Document:

Exhibit 10.32

 

CORGENTECH INC.

2003 EQUITY INCENTIVE PLAN

 

STOCK OPTION GRANT NOTICE

 

CORGENTECH INC. (the
“Company”), pursuant to its 2003 Equity Incentive Plan (the “Plan”), hereby
grants to Optionholder an option to purchase the number of shares of the Company’s
Common Stock set forth below.  This
option is subject to all of the terms and conditions as set forth herein and in
the Stock Option Agreement, the Plan and the Notice of Exercise, all of which
are attached hereto and incorporated herein in their entirety.

 

	
  Optionholder:

  	
   

  
	
  Date of Grant:

  	
   

  
	
  Vesting Commencement Date:

  	
   

  
	
  Number of Shares Subject to Option:

  	
   

  
	
  Exercise Price (Per Share):

  	
   

  
	
  Total Exercise Price:

  	
   

  
	
  Expiration Date:

  	
   

  

 

	
  Type of Grant:

  	
  [Nonstatutory
  Stock Option] OR [Incentive Stock Option]

  
	
   

  	
   

  
	
  Exercise
  Schedule:

  	
  o

  	
  Same
  as Vesting Schedule

  	
  o

  	
  Early
  Exercise Permitted

  
	
   

  	
   

  
	
  Vesting
  Schedule:

  	
  [1/4th
  of the shares vest one year after the Vesting Commencement Date and 1/48th
  of the shares vest monthly thereafter over the next three years.]

  
	
   

  	
   

  
	
   

  	
  OR

  
	
   

  	
   

  
	
   

  	
  [1/48th
  of the shares vest monthly over four years from the Vesting Commencement
  Date.]

  
	
   

  	
   

  
	
   

  	
  OR

  
	
   

  	
   

  
	
   

  	
  [1/12th
  of the shares vest monthly over one year from the Vesting Commencement Date.]

  

 

The vesting of
this Option is subject to Optionholder’s Continuous Service (as defined in the
Plan). This vesting schedule may be accelerated as provided in the Plan and the
Stock Option Agreement.

 

	
  Payment:

  	
  By one or a
  combination of the following items (described in the Stock Option Agreement):

  
	
   

  	
   

  
	
   

  	
  o

  	
  By cash or check

  
	
   

  	
  o

  	
  Pursuant to a Regulation T Program if the Shares are publicly traded

  
	
   

  	
  o

  	
  By delivery of already-owned shares if the Shares are publicly traded

  

 

Additional Terms/Acknowledgements:  The undersigned Optionholder acknowledges
receipt of, and understands and agrees to, this Stock Option Grant Notice, the
Stock Option Agreement and the Plan. 
Optionholder further acknowledges that as of the Date of Grant, this
Stock Option Grant Notice, the Stock Option Agreement and the Plan set forth
the entire understanding between Optionholder and the Company regarding the
acquisition of stock in the Company and supersede all prior oral and written
agreements on that subject with the exception of (i) options previously granted
and delivered to Optionholder under the Plan, and (ii) the following
agreements only:

 

	
  OTHER AGREEMENTS:

  	
   

  
	
   

  	
   

  

 

 

1

 

	
  CORGENTECH INC. 

  	
   

  	
  OPTIONHOLDER: 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  	
   

  
	
  Title: 

  	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
						

 

ATTACHMENTS:  Stock Option Agreement, the Plan and the
Notice of Exercise

 

2

 

CORGENTECH INC.

2003 EQUITY INCENTIVE PLAN

 

STOCK OPTION AGREEMENT

 

Pursuant
to your Stock Option Grant Notice (“Grant Notice”) and this Stock Option
Agreement, Corgentech Inc. (the “Company”) has granted
you an option under its 2003 Equity
Incentive Plan (the “Plan”) to purchase the number of shares of the Company’s
Common Stock indicated in your Grant Notice at the exercise price indicated in
your Grant Notice.  Defined terms not
explicitly defined in this Stock Option Agreement but defined in the Plan shall
have the same definitions as in the Plan.

The
details of your option are as follows:

1.             VESTING.  Subject to the limitations contained herein,
your option will vest as provided in your Grant Notice, provided that vesting
will cease upon the termination of your Continuous Service and that your
vesting may be accelerated as provided in the Plan.

 

2.             NUMBER Of SHARES And EXERCISE PRICE.  The number of shares of Common Stock subject
to your option and your exercise price per share referenced in your Grant
Notice may be adjusted from time to time for Capitalization Adjustments.

 

3.             EXERCISE PRIOR TO VESTING (“EARLY EXERCISE”).  If permitted in your Grant Notice (i.e., the “Exercise
Schedule” indicates that “Early Exercise” of your option is permitted) and
subject to the provisions of your option, you may elect at any time that is
both (i) during the period of your Continuous Service and (ii) during the term
of your option, to exercise all or part of your option, including the nonvested
portion of your option; provided, however,
that:

 

(a)   a
partial exercise of your option shall be deemed to cover first vested shares of
Common Stock and then the earliest vesting installment of unvested shares of
Common Stock;

 

(b)   any
shares of Common Stock so purchased from installments that have not vested as
of the date of exercise shall be subject to the purchase option in favor of the
Company as described in the Company’s form of Early Exercise Stock Purchase
Agreement; and

 

(c)   you
shall enter into the Company’s form of Early Exercise Stock Purchase Agreement
with a vesting schedule that will result in the same vesting as if no early
exercise had occurred.

 

4.             METHOD OF PAYMENT.  Payment of the exercise price is due in full
upon exercise of all or any part of your option.  You may elect to make payment of the exercise
price in cash or by check or in any other manner permitted
by your Grant Notice, which may include one or more of the
following:

 

(a)   In
the Company’s sole discretion at the time your option is exercised and provided
that at the time of exercise the Common Stock is publicly traded and quoted
regularly in The Wall Street Journal, pursuant
to a program developed under Regulation T as promulgated by the Federal Reserve
Board that, prior to the issuance of Common Stock, results in either the
receipt of cash (or check) by the Company or the receipt of irrevocable
instructions to pay the aggregate exercise price to the Company from the sales
proceeds.

 

3

 

(b)   Provided
that at the time of exercise the Common Stock is publicly traded and quoted
regularly in The Wall Street Journal, by
delivery of already-owned shares of Common Stock either that you have held for
the period required to avoid a charge to the Company’s reported earnings
(generally six (6) months) or that you did not acquire, directly or indirectly
from the Company, that are owned free and clear of any liens, claims,
encumbrances or security interests, and that are valued at Fair Market Value on
the date of exercise.  “Delivery” for
these purposes, in the sole discretion of the Company at the time you exercise
your option, shall include delivery to the Company of your attestation of
ownership of such shares of Common Stock in a form approved by the
Company.  Notwithstanding the foregoing,
you may not exercise your option by tender to the Company of Common Stock to
the extent such tender would violate the provisions of any law, regulation or
agreement restricting the redemption of the Company’s stock.

 

5.             WHOLE SHARES.  You may exercise your option only for whole
shares of Common Stock.

 

6.             SECURITIES LAW COMPLIANCE.  Notwithstanding anything to the contrary
contained herein, you may not exercise your option unless the shares of Common
Stock issuable upon such exercise are then registered under the Securities Act
or, if such shares of Common Stock are not then so registered, the Company has
determined that such exercise and issuance would be exempt from the
registration requirements of the Securities Act.  The exercise of your option also must comply
with other applicable laws and regulations governing your option, and you may
not exercise your option if the Company determines that such exercise would not
be in material compliance with such laws and regulations.

 

7.             TERM.  You may not exercise your option before the
commencement or after the expiration of its term.  The term of your option commences on the Date
of Grant and expires upon the earliest of the following:

 

(a)   three
(3) months after the termination of your Continuous Service for any reason
other than your Disability or death, provided that if during any part of such
three (3) month period your option is not exercisable solely because of the
condition set forth in Section 6, your option shall not expire until the
earlier of the Expiration Date or until it shall have been exercisable for an
aggregate period of three (3) months after the termination of your Continuous
Service;

 

(b)   twelve
(12) months after the termination of your Continuous Service due to your
Disability;

 

(c)   eighteen
(18) months after your death if you die either during your Continuous Service
or within three (3) months after your Continuous Service terminates;

 

(d)   the
Expiration Date indicated in your Grant Notice; or

 

(e)   the
day before the tenth (10th) anniversary of the Date of Grant.

 

4

 

8.             EXERCISE.

 

(a)   You
may exercise the vested portion of your option (and the unvested portion of
your option if your Grant Notice so permits) during its term by delivering a
Notice of Exercise (in a form designated by the Company) together with the
exercise price to the Secretary of the Company, or to such other person as the
Company may designate, during regular business hours, together with such
additional documents as the Company may then require.

 

(b)   By
exercising your option you agree that, as a condition to any exercise of your
option, the Company may require you to enter into an arrangement providing for
the payment by you to the Company of any tax withholding obligation of the
Company arising by reason of (1) the exercise of your option, (2) the lapse of
any substantial risk of forfeiture to which the shares of Common Stock are
subject at the time of exercise, or (3) the disposition of shares of Common
Stock acquired upon such exercise.

 

9.             TRANSFERABILITY.  Your option is not transferable, except by
will or by the laws of descent and distribution, and is exercisable during your
life only by you.  Notwithstanding the
foregoing, by delivering written notice to the Company, in a form satisfactory
to the Company, you may designate a third party who, in the event of your
death, shall thereafter be entitled to exercise your option.

 

10.          OPTION NOT A SERVICE CONTRACT.  Your option is not an employment or service
contract, and nothing in your option shall be deemed to create in any way
whatsoever any obligation on your part to continue in the employ of the Company
or an Affiliate, or of the Company or an Affiliate to continue your
employment.  In addition, nothing in your
option shall obligate the Company or an Affiliate, their respective
stockholders, Boards of Directors, Officers or Employees to continue any
relationship that you might have as a Director or Consultant for the Company or
an Affiliate.

 

11.          WITHHOLDING OBLIGATIONS.

 

(a)   At
the time you exercise your option, in whole or in part, or at any time
thereafter as requested by the Company, you hereby authorize withholding from
payroll and any other amounts payable to you, and otherwise agree to make
adequate provision for (including by means of a “cashless exercise” pursuant to
a program developed under Regulation T as promulgated by the Federal Reserve
Board to the extent permitted by the Company), any sums required to satisfy the
federal, state, local and foreign tax withholding obligations of the Company or
an Affiliate, if any, which arise in connection with the exercise of your
option.

 

(b)   Upon
your request and subject to approval by the Company, in its sole discretion,
and compliance with any applicable legal conditions or restrictions, the
Company may withhold from fully vested shares of Common Stock otherwise issuable
to you upon the exercise of your option a number of whole shares of Common
Stock having a Fair Market Value, determined by the Company as of the date of
exercise, not in excess of the minimum amount of tax required to be withheld by
law (or such lower amount as may be necessary to avoid variable award
accounting).  If the date of
determination of any tax withholding obligation is deferred to a date later
than the date of exercise of your option,

 

5

 

share
withholding pursuant to the preceding sentence shall not be permitted unless
you make a proper and timely election under Section 83(b) of the Code, covering
the aggregate number of shares of Common Stock acquired upon such exercise with
respect to which such determination is otherwise deferred, to accelerate the
determination of such tax withholding obligation to the date of exercise of
your option.  Notwithstanding the filing
of such election, shares of Common Stock shall be withheld solely from fully
vested shares of Common Stock determined as of the date of exercise of your
option that are otherwise issuable to you upon such exercise.  Any adverse consequences to you arising in
connection with such share withholding procedure shall be your sole responsibility.

 

(c)   You
may not exercise your option unless the tax withholding obligations of the
Company and/or any Affiliate are satisfied. 
Accordingly, you may not be able to exercise your option when desired
even though your option is vested, and the Company shall have no obligation to
issue a certificate for such shares of Common Stock or release such shares of
Common Stock from any escrow provided for herein unless such obligations are
satisfied.

 

12.          NOTICES.  Any notices provided for in your option or
the Plan shall be given in writing and shall be deemed effectively given upon
receipt or, in the case of notices delivered by mail by the Company to you,
five (5) days after deposit in the United States mail, postage prepaid,
addressed to you at the last address you provided to the Company.

 

13.          GOVERNING PLAN DOCUMENT.  Your option is subject to all the provisions
of the Plan, the provisions of which are hereby made a part of your option, and
is further subject to all interpretations, amendments, rules and regulations,
which may from time to time be promulgated and adopted pursuant to the
Plan.  In the event of any conflict
between the provisions of your option and those of the Plan, the provisions of
the Plan shall control.

 

6

 

CORGENTECH INC.

2003 EQUITY INCENTIVE PLAN

 

RESTRICTED STOCK AWARD GRANT
NOTICE

 

CORGENTECH INC.
(the “Company”), pursuant to its 2003 Equity Incentive Plan (the “Plan”),
hereby awards to Participant the number of shares of the Company’s Common Stock
set forth below (“Award”).  This Award is
subject to all of the terms and conditions as set forth herein and in the
Restricted Stock Award Agreement, the Plan, the form of Assignment Separate
from Certificate and the form of Joint Escrow Instructions, all of which are
attached hereto and incorporated herein in their entirety.

 

	
  Participant:

  	
   

  
	
  Date of Grant:

  	
   

  
	
  Vesting Commencement Date:

  	
   

  
	
  Number of Shares Subject to Award:

  	
   

  
	
  Consideration:

  	
   

  

 

	
  Vesting Schedule:

  	
  o

  	
  [1/4th of the shares vest one year after the Vesting Commencement
  Date.

  1/48th of the shares vest monthly thereafter over the next three
  years.]

  
	
   

  	
  o

  	
  NONE

  

 

Additional Terms/Acknowledgements:  The undersigned Participant acknowledges
receipt of, and understands and agrees to, this Restricted Stock Award Grant
Notice, the Restricted Stock Award Agreement and the Plan.  Participant further acknowledges that as of
the Date of Grant, this Restricted Stock Award Grant Notice, the Restricted
Stock Award Agreement and the Plan set forth the entire understanding between
Participant and the Company regarding the acquisition of stock in the Company
and supersede all prior oral and written agreements on that subject with the
exception of (i) Awards previously granted and delivered to Participant under
the Plan, and (ii) the following agreements only:

 

OTHER AGREEMENTS:

 

 

	
  CORGENTECH INC.

  	
   

  	
  PARTICIPANT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
										

 

ATTACHMENTS:                      Restricted
Stock Award Agreement, 2003 Equity Incentive Plan, form of Assignment Separate
from Certificate and form of Joint Escrow Instructions.

 

7

 

CORGENTECH INC.

2003 EQUITY INCENTIVE PLAN

 

RESTRICTED STOCK AWARD
AGREEMENT

 

Pursuant to the Restricted Stock Award Grant Notice (“Grant Notice”)
and this Restricted Stock Award Agreement (collectively, the “Award”) and in
consideration of the Purchase Price (as defined below), Corgentech Inc. (the “Company”)
has awarded you a restricted stock award under its 2003 Equity Incentive Plan
(the “Plan”) for the number of shares of the Company’s Common Stock subject to
the Award as indicated in the Grant Notice. 
Defined terms not explicitly defined in this Restricted Stock Award
Agreement but defined in the Plan shall have the same definitions as in the
Plan.

 

The details of your Award are as
follows:

 

1.             CONSIDERATION.  The purchase price of Common Stock acquired
pursuant to the Award shall be paid either: (i) in cash at the time of
purchase; (ii) at the discretion of the Board, according to a deferred payment
or other similar arrangement with you; (iii) at the discretion of the Board, by
services rendered or to be rendered to the Company; or (iv) in any other form
of legal consideration that may be acceptable to the Board in its discretion
(the “Purchase Price”); provided, however,
that payment of the Common Stock’s “par value,” as defined in the Delaware
General Corporation Law, shall not be made by deferred payment and must be made
in a form of consideration legal under Delaware General Corporation Law.

 

2.             VESTING.  Subject
to the limitations contained herein, your Award will vest as provided in the
Grant Notice, provided that vesting will cease upon the termination of your
Continuous Service.

 

3.             NUMBER OF SHARES.  The
number of shares subject to your Award may be adjusted from time to time for
Capitalization Adjustments, as provided in the Plan.

 

4.             TRANSFER RESTRICTIONS.  The
shares issued under your Award are not transferable until vested and while
non-vested shall not be sold, assigned, hypothecated, pledged or otherwise
transferred by you.  The Company shall
not be required: (a) to transfer on its books any shares issued under your
Award that are sold, assigned, hypothecated, pledged, or otherwise transferred
in violation of any of the provisions set forth in this Agreement, or (b) to
treat as owner of such shares issued under your Award or to accord the right to
vote as such owner or to pay dividends to any purported transferee of such shares
issued under your Award.

 

5.             RIGHT OF REACQUISITION.

 

(a)   The
Company shall have the right to reacquire all or any part of the shares (the “Reacquisition
Right”) you received pursuant to your Award that have not as yet vested in
accordance with the Vesting Schedule on the Grant Notice (“Unvested Shares”) on
the following terms and conditions:

 

(i)    The
Company shall simultaneously with termination of your Continuous Service
automatically reacquire all of the Unvested Shares for the consideration that
you paid or for no consideration if the shares were granted to you, unless the  Company agrees to

 

8

 

waive its
Reacquisition Right as to some or all of the Unvested Shares.  Any such waiver shall be exercised by the
Company by written notice to you or your representative (with a copy to the
Escrow Holder as defined below) within ninety (90) days after the termination
of your Continuous Service, and the Escrow Holder may then release to you the
number of Unvested Shares not being reacquired by the Company.  If the Company does not waive its
Reacquisition Right as to all of the Unvested Shares, then upon such
termination of your Continuous Service, the Escrow Holder shall transfer to the
Company the number of shares the Company is reacquiring.

 

(ii)   The
shares issued under your Award shall be held in escrow pursuant to the terms of
the Joint Escrow Instructions attached to the Grant Notice as Attachment
IV.  You agree to execute three (3)
Assignment Separate From Certificate forms (with date and number of shares
blank) substantially in the form attached to the Grant Notice as Attachment III
and deliver the same, along with the certificate or certificates evidencing the
shares, for use by the escrow agent pursuant to the terms of the Joint Escrow
Instructions.

 

(iii) Subject
to the provisions of your Award, you shall, during the term of your Award,
exercise all rights and privileges of a shareholder of the Company with respect
to the shares deposited in escrow. You shall be deemed to be the holder of the
shares for purposes of receiving any dividends which may be paid with respect
to such shares and for purposes of exercising any voting rights relating to
such shares, even if some or all of such shares have not yet vested and been
released from the Company’s Reacquisition Right.

 

(iv)  If,
from time to time, there is any stock dividend, stock split or other change in
the character or amount of any of the outstanding stock of the corporation, the
stock of which is subject to the provisions of your Award, then in such event
any and all new, substituted or additional securities to which you are entitled
by reason of your ownership of the shares acquired under your Award shall be
immediately subject to the Reacquisition Right with the same force and effect
as the shares subject to this Reacquisition Right immediately before such
event.

 

6.             RESTRICTIVE LEGENDS.  All certificates
representing the Common Stock shall have endorsed thereon legends in
substantially the following forms (in addition to any other legend which may be
required by other agreements between the parties hereto):

 

“THE SHARES
REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO AN OPTION SET FORTH IN AN
AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER, OR SUCH HOLDER’S
PREDECESSOR IN INTEREST, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF
THIS COMPANY.  ANY TRANSFER OR ATTEMPTED
TRANSFER OF ANY SHARES SUBJECT TO SUCH OPTION IS VOID WITHOUT THE PRIOR EXPRESS
WRITTEN CONSENT OF THE COMPANY.”

 

7.             AWARD NOT A
SERVICE CONTRACT.  Your Award is not an employment
or service contract, and nothing in your Award shall be deemed to create in any
way whatsoever

 

9

 

any
obligation on your part to continue in the employ of the Company or an
Affiliate, or on the part of the Company or an Affiliate to continue your
employment.  In addition, nothing in your
Award shall obligate the Company or an Affiliate, their respective
shareholders, boards of directors, Officers or Employees to continue any
relationship that you might have as a Director or Consultant for the Company or
an Affiliate.

 

8.             WITHHOLDING OBLIGATIONS.

 

(a)   At
the time your Award is made, or at any time thereafter as requested by the
Company, you hereby authorize withholding from payroll and any other amounts
payable to you, and otherwise agree to make adequate provision for any sums
required to satisfy the federal, state, local and foreign tax withholding
obligations of the Company or an Affiliate, if any, which arise in connection
with your Award.

 

(b)   Unless
the tax withholding obligations of the Company and/or any Affiliate are
satisfied, the Company shall have no obligation to issue a certificate for such
shares or release such shares from any escrow provided for herein.

 

9.             TAX CONSEQUENCES.
  The acquisition and vesting of
the shares may have adverse tax consequences to you.  You may mitigate or exacerbate such tax
consequences by filing an election under Section 83(b) of the Internal Revenue
Code, as amended (the “Code”).  Such
election must be filed within thirty (30) days after the date of your
Award.  YOU ACKNOWLEDGE THAT IT IS YOUR
OWN RESPONSIBILITY, AND NOT THE COMPANY’S, TO DETERMINE WHETHER A SECTION 83(b)
ELECTION IS APPROPRIATE FOR YOUR SITUATION. 
If YOU DECIDE TO FILE A SECTION 83(b) ELECTION, IT IS YOUR
RESPONSIBILITY AND NOT THE COMPANY’S TO FILE A TIMELY ELECTION UNDER CODE
SECTION 83(B), EVEN IF YOU REQUEST THE COMPANY TO MAKE THE FILING ON YOUR
BEHALF.

 

10.          NOTICES.  Any
notices provided for in your Award or the Plan shall be given in writing and
shall be deemed effectively given upon receipt or, in the case of notices
delivered by the Company to you, five (5) days after deposit in the United
States mail, postage prepaid, addressed to you at the last address you provided
to the Company.

 

11.          MISCELLANEOUS.

 

(a)   The
rights and obligations of the Company under your Award shall be transferable to
any one or more persons or entities, and all covenants and agreements hereunder
shall inure to the benefit of, and be enforceable by the Company’s successors
and assigns. Your rights and obligations under your Award may only be assigned
with the prior written consent of the Company.

 

(b)   You
agree upon request to execute any further documents or instruments necessary or
desirable in the sole determination of the Company to carry out the purposes or
intent of your Award.

 

10

 

(c)   You
acknowledge and agree that you have reviewed your Award in its entirety, have
had an opportunity to obtain the advice of counsel prior to executing and
accepting your Award and fully understand all provisions of your Award.

 

12.          GOVERNING PLAN
DOCUMENT.  Your Award is subject to all the provisions
of the Plan, the provisions of which are hereby made a part of your Award, and
is further subject to all interpretations, amendments, rules and regulations
which may from time to time be promulgated and adopted pursuant to the
Plan.  In the event of any conflict
between the provisions of your Award and those of the Plan, the provisions of
the Plan shall control.

 

11

 

ASSIGNMENT SEPARATE FROM
CERTIFICATE

 

FOR VALUE RECEIVED
and pursuant to that certain Restricted Stock Award Grant Notice and Restricted
Stock Award Agreement (the “Award”),                              
hereby sells, assigns and transfers unto Corgentech Inc., a Delaware
corporation (“Assignee”)                                                   
(                     )
shares of the common stock of the Assignee, standing in the undersigned’s name
on the books of said corporation represented by Certificate No.               
herewith and do hereby irrevocably constitute and appoint                                           
as attorney-in-fact to transfer the said stock on the books of the within named
Company with full power of substitution in the premises. This Assignment may be
used only in accordance  with and
subject to the terms and conditions of the Award, in connection with the reacquisition
of shares of Common Stock of the Assignee issued to the undersigned pursuant to
the Award, and only to the extent that such shares remain subject to the
Assignee’s Reacquisition Right under the Award.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Signature:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  , Recipient

  
								

 

[INSTRUCTION:  Please do not fill in any blanks other than
the signature line.  The purpose of this
Assignment is to enable the Company to exercise its Reacquisition Right set
forth in the Award without requiring additional signatures on your part.]

 

 

JOINT ESCROW INSTRUCTIONS

[Date]

 

Corporate Secretary

Corgentech Inc.

650 Gateway Boulevard

South San Francisco, CA 94080

 

Dear Sir/Madam:

 

As Escrow Agent for both Corgentech Inc., a Delaware corporation (the “Company”),
and the undersigned recipient of stock of the Company (“Recipient”), you are
hereby authorized and directed to hold the documents delivered to you pursuant
to the terms of that certain Restricted Stock Award Grant Notice (the “Grant
Notice”), dated                        
to which a copy of these Joint Escrow Instructions is attached as Attachment
IV, and pursuant to the terms of that
certain Restricted Stock Award Agreement (“Agreement”), which is Attachment I
to the Grant Notice,  in
accordance with the following instructions:

 

1.             In
the event the Company or an assignee shall elect to exercise the Repurchase
Option set forth in the Agreement, the Company or its assignee will give to
Recipient and you a written notice specifying the number of shares of stock to
be purchased and the time and place for a closing thereunder.  Recipient and the Company hereby irrevocably
authorize and direct you to close the transaction contemplated by such notice
in accordance with the terms of said notice.

 

2.             At
the closing, you are directed (a) to date the stock assignments necessary for
the transfer in question, (b) to fill in the number of shares being
transferred, and (c) to deliver the same, together with the certificate
evidencing the shares of stock to be transferred, to the Company against the
simultaneous delivery to you of the purchase price (which may include suitable
acknowledgment of cancellation of indebtedness) for the number of shares of
stock being purchased pursuant to the exercise of the Repurchase Option.

 

3.             Recipient
irrevocably authorizes the Company to deposit with you any certificates
evidencing shares of stock to be held by you hereunder and any additions and
substitutions to said shares as specified in the Agreement.  Recipient does hereby irrevocably constitute
and appoint you as his attorney-in-fact and agent for the term of
this escrow to execute with respect to such securities and other property all
documents necessary or appropriate to make such securities negotiable and
complete any transaction herein contemplated, including but not limited to any
appropriate filing with state or government officials or bank officials.

 

4.             This
escrow shall terminate upon the exercise in full or expiration of the
Repurchase Option, whichever occurs first.

 

5.             If
at the time of termination of this escrow you should have in your possession
any documents, securities, or other property belonging to Recipient, you shall
deliver all of the same to Recipient and shall be discharged of all further
obligations hereunder; provided, however, that if at the time of termination of
this escrow you are advised by the Company that

 

2

 

any property subject to this escrow is the subject of a pledge or other
security agreement, you shall deliver all such property to the pledgeholder or
other person designated by the Company.

 

6.             Except
as otherwise provided in these Joint Escrow Instructions, your duties hereunder
may be altered, amended, modified or revoked only by a writing signed by all of
the parties hereto.

 

7.             You
shall be obligated only for the performance of such duties as are specifically
set forth herein and may rely and shall be protected in relying or refraining
from acting on any instrument reasonably believed by you to be genuine and to
have been signed or presented by the proper party or parties.  You shall not be personally liable for any
act you may do or omit to do hereunder as Escrow Agent or as attorney-in-fact
for Recipient while acting in good faith, and any act done or omitted by you
pursuant to the advice of your own attorneys shall be conclusive evidence of
such good faith.

 

8.             You
are hereby expressly authorized to disregard any and all warnings given by any
of the parties hereto or by any other person or corporation, excepting only
orders or process of courts of law, and are hereby expressly authorized to
comply with and obey orders, judgments or decrees of any court.  In case you obey or comply with any such
order, judgment or decree of any court, you shall not be liable to any of the
parties hereto or to any other person, firm or corporation by reason of such
compliance, notwithstanding any such order, judgment or decree being
subsequently reversed, modified, annulled, set aside, vacated or found to have
been entered without jurisdiction.

 

9.             You
shall not be liable in any respect on account of the identity, authorities or
rights of the parties executing or delivering or purporting to execute or
deliver these Joint Escrow Instructions or documents or papers deposited or
called for hereunder.

 

10.          You
shall not be liable for the outlawing of any rights under any statute of
limitations with respect to these Joint Escrow Instructions or any documents
deposited with you.

 

11.          Your
responsibilities as Escrow Agent hereunder shall terminate if you shall cease
to be Secretary of the Company or if you shall resign by written notice to each
party.  In the event of any such
termination, the Secretary of the Company shall automatically become the
successor Escrow Agent unless the Company shall appoint another officer or
assistant officer of the Company as successor Escrow Agent, and Recipient
hereby confirms the appointment of such successor as his attorney-in-fact and
agent to the full extent of your appointment.

 

12.          If
you reasonably require other or further instruments in connection with these
Joint Escrow Instructions or obligations in respect hereto, the necessary
parties hereto shall join in furnishing such instruments.

 

13.          It
is understood and agreed that should any dispute arise with respect to the
delivery and/or ownership or right of possession of the securities held by you
hereunder, you are authorized and directed to retain in your possession without
liability to anyone all or any part of said securities until such dispute shall
have been settled either by mutual written agreement of the parties concerned
or by a final order, decree or judgment of a court of competent jurisdiction

 

3

 

after the time for appeal has expired and no appeal has been perfected,
but you shall be under no duty whatsoever to institute or defend any such proceedings.

 

14.          All
notices required or permitted hereunder shall be in writing and shall be deemed
effectively given: (a) upon personal delivery to the party to be notified, (b)
when sent by confirmed telex or facsimile if sent during normal business hours
of the recipient, and if not during normal business hours of the recipient,
then on the next business day, (c) five (5) calendar days after having been
sent by registered or certified mail, return receipt requested, postage
prepaid, or (d) one (1) business day after deposit with a nationally recognized
overnight courier, specifying next day delivery, with written verification of
receipt.  All communications shall be
sent to the other parties hereto at such party’s address set forth below, or at
such other address as such party may designate by ten (10) days advance written
notice to the other parties hereto.

 

	
  Company:

  	
  Corgentech Inc. 

  650 Gateway Boulevard 

  South San Francisco, CA 94080 

  Attn: General Counsel / Chief Financial Officer

  
	
   

  	
   

  
	
  Recipient:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Escrow Agent:

  	
  Corgentech Inc. 

  650 Gateway Boulevard 

  South San Francisco, CA 94080 

  Attn: Corporate Secretary

  

 

15.          By
signing these Joint Escrow Instructions, you become a party hereto only for the
purpose of said Joint Escrow Instructions; you do not become a party to the
Grant Notice.

 

16.          You
shall be entitled to employ such legal counsel and other experts (including,
without limitation, the firm of Cooley Godward llp)
as you may deem necessary properly to advise you in connection with your obligations
hereunder.  You may rely upon the advice
of such counsel, and you may pay such counsel reasonable compensation
therefor.  The Company shall be
responsible for all fees generated by such legal counsel in connection with
your obligations hereunder.

 

17.          This
instrument shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and permitted assigns.  It is understood and agreed that references
to “you” and “your” herein refer to the original Escrow Agent and to any and
all successor Escrow Agents.  It is
understood and agreed that the Company may at any time or from time to time
assign its rights under the Grant Notice and these Joint Escrow Instructions in
whole or in part.

 

18.          These
Joint Escrow Instructions shall be governed by and interpreted and determined
in accordance with the laws of the State of California, as such laws are
applied by California courts to contracts made and to be performed entirely in
California by residents of that state.

 

4

 

	
   

  	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CORGENTECH
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  RECIPIENT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
  ESCROW AGENT:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
							

 

5EXHIBIT 10.33

 

[ *
]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

 

1.                                      CYCLACEL LIMITED

 

-                    and –

 

 

2.                                      CORGENTECH INC.

 

 

LICENSING AGREEMENT

 

 

TABLE OF CONTENTS

 

	
  1.

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  MANAGEMENT OF THE RESEARCH PROGRAM

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  2.1

  	
  STEERING COMMITTEE.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.2

  	
  DISCLOSURE BY CYCLACEL.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.3

  	
  RESEARCH PROGRAM AND DEVELOPMENT PROGRAM.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.4

  	
  DISCLOSURE BY CORGENTECH.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.5

  	
  COMMERCIALLY REASONABLE EFFORTS.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.6

  	
  CORGENTECH OBLIGATIONS.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.7

  	
  SUBCONTRACTING AND SUBLICENSING UNDER THE
  RESEARCH PROGRAM.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.8

  	
  SUPPLY OF VARIANT PEPTIDES.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.9

  	
  [ *
  ].

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  [ * ]OF VARIANT PEPTIDES [ * ];
  [ * ]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
  AVAILABILITY.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  3.2

  	
  [
  * ]OF [ * ], [
  * ]AND [ * ].

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  DEVELOPMENT AND COMMERCIALISATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  4.1

  	
  DEVELOPMENT OBLIGATIONS.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.2

  	
  PRODUCT SUPPLY DURING DEVELOPMENT.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.3

  	
  REGULATORY.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.4

  	
  NOTIFICATION OF LAUNCH.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.5

  	
  COMMERCIALISATION OBLIGATIONS.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.6

  	
  REPORTS BY CORGENTECH.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.7

  	
  ADVERSE EVENTS REPORTING.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.8

  	
  TRANSFER OF MANUFACTURING TECHNOLOGY.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  INTELLECTUAL PROPERTY - INITIAL FILINGS AND
  OWNERSHIP

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  5.1

  	
  CYCLACEL
  IP.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.2

  	
  CORGENTECH IP.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.3

  	
  RESEARCH PROGRAM PATENT RIGHTS.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.4

  	
  RESEARCH PROGRAM KNOW HOW AND RESEARCH
  PROGRAM MATERIALS.

  	
   

  

 

i

 

	
  6.

  	
  INTELLECTUAL PROPERTY - LICENSES

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  6.1

  	
  RESEARCH LICENSE GRANT TO CORGENTECH.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.2

  	
  COMMERCIAL LICENSE GRANT TO CORGENTECH.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.3

  	
  LICENSE GRANT TO CYCLACEL UNDER CORGENTECH
  IP.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.4

  	
  LICENSE GRANT TO CYCLACEL UNDER RESEARCH
  PROGRAM PATENT RIGHTS.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.5

  	
  SUBLICENSING.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.6

  	
  RIGHT OF FIRST NEGOTIATION.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.7

  	
  TERMINATION OF [ * ]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  PAYMENTS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  7.1

  	
  EXECUTION
  FEE

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.2

  	
  ANNUAL
  FEES

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.3

  	
  MILESTONES

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.4

  	
  NON-CREDITABLE PAYMENTS.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.5

  	
  ROYALTIES

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.6

  	
  ROYALTY
  TERM.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.7

  	
  ROYALTY ON DERIVATIVES.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.8

  	
  ROYALTY OFFSETS.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.9

  	
  ROYALTY PAYMENT.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.10

  	
  CURRENCY CONVERSION.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.11

  	
  TAXES.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.12

  	
  RECORDS AND AUDITS.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.13

  	
  WIRE TRANSFER.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.14

  	
  INTEREST.

  	
   

  
	
   

  	
   

  	
   

  
	
  8.

  	
  INTELLECTUAL PROPERTY - PROSECUTION, MAINTENANCE AND ENFORCEMENT

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  8.1

  	
  CYCLACEL PATENT RIGHTS.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.2

  	
  RESEARCH PROGRAM PATENT RIGHTS.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.3

  	
  BACKUP
  RIGHTS.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.4

  	
  COOPERATION.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.5

  	
  PATENT ENFORCEMENT.

  	
   

  

 

ii

 

	
   

  	
  8.6

  	
  PATENT INFRINGEMENT DEFENSE.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.7

  	
  PATENT TERM EXTENSION.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.8

  	
  THIRD PARTY CHALLENGE.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  WARRANTIES AND LIABILITY

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  9.1

  	
  MUTUAL WARRANTIES.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.2

  	
  CYCLACEL WARRANTY OF IP OWNERSHIP.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.3

  	
  CYCLACEL WARRANTY OF OTHER IP.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.4

  	
  CORGENTECH WARRANTY OF IP OWNERSHIP.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.5

  	
  CYCLACEL WARRANTY OF NON-INFRINGEMENT.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.6

  	
  CYCLACEL WARRANTY OF THIRD PARTY IP.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.7

  	
  CYCLACEL WARRANTY OF IP VALIDITY.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.8

  	
  CYCLACEL WARRANTIES AND COVENANTS AS TO [ * ]AGREEMENT.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.9

  	
  NO IMPLIED WARRANTY.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.10

  	
  TRIAL SPONSORSHIP.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.11

  	
  INDEMNIFICATION OF CYCLACEL.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.12

  	
  INDEMNIFICATION OF CORGENTECH.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.13

  	
  LIMITATION OF LIABILITY.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.14

  	
  INSURANCE.

  	
   

  
	
   

  	
   

  	
   

  
	
  10.

  	
  CONFIDENTIALITY

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  10.1

  	
  CONFIDENTIALITY OBLIGATIONS.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.2

  	
  EXCEPTIONS.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.3

  	
  PERMITTED DISCLOSURES.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.4

  	
  INSOLVENCY.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.5

  	
  REMEDIES.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.6

  	
  TERM OF CONFIDENTIALITY OBLIGATIONS.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.7

  	
  PUBLICATION.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  TERM AND TERMINATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  11.1

  	
  TERM.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.2

  	
  TERMINATION.

  	
   

  

 

iii

 

	
   

  	
  11.3

  	
  TERMINATION AT WILL.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.4

  	
  CONVERSION TO NON-EXCLUSIVE LICENSE.

  	
   

  
	
   

  	
   

  	
   

  
	
  12.

  	
  CONSEQUENCES OF TERMINATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  12.1

  	
  SURVIVAL ON TERMINATION BY CORGENTECH UNDER
  CLAUSE 11.3 OR BY CYCLACEL UNDER CLAUSE 11.2.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.2

  	
  SURVIVAL ON TERMINATION BY CORGENTECH UNDER
  CLAUSE 11.2.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
  ASSIGNMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  14.

  	
  FORCE
  MAJEURE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  14.1

  	
  EFFECT OF A FORCE MAJEURE EVENT.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  14.2

  	
  EXTENDED PERIOD OF FORCE MAJEURE.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
  GOVERNING
  LAW

  	
   

  
	
   

  	
   

  	
   

  
	
  16.

  	
  JURISDICTION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  16.1

  	
  DISPUTE RESOLUTION.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.2

  	
  JURISDICTION.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
  WAIVER

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  17.1

  	
  WAIVER IN WRITING.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  17.2

  	
  NO IMPLIED WAIVER.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
  SEVERANCE OF TERMS

  	
   

  
	
   

  	
   

  	
   

  
	
  19.

  	
  ENTIRE AGREEMENT/VARIATIONS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  19.1

  	
  ENTIRE AGREEMENT.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  19.2

  	
  AMENDMENT.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  20.

  	
  NOTICES

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  20.1

  	
  METHOD OF NOTICE.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  20.2

  	
  TIMING OF NOTICE.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  20.3

  	
  SPECIAL NOTICE.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  20.4

  	
  NOT APPLICABLE TO SERVICE DOCUMENTS.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  20.5

  	
  SERVICE DOCUMENT.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  21.

  	
  COUNTERPARTS

  	
   

  
	
   

  	
   

  	
   

  
	
  22.

  	
  THIS AGREEMENT NOT TO CONSTITUTE A
  PARTNERSHIP

  	
   

  

 

iv

 

	
  23.

  	
  COSTS

  	
   

  
	
   

  	
   

  	
   

  
	
  24.

  	
  ANNOUNCEMENTS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  24.1

  	
  PUBLICITY.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  24.2

  	
  INITIAL PUBLIC ANNOUNCEMENT.

  	
   

  

 

[ * ]= CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

v

 

[ *
]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

THIS
LICENSING AGREEMENT is made the 16th of
September, 2004

 

BETWEEN:

 

(1)                                  CYCLACEL LIMITED whose principal place of business is at
Dundee Technopole, James Lindsay Place, Dundee DD1 5JJ, Scotland, U.K. (“Cyclacel”); and

 

(2)                                  CORGENTECH, INC. whose principal place of business is at 650
Gateway Boulevard, South San Francisco, California 94080, United States of
America (“Corgentech”).

 

WHEREAS:

 

(A)                              Cyclacel
is the exclusive licensee of certain rights in and to a cellular drug delivery
system comprising a [
* ]peptide sequence known under the trademark Penetratin®
and has developed and owns the rights in and to certain variant lengths of the
Penetratin peptide also known under the trademark Penetratin® and
related technology.

 

(B)                                Corgentech
wishes to use Penetratin® and/or certain of the variant length
peptides to generate conjugates of such peptides with molecules known as
transcription factor decoys, and to undertake pre-clinical and clinical
development of resulting conjugated molecules.

 

(C)                                Corgentech
now wishes to be granted, and Cyclacel is willing to grant to Corgentech, an
exclusive worldwide license for this purpose under relevant intellectual
property on the terms of this agreement.

 

IT IS NOW
AGREED AS FOLLOWS:

 

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1.                                       DEFINITIONS

 

1.1                                 In
this Agreement the following definitions shall apply:

 

1.1.1                        “Affiliate” – shall mean any company, subsidiary, partnership
or other entity which, directly or indirectly, controls, is controlled by or is
under common control with a Party. For the purpose of this definition, “control”
(including, with correlative meanings, the terms “controlled by” and “under
common control with”) as used with respect to a Party, shall mean the power,
either directly or indirectly through one or more intermediaries, to direct the
management and policies of such entity, whether by the ownership of at least
fifty percent (50%) of the voting stock of such entity, or by contract.

 

1.1.2                        “Agreement” – shall mean this document including any and all
schedules, appendices and other addenda to it as may be added and/or amended
from time to time in accordance with the provisions of this Agreement.

 

1.1.3                        “[ * ]Mechanism” –
shall mean [ * ]the
[ * ]of an
[ * ]molecule
by means of binding to such [ * ]molecule a [ * ], or derivative thereof, having a [ * ]sequence to a
segment of such [ * ]molecule,.

 

1.1.4                        “Back-Up Compound or Product” shall mean a Compound or Product that Corgentech, its Affiliate or
sublicensee designates as a back-up candidate for another Compound or Product
then in development (the “Original Compound or Product”), provided that such
back-up candidate [ *
]to the [
* ]as the Original Compound or Product and is reserved for potential
development, or is actually developed, [ * ]the development of the Original Compound or
Product.  A Back-Up Compound or Product
may include, for example and without limitation, a Compound or Product that
contains a Transcription Factor Decoy having a [ * ]than that contained in an Original
Compound or Product but that contains the

 

2

 

same Variant
Peptide as the Original Compound or Product, a Compound or Product that has a
different Variant Peptide than the Original Compound or Product but the same
Transcription Factor Decoy as an Original Compound or Product, or a Compound or
Product that has a different [ * ]but the same Compound than does an Original
Compound or Product.

 

1.1.5                         “Business Day” – shall mean working business hours (e.g.,
9.00 am to 5.00 pm) local time on a day other than a Saturday, Sunday, bank or
other public holiday in the United Kingdom or the USA.

 

1.1.6                        “[ * ]” – shall mean [ * ], having a
registered office at [
* ].

 

1.1.7                        “[ * ]Agreement” – shall mean the Patent and Know How License made between Cyclacel,
[ * ]and [ * ] dated [ * ]as varied.

 

1.1.8                        “[ * ] Patent Rights” – shall mean those
Cyclacel Patent Rights set out in Schedule 1 Part 2.

 

1.1.9                        “[ * ]Field” –shall mean (a) all [ * ]Therapeutic, Diagnostic or Prophylactic uses
except use for [ * ];
(b) all Therapeutic, Diagnostic or Prophylactic uses for [ * ]; and (c) all
Therapeutic, Diagnostic and Prophylactic uses for diseases of [ * ] origin
suggesting [ * ],
excluding [ * ]and
[ * ]
disorders and diseases and all drugs active on [ * ]. 
For the avoidance of doubt, diseases of [ * ]origin shall include but not be
limited to, specifically [ * ], [ * ]and [ * ].  Diseases of the [ * ]are not
considered as diseases of [ * ] origin.  The [ * ]Field excludes
[ * ]of
Variant Peptides as [
* ].

 

1.1.10                  “Commencement Date” – shall mean September 16th,
2004.

 

1.1.11                  “Commercialisation”, “Commercialising”,
or “Commercialise” – shall mean all
activities relating to the importation, promotion,

 

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marketing,
detail, distribution, storage, handling, offering for sale and sale of the
Product.

 

1.1.12                  “Commercially Reasonable Efforts” – shall mean efforts and
resources commonly used by the [ * ] assessed by [ * ] in [ * ]for a product owned by such a
company or to which it has rights, which product is at a [ * ] and is of [ * ], and taking
into account the [ *
]of the product.

 

1.1.13                  “Competent Authority” – shall mean any national or local
agency, authority, department, inspectorate, minister, ministry official,
parliament or public or statutory person (whether autonomous or not) of any
government of any country having jurisdiction over either any of the activities
contemplated by this Agreement or over either or both of the Parties, including
without limitation the European Commission, The Court of First Instance and the
European Court of Justice.

 

1.1.14                  “[ * ]” – shall mean, for a given Compound in a given country, a [ * ]the [ * ]or any portion
of such [ * ].

 

1.1.15                  “Compound” – shall mean a compound comprising a Licensed Variant
Peptide or a Derivative thereof, conjugated to a Transcription Factor Decoy by
means of Conjugation Technology.

 

1.1.16                  “Confidential Information” - shall mean all trade secret
and/or confidential information relating to a Party’s business affairs or
research, development or Commercialisation activities, including but not
limited to research, development and Commercialisation plans, marketing plans,
financial forecasts and projections, sales, estimates and other forecasts and
reports, supplied or otherwise made available to a Party by the other Party in
relation to the performance of this

 

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Agreement.
Without limiting the foregoing, Cyclacel IP shall be deemed Confidential
Information disclosed by Cyclacel under this Agreement, and Corgentech IP and
Research Program IP shall be deemed Confidential Information disclosed by
Corgentech under this Agreement.

 

1.1.17                  “Conjugation Technology” – shall mean any technology or
process which is useful to  conjugate
(i.e., [ * ])
a Licensed Variant Peptide or a Derivative thereof with a Transcription Factor
Decoy, but excluding any technology or process that is (i) [ * ]a
Transcription Factor Decoy, or (ii) relates to [ * ] a Transcription Factor Decoy or a
[ * ]therefor,
in each of (i) and (ii) that is not [ * ]thereof, whether such usefulness is
determined in the course of the Research Program or other research efforts by
Corgentech, its Affiliates, contractors or sublicensees relating to Licensed
Variant Peptides or a Derivative thereof, as a result of information obtained
in the course of the Research Program or such other research efforts.  For example and without limitation,
Conjugation Technology includes information regarding changes made to a portion
of a Transcription Factor Decoy that have an effect on [ * ]of a Licensed
Variant Peptide or a Derivative thereof  [ * ]such
Transcription Factor Decoy [ * ], but excludes information regarding [ * ] that [ * ]of such [ * ]of Licensed
Variant Peptide or a Derivative thereof [ * ]such molecule.

 

1.1.18                  “Control” or “Controlled”
– shall mean, with respect to any Know How or intellectual property right,
possession by a Party of the ability to grant the right to access or use, or to
grant a license or sublicense to, such Know How or intellectual property right
as provided for herein without violating the terms of any agreement or other
arrangement with any Third Party.

 

5

 

1.1.19                  “Corgentech IP” – shall mean Corgentech Patent Rights and/or
Corgentech Know How.

 

1.1.20                  “Corgentech Know How” – shall mean Know How Controlled by
Corgentech or its Affiliates at the Commencement Date that relates to any of
(1) Transcription Factor Decoys, (2) Conjugation Technology, or (3) Transcription
Factor Decoys conjugated to peptides, in case each that is necessary or useful
for the development, manufacture, regulatory filings (such as INDs or NDAs),
registration, Marketing Authorisation or Commercialisation of or for Product.

 

1.1.21                  “Corgentech Patent Rights” – shall mean Patent Rights
Controlled by Corgentech or its Affiliates Covering any aspect of Corgentech
Know How.

 

1.1.22                  “Cover” (including the variations such as “Covered”, “Coverage”
or “Covering”) – shall mean that
the making, using or Commercialisation of a given Compound or Product would
infringe a Valid Claim of a given Patent Right in the absence of a license or
other right under such Patent Right. The determination of whether a Compound or
Product is so covered by a particular Patent Right shall be made on a
country-by-country basis.

 

1.1.23                  “Cyclacel
Future IP” – shall mean Patents Rights or Know How
Controlled by Cyclacel during the term of this Agreement which are necessary or
useful for, or otherwise relate to, the delivery of Therapeutic, Diagnostic or
Prophylactic Products but excluding the Cyclacel Patent Rights.

 

1.1.24                  “Cyclacel IP” – shall mean the Cyclacel Patent Rights and
Cyclacel Know How.

 

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1.1.25                  “Cyclacel Know How” – shall mean
Know How Controlled by Cyclacel which relates to the Variant Peptides or
Compounds, and which is necessary or useful for the conduct of the Research
Program or the practice of the Cyclacel Patent Rights.  Cyclacel Know-How includes without limitation
Know-How [ * ].

 

1.1.26                  “Cyclacel Patent Rights” – shall
mean (i) the Patent Rights set out in Schedule 1 claiming Variant Peptides
which are Controlled by Cyclacel at the Commencement Date, and (ii) any other
Patent Rights which become Controlled by Cyclacel or its Affiliates during the
term of this Agreement, which claim such Variant Peptides or any improvements
to such Variant Peptides, or the use thereof as a delivery system, and which
may be necessary or useful in connection with the exercise by Corgentech of its
rights under the Patent Rights in subsection (i) pursuant to Clauses 6.1 and
6.2.  For the avoidance of doubt, the
Cyclacel Patent Rights include the [ * ](Covering, inter alia, [ * ]).

 

1.1.27                  “Derivative” – shall have the meaning set forth in Clause
7.7.  For clarity, Transcription Factor
Decoys shall not be Derivatives of Licensed Variant Peptides, and Licensed
Variant Peptides shall not be Derivatives of Transcription Factor Decoys, and
Compounds shall not be Derivatives of either Licensed Variant Peptides or
Transcription Factor Decoys.

 

1.1.28                  “Development Program” – shall mean a program of work to be
conducted and managed by Corgentech, its Affiliates or sublicensees hereunder
for the pre-clinical and clinical development of a Compound leading to
Marketing Authorisation and Launch of a Product containing the same in [ * ].  An outline of the first part of the
Development Program is set out in Schedule 3, which can be

 

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modified by Corgentech
from time to time under the provisions of Clause 2.

 

1.1.29                  “Diagnostic” – shall mean any and all goods,
services and other activities directed toward (i) the identification, diagnosis
or prognostication of any condition, disease or state, including without
limitation detecting or confirming the presence or absence of a particular
disease, condition, or state using a particular compound or product, (ii)
identifying [ * ]particular
disease, condition or state using a particular compound or product, (iii)
predicting the [ * ]particular
Therapeutic or Prophylactic product using a particular compound or product, or
(iv) [ * ]
of a particular compound or product in the human body.

 

1.1.30                  “Disclosing Party” – shall mean the Party which discloses or
otherwise provides Confidential Information to the other Party pursuant to this
Agreement.

 

1.1.31                  “Documents” – shall mean reports, research notes, charts,
graphs, comments, computations, analyses, recordings, photographs, paper,
notebooks, books, files, ledgers, records, tapes, discs, diskettes, CD-ROM,
computer programs and documents thereof, computer information storage means,
samples of material, other graphic or written data and any other media on which
Know How can be permanently stored.

 

1.1.32                  “Exclusivity Period” – shall mean the period of time during
which Corgentech has exclusive rights to [ * ]of Licensed Variant Peptides to deliver all
Transcription Factor Decoys (subject to Clause 3), which shall commence upon
the Commencement Date and extend for so long as Corgentech, its Affiliates,
subcontractors or sublicensees

 

8

 

are [ * ]of the
Research Program, as Corgentech so notifies Cyclacel  [ * ].

 

1.1.33                  “FDA” – shall mean the United States Food and Drug
Administration or any successor agency thereto.

 

1.1.34                  “Field” – shall mean all Therapeutic, Prophylactic and
Diagnostic uses in humans and animals. 
The Field excludes [ * ]of Variant Peptides [ * ].

 

1.1.35                  “Force Majeure” – shall mean in relation to either Party, any
event or circumstance which is beyond the reasonable control of that Party
which results in or causes the failure of that Party to perform any or all of
its obligations under this Agreement, including without limitation acts of God,
lightning, fire, storm, flood, earthquake, accumulation of snow or ice, lack of
water arising from weather or environmental problems, strike, lockout or other
industrial or student disturbance, act of the public enemy, war declared or
undeclared, threat of war, terrorist act, blockade, revolution, riot,
insurrection, civil commotion, public demonstration, sabotage, act of
vandalism, explosion, fault or failure of plant or machinery (which could not
have reasonably been prevented by maintenance practices), or Legal Requirement
governing either Party, provided that lack of funds shall not be interpreted as
a cause beyond the reasonable control of that Party.

 

1.1.36                  “FTE” means the equivalent of the work of
one (1) employee of Corgentech, its Affiliates, permitted sublicensees or
subcontractors on a full time basis for one (1) Year (consisting of at least a
total of   [ * ]hours per Year) in the performance
of activities under the Research Program. 
Any person who devotes less than [ * ]hours per 

 

9

 

Year shall be
treated as an FTE on a pro-rata basis upon the actual number of hours worked
divided by [ * ].

 

1.1.37                  “GBP” shall mean Great Britain pounds.

 

1.1.38                  “Gene Therapy” shall mean the introduction
of a gene into a cell or tissue, resulting in [ * ] in such cell or tissue.

 

1.1.39                  “Good Clinical Practice” or “GCP”
– shall mean good clinical practice as set out in, as applicable:

 

(a)                                  Guidelines
for Good Clinical Practice for Trials on Medicinal Products in the European
Community; or

 

(b)                                 US
Code of Federal Regulations Title 21, Parts 50 (Protection of Human Subjects),
56 (Institutional Review Boards) and 312 (Investigational New Drug
Applications), as may be amended from time to time; or

 

(c)                                  the
Declaration of Helsinki, as last amended at the 52nd World Medical
Association in October 2000, and any further amendments thereto; or

 

(d)                                 the
equivalent law or regulation in any Major Market.

 

1.1.40                  “Good Laboratory Practice” or “GLP”
– shall mean good laboratory practice as set out in, as applicable:

 

(a)                                  Rules
Governing Medicinal Products in the European Community Vol III, ISBN 92.825
9619-2 (ex OECD principles of GLP); or

 

(b)                                 US
Code of Federal Regulations, Title 21, Part 58 (Good Laboratory Practice for
Nonclinical Laboratory Studies); or

 

10

 

(c)                                  the
equivalent law or regulation in any Major Market.

 

1.1.41                  “Good Manufacturing Practice” or “GMP”
– shall mean good manufacturing practices in accordance with, as applicable:

 

(a)                                  EC
Directive 91/456/EEC; or

 

(b)                                 the
current principles and guidelines of good manufacturing practice for medicinal
products for human use and “substantial conformity with good manufacturing
requirements” (as such phrase is used in Section 802(f)(1) of the Federal Food,
Drug and Cosmetic Act, as such Act may be amended from time to time); or

 

(c)                                  US
Code of Federal Regulations, Title 21, Part 210 (Current Good Manufacturing
Practice in Manufacturing, Processing, Packaging or Holding of Drugs; General),
Part 211 (Current Good Manufacturing Practice for Finished Pharmaceuticals); or

 

(d)                                 the
equivalent law or regulation in any Major Market.

 

1.1.42                  “IND” - an investigational new drug application filed with
the FDA prior to beginning clinical trials in humans, or any comparable
application filed with the Regulatory Authority of a country other than the
United States prior to beginning trials in humans in that country.

 

1.1.43                  “Insolvency Event” - in relation to either Party, means any
one of the following (to the extent applicable to a Party):

 

(a)                                  a
notice shall have been issued to convene a meeting for the purpose of passing a
resolution to wind up that Party, or such a resolution shall have been passed
other than a resolution for

 

11

 

the solvent
reconstruction or reorganisation of that Party or for the purpose of inclusion
of any part of the share capital of that Party in the Official List of the
London Stock Exchange or in the list of the American Stock Exchange or
quotation of the same on the National Association of Securities Dealers
Automated Quotation System or any other international stock exchange; or

 

(b)                                 a
resolution shall have been passed by that Party’s directors to seek a winding
up or an administration order or a petition for a winding up or administration
order shall have been presented against that Party which, in the case of a
petition presented against a Party, shall not have been contested within [ * ]of having been
lodged or such an order shall have been made and shall have been dismissed
within [ * ]thereafter;
or

 

(c)                                  a
receiver, administrative receiver, receiver and manager, interim receiver,
custodian, sequestrator or similar officer is appointed in respect of that
Party or over a substantial part of its assets or any Third Party takes steps
to appoint such an officer in respect of that Party or an encumbrancer takes
steps to enforce or enforces its security which shall not have been dismissed
by a court of competent jurisdiction within [ * ] thereafter; or

 

(d)                                 a
proposal for a voluntary arrangement shall have been made in relation to that
Party under Part I Insolvency Act 1986; or

 

(e)                                  a
step or event shall have been taken or arisen outside the United Kingdom which
is similar or analogous to any of the steps or events listed at (a) to (d)
above including in the case

 

12

 

of Corgentech
the filing of a petition under the US Bankruptcy Code (including a filing under
Chapter 11 proceedings), which in the case of a filing made against a Party,
shall not have been disputed within [ * ]of having been lodged or such an order shall
have been made and dismissed within [ * ]thereafter; or

 

(f)                                    that
Party makes any general assignment, composition or arrangement with or for the
benefit of all or some of that Party’s creditors or the Party submits to any
type of voluntary arrangement; or

 

(g)                                 where
that Party is resident in the United Kingdom it is deemed to be unable to pay
its debts within the meaning of Section 123 Insolvency Act 1986, or where that
Party is resident in the United States it is unable to pay its debts within the
meaning of the equivalent legislation.

 

1.1.44                  “Know How” – shall mean technical and other information which
is not in the public domain, including without limitation information
comprising or relating to concepts, discoveries, data, designs, formulae,
ideas, inventions, methods, models, assays, research plans, biological,
chemical or physical materials and other Materials, procedures, designs for
experiments and tests and results of experimentation and testing (including
results of research or development), processes (including manufacturing
processes, specifications and techniques), laboratory records, chemical,
physical, biological, pharmacological, toxicological, clinical, analytical and
quality control data, trial data, case report forms, data analyses, reports,
manufacturing data or summaries and information contained in submissions to and
information from ethical committees and regulatory authorities.  Know How includes Documents

 

13

 

containing
Know How, as well as trade secrets, copyright, database, design rights or
similar intellectual property rights (other than Patent Rights) under law
protecting such Know How.  The fact that
an item is known to the public shall not be taken to preclude the possibility
that a compilation including the item, and/or a development relating to the
item, is not known to the public.

 

1.1.45                  “Launch” – shall mean the first invoiced commercial sale by
Corgentech, its Affiliates, agents or sublicensees in any country of Product to
a Third Party end user after the grant of required Marketing Authorisation has
been granted by the appropriate Regulatory Authority.

