutual Confidentiality Agreement, dated July 12, 2012, between MedImmune and Kolltan (the “Existing Confidentiality Agreement”) shall be treated as Confidential Information of the disclosing Party for all purposes under this Agreement.

 

8.5          Remedies.  In the event a Party breaches the confidentiality obligations set forth in this ARTICLE 8, the other Party shall be entitled to seek, in addition to any other right or remedy it may have, at law or in equity, a temporary injunction, without the posting of any bond or other security, enjoining or restraining the breaching Party from any violation or threatened violation of this ARTICLE 8.

 

8.6          Return of Confidential Information.  Upon the expiration or termination of this Agreement, the Receiving Party shall return to the Disclosing Party all Confidential Information of the Disclosing Party in its possession (and all copies and reproductions thereof).  In addition, the Receiving Party shall destroy: (a) any notes, reports or other documents prepared by the Receiving Party which contain Confidential Information of the Disclosing Party; and (b) any Confidential Information of the Disclosing Party (and all copies and reproductions thereof) which is in electronic form or cannot otherwise be returned to the Disclosing Party.  Alternatively, upon written request of the Disclosing Party, upon such expiration or termination, the Receiving Party shall destroy all Confidential Information of the Disclosing Party in its possession (and all copies and reproductions thereof) and any notes, reports or other documents prepared by the Receiving Party which contain Confidential Information of the Disclosing Party.  Nothing in this Section 8.6 shall require the alteration, modification, deletion or destruction of archival tapes or other electronic back-up media made in the ordinary course of business; provided that the Receiving Party shall continue to be bound by its obligations of confidentiality and other obligations under this ARTICLE 8 with respect to any Confidential Information contained in such archival tapes or other electronic back-up media.  Any requested destruction of Confidential Information shall be certified in writing to the Disclosing Party.  Notwithstanding the foregoing, (i) the Receiving Party’s legal counsel may retain one copy of the Disclosing Party’s Confidential Information solely for the purpose of determining the Receiving Party’s continuing obligations under this ARTICLE 8 and (ii) the Receiving Party may retain the Disclosing Party’s Confidential Information and its own notes, reports and other documents to the extent reasonably required (x) to comply with Applicable Law and regulatory requirements; (y) to exercise the rights and licenses of the Receiving Party expressly surviving expiration or termination of this Agreement; and (z) to perform the obligations of the Receiving Party expressly surviving expiration or termination of this Agreement.  Notwithstanding the return or destruction of the Disclosing Party’s Confidential Information, the Receiving Party shall continue to be bound by its obligations of confidentiality and other obligations under this ARTICLE 8.

 

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ARTICLE 9
 REPRESENTATIONS AND WARRANTIES

 

9.1          Representations and Warranties of Both Parties.  Each Party hereby represents and warrants to the other Party, as of the Effective Date, that:

 

9.1.1       Such Party is duly organized, validly existing and in good standing under the Applicable Laws of the jurisdiction of its incorporation and has full corporate power and authority to enter into this Agreement and to carry out the provisions hereof.

 

9.1.2       Such Party has taken all necessary action on its part to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder.

 

9.1.3       This Agreement has been duly executed and delivered on behalf of such Party, and constitutes a legal, valid, binding obligation, enforceable against it in accordance with the terms hereof, subject to the effects of bankruptcy, insolvency or other laws of general application affecting the enforcement of creditor rights and judicial principles affecting the availability of specific performance and general principles of equity, whether enforceability is considered a proceeding at law or equity.

 

9.1.4       The execution, delivery and performance of this Agreement by such Party does not conflict with any agreement or any provision thereof, or any instrument or understanding, oral or written, to which such Party or its Affiliates is a party or by which such Party or its Affiliates is bound (including, with respect to MedImmune, any In-License Agreement), nor violate any Applicable Law.

 

9.1.5       No government authorization, consent, approval, license, exemption of or filing or registration with any court or governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, under any Applicable Law currently in effect, is or will be necessary for, or in connection with, the transactions contemplated by this Agreement, or for the performance by it of its obligations under this Agreement, except as necessary to conduct clinical trials or to seek or obtain Regulatory Approvals.

 

9.2          Representations, Warranties and Covenants of MedImmune.  MedImmune hereby represents, warrants and covenants to Kolltan that:

 

9.2.1       MedImmune is, as of the Effective Date, and at all times will be, (a) the sole and exclusive owner of all of the MedImmune IP and MedImmune Additional IP other than the In-Licensed IP and (b) the sole and exclusive licensee of the In-Licensed IP other than the In-Licensed IP under the Dyax Agreement.  MedImmune’s rights to the MedImmune IP and MedImmune Additional IP are as of the Effective Date, and at all times will be, (x) free of all liens, mortgages, encumbrances, pledges and security interests of any kind in favor of any Third Party and (y) not subject to any rights of or licenses to any Governmental Authority.

 

9.2.2       As of the Effective Date, MedImmune has obtained from each employee and agent of MedImmune or its Affiliates who has performed activities in connection with the Research, Development or Manufacture of the Licensed Antibody or Licensed Products all right,

 

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title and interest in and to any inventions and discoveries made or discovered by such employee or agent in the course of conducting such activities.

 

9.2.3       The MedImmune Patents existing as of the Effective Date are listed on Exhibit 9.2.3.  There are no MedImmune Additional Patents existing as of the Effective Date.  As of the Effective Date, all documents required to be filed and all payments required to be made in order to maintain each MedImmune Patent and each MedImmune Additional Patent have been filed or made, as the case may be, in a timely manner, and no action has been taken that would constitute waiver, abandonment or any similar relinquishment of rights with respect to any such Patent.

 

9.2.4       As of the Effective Date, (a) MedImmune has taken reasonable measures to maintain the confidentiality of the MedImmune Know-How and MedImmune Additional Know-How and has disclosed the MedImmune Know-How and MedImmune Additional Know-How to Third Parties only under confidentiality obligations similar to those set forth in ARTICLE 8, and (b) to the knowledge of MedImmune, there is no actual infringement or misappropriation or threatened infringement or misappropriation of any MedImmune IP, MedImmune Additional IP or Regulatory Documentation related to the Licensed Antibody or Licensed Products by any Person.

 

9.2.5       As of the Effective Date, to the knowledge of MedImmune, (a) none of the MedImmune Patents or MedImmune Additional Patents is invalid or unenforceable, in whole or in part, and (b) the conception, development and reduction to practice of the MedImmune IP, MedImmune Additional IP and Regulatory Documentation related to the Licensed Antibody or Licensed Products have not constituted or involved the misappropriation of trade secrets or other rights or property of any Person.  There are not as of the Effective Date, nor have there been over the [**] year period immediately preceding the Effective Date, any actual (or, to MedImmune’s knowledge, threatened) claims, lawsuits, arbitrations, legal or administrative or regulatory proceedings, charges, complaints or investigations by any Government Authority (except in the ordinary administrative course of the granting of patents or approvals and proceedings relating thereto) or by any Third Party relating to the MedImmune IP, MedImmune Additional IP or Regulatory Documentation related to the Licensed Antibody or Licensed Products.

 

9.2.6       As of the Effective Date, except as listed in Exhibit 9.2.6, to the knowledge of MedImmune, the exercise by Kolltan of the rights, licenses and sublicenses granted to Kolltan by MedImmune under this Agreement, including the making, using, selling, offering for sale or import of the Licensed Antibody or any Licensed Product, will not infringe any intellectual property rights of any Third Party.  For clarity, a listing on Exhibit 9.2.6 is not a statement or admission regarding infringement.

 

9.2.7       As of the Effective Date, (a) each In-License Agreement is in effect, (b) to the knowledge of MedImmune, no party to any In-License Agreement is in breach of any provisions thereof and (c) no event has occurred under any In-License Agreement that would (with or without the passage of time) permit any party thereto (other than MedImmune or its applicable Affiliate) to terminate such In-License Agreement.

 

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9.2.8       MedImmune and its Affiliates shall (a) not commit any act or permit the occurrence of any omission that would constitute a breach of any In-License Agreement or result in the termination thereof prior to the expiration thereof in accordance with the terms thereof, (b) not amend, modify or waive any rights under any In-License Agreement in such a way as to adversely affect Kolltan’s rights or obligations under this Agreement, or terminate any In-License Agreement, without Kolltan’s prior written consent, (c) promptly notify Kolltan of any breach of any In-License Agreement by any party thereto, the occurrence of which gives rise to a right of termination thereunder by any party thereto or causes automatic termination thereunder, and (d) subject to clause (b) above, use commercially reasonable efforts to enforce the terms of each In-License Agreement against each other party thereto.

 

9.2.9       This Agreement complies with any requirements or conditions set forth in any In-License Agreement with respect to the grant of a sublicense under MedImmune’s and its Affiliates rights under the In-Licensed IP.  Except as set forth on Exhibit 9.2.9, no In-License Agreement imposes, directly or indirectly, any obligation on Kolltan (as sublicensee of MedImmune’s and its Affiliates’ rights under the In-Licensed IP), or any obligation on MedImmune or its Affiliates to cause Kolltan (as sublicensee of MedImmune’s and its Affiliates’ rights under the In-Licensed IP), to take any action or refrain from taking any action.  Except as set forth on Exhibit 9.2.9, there are no restrictions on the rights of Kolltan as sublicensee of MedImmune’s and its Affiliates’ rights under the In-Licensed IP to use or disclose the In-Licensed IP, including granting further sublicenses thereunder.  Except as set forth in Exhibit 6.4.4, as between MedImmune and its Affiliates (on the one hand) and Kolltan (on the other hand), MedImmune and its Affiliates will make all payments required to be made under each In-License Agreement.

 

9.2.10     The In-Licensed IP under the MRC Agreement is not subject to any Third Party Rights (as defined in the MRC Agreement).

 

9.2.11     MedImmune or its applicable Affiliate under the Dyax Agreement (a) as of the Effective Date, has the right under its option under Clause 12 of the Dyax Agreement to obtain a MedImmune Product License (as defined in the Dyax Agreement) with respect to the Licensed Antibody and any Licensed Product to be Developed by Kolltan for any Target (as defined in the Dyax Agreement) reasonably contemplated by Kolltan’s Development activities hereunder, (b) until such time as MedImmune or its applicable Affiliate obtains a MedImmune Product License (as defined in the Dyax Agreement) with respect to the Licensed Antibody and any Licensed Product Developed or to be Developed by Kolltan for any Target (as defined in the Dyax Agreement) reasonably contemplated by Kolltan’s Development activities hereunder, shall maintain the right to do so, and (c) upon Kolltan’s written request, shall promptly take such actions as are reasonably necessary to obtain a MedImmune Product License (as defined in the Dyax Agreement) with respect to the Licensed Antibody or any Licensed Product Developed or to be Developed by Kolltan for any Target (as defined in the Dyax Agreement) reasonably contemplated by Kolltan’s Development activities hereunder.

 

9.2.12     Upon Kolltan’s written request, MedImmune or its applicable Affiliate under the Lonza Agreement shall promptly take such actions as are reasonably necessary to enter into a Product Schedule (as defined in the Lonza Agreement) with respect to the Licensed Antibody, any Licensed Product, any Follow-On Antibody or any Follow-On Product, so that the

 

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Exploitation (as defined in the Lonza Agreement) of the Licensed Antibody or such Licensed Product, Follow-On Antibody or Follow-On Product, as applicable, is covered by the license grants set forth in Section 6.1 of the Lonza Agreement.

 

9.2.13     As of the Effective Date, (a) the Unredacted Provisions constitute all provisions of the In-License Agreements that are relevant to the rights and obligations of Kolltan as sublicensee under the In-Licensed IP and (b) nothing in any In-License Agreement conflicts with the Unredacted Provisions thereof.

 

9.2.14     Each Third Party that conducted activities under any Research Program is subject to written confidentiality and non-use obligations with respect to any Know-How related to such Research Program that are at least as stringent as those set forth in Sections 8.1 and 8.2, and no such Third Party has any rights in or to the Licensed Antibody or the Licensed Program.  Following the Effective Date, MedImmune will not cause or permit any Third Party to conduct any activities under any Research Program without the prior written consent of Kolltan.

 

9.2.15     As of the Effective Date, MedImmune has not (a) employed or used a contractor or consultant that has employed, any individual or entity debarred by the FDA (or subject to a similar sanction of EMA), or (b) employed any individual who or entity that is the subject of an FDA debarment investigation or proceeding (or similar proceeding of EMA), in the conduct of any activities related to the Licensed Antibody.

 

9.2.16     As of the Effective Date, MedImmune has prepared, filed and maintained all Regulatory Documentation that (a) is relevant to the Licensed Antibody and Licensed Products and (b) Applicable Law requires MedImmune to have prepared, filed and maintained, in each case in accordance with Applicable Law, and all information contained therein is true, complete and correct in all material respects.

 

9.2.17     As of the Effective Date, all activities conducted by or on behalf of MedImmune with respect to the Licensed Antibody or Licensed Products have been conducted, in all material respects, in accordance with Applicable Law, GLP, GCP and GMP, as applicable.

 

9.2.18     Without limitation of Section 9.1.4, as of the Effective Date, MedImmune has the right to grant all rights, licenses and sublicenses granted to Kolltan under this Agreement (including a sublicense under all of the In-Licensed IP as contemplated by this Agreement) and has not granted to any Third Party any rights, licenses or sublicenses that are inconsistent with the rights, licenses and sublicenses granted to Kolltan under this Agreement.

 

9.2.19     As of the Effective Date, MedImmune has disclosed or made available to Kolltan all material information, documents and materials in its possession relating to the Licensed Antibody, and all such information, documents and materials are true, complete and correct in all material respects.

 

9.3          Mutual Covenants.  Each Party hereby covenants to the other Party that:

 

9.3.1       Such Party shall comply with all Applicable Law in the performance of this Agreement and the transactions contemplated hereby.

 

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9.3.2       Such Party:

 

(a)           shall impose on each employee of such Party or its Affiliates who performs activities in connection with the Research, Development or Manufacture of the Licensed Antibody or Licensed Products the obligation to assign all right, title and interest in and to any inventions or discoveries made or discovered by such employee in the course of conducting such activities;

 

(b)           shall not (i) employ or use any contractor or consultant that employs any individual or entity debarred by the FDA (or subject to a similar sanction of EMA); or (ii) employ any individual who or entity that is the subject of an FDA debarment investigation or proceeding (or similar proceeding of EMA), in each of clauses (i) and (ii) in the conduct of any activities in connection with the Research, Development, or Manufacture of the Licensed Antibody or Licensed Products.  If, at any time, (x) any individual or entity employed by such Party or any contractor or consultant used by such Party in the conduct of any activities in connection with the Research, Development or Manufacture of the Licensed Antibody or Licensed Products becomes debarred by the FDA (or subject to a similar sanction of EMA) or (y) any individual or entity employed by such Party in the conduct of any activities in connection with the Research, Development or Manufacture of the Licensed Antibody or Licensed Products becomes the subject of, or is threatened to be made the subject of, an FDA debarment investigation or proceeding (or similar proceeding of EMA), such Party shall immediately notify the other Party; and

 

(c)           shall perform all activities in connection with the Research, Development, and Manufacture of the Licensed Antibody and Licensed Products in compliance in all material respects with GLP, GCP and GMP (including those specified by the ICH), in each case as applicable;

 

provided, however, that the covenants set forth in this Section 9.3.2 shall terminate (1) upon the expiration of the Trigger Period (and any applicable Option Period), if as of such time MedImmune has not delivered an Exercise Notice, and (2) upon Kolltan’s payment of the Buyout Amount to MedImmune.

 

9.3.3       Neither Party shall grant any right, license or sublicense to any Third Party relating to any of the intellectual property rights it owns or Controls which would conflict with any of the rights, licenses or sublicenses granted or to be granted to the other Party hereunder.

