Document:

License agreement btwn Xenogen and Ohio University

 EXHIBIT 10.14 
  
 [CONFIDENTIAL TREATMENT GRANTED. CERTAIN PORTIONS OF THIS 
 AGREEMENT HAVE BEEN REDACTED AND SEPARATELY FILED WITH THE COMMISSION] 
  
 LICENSE AGREEMENT 
  
 This Agreement made this 13th day of June, 1985 between the Ohio University, a body politic incorporated under the laws of the State of Ohio having its
principal office at Athens, Ohio 45701 (hereinafter “Licensor”), and Embryogen, Inc., a corporation under the laws of the State of Ohio having its principal office at One President Street, Athens, Ohio 45701 (hereinafter
“licensee”). 
  
 WHEREAS, Licensor and Licensee have
entered into a License Agreement dated November 1, 1984, which granted a nonexclusive license to Licensee for the purpose of developing and commercializing the technology embodied in a patent application, U.S. Serial No. 273.239, filed June 12,
1981, entitled Genetic Transformation of Zygotes, and more specifically described as embryonic nuclear insertion gene transfer technology (hereinafter referred to as the “Invention”); 
  
 WHEREAS, Licensor and Licensee intend to terminate the November 1, 1984
License Agreement and enter into this Agreement in lieu thereof; 
  
 WHEREAS, Licensor desires to grant an exclusive license to Licensee, subject to a certain limited license heretofore granted to Genetic Engineering (hereinafter referred to as the “Genetic Engineering License”), and subject to
certain terms and conditions set forth below, for the purpose of developing the technology claimed in the patent application for commercial purposes; and 
  
 WHEREAS, Licensee desires to obtain an exclusive license from Licensor, excluding the rights granted under the Genetic 
  

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 Engineering License and subject to the terms and conditions set forth below. 
  
 NOW, THEREFORE, in consideration of the representations, warranties and
covenants herein contained and the sum of $10.00 paid by Licensee to Licensor, the receipt of which is hereby acknowledged, the parties hereto agree as follows: 
  

A. LICENSOR’S AND LICENSEE’S RIGHTS. 
  
 1. License. The Licensor grants to the Licensee the exclusive, nontransferable right and license to manufacture, use, market, sell, and otherwise
commercialize the Invention and its improvements throughout the world. Such license includes the right to grant sublicenses upon terms consistent with this Agreement. The exclusive right and license herein granted shall apply to all inventions,
improvements, patent applications, letters patent, trade secrets, know – how or proprietary information which the Licensor now owns or controls, or hereafter shall own or control, relating to the Invention, including the patent application,
U.S. Serial No. 273.239, filed June 12, 1981, entitled Genetic Transformation of Zygotes. 
  
 2. Exclusion. The exclusivity of this license is subject to the rights granted in the Genetic Engineering License, a copy of which is available for inspection at the offices of Licensor. This exclusion shall
apply to only such rights as are granted therein and Licensee shall have all other rights for its exclusive use and employment. 
  
 3. Improvements. Should Licensor make any improvements in the Invention or the manner of using the same, it is hereby agreed that Licensee shall be
entitled to use the same with all 
  

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 rights which are hereby granted with respect to the Invention. The term, “improvements”, shall mean all
modifications, enhancements and changes in or with respect to the Invention, including the manufacture, use and the application of the Invention. 
  
 4. Royalties. 
  
 (a) Licensee shall pay to Licensor the following royalty payments: 
  
 (i) A royalty equivalent to * * * of the net sales made, if any, by Licensee on any product produced from
Licensee’s use of the Invention referred to above for the term of this Agreement; and 
  
 (ii) A royalty equivalent to * * * of the royalties, rents, fixed payments or other payments actually received, if any, by Licensee, under
licenses, sublicenses, and distribution, marketing, or exploitation agreements with others regarding the Invention and any products produced therefrom. 
  