 

1.1.46                  “Legal Requirement” – shall mean any present or future law,
regulation, directive or rule of any Competent Authority or Regulatory
Authority, including without limitation any amendment, extension or replacement
thereof which is from time to time in force.

 

1.1.47                  “Licensed Variant Peptides” shall mean all the Variant
Peptides.

 

1.1.48                  “Major European Markets” – shall mean [ * ].

 

1.1.49                  “Major Markets” – shall mean [ * ].

 

1.1.50                  “Marketing Authorisation” – shall mean any approval required from
a Regulatory Authority to market and sell a Product in any country including
without limitation any necessary pricing or reimbursement approval.

 

1.1.51                  “Material” – shall mean any chemical or biological substance other than
Compounds, including any:-

 

(a)                                  organic
or inorganic element;

 

14

 

(b)                                 nucleotide
or nucleotide sequence including DNA and RNA sequences;

 

(c)                                  vector
or construct, including plasmids, phages or viruses;

 

(d)                                 protein
including any peptide or amino acid sequence, enzyme, antibody or protein
conferring targeting properties and any fragment of a protein or a peptide
enzyme or antibody;

 

(e)                                  assay
or reagent;

 

(f)                                    any
other genetic or biological material or micro-organism; or

 

(g)                                 physical
materials useful for derivation of molecular structures including NMR spectra,
X Ray diffraction patterns and other primary experimental information,
assignments and other calculations required for determination of the structure,
and co-ordinates of the derived molecular structure.

 

1.1.52                  “NDA” - a new drug application or a biologic license
application filed by Corgentech with the FDA to obtain Marketing Authorisation
for a pharmaceutical or biologic product in the USA, or any comparable
application filed with the Regulatory Authorities in or for a country or group
of countries other than the USA, to obtain Marketing Authorisation for a
pharmaceutical or biologic product in or for that country or within that group
of countries.

 

1.1.53                  “Net Sales” – shall mean the amount billed
by Corgentech, an Affiliate or any sublicensee for sales of a Product to a
Third Party less:

 

(a)                                  discounts
(including quantity and cash discounts), retroactive price reductions,
charge-back payments and rebates granted to

 

15

 

managed health
care organizations or to federal, state and local governments, their agencies,
and purchasers and reimbursers or to trade customers; provided, that where any
such discounts, reductions, payments or rebates for the Product are based on
sales to the customer of a bundled set of products in which the Product is
included, the applicable discount, reduction, payment or rebate for such
Product  in such bundled arrangement
shall be based on [ *
](and if [
* ], then
based on [ * ]

 

(b)                                 credits
or allowances actually granted upon claims, damaged goods, rejections or
returns of such Product, including Product returned in connection with recalls
or withdrawals;

 

(c)                                  freight
out, postage, shipping and insurance charges for delivery of Product;

 

(d)                                 taxes
or duties levied on, absorbed or otherwise imposed on sale of such Product,
including without limitation value-added taxes, or other governmental charges
otherwise imposed upon the billed amount, as adjusted for rebates and refunds,
to the extent not paid by the Third Party;

 

(e)                                  amounts
repaid, credited or written off by reason of uncollectible debt; and

 

(f)                                    amounts
written off on account of factoring of receivables to the extent consistent
with Corgentech’s business practices for the majority of its pharmaceutical
products, as determined on a country-by-country basis (but not in any event in
any Quarter to exceed [
* ]of the amount billed by Corgentech, an Affiliate or any
sublicensee).

 

16

 

In the event a Party is receiving royalties
under this Agreement from any Product sold in the Royalty Territory in the form
of a combination product containing one or more active ingredients in addition
to the Compound (which may be either combined in a single formulation or
bundled with separate formulations but sold as one product), Net Sales for such
combination product will be calculated by [ * ].  If,
on a country-by-country basis, the Product or the other active ingredient or
ingredients in the combination are [ * ], Net Sales for the purpose of determining
royalties of the combination product shall be [ * ]. 
Net Sales shall be determined in a manner consistent for all products
sold by Corgentech and in accordance with United States GAAP.  If Corgentech, its Affiliates or sublicensees
sell a Product other than [ * ], such sale shall be deemed to constitute a sale [ * ]of such
Product in the country in which the sale occurs, or, if that [ * ], then it
shall be deemed to constitute a sale [ * ]for such Product in such country. For
clarity, Net Sales shall exclude any consideration that Corgentech receives for
Products provided as promotional samples, or as preclinical or clinical
supplies of Products.

 

1.1.54                  “Party or Parties” – shall mean Cyclacel and/or Corgentech.

 

1.1.55                  “Patent Rights” – shall mean all patent applications and
issued patents, utility certificates, improvement patents and models and
certificates of addition and all foreign counterparts of them in all countries,
including without limitation any divisional applications and patents,
refilings, renewals, re-examinations, continuations, continuations-in-part,
provisionals, nonprovisionals, patents of addition, extensions, (including
patent term extensions,) reissues, substitutions, confirmations,
re-examinations, registrations, revalidations, pipeline and administrative
protections and additions,

 

17

 

and any
equivalents of the foregoing in any and all countries, as well as any
supplementary protection certificates and equivalent protection rights in
respect of any of them.

 

1.1.56                  “Phase I Clinical Trial” – shall mean small scale human
clinical trial of a pharmaceutical product to be conducted by or on behalf of
Corgentech its Affiliates or sublicensees normally conducted in healthy
volunteers or patients with the aim of establishing the pharmacokinetic,
pharmacodynamic and early safety and efficacy profile.

 

1.1.57                  “Phase II Clinical Trial” – shall mean an initial human
clinical trial of a pharmaceutical product that is conducted by or on behalf of
Corgentech its Affiliates or sublicensees and that is required for Marketing
Authorisation, and in which a product is tested in a limited number of either
sick or healthy patients for the purpose of establishing dose ranging and/or
first indication of efficacy, and/or to examine further aspects of safety, of
such product.

 

1.1.58                  “Phase III Clinical Trials” – shall mean large scale, pivotal
multicentre, human clinical trials of a pharmaceutical product conducted by or
on behalf of Corgentech its Affiliates or sublicensees in a sufficient number
of patients to establish safety or efficacy of such product in the particular
claim and indication tested and attended to support Marketing Authorisation.

 

1.1.59                  “Product(s)” – shall mean a pharmaceutical product in which a
Compound is an ingredient.

 

1.1.60                  “Prophylaxis” – shall mean the means of preventing a disease,
condition, disorder or infection by administering a product with preventative
efficacy to persons who have not been established as

 

18

 

having the
disease, condition, disorder or infection prior to such administration of a
product.  “Prophylactic” shall be construed accordingly.

 

1.1.61                  “Quarter” – shall mean each period of three months ending on
31 March, 30 June, 30 September or 31 December and “Quarterly” shall be
construed accordingly.

 

1.1.62                  “Recipient Party” – shall mean the Party which receives
Confidential Information from the other Party pursuant to this Agreement.

 

1.1.63                  “Regulatory Authority” – shall mean any national,
supranational (e.g., the European Commission, the Council of the European
Union, the European Agency for the Evaluation of Medicinal Products), regional,
state or local regulatory agency, department, bureau, commission, council or
other governmental entity, including without limitation the FDA, in a given
jurisdiction that is involved in the granting of Marketing Authorisation for
the Product.

 

1.1.64                  “[ * ]” shall have the meaning provided in
Clause 2.9.5.

 

1.1.65                  “[ * ]” shall have the meaning provided in
Clause 2.9.5.

 

1.1.66                  “[ * ]Transcription Factor Decoy” shall have
the meaning provided in Clause 2.9.5.

 

1.1.67                  “Research Program” – shall mean the program of research to be
conducted by Corgentech its Affiliates or sublicensees, an outline plan for
which is set out in Schedule 2 and the objective of which is to identify and
optimise Compounds so that they are suitable for entry into a Development Program.  The outline can be modified by Corgentech
from time to time under the provisions of Clause 2. For

 

19

 

the avoidance
of doubt it is declared and agreed that the Research Program does not include
any Development Program activities, and that the Research Program shall in any
event exclude the conduct of any [ * ]of Product. 
The Research Program may be conducted in parallel with the Development
Program.

 

1.1.68                  “Research Program IP” – shall mean Research Program Patent
Rights, Research Program Know How and Research Program Materials.

 

1.1.69                  “Research Program Know How” – shall mean Know How conceived
and/or generated by or on behalf of Corgentech, its Affiliates or sublicensees
or by Cyclacel under the Research Program (solely or jointly) including, but
without limitation, any [ * ]so conceived and/or generated.

 

1.1.70                  “Research Program Materials” – shall mean Compounds and any
other Materials conceived and/or generated by or on behalf of Corgentech, its Affiliates
or sublicensees or by Cyclacel under the Research Program (solely or jointly)
including, but without limitation, any Materials that are included [ * ]that are so
conceived and/or generated.

 

1.1.71                  “Research Program Patent Rights” – shall mean those
Corgentech Patent Rights claiming inventions conceived and/or reduced to
practice by or on behalf of Corgentech, its Affiliates or sublicensees or by
Cyclacel, under the Research Program (solely or jointly) (including but not
limited to Patent Rights Covering [ * ], [ * ], [ * ]and any such [ * ]).

 

1.1.72                  “Steering Committee” or “SC” - the
committee established pursuant to Clause 2.1.

 

20

 

1.1.73                  “Therapy” – shall mean the means of treating a disease or infection
by administering a product to persons who have been established as having the
disease or infection prior to such administration of a product, whether or not
presently expressing symptoms at the time of administration.  “Therapeutic”
shall be construed accordingly.

 

1.1.74                  “Third Party” – shall mean any entity or
person other than a Party or an Affiliate of a Party.

 

1.1.75                  “Transcription Factor Decoys” - [ * ]molecules [ * ]and thereby [ * ](thereby [ * ]and that can
be shown to have such a mechanism of action [ * ].  For
the avoidance of doubt, Transcription Factor Decoys do not include molecules
acting via [ * ],
[ * ]or [ * ].  For clarity, [ * ]of [ * ]molecules shall also be
Transcription Factor Decoys as long as such molecules meet the foregoing
criteria.

 

1.1.76                  “USA” – shall mean the United States of
America, its territories and possessions.

 

1.1.77                  “USD” – shall mean United States dollars.

 

1.1.78                  “Valid Claim” – shall mean either:

 

(a)                                  a
claim of an issued and unexpired patent included within Patent Rights, which
has not been held permanently revoked, unenforceable or invalid by a decision
of a court or other governmental agency of competent jurisdiction, which is
unappealable or un-appealed within the time allowed for appeal, and which has not
been admitted to be invalid or unenforceable through reissue or disclaimer or
otherwise; or

 

(b)                                 a
claim of a pending patent application included within Patent Rights which claim
was filed and has been prosecuted in

 

21

 

good faith for
not more than [ * ](but
with such [ * ]period
to  [ * ]and has not been abandoned or finally
disallowed without the possibility of appeal or refiling of the application.

 

1.1.79                  “Variant
Peptide” – shall mean a [ * ]peptide sequence known as
Penetratin® and the variants of Penetratin® peptide [ * ]developed    [ * ]which are Covered by the Cyclacel Patent
Rights.

 

1.1.80                  “Year” – shall mean any period of twelve (12) months
commencing on 1 January and ending on 31 December.

 

2.                                       MANAGEMENT
OF THE RESEARCH PROGRAM

 

2.1                                 STEERING COMMITTEE. With effect from the Commencement Date the Parties shall establish
and run the Steering Committee (“SC”)
as follows:-

 

2.1.1                        The SC shall
comprise [ * ]persons
(“Members”) and Corgentech and Cyclacel
respectively shall be entitled to appoint [ * ]of such Members, to remove any Member so
appointed by it and to appoint any person to fill a vacancy arising from the
removal or retirement of such Member appointed by it.  The initial Members shall be as follows:

 

	
  Corgentech Members

  	
   

  	
  Cyclacel Members

  
	
   

  	
   

  	
   

  
	
  [ * ]

  	
   

  	
   

  

 

Corgentech and
Cyclacel respectively shall each notify the other of any change in the
identities of their Members from time to time. 
Both sides shall use reasonable endeavours to keep an appropriate level
of continuity in representation.  Members
may be represented at any meeting by another person designated by the absent
Member.

 

22

 

Each meeting
shall be chaired by a Corgentech Member (the “SC
Chairperson”).

 

2.1.2                        The quorum for
meetings of the SC shall be [ * ]Members provided that there is at least [ * ]Member from
each of Corgentech and Cyclacel present. 
Discussions of the SC with respect to the Research Program shall be
recorded in minutes drafted by or upon behalf of the SC Chairperson, who shall
send a copy of the minutes of each SC meeting to both Parties.

 

2.1.3                        During the
first [ * ]following
the Commencement Date, the SC shall convene on a quarterly basis, or more
frequently, if deemed necessary. 
Thereafter, the SC shall meet on a yearly basis, or more frequently, if
deemed necessary by the Members. The first meeting of the SC shall be held
within [ * ]of
the Commencement Date.

 

2.1.4                        Unless the
Parties agree otherwise, SC meetings shall be held by teleconference or
videoconference. If not held by teleconference or videoconference the venue for
meetings shall alternate between the premises of the Parties.  Each Party shall be responsible for its own
expenses including travel and accommodation costs incurred in connection with
SC meetings.

 

2.1.5                        The SC shall
not have the right or power to make decisions with respect to, or control or
manage, the Research Program, the Development Program or Commercialisation,
which decisions, control and management activities shall be the sole
responsibility of Corgentech.  The SC
shall be a liaison and not a decision making body and shall provide a forum
through which the Parties can liaise and Cyclacel can raise questions
concerning the Research Program, and request updates on progress toward
achieving milestones under the outline of the Development Program and Launch of
any Product.

 

23

 

Further, the
SC will be the forum through which (i) [ * ], including without limitation by supplying
Cyclacel with [ * ];
(ii) Corgentech will report progress to Cyclacel in relation to [ * ], (iii) the
Parties will [ * ]under
the Research Program in relation to the research of the Licensed Variant
Peptides and the generation of Compounds, (iv) the Parties will [ * ]the outline of
the Research Program and Development Program, and (v) the Parties will
cooperate to enable efficient technology transfer [ * ].

 

2.1.6                        With advance
notice to the other Party, and subject to such other Party’s prior written
consent (which may be withheld in such other Party’s sole discretion), a Party
may invite persons with relevant expertise whose input might advance the
Research Program to attend and address meetings of the SC, provided that such persons
are bound by obligations of confidentiality. 
For the avoidance of doubt it is agreed that any such mutually
acceptable persons shall not be Members and shall not have a right to
participate in any discussions of the SC other than those to which the other
Party has given its consent for such participation.

 

2.1.7                        The SC
Chairperson shall keep accurate minutes of SC discussions.  Draft minutes shall be delivered to Cyclacel
by the SC Chairperson within [ * ]after any meeting.  Draft minutes shall be issued in final form
only with the approval and agreement of both Parties. The minutes shall not
constitute an amendment to the Agreement.

 

2.1.8                        Corgentech
shall promptly notify SC of any [ * ]

 

2.1.9                        The SC shall
perform such other functions and responsibilities as are given to it under the
express provisions of this Agreement, including without limitation, its
responsibilities with respect to the supply of Variant Peptides as outlined in
Schedule 4, but shall have no

 

24

 

authority to
amend or waive compliance with any terms of this Agreement.

 

2.2                                 DISCLOSURE BY CYCLACEL.  Cyclacel shall disclose and
make available to Corgentech the Cyclacel Know How.  Additionally, from time to time (but at least
[ * ]), Cyclacel
shall disclose and make available to Corgentech improvements included in
Cyclacel Patent Rights (if any) together with associated Cyclacel Know How.

 

2.3                                 RESEARCH PROGRAM AND DEVELOPMENT PROGRAM.  The outline of the Research
Program shall contain information of the nature set out in Schedule 2 and
within [ * ]of
the Commencement Date, Corgentech shall supply to Cyclacel a revised outline
Research Programme covering at least the first [ * ]of the Research Program and
including [ * ]for
the conduct of the Research Program. Thereafter, within [ * ], during the
period that the Research Program is being carried out by Corgentech, Corgentech
shall supply to Cyclacel a copy or an updated copy of the outline for the [ * ]the Research
Program.  If at any time Corgentech
wishes to vary the outline, it may do so, in its discretion.  Promptly following any decision of
Corgentech, its Affiliates or sublicensees to commence a Development Program in
relation to any Product, and promptly following [ * ]thereafter, Corgentech shall
supply to Cyclacel an outline of the [ * ]Corgentech expects to [ * ]under the
Development Program, the [ * ]Corgentech [ * ] under the Development Program, and
Corgentech’s [ * ]Corgentech
[ * ].  If at any time Corgentech wishes to vary the
outline, it may do so in its discretion. 
No later than [
* ]prior to each SC meeting, Corgentech will provide Cyclacel with
written copies of all materials they intend to present at the SC meeting, which
shall include a [ * ]of
the Research Program and/or Development Program with respect to [ * ]thereunder
since the previous meeting.

 

2.4                                 DISCLOSURE BY CORGENTECH.  Following the Commencement Date and from time
to time during the term of the Agreement (but at [ * ]),

 

25

 

Corgentech
shall disclose and make available to Cyclacel all Corgentech IP licensed to
Cyclacel under Clause 6.3, if any, and all Research Program IP licensed to
Cyclacel under Clause 6.4, if any. 
Additionally, Corgentech shall report to the SC [ * ]the Research
Program by Corgentech, its Affiliates and sublicensees, collectively, each Year
for the purpose of determining whether the [ * ].  Upon
such [ * ],
Corgentech shall provide to Cyclacel [ * ]forming part of [ * ]that Corgentech, its Affiliates or
sublicensees are then developing under a Development Program or Commercializing
that shall constitute those [ * ]for which the licenses granted to Corgentech pursuant to
Clause 6.2 [ * ],
as provided in Clause 6.2.  Corgentech
shall [ * ]from
time to time.

 

2.5                                 COMMERCIALLY REASONABLE EFFORTS.  Corgentech shall use its Commercially
Reasonable Efforts to carry out the Research Program until it [ * ], as
determined by [ * ].

 

2.6                                 CORGENTECH OBLIGATIONS.  Corgentech shall carry out or shall procure
that the Research Program and Development Program are carried out in the
following manner:-

 

2.6.1                        in accordance
with GLP, GCP and GMP (in each case where necessary and applicable) and shall
be responsible for obtaining all necessary approvals therefor from any
Regulatory Authority.  Any animals
involved shall be provided humane care and treatment in accordance with current
generally accepted veterinary practice; and

 

2.6.2                        keeping or
causing to be kept written laboratory notebooks and other records and reports
of the progress in sufficient detail and in good scientific manner for purposes
including patent purposes, in accordance with [ * ]. 
Such notebooks and other records must properly reflect all work done on
the Research Program and/or Development Program and the results achieved
thereunder; however, Corgentech shall have no obligation to disclose or make
available to

 

26

 

Cyclacel any
such records and reports unless otherwise expressly provided herein.

 

2.7                                 SUBCONTRACTING AND SUBLICENSING UNDER THE RESEARCH PROGRAM.

 

2.7.1                        Corgentech
shall have the right to sub-contract the whole of or part of the Research
Program. The appointment of any sub-contractor shall be on the following terms:

 

(a)                                  as
between the Parties, Cyclacel shall have no obligation to pay the
sub-contractor for work carried out by the sub-contractor;

 

(b)                                 that
as between Corgentech and the sub-contractor, all [ * ]shall be [ * ]; and

 

(c)                                  that
the sub-contractor shall be obligated in terms substantially the same as Clause
10 of this Agreement (Confidentiality).

 

2.7.2                        Corgentech may
grant sublicenses under the rights granted to it pursuant to Clause 6.1 to
Third Parties with which Corgentech will collaborate for the purpose of such
Third Parties performing activities under the Research Program, provided that
(a) Corgentech, its Affiliate or subcontractor (subject to Clause 2.7.1) [ * ] and [ * ], (b) such
Third Party uses such Compounds under the Research Program [ * ], and (c)
unless Cyclacel otherwise agrees (which agreement shall not be unreasonably
withheld), Corgentech does not [ * ]such sublicensee [ * ].

 

2.8                                 SUPPLY OF VARIANT PEPTIDES.  During the conduct of the Research Program,
Cyclacel shall supply to Corgentech quantities of the Variant

 

27

 

Peptides as
specified in the Research Program for the conduct of [ * ]studies thereunder.  The principle terms governing such supply
obligation are set out in Schedule 4.

 

2.9                                 [ * ]. 
During the period of the Research Program and the Development Program,
neither Corgentech nor any of its Affiliates shall [ * ], [ * ]or [ * ]any [ * ]in connection with [ * ], other than
the [ * ],
except as follows:

 

2.9.1                        in relation to
a Transcription Factor Decoy which is the [ * ]the [ * ]development and/or Commercialization of any
Therapeutic, Prophylactic or Diagnostic product for use in humans or animals,
or is the [ * ]which
such [ * ]development
and/or commercialization of any Therapeutic, Prophylactic or Diagnostic product
for use in humans or animals, without [ * ]; in either such case, Corgentech or its
Affiliates, or in the case of [ * ]shall [ * ] in connection with such Transcription Factor
Decoy, at the discretion of the applicable [ * ]or such [ * ], as applicable, although Corgentech will in
each such case   [ * ]for [ * ]of such
Transcription Factor Decoy, and inform Cyclacel in the subsequent SC meeting
that such [ * ]does
not [ * ]with
such Transcription Factor Decoys;

 

2.9.2                        in relation to
a Transcription Factor Decoy [ * ]Corgentech or its Affiliates that is [ * ]or [ * ]as each is
described in [ * ],
Corgentech shall be [
* ]after [
* ]Corgentech (with [ * ]being [ * ]) that [ * ]are    [ * ]the delivery
of such Transcription Factor Decoy;

 

2.9.3                        in relation to
a Transcription Factor Decoy [ * ]that such [ * ] the delivery [ * ]of or [ * ]for such Transcription Factor
Decoy, in which case [
* ]shall be [ * ]for [ * ]for which it [ * ], provided that Corgentech [ * ]to Cyclacel.

 

2.9.4                        The provisions of Clauses 2.9.1, 2.9.2 and 2.9.3 shall not be
construed to limit the provisions of Clause 2.5.

 

28

 

2.9.5                        Any
Transcription Factor Decoy for which Corgentech, its Affiliates, its
collaborative partners or sublicensees determine that [ * ] pursuant to
Clauses 2.9.1 or 2.9.2 and for which any of them [ * ] in this Clause 2.9 shall be [ * ]Any [ * ]or [ * ]a [ * ]for which [ * ] determine
that Licensed Variant Peptides [ * ]pursuant to Clause 2.9.3 and for which [ * ]in this
Clause 2.9 shall be [ * ]or [ * ]for [ * ], as applicable.

 

3.                                       [ * ]OF VARIANT
PEPTIDES [ * ];
[ * ]

 

3.1                                 AVAILABILITY.  Cyclacel grants to
Corgentech the licenses set forth in Clauses 6.1 and 6.2 in relation to Variant
Peptides for use under such Clauses with (i) all Transcription Factor Decoys [ * ]Transcription
Factor Decoys, (ii) [
* ]any particular Transcription Factor Decoy [ * ] Transcription
Factor Decoy) that are [ * ]such Transcription Factor Decoy, and (iii) [ * ]any
Transcription Factor Decoy (  [ * ]Transcription
Factor Decoy) that are [ * ]such Transcription Factor Decoy.  Following any such [ * ] Transcription Factor Decoy, [ * ]or [ * ]in accordance
with Clause 2.9, Cyclacel [ * ]the Variant Peptides with [ * ]Transcription
Factor Decoys, or with a given Transcription Factor Decoy that [ * ]Transcription
Factor Decoy solely for    [ * ] or [ * ], provided
that the foregoing shall not be deemed to confer to Cyclacel [ * ].

 

3.2                                 [ * ]OF [ * ], [ * ]AND [
* ].  If at any time subsequent
to its designation under Clause 2.9, Corgentech wishes to use [ * ]Transcription Factor Decoy, or to
research, Develop or Commercialize a Transcription Factor Decoy that is [ * ]Transcription Factor Decoy [ * ]or [
* ]pursuant to the Research Program, Corgentech shall give written
notice to Cyclacel identifying the [ * ]Transcription
Factor Decoy, [ * ]or [ * ]in question.  Cyclacel shall within [ * ]of such notice give written notice to
Corgentech whether or not Cyclacel       [ * ]with respect to [ * ]Transcription Factor Decoy, [ * ]or [
* ]in [ * ]with [ * ]pursuant to a [ * ], [
* ]or [ * ].  In the event that Cyclacel gives notice that [ * ]for the [ * ]Transcription
Factor Decoy, [ * ]or [ * ]under    [ * ],
[ * ]or

 

29

 

[
* ], it shall no longer be deemed to
be a [ * ]Transcription Factor
Decoy, [ * ]or [ * ], as applicable, and shall [ * ]for Corgentech to    [ * ]and
otherwise under this Agreement with respect thereto, and the provisions of
Clause 3.1 shall not thereafter apply with respect thereto.

 

4.                                       DEVELOPMENT
AND COMMERCIALISATION

 

4.1                                 DEVELOPMENT OBLIGATIONS.  Corgentech shall use Commercially Reasonable
Efforts to undertake the development and Commercialisation of [ * ]. 
It shall be a material breach of this Agreement by Corgentech if it, its
Affiliates or sublicensees have not [ * ]with
a Product in a [ * ]Clinical Trial
prior to the expiry of [ * ]following
the Commencement Date, subject always to Cyclacel having met its obligations
under Clause 2.8 (it being understood that such [ * ]time period shall be extended by an amount of time equal
to Cyclacel’s cumulative delays in providing materials to Corgentech pursuant
to Clause 2.8).

 

4.2                                 PRODUCT SUPPLY DURING DEVELOPMENT.  During the conduct of the Development Program,
Corgentech shall be responsible at Corgentech’s cost and expense for supplying
all quantities of Product required for the purposes of conducting any human or
other studies within the Development Program.

 

4.3                                 REGULATORY.  As between the Parties, Corgentech shall be
responsible for the preparation, submission and prosecution of all INDs, NDAs
and other Regulatory Authority filings and applications required to obtain all
necessary Marketing Authorisations and pricing approvals to Commercialise
Product in each country in which Corgentech, its Affiliates, agents or
sublicensees will sell Product. 
Corgentech, its Affiliates, agents or sublicensees shall be the owner
and party of record for all such filings, applications and approvals.  Corgentech shall be responsible for its costs
associated with preparation, submission and prosecution of all filings and
applications required for the

 

30

 

foregoing.  Corgentech shall promptly inform Cyclacel in
writing of the occurrence of each IND or NDA filing made or Marketing
Authorisation obtained by Corgentech its Affiliates or sublicensees in each
Major Market in relation to Product.

 

4.4                                 NOTIFICATION OF LAUNCH.  Corgentech shall promptly inform Cyclacel in
writing of the occurrence of the Launch of each Product in each Major Market.

 

4.5                                 COMMERCIALISATION OBLIGATIONS.  All decisions relating to the
Commercialisation of the Product shall be in the sole discretion of
Corgentech.  Corgentech shall either
itself or through its Affiliate, agents or sublicensees and using Commercially
Reasonable Efforts Commercialise Product(s) in [ * ], provided that Corgentech, its Affiliates, agents or
sublicensees are not required to market, distribute and sell the Products [ * ]in order to fulfill this obligation
and that with the exception of the [ * ],
Corgentech, its Affiliates, agents or sublicensees may reasonably decide not to
market and sell the Products in [ * ]without
being in breach of this diligence obligation.

 

4.6                                 REPORTS BY CORGENTECH.  [ * ]following
the commencement of [ * ]Clinical
Trials in relation to a Compound, Corgentech shall provide Cyclacel with a
written summary report which shall describe [
* ]to Launch the corresponding Product.  Such report shall be updated and supplied to
Cyclacel [ * ]thereafter during
the term of this Agreement.  In addition
to such reports, Corgentech shall also provide to Cyclacel on [ * ]basis for [ * ]following Launch of a particular Product a summary of
projected sales by Corgentech, its Affiliates or sublicensees of each Product
during [ * ]for such Product in [ * ] Notwithstanding the foregoing, if
Cyclacel, its Affiliate, licensees or sublicensees, during the period in which
Corgentech must provide to Cyclacel reports under this Clause 4.6, is then
developing or Commercialising a product either for use [ * ]a Product, or that [ * ], then

 

31

 

Cyclacel shall
so notify Corgentech in writing, and Corgentech shall have no obligation under
this Clause 4 or under Clause 2 to disclose information regarding Corgentech’s
plans for the development or Commercialisation of that Product for so long as
any such activities are conducted by Cyclacel, its Affiliates, licensees or
sublicensees (provided that Corgentech shall continue to be obligated to report
[ * ]and Launch of such Product
and shall continue to provide full reporting under this Clause 4.6 for all
other Products).  Such reports shall be
received by Cyclacel subject to the obligations of Clause 10.

 

4.7                                 ADVERSE EVENTS REPORTING. 
With respect to products incorporating or based on products including
any Variant Peptide being developed by Cyclacel or its Affiliates or Cyclacel’s
sublicensees, Cyclacel shall provide to Corgentech reports of any serious
adverse events judged specifically related to the inclusion of Penetratin or
any other Variant Peptide in such product and which are required to be reported
to any regulatory authority, promptly after any such events occur. Corgentech
shall provide to Cyclacel reports of any serious adverse events judged
specifically related to the inclusion of any Variant Peptide in a Product and
which are required to be reported to any Regulatory Authority, promptly after
any such events occur.

 

4.8                                 TRANSFER OF MANUFACTURING
TECHNOLOGY.  After the commencement of Development of a
Compound, Cyclacel shall provide to Corgentech reasonable assistance to enable
Corgentech, its Affiliates and sublicensees to perform analytical testing and
otherwise to make Licensed Variant Peptides for use in connection with
Compounds and Products as permitted under this Agreement, provided that such
assistance shall not include training with respect to [ * ]

 

5.                                       INTELLECTUAL
PROPERTY - INITIAL FILINGS AND OWNERSHIP

 

5.1                                 CYCLACEL IP.  Any and all Cyclacel IP and Cyclacel Future IP
shall, as between Corgentech and Cyclacel, be owned by Cyclacel.

 

32

 

5.2                                 CORGENTECH IP.  Any and all Corgentech IP shall, as between
Cyclacel and Corgentech, be owned by Corgentech.

 

5.3                                 RESEARCH PROGRAM PATENT RIGHTS.  As between the Parties, Corgentech shall own
any and all Research Program IP. 
Corgentech shall disclose to Cyclacel all filings for Research Program
Patent Rights that [ * ]and any
filing for Research Program Patent Rights that [ * ]therefor. 
Corgentech shall supply Cyclacel with a copy of the same within [ * ]after Corgentech, its Affiliates or
licensees file such patent application claiming such invention.  Such disclosures shall be treated as
Confidential Information of Corgentech.

 

5.4                                 RESEARCH PROGRAM KNOW HOW AND RESEARCH PROGRAM MATERIALS.  As between the Parties,
Corgentech shall own any and all Research Program Know How and Research Program
Materials.

 

6.                                       INTELLECTUAL
PROPERTY - LICENSES

 

6.1                                 RESEARCH LICENSE GRANT TO CORGENTECH.  Subject to the terms of this Agreement,
Cyclacel hereby grants to Corgentech (i) a worldwide, exclusive license under
Cyclacel IP to research, make (subject to Clause 2.8), have made and use the
Variant Peptides and related Cyclacel Know How in the Field in connection with
the performance of research relating to Compounds, Licensed Variant Peptides,
and the conjugation of Transcription Factor Decoys that are [ * ]Transcription Factor Decoys to Licensed
Variant Peptides under the Research Program, provided that such license under
the [ * ]Patent Rights shall be
limited to the [ * ]Field and (A)
shall be exclusive as to Cyclacel, and (B) [
* ]in the [ * ]Field
described in Clause 1.1.9(a) and [ * ]with
[ * ]Field described in
Clauses 1.1.9(b) and (c); provided, however, that after the Exclusivity
Period expires, the foregoing license shall become limited and remain [ * ]solely as to Transcription Factor
Decoys with respect to which Corgentech is continuing to develop or

 

33

 

Commercialize
Compounds based thereon, as determined under Clause 2.4.  Corgentech shall have the right to grant
sublicenses hereunder in a manner consistent with Clause 2.7.

 

6.2                                 COMMERCIAL LICENSE GRANT TO CORGENTECH.  Subject to the terms of this
Agreement, Cyclacel hereby grants to Corgentech a worldwide, sub-licensable
license and right under the Cyclacel IP to develop, use, make, have made, sell,
offer for sale, import and otherwise Commercialise and have Commercialised
Compounds and resulting Products in the Field, provided that such license under
the [ * ]Patent Rights shall be
limited to the [ * ]Field and
(A) [ * ]as to Cyclacel, but
(B) [ * ]as to [ * ]in the [ * ]Field described in Clause 1.1.9(a) and [ * ]with [
* ]in the [ * ]Field
described in Clauses 1.1.9(b) and (c); provided, however, that after the
Exclusivity Period expires, the foregoing license shall become limited and
remain [ * ]solely as to [ * ]with respect to which Corgentech is [ * ], as determined under Clause 2.4.   The foregoing license shall be
sub-licensable to Third Parties.

 

6.3                                 LICENSE GRANT TO CYCLACEL UNDER CORGENTECH IP.  Subject to the terms of this
Agreement, Corgentech hereby grants to Cyclacel a fully paid-up, royalty-free,
non-exclusive, worldwide, sublicensable license under the Corgentech IP
Covering and relating specifically to [ * ](i) to
research, develop, have developed, use, have used, make, have made,
Commercialise and have Commercialised products containing Variant Peptides
conjugated to molecules [ * ], and
(ii) to make and use Variant Peptides to perform research to identify improved
Conjugation Technology for conjugating Variant Peptides to molecules [ * ]. 
For clarity, Cyclacel’s license does not include the right to practice
such Corgentech IP with [ * ], but
does include the right to practice such Corgentech IP with molecules that are
not or do not contain [ * ],
including those such molecules that [ * ]or
[ * ]or [ * ].

 

6.4                                 LICENSE GRANT TO CYCLACEL UNDER RESEARCH PROGRAM PATENT RIGHTS.  Corgentech
hereby grants to Cyclacel a fully paid-up,

 

34

 

royalty-free,
irrevocable, non-exclusive, worldwide, sublicensable license under the Research
Program IP which claims or covers, or relates to [ * ](but excluding in any event all [ * ]relating to the [ * ]or [
* ]therefor), that is necessary or useful for the research,
development and commercialization of products containing Variant Peptides conjugated
to molecules [ * ], (i) to
research, develop, make, have made, use, sell, offer for sale, import or
otherwise Commercialise and have Commercialised products containing Variant
Peptides conjugated to [ * ], and
(ii) to make and use Variant Peptides to perform research to identify improved
Variant Peptides and methods of conjugating Variant Peptides to [ * ]. 
For clarity, Cyclacel’s license does not include the right to practice
such Research Program IP licensed to Cyclacel pursuant to this Clause 6.4 with [ * ]but does include the right to practice
such Research Program IP with [ * ],
including those such [ * ]or [ * ]or [
* ].

 

6.5                                 SUBLICENSING.  Where so permitted under this Agreement,
either Party shall be entitled to sublicense the rights granted to it
hereunder, provided that such Party (“Sublicensor”)
shall remain responsible for all of its obligations hereunder.  If the acts or omissions of any such
sublicensee cause Sublicensor to be in breach of this Agreement, Sublicensor
shall be responsible therefor regardless of any remedy which Sublicensor may
have against the sublicensee for breach of the sublicense.  In particular but without limitation,
Sublicensor shall ensure that any sublicensee performs its financial
obligations under that sublicense that may impact the rights of the other Party
under this Agreement, and Sublicensor shall indemnify the other Party against
any and all loss, damage, cost or expense which such other Party may incur as a
result of failure by a sublicensee of Sublicensor to perform such obligations.

 

6.6                                 RIGHT OF FIRST NEGOTIATION.  During the term of this Agreement Cyclacel
shall first offer to Corgentech the terms of a license to any Cyclacel

 

35

 

Future IP
which Cyclacel or any of its Affiliates decides to license to a Third Party.
Cyclacel shall make its offer in writing specifying the Cyclacel Future IP in
question and suggested terms for the license. If Corgentech notifies Cyclacel
of Corgentech’s interest in obtaining such a license within [ * ]after receiving such notice from
Cyclacel, then Corgentech shall have a right of [ * ]for such license with Cyclacel for a period of [ * ]from the date that Cyclacel received
Corgentech’s notice of interest. During such period, Cyclacel shall negotiate
with Corgentech in good faith. At the end of such    [ * ]period,
if such a license has not been executed between the Parties, Cyclacel shall be
free to license such Cyclacel Future IP to any Third Party, provided that
Cyclacel shall not thereafter grant to any Third Party any such license or
terms [ * ]to such Third Party
than [ * ]unless [ * ], and Corgentech fails, within [ * ]after receiving such offer, to [ * ].

 

6.7                                 TERMINATION OF [ * ]  Corgentech
may, in its sole discretion, elect to terminate its [ * ].  If Corgentech
makes such election, then the Cyclacel IP shall [ * ]Cyclacel [ * ]and
the provisions of this Agreement [ * ]licensed
to Cyclacel thereunder shall [ * ].

 

7.                                       PAYMENTS

 

7.1                                 EXECUTION FEE

 

Within [ *
]of the Commencement Date Corgentech shall pay Cyclacel an execution
fee of [ * ]pounds sterling (GBP [ * ]).

 

7.2                                 ANNUAL FEES

 

7.2.1                        Until
Corgentech has paid the milestone due under Clause 7.3.1(d) Corgentech will pay
to Cyclacel an annual fee (commencing upon the first anniversary of the
Commencement Date) equal to [ * ](GBP      [ * ]),
subject to Clause 7.2.2.  The annual fee
will be due and payable within [ * ]days
after Corgentech receives an invoice therefor, such

 

36

 

invoice to be
issued and dated after but not before each anniversary of the Commencement
Date.  Any such invoices provided by
Cyclacel shall be sent to the attention of Accounts Payable at the address
specified for Corgentech in Schedule 5.

 

7.2.2                        Upon the
occurrence of each of the following events:

 

(a)                                  [ * ]; and

 

(b)                                 [ * ];

 

the annual fee set out in Clause 7.2.1 above
will [ * ]), with such [ * ]annual fee [ * ]following the grant of the relevant patent.  As an illustration, following the occurrence
of one or both of the events above, the [ * ]either
[ * ](if such a [ * ]) or [
* ](if such a [ * ]).

 

7.2.3                        The amounts
due to Cyclacel under this Clause 7.2 shall be [ * ]as provided in [ * ]as
of the [ * ]

 

7.2.4                        Any payment
made by Corgentech to Cyclacel under the Material Transfer Agreement between
the Parties effective as of August 17, 2004 shall be [ * ]the [ * ]

 

7.3                                 MILESTONES

 

7.3.1                        The following milestone payments shall be made by Corgentech to
Cyclacel in relation to each Compound (subject to Clause 7.3.3) that is the
subject of a Development Program (except that the milestone payment described
in (h) shall be payable only one time, regardless of the number of times such
event occurs).

 

(a)                                  [ * ]:  – [ * ]pounds
sterling (GBP [ * ]);

 

(b)                                 [ * ]: - [ * ]pounds sterling (GBP [ * ]);

 

37

 

(c)                                  [ * ]: - [ * ]pounds sterling (GBP [ * ]);

 

(d)                                 [ * ]: - [ * ]pounds sterling (GBP [ * ]);

 

(e)                                  [ * ]:- [ * ]pounds sterling (GBP [ * ]);

 

(f)                                    [ * ]:- [ * ]pounds sterling (GBP [ * ]);

 

(g)                                 [ * ]:- [ * ]pounds sterling (GBP [ * ]); and

 

(h)                                 [ * ]: A one-time payment
of [ * ]pounds sterling (GBP [ * ]).

 

7.3.2                        Corgentech
shall report the occurrence of each event triggering a payment under Clause
7.3.1 to Cyclacel within [ * ]of
its occurrence, and at the same time shall make the milestone payment to
Cyclacel for which Clause 7.3.1 provides.

 

7.3.3                        The milestones
set forth in this Clause 7.3 shall apply to each Compound for which such
milestone is achieved (except as otherwise set forth above); however, if
Corgentech, its Affiliates and sublicensees develop a Back-Up Compound or
Product therefor, then amounts previously paid for development of the original
Compound or Product, shall be creditable against any milestones achieved for
the selected Back-Up Compound or Product based thereon.

 

7.4                                 NON-CREDITABLE PAYMENTS.  The sums set out in Clauses 7.1 to 7.3 are
all payable in consideration of the licenses granted by Cyclacel herein, and
are non-refundable in any circumstances whatsoever and are not creditable
against the royalties due under Clause 7.5 except as provided in Clause 7.2.3.

 

38

 

7.5                                 ROYALTIES

 

7.5.1                        Subject to the provisions of Clauses 7.6, 7.7 and 7.8, Corgentech
will pay to Cyclacel, royalties on a Product by Product basis for all Products,
as set forth below:

 

royalty = A + B + C

 

where,

 

A equals [ * ]of that
portion of Corgentech’s or its Affiliates’, agents’ or sublicensees’ worldwide
Net Sales of each Product, which, during the calendar year in question, is less
than [ * ]US dollars (USD [ * ]);

 

B equals three
and [ * ]of that portion of
Corgentech’s or its Affiliates’, agents’ or sublicensees’ worldwide Net Sales
of each Product, which, during the calendar year in question, is greater than
or equal to [ * ]United States
dollars (USD [ * ]) and less than
or equal to [ * ]United States
dollars (USD [ * ]);

 

C equals [ * ]of that portion of Corgentech’s or its
Affiliates’, agents’ or sublicensees’ worldwide Net Sales of each Product,
which, during the calendar year in question, is greater than [ * ]United States dollars (USD [ * ].

 

7.6                                 ROYALTY TERM.  Royalties under Clause 7.5 shall be payable
on a country by country basis for the longer of:

 

(a)                                  for so long as there are Valid Claims of Cyclacel Patent Rights
Covering the Compound included in such Product in such country of sale or there
are [ * ]Research Program Patent
Rights Covering the Compound included in a Product in such country of sale [ * ](as the case
may be); or

 

39

 

(b)                                 for a
period of [ * ]from the Launch of
such Product in that country (provided always that in the case of a country [ * ]period shall run from [ * ].

 

7.7                                 ROYALTY ON DERIVATIVES.  If Corgentech, its Affiliates or sublicensees
create or otherwise generate derivatives of a Licensed Variant Peptide using a
Licensed Variant Peptide or Cyclacel IP, including [ * ](each, a “Derivative”),
and use such Derivative in the development of a Compound and resulting Product,
and if such Derivative is not Covered by Cyclacel Patent Rights, then
Corgentech shall pay a royalty to Cyclacel upon Net Sales of any such Products
at a rate equal to [ * ].

 

7.8                                 ROYALTY OFFSETS.  Corgentech shall, subject to the provisions of Clause 8.6.2, have
the right to deduct a maximum of [ * ]provided
always that such offsets do not reduce the royalties set forth in Clause 7.5,
as applicable, to less than [ * ]of
Net Sales of such Products (the “Royalty Minimum”), provided that if the
relevant Product is [ * ]and [ * ]pursuant to [ * ]the Royalty Minimum shall be [ * ]of Net Sales of such Products.  For the purposes of this Clause 7.8, a Third
Party Patent Right is a Patent Right owned or controlled by a Third Party that
contains [ * ].  For the avoidance of doubt this Clause 7.8
does not apply in the circumstances of Clause 7.7.

 

7.9                                 ROYALTY PAYMENT.  Corgentech shall pay royalties to Cyclacel in
USD from a source within the United States. 
Corgentech shall make the royalty payments due to Cyclacel under Clause
7.5 or 7.7 at Quarterly intervals. Within [ *
]of the end of each Quarter after Launch of a Product in any
country, Corgentech shall pay all monies due to Cyclacel under Clause 7.5 or
7.7.  Each royalty payment shall be
accompanied by a report summarising the Net Sales of the Product on a country
by country basis during the relevant three-month period, the currency
conversion rate, if applicable, the taxes withheld, if any, which royalty
calculation is being applied and the total royalty payments due.

 

40

 

7.10                           CURRENCY CONVERSION.  Whenever for the purpose of calculating royalties conversion from
any foreign currency into USD shall be required, such conversion shall be made
as follows: the rate of currency conversion shall be calculated using a simple
average of the mid-month and month-end rates as provided by Brown Brothers
Harriman, 59 Wall Street, NY, NY 10005, for each relevant period, or if such
rate is not available, the spot rate as published by The Wall Street Journal,
Eastern Edition for such accounting period.

 

7.11                           TAXES.  Corgentech shall pay royalties to Cyclacel in
USD free and clear of and without deduction or deferment in respect of any
disputes or claims whatsoever. Any tax which Corgentech is required to pay or
withhold with respect of license fees and royalty payments to be made to
Cyclacel hereunder shall be deducted from the amount otherwise due provided
that, in regard to any such deduction, Corgentech shall give Cyclacel such
assistance, which shall include the provision of such documentation as may be
required by the US Internal Revenue Service and other revenue services, as may
reasonably be necessary to enable Cyclacel to claim exemption therefrom or
obtain a repayment thereof or a reduction thereof and shall upon request
provide such additional documentation from time to time as is needed to confirm
the payment of tax.

 

7.12                           RECORDS AND AUDITS.  Corgentech and its Affiliates and agents shall keep, and shall
require Corgentech’s sublicensees to keep, full, true and accurate records and
books of account containing all particulars that may be necessary for the
purpose of calculating all royalties payable to Cyclacel, for a minimum period
of [ * ]following the year in
which such sales occurred.  Upon advance
written notice by Cyclacel, Cyclacel shall have the right to instruct an
independent accounting firm reasonably acceptable to Corgentech to perform an
audit, conducted in accordance with United States Generally Accepted Auditing
Standards (GAAS), as is reasonably necessary to enable

 

41

 

such
accounting firm to report to Cyclacel the Net Sales of Product for the period
or periods requested by Cyclacel, on the following basis:-

 

7.12.1                  such firm of
accountants shall be given access to and shall be permitted to examine and copy
such books and records upon [ * ]notice
having been given by Cyclacel, and at reasonable times on Business Days, for
the purpose of certifying to Cyclacel that the Net Sales calculated by
Corgentech, its Affiliates and/or agents, or sublicensees during any Year were
calculated correctly in accordance with this Agreement.  If such certification cannot be given, such
auditor shall specify the reasons therefor to enable the Parties to recalculate
the relevant sums;

 

7.12.2                  prior to any such
examination taking place, such firm of accountants shall undertake to
Corgentech that they shall keep all information and data contained in such
books and records, and copies thereof, strictly confidential and shall not
disclose such information or copies of such books and records to any third
person including Cyclacel, but shall only use the same for the purpose of the
calculations which they need to perform in order to issue the certificate to
Cyclacel which this Clause 7.12 envisages;

 

7.12.3                  any such access
examination and certification shall not occur more frequently than once per
year, and will not go back over records more than [ * ]

 

7.12.4                  Corgentech shall
make reasonably available its personnel to answer queries on all such books and
records required for the purpose of that certification; and

 

7.12.5                  if the certification
shows that Corgentech has not calculated the Net Sales correctly the Parties
shall retain an independent Third Party

 

42

 

accountant to
recalculate these sums and any monies which such recalculation shows as being
due and owing by one Party to the other shall be paid by that Party.  The cost of such accountant shall be the
responsibility of Corgentech if the recalculation shows that Corgentech
underpaid amounts due to Cyclacel by more than [ * ], and the responsibility of Cyclacel otherwise.

 

7.13                           WIRE TRANSFER.  All payments made to Cyclacel under the Agreement shall be made by
wire transfer to the account of Cyclacel Limited at Barclays Bank Plc,
Chesterton, Cambridge, UK, [ * ],
Account No. [ * ], Swift Code  [ * ]or
any other bank account that may be notified by Cyclacel to Corgentech from time
to time.

 

7.14                           INTEREST.  If either Party fails to make any payment to the other Party
hereunder on the due date for payment, and the payment is not subject to any
good faith dispute that has been submitted for dispute resolution under Clause
16, then without prejudice to any other right or remedy available to that
Party, that Party expecting payment shall be entitled to charge the other Party
interest (both before and after judgement) on the amount unpaid at the per
annum rate of LIBOR plus [ * ]until
payment in full is made, or, if less, the maximum rate allowed by law.  If a payment is in dispute between the
Parties, any such dispute shall be promptly submitted for resolution according
to Clause 16.

 

8.                                       INTELLECTUAL
PROPERTY - PROSECUTION, MAINTENANCE AND ENFORCEMENT

 

8.1                                 CYCLACEL PATENT RIGHTS.  Cyclacel shall at its own cost and expense be solely responsible for
the filing, prosecution and maintenance of Cyclacel Patent Rights [ * ]in accordance with the strategy that
Cyclacel reasonably devises; provided that Cyclacel shall use all reasonable
endeavours to file, prosecute and maintain all patent applications and patents
included in

 

43

 

Cyclacel
Patent Rights [ * ]. Without
limiting the foregoing, (a) Cyclacel shall file, prosecute and maintain such
patent applications and patents in those countries on Schedule 6, Part A
hereto, including without limitation the conduct of any claims or proceedings
relating to such filing and prosecution activities (e.g., any interference,
reissue or re-examination or opposition or revocation proceedings); (b)
Cyclacel shall file and prosecute such Cyclacel Patent Rights in those
countries listed on Schedule 6, Part B hereto, 
until the time at which the European Patent Office grants an allowance
(“Allowance”) for such Cyclacel Patent Rights, including without limitation the
conduct of any (claims or proceedings relating to such filing and prosecution
activities (e.g.,  any interference,
reissue or re-examination or opposition or revocation proceedings) as relevant;
and (c) after the European Patent Office grants an Allowance for the Cyclacel
Patents Rights in those countries in Schedule 6, Part B, Cyclacel shall
continue to prosecute and maintain such Cyclacel Patent Rights in those
countries listed on Schedule 6, Part C hereto. 
Cyclacel shall keep Corgentech informed of all material developments in
relation to such Cyclacel Patent Rights and shall, upon Corgentech’s request,
provide Corgentech with copies of relevant documents related to the filing,
prosecution and maintenance of such Cyclacel Patent Rights.  Cyclacel will take account of Corgentech’s
interest hereunder when making any submission to a patent office and in the
conduct of any such proceedings in relation to such Cyclacel Patent
Rights.  If Cyclacel declines to continue
to file, prosecute or maintain any such Cyclacel Patent Rights in the countries
specified in Schedule 6, Part A, B or C, as required in this Clause 8.1,
Cyclacel shall so notify Corgentech in writing at least [ * ]prior to any relevant filing or correspondence
deadline relating to such activities.  In
such circumstances Corgentech shall have the right to elect with written notice
at least [ * ]prior to such
deadline, to require Cyclacel to continue to prosecute or maintain such
Cyclacel Patent Rights in such country or countries, at [ * ]expense and such Patent Rights shall [ * ].

 

44

 

The election
right of Corgentech shall not apply in the case where Cyclacel declines to
continue to maintain any granted patent falling under the Cyclacel Patent
Rights in which the claimed matter is such that the patent is not necessary or
useful in connection with the exercise by Corgentech of its license rights
under the Agreement. Cyclacel shall use its best endeavours to ensure [ *  ] under the [
* ]Cyclacel shall [ * ]to
the extent Corgentech so requests and to the extent permitted therein and in a
manner consistent with this Clause 8.1.

 

8.2                                 RESEARCH PROGRAM PATENT RIGHTS.  Corgentech shall at its own cost and expense be
solely responsible for the filing, prosecution and maintenance of Research
Program Patent Rights in accordance with the strategy Corgentech reasonably
devises, including the conduct of any claims or proceedings relating to them
(including but not limited to any interference, reissue or re-examination or
opposition or revocation proceedings). 
Corgentech shall keep Cyclacel informed of all material developments in
relation to the Research Program Patent Rights licensed to Cyclacel pursuant to
Clause 6.4 and shall, [ * ].  Corgentech will take account of Cyclacel’s
interest hereunder when making any submission to a patent office (including the
scope of foreign filings) and in the conduct of any proceedings in relation to
the Research Program Patent Rights licensed to Cyclacel pursuant to Clause 6.4.

 

8.3                                 BACKUP RIGHTS.  In the event that Corgentech declines to file
or, having filed, declines to file or prosecute pending Research Program Patent
Rights licensed to Cyclacel pursuant to Clause 6.4 in any country listed on
Schedule 6, Part A, or to maintain Research Program Patent Rights licensed to
Cyclacel pursuant to Clause 6.4 in any country listed on Schedule 6, Part B,
Corgentech shall provide Cyclacel with written notice thereof prior to the
expiration of any deadline relating to such activities, but in any event at
least [ * ]prior notice.  In such circumstances Cyclacel shall have the
right to elect,

 

45

 

with written
notice at least [ * ]Days prior to
the deadline, to continue to file or prosecute such Research Program Patent
Rights in such country or countries, at its sole expense.

 

8.4                                 COOPERATION.  The Parties shall cause their patent
attorneys to liaise so far as practicable relating to the filing prosecution
and maintenance of Patent Rights falling within [ * ]Patent Rights or [ * ]Patent
Rights licensed to Cyclacel pursuant to Clause 6.4.  Each Party shall be responsible for the cost
of its own patent attorney incurred pursuant to this Agreement.

 

8.5                                 PATENT ENFORCEMENT.  Corgentech may, but shall not be obliged to,
at its own cost and expense, enforce the Cyclacel IP, [ * ]against infringers only where the
infringer is using the same in conjunction with Transcription Factor Decoys in
accordance with the following:

 

8.5.1                        Prior to the
commencement of proceedings Corgentech shall notify Cyclacel of the alleged
infringer’s activities and shall consult with Cyclacel concerning the
same.  Thereafter Corgentech shall have
the right to conduct the prosecution of such alleged infringer including the
right to settle them provided always that Cyclacel shall be entitled to be
joined in any such proceedings and to be separately represented in relation to
the same at its own cost and expense. 
Where it is necessary for Corgentech to commence proceedings as
plaintiff it shall be entitled to require Cyclacel to join Corgentech as
co-plaintiff and Cyclacel shall provide reasonable assistance in any such
proceeding.  Corgentech shall [ * ]by Cyclacel [ * ]providing such assistance, unless Cyclacel [ * ]in such proceeding as aforesaid.  Cyclacel shall use its best endeavours to
ensure that [ * ]under the    [ * ],
and if [ * ]fails to take such
action, Cyclacel shall [ * ]to the
extent Corgentech so requests and as permitted therein.

 

46

 

8.5.2                        If Corgentech
succeeds in any such infringement proceedings, whether at trial or by way of
settlement, Corgentech shall be entitled to retain such part of any award of
costs and damages made in such proceedings or settlement sum as is equal to
Corgentech’s costs of conducting the proceedings and any amounts Corgentech
pays for      [ * ]in such proceeding under Clause 8.5.1, and shall be
entitled to retain the balance received by Corgentech less an amount equivalent
to [ * ], which amount shall be
paid to Cyclacel.

 

8.5.3                        If Corgentech
fails to take any such proceedings Cyclacel may give Corgentech notice that
Cyclacel desires to conduct itself such proceedings.  If Corgentech does not notify Cyclacel that
Corgentech will conduct such proceeding under Clauses 8.5.1 and 8.5.2
within    [ * ]of the date of such notice, Cyclacel shall be entitled to
do so       [ * ]. Cyclacel shall be entitled to require Corgentech to
join Cyclacel as co-plaintiff. 
Corgentech shall provide all necessary assistance to Cyclacel in
relation to such proceedings and Cyclacel shall [ * ]by Corgentech [ * ]providing
such assistance, unless Corgentech [ * ]in
such proceeding (which Corgentech may elect in its discretion), in which case
such separate representation shall be [ * ].  Cyclacel shall have the sole right to conduct
such proceedings, including the right to settle them.  If Cyclacel succeeds in any such proceedings
it shall be entitled to retain such part of any award of costs and damages made
in such proceedings or settlement sum as is equal to Corgentech’s costs of
conducting the proceedings and any amounts Cyclacel pays for [ * ]in such proceeding under this Clause
8.5.3, and shall be entitled to retain [ * ]of
the balance remaining, with the remaining   
[ * ]of such balance paid
to Corgentech.  Neither Party may settle
any proceeding hereunder in any manner that adversely affects the other Party
without such other Party’s prior written consent.

 

47

 

8.6                                 PATENT INFRINGEMENT DEFENSE.  If during the term of this Agreement either Party receives any
notice, claim or proceedings from any Third Party alleging infringement of that
Third Party’s intellectual property by reason of Corgentech’s activities in
relation to this Agreement the Party receiving that notice shall:

 

8.6.1                        forthwith
notify the other Party of the notice, claim or proceeding; and

 

8.6.2                        neither Party
shall make any admission of liability and notwithstanding that Cyclacel may
have received the notice Corgentech shall at its own cost and expense be
responsible for and shall have conduct of and sole authority in, the defense or
settlement of such claims or proceedings. If Corgentech reasonably believes the
Third Party Patent Rights are valid and that infringement may be occurring, or
that it is economically or otherwise advantageous to seek a license, then:

 

(a)                                  it
may seek a license from such Third Party on appropriate commercial terms, [ * ], for any such license under rights
other than [ * ]and

 

(b)                                 if
such Third Party Patent Right(s) are [ * ],
then Corgentech shall promptly bring such matter to the attention of Cyclacel,
and the Parties shall discuss the basis for such alleged infringement.  If within [
* ]after any such discussion Cyclacel does not agree that
infringement of such Third Party Patent Rights may occur or is occurring by the
manufacture, use or sale of Compounds or Products by Corgentech, its Affiliates
or sublicensees, then Corgentech shall have the option to either (i) seek such
a license [ * ], or (ii) not seek
such a license and Cyclacel shall [ * ].  If Cyclacel is unable

 

48

 

to or fails to
[ * ]as provided in such Clause
9.12, then Corgentech may [ * ]or [ * ]Cyclacel under this Agreement, [ * ]the amount of [ * ]that Corgentech may so take (e.g., the
[ * ].  If Cyclacel agrees that it is necessary to
seek such a license under such Third Party Patent Rights, then Corgentech shall
have the right to negotiate the terms of any such license and, if Corgentech
enters into a license agreement with such Third Party with respect to such
Patent Rights, then Corgentech may [ * ]reasonably
allocable to the development, manufacture, use or sale of Compounds or Products
that are payable by Corgentech to such Third Party under such agreement,
subject to the provisions of Clause 7.8.

 

8.7                                 PATENT TERM EXTENSION.  Cyclacel shall promptly take all necessary
steps to facilitate Corgentech’s application for extensions to the term of
Patent Rights falling within Cyclacel Patent Rights, other than [ * ]Patent Rights, in any country,
including applications for supplementary protection certificates and patent
term extensions. In particular, but without limitation, if Corgentech requests
Cyclacel’s assistance in obtaining such an extension of such term, Corgentech
shall:

 

8.7.1                        promptly
notify Cyclacel of the number and date of the first and any subsequent
Marketing Authorisation for Product in Japan, the European Union or the USA;

 

8.7.2                        promptly and [ * ]provide to Cyclacel:

 

(a)                                  a
copy of every Marketing Authorisation fulfilling the requirements of Article
8.1(c) of Council Regulation EEC No. 1768/92 (and of any additional applicable
requirements imposed by relevant national law) in respect of all Product; and

 

49

 

(b)                                 additional
information fulfilling the requirements of Article 8.1(c) of Council Regulation
EEC No. 1768/92 and a copy of the notice publishing the Marketing Authorisation
in the appropriate official publication (and information and documents
fulfilling any additional requirements imposed by relevant national law);

 

(c)                                  permit
use of documents and information provided pursuant to this Clause for the
purpose of an application for a supplementary protection certificate or
certificates and for patent term extension or extensions.

 

8.8                                 THIRD PARTY CHALLENGE.  Notwithstanding anything to the contrary herein, for Cyclacel Patent
Rights, other than [ * ]Patent Rights
claiming a Product, should either Party receive a certification from a Third
Party in the US under the US “Drug Price Competition and Patent Term
Restoration Act of 1984 (Public Law 98-417), as amended, or its comparable law
in the country other than the USA, then such Party shall immediately give
written notice to the other Party of such certification.  Corgentech shall then have     [ * ]from
the date such Party receives such certification to initiate suit.  In the event the [ * ]period expires without Corgentech having initiated suit,
Cyclacel shall have the right to immediately bring suit against the Third Party
that filed the certification.  If either
Party initiates a suit within a [ * ]period
from the date such Party received the certification, it will immediately notify
the other Party.

 

9.                                       WARRANTIES
AND LIABILITY

 

9.1                                 MUTUAL WARRANTIES.  Each Party represents and warrants to the
other Party that:

 

50

 

9.1.1                        it has legal
power, authority and right to enter into this Agreement and to perform its
respective obligations in this Agreement;

 

9.1.2                        it is not at
the Commencement Date a party to any agreement, arrangement or understanding
with any Third Party which in any significant way prevents it from fulfilling
any of its material obligations under the terms of this Agreement; and

 

9.1.3                        any
information and material provided to the other Party relating to Products and
the other activities to be conducted under this Agreement prior to the
Commencement Date that is material to the decision of the other Party to enter
into this Agreement is true and correct in all material respects.

 

9.2                                 CYCLACEL WARRANTY OF IP OWNERSHIP.  Cyclacel represents and warrants to
Corgentech that Cyclacel is the sole owner or, to its knowledge, the sole
licensee (as applicable) as of the Commencement Date of the Cyclacel IP, and
Cyclacel possesses all rights necessary to grant to Corgentech the rights which
are granted in this Agreement, free and clear of any liens or encumbrances which
would prevent or impair the grant of such rights.

 

9.3                                 CYCLACEL WARRANTY OF OTHER IP.  At the Commencement Date, Cyclacel does not
own or have a license to any Patent Rights that are not included in the
Cyclacel IP Covering Licensed Variant Peptides or peptide delivery systems,
that would be infringed by the manufacture, use or sale of Compounds.

 

9.4                                 CORGENTECH WARRANTY OF IP OWNERSHIP. 
Corgentech represents and warrants to
Cyclacel that Corgentech is the sole owner or, to its knowledge, licensee, as
applicable, as of the Commencement Date of the Corgentech IP and that
Corgentech possesses the right to grant to Cyclacel

 

51

 

the rights
which are granted in this Agreement, free and clear of any liens or encumbrances
which would prevent or impair the grant of such rights.

 

9.5                                 CYCLACEL WARRANTY OF NON-INFRINGEMENT.  Cyclacel represents and warrants that as of
the Commencement Date and so far as Cyclacel is aware, there are no actual or
threatened proceedings relating to infringement or misappropriation of Third
Party intellectual property rights by the use of Cyclacel IP, and the Cyclacel
IP is not the subject of any actual or threatened challenge or revocation
proceedings.

 

9.6                                 CYCLACEL WARRANTY OF THIRD PARTY
IP.  Cyclacel represents and warrants
that as of the Commencement Date and so far as Cyclacel is aware (but without
having conducted detailed searches), no Third Party owns or controls any Patent
Rights that Cover Compounds, Products or Variant Peptides.

 

9.7                                 CYCLACEL WARRANTY OF IP VALIDITY.  Cyclacel represents and warrants that, to its
knowledge but without having commissioned or performed formal validity
opinions, as of the Commencement Date, the issued Cyclacel Patent Rights are
not invalid or unenforceable.

 

9.8                                 CYCLACEL WARRANTIES AND COVENANTS AS
TO [ * ]AGREEMENT.  Cyclacel represents and warrants that as of
the Commencement Date, the [ * ]Agreement
is in full force and effect and to Cyclacel’s knowledge, Cyclacel has not
materially breached its obligations thereunder. 
Cyclacel further covenants that it shall perform its obligations under
the [ * ]Agreement, and shall not
exercise its right to [ * ]under
the    [
* ]Agreement to [ * ].  If Cyclacel receives any notice of default
under the [ * ]Agreement, it shall
promptly notify Corgentech and Corgentech may cure any such default involving [ * ]and any [ * ]pursuant to this Agreement.

 

52

 

9.9                                 NO IMPLIED WARRANTY.  Save as is expressly stated in Clauses 9.1
through 9.8, no representation, condition or warranty whatsoever is made or
given by or on behalf of Cyclacel or Corgentech. All conditions and warranties,
whether arising by operation of law or otherwise, are hereby expressly
excluded, including without limitation any conditions and warranties to the
effect that:-

 

9.9.1                        any of the
Cyclacel IP is valid or enforceable; or

 

9.9.2                        any of the
acts to be undertaken by Corgentech pursuant to this Agreement will not
infringe the rights of Third Parties.

 

9.10                           TRIAL SPONSORSHIP.  As between the Parties, Corgentech shall have
the control of clinical trials conducted under the Development Program and
shall be the sponsor of such trials.  In
such capacity, Corgentech shall be responsible for the [ * ]to any participants in such trials who
[ * ]pursuant to any [ * ]or [
* ].

 

9.11                           INDEMNIFICATION OF CYCLACEL.  Corgentech shall be responsible for and shall
indemnify Cyclacel and its directors, officers, servants and agents
(collectively “the Cyclacel Indemnified Party”) against any and all liability,
loss, damage, cost and expense (including legal costs) (collectively, “Losses”)
incurred or suffered by the Indemnified Party as a result of any claim brought
against Cyclacel by a Third Party which arises as a result of the activities of
Corgentech, its Affiliates or agents or sublicensees under this Agreement,
including a claim that use of any Compound(s) or Product(s) has caused death or
bodily injury, or any negligent act or omission or gross misconduct by Corgentech
its employees, agents, independent contractors or Affiliates, except where such
Losses have been caused as a result, either directly or indirectly by a breach
of contract, warranty or representation, negligent act or omission or gross
misconduct on the part of Cyclacel, or any of its employees, agents,
independent contractors

 

53

 

or
Affiliates.  A Cyclacel Indemnified Party
that intends to claim indemnification under this Clause 9.11 shall
promptly notify Corgentech of any Third Party claim in respect of which the
Cyclacel Indemnified Party intends to claim that indemnification.  The Cyclacel Indemnified Party shall not
compromise or settle the claim prior to any such notice.  Corgentech may assume and control the defence
of any such Third Party claim including settlement of same (provided that it
may not settle such claim in a manner adversely affecting Cyclacel or the
Cyclacel Indemnified Party without Cyclacel’s prior written consent), provided
however, that the Cyclacel Indemnified Party shall have the right to retain its
own counsel at Corgentech’s own cost and expense, if representation of that
Cyclacel Indemnified Party by the counsel retained by Corgentech would be
inappropriate due to actual or potential differing interests between the
Cyclacel Indemnified Party and any other party represented by that counsel in
the proceedings.  The Cyclacel
Indemnified Party shall co-operate with Corgentech and its legal representatives
in the investigation of any matter covered by this indemnification.

 

9.12                           INDEMNIFICATION OF CORGENTECH.  Cyclacel shall be responsible for and shall
indemnify Corgentech and its directors, officers, servants and agents
(collectively “the Corgentech Indemnified Party”) against any and all Losses
incurred or suffered by the Corgentech Indemnified Party as a result of any
claim brought against Corgentech by a Third Party being a claim in respect of
(i) death or personal injury which it is asserted has occurred as a result of
the activities of Cyclacel or its Affiliates or sublicensees under this
Agreement, or any negligent act or omission or gross misconduct by Cyclacel,
its employees, agents, independent contractors or Affiliates, and (ii)
infringement of a Third Party Patent Right as to which Cyclacel is obligated to
indemnify Corgentech pursuant to Clause 8.6. 
Any Corgentech Indemnified Party that intends to claim indemnification
under this Clause 9.12 shall promptly notify Cyclacel of any Third Party claim
in respect of

 

54

 

which the
Indemnified Party intends to claim the indemnification. The Corgentech
Indemnified Party shall not compromise or settle the claim prior to any such
notice.  Cyclacel may assume and control
the defence of any such Third Party claim including any settlement of the same
(provided that it may not settle such claim in a manner adversely affecting
Corgentech or the Corgentech Indemnified Party without Corgentech’s prior
written consent), provided however, that the Corgentech Indemnified Party shall
have the right to retain its own counsel at Cyclacel’s cost and expense, if
representation of that Corgentech Indemnified Party by the counsel retained by
Cyclacel would be inappropriate due to actual or potential differing interests
between the Corgentech Indemnified Party and any other party represented by
that counsel in the proceedings.  The
Corgentech Indemnified Party shall co-operate with Cyclacel and its legal
representatives in the investigation of any matter covered by this
indemnification.

 

9.13                           LIMITATION OF LIABILITY.  Neither Party shall be liable to the other in
contract, tort, negligence, breach of statutory duty or otherwise for any loss,
damage, costs or expenses of any nature whatsoever incurred or suffered by the
other or its Affiliates:

 

9.13.1                  of a direct nature
where the same is a loss of turnover, profits business or goodwill; or

 

9.13.2                  of any indirect,
consequential or punitive nature, including any indirect or consequential
economic loss or other indirect or consequential loss of turnover, profits,
loss of enterprise value, business or goodwill or otherwise.

 

The foregoing shall not limit
either Party’s obligations under Clause 9.11 or 9.12.

 

9.14                           INSURANCE.  Corgentech shall secure and maintain comprehensive
general liability insurance with insurers having an AM Best rating within the [ * ]categories at the time (at the date of
this Agreement known as [ * ]or

 

55

 

[
* ]), including, product liability,
contractual liability, personal injury, and insurance against claims regarding
the development, manufacture, delivery, storage, handling and use of Product
under this Agreement, in such amounts as it customarily maintains for similar
products and activities in accordance with prudent insurance practice, but in
no event less than the dollar equivalent of [
* ]United States dollars (USD [
* ]) per occurrence and in the aggregate per year.

 

10.                                 CONFIDENTIALITY

 

10.1                           CONFIDENTIALITY OBLIGATIONS.  Except as otherwise expressly provided in this Agreement, each of
the Parties undertakes and agrees to:

 

10.1.1                  keep the Disclosing
Party’s Confidential Information secret and confidential and shall not disclose
it to any Third Party without the other Party’s prior written consent save as
expressly or impliedly permitted under this Agreement;

 

10.1.2                  only use the
Disclosing Party’s Confidential Information for the purposes envisaged under
this Agreement and not to use the same for any other purpose whatsoever;

 

10.1.3                  ensure that only
those of its officers, consultants, employees (including without limitation
directors), sublicensees, Affiliates and such Third Parties who are directly
concerned with the carrying out of this Agreement have access to the Disclosing
Party’s Confidential Information on a strictly applied “need to know” basis and
are informed of the secret and confidential nature of it;

 

10.1.4                  keep the Disclosing
Party’s Confidential Information separately identifiable at all times from all
other Know How which it may hold; and

 

56

 

10.1.5                  clearly identify the
Disclosing Party’s Confidential Information as confidential.

 

10.2                           EXCEPTIONS.  The obligations of confidentiality referred
to in Clause 10.1 shall not extend to any Confidential Information which:-

 

10.2.1                  is or becomes
generally available to the public otherwise than by reason of breach by a
Recipient Party of the provisions of Clause 10.1; or

 

10.2.2                  is known to the
Recipient Party and is at its free disposal at the time of its disclosure to
the Recipient Party (having been generated independently by the Recipient Party
or a Third Party in circumstances where it can be shown that it has not been
derived from access to the Disclosing Party’s Confidential Information); or

 

10.2.3                  is subsequently
disclosed to the Recipient Party without obligations of confidentiality by a
Third Party owing no such obligations to the Disclosing Party in respect of
that Confidential Information.

 

10.3                           PERMITTED DISCLOSURES.  Each Party may disclose the other Party’s
Confidential Information if it is required by law to be disclosed (including as
part of any regulatory submission or approval process).  If such a disclosure is so required, then the
Recipient Party shall use Commercially Reasonable Efforts to provide to the
Disclosing Party prompt written notice of this requirement so that the
Disclosing Party may, if so advised, seek appropriate relief to prevent such
disclosure.  Any such required disclosure
shall be permitted only to the extent so required and shall be subject to prior
consultation, where practicable, with the Disclosing Party with a view to
agreeing timing and content of such disclosure.

 

57

 

10.4                           INSOLVENCY.  In the event that a court or Competent
Authority assumes partial or complete control over the assets of a Recipient
Party based on Insolvency Event of that Party, the Recipient Party shall:

 

10.4.1                  promptly notify such
court or Competent Authority:

 

(a)                                  that
Confidential Information received from the Disclosing Party is owned or
Controlled by the Disclosing Party; and

 

(b)                                 of
the confidentiality obligations under this Agreement; and

 

10.4.2                  to the extent
permitted by law, take all steps necessary or desirable to maintain the
confidentiality and security of the Disclosing Party’s Confidential Information
and to ensure that the court or Competent Authority maintains that Confidential
Information in confidence in accordance with this Agreement.

 

10.5                           REMEDIES.  The Parties understand that remedies in damages may be inadequate to
protect against any breach of any of the provisions of this Clause 10 by either
Party or their employees, officers or any other person acting in concert with
it or on its behalf. Accordingly, each Party shall be entitled to seek the
granting of interim and final injunctive relief by a court of competent
jurisdiction in the discretion of that court against any action that
constitutes any breach of this Clause 10.

 

10.6                           TERM OF CONFIDENTIALITY OBLIGATIONS. 
The Parties agree that the obligations of
confidentiality set out in this Clause 10 shall continue to apply for [ * ]following the termination of this
Agreement for whatever reason, except that such obligations shall continue
indefinitely for any Confidential Information maintained by the Disclosing
Party as a trade secret.

 

58

 

10.7                           PUBLICATION.  As
soon as possible prior to any publication containing, and/or other disclosure
of, Cyclacel Confidential Information, in accordance with its normal
publication practice, Corgentech shall furnish Cyclacel with preliminary data
and drafts of the proposed publication and disclosure, whether oral, in writing
or in any other form, including abstracts, slides, posters or other
presentation material, and, as soon as available, the proposed final
manuscript.  Cyclacel shall thereafter be
entitled to review the proposed final manuscript during a period of [ * ]from the receipt thereof and may
within such time request that submission for publication or disclosure is
delayed with an additional period of [ * ]to
enable the filing of a patent application thereon. Corgentech shall reasonably
observe the comments, views and opinions provided by Cyclacel.  Notwithstanding the foregoing Corgentech
shall not publish or disclose any Cyclacel Confidential Information without
having obtained the prior written consent of Cyclacel.

 

11.                                 TERM
AND TERMINATION

 

11.1                           TERM.  Subject to the other provisions of this Clause, this Agreement shall
expire on a country by country and Product by Product basis when no further
payment is due from Corgentech to Cyclacel hereunder in relation to sales of
such Product in that country. Upon any such expiration Corgentech’s license
under Clause 6.2 in such country shall continue fully paid up and royalty free.

 

11.2                           TERMINATION.  Each of the Parties (“the Terminating Party”) shall have the
right to terminate this Agreement for cause upon giving written notice of
termination to the other (“the Defaulting
Party”) upon the occurrence of any of the following events at any
time during this Agreement:-

 

11.2.1                  the Defaulting Party
commits a material breach of this Agreement which is incapable of remedy or
which in the case of a breach capable of remedy shall not have been remedied
within [ * ]of the

 

59

 

receipt by it
of a written notice from the other Party identifying the breach and requiring
its remedy;

 

11.2.2                  if an Insolvency
Event occurs in relation to the Defaulting Party.  In any event when a Party first becomes aware
of the likely occurrence of any Insolvency Event in regard to that Party, it
shall promptly so notify the other Party in sufficient time to give the other
Party sufficient notice to protect its interests under this Agreement.

 

11.3                           TERMINATION AT WILL.  Corgentech shall have the right at any time
to terminate this Agreement at will upon [ *
]prior written notice to Cyclacel. 
This Agreement shall terminate upon expiration of such [ * ]notice.

 

11.4                           CONVERSION TO NON-EXCLUSIVE
LICENSE.  At the election of Cyclacel,
exercised in its sole discretion, when it has the right to terminate this
Agreement under Clause 11.2.1, Cyclacel shall have the right by giving notice
in writing to Corgentech instead of terminating this Agreement, to convert the
exclusive and co-exclusive licenses under Clauses 6.1 and/or 6.2 as the case
may be (depending on the timing of such termination) to nonexclusive licenses.

 

12.                                 CONSEQUENCES
OF TERMINATION

 

12.1                           SURVIVAL ON TERMINATION BY CORGENTECH UNDER CLAUSE 11.3 OR BY CYCLACEL UNDER CLAUSE 11.2.  Upon a termination of this Agreement by
Corgentech under Clause 11.3 or a termination of this Agreement by Cyclacel
pursuant to Clause 11.2 (termination for cause) all of Corgentech’s
licenses hereunder shall terminate (as shall any sublicense granted thereunder)
and Corgentech shall:-

 

12.1.1                  deliver up to
Cyclacel or at Cyclacel’s option destroy all and any Licensed Variant Peptides
or related Materials and Cyclacel Know

 

60

 

How
in the possession or control of Corgentech, its Affiliates or sublicensees;

 

12.1.2                  [ * ]Cyclacel’s licenses under Clauses 6.3
and 6.4 [ * ];

 

12.1.3                  the provisions of
Clauses 5, 6.5, 9.11 and 9.12 (as to claims arising during the term of this
Agreement), 9.13, 10, 12, 13, 15, 16, 17, 19, 20, 22, 23, and 24 shall continue
to apply.

 

12.2                           SURVIVAL ON TERMINATION BY CORGENTECH UNDER CLAUSE 11.2.  Upon the
termination of this Agreement by Corgentech pursuant to Clause 11.2
(termination for cause) the licenses granted to Corgentech hereunder shall
continue to apply on their terms including the terms of Clause 7 (which shall
survive such termination but be subject to offset by Corgentech by any damages
incurred by Corgentech in relation to Cyclacel’s breach) and Cyclacel’s
licenses (and any sublicense granted thereunder) under Clauses 6.3 and 6.4
shall also continue provided always that thereafter Corgentech shall be under
no further obligation to include in Research Program IP licensed to Cyclacel
under Clause 6.4 any Know How or Patent Rights generated or otherwise coming
into existence after that time which otherwise would have fallen within the
definition of Research Program IP.  Upon
any such termination by Corgentech the provisions of Clauses 5, 6.5, 8, 9.8,
9.11 and 9.12 (as to claims arising during the term of this Agreement), 9.13,
9.14, 10, 12, 13, 15, 16, 17, 19, 20, 22, 23, and 24 shall continue to apply.

 

13.                                 ASSIGNMENT

 

This Agreement and the licenses herein
granted shall be binding upon and inure to the benefit of the successors in
interest of the respective parties. 
Neither this Agreement nor any interest hereunder shall be assignable by
either party without the written consent of the other, provided, however, that
either party may assign this Agreement or any part of its rights and
obligations hereunder, to any Affiliate or to

 

61

 

any corporation with which such Party may
merge or consolidate, or to which it may transfer all or substantially all of
its assets to which this Agreement relates, without obtaining the consent of
the other Party provided always that the assignee undertakes in writing to the
other Party to perform the terms of this Agreement and otherwise be bound by
such terms.

 

14.                                 FORCE
MAJEURE

 

14.1                           EFFECT OF A FORCE MAJEURE EVENT.  If a Party (the “Affected Party”) is unable to carry out any of its obligations
under this Agreement due to Force Majeure this Agreement shall remain in effect
but the Affected Party’s relevant obligations under this Agreement and the
corresponding obligations of the other Party (“Non-Affected Party”) under this Agreement, shall be suspended
for a period equal to the circumstance of Force Majeure provided that:-

 

14.1.1                  the suspension of
performance is of no greater scope than is required by the Force Majeure;

 

14.1.2                  the Affected Party
immediately gives the Non-Affected Party prompt written notice describing the
circumstance of Force Majeure, including the nature of the occurrence and its
expected duration, and continues to furnish regular reports during the period
of Force Majeure and notifies the Non-Affected Party immediately of the
cessation of the Force Majeure;

 

14.1.3                  the Affected Party
uses all reasonable efforts to remedy its inability to perform and to mitigate
the effects of the circumstance of Force Majeure; and

 

14.1.4                  a soon as
practicable after the event which constitutes Force Majeure the Parties discuss
how best to continue their operations as far as possible in accordance with
this Agreement.

 

62

 

14.2                           EXTENDED PERIOD OF FORCE MAJEURE.  If the circumstance of Force Majeure prevails
for a continuous period in excess of [ * ]the
Non-Affected Party may without prejudice to any other rights or remedies which
may be available to it terminate this Agreement with immediate effect by giving
written notice of termination to the other Party.  In the event of termination under this Clause
14.2 the provisions of Clause 12 shall not apply and the Parties shall meet to
discuss the Cyclacel IP, and the Research Program IP and the Corgentech IP and
a potential process for its continued use by the Parties.

 

15.                                 GOVERNING
LAW

 

The validity, construction and interpretation
of this Agreement and any determination of the performance which it requires
shall be governed by the law of the State of New York, without reference to
conflict of law principles that require the application of a law of a different
jurisdiction.

 

16.                                 JURISDICTION

 

16.1                           DISPUTE RESOLUTION.  In the event of any material dispute concerning rights or
obligations under this Agreement or in material breach of this Agreement then
the Parties shall comply with the following procedure: the Chief Executive
Officer of Cyclacel and the Chief Executive Officer of Corgentech or their
nominee shall be notified in writing of the dispute by either Party.  They or their nominees shall meet to resolve
the dispute in good faith.  If such
resolution is not reached within [ * ]of
such written notice, then the provision of Clause 16.2 shall apply.

 

16.2                           JURISDICTION.  Subject to the provisions of Clause 16.1, all
disputes between the Parties arising under out of or relating to this
Agreement, including without limitation its formation, validity, binding
effect, interpretation, performance breach or termination as well as
non-contractual

 

63

 

claims and
including disputes relating to pre-contractual representations, shall be
resolved by a court of competent jurisdiction within the State of New York USA,
and each Party hereby submits to the jurisdiction of such court.

 

17.                                 WAIVER

 

17.1                           WAIVER IN WRITING.  Save as expressly provided in this Agreement
neither Party shall be deemed to have waived any of its rights or remedies
whatsoever unless the waiver is made in writing, signed by a duly authorised
representative of that Party and may be given subject to any conditions thought
fit by the grantor.  Unless otherwise
expressly stated any waiver shall be effective only in the instance and for the
purpose for which it is given.

 

17.2                           NO IMPLIED WAIVER.  No delay or failure of any Party in
exercising or enforcing any of its rights or remedies whatsoever shall operate
as a waiver of those rights or remedies or so as to preclude or impair the
exercise or enforcement of those rights or remedies.  No single or partial exercise or enforcement
of any right or remedy by any Party shall preclude or impair any other or
further exercise or enforcement of that right or remedy by that Party.

 

18.                                 SEVERANCE
OF TERMS

 

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, it is the intention of
the Parties that the remainder of this Agreement shall not be affected thereby,
provided that a Party’s rights are not materially affected.  The Parties hereto covenant and agree to
re-negotiate any such provision in good faith in order to provide a reasonably
acceptable alternative to the provision that is invalid, illegal, or
unenforceable, it being the intent of the Parties that the basic purposes of
this Agreement are to be effectuated.

 

64

 

19.                                 ENTIRE
AGREEMENT/VARIATIONS

 

19.1                           ENTIRE AGREEMENT.  This Agreement and all Schedules hereto and
the Letter Agreement constitute the entire agreement and understanding between
the Parties and supersede all prior oral or written understandings,
arrangements, representations or agreements between them relating to the
subject matter of this Agreement, including without limitation the Material
Transfer Agreement entered into between the Parties effective on August 17th
2004 (the “MTA”), provided that
any confidential information disclosed by a Party under the MTA shall be deemed
“Confidential Information” of such Party under this Agreement, that ownership
of any inventions made or arising under the MTA shall be determined as if such
invention was made under this Agreement by the inventing Party or Parties, and
that each Party’s respective rights to publish results generated under the MTA
shall be determined as if such results were generated under this Agreement, and
further provided that the
Confidentiality Disclosure Agreement between Corgentech and Cyclacel entered
into on April 14, 2004 shall continue to govern the confidential information
exchanged under that agreement before the Commencement Date.

 

19.2                           AMENDMENT.  No variation, amendments, modification or supplement
to this Agreement shall be valid unless agreed in writing in the English
language and signed by a duly authorised representative of each Party.

 

20.                                 NOTICES

 

20.1                           METHOD OF NOTICE.  Any notice or other communication given
pursuant to or made under or in connection with the matters contemplated by
this Agreement shall be in writing in the English language and shall be
delivered by courier or sent by facsimile to the address or facsimile number of
the recipient set out in Schedule 5 or as specified by the recipient from time
to time in accordance with Clause 20.3. 
Notices sent by E-Mail shall not be

 

65

 

valid of
themselves and must be confirmed in hard copy form by courier or facsimile.

 

20.2                           TIMING OF NOTICE.  Any notice given pursuant to this Clause
shall be deemed to have been received:-

 

20.2.1                  if delivered by
courier, at the time of delivery; or

 

20.2.2                  if sent by
facsimile, on acknowledgement by the recipient facsimile receiving equipment on
a Business Day if the acknowledgement occurs before 5 p.m. local time on a
Business Day of the recipient and in any other case on the following the
Business Day.

 

20.3                           SPECIAL NOTICE.  A Party may notify the other Parties to this Agreement of a change
of its name, relevant addressee, address or facsimile number for the purposes
of Schedule 5, provided that such notification shall only be effective on:-

 

20.3.1                  the date specified
in the notification as the date on which the change is to take place; or

 

20.3.2                  if no date is
specified or the date specified is less than five (5) Business Days after the
date on which the notice is given, the date falling five (5) Business Days
after notice of any such change has been given.

 

20.4                           NOT APPLICABLE TO SERVICE DOCUMENTS.  For the avoidance of doubt, the Parties agree
that the provisions of this Clause shall not apply in relation to the service
of Service Documents (as defined in Clause 20.5).

 

20.5                           SERVICE DOCUMENT.  “Service Document”
means a writ, summons, order, judgement or other document related to or in
connection with any Court proceeding, cause, matter or action arising out of or
connected in any way with this Agreement.

 

66

 

21.                                 COUNTERPARTS

 

This Agreement may be executed in any number
of counterparts and by the Parties on separate counterparts, each of which when
so executed shall be an original of this Agreement, and all of which shall
together constitute one and the same instrument.  Complete sets of counterparts shall be
retained by each Party.

 

22.                                 THIS
AGREEMENT NOT TO CONSTITUTE A PARTNERSHIP

 

The Parties are independent contractors.  Nothing in this Agreement and no action taken
by the Parties pursuant to this Agreement shall constitute or be deemed to
constitute a partnership, association, joint venture or other co-operative
entity between the Parties and neither party shall have any authority to bind
the other in any way except as provided in this Agreement.

 

23.                                 COSTS

 

Each Party shall bear its own costs, legal
fees and other expenses incurred in the negotiation, preparation, execution and
implementation of this Agreement and the documents referred to herein.

 

24.                                 ANNOUNCEMENTS

 

24.1                           PUBLICITY.  No public announcements or other disclosure to Third Parties concerning
the financial or other terms of this Agreement, or the Parties’ performance
under this Agreement, shall be made, whether directly or indirectly, by either
Party to this Agreement, except as may be legally required, without first
obtaining the approval of the other Party and agreement upon the nature and
text of such announcement or disclosure, with the exception that:

 

24.1.1                  a Party may disclose
the full terms of this Agreement to its investment bankers, lawyers,
accountants and other professional advisors, corporate partners, or a Third
Party seeking to collaborate

 

67

 

with, invest
in, lend funds to acquire or merge with or be acquired by such Party without
the other Party’s prior approval provided that such disclosure is made under
terms of confidentiality, whether express or implied; and

 

24.1.2                  a Party may disclose
the terms of this Agreement if required by law, or to any securities exchange
or regulatory authority or government body to which either Party is subject or
submits, wherever situated, including (without limitation) the US Securities
Exchange Commission, the UK Stock Exchange or the Panel on Take-overs and
Mergers, whether or not the requirement has the force of law provided that it
takes advantage of all provisions to keep confidential as many terms of this
Agreement as possible.

 

24.2                           INITIAL PUBLIC ANNOUNCEMENT.  On or promptly after the Commencement Date,
the Parties shall make an initial public announcement of the execution of this
Agreement in a form that is substantially similar to that attached as Schedule
7.  In respect of those public
announcements and disclosures not permitted by Clause 24.1 the Party desiring
to make any such public announcements or other disclosure shall inform the
other Party of the proposed announcements or disclosure in reasonably
sufficient time prior to public release, and shall provide the other Party with
a written copy thereof, in order to allow such Party to comment upon such
announcement or disclosure, which comments shall be provided by such other
Party within      [ * ]. The Party seeking disclosure shall
reasonably incorporate the comments of the other Party and shall redact from
such disclosure the Confidential Information of the other Party upon the request
of the other Party.  The Parties shall
jointly develop press releases and information materials that can be used by
either Party for presentations to financial advisers and similar recipients.

 

68

 

IN WITNESS
WHEREOF the Parties have executed this agreement the
day and year first above written.

 

	
  SIGNED
  by   /s/

  	
  )

  	
   /s/ S. Rombotis

  	
   

  
	
  for and on
  behalf of

  	
  )

  	
   Spiro G. Rombotis

  
	
  CYCLACEL
  LIMITED

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SIGNED
  by   /s/

  	
  )

  	
   /s/ John P. McLaughlin

  	
   

  
	
  for and on
  behalf of

  	
  )

  	
   John P. McLaughlin

  
	
  CORGENTECH,
  INC.

  	
  )

  	
   

  

 

 

[ * ]=
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

69

 

SCHEDULE 1

Part 1 CYCLACEL PATENT RIGHTS [ * ]

[ * ]

 

 

Part 2 [ * ]

[ * ]

 

 

[
* ]= CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

SCHEDULE
2

RESEARCH PROGRAM

 

[
* ]

 

[
* ]= CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

SCHEDULE 3

DEVELOPMENT PROGRAM

 

[ * ]

 

[ * ]= CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

SCHEDULE 4

SUPPLY TERMS

 

 

1.                                      Delivery
will be by courier to Corgentech’s address.

 

2.                                      Risk
and title of each batch will pass on [
* ].

 

3.                                      Subject
to the provisions of Schedule 2, the SC shall determine any additional
specifications for the Variant Peptides (which are reasonable and do not [ * ]) to be supplied to Corgentech
under the Research Program.

 

4.                                      Corgentech
will notify Cyclacel within [ * ]of
receipt of any batch if Corgentech believes it does not meet the specifications
for that batch.  If Corgentech so
notifies Cyclacel, the SC will determine the process for resolving any dispute
as to whether any batch Corgentech believes does not meet the relevant
specifications actually does meet the specifications established by the SC.
Cyclacel will supply to Corgentech with a conforming batch as soon as
reasonably practicable.

 

[
* ]= CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

SCHEDULE 5

NOTICES

 

 

Corgentech Inc.

650 Gateway Boulevard

South San Francisco

California 94080

United States

Attn: Chief Executive Officer

Phone: +1 (650) 624-9600

Fax: +1 (650) 624-7540

 

Cyclacel Limited

Dundee Technopole

James Lindsay Place

Dundee DD1 5JJ

Scotland

United Kingdom

Attn: Chief Executive Officer

Phone: 
+44 1382 206062

Fax: +44 1382 206067

 

[ * ]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

 

SCHEDULE
6

COUNTRIES FOR PATENT
FILING

Part A

 

[
* ]

 

Part
B

 

[
* ]

 

Part
C

 

[ * ]

 

[ * ]= CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

 

SCHEDULE 7

FORM OF PRESS RELEASE

 

	
  CONTACTS:

  	
   

  	
  RICHARD POWERS

  	
   

  	
  DARYL MESSINGER

  
	
   

  	
   

  	
  JENNIFER COOK WILLIAMS

  	
   

  	
   

  
	
   

  	
   

  	
  CORGENTECH

  	
   

  	
  WEISSCOM PARTNERS

  
	
   

  	
   

  	
  650-624-9600

  	
   

  	
  415-999-2361

  
	
  INVESTORS@CORGENTECH.COM

  	
   

  	
  DARYL@WEISSCOM.NET

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PAUL MCBARRON

  	
   

  	
  ROBERT GOTTLIEB

  
	
   

  	
   

  	
  CYCLACEL

  	
   

  	
  FEINSTEIN KEAN

  
	
   

  	
   

  	
   

  	
   

  	
  HEALTHCARE

  
	
   

  	
   

  	
  +44 (1382)
  206 062

  	
   

  	
  617-577-8110

  
	
  PMCBARRON@CYCLACEL.COM

  	
   

  	
  RGOTTLIEB@FKHEALTH.COM

  

 

 

CORGENTECH LICENSES NOVEL PEPTIDE DELIVERY
SYSTEM

FROM CYCLACEL TO ASSIST SYSTEMIC DELIVERY OF TF DECOYS

 

SOUTH SAN FRANCISCO, Calif., and DUNDEE,
United Kingdom – September X, 2004 –Corgentech Inc.
(Nasdaq: CGTK), a biotechnology company, and Cyclacel Group plc, a United
Kingdom-based biopharmaceutical company, announced today that Corgentech has
entered into an exclusive license to utilize Cyclacel’s Penetratin® Endonuclear
Delivery System for use with Corgentech’s transcription factor decoy (TF Decoy)
technology platform.  The Penetratin
system is a proprietary peptide with unique carrier properties for delivery into
cells.

 

Corgentech’s TF Decoy technology is a new class of therapeutics that
blocks the activity of multiple genes linked to a disease.  The company has developed a proprietary
method using controlled uniform pressure for efficient delivery of TF

 

 

Decoys into cells and tissues. 
Its lead product, edifoligide (E2F Decoy) is a novel and proprietary TF
Decoy delivered under pressure, which is in Phase 3 clinical trials for the
prevention of bypass vein graft failure.

 

“Penetratin peptides represent an exciting and versatile additional delivery technology that will help us to
expand the number of diseases addressable by our drugs,” said John McLaughlin,
Corgentech’s president and chief executive officer.

 

The license grants Corgentech use of Cyclacel’s Penetratin endonuclear
delivery technology with TF Decoys. 
Cyclacel will receive an up-front payment, milestone payments, and
royalties if licensed products are commercialized.  No further financial terms were disclosed.  Penetratin enables systemic cellular delivery
by chemically linking to TF Decoys, and actively transporting the TF Decoy
therapy into cells.  Corgentech will have
responsibility for the development and commercialization of TF Decoys combined
with a Penetratin peptide.

 

“We are pleased to work with Corgentech, a leader in
transcription factor
decoy technology, on this exciting
project.  Corgentech’s selection of our
Penetratin delivery technology to develop new generation transcription
factor decoys is a promising new
application.   We look forward to
working with further partners to realize the potential of our Penetratin
technology,” said Spiro Rombotis, Cyclacel’s chief executive officer.

 

ABOUT
PENETRATIN

 

Penetratin peptides are a family of short
proprietary peptides which enable the cellular delivery of biologics and small
molecules. Rapid clearance from serum, high labeling index and absence of
tissue specificity make Penetratin peptides efficient vehicles for
systemic delivery of therapeutics interacting with drug targets in the cellular
cytosol and nucleus. Penetratin peptides are useful as conjugates with small
molecules and biologics, such as antisense, siRNA,

 

 

oligonucleotides and other payloads for therapeutic
delivery and for target validation. Penetratin peptides and conjugates are the
subject of pending and granted patent applications including US 6,080,724; US
5,888,762; EP 485578B1 and US 6,472,507.

 

ABOUT
CYCLACEL

 

Cyclacel
is a biopharmaceutical company dedicated to the discovery, development and
commercialization of novel, mechanism-targeted drugs to treat human cancers and
other serious disorders.  The company is
currently evaluating two compounds in clinical studies.  CYC202, a Cyclin Dependent Kinase inhibitor
in Phase II clinical trials for Non-Small Cell Lung cancer and in B cell
hematological malignancies and CYC682, an orally available nucleoside analog in
Phase Ib trials for cancer.  Cyclacel
also has seven programs in preclinical development.

 

ABOUT
CORGENTECH

 

Corgentech is a
biopharmaceutical company engaged in the discovery, development and
commercialization of a new class of therapeutics called transcription factor
decoys, or TF decoys.  Corgentech is
creating a pipeline of novel therapeutics based on its proprietary TF decoy
technology, focused initially on the treatment of cardiovascular disease, inflammatory
disease, such as arthritis and dermatitis, and cancer.  For more information on the company and its
technology, visit www.corgentech.com.

 

Corgentech
Forward-Looking Statements

 

This press release contains forward-looking statements, including without
limitation all statements related to our clinical trials, delivery of
transcription factor decoys into cells and product candidates.  Words such as “believes,” “anticipates,”
“plans,” “expects,” “intend,” “will,” “slated,” “goal” and similar expressions
are intended to identify forward-looking statements.  These forward-looking statements are based

 

 

upon our current expectations. 
Forward-looking statements involve risks and uncertainties.  Our actual results and the timing of events
could differ materially from those anticipated in such forward-looking
statements as a result of these risks and uncertainties, which include, without
limitation, risks related to the development of 
TF Decoys, progress, timing and results of our clinical trials, intellectual
property matters, difficulties or delays in obtaining regulatory approval,
manufacturing our lead product candidate, competition from other pharmaceutical
or biotechnology companies, our ability to obtain additional financing to
support our operations and other risks detailed in our filings with the
Securities and Exchange Commission, including our Annual Report on Form 10-K
for the year ended December 31, 2003 and our Quarterly Report on Form 10-Q for
the quarter ended June 30, 2004 You are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the date of this
press release. All forward-looking statements are qualified in their entirety
by this cautionary statement, and Corgentech undertakes no obligation to revise
or update any forward-looking statements to reflect events or circumstances
after the date hereof.

 

 

[
* ]= CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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