 

9.4          Disclaimer.  Except as otherwise expressly set forth in this Agreement, NEITHER PARTY MAKES ANY REPRESENTATION OR EXTENDS ANY WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY THAT ANY PATENTS ARE VALID OR ENFORCEABLE, AND EXPRESSLY DISCLAIMS ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT.  Without limiting the foregoing, except as otherwise expressly set forth in this Agreement, each Party disclaims any warranties with regards to:  (a) the success of any study or test commenced under this Agreement; (b) the safety or usefulness for any purpose of the technology or materials, including any compounds, it provides or discovers under this Agreement; or (c) the validity, enforceability, or non-infringement of any

 

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intellectual property rights or technology it provides or licenses to the other Party under this Agreement.

 

ARTICLE 10
 INDEMNIFICATION AND INSURANCE

 

10.1        Indemnification by Kolltan.  Kolltan shall defend, indemnify and hold harmless the MedImmune Indemnitees from and against any and all losses, damages, fees, expenses, settlement amounts or costs (including reasonable attorneys’ fees and witness fees) (“Losses”) relating to or in connection with a Third Party claim arising out of (a) any death, personal bodily injury or damage to real or tangible personal property alleged or proven to result, directly or indirectly, from the possession, use or consumption of, or treatment with, the Licensed Antibody or any Follow-On Antibody, Licensed Product or Follow-On Product, in each case by or on behalf of Kolltan or its Affiliates or Sublicensees, including any product liability claims; (b) the Commercialization by or on behalf of Kolltan or its Affiliates or Sublicensees of the Licensed Antibody or any Follow-On Antibody, Licensed Product or Follow-On Product; (c) any actual or alleged infringement or unauthorized use or misappropriation of any Patent or other intellectual property right of a Third Party with respect to the activities of Kolltan or its Affiliates or Sublicensees hereunder; (d) any breach by Kolltan of its representations, warranties or covenants made under this Agreement; or (e) any illegal or negligent act or omission or willful misconduct of Kolltan or its Affiliates or Sublicensees or any of their employees, contractors or agents, in performing any activities under or in connection with this Agreement; provided, however, that the foregoing indemnity shall not apply to the extent that any such Losses (i) are attributable to an illegal act by or the gross negligence or willful misconduct of any MedImmune Indemnitees, or (ii) are otherwise subject to an obligation by MedImmune to indemnify the Kolltan Indemnitees under Section 10.2, as to which Losses the provisions of Section 10.4 shall apply.

 

10.2        Indemnification by MedImmune.  MedImmune shall defend, indemnify and hold harmless the Kolltan Indemnitees from and against any and all Losses relating to or in connection with a Third Party claim arising out of (a) any activities conducted by MedImmune or its Affiliates with respect to the Licensed Antibody or Licensed Products on or prior to the Effective Date; (b) any death, personal bodily injury or damage to real or tangible personal property alleged or proven to result, directly or indirectly, from the possession, use or consumption of, or treatment with, any Licensed Antibody or Licensed Product included in or produced from the Inventory, including any product liability claims; (c) any actual or alleged infringement or unauthorized use or misappropriation of any Patent or other intellectual property right of a Third Party with respect to the activities of MedImmune or its Affiliates hereunder; (d) any breach by MedImmune of its representations, warranties or covenants made under this Agreement; or (e) any illegal or negligent act or omission or willful misconduct of MedImmune or its Affiliates or any of their employees, contractors or agents, in performing any activities under or in connection with this Agreement or the subject matter hereof, whether before or after the Effective Date; provided, however, that the foregoing indemnity shall not apply to the extent that any such Losses (i) are attributable to an illegal act by or the gross negligence or willful misconduct of any Kolltan Indemnitees, or (ii) are otherwise subject to an obligation by Kolltan to indemnify the MedImmune Indemnitees under Section 10.1, as to which Losses the provisions of Section 10.4 shall apply.

 

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10.3        Procedure.  In the event of a claim by a Third Party against any Person entitled to indemnification under this Agreement, the Party claiming indemnification (in such capacity, the “Indemnified Party”) shall promptly notify the other Party (in such capacity, the “Indemnifying Party”) in writing of the claim (it being understood that the failure by the Indemnified Party to give prompt notice of a Third Party claim as provided in this Section 10.3 shall not relieve the Indemnifying Party of its indemnification obligation under this Agreement except and only to the extent that such Indemnifying Party is actually prejudiced as a result of such failure to give prompt notice).  Within [**] days after delivery of such notification, the Indemnifying Party may, upon written notice thereof to the Indemnified Party, undertake and solely manage and control, at its sole expense and with counsel reasonably satisfactory to the Indemnified Party, the defense of the claim.  If the Indemnifying Party does not undertake such defense in accordance with the preceding sentence, the Indemnified Party shall control such defense.  The Party not controlling such defense shall cooperate with the other Party and may, at its option and expense, participate in such defense with counsel of its choice; provided, however, that if the Indemnifying Party assumes control of such defense as set forth above and the Indemnified Party in good faith concludes, based on advice from counsel, that the Indemnifying Party and the Indemnified Party (or the relevant MedImmune Indemnitee or Kolltan Indemnitee seeking indemnification) have conflicting interests with respect to such action, suit, proceeding or claim, the Indemnified Party’s counsel may fully participate in such defense and the Indemnifying Party shall be responsible for the reasonable fees and expenses of one counsel to the indemnified Persons solely in connection therewith.  The Party controlling such defense shall keep the other Party advised of the status of such action, suit, proceeding or claim and the defense thereof, shall provide the other Party copies of material documents and filings related to such action, suit, proceeding or claim and shall consider recommendations made by the other Party with respect thereto.  Except if the Indemnifying Party did not undertake defense of the claim as set forth above, or if the Indemnifying Party and the Indemnified Party (or the relevant MedImmune Indemnitee or Kolltan Indemnitee seeking indemnification) have conflicting interests with respect to such action, suit, proceeding or claim and the Indemnified Party engages separate counsel, as provided above, the Indemnifying Party shall not be liable for any litigation costs or expenses incurred by the Indemnified Party without the Indemnifying Party’s written consent.  The Indemnified Party shall not settle any such action, suit, proceeding or claim without the prior written consent of the Indemnifying Party, which shall not be unreasonably withheld, delayed or conditioned.  The Indemnifying Party shall not settle, without the prior written consent of the Indemnified Party, any such action, suit, proceeding or claim, or consent to any judgment in respect thereof, that does not include a complete and unconditional release of the Indemnified Party from all liability with respect thereto, that imposes any liability or obligation on the Indemnified Party or that acknowledges fault by the Indemnified Party.

 

10.4        Allocation.  In the event a claim falls within the scope of the indemnity given by each Party in Section 10.1 or 10.2, as the case may be, any payments in connection with such claim shall be apportioned between the Parties in accordance with the degree of fault attributable to each Party.

 

10.5        EXCLUSION OF CONSEQUENTIAL DAMAGES.  EXCEPT WITH RESPECT TO A BREACH OF ARTICLE 8 OR THIRD PARTY CLAIMS THAT ARE SUBJECT TO INDEMNIFICATION UNDER THIS ARTICLE 10, NEITHER MEDIMMUNE NOR KOLLTAN, NOR ANY OF THEIR RESPECTIVE AFFILIATES, WILL BE LIABLE FOR

 

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ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES, WHETHER LIABILITY IS ASSERTED IN CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT PRODUCT LIABILITY), INDEMNITY OR CONTRIBUTION, AND IRRESPECTIVE OF WHETHER SUCH PARTY OR ANY REPRESENTATIVE OF SUCH PARTY HAS BEEN ADVISED OF, OR OTHERWISE MIGHT HAVE ANTICIPATED THE POSSIBILITY OF, ANY SUCH LOSS OR DAMAGE.

 

10.6        Insurance.

 

10.6.1     MedImmune shall, at its own cost and expense, obtain and maintain in effect insurance at such levels sufficient to cover its obligations under this Agreement.  MedImmune shall furnish a certificate of insurance for any of the applicable policies as soon as practicable after the Effective Date and upon any renewal thereof.

 

10.6.2     Kolltan shall at its own cost and expense, obtain and maintain in effect the following insurance:

 

(a)           Property insurance written on an all-risk basis sufficient to cover the replacement value of the Inventory;

 

(b)           Commercial General Liability covering bodily injury and property damage with minimum limits of $[**] each occurrence and $[**] general aggregate, including Premises Liability, and Contractual Liability coverage for Kolltan’s indemnification obligations under this Agreement;

 

(c)           upon initiation by Kolltan of any human clinical trial of the Licensed Antibody, any Licensed Product, any Follow-On Antibody or any Follow-On Product, Products/Completed Operations Liability covering human clinical trials with minimum limits of $[**] each occurrence and $[**] policy aggregate;

 

(d)           Commercial Automobile Liability covering hired and non-owned vehicles with limits of at least $[**] combined single limit (bodily injury and property damage);

 

(e)           Workers’ Compensation as required by Applicable Law and Employer’s Liability coverage with a limit of not less than $[**]; and

 

(f)            Umbrella Liability coverage with minimum limits of at least $[**] each occurrence and $[**] general aggregate, sitting excess of the general liability, commercial auto liability and employer’s liability programs.

 

Each of the policies in clauses (b), (c), (d) and (f) above shall name MedImmune as an Additional Insured, and all of the above policies shall be primary to any liability insurance carried by MedImmune, which insurance(s) shall be excess and non-contributory for claims and losses arising out of the performance of this Agreement.  Kolltan shall furnish a certificate of insurance for any of the required policies as soon as practicable after the Effective Date (or such later time as Kolltan obtains the applicable policy) and upon any renewal thereof.  All such insurances as required under this Section 10.6.2 shall be written with a company or companies

 

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having a financial rating of not less than A- in the most current edition of Bests Key Rating Guide.

 

In the event that any of the required policies of insurance are written on a claims made basis, then such policies shall be maintained for a period of not less than [**] years following the termination or expiration of this Agreement.

 

MedImmune shall promptly provide to Kolltan such information as Kolltan reasonably requests to enable Kolltan to comply with its obligations under this Section 10.6.2.

 

ARTICLE 11
 TERM AND TERMINATION

 

11.1        Term; Expiration.  This Agreement shall become effective as of the Effective Date and, unless earlier terminated in accordance herewith, shall remain in effect until the expiration of the last to expire Royalty Term for any Licensed Product or Follow-On Product in any country.

 

11.2        Termination for Cause.

 

11.2.1     By Kolltan.  Kolltan may, without prejudice to any other remedies available to it under Applicable Law or in equity, terminate this Agreement (a) in its entirety, if MedImmune has materially breached or defaulted in the performance of its obligations hereunder or (b) with respect to a Program, if MedImmune has materially breached or defaulted in the performance of its obligations hereunder with respect to such Program, in either case ((a) or (b)) if such breach or default has continued for [**] days after written notice thereof describing such breach or default was provided to MedImmune by Kolltan.  Any such termination shall become effective at the end of such [**] day cure period, unless MedImmune has cured such breach or default prior to the expiration of such cure period.

 

11.2.2     By MedImmune.  MedImmune may, without prejudice to any other remedies available to it under Applicable Law or in equity, terminate this Agreement with respect to a Program if Kolltan has materially breached or defaulted in the performance of its obligations hereunder with respect to such Program and such breach or default has continued for [**] days after written notice thereof describing such breach or default was provided to Kolltan by MedImmune.  Any such termination shall become effective at the end of such [**] day cure period, unless Kolltan has cured such breach or default prior to the expiration of such cure period.

 

11.3        Termination for Insolvency Event.  Either Party may terminate this Agreement in its entirety or with respect to a Program effective upon written notice to the other Party if the other Party suffers an Insolvency Event.

 

11.4        Termination for Regulatory Reasons.  If Kolltan reasonably determines that it is not feasible for Kolltan to pursue the Development or Commercialization of Licensed Products for reasons of safety or lack of efficacy, then Kolltan may terminate this Agreement with respect to the Licensed Program upon thirty (30) days’ written notice to MedImmune.  If Kolltan reasonably determines that it is not feasible for Kolltan to pursue the Development or

 

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Commercialization of Follow-On Products for reasons of safety or lack of efficacy, then Kolltan may terminate this Agreement with respect to the Follow-On Program upon thirty (30) days’ written notice to MedImmune.

 

11.5        Termination upon Effective Date of Co-Development and Co-Commercialization Agreement or Auction License Agreement.  In the event the Parties enter into the Co-Development and Co-Commercialization Agreement pursuant to Section 5.4.3(c) or 5.4.3(d), this Agreement shall terminate with respect to the Licensed Program upon the effective date thereof.  In the event the Parties enter into the Auction License Agreement pursuant to Section 5.4.3(e), this Agreement shall terminate with respect to the Licensed Program upon the effective date thereof.

 

11.6        Other Termination.  For clarity, this Agreement may be terminated with respect to the Licensed Program pursuant to Section 5.4.3(a) in accordance with the terms thereof.

 

11.7        Effect of Termination or Expiration.

 

11.7.1     Termination by Kolltan for Cause or Insolvency.  Subject to Section 11.8, upon termination of this Agreement in its entirety or with respect to a Program by Kolltan pursuant to Section 11.2.1 or 11.3:

 

(a)           the rights of Kolltan under ARTICLE 2 (including Section 2.1), ARTICLE 3, ARTICLE 4 and ARTICLE 7 (with respect to the terminated Program, if applicable) shall remain in effect;

 

(b)           subject to clause (e) below, the rights of MedImmune under ARTICLE 7 (with respect to the terminated Program, if applicable) shall remain in effect solely to the extent related to Joint IP;

 

(c)           the obligations and covenants of MedImmune under ARTICLE 3, ARTICLE 7 and ARTICLE 9 (with respect to the terminated Program, if applicable) shall remain in effect;

 

(d)           the provisions of ARTICLE 6 (with respect to the terminated Program, if applicable) shall remain in effect;

 

(e)           the provisions of Sections 2.4, 7.1 and 7.2 and ARTICLE 10 (with respect to the terminated Program, if applicable) shall remain in effect indefinitely, and the provisions of ARTICLE 8 (with respect to the terminated Program, if applicable) shall remain in effect for a period of [**] years after such termination; and

 

(f)            in the case of any termination with respect to a Program, all rights and obligations of the Parties with respect to the other Program shall, to the extent in effect immediately prior to such termination, remain in effect.

