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Exhibit 10.8

Confidential treatment requested  

  
 

    LICENSE AGREEMENT    
  

    This License Agreement (this "Agreement"), is entered into as of June 14, 1998 (the "Effective Date") by and between MABTECH AB, formed under the laws
of Sweden ("MAB") and SEATTLE GENETICS, INC., a Delaware corporation ("SGI"). 

RECITALS  

    A.  MAB
owns intellectual property rights relating to the [*] antibody ("[*]") 

    B.  SGI
desires to acquire access to [*] and an exclusive license to make, use offer for sale, sell, import or otherwise distribute products
that embody [*]. 

    C.  MAB
is willing to provide SGI with access to [*] and to grant SGI an exclusive license to make, use, offer for sale, sell, import or
otherwise distribute products that embody [*] worldwide in accordance with the terms and conditions set forth in this Agreement. 

AGREEMENT  

    The
parties hereto agree as follows: 

    1.  Definitions  

    "Affiliate" shall mean any corporation or other business entity controlled by, controlling, or under common control with another
entity, with "control" meaning direct or indirect beneficial ownership of more than fifty percent (50%) of the voting stock of such corporation, or more
than a fifty percent (50%) interest in the decision-making authority of such other unincorporated business entity; and a corporation in which the
maximum amount of stock permitted by law to be held by another entity is beneficially owned by such other entity. 

    "Confidential Information" shall have the meaning assigned thereto in Section 10. 

    "First Commercial Sale" shall mean, with respect to any product, the first sale for use or consumption by the general public of such
product in any country after all required marketing and pricing approvals have been granted, or otherwise permitted, by the governing health authority of such country. "First Commercial Sale" shall
not include the sale of any Product for use in clinical trials or research. 

    "Licensed Products" shall mean any product incorporating the [*] antibody or derived from the
[*] antibody or its sequence. 

    "Licensed Technology" shall mean all rights to the [*] including, but not limited to: 

    (a) the
patents and patent applications currently existing or filed hereafter covering the [*], including any addition, continuation,
continuation-in-part or division thereof or any substitute application therefor; and 

    (b) all
trade secrets and other information, including but not limited to present and future techniques, inventions, discoveries, developments, practices, methods,
formulations, specifications, processes, apparatus, knowledge, know-how, skill, biological materials, design data, pharmacological, toxicological and clinical test data, sequence data,
analytical and quality control data, manufacturing data and all other information and data relating to the [*] antibody. 

[*]   Confidential treatment requested 

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    "Net Sales" shall mean the amount actually received by SGI or its Affiliates or sublicensees for the sale to an unaffiliated third
party of a Licensed Product, less the following deductions for amounts actually incurred related to the sale: 

    (a) normal,
customary trade and cash discounts (including volume discounts), credits and rebates and allowances and adjustments for rejections, recalls or returns; and 

    (b) transportation
and delivery charges actually incurred, including shipping, freight and insurance and all sales, use, excise, value-added and similar taxes or duties
imposed on the sale and included in the amount invoiced. 

    In
the event that a Licensed Product is sold as part of a Combination Product (as defined below), the Net Sales from the Combination Product, for the purposes of determining royalty
payments, shall be determined by multiplying the Net Sales of the Combination Product (calculated using the standard Net Sales definition) during the applicable royalty reporting period by the
fraction A/A+B, where A is the average sale price of the Product when sold separately in finished form and B is the average sale price of the other product(s) included in the Combination Product when
sold separately in finished form, in each case during the applicable royalty reporting period or, if sales of both the Product and the other product(s) did not occur in such period, then in the most
recent royalty reporting period in which sales of both occurred. In the event that such average sale price cannot be determined for both the Product and all other product(s) included in the
Combination Product, Net Sales for the purposes of determining royalty payments shall be calculated by multiplying the Net Sales of the Combination Product (calculated using the standard Net Sales
definition) by the fraction C/C+D, where C is the fair market value of the Product and D is the fair market value of all other pharmaceutical product(s) included in the Combination Product. In such
event, SGI shall in good faith make a determination of the respective fair market values of the Product and all other pharmaceutical products included in the Combination Product, and shall notify MAB
of such determination and provide MAB with data to support such determination. MAB shall have the right to review such determination and supporting data, and to notify SGI if it disagrees with such
determination. 

    As
used above, the term "Combination Product" shall mean any pharmaceutical product which comprises a Licensed Product and any other active compounds and/or ingredients. 

    Net
Sales shall not include transfer of Licensed Products at or below cost by or on behalf of SGI in connection with research or clinical trials. 

    2.  License Grant.  Subject to the terms of this Agreement, MAB hereby grants to
SGI and its Affiliates a worldwide exclusive license, with right to sublicense, to the Licensed Technology to make, use, offer for sale, sell, import, offer to import or otherwise distribute Licensed
Products in all fields. 

    3.  Reservation.  The license granted in Section 2 is subject to rights
reserved by MAB to use the Licensed Technology for research purposes only and to transfer the Licensed Technology to third parties for research purposes only provided such Licensed Technology bears a
legend stating that such Licensed Technology may only be used for research purposes. 

    4.  Payments  

    4.1  License Fee.  SGI shall pay MAB a license fee of [*] U.S. Dollars
(U.S.$[*]) within ten (10) days following the execution of this Agreement. 

    4.2  Milestone Payment.  SGI shall pay MAB a one-time milestone payment of
[*] U.S. Dollars (U.S.$[*]) within thirty (30) days following SGI's first filing of an investigational new drug application with the U.S. Food
and Drug Administration, or an equivalent filing in one or more European countries, covering a Licensed Product. 