 (b) “Net Sales” shall refer to the invoice price and dollars charged by Licensee for all products sold using the information
contained in the Invention which is the subject matter of this Agreement, excluding the following: 
  
 (i) Any common carrier charge for transportation of said product, to the extent included in such invoice price as a separately stated
charge; 
  
 (ii) Credit given or allowances made
by Licensee on account of returns, replacement, defects or renegotiation of the invoice price of the product sold hereunder; 
  
 (iii) Any sales, excise, use or ad valorem taxes 
  

* * * CONFIDENTIAL TREATMENT GRANTED 
  

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 and any direct governmental charges assessed on the manufacture, sales or delivery of said product and
included in such invoice price as a separately stated charge; 
  
 (iv) Any price paid by any subsidiary or affiliate controlled by Licensee, if said subsidiary or affiliate purchased the product; and 
  
 (v) Any insurance, packing charges, rate discounts, normal and customary trade, cash, and quantity discounts
actually allowed, or commissions to local or foreign agents to the extent that they are separately stated on the invoice. 
  
 (c) “Payments actually received” shall mean cash received or funds deposited to the account of Licensee in which Licensee has an
unrestricted right of access and right to use the funds so paid. 
  
 (d) Royalties shall be due and payable annually on or before April 30 for the previous fiscal year (December 31) and Licensee agrees to render with each royalty payment a written statement setting forth the total net
sales and payments actually received that are subject to the aforesaid royalty. 
  
 (e) Licensee shall keep, and cause to be kept, detailed accurate records and books of accounts showing the information necessary for
accurate determination of royalties to be paid under this Agreement. Licensee agrees to allow Licensor and its representatives to make reasonable inspections and examinations of Licensee’s operation, books and records as they relate to this
particular license, but no more than once per year. 
  

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 5. Disclosure. Promptly upon request by Licensee, Licensor shall fully disclose to Licensee all
available information concerning the practice of the Invention. 
  
 B. PATENT APPLICATION AND USE OF THE LICENSE 
  
 1.
Patent Prosecution. Licensor agrees to prosecute domestic and foreign patent applications at its expense concerning the Invention and any improvements hereto licensed to Licensee by Licensor pursuant to this Agreement. 
  
 2. Right to Sublicense. Licensee shall have the right to sublicense
any of its rights granted hereunder to any person, firm or corporation wheresoever situated. 
  
 3. Marketing Disclosure. From time to time, Licensee agrees to consult with Licensor concerning the plans relating to the proposed marketing of the subject matter of the Invention and to inform Licensor as to
the progress being made in the development for the ultimate commercial exploitation of the Invention. 
  
 4. Assignment. The Licensee shall not have the right to assign this Agreement without the prior written consent of the Licensor, unless such
assignment shall be to an entity in which Licensee owns a controlling interest. 
  
 C. LICENSOR’S RESERVED RIGHTS. 
  
 Licensor reserves the right to continue research and development of the Invention, including assigning research rights and engaging in other funded research regarding the Invention and the subject matter of the Invention. Licensor shall not
commercialize, sell, assign or otherwise transfer any right or information regarding the Invention for the purpose of commercial 
  

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 practice of the Invention without the prior written consent of Licensee, which consent may be withheld for any reason
whatsoever. Licensor shall prevent the disclosure of trade secrets and other proprietary information regarding the Invention and it shall require any person, firm or corporation to whom it shall make an authorized disclosure to enter into a
confidentiality agreement in form satisfactory to Licensee. 
  
 D.
TERM 
  
 1. Events of Termination. This Agreement shall
continue until the expiration of the last patent on the Invention and its improvements, subject to the following: 
  
 (a) The Invention shall enter the public domain due to any reason whatsoever; 
  
 (b) In the event of default or the breach of any term or condition of this Agreement by the Licensee, the Licensor may
terminate this Agreement on 90 days written notice provided that the Licensee shall have a period of 90 days from the date of receipt of such notice within which to cure any default or breach. In the event such default or breach is cured, the
termination shall be withdrawn by the Licensor; 
  
 (c) In the
event of default or breach by Licensor, the same provisions shall apply as for the Licensee in the foregoing subparagraph. 
  
 2. Termination Procedure. Upon termination of this Agreement for any cause, the Licensee shall duly account to the Licensor and shall transfer to
Licensor all rights which it may possess and sublicenses, letters patents, inventions, trade names, and trademarks relating to the Invention and improvements thereto. 
  