 

11.7.2     Termination Involving MedImmune’s Payment of the Product Acquisition Price.  Subject to Section 11.8, upon termination of this Agreement with respect to the Licensed Program by Kolltan pursuant to Section 5.4.3(a):

 

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(a)           subject to clause (c) below, the rights and obligations of Kolltan under ARTICLE 7 with respect to the Licensed Program shall remain in effect solely to the extent related to any Joint IP other than Joint IP described in clauses (f) and (g) below;

 

(b)           MedImmune’s payment obligation under clause (y) of Section 5.4.3(a) shall remain in effect;

 

(c)           the rights of MedImmune under ARTICLE 7 with respect to the Licensed Program shall remain in effect, and subject to clause (d) below, the obligations of MedImmune under ARTICLE 7 with respect to the Licensed Program shall remain in effect solely to the extent related to any Joint IP other than Joint IP described in clauses (f) and (g) below;

 

(d)           the provisions of Sections 2.4, 7.1 and 7.2 with respect to the Licensed Program shall remain in effect indefinitely, and the provisions of ARTICLE 8 with respect to the Licensed Program shall remain in effect for a period of [**] years after such termination; provided, however, that from and after such termination, (i) any MedImmune Know-How, MedImmune Additional Know-How and Regulatory Documentation, in each case related to the Licensed Program (but excluding any MedImmune Know-How, MedImmune Additional Know-How and Regulatory Documentation related to the Follow-On Program), and any Regulatory Documentation and Know-How assigned to MedImmune pursuant to clause (f) below, shall be deemed to be the Confidential Information of MedImmune (and not Kolltan) and (ii) any Know-How exclusively licensed to MedImmune pursuant to clause (g) below and any Joint Know-How with respect to the Licensed Program shall be deemed to be Confidential Information of each Party;

 

(e)           the provisions of ARTICLE 10 with respect to the Licensed Program shall remain in effect; provided, however, that from and after such termination, in addition to the other grounds for indemnification set forth in Section 10.2, MedImmune shall defend, indemnify and hold harmless the Kolltan Indemnitees from and against any and all Losses relating to or in connection with a Third Party claim arising out of (i) any death, personal bodily injury or damage to real or tangible personal property alleged or proven to result, directly or indirectly, from the possession, use or consumption of, or treatment with, the Licensed Antibody or any Licensed Product, in each case by or on behalf of MedImmune or its Affiliates or sublicensees, including any product liability claims, and (ii) the Commercialization by or on behalf of MedImmune or its Affiliates or sublicensees of the Licensed Antibody or any Licensed Product;

 

(f)            Kolltan shall assign to MedImmune all of Kolltan’s right, title and interest in and to (i) any Regulatory Documentation Controlled by Kolltan or its Affiliates as of the effective date of such termination that is related to the Licensed Antibody or Licensed Products (but excluding any such Regulatory Documentation that is related to Follow-On Antibodies or Follow-On Products) and (ii) any Know-How or Patents that (x) are Controlled by Kolltan or its Affiliates as of the date of such termination and (y) solely relate to the Licensed Antibody or any Licensed Product or the Manufacture of the Licensed Antibody or any Licensed Product;

 

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(g)           Kolltan hereby grants to MedImmune, effective as of the date of such termination, an exclusive, royalty-free license, with the right to grant sublicenses, under any Know-How or Patents (other than those included in clause (f) above) that (x) are Controlled by Kolltan or its Affiliates as of the date of such termination or within [**] months thereafter and (y) are necessary to Research, Develop, Manufacture or Commercialize the Licensed Antibody or any Licensed Product in the Field in the Territory, solely for the purpose of Researching, Developing, Manufacturing and Commercializing the Licensed Antibody and Licensed Products in the Field in the Territory;

 

(h)           Kolltan shall reasonably cooperate with MedImmune to effect an orderly transfer or disclosure, as applicable, to MedImmune of the Know-How and Regulatory Documentation described in clauses (f) and (g) above; and

 

(i)            all rights and obligations of the Parties with respect to the Follow-On Program shall, to the extent in effect immediately prior to such termination, remain in effect.

 

11.7.3     Termination by MedImmune for Cause or Insolvency or by Kolltan for Regulatory Reasons.  Subject to Section 11.8, upon termination of this Agreement in its entirety or with respect to a Program by MedImmune pursuant to Section 11.2.2 or 11.3 or by Kolltan pursuant to Section 11.4:

 

(a)           subject to clause (c) below, the rights and obligations of Kolltan under ARTICLE 7 (with respect to the terminated Program, if applicable) shall remain in effect solely to the extent related to Joint IP;

 

(b)           the rights of MedImmune under ARTICLE 7 (with respect to the terminated Program, if applicable) shall remain in effect, and subject to clause (c) below, the obligations of MedImmune under ARTICLE 7 (with respect to the terminated Program, if applicable) shall remain in effect solely to the extent related to Joint IP;

 

(c)           the provisions of Sections 2.4, 2.5, 4.3 (with respect to the non-terminated Program, if applicable), 7.1 and 7.2 and ARTICLE 10 (with respect to the terminated Program, if applicable) shall remain in effect indefinitely, and the provisions of ARTICLE 8 (with respect to the terminated Program, if applicable) shall remain in effect for a period of [**] years after such termination; provided, however, that from and after such termination, (i) any MedImmune Know-How, MedImmune Additional Know-How and Regulatory Documentation (if applicable, in each case related to the terminated Program but excluding any MedImmune Know-How, MedImmune Additional Know-How and Regulatory Documentation related to the other Program) shall be deemed to be the Confidential Information of MedImmune (and not Kolltan) and (ii) any Joint Know-How (if applicable, related to the terminated Program) shall be deemed to be the Confidential Information of each Party;

 

(d)           solely in the case of termination with respect to the Licensed Program, in the event that MedImmune, in its sole discretion, requests in writing, Kolltan shall assign to MedImmune all of Kolltan’s right, title and interest in and to (i) any Regulatory Documentation Controlled by Kolltan as of the effective date of such termination that is related to the Licensed Antibody or Licensed Products (but excluding any such Regulatory

 

64

 

Documentation that is related to Follow-On Antibodies or Follow-On Products), (ii) all data and information to be provided to MedImmune under Section 5.1 of this Agreement, to the extent then available and not previously provided to MedImmune, and (iii) any Know-How or Patents that (x) were licensed or assigned by MedImmune or its Affiliates to Kolltan pursuant to this Agreement and (y) solely relate to the Licensed Antibody or any Licensed Product or the Manufacture of the Licensed Antibody or any Licensed Product, and Kolltan shall reasonably cooperate with MedImmune to effect an orderly transfer of such Regulatory Documentation and information to MedImmune;

 

(e)           solely in the case of termination with respect to the Licensed Program, in the event that MedImmune, in its sole discretion, requests in writing, the Parties shall enter into good faith negotiations with respect to an agreement pursuant to which Kolltan would grant to MedImmune a license under the Kolltan IP to Research, Develop, Manufacture and Commercialize the Licensed Antibody and Licensed Products, with terms regarding degree of exclusivity, royalty or other payments, access to or assignment of technical and other information or materials owned or controlled by Kolltan or its Affiliates, transfer or amendment of applicable agreements or arrangements with Third Parties and other appropriate transition matters to be negotiated in good faith;

 

(f)            Kolltan shall continue to communicate with Regulatory Authorities and complete any activities as required by Applicable Law with respect to its Development and Commercialization activities with respect to such Program hereunder; and

 

(g)           in the case of any termination with respect to a Program, all rights and obligations of the Parties with respect to the other Program shall, to the extent in effect immediately prior to such termination, remain in effect.

 

11.7.4     Termination with respect to the Licensed Program upon Effective Date of Co-Development and Co-Commercialization Agreement or Auction License Agreement.  Subject to Section 11.8, upon termination of this Agreement with respect to the Licensed Program pursuant to Section 11.5:

 

(a)           except as otherwise expressly set forth in the Co-Development and Co-Commercialization Agreement or Auction License Agreement, the provisions of Sections 2.4, 7.1 and 7.2 and ARTICLE 10 with respect to the Licensed Program shall remain in effect indefinitely, and the provisions of ARTICLE 8 with respect to the Licensed Program shall remain in effect for a period of [**] years after such termination;

 

(b)           solely in the case of termination pursuant to the second sentence of Section 11.5, the Parties’ obligations under Section 5.4.3(e)(iv)  shall remain in effect; and

 

(c)           all rights and obligations of the Parties with respect to the Follow-On Program shall, to the extent in effect immediately prior to such termination, remain in effect.

 

11.7.5     Expiration.  Subject to Section 11.8, upon expiration of this Agreement in accordance with Section 11.1:

 

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(a)           the rights, licenses and sublicenses granted to Kolltan hereunder with respect to the Licensed Antibody, Licensed Products, Follow-On Antibodies and Follow-On Products shall, to the extent in effect immediately prior to such expiration, remain in effect but (to the extent they have not already done so) become fully paid-up, royalty-free, transferable (to the extent not transferable previously), perpetual and irrevocable; and

 

(b)           the provisions of Section 2.4, ARTICLE 7 (solely with respect to the MedImmune Additional Patents and the Joint IP) and ARTICLE 10 shall, to the extent in effect immediately prior to such expiration, remain in effect indefinitely, and the provisions of ARTICLE 8 shall, to the extent in effect immediately prior to such expiration, remain in effect for a period of [**] years after such termination.

 

11.7.6     Effect of Termination on Sublicenses Granted by Kolltan.  In the event that Kolltan grants to any Third Party any sublicense under any license or sublicense granted to Kolltan under Section 2.1 (the “Sublicensed Rights”), upon any termination of this Agreement in its entirety or with respect to the applicable Program that results in the termination of Kolltan’s rights to the Sublicensed Rights, if as of such termination the applicable sublicensee is not in breach of its obligations under the applicable sublicense agreement with Kolltan, then MedImmune shall, upon the reasonable request of such sublicensee, grant such sublicensee a license or sublicense, as applicable, under the Sublicensed Rights on substantially the same terms as Kolltan had previously granted such sublicensee a sublicense under the Sublicensed Rights.

 

11.8        Accrued Rights; Surviving Provisions.

 

11.8.1     Accrued Rights.  Termination or expiration of this Agreement in its entirety or with respect to a Program for any reason shall be without prejudice to any rights that shall have accrued to the benefit of any Party prior to such termination or expiration, including any rights of Kolltan under Section 6.4.5 and any rights of MedImmune under Section 3.5.2 or Sections 6.6 through 6.10, and any and all damages or remedies arising from any breach hereunder.  Such termination or expiration shall not relieve any Party from obligations which are expressly indicated to survive termination of this Agreement.

 

11.8.2     Surviving Provisions.  The provisions of Sections 5.4.4, 6.6 through 6.9 (solely with respect to amounts accrued but unpaid as expiration or termination), 6.10, 9.4, 11.7 and this Section 11.8 and ARTICLE 12, and any applicable definitions in ARTICLE 1, shall survive any expiration or termination of this Agreement in its entirety or with respect to a Program for any reason, in accordance with their respective terms and conditions, and for the duration stated or, if no duration is stated, indefinitely.

 

ARTICLE 12
 MISCELLANEOUS

 

12.1        Dispute Resolution by Executive Officers.  In the event of any dispute between the Parties arising out of or in connection with this Agreement, including any dispute regarding the interpretation, effect, termination, validity, performance and/or breach of this Agreement or any amendments hereto (each, a “Dispute”), either Party may, by written notice to the other Party, refer the Dispute to the Executive Officers for attempted resolution by good faith

 

66

 

negotiations for a period of [**] days after such notice is received (or such longer time as may be agreed by the Executive Officers) (the “Resolution Period”).  In the event a Dispute is referred to the Executive Officers in accordance with the preceding sentence, (a) the Parties shall cause their respective Executive Officers to meet with each other and attempt to resolve such Dispute through good faith negotiations for the duration of the Resolution Period and (b) if the Parties are able to resolve such Dispute during the Resolution Period, upon the request of either Party, a memorandum setting forth the resolution shall be prepared and signed by the Parties.  Notwithstanding anything to the contrary in this Agreement, neither Party shall initiate any action, suit or proceeding under Section 12.2 (other than any action for a temporary restraining order, preliminary injunction or other similar interim or conservatory relief) unless the applicable Dispute has been referred to the Executive Officers under this Section 12.1 and the Resolution Period with respect to such Dispute has expired.

 

12.2        Jurisdiction and Venue.

 

12.2.1     Subject to Section 12.2.2, each Party (a) irrevocably submits to the exclusive jurisdiction of the federal and state courts located in the City of New York, State of New York (the “Court”) with respect to any Dispute, and (b) agrees not to raise any objection at any time to the laying or maintaining of the venue of any action, suit or proceeding for such purpose in any such Court, irrevocably waives any claim that such action, suit or other proceeding has been brought in an inconvenient forum and further irrevocably waives the right to object, with respect to such action, suit or other proceeding, that such Court does not have any jurisdiction over such Party, and (c) agrees not to commence any action, suit or proceeding with respect to any Dispute except in such Court.  Each Party further agrees that service of any process, summons, notice or document by U.S. registered mail to such Party’s notice address provided for in this Agreement shall be effective service of process for any action, suit or proceeding in the Court with respect to any matters to which it has submitted to jurisdiction in this Section 12.2.1.

 

12.2.2     Notwithstanding anything in this Agreement to the contrary, any Patent Matter shall be subject to adjudication in accordance with the laws of the country in which the applicable Patent is pending or has been issued.  The Parties agree that the venue of any such adjudication shall be (a) if the applicable Patent is pending in or has been issued by the United States, a U.S. federal district court sitting in the City of New York, State of New York, and (b) if the applicable Patent is pending in or has been issued by any other country, any competent court having jurisdiction over the subject of the Patent Matter sitting in the capital of such country (or if there is not any such competent court in the capital, a location reasonably proximate to the capital).  For any Patent Matter and any applicable court as described in the previous sentence, each Party (w) irrevocably submits to the jurisdiction of such court, (x) agrees not to raise any objection at any time to the laying or maintaining of the venue of any action, suit or proceeding relating to such Patent Matter in such court, (y) irrevocably waives any claim that any action, suit or proceeding relating to such Patent Matter in such court has been brought in an inconvenient forum, including any forum non conveniens argument, and (z) irrevocably waives the right to object, with respect to any action, suit or proceeding relating to such Patent Matter, that such court does not have any jurisdiction over such Party.

 

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12.3        Governing Law.  This Agreement and any dispute arising from the performance or breach hereof shall be governed by and construed and enforced in accordance with the laws of New York without reference to conflicts of laws principles.

 

12.4        Assignment.

 

12.4.1     By MedImmune.  MedImmune may not assign this Agreement or any of its rights or obligations hereunder without the prior written consent of Kolltan, which consent shall not be unreasonably withheld or delayed.  Notwithstanding the foregoing, MedImmune may assign its rights or obligations hereunder without the prior written consent of Kolltan (but shall notify Kolltan in writing promptly after any such assignment) (a) subject to the next sentence, by way of sale of itself or the sale of the portion of its business to which this Agreement relates, through merger, sale of assets or sale of stock or ownership interest, provided that the assignee shall expressly agree to be bound by MedImmune’s obligations hereunder and that such sale is not primarily for the benefit of MedImmune’s creditors, and (b) to any of its Affiliates, provided that the assignee shall expressly agree to be bound by MedImmune’s obligations hereunder and that MedImmune shall remain responsible for its applicable Affiliate’s performance hereunder.  In the event of an acquisition of MedImmune or its assets or equity by a Third Party, such acquisition shall not provide Kolltan with rights or access to (x) any Patents or Know-How of such Third Party, or any Affiliate of such Third Party that becomes an Affiliate of MedImmune as a result of such acquisition, that exists prior to such acquisition, or (y) any Patents or Know-How of such Third Party, or any Affiliate of such Third Party that becomes an Affiliate of MedImmune as a result of such acquisition, that are filed or developed, as the case may be, after the date of such acquisition, in the case of (y) for so long as MedImmune (or, in the case of an acquisition of MedImmune’s assets by such Third Party, the applicable program of such Third Party) continues to conduct any activities related to this Agreement independently of such Third Party (or, in the case of an acquisition of MedImmune’s assets by such Third Party, any other programs of such Third Party), or such Affiliate of such Third Party, and without any sharing or transfer of relevant Know-How.