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    4.3  Royalties  

    4.3.1  SGI
shall pay MAB a royalty equal to [*] percent ([*]%) on Net Sales of Licensed Products,
commencing with the First Commercial Sale of a Licensed Product. 

    4.3.2  Royalties
shall be calculated on a calendar quarterly basis and shall be due and payable within sixty (60) days after the end of such
calendar quarter. Such royalties shall be calculated on the Net Sales in the local currency of each country, and converted into U.S. Dollars and paid in U.S. Dollars, on the basis of the currency
exchange rate published in the Wall Street Journal or comparable newspaper of international circulation on the last day of such preceding calendar quarter; provided, however, that royalties with
respect to Net Sales denominated in U.S. Dollars shall be calculated in U.S. Dollars. SGI shall withhold any taxes on such royalties as required by law. 

    4.3.3  SGI
shall furnish to MAB a written report which includes financial information relevant to the calculation of royalties, including the relevant,
current standard list prices. Such reports shall be due together with the royalty payments under Section 4.3.1 within thirty (30) days after the end of each calendar quarter. 

    4.3.4  SGI
shall, and SGI shall cause its Affiliates and sublicensees to, keep full, complete and proper records and accounts of Net Sales of Licensed
Products in sufficient detail to enable the royalties payable to MAB to be determined by an independent audit. Upon reasonable notice to SGI, MAB shall have the right to have an independent certified
public accountant audit SGI's or its Affiliates' records pertaining to Licensed Products during normal business hours to verify the royalties payable pursuant to this Agreement;  provided, however, that
(a) such audit shall not take place more frequently than once a year and (b) shall not cover such records for more
than the preceding three (3) years. Such audits shall be at MAB's expense unless such audit determines that SGI or any of its Affiliates has paid MAB less than ninety percent (90%) of the
amount determined to be due for a given time period, in which case such audit shall be at SGI's expense. SGI shall, and SGI shall cause its Affiliates and sublicensees to, preserve and maintain all
such records and accounts required for audit for a period of three (3) years after the quarter to which such records and accounts apply. 

    5.  Commercial Development  

    5.1 SGI
shall, upon MAB's request, keep MAB generally informed of SGI's and its Affiliates' updated development plans for Licensed Products, including SGI's and its
Affiliates' and sublicensees' planned timing for Licensed Product launch dates. All dates and other information provided by SGI to MAB shall be Confidential Information (as defined below), shall used
by MAB for planning purposes only and shall be subject to modification by SGI, at any time, based on its or its Affiliates' and sublicensees' actual progress in the development process. 

    5.2 SGI
shall provide MAB with notice of regulatory approvals received by SGI or its Affiliates or sublicensees' regarding Licensed Products. 

    6.  Governmental Approvals.  SGI shall be responsible for obtaining all necessary
governmental approvals for the development, testing, production, distribution, sale and use of Licensed Products, as applicable, in any country where Licensed Products shall be manufactured or sold or
otherwise distributed. MAB agrees to provide SGI, at SGI's expense, with any assistance reasonably requested by SGI, in obtaining such governmental approvals. 

3

 

    7.  Representations and Warranties  

    7.1 Representations of SGI. SGI hereby represents and warrants to MAB as follows: 

    (a) SGI
has full power and authority to enter into and perform this Agreement. This Agreement is a legal and valid obligation binding upon SGI and enforceable in
accordance with its terms. The execution, delivery and performance of this Agreement by SGI does not conflict with any agreement, instrument or understanding, oral or written, to which it is a party
or by which it is bound, nor violate any law or regulation of any court, governmental body or administrative or other agency having jurisdiction over it. 

    7.2 Representations of MAB. MAB hereby represents and warrants to SGI as follows: 

    (a) MAB
has full power and authority to enter into and perform this Agreement and grant the rights granted to SGI hereunder. This Agreement is a legal and valid
obligation binding upon MAB and enforceable in accordance with its terms. The execution, delivery and performance of this Agreement by MAB, including but not limited to the grant of the licenses set
forth herein, does not conflict with any agreement, instrument or understanding, oral or written, to which it is a party or by which it is bound, nor violate any law or regulation of any court,
governmental body or administrative or other agency having jurisdiction over it. 

    (b) MAB
is the sole and exclusive owner of the Licensed Technology, free of any liens, encumbrances or ownership interests of any individual or entity, commercial,
academic or otherwise. Neither the execution or delivery of this Agreement nor the consummation of the transactions contemplated hereunder requires MAB to obtain any permits, authorizations or
consents from any governmental body or from any other body, person, form or corporation and such execution, delivery and
consummation shall not result in the breach of or give rise to cause for termination of any agreement or contract to which SGI or its Affiliates may be a party. Neither MAB nor its Affiliates shall
take any action after the Effective Date that would in any way restrict its legal right to grant to SGI the rights and licenses contemplated under this Agreement or otherwise conflict with such rights
and licenses. 

    (c) To
the best of its actual knowledge, the Licensed Technology does not infringe or conflict with any patent or other proprietary right of any third party and there
is not claim or basis therefor that might limit the use of the Licensed Technology as provided in the license grants to SGI herein. 

    8.  Intentionally Omitted  

    9.  Limitation of Liability.  IN NO EVENT WILL EITHER PARTY HERETO BE LIABLE FOR
ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL OR INDIRECT DAMAGES SUFFERED BY THE OTHER PARTY ARISING IN ANY WAY OUT OF THIS AGREEMENT, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, INCLUDING WITHOUT
LIMITATION ANY ACT OR FAILURE TO ACT OF ANY NATURE BY EITHER PARTY. THIS LIMITATION WILL APPLY EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. 