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 3. Effects of Termination. In the event of termination of this Agreement, the following shall
occur: 
  
 (a) Unless otherwise prohibited by
law, upon the termination of this Agreement, Licensee shall have the right to complete any and all contracts for the sales of products containing the Invention or improvements that it may have upon its book or that it has become obligated for, and
Licensee shall pay the royalties as herein provided; provided that all contracts and sales are completed within six (6) months after the termination of this Agreement; 
  
 (b) Licensee shall provide in any sublicense of the rights granted in this Agreement that, upon the request
of Licensor, Licensee shall have the right and power to assign, and shall forthwith assign to Licensor all rights, title and interest in, to and under the sublicense agreement between Licensee and its sublicensees and that after any such assignment
Licensor shall be entitled to the royalties and other compensation payable by the sublicensees pursuant to the terms of the sublicense and Licensor shall be subrogated to the rights and liabilities of Licensee. In the event such sublicense grants
rights to other inventions and improvements owned or controlled by other persons, firms or corporations in addition to the rights to the Inventions and improvements granted hereunder, Licensor shall only be assigned a share of the compensation
payable under such sublicense. Such share shall be in proportion to the ratio of the royalty amount Licensor would have received under this Agreement to the total amount payable by Licensee to all 
  

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 licensors, including Licensor, as a result of Licensee’s sublicense; 
  
 (c) Subject to the foregoing requirements regarding the
completion of contracts, upon the termination of this Agreement for whatever reason, Licensee shall return any and all information in its possession regarding the Invention or improvements; 
  
 (d) Due to the unique nature of the Invention and
improvements and the irreparable harm to the Licensor should Licensee continue to propagation of the Invention or improvements embodied in the Licensee’s products, Licensor is authorized and entitled to obtain from any court of competent
jurisdiction restraining orders and preliminary and permanent injunctive relief, as well as an equitable accounting of all profits and benefits arising out of any such occurrence, prohibiting Licensee from thereafter using, raising, selling,
propagating or otherwise disseminating the Invention or improvements. The restraining orders and injunctive relief shall allow Licensee to complete certain of its sales contracts as provided heretofore and to require Licensee and its sublicensees to
immediately sell, if possible without further propagation or use, all products containing the Invention or improvements or otherwise assure Licensor that there will be no further use or propagation of the Invention or improvements; 
  
 (e) At the option of Licensee, and in lieu of the foregoing
equitable remedy prohibiting the use and propagation of the Invention or improvements, Licensee may elect to pay liquidated damages in the amount of two and one half (2.5) times 
  

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 the present value of the stream of royalty income Paid to Licensor over a 5 year period and amortized at
a ten percent (10%) discount rate. The yearly royalty payment for the stream of income shall be the highest yearly royalty for any one calendar year during the preceding three (3) years. In such event, Licensee shall continue to receive the rights
and benefits granted under this Agreement. 
  
 E. INFRINGEMENT.

  
 1. Licensee to Defend. The Licensee shall defend
infringement suits that may be brought against Licensee or Licensor on account of the manufacture, use, or sale of-the-Invention and improvements thereto and when information is brought to its attention indicating that others, without license, are
unlawfully infringing on the rights granted in this Agreement, Licensee shall prosecute diligently the infringer. 
  
 2. Cooperation. Licensor shall cooperate and assist Licensee at the request of Licensee in the defense of any infringement or the prosecution of
any unlawful infringer. 
  
 3. Expenses. Licensor shall, to
the extent of the royalties to be received hereunder, indemnify Licensee for all expenses incurred for the defense of any infringement suits that may be brought against Licensee or Licensor on account of the manufacture, use, or sale of the
Invention. Licensee shall pay all expenses incurred with respect to prosecuting unlawful infringers of the Invention. 
  
 F. NOTICE. 
  
 Any notice or payment required under this Agreement shall be addressed as follows: 
  

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 If to Licensor: 
  

The Edison Animal Biotechnology Center 
 The Ohio University 
 Attention: Director of the Center 
 Athens, Ohio 45701 
  
 If to Licensee: 
  
 Embryogen, Inc. 
 Attention: President 
 One President Street 
 Athens, Ohio 45701 
  
 G. MISCELLANEOUS 
  
 1. Benefit. This Agreement shall be binding upon the parties, their successors and assigns, where permitted. 
  
 2. Waiver. Waiver of any breach of this Agreement by either party
hereto shall in no event constitute a waiver as to any future breach, whether or not similar in nature. 
  