 

12.4.2     By Kolltan.

 

(a)           Kolltan may not assign this Agreement or any of its rights or obligations hereunder without the prior written consent of MedImmune, which consent shall not be unreasonably withheld or delayed.  Notwithstanding the foregoing, Kolltan may assign its rights or obligations hereunder without the prior written consent of MedImmune (but shall notify MedImmune in writing promptly after any such assignment):

 

(i)            prior to the Option Termination Date and subject to Section 12.4.2(b), by way of sale of itself or the sale of the portion of its business to which this Agreement relates (the “Triggering Sale”), through merger, sale of assets or sale of stock or ownership interest, to any Third Party that as of the time of such Triggering Sale (x) is not Commercializing a Competing Product or (y) has not enrolled the first patient in a Clinical Trial of a Competing Product, which Clinical Trial for such Competing Product is: (1) a Phase 3 Clinical Trial, if, as of the time of such Triggering Sale, Kolltan has enrolled the first patient in a Phase 3 Clinical Trial of a Licensed Product; (2) a Phase 2 Clinical Trial or Phase 3 Clinical Trial, if, as of the time of such Triggering Sale, Kolltan has enrolled the first patient in a Phase 2

 

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Clinical Trial of the Licensed Product but has not enrolled the first patient in a Phase 3 Clinical Trial of the Licensed Product; or (3) a Phase 1 Clinical Trial, Phase 2 Clinical Trial or Phase 3 Clinical Trial, if as of the time of such Triggering Sale, Kolltan either (A) has not enrolled the first patient in any Clinical Trial of the Licensed Product or (B) has enrolled the first patient in a Phase 1 Clinical Trial of the Licensed Product but has not enrolled the first patient in a Phase 2 Clinical Trial of the License Product or a Phase 3 Clinical Trial of the Licensed Product (a “Same or Later Stage Clinical Trial”), provided that the assignee shall expressly agree to be bound by Kolltan’s obligations hereunder and that such Triggering Sale is not primarily for the benefit of Kolltan’s creditors;

 

(ii)           on or after the Option Termination Date and subject to Section 12.4.2(b), by way of a Triggering Sale to any Third Party, provided that the assignee shall expressly agree to be bound by Kolltan’s obligations hereunder and that such Triggering Sale is not primarily for the benefit of Kolltan’s creditors; provided, however, that if, as of the time of such Triggering Sale, such Third Party (x) is Commercializing a Competing Product or (y) has enrolled the first patient in a Same or Later Stage Clinical Trial of a Competing Product, then, at such Third Party’s election, which shall be delivered by written notice to MedImmune within [**] days after the date of such Triggering Sale, such Third Party shall, as promptly as practicable but in no event more than one year following the date of such Triggering Sale, either:

 

(x)           divest all of its right, title and interest in and to any Competing Product that, as of the time of such Triggering Sale, such Third Party is Commercializing or with respect to which such Third Party has enrolled the first patient in a Same or Later Stage Clinical Trial (and any failure by such Third Party to consummate such divestment within such time period shall be deemed a material breach of Kolltan’s obligations hereunder); or

 

(y)           assign all of its rights and obligations under this Agreement with respect to the Licensed Program to a Third Party that as of the time of such assignment (1) is not Commercializing a Competing Product or (2) has not enrolled the first patient in a Same or Later Stage Clinical Trial of a Competing Product; and

 

(iii)          to any of its Affiliates, provided that the assignee shall expressly agree to be bound by Kolltan’s obligations hereunder and that Kolltan shall remain responsible for its applicable Affiliate’s performance hereunder.

 

(b)           Limitations on Reach-Through.  In the event of any acquisition of Kolltan or its assets or equity by a Third Party under Section 12.4.2(a)(i) or 12.4.2(a)(ii), such acquisition shall not provide MedImmune with rights or access to (i) any Patents or Know-How of such Third Party, or any Affiliate of such Third Party that becomes an Affiliate of Kolltan as a result of such acquisition, that exists prior to such acquisition, or (ii) any Patents or Know-How of such Third Party, or any Affiliate of such Third Party that becomes an Affiliate of Kolltan as a result of such acquisition, that are filed or developed, as the case may be, after the date of such acquisition, in the case of (ii) for so long as Kolltan (or, in the case of an acquisition of Kolltan’s assets by such Third Party, the applicable program of such Third Party) continues to conduct any activities related to this Agreement independently of such Third Party (or, in the case of an

 

69

 

acquisition of Kolltan’s assets by such Third Party, any other programs of such Third Party), or such Affiliate of such Third Party, and without any sharing or transfer of relevant Know-How.

 

12.4.3     By Either Party.  Subject to the foregoing provisions of this Section 12.4, this Agreement shall be binding upon the successors and permitted assigns of the Parties and the name of a Party appearing herein shall be deemed to include the names of such Party’s successors and permitted assigns to the extent necessary to carry out the intent of this Agreement.  Any assignment not in accordance with this Section 12.4 shall be void.

 

12.5        Force Majeure.  Each Party shall be excused from the performance of its obligations under this Agreement to the extent that such performance is prevented by force majeure (defined below) and the nonperforming Party promptly provides notice of the prevention to the other Party.  Such excuse shall be continued so long as the condition constituting force majeure continues and the nonperforming Party uses commercially reasonable efforts to remove the condition.  For purposes of this Agreement, “force majeure” shall include conditions beyond the control of the Parties, including an act of God, voluntary or involuntary compliance with any regulation, law or order of any government, war, act of terror, civil commotion, labor strike or lock-out, epidemic, failure or default of public utilities or common carriers, destruction of production facilities or materials by fire, earthquake, storm or like catastrophe.

 

12.6        Notices.  Any notice or request required or permitted to be given under or in connection with this Agreement shall be deemed to have been sufficiently given if in writing and personally delivered or sent by facsimile transmission (receipt verified) or reputable international business courier (signature required), prepaid, to the Party for which such notice is intended, at the address set forth for such Party below:

 

If to MedImmune,

 

addressed to:
 MedImmune, LLC
 One MedImmune Way
 Gaithersburg, MD 20878
 Attention: EVP, Research
 Facsimile: (301) 398-8268

 

with a copy to:
 MedImmune, LLC
 One MedImmune Way
 Gaithersburg, MD 20878
 Attention: Legal Department
 Facsimile: (301) 398-9263

 

70

 

If to Kolltan,

 

addressed to:
 Bulldog Pharmaceuticals, Inc.
 Midocean Chambers, Road Town, Tortola
 British Virgin Islands
 Attention: Chief Executive Officer
 Facsimile: +1 (284) 494-4568

 

with a copy to:
 Kolltan Pharmaceuticals, Inc.
 300 George St., Suite 530
 New Haven, CT 06511
 Attention: General Counsel
 Facsimile: (203) 773-1300

 

with a copy (which shall not constitute notice) to:
 Covington & Burling LLP
 One Front Street
 San Francisco, CA 94111
 Attention:  Jim Snipes
 Facsimile:  415-955-6571

 

or to such other address for such Party as it shall have specified by like notice to the other Parties, provided that notices of a change of address shall be effective only upon receipt thereof.  The effective date of any notice shall be (a) the date of delivery, if personally delivered during the recipient’s normal business hours (and otherwise the first (1st) Business Day after the date of delivery), (b) the Business Day following verification of receipt, if sent by facsimile, and (c) the Business Day after dispatch, if sent by courier service.

 

12.7        Export Clause.  Each Party agrees that, as of the Effective Date, it will not export or re-export restricted commodities or the technical data of the other Party in any form except in compliance with Applicable Law (including obtaining any required United States and non-United States government licenses).

 

12.8        Waiver.  Neither Party may waive or release any of its rights or interests in this Agreement except in writing.  The failure of either Party to assert a right hereunder or to insist upon compliance with any term of this Agreement shall not constitute a waiver of that right or excuse a similar subsequent failure to perform any such term or condition.  No waiver by either Party of any condition or term in any one or more instances shall be construed as a continuing waiver of such condition or term or of another condition or term.

 

12.9        Severability.  If any provision hereof should be held invalid, illegal or unenforceable in any jurisdiction, the Parties shall negotiate in good faith a valid, legal and enforceable substitute provision that most nearly reflects the original intent of the Parties and all other provisions hereof shall remain in effect in such jurisdiction and shall be liberally construed in order to carry out the intentions of the Parties hereto as nearly as may be possible.  Such

 

71

 

invalidity, illegality or unenforceability shall not affect the validity, legality or enforceability of such provision in any other jurisdiction.

 

12.10      Entire Agreement.  This Agreement, together with the Schedules and Exhibits hereto, set forth all the covenants, promises, agreements, warranties, representations, conditions and understandings between the Parties as to the subject matter of this Agreement and supersedes and terminates all prior agreements and understanding between the Parties with respect to the subject matter hereof.  In particular, and without limitation, this Agreement supersedes and replaces the Existing Confidentiality Agreement and any and all term sheets relating to the transactions contemplated by this Agreement and exchanged between the Parties prior to the Effective Date.  There are no covenants, promises, agreements, warranties, representations, conditions or understandings, either oral or written, between the Parties as to the subject matter of this Agreement other than as set forth herein and therein.  No subsequent alteration, amendment, change or addition to this Agreement shall be binding upon the Parties hereto unless reduced to writing and signed by the respective authorized officers of the Parties.

 

12.11      Independent Contractors.  Nothing herein shall be construed to create any relationship of employer and employee, agent and principal, partnership or joint venture between the Parties.  Each Party is an independent contractor.  Neither Party shall assume, either directly or indirectly, any liability of or for the other Party.  Neither Party shall have the authority to bind or obligate the other Party and neither Party shall represent that it has such authority.

 

12.12      Headings; Construction; Interpretation.  Headings used herein are for convenience only and shall not in any way affect the construction of or be taken into consideration in interpreting this Agreement.  The terms of this Agreement represent the results of negotiations between the Parties and their representatives, each of which has been represented by counsel of its own choosing, and neither of which has acted under duress or compulsion, whether legal, economic or otherwise.  Accordingly, the terms of this Agreement shall be interpreted and construed in accordance with their usual and customary meanings, and each of the Parties hereto hereby waives the application in connection with the interpretation and construction of this Agreement of any rule of Applicable Law to the effect that ambiguous or conflicting terms or provisions contained in this Agreement shall be interpreted or construed against the Party whose attorney prepared the executed draft or any earlier draft of this Agreement.  Any reference in this Agreement to an Article, Section, subsection, paragraph, clause, Schedule or Exhibit shall be deemed to be a reference to any Article, Section, subsection, paragraph, clause, Schedule or Exhibit, of or to, as the case may be, this Agreement.  Except where the context otherwise requires, (a) any definition of or reference to any agreement, instrument or other document refers to such agreement, instrument other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein or therein); (b) any reference to any Applicable Law refers to such Applicable Law as from time to time enacted, repealed or amended; (c) the words “herein,” “hereof” and “hereunder,” and words of similar import, refer to this Agreement in its entirety and not to any particular provision hereof; and (d) the words “include,” “includes,” “including,” “exclude,” “excludes,” and “excluding,” shall be deemed to be followed by the phrase “but not limited to,” “without limitation” or words of similar import.

 

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12.13      Further Actions.  Each Party shall execute, acknowledge and deliver such further instruments, and do all such other acts, as may be necessary or appropriate in order to carry out the expressly stated purposes and the clear intent of this Agreement.

 

12.14      Parties in Interest.  All of the terms and provisions of this Agreement shall be binding upon, and shall inure to the benefit of and be enforceable by the Parties hereto and their respective successors, heirs, administrators and permitted assigns.

 

12.15      Performance by Affiliates.  To the extent that this Agreement imposes obligations on Affiliates of a Party, such Party agrees to cause its Affiliates to perform such obligations.

 

12.16      Counterparts.  This Agreement may be signed in counterparts, each and every one of which shall be deemed an original, notwithstanding variations in format or file designation which may result from the electronic transmission, storage and printing of copies from separate computers or printers.  Facsimile signatures and signatures transmitted via portable document format (PDF) shall be treated as original signatures.

 

[Signature page to follow]

 

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IN WITNESS WHEREOF, and intending to be legally bound hereby, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the Effective Date.

 

 

	
MEDIMMUNE,   LLC
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Bahija Jallal
    	
 
    
	
Name:  Bahija   Jallal
    	
 
    
	
Title:   EVP
    	
 
    
	
 
    	
 
    
	
BULLDOG   PHARMACEUTICALS, INC.
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Gerald McMahon
    	
 
    
	
Name:   Gerald McMahon
    	
 
    
	
Title:   Director
    	
 
    

 

[Signature Page]

 

 

Exhibit 1.41

 

In-License Agreements

 

1.              MRC Agreement

2.              Dyax Agreement

3.              UT Agreement

4.              Lonza Agreement

 

Exhibit 1.41 - 1

 

Exhibit 1.42

 

In-Licensed IP

 

1.              CAT/MRC Patent Rights

 

	
Country
    	
 
    	
ApplicationStatus
    	
 
    	
AppNumber
    	
 
    	
FilDate
    	
 
    	
PatNumber
    
	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    

 

Confidential Materials omitted and filed separately with the Securities and Exchange Commission. A total of 5 pages were omitted. [**]

 

2.              Dyax Patent Rights

 

[**]

 

3.              UTSW Patent Rights

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ctry
    	
 
    	
Status
    	
 
    	
Application
   Number
    	
 
    	
Filing Date
    	
 
    	
Patent Number
    	
 
    	
Issue Date
    
	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    

 

Confidential Materials omitted and filed separately with the Securities and Exchange Commission. A total of 1 page was omitted. [**]

 

4.              Lonza Patent Rights

[**]

 

	
Territory
    	
 
    	
Appl. No.
    	
 
    	
Patent No.
    
	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    
	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    
	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    
	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    
	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    
	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    
	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    

 

[**]

 

[**]

 

	
Territory
    	
 
    	
Patent or Patent
   Appl. No.
    	
 
    	
 
    
	
[**]
    	
 
    	
[**]
    	
 
    	
 
    
	
[**]
    	
 
    	
[**]
    	
 
    	
 
    
	
[**]
    	
 
    	
[**]
    	
 
    	
 
    
	
[**]
    	
 
    	
[**]
    	
 
    	
 
    

 

[**]

 

Exhibit 1.422 - 1

 

	
Territory
    	
 
    	
Patent or Patent
   Appl. No.
    	
 
    	
 
    
	
[**]
    	
 
    	
[**]
    	
 
    	
 
    
	
[**]
    	
 
    	
[**]
    	
 
    	
 
    
	
[**]
    	
 
    	
[**]
    	
 
    	
 
    
	
[**]
    	
 
    	
[**]
    	
 
    	
 
    

 

[**]

 

a.              and (a) all patents and patent applications in any country or supranational jurisdiction corresponding to national stage counterparts to these patents and patent applications, and (b) any substitutions, divisionals, continuations, continuations-in-part, provisional applications, reissues, renewals, registrations, confirmations, re-examinations, extensions, supplementary protection certificates and the like of any such patents or patent applications, and (c) any other Patents licensed to MedImmune under the Lonza Agreement.

 

5.              Unpatented and technical Know-How related to subject matter disclosed in applications listed above.

 

Exhibit 1.422 - 2

 

Exhibit 1.96

 

Research Programs

 

Research study with external CRO, [**], titled:  In Vivo Evaluation of MEDI3379 and [**] Alone in [**] Models of [**] in [**] Mice

 

Exhibit 1.96 - 1

 

Exhibit 3.4.1

 

Certain Know-How to be Transferred

 

Confidential Materials omitted and filed separately with the Securities and Exchange Commission. A total of 2 pages were omitted. [**]

 

Exhibit 3.4.1 - 1

 

Exhibit 3.6.1

 

Inventory and Materials

 

Inventory (Unformulated Drug Substance and Drug Product)

 

[**]

 

Materials

 

[**]

 

Exhibit 3.6.1 - 1

 

Exhibit 3.6.2(a)

 

Inventory Storage, Formulation, Filling and Delivery

 

1.              Form of Licensed Antibody in the Inventory.  Without limiting Section 3.6.1 or Exhibit 3.6.1, the Licensed Antibody in the Inventory includes unformulated drug substance (“UDS”) and drug product in non-labeled vials (“DP”).

 

2.              Testing as of Effective Date.  Without limiting Section 3.6.2(c), MedImmune will communicate to Kolltan the results, as of the Effective Date, of any analytical testing and stability testing of the Inventory and will indicate whether (a) as of the Effective Date, the Inventory and Materials have been stored and maintained in accordance with the applicable storage specifications set forth in Exhibit 3.6.2(a)(i), (b) as of the Effective Date, stability testing of the Inventory has been conducted, and (c) as of the date of the last stability testing of the Inventory conducted prior to the Effective Date, the Inventory conformed to the applicable product specifications set forth in Exhibit 3.6.2(c)(i).

 

3.              Storage.  MedImmune will store the Inventory and Materials at MedImmune or MedImmune’s Third Party warehouse(s) (collectively, the “Warehouses”) for up to [**] days after the Effective Date without charge.  Kolltan will notify MedImmune within [**] days after the Effective Date of Kolltan’s decision to (a) continue storage of any or all quantities of the Inventory and the Materials at the Warehouses for a fee payable to MedImmune (“Storage Fee”) and/or (b) transfer any or all quantities of the the Inventory and Materials to a warehouse designated by Kolltan with transfer fees and storage fees for that warehouse paid directly by Kolltan.  If Kolltan elects continued storage of any quantites of the Inventory and Materials by MedImmune, the Parties shall, if applicable, mutally agree on the storage terms for the Materials (to the extent they have not done so already) and MedImmune will store such quantities at the Warehouses until (x) in the case of Inventory, the applicable quantity has expired as determined by the stability study for the Inventory (“Expiration Date”) or (y) in the case of Inventory and Materials, until directed by Kolltan to transfer the applicable quantity to a warehouse designated by Kolltan.  Any Inventory remaining in storage at the Warehouses after the Expiration Date will be destroyed or transferred to a warehouse designated by Kolltan, all according to Kolltan’s reasonable written instructions.  The Storage Fee will be a pass-through, without mark-up, of the storage fee paid by MedImmune for Kolltan’s Inventory and Materials at the Warehouses.  For so long as any part of the Inventory or Materials are stored at any Warehouse, Kolltan shall have the right, at reasonable times and upon reasonable advance notice, to reasonably inspect such Warehouse to confirm MedImmune’s compliance with its obligations under Section 3.6.2.

 

Exhibit 3.6.2(a) - 1

 

4.              Stability Studies.  MedImmune will continue to provide updates on the stability studies within [**] days after results become available under the stability study protocols, which will be provided to Kolltan.  MedImmune will charge a fee of $[**] for completion of the currently underway stability studies for Inventory.  To the extent that new stability studies for Inventory are required due to unforeseen circumstances, the Parties will discuss and agree on a reasonable fee.

 

5.              Delivery.  Kolltan will provide written instructions as to the timing and manner of delivery of Inventory and Materials out of storage.  MedImmune will deliver all Licensed Antibody in the Inventory as DP, i.e., drug product in non-labeled vialed form, unless otherwise requested by Kolltan.  MedImmune will not, and will have no obligation to, label or (subject to Section 6 below) package the Inventory.  MedImmune will prepare Inventory and Materials for shipment to Kolltan or to Kolltan’s designated Third Party.  At Kolltan’s request, MedImmune may recommend a contract manufacturer for labeling.  Kolltan will pay transfer costs to the contract manufacturer.

 

6.              Formulation and Filling.  When requested by Kolltan with no less than [**] months’ notice, MedImmune will fill DS into unlabeled vials and package them for shipment for a fee of $[**] per batch.  MedImmune will formulate UDS into DS for a fee of $[**] per batch.  At Kolltan’s request, MedImmune may recommend a contract manufacturer for filling, labeling and/or formulation and establish a plan for the transfer of the UDS and DS and the information necessary and customary in the industry to enable a Third Party to formulate UDS and fill DS for Kolltan.  Kolltan will pay for the cost of transfer to the contract manufacturer.

 

Exhibit 3.6.2(a) - 2

 

Exhibit 3.6.2(a)(i)

 

Inventory and Materials Storage Specifications

 

Drug Product:

Storage temperatures between [**]

Shipment temperatures between [**]

 

Unformulated Drug Substance:

Storage temperature at [**]

 

Master Cell Bank:

Stored in the [**].

 

Reference Standard

Storage temperature at less than [**]

 

Exhibit 3.6.2(a)(i) - 1

 

Exhibit 3.6.2(c)(i)

 

Inventory Product Specifications

 

In-process Targets for Process Intermediates

 

	
Product Name: MEDI3379 Unformulated Drug Substance (Process 1)
    	
Material Number: [**]
    
	
Formulation: [**]
    	
 
    
	
Storage Temperature: [**]
    	
Storage   Container: 16 L Celsius Bag
    
	
Maximum Dose: [**]
    	
Body Mass: 40 – 150 kg
    
	
Version: 1.0
    	
 
    
			

 

	
Test
    	
 
    	
Method Number
    	
 
    	
Target Expectations
    
	
Appearance
    	
 
    	
[**]
    	
 
    	
[**]
    
	
Total protein
    	
 
    	
[**]
    	
 
    	
[**]
    
	
pH
    	
 
    	
[**]
    	
 
    	
[**]
    
	
Reducing gel electrophoresis
    	
 
    	
[**]
    	
 
    	
[**]
    
	
Non-reducing gel electrophoresis
    	
 
    	
[**]
    	
 
    	
[**]
    
	
High performance size exclusion   chromatography (HPSEC)
    	
 
    	
[**]
    	
 
    	
[**]
    
	
Capillary isoelectric focusing   (cIEF)
    	
 
    	
[**]
    	
 
    	
[**]
    
	
MEDI3379 bioassay
    	
 
    	
[**]
    	
 
    	
[**]
    
	
Bioburden
    	
 
    	
[**]
    	
 
    	
[**]
    

 

Exhibit 3.6.2(c)(i) - 1

 

In-process Targets for Process Intermediates

 

	
Product Name: MEDI3379 Unformulated Drug Substance (Process 1)
    	
Material Number: [**]
    
	
Formulation: [**]
    	
 
    
	
Storage Temperature: [**]
    	
Storage   Container: 16 L Celsius Bag
    
	
Maximum Dose: [**]
    	
Body Mass: 40 – 150 kg
    
	
Version: 1.0
    	
 
    
	
 
    	
 
    
	
Endotoxin (LAL)
    	
QC-9744
    	
[**]
    
				

 

COMMENTS:

 

[**].

 

Revision History

 

	
Version
    	
 
    	
Reason
    
	
[**]
    	
 
    	
[**]
    

 

APPROVALS

 

	
Role
    	
 
    	
Printed Name
    	
 
    	
Signature
    
	
Lot Release
    	
 
    	
[**]
    	
 
    	
[**] 02 May 12
    
	
Analytical Biochemistry
    	
 
    	
[**]
    	
 
    	
[**] 3 May 12
    
	
Quality Assurance
    	
 
    	
[**]
    	
 
    	
[**] 04 May 12
    

 

Exhibit 3.6.2(c)(i) - 2

 

 

Master Specification for Clinical Trial Material

 

Product Information

 

	
Product Name: MEDI3379 Drug Product (Process 1)
    	
 
    
	
 
    	
 
    
	
Formulation:  [**]
    	
 
    
	
 
    	
 
    
	
Storage Condition: [**]
    	
Material Number: [**]
    
	
 
    	
 
    
	
Maximum Dose: [**]
    	
Body Weight Range: 40 – 150 kg
    
	
 
    	
 
    
	
Nominal Fill Volume: 1.0 mL
    	
Fill Volume: 1.3 mL
    
	
 
    	
 
    
	
Comments: Not applicable
    	
 
    

 

Alternate Storage Conditions

 

	
Storage Condition: Not applicable
    	
Material Number: Not applicable
    
	
 
    	
 
    
	
Storage Condition: Not applicable
    	
Material Number: Not applicable
    

 

Test, Method, and Acceptance Criteria

 

 

	
Test
    	
 
    	
Method
    	
 
    	
Acceptance Criteria
    
	
Appearance
    	
 
    	
[**]
    	
 
    	
[**]
    
	
pH
    	
 
    	
[**]
    	
 
    	
[**]
    
	
Total protein
    	
 
    	
[**]
    	
 
    	
[**]
    
	
Capillary isoelectric   focusing
    	
 
    	
[**]
    	
 
    	
[**]
    
	
MEDI3379 bioassay
    	
 
    	
[**]
    	
 
    	
[**]
    
	
Reducing gel   electrophoresis
    	
 
    	
[**]
    	
 
    	
[**]
    
	
Non-reducing gel   electrophoresis
    	
 
    	
[**]
    	
 
    	
[**]
    
	
High performance size   exclusion chromatography
    	
 
    	
[**]
    	
 
    	
[**]
    

 

Exhibit 3.6.2(c)(i) - 3

 

	
Test
    	
 
    	
Method
    	
 
    	
Acceptance Criteria
    
	
Endotoxin (LAL)
    	
 
    	
[**]
    	
 
    	
[**]
    
	
Sub-visible particles
    	
 
    	
[**]
    	
 
    	
[**]
    
	
Extractable volume
    	
 
    	
[**]
    	
 
    	
[**]
    
	
Osmolality
    	
 
    	
[**]
    	
 
    	
[**]
    
	
Sterility
    	
 
    	
[**]
    	
 
    	
[**]
    

 

Comments

 

[**]

 

Version History

 

	
Version
    	
 
    	
Reason
    
	
[**]
    	
 
    	
[**]
    

 

Exhibit 3.6.2(c)(i) - 4

 

Justification of Specification Worksheet
 (New Specifications Only)

 

Section 1:  Material Type Abbreviations

 

	
BIVBP
    	
= Bulk IV Bag Protectant
    
	
VIVBP
    	
= Vialed IV Bag Protectant
    
	
BD
    	
= Bulk Diluent
    
	
VD
    	
= Vialed Diluent
    
	
BP
    	
= Bulk Placebo
    
	
VP
    	
= Vialed Placebo
    
	
DS
    	
= Drug Substance
    
	
DP
    	
= Drug Product
    

 

Section 2:  Material Types

 

Material Type#1

 

	
Product Name: MEDI3379 Drug Product   (Process 1)
    	
Master Specification #: [**]
    	
Abbreviation: DP
    
	
Formulation: [**]
    	
 
    	
 
    
	
Storage Condition: [**]
    	
 
    	
Material Number: [**]
    
	
Nominal Fill Volume: 1.0mL
    	
Target Fill Volume: 1.3 mL
    	
 
    
					

 

Section 3:  Maximum Dosage

 

	
Maximum Dose
    	
 
    	
Applies to:
    	
 
    	
Reference
    	
 
    	
Justification
    
	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    

 

Exhibit 3.6.2(c)(i) - 5

 

Section 4:  Test, Acceptance Criteria and Justification

 

	
Text
    	
 
    	
Applies to:
    	
 
    	
Method
   Number
    	
 
    	
Acceptance Criteria
    	
 
    	
Justification
    
	
Appearance
    	
 
    	
DP
    	
 
    	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    
	
pH
    	
 
    	
DP
    	
 
    	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    
	
Total protein
    	
 
    	
DP
    	
 
    	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    
	
Capillary isoelectric focusing
    	
 
    	
DP
    	
 
    	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    
	
MEDI3379 bioassay
    	
 
    	
DP
    	
 
    	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    
	
Reducing gel electrophoresis
    	
 
    	
DP
    	
 
    	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    
	
Non-reducing gel electrophoresis
    	
 
    	
DP
    	
 
    	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    
	
High performance size exclusion   chromatography
    	
 
    	
DP
    	
 
    	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    
	
Endotoxin (LAL)
    	
 
    	
DP
    	
 
    	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    
	
Sub-visible particles
    	
 
    	
DP
    	
 
    	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    
	
Extractable volume
    	
 
    	
DP
    	
 
    	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    
	
Osmolality
    	
 
    	
DP
    	
 
    	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    
	
Sterility
    	
 
    	
DP
    	
 
    	
Contract lab
    	
 
    	
[**]
    	
 
    	
[**]
    

 

Section 5:  Comments

 

[**]

 

Section 6:  Approvals

 

	
Role
    	
 
    	
Name
    	
 
    	
Signature
    	
 
    	
Date
    
	
CMC Analytical Representative
    	
 
    	
[**]
    	
 
    	
[**]
    	
 
    	
13 June 12
    

 

Exhibit 3.6.2(c)(i) - 6

 

Justification of Specification Worksheet
 (New Specifications Only)

 

	
CMC Team Leader
    	
 
    	
[**]
    	
 
    	
[**]
    	
 
    	
14 June 12
    
	
MSWC Coordinator
    	
 
    	
[**]
    	
 
    	
[**]
    	
 
    	
15 June 12
    
	
ABC Senior Management
    	
 
    	
[**]
    	
 
    	
[**]
    	
 
    	
18 June 12
    

 

Exhibit 3.6.2(c)(i) - 7

 

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

 

Exhibit 3.6.2(c)(i) - 8

 

Exhibit 3.6.3(a)

 

Clinical and Research Supply Agreement Principles

 

1.             Supply Agreement - Overview

 

The Clinical and Research Supply Agreement (for purposes of this Exhibit, the “Supply Agreement”) will consist of general principles set forth in a main agreement and project addenda that will be entered into for specific manufacturing projects or for particular services (“Project Addenda”).  At this time the Parties anticipate separate Project Addenda for (1) research supply and Phase 1 & Phase 2 clinical supply, (2) Phase 3 clinical supply, and (3) special services not covered by the supply Project Addenda such as technology transfer (except for technology transfer by MedImmune upon termination as described below), process development, formulation development and the like.  Drug substance and drug product containing Licensed Antibody and Licensed Product are referred to in this Exhibit as “Product.”

 

1.1                     Manufacture.

 

MedImmune will manufacture for Kolltan those quantities of Product required by a Project Addendum.  Product will be manufactured and delivered in accordance with the Project Addendum and the Quality Agreement.  The Parties will agree on a forecasting procedure which may include a long term forecast and a binding forecast.

 

1.2                     Data Transfer.

 

MedImmune will provide to Kolltan a mutually agreed data set for each lot of Product to enable Kolltan to prepare documents required for Kolltan’s regulatory agency filings.  The foregoing sentence notwithstanding, MedImmune has no obligation under the Supply Agreement to disclose to Kolltan any MedImmune Manufacturing Know How related to MedImmune proprietary cell culture media and nutrient feeds used in the manufacturing process.

 

1.3                     Delivery Terms; Title and Risk of Loss.

 

Delivery terms will be FCA (Incoterms 2010) MedImmune’s facility.  Title and risk of loss or damage will pass to Kolltan upon delivery of Product to the designated carrier at MedImmune’s facility.  Kolltan will be responsible for obtaining governmental permits, consents and approvals required for export out of country of origin and for import into the destination country.

 

1.4                     Final Release of Product.

 

MedImmune will perform a manufacturer’s release of Product and will provide Kolltan with a certificate of analysis.  Kolltan will perform the final release of Product.

 

1.5                     Regulatory Matters.

 

When requested by Kolltan, MedImmune will provide to Kolltan documentation in support of GMP Manufacture of Product for filing by Kolltan with regulatory authorities in the U.S., any of the member states of the European Union, or other jurisdictions mutually agreed in writing.  If supporting such approval would require material changes or significant resources, then the Parties will first prepare a written action plan, which includes responsibilities and costs.

 

Exhibit 3.6.3(a) - 1

 

1.6                     Assistance to Kolltan.

 

MedImmune will provide reasonable assistance to Kolltan with respect to any filings related to the Product that Kolltan may wish to make to a regulatory authority; such assistance may include providing to Kolltan requested documentation with respect to the services performed under the Supply Agreement.  MedImmune further will provide reasonable assistance to Kolltan with respect to Kolltan responding to regulatory authorities.  Any additional assistance will be subject to a separate Project Addendum with a separate fee.

 

1.7                     Product Warranties; Acceptance and Rejection; Failure to Supply.

 

MedImmune will make customary warranties regarding any Product delivered to Kolltan under the Supply Agreement.  The Supply Agreement will contain procedures for acceptance and rejection of Product and procedures for dispute resolution related to rejection of Product.  The Supply Agreement will specify appropriate remedies for Kolltan if MedImmune fails to supply Product in a timely manner in accordance with the applicable warranties.

 

1.8                     Subcontractors

 

MedImmune may engage subcontractors identified on a list agreed by the Parties and attached as an exhibit to the Supply Agreement, to carry out MedImmune’s responsibilities under the Supply Agreement, provided that such subcontractors are subject to the applicable terms of the Supply Agreement and Quality Agreement.  The list of approved subcontractors may be updated from time to time by MedImmune with Kolltan’s prior written consent, which consent will not be unreasonably withheld.  MedImmune will remain responsible for the peformance by its subcontractors of its obligations under the Supply Agreement.