    10.  Confidentiality  

    10.1 "Confidential
Information" shall mean any proprietary information that is specifically designated as such and that is disclosed by either party to the other in
any form in connection with this Agreement. For a period of five (5) years from the date of disclosure, each party (a) shall treat as confidential all Confidential Information provided
by the other party, (b) shall not use such Confidential Information except as expressly permitted under the terms of this Agreement or otherwise authorized in writing by the disclosing party,
(c) shall implement reasonable procedures 

4

 

to prohibit the disclosure, unauthorized duplication, misuse or removal of such Confidential Information and (d) shall not disclose such Confidential Information to any third party. Without
limiting the foregoing, each of the parties shall use at least the same procedures and degree of care to prevent the disclosure of Confidential Information as it uses to prevent the disclosure of its
own confidential information of like importance, and shall in any event use no less than reasonable procedures and a reasonable degree of care. 

    10.2 Notwithstanding
the above, neither party shall have liability to the other with regard to any Confidential Information that: 

    (a) was
generally known and available to the public domain at the time it was disclosed, or becomes generally known and available to the public domain through no fault
of the receiving party; 

    (b) was
known to the receiver at the time of disclosure as shown by the receiving party's written records in existence at the time of disclosure; 

    (c) is
disclosed with the prior written approval of the disclosing party; 

    (d) becomes
known to the receiving party from a source other than the disclosing party without breach of this Agreement by the receiving party and in a manner that is
otherwise not in violation of the disclosing party's rights; 

    (e) is
disclosed as required by law, including without limitation any securities law, or pursuant to the order or requirement of a court, administrative agency, or
other governmental body; provided, that the receiving party shall provide reasonable advance notice to enable the disclosing party to seek a protective
order or otherwise prevent such disclosure; or 

    (f)  is
disclosed as required by law or regulation in obtaining government approval to import, distribute or use Licensed Products in the manner authorized under this
Agreement. 

    11.  Term and Termination  

    11.1 The
term of this Agreement shall commence as of the Effective Date and shall continue in effect until (a) terminated in accordance with Section 11.2
or (b) the tenth (10th) anniversary of the First Commercial Sale (the "Tenth Anniversary Date"); provided however that on the Tenth Anniversary Date the license granted herein
shall survive termination and become royalty-free, fully paid-up and perpetual. 

    11.2 Either
party may terminate this Agreement in the event of a material breach of the Agreement by the other party upon ninety (90) days written notice to the
other party. The termination shall become effective at the end of the ninety (90) day period unless the other party cures such breach within such period. Subject to Section 12, each
party's right to so terminate shall be in addition to any remedies available for breach of contract. 

    11.3 Neither
expiration or termination shall relieve either party of its rights or obligations under Sections 8, 9, 10 or 12 or the license granted under
Section 11.1(b). Further, SGI shall make all reports and payments as are required for the final quarter. 

    11.4 Within
ten (10) days after the expiration or termination of this Agreement, each party shall return any Confidential Information received from the other
party. 

    12.  General Provisions  

    12.1 MAB
and SGI shall be independent contractors and shall not be deemed to be partners, joint venturers or each other's agents, and neither party shall have the
right to act on behalf of the other except as is expressly set forth in this Agreement. 

5

 

    12.2 This Agreement sets forth the entire agreement and understanding between the parties and supersedes all previous agreements, promises, representations,
understandings, and negotiations, whether written or oral between the parties with respect to the subject matter hereof. There shall be no amendments or modifications to this Agreement, except by a
written document signed by both parties. 

    12.3 This
Agreement shall not be assigned by either party without the prior written consent of the other party, except as part of a sale or transfer, by way of merger
or otherwise, of all or substantially all of the business assets of such party to which this Agreement relates. 

    12.4 This
Agreement shall be construed and enforced in accordance with the laws of the state of Washington, without giving effect to its or any other jurisdiction's
principles of conflicts of law. Any dispute or claim arising out of or in connection with this Agreement shall be resolved as follows: (a) for a period of thirty (30) days after a
dispute arises the respective appropriate officers of the parties shall negotiate in good faith in an effort to resolve the dispute; and (b) if the dispute has not been resolved at the close of
such thirty (30) day period, the matter will be finally settled by binding arbitration under the Rules of Arbitration of the American Arbitration Association, by one arbitrator appointed in
accordance with said rules; provided, that if the parties cannot agree on the arbitrator, the dispute shall be resolved by a panel of three arbitrators,
wherein each party shall appoint one arbitrator and those arbitrators shall in turn jointly appoint the third arbitrator. Judgment on an award rendered by an arbitrator or arbitrators may be entered
in any court having jurisdiction. Notwithstanding the foregoing, the parties may apply to any court of competent jurisdiction for preliminary or interim equitable relief without breach of this
arbitration provision. Such arbitration shall be held in Seattle, Washington. 

    12.5 If
any provision of this Agreement is finally held to be invalid, illegal or unenforceable by a court of competent jurisdiction, the validity, legality and
enforceability of the remaining provisions shall not be affected or impaired in any way. 

    12.6 Any
delay in enforcing a party's rights under this Agreement or any waiver as to a particular default or other matter shall not constitute a waiver of a party's
right to the future enforcement of its rights under this Agreement. 

    12.7 Any
notice required or permitted by this Agreement to be given to either party shall be in writing and shall be deemed given when delivered personally, by
confirmed telecopy to a fax number designated in writing by the party to whom notice is given, by delivery by a nationally recognized overnight courier service, or by registered, recorded or certified
mail, return receipt requested, and addressed to the party to whom such notice is directed, at: 

	If to MAB:	 	MABTECH AB

Vikdalsvagen 50

S-131 40 Nacka SWEDEN

Facsimile: 011-46-8-716-27-01

Attention: Staffan Paulic
	

If to SGI:	
 	

Seattle Genetics, Inc.

22215 - 26th Avenue S.E.

Bothell, WA 98021-4425

Facsimile: (425) 489-4798

Attention: Perry Fell

    or
at such other address or telecopy number as such party to whom notice is directed may designate to the other party in writing. 

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    12.8 If
the performance of this Agreement or any obligations hereunder is prevented, restricted or interfered with by reason of fire or other casualty or accident,
strikes or labor disputes, war or other violence, any law, order, proclamation, ordinance, demand or requirement of any government agency, or any other act or condition beyond the control of the
parties hereto, the party so affected, upon giving prompt notice to the other party shall be excused from such performance (other than the obligation to pay money) during such prevention, restriction
or interference and the performance of any obligations of the party not so affected which obligations are directly dependent upon such performance by the affected party, shall be tolled during such
period. 

    12.9 This
Agreement may be signed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. 

[Signature
page follows] 

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

	 	 	MABTECH AB
	

 	
 	

/s/ STAFFAN PAULIC   

	 	 	By:	 	Staffan Paulic
	 	 	Its:	 	President
	

 	
 	
SEATTLE GENETICS, INC.
	

 	
 	

/s/ H. PERRY FELL   

	 	 	By:	 	H. Perry Fell
	 	 	Its:	 	President

8

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Exhibit 10.12

Confidential treatment requested  

  
 

    NON-EXCLUSIVE LICENSE AGREEMENT    
  

    THIS AGREEMENT, effective as of Sept. 29, 1998, is between Creative BioMolecules, Inc. a corporation of the State of Delaware (CBM) having its
principal place of business at 35 South Street, Hopkinton, Massachusetts 01748, and Seattle Genetics, Inc., a corporation of the State of Delaware (SG) having a principal place of business at
22215 26th Avenue SE, Bothell, Washington 98021. 

 
 

RECITALS    
  

    CBM has conceived and reduced to practice certain inventions relating to single-chain antigen-binding molecules (as hereinafter further defined under SCA
DISCOVERIES); 

    SG
has an interest in the non-exclusive development of said SCA DISCOVERIES into commercially useful products in the field of Lewis-Y antigen single-chain
antigen binding proteins genetically fused to the Pseudomonas exotoxin A fragment; PE4O (as hereinafter further defined under FIELD); 

    CBM
has certain PATENT RIGHTS pertaining to the SCA DISCOVERIES; CBM is interested in licensing said PATENT RIGHTS and know-how associated with SCA DISCOVERIES; and 

    SG
is interested in becoming a non-exclusive licensee and desires to develop, manufacture, use, and sell products in the FIELD related to said SCA DISCOVERIES throughout
the world; 

    NOW,
THEREFORE, in consideration of the premises and of the performance of the covenants herein contained, the parties agree as follows: 

     1.  DEFINITIONS  

    1.1 The
term "AFFILIATE" shall mean: 

    (a) Any
corporation owning or controlling, directly or indirectly, at least fifty-one percent (51%) of the stock normally entitled to vote for election of
directors of a party; and 

    (b) Any
corporation at least fifty-one percent (51%) of whose stock normally entitled to vote for election of directors is owned or controlled, directly or
indirectly, by a party; and 

    (c) Any
other business entity at least fifty-one percent (51%) of the equity interest of which is owned or controlled, directly or indirectly, by a party. 

    1.2 The
term "EFFECTIVE DATE" shall mean the date first written above. 

    1.3 The
term "FIELD" shall mean and be limited solely to proteins that derive their therapeutic activity by their binding affinity for the Lewis-Y antigen
or that compete with monoclonal antibody BR96 for binding to the Lewis-Y antigen and which are genetically fused to the Pseudomonas exotoxin A fragment PE4O, for human therapeutic use
only, excluding, without limitation, the areas listed in APPENDIX II. 

    1.4 The
term "FIRST COMMERCIAL SALE" shall mean the first commercial sale of any PRODUCT by SG or its AFFILIATES, sublicensees, corporate partners, distributors or
agents. 

    1.5 The
term "CBM IMPROVEMENT" shall mean any technology related to an SCA DISCOVERY disclosed or claimed in a patent application filed, or licensed on a
royalty-free basis with the right to sublicense, by CBM or its AFFILIATES after the EFFECTIVE DATE and during the term of this Agreement; PROVIDED, HOWEVER, that CBM IMPROVEMENT shall not
include any specific SCA PROTEIN, or any specific genetic sequence or host coding for or 

[*]   Confidential treatment requested 

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containing such genetic sequence coding for a specific SCA PROTEIN, or the therapeutic, diagnostic or research use of such a specific SCA PROTEIN. 

    1.6 The
term "NET SALES" shall mean the gross sales receipt for any quantity of PRODUCT subject to royalty under this Agreement that is sold by SG or its AFFILIATES,
sublicensees, corporate partners, distributors or agents, to any third party, less deductions for (a) trade and cash discounts, credits, allowances, rebates or refunds incurred or granted;
(b) bad debts actually incurred; and (c) sales, use or excise taxes and duties, and freight and insurance, to the extent included in the gross price charged. Except as set forth above,
no deduction from the gross sales shall be made for any item of cost incurred by the seller in its own operation incident to the research and development, manufacture, sale, or shipment of the PRODUCT
sold. PRODUCT shall be considered sold when billed out or invoiced. 

    1.7 The
term "PATENT RIGHTS" shall mean any United States or foreign patent applications or patents owned, or licensed on a royalty-free basis with the
right to sublicense, by CBM or its AFFILIATES during the term of this Agreement containing one or more claims to SCA DISCOVERIES, any continuation-in-part, division, or
continuation application thereof, any patent or the equivalent thereof granted thereon, and any reissue, reexamination, or extension of any of these patent(s) including any applications filed or
patent(s) granted which are owned by CBM or its AFFILIATES and which claim IMPROVEMENTS made by CBM or its AFFILIATES; PROVIDED, HOWEVER, that PATENT RIGHTS shall not include any claim in patent
applications to specific SCA PROTEIN(S), or to any specific genetic sequence or host coding for or containing such genetic sequence coding for a specific SCA PROTEIN(S), or to the therapeutic,
diagnostic or research use of such a specific SCA PROTEIN(S). Existing PATENT RIGHTS are listed in APPENDIX I, which shall be modified by CBM from time-to-time so that it
accurately reflects those patent applications and patents includable under PATENT RIGHTS during the term of the Agreement, relevant to the FIELD. 

    1.8 The
term "PRODUCT(S)" shall mean an SCA PROTEIN or product incorporating an SCA PROTEIN whose manufacture, composition, or use in the country in question, but for
the license granted hereunder, would constitute an infringement of one or more VALID CLAIMS in such country. 

    1.9 The
term "VALID CLAIM" shall mean a claim contained in any patent included in PATENT RIGHTS which has not been held invalid or unenforceable by final decision of a
court or other governmental agency of competent jurisdiction, unappealable within the time allowed for appeal, and which has not been admitted to be invalid or unenforceable through reissue,
disclaimer or otherwise. 

    1.10 The
term "SCA DISCOVERIES" shall mean any technology related to the creation, development, manufacture or use of SCA PROTEINS or any variable region, genetic
sequence thereof or transformed host coding for or containing such variable region genetic sequence; PROVIDED, HOWEVER, that SCA DISCOVERIES shall not include any particular SCA PROTEIN, or any
particular variable region, genetic sequence or specific transformed host coding for or containing such variable region genetic sequence. 

    1.11 The
term "SCA PROTEIN" shall mean a single chain polypeptide having binding affinity for an antigen, said polypeptide comprising: 

    (a) first
polypeptide comprising the binding portion of the heavy or light chain variable region of an antibody; 

    (b) a
second polypeptide comprising the binding portion of the heavy or light chain variable region of an antibody; and 

2

 

    (c) at least one peptide linker linking said first and second polypeptides (a) and (b) into a single chain polypeptide having binding affinity for said
antigen. 

    SCA
PROTEIN(S) includes fusion proteins having a biologically active protein component in addition to components (a), (b) and (c) above. 

    1.12 The
term "SG PATENT RIGHTS" shall mean any patents issuing after the EFFECTIVE DATE hereof and during the term of this Agreement, owned, or licensed on a
royalty-free basis with the right to sublicense, by SG or its AFFILIATES, covering any SCA DISCOVERY, but only to the extent of claims therein, if any, that, as a matter of U.S. patent
law, are dominated by CBM PATENT RIGHTS and relate to novel linker(s) connecting polypeptides and/or methods of making linkages between polypeptides; PROVIDED, HOWEVER, that SG PATENT RIGHTS shall not
include any claim to specific SCA PROTEIN, or to any specific genetic sequence or host coding for or containing such genetic sequence coding for a specific SCA PROTEIN, or to the therapeutic,
diagnostic or research use of such a specific SCA PROTEIN. 

     2.  PATENT RIGHTS  

    2.1  Costs.  All future patent costs pertaining to PATENT RIGHTS whether or not such PATENT RIGHTS are
pending on the EFFECTIVE DATE, including preparation, filing, and prosecution of patent applications, issuance, taxation, and maintenance costs shall be borne by CBM. 

    2.2  Control.  All control over PATENT RIGHTS will be in CBM, and all PATENT RIGHTS will be filed and
prosecuted by CBM's attorneys, subject to any rights SG may have under Section 6. 

     3.  LICENSE GRANT TO SG  

    3.1  Non-Exclusive License.  As of the EFFECTIVE DATE of this Agreement, CBM hereby grants to
SG and its AFFILIATES a non-exclusive worldwide license under PATENT RIGHTS to make, have made, use, and sell PRODUCTS in the FIELD with the right to grant sublicenses to third parties. 

     4.  PAYMENT BY SG  

    4.1  Designee.  CBM hereby appoints Enzon, Inc., a corporation of the State of Delaware having its
place of business at 20 Kingsbridge Road, Piscataway, New Jersey 08854 (ENZON), as its designee to receive payment from SG in ENZON'S name of all license fees and royalties, and copies of reports
relating thereto, under this Agreement. CBM and SG, severally, hereby releases ENZON from any and all liability for losses, damages, and expenses (including attorney fees) that may be incurred on
account of any action taken by ENZON in good faith pursuant or in any way related to this Agreement, and such parties do hereby severally agree to defend, indemnify, and hold ENZON harmless from and
against all claims, demands, or actions arising out of or resulting from such good faith performance under this Agreement. In the event ENZON should cease being CBM's designee hereunder, CBM shall so
notify SG, whereupon SG shall direct all reports, payments and the like that would have gone to ENZON when acting as CBM's designee, directly to CBM. All payments made to CBM under this
Section 4. shall be made through its designee in accordance with this Section 4.1. 

    4.2  Cash.  Within ten (10) days following the EFFECTIVE DATE of this Agreement, SG shall pay CBM
the sum of [*] Dollars ($[*]). 

    4.3  Annual Maintenance Fees.  On the [*] and [*]
anniversary of the EFFECTIVE DATE of this Agreement, SG shall pay to CBM the sum of [*] Dollars ($[*]). On the [*] anniversary
of the EFFECTIVE DATE of this Agreement, SG shall pay to CBM the sum of [*] Dollars ($[*]). Beginning on the [*] anniversary of
the EFFECTIVE DATE of this Agreement and for each subsequent anniversary of the EFFECTIVE DATE of this Agreement, SG shall pay CBM an 

3

 

amount equal to the [*] plus the sum of [*] Dollars ($[*]). For clarification, SG shall pay to CBM the indicated sums on the
indicated anniversary of the EFFECTIVE DATE of this Agreement as provided below. 

	Anniversary
	 	Maintenance Fee

	[*]	 	$[*]
	[*]	 	$[*]
	[*]	 	$[*]
	[*]	 	$[*]
	[*]	 	$[*]
	[*]	 	$[*]
	[*]	 	$[*]
	...and so on.	 	 

    All
Annual Maintenance Fees under this Section 4.3 shall be payable until such time as the first PRODUCT receives Product License Approval (PLA) from the United States Food and
Drug Administration or its foreign equivalent from a Regulatory Authority of competent jurisdiction from a country within the European Union or Japan. 

    4.4  Milestone Payments.  For each therapeutic PRODUCT developed by SG, its AFFILIATES or sublicensees
subject to Regulatory Approval by the Food and Drug Administration or other Regulatory
Authority of a country within the European Union or Japan, SG will pay CBM [*] Dollars ($[*]) within ten (10) days of the first PLA for PRODUCT
in the United States, [*] Dollars ($[*]) within ten (10) days of the first PLA or its foreign equivalent in a country within the European Union
and [*] Dollars ($[*]) within ten (10) days of the first PLA or its foreign equivalent in Japan. 

    4.5  Royalties.  SG shall pay to a CBM a [*] percent
([*]%) royalty on NET SALES for each PRODUCT sold by SG or its AFFILIATES, sublicensees, corporate partners, distributors or agents to third parties, but only in the event that
the right to make, use or sell the PRODUCT has been granted by SG to such party. 

    4.6  Currency Conversion.  Royalties and license fees due on sales made in currency other than United
States dollars shall first be calculated in the foreign currency and then converted to United States dollars on the basis of the arithmetic average of the applicable selling rate reported in The Wall
Street Journal for the foreign currency in question for each of the last ten (10) business days of the period for which royalties are due. 

    4.7  Currency Restriction.  If restrictions on the transfer of currency exist in any country such as to
prevent SG from making payments to CBM in the United States, SG shall take all reasonable steps to obtain a waiver of such restrictions or otherwise to enable SG to make such payments, failing which
SG shall make the royalty payments due upon sales in such country in local currency and deposit such payments in a local bank or other depository designated by CBM. 

     5.  ACCOUNTING  

    5.1  Reports.  SG shall report in writing to ENZON (with copy to CBM) within sixty (60) days after
the end of each calendar quarter (commencing the quarter during which the FIRST COMMERCIAL SALE occurs) the quantities of PRODUCT subject to royalties hereunder that were sold by SG and its
AFFILIATES, and sublicensees, corporate partners, distributors or agents during said quarter, and the calculation of the fees and royalties thereon. With said report SG shall pay to CBM (through its
designee in accordance with Section 4.1) the total amount of said fees and royalties. If no PRODUCT subject to license fees or royalties hereunder has been sold by SG or its AFFILIATES,
sublicensees, corporate partners, distributors or agents during any given 

4

 

quarter (commencing the quarter during which the FIRST COMMERCIAL SALE occurs), SG shall so report in writing to ENZON (with copy to CBM) within sixty (60) days after the end of such quarter.
Reports, notices, license fee and royalty payments, and other communications hereunder shall be sent to the appropriate party at the following addresses: 

	For CBM:	 	Wayne E. Mayhew III

Vice President and Chief Financial Officer

Creative BioMolecules, Inc.

45 South Street

Hopkinton, MA 01784
	

For ENZON:	
 	

General Counsel

ENZON, INC.

20 Kingsbridge Road

Piscataway, NJ 08854
	

For SG:	
 	

H. Perry Fell, Ph.D.

President

Seattle Genetics, Inc.

22215 26th Avenue. SE

Bothell, WA 98021

    5.2  Records.  SG shall keep, and require each AFFILIATE, sublicensee, corporate partner, distributor or
agent to keep, adequate records in sufficient detail to enable the license fees and royalties payable by SG hereunder to be determined and, upon reasonable advance notice, permit, and require each
AFFILIATE, sublicensee, corporate partner, distributor or agent to permit, said records to be inspected at any time during regular business hours by an independent auditor appointed by CBM (through
its designee in accordance with Section 4.1) and reasonably satisfactory to SG for this purpose, who shall report to CBM only the amount of the fees and royalties payable hereunder. 

     6.  INFRINGEMENT  

    6.1  No Warranty of Non-Infringement.  Nothing in this Agreement shall be construed as a
warranty, assurance, or representation by CBM or its AFFILIATES that. SG or its AFFILIATES or sublicensees, can make, have made, use, or sell PRODUCT free of any proprietary rights, including third
party patent rights, other than those specifically granted in this Agreement. CBM hereby represents that, as of the EFFECTIVE DATE, SG's practice of the inventions covered by PATENT RIGHTS pursuant to
the license granted hereunder will not infringe any existing patent (including patent to issue on an
existing patent application) right owned by CBM or its AFFILIATES not licensed hereunder, to the extent that such practice does not involve any of the Areas listed in Appendix II. 

    6.2  Infringement by SG.  In the event that SG or its AFFILIATES or sublicensees are sued for
infringement by reason of practicing any invention covered by PATENT RIGHTS, SG or its AFFILIATES or sublicensees shall notify CBM in writing of the suit and shall have the sole right, but not the
obligation, to defend such suit at the expense of SG or its AFFILIATES or sublicensees, as the case may be. Only with respect to matters pertaining to the validity or enforceability of PATENT RIGHTS
shall CBM have the right to provide advice and assistance in any such litigation at its expense, unless such advice and assistance are requested by SG or its AFFILIATES or sublicensees, in which case
it shall be at the expense of SG or its AFFILIATES or sublicensees, as the case may be. In the event CBM is joined in such litigation, CBM shall have the right to defend itself with counsel of its
choice at its expense. 

5

 

    6.3  Infringement by Third Party.  

    (a) SG
shall notify CBM of any infringement by a third party of any PATENT RIGHTS in the FIELD that SG is aware of, and shall provide CBM with the available evidence,
if any, of such infringement. 

    (b) CBM
shall have the exclusive right and sole discretion during the term of this Agreement to stop such infringement including bringing suit or other proceeding
against the infringer in its own name and SG shall be kept informed at all times of all such actions taken by CBM. If CBM requests, SG may, at SG's discretion, assist CBM as a party to the lawsuit or
other proceeding at CBM's expense; however, CBM shall retain control of the prosecution of such suit or proceeding, as the case may be. 

    (c) CBM
shall bear all its costs incurred in connection with such lawsuit or other proceeding, and consequently shall be entitled to collect and retain for its own
account such damages and profits as may be accrued as a result of such lawsuit or other proceeding. 

    (d) If
third party infringement in the FIELD in a particular country continues for more than twelve months after SG' notice to CBM under this Section 6.3, then
any royalty obligation incurred by SG under Section 4.5 hereof shall be reduced by [*]% until such third party infringement terminates. For purposes of the above
sentence, sales by a third party of infringing product in such country shall not be
considered to be "third party infringement" unless such sales, together with sales of infringing product by any other third parties, equal or exceed [*]% of SG sales of PRODUCT
in such country. 

    (e) Nothing
in this Agreement shall be construed as obligating CBM, or giving SG the right, to proceed against a third party infringer. 

     7.  CONFIDENTIALITY, NON-USE AND PUBLICATIONS  

    7.1  CBM's Rights.  Nothing in this Agreement shall be construed to prohibit or limit in any manner the
right of CBM and its AFFILIATES to grant any license for PATENT RIGHTS to any party. CBM may issue public announcements or press releases relating to the existence and/or subject matter of this
Agreement (excluding any disclosure of the financial terms hereof unless required by law or regulation) with reference to SG as the licensee, provided that CBM shall provide SG with not less that five
(5) business days to review and comment on the form and substance of the public announcement or press release. In no event shall CBM include in such announcements or releases, explicitly or
implicitly, any mention or indication that SG endorses any SCA DISCOVERY. 

    7.2  SG's Rights.  SG may issue public announcements or press releases relating to the existence of this
Agreement (excluding any disclosure of the financial terms hereof unless required by law or regulation) with reference to CBM as the licensor, provided that SG shall provide CBM and ENZON with not
less that five (5) business days to review and comment on the form and substance of the public announcement or press release. In no event shall SG include in such announcements or releases,
explicitly or implicitly, any mention or indication that CBM endorses the manufacture, use, or sale of any PRODUCT. 

    7.3  SG's Obligations.  SG shall not use any unpublished PATENT RIGHTS including the text of
Appendix I of this Agreement for any purpose other than as permitted under this Agreement. SG shall keep any unpublished PATENT RIGHTS including the text of Appendix I of this Agreement
disclosed to SG by CBM confidential for three (3) years following the termination of this Agreement for any reason. Nothing in this Agreement shall prevent SG from making any disclosure of
unpublished PATENT RIGHTS including the text of Appendix I of this Agreement required by law. 

6

 

    Nothing
in this Agreement shall in any way restrict the right of SG to use or disclose unpublished PATENT RIGHTS including the text of Appendix I that: 

    (a) at
the time of disclosure by CBM to SG had been published or is publicly known or otherwise in the public domain; 

    (b) is
published, becomes publicly known, or otherwise becomes part of the public domain after disclosure by CBM to SG through no fault of SG; 

    (c) was
known to SG prior to the time of disclosure by CBM, as demonstrated by written records; or 

    (d) was
or is disclosed to SG in good faith by a third party who was not and is not under any obligation of confidence to CBM at the time of said disclosure by said
third party. 

    The
obligation of this Section 7.3 shall apply equally to SG and its AFFILIATES and sublicensees. 

     8.  SG's DILIGENCE  

    During
the term of this Agreement, SG and its AFFILIATES and, if any, sublicensees will use best efforts to develop PRODUCTS for commercial sale and distribution throughout the world,
and to such end will use best efforts to create a demand for the manufacture, sale, and marketing of PRODUCTS, and to meet and fulfill any such demand for said PRODUCTS. 

     9.  INDEMNIFICATION  

    SG
shall defend, indemnify, and hold CBM and its AFFILIATES harmless from and against any and all claims, suits, and expenses, including attorney expenses, arising from the
manufacture, use, or sale or other distribution of PRODUCTS by SG or its AFFILIATES or sublicensees or persons purchasing PRODUCTS from them 

    10.  SG IMPROVEMENTS  

    SG
and its AFFILIATES agree to and hereby do grant to CBM and its AFFILIATES a worldwide, royalty-free, non-exclusive license, including the right to grant
sublicenses to third parties, to make, use, and sell any product covered by SG PATENT RIGHTS. 

    11.  TERM AND TERMINATION  

    11.1  Default.  If either party shall fail to perform any of its obligations under this Agreement, the
nondefaulting party may give written notice of the default to the defaulting party. Unless such default is corrected within sixty (60) days after receipt of such notice, the notifying party may
thereafter terminate this Agreement. 

    11.2  Term.  Unless otherwise terminated, as provided for in this Agreement, this Agreement will continue
on a country by country basis until the expiration of the last to expire PATENT RIGHT in the country in question. 

    11.3  Termination by SG.  This Agreement may be terminated as a whole by SG at any time pursuant to
written notice to CBM (with copy to ENZON). 

    11.4  Survivability.  Sections 5, 6, 7, 9 and, with respect to all SG PATENT RIGHTS existing as of the
time of termination, 10 shall survive the termination of this Agreement, except that Section 10 shall not survive if SG terminates this Agreement under Section 11.1 for CBM' s default. 

    12.  MISCELLANEOUS  

    12.1  DISCLAIMER OF WARRANTIES.  EXCEPT AS OTHERWISE EXPRESSLY PROVIDED HEREIN, CBM EXPRESSLY DISCLAIMS
ALL WARRANTIES, EXPRESS OR 

7

 

IMPLIED, INCLUDING WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. 

    12.2  Integration.  This Agreement constitutes the entire understanding between the parties with respect
to the subject matter hereof, and supersedes and replaces all prior agreements, understandings, writings, and discussions between the parties relating to said subject matter. 

    12.3  Amendments.  This Agreement may be amended only by a written instrument executed by the parties. 

    12.4  Waiver.  The failure of either party at any time or times to require performance of any provision
hereof shall in no manner affect its rights at a later time to enforce the same. No waiver by either party of any condition or term in any one or more instances shall be construed as a further or
continuing waiver of such condition or term or any other condition or term. 

    12.5  Successors.  This Agreement shall be binding upon and inure to the benefit of and be enforceable by
the parties hereto and their respective successors and permitted assigns. 

    12.6  Assignability.  This Agreement shall not be assignable by either party without the other party's
written consent, except for CBM's right to receive fees and royalties payable hereunder, upon sixty (60) days prior written notice to SG. Either party, however, shall have the right to transfer
this Agreement to any AFFILIATE, or to any successor of its entire business to which this Agreement relates without the consent of the other party. 

    12.7  Notices.  Any notice and payment of fees or royalties required or permitted to be given hereunder
shall be deemed sufficient if mailed by overnight service producing evidence of delivery or by registered or certified mail (return receipt requested), or delivered by hand to the party to whom such
notice is required at the address set forth in Section 5.1 hereof. Any notice required or permitted to be given hereunder shall be considered given upon the earlier of (i) when actually
received at the address set forth in Section 5.1, or (ii) two business days after such notice is properly mailed in accordance with this Section 12.7. 

    12.8  Validity of Provisions.  If any provision(s) of this Agreement are or become invalid, are ruled
illegal by any court of competent jurisdiction or are deemed unenforceable under then current applicable law from time to time in effect during the term hereof, it is the intention of the parties that
the remainder
of this Agreement shall not be affected thereby. It is further the intention of the parties that in lieu of each such invalid, illegal, or unenforceable provision, there shall be substituted or added
as part of this Agreement a provision that shall be as similar as possible in economic and business objectives to such invalid, illegal, or unenforceable provision as was originally intended by the
parties, but that shall be valid, legal, and enforceable. 

    12.9  Titles.  All titles and subtitles used in this Agreement are for purposes of illustration or
organization and are not legally binding on the parties. 

    12.10  Relationship of the Parties.  Nothing in this Agreement is intended or shall be deemed to
constitute a partnership, agency, employer-employee, or joint venture relationship between the parties, and neither party is authorized or empowered to act as agent for the other for any purpose or to
make any statement, contract, warranty, representation or commitment on behalf of the other. 

    12.11  Further Acts and Instruments.  Each party hereto agrees to execute, acknowledge, and deliver such
further instruments and to do all such other acts as may be necessary or appropriate to effect the purpose and intent of this Agreement. 

    12.12  Export Restrictions.  This Agreement, and any products or technical data supplied during the term
of this Agreement, are made subject to any restrictions concerning the export of products or technical data from the United States of America that may be imposed upon CBM or 

8

 

SG or their respective AFFILIATES or sublicensees from time to time by the Government of the United States of America. Furthermore, SG and its AFFILIATES agree that at no time, either during the term
of this Agreement or thereafter, will they or their sublicensees export, directly or indirectly, any United States source products or technical data acquired from CBM or its AFFILIATES under this
Agreement or any direct products of that technical data to any country for which the U.S. Government or any agency thereof at the time of export requires an export license or other governmental
approval, without first obtaining that license or approval when required by applicable United States law. 

    12.13  Choice of Law.  This Agreement shall be governed by and construed and interpreted in accordance
with the laws of the State of New Jersey. 

    The
parties have duly executed this Agreement as of the date first above written. 

	CREATIVE BIOMOLECULES, INC.	 	SEATTLE GENETICS, INC.
	

By:	
 	

/s/ STEVE L. BASTA   
	
 	

By:	
 	

/s/ H. PERRY FELL   

	

Name:	
 	

Steven L. Basta
	
 	

Name:	
 	

H. Perry Fell

	

Title:	
 	
Vice President, Corporate

Development & Investor Relations
	
 	

Title:	
 	
President

9

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NON-EXCLUSIVE LICENSE AGREEMENT

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