 3. Covenant of Further Assurances. Each of the parties hereto, forthwith upon request from the other, shall execute and deliver such documents and
take such actions as may be reasonably requested in order to carry out the intent and purposes of this Agreement. 
  
 4. Construction and Governing Law. This Agreement shall be construed and interpreted in accordance with the laws of the State of Ohio. 

 
 5. Arbitration. Any dispute under this Agreement shall be settled
in Athens, Ohio, by arbitration pursuant to the rules then obtaining of the American Arbitration Association. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized officer on the date and year first above
written. 
  

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	THE OHIO UNIVERSITY
		
	By:	 	/s/    James L. Bruning        
	 	 	

	 	 	 James L. Bruning, Provost

  

			
	EMBRYOGEN, INC
		
	By:	 	/s/    Wilfred R. Konneker        
	 	 	

	 	 	 Wilfred R. Konneker, President

  

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 AMENDMENT TO LICENSE AGREEMENT 
 DATED THE 13TH DAY OF JUNE, 1985 
  
 Licensee shall prosecute all continuation and improvements in the patent No 4,873,191, Genetic Transformation of Zygotes, covered by this License Agreement at its expense; and to report of any major developments with
such prosecution to the Licensor and provide a yearly written report of developments along with the fourth-quarter royalty report. 
  
 Dated and effective this 1st day of July 1991. 
  

					
	 LICENSEE
	 	 	 	 LICENSOR

			
	/s/    Steven Holtzman        	 	 	 	/s/    James L. Bruning        
	
	 	 	 	

	 Steven Holtzman
 Vice President, D.N.X.,
Inc.
	 	 	 	 James L. Bruning
 Provost of Ohio
University

  
  

 -12-Commercial license agreement btwn Xenogen and IRM, LLC

 EXHIBIT 10.17 
  
 [CONFIDENTIAL TREATMENT GRANTED. CERTAIN PORTIONS OF THIS 
 AGREEMENT HAVE BEEN REDACTED AND SEPARATELY FILED WITH THE COMMISSION] 
  
 COMMERCIAL LICENSE AGREEMENT 
  
 This Agreement (the “Agreement”) effective as of July 12, 2000 (the “Effective Date”) is made by and between Xenogen Corporation,
having a principal place of business at 860 Atlantic Avenue, Alameda, California 94501 (“Xenogen”) and IRM, LLC, a Delaware Corporation, (“IRM”), having a principal place of business at Sofia House, 48 Church Street, Hamilton,
Bermuda. 
  
 BACKGROUND 
  
 A. Xenogen has expertise in the development and detection of living cells,
organisms and transgenic animals that have the property of bioluminescence, and owns or has rights to intellectual property relating thereto. 
  
 B. IRM wishes to obtain a non-exclusive commercial license to the Xenogen Technology for use in the Field at the Authorized Sites (capitalized terms
defined below). 
  
 NOW, therefore, the parties agree as follows:

  
 1. Definitions. 
  
 “Xenogen Monitoring Technology” means (i) U.S. Patent No.
5,650,135; (ii) all divisions, substitutions, continuations, and continuation-in-part applications of (i); (iii) all foreign counterparts of any of the preceding; and (iv) all patents issuing on any of the preceding, including reissues,
reexaminations and extensions; which patents and applications have been licensed to Xenogen pursuant to that certain exclusive license agreement between Xenogen and The Board of Trustees of the Leland Stanford Junior University
(“Stanford”) effective July 1, 1997. 
  
 “Xenogen
Technology” means (i) all patents and patent applications owned or controlled by Xenogen that relate to the practice of in vivo imaging; (ii) all divisions, substitutions, continuations, and continuation-in-part applications of (i); (iii) all
foreign counterparts of any of the preceding; (iv) all patents issuing on any of the preceding, including reissues, reexaminations and extensions; and (v) all future patents and patent applications relating to the practice of in vivo imaging,
Xenogen Technology includes the Xenogen Monitoring Technology. 
  
 “Field” means the activities specified in Exhibit A attached hereto. 
  