 

2.             Quality; Audit

 

A quality agreement will be executed at the same time as, or prior to, the execution of a Project Addendum for GMP manufacture (the “Quality Agreement”).  The Supply Agreement will include rights for Kolltan to audit and inspect MedImmune’s books, records and facilities as reasonably required to comply with regulatory requirements or confirm MedImmune’s compliance with its obligations under the Supply Agreement.

 

3.             Pricing

 

3.1.         MedImmune will supply Product to Kolltan at rates not materially different from those charged by third party contract manufacturers.

 

3.2.         Kolltan will pay invoices within [**] days after receipt.

 

4.             Compliance with Legal and Regulatory Requirements

 

4.1.         Appropriate provisions will be included in the Supply Agreement to ensure that each Party complies with all relevant local, national and international legal or regulatory requirements and other relevant requirements applicable to the manufacture, handing, transport and storage of Product.

 

5.             Document Retention

 

5.1.         Appropriate provisions will be included in the Supply Agreement with regard to maintaining appropriate documentation for patent and regulatory purposes and in full compliance with all applicable laws.

 

Exhibit 3.6.3(a) - 2

 

6.             Product Security and Waste Disposal

 

6.1.         Appropriate provisions will be included in the Supply Agreement with regard to product security and waste handling.

 

7.             Ownership of Results and Background IPR

 

7.1.         The applicable intellectual property provisions of the Agreement will be reflected as appropriate in the Supply Agreement.

 

8.             General Provisions

 

8.1.         Each Party agrees and acknowledges that the Supply Agreement will contain a number of other provisions that are standard in the biopharmaceutical manufacture industry, including with respect to insurance, indemnification, confidentiality, assignment, governing law and jurisdiction, which will not conflict or be inconsistent with the provisions of the Agreement.

 

9.             Termination

 

9.1.         Either Party shall have the right to terminate the Supply Agreement for convenience on appropriate notice (which in the case of MedImmune shall be on twelve (12) months’ notice not to be delivered prior to December 31, 2016); or for material breach of the Supply Agreement by the other Party or insolvency.

 

9.2.         The Supply Agreement shall automatically terminate:

 

9.2.1.                  upon termination of the Agreement in its entirety by MedImmune due to Kolltan’s material breach of the Agreement or insolvency; and

 

9.2.2.                  upon termination of the Agreement by Kolltan with respect to each of the Licensed Program and the Follow-On Program under Section 11.4 of the Agreement.

 

9.3.         Without limiting Section 3.6.3(b) of the Agreement (to the extent it survives termination of the Agreement, if applicable), in the event that the Supply Agreement is terminated other than (a) by MedImmune for Kolltan’s material breach of the Supply Agreement or insolvency or (b) as described in Section 9.2 of this Exhibit, MedImmune will perform such technology and knowledge transfer required to ensure continuity of supply for Kolltan.

 

Exhibit 3.6.3(a) - 3

 

Exhibit 5.4.1(c)

 

Co-Development and Co-Commercialization Agreement Terms

 

Capitalized terms used but not defined in this Exhibit shall have the meanings given to them in the Agreement.

 

	
Scope
    	
 
    	
The   Co-Development and Co-Commercialization Agreement shall set forth the rights   and obligations of the Parties with respect to the Development and   Commercialization of the Licensed Antibody and Licensed Products in the Field   in the Territory.
    
	
 
    	
 
    	
 
    
	
Upfront   payment
    	
 
    	
Within   [**] days after execution of the Co-Development and Co-Commercialization   Agreement, MedImmune shall pay to Kolltan (a) if the Co-Development and   Co-Commercialization Agreement is entered pursuant to   Section 5.4.3(c) of the Agreement, an amount equal to [**] percent   ([**]%) of the Product Acquisition Price, or (b) if the Co-Development   and Co-Commercialization Agreement is entered pursuant to   Section 5.4.3(d) of the Agreement, an amount equal to the   Co-Agreement Amount (provided, however, that if the Co-Agreement Amount is   less than or equal to zero, MedImmune shall not be required to pay Kolltan an   upfront payment under this clause (b)).
    
	
 
    	
 
    	
 
    
	
License   grants
    	
 
    	
Each   Party shall grant the other Party a sole, royalty-free license (which license   shall be exclusive as to Third Parties but not as to the licensor and its   Affiliates), with the right to grant sublicenses (subject to restrictions to   be set forth in the Co-Development and Co-Commercialization Agreement) under   any Patents or Know-How owned or controlled by such Party that are necessary   or reasonably useful for the Development or Commercialization of the Licensed   Antibody or Licensed Products, to Develop and Commercialize the Licensed   Antibody and Licensed Products in the Field in the Territory in accordance   with the terms of the Co-Development and Co-Commercialization Agreement.
    
	
 
    	
 
    	
 
    
	
Governance
    	
 
    	
The   Parties’ activities under the Co-Development and Co-Commercialization   Agreement shall be generally overseen by a steering committee, which shall   consist of an equal number of representatives of each Party (the “Steering   Committee”). The Steering Committee shall act by consensus; provided,   however, that if the Steering Committee is unable to reach consensus on a   matter within the scope of its responsibility, the matter shall be escalated   to the Executive Officers for attempted resolution in accordance with   procedures set forth in the Co-Development and Co-Commercialization   Agreement.

 

The   Parties’ Development activities under the Co-Development and   Co-Commercialization Agreement shall be specifically overseen by a   development committee, which shall consist of an equal number of   representatives of each Party (the “JDC”), and the Parties’   Commercialization activities under the Co-Development and   Co-Commercialization Agreement shall be specifically
    

 

Exhibit 5.4.1(c) - 1

 

	
 
    	
 
    	
overseen   by a commercialization committee, which shall consist of an equal number of   representatives of each Party (the “JCC”). Each of the JDC and the JCC   shall act by consensus; provided, however, that if either the JDC or the JCC   is unable to reach consensus on a matter within the scope of its   responsibility, the matter shall be escalated to the Steering Committee.
    
	
 
    	
 
    	
 
    
	
Development   activities
    	
 
    	
The   Steering Committee shall determine which Party shall have primary operational   responsibility for conducting Development activities with respect to the   Licensed Antibody and Licensed Products in accordance with a Development plan   and budget approved (and, as applicable, amended) by the JDC and thereafter   approved by the Steering Committee (the “Development Plan”). To the   extent feasible and based on then-existing circumstances, the Steering   Committee shall use reasonable efforts to ensure that Kolltan shall assume   primary operational responsibility whenever possible.
    
	
 
    	
 
    	
 
    
	
Development   diligence
    	
 
    	
Each   Party shall use Commercially Reasonable Efforts to carry out the activities   assigned to it under the Development Plan.
    
	
 
    	
 
    	
 
    
	
Development   costs
    	
 
    	
Each   Party shall bear 50% of the Development Costs.

 

“Development   Costs” will be defined more specifically in the Co-Development and   Co-Commercialization Agreement but generally will mean the sum of all   out-of-pocket costs incurred by a Party or its Affiliates after the effective   date of the Co-Development and Co-Commercialization Agreement that are   specifically identifiable to (i) the Development of the Licensed   Antibody or Licensed Products or (ii) the Manufacture of the Licensed   Antibody or Licensed Products in support of such Development, in each case ((i) and   (ii)) in accordance with the Development Plan (subject to any cost overruns   that may be permitted under the Co-Development and Co-Commercialization   Agreement).
    
	
 
    	
 
    	
 
    
	
Commercialization   activities
    	
 
    	
The   Parties shall conduct Commercialization activities with respect to Licensed   Products in accordance with a Commercialization plan approved (and, as   applicable, amended) by the JCC and thereafter approved by the Steering   Committee (the “Commercialization Plan”).
    
	
 
    	
 
    	
 
    
	
Commercialization   diligence
    	
 
    	
Each   Party shall use Commercially Reasonable Efforts to carry out the activities   assigned to it under the Commercialization Plan.
    

 

Exhibit 5.4.1(c) - 2

 

	
Net   Profits/Losses
    	
 
    	
Each   Party shall be receive or bear, as applicable, fifty percent (50%) of the Net   Profits/Losses.

 

“Net   Profits/Losses” will be defined more specifically in the Co-Development   and Co-Commercialization Agreement but generally will mean Net Sales (as   defined below) less Commercialization Costs.

 

“Net   Sales” will be defined more specifically in the Co-Development and   Co-Commercialization Agreement but generally will be defined in a manner   analogous to the manner in which Net Sales are defined in the Agreement.

 

“Commercialization   Costs” will be defined more specifically in the Co-Development and   Co-Commercialization Agreement but generally will mean the sum of all   out-of-pocket costs incurred by a Party or its Affiliates after the effective   date of the Co-Development and Co-Commercialization Agreement that are specifically   identifiable to (i)(x) the Commercialization of Licensed Products or   (y) the Manufacture of Licensed Products in support of such   Commercialization, in each case ((x) and (y)) in accordance with the   Commercialization Plan (subject to any cost overruns that may be permitted   under the Co-Development and Co-Commercialization Agreement),   (ii) prosecution, maintenance, enforcement or defense of Patents,   (iii) indemnification claims or other liabilities to Third Parties not   attributable to a Party’s breach, negligence or willful misconduct or   (iv) obligations to Third Parties under license or other agreements   relating to relevant Patents or Know-How, to the extent agreed by the   Parties, in each case excluding any costs to the extent deducted under the   definition of Net Sales.
    
	
 
    	
 
    	
 
    
	
Supply
    	
 
    	
If   MedImmune is interested in supplying the Parties’ requirements of the   Licensed Antibody and Licensed Products for their Development and   Commercialization activities under the Co-Development and   Co-Commercialization Agreement, then the Parties shall negotiate in good   faith regarding a mutually acceptable supply agreement; provided, however,   that if the Parties in good faith are unable to agree on the terms of such a   supply agreement within a reasonable period of time, then the Parties shall   negotiate in good faith with one or more Third Parties regarding a supply   agreement pursuant to which the applicable Third Party would supply the   Parties’ requirements of the Licensed Antibody and Licensed Products for   their Development and Commercialization activities under the Co-Development   and Co-Commercialization Agreement.

 

If   MedImmune is not interested in supplying the Parties’ requirements of the   Licensed Antibody and Licensed Products for their Development and   Commercialization activities under the Co-Development and   Co-Commercialization Agreement, then the Parties shall mutually agree upon a   Third Party to supply such requirements.
    

 

Exhibit 5.4.1(c) - 3

 

	
Confidentiality
    	
 
    	
The   Co-Development and Co-Commercialization Agreement shall include provisions   regarding protection of confidential information, including confidential   information disclosed under or in connection with the Agreement, that are   customary for similar transactions and, to the extent applicable, consistent   with the corresponding provisions of the Agreement.
    
	
 
    	
 
    	
 
    
	
Other   provisions
    	
 
    	
The   Co-Development and Co-Commercialization Agreement shall include provisions   regarding (a) termination, (b) ownership, prosecution, maintenance,   enforcement and defense of relevant Patents, (c) representations and   warranties, (d) indemnification, (e) assignment and change of   control and (f) governing law and resolution of legal disputes, in each   case that are customary for similar transactions and, to the extent   applicable, consistent with the corresponding provisions of the Agreement,   and such other provisions as may be agreed by the Parties.
    

 

Exhibit 5.4.1(c) - 4

 

Exhibit 6.4.4

 

Payments under Certain In-License Agreements

 

1.                                      UT Agreement.

 

1.1                               Capitalized terms used in this Section 1 but not defined in the Agreement shall have the meanings given to them in the UT Agreement.

 

1.2                               In respect of MedImmune’s (or its applicable Affiliate’s) obligations under Section 5.1b of the UT Agreement, Kolltan shall pay Board the following milestone fees within [**] days of the applicable milestone event for each Licensed Product (as defined in the UT Agreement) that is a Licensed Product (as defined in this Agreement); provided, however that Kolltan shall not be required to make any such payment more than once for any Licensed Product (as defined in the UT Agreement):

 

	
Milestone Event
    	
 
    	
Amount
    
	
[**]
    	
 
    	
[**]
    
	
[**]
    	
 
    	
[**]
    
	
[**]
    	
 
    	
[**]
    
	
[**]
    	
 
    	
[**]
    

 

1.3                               In respect of MedImmune’s (or its applicable Affiliate’s) obligations under Section 5.1c of the UT Agreement, Kolltan shall pay Board the following commercial success milestone fees on or before [**] of each year during the Term (as defined in the UT Agreement) based on the total worldwide Net Sales (as defined in the UT Agreement) of Licensed Products (as defined in this Agreement) in the previous Calendar Year:

 

	
Total Worldwide Net Sales (as defined in the UT
   Agreement) of Licensed Products (as defined in this
   Agreement) in the Previous Calendar Year
    	
 
    	
Amount
    
	
Greater than $[**] but less than or equal to $[**]
    	
 
    	
[**]
    
	
Greater than $[**] but less than or equal to $[**]
    	
 
    	
[**]
    
	
Greater than $[**] but less than or equal to $[**]
    	
 
    	
[**]
    
	
Greater than $[**] but less than or equal to $[**]
    	
 
    	
[**]
    
	
Greater than $[**]
    	
 
    	
[**]
    

 

Exhibit 6.4.4 - 1

 

Notwithstanding the foregoing, if for any Calendar Year there are Net Sales (as defined in the UT Agreement) of any product other than Licensed Products (as defined in this Agreement), then promptly after the end of such Calendar Year, MedImmune shall notify Kolltan of the total amount of Net Sales (as defined in the UT Agreement) of such products for such Calendar Year, and the amount payable by Kolltan under this Section 1.3 for such Calendar Year shall be the product of (a) the total amount owed by MedImmune or its applicable Affiliate to Board under Section 5.1c of the UT Agreement for such Calendar Year and (b) a fraction, the numerator of which is the amount of Net Sales (as defined in the UT Agreement) of Licensed Products (as defined in this Agreement) for such Calendar Year and the denominator of which is the total amount of Net Sales (as defined in the UT Agreement) for such Calendar Year.

 

2.                                      Dyax Agreement.

 

2.1                               Capitalized terms used in this Section 2 but not defined in the Agreement shall have the meanings given to them in the Unredacted Provisions of the Dyax Agreement.

 

2.2                               In respect of MedImmune’s (or its applicable Affiliate’s) obligations under Section 13.3 of the Dyax Agreement, for any Licensed Product, Kolltan shall pay Dyax a royalty of [**] percent ([**]%) of Net Sales (as defined in the Dyax Agreement after substituting, for each reference in such definition to MedImmune Products, a reference to Licensed Products) of such Licensed Product; provided, however, that Kolltan shall not be required to pay such royalty with respect to sales of any Licensed Product in any country after the tenth (10th) anniversary of the first commercial sale of such Licensed Product in such country pursuant to a Regulatory Approval in such country.

 

3.                                      Lonza Agreement.

 

3.1                               Capitalized terms used in this Section 3 but not defined in the Agreement (or in any provision of this Section 3) shall have the meanings given to them in the Unredacted Provisions of the Lonza Agreement.

 

3.2                               In respect of MedImmune’s (or its applicable Affiliate’s) obligations under Section 6.3 of the Lonza Agreement, for any Calendar Year, if any Product or End Product that is a Licensed Product with respect to which Commencement of Phase 2 Clinical Study has occurred, is manufactured for Kolltan by MedImmune using the LB System Technology, then Kolltan shall pay to Lonza Sales a license fee for such Calendar Year in the amount of the Applicable Amount; provided, however, that Kolltan shall not be required to make such payment for any Calendar Year (a) in which Lonza Sales or any of its Affiliates manufactures for Kolltan any Product or End Product that is a Licensed Product or (b) after the

 

Exhibit 6.4.4 - 2

 

Calendar Year in which the last-to-expire relevant patent (depending on which cell line is used for such Product or End Product) under the LB System Technology in Exhibit 2 to the Lonza Agreement in the country of manufacture expires.  For purposes of this Section 3.2, the “Applicable Amount” means (x) if the relevant Licensed Product is the first Product or End Product manufactured by MedImmune (or its Affiliates), regardless of whether any given Product or End Product is manufactured for MedImmune (or its Affiliates), Kolltan (or its Affiliates) or any Third Party, using the LB System Technology with respect to which Commencement of Phase 2 Clinical Study occurred, GBP [**] (£[**]), (y) if the relevant Licensed Product is the second, third or fourth Product or End Product manufactured by MedImmune (or its Affiliates), regardless of whether any given Product or End Product is manufactured for MedImmune (or its Affiliates), Kolltan (or its Affiliates) or any Third Party, using the LB System Technology with respect to which Commencement of Phase 2 Clinical Study has occurred, GBP [**] (£[**]), and (z) if the relevant Licensed Product is the [**] or later Product or End Product manufactured by MedImmune (or its Affiliates), regardless of whether any given Product or End Product is manufactured for MedImmune (or its Affiliates), Kolltan (or its Affiliates) or any Third Party, using the LB System Technology with respect to which Commencement of Phase 2 Clinical Study has occurred, [**] (£[**]).

 

3.3                               In respect of MedImmune’s (or its applicable Affiliate’s) obligations under Section 6.5 of the Lonza Agreement, for any Product or End Product that is a Licensed Product and manufactured in any country for Kolltan by MedImmune using the LB System Technology, Kolltan shall pay to Lonza Sales a royalty of (a) if such Product or End Product was manufactured during the Royalty Patent Term of such Product or End Product in such country, [**]% of Net Sales (as defined in the Lonza Agreement) of such Product or End Product, and (b) if such Product or End Product was manufactured during the Royalty Know-How Term of such Product or End Product in such country, [**]% of Net Sales (as defined in the Lonza Agreement) of such Product or End Product.

 

3.4                               In respect of MedImmune’s (or its applicable Affiliate’s) obligations under Section 6.7 of the Lonza Agreement, for any Calendar Year, if any Product or End Product that is (a) a Licensed Product and (b) manufactured (i) by Kolltan on its own behalf or (ii) by any Third Party other than Lonza Sales or any of its Affiliates on behalf of Kolltan, in either case ((i) or (ii)) in accordance with GMP (as defined in the Lonza Agreement) requirements and using the LB System Technology, then Kolltan shall pay to Lonza Sales a sublicense fee for such Calendar Year in the amount of the product of (x) GBP [**] (£[**]), and (y) the number of different Products and End Products described in clauses (a) and (b) above for such Calendar Year; provided, however, that Kolltan shall not be required to make such payment for any Calendar Year (A) in which Lonza Sales or any of its Affiliates manufactures for Kolltan any Product or End Product that is a Licensed Product or (B) with respect to any Product or End Product, after the Calendar Year in which the last-to-expire relevant patent (depending on which cell line is used for such Product or End Product) under the LB System

 

Exhibit 6.4.4 - 3

 

Technology in Exhibit 2 to the Lonza Agreement in the country of manufacture expires.  Any Product and any End Product that have the same active ingredient shall be counted as one for purposes of calculating the fraction described in clause (y) above.

 

3.5                               In respect of MedImmune’s (or its applicable Affiliate’s) obligations under Section 6.8 of the Lonza Agreement, for any Product or End Product that is a Licensed Product and manufactured in any country (a) by Kolltan on its own behalf or (b) by any Third Party other than Lonza Sales (as defined in the Lonza Agreement) or any of its Affiliates on behalf of Kolltan, in either case ((a) or (b)) using the LB System Technology, in lieu of the royalty described in Section 3.3 of this Exhibit, if such Product or End Product was manufactured during the Royalty Patent Term of such Product or End Product in such country, then Kolltan shall pay to Lonza Sales a royalty of [**]% of Net Sales (as defined in the Lonza Agreement) of such Product or End Product.

 

3.6                               In respect of MedImmune’s (or its applicable Affiliate’s) obligations under Section 6.9 of the Lonza Agreement, for any Product or End Product that is a Licensed Product and manufactured in any country for Kolltan by Lonza Sales or any of its Affiliates, Kolltan shall pay to Lonza Sales a royalty of (a) during the Royalty Patent Term of such Product or End Product in such country, [**]% of Net Sales (as defined in the Lonza Agreement) of such Product or End Product, and (b) during the Royalty Know-How Term of such Product or End Product in such country, [**]% of Net Sales (as defined in the Lonza Agreement) of such Product or End Product.

 

4.                                      Limitations; Cooperation.

 

4.1                               Notwithstanding the foregoing provisions of this Exhibit, if for any reason MedImmune or its applicable Affiliate is not required under the applicable provision of the applicable In-License Agreement to make any payment to the applicable licensor as a result of Kolltan’s activities under this Agreement with respect to the Licensed Program, or is required under the applicable provision of the applicable In-License Agreement to pay an amount to the applicable licensor as a result of Kolltan’s activities under this Agreement with respect to the Licensed Program that is less than the amount described in the corresponding provision of this Exhibit, then Kolltan shall not be required to make any payment, or shall be required to pay only such lesser amount, as the case may be, to the applicable licensor in respect of such provision of such In-License Agreement.  MedImmune shall promptly notify Kolltan of the existence of, and shall promptly respond to any inquiry made by Kolltan regarding, any event or circumstance that would trigger a reduced payment obligation under this Section 4.1.  Without limiting the foregoing, reasonably prior to the First Commercial Sale of the initial Licensed Product, MedImmune and Kolltan shall consult as to whether any reductions to the payment obligations described in this Exhibit apply.

 

Exhibit 6.4.4 - 4

 

4.2                               In no event shall Kolltan be required to make any payment to any licensor in respect of any provision of any In-License Agreement in an amount that is greater than the amount described in the corresponding provision of this Exhibit.

 

4.3                               As requested by Kolltan, MedImmune shall cooperate with Kolltan to determine the appropriate amount, manner and timing of any payment described in this Exhibit.

 

Exhibit 6.4.4 - 5

 

Exhibit 9.2.3

 

MedImmune Patents

 

MedImmune Patents

 

[**]

 

The Patents listed in Exhibit 1.42 (excluding any MedImmune Manufacturing Patents) are incorporated into this Exhibit by reference.

 

Exhibit 9.2.3 - 1

 

Exhibit 9.2.6

 

Third Party Intellectual Property

 

[**]

 

Exhibit 9.2.6 - 1

 

Exhibit 9.2.9

 

Obligations and Restrictions under In-License Agreements

 

1.                                      UT Agreement.

 

1.1                               Capitalized terms used in this Section 1 but not defined in the Agreement shall have the meanings given to them in the UT Agreement.

 

1.2                               The rights granted by MedImmune to Kolltan as sublicensee under the UT Agreement are subject to the rights, conditions and limitations imposed by United States law on inventions and discoveries conceived or first actually reduced to practice during the course of research funded by a United States federal agency, as described in the first Section 3.2 of the UT Agreement.

 

1.3                               MedImmune is indirectly obligated to require Kolltan to take steps as necessary and solely as they relate to Kolltan’s activities under the Agreement to enable MedImmune to perform its obligations under the following provisions of the UT Agreement:

 

1.3.1                     first two sentences of Section 5.3;

 

1.3.2                     the reporting obligations described in Section 5.4;

 

1.3.3                     the second, third and fourth sentences of Section 5.5;

 

1.3.4                     Section 5.7;  and

 

1.3.5                     the first and third sentences of Section 7.1.

 

The Parties acknowledge and agree that (a) the Agreement includes provisions whereby Kolltan is bound to take such steps, and (b) the foregoing provisions of the UT Agreement include all the terms and conditions of the UT Agreement that are applicable to Kolltan as sublicensee under the UT Agreement.

 

2.                                      MRC Agreement

 

2.1                               Any capitalized term used in this Section 2 but not defined in the Agreement, or used in any provision of the MRC Agreement referenced in this Section 2, (a) if such capitalized term is defined in the Unredacted Provisions of the MRC Agreement, shall have the meaning given to such capitalized term in such Unredacted Provisions, or (b) if such capitalized term is defined in the MRC Agreement other than in the Unredacted Provisions, shall be construed on the basis of the plain English meaning of the words in the capitalized term itself and the portion, if any, of the definition of such capitalized term (including any definition (or portion thereof) of any other capitalized term used directly or indirectly in the definition of such capitalized term) that is not redacted.

 

Exhibit 9.2.9 - 1

 

2.2                               The rights granted by MedImmune to Kolltan as sublicensee under the MRC Agreement do not include the right to exercise or use the Technology or Patent Rights in the commercial sale of single variable domains (heavy or light) of antibodies.

 

2.3                               MedImmune is indirectly obligated to require Kolltan to take steps as necessary to enable MedImmune to perform its obligations under Clause 21 of the MRC Agreement as they apply to Kolltan’s activities under the Agreement.

 

3.                                      Dyax Agreement.

 

3.1                               Any capitalized term used in this Section 3 but not defined in the Agreement, or used in any provision of the Dyax Agreement referenced in this Section 3, (a) if such capitalized term is defined in the Unredacted Provisions of the Dyax Agreement, shall have the meaning given to such capitalized term in such Unredacted Provisions, or (b) if such capitalized term is defined in the Dyax Agreement other than in the Unredacted Provisions, shall be construed on the basis of the plain English meaning of the words in the capitalized term itself and the portion, if any, of the definition of such capitalized term (including any definition (or portion thereof) of any other capitalized term used directly or indirectly in the definition of such capitalized term) that is not redacted.

 

3.2                               Any sub-sublicenses granted by Kolltan under its sublicense from MedImmune under the Dyax Agreement must be granted pursuant to a written agreement that (a) requires the sub-sublicensee to abide by the terms of the applicable MedImmune Product License, consistent with the terms of the Agreement and this Exhibit 9.2.9, and (b) is consistent with the Unredacted Provisions of Clauses 11, 12 and 13 of the Dyax Agreement.

 

3.3                               MedImmune is indirectly obligated to require Kolltan to take steps as necessary and solely as they relate to Kolltan’s activities under the Agreement to enable MedImmune to perform its obligations under the following provisions of the Dyax Agreement:

 

3.3.1                     Clause 12.4;

 

3.3.2                     the first sentence of Clause 12.9;

 

3.3.3                     the last sentence of Clause 13.4; and

 

3.3.4                     Clause 13.6 (excluding Clause 13.6.5).

 

3.4                               As set forth in Clause 12.6 of the Dyax Agreement, Kolltan shall indemnify the Dyax Indemnitees against any liability, damage, loss or expense (including attorney’s fees and expenses of litigation) incurred by or imposed upon the Dyax Indemnitees or any one of them in connection with any claims, suits, actions, demands or judgments by or in favor of any Third Party (as defined in the Dyax

 

Exhibit 9.2.9 - 2

 

Agreement) concerning any manufacture, use or sale of any MedImmune Product by Kolltan or its sublicensee.

 

3.5                               As set forth in Clause 12.11 of the Dyax Agreement, Kolltan may assign the benefit and/or burden of its rights under any MedImmune Product License to any Affiliate (as defined in the Dyax Agreement) or Third Party (as defined in the Dyax Agreement), provided that such Affiliate (as defined in the Dyax Agreement) or Third Party (as defined in the Dyax Agreement) undertakes to Dyax to be bound by the terms of the MedImmune Product License.

 

3.6                               As set forth in Clause 12.12 of the Dyax Agreement, Dyax has the right to terminate any MedImmune Product License under which Kolltan receives a sublicense in the event that Kolltan (or its sublicensee) directly or indirectly opposes or assists any Third Party (as defined in the Dyax Agreement) to oppose the grant of letters patent or any patent application within the Dyax Patent Rights, or disputes or directly or indirectly assists any Third Party (as defined in the Dyax Agreement) to dispute the validity of any patent within the Dyax Patent Rights or any of the claims thereof.

 

4.                                      Lonza Agreement.

 

4.1                               MedImmune is indirectly obligated to require Kolltan to take steps as necessary and solely as they relate to Kolltan’s activities under the Agreement to enable MedImmune to perform its obligations under the following provisions of the Lonza Agreement:

 

4.1.1                     the reporting obligations described in Section 6.11; and

 

4.1.2                     Section 6.13.1.

 

Exhibit 9.2.9 - 3

 

February 10, 2014

 

By pdf

 

Bahija Jallal

Executive Vice President, AstraZeneca and Head of MedImmune

MedImmune, LLC

One MedImmune Way

Gaithersburg, MD 20878

 

Re:          License and Option Agreement of July 24, 2013

 

Dear Bahija:

 

As we have discussed, Kolltan and MedImmune agree to modify the timing of Kolltan’s milestone payment for [**], described in Section 6.2.1(a) of the License and Option Agreement between MedImmune, LLC and Bulldog Pharmaceuticals, Inc. (the “Agreement”).  Section 6.2.2 of the Agreement is hereby amended to provide that that milestone payment will be due on [**] (or earlier, in Kolltan’s sole discretion).

 

Except as set forth in this letter, the Agreement shall remain in full force and effect.

 

Please confirm your agreement by countersigning below and returning a copy to me by pdf.

 

	
 
    	
 
    	
Sincerely,
    
	
 
    	
 
    	
BULLDOG   PHARMACEUTICALS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/   Gerald McMahon
    
	
 
    	
 
    	
Gerald   McMahon
    
	
 
    	
 
    	
Director
    
	
 
    	
 
    	
 
    
	
Accepted   and agreed:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
MEDIMMUNE,   LLC
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By
    	
/s/   Bahija Jallal
    	
 
    	
 
    
	
 
    	
Bahija   Jallal
    	
 
    	
 
    
	
 
    	
Executive   Vice President, AstraZeneca and Head of MedImmune
    

 

 

Execution Version

 

Addendum to the License and Option Agreement
 by and Between MedImmune, LLC and Bulldog Pharmaceuticals, Inc.

 

Kolltan and MedImmune hereby amend the License and Option Agreement dated as of July 24, 2013 (“Agreement”) to provide as follows:

 

1.             MedImmune will replenish the Inventory by producing a total of [**] additional lots of Licensed Antibody in formulated bulk drug substance form (“Drug Substance”), each manufactured at the [**] liter bioreactor scale, and will deliver (i) the first [**] lots to Kolltan by the later of [**] months from the date of execution of this Addendum or [**] and (ii) the next [**] lots by the later of [**] months from the date of execution of this Addendum or [**].  If MedImmune scheduling allows and if requested by Kolltan, MedImmune will fill the Drug Substance to make drug product in the current vial configuration and fill volume (“Drug Product”).  Otherwise, Kolltan will contract with a third party CMO for Drug Product fill. The pricing and payment terms for such Drug Substance and Drug Product are per Appendix A.

 

2.             MedImmune will make such Drug Substance and Drug Product available to Kolltan under the terms and conditions set forth in Section 3.6 of the Agreement with respect to the Inventory, and such Drug Substance and possible Drug Product shall be treated as Inventory for all other purposes under the Agreement.  MedImmune warrants that all Drug Substance and possible Drug Product will, as of the date of delivery to Kolltan, conform to the applicable product specifications set forth in Appendix B.

 

3.             With respect to Drug Substance and Drug Product supplied under this Addendum, the indemnification provided in Section 10.2(b) by MedImmune will be modified by insertion of the underlined language below:

 

“MedImmune shall defend, indemnify and hold harmless the Kolltan Indemnitees from and against any and all Losses relating to or in connection with a Third Party claim arising out of *** (b) any death, personal bodily injury or damage to real or tangible personal property alleged or proven to result, directly or indirectly, from the gross negligence or wilful misconduct of MedImmune and the possession, use or consumption of, or treatment with, any Licensed Antibody or Licensed Product included in or produced from the Inventory, including any product liability claims; ***”

 

4.             If Kolltan terminates the Agreement pursuant to Section 11.2.1, the obligations of the Parties under this Amendment shall survive such termination.

 

Except as amended hereby, all terms and conditions of the License and Option Agreement are unchanged and remain in full force and effect.

 

1

 

IN WITNESS WHEREOF, the Parties have caused this Addendum to the Agreement to be duly executed, effective as the date of last signature below, by their respective duly authorized officers.

 

	
Bulldog   Pharmaceuticals, Inc.
    	
 
    	
MedImmune,   LLC
    
	
By:
    	
/s/   Jerry McMahon
    	
 
    	
By:
    	
/s/   Gail Wasserman
    
	
Name:
    	
Gerald   McMahon
    	
 
    	
Name:
    	
Gail   Wasserman
    
	
Title:
    	
Director
    	
 
    	
Title:
    	
Senior   Vice President, Development
    
	
Date:
    	
25   June 2014
    	
 
    	
Date:
    	
25   June 2014
    

 

2

 

APPENDIX A

 

Pricing

 

A.            Prices for the Services

 

The following Services will be provided by MedImmune at the prices set forth below for [**] batches and thus, the total costs for this work will be twice the amount for a total of [**] batches.  If MedImmune does not provide drug product those costs will not be billed.

 

	
Activities and Services
    	
 
    	
Price (in $)
    
	
[**]
    	
 
    	
[**]
    
	
[**]
    	
 
    	
[**]
    
	
[**]
    	
 
    	
[**]
    
	
[**]
    	
 
    	
[**]
    
	
Total for Services Listed Above
    	
 
    	
[**]
    

 

MedImmune will invoice Kolltan for each shipment upon delivery and Kolltan will pay within [**] days after receipt of an invoice.

 

3

 

APPENDIX B

 

SPECIFICATIONS

 

[Attached]

 

4

 

	
MedImmune
    	
MEDI3379
    
	
 
    	
P.5.1   Specifications
    

 

P.5.1       Specifications

 

The specifications for Drug Product are provided in Table P.5.1-1.

 

Table P.5.1-1                       Release Specifications for Drug Product

 

	
Method
    	
 
    	
Purpose
    	
 
    	
ICH Q6B
   Test
   Category
    	
 
    	
Specification
    
	
Appearance
    	
 
    	
Evaluate color and clarity
    	
 
    	
General
    	
 
    	
[**]
    
	
Sub-visible   particles
    	
 
    	
Measure sub-visible particles
    	
 
    	
General
    	
 
    	
[**]
    
	
Total   protein
    	
 
    	
Measure protein concentration
    	
 
    	
Quantity
    	
 
    	
[**]
    
	
pH
    	
 
    	
Measure pH
    	
 
    	
General
    	
 
    	
[**]
    
	
Reducing   gel electrophoresis
    	
 
    	
Detect fragments
    	
 
    	
Identity, Purity
    	
 
    	
[**]
    
	
Non-reducing   gel electrophoresis
    	
 
    	
Detect fragments and aggregates
    	
 
    	
Identity, Purity
    	
 
    	
[**]
    
	
High   performance size exclusion chromatography (HPSEC)
    	
 
    	
Detect fragments and aggregates
    	
 
    	
Purity
    	
 
    	
[**]
    
	
Capillary   isoelectric focusing (cIEF)
    	
 
    	
Detect charge isoforms
    	
 
    	
Identity, Purity
    	
 
    	
[**]
    
	
MEDI3379   Bioassay
    	
 
    	
Measure bioactivity
    	
 
    	
Identity, Potency
    	
 
    	
[**]
    
	
Endotoxin   (LAL)
    	
 
    	
Detect endotoxins
    	
 
    	
Contaminants
    	
 
    	
[**]
    
	
Sterility
    	
 
    	
Test for sterility
    	
 
    	
Contaminants
    	
 
    	
[**]
    
	
Osmolality
    	
 
    	
Measure tonicity
    	
 
    	
General
    	
 
    	
[**]
    
	
Extractable   volume
    	
 
    	
Measure volume
    	
 
    	
General
    	
 
    	
[**]
    

 

[**].

 

CONFIDENTIAL AND PROPRIETARY

 

1

 

	
MedImmune
    	
MEDI3379
    
	
 
    	
S.4.1   Specification
    

 

S.4.1       Specification

 

The specifications for Drug Substance are provided in Table S.4.1-1.

 

1

 

Table S.4.1-1                       Release Specifications for Drug Substance

 

	
Analytical Method
    	
 
    	
Purpose
    	
 
    	
ICH Q6B Test Category
    	
 
    	
Specification
    
	
Appearance
    	
 
    	
Evaluate clarity, color and particles
    	
 
    	
General
    	
 
    	
[**]
    
	
Total   protein
    	
 
    	
Measure protein concentration
    	
 
    	
Quantity
    	
 
    	
[**]
    
	
pH
    	
 
    	
Measure pH
    	
 
    	
General
    	
 
    	
[**]
    
	
Reducing   gel electrophoresis
    	
 
    	
Detect fragments
    	
 
    	
Identity, Purity
    	
 
    	
[**]
    
	
Non-reducing   gel electrophoresis
    	
 
    	
Detect fragments and aggregates
    	
 
    	
Identity, Purity
    	
 
    	
[**]
    
	
High   performance size exclusion chromatography (HPSEC)
    	
 
    	
Detect fragments and aggregates
    	
 
    	
Purity
    	
 
    	
[**]
    
	
Capillary   isoelectric focusing (IEF)
    	
 
    	
Detect charge isoforms
    	
 
    	
Identity, Purity
    	
 
    	
[**]
    
	
MEDI3379   Bioassay
    	
 
    	
Measure bioactivity
    	
 
    	
Identity, Potency
    	
 
    	
[**]
    
	
Host   cell DNA
    	
 
    	
Detect process-related impurity
    	
 
    	
Impurities
    	
 
    	
[**]
    
	
Host   cell protein
    	
 
    	
Detect process-related impurity
    	
 
    	
Impurities
    	
 
    	
[**]
    
	
Insulin
    	
 
    	
Detect process-related impurity
    	
 
    	
Impurities
    	
 
    	
[**]
    
	
Protein   A
    	
 
    	
Detect process-related impurity
    	
 
    	
Impurities
    	
 
    	
[**]
    
	
Endotoxin   (LAL)
    	
 
    	
Detect endotoxins
    	
 
    	
Contaminants
    	
 
    	
[**]
    
	
Bioburden
    	
 
    	
Test for bioburden
    	
 
    	
Contaminants
    	
 
    	
[**]
    

 

[**].

 

2

 

 

	
Certificate   of Completion
    	
 
    	
 
    	
 
    	
 
    
	
Envelope   Number: 442BB68F02A34C1096EBF39BD3AB9963
    	
 
    	
Status: Completed
    
	
Subject: Please DocuSign   this document
    	
 
    	
 
    	
 
    	
 
    
	
Source Envelope:
    	
 
    	
 
    	
 
    	
 
    
	
Document Pages: 7
    	
 
    	
Signatures: 2
    	
 
    	
Envelope Originator:
    
	
Certificate Pages: 2
    	
 
    	
Initials: 0
    	
 
    	
Clifford Lounsbury
    
	
AutoNav: Enabled
    	
 
    	
 
    	
 
    	
2 Kingdom Street
    
	
Envelopeld Stamping:   Enabled
    	
 
    	
 
    	
 
    	
London, England W2 6BD
    
	
 
    	
 
    	
 
    	
 
    	
lounsburyc@medimmune.com
    
	
 
    	
 
    	
 
    	
 
    	
IP Address: 199.68.16.14
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Record   Tracking
    	
 
    	
 
    	
 
    	
 
    
	
Status: Original
    	
 
    	
Holder: Clifford   Lounsbury
    	
 
    	
Location: DocuSign
    
	
6/20/2014   11:51:06 AM ET
    	
 
    	
lounsburyc@medimmune.com
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Signer   Events
    	
 
    	
Signature
    	
 
    	
Timestamp
    
	
Jerry McMahon
    	
 
    	
Docusigned by:
    	
 
    	
Sent: 6/24/2014 4:30:22 PM ET
    
	
 
    	
 
    	
/s/ Jerry McMahon
    	
 
    	
Viewed: 6/24/2014 4:31:44 PM ET
    
	
jane.henderson@kolltan.com
    	
 
    	
A54C2D48588B48F...
    	
 
    	
Signed: 6/25/2014   2:49:32 PM ET
    
	
Security Level: Email,   Account Authentication
    	
 
    	
 
    	
 
    	
 
    
	
(None)
    	
 
    	
 
    	
 
    	
 
    
	
Electronic Record and   Signature Disclosure:
    	
 
    	
Using IP Address:   204.14.70.178
    	
 
    	
 
    
	
Not Offered
    	
 
    	
 
    	
 
    	
 
    
	
ID:
    	
 
    	
 
    	
 
    	
 
    
	
Gail Wasserman
    	
 
    	
Docusigned by
    	
 
    	
Sent: 6/25/2014 2:49:33 PM ET
    
	
 
    	
 
    	
/s/ Gail Wasserman
    	
 
    	
Viewed: 6/25/2014 3:02:54 PM ET
    
	
WassermanG@MedImmune.com
    	
 
    	
96962A7213E74AD...
    	
 
    	
Signed: 6/25/2014   3:03:49 PM ET
    
	
SVP Development
    	
 
    	
 
    	
 
    	
 
    
	
Security Level: Email,   Account Authentication (None)
    	
 
    	
Using IP Address:   199.68.16.14
    	
 
    	
 
    
	
Electronic Record and   Signature Disclosure:
    	
 
    	
 
    	
 
    	
 
    
	
Not Offered
    	
 
    	
 
    	
 
    	
 
    
	
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Theresa LaVallee
    	
 
    	
COPIED
    	
 
    	
Sent: 6/25/2014 3:03:49 PM ET
    
	
theresa.lavallee@kolltan.com
    	
 
    	
 
    	
 
    	
 
    
	
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Jane Henderson
    	
 
    	
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Sent: 6/25/2014 3:03:50 PM ET
    
	
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Yuan Chang
    	
 
    	
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Sent: 6/25/2014 3:03:51 PM ET
    
	
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Clifford Lounsbury III
    	
 
    	
COPIED
    	
 
    	
Sent: 6/25/2014 3:03:52 PM ET
    
	
lounsburyc@medimmune.com
    	
 
    	
 
    	
 
    	
 
    
	
MedImmune
    	
 
    	
 
    	
 
    	
 
    
	
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Maldonado, Ellen
    	
 
    	
COPIED
    	
 
    	
Sent: 6/25/2014 3:03:52 PM ET
    
	
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Lisa Kreppel
    	
 
    	
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Sent: 6/25/2014 3:03:53 PM ET
    
	
KreppelL@MedImmune.com
    	
 
    	
 
    	
 
    	
 
    
	
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Signing Complete
    	
 
    	
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Completed
    	
 
    	
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www.bulldogpharmaceuticals.com

 

June 30, 2014

 

MedImmune, LLC

One MedImmune Way

Gaithersburg, MD 20878

Attention: EVP, Research

Facsimile: (301) 398-8268

 

MedImmune, LLC

One MedImmune Way

Gaithersburg, MD 20878

Attention: Legal Department

Facsimile: (301) 398-9263

 

Re:          License and Option Agreement

 

Ladies and Gentlemen:

 

Reference is made to the License and Option Agreement, effective as of July 24, 2013, by and between MedImmune, LLC and Bulldog Pharmaceuticals, Inc., as amended by that certain letter agreement dated February 10, 2014 and the Addendum to the License and Option Agreement, executed as of June 25, 2014 (collectively, the “Agreement”).  Capitalized terms used but not defined in this letter have the meanings given to them in the Agreement.

 

The Parties desire (x) to clarify and supplement certain of their rights and obligations under the Agreement with respect to the Inventory and (y) to clarify their intention regarding the definition of MedImmune Manufacturing Information and Inventions.  Accordingly, the Parties agree as follows:

 

1.             Notwithstanding anything to the contrary in the Agreement, upon Kolltan’s request, MedImmune shall, in accordance with Applicable Law:

 

a.     thaw quantities of unformulated drug substance in the Inventory (“UDS”), at MedImmune’s cost;

 

b.     ship such quantities of UDS from its warehouse in Fredericksburg, Maryland to its facility in Gaithersburg, Maryland, at MedImmune’s cost;

 

1

 

c.     formulate such quantities of UDS to create formulated drug substance (“DS”) and perform release testing with respect to such DS in accordance with the applicable specifications set forth in the Existing IND, all for a fee of $[**] per batch;

 

d.     ship such DS to its facility in Nijmegen, Netherlands, at MedImmune’s cost;

 

e.     fill such DS into vials (in the manner previously done for lot 12G04-162) (such filled DS, “DP”), for a fee of $[**] per batch;

 

f.     ship samples of such DP (for both release and stability testing) to its facility in Gaithersburg, Maryland, at MedImmune’s cost;

 

g.     perform release testing on such DP in accordance with the applicable specifications set forth in the Existing IND, the cost of which release testing shall be included in the fee described in clause (e) above;

 

h.     perform stability testing with respect to such DP in accordance with the plan set forth in Exhibit A to this letter and provide Kolltan with an interim stability report and, upon Kolltan’s request, raw data for each test point and a final stability report upon completion of testing, all for a fee of $[**] USD per batch; and

 

i.       prepare such DP for shipment to Kolltan or its designated Third Party, in accordance with Kolltan’s written instructions, and deliver such DP to Kolltan or its designated Third Party FCA MedImmune’s Nijmegen, Netherlands facility (Incoterms 2010), all at MedImmune’s cost (provided, however, that shipment after such delivery shall be at Kolltan’s cost).

 

2.             Section 1.70 of the Agreement is hereby amended by inserting “relates to the Manufacture of the Licensed Antibody, any Licensed Product, any Follow-On Antibody or any Follow-On Product in the Field in the Territory and” immediately prior to “is expressly disclosed in the Existing IND.”

 

3.             Except as set forth in this letter, the Agreement shall remain in full force and effect.

 

4.             This letter shall be governed by and construed and enforced in accordance with the laws of New York without reference to conflicts of laws principles.

 

5.             This letter may be signed in counterparts, each and every one of which shall be deemed an original, notwithstanding variations in format or file designation which may result from the electronic transmission, storage and printing of copies from separate computers or printers.  Facsimile signatures and signatures transmitted via portable document format (PDF) shall be treated as original signatures.

 

2

 

	
 
    	
 
    	
Sincerely,
    
	
 
    	
 
    	
BULLDOG   PHARMACEUTICALS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/   Gerald McMahon
    
	
 
    	
 
    	
Name:  Gerald   McMahon, Ph.D.
    
	
 
    	
 
    	
Title:  Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Accepted   and agreed to as of
    	
 
    	
 
    
	
the   date first above written:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
MEDIMMUNE,   LLC
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By
    	
/s/   Gail Wasserman
    	
 
    	
 
    
	
 
    	
Name:   Gail Wasserman
    	
 
    	
 
    
	
 
    	
Title:   SVP Development
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
10 July 2014
    	
 
    	
 
    

 

 

Exhibit A

 

Stability Testing Plan

 

	
 
    	
 
    	
Testing Intervals (months)
    	
 
    
	
Tests
    	
 
    	
Condition B ([**]°C)
    	
 
    	
Condition C
   ([**]% RH)
    	
 
    	
Condition D
   ([**]% RH)
    	
 
    
	
Reducing gel electrophoresis
    	
 
    	
[**]
    	
 
    	
[**]
    	
 
    	
[**]
    	
 
    
	
Non-reducing gel electrophoresis
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
cIEF
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
HP SEC
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
MEDI3379 Bioassay
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Appearance
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total Protein (A280)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
pH
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Container closure integrity
    	
 
    	
[**]
    	
 
    	
[**]
    	
 
    	
 
    	
 
    
	
Sub-visible particles
    	
 
    	
 
    	
 
    	
[**]
    	
 
    	
 
    	
 
    
	
Sterility
    	
 
    	
[**]
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

RH = relative humidity

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00235-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00235-of-00352.parquet"}]]