Document:

agen-ex432_376.htm

[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

Exhibit 4.32

AGENUS INC. 

COMMON STOCK PURCHASE AGREEMENT

THIS COMMON STOCK PURCHASE AGREEMENT (this “Agreement”) is made as of December 20, 2018 (the “Execution Date”) by and between Agenus Inc., a Delaware corporation (“Agenus”), and Gilead Sciences, Inc., a Delaware corporation (“Purchaser”). Agenus and Purchaser are each referred to herein by name or as a “Party” or, collectively, as the “Parties”.

RECITALS

WHEREAS, simultaneously with entering into this Agreement, the Parties are entering into a license agreement (the “License Agreement”) pursuant to which Agenus will license certain Agenus Intellectual Property with respect to the program known as AGEN1423 [******] to Purchaser, and will grant rights of first negotiation with respect to the programs known as [******] and [******] to Purchaser;

WHEREAS, simultaneously with entering into this Agreement, the Parties are entering into the Option and License Agreement with respect to the program known as AGEN1223 [******] and the Option and License Agreement with respect to the program known as AGEN2373 [******], pursuant to which Agenus will grant options to license certain Agenus Intellectual Property with respect to such programs to Purchaser (collectively with the License Agreement, the “Licenses”); and

WHEREAS, in connection with the Licenses and pursuant to terms set forth in this Agreement, Agenus desires to sell to Purchaser, and Purchaser desires to purchase from Agenus, shares of Common Stock in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506 of Regulation D as promulgated by the Commission  under the Securities Act (“Regulation D”).

NOW, THEREFORE, in consideration of the foregoing and the mutual agreements set forth below, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

SECTION 1

Purchase and Sale of Shares

1.1Sale of Shares. Subject to the terms and conditions hereof, Agenus will issue and sell to Purchaser, and Purchaser will purchase from Agenus, at the Closing (as defined below), 11,111,111 shares of Common Stock (the “Shares”) for a total purchase price of $30,000,000 (which the Parties agree represents a price per share equal to the daily volume-weighted average per share intraday price of the Common Stock on Nasdaq over the 30 trading day period ending on and including December 6, 2018 plus 35%) (the “Aggregate Purchase Price”). 

1.2Closing. The purchase and sale of the Shares shall take place at a closing (the “Closing”) to be held at the offices of Hogan Lovells US LLP, 875 Third Avenue, New York, NY 10022 on the Closing Date (as defined in the License Agreement), or such other time as agreed by both Parties (the “Investment Closing Date”). At the Closing, Agenus will deliver or cause to be delivered to Purchaser the Shares 

    

 

[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

represented by book-entry credits as instructed in writing by Purchaser and, concurrently, Purchaser shall pay the Aggregate Purchase Price by wire transfer in accordance with Agenus’s instructions.

SECTION 2

Representations and Warranties of Agenus

Except as set forth in Agenus’s disclosure letter (the “Disclosure Letter”), Agenus hereby represents and warrants the following as of the Execution Date and the Investment Closing Date:

2.1Organization and Good Standing and Qualifications. Agenus is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite power and authority to own, lease, operate and occupy its properties and to carry on its business as now being conducted.  Except for the subsidiaries set forth on Exhibit 21.1 to Agenus’s Form 10-K for the year ended December 31, 2017 or as set forth on Section 2.1 of the Disclosure Letter, all of which subsidiaries are wholly owned by Agenus, Agenus does not have any equity interest in, or control, any other business entity.  Agenus is duly qualified as a foreign corporation to do business and is in good standing in every jurisdiction in which the nature of the business conducted or property owned or leased by it makes such qualification necessary, other than those in which the failure so to qualify or be in good standing would not have a Material Adverse Effect.

2.2Authorization. (a) Agenus has the requisite corporate power and authority to enter into and perform its obligations under this Agreement; (b) the execution and delivery of this Agreement by Agenus, the consummation by Agenus of the transactions contemplated hereby and thereby and the issuance, sale and delivery of the Shares have been duly authorized by all necessary corporate action and no further consent or authorization of Agenus or its Board of Directors or stockholders is required; and (c) this Agreement has been duly executed and delivered and constitutes a valid and binding obligation of Agenus enforceable against Agenus in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, securities, insolvency, or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies, or indemnification or by other equitable principles of general application.

2.3Valid Issuance of Shares. The issuance of the Shares has been duly authorized by all requisite corporate action. When the Shares are issued, sold and delivered in accordance with the terms of this Agreement for the consideration expressed herein, the Shares will be duly and validly issued and outstanding, fully paid, and nonassessable, and will be free of all liens and restrictions on transfer other than restrictions on transfer under this Agreement and under applicable state and federal securities laws.

2.4No Conflict. The execution, delivery and performance of this Agreement, and any other document or instrument contemplated hereby, by Agenus and the consummation by Agenus of the transactions contemplated hereby, do not: (a) violate any provision of Agenus’s Amended and Restated Certificate of Incorporation (the “Certificate”), as amended, or Agenus’s By-laws (the “Bylaws”), (b) conflict with, or constitute a material default (or an event that with notice or lapse of time or both would become a default) under, or give to others any material rights of termination, amendment, acceleration or cancellation of, or require any consent of any third party that has not been obtained pursuant to, any material agreement, mortgage, deed of trust, indenture, note, bond, license, lease agreement, instrument, obligation or any other agreement or document filed, or required to be filed, pursuant to Item 601(b) of Regulation S-K promulgated under the Securities Act to which Agenus is a party, (c) create or impose a lien, charge or 

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[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

encumbrance on any material property of Agenus under any agreement or any commitment to which Agenus is a party or by which Agenus is bound, or (d) result in a material violation of any federal, state, local or foreign statute, rule, regulation, order, writ, judgment or decree (including federal and state securities laws and regulations) applicable to Agenus or any of its subsidiaries or by which any property or asset of Agenus are bound or affected. Agenus is not required under federal, state or local law, rule or regulation to obtain any consent, authorization or order of, or make any filing or registration with, any Governmental Authority in order for it to execute, deliver or perform any of its obligations under this Agreement or issue and sell the Shares in accordance with the terms hereof (other than any filings that may be required to be made by Agenus with the Commission, the Financial Industry Regulatory Authority, Nasdaq or state securities commissions subsequent to the Closing); provided that, for purposes of the representation made in this sentence, Agenus is assuming and relying upon the accuracy of the relevant representations and agreements of Purchaser herein. 

2.5Capitalization. As of November 30, 2018 (the “Reference Date”), a total of 31,620 shares of Series A-1 Convertible Preferred Stock of Agenus, 18,459 shares of Series C-1 Convertible Preferred Stock, and 119,995,686 shares of Common Stock were issued and outstanding. Agenus has not issued any capital stock since the Reference Date other than pursuant to (a) the exercise of stock options under Agenus’s stock option plans, (b) the issuance of shares of Common Stock to employees pursuant to Agenus’s employee stock purchase plans, (c) the issuance of shares of Common Stock pursuant to Agenus’s at-the-market sales agreement and pursuant to the conversion and/or exercise of warrants outstanding as of the date of and disclosed in the most recent Commission Document. No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by this Agreement. Except as disclosed on Section 2.5 of the Disclosure Letter, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments, understandings or arrangements by which Agenus is or may become bound to issue additional shares of Common Stock. Neither the issuance nor sale of the Shares will obligate Agenus to issue shares of Common Stock or other securities to any Person and will not result in a right of any holder of Agenus securities to adjust the exercise, conversion, exchange or reset price under any of such securities. All of the outstanding shares of capital stock of Agenus are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. There are no stockholders agreements, voting agreements or other similar agreements with respect to Agenus’s capital stock to which Agenus is a party or, to the knowledge of Agenus, between or among any of Agenus’s stockholders. 

2.6Commission Documents, Financial Statements. 

(a)The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Since January 1, 2017, Agenus has timely filed all reports, schedules, forms, statements and other documents required to be filed by it with the Commission pursuant to the reporting requirements of the Exchange Act, including material filed pursuant to Section 13(a) or 15(d) of the Exchange Act (all of the foregoing, including filings incorporated by reference therein and, for the avoidance of doubt, all reports, schedules, forms, statements and other documents required to be filed following the date hereof, being referred to herein as the “Commission Documents”). The Common Stock is currently listed on Nasdaq. Agenus is not in violation of the listing requirements of Nasdaq and has no knowledge of any facts that would reasonably lead to delisting or suspension of the Common Stock from Nasdaq in the foreseeable future. As of its date, each Commission Document filed since January 1, 

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[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

2017 complied in all material respects with the requirements of the Exchange Act and the rules and regulations of the Commission promulgated thereunder applicable to such document, and, as of its date, after giving effect to the information disclosed and incorporated by reference therein, no such Commission Document contained any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The Commission has not issued any stop order or other order suspending the effectiveness of any registration statement filed by Agenus under the Exchange Act or the Securities Act. 

(b)As of their respective dates, the financial statements of Agenus included in the Commission Documents filed with the Commission since January 1, 2017 complied as to form and substance in all material respects with applicable accounting requirements and the published rules and regulations of the Commission or other applicable rules and regulations with respect thereto. Such financial statements have been prepared in accordance with GAAP applied on a consistent basis during the periods involved (except (i) as may be otherwise indicated in such financial statements or the notes thereto or (ii) in the case of unaudited interim statements, to the extent they may not include footnotes or may be condensed or summary statements), and fairly present in all material respects the financial position of Agenus as of the dates thereof and the results of operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments).

2.7Internal Controls and Procedures. Agenus maintains disclosure controls and procedures as such terms are defined in, and required by, Rule 13a-15 and Rule 15d-15 under the Exchange Act. Such disclosure controls and procedures are effective as of the latest date of management’s evaluation of such disclosure controls and procedures as set forth in the Commission Documents to ensure that all material information required to be disclosed by Agenus in the reports that it files or furnishes under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Commission. Agenus maintains a system of internal controls over financial reporting sufficient to provide reasonable assurance that (a) transactions are executed in accordance with management’s general or specific authorizations; and (b) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP. Agenus has disclosed, based on its most recent evaluation prior to the date hereof, to Agenus’s auditors and the audit committee of Agenus’s Board of Directors (y) any material weaknesses in its internal control over financial reporting and (z) any allegation of fraud that involves management of Agenus or any other employees of Agenus who have a significant role in Agenus’s internal control over financial reporting or disclosure controls and procedures. 

2.8Sarbanes-Oxley. Since January 1, 2017, Agenus has been in material compliance with all applicable provisions of the Sarbanes-Oxley Act of 2002, as amended.

2.9Material Adverse Change. Since September 30, 2018, no event or series of events has or have occurred that would, individually or in the aggregate, have a Material Adverse Effect on Agenus.

2.10No Undisclosed Liabilities. Neither Agenus nor any of its subsidiaries has any liabilities, obligations, claims or losses (whether liquidated or unliquidated, secured or unsecured, absolute, accrued, contingent or otherwise) that would be required to be disclosed on a balance sheet of Agenus or any of its subsidiaries (including the notes thereto) in conformity with GAAP and are not disclosed in the Commission Documents, other than those incurred in the ordinary course of Agenus’s or its subsidiaries’ respective businesses since September 30, 2018.

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[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

2.11No Undisclosed Events or Circumstances. Except for the transactions contemplated by this Agreement and the Licenses, no event or circumstance has occurred or exists with respect to Agenus, its subsidiaries, or their respective businesses, properties, operations or financial condition that, under applicable law, rule or regulation, requires a filing with the Commission on Form 8-K (or would be required to be included in a registration statement filed under the Securities Act were such a registration statement filed on the date hereof) or public disclosure or announcement by Agenus but that has not been so filed or publicly announced or disclosed.

2.12Actions Pending. There is no Action pending or, to the knowledge of Agenus, threatened against Agenus or any subsidiary that questions the validity of this Agreement or the transactions contemplated hereby or any action taken or to be taken pursuant hereto. There is no Action pending or, to the knowledge of Agenus, threatened, against or involving Agenus, any subsidiary, or any of their respective properties or assets that could be reasonably expected to have a Material Adverse Effect on Agenus. No judgment, order, writ, injunction, decree or award has been issued by or, to the knowledge of Agenus, requested of any Governmental Authority that could be reasonably expected to result in a Material Adverse Effect. 

2.13Compliance with Law. Agenus has all material permits, licenses, franchises, authorizations, orders and approvals of (collectively, “Permits”), and has made all filings, applications and registrations with, Governmental Authorities that are required in order to permit Agenus to own or lease its properties and assets and to carry on its business as presently conducted. Neither the issuance or sale of the Shares hereunder nor the performance of Agenus’s other obligations under this Agreement, will result in the suspension, revocation, impairment, forfeiture or nonrenewal of any Permit applicable to Agenus, its businesses or operations or any of its assets or properties. Agenus and its subsidiaries have complied and are in compliance in all material respects with all Permits, statutes, laws, regulations, rules, judgments, orders and decrees of all Governmental Authorities applicable to it. Agenus has not received any notice alleging noncompliance, and, to the knowledge of Agenus, Agenus is not under investigation with respect to, or threatened to be charged with, any material violation of any applicable statutes, laws, regulations, rules, judgments, orders or decrees of any Governmental Authorities. Agenus has not received any notice of proceedings relating to the suspension, revocation, impairment, forfeiture or nonrenewal of any Permit. Except as disclosed in the Commission Documents, since January 1, 2014, Agenus has not entered into or been subject to any judgment, consent decree, compliance order or administrative order with respect to any aspect of the business, affairs, properties or assets of Agenus or received any formal or informal complaint or claim from any Governmental Authority with respect to any aspect of the business, affairs, properties or assets of Agenus.

2.14Patents and Trademarks. Except as otherwise disclosed on Section 2.14 of the Disclosure Letter, Agenus owns, or has the right pursuant to a valid, written license agreement to use and exploit, all Intellectual Property used in or necessary for the conduct of the business of Agenus and that is material to the business of Agenus as currently conducted (collectively, the “Agenus Intellectual Property”). Since January 1, 2014, no claims have been asserted by a third party in writing (including any Governmental Authority) (a) alleging that the conduct of the business of Agenus has infringed or misappropriated any Intellectual Property of any third party, or (b) challenging or questioning the patentability (except in the case of proceedings relating to the prosecution and maintenance of the Agenus Intellectual Property in the ordinary course of business), validity, enforceability, or effectiveness of any Agenus Intellectual Property.  To Agenus’s knowledge, there is no valid basis for any claim by a third party (including any Governmental Authority) (x) alleging that the conduct of the business of Agenus has infringed or misappropriated any 

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[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

Intellectual Property of any third party, or (y) challenging or questioning the validity, enforceability, or effectiveness of any Agenus Intellectual Property. To the knowledge of Agenus, all issued patents and registered trademarks that are Agenus Intellectual Property are valid and enforceable and there is no existing infringement by another Person of any of the Agenus Intellectual Property.  To the knowledge of Agenus, there are no actual or threatened disputes concerning any of the Agenus Intellectual Property.  Neither Agenus nor any of its subsidiaries has received a notice (written or otherwise) that any material Agenus Intellectual Property has expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned, within three years from the date of this Agreement.

2.15Taxes. (a) Agenus and its subsidiaries have filed all tax returns that are required to have been filed by each of them or has requested extensions of the filing date thereof and (b) Agenus and its subsidiaries have paid all taxes required to be paid by any of them and any other assessment, fine or penalty levied against any of them, to the extent that any of the foregoing is due and payable, except in the case of clauses (a) and (b), for any such assessment, fine or penalty that is currently being contested in good faith or as would not have a Material Adverse Effect, whether or not arising from transactions in the ordinary course of business and (c) there are no tax audits ongoing of which Agenus has received written notice.

2.16Exemption from Registration, Valid Issuance. Subject to, and in reliance on, the representations, warranties and covenants made herein by Purchaser, the issuance and sale of the Shares in accordance with the terms and on the bases of the representations and warranties set forth in this Agreement may and shall be properly issued pursuant to Section 4(a)(2) of the Securities Act, Regulation D and any other applicable federal and state securities laws. The sale and issuance of the Shares pursuant to, and Agenus’s performance of its obligations under, this Agreement will not (i) result in the creation or imposition of any liens, charges, claims or other encumbrances upon the Shares or any of the assets of Agenus, or (ii) entitle the holders of any outstanding shares of capital stock of Agenus to preemptive or other rights to subscribe to or acquire the Shares or other securities of Agenus.

2.17No Bad Actors. None of Agenus, any of its predecessors, any affiliated issuer, any director, executive officer, other officer of Agenus any beneficial owner of twenty percent (20%) or more of Agenus’s outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities Act) connected with Agenus in any capacity at the time of sale (each, an “Issuer Covered Person”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). Agenus has exercised reasonable care to determine whether any Issuer Covered Person is subject to a Disqualification Event.

2.18No Integrated Offering. Neither Agenus, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the Shares to be integrated with prior offerings by Agenus for purposes of the Securities Act or any applicable stockholder approval provisions, including, without limitation, under the rules and regulations of any exchange or automated quotation system on which any of the securities of Agenus are listed or designated.

2.19Health Laws and FDA Compliance. (a) Each of Agenus and each of its subsidiaries is and has been in compliance in all material respects with statutes, laws, ordinances, rules and regulations applicable to Agenus or its subsidiaries for the ownership, testing, development, manufacture, packaging, processing, use, labeling, storage, or disposal of any product manufactured by or on behalf of Agenus and its subsidiaries or out-licensed by Agenus and its subsidiaries (each an “Agenus Product”), including without 

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[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

limitation, the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. § 301, et seq., the Public Health Service Act, 42 U.S.C. § 262, similar (collectively, “Applicable Health Laws”); (b) Agenus and its subsidiaries possess all material licenses, certificates, approvals, authorizations, permits and supplements or amendments thereto required by any such Applicable Health Laws and/or for the ownership of their properties or the conduct of their business as it relates to an Agenus Product and as described in Commission Documents (collectively, “Authorizations”) and such Authorizations are valid and in full force and effect and neither Agenus nor any of its subsidiaries is in violation of any term of any such Authorizations; (c) neither Agenus nor any of its subsidiaries has received any written notice of adverse finding, warning letter or other written correspondence or notice from the U.S. Food and Drug Administration (the “FDA”) or any other Governmental Authority alleging or asserting noncompliance with any Applicable Health Laws or Authorizations relating to an Agenus Product; (d) neither Agenus nor any of its subsidiaries has received written notice of any ongoing claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration or other action from any Governmental Authority or third party alleging that any Agenus Product, operation or activity related to an Agenus Product is in violation of any Applicable Health Laws or Authorizations; and (e) neither Agenus nor any of its subsidiaries has received written notice that any Governmental Authority has taken, is taking or intends to take action to limit, suspend, modify or revoke any Authorizations. 

2.20Tests and Preclinical and Clinical Trials. The studies, tests and preclinical and clinical trials conducted by or, to Agenus’s knowledge, on behalf of Agenus that are described in the Commission Documents were and, if still pending, are being, conducted in all material respects in accordance with any applicable protocols submitted to the FDA or any Governmental Authority exercising comparable authority, procedures and controls pursuant to, where applicable, accepted professional and scientific standards, and all applicable laws, rules and regulations; the descriptions of the studies, tests and preclinical and clinical trials conducted by or, to Agenus’s knowledge, on behalf of Agenus, and the results thereof, contained in the Commission Documents are accurate and complete in all material respects; to Agenus’s knowledge, there are no subsequent studies, tests or preclinical and clinical trials, the results of which call into question the results described in the Commission Documents; and Agenus has not received any notices or correspondence from the FDA, any Governmental Authority exercising comparable authority or any Institutional Review Board requiring the termination, suspension, material modification or clinical hold of any studies, tests or preclinical or clinical trials conducted by or on behalf of Agenus.

2.21Solvency. Agenus has not: (a) made a general assignment for the benefit of creditors; (b) filed any voluntary petition in bankruptcy or suffered the filing of any involuntary petition by its creditors; (c) suffered the appointment of a receiver to take possession of all, or substantially all, of its assets; (d) suffered the attachment or other judicial seizure of all, or substantially all, of its assets; (e) admitted in writing its inability to pay its debts as they come due; or (f) made an offer of settlement, extension or composition to its creditors generally.

2.22Investment Company. Agenus is not and, immediately after giving effect to the offering and sale of the Shares, will not be an “investment company” as defined in the Investment Company Act of 1940, as amended.

2.23Regulation M Compliance. Agenus has not, and to its knowledge no one acting on its behalf has, (a) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of Agenus to facilitate the sale or resale of any of the Shares, (b) sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the Shares, or (c) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of Agenus.

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[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

2.24Whistleblowers. To the knowledge of Agenus, as of the date hereof, no employee of Agenus or any of its subsidiaries has provided since January 1, 2014 or is providing information to any law enforcement agency regarding the violation of any applicable law of the type described in Section 806 of the Sarbanes-Oxley Act by Agenus or its subsidiaries. Neither Agenus nor its subsidiaries have discharged, demoted or suspended an employee of Agenus or its subsidiaries in the terms and conditions of employment because of any lawful act of such employee described in Section 806 of the Sarbanes-Oxley Act.

2.25Brokers. Except as set forth on Section 2.23 of the Disclosure Letter, there are no brokers, finders or financial advisory fees or commissions that will be payable by Agenus or any of its subsidiaries in respect of the transactions contemplated by this Agreement or the Licenses.

2.26Money Laundering. The operations of Agenus are and have been conducted at all times in compliance with applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the “Money Laundering Laws”), and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving Agenus with respect to the Money Laundering Laws is pending or, to the knowledge of Agenus, threatened.

2.27Foreign Corrupt Practices. Neither Agenus, nor to the knowledge of Agenus, any agent or other Person acting on behalf of Agenus, has (a) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (b) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (c) failed to disclose fully any contribution made by Agenus (or made by any Person acting on its behalf of which Agenus is aware) which is in violation of the law, or (d) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

2.28Acknowledgment. Agenus acknowledges and agrees that Purchaser will rely upon the truth and accuracy of, and Agenus’s compliance with, the representations, warranties, agreements, acknowledgements and understandings of Agenus set forth herein, the Licenses or any other document or instrument executed and/or delivered in connection with this Agreement or the consummation of the transactions contemplated hereby. Agenus acknowledges and agrees that the representations contained in SECTION 3 shall not modify, amend or affect Purchaser’s right to rely on Agenus’s representations, warranties, agreements, acknowledgements and understandings contained in this Agreement, the Licenses or any other document or instrument executed and/or delivered in connection with this Agreement or the consummation of the transactions contemplated hereby.

SECTION 3

Representations and Warranties of Purchaser

Purchaser hereby represents and warrants the following as of the Execution Date and as of the Investment Closing Date:

3.1Experience. Purchaser is experienced in evaluating companies such as Agenus, has such knowledge and experience in financial and business matters that Purchaser is capable of evaluating the merits 

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and risks of Purchaser’s prospective investment in Agenus, and has the ability to bear the economic risks of the investment.

3.2Investment. Purchaser is acquiring the Shares for investment for Purchaser’s own account and not with the view to, or for resale in connection with, any distribution thereof. Purchaser understands that the Shares have not been registered under the Securities Act by reason of a specific exemption from the registration provisions of the Securities Act that depends upon, among other things, the bona fide nature of the investment intent as expressed herein. Purchaser further represents that it does not have any contract, undertaking, agreement or arrangement with any Person to sell, transfer or grant participation to any third person with respect to any of the Shares. 

3.3Rule 144. Purchaser acknowledges that the Shares must be held indefinitely unless subsequently registered under the Securities Act or an exemption from such registration is available. Purchaser is aware of the provisions of Rule 144 that permit limited resale of shares purchased in a private placement subject to the satisfaction of certain conditions. In connection therewith, Purchaser acknowledges that Agenus will make a notation on its stock books regarding the restrictions on transfers set forth in this SECTION 3, subject to Section 7.4, and will transfer the Shares on the books of Agenus only to the extent not inconsistent herewith and therewith.

3.4Access to Information. Purchaser has received and reviewed information about Agenus and has had an opportunity to discuss Agenus’s business, management and financial affairs with its management and to review Agenus’s facilities. Purchaser has had a full opportunity to ask questions of and receive answers from Agenus, or any Person or Persons acting on behalf of Agenus, concerning the terms and conditions of an investment in the Shares. 

3.5Authorization. This Agreement has been duly executed and delivered and constitutes a valid and binding obligation of Purchaser enforceable against Purchaser in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, securities, insolvency, or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies, or indemnification or by other equitable principles of general application.

3.6Investor Status. Purchaser acknowledges that it is an institutional “accredited investor” as defined in Rule 501(a) of Regulation D of the Securities Act, and Purchaser shall submit to Agenus such further assurances of such status as may be reasonably requested by Agenus. 

3.7No Inducement. Purchaser was not induced to participate in the offer and sale of the Shares by the filing of any registration statement in connection with any public offering of Agenus’s securities, and Purchaser’s decision to purchase the Shares hereunder was not influenced by the information contained in any such registration statement.

3.8Purpose and Effect. Purchaser is not acquiring the Shares for the purpose of or, to the knowledge of Purchaser, with the effect of, changing or influencing the control of Agenus, or in connection with or as a participant in any transaction that to the knowledge of Purchaser has that purpose or effect.

3.9Brokers.  There are no brokers, finders or financial advisory fees or commissions that will be payable by Purchaser or any of its subsidiaries in respect of the transactions contemplated by this Agreement or the Licenses.

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SECTION 4

Conditions to Purchaser’s Obligations at Closing

The obligations of Purchaser under this Agreement are subject to the fulfillment on or before the Closing of each of the following conditions, any of which may be waived in writing by Purchaser (except to the extent not permitted by law):

4.1No Injunction, etc. No preliminary or permanent injunction or other binding order, decree or ruling issued by a Governmental Authority shall be in effect that shall have the effect of preventing the consummation of the transactions contemplated by this Agreement. No action or claim shall be pending before any Governmental Authority or before any arbitrator wherein an unfavorable injunction, judgment, order, decree, ruling or charge would be reasonably likely to (a) prevent consummation of any of the transactions contemplated by this Agreement, (b) cause any of the transactions contemplated by this Agreement to be rescinded following consummation, or (c) have the effect of making illegal the purchase of, or payment for, any of the Shares by Purchaser.

4.2Representations and Warranties. The representations and warranties of Agenus contained in SECTION 2 shall be true and correct in all material respects on and as of the Closing, except to the extent such representations and warranties are made as of another date, in which case such representations and warranties shall be true and correct as of such other date.

4.3Performance. Agenus shall have performed and complied with all covenants, agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by it on or before the Closing.

4.4Securities Laws. The offer and sale of the Shares to Purchaser pursuant to this Agreement shall be exempt from the registration requirements of the Securities Act and the registration and/or qualification requirements of all applicable state securities laws.

4.5Trading. From the date hereof to the Investment Closing Date, trading in the Common Stock shall not have been suspended by the Commission or Nasdaq, nor shall a banking moratorium have been declared either by the United States or New York State authorities, nor shall there have occurred any material outbreak or escalation of hostilities or other national or international calamity of such magnitude in its effect on any financial market which, in each case, remains in effect as of the Investment Closing Date and would prevent the Purchaser from purchasing the Shares at the Closing.

4.6Transfer Agent Instructions. Agenus shall deliver to its Transfer Agent irrevocable written instructions to issue the Shares to Purchaser in a form and substance acceptable to the Transfer Agent.

4.7Authorizations. All authorizations, approvals or permits, if any, of any Governmental Authority that are required in connection with the lawful issuance and sale of the Shares pursuant to this Agreement shall have been duly obtained and shall be effective on and as of the Closing. 

4.8Nasdaq Qualification. The Shares will be duly authorized for listing by Nasdaq, subject to official notice of issuance.

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4.9Licenses. The Licenses shall be in effect. Any applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (15 U.S.C. § 18a) related to the transactions contemplated under the License Agreement shall have expired or terminated.

4.10Registration Rights Agreement. Purchaser shall have received an executed counterpart to the Registration Rights Agreement.

4.11Legal Opinion. Purchaser shall have received a legal opinion from Ropes & Gray LLP in form and substance reasonably acceptable to Purchaser. 

4.12No Material Adverse Effect. No Material Adverse Effect with respect to Agenus shall have occurred or be existing as of the Closing.

4.13Compliance Certificate. A duly authorized officer of Agenus shall deliver to Purchaser at the Closing a certificate stating that the conditions specified in Sections 4.2, 4.3 and 4.12 have been fulfilled and certifying and attaching the Certificate, the Bylaws and authorizing Board of Directors resolutions with respect to this Agreement, the Licenses and the transactions contemplated hereby and thereby.

SECTION 5

Conditions to Agenus’s Obligations at Closing

The obligations of Agenus to Purchaser under this Agreement are subject to the fulfillment on or before the Closing of each of the following conditions by Purchaser:

5.1Representations and Warranties. The representations and warranties of Purchaser contained in SECTION 3 shall be true and correct in all material respects on and as of the Closing, except to the extent such representations and warranties are made as of another date, in which case such representations and warranties will be true and correct as of such other date.

5.2Securities Law. The offer and sale of the Shares to Purchaser pursuant to this Agreement shall be exempt from the registration requirements of the Securities Act and the registration and/or qualification requirements of all applicable state securities laws.

5.3Authorization. All authorizations, approvals or permits, if any, of any Governmental Authority that are required in connection with the lawful issuance and sale of the Shares pursuant to this Agreement shall have been duly obtained and shall be effective on and as of the Closing.

5.4Registration Rights Agreement. Agenus shall have received an executed counterpart to the Registration Rights Agreement.

5.5Licenses. The Licenses shall be in effect. 

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SECTION 6

Agenus Covenants

6.1Conduct of Business Prior to the Closing. From the date hereof until the Closing, except as otherwise provided in this Agreement or consented to in writing by Purchaser (which consent shall not be unreasonably withheld or delayed), Agenus shall use its reasonable best efforts to (x) conduct Agenus’s business in the ordinary course of business consistent with past practice; and (y) maintain and preserve intact the current organization and business of Agenus and to preserve the rights, franchises, goodwill and relationships of its employees, collaborators, regulators and others having business relationships with Agenus. Without limiting the foregoing, from the date hereof until the Investment Closing Date, Agenus shall not:

(a)authorize or effect any amendment or change to the Certificate or the Bylaws, including any amendment to the Certificate that has the effect of splitting, combining, reclassifying, recapitalizing, or modifying the terms of any equity interests of Agenus;

(b)declare, set aside or pay any cash dividend on, or make any other cash distribution in respect of outstanding equity securities of Agenus or any of its subsidiaries, except for cash dividends by a wholly owned subsidiary of Agenus to Agenus or another wholly owned subsidiary of Agenus;

(c)sell, transfer, abandon, allow to lapse, license or otherwise encumber any Agenus Intellectual Property, except in the ordinary course of business consistent with past practice or that would not reasonably be expected to have an adverse effect on the transactions contemplated in the Licenses; 

(d)except as set forth on Section 6.1(d) of the Disclosure Letter, adopt a plan of complete or partial liquidation, dissolution, merger, consolidation, restructuring, recapitalization or other reorganization of Agenus or any of its subsidiaries; or

(e)authorize, or commit or agree to take, any of the foregoing actions.

6.2Commission Filings. Agenus will timely make all filings with the Commission that are required by Agenus in connection with its entrance into this Agreement and the offer and sale of the Shares.

6.3Listing of Common Stock, No Integrated Offerings. Agenus shall take no action designed to, or which to the knowledge of Agenus is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act. Agenus agrees to use reasonable best efforts to file with the Commission in a timely manner all reports and other filings required of Agenus under the Securities Act and the Exchange Act. Agenus further agrees, if Agenus applies to have the Common Stock traded on any other trading market, it will include in such application all of the Shares, and will take such other action as is necessary to cause all of the Shares to be listed on such other trading market as promptly as possible. Agenus shall take all action reasonably necessary to continue the listing and trading of its Common Stock, including the Shares, on Nasdaq and will comply in all material respects with Agenus’s reporting, filing and other obligations under the bylaws or rules of Nasdaq. Agenus currently meets the continuing eligibility requirements for listing on Nasdaq and has not received in the past twelve (12) months any notification of non-compliance of applicable Nasdaq listing standards. Agenus shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Shares in a manner that would require the registration under the 

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Securities Act of the sale to Purchaser of the Shares, or that would be integrated with the offer or sale of the Shares for purposes of the rules and regulations of Nasdaq.

6.4Use of Proceeds. Agenus shall use the net proceeds from the sale of the Shares hereunder for working capital purposes and shall not use such proceeds: (a) for the redemption of any Common Stock, outstanding preferred stock, options or warrants or any other securities convertible thereto or exercisable or exchangeable therefor, (b) for the settlement of any outstanding litigation or (c) in violation of FCPA or regulations of the Office of Foreign Assets Control of the U.S. Treasury Department.  For the avoidance of doubt, a payment described in clause (a) – (b) shall not be deemed to use the net proceeds from the sale of the Shares, so long as immediately prior to such payment Agenus has cash on hand or the right to receive third-party proceeds sufficient to make such payment without taking into account the proceeds from such sale. 

6.5Notices of Certain Events. Agenus shall as promptly as reasonably practicable notify Purchaser of: (i) any notice or other communication of which Agenus has knowledge from any Person alleging that the consent of such Person (or another Person) is or may be required in connection with the transactions contemplated by this Agreement; (ii) any notice or other communication of which Agenus has knowledge from any Governmental Authority in connection with the transactions contemplated by this Agreement; (iii) any Actions commenced or, to the knowledge of Agenus, threatened against, relating to or involving or otherwise affecting Agenus or any of its subsidiaries that, if pending on the date of this Agreement, would have been required to have been disclosed pursuant to Section 2.10 or which relate to the consummation of the transactions contemplated by this Agreement; and (iv) any fact or occurrence between the date of this Agreement and the Execution Date of which it has knowledge that makes any of its representations contained in this Agreement untrue in any material respect or causes any material breach of its obligations under this Agreement.

SECTION 7

Purchaser Covenants; Resales; Registration Rights, Legends

7.1Stock Ownership Guidance.

(a)Lock-Up Period. Excluding any transfers of Shares between Purchaser and any of its Affiliates, during the twelve (12) month period beginning on the Investment Closing Date and ending on the first anniversary thereof (the “Lock-Up Period”), Purchaser shall not, and shall not cause any other holder of the Shares to, without the prior written consent of Agenus, sell, contract to sell, pledge or otherwise dispose of, directly or indirectly, any Shares or enter into a transaction which would have the same effect. Notwithstanding any other provision of this Section 7.1(a), this Section 7.1(a) shall not prohibit or restrict any disposition of Shares into (i) a tender offer or a merger or binding share exchange effected by a third party that if completed in accordance with its terms would result in a change of control or (ii) an issuer tender offer. All restrictions pursuant to this Section 7.1(a) shall terminate upon (x) a change of control of Agenus and (y) a liquidation or dissolution of Agenus.

(b)Market Stand-Off Agreement. During the Lock-Up Period, Purchaser agrees that in connection with any registration of Agenus’s securities that, upon the request of Agenus or the underwriters managing any underwritten offering of Agenus’s securities, Purchaser will deliver its written agreement not to sell, make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of any Shares without the prior written consent of Agenus or such underwriters, as the case may be, for such period of time within the Lock-Up Period as Agenus or the underwriters may specify.

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(c)Standstill. Notwithstanding anything in this Section 7.1 to the contrary, from the date hereof until the expiration of the Lock-Up Period, Purchaser and its Affiliates may not acquire an aggregate number of Voting Securities that, together with the Shares and any other Voting Securities beneficially owned by Purchaser on the date hereof would represent 15% or more of the voting power represented by Agenus’ Voting Securities.  Nothing in this Section 7.1 shall restrict (i) passive investments by any employee benefit plan of Purchaser or its Affiliates or (ii) any acquisition of Voting Securities by virtue of a transaction with any stockholder of Agenus the primary purpose of which is not to elude this Section 7.1(c). Notwithstanding the foregoing, the provisions of this Section 7.1(c) shall be deemed to have terminated, and the restrictions in Section 7.1(c) shall terminate, upon the occurrence of the following: (x) Agenus publicly announces the execution of a definitive agreement contemplating a transaction pursuant to which Agenus’s stockholders immediately prior to the transaction will own less than 50% of the voting securities of the surviving parent entity immediately following the transaction, (y) the commencement by any third party of a tender offer seeking to acquire beneficial ownership of more than 50% of Agenus’s outstanding voting securities; or (z) Agenus publicly announces the commencement of a process to solicit proposals for a potential business combination transaction.

(d)Remedies. Without prejudice to the rights and remedies otherwise available to the parties, Agenus shall be entitled to seek equitable relief by way of injunction if Purchaser or any other holder of the Shares breaches or threatens to breach any of the provisions of this Section 7.1.

(e)Voting. During the Lock-Up Period, Purchaser shall vote, or cause to be voted, all shares of Common Stock then beneficially owned by Purchaser, in accordance with the recommendation of the Board of Directors on any matters presented to Agenus’s stockholders with respect to any of Agenus’s equity incentive plans or compensation matters that, in each case, apply to employees of Agenus generally.

7.2Rule 144 Reporting. With a view to making available to Purchaser the benefits of certain rules and regulations of the Commission that may permit the sale of the Shares to the public without registration, Agenus agrees to use commercially reasonable efforts to:

(a)make and keep current public information available, as those terms are understood and defined in Rule 144;

(b)file with the Commission in a timely manner all reports and other documents required of Agenus under the Exchange Act; and

(c)furnish Purchaser forthwith upon request (i) a written statement by Agenus as to its compliance with the current public information requirements of Rule 144, (ii) a copy of the most recent annual or quarterly report of Agenus, and (iii) such other reports and documents as may be reasonably requested in availing Purchaser of any rule or regulation of the Commission permitting the sale of any such securities without registration.

7.3Registration. Agenus shall provide Purchaser with the registration rights set forth in the Registration Rights Agreement.

7.4Restrictive Legend. The book-entry credits representing the Shares, when issued, will bear a restrictive legend in substantially the following form:

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“THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED.”

The legend set forth in this Section 7.4 and the related notation in Agenus’s stock books shall be removed and Agenus shall cause such legend to be removed from the book-entry credits representing the Shares within two Business Days of receipt of a request pursuant to Section 9.6 by Purchaser if (i) the Shares are registered for resale under the Securities Act, (ii) the Shares are sold or transferred in compliance with Rule 144, or (iii) the Shares are eligible for sale under Rule 144 without the requirement for Agenus to be in compliance with the current public information required under Rule 144. Following Rule 144 becoming available for the resale of Shares, without the requirement for Agenus to be in compliance with the current public information required under Rule 144, Agenus shall (at Agenus’s expense), upon the written request of Purchaser, and within two Business Days of receipt of such request pursuant to Section 9.6, cause its counsel to issue to the Transfer Agent a legal opinion authorizing the removal of the legend from the book-entry credits representing the Shares, if requested by the Transfer Agent.

SECTION 8

Indemnification

Each Party (an “Indemnifying Party”) hereby indemnifies and holds harmless the other Party, such other Party’s respective officers, directors, employees, consultants, representatives and advisers, and any and all Affiliates of the foregoing (each of the foregoing, an “Indemnified Party”) from and against all losses, liabilities, costs, damages and expense (including reasonable legal fees and expenses) suffered or incurred by any such Indemnified Party to the extent arising from, connected with or related to (i) breach of any representation or warranty of such Indemnifying Party in this Agreement; and (ii) breach of any covenant or undertaking of any Indemnifying Party in this Agreement. If an event or omission (including, without limitation, any claim asserted or action or proceeding commenced by a third party) occurs that an Indemnified Party asserts to be an indemnifiable event pursuant to this Section 8, the Indemnified Party will provide written notice to the Indemnifying Party, setting forth the nature of the claim and the basis for indemnification under this Agreement. The Indemnified Party will give such written notice to the Indemnifying Party immediately after it becomes aware of the existence of any such event or occurrence. Such notice will be a condition precedent to any obligation of the Indemnifying Party to act under this Agreement but will not relieve it of its obligations under the indemnity except to the extent that the failure to provide prompt notice as provided in this Agreement prejudices the Indemnifying Party with respect to the transactions contemplated by this Agreement and to the defense of the liability. In case any such action is brought by a third party against any Indemnified Party and it notifies the Indemnifying Party of the commencement thereof, the Indemnifying Party will be entitled to participate therein and, to the extent that it wishes, to assume the defense and settlement thereof with counsel reasonably selected by it and, after notice from the Indemnifying Party to the Indemnified Party of such election so to assume the defense and settlement thereof, the Indemnifying Party will not be liable to the Indemnified Party for any legal expenses of other counsel or any other expenses subsequently incurred by such Indemnified Party in connection with the defense thereof, 

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provided, however, that an Indemnified Party shall have the right to employ separate counsel at the expense of the Indemnifying Party if (i) the employment thereof has been specifically authorized in writing by the Indemnifying Party or (ii) representation of both parties by the same counsel would be inappropriate due to actual or potential conflicts of interests between such parties (which such judgment shall be made in good faith after consultation with counsel). The Indemnified Party agrees to cooperate fully with (and to provide all relevant documents and records and make all relevant personnel available to) the Indemnifying Party and its counsel, as reasonably requested, in the defense of any such asserted claim at no additional cost to the Indemnifying Party. No Indemnifying Party will consent to the entry of any judgment or enter into any settlement with respect to any such asserted claim without the prior written consent of the Indemnified Party, not to be unreasonably withheld or delayed, (a) if such judgment or settlement does not include as an unconditional term thereof the giving by each claimant or plaintiff to each Indemnified Party of a release from all liability in respect to such claim or (b) if, as a result of such consent or settlement, injunctive or other equitable relief would be imposed against the Indemnified Party or such judgment or settlement could materially and adversely affect the business, operations or assets of the Indemnified Party. No Indemnified Party will consent to the entry of any judgment or enter into any settlement with respect to any such asserted claim without the prior written consent of the Indemnifying Party, not to be unreasonably withheld or delayed. If an Indemnifying Party makes a payment with respect to any claim under the representations or warranties set forth herein and the Indemnified Party subsequently receives from a third party or under the terms of any insurance policy a sum in respect of the same claim, the receiving party will repay to the other party such amount that is equal to the sum subsequently received. 

SECTION 9

Miscellaneous

9.1Termination. This Agreement may be terminated at any time prior to Closing:

(a)by mutual written consent of Purchaser and Agenus; 

(b)by Purchaser or Agenus:

(i)if there shall be any statute, law, regulation or rule that makes consummating the transactions contemplated hereby illegal or if any Governmental Authority shall have issued a judgment, order, decree or ruling, or shall have taken such other action restraining, enjoining or otherwise prohibiting the issuance of the Shares contemplated hereby and such judgment, order, decree or ruling shall have become final and non-appealable; or

(ii)if any of the Licenses shall have terminated;

(c)by Purchaser:

(i)if Agenus shall have (A) failed to perform any of its material obligations contained herein, or (B) breached any of its material representations or warranties contained herein, provided that Purchaser gives Agenus written notice of such failure to perform or breach and Agenus does not cure such failure to perform or breach within 30 days after its receipt of such written notice, and provided, further, that the right to terminate this Agreement under this Section 9.1(c)(i) shall not be available to Purchaser if Purchaser is then in breach of this Agreement;

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(ii)if any of the conditions set forth in SECTION 4 shall become impossible to fulfill (other than as a result of any breach by Purchaser of the terms of this Agreement) and shall not have been waived in accordance with the terms of this Agreement; or

(iii)if the Common Stock shall no longer be listed for trading on Nasdaq or another national securities exchange or automated quotation system;

(d)by Agenus:

(i)if Purchaser shall have (A) failed to perform any of its material obligations contained herein, or (B) breached any of its material representations or warranties contained herein, provided that Agenus gives Purchaser written notice of such failure to perform or breach and Purchaser does not cure such failure to perform or breach within 30 days after its receipt of such written notice, and provided, further, that the right to terminate this Agreement under this Section 9.1(d)(i) shall not be available to Agenus if Agenus is then in breach of this Agreement; or

(ii)if any of the conditions set forth in SECTION 5 shall become impossible to fulfill (other than as a result of any breach by Agenus of the terms of this Agreement) and shall not have been waived in accordance with the terms of this Agreement.

(e)If this Agreement is terminated and the transactions contemplated hereby are not consummated as described above, this Agreement shall become void and of no further force and effect, provided, however, that (i) none of the Parties shall have any liability in respect of a termination of this Agreement pursuant to Sections 9.1(a) or 9.1(b)(i), and (ii) nothing shall relieve any of the Parties from liability for actual damages resulting from a termination of this Agreement pursuant to Sections 9.1(c) or 9.1(d); and provided, further, except in the case of fraud or willful misconduct, that none of the Parties shall have any liability for speculative, indirect, unforeseeable or consequential damages or lost profits resulting from any legal action relating to any termination of this Agreement.

9.2Governing Law. This Agreement and any dispute arising from the performance or breach hereof shall be governed by and interpreted in accordance with the laws of the State of New York, without giving effect to any choice of law rules. The provisions of the United Nations Convention on Contracts for the International Sale of Goods shall not apply to this Agreement or any subject matter hereof.

9.3Jurisdiction. Each Party irrevocably submits to the exclusive jurisdiction of the United States District Court for the Southern District of New York for the purposes of any suit, action or other proceeding arising out of this Agreement. Each Party agrees to commence any such action, suit or proceeding in the United States District Court for the Southern District of New York or if such suit, action or other proceeding may not be brought in such court for jurisdictional reasons, in the Supreme Court of the State of New York, New York County. Each Party irrevocably and unconditionally waives any objection to the laying of venue of any such action, suit or proceeding arising out of this Agreement in the United States District Court for the Southern District of New York, and hereby and thereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum.  

9.4Investigation. The representations, warranties, covenants and agreements made herein shall survive any investigation made by Purchaser and the Closing. The representations, warranties, covenants and agreements of Agenus shall not be affected or deemed waived by reason of any investigation made by or 

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on behalf of Purchaser (including by any of its Representatives) or by reason of the fact that Purchaser or any of its Representatives knew or should have known that any such representation or warranty is, was or might be inaccurate or by reason of Purchaser’s waiver of any condition set forth in SECTION 4.

9.5Successors, Assigns. Except as otherwise provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the Parties. This Agreement may not be assigned by either Party without the prior written consent of the other; except that Purchaser may assign this Agreement to an Affiliate and either Party may assign this Agreement to any third party that acquires all or substantially all of such Party’s business, whether by merger, sale of assets or otherwise.

9.6Notices. Any notice required or permitted to be given by this Agreement shall be in writing and in English and shall be: (a) delivered by hand or by overnight courier with tracking capabilities; (b) mailed postage prepaid by first class, registered, or certified mail; (c) delivered by facsimile; or (d) soley for the purposes of requests pursuant to Section 7.4, delivered by email to Agenus, in each case, addressed as set forth below unless changed by notice so given:

	

	
 

If to Purchaser:

	
 
	

	
Gilead Sciences, Inc.

	
 
	

	
333 Lakeside Drive

	
 
	

	
Foster City, CA 94404

	
 
	

	
Attention: 
Facsimile: 

 

 

	

	
With copies to:

	
 
	

	
Gilead Sciences, Inc.

	
 
	

	
333 Lakeside Drive

	
 
	

	
Foster City, CA 94404

	
 
	

	
Attention: 
Facsimile: 

 

	
 
	

	
 

	

	
If to Agenus:

	
 
	

	
Agenus Inc.

	
 
	

	
3 Forbes Road

	
 
	

	
Lexington, MA 02421-7305

	
 
	

	
Attention:General Counsel
Facsimile:

Email:

 

With copies to: 

 

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Ropes & Gray LLP

	
 
	

	
Prudential Tower

	
 
	

	
800 Boylston Street

	
 
	

	
Boston, MA 02199

	
 
	

	
Attention:Zachary R. Blume
Facsimile:

Email: 

 

Any such notice shall be deemed given on the date received, except any notice received after 5:30 p.m. (in the time zone of the receiving Party) on a Business Day or received on a non-Business Day shall be deemed to have been received on the next Business Day. Any notice pursuant to subsections (c) and (d) above, shall be deemed received on the Business Day that such notices are sent, except any notice received after 5:30 p.m. (in the time zone of the receiving Party) on a Business Day or received on a non-Business Day shall be deemed to have been received on the next Business Day.  A Party may add, delete, or change the person or address to which notices should be sent at any time upon written notice delivered to the other Parties in accordance with this Section 9.6.

9.7Expenses. Each Party shall bear its own costs and expenses (including investment banking and legal fees and expenses) incurred in connection with this Agreement and the transactions contemplated hereby.

9.8Finder’s Fees. Each of Agenus and Purchaser shall indemnify and hold the other harmless from any liability for any commission or compensation in the nature of a finder’s fee, placement fee or underwriter’s discount (including the costs, expenses and legal fees of defending against such liability) for which Agenus or Purchaser, or any of its respective partners, employees, or representatives, as the case may be, is responsible.

9.9Counterparts. This Agreement may be executed in counterparts with the same effect as if both Parties had signed the same document. All such counterparts shall be deemed an original, shall be construed together, and shall constitute one and the same instrument. Any such counterpart, to the extent delivered by means of facsimile by .pdf, .tif, .gif, .jpeg, or similar attachment to electronic mail (any such delivery, an “Electronic Delivery”) shall be treated in all manner and respects as an original executed counterpart and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. No Party shall raise the use of Electronic Delivery to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of Electronic Delivery as a defense to the formation of a contract, and each Party forever waives any such defense, except to the extent that such defense relates to lack of authenticity.

9.10Further Assurances. In the event that at any time after the Investment Closing Date any further action is reasonably necessary to carry out the purposes of this Agreement, each of the Parties will take such further action (including the execution and delivery of such further instruments and documents) as the other Party reasonably may request, at the sole cost and expense of the requesting Party.

9.11Severability. If one or more of the terms or provisions of this Agreement is held by a court of competent jurisdiction to be void, invalid, or unenforceable in any situation in any jurisdiction, such holding shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the void, invalid, or unenforceable term or provision in any other situation or in 

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any other jurisdiction, and the term or provision shall be considered severed from this Agreement solely for such situation and solely in such jurisdiction, unless the void, invalid, or unenforceable term or provision is of such essential importance to this Agreement that it is to be reasonably assumed that the Parties would not have entered into this Agreement without the void, invalid, or unenforceable term or provision. If the final judgment of such court declares that any term or provision hereof is void, invalid, or unenforceable, the Parties agree to: (a) reduce the scope, duration, area, or applicability of the term or provision or to delete specific words or phrases to the minimum extent necessary to cause such term or provision as so reduced or amended to be enforceable; and (b) make a good-faith effort to replace any void, invalid, or unenforceable term or provision with a valid and enforceable term or provision such that the objectives contemplated by the Parties when entering this Agreement may be realized.

9.12Entire Agreement. This Agreement and the Licenses, including the exhibits and schedules attached hereto and thereto, constitute the full and entire understanding and agreement among the Parties with regard to the subjects hereof and thereof. No Party shall be liable or bound to any other Party in any manner with regard to the subjects hereof or thereof by any warranties, representations or covenants except as specifically set forth herein or therein.

9.13Mutual Drafting. This Agreement has been diligently reviewed by and negotiated by and between the Parties, and in such negotiations each of the Parties has been represented by competent (in-house or external) counsel, and the final agreement contained herein, including the language whereby it has been expressed, represents the joint efforts of the Parties and their counsel. Accordingly, in interpreting this Agreement or any provision hereof, no presumption shall apply against any Party as being responsible for the wording or drafting of this Agreement or any such provision, and ambiguities, if any, in this Agreement shall not be construed against any Party, irrespective of which Party may be deemed to have authored the ambiguous provision.

9.14Waivers and Modifications. The failure of any Party to insist on the performance of any obligation hereunder shall not be deemed to be a waiver of such obligation. Waiver of any breach of any provision hereof shall not be deemed to be a waiver of any other breach of such provision or any other provision on such occasion or any succeeding occasion. No waiver, modification, release, or amendment of any obligation under or provision of this Agreement shall be valid or effective unless in writing and signed by the Parties.

9.15Waiver of Jury Trial. THE PARTIES HEREBY WAIVE, AND COVENANT THAT THEY SHALL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT, OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY ACTION ARISING IN WHOLE OR IN PART UNDER OR IN CONNECTION WITH THIS AGREEMENT, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE. THE PARTIES AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY, AND BARGAINED-FOR AGREEMENT AMONG THE PARTIES IRREVOCABLY TO WAIVE ITS RIGHT TO TRIAL BY JURY IN ANY PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THIS AGREEMENT SHALL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

 

20

 

 

[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

SECTION 10

Certain Defined Terms

As used in this Agreement, the following terms shall have the following meanings:

10.1“Action” means any notice of noncompliance or violation, or any claim, demand, charge, action, suit, litigation, audit, settlement, complaint, stipulation, assessment or arbitration, or any request (including any request for information), review, inquiry, hearing, proceeding or investigation, an opposition, revocation, reexamination, interference or similar proceeding by any Person or by or before any Governmental Authority.

10.2“Affiliate” means any Person which, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with a Party. The term “control” (including the terms “controlled by” and “under common control with”), with respect to the relationship between or among two or more Persons, means the possession, directly or indirectly, of the power to direct or cause the direction of the affairs or management of a Person, whether through the ownership of voting securities, as trustee or executor, by contract or otherwise. 

10.3“Business Day” means a day on which banking institutions in Boston, Massachusetts, and San Francisco, California, are open for business, excluding any Saturday or Sunday and December 26 through December 31.

10.4“Commission” means the United States Securities and Exchange Commission.

10.5“Common Stock” means Agenus’s common stock, par value $0.01 per share.

10.6“GAAP” means generally accepted accounting principles as practiced in the United States, as consistently applied. 

10.7“Governmental Authority” means any: (a) federal, state, local, municipal, foreign, or other government; (b) governmental or quasi-governmental authority of any nature (including any agency, board, body, branch, bureau, commission, council, department, entity, governmental division, instrumentality, office, officer, official, organization, representative, subdivision, unit, and any court or other tribunal); (c) multinational governmental organization or body; or (d) entity or body exercising, or entitled to exercise, any executive, legislative, judicial, administrative, regulatory, police, military, or taxing authority or power of any nature.

10.8“Intellectual Property” means all patents, patent applications, trademarks, trademark applications, service marks, trade names, trade dress, trade secrets, inventions and discoveries and invention disclosures whether or not patented, copyrights in both published and unpublished works, including without limitation all compilations, data bases and computer programs, materials and other documentation, licenses, internet domain names and other intellectual property rights and similar rights.

10.9“Material Adverse Effect” means any event or condition that has had or could reasonably be likely to have a material adverse effect on the business, operations, properties or financial condition of Agenus and its consolidated subsidiaries, taken as a whole, or adversely affect in any material respect the ability of Agenus to perform its obligations, or Purchaser’s rights, under the Licenses; provided, 

21

 

 

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that the following shall not, standing alone, constitute a “Material Adverse Effect,” solely to the extent, that such change does not have a material and disproportionate adverse impact on Agenus, taken as a whole, as compared to other industry participants: the effects of conditions or events that are generally applicable to the capital, financial, banking or currency markets and the biotechnology industry.

10.10“Nasdaq” means the Nasdaq Capital Market (or any successor thereto).

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

10.12“Registration Rights Agreement” means the registration rights agreement to be entered into between Agenus and Purchaser on the Investment Closing Date, in the form attached hereto as Exhibit A

10.13“Representatives” means directors, officers, employees, consultants, financial advisors, counsel, accountants or other agents of a Person.

10.14“Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

10.15“Transfer Agent” means American Stock Transfer & Trust Company, LLC, the current transfer agent of Agenus, with a mailing address of 6201 15th Avenue, Brooklyn, NY 11219 and a facsimile number of (718) 236-4588, and any successor transfer agent of Agenus.

10.16“Voting Securities” means any Voting Stock of Agenus or any securities that at such time are convertible or exchangeable into or exercisable for any Voting Stock of Agenus.

10.17“Voting Stock” means securities of any class or series of a corporation, limited liability company, association or other entity, the holders of which are ordinarily, in the absence of contingencies, entitled to vote generally in matters put before the shareholders or members of such corporation, limited liability company, association or other entity, including the right to vote for the election of directors or members of an equivalent governing body.

[SIGNATURE PAGES FOLLOW]

 

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[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first set forth above.

		
	
 
	
 

	
 
	
 

	
Agenus Inc.

	
 
	
 

	
 
	
 

	
By:
	
/s/ Garo Armen

	
 
	
Name: Garo Armen, Ph.D.

	
 
	
Title:   Chairman and CEO

	
 
	
 

	
 
	
 

	
 
	
 

	
Gilead Sciences, Inc.

	
 
	
 

	
 
	
 

	
By:
	
/s/ John McHutchison

	
 
	
Name: John McHutchison, MD

	
 
	
Title:   Chief Scientific Officer, Head of 

            R&Dagen-ex1025_377.htm

[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

Exhibit 10.25

 

 

 

 

 

 

 

LICENSE AGREEMENT

by and between

AGENUS INC.

and

GILEAD SCIENCES, INC.

dated as of December 20, 2018

   

 

[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

TABLE OF CONTENTS

Page

 

	
Article 1 DEFINITIONS
	
1
	
 

	
Article 2 DEVELOPMENT
	
17
	
 

	
 
	
2.1
	
Responsibility17
	
 

	
 
	
2.2
	
Development Diligence17
	
 

	
 
	
2.3
	
Development Updates17
	
 

	
Article 3 REGULATORY
	
18
	
 

	
 
	
3.1
	
Regulatory Matters18
	
 

	
 
	
3.2
	
Regulatory Materials18
	
 

	
 
	
3.3
	
Right of Reference; Access to Data19
	
 

	
Article 4 COMMERCIALIZATION
	
19
	
 

	
 
	
4.1
	
General19
	
 

	
Article 5 MANUFACTURING
	
19
	
 

	
 
	
5.1
	
General19
	
 

	
 
	
5.2
	
Supply Agreement19
	
 

	
Article 6 ASSISTANCE; TRANSITION; UPSTREAM LICENSE AGREEMENTS
	
20
	
 

	
 
	
6.1
	
Assistance20
	
 

	
 
	
6.2
	
Know-How Transfer20
	
 

	
 
	
6.3
	
Licensed Products Inventory Transfer20
	
 

	
 
	
6.4
	
Manufacturing Technology Transfer20
	
 

	
 
	
6.5
	
Assignment of Agreements21
	
 

	
 
	
6.6
	
Upstream License Agreements21
	
 

	
Article 7 FINANCIAL TERMS
	
22
	
 

	
 
	
7.1
	
Upfront Payment22
	
 

	
 
	
7.2
	
Milestones22
	
 

	
 
	
7.3
	
Sales Milestones23
	
 

	
 
	
7.4
	
Royalties24
	
 

	
 
	
7.5
	
Invoice and Payment of Royalty Payments27
	
 

	
 
	
7.6
	
Additional Payment Terms27
	
 

	
 
	
7.7
	
Records; Audit Rights28
	
 

	
 
	
7.8
	
Upstream License Agreements and Development and Manufacturing Agreements29
	
 

	
 
	
7.9
	
Non-Refundable and Non-Creditable Payments29
	
 

	
Article 8 LICENSEs; EXCLUSIVITY
	
29
	
 

	
 
	
8.1
	
Licenses to Gilead; Upstream License Agreements29
	
 

	
 
	
8.2
	
Subcontracting; Sublicenses30
	
 

	
 
	
8.3
	
Rights Retained by the Parties30
	
 

	
 
	
8.4
	
No Implied Licenses30
	
 

i

   

 

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TABLE OF CONTENTS
(continued)

Page

	
 
	
8.5
	
Exclusivity30
	
 

	
 
	
8.6
	
Right of First Negotiation30
	
 

	
Article 9 INTELLECTUAL PROPERTY
	
31
	
 

	
 
	
9.1
	
Inventorship and Ownership31
	
 

	
 
	
9.2
	
Prosecution and Maintenance32
	
 

	
 
	
9.3
	
Enforcement32
	
 

	
 
	
9.4
	
Defense33
	
 

	
 
	
9.5
	
Recovery33
	
 

	
 
	
9.6
	
Trademarks33
	
 

	
 
	
9.7
	
Patent Extensions33
	
 

	
Article 10 ANTITRUST LAW COMPLIANCE; EFFECTIVENESS
	
33
	
 

	
 
	
10.1
	
Filings33
	
 

	
 
	
10.2
	
Closing.34
	
 

	
Article 11 CONFIDENTIALITY
	
34
	
 

	
 
	
11.1
	
Nondisclosure34
	
 

	
 
	
11.2
	
Exceptions35
	
 

	
 
	
11.3
	
Authorized Disclosure35
	
 

	
 
	
11.4
	
Terms of this Agreement36
	
 

	
 
	
11.5
	
Securities Filings; Disclosure under Applicable Law36
	
 

	
 
	
11.6
	
Publicity37
	
 

	
 
	
11.7
	
Use of Names37
	
 

	
 
	
11.8
	
Clinical Trials Registry38
	
 

	
Article 12 REPRESENTATIONS AND WARRANTIES; COVENANTS
	
38
	
 

	
 
	
12.1
	
Representations and Warranties of Each Party38
	
 

	
 
	
12.2
	
Representations and Warranties of Agenus38
	
 

	
 
	
12.3
	
Representation and Warranty of Gilead41
	
 

	
 
	
12.4
	
Covenants41
	
 

	
 
	
12.5
	
Disclaimer43
	
 

	
Article 13 INDEMNIFICATION; INSURANCE
	
43
	
 

	
 
	
13.1
	
Indemnification by Gilead43
	
 

	
 
	
13.2
	
Indemnification by Agenus43
	
 

	
 
	
13.3
	
Procedure44
	
 

	
 
	
13.4
	
Insurance45
	
 

	
 
	
13.5
	
LIMITATION OF LIABILITY45
	
 

	
Article 14 TERM AND TERMINATION
	
46
	
 

	
 
	
14.1
	
Term; Expiration46
	
 

	
 
	
14.2
	
Termination for Material Breach46
	
 

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TABLE OF CONTENTS
(continued)

Page

	
 
	
14.3
	
Termination at Will47
	
 

	
 
	
14.4
	
Termination for Bankruptcy47
	
 

	
 
	
14.5
	
Effects of Termination48
	
 

	
 
	
14.6
	
[******]50
	
 

	
 
	
14.7
	
Surviving Provisions51
	
 

	
Article 15 MISCELLANEOUS
	
51
	
 

	
 
	
15.1
	
Severability51
	
 

	
 
	
15.2
	
Notices51
	
 

	
 
	
15.3
	
Force Majeure52
	
 

	
 
	
15.4
	
Assignment52
	
 

	
 
	
15.5
	
Waivers and Modifications53
	
 

	
 
	
15.6
	
Choice of Law; Waiver of Jury Trial; Dispute Resolution; Jurisdiction53
	
 

	
 
	
15.7
	
Relationship of the Parties54
	
 

	
 
	
15.8
	
Fees and Expenses54
	
 

	
 
	
15.9
	
Third Party Beneficiaries54
	
 

	
 
	
15.10
	
Entire Agreement54
	
 

	
 
	
15.11
	
Counterparts54
	
 

	
 
	
15.12
	
Equitable Relief; Cumulative Remedies55
	
 

	
 
	
15.13
	
Interpretation55
	
 

	
 
	
15.14
	
Further Assurances56
	
 

	
 
	
15.15
	
Extension to Affiliates56
	
 

 

SCHEDULES

 

Schedule 1.11:[******]

Schedule 1.85:[******]

Schedule 1.86:[******]

Schedule 1.126:[******]

Schedule 6.2:[******]

Schedule 6.3:[******]

Schedule 7.1:[******]

Schedule 8.1.2:[******]

Schedule 12.2:[******]

Schedule 12.2.15:[******]

 

EXHIBITS

 

Exhibit A:[******]

 

iii

   

 

[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

LICENSE AGREEMENT

This LICENSE AGREEMENT (this “Agreement”) is entered into as of December 20, 2018 (the “Execution Date”) by and between Agenus Inc., a Delaware corporation (“Agenus”) and Gilead Sciences, Inc., a Delaware corporation (“Gilead”).  Agenus and Gilead are each referred to herein by name or as a “Party” or, collectively, as the “Parties.”

RECITALS

WHEREAS, Agenus Controls the Agenus IP (each, as defined below);

WHEREAS, Gilead wishes to obtain, and Agenus wishes to grant, a license under the Agenus IP with respect to Licensed Products in the Field in the Territory (each, as defined below) on the terms and conditions set forth in this Agreement; 

WHEREAS, simultaneously with entering into this Agreement, the Parties are entering into the Option and License Agreements (as defined below); and

WHEREAS, simultaneously with entering into this Agreement, the Parties are entering into a stock purchase agreement and certain related agreements, pursuant to which Agenus will issue and Gilead will purchase shares of capital stock of Agenus on the terms and conditions set forth therein (the “Stock Purchase Agreement”).

NOW, THEREFORE, in consideration of the foregoing and the mutual agreements set forth below, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

Article 1
DEFINITIONS

Unless specifically set forth to the contrary herein, the following terms shall have the respective meanings set forth below.

1.1“Accounting Standards” means U.S. generally accepted accounting principles in effect at the relevant time, consistently applied.

1.2“Acquired Person” has the meaning set forth in Section 1.24.

1.3[******]

1.4“Additional Active” has the meaning set forth in Section 1.28.

1.5“Affiliate” means any Person which, directly or indirectly through one (1) or more intermediaries, controls, is controlled by, or is under common control with a Party.  For purposes of this Section 1.5 only, the term “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”) as used with respect to a Person means:  (a) direct or indirect ownership of fifty percent (50%) or more of the voting securities or other voting interest of any Person (including attribution from related parties); or (b) the 

1

 

[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

possession, directly or indirectly, of the power to direct, or cause the direction of, the management and policies of such Person, whether through ownership of voting securities, by contract, as a general partner, as a manager, or otherwise.

1.6“Agenus” has the meaning set forth in the Preamble.

1.7[******]

1.8“Agenus Indemnitees” has the meaning set forth in Section 13.1.

1.9“Agenus IP” means the Agenus Patents and the Agenus Know-How.  [******]

1.10“Agenus Know-How” means any Know-How Controlled by Agenus or any of its Affiliates as of the Execution Date or thereafter during the Term which is [******] for the Development, Manufacture, or Commercialization of the Licensed Products in the Field in the Territory.

1.11“Agenus Patents” means any and all Patents Controlled by Agenus or its Affiliates as of the Execution Date or at any time during the Term, including Agenus’s interest in any and all Joint Patents, which are [******] for the Development, Manufacture, or Commercialization of any Licensed Product in the Field in the Territory.  Without limiting the foregoing, Schedule 1.11 sets forth a complete and accurate list of all Agenus Patents as of the Execution Date.  Agenus shall update Schedule 1.11 as necessary from time to time to reflect the then-current Agenus Patents.

1.12“Agreement” has the meaning set forth in the Preamble.

1.13“Agreement Payments” has the meaning set forth in Section 7.6.2(a).

1.14“ANDA” means an abbreviated new drug application filed pursuant to the requirements of the FDA pursuant to 21 C.F.R. Part 314 to obtain regulatory approval for a product in the United States, or the equivalent application or filing in another country (as applicable).

1.15“Annual Net Sales” means, on a Licensed Product-by-Licensed Product basis, total Net Sales by Gilead, its Affiliates, and its Sublicensees in the Territory of such Licensed Product in a particular Calendar Year, calculated in accordance with Accounting Standards.

1.16“Applicable Law” means all applicable laws, statutes, rules, regulations, treaties (including tax treaties), orders, judgments or ordinances having the effect of law of any national, multinational, federal, state, provincial, county, city, or other political subdivision, including, to the extent applicable, GCP, GLP, and GMP, as well as all applicable data protection and privacy laws, rules, and regulations, including, to the extent applicable, the United States Department of Health and Human Services privacy rules under the Health Insurance Portability and Accountability Act and the Health Information Technology for Economic and Clinical Health Act and the EU Data Protection Directive (Council Directive 95/46/EC) and applicable laws implementing the EU Data Protection Directive and the General Data Protection Regulation 

2

 

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(2016/679), the Foreign Corrupt Practices Act of 1977, or any comparable laws in any country, and all export control laws.

1.17“Auditor” has the meaning set forth in Section 7.7.2.

1.18“Biosimilar Product” means, [******].

1.19“BLA” means a Biologics License Application filed with the FDA in the United States with respect to a Licensed Product, as defined in Title 21 of the U.S. Code of Federal Regulations, Section 601.2 et seq., or any non-U.S. counterpart of the foregoing.

1.20“Business Day” means any day other than: (a) a Saturday or Sunday or any day on which commercial banks in Boston, Massachusetts, and San Francisco, California, are authorized or required by Applicable Law to remain closed; or (b) December 26 through December 31.

1.21“Calendar Quarter” means each of the three (3) month periods ending March 31, June 30, September 30, and December 31; provided, that: (a) the first Calendar Quarter of the Term shall extend from the Effective Date to the end of the first complete such three (3)-month period thereafter; and (b) the final Calendar Quarter of the Term shall end on the last day of the Term.

1.22“Calendar Year” means the period beginning on the Effective Date and ending on December 31 of the calendar year in which the Effective Date falls, and thereafter each successive period of twelve (12) consecutive calendar months beginning on January 1 and ending on December 31; provided, that the final Calendar Year of the Term shall end on the last day of the Term.

1.23[******]

1.24[******]

1.25“Clinical Trial” means any human clinical trial of a pharmaceutical or biological product.

1.26“Closing Date” has the meaning set forth in Section 10.2.1.

1.27“Code” has the meaning set forth in Section 14.4.2.

1.28“Combination Product” means: (a) a product that contains a Licensed Product and one (1) or more [******] (each, an “Additional Active”); or (b) a Licensed Product that is co-packaged or combined with one (1) or more Additional Actives, and such Licensed Product and Additional Actives are sold for a single price.     

1.29“Commercialization” means any and all activities directed to the commercialization of a product, including marketing, detailing, promotion, market research, distributing, order processing, handling returns and recalls, booking sales, customer service, administering, and commercially selling such product, importing, exporting, and transporting 

3

 

[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

such product for commercial sale, and seeking Pricing Approval of a product (if applicable), whether before or after Regulatory Approval has been obtained, as well all regulatory compliance with respect to the foregoing.  For clarity, “Commercialization” does not include:  (a) Manufacturing; or (b) any Clinical Trials and other trials commenced after Regulatory Approval.  When used as a verb, “Commercialize” means to engage in Commercialization.  

1.30“Commercially Reasonable Efforts” means, with respect to [******].

1.31“Competing Product” means any product, [******].

1.32“Compulsory License” means, with respect to a Licensed Product in a country or territory, a license, or rights granted to a Third Party by a governmental agency within such country or territory to sell or offer for sale such Licensed Product in such country or territory under any Patents or Know-How owned or controlled by either Party or its Affiliates, without direct or indirect authorization from such Party or its Affiliates.

1.33“Compulsory Licensee” means a Third Party granted a Compulsory License.

1.34“Confidential Information” means, with respect to a Party, all confidential and proprietary information, including chemical or biological materials, chemical structures, sequence information, commercialization plans, correspondence, customer lists, data, development plans, formulae, improvements, Inventions, Know-How, processes, regulatory filings, reports, strategies, techniques, or other information, in each case, that are disclosed by or on behalf of such Party to the other Party pursuant to this Agreement, regardless of whether any of the foregoing are marked “confidential” or “proprietary” or communicated to the other Party by or on behalf of the disclosing Party in oral, written, visual, graphic, or electronic form.

1.35“Control,” “Controls,” or “Controlled” means with respect to any Patent, Know-How, other intellectual property right, or Confidential Information, the ability of a Party or its Affiliates, as applicable (whether through ownership or license (other than a license granted in this Agreement)) to grant to the other Party the licenses or sublicenses as provided herein, or to otherwise disclose such intellectual property right or Confidential Information to the other Party, without violating the terms of any then-existing agreement with any Third Party at the time such Party or its Affiliates, as applicable, would be required hereunder to grant the other Party such license or sublicenses as provided herein or to otherwise disclose such intellectual property right or Confidential Information to the other Party.  Notwithstanding the foregoing, a Party will be deemed not to Control any Patent, Know-How, other intellectual property right, Confidential Information, compound, or molecule (including any antibody) that is [******] except: [******].

1.36“Cover” means, with reference to [******], that the making, using, offering to sell, selling, importing, or exporting of such product would [******].

1.37[******]

1.38“Cure Period” has the meaning set forth in Section 14.2.1.

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1.39“Damages” means all losses, costs, claims, damages, judgments, liabilities, and expenses (including reasonable attorneys’ fees and other reasonable out-of-pocket costs in connection therewith).

1.40“Data Package” means:

1.40.1[******]

1.40.2[******]

1.41“Default” means:  (a) any material breach, violation, or default; (b) the existence of circumstances or the occurrence of an event that with the passage of time or the giving of notice or both would constitute a material breach, violation, or default; or (c) the existence of circumstances or the occurrence of an event that, with or without the passage of time or the giving of notice or both, would give rise to a right of termination, renegotiation, acceleration, or material change of terms.

1.42“Development” means:  (a) research activities (including drug discovery, identification, or synthesis) with respect to a product; or (b) preclinical and clinical drug development activities and other development activities with respect to a product, including test method development and stability testing, toxicology, formulation, process development, qualification and validation, quality assurance, quality control, Clinical Trials (including Clinical Trials and other trials commenced after Regulatory Approval), statistical analysis and report writing, the preparation and submission of INDs and MAAs, regulatory affairs with respect to the foregoing, and all other activities necessary or useful or otherwise requested or required by a Regulatory Authority or as a condition or in support of obtaining or maintaining a Regulatory Approval.  For clarity, “Development” does not include Manufacturing.  When used as a verb, “Develop” means to engage in Development.

1.43“Development and Manufacturing Agreement” means any contract or agreement, other than any Upstream License Agreement, between Agenus (or any of its Affiliates, as applicable) and any Third Party which is related to the Development or Manufacture of any Licensed Antibody or Licensed Product.

1.44“Disclosing Party” has the meaning set forth in Section 11.1.

1.45“Dispute” has the meaning set forth in Section 15.6.3(a).

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

1.47“Effective Date” has the meaning set forth in Section 14.1.1.

1.48“Electronic Delivery” has the meaning set forth in Section 15.11.

1.49“EMA” has the meaning set forth in Section 1.122.

1.50“EU” means all countries that are officially recognized as member states of the European Union at any particular time.

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1.51“EU Regulatory Approval” means Regulatory Approval [******] of a Licensed Product by EMA or the relevant Regulatory Authority in [******] of the Major European Markets.

1.52“Execution Date” has the meaning set forth in the Preamble.

1.53“Executive Officers” means:  (a) with respect to Agenus, [******] or his/her designee or successor with equivalent responsibilities; and (b) with respect to Gilead, [******] or his/her designee or successor with equivalent responsibilities.

1.54“Existing Development and Manufacturing Agreement” means any Development and Manufacturing Agreement in effect as of the Execution Date.

1.55“Existing Regulatory Materials” has the meaning set forth in Section 3.2.1.

1.56“Existing Upstream License Agreements” has the meaning set forth in Section 1.157.

1.57“FDA” has the meaning set forth in Section 1.122.

1.58“Field” means any and all uses or purposes, including the treatment, prophylaxis, palliation, diagnosis, or prevention of any human or animal disease, disorder, or condition.

1.59“First Commercial Sale” means, on a Licensed Product-by-Licensed Product and country-by-country basis, the first sale of such Licensed Product in such country for use or consumption by the general public (following receipt of all Regulatory Approvals that are required in order to sell such Licensed Product in such country) and for which any of Gilead or its Affiliates or Sublicensees has invoiced sales of Licensed Products in the Territory; provided, however, that the following shall not constitute a First Commercial Sale:  [******].

1.60“GCP” means the applicable then-current ethical and scientific quality standards for designing, conducting, recording, and reporting Clinical Trials as are required by applicable Regulatory Authorities or Applicable Law in the relevant jurisdiction, including, in the United States, Good Clinical Practices established through FDA guidances, and, outside the United States, Guidelines for Good Clinical Practice – ICH Harmonized Tripartite Guideline (ICH E6).

1.61“Gilead” has the meaning set forth in the Preamble.

1.62“Gilead Indemnitees” has the meaning set forth in Section 13.2.

1.63“GLP” means the applicable then-current good laboratory practice standards as are required by applicable Regulatory Authorities or Applicable Law in the relevant jurisdiction, including, in the United States, those promulgated or endorsed by the FDA in U.S. 21 C.F.R. Part 58, or the equivalent thereof as promulgated or endorsed by the applicable Regulatory Authorities outside of the United States.

1.64“GMP” means all applicable then-current good manufacturing practice standards relating for fine chemicals, intermediates, bulk products, or finished pharmaceutical or biological 

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products, as are required by applicable Regulatory Authorities or Applicable Law in the relevant jurisdiction, including, as applicable: (a) all applicable requirements detailed in the FDA’s current Good Manufacturing Practices regulations, U.S. 21 C.F.R. Parts 210 and 211; (b) all applicable requirements detailed in the EMA’s “The Rules Governing Medicinal Products in the European Community, Volume IV, Good Manufacturing Practice for Medicinal Products;” and (c) all Applicable Law promulgated by any Governmental Authority having jurisdiction over the manufacture of the applicable compound or pharmaceutical or biological product, as applicable.

1.65“Governmental Authority” means any:  (a) federal, state, local, municipal, foreign, or other government; (b) governmental or quasi-governmental authority of any nature (including any agency, board, body, branch, bureau, commission, council, department, entity, governmental division, instrumentality, office, officer, official, organization, representative, subdivision, unit, and any court or other tribunal); (c) multinational governmental organization or body; or (d) entity or body exercising, or entitled to exercise, any executive, legislative, judicial, administrative, regulatory, police, military, or taxing authority or power of any nature.

1.66[******]

1.67“HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (15 U.S.C. § 18a).

1.68“ICC Rules” has the meaning set forth in Section 15.6.3(b).

1.69“IND” means an investigational new drug application (including any amendment or supplement thereto) submitted to the FDA pursuant to U.S. 21 C.F.R. Part 312, including any amendments thereto.  References herein to IND shall include, to the extent applicable, any comparable filing(s) outside the U.S. for the investigation of any product in any other country or group of countries (such as a Clinical Trial Application in the EU).

1.70“IND Acceptance” means, with respect to an IND, the earlier of: (a) receipt by a Party, its Affiliate or a Sublicensee of written confirmation from a Regulatory Authority or other applicable Person that Clinical Trials may proceed under such IND; or (b) expiration of the applicable waiting period after which Clinical Trials may proceed under such IND.

1.71“Indemnification Claim Notice” has the meaning set forth in Section 13.3.1.

1.72“Indemnitee” has the meaning set forth in Section 13.3.1.

1.73“Indemnitor” has the meaning set forth in Section 13.3.1.

1.74“Indication” means an [******].

1.75“Information Request Notice” has the meaning set forth in Section 8.6.

1.76“Infringement” has the meaning set forth in Section 9.3.1

1.77“Initial Licensed Antibody” has the meaning set forth in Section 1.86(i)

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1.78“Initial Licensed Product” means the Licensed Product that constitutes, incorporates, comprises, or contains the Initial Licensed Antibody [*****].

1.79“Initial Outside Date” has the meaning set forth in Section 14.1.1.

1.80[******]

1.81“Invention” means any process, method, composition of matter, article of manufacture, discovery, or finding that is conceived or reduced to practice.

1.82“Joint IP” has the meaning set forth in Section 9.1.

1.83“Joint Patents” has the meaning set forth in Section 9.1.

1.84“Know-How” means algorithms, data, information, Inventions, knowledge, methods (including methods of use or administration or dosing), practices, results, software, techniques, technology, and trade secrets, including analytical and quality control data, analytical methods (including applicable reference standards), assays, batch records, chemical structures and formulations, compositions of matter, formulae, materials, manufacturing data, pharmacological, toxicological and clinical test data and results, processes, reports, research data, research tools, sequences, standard operating procedures, and techniques, in each case, whether patentable or not, and, in each case, tangible manifestations thereof.

1.85“Knowledge” means, with respect to Agenus, [******].

1.86“Licensed Antibody” means (i) the antibody known as AGEN1423 [******], as described in more detail on Schedule 1.86 (the “Initial Licensed Antibody”) and (ii) [******].

1.87“Licensed Product” means [******] product that [******] a Licensed Antibody, [******].  

1.88“Licensed Product Marks” has the meaning set forth in Section 9.6.

1.89“MAA” means a Marketing Authorization Application, BLA, or similar application, as applicable, and all amendments and supplements thereto, submitted to the FDA, EMA, or any equivalent filing in a country or regulatory jurisdiction other than the U.S. or EU with the applicable Regulatory Authority, to obtain marketing approval for a pharmaceutical or biological product, in a country or in a group of countries.

1.90“Major European Markets” means [******].

1.91“Manufacture” means all activities related to the manufacturing of a product or any component or ingredient thereof, including the production, manufacture, processing, filling, finishing, packaging, labeling, shipping, and holding of product or any intermediate thereof, including process development, process qualification and validation, scale-up, commercial manufacture and analytic development, product characterization, stability testing, quality assurance, and quality control.

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1.92“Manufacturing CMO” means a Third Party designee of Gilead which performs, or will perform, Manufacturing services with respect to any Licensed Product.

1.93“Material Breach” means a breach of this Agreement which [******].

1.94“Milestone Event” has the meaning set forth in Section 7.2.1.

1.95“Milestone Payment” has the meaning set forth in Section 7.2.1.

1.96[******]

1.97“Net Sales” means [******]: 

1.97.1[******]

1.97.2[******]

1.97.3[******]

1.97.4[******]

1.97.5[******]

1.97.6[******]

1.97.7[******]

1.98[******]

1.99“Option and License Agreements” means (i) the Option and License Agreement, dated the date hereof, by and between the Parties, with respect to the antibody known as AGEN1223 and (ii) the Option and License Agreement, dated the date hereof, by and between the Parties, with respect to the antibody known as AGEN2373.

1.100“Ordinary Course Agreement” means [******].

1.101[******]

1.102[******]

1.103“Party” has the meaning set forth in the Preamble.

1.104“Patent Extensions” has the meaning set forth in Section 9.7.

1.105“Patents” means: (a) U.S. patents and patent applications in any country or supranational jurisdiction worldwide; (b) any substitutions, divisionals, continuations, continuations‐in‐part, reissues, renewals, registrations, confirmations, and the like of any such patents or patent applications; (c) foreign counterparts of any of the foregoing; and (d) any and all extensions or restorations by existing or future extension or restoration mechanisms, 

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including revalidations, reissues, re-examinations and extensions, including any supplementary protection certificates of any of the foregoing.

1.106“Payee” means a Party receiving a payment under this Agreement.

1.107“Payor” means a Party owing or making a payment under this Agreement.

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

1.109“Phase 1 Clinical Trial” means [******].

1.110“Phase 1b Clinical Trial” means [******].

1.111“Phase 2 Clinical Trial” means [******].

1.112[******]

1.113[******]

1.114[******]

1.115[******]

1.116[******]

1.117“Pricing Approval” means any approval, agreement, determination, or decision establishing prices that can be charged to consumers for a pharmaceutical or biological product or that will be reimbursed by Governmental Authorities for a pharmaceutical or biological product, in each case, in a country where Governmental Authorities approve or determine pricing for pharmaceutical or biological products for reimbursement or otherwise.

1.118“Prior CDA” means that certain mutual confidentiality agreement, by and between Agenus Inc. and Gilead dated [******], as amended by (i) that certain letter agreement dated [******] between Agenus Inc. and Gilead, [******] and (ii) that certain letter agreement between Agenus Inc. and Gilead dated [******].

1.119“Prosecution and Maintenance” or “Prosecute and Maintain” means, with regard to a Patent, the preparation, filing, prosecution, and maintenance of such Patent, as well as re-examinations, reissues, appeals, and requests for patent term adjustments with respect to such Patent, together with the initiation or defense of interferences, oppositions, inter partes review, derivations, re-examinations, post-grant proceedings, and other similar proceedings [******] with respect to the particular Patent, and any appeals therefrom.  For clarification, “Prosecution and Maintenance” or “Prosecute and Maintain” shall not include any other enforcement actions taken with respect to a Patent.

1.120“Receiving Party” shall have the meaning set forth in Section 11.1.

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1.121“Regulatory Approval” means, all approvals, licenses, and authorizations of the applicable Regulatory Authority necessary for the marketing and sale of a pharmaceutical or biological product for a particular Indication in a country or region (including separate Pricing Approvals, as necessary), and including the approvals by the applicable Regulatory Authority of any expansion or modification of the label for such Indication.

1.122“Regulatory Authority” means any national or supranational Governmental Authority, including the U.S. Food and Drug Administration (and any successor entity thereto) (the “FDA”) in the U.S., the European Medicines Agency (and any successor entity thereto) (the “EMA”) in the EU, or any health regulatory authority in any country or region that is a counterpart to the foregoing agencies, in each case, that holds responsibility for development and commercialization of, and the granting of Regulatory Approval for, a pharmaceutical or biological product in such country or region.

1.123[******]

1.124“Regulatory Materials” means the regulatory registrations, applications, authorizations, and approvals (including approvals of MAAs, INDs, supplements and amendments, pre- and post-approvals, Pricing Approvals, and labeling approvals), Regulatory Approvals, and other submissions made to or with any Regulatory Authority, including drug master files, for research, development (including the conduct of Clinical Trials), manufacture, or commercialization of a pharmaceutical or biological product in a regulatory jurisdiction, together with all related correspondence to or from any Regulatory Authority and all documents referenced in the complete regulatory chronology for each MAA, IND, and foreign equivalents of any of the foregoing.

1.125“Rejection Event” has the meaning set forth in Section 14.4.1.

1.126“ROFN Antibodies” means [******].

1.127“ROFN Notice” has the meaning set forth in Section 8.6.

1.128“ROFN Product(s)” means, with respect to a ROFN Antibody, [******] product that [******] such ROFN Antibody, [******].

1.129“ROFN Product License” has the meaning set forth in Section 8.6.

1.130“Royalty Floor” means [******].

1.131“Royalty Term” means, on a Licensed Product-by-Licensed Product and country-by-country basis, the period of time commencing on the First Commercial Sale of any Licensed Product in such country and expiring upon the latest of:  [******].

1.132“Sales Milestone Event” has the meaning set forth in Section 7.3.1.

1.133“Sales Milestone Payment” has the meaning set forth in Section 7.3.1.

1.134“Securities Regulators” has the meaning set forth in Section 11.3.1(a).

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1.135[******]

1.136[******]

1.137[******]

1.138[******]

1.139“Settlement Sublicensee” means a Third Party that is granted a license or sublicense under a settlement agreement between such Third Party and a Party, any of its Affiliates, or any of its or their respective licensees or sublicensees, which agreement was entered into in connection with an ANDA settlement or similar agreement.

1.140“Stock Purchase Agreement” has the meaning set forth in the Recitals.

1.141“Sublicensee” means, with respect to Gilead, a Third Party to whom Gilead has granted a sublicense or license, either directly or indirectly, under the Agenus IP licensed to Gilead by Agenus pursuant to this Agreement, to Develop, Manufacture, or Commercialize the Licensed Products in the Field in the Territory, but excluding: (a) any Third Party acting solely as a distributor; and (b) Agenus and any of its Affiliates.

1.142“Supply Agreement” has the meaning set forth in Section 5.2.

1.143“Taxes” has the meaning set forth in Section 7.6.2.

1.144“Term” has the meaning set forth in Section 14.1.1.

1.145“Terminated Licensed Product” means: (a) in the case of the termination of this Agreement with respect to a Licensed Product pursuant to Section 14.2 or Section 14.3, the Licensed Product subject to such termination; (b) in the case of the termination of this Agreement with respect to a country pursuant to Section 14.2 or Section 14.3, all Licensed Products in the country subject to such termination; and (c) in the case of termination of this Agreement in its entirety, all Licensed Products in all countries in the Territory.

1.146“Territory” means worldwide.

1.147[******]

1.148[******]

1.149“Third Party” means any Person other than Agenus or Gilead that is not an Affiliate of Agenus or of Gilead.

1.150“Third Party Claim” means any and all suits, claims, actions, proceedings, or demands brought by a Third Party.

1.151“Third Party Infringement Claim” has the meaning set forth in Section 9.4.

1.152[******]

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1.153“Transfer Taxes” has the meaning set forth in Section 7.6.2(a).

1.154“Transferred Inventory” has the meaning set forth in Section 6.3.

1.155“Transition Period” has the meaning set forth in Section 6.1.

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

1.157“Upstream License Agreement” means any contract or agreement with a Third Party pursuant to which Agenus in-licenses or otherwise maintains Control of Patents, Know-How, or other intellectual property rights that constitute Agenus IP for purposes of this Agreement, including such Upstream License Agreements set forth on Schedule 12.2.15 (“Existing Upstream License Agreements”) and any Upstream License Agreements which become such pursuant to Section 6.6.

1.158“Valid Claim” means, (a) with respect to a pending application, [******]; and (b) with respect to an issued Patent, a claim of such patent that has not expired, lapsed, been cancelled, or abandoned, or been dedicated to the public, disclaimed, or held unenforceable, invalid, revoked, or cancelled by a court or administrative agency of competent jurisdiction in an order or decision from which no appeal has been or can be taken, including through opposition, reexamination, reissue, disclaimer, inter partes review, post grant procedures, or similar proceedings.

Article 2
DEVELOPMENT

2.1Responsibility

.

2.1.1Subject to the terms and conditions of this Agreement, including Section 2.1.2, Gilead shall have the sole right (and shall solely control, at its discretion), itself or with or through its Affiliates, Sublicensees, or other Third Parties, to Develop the Licensed Products in the Field in the Territory.  All such Development shall be at [******].

2.1.2Subject to the terms and conditions of this Agreement, the Parties acknowledge that, during the period in between the Execution Date and the Effective Date, Agenus will continue to advance the Initial Licensed Antibody for the initiation of its Phase 1 Clinical Trial, which may include engaging Third Party vendors for the purposes of such Phase 1 Clinical Trial. If Gilead nominates a Third Party for consideration as a vendor for such Phase 1 Clinical Trial, Agenus will consider in good faith whether to select such Third Party as a vendor; provided, that Agenus will not be obligated to select such Third Party.

2.1.3[******]

2.2Development Diligence

.  Subject to the terms and conditions of this Agreement, Gilead, itself or with or through its Affiliates or Sublicensees or other Third Parties, shall [******].

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2.3Development Updates

.  Until the date on which Gilead has submitted an MAA to the applicable Regulatory Authority for [******], Gilead shall submit to Agenus, [******], a written report with respect to the Licensed Products summarizing: [******].

Article 3
REGULATORY

3.1Regulatory Matters

.

3.1.1Responsibility.  Subject to the terms and conditions of this Agreement, including Section 3.2.1(b), Gilead shall have the sole right (and shall solely control, at its discretion), itself or with or through its Affiliates, Sublicensees, or other Third Parties, to:  (i) prepare, and submit to applicable Regulatory Authorities, all Regulatory Materials for Licensed Products; and (ii) obtain and maintain all Regulatory Approvals for Licensed Products.

3.1.2Communications with Regulatory Authorities.  For clarity and without limiting Section 3.1.1, Gilead shall have the exclusive right to correspond or communicate with Regulatory Authorities regarding the Licensed Products.  Unless required by Applicable Law, Agenus, its Affiliates, and its permitted subcontractors shall not correspond or communicate with Regulatory Authorities regarding any Licensed Product without first obtaining Gilead’s prior written consent.  If Agenus, its Affiliates, or its permitted subcontractors receive any correspondence or other communication from a Regulatory Authority regarding a Licensed Product, Agenus shall provide Gilead with access to or copies of all such material written or electronic correspondence promptly after its receipt.

3.1.3Agenus Support.  Agenus shall [******] to support Gilead as may be reasonably requested by Gilead from time to time in connection with Gilead’s preparation, submission to Regulatory Authorities and maintenance of Regulatory Materials for Licensed Products, including, upon Gilead’s reasonable request, attending meetings with Regulatory Authorities regarding any Licensed Product.

3.2Regulatory Materials

.

3.2.1Existing Regulatory Materials.  

(a)Except to the extent notified otherwise in writing by Gilead, Agenus shall assign and transfer (and hereby does assign and transfer), or cause to be assigned and transferred to the extent not owned by Agenus, to Gilead (or its designee), no later than [******] after the Effective Date any and all Regulatory Materials for the Licensed Products held by or on behalf of Agenus, its Affiliates or contractors as of or prior to the Effective Date (the “Existing Regulatory Materials”), including providing true, accurate, and complete hard or electronic copies thereof to Gilead.  From and after such assignment and transfer, Gilead (or its designee) shall have the sole right, in its sole discretion, to file, maintain, and hold title to all Existing Regulatory Materials.

(b)[******].  Agenus shall assign and transfer to Gilead (or its designee), no later than [******] after the later of the Effective Date or the date of IND Acceptance, the IND and related Regulatory Materials.  From and after such assignment and transfer, Gilead (or its 

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designee) shall have the sole right, in its sole discretion, to file, maintain, and hold title to such IND and related Regulatory Materials.

3.2.2New Regulatory Materials.  All Regulatory Materials generated or arising from or in connection with activities under this Agreement with respect to Licensed Products shall be owned by and held in the name of Gilead or its designee, and, except for Existing Regulatory Materials (which are addressed in Section 3.2.1), and any such Regulatory Materials issued in the name of Agenus, its Affiliates or contractors shall promptly be assigned by Agenus to Gilead or its designee to the extent permitted by Applicable Law or, in the event assignment is not permitted under Applicable Law, held in trust for, or for the sole benefit of, Gilead or its designee.

3.3Right of Reference; Access to Data

.

3.3.1Prior to the time at which Regulatory Materials are transferred and assigned to Gilead or its designee, or in the event of failure to transfer and assign any Regulatory Materials to Gilead or its designee, as required by Section 3.2.1 or Section 3.2.2, Gilead and its designees shall have, and Agenus (on behalf of itself and its Affiliates) hereby grants to Gilead and its designees, access and a right of reference (without any further action required on the part of Agenus, its Affiliates or contractors, whose authorization to file this consent with any Regulatory Authority is hereby granted) to all such Regulatory Materials and all data contained or referenced therein for Gilead and its designees to exercise its rights and perform its obligations under this Agreement with respect to Licensed Products.  In all cases, Gilead and its designees shall have access to all data contained or referenced in all such Regulatory Materials, and Agenus shall ensure that Gilead and its designees are afforded such access.

3.3.2Upon transfer and assignment of the Existing Regulatory Materials and the data contained or referenced therein to Gilead or its designee in accordance with Section 3.2.1, Gilead shall grant and hereby grants to Agenus and its designees a right of reference (without any further action required on the part of Gilead, its Affiliates or contractors, whose authorization to file this right of reference with any Regulatory Authority is hereby granted) to any INDs transferred and assigned to Gilead as an Existing Regulatory Material and all data contained or referenced therein, solely for Agenus and its designees to Develop and seek and maintain Regulatory Approvals of [******].

Article 4
COMMERCIALIZATION

4.1General

.  Subject to the terms and conditions of this Agreement, Gilead shall have the sole right (and shall solely control, at its discretion), itself or with or through its Affiliates, Sublicensees, or other Third Parties, to Commercialize the Licensed Products in the Field in the Territory.  All such Commercialization shall be at [******].

Article 5
MANUFACTURING

5.1General

.  Subject to the terms and conditions of this Agreement, Gilead shall have the sole right (and shall solely control, at its discretion), itself or with or through its Affiliates, 

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Sublicensees, or other Third Parties, to Manufacture the Licensed Products in the Field in the Territory.  All such Manufacturing shall be at [******].

5.2Supply Agreement

.  At the election of Gilead exercisable by written notice to Agenus within [******] of the Effective Date, and subject to any manufacturing capacity constraints that Agenus may have at the time of such request, the Parties shall conduct good-faith discussions regarding the terms of a supply agreement (and a corresponding quality agreement with customary terms and conditions) pursuant to which Agenus would supply the Licensed Products to Gilead for its Clinical Trials (the “Supply Agreement”). [******]. In addition, the Supply Agreement shall otherwise include mutually agreed terms as are customary for agreements of such type.

Article 6
ASSISTANCE; TRANSITION; UPSTREAM LICENSE AGREEMENTS

6.1Assistance

.  Agenus shall, and shall cause its Affiliates to, cooperate with Gilead and its designees and provide reasonable assistance to Gilead and its designees to transition Development and Manufacturing activities with respect to Initial Licensed Products to Gilead and its designees to the extent reasonably requested by Gilead, including by: (a) providing Gilead and its designees reasonable assistance with respect to Development, regulatory, and Manufacturing transition matters related to the Initial Licensed Products; and (b) providing Gilead and its designees with reasonable access by teleconference or in‐person (as requested by Gilead) to Agenus personnel (and personnel of its Affiliates and Third Party contractors) involved in Development, regulatory, or Manufacturing matters related to the Initial Licensed Products to assist with the transition and answer questions related to the Initial Licensed Products. Agenus shall provide the assistance described in this Article 6, with qualified personnel and at Gilead’s reasonable request, until [******] (the “Transition Period”); provided, that Agenus shall, and shall cause its Affiliates to, complete the activities assigned to, or otherwise contemplated to be completed by, Agenus under the Tech Transfer Plan which have not been completed as of the expiration of the Transition Period, and shall cooperate in good faith with Gilead and its designees and provide reasonable assistance to Gilead and its designees after expiration of the Transition Period to address any issues arising out of or not addressed by the transition activities contemplated by this Section 6.1, which issues are materially and adversely impacting Gilead’s ability to assume responsibility for the Development and Manufacture of the Initial Licensed Products in accordance with this Agreement.

6.2Know-How Transfer

.  The Parties have agreed to the tech transfer plan attached hereto as Schedule 6.2 (the “Tech Transfer Plan”), pursuant to which Agenus shall disclose to Gilead and its designees in English, including by providing hard or electronic copies thereof, [******].

6.3Licensed Products Inventory Transfer

.  Without limiting the provisions of Section 6.1, upon Gilead’s written request and at no additional cost to Gilead, Agenus shall promptly assign and transfer to Gilead or its designee and deliver to Gilead or its designee, at a location to be specified by Gilead, the inventory of the Licensed Products set forth in Schedule 6.3 (the “Transferred Inventory”), along with all applicable manufacturing, GMP and shelf-life information in accordance with the Tech Transfer Plan.

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6.4Manufacturing Technology Transfer

.  Without limiting the other provisions of Article 6, as soon as reasonably practicable following the Effective Date (but in no event later than as required under the Tech Transfer Plan), Agenus shall transfer, and thereafter continue, during the Transition Period as may be reasonably requested by Gilead from time to time, the transfer (from Agenus, its Affiliates, or its Third Party contract manufacturers) to Gilead and its designees copies in English (in writing or in an electronic format) of [******] as of the Effective Date that is [******] to the Manufacture of the Licensed Products, in order to enable Gilead and its designees to Manufacture the Licensed Products, including, if desired by Gilead, to replicate the process employed by or on behalf of Agenus prior to the Effective Date to Manufacture the Licensed Products.  Such transfers shall be in accordance with the Tech Transfer Plan in which the Parties have identified [******] required for Manufacture, or [******] for the Development and Manufacture of the Licensed Products; provided, that, if Gilead reasonably believes that any materials which are not identified in the Tech Transfer Plan are [******] for the Manufacture, or are [******] for the Development or Manufacture of the Licensed Products (but excluding [******]), then Agenus shall cooperate in good faith with Gilead to provide such materials to Gilead.  In addition, at the reasonable request of Gilead from time to time, Agenus shall make its employees and consultants (including personnel of its Affiliates and Third Party contract manufacturers) available to Gilead and its designees to provide reasonable consultation and technical assistance in order to ensure an orderly transition of the Manufacturing technology and operations to Gilead and its designees and to assist Gilead and its designees in the Manufacture of the Licensed Products.  [******].

6.5Assignment of Agreements

.  Agenus shall, or shall cause its Affiliates to, as applicable, to the extent legally permissible (provided, that, to the extent consent is required from the relevant counterparty, Agenus shall, or shall cause its Affiliates to, as applicable, [******]):  (a) assign to Gilead or its designee any or all (as designated by Gilead) Development and Manufacturing Agreements; or (b) assist Gilead or its Affiliate in entering into new agreements directly with the counterparties to any or all Development and Manufacturing Agreements to cover the subject matter of such Development and Manufacturing Agreements, as applicable, in each case ((a) and (b)), to the extent requested by Gilead in writing.  If any Development and Manufacturing Agreement is assigned to Gilead, Agenus shall be solely responsible for, and shall indemnify and hold harmless Gilead and all other Gilead Indemnitees from and against any costs and other Damages arising from, or relating to, any such Development and Manufacturing Agreement as a result of, or in connection with, events or occurrences prior to the date of such assignment (including any payments that accrued prior to the date of such assignment but which do not become payable until after the date of such assignment).

6.6Upstream License Agreements

.  In the event that after the Effective Date Agenus enters into a contract or agreement with a Third Party pursuant to which Agenus in-licenses or otherwise acquires Control of any Patents, Know-How, or other intellectual property rights that would constitute Agenus IP for purposes of this Agreement, then Agenus shall promptly provide Gilead with notice and a copy of the applicable license or other contract or agreement with the Third Party.  Within [******] following receipt of such notice, Gilead shall decide, in its sole discretion, whether or not to accept such Patents, Know-How, or other intellectual property as Agenus IP licensed under this Agreement and provide Agenus written notice of such decision.  In the event of acceptance, such Patents, Know-How, or other intellectual property shall constitute Agenus IP licensed to Gilead under this Agreement, such agreement shall thereafter be 

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included within the definition of Upstream License Agreements, and [******] shall be responsible for any payments arising thereunder [******] (provided, that, [******]).  In the event that Gilead does not accept such Third Party agreement as an Upstream License Agreement (including by failing to respond within such [******] period), Gilead and its Affiliates shall have no obligations with respect to such Third Party agreement and such Patents, Know-How or other intellectual property shall not constitute Agenus IP licensed to Gilead hereunder.

Article 7
FINANCIAL TERMS

7.1Upfront Payment

.  No later than [******] after the Effective Date, Gilead shall pay to Agenus a one (1)-time, non-refundable, and non-creditable payment of [******] in immediately available funds by wire transfer, in accordance with wire instructions to be provided in writing by Agenus to Gilead on or before the Effective Date.  The foregoing upfront payment shall be deemed to be allocated [******] in the manner set forth on Schedule 7.1 attached hereto.

7.2Milestones

.

7.2.1Milestones.  Subject to the terms of this Section 7.2.1 and Section 7.7.1, Gilead shall notify Agenus within [******] following the achievement by Gilead, its Affiliates, or its Sublicensees under this Agreement of each milestone event described in the table below in this Section 7.2.1 (each, a “Milestone Event”) with respect to the first (and only the first) Licensed Product to achieve such Milestone Event under this Agreement, and Gilead shall thereafter pay the applicable amount set forth below associated with the applicable Milestone Event in accordance with Section 7.2.2 (each, a “Milestone Payment”):

		
	
Development Milestone Event
	
Development Milestone Payment

	
(a)[******]
	
[******]

	
(b)[******]
	
[******]

	
(c)[******]
	
[******]

	
(d)[******]
	
[******]

	
(e)[******]
	
[******]

	
Regulatory Milestone Event
	
Regulatory Milestone Payment

	
(f)[******]
	
[******]

	
(g)[******]
	
[******]

	
(h)[******]
	
[******]

Each Milestone Payment shall be non-refundable, non-creditable, and payable a maximum of one (1) time as set forth in the table above, regardless of the number of Licensed 

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[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

Products which achieve the applicable Milestone Event (i.e., a maximum of [******] Milestone Payments may be made pursuant to this Section 7.2.1), and no Milestone Payment shall be due hereunder for subsequent or repeated achievement of any such Milestone Event. 

Upon the achievement of any Milestone Event listed in Section [******] above, any of the Milestone Event(s) listed in such Sections: (i) which are listed earlier in the table above than the achieved Milestone Event; and (ii) for which the applicable Milestone Payment(s) has not been previously paid, shall become due and payable together with the Milestone Payment due in connection with such achieved Milestone Event; provided, that if the achieved Milestone Event is the Milestone Event listed in Section [******] above, the Milestone Payment due in connection with the achievement of the Milestone Event listed in Section [******] shall not become due and payable together with the Milestone Payment due in connection with such achieved Milestone Event. If the Milestone Event listed in Section [******] above is achieved prior to the achievement of the Milestone Event listed in Section [******] above, then the Milestone Payment corresponding to the Milestone Event listed in Section [******] above shall become due and payable together with the Milestone Payment due in connection with the achievement of the Milestone Event listed in Section [******] above.

Further, if a [******] for a [******] does not constitute a [******] at the time of its [******], then subject to the other terms of this Section 7.2.1, such [******] shall be deemed a [******] and the Milestone Event listed in Section [******] or Section [******], as applicable, for such [******] shall be deemed achieved (to the extent not previously achieved) at the [******].

For the avoidance of doubt, the maximum amount payable by Gilead pursuant to this Section 7.2.1 is [******], assuming that each Milestone Event in this Section 7.2.1 were achieved.

7.2.2Invoice and Payment of Milestone Payments.  Following Agenus’s receipt of notice from Gilead that Gilead has achieved a Milestone Event, Agenus shall invoice Gilead for the applicable Milestone Payment, and Gilead shall pay such Milestone Payment within [******] after receipt of such invoice.

7.3Sales Milestones

.

7.3.1Sales Milestones.  Subject to the terms of this Section 7.3.1 and Section 7.7, Gilead shall notify Agenus within [******] after the end of the [******] during which a given milestone event described below in this Section 7.3.1 (each, a “Sales Milestone Event”) was first achieved by Gilead under this Agreement, and Gilead shall thereafter pay the applicable amounts set forth below associated with the applicable Sales Milestone Event in accordance with Section 7.3.2 (each, a “Sales Milestone Payment”):

		
	
Sales Milestone Event
	
Sales Milestone Payment

	
(a)[******]
	
[******]

	
(b)[******]
	
[******]

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[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

		
	
Sales Milestone Event
	
Sales Milestone Payment

	
(c)[******]
	
[******]

	
(d)[******]
	
[******]

Each Sales Milestone Payment shall be non-refundable, non-creditable, and payable a maximum of one (1) time as set forth in the table above, regardless of the number of times the applicable Sales Milestone Event was achieved (i.e., a maximum of [******] Sales Milestone Payments may be made pursuant to this Section 7.3.1), and no Sales Milestone Payment shall be due hereunder for subsequent or repeated achievement of any such Sales Milestone Event.  Upon achievement of any Sales Milestone Event listed in [******] above, any previously listed Sales Milestone Event for which the applicable Milestone Payment has not been paid shall be due together with the Milestone Payment due in connection with such achieved Sales Milestone Event.  For the avoidance of doubt, the maximum amount payable by Gilead pursuant to this Section 7.3.1 is [******], assuming that each Sales Milestone Event in this Section 7.3.1 were achieved.  [******].

7.3.2Invoice and Payment of Sales Milestone Payments.  Following Agenus’s receipt of notice from Gilead that Gilead has achieved a Sales Milestone Event, Agenus shall invoice Gilead for the applicable Sales Milestone Payment, and Gilead shall pay such Sales Milestone Payment within [******] after receipt of the invoice therefor.

7.4Royalties

.

7.4.1Royalty Rates.  Subject to the terms of this Section 7.4.1 and Section 7.7, Gilead shall pay Agenus royalties on Annual Net Sales, on a Licensed Product-by-Licensed Product basis, during the applicable Royalty Term, equal to the following portions of Annual Net Sales of the applicable Licensed Product multiplied by the applicable royalty rate set forth below for such portion of Annual Net Sales during the applicable Royalty Term for each such Licensed Product.  For clarity, the royalties (and royalty tiers) shall be calculated separately on a Licensed Product-by-Licensed Product basis.

		
	
Portion of Annual Net Sales in the Territory for a given Licensed Product in a given Calendar Year
	
Royalty Rate

	
i.[******]
	
[******]

	
ii.[******]
	
[******]

	
iii.[******]
	
[******]

	
iv.[******]
	
[******]

The applicable royalty rate set forth in the table above shall apply only to that portion of the Annual Net Sales of a given Licensed Product during a given Calendar Year that falls within the indicated range.  [******].

7.4.2Royalty Term.  Gilead’s royalty obligations to Agenus under Section 7.4.1 shall apply, on a Licensed Product-by-Licensed Product and country-by-country basis, only 

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[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

during the applicable Royalty Term for such Licensed Product in such country.  Following the expiration of the applicable Royalty Term for a given Licensed Product in a given country:  (a) no further royalties shall be payable with respect to sales of such Licensed Product in such country; and (b) the license granted to Gilead under this Agreement with respect to such Licensed Product in such country shall become fully paid-up, perpetual, irrevocable, and royalty-free in accordance with Section 14.1.2(a).

7.4.3Royalty Reductions.

(a)[******]

(b)[******]

7.4.4Offset for Third Party Payments.

(a)[******]

(b)[******]

7.4.5Royalty Floor.

(a)[******]

(b)[******]

(c)[******]

(d)[******]

Invoice and Payment of Royalty Payments

.  Starting on the date of First Commercial Sale of a Licensed Product in the Territory, Gilead shall furnish to Agenus a [******] written report for each subsequent [******] showing the Net Sales of all Licensed Products and the royalty payments due to Agenus on such sales.  Each such royalty report shall be due within [******] after the end of the relevant [******].  Each royalty report shall describe [******].  Within [******] following the delivery of the applicable [******], Agenus shall invoice Gilead for the royalties due to Agenus with respect to Net Sales for such [******] as set forth in such royalty report and Gilead shall pay such amounts to Agenus within [******] following Gilead’s receipt of such invoice.

Additional Payment Terms

.

7.6.1Currency.  All payments hereunder shall be made in Dollars by wire transfer to a bank designated in writing by the Payee no later than [******] prior to the date by which the applicable payment must be made.  Conversion of sales recorded in local currencies to Dollars shall be performed in compliance with Accounting Standards and the Payor’s normal practices used to prepare its audited financial statements.

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[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

7.6.2Taxes; Withholding.

(a)Generally.  Except as set forth in this Section 7.6.2, the Payee shall be liable for all income and other taxes (including interest) (“Taxes”) imposed upon any payments made by the Payor to Payee under this Agreement (“Agreement Payments”).  The amounts set forth herein are exclusive of all applicable sales or use, goods and services, value added, consumption or other similar fees or taxes (“Transfer Taxes”) arising on the Agreement Payments, and the Payor shall be responsible for and pay any such Transfer Taxes imposed on it with respect to the Agreement Payments due to the Payee hereunder.

(b)Tax Withholding.  If Applicable Law requires the withholding of Taxes, the Payor shall subtract the amount thereof from the Agreement Payments and remit such withheld amount to the relevant Governmental Authority in a timely manner; provided, however, that before making such withholding, the Payor shall use reasonable efforts to give the Payee notice of the intention to make such withholding.  For the avoidance of doubt, Payor’s remittance of such withheld Taxes, together with payment to the Payee of the remaining Agreement Payments, shall constitute Payor’s full satisfaction of Agreement Payments under this Agreement.  The Payor shall promptly (as available) submit to the Payee appropriate proof of payment of the withheld Taxes as well as the official receipts within a reasonable period of time.  The Payor shall provide the Payee reasonable assistance in establishing entitlement to a reduction to, or elimination of, such withholding of Taxes under Applicable Law, including under the benefit of any present or future treaty against double taxation, and the Payor shall provide the Payee with reasonable assistance in seeking refund of such withheld Taxes.  Notwithstanding the foregoing, if, as a result of Payor (i) assigning this Agreement, (ii) extending its rights or obligations pursuant to Section 15.15 or (iii) changing its domicile, additional Taxes become due that would not have otherwise been due hereunder with respect to Agreement Payments, Payor shall be responsible for all such additional withholding Taxes and shall pay Payee such amounts as are necessary to ensure that Payee receives the same amount as it would have received had no such assignment or change in domicile been made.  [******].

(c)Tax Cooperation.  The Parties shall cooperate with respect to all documentation required by any taxing authority or reasonably requested by either Party to secure a reduction in the rate of applicable withholding taxes.

Records; Audit Rights

.

7.7.1Records.  Each Party shall keep complete, true, and accurate books and records in accordance with its Accounting Standards in relation to this Agreement, including with respect to Gilead, its Affiliates, and cause its Sublicensees, in relation to Net Sales, royalties, Milestone Payments, and Sales Milestone Payments.  Each Party shall keep such books and records for at least [******] following the Calendar Year to which they pertain or for such longer period of time as required under any Applicable Law.

7.7.2Audit Rights.  Subject to the other terms of this Section 7.7.2, during the Term, at the request of Agenus, which shall not be made more frequently than [******] per [******], upon at least [******] prior written notice from Agenus, and at the expense of Agenus, Gilead shall permit an independent, nationally-recognized certified public accountant 

22

 

[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

selected by Agenus and reasonably acceptable to Gilead (the “Auditor”) to inspect, during regular business hours, the relevant records required to be maintained by Gilead under Section 7.7.1 or otherwise reasonably necessary to verify the accuracy of royalty reports for such Calendar Year; provided, that such audit right shall not apply to records beyond [******] from the end of the Calendar Year to which they pertain [******].  Prior to its inspection, the Auditor shall enter into a confidentiality agreement with both Parties having obligations of confidentiality and non-use no less restrictive than those set forth in Article 11 and limiting the disclosure and use of such information by such accountant to authorized representatives of the Parties and the purposes germane to Section 7.7.1.  The Auditor shall report to Agenus only whether the particular amounts being audited were accurate and, if not, the amount of any discrepancy, and the Auditor shall not report any other information to Agenus.  Agenus shall treat the results of any the Auditor’s review of Gilead’s records as Confidential Information of Gilead subject to the terms of Article 11.  In the event such audit leads to the discovery of a discrepancy to Agenus’s detriment, Gilead shall, within [******] days after receipt of such report from the Auditor, pay any undisputed amount of the discrepancy.  Agenus shall pay the Auditor’s full cost of the audit unless the underpayment of amounts due Agenus is more than [******], in which case Gilead shall pay the reasonable cost charged by the Auditor for such review.  Any undisputed overpayments by Gilead revealed by an examination shall be paid by Agenus within [******] of Agenus’s receipt of the applicable report.  [******].

7.7.3[******]

Upstream License Agreements and Development and Manufacturing Agreements

.  Notwithstanding anything to the contrary under this Agreement, but subject to Section 6.6 and Section 6.5, Agenus shall be solely responsible for all costs and payments of any kind (including all upfront fees, annual payments, milestone payments, and royalty payments) arising under any agreements between Agenus (or any of its Affiliates) and any Third Party, including under: (a) any Existing Upstream License Agreements and any other Upstream License Agreements, unless and until (in the case of such other Upstream License Agreements) such agreements have been accepted by Gilead pursuant to Section 6.6, and (b) any Development and Manufacturing Agreements, unless and until such agreements have been assigned to Gilead pursuant to Section 6.5, as applicable.

7.9[******]

 

Article 8
LICENSEs; EXCLUSIVITY

Licenses to Gilead; Upstream License Agreements

.

Licenses to Gilead

.

(a)Licensed Products.  As of the Effective Date and subject to the terms and conditions of this Agreement, Agenus hereby grants to Gilead a royalty-bearing, exclusive, transferrable (solely pursuant to Section 15.4), and sublicenseable (through multiple tiers) 

23

 

[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

license, under the Agenus IP, to Develop, Manufacture, and Commercialize the Licensed Products in the Field in the Territory.  

(b)[******]

(c)[******]

(d)Exclusion.  For the avoidance of doubt, Agenus does not grant to Gilead pursuant to this Agreement any license under or rights to any intellectual property rights Controlled by Agenus or its Affiliates to Develop, Manufacture or Commercialize any product that [******].

Upstream License Agreements

.  To the extent that the licenses granted by Agenus to Gilead under the Agenus IP pursuant to Section 8.1 constitute (a) the grant of a sublicense to Gilead of certain Agenus IP that is not owned by Agenus or any of its Affiliates, but that is in-licensed by Agenus or any such Affiliate from a Third Party licensor pursuant to an Upstream License Agreement or (b) the license of certain Agenus IP that is otherwise encumbered by obligations that would be binding on Gilead by their terms, then Gilead shall comply, and shall cause its Affiliates and Sublicensees to comply, with the specific obligations applicable to sublicensees under such Upstream License Agreement(s) [******].

Subcontracting; Sublicenses

.

Subcontracting

.  Gilead may subcontract to Affiliates or Third Parties the performance of tasks and obligations related to Gilead’s Development, Manufacture, and Commercialization of the Licensed Products under this Agreement as Gilead deems appropriate, which subcontract may include a sublicense of Agenus IP rights necessary for the performance of the subcontract as reasonably required.

Sublicenses

.  Gilead shall provide Agenus with [******] of each agreement with a Third Party Sublicensee (other than any agreement with a Third Party subcontractor entered into in the ordinary course of business) within [******] after the execution thereof; provided, that Gilead may [******]. Each sublicense shall require the applicable Sublicensee to comply with applicable terms and conditions of this Agreement.  Gilead shall remain liable for any action or failure to act by any Sublicensee or Affiliate if such action or failure to act would have constituted a breach of this Agreement if committed by Gilead.  

Rights Retained by the Parties

.  Each Party retains all rights under Patents, Know-How, or other intellectual property rights Controlled by such Party which are not expressly granted to the other Party pursuant to this Agreement. Notwithstanding the foregoing, [******].

No Implied Licenses

.  Except as otherwise expressly provided in this Agreement, under no circumstances shall a Party or any of its Affiliates, as a result of this Agreement, obtain any ownership interest, license, or other right in or to any Patents, Know-How, or other intellectual property rights of the other Party, including tangible or intangible items owned, controlled, or developed by the other Party, or provided by the other Party to the receiving Party at any time, in each case, pursuant to this Agreement.

24

 

[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

Exclusivity

.

8.5.1General.  Subject to Section 8.5.2, [******], Agenus shall not, and shall cause its Affiliates not to, [******].

8.5.2[******]

Right of First Negotiation

.  In the event that (a) Gilead is interested in obtaining a right or license to Develop or Commercialize a ROFN Product (a “ROFN Product License”), (b) [******] or (c) [******], then Gilead will provide notice thereof to Agenus or Agenus will provide notice thereof to Gilead (which notice by Agenus to Gilead will include the applicable Data Package), as applicable (a “ROFN Notice”).  If Gilead provides a ROFN Notice, Agenus shall [******] provide a Data Package to Gilead with respect to the applicable ROFN Product. Gilead shall have [******] from receipt of a ROFN Notice from Agenus or, if Gilead provides a ROFN Notice to Agenus, receipt of the applicable Data Package from Agenus, to elect to seek a ROFN Product License with respect to the applicable ROFN Product, in which case it will provide notice of such election to Agenus (a “ROFN Negotiation Notice”).  If Gilead provides a ROFN Negotiation Notice, the Parties shall negotiate [******] (the “ROFN Negotiation Period”), to reach agreement on the terms and conditions of such ROFN Product License for such ROFN Product.  If Gilead fails to provide Agenus with a ROFN Negotiation Notice within such [******] period, Gilead shall have no further rights with respect to a ROFN Product License for such ROFN Product.  If Gilead provides a ROFN Negotiation Notice within such [******] period, but Gilead and Agenus fail to reach agreement within the ROFN Negotiation Period on the terms of a ROFN Product License for the applicable ROFN Product, then [******].  From time to time during the ROFN Negotiation Period, Gilead may provide Agenus with written notice requesting additional information relevant to the ROFN Product that then exists and is within Agenus’s control with respect to the applicable ROFN Product, or a discussion with Agenus representative(s) who have the relevant knowledge and information regarding the applicable ROFN Product (an “Information Request Notice”).  Agenus shall use all reasonable efforts to provide such information or hold such discussion as promptly as practicable but in any event within [******] after receipt of such Information Request Notice.  If the Information Request Notice is provided during [******], to the extent that Agenus has not provided such information in any material respect or has failed to hold such discussion, Gilead shall notify Agenus thereof and the ROFN Negotiation Period shall be extended by [******].

Article 9
INTELLECTUAL PROPERTY

9.1Inventorship and Ownership

.  The determination of inventorship under this Agreement shall be made in accordance with U.S. patent laws.  As between the Parties, all Inventions made or created solely by a Party’s or any of its Affiliates’ employees, independent contractors, or consultants, in the course of conducting activities under this Agreement, together with all intellectual property rights therein, shall be owned by such Party.  All Inventions made or created jointly by each Party’s (or any of its Affiliates’) employees, independent contractors, or consultants, in the course of conducting activities under this Agreement, together with all Patents therein (“Joint Patents”), shall be jointly owned by the Parties (“Joint IP”).  Joint IP shall be owned jointly by Gilead and Agenus on the basis of an equal, undivided interest 

25

 

[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

[******] and shall be deemed to be Controlled by each Party, subject to the licenses granted under this Agreement.  [******].

9.2Prosecution and Maintenance

.

9.2.1[******] shall be responsible for the Prosecution and Maintenance of the Agenus Patents [******].  [******] shall [******] the Agenus Patents and, [******].  [******] shall [******], and [******].

9.2.2[******] shall [******], or [******].  [******] shall [******], in connection with such [******].  In such event, [******] shall [******], to [******] or [******] of such [******].

9.2.3Each Party hereby agrees to reasonably cooperate with one another with respect to the Prosecution and Maintenance of the Agenus Patents for which such Party is responsible pursuant to this Agreement, including by: (a) making its employees, and using reasonable efforts to make its licensees, sublicensees, independent contractors, agents and consultants, reasonably available to the other Party (or to the other Party’s authorized attorneys, agents or representatives), to the extent reasonably necessary to enable such Party to undertake Prosecution and Maintenance of Patents as contemplated by this Agreement; and (b) endeavoring in good faith to coordinate its efforts with the other Party [******].

9.3Enforcement

.

9.3.1Each Party shall promptly notify the other Party of any infringement by a Third Party of any Agenus Patent in the Territory of which it becomes aware, including any declaratory judgment, opposition, or similar action alleging the invalidity, unenforceability, or non-infringement with respect to such Agenus Patent (“Infringement”).  Without limiting the foregoing, Gilead shall deliver to Agenus any certification that Gilead receives pursuant to 42 U.S.C. § 262(l) or such similar laws as may exist in jurisdictions other than the United States with respect to a Licensed Product within [******] after receipt thereof.

9.3.2[******] shall have [******], but not [******], to [******] in connection with [******].  At the [******], [******] shall provide [******] in connection with [******] in connection [******], including by [******].  [******] may [******] if [******].  [******] agrees to [******].  Additionally, [******] shall have the right to [******] at [******] and [******].

9.4Defense

.

9.4.1Each Party shall promptly notify the other Party of any claim alleging that the Development, Manufacture, or Commercialization of the Licensed Products in the Territory infringes, misappropriates, or otherwise violates any Patents, Know-How, or other intellectual property rights of any Third Party (“Third Party Infringement Claim”).  In any such instance, the Parties shall as soon as practicable thereafter discuss in good faith the best response to such notice of such Third Party Infringement Claim.

9.4.2[******] shall [******]; provided, [******].

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[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

9.5Recovery

.  Any recovery received as a result of any action under Section 9.3 or Section 9.4, as applicable, shall be allocated in the following order:  [******].

9.6Trademarks

.  [******] shall have the right, but not the obligation, to brand the Licensed Products using trademarks and trade names [******] for the Licensed Products, which may vary within the Territory (the “Licensed Product Marks”). [******].

9.7Patent Extensions

.  [******], [******] shall:  (a) with respect to requests [******]; and (b) with respect to all other requests, [******], in each case, patent term restoration (including under the Drug Price Competition and Patent Term Restoration Act), supplemental protection certificates or their equivalents, and patent term extensions (collectively, “Patent Extensions”) with respect to the Agenus Patents, where applicable, [******].  If requested by [******] or in the event that [******], [******] shall [******] to [******] for such Patent Extensions [******], [******], and [******] shall [******].

Article 10
ANTITRUST LAW COMPLIANCE; EFFECTIVENESS

10.1Filings

.  Each Party agrees to make any appropriate filings, if necessary or advisable, pursuant to the HSR Act as promptly as practicable but in any event no later than [******] after the Execution Date, with the Federal Trade Commission and the U.S. Department of Justice.  The Parties shall cooperate with one another in the preparation and execution of all documents that are necessary to be filed pursuant to the HSR Act and shall specifically request early termination of the initial HSR Act waiting period.  The related filing fees associated with the submission under the HSR Act [******].

10.2Closing.

10.2.1Closing. The closing of the transactions contemplated by this Agreement shall take place remotely via the electronic exchange of documents and signatures as soon as practical, but no later than on the [******] following the date on which all of the conditions precedent set forth in Section 10.2.2 have been satisfied or waived by the applicable Party (other than Section 10.2.2(c), which can only be satisfied or waived at the closing), or at such other time and place as Agenus and Gilead may agree upon in writing  (the “Closing Date”).

10.2.2Conditions to Effectiveness. The obligation of the Parties to consummate the transactions contemplated by this Agreement is subject to the satisfaction by each Party of the following conditions, any or all of which may be waived in whole or in part by the other Party in its sole discretion, subject to Applicable Law:

(a)the expiration or termination of all applicable waiting period(s) and any other required clearances under the HSR Act;

(b)the representations and warranties made by such Party in Sections 12.1 and 12.2 of this Agreement, Sections 13.1 and 13.2 of the Option and License Agreement (AGEN1223), and Sections 13.1 and 13.2 of the Option and License Agreement (AGEN2373) (each, with respect to Agenus) and Sections 12.1 and 12.3, Sections 13.1 and 13.3 of the Option and License Agreement (AGEN1223), and Sections 13.1 and 13.3 of the Option and License 

27

 

[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

Agreement (AGEN2373) (each, with respect to Gilead) shall be true and correct in all material respects as of the Effective Date, and, with respect to Agenus as such Party, Agenus shall have performed and complied in all material respects with the covenants set forth in Section 2.1.3 and Section 12.4.2 of this Agreement, Section 13.4.2 of the Option and License Agreement (AGEN1223), and Section 13.4.2 of the Option and License Agreement (AGEN2373); and

(c)the provision by each Party to the other Party of an officer’s certificate certifying the satisfaction of the condition in Section 10.2.2(b) with respect to such Party.

Article 11
CONFIDENTIALITY

11.1Nondisclosure

.  Each Party agrees that a Party (the “Receiving Party”) which receives the Confidential Information of the other Party (the “Disclosing Party”) pursuant to this Agreement shall:  (a) maintain in confidence such Confidential Information using not less than the efforts that such Receiving Party uses to maintain in confidence its own proprietary information of similar kind and value, but in no event less than a reasonable degree of efforts; (b) not disclose such Confidential Information to any Third Party without first obtaining the prior written consent of the Disclosing Party, except for disclosures expressly permitted pursuant to this Article 11; and (c) not use such Confidential Information for any purpose except those permitted under this Agreement, including, in the case of Gilead, the exercise of the rights and licenses granted to Gilead hereunder.  The obligations of confidentiality, non-disclosure, and non-use under this Section 11.1 shall be in full force and effect from the Execution Date until [******] following the expiration of the Term.  The Receiving Party shall return all copies of or destroy the Confidential Information of the Disclosing Party disclosed or transferred to it by the Disclosing Party pursuant to this Agreement, within [******] after the expiration or termination of this Agreement; provided, however, that a Party may retain:  (i) Confidential Information of the Disclosing Party to exercise rights and licenses which expressly survive such termination or expiration pursuant to this Agreement; and (ii) one (1) copy of all other Confidential Information in archives solely for the purpose of establishing the contents thereof.  In addition, [******] shall keep confidential, and shall cause its Affiliates and its and their employees, consultants, licensees, sublicensees, professional advisors, and Affiliates to keep confidential, [******] to the extent [******] on confidentiality terms at least as protective as the confidentiality provisions of this Agreement [******].

11.2Exceptions

.

11.2.1General.  Section 11.1 shall not apply with respect to any portion of the Confidential Information of the Disclosing Party to the extent that such Confidential Information:

(a)was known to the Receiving Party or any of its Affiliates, as evidenced by written records, without any obligation to keep it confidential or any restriction on its use, prior to disclosure by the Disclosing Party;

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[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

(b)is subsequently disclosed to the Receiving Party or any of its Affiliates by a Third Party lawfully in possession thereof and without any obligation to keep it confidential or any restriction on its use;

(c)is published by a Third Party or otherwise becomes publicly available or enters the public domain, either before or after it is disclosed to the Receiving Party, without any breach by the Receiving Party of its obligations hereunder; or

(d)is independently developed by or for the Receiving Party or any of its Affiliates, as evidenced by written records, without reference to or reliance upon the Disclosing Party’s Confidential Information.

Any combination of features or disclosures shall not be deemed to fall within the foregoing exclusions merely because individual features are published or available to the general public or in the rightful possession of the Receiving Party unless the combination itself and principle of operation are published or available to the general public or in the rightful possession of the Receiving Party.

11.3Authorized Disclosure

.

11.3.1Disclosure.  Notwithstanding Section 11.1, the Receiving Party may disclose Confidential Information belonging to the Disclosing Party in the following instances:

(a)subject to Section 11.5, to comply with Applicable Law (including the rules and regulations of the U.S. Securities and Exchange Commission or any national securities exchange in any jurisdiction in the Territory) (collectively, the “Securities Regulators”) or with judicial process (including prosecution or defense of litigation) if, in the reasonable opinion of the Receiving Party’s counsel, such disclosure is necessary for such compliance or for such judicial process (including prosecution or defense of litigation);

(b)disclosure to governmental or other regulatory agencies in order to obtain Patents, to obtain or maintain approval to conduct Clinical Trials, or to market the Licensed Products under this Agreement, in each case, in accordance with this Agreement; provided, that reasonable steps are taken to ensure confidential treatment of such Confidential Information to the extent available;

(c)disclosure to any of its officers, employees, consultants, agents, or Affiliates, and: (i) in the case of [******], any [******], (ii) in the case of [******], [******], any [******], and (iii) in the case of either Party, to such Party’s actual or potential acquirers, investors, or lenders as part of their due diligence investigations; provided, that, prior to any such disclosure, each such disclosee is bound by written obligations of confidentiality, non-disclosure, and non-use no less restrictive than the obligations set forth in this Article 11 to maintain the confidentiality thereof and not to use such Confidential Information except as expressly permitted by this Agreement; provided, however, that, in each of the above situations in this Section 11.3.1(c), the Receiving Party shall remain responsible for any failure by any Person who receives Confidential Information from such Receiving Party pursuant to this Section 11.3.1(c) to treat such Confidential Information as required under this Article 11; and

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[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

(d)disclosure to its advisors (including attorneys and accountants) in connection with activities under this Agreement; provided, that, prior to any such disclosure, each such disclosee is bound by written obligations of confidentiality, non-disclosure, and non-use no less restrictive than the obligations set forth in this Article 11 (provided, however, that in the case of legal advisors, no written agreement shall be required), to maintain the confidentiality thereof and not to use such Confidential Information except as expressly permitted by this Agreement; provided, however, that, in each of the above situations in this Section 11.3.1(d), the Receiving Party shall remain responsible for any failure by any Person who receives Confidential Information from such Receiving Party pursuant to this Section 11.3.1(d) to treat such Confidential Information as required under this Article 11.

11.3.2Terms of Disclosure.  If and whenever any Confidential Information is disclosed in accordance with this Section 11.3, such disclosure shall not cause any such information to cease to be Confidential Information, except to the extent that such disclosure results in a public disclosure of such information other than by breach of this Agreement.

11.4Terms of this Agreement

.  The Parties agree that this Agreement and the terms hereof shall be deemed to be Confidential Information of both Agenus and Gilead, and each Party agrees not to disclose this Agreement or any terms hereof without obtaining the prior written consent of the other Party; provided, that each Party may disclose this Agreement or any terms hereof in accordance with the provisions of Section 11.3 or Section 11.5, as applicable.

11.5Securities Filings; Disclosure under Applicable Law

.  Each Party acknowledges and agrees that the other Party may submit this Agreement to, or file this Agreement with, the Securities Regulators or to other Persons as may be required by Applicable Law, and if a Party submits this Agreement to, or files this Agreement with, any Securities Regulator or other Person as may be required by Applicable Law, such Party agrees to consult with the other Party with respect to the preparation and submission of a confidential treatment request for this Agreement.  Notwithstanding the foregoing, if a Party is required by any Securities Regulator or other Person as may be required by Applicable Law to make a disclosure of the terms of this Agreement in a filing or other submission as required by such Securities Regulator or such other Person, and such Party has:  (a) provided copies of the disclosure to the other Party reasonably in advance under the circumstances of such filing or other disclosure; (b) promptly notified the other Party in writing of such requirement and any respective timing constraints; and (c) given the other Party reasonable time under the circumstances from the date of provision of copies of such disclosure to comment upon and request confidential treatment for such disclosure, then such Party shall have the right to make such disclosure at the time and in the manner reasonably determined by its counsel to be required by the Securities Regulator or the other Person.  Notwithstanding the foregoing, if a Party seeks to make a disclosure as required by a Securities Regulator or other Person as may be required by Applicable Law as set forth in this Section 11.5 and the other Party provides comments in accordance with this Section 11.5, the Party seeking to make such disclosure or its counsel, as the case may be, shall use good-faith efforts to incorporate such comments.

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[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

Publicity

.

11.6.1Subject to Section 11.3, Section 11.5, and this Section 11.6.1, [******]; provided, that [******].  The contents of any press release, publication, or other public statement that has been reviewed and approved by [******] may be re-released by [******] without first obtaining [******] prior written consent in accordance with this Section 11.6.1.

11.6.2[******]; provided, that, subject to Sections 11.3 and 11.5, any such [******]. [******], [******] shall use [******]. [******] shall first [******], subject to and in accordance with Section 11.3 and Section 11.5, as applicable.

11.6.3Notwithstanding the foregoing Sections 11.6.1 and 11.6.2, the Parties shall mutually agree to a press release or public announcement regarding this Agreement and the terms hereof, such press release or public announcement to be issued promptly (but in no event later than [******]) after the Execution Date, or as otherwise agreed by the Parties.  Either Party shall be authorized to use the information disclosed in any mutually approved press release or public announcement without the need to seek further consent or approval thereof from the other Party.

11.7Use of Names

.  Except as otherwise expressly set forth herein, neither Party (or any of its respective Affiliates) shall use the name, trademark, trade name, or logo of the other Party or any of its Affiliates, or its or their respective employees, in any publicity, promotion, news release, or other public disclosure relating to this Agreement or its subject matter, without first obtaining the prior written consent of the other Party; provided, that such consent shall not be required to the extent use thereof may be required by Applicable Law, including the rules of any securities exchange or market on which a Party’s or its Affiliate’s securities are listed or traded.  Each Party shall be authorized to use the name, trademark, trade name, or logo of the other Party in the manner that such other Party has previously approved, without the need to seek further consent or approval thereof from the other Party.

11.8Clinical Trials Registry

.  For clarity, Gilead, its Affiliates, and its designees shall [******].  The Parties shall [******].

Article 12
REPRESENTATIONS AND WARRANTIES; COVENANTS 

12.1Representations and Warranties of Each Party

.  Each Party hereby represents and warrants to the other Party, as of the Execution Date and the Effective Date, that: 

12.1.1such Party is duly organized, validly existing, and in good standing under the Applicable Law of the jurisdiction of its formation and has full corporate power and authority to enter into this Agreement and to carry out the provisions hereof;

12.1.2such Party has taken all necessary corporate action on its part to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder;

12.1.3this Agreement has been duly executed and delivered on behalf of such Party and constitutes a legal, valid, and binding obligation, enforceable against it in accordance 

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[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

with its terms, except to the extent that enforcement of the rights and remedies created hereby is subject to:  (i) bankruptcy, insolvency, reorganization, moratorium, and other similar laws of general application affecting the rights and remedies of creditors; or (ii) laws governing specific performance, injunctive relief, and other equitable remedies;

12.1.4the execution, delivery, and performance of this Agreement by such Party does not breach or conflict with any agreement or any provision thereof, or any instrument or understanding, oral or written, to which such Party (or any of its Affiliates) is a party or by which such Party (or any of its Affiliates) is bound, nor violate any Applicable Law of any Governmental Authority having jurisdiction over such Party (or any of its Affiliates);

12.1.5no government authorization, consent, approval, license, exemption of or filing or registration with any court or governmental department, commission, board, bureau, agency, or instrumentality, domestic or foreign, under any Applicable Law currently in effect, is or shall be necessary for, or in connection with, the transactions contemplated by this Agreement, or for the performance by it of its obligations under this Agreement, except:  (i) as may be required to conduct Clinical Trials or to seek or obtain Regulatory Approvals or applicable Regulatory Materials; or (ii) as set forth in Article 10; and

12.1.6it has obtained all necessary authorizations, consents, and approvals of any Third Party that is required to be obtained by it for, or in connection with, the transactions contemplated by this Agreement, or for the performance by it of its obligations under this Agreement, except:  (i) as may be required to conduct Clinical Trials or to seek or obtain Regulatory Approvals or applicable Regulatory Materials; or (ii) as set forth in Article 10.

12.2Representations and Warranties of Agenus

.  Except as set forth on Schedule 12.2, Agenus hereby represents and warrants to Gilead, as of the Execution Date and the Effective Date, that:

12.2.1(i) Schedule 1.11 sets forth a complete and accurate list of all Agenus Patents; and [******];

12.2.2[******]

12.2.3Agenus has the full right and authority to grant all of the rights and licenses granted to Gilead (or purported to be granted to Gilead) hereunder, [******] have [******] to any [******] relating to [******] that would [******];

12.2.4[******]

12.2.5[******]

12.2.6[******]

12.2.7all of Agenus’s and its Affiliates’ officers, employees, and consultants:  (i) have executed agreements or have existing obligations under Applicable Law requiring assignment to Agenus or its Affiliates of all inventions made during the course of and as the result of their association with Agenus or its Affiliates, as applicable, and obligating the 

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[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

individual to assign to Agenus or its Affiliate, as applicable, all Inventions made during the course of performance under this Agreement; [******] and [******] have executed agreements or have existing obligations under Applicable Law obligating the individual to maintain as confidential Agenus’s Confidential Information as well as confidential information of other parties (including of Gilead and its Affiliates) that such individual may receive in its performance under this Agreement, to the extent required to support Agenus’s obligations under this Agreement;

12.2.8neither Agenus nor its Affiliates have [******] would be [******] by the [******];

12.2.9[******]

12.2.10[******]

12.2.11there are no [******] proceedings ([******]), or governmental investigations pending or, to the Knowledge of Agenus, threatened against Agenus or its Affiliates which could reasonably be expected to adversely affect or restrict the ability of Agenus to consummate or perform the transactions contemplated under this Agreement, [******];  

12.2.12[******]

12.2.13[******]

12.2.14neither Agenus nor its Affiliates have entered into any agreement under which Agenus or its Affiliates:  (i) has obtained a license or sublicense of rights from a Third Party to any Agenus IP; or (ii) has granted a license, sublicense, option, or right to a Third Party that remains in effect to Develop, Manufacture, or Commercialize any Licensed Product, in each case (i) and (ii), with the exception of the Existing Upstream License Agreements, the Existing Development and Manufacturing Agreements, and Ordinary Course Agreements;

12.2.15Schedule 12.2.15 sets forth a complete and accurate list of the Existing Upstream License Agreements, other than Ordinary Course Agreements, in effect as of the Execution Date.  Agenus has provided Gilead or its counsel true, correct, and complete copies of each such Existing Upstream License Agreement, subject to redaction of certain terms not necessary to determining Gilead’s rights or obligations as a sublicensee of Agenus.  Each such Existing Upstream License Agreement is in full force and effect, and there has been no Default of or under any such Existing Upstream License Agreement as a result of any action or omission of Agenus or its Affiliates or, to the Knowledge of Agenus, the actions or omissions of any Third Party.  Agenus has not waived any of its rights under any such Existing Upstream License Agreement to which it is party.  The entry into this Agreement and the contemplated activities of the Parties hereunder will not adversely affect Agenus’s rights under any Existing Upstream License Agreement;

12.2.16other than the Existing Upstream License Agreements and the Existing Development and Manufacturing Agreements, Agenus (or its Affiliates, as applicable) has not entered into any material agreement relating to (i) the Development, Manufacture, or Commercialization of any Licensed Product [******];

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[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

12.2.17Agenus has disclosed to Gilead all material information and data, and all material correspondences sent to or received from any Regulatory Authority in the possession or control of Agenus or its Affiliates, in each case, related to any Licensed Product to the extent permitted under the Prior CDA;

12.2.18Subject to Section 3.2.1(b), Agenus has not obtained, or filed, any INDs, MAAs, or Regulatory Approvals or any other form of regulatory application for the conduct of Clinical Trials, marketing, or other purpose, for any Licensed Product, and no other Person has obtained, or filed for, any such INDs, MAAs, or Regulatory Approvals for such Licensed Products; and

12.2.19 [******]

12.3Representation and Warranty of Gilead

.  Gilead hereby represents and warrants to Agenus, as of the Execution Date and the Effective Date, that there are no claims, judgments, settlements, litigations, suits, actions, disputes, arbitration, judicial, or legal, administrative, or other proceedings or governmental investigations pending or, to the knowledge of Gilead, threatened against Gilead which would reasonably be expected to adversely affect or restrict the ability of Gilead to consummate or perform the transactions contemplated under this Agreement.

12.4Covenants

.

12.4.1Mutual Covenants.  

(a)Each Party hereby covenants to the other Party that such Party and its Affiliates shall perform its activities pursuant to this Agreement in compliance (and shall ensure compliance by any of its Sublicensees and subcontractors) with all Applicable Law, including, to the extent applicable, GCP, GLP, and GMP.

(b)Each Party shall immediately notify the other Party in writing if any debarment under Section 335a of Title 21 of United States Code comes to its attention with respect to any person employed or otherwise used in any capacity for performing any activities under this Agreement, and shall promptly remove such person or entity from performing any activities related to or in connection with this Agreement.

12.4.2Additional Agenus Covenants.  Agenus hereby covenants to Gilead that:

(a)Neither Agenus nor any of its Affiliates shall grant any right or license to any Third Party relating to: (i) one (1) or more of the intellectual property rights within the Agenus IP; or (ii) any other right with respect to any Licensed Product, in either case (i) or (ii), which would conflict with, [******], any of the rights or licenses granted to Gilead hereunder;

(b)[******]

(c)[******]

(d)Agenus shall:  (i) without limiting Agenus’s other obligations under this Agreement, maintain Control of all Agenus IP licensed or sublicensed to Gilead under each 

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[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

Existing Upstream License Agreement to the extent of Agenus’s Control of such Agenus IP as of the Execution Date; and (ii) not terminate, breach, or otherwise Default under, or amend or modify any Existing Upstream License Agreement in a manner that would permit the counterparty thereto to terminate such Existing Upstream License Agreement or otherwise diminish the scope or exclusivity of the rights or licenses granted to Gilead with respect to any Agenus IP [******]; 

(e)[******]

(f)[******]

12.5Disclaimer

.  EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATIONS OR EXTENDS ANY WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED (AND EACH PARTY HEREBY EXPRESSLY DISCLAIMS ANY AND ALL REPRESENTATIONS AND WARRANTIES NOT EXPRESSLY PROVIDED IN THIS AGREEMENT), INCLUDING WITH RESPECT TO ANY PATENTS OR KNOW-HOW, INCLUDING WARRANTIES OF VALIDITY OR ENFORCEABILITY, MERCHANTABILITY, FITNESS FOR A PARTICULAR USE OR PURPOSE, PERFORMANCE, AND NON-INFRINGEMENT OF ANY THIRD PARTY PATENT OR OTHER INTELLECTUAL PROPERTY RIGHT.  WITHOUT LIMITING THE FOREGOING, THE PARTIES AGREE THAT THE MILESTONE EVENTS, SALES MILESTONE EVENTS, AND NET SALES LEVELS SET FORTH IN THIS AGREEMENT OR THAT HAVE OTHERWISE BEEN DISCUSSED BY THE PARTIES ARE MERELY INTENDED TO DEFINE THE MILESTONE PAYMENTS, SALES MILESTONE PAYMENTS, AND ROYALTY OBLIGATIONS IF SUCH MILESTONE EVENTS, SALES MILESTONE EVENTS, OR NET SALES LEVELS ARE ACHIEVED.  NEITHER PARTY MAKES ANY REPRESENTATION OR WARRANTY, EITHER EXPRESS OR IMPLIED, THAT IT WILL BE ABLE TO SUCCESSFULLY DEVELOP, MANUFACTURE, OR COMMERCIALIZE ANY LICENSED PRODUCT OR, IF COMMERCIALIZED, THAT ANY PARTICULAR SALES LEVEL OF SUCH LICENSED PRODUCT WILL BE ACHIEVED.

Article 13
INDEMNIFICATION; INSURANCE

13.1Indemnification by Gilead

.  Gilead shall indemnify, defend, and hold harmless Agenus, its Affiliates, and its and their respective directors, officers, employees, agents, successors, and assigns (collectively, the “Agenus Indemnitees”) from and against any and all Damages to the extent arising out of or relating to, directly or indirectly, any Third Party Claim based upon:

13.1.1[******]

13.1.2[******]

13.1.3[******]

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[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

provided, however, that, in each case of [******], such indemnity shall not apply to the extent Agenus has an indemnification obligation pursuant to [******] for such Damages.

13.2Indemnification by Agenus

.  Agenus shall indemnify and hold harmless Gilead, its Affiliates, and its and their respective directors, officers, employees, agents, successors, and assigns (collectively, the “Gilead Indemnitees”), from and against any and all Damages to the extent arising out of or relating to, directly or indirectly, any Third Party Claim based upon:

13.2.1[******]

13.2.2[******]

13.2.3[******]

provided, however, that, in each case of [******], such indemnity shall not apply to the extent Gilead has an indemnification obligation pursuant to [******] for such Damages.

13.3Procedure

.

13.3.1If a Party is seeking indemnification under Section 13.1 or Section 13.2, as applicable (the “Indemnitee”), it shall inform the other Party (the “Indemnitor”) of the claim giving rise to the obligation to indemnify pursuant to Section 13.1 or Section 13.2, as applicable, as soon as reasonably practicable after receiving notice of the claim (an “Indemnification Claim Notice”); provided, that any delay or failure to provide such notice shall not constitute a waiver or release of, or otherwise limit, the Indemnitee’s rights to indemnification under Section 13.1 or Section 13.2, as applicable, except to the extent that such delay or failure materially prejudices the Indemnitor’s ability to defend against the relevant claims.

13.3.2The Indemnitor shall have the right, upon written notice given to the Indemnitee within [******] after receipt of the Indemnification Claim Notice (and, where the Indemnitor is Agenus, subject to receipt of Gilead’s prior written consent), to assume the defense of any such claim for which the Indemnitee is seeking indemnification pursuant to Section 13.1 or Section 13.2, as applicable.  The Indemnitee shall cooperate with the Indemnitor and the Indemnitor’s insurer as the Indemnitor may reasonably request, and at the Indemnitor’s cost and expense.  The Indemnitee 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 Indemnitor.

13.3.3The Indemnitor shall not settle any claim without first obtaining the prior written consent of the Indemnitee, not to be unreasonably withheld, conditioned, or delayed; provided, however, that the Indemnitor shall not be required to obtain such consent if the settlement:  (a) involves only the payment of money and shall not result in the Indemnitee (or other Agenus Indemnitees or Gilead Indemnitees, as applicable) becoming subject to injunctive or other similar type of relief; (b) does not require an admission by the Indemnitee (or other Agenus Indemnitees or Gilead Indemnitees, as applicable); and (c) does not adversely affect the intellectual property Controlled by, or the rights or licenses granted to the Indemnitee (or its Affiliate) under this Agreement.  The Indemnitee shall not settle or compromise any such claim without first obtaining the prior written consent of the Indemnitor.

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[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

13.3.4If the Parties cannot agree as to the application of Section 13.1 or Section 13.2, as applicable, to any claim, pending the resolution of the dispute pursuant to Section 15.6, the Parties may conduct separate defenses of such claims, with each Party retaining the right to claim indemnification from the other Party in accordance with Section 13.1 or Section 13.2, as applicable, upon resolution of the underlying claim.  In each case, the Indemnitee shall reasonably cooperate with the Indemnitor and shall make available to the Indemnitor all pertinent information under the control of the Indemnitee, which information shall be subject to Article 11.

13.4Insurance

.

13.4.1Insurance Maintained by each Party.  During the Term, each Party shall have and maintain in full force and effect, at its own expense, insurance coverage to include:

(a)Commercial general liability insurance, including personal and advertising injury, with limits of liability not less than [******].  General liability limit requirements may be satisfied by a combination of primary and umbrella or excess liability insurance coverage; and

(b)Workers’ compensation insurance in compliance with Applicable Law (including the local law requirements of the state or jurisdiction in which the work is to be performed).  Employer’s liability insurance in amounts not less than [******].  Where permitted by Applicable Law, such policies shall contain a waiver of the insurer’s subrogation rights against the non-insured Party.

13.4.2Additional Requirements.

(a)Additional Insured.  Each Party shall name the other Party as an additional insured on the insurance policies maintained pursuant to Section 13.4.1(a) either by endorsement or blanket additional insured endorsement.

(b)Evidence of Insurance.  Each Party will provide evidence of insurance maintained pursuant to this Section 13.4 on request of the other Party.

(c)Notice of Cancellation.  Each Party will provide the other Party a notice of insurance policy cancellation in accordance with the provisions of the applicable insurance policy maintained pursuant to this Section 13.4.

(d)Policy Type.  Insurance policies maintained pursuant to this Section 13.4 should be occurrence type.  If policies maintained pursuant to this Section 13.4 are claims made, then insurance shall be maintained for at least [******] following expiration or termination of this Agreement.

(e)Insurance Carrier Rating.  All insurance maintained pursuant to this Section 13.4 will be underwritten by companies with an AM best rating of at least [******].

[******]

13.5[******]

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[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

.

Article 14
TERM AND TERMINATION

14.1Term; Expiration

.

14.1.1Term.  Except for the terms and conditions of Article 1 (to the extent the definitions are used in the following provisions), Article 10, Article 11, Article 12, Article 15, this Section 14.1.1, and Section 14.7.1 (all of which shall become effective on the Execution Date), this Agreement shall become effective on the Closing Date (the “Effective Date”); provided, that this Agreement shall terminate immediately, upon written notice by a Party to the other Party, in the event that the Effective Date has not occurred on or prior to [******] after the Execution Date (“Initial Outside Date”), provided, Gilead may, in its sole discretion, provide written notice to Agenus on or prior to such Initial Outside Date to extend such Initial Outside Date by an additional [******].  Unless earlier terminated in accordance with this Article 14, this Agreement shall remain in effect until it expires as follows (the “Term”):

(a)on a Licensed Product-by-Licensed Product and country-by-country basis, this Agreement shall expire on the date of the expiration of the Royalty Term with respect to such Licensed Product in such country; and

(b)this Agreement shall expire in its entirety upon the expiration of all applicable Royalty Terms under this Agreement with respect to the Licensed Products in all countries in the Territory.

14.1.2Effect of Expiration.  Upon the expiration of the Term pursuant to Section 14.1.1, the following terms shall apply:

(a)Licenses after Licensed Product Expiration.  Upon the expiration of the Term with respect to a given Licensed Product in a given country pursuant to Section 14.1.1(a), the license set forth in Section 8.1.1 with respect to the Licensed Product in such country shall become fully paid-up, perpetual, irrevocable, and royalty-free.

(b)Licenses after Expiration of Agreement.  Upon the expiration of the Term with respect to this Agreement in its entirety pursuant to Section 14.1.1(b), the license set forth in Section 8.1.1 with respect to all Licensed Products in all countries in the Territory shall become fully paid-up, perpetual, irrevocable, and royalty-free.

14.2Termination for Material Breach

.

14.2.1Material Breach.  This Agreement may be terminated in its entirety or on a Licensed Product-by-Licensed Product or country-by-country basis by a Party for a Material Breach by the other Party; provided, that the breaching Party has not cured such breach within [******] after the date of written notice to the breaching Party of such breach (the “Cure Period”), which notice shall describe such breach in reasonable detail and shall state the non-breaching Party’s intention to terminate this Agreement (in its entirety or on a Licensed Product-by-Licensed Product or country-by-country basis).  Notwithstanding the foregoing, for any 

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[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

breach of this Agreement with respect to any undisputed payment obligation, the Cure Period shall be [******].  Any termination of this Agreement (in its entirety or on a Licensed Product-by-Licensed Product or country-by-country basis) under this Section 14.2.1 shall become effective [******], unless the breaching Party has cured such breach prior to the expiration of such Cure Period, or, if such breach is not susceptible to cure within the Cure Period, then, except with respect to any breach of any undisputed payment obligation, such Cure Period shall be extended for [******].

14.2.2Disagreement as to Material Breach.  Notwithstanding Section 14.2.1, if the Parties in good faith disagree as to whether there has been a Material Breach of this Agreement, then:  (a) the Party that disputes whether there has been a Material Breach may contest the allegation by referring such matter, within [******] following its receipt of notice of alleged Material Breach, for resolution in accordance with Section 15.6.3(a); (b) the relevant Cure Period with respect to such alleged Material Breach shall be [******].

14.3Termination at Will

.  Gilead may terminate this Agreement at will, in its sole discretion, in its entirety or on a Licensed Product-by-Licensed Product or country-by-country basis at any time upon [******] prior written notice to Agenus.

Termination for Bankruptcy

.

14.4.1If either Party makes a general assignment for the benefit of, or an arrangement or composition generally with, its creditors, appoints or suffers appointment of an examiner or of a receiver or trustee over all or substantially all of its property, passes a resolution for its winding up, or files a petition under any bankruptcy or insolvency act or law or has any such petition filed against it which is not dismissed, discharged, bonded, or stayed within [******] after the filing thereof and seeks to reject this Agreement, (a “Rejection Event”), the other Party may treat this Agreement as terminated by such rejection, effective immediately upon written notice to such Party.

14.4.2For purposes of Section 365(n) of the U.S. Bankruptcy Code (the “Code”) and any similar laws in any other country, all rights and licenses granted under or pursuant to any Section of this Agreement are rights to “intellectual property” (as defined in Section 101(35A) of the Code).  The Parties agree that the licensee of such rights under this Agreement will retain and may fully exercise all of its protections, rights and elections under the Code and any similar laws in any other country.  Each Party hereby acknowledges that (a) copies of research data, (b) laboratory samples, (c) product samples, (d) formulas, (e) laboratory notes and notebooks, (f) data and results related to clinical trials, (g) regulatory filings and approvals, (h) rights of reference in respect of regulatory filings and approvals, (i) pre-clinical research data and results, and (j) marketing, advertising and promotional materials, in each case, that relate to such intellectual property, constitute “embodiments” of such intellectual property pursuant to Section 365(n) of the Code, and that the licensee will be entitled to a complete duplicate of (or complete access to, as appropriate) any such intellectual property and all embodiments of such intellectual property, and the same, if not already in its possession, will be promptly delivered to it upon its written request therefor and election under Bankruptcy Code Section 365(n)(1)(B) to retain the licenses granted by Agenus to Gilead hereunder in the event of Agenus’s rejection of this Agreement, unless the licensor elects to continue to perform all of its obligations under this 

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[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

Agreement.  The provisions of this Section 14.4.2 are without prejudice to any rights the non-subject Party may have arising under the Code, laws of other jurisdictions governing insolvency and bankruptcy, or other Applicable Law.  The Parties agree that they intend the following rights to extend to the maximum extent permitted by law, including for purposes of the Code and any similar laws in any other country:  (x) the right of access to any intellectual property (including all embodiments thereof) of the licensor, or any Third Party with whom the licensor contracts to perform an obligation of such licensor under this Agreement which is necessary for the Development or Commercialization of a Licensed Product; (y) the right to contract directly with any Third Party described in (x) to complete the contracted work, and (z) the right to cure any breach of or default under any such agreement with a Third Party and set off the costs thereof against amounts payable to such licensor under this Agreement.

Effects of Termination

.

14.5.1Termination by Gilead at Will or by Agenus for Material Breach or Bankruptcy.  Upon termination of this Agreement with respect to a Terminated Licensed Product: (a) by Gilead, in accordance with Section 14.3; or (b) by Agenus, in accordance with Section 14.2 or Section 14.4.

(a)the licenses granted by Agenus to Gilead pursuant to Section 8.1 with respect to the Terminated Licensed Product shall terminate and Gilead shall not have any rights to use or exercise any rights under the Agenus IP with respect to such Terminated Licensed Product;

(b)Gilead shall be released from its Development, Manufacturing, and Commercialization obligations under this Agreement with respect to the Terminated Licensed Product, including with respect to Section 2.2 and Section 2.3;

(c)Gilead shall as soon as reasonably practicable transfer and assign (to the extent permitted) to Agenus all Regulatory Materials owned and controlled by Gilead or its Affiliates, in each case, at Agenus’s cost, to the extent solely related to the Terminated Licensed Product and necessary for Developing, Manufacturing, or Commercializing such Terminated Licensed Product in the Field in the Territory; provided, that Gilead may retain a copy of such items for its records;

(d)[******]

(e)upon receipt by Gilead from Agenus of written notice no later than [******], the Parties [******];

(f)in the event that Gilead does not receive written notice from Agenus within [******] pursuant to Section 14.5.1(e), then [******];

(g)in the case of termination of this Agreement in its entirety, any and all sublicense agreements entered into by Gilead or any of its Affiliates with a Sublicensee pursuant to this Agreement shall survive such termination of this Agreement, except to the extent that:  (i) any such Sublicensee is in material breach of this Agreement or such sublicense; or (ii) Agenus elects to grant such Sublicensee a direct license of the sublicensed rights on the same terms 

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applicable to Gilead under this Agreement.  Gilead shall, upon the written request of Agenus, assign any such sublicense (to the extent not terminated pursuant to the preceding sentence) to Agenus or its Affiliates and, upon such assignment, Agenus or its Affiliates, as applicable, shall assume such sublicense;

(h)each Party shall comply with the return and destruction obligations with respect to Confidential Information and any Know-How of the other Party that are in its or its Affiliates’, sublicensees’ or Third Party contractors’ possession or control in accordance with Article 11;

(i)to the extent that Gilead is manufacturing the Terminated Licensed Product as of the effective date of termination, then, upon the election of Agenus, exercised by written notice to Gilead no later than [******] following the effective date of termination, the Parties shall negotiate and use good-faith efforts to enter into:

(1)a supply agreement (and a corresponding quality agreement with customary terms and conditions) pursuant to which Gilead would supply Agenus’s requirements of the Terminated Licensed Product [******] and which would include such other mutually agreed terms as are customary for agreements of such type; or

(2)an agreement under which Gilead would provide, and cause its Affiliates to provide, [******];

(j)to the extent that a Third Party manufacturer is manufacturing the Terminated Licensed Product as of the effective date of termination, then, to the extent Gilead has the right to do so under its agreements with its Third Party manufacturers, upon the election of Agenus, exercised by written notice to Gilead no later than [******] following the effective date of termination, and at Agenus’s expense, Gilead shall [******];

(k)upon the election of Agenus, exercised by written notice to Gilead no later than [******] following the effective date of termination, at Agenus’s expense, Gilead shall assign, and shall cause its Affiliates and Sublicensees to assign, to Agenus or its designee, all of Gilead’s rights under Third Party contracts relating to the Development, Manufacture, or Commercialization of the Terminated Licensed Product, to the extent that such contracts can be assigned without the counterparty’s consent and to the extent such contracts relate solely to the Terminated Licensed Product.  To the extent that such consent is required, [******]; and Agenus shall assume Gilead’s obligations under such assigned contracts, except to the extent such obligations relate to the period of performance prior to assignment or to any breach of such agreements by Gilead, its Affiliates, or its Sublicensees; and

(l)if, as of the effective date of termination, Gilead or its Affiliates are conducting any Clinical Trials for the Terminated Licensed Product, then the Parties shall in good faith discuss and agree upon the appropriate completion or transition of such Clinical Trials to Agenus, subject to Applicable Law.

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[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

14.5.2Termination by Gilead for Material Breach or Bankruptcy.  Upon termination of this Agreement with respect to a Terminated Licensed Product by Gilead in accordance with Section 14.2 or Section 14.4:

(a)the licenses granted by Agenus to Gilead pursuant to Section 8.1 with respect to the Terminated Licensed Product shall terminate and Gilead shall not have any rights under the Agenus IP with respect to such Terminated Licensed Product;

(b)Gilead shall be released from its Development, Manufacturing, and Commercialization obligations under this Agreement with respect to the Terminated Licensed Product, including with respect to Section 2.2 and Section 2.3; and

(c)Each Party shall comply with the return and destruction obligations with respect to Confidential Information and any Know-How of the other Party that are in its or its Affiliates’, sublicensees’ or Third Party contractors’ possession or control in accordance with Article 11.

14.6[******]

Surviving Provisions

.

14.7.1Accrued Rights; Remedies.  The expiration or termination of this Agreement for any reason shall be without prejudice to any rights that shall have accrued to the benefit of any Party prior to such expiration or termination, and any and all damages or remedies (whether at law or in equity) arising from any breach hereunder, each of which shall survive expiration or termination of this Agreement.  Such expiration or termination shall not relieve any Party from obligations which are expressly indicated to survive expiration or termination of this Agreement.  Except as otherwise expressly set forth in this Agreement, the termination provisions of this Article are in addition to any other relief and remedies available to either Party under this Agreement, at law, or in equity.

14.7.2Survival.  Without limiting the provisions of Section 14.7.1, the rights and obligations of the Parties set forth in the following Sections and Articles of this Agreement shall survive the expiration or termination of this Agreement (to the extent in effect as of the Effective Date), in addition to those other terms and conditions that are expressly stated to survive termination or expiration of this Agreement:  [******].

Article 15
MISCELLANEOUS

Severability

.  If one (1) or more of the terms or provisions of this Agreement is held by a court of competent jurisdiction to be void, invalid, or unenforceable in any situation in any jurisdiction, such holding shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the void, invalid, or unenforceable term or provision in any other situation or in any other jurisdiction, and the term or provision shall be considered severed from this Agreement solely for such situation and solely in such jurisdiction, unless the void, invalid, or unenforceable term or provision is of such essential importance to this Agreement that it is to be reasonably assumed that the Parties would not have 

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entered into this Agreement without the void, invalid, or unenforceable term or provision.  If the final judgment of such court declares that any term or provision hereof is void, invalid, or unenforceable, the Parties agree to:  (a) reduce the scope, duration, area, or applicability of the term or provision or to delete specific words or phrases to the minimum extent necessary to cause such term or provision as so reduced or amended to be enforceable; and (b) make a good-faith effort to replace any void, invalid, or unenforceable term or provision with a valid and enforceable term or provision such that the objectives contemplated by the Parties when entering this Agreement may be realized.

Notices

.  Any notice required or permitted to be given by this Agreement shall be in writing and in English and shall be:  (a) delivered by hand or by overnight courier with tracking capabilities; or (b) mailed postage prepaid by first class, registered, or certified mail, in each case, addressed as set forth below unless changed by notice so given:

If to Gilead:

 

Gilead Sciences, Inc.

333 Lakeside Drive

Foster City, CA 94404

Attention:  [******]

 

With copies to:

 

Gilead Sciences, Inc.

333 Lakeside Drive

Foster City, CA 94404

Attention:  [******]

 

If to Agenus:

 

Agenus Inc.

3 Forbes Road

Lexington, Massachusetts 02421-7305, USA

Attention:Chief Executive Officer

 

With copies to:

 

Agenus Inc.

3 Forbes Road

Lexington, Massachusetts 02421-7305, USA

Attention:General Counsel 

Any such notice shall be deemed given on the date received, except any notice received after 5:30 p.m. (in the time zone of the receiving Party) on a Business Day or received on a non-Business Day shall be deemed to have been received on the next Business Day.  A Party may add, delete, or change the person or address to which notices should be sent at any time upon written notice delivered to the other Parties in accordance with this Section 15.2.

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Force Majeure

.  A Party shall not be liable for delay or failure in the performance of any of its obligations hereunder if such delay or failure is due to a cause beyond the reasonable control of such Party, including acts of God, fires, earthquakes, acts of war, terrorism, or civil unrest, or hurricane or other inclement weather; provided, that the affected Party:  (a) promptly notifies the other Party; and (b) shall use its commercially reasonable efforts to avoid or remove such causes of non-performance and to mitigate the effect of such occurrence, and shall continue performance in accordance with the terms of this Agreement whenever such causes are removed.  When such circumstances arise, the Parties shall negotiate in good faith any modifications of the terms of this Agreement that may be necessary or appropriate in order to arrive at an equitable solution.

Assignment

.  Except as provided in this Section 15.4, 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 consent of the other Party; provided, however, that (and notwithstanding anything elsewhere in this Agreement to the contrary but without prejudice to Section 7.6.2) either Party may, without such consent, assign this Agreement and its rights and obligations hereunder in whole or in part:  (a) to an Affiliate of such Party; (b) in connection with the transfer or sale of all or substantially all of its assets or business related to the subject matter of this Agreement; or (c) pursuant to a merger or consolidation (or similar transaction) of the assigning Party.  In addition, Gilead may, without the consent of Agenus, assign its rights and obligations under this Agreement to a Third Party, where Gilead or its Affiliate divest rights to a Licensed Product or Licensed Antibody.  Any attempted assignment not in accordance with this Section 15.4 shall be void.  In the event that a permitted assignment of this Agreement by a Party increases the tax liability of the other Party or any of its Affiliates over the amount of any Taxes that otherwise would have been payable in the absence of such assignment, the assigning Party shall reimburse the other Party for the amount of such increased Tax liability.

Waivers and Modifications

.  The failure of any Party to insist on the performance of any obligation hereunder shall not be deemed to be a waiver of such obligation.  Waiver of any breach of any provision hereof shall not be deemed to be a waiver of any other breach of such provision or any other provision on such occasion or any succeeding occasion.  No waiver, modification, release, or amendment of any obligation under or provision of this Agreement shall be valid or effective unless in writing and signed by the Parties.

Choice of Law; Waiver of Jury Trial; Dispute Resolution; Jurisdiction

.

15.6.1Choice of Law.  This Agreement and any dispute arising from the performance or breach hereof shall be governed by and interpreted in accordance with the laws of the State of New York, without giving effect to any choice of law rules.  The provisions of the United Nations Convention on Contracts for the International Sale of Goods shall not apply to this Agreement or any subject matter hereof.

Waiver of Jury Trial

.  THE PARTIES HEREBY WAIVE, AND COVENANT THAT THEY SHALL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT, OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY ACTION ARISING IN WHOLE OR IN PART UNDER OR IN CONNECTION WITH THIS AGREEMENT, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER 

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SOUNDING IN CONTRACT, TORT, OR OTHERWISE.  THE PARTIES AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY, AND BARGAINED-FOR AGREEMENT BETWEEN THE PARTIES IRREVOCABLY TO WAIVE ITS RIGHT TO TRIAL BY JURY IN ANY PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THIS AGREEMENT, AND SUCH PROCEEDING SHALL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

15.6.3Dispute Resolution.

(a)Except as otherwise set forth in this Agreement, in the event of an unresolved matter, dispute, or issue relating to the breach or alleged breach or interpretation of this Agreement (“Dispute”), the Parties shall refer the Dispute to the Executive Officers for discussion and resolution.  If the Executive Officers are unable to resolve such Dispute within [******] of the Dispute being referred to them by either Party in writing, then the Dispute shall be resolved as provided in Section 15.6.3(b) or Section 15.6.3(c), as applicable.

(b)Any unresolved Disputes between the Parties arising out of or in connection with this Agreement shall be resolved by final and binding arbitration.  Whenever a Party decides to institute arbitration proceedings, it shall give written notice to that effect to the other Party.  Arbitration shall be held in New York, New York, according to the Rules of Arbitration of the International Chamber of Commerce (“ICC Rules”) in effect at the Effective Date, except as they may be modified herein or by mutual agreement of the Parties.  All arbitration proceedings shall be conducted by three (3) arbitrators unless otherwise mutually agreed by the Parties.  The claimant and the respondent shall each nominate an arbitrator in accordance with the ICC Rules, and the third arbitrator, who shall be the president of the arbitral tribunal, shall be appointed by the two (2) Party-appointed arbitrators in consultation with the Parties.  The Parties undertake to maintain confidentiality as to the existence of the arbitration proceedings and as to all submissions, correspondence, and evidence relating to the arbitration proceedings.  This Section 15.6.3(b) shall survive the termination of the arbitral proceedings.  No arbitrator (nor any arbitral tribunal) shall [******].  Decisions of the arbitrator(s) shall be final and binding on the Parties.  Judgment on the award so rendered may be entered in any court of competent jurisdiction.  The costs of the arbitration shall be shared by the Parties during the course of such arbitration, as assessed by the International Chamber of Commerce, and shall be borne as determined by the arbitrator(s). With respect to any dispute over the [******], within [******] after the arbitrators are selected pursuant this Section 15.6.3(b), each Party shall provide the arbitrators and the other Party a proposal (including a written memorandum in support of its position) for the [******]. In rendering a decision regarding the [******], the arbitrators shall select the proposal which is more commercially reasonable under the circumstances (or, if a Party fails to submit a proposal within such [******] period, the other Party’s proposal).

(c)Notwithstanding anything to the contrary, either Party may at any time seek to obtain preliminary injunctive relief or other applicable provisional relief from a court of competent jurisdiction with respect to an issue arising under this Agreement if the rights of such Party would be prejudiced absent such relief.  A request by a Party to a court of competent jurisdiction for interim measures necessary to preserve the Party’s rights, including attachments 

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or injunctions, shall not be deemed incompatible with, or a waiver of, the agreement to mediate or arbitrate contained in this Section 15.6.3(c), or the availability of interim measures of protection under the ICC Rules.  Notwithstanding anything to the contrary in this Section 15.6.3(c), any disputes regarding the scope, validity, enforceability, or inventorship of any Patents shall be submitted for final resolution by a court of competent jurisdiction.

Relationship of the Parties

.  Agenus and Gilead are independent contractors under this Agreement.  Nothing contained herein is intended or is to be construed so as to constitute either Party as a partner, agent, or joint venturer of the other Party.  Neither Agenus nor Gilead, respectively, shall have any express or implied right or authority to assume or create any obligations on behalf of or in the name of Agenus and Gilead, respectively, or to bind Agenus and Gilead, respectively, to any contract, agreement, or undertaking with any Third Party.

Fees and Expenses

.  Except as otherwise specified in this Agreement, each Party shall bear its own costs and expenses (including investment banking and legal fees and expenses) incurred in connection with this Agreement and the transactions contemplated hereby.

Third Party Beneficiaries

.  There are no express or implied Third Party beneficiaries hereunder.  The provisions of this Agreement are for the exclusive benefit of the Parties, and no other person or entity shall have any right or claim against any Party by reason of these provisions or be entitled to enforce any of these provisions against any Party, except for the indemnification rights of the Agenus Indemnitees pursuant to Section 13.1 and Section 13.3 and the Gilead Indemnitees pursuant to Section 13.2 and Section 13.3.

Entire Agreement

.  This Agreement, together with the attached Exhibits and Schedules, contains the entire agreement by the Parties with respect to the subject matter hereof and supersedes any prior express or implied agreements, understandings, and representations, either oral or written, which may have related to the subject matter hereof in any way, including the Prior CDA and any and all term sheets relating to the transactions contemplated by this Agreement and exchanged between the Parties prior to the Effective Date; provided, that this Agreement shall not supersede the terms and provisions of the Prior CDA applicable to any period prior to the Effective Date.

Counterparts

.  This Agreement may be executed in counterparts with the same effect as if both Parties had signed the same document.  All such counterparts shall be deemed an original, shall be construed together, and shall constitute one (1) and the same instrument.  Any such counterpart, to the extent delivered by means of facsimile by .pdf, .tif, .gif, .jpeg, or similar attachment to electronic mail (any such delivery, an “Electronic Delivery”) shall be treated in all manner and respects as an original executed counterpart and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person.  No Party hereto shall raise the use of Electronic Delivery to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of Electronic Delivery as a defense to the formation of a contract, and each Party forever waives any such defense, except to the extent that such defense relates to lack of authenticity.

Equitable Relief; Cumulative Remedies

.  Notwithstanding anything to the contrary herein, the Parties shall be entitled to seek equitable relief, including injunction and 

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specific performance, as a remedy for any breach of this Agreement.  Such remedies shall not be deemed to be the exclusive remedies for a breach of this Agreement but shall be in addition to all other remedies available at law or in equity.  The Parties further agree not to raise as a defense or objection to the request or granting of such relief that any breach of this Agreement is or would be compensable by an award of money damages.  No remedy referred to in this Agreement is intended to be exclusive, but each shall be cumulative and in addition to any other remedy referred to in this Agreement or otherwise available under Applicable Law.

Interpretation

.

15.13.1Generally.  This Agreement has been diligently reviewed by and negotiated by and between the Parties, and in such negotiations each of the Parties has been represented by competent (in-house or external) counsel, and the final agreement contained herein, including the language whereby it has been expressed, represents the joint efforts of the Parties and their counsel.  Accordingly, in interpreting this Agreement or any provision hereof, no presumption shall apply against any Party as being responsible for the wording or drafting of this Agreement or any such provision, and ambiguities, if any, in this Agreement shall not be construed against any Party, irrespective of which Party may be deemed to have authored the ambiguous provision.

15.13.2Definitions; Interpretation.

(a)The definitions of the terms herein shall apply equally to the singular and plural forms of the terms defined and, where a word or phrase is defined herein, each of its other grammatical forms shall have a corresponding meaning.

(b)Whenever the context may require, any pronoun shall include the corresponding masculine, feminine, and neuter forms.

(c)The word “will” shall be construed to have the same meaning and effect as the word “shall.”

(d)The words “including,” “includes,” “include,” “for example,” and “e.g.,” and words of similar import, shall be deemed to be followed by the words “without limitation.”

(e)The word “or” shall be interpreted to mean “and/or,” unless the context requires otherwise.

(f)The words “hereof,” “herein,” and “herewith,” and words of similar import, shall, unless otherwise stated, be construed to refer to this Agreement as a whole and not to any particular provision of this Agreement.

(g)Unless the context requires otherwise or otherwise specifically provided:  (i) all references herein to Articles, Sections, or Schedules shall be construed to refer to Articles, Sections, and Schedules of this Agreement; and (ii) reference in any Section to any subclauses are references to such subclauses of such Section.

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15.13.3Subsequent Events.  Unless the context requires otherwise:  (a) any definition of or reference to any agreement, instrument, or other document herein shall be construed as referring to such agreement, instrument, or other document as from time to time amended, supplemented, or otherwise modified (subject to any restrictions on such amendments, supplements, or modifications set forth herein); (b) any reference to any Applicable Law herein shall be construed as referring to such Applicable Law as from time to time enacted, repealed, or amended; and (c) subject to Section 15.4, any reference herein to any Person shall be construed to include the Person’s successors and assigns.

15.13.4Headings.  Headings, captions, and the table of contents are for convenience only and shall not be used in the interpretation or construction of this Agreement.

15.13.5 Prior Drafts.  No prior draft of this Agreement shall be used in the interpretation or construction of this Agreement.

Further Assurances

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

Extension to Affiliates

.  Except as expressly set forth otherwise in this Agreement, each Party shall have the right to extend the rights and obligations granted in this Agreement to one or more of its Affiliates.  All applicable terms and provisions of this Agreement, except this right to extend, shall apply to any such Affiliate to which this Agreement has been extended to the same extent as such terms and provisions apply to the Party extending such rights and obligations.  The Party extending the rights and obligations granted hereunder shall remain primarily liable for any acts or omissions of any of its Affiliates.

[Signature Page Follows]

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[******] - Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

IN WITNESS WHEREOF, and intending to be legally bound hereby, the Parties have caused this LICENSE AGREEMENT to be executed by their respective duly authorized officers as of the Execution Date.

AGENUS INC.GILEAD SCIENCES, INC.

 

By:  /s/ Garo Armen, Ph.D.By:  /s/ John G. McHutchison, MD

Name:  Garo Armen, Ph.D.Name:  John G. McHutchison, MD

Title:  Chairman and CEOTitle:  Chief Scientific Officer, Head of R&D

 

 

[Signature Page to License Agreement]

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