 “Authorized Site(s)” means the physical location(s) specified in Exhibit B attached hereto. 
  
 “Affiliate” means Novartis Pharmaceuticals Corporation (“Novartis”) or any corporation, firm, partnership or other legal entity which,
directly or indirectly, controls, is controlled by or is under common control by or with Novartis. For the purposes of this definition, “control” shall mean the direct or indirect ownership of more than 50% of the outstanding voting
securities or capital stock of such entity or any other comparable equity or ownership interest. 
  
 “System” means an imaging system as specified in Exhibit C attached hereto. 
  

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 “Permitted Users” shall mean IRM, Novartis, Novartis Research Foundation, the Novartis
Institute for Functional Genomics Inc., the Friedrich Miescher Institute and all Novartis Affiliates. 
  
 “Commercial Use License” means a license by Xenogen granting rights to any for-profit entity to use the Xenogen Monitoring Technology for
commercial drug- development (e.g., compound screening and/or target validation) purposes. It is agreed that the following types of licenses do not constitute a Commercial Use License: (i) an evaluation license granted for the purpose of evaluating
Xenogen’s technology and/or BiowareTM organisms, such as the September 1998 agreement between the parties
executed by Novartis Pharmaceuticals Corporation on September 18, 1998, and by Xenogen on September 25, 1998; (ii) a strain development or modification agreement, whereby a third party is licensed to use the Xenogen Monitoring Technology to develop
new BiowareTM organisms or improve existing BiowareTM organisms, without rights to use such BiowareTM organisms for its own or contract research drug development purposes; and (iii) a distribution agreement, whereby a third party is granted rights to use the Xenogen Monitoring Technology in connection with the distribution
certain Xenogen BiowareTM organisms or animals to third parties, without rights to use such BiowareTM organisms or animals for its own or contract research drug development purposes. 
  
 2. License Grant. 
  
 2.1 License. Xenogen hereby grants to IRM and Permitted Users, a
non-exclusive, non-transferable license, without right to grant or authorize any sublicenses, to use the Xenogen Technology solely in the Field solely at the Authorized Sites. 
  
 2.2 No Implied Rights; Retained Rights. Only the License granted pursuant to the express terms of this Agreement
shall be of any legal force or effect. No other license rights shall be granted or created by implication, estoppel or otherwise. Xenogen reserves the right to license the Xenogen Technology to others, and to use the Xenogen Technology for its own
purposes. 
  
 2.3 No Warranty. IRM ACKNOWLEDGES THAT
NEITHER XENOGEN NOR STANFORD MAKE ANY REPRESENTATIONS OR EXTEND ANY WARRANTIES OF ANY KIND, WHETHER EXPRESS OR IMPLIED, WITH RESPECT TO THE XENOGEN TECHNOLOGY, INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR THAT THE
USE OF THE XENOGEN TECHNOLOGY WILL NOT INFRINGE THE INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES. 
  
 3. Light-Emitting Organisms. 
  
 3.1 Source. IRM and Permitted Users may develop or otherwise acquire from any source, light-emitting organisms for use in the practice of the
License. 
  
 3.2 Existing Xenogen BiowareTM Organisms. IRM and Permitted Users may license or purchase
from Xenogen any BiowareTM organisms that Xenogen has available for third party licensing or purchase, respectively,
at the then current list price for such BiowareTM organisms; *** 
  
 *** CONFIDENTIAL TREATMENT GRANTED 
  

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 3.3 Custom Xenogen BiowareTM Organisms. The parties may agree to have Xenogen develop custom BiowareTM organisms for IRM or Permitted Users on terms and conditions to be negotiated in good faith. 
  
 4. CCD Imaging System 
  
 4.1 Available Systems. Xenogen shall offer for sale or lease to IRM
and Permitted Users the Systems specified in Exhibit C, on terms and conditions to be agreed upon by the parties. 
  
 4.2 Lease. IRM and Permitted Users may lease either of the Systems specified in Exhibit C at a cost of * * * per month per System. The lease price
includes on-site installation and the cost of service reasonably necessary to maintain the leased System in proper operating condition. 
  
 4.3 Purchase. IRM and permitted Users may purchase either of the Systems specified in Exhibit C at a per-System cost of * * * (Hamamatsu) or * * *
(IVISTM). The purchase cost of each System includes on-site installation and one year of service and maintenance at
no additional charge. 
  
 4.4 Hardware Upgrades. Xenogen
shall notify IRM or Permitted Users if additional hardware with enhanced functionality for in vivo imaging (“Hardware Upgrade”) becomes available from Xenogen. At IRM’s or Permitted Users’ option, the parties shall then negotiate
in good faith the terms on which such a Hardware Upgrade could be made available to IRM or Permitted Users. * * * 
  
 4.5 Service Agreement. Xenogen will make available to IRM and Permitted Users a service agreement on terms consistent with industry norms
(including standard FTE labor and parts charges and travel expenses) to provide for the service and maintenance of any System(s) purchased by IRM or Permitted Users after expiration of the one year free service. Service will be initiated at
IRM’s or Permitted Users’ request, on terms and conditions to be agreed upon by the parties. 
  
 4.6 Software License. Contingent upon the lease or purchase of at least one System by IRM or Permitted Users, Xenogen shall grant to IRM and
Permitted Users a nonexclusive, nontransferable license to use and display the Software with the Equipment and with up to five (5) additional desktop computers (per System leased or purchased) used for analysis of data obtained using the System at
the Authorized Sites for the duration of this Agreement. 
  
 4.7
Software Upgrades. Xenogen will provide to IRM and Permitted Users, without charge, any upgrades to the Software (“Software Upgrades”) that Xenogen makes available to third parties. 
  
 4.8 New Software. If Xenogen makes available to third parties any new
software suitable for use with in vivo imaging (“New Software”), Xenogen shall make the New Software available to IRM and Permitted Users on terms and conditions at least as favorable as the terms and conditions agreed to by any commercial
entity that has in place a Commercial Use License to the 
  
 * * * CONFIDENTIAL
TREATMENT GRANTED 
  

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 Xenogen Monitoring Technology, for similar quantities of New Software within six (6) months of when the New Software
becomes available to IRM and Permitted Users. 
  
 4.9
Acknowledgment. The copyright of the Software is and shall remain owned by Xenogen, and IRM and Permitted Users agree that they will not, without Xenogen’s prior written consent, directly or indirectly, modify, make derivative works of,
or make any copies of the Software, except those copies necessary to run the software pursuant to Section 4.6 herein. IRM and Permitted Users further agree that they shall not, directly or indirectly, attempt to reverse engineer or decompile the
Software or otherwise derive source code from the Software. 
  
 4.10 Limited Warranty. Xenogen warrants that any System leased or purchased from Xenogen by Novartis will include all components necessary for conducting in vivo imaging experiments. 
  
 4.11 Disclaimer of All Other Warranties. XENOGEN’S LIMITED
WARRANTY SET FORTH IN SECTION 4.10 IS THE EXCLUSIVE WARRANTY, AND XENOGEN MAKES NO OTHER WARRANTIES (EXPRESS, IMPLIED, STATUTORY OR OTHERWISE) WITH RESPECT TO THE SYSTEM TRANSFERRED HEREUNDER, AND SPECIFICALLY DISCLAIMS ANY AND ALL IMPLIED
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, AND ALL WARRANTIES OF NONINFRINGEMENT OF THIRD PARTY INTELLECTUAL PROPERTY RIGHTS. 
  
 5. Consideration. In consideration for the License provided to IRM herein, IRM shall pay to Xenogen by wire transfer to an account designated by Xenogen a fee
(“Fee”) of two (2) million U.S. dollars (U.S.$2,000,000.00) per year for each of three (3) years. Such payments will be due within fifteen (15) business days of each yearly anniversary of the Effective Date. The first payment shall be due
within fifteen (15) business days of the Effective Date. 
  
 6. Ownership of
Intellectual Property. IRM and Permitted Users agree that all intellectual property rights relating to the Xenogen Monitoring Technology, the System(s) and their uses are and shall be owned or controlled exclusively by Xenogen. Xenogen agrees
that all invention(s) made by IRM or the Permitted Users in connection with the License granted hereunder that relate to subject matter other than the Xenogen Monitoring Technