Document:

Exhibit 10.66

 

CONFIDENTIAL TREATMENT

 

FIRST

AMENDMENT

TO “ COLLABORATIVE

RESEARCH AND LICENSE AGREEMENT”

 

This First Amendment is dated 4th February 2002, and is made

between Cubist Pharmaceuticals, Inc. (“Cubist”), a Delaware corporation having its principal place of business at 65

Hayden Avenue, Lexington, Massachusetts 02421, U.S.A., and Novartis Pharma AG (“Novartis”),

a Swiss corporation having its principal place of business at Lichtstrasse 35,

CH-4002 Basel, Switzerland,.

 

WHEREAS Cubist and Novartis are parties to a Collaborative

Research And License Agreement, dated 4th February, 1999 (hereafter the “Agreement”);

 

WHEREAS Cubist and Novartis wish to amend the Agreement in accordance

with the terms and conditions of this First Amendment.

 

THEREFORE, Cubist and Novartis agree as follows:

 

1.                                      In

Section 2.1 (“General”) the second sentence shall be amended to read as

follows: “The Research Program will have a term of [*] years, unless terminated

earlier pursuant to Article 12.”

 

2.                                      In

Section 8.1 (“Funding of the Research Program by Novartis”) a second

paragraph shall be added as follows:

 

„In consideration of Cubist’s performance

of its obligations under the Research Program in the [*], Novartis will pay

Cubist Two Million Five Hundred Fifty Thousand U.S. Dollars ($2,550,000) during

[the fourth Research Year]*.  Such

funding represents support for [*] full-time Cubist employees during the [*] at

a cost of [*] per full-time employee. 

The amount payable for the [*] shall be paid in advance by certified or

bank check or wire transfer in United States dollars in four equal payments to

be paid quarterly upon presentation of an invoice by Cubist. (each such payment

referred to as a “Research Funding Payment”). Research Funding Payments shall

be made no later than (a) by the [*] business day of each [*] of the [*] or (b)

[*] days after receipt of the corresponding invoice, whichever is the later.

Research Funding Payments for the [*] shall not be credited against [*]

payments due Cubist under Sections 8.2 through 8.4 below:”

 

3.                                      In

Section 8.3.1 (“Technology Transfer Milestone Payments”) the

half-sentence “provided however, that in no event shall Novartis be

required to pay Cubist under this Section 8.3 more than One Million Five

Hundred Thousand U.S. Dollars ($1,500,000)” shall be deleted and replaced and

superseded by the following:

 

“provided

however, that in no event shall Novartis be required to pay Cubist

under this Section 8.3.1 more than Two Million U.S. Dollars ($2,000,000)”.

 

4.                                      Section

12.1.1 („Expiration of the Research Program”) shall be

deleted and be replaced and superseded in its entirety by the following:

 

*Confidential Treatment Requested.  Omitted portions filed with the Commission.

 

 

„Unless this Agreement is sooner terminated in

accordance with the provisions of this Article 12, the term of the Research

Program shall expire upon the completion of four (4) Research Years”

 

5.                                      In Section

13.4 („Notices”), the part entitled „If to Cubist” shall be be deleted and

be replaced and superseded in its entirety by the following:

 

„If to Cubist:                                                                            Cubist Pharmaceuticals, Inc.

65 Hayden Avenue

Lexington, Massachusetts 02421

Fax:  (781) 861-0566

Attention: Vice President, Research

With a copy to:  Contracts Manager”

 

6.                                      All

other provisions of the Agreement shall remain unchanged and shall continue to

be in full force and effect.

 

7.                                      This First Amendment will form an integral

part of the Agreement.

 

IN WITNESS WHEREOF, the

Parties have executed this Agreement as of the dates indicated below.

 

 

	

  CUBIST PHARMACEUTICALS, INC.

  	

   

  	

  NOVARTIS PHARMA AG

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  By:

  	

     /s/

  G.H. Shimer, Jr.

  	

   

  	

  By:

  	

     /s/ Paul P. Herrling

  	

   

  	

  /s/ Siegward Stru

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Name:

  	

     GH

  Shimer Jr.

  	

   

  	

  Name:

  	

     Prof. P Herrling

  	

   

  	

  Siegward

  Strub, P.h.D

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Title:

  	

  VP, Research

  	

   

  	

  Title:

  	

  Head of Research

  	

  BD&L, Head Research Liaison

  
	

   

  	

   

  	

   

  	

   

  	

  Novartis Pharma

  AG

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

  WSJ 386.13.06

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

  CH-4002

  Basel/Switzerland

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Date:

  	

     1/31/02

  	

   

  	

  Date:

  	

      7/02/02

  	

   

  
										

 

 

*Confidential Treatment Requested. 

Omitted portions filed with the Commission.

 

2Exhibit

10.3

 

CONFIDENTIAL TREATMENT

 

LICENSE AGREEMENT

 

This LICENSE AGREEMENT (this “Agreement”)

effective as of July 31, 2002 (the “Effective  Date”), is between CUBIST

PHARMACEUTICALS, INC., a corporation organized and existing under

the laws of Delaware (together with its Affiliates (as defined below) referred

to herein as “CUBIST”) and BIOCHEMIE GMBH, a corporation organized and

existing under the laws of Austria (together with its Affiliates referred to

herein as “BIOCHEMIE”). BIOCHEMIE and CUBIST are sometimes hereinafter

referred to each as a “Party” and collectively as the “Parties.”

 

WITNESSETH:

 

WHEREAS, BIOCHEMIE has developed a

proprietary compound known as CAB-175 using BIOCHEMIE Know-How (as defined

below) and has rights to BIOCHEMIE Patent Rights (as defined below); and

 

WHEREAS, CUBIST desires to obtain a license

under the BIOCHEMIE Patent Rights and BIOCHEMIE Know-How upon the terms and

conditions set forth herein for purposes of developing and commercializing

CAB-175 and certain other compounds in the Territory (as defined below), and

BIOCHEMIE desires to grant such a license.

 

NOW, THEREFORE, in consideration of the

foregoing premises and the mutual covenants herein contained, the Parties

hereby agree as follows:

 

ARTICLE I

DEFINITIONS

 

Unless specifically set forth to the contrary herein,

the following terms, whether used in the singular or plural, shall have the

respective meanings set forth below:

 

1.1         “Abandoned Product” shall have the

meaning set forth in Section 3.5(b).

 

1.2           “Affiliate” shall mean,

with respect to any Person,  (i) any

other Person of which fifty percent (50%) or more of the securities or other

ownership interests representing the equity, the voting stock or general

partnership interest are owned, controlled, or held, directly or indirectly by,

or under common ownership or control with, such Person; or (ii) any other

Person that, directly or indirectly, owns, controls, or holds fifty percent

(50%) or more of the securities or other ownership interests representing the equity,

the voting stock or, if applicable, the general partnership interest, of such

Person.

 

1.3         “Agreement” shall have the meaning set

forth in the preamble.

 

*    Confidential Treatment

Requested.  Omitted portions filed with

the Commission.

 

 

1.4           “BIOCHEMIE Improvement”

shall mean any improvement or enhancement in or to (i) the manufacture,

formulation, ingredients, preparation, presentation, means of delivery, dosage

or packaging of Licensed Products or (ii) any invention that is necessary or

useful in connection with the research, development, manufacture, marketing,

promotion, use, sale, import or export of Licensed Products, which improvement

or enhancement is owned or licensed by BIOCHEMIE at any time during the term of

this Agreement.

 

1.5         “BIOCHEMIE Indemnitees” shall have the

meaning set forth in Section 7.2.1.

 

1.6         “BIOCHEMIE Inventions” shall have the

meaning set forth in Section 8.1.

 

1.7         “BIOCHEMIE Joint Patent Rights” shall

mean all of BIOCHEMIE’s right, title and interest in and to the Joint Patents.

 

1.8           “BIOCHEMIE Know-How”

shall mean all information and materials including, but not limited to,

discoveries, BIOCHEMIE Improvements, processes, formulas, data, inventions,

know-how and trade secrets, patentable or otherwise, that (i) at any time

during the term of this Agreement are owned by BIOCHEMIE or that BIOCHEMIE,

through license or otherwise, has or acquires rights, in each case that are

capable of being licensed or sublicensed to CUBIST, (ii) are not generally

known and are not disclosed in any published BIOCHEMIE Patents, and (iii) are

necessary or useful in connection with the research, development, manufacture,

marketing, promotion, use, sale, import or export of Licensed Products,

including, without limitation, all data and information regarding the safety

and efficacy of Licensed Products.

 

1.9           “BIOCHEMIE Patents”

shall mean any and all patents, patent applications, utility models and

supplementary protection certificates (which for the purposes of this Agreement

shall be deemed to include certificates of invention and applications for

certificates of invention) that during the term of this Agreement are owned by

BIOCHEMIE or to which BIOCHEMIE through license or otherwise has or acquires

sublicenseable rights, in each case that are capable of being licensed or

sublicensed to CUBIST, and that: (i) claim the structure or composition of any

Licensed Products or claim any method of use of any Licensed Products; (ii)

claim any invention necessary or useful in connection with the research,

development, manufacture, marketing, promotion, use, sale, import or export of

Licensed Products, including, without limitation, all data and information

regarding the safety and efficacy of Licensed Products; (iii) claim BIOCHEMIE

Improvements; (iv) are divisions, continuations, continuations-in-part,

reissues, renewals, extensions, supplementary protection certificates, utility,

models and the like of any patents and patent applications claiming any of the

items referred to in the foregoing clauses (i)-(iii); or (v) are foreign

equivalents or counterparts of any patents or patent applications filed in any

country and claiming any of the items referred to in the foregoing clauses

(i)-(iii) or are foreign equivalents or counterparts of any of the items referred

to in the foregoing clause (iv). 

Notwithstanding the foregoing, the term “BIOCHEMIE Patents” shall not

include any Joint Patents. Without limiting the generality of any of the

foregoing, Schedule  1 sets forth a list of all BIOCHEMIE Patents

as of the Effective Date.

 

2

 

1.10       “BIOCHEMIE Retained Manufacturing Rights”

shall have the meaning set forth in Section 3.2 hereof.

 

1.11       “BIOCHEMIE Retained Research Rights”

shall have the meaning set forth in Section 3.2 hereof.

 

1.12         “BIOCHEMIE Retained

Rights” shall mean both the BIOCHEMIE Retained Manufacturing Rights and the

BIOCHEMIE Retained Research Rights.

 

1.13         “BIOCHEMIE Similar

Compound” shall mean (i) any cephalosporin compound that is listed on Schedule

2, (ii) any cephalosporin compound that meets the criteria set forth on Schedule

3 and that is either owned or licensed by BIOCHEMIE or (iii) any

pharmaceutical composition containing any of the items referred to in the

foregoing clauses (i) and (ii).

 

1.14         “BIOCHEMIE Trademark”

shall mean any registered or unregistered trademark or service mark owned or

licensed by BIOCHEMIE for use or proposed use in conjunction with Licensed

Products, including, without limitation, any trademark or service mark that

BIOCHEMIE has applied to register, or applies to register, anywhere in the

Territory in connection with Licensed Products.  Without limiting the generality of the foregoing, Schedule

4 sets forth a list of all BIOCHEMIE Trademarks as of the Effective Date.

 

1.15         “Calendar Quarter” shall

mean a period of three (3) consecutive calendar months ending on March 31, June

30, September 30 or December 31.

 

1.16         “Calendar Year” shall

mean a period of twelve (12) consecutive calendar months commencing on January

1 and ending on December 31.

 

1.17       “Code” shall have the meaning set forth

in Section 9.5(d).

 

1.18         “Combination Product”

shall mean (i) any product or pharmaceutical composition consisting of, among

other things, at least two distinct active pharmaceutical ingredients, one of

which shall be a Licensed Product or (ii) two or more products or

pharmaceutical compositions that are marketed and sold together in the same

package,

 

3

 

where at least one of such products or pharmaceutical

compositions is a Licensed Product and at least one of the other products or

pharmaceutical compositions are not Licensed Products (including, without

limitation, (1) a pharmaceutical composition containing an active

pharmaceutical ingredient distinct from the active pharmaceutical ingredient of

such Licensed Product, (2) a delivery device or (3) a delivery system).

 

1.19       “Compound” shall mean CAB-175, the

structure of which is set forth in Schedule  5.

 

1.20       “CUBIST” shall have the meaning set forth

in the preamble.

 

1.21       “CUBIST Indemnitees” shall have the

meaning set forth in Section 7.2.2.

 

1.22       “CUBIST Inventions” shall have the

meaning set forth in Section 8.1.

 

1.23       “Default Major Market

Countries” shall have the meaning set forth in Section 9.4(a).

 

1.24         “Directly Competitive

Product” shall mean any cephalosporin antibiotic in any formulation for

intravenous delivery that (i) is developed, marketed and sold for systemic

delivery by BIOCHEMIE or its sublicensees and (ii) is directly competitive

against any Licensed Product under development or being commercialized by

CUBIST or its sublicensees.

 

1.25       “Dispute Notice” shall have the meaning

set forth in Section 10.1.

 

1.26       “Effective Date” shall have the meaning

set forth in the preamble.

 

1.27       “FDA” shall mean the United States Food

and Drug Administration.

 

1.28         “Generic Product” shall

mean, with respect to any country within the Territory, any product or

pharmaceutical composition that can be sold or otherwise commercialized in such

country by any Person that does not [*] in such country, and where the sale or

other commercialization of such product or pharmaceutical composition in such

country by such Person does not [*], including, without limitation, the [*].

 

1.29       “ICC” shall have the meaning set forth in

Section 10.2(a).

 

4

 

1.30       “ICC Rules” shall have the meaning set

forth in Section 10.2(a).

 

1.31       “Intravenous Licensed Product” shall mean

any Licensed Product formulated for intravenous delivery.

 

1.32       “Japan License” shall have the meaning

set forth in Section 3.3.

 

1.33         “Joint Development

Committee” shall mean the committee established pursuant to the Manufacturing

and Supply Agreement.

 

1.34       “Joint Inventions” shall have the meaning

set forth in Section 8.1.

 

1.35         “Joint Patents” shall

mean any and all patents, patent applications, utility models and supplementary

protection certificates (which for the purposes of this Agreement shall be

deemed to include certificates of invention and applications for certificates

of invention) that: (i) claim Joint Inventions; (ii) are divisions,

continuations, continuations-in-part, reissues, renewals, extensions,

supplementary protection certificates, utility, models and the like of any patents

and patent applications claiming Joint Information and Inventions; or (iii) are

foreign equivalents or counterparts of any patents or patent applications filed

in any country and claiming Joint Inventions or are foreign equivalents or

counterparts of any of the items referred to in the foregoing clause (ii).

 

1.36         “Licensed Product(s)”

shall mean any one or more of the following: (i) Compound, (ii) any BIOCHEMIE

Similar Compound, (iii) any improvement of Compound or of any BIOCHEMIE Similar

Compound [*] or (iv) any pharmaceutical composition containing any of the items

referred to in the foregoing clauses (i)-(iii).  Each distinct formulation (including, but not limited to, any

formulations in the form of solution for injection, oral suspension and oral solid

dosage form) of any of the items referred to in the foregoing clauses (i)-(iv)

shall be treated as a separate Licensed Product.  Without limiting the generality of the foregoing, an oral

formulation of any of the items referred to in the foregoing clauses (i)-(iv)

shall be a Licensed Product.  CUBIST’s

rights to develop and commercialize BIOCHEMIE Similar Compounds shall be

subject to the limitations set forth in Section 3.5(a) hereof and CUBIST’s

rights to commercialize Oral Licensed Products shall be subject to the

limitations set forth in Section 3.5(c) hereof.

 

1.37       “Losses” shall have the meaning set forth

in Section 7.2.1.

 

1.38       “Major Market Countries” shall mean

France, Germany, Italy, United Kingdom and United States.

 

5

 

1.39         “Manufacturing and Supply

Agreement” shall mean a Manufacturing and Supply Agreement to be negotiated and

executed by the Parties after the Effective Date, pursuant to which, among

other things, BIOCHEMIE shall agree to manufacture and supply to CUBIST, and

CUBIST shall agree to purchase from BIOCHEMIE, Licensed Products, all upon such

terms and conditions as shall be mutually satisfactory to CUBIST and BIOCHEMIE

and set forth in such Manufacturing and Supply Agreement.

 

1.40       “NDA” shall mean a New Drug Application

filed in the United States.

 

1.41         “Net Sales” shall mean

the aggregate gross sales actually received by CUBIST or sublicensees from

sales of a Licensed Product sold directly by CUBIST or sublicensees to an

independent third party that is not an Affiliate or sublicensee after

deducting, if not previously deducted, from the amount received:

 

(a)           trade and quantity

discounts in amounts customary in the trade and as required to do business in

the Territory;

 

(b)           returns, rebates and

allowances in amounts customary in the trade and as required to do business in

the Territory;

 

(c)           chargebacks paid on

sale or dispensing of Licensed Product; and

 

(d)           sales or excise taxes,

transportation, insurance charges, custom duties and other governmental

charges.

 

For purposes of this Agreement, independent third

party distributors of CUBIST shall not be deemed to be sublicensees.

 

In the event that a Licensed Product is sold as a

component of a Combination Product, then Net Sales shall be determined by

multiplying the Net Sales of the Combination Product by the fraction A/(A+B)

where A  equals the average selling price of such Licensed Product

sold separately in finished form and B  equals the aggregate

average selling price of the relevant other product sold separately in finished

form, in  each  case in the relevant country in which sales

were made.  In the event that no

separate sale of either Licensed Product or the relevant other product is made

during the applicable royalty reporting period and in the relevant country in

which the sale of the Combination Product was made, then Net Sales shall be

determined by multiplying the Net Sales of the Combination Product by a

fraction (C/(C+D)), where C  equals CUBIST’s standard

fully-absorbed cost of Licensed Product and D  equals the standard

fully-absorbed cost of the relevant other product, in  each  case

determined in accordance with United States generally accepted accounting

principles for the relevant country in which sales were made.  If the relevant other product is sold

separately in finished form and Licensed Product is not, then Net Sales shall

be determined by multiplying the Net Sales of the Combination Product by the

fraction (E – B)/E, where E  equals the average selling price of

the Combination Product for the country in which sales were made.

 

6

 

1.42         “Oral Licensed

Product(s)” shall mean any Licensed Product that is formulated to be orally

bioavailable (including, without limitation, in oral suspension form or oral

solid dosage form) or that is administered to the intended patient population

orally.

 

1.43       “Party” shall have the meaning set forth

in the preamble.

 

1.44         “Person” shall mean any

individual, entity, association, corporation, partnership, limited liability

company, government (or agency or subdivision thereof), trust, joint venture,

or proprietorship.

 

1.45         “Proprietary Information”

shall mean all inventions, discoveries, improvements, processes, formulas,

materials, know-how and trade secrets, and all other scientific, clinical,

regulatory, marketing, financial and commercial information or data, whether

communicated in writing or orally or by sensory detection, which is provided

by, or on behalf of, one Party to the other Party in connection with this

Agreement or the Manufacturing and Supply Agreement.

 

1.46       “Section 3.3 CUBIST License” shall have

the meaning set forth in Section 3.3.

 

1.47       “Section 5.5(a) Claim” shall have the

meaning set forth in Section 5.5(a).

 

1.48         “Territory” shall mean

all countries of the world; provided, however, that in the event

that BIOCHEMIE terminates the Japan License pursuant to, and in accordance

with, the provisions of Section 3.3, then the term “Territory” shall not

include Japan.

 

1.49       “TM Infringement” shall have the meaning

set forth in Section 8.9.

 

1.50         “Valid Claim” shall mean

(i) an unexpired claim of an issued patent within BIOCHEMIE Patents which has

not been found to be invalid or unenforceable by a court or other authority in

the subject country, from which decision no appeal is taken or can be taken; or

(ii) a claim of a pending patent application within the BIOCHEMIE Patents,

which patent application claims a first priority no more than ten (10) years

prior to the date upon which pendency is determined.

 

7

 

ARTICLE

II

TRANSFER

OF KNOW-HOW AND INFORMATION; TECHNICAL ASSISTANCE

 

2.1           Transfer

of Know-How and Information.

 

(a)           [*] days of the

Effective Date, BIOCHEMIE shall provide CUBIST with a written report setting

forth a summary and status of all BIOCHEMIE Patents and all BIOCHEMIE Know-How

as of such date.  Thereafter, on [*] of

each calendar year during the term of this Agreement, BIOCHEMIE shall provide

CUBIST with a written report setting forth a summary and status of (i) all

additional BIOCHEMIE Know-How that BIOCHEMIE may develop or acquire or that

BIOCHEMIE has not previously disclosed to CUBIST pursuant to this Section

2.1(a) and (ii) all BIOCHEMIE Patents that have not been previously disclosed

to CUBIST pursuant to this Section 2.1(a). 

Promptly after BIOCHEMIE discloses to CUBIST any BIOCHEMIE Patents

pursuant to this Section 2.1(a) that are not listed on Schedule 1 to

this Agreement, CUBIST and BIOCHEMIE agree to execute and deliver to each other

a written instrument listing or otherwise identifying such BIOCHEMIE Patents

and [*] or [*] listed or otherwise identified in such written instrument [*]

for all purposes of this Agreement.  From

time to time during the term of this Agreement (but in no event less frequently

than on [*] of each calendar year), BIOCHEMIE shall provide CUBIST with a

written report detailing the activities undertaken by BIOCHEMIE, and the

results obtained from such activities, in connection with the exercise by

BIOCHEMIE of the [*].  At any time

during the term of this Agreement, upon request by CUBIST, BIOCHEMIE shall

deliver to CUBIST or its designee copies of all [*] or its agents with respect

to those [*] specified by CUBIST in such request, and copies of all [*] that

are useful or necessary to enable CUBIST to practice and use the [*] specified

in such request.  From time to time

during the term of this Agreement, BIOCHEMIE shall also take such actions, and

deliver to CUBIST such [*]] as CUBIST may reasonably request for purposes of

effectively [*] specified or identified [*] in such request.  Notwithstanding anything expressed or

implied in this Section 2.1(a) to the contrary, [*] under this Section 2.1(a)

to [*] any [*] that pertains solely to the [*] [*] to [*] that pertains solely

to the [*] only if and to the extent that such [*] is required pursuant to [*].

 

(b)           BIOCHEMIE will, as soon

as reasonably practicable after the Effective Date but in no event later than

[*] days after the Effective Date, provide CUBIST copies of all regulatory

filings, and the results of all clinical and non-clinical testing of Licensed

Products performed by or on behalf of BIOCHEMIE.  On an ongoing basis during the term of this Agreement, BIOCHEMIE

will provide to CUBIST (i) all information in BIOCHEMIE’s possession regarding

pre-clinical testing and clinical testing performed or to be performed by or on

behalf of BIOCHEMIE with respect to the Licensed Products (including, without

limitation, information concerning the design and plans with respect to such

pre-clinical testing or clinical testing) as such information becomes

available, (ii) the results of all clinical and non-clinical testing performed

by or on behalf of BIOCHEMIE with respect to the Licensed Products as such

information becomes available, (iii) all

 

8

 

information in

BIOCHEMIE’s possession regarding Licensed Products necessary or useful for

making regulatory filings in the Territory with respect to Licensed Products as

such information becomes available, and (iv) copies of all regulatory filings

made by or on behalf of BIOCHEMIE with respect to Licensed Products promptly

after such regulatory filings are made. 

CUBIST shall have a right of access, a right of reference and the right

to use and incorporate all information provided to it pursuant to this

subparagraph (b) in its applications for regulatory approvals of Licensed

Products within the Territory and for all other purposes related to the

research, development, manufacture, use and commercialization of Licensed

Products.

 

(c)           Notwithstanding

anything expressed or implied in the foregoing provisions of this Section 2.1

to the contrary, nothing in this Section 2.1 or elsewhere in this Article II

are intended to diminish the scope of the exclusive rights licensed by

BIOCHEMIE to CUBIST pursuant to Article III below or to suggest that, from and

after the Effective Date, BIOCHEMIE retains any rights to research, develop,

seek regulatory approval for, manufacture, use or commercialize any Licensed

Product, other than the BIOCHEMIE Retained Rights.

 

2.2           BIOCHEMIE Assistance.  During the term of this Agreement, BIOCHEMIE

shall provide CUBIST with reasonable access to consult with pertinent BIOCHEMIE

employees (including, but not limited to, [*] that have had prior experience

working with any Licensed Products or any BIOCHEMIE Similar Compound.  Except for participation in the Joint

Development Committee, such consultations shall occur at the request of CUBIST,

provided that it is at a mutually agreeable time and place. CUBIST shall

be required to pay all reasonable out-of-pocket expenses incurred by BIOCHEMIE

personnel in connection with any such consultations.  The subject matter and scope of such consultations shall be

defined jointly by CUBIST and BIOCHEMIE and shall in any event allow CUBIST to

take advantage of such pertinent BIOCHEMIE employees’ expertise and resources

for purposes of assisting CUBIST in the research, development, manufacture,

use, marketing, promotion, sale and other commercialization of Licensed

Products.

 

2.3           Health Hazards.  BIOCHEMIE will notify CUBIST immediately of

any material health hazards with respect to Licensed Products that may impact

employees involved in the research, development, manufacture, production or

supply of Licensed Products.

 

2.4           English Language.

All disclosures or information delivered or made available by either Party or

its employees and agents to the other Party and its employees or agents

pursuant to this Article II or any of the other provisions of this Agreement or

the Manufacturing and Supply Agreement shall be made in English.

 

9

 

ARTICLE III

LICENSE; RETAINED RIGHTS; DILIGENCE; RIGHT OF FIRST

NEGOTIATION

 

3.1           License Grant.  Subject to the terms and conditions of this

Agreement (including, without limitation, the rights retained by BIOCHEMIE

pursuant to Sections 3.2 and 3.3 below and the limitations set forth in Section

3.5 below on certain of the rights granted to CUBIST in this Section 3.1),

BIOCHEMIE hereby grants to CUBIST the exclusive right and license (even as to

BIOCHEMIE), including the right to sublicense, under the BIOCHEMIE Patents, the

BIOCHEMIE Know-How and the BIOCHEMIE Joint Patent Rights to research, develop,

make, have made, use, promote, market, sell, offer to sell, import or export

Licensed Products in the Territory for any and all purposes and uses.  Notwithstanding the grant by BIOCHEMIE of

the foregoing license, BIOCHEMIE retains the BIOCHEMIE Retained Rights.  CUBIST may grant sublicenses of the rights

licensed to CUBIST pursuant to this Section 3.1.  It is understood that this Section 3.1 does not provide for the

license to CUBIST of any rights that a third party may own in or to a BIOCHEMIE

Similar Compound and that have not been licensed by such third party to

BIOCHEMIE; provided,  however, that such third party has not

acquired such rights from BIOCHEMIE in violation of the rights granted by

BIOCHEMIE to CUBIST pursuant to this Section 3.1.

 

3.2           Certain Research and

Manufacturing Rights Retained by BIOCHEMIE.  Notwithstanding the license granted pursuant to Section 3.1

above, BIOCHEMIE shall retain those rights under the BIOCHEMIE Patents, the

BIOCHEMIE Know-How and the BIOCHEMIE Joint Patent Rights as may be necessary to

perform BIOCHEMIE’s obligations under the Manufacturing and Supply Agreement,

including, without limitation, (i) the right to engage in technical development

relative to chemical, analytical and method validation in order to enable the

manufacture of Licensed Products pursuant to the Manufacturing and Supply

Agreement in conformity with good manufacturing practices and (ii) the right to

manufacture Licensed Product pursuant to, and in accordance with, the

Manufacturing and Supply Agreement (collectively, the “BIOCHEMIE  Retained

Manufacturing  Rights”). 

In addition, BIOCHEMIE shall retain those rights under the BIOCHEMIE

Patents, the BIOCHEMIE Know-How and the BIOCHEMIE Joint Patent Rights as may be

necessary to allow BIOCHEMIE to engage only in [*] (the “BIOCHEMIE  Retained

Research  Rights”).  In no

event shall the BIOCHEMIE Retained Research Rights include the right of

BIOCHEMIE to engage in [*].  BIOCHEMIE

shall exercise the BIOCHEMIE Retained Manufacturing Rights pursuant to, and in

accordance with, the Manufacturing and Supply Agreement.  The right of BIOCHEMIE to exercise the

BIOCHEMIE Retained Research Rights shall be co-exclusive with the right of

CUBIST, pursuant to Section 3.1 above, to engage in research and preclinical development

of Licensed Products.  BIOCHEMIE may not

sublicense or assign any of the BIOCHEMIE Retained Research Rights or, except

to the extent otherwise provided in the Manufacturing and Supply Agreement, any

of the BIOCHEMIE Retained Manufacturing Rights.

 

3.3           Retained Rights to

Japan. BIOCHEMIE shall have the right to terminate the license granted to

CUBIST pursuant to Section 3.1 with respect to Japan only (such license to be

referred to as the “Japan  License”), if and only if, on or prior

to December 31, 2002, BIOCHEMIE shall give written notice to CUBIST that

BIOCHEMIE elects to terminate the Japan License.  From and after the date CUBIST receives such notice (provided

such date is no later than December 31, 2002), the Japan License shall be

terminated, Japan

 

10

 

shall not be included in

the Territory and any reference in this Agreement or in the Manufacturing and

Supply Agreement to the term “Territory” shall be deemed to be a reference to

all of the countries of the world except Japan.  In the event that the Japan License is terminated pursuant to,

and in accordance with, the provisions of this Section 3.3, [*], by giving

written notice to [*] within [*] of the termination of the Japan License, a [*]

during the period commencing on the Effective Date and ending on the effective

date of [*] and that are necessary and useful to the [*] (the “Section  3.3

CUBIST  License”).  Upon

CUBIST’s receipt of such written notice, [*] shall negotiate in good faith for

a period not to exceed [*] days to see if the Parties can agree upon mutually

satisfactory terms for the [*].  In the

event that [*] in accordance with the foregoing provisions of this Section 3.3,

the Parties shall, within [*] days after such termination, [*] during the

period commencing on [*] and ending on the effective date of the termination of

the Japan License (including, without limitation, [*] and that is [*] to the

[*] of Licensed Products [*].  The [*]

shall occur regardless of whether [*] for the [*] of the [*].  Following the [*], the Parties shall, from

time to time during the term of this Agreement, [*] as promptly as practicable

all [*] within the Parties’ [*] that was [*] and that is [*] to the [*] of Licensed

Products [*].  Any such [*] for such

[*].  At any time during the term of

this Agreement, the Parties may reach agreement on [*] within the Parties’

respective [*] and that is [*] to the [*] of Licensed Products [*].  Any such [*] by the Parties shall be [*].

 

3.4           CUBIST’S Right to

Abandon Licensed Products.   CUBIST

shall have the right to abandon research, development or commercialization of

any Licensed Product because of [*]. 

CUBIST shall not exercise its right to abandon research, development or

commercialization of any Licensed Product because of the lack of [*] until

[*].   CUBIST shall exercise its rights

under this Section 3.4 to abandon research, development or commercialization of

any Licensed Product by giving written notice of such abandonment at least [*]

days prior to the effective date of such abandonment specified in such written

notice.  In the event that CUBIST

exercises its right under this Section 3.4 to abandon research, development or

commercialization of any Licensed Product, then the license granted to CUBIST

pursuant to Section 3.1 shall terminate automatically with respect to such

abandoned Licensed Product only.

 

11

 

3.5           Limitation

on CUBIST’S Rights With Respect to Certain Licensed Products.

 

(a)           Notwithstanding any

provision in this Agreement to the contrary (including, without limitation, the

provisions of Section 3.1 above), CUBIST shall not have the right to develop or

commercialize any BIOCHEMIE Similar Compound unless otherwise provided in

Section 3.5(b) below.  The foregoing

limitation on CUBIST’s right to develop and commercialize BIOCHEMIE Similar

Compounds shall not imply or be construed as if BIOCHEMIE, other than in the

case of the BIOCHEMIE Retained Rights, were retaining any right to develop or

commercialize any BIOCHEMIE Similar Compounds. 

BIOCHEMIE hereby acknowledges and agrees that it has granted to CUBIST

an exclusive right and license to all BIOCHEMIE Similar Compounds and all other

Licensed Products pursuant to the provisions of Section 3.1 above and that,

although such exclusive right and license granted to CUBIST is, in the case of

BIOCHEMIE Similar Compounds, subject to the limitation set forth in the first

sentence of this Section 3.5(a), BIOCHEMIE nevertheless, except for the

BIOCHEMIE Retained Rights, does not retain any of the rights granted to CUBIST

pursuant to Section 3.1 above, including, without limitation, any of the rights

granted to CUBIST with respect to BIOCHEMIE Similar Compounds.

 

(b)           In the event that

CUBIST abandons a Licensed Product pursuant to, and in accordance with, the

provisions of Section 3.4 above (in each case, an “Abandoned  Product”),

then CUBIST shall be entitled to replace such Abandoned Product with a

BIOCHEMIE Similar Compound [*]. CUBIST shall exercise its right to replace an

Abandoned Product pursuant to this Section 3.5(b) by giving written notice to

BIOCHEMIE no later than [*] days after the abandonment of such Abandoned

Product, stating that CUBIST is exercising such right.  Within [*] days after receipt of such

written notice given by CUBIST, BIOCHEMIE shall [*] the [*].  Any such [*] shall be deemed to [*] made by

[*] that the [*].  At the time of such

[*] all of the [*] so [*].  Effective

immediately upon such [*] as the [*], such BIOCHEMIE Similar Compound shall

replace such Abandoned Product, the limitations set forth in the first sentence

of Section 3.5(a) on CUBIST’s right to develop and commercialize such BIOCHEMIE

Similar Compound shall terminate and CUBIST shall be entitled to exercise all

of the rights granted to it pursuant to Section 3.1 above with respect to such

BIOCHEMIE Similar Compound.  The Parties

hereby acknowledge that upon the abandonment by CUBIST of a BIOCHEMIE Similar

Compound selected pursuant to this Section 3.5(b), BIOCHEMIE may, subject to,

and in accordance with, the terms and conditions of Section 9.4(c), terminate

this Agreement.

 

(c)           Notwithstanding any

provision in this Agreement to the contrary (including, without limitation, the

provisions of Section 3.1 above), CUBIST shall not have the right to sell any

Oral Licensed Product unless and until the Parties, in accordance with the

provisions of Section 6.2 hereof, shall have negotiated in good faith the

[*].  The foregoing limitation on CUBIST’s

right to commercialize Oral Licensed Products shall not imply or be construed

as if BIOCHEMIE were

 

12

 

retaining any right to commercialize any Oral Licensed

Product.  BIOCHEMIE hereby acknowledges

and agrees that it has granted to CUBIST an exclusive right and license to all

Oral Licensed Products and all other Licensed Products pursuant to the

provisions of Section 3.1 above and that, although such exclusive right and

license granted to CUBIST is, in the case of Oral Licensed Products, subject to

the limitation set forth in the first sentence of this Section 3.5(c), [*]

nevertheless, except for the [*], does not [*], including, without limitation,

[*] with respect to Oral Licensed Products. 

In the event that CUBIST and BIOCHEMIE desire to collaborate in the

development of an Oral Licensed Product, then the Parties shall [*] in

connection with such [*] and shall enter into a mutually acceptable research

collaboration agreement that evidences such [*].

 

3.6           CUBIST Diligence.  Subject to, and in accordance with, the

terms and conditions of this Agreement and all requirements of applicable laws,

rules and regulations, CUBIST shall use commercially reasonable efforts to

research, develop, promote, market, sell, offer to sell and otherwise commercialize

one Licensed Product in the Major Market Countries.  The sole remedy of BIOCHEMIE for any breach by CUBIST of its

obligations under this Section 3.6 is to exercise BIOCHEMIE’s special

termination rights pursuant to Section 9.4 hereof.  Any abandonment by CUBIST of any Licensed Product pursuant to,

and in accordance with, the provisions of Section 3.4 hereof shall not be

deemed to constitute a breach of the provisions of this Section 3.6.

 

3.7           Right of First

Negotiation on Third Party Transactions.  

Subject to the limitation set forth below in this Section 3.7, in the

event that BIOCHEMIE intends to grant a license or sublicense (or to otherwise

transfer rights) to a third party to develop or commercialize a [*], BIOCHEMIE

shall so notify CUBIST [*] with [*] with respect to such license or sublicense

(or such other transfer of rights). If, within [*] days after CUBIST has

received such notice from BIOCHEMIE, CUBIST notifies BIOCHEMIE in writing that

it wishes to negotiate to obtain a license or sublicense (or otherwise acquire

rights to) such [*], then the [*] of [*]days to see if the [*] pursuant to

which BIOCHEMIE would license or sublicense (or otherwise transfer rights to)

such [*].  If BIOCHEMIE and CUBIST cannot

reach agreement on such terms within such [*] days, then [*] into [*] with [*],

and [*] with [*], for the grant of license or sublicense (or other transfer of

rights) to [*] to [*].  During the [*]

day period in which CUBIST and BIOCHEMIE are negotiating pursuant to this

Section 3.7, such [*] and [*] with [*] regarding the grant of a license or

sublicense (or other transfer of rights) to [*] to [*].  Notwithstanding anything expressed or

implied in the foregoing provisions of this Section 3.7, BIOCHEMIE shall not

have to comply with its obligations under this Section 3.7 at any time when (i)

CUBIST acknowledges in writing that it is in breach of its obligations under

Section 3.6 above, (ii) the arbitrators in any arbitration proceeding pursuant

to Section 10.2 or any court of competent jurisdiction determine that CUBIST is

in breach of its obligations under Section 3.6 above or (iii) CUBIST agrees to

waive its right of first negotiation under this Section 3.7.  The Parties acknowledge and agree that, notwithstanding

any of the provisions set forth above in this Section 3.7 to the contrary, (A)

BIOCHEMIE may [*] and [*] regarding the grant of a license or sublicense (or

other transfer of rights) to [*] or to any of its wholly owned subsidiaries to

[*] without having first to comply with the provisions of this

 

13

 

Section 3.7, and (B) BIOCHEMIE may grant a license or

sublicense (or otherwise transfer rights) to [*] to [*] if and to the extent

that such [*] is a Generic Product in such country.

 

3.8           Trademarks.  BIOCHEMIE hereby grants CUBIST an exclusive,

royalty-free license under its entire right, title and interest in and to the

BIOCHEMIE Trademarks, if any, to use and display the BIOCHEMIE Trademarks in

connection with the commercialization of Licensed Products within the

Territory.  CUBIST shall not use

BIOCHEMIE’s trade names and/or marks in a way which would be confusing or

otherwise adversely affect their value. 

CUBIST shall not be obligated to use BIOCHEMIE Trademarks, and shall be

free to select, create and use its own trade names and marks for its use, in

connection with the Licensed Products in the Territory.

 

3.9           Use of Name.  Neither Party shall use the other Party’s

name without the prior written consent of such other Party, which consent may

be given or withheld at such other Party’s sole discretion.

 

ARTICLE

IV

CONFIDENTIALITY

 

4.1           Nondisclosure

Obligation.  All Proprietary

Information disclosed by or on behalf of one Party to the other Party under

this Agreement or the Manufacturing and Supply Agreement shall be maintained in

confidence by the receiving Party and shall not be disclosed to a non-Party or

used for any purpose whatsoever without the prior written consent of the other

Party, except to the extent that such Proprietary Information:

 

(a)           is known by recipient

at the time of its receipt, and not through a prior disclosure by or on behalf

of the disclosing Party, as documented by contemporaneous business records;

 

(b)           is properly in the

public domain through no fault of the recipient;

 

(c)           is subsequently

disclosed to a receiving Party by a third party who may lawfully do so and is

not directly or indirectly under an obligation of confidentiality to the

disclosing Party, as documented by written business records in existence prior

to the receipt of such information from the disclosing Party;

 

(d)           is developed by the

recipient independently of, and without reference to or use of, Proprietary

Information received from the disclosing Party;

 

(e)           is required to be

disclosed to governmental or other regulatory agencies in order to obtain

patents, to obtain approval to conduct clinical trials or to market Licensed

Products, or to comply with applicable NASDAQ or Securities and Exchange

Commission regulations; provided  however, that such disclosure

may be only to the extent reasonably necessary to obtain patents or approval,

or to comply with regulations as appropriate and that confidential treatment

will be sought to the extent reasonably practicable;

 

14

 

(f)            is disclosed to actual

or potential permitted sublicensees or permitted assignees and/or other third

parties (1) for the purpose of conducting activities under this Agreement and

the Manufacturing and Supply Agreement (or for such actual or potential

permitted sublicensees or permitted assignees and/or other third parties to

determine their interest in performing such activities) in accordance with this

Agreement and the Manufacturing and Supply Agreement or (2) for the purpose of

allowing the Party making such disclosure to effectively exploit its rights

under this Agreement and the Manufacturing and Supply Agreement and obtain all

of the benefits under this Agreement and the Manufacturing and Supply Agreement

to which such Party is entitled as contemplated by this Agreement and the

Manufacturing and Supply Agreement, provided, however, that such

actual or potential permitted sublicencees or permitted assignees and/or other

third parties have agreed to be bound by confidentiality obligations

substantially equivalent to the terms herein for no less than five years from

the date of disclosure, and provided,  further, that,

notwithstanding the provisions set forth above in this subsection (f), CUBIST

shall not disclose to third party manufacturers any Proprietary Information of

BIOCHEMIE with respect to the manufacture of Licensed Products except to the

extent that such disclosure is permitted pursuant to the provisions of the

Manufacturing and Supply Agreement;

 

(g)           is disclosed to

employees, officers, directors, consultants, agents, investors or potential

investors of , or lenders or potential lenders to, the Party making such

disclosure, provided, however, that such employees, officers,

directors, consultants, agents, investors, potential investors, lenders and

potential lenders have agreed to be bound by confidentiality obligations

substantially equivalent to the terms herein for no less than five years from

the date of disclosure, and provided,  further, that,

notwithstanding the provisions set forth above in this subsection (g), neither

Party shall disclose Proprietary Information of the other Party to potential

investors or potential lenders except to the extent that such disclosure is

made in the context of such potential investors’ or potential lenders’ due

diligence investigation of the Party making such disclosure;

 

(h)           is used by the

receiving Party for the purpose of conducting activities under this Agreement

and the Manufacturing and Supply Agreement in accordance with their respective

terms or is used by the receiving Party for the purpose of allowing the

receiving Party to effectively exploit its rights under this Agreement and the

Manufacturing and Supply Agreement and obtain all of the benefits under this

Agreement and the Manufacturing and Supply Agreement to which such receiving

Party is entitled as contemplated by this Agreement and the Manufacturing and

Supply Agreement; or

 

(i)            is required to be

disclosed by law or court order, provided that notice is promptly

delivered to the other party in order to provide an opportunity to challenge or

limit the disclosure obligations, and provided  further that such 

 

15

 

disclosure may be only to

the extent reasonably necessary to comply with the applicable law or court

order.

 

4.2           No Disclosure of

Terms.  Either Party may disclose

the existence of this Agreement and the Manufacturing and Supply Agreement,

but, except to the extent otherwise provided below in this Section 4.2, neither

Party shall disclose the terms of this Agreement or the Manufacturing and

Supply Agreement without the prior written consent of the other Party.  Notwithstanding the foregoing, either Party

may disclose the terms of this Agreement or the Manufacturing and Supply Agreement

pursuant to the provisions of subparagraphs (b), (e), (f), (g) or (i) of

Section 4.1 to the same extent as if the terms of this Agreement or the

Manufacturing and Supply Agreement, as the case may be, were Proprietary

Information of the non-disclosing Party.

 

4.3           No Publication.  BIOCHEMIE shall not publish or present any

BIOCHEMIE Know-How or any of the inventions claimed under any BIOCHEMIE Patents

without the prior written consent of CUBIST, which consent shall not be

unreasonably withheld.  Nothing in this

Section 4.3 shall limit BIOCHEMIE’s ability to apply for any patent protection.

 

4.4           Press Releases, Etc.  Notwithstanding anything set forth in

Section 4.1, 4.2 or 4.3 above to the contrary, the Parties agree that any

publication, news release or other public announcement by either Party relating

to this Agreement or the Manufacturing and Supply Agreement or to the Parties

performance hereunder or thereunder, shall first be reviewed and approved by

the other Party, which approval shall not be unreasonably withheld or

delayed.  The foregoing provisions of

this Section 4.4 shall not apply to the extent that the application thereof

would prevent either Party from complying with any applicable law, provided

that such Party shall have used all reasonable efforts to comply with the

provisions of this Section 4.4 without violating such Party’s legal

obligations.  The provisions of this

Section 4.4 are not intended to narrow the scope of any of the obligations of the

Parties under Section 4.1, Section 4.2 or Section 4.3 above.  Each Party expects full compliance by the

other Party with all of the provisions of Section 4.1, Section 4.2 and Section

4.3 hereof in addition to compliance with the provisions of this Section 4.4,

if and to the extent applicable in any case.

 

ARTICLE

V

LICENSE

AND MILESTONE PAYMENTS

 

5.1           Consideration for

License.  In consideration for the

licenses granted to CUBIST under Article III, CUBIST shall, subject to the

provisions of Section 5.5(c) below, make a cash payment to BIOCHEMIE of

USD $1,500,000 million on the Effective Date of this Agreement.

 

5.2           Upfronts.

 

(a)           Subject to the terms

and conditions in this Agreement (including, without limitation, the provisions

of Sections 5.2(b), 5.2(c), 5.3 and 5.5 below), CUBIST

 

16

 

shall make cash payments to BIOCHEMIE in the

respective amounts set forth below upon the occurrence of the events set forth

below:

 

	

  Event

  	

   

  	

  Amount

  
	

   

  	

   

  	

   

  
	

  [*]

  (as further defined in Section 5.3 below)

  	

   

  	

  USD $[*]

  
	

   

  	

   

  	

   

  
	

  [*]

  (as further defined in Section 5.3 below)

  	

   

  	

  USD $[*]

  

 

(b)           CUBIST shall promptly

notify BIOCHEMIE in writing upon the occurrence of any of the events set forth

above in Section 5.2(a) above and CUBIST shall have [*] days to make the

corresponding payment due.  All payments

under this Section 5.2 shall be in United States dollars.

 

(c)           CUBIST shall make the

payments set forth in Section 5.2(a) only once upon the first occurrence of the

applicable event.  After the occurrence

of a given event and the payment required to be made by CUBIST pursuant to

Section 5.2(a) above in connection with the occurrence of such event, no

further payment shall be due or owed by CUBIST in connection with any

subsequent occurrence of such event, regardless of how many times the same

event occurs in connection with the same Licensed Product and regardless of how

many times the same event occurs with respect to different or multiple Licensed

Products.

 

5.3           Applicable Criteria

for the Occurrence of Certain Events.

 

(a)           For purposes of the

first event listed on the table in Section 5.2(a) above [*], such event shall

be deemed to have occurred if and when all of the criteria set forth on Schedule

6 have been satisfied.

 

(b)           For purposes of the

second event listed on the table in Section 5.2(a) above [*] such event shall

be deemed to have occurred if and when all of the criteria set forth on Schedule

7 have been satisfied.  The

Parties will cooperate in good faith to [*].

 

5.4           Milestones.

 

(a)           Subject to the terms

and conditions in this Agreement (including, without limitation, the provisions

of Sections 5.4(b), 5.4(c), 5.4(d) and 5.5 below), CUBIST

 

17

 

shall make cash payments

to BIOCHEMIE in the respective amounts set forth below upon attainment of the

milestones set forth below:

 

	

  Event

  	

   

  	

  With Japan

  License

  	

   

  	

  Without

  Japan

  License

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  [*]

  	

   

  	

  USD

  $[*]

  	

   

  	

  USD

  $[*]

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  [*]

  	

   

  	

  USD

  $[*]

  	

   

  	

  USD

  $[*]

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  [*]

  	

   

  	

  USD

  $[*]

  	

   

  	

  USD

  $[*]

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  [*]

  	

   

  	

  USD

  $[*]

  	

   

  	

  USD

  $[*]

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  [*]

  	

   

  	

  USD

  $[*]

  	

   

  	

  USD

  $[*]

  

 

(b)           In the event that the

Japan License is not terminated by BIOCHEMIE pursuant to Section 3.3 hereof,

then, upon the achievement of the milestones set forth in the table included in

Section 5.4(a) above, the amount of the payment due by CUBIST under Section 5.4(a)

above shall be the amount set forth opposite the description of such milestone

in such table under the caption “With Japan License”. In the event that

the Japan License is terminated by BIOCHEMIE pursuant to Section 3.3 hereof,

then, upon the achievement of the milestones set forth in the table included in

Section 5.4(a) above, the amount of the payment due by CUBIST under Section

5.4(a) above shall be the amount set forth opposite

 

18

 

the description of such milestone in such table under

the caption “Without Japan License”.

 

(c)           CUBIST shall promptly

notify BIOCHEMIE in writing upon the achievement of any of the milestones set

forth above in Section 5.4(a) and CUBIST shall have [*] days to make the corresponding

milestone payment due.  All milestone

payments shall be in United States dollars.

 

(d)           CUBIST shall make the

payments set forth in Section 5.4(a) only once upon the first achievement of

the applicable milestone by the first Licensed Product to achieve such

milestone.  After the achievement of a

given milestone and the payment required to be made by CUBIST pursuant to

Section 5.4(a) above in connection with the achievement of such milestone, no

further payment shall be due or owed by CUBIST in connection with such

milestone, regardless of how many times the same milestone is achieved by the

same Licensed Product and regardless of how many times the same milestone is

achieved by different or multiple Licensed Products.

 

5.5           Reduction of

Milestone Payments.

 

(a)           Notwithstanding any

provision in this Article V or elsewhere in this Agreement to the contrary,

CUBIST shall be entitled to deduct from any and all payments required to be

made by CUBIST to BIOCHEMIE pursuant to Sections 5.2 and 5.4 above (after

giving effect to all prior reductions thereof pursuant to this Section 5.5) [*]

that CUBIST [*] in order to [*] by CUBIST anywhere in the Territory [*]  The procedures set forth below in the

remainder of this Section 5.5(a) shall apply and be required with respect to a

[*] only if and to the extent that [*] to any [*] in order to [*].  Any failure by [*] shall result in [*] under

the foregoing provisions of this Section 5.5(a) with respect to any [*] in

order to [*]. [*] shall give [*] of [*] that it is appropriate to [*] in order

to [*].  Such [*] of the [*] in order

[*].  Upon [*] shall have a period of up

to [*] days to [*] from [*] in order to [*]. 

The [*] such [*] shall be [*] thereof set forth in such [*].  BIOCHEMIE hereby agrees to [*] as [*] of [*]

and in any event [*] of such [*] day period as possible.  In the event that, at the end of such [*]

day period, [*] to [*], then [*] to [*] with [*] and shall have the right to

[*], provided that the [*] are [*]. 

[*] that it shall [*] of such [*] and that it shall [*] to [*] in

connection with the [*] and as to the [*] with [*]. [*] take into account any

such [*] and, whenever reasonable and practical, [*] with such [*] in response

to such [*].

 

(b)           Notwithstanding any

provision in this Article V or elsewhere in this Agreement to the contrary, (I)

in the event that there is no [*] with respect to the [*] in at least one

Licensed Product such that the [*] of such Licensed Product by a [*] would not

[*] of such [*], then CUBIST shall be entitled to [*] that CUBIST is required

to make to [*] an [*] to [*], and (II) in the event that there is no [*] with

respect to the

 

19

 

[*] in at least one

Licensed Product such that the [*] of such Licensed Product by a [*] would not

constitute [*] of such [*], then CUBIST shall not be required to [*].

 

(c)           Notwithstanding any

provision in this Article V or elsewhere in this Agreement to the contrary, in

the event that this Agreement is executed and delivered after July 31, 2002,

then the amounts payable by CUBIST pursuant to Sections 5.1 and 5.2 shall be

reduced by [*], provided  however, in no event shall the aggregate

amount of such reductions exceed [*]. 

The [*] pursuant to the provisions of this Section 5.5(c) shall be charged

all to the payment due by CUBIST pursuant to Section 5.1 hereof.  The [*] shall be charged to the payment due

upon the occurrence of the first event described in Section 5.2(a) above and

the [*] shall be charged to the payment due upon the occurrence of the second

event described in Section 5.2(a) above. 

Thereafter, any [*] shall continue to be charged in iterative fashion to

the payment due by CUBIST pursuant to Section 5.1 hereof, the payment due by

CUBIST pursuant to Section 5.2(a) upon the occurrence of the first event and

the payment due by CUBIST pursuant to Section 5.2(a) upon the occurrence of the

second event, [*] or the aggregate amount of such reductions is equal to

[*].  The provisions of this Section

5.5(c) shall only entitle CUBIST to reduce the amount of certain payments that

it would otherwise owe BIOCHEMIE and such provisions shall in no event be

construed or interpreted as requiring BIOCHEMIE to make payments to CUBIST in

the event that the amount of the reductions contemplated under this Section

5.5(c) exceed the amount of the payments that CUBIST would otherwise owe

BIOCHEMIE.

 

ARTICLE

VI

ROYALTIES

 

6.1           Royalties on

Licensed Products that are not Oral Licensed Products.   In consideration of the license granted to

CUBIST pursuant to Section 3.1, CUBIST shall pay to BIOCHEMIE, subject to the

terms and conditions of this Agreement (including, without limitation, the

provisions of Sections 6.3, 6.4, 6.5 and 6.10), a royalty on the aggregate

annual Net Sales for all Licensed Products that are not Oral Licensed Products

and that are sold in the Territory, equal to [*] of aggregate annual Net Sales

for all of such Licensed Products that are not Oral Products.

 

6.2           Royalties

on Oral Licensed Products.  CUBIST

and BIOCHEMIE shall, prior to commercial launch of any Oral Licensed Product,

negotiate in good faith a commercially reasonable royalty for each Oral

Licensed Product that is sold in the Territory.  Any such royalty shall be paid by CUBIST in consideration of the

license granted to CUBIST pursuant to Section 3.1 in respect to Oral Licensed

Products.  Payment of any such royalty

shall be subject to the terms and conditions of this Agreement (including,

without limitation, the provisions of Sections 6.3, 6.4, 6.5 and 6.10 hereof.

 

20

 

6.3           Term of Royalties.  BIOCHEMIE’s right to receive royalties under

Section 6.1 and Section 6.2 shall expire on a country-by-country and

product-by-product basis upon the later of (i) ten (10) years from the first

commercial sale of the applicable Licensed Product in the applicable country in

the Territory or (ii) the expiration of the last to expire Valid Claim that,

absent the license granted to CUBIST pursuant to Section 3.1 hereof, would be

infringed by the sale or commercialization of such Licensed Product in such

country.  In the event that BIOCHEMIE’s

right to receive royalties under Section 6.1 or Section 6.2 expires with

respect to any Licensed Product in any country within the Territory pursuant to

the provisions of this Section 6.3, then the [*] for purposes of calculating

any royalty owed by CUBIST to BIOCHEMIE pursuant to Section 6.1 or Section 6.2

above.  In the event that, in accordance

with the provisions of this Section 6.3, the right of BIOCHEMIE to receive

royalties in connection with sales of License Product in any country in the

Territory expires, CUBIST shall nevertheless remain obligated to pay royalties

to BIOCHEMIE in connection with all sales of Licensed Product in such country

that occurred prior to such expiration, and CUBIST shall no longer be obligated

to pay royalties to BIOCHEMIE in connection with any and all sales of Licensed

Product in such country that occur on or after such expiration.

 

6.4           Reduction of Royalty.

 

(a)           Notwithstanding any

provision in this Article VI or elsewhere in this Agreement to the contrary,

(I) in the event that there is no [*] in any given country within the Territory

with respect to the [*] in any Licensed Product such that the [*] of such

Licensed Product by a [*] in such country would not [*] of such [*], then the

portion of total royalties that would otherwise be payable by CUBIST to

BIOCHEMIE pursuant to Section 6.1 or Section 6.2, as applicable, (after giving

effect to all other reductions of such total royalties pursuant to this Section

6.4) as a result of the Net Sales of such Licensed Product in such country

shall be reduced by [*], and (II) in the event that there is no [*] in any

given country within the Territory with respect to the [*] in any Licensed

Product such that the [*] of such Licensed Product by a [*] in such country

would not [*] of such [*], then the portion of total royalties that would

otherwise be payable by CUBIST to BIOCHEMIE pursuant to Section 6.1 or Section

6.2, as applicable, (after giving effect to all other reductions of such total

royalties pursuant to this Section 6.4) as a result of the Net Sales of such

Licensed Product in such country shall be [*]. 

CUBIST agrees to give BIOCHEMIE [*] days notice prior to the [*] in any

country in the Territory in which CUBIST intends to [*] and in which CUBIST is

not aware that any [*].

 

(b)           Notwithstanding any

provision in this Article VI or elsewhere in this Agreement to the contrary, in

the event that CUBIST [*] in order to [*] by CUBIST in any country within the

Territory [*], then the portion of total royalties that would otherwise be

payable by CUBIST to BIOCHEMIE pursuant to Section 6.1 or Section 6.2, as

applicable, (after giving effect to all other reductions of such total royalties

pursuant to this Section 6.4) as a result of the Net Sales of such Licensed

 

21

 

Product in such country

shall be reduced [*] by the [*] on account of the Net Sales of such Licensed

Product in such country.

 

6.5           Royalty Payments and

Reports.  Royalties shall be

calculated by converting all applicable Net Sales into U.S. dollars (other than

Net Sales with respect to sales of Licensed Products as to which CUBIST’s

royalty payment obligation, as provided below in this Section 6.5, is in Euros)

in accordance with the provisions of Section 6.8 below and applying the

appropriate royalty percentages set forth in, or determined in accordance with,

Section 6.1 or Section 6.2, as applicable. 

During the term of this Agreement, royalties shall be paid within [*]

days after the close of each fiscal year of CUBIST, and royalty payments shall

be made in the following currencies: (i) in the case that a portion of CUBIST’s

royalty payment obligation is attributable to sales of Licensed Products [*],

CUBIST shall make payment [*]; and (ii) in the case that a portion of CUBIST’s

royalty payment obligation is attributable to sales of License Products [*],

CUBIST shall make payment [*].  Within

[*] days of the end of each fiscal year of CUBIST, CUBIST shall furnish to

BIOCHEMIE a report showing: (i) the calculation of Net Sales [*] for all

Licensed Products [*] and that were sold in the Territory on a

country-by-country basis during such fiscal year, (ii) the calculation of Net Sales

[*] for each [*] that was sold in the Territory on a country-by-country basis

during such fiscal year, (iii) royalties accrued to BIOCHEMIE pursuant to

Section 6.1 and pursuant to Section 6.2 during such fiscal year, (iv) the

amount of any credits or off-sets against royalties (if any), and (v) the

currency exchange rates used in determining the amount of [*], as applicable,

payable to BIOCHEMIE.  If no royalty

payments are due for any period hereunder, CUBIST shall so report.  All reports delivered pursuant to this

Section 6.5 and any information that can be derived therefrom shall constitute

Proprietary Information of CUBIST for purposes of Section 4.1 hereof.

 

6.6           Recordkeeping by

CUBIST.  CUBIST shall keep, and

shall cause each of its sublicensees to keep, full and accurate books of

account containing all particulars that may be necessary for the purpose of

calculating Net Sales and all royalty payments payable to BIOCHEMIE pursuant to

Section 6.1 or Section 6.2, as applicable. 

Such books of account shall be kept at CUBIST’s principal place of

business and, with all necessary supporting data shall, for the [*] years next

following the end of the calendar year to which each shall pertain be open for

inspection by BIOCHEMIE.

 

6.7           Audits.  Upon the written request of BIOCHEMIE,

CUBIST shall permit an independent certified public accounting firm of

nationally recognized standing selected by BIOCHEMIE and reasonably acceptable

to CUBIST, at BIOCHEMIE’s expense, to have reasonable access during normal

business hours to such of the records of CUBIST or its sublicensees as may be

reasonably necessary to verify the accuracy of the royalty reports hereunder in

respect of any calendar quarter ending not more than [*] months prior to the

date of such request.  All such

verifications shall be conducted not more than once in each Calendar Year

during the term of this Agreement. If such accounting firm concludes that

additional payments were owed during such period and there is no dispute

concerning whether such payments are owed, CUBIST shall pay the additional

payments within [*] days of the date BIOCHEMIE delivers to CUBIST such

accounting firm’s written report so concluding.  If such accounting firm concludes that CUBIST

 

22

 

made payments to BIOCHEMIE in excess of what CUBIST

was required to pay BIOCHEMIE pursuant to the terms of this Agreement, then

BIOCHEMIE shall return such excess payments to CUBIST within [*] days of the

date of such accounting firm’s written report concluding that such excess

payments were made.  BIOCHEMIE shall

promptly inform CUBIST of the findings of any accounting firm engaged by

BIOCHEMIE for any of the purposes contemplated under this Section 6.7, and

shall promptly deliver to CUBIST a copy of any written report prepared by such

accounting firm.   The fees and expenses

of any such accounting firm shall be borne by BIOCHEMIE unless such accounting

firm determines that CUBIST underpaid royalties due to BIOCHEMIE during any

year by more than [*], in which case CUBIST shall make payment of all of such

fees and expenses.

 

6.8           Exchange Rate.  The rate of exchange to be used in computing

Net Sales in each country within the Territory shall be made at the average

rate of exchange for such country’s currency published in the Wall Street

Journal (New York Edition) for each business day of the fiscal year to which

such Net Sales relate.

 

6.9           Interest on Overdue

Payments. Any amounts not paid by CUBIST or BIOCHEMIE when due under this

Agreement shall be subject to interest from and including the date payment is

due through and including the date upon which CUBIST or BIOCHEMIE, as the case

may be, has made such payment at a rate equal to [*] [*] quoted in the Money

Rates section of the Wall Street Journal (New York Edition) calculated daily on

the basis of a 365-day year, or similar reputable data source, or, if lower,

the highest rate permitted under applicable law.

 

6.10         Taxes.  If CUBIST is required by law, rule or

regulation to withhold taxes from any payments due to BIOCHEMIE from CUBIST

hereunder, CUBIST will (i) deduct those taxes from the remittable amount, (ii)

pay the taxes to the proper taxing authority, and (iii) send evidence of the

obligation together with proof of payment to BIOCHEMIE within [*] business days

following that payment.   Without

limiting the generality of the foregoing provisions of this Section 6.10,

CUBIST shall be responsible for all taxes imposed on or attributable to it

under applicable law and BIOCHEMIE shall be responsible for all taxes imposed

on or attributable to it under applicable law.

 

ARTICLE

VII

REPRESENTATIONS,

WARRANTIES AND INDEMNITY

 

7.1           Representations

and Warranties.

 

7.1.1        Mutual

Representations and Warranties. 

Each Party hereby represents and warrants to the other Party that:

 

(a)           it is a corporation

duly organized, validly existing and in good standing under the laws of the

jurisdiction in which it is incorporated, and has full corporate power and

authority and the legal right to own and operate its property and 

 

23

 

assets and to carry on its business as it is now being

conducted and as contemplated in this Agreement;

 

(b)           it has the corporate

power and authority and the legal right to enter into this Agreement and

perform its obligations hereunder; it has taken all necessary corporate action

on its part required to authorize the execution and delivery of this Agreement

and the performance of its obligations hereunder; and this Agreement has been

duly executed and delivered on behalf of such Party, and constitutes a legal,

valid and binding obligation of such Party that is enforceable against it in

accordance with its terms;

 

(c)           it has not entered, and

will not enter, into any agreement with any third party that is in conflict

with the rights granted to the other Party under this Agreement, and has not

taken and will not take any action that would in any way prevent it from

granting the rights granted to the other Party under this Agreement, or that

would otherwise materially conflict with or adversely affect the rights granted

to the other Party under this Agreement;

 

(d)           its performance and

execution of this Agreement will not result in a breach of any other contract

to which it is a party; and

 

(e)           in the course of the

development of Licensed Products, such Party shall not have used and shall not

use any employee or consultant that has been debarred by the FDA or other

regulatory authority, or, to the best of such Party’s knowledge, is the subject

of debarment proceedings by the FDA or other regulatory authority.

 

7.1.2        BIOCHEMIE

General Representations and Warranties. 

BIOCHEMIE represents and warrants that:

 

(a)           BIOCHEMIE has not taken

any action to encumber any of its right, title and interest in BIOCHEMIE Patents

or BIOCHEMIE Know-How in the Territory;

 

(b)           BIOCHEMIE has

sufficient rights in and to the BIOCHEMIE Patents and BIOCHEMIE Know-How to

grant the rights set forth in this Agreement to CUBIST;

 

(c)           BIOCHEMIE has not and

shall not misappropriate the trade secrets or intellectual property rights of

any other Person in its activities to develop the BIOCHEMIE Patents and the

BIOCHEMIE Know-How;

 

(d)           BIOCHEMIE is unaware of

any activities by third parties that would constitute infringement of BIOCHEMIE

Patents or misappropriation of BIOCHEMIE Know-How or of any of the inventions

claimed under the BIOCHEMIE Patents;

 

(e)           the exercise of the

licenses granted to CUBIST under the BIOCHEMIE Patents and BIOCHEMIE Know-How,

including for the research, development, use, manufacture, promotion,

marketing, sale, offer for sale, import and export of

 

24

 

Licensed Products in the

Territory do not infringe any intellectual property rights owned or possessed

by any third party which such intellectual property is published prior to the

Effective Date;

 

(f)            it is not aware of any

claims, judgments or settlements against or owed by BIOCHEMIE and has not

received notice of any pending or threatened claims or litigation relating to the

BIOCHEMIE Patents or BIOCHEMIE Know-How; 

and

 

(g)           as of the Effective

Date, BIOCHEMIE does not own or have any rights to develop, manufacture or

commercialize any cephalosporin compound that meets the criteria set forth on Schedule

3 and is not described or listed on Schedule  2.

 

7.2           Indemnity.

 

7.2.1        CUBIST hereby agrees to

defend, hold harmless and indemnify BIOCHEMIE and its agents, directors,

officers and employees (the “BIOCHEMIE  Indemnitees”) from and

against any and all suits, claims, actions, demands, liabilities, expenses

and/or losses, including, without limitation, reasonable legal expenses and

attorneys’ fees (collectively “Losses”) resulting directly or indirectly

from:

 

(a)           a material breach of

any of the provisions of this Agreement by CUBIST or any of its agents or

employees; or

 

(b)           the negligence,

recklessness, or willful misconduct by CUBIST or any of its agents or employees

in the performance of any obligations of CUBIST under this Agreement.

 

7.2.2        BIOCHEMIE hereby agrees to

defend, hold harmless and indemnify CUBIST and its agents, directors, officers,

employees, sublicensees and distributors (the “CUBIST  Indemnitees”)

from and against any and all Losses resulting directly or indirectly from:

 

(a)           a material breach of

any of the provisions of this Agreement by BIOCHEMIE or any of its agents or

employees;

 

(b)           the negligence,

recklessness, or willful misconduct by BIOCHEMIE or any of its agents or

employees in the performance of any obligations of BIOCHEMIE under this

Agreement;

 

(c)           the infringement of any third party intellectual

property right which such intellectual property is published prior to the

Effective Date, [*], and any related patents, foreign equivalents, or

counterparts, caused by the research, development, manufacture, use, promotion,

marketing, sale, offer for sale, importation or exportation of Licensed

Products in the Territory by CUBIST and its sublicensees or distributors, other

than infringement resulting from work performed by CUBIST on Compound or

BIOCHEMIE Similar Compound as part of the development of Compound or BIOCHEMIE

Similar Compound provided

 

25

 

such

infringement does not relate to, involve or arise from (i) BIOCHEMIE Patents or

BIOCHEMIE Know-How, (ii) CUBIST’s use thereof, or (iii) the exercise by CUBIST

of its licensed rights thereto; or

 

(d)           the misappropriation of any third party intellectual property right by

BIOCHEMIE or any of its agents or employees.

 

7.2.3        If either Party is seeking

indemnification under this Section 7.2 in connection with a third party claim,

it shall inform the indemnifying Party of such third party claim giving rise to

the obligation to indemnify as soon as reasonably practicable after receiving

notice of the claim.  Subject to the

provisions of Section 8.6(b) hereof, the indemnifying Party shall have the

right to assume the defense of, and take control of, any such third party claim

for which it is obligated to indemnify the indemnified Party under this Section

7.2.  The indemnified Party shall

cooperate with the indemnifying Party (and its insurer) as the indemnifying

Party may reasonably request.  The

indemnified Party shall have the right to participate, at its own expense and

with counsel of its choice, in the defense of any claim or suit that has been

assumed by the indemnifying Party. 

Neither Party shall have any obligation to indemnify the other Party in

connection with any settlement made without the indemnifying Party’s written consent,

provided that the indemnifying Party does not unreasonably withhold or delay

any such written consent.

 

7.2.4        Notwithstanding anything

expressed or implied to the contrary in this Article VII, the amount of any

Losses subject to indemnification shall be reduced by the amount of any insurance

proceeds received by the indemnified Party with respect to such Losses; and

there shall be no obligation under this Agreement to indemnify such indemnified

Party for the amount of Losses so reduced.

 

7.3           Limitation of

Liability.  NEITHER PARTY SHALL BE

LIABLE TO THE OTHER PARTY FOR LOST PROFITS OR FOR ANY INDIRECT, INCIDENTAL,

CONSEQUENTIAL, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES OF THE OTHER PARTY IN

CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS

AGREEMENT, HOWEVER CAUSED, UNDER ANY THEORY OF LIABILITY.

 

7.4           Insurance.  BIOCHEMIE and CUBIST shall each procure and

maintain insurance, including product liability insurance, adequate to cover

its obligations hereunder and that are consistent with normal business

practices of prudent companies similarly situated.  It is understood that such insurance shall not be construed to

create a limit of the Parties’ liability with respect to its indemnification

obligations under this Article VII. 

CUBIST and BIOCHEMIE shall provide each other with written evidence of

such insurance upon request (which evidence need not necessarily be insurance

certificates).  CUBIST and BIOCHEMIE

shall provide the other with written notice at least ten (10) days prior to the

cancellation, non-renewal or material change in such insurance that materially

adversely affects the other Party’s rights hereunder.

 

26

 

ARTICLE

VIII

INTELLECTUAL

PROPERTY PROVISIONS

 

8.1           Inventions.  The entire right, title and interest in and

to all discoveries, improvements, processes, formulas, data, inventions,

enhancements, know-how and trade secrets, patentable or otherwise, that arise

from activities under this Agreement or the Manufacturing and Supply Agreement

or that are necessary or useful in connection with the research, development,

manufacture, marketing, promotion, use, sale, import or export of Licensed

Products, and that were or are developed or invented:

 

(a)           solely by employees of

CUBIST (“CUBIST Inventions”) shall be owned solely by CUBIST;

 

(b)           solely by employees of

BIOCHEMIE (“BIOCHEMIE Inventions”) shall be owned solely by BIOCHEMIE;

and

 

(c)          jointly by employees of

CUBIST and BIOCHEMIE (“Joint Inventions”) shall be owned jointly by

CUBIST and BIOCHEMIE.

 

Inventorship shall be determined in accordance with

U.S. patent laws.

 

8.2           Filing, Prosecution

and Maintenance of Patents.  CUBIST

shall be entitled to file, prosecute and maintain in the Territory all patent

applications and patents that claim any CUBIST Inventions.  BIOCHEMIE agrees to file, prosecute and

maintain in [*] and, to the extent included [*] , upon appropriate consultation

with CUBIST, the BIOCHEMIE Patents.  

Except to the extent otherwise provided pursuant to the next sentence,

BIOCHEMIE may, at its discretion, choose to file, prosecute and maintain the

BIOCHEMIE Patents in [*] upon appropriate consultation with CUBIST.  BIOCHEMIE shall also file, prosecute and

maintain the BIOCHEMIE Patents in any country in the Territory [*].  In the event that BIOCHEMIE is unwilling,

unable or otherwise fails to file any BIOCHEMIE Patents in any country in the

Territory [*], then CUBIST shall have such right and, upon exercise of such

right by CUBIST, CUBIST shall be entitled to file, prosecute and maintain such

BIOCHEMIE Patents in such country, and BIOCHEMIE shall [*] as may be reasonably

necessary to allow [*] in such country in a timely manner.  [*] shall have the first right to file,

prosecute and maintain in the Territory, upon appropriate consultation with

[*], Joint Patents; however, in the event that [*] elects not to file

any patent application in the Territory with respect to any Joint Invention,

[*] shall have such right and upon exercise by [*] of such right, [*] shall

have the right to prosecute and maintain in the Territory, upon appropriate

consultation with [*], the Joint Patents to which such Joint Invention

relates.  Each of BIOCHEMIE and CUBIST

shall execute such documents and perform such acts as may be reasonably necessary

to allow [*], in the first instance, and [*], in the second instance, to file,

prosecute and maintain Joint Patents in any country within the Territory in a

timely basis.  In each case, the filing

Party shall give the non-filing Party an [*] before filing (but in no event

less than [*] days), shall [*] with the non-filing Party with respect thereto,

shall, prior to filing any application, [*] that the non-filing Party [*] on a

timely basis to such application and shall supply the non-filing Party with a

copy of the application as filed, together with

 

27

 

notice of its filing date and serial number and all

substantive prosecution.  Each Party

shall keep the other advised of the status of the actual and prospective patent

filings described above in this Section 8.2 and, upon the request of the other,

[*] related to the filing, prosecution and maintenance of such patent

filings.  [*] shall promptly give notice

to [*] of the grant, lapse, revocation, surrender, invalidation or abandonment

in the Territory of any Joint Patent being prosecuted by [*].  [*] shall promptly give notice to [*] of the

grant, lapse, revocation, surrender, invalidation or abandonment of any [*] or

[*] being prosecuted by [*].  With

respect to all filings hereunder, the filing Party shall be responsible for

payment of all costs and expenses related to such filings.

 

8.3           Option of the

Parties to Prosecute and Maintain Patents. 

Each Party shall give notice to the other Party of any desire to cease

prosecution and/or maintenance in the Territory of [*] or [*] that such Party

is then prosecuting or maintaining, and, in such case, shall permit the other

Party, in its sole discretion, to continue such prosecution or maintenance in

the Territory at its own expense.  If

the other Party then elects to continue prosecution or maintenance in the

Territory, each Party shall execute such documents and perform such acts as may

be reasonably necessary to effect a Power of Attorney of such [*] or [*], as

the case may be, to the other in a timely manner to allow continuation of such

prosecution or maintenance in the Territory.

 

8.4           Opposition,

Reexamination and Reissue.

 

(a)           Each Party shall,

within [*] days of learning of such event, inform the other of any request for,

or filing or declaration of, any interference, opposition, reexamination,

revocation, nullity proceeding or declaration of non-infringement (or the

equivalent of any of the foregoing) in the Territory relating to the [*] or the

[*], as the case may be.  BIOCHEMIE and

CUBIST shall thereafter consult and cooperate fully to determine a course of

action with respect to any such proceeding. 

Each Party shall have the right to review and approve any submission to

be made in connection with such proceeding.

 

(b)           [*] shall not initiate

any reexamination, interference, reissue, revocation, nullity or declaration of

non-infringement proceeding in the Territory relating to [*] or [*] without the

prior written consent of [*], which consent shall not be unreasonably withheld.  [*] shall not initiate any reexamination,

interference, reissue, revocation, nullity or declaration of non-infringement

proceeding in the Territory relating to [*] or [*] without the prior written

consent of [*], which consent shall not be unreasonably withheld.

 

(c)           In connection with any

interference, opposition, reexamination, reissue, revocation, nullity or

declaration of non-infringement proceeding (or the equivalent of any of the

foregoing) in the Territory relating to [*] or [*], BIOCHEMIE and CUBIST will

cooperate fully and will provide each other with any information or assistance

that either may reasonably request.  The

Parties shall keep each other informed of developments in any such action or

proceeding, including to the extent permissible by law and contracts, the

status of any settlement negotiations and the terms of any offer related

thereto.

 

28

 

(d)           BIOCHEMIE, in the case

of BIOCHEMIE Patents, shall bear the expense of any interference, opposition,

reexamination, reissue, revocation, nullity or declaration of non-infringement

proceeding (or the equivalent of any of the foregoing) relating thereto.  The expenses of any interference,

opposition, reexamination, reissue, revocation, nullity or declaration of non-infringement

proceeding with respect to Joint Patents shall be shared equally by the

Parties.

 

(e)           This Section 8.4

relates only to proceedings before the United States Patent and Trademark

Office or other applicable patent authorities. 

Any revocation, nullity or declaration of non-infringement proceeding

before a court, arbitration panel or similar body, shall not be governed by

this Section 8.4 but shall be governed by Sections 8.5 and 8.6 hereof.

 

8.5           Enforcement.

 

(a)           BIOCHEMIE shall give

CUBIST notice of (i) any infringement of BIOCHEMIE Patents or Joint Patents,

(ii) any misappropriation or misuse of BIOCHEMIE Know-How, or (iii) any

infringement or misappropriation of any CUBIST Inventions (regardless of

whether or not such Cubist Inventions have been claimed in a patent or patent

application filed by CUBIST), in each case that may come to BIOCHEMIE ‘s

attention.  CUBIST shall give BIOCHEMIE

notice of (A) any infringement of BIOCHEMIE Patents or Joint Patents or (B) any

misappropriation or misuse of BIOCHEMIE Know-How, in each case that may come to

CUBIST ‘s attention.  BIOCHEMIE and

CUBIST shall thereafter consult and cooperate fully to determine a course of

action, including but not limited to the commencement of legal action by either

or both BIOCHEMIE and CUBIST, to terminate any infringement of [*] or [*] or to

terminate any [*].  [*], upon notice to

[*], shall [*], at [*] and [*], and as appropriate, [*], with respect to [*].  In the event that [*] elects not to [*],

then [*] shall promptly inform [*] of [*] election and [*] shall thereafter [*]

and, if necessary, [*].  Each Party

shall [*].

 

(b)           For any infringement

action concerning [*] or [*] or any misappropriation or misuse of [*] or [*],

in the event that [*] but is unable to do so [*], [*] will [*], and at [*]

expense, will execute all documents necessary for [*] to initiate litigation to

prosecute and maintain such action.  In

the event that [*] elects to be represented by its own counsel in connection

with any matter pertaining to such action, [*] shall pay all of the costs and

expenses of its own counsel.  In

connection with any such action, BIOCHEMIE and CUBIST will cooperate fully and

will provide each other with any information or assistance that either may

reasonably request.  The Parties shall

keep each other informed of developments in any such action or proceeding,

including to the extent permissible by law and contracts, the status of any

settlement negotiations and the terms of any offer related thereto.

 

(c)           Any recovery of damages

or an award obtained by either or both of BIOCHEMIE and CUBIST in connection

with or as a result of any action contemplated by this

 

29

 

Section 8.5 or Section

8.6 below, whether by settlement or otherwise, shall be shared in order as

follows:

 

(i)            the Party or Parties

that prosecuted the action shall recoup all of its or their costs and expenses

incurred in connection with the action;

 

(ii)           the other Party (to the

extent that it did not prosecute the action) shall then, from funds remaining,

recover its costs and expenses incurred in connection with the action to the

extent that such costs and expenses are reasonably incurred to comply with such

Party’s obligations under Section 8.5 or to the extent that such other Party

participates in the prosecution of such action but not as a party thereto; and

 

(iii)          any amount remaining

shall be allocated [*] to CUBIST and [*] to BIOCHEMIE.

 

8.6           Defense of Third

Party Infringement Claims.

 

(a)           Notice.  If any Licensed Product becomes the subject

of a third party claim, or there is the potential for a claim, of patent

infringement relating to the research, development, use, manufacture,

promotion, marketing, sale, offer for sale, importation or exportation of such

Licensed Product in the Territory, the Party first having notice of the claim

shall promptly notify the other Party, and the Parties shall promptly meet to

consider the claim and the appropriate course of action.

 

(b)           Defense.  Except as provided herein, the Party against

which such third party infringement claim is brought shall defend against such

claim at its sole expense and the other Party shall have the right, but not the

obligation, to participate in any such suit, at its sole option and at its own

expense.  Such other Party shall

reasonably cooperate with the Party conducting the defense of the claim.

Notwithstanding the foregoing provisions of this Section 8.6(b), BIOCHEMIE

shall have the obligation to assume the defense of any infringement claim for

which BIOCHEMIE must indemnify CUBIST pursuant to Section 7.2.2(c) hereof.

 

(c)           Settlement.  Neither Party shall enter into any

settlement that materially affects the other Party’s rights or interests

without such other Party’s written consent, which consent shall not be

unreasonably withheld or delayed.

 

8.7           Patent Term

Restoration and Regulatory Exclusivity. 

The Parties shall cooperate with each other in obtaining patent term

restoration or extension, supplementary protection certificates, regulatory

data extensions or exclusivity, or their equivalents, in the Territory where

applicable to [*].  [*] shall have the

first right to make any elections in the Territory regarding such patent term

restoration or extension or regulatory extension or exclusivity with respect to

[*], as applicable.  If CUBIST decides

not to obtain patent term restoration or extension or regulatory extension or

exclusivity in the Territory with respect to [*], as applicable, BIOCHEMIE

shall, at its sole cost and expense, have the

 

30

 

right to obtain any such patent term restoration or

extension or regulatory extension or exclusivity in the Territory.  In such event, the Parties shall cooperate

with each other, including providing copies of relevant regulatory submissions

and correspondence and executing requisite documentation.

 

8.8           Patent Marking.  CUBIST shall mark all Licensed Products sold

with appropriate patent numbers or indicia at BIOCHEMIE ‘s request to the

extent required and/or permitted by law.

 

8.9           Trademarks.

CUBIST shall have the right to determine appropriate trademark, trade dress and

other related intellectual property usage in connection with marketing Licensed

Products under this Agreement.  CUBIST

shall have the exclusive right to use any trademarks in connection with

marketing Licensed Products under this Agreement in the Territory.  Each Party shall notify the other Party

promptly upon learning of any actual, alleged or threatened infringement of any

BIOCHEMIE Trademark or CUBIST trademark or of any unfair trade practices, trade

dress imitation, passing off of counterfeit goods, or like offenses, or any

such claims brought by a third party against a Licensed Product (hereinafter “TM

Infringement”).  Upon learning of

such TM Infringement, the Parties shall confer as to the best response to such

TM Infringement.  CUBIST shall have the

sole right, in its own discretion and at its own expense, to bring an action to

address such TM Infringement, in which case the proceeds thereof shall be

allocated first to pay CUBIST’s costs and expenses in connection with

such action, second to pay any costs and expenses incurred by BIOCHEMIE

in connection with such action, and third [*] to CUBIST and [*] to

BIOCHEMIE.

 

ARTICLE

IX

TERM AND

TERMINATION

 

9.1           Term. This

Agreement shall be effective as of the Effective Date and, unless terminated

pursuant to Section 9.2 or Section 9.3 below, shall continue in effect until

any and all royalty payment obligations of CUBIST shall have expired in accordance

with the provisions of Section 6.3 hereof. 

Upon expiration of all royalty payment obligations of CUBIST in

accordance with the provisions of Section 6.3 hereof, the term of this

Agreement shall be deemed to have expired.

 

9.2           Termination by

Either Party for Cause. This Agreement may be terminated by written notice

given by either Party to the other Party at any time during the term of this

Agreement:

 

(a)           if the other Party is

in breach of its material obligations hereunder and has not cured such breach

within ninety (90) days after notice requesting cure of the breach; or

 

(b)           upon the filing or

institution of bankruptcy, liquidation or receivership proceedings, or upon an

assignment of a substantial portion of the assets for the benefit of creditors

by the other Party; provided, however, in the case of any

involuntary bankruptcy proceeding such right to terminate shall only become

 

31

 

effective if such other

Party consents to the involuntary bankruptcy or such proceeding is not

dismissed within ninety (90) days after the filing thereof.

 

9.3           Special Termination

Rights of CUBIST.  This Agreement

may be terminated by CUBIST at any time during the term of this Agreement for

any reason or no reason if CUBIST gives at least one hundred and eighty (180)

days prior written notice of termination to BIOCHEMIE.

 

32

 

9.4           Special

Termination Rights of BIOCHEMIE.

 

(a)           In the event that

CUBIST breaches its diligence obligation under Section 3.6 hereof by not using

commercially reasonable efforts to research, develop, promote, market, sell,

offer to sell and otherwise commercialize at least one Licensed Product in all

or some of the Major Market Countries (the “Default  Major  Market

Countries”) at any time during the term of this Agreement and such

breach has not been cured within [*] days after BIOCHEMIE gives written notice

of such breach to CUBIST requesting cure of the breach, then BIOCHEMIE may

terminate CUBIST’s rights under this Agreement (including, without limitation,

under Section 3.1 hereof) to research, develop, promote, market, sell, offer to

sell and otherwise commercialize Licensed Products in any of the Default Major

Market Countries by giving written notice to CUBIST specifying the Default

Major Market Countries as to which BIOCHEMIE is exercising its termination

right under this Section 9.4., provided that BIOCHEMIE must deliver such

notice of termination no later than [*] days after the expiration of such [*]

day cure period.  Upon termination by

BIOCHEMIE pursuant to this Section 9.4(a) of CUBIST’s right to research,

develop, promote, market, sell, offer to sell and otherwise commercialize

Licensed Products in any Default Major Market Country, neither Party shall have

any liability or obligation to the other Party under this Agreement with

respect to such Default Major Market Country, including with respect to Article

VI, provided however, that termination pursuant to this

Section 9.4(a) of CUBIST’s right under this Agreement with respect to such

Default Major Market Country shall not relieve CUBIST of its obligations under

Article VI with respect to such Default Major Market Country to the extent that

such obligations have accrued prior to the effective date of such

termination.  The license granted to

CUBIST under Section 3.1 shall terminate with respect to such Default Major

Market Country.  Notwithstanding the

foregoing, CUBIST shall have the right to sell out in such Default Major Market

Country all of its inventory of Licensed Products for sale in such Default

Major Market Country for a period of [*] months from the date of

termination.  CUBIST and BIOCHEMIE

hereby agree that, upon termination pursuant to this Section 9.4(a) of CUBIST’s

right to research, develop, promote, market, sell, offer to sell and otherwise

commercialize Licensed Products in any Default Major Market Country, the

Parties shall discuss mutually acceptable actions that the Parties could

consider and ultimately decide to implement in order to accelerate the exercise

by CUBIST of its right to sell out in such Default Major Market Country all of

CUBIST’s inventory of Licensed Products for sale in such Default Major Market

Country.

 

(b)           In the event that [*]

with respect to [*] for the [*] in accordance with CUBIST’s internal

development plan for Licensed Products (a copy of which shall be provided to

BIOCHEMIE on or prior to the date hereof and thereafter from time to time as

such internal development plan may be modified by CUBIST) or in the event that

[*] with respect to [*] for the [*] in ordance with CUBIST’s internal

development plan for Licensed Products (a copy of which shall be provided to

BIOCHEMIE on or prior to the date hereof and thereafter from time to time as

 

33

 

such internal development

plan may be modified by CUBIST), then BIOCHEMIE shall have the right to

terminate this Agreement, provided that BIOCHEMIE delivers written

notice of termination no earlier than sixty (60) days prior to, and no later

than sixty days (or such longer period of time as the parties shall mutually

agree upon in writing) after, expiration of the [*] as the case may be,

referred to in this Section 9.4(b).  The

effective date of termination specified in such written notice shall be sixty

days from the date such written notice is received by CUBIST.  Notwithstanding anything expressed or

implied in this Section 9.4(b) to the contrary, BIOCHEMIE shall not have any right

to terminate this Agreement pursuant to this Section 9.4(b) [*] or [*],

respectively, specified above in this Section 9.4(b) [*], including, but not

limited to, [*].

 

(c)           In the event that, at

any time during the term of this Agreement, CUBIST is not researching,

developing or commercializing any Licensed Products and that CUBIST no longer

has the right to replace any Abandoned Product with a BIOCHEMIE Similar

Compound pursuant to Section 3.5(b) hereof, then BIOCHEMIE shall have the right

to terminate this Agreement by giving [*] days’ prior written notice of

termination to CUBIST, provided that at the time such written notice of

termination is given the conditions specified in this Section 9.4(c) for the

exercise of such termination right continue to exist.

 

9.5           Effect of Expiration

or Termination of this Agreement.

 

(a)           In the event that the

term of this Agreement expires pursuant to Section 9.1 hereof, then this

Agreement shall terminate, and, except to the extent otherwise provided in this

Section 9.5(a) and Section 9.5(e) below, neither Party shall have any liability

or obligation to the other Party under this Agreement, including, without

limitation, under Article V and Article VI. 

Notwithstanding the foregoing sentence, the licenses granted to CUBIST

under Article III shall survive such termination and such licenses shall be

deemed to be fully paid up.

 

(b)           In the event that

CUBIST terminates this Agreement pursuant to Section 9.2, then this Agreement

shall terminate, and, except to the extent otherwise provided in this Section

9.5(b) and Section 9.5(e) below, neither Party shall have any liability or

obligation to the other Party under this Agreement.  Notwithstanding the foregoing sentence, (i) the rights (but not

the obligations) of CUBIST, and the obligations (but not the rights) of BIOCHEMIE,

under Articles II and III (including, without limitation, the licenses granted

to CUBIST under Article III) shall survive such termination and (ii) the rights

and obligations of the Parties under Article VI shall survive such termination.

 

(c)           In the event that

CUBIST terminates this Agreement pursuant to Section 9.3, or in the event that

BIOCHEMIE terminates this Agreement pursuant to Section 9.2, Section 9.4(b) or

Section 9.4(c) hereof, then this Agreement shall terminate, and, except to the

extent otherwise provided in this Section 9.5(c) and Section 9.5(e) below,

neither Party shall have any liability or obligation to the other Party under

this Agreement, including with respect to Article V and Article VI.  The licenses granted to CUBIST under Article

III shall terminate.  Notwithstanding

the foregoing, in the event that CUBIST terminates this Agreement pursuant to

Section 9.3 or BIOCHEMIE terminates this Agreement

 

34

 

pursuant to Section 9.2, CUBIST shall have the right

to sell out in the Territory all of its inventory of Licensed Products for a

period of [*] months from the date of termination.  In the event that CUBIST terminates this Agreement pursuant to

Section 9.3, then, within [*] days following the effective date of such

termination, [*] either (1) to [*] developed by [*] and that are [*] or (2) a

[*] of any then [*].  If [*] within such

[*], it shall [*].  If [*], [*] within

[*] days after [*].

 

(d)           In the event this

Agreement is terminated due to the rejection of this Agreement by or on behalf

of a Party under Section 365 of the United States Bankruptcy Code (the “Code”),

all licenses and rights to licenses granted under or pursuant to this Agreement

by one Party to the other are, and shall otherwise be deemed to be, for

purposes of Section 365(n) of the Code, licenses of rights to “intellectual

property” as defined under Section 101(35A) of the Code.  The Parties agree that the licensed Party,

as a licensee of such rights under this Agreement, shall retain and may fully

exercise all of its rights and elections under the Code, and that upon

commencement of a bankruptcy proceeding by or against a Party under the Code,

the other Party shall be entitled to a complete duplicate of or complete access

to, any such intellectual property and all embodiments of such intellectual

property.  Such intellectual property

and all embodiments thereof shall be promptly delivered to the other Party (i)

upon any such commencement of a bankruptcy proceeding upon written request

therefor by a Party, unless the Party elects to continue to perform all of its

obligations under this Agreement or (ii) if not delivered under (i) above, upon

the rejection of this Agreement by or on behalf of the Party upon written request

therefor.  The foregoing is without

prejudice to any rights either Party may have arising under the Code or other

applicable law.

 

(e)           Termination of this

Agreement shall not relieve either Party of any obligation of such Party

accruing prior to such termination.  Any

termination of this Agreement shall be without prejudice to the rights of

either Party against the other accrued or accruing under this Agreement prior

to termination.  The provisions of

Article I, Article VII (except with respect to Section 7.1.1(c)), Section 8.1,

Article IX, X and Article XI shall survive the termination of this

Agreement.  The provisions of Article IV

shall survive any termination of this Agreement for a period of ten (10) years.  The provisions of Article VIII (other than Section

8.1 above) shall survive the termination of this Agreement to the extent

necessary to protect CUBIST’s rights under any licenses granted to CUBIST that

survive any such termination of this Agreement.

 

ARTICLE

X

DISPUTE

RESOLUTION

 

10.1         Escalation.  The parties shall attempt to resolve any

controversy or dispute that arises under or relates to this Agreement through

good faith discussions.  The Parties

shall initiate such discussions using the following procedure.  Either Party shall notify the other Party of

the nature of the controversy or dispute, providing sufficient detail to permit

the other Party to understand same (a “Dispute Notice”).  The representatives of the Parties shall

meet within [*] days after the date that the non-sending Party receives the

Dispute Notice to attempt to reach an agreement about the nature of the dispute

and a resolution of the dispute.  If

they are unable to resolve the dispute within [*] days after

 

35

 

their meeting, and do not agree to extend the time

period for resolving the dispute, or if the terms and conditions of the

resolution or settlement of the dispute are breached, the dispute shall be

resolved by arbitration pursuant to the provisions of Section 10.2.  Pending resolution of any dispute covered by

this Section 10.1, both Parties will continue their performance under this

Agreement including, without limitation, the payment of all amounts due to the

other Party that are not in dispute.

 

10.2         Arbitration.

 

(a)           Any claim, dispute, or

controversy arising out of or relating to this Agreement that is not resolved

in accordance with the provisions of Section 10.1 and that the Parties agree to

submit to binding arbitration pursuant to this Section 10.2 will be submitted

by the parties to arbitration by the International Chamber of Commerce (“ICC”)

under the International Arbitration Rules then in effect for the ICC in New

York, New York U.S.A. (“ICC  Rules”), as modified herein or by

agreement of the parties.  Any such arbitration

shall be conducted in New York, New York by three (3) arbitrators, unless two

out of the three arbitrators elect to conduct such arbitration in Paris,

France, in which case such arbitration shall be conducted in Paris, France.  Each Party shall select one (1) arbitrator

and such arbitrators shall jointly appoint the third arbitrator who shall act

as the chairman.  If either Party fails

to appoint an arbitrator within [*] days of a request by the other Party, or if

the arbitrators selected by the parties cannot agree on a chairman within [*]

days after they have been selected, then either Party may request the President

of the ICC to appoint such co-arbitrator (for the non-responsive Party) or the

chairman.  Such appointment shall be

binding on the Parties.  Each Party

irrevocably and unconditionally (i) consents to the jurisdiction of any such

proceeding and waives any objection that it may have to personal jurisdiction

or the laying of venue of any such proceeding; and (ii) knowingly and voluntarily

waives its rights to have disputes tried and adjudicated by a judge and jury

except as otherwise expressly provided herein. 

The Parties will cooperate with each other in causing the arbitration to

be held in as efficient and expeditious a manner as practicable.  Unless the Parties agree otherwise, they

shall be limited in their discovery to directly relevant documents.  Responses or objections to a document

request shall be served [*] days after receipt of the request.  The arbitrators shall resolve any discovery

disputes.  Nothing herein shall prevent

the Parties from settling any dispute by mutual agreement at any time.

 

(b)           The arbitration shall

be of each Party’s individual claims only, and no claim of any other Party

shall be subject to arbitration in such proceeding.  Except as otherwise required by law, the Parties and the

arbitrator(s) shall maintain as confidential all information or documents

obtained during the arbitration process, including the resolution of the

dispute.  The arbitration shall be

conducted in English language.

 

(c)           The arbitrator(s) shall

not have the authority to award any injunctive relief or to award exemplary or

punitive damages, and the Parties expressly waive any right

 

36

 

to such damages.  The arbitrator(s) shall have the authority

to award actual money damages (including interest on unpaid amounts from the

date due).  The costs and expenses of the

arbitration, but not the costs and expenses of the Parties, shall be shared

equally by the Parties, provided that the non-prevailing Party in any

arbitration shall pay the other Party’s costs and expenses (including travel

expenses) and reimburse such Party for its portion of the arbitration costs. In

the event that neither Party wins totally, reimbursement shall be made

proportionally in accordance with the ICC Rules.  Any award rendered by the arbitrator(s) shall be final and

binding upon the Parties.  Judgment upon

the award may be entered in any court of competent jurisdiction.  If a Party fails to proceed with

arbitration, unsuccessfully challenges the arbitration award, or fails to

comply with the arbitration award, the other Party is entitled to costs,

including reasonable attorneys’ fees, for having to compel arbitration or

defend or enforce the award.

 

ARTICLE

XI

MISCELLANEOUS

 

11.1         Force Majeure.  Neither Party shall be held liable or

responsible to the other Party nor be deemed to have defaulted under or

breached the Agreement for failure or delay in fulfilling or performing any

term of the Agreement when such failure or delay is caused by or results from

causes beyond the reasonable control of the affected Party including, but not

limited to, earthquakes, fire, floods, embargoes, insurrections, riots, civil

commotions, strikes, lockouts or other labor disturbances, acts of God or acts,

omissions or delays in acting by any governmental authority or the other

Party.  The affected Party shall notify

the other Party of such force majeure circumstances as soon as reasonably practical.

 

11.2         Assignment.  Except as otherwise expressly provided in

this Section 11.2 or elsewhere in this Agreement, this Agreement may not be

assigned or otherwise transferred, nor may any right or obligation hereunder be

assigned or transferred, by either Party without the prior written consent of

the other Party.  Either Party may,

without the prior written consent of the other Party, assign this Agreement and

such Party’s rights and obligations hereunder in connection with the transfer

or sale of all or substantially all of such Party’s assets related to Licensed

Products or the business, or in the event of its merger or consolidation or

change in control or similar transaction. 

Any permitted assignee shall assume all obligations of its assignor under

the Agreement except as otherwise provided herein.

 

11.3         Severability.  In the event any one or more of the

provisions contained in this Agreement should be held invalid, illegal or

unenforceable in any respect, the validity, legality and enforceability of the

remaining provisions contained herein shall not in any way be affected or

impaired thereby, unless the absence of the invalidated provision(s) adversely

affect the substantive rights of the Parties. 

The Parties shall in such an instance use their best efforts to replace

the invalid, illegal or unenforceable provision(s)

 

37

 

with valid, legal and enforceable provision(s) that,

insofar as practical, implement the purposes of this Agreement.

 

11.4         Notices.  All notices or other communications that are

required or permitted hereunder shall be in writing and sufficient if delivered

personally, sent by telecopier (and promptly confirmed by personal delivery,

registered or certified mail or overnight courier), sent by

nationally-recognized overnight courier or sent by registered or certified

mail, postage prepaid, return receipt requested, addressed as follows:

 

	

   

  	

  if to CUBIST, to:

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  Cubist Pharmaceuticals, Inc.

  
	

   

  	

   

  	

   

  	

  65 Hayden Avenue

  
	

   

  	

   

  	

   

  	

  Lexington, MA  02421

  
	

   

  	

   

  	

   

  	

  Attention: 

  President

  
	

   

  	

   

  	

   

  	

  Telecopier No.: (781)

  861-1412

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  with a copy to:

  	

   

  	

  Cubist Pharmaceuticals, Inc.

  
	

   

  	

   

  	

   

  	

  65 Hayden Avenue

  
	

   

  	

   

  	

   

  	

  Lexington, MA 

  02421

  
	

   

  	

   

  	

   

  	

  Attention: 

  General Counsel

  
	

   

  	

   

  	

   

  	

  Telecopier No.: (781) 861-0566

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  also with a copy to:

  	

   

  	

  Bingham McCutchen LLP

  
	

   

  	

   

  	

   

  	

  150 Federal Street

  
	

   

  	

   

  	

   

  	

  Boston, MA 

  02110

  
	

   

  	

   

  	

   

  	

  Attention: 

  Julio E. Vega, Esq.

  
	

   

  	

   

  	

   

  	

  Telecopier No.: (617) 951-8736

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  if to BIOCHEMIE, to:

  	

   

  	

  Biochemie GmbH

  
	

   

  	

   

  	

   

  	

  Biochemiestrasse 10

  
	

   

  	

   

  	

   

  	

  A-6250 Kundl, Austria

  
	

   

  	

   

  	

   

  	

  Attention:  General

  Counsel

  
	

   

  	

   

  	

   

  	

  Telecopier No.: 

  ++43 5338 8828

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  with a copy to:

  	

   

  	

  Biochemie GmbH

  
	

   

  	

   

  	

   

  	

  Brunner Strasse 59

  
	

   

  	

   

  	

   

  	

  A-1235 Vienna, Austria

  
	

   

  	

   

  	

   

  	

  Attention: 

  Head Antibiotic Research Institute

  
	

   

  	

   

  	

   

  	

  Telecopier No.: ++43 1 866 34 785

  

 

or to such other address as the Party to whom notice

is to be given may have furnished to the other Party in writing in accordance

herewith.  Any such communication shall

be deemed to have been given when delivered if personally delivered or sent by

telecopier on a business day, on the business day after dispatch if sent by

nationally-recognized

 

38

 

overnight courier and on the third business day

following the date of mailing if sent by mail.

 

11.5         Applicable Law;

Jurisdiction; Venue.  The Agreement

shall be governed by and construed in accordance with the laws of the United

Kingdom without reference to any rules of conflict of laws.  The Parties irrevocably consent to the

exclusive personal jurisdiction (except as to actions for the enforcement of a

judgment, in which case such jurisdiction shall be non-exclusive) of the

federal and state courts located in Suffolk County, Massachusetts, and venue in

Suffolk County, Massachusetts.

 

11.6         Entire Agreement.  The Agreement contains the entire

understanding of the Parties with respect to the subject matter hereof.  All express or implied agreements and

understandings, either oral or written, heretofore made are expressly merged in

and made a part of the Agreement. 

Except as expressly set forth in this Agreement, the Agreement may be

amended, or any term hereof modified, only by a written instrument duly

executed by both Parties.

 

11.7         Headings.  The captions to the several Articles and

Sections hereof are not a part of the Agreement, but are merely guides or

labels to assist in locating and reading the several Articles and Sections

hereof.

 

11.8         Independent

Contractors.  It is expressly agreed

that CUBIST and BIOCHEMIE shall be independent contractors and that the

relationship between the two Parties shall not constitute a partnership, joint

venture or agency.  Neither CUBIST nor

BIOCHEMIE shall have the authority to make any statements, representations or

commitments of any kind, or to take any action, which shall be binding on the

other, without the prior consent of the other Party.

 

11.9         Waiver.  The waiver by either Party hereto of any

right hereunder or the failure to perform or of a breach by the other Party

shall not be deemed a waiver of any other right hereunder or of any other

breach or failure by said other Party whether of a similar nature or otherwise.

 

11.10       Counterparts.  The Agreement may be executed in two or more

counterparts, each of which shall be deemed an original, but all of which

together shall constitute one and the same instrument.

 

11.11       Waiver of Rule of

Construction.  Each Party has had

the opportunity to consult with counsel in connection with the review, drafting

and negotiation of this Agreement. 

Accordingly, the rule of construction that any ambiguity in this Agreement

shall be construed against the drafting Party shall not apply.

 

39

 

11.12       Third Party

Beneficiaries.  Except as otherwise

expressly provided in this Agreement, nothing herein expressed or implied is intended

or shall be construed to confer upon or to give to any third party any rights

or remedies by reason of this Agreement. 

Except as otherwise expressly provided in this Agreement, there are no

intended third party beneficiaries under or by reason of this Agreement.

 

[The remainder of this page is

intentionally left blank.]

 

40

 

IN WITNESS WHEREOF, the

Parties have executed this License Agreement as a sealed instrument as of the

date first set forth above.

 

 

	

  BIOCHEMIE

  GMBH

  	

   

  	

  CUBIST

  PHARMACEUTICALS, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  By:

  	

  /s/ G. Ascher /s/ J. Gerstenbauer

  	

   

  	

  By:

  	

  /s/ S.M. Rocklage

  	

   

  
	

  Name: G. Ascher

  	

  J. Gerstenbauer

  	

  Name: Scott M. Rocklage

  
	

  Title Head ABRI

  	

  General Counsel

  	

  Title: Chairman and CEO

  
								

 

 

*Confidential Treatment Requested. 

Omitted portions filed with the Commission.

 

41

 

Schedule 1

(Section 1.9 - BIOCHEMIE

Patents as of the Effective Date)

 

 

[*]

 

 

*Confidential Treatment Requested. 

Omitted portions filed with the Commission.

 

42

 

Schedule 2

(Section 1.13 - BIOCHEMIE

Similar Compounds as of the Effective Date)

 

 

[*]

 

 

*Confidential Treatment Requested. 

Omitted portions filed with the Commission.

 

43

 

Schedule 3

(Section 1.13 - Criteria

for BIOCHEMIE Similar Compounds Not Listed on Schedule  2)

 

 

[*]

 

 

*Confidential Treatment Requested. 

Omitted portions filed with the Commission.

 

44

 

Schedule 4

(Section 1.14 - BIOCHEMIE

Trademarks)

 

 

[*]

 

 

*Confidential Treatment Requested. 

Omitted portions filed with the Commission.

 

45

 

Schedule 5

(Section 1.19 - Compound)

 

 

[*]

 

 

*Confidential Treatment Requested. 

Omitted portions filed with the Commission.

 

46

 

Schedule 6

(Section 5.3(a) - [*]

 

 

[*]

 

 

*Confidential Treatment Requested. 

Omitted portions filed with the Commission.

 

47

 

Schedule 7

(Section 5.3(b) - [*]

 

 

[*]

 

 

*Confidential Treatment Requested. 

Omitted portions filed with the Commission.

 

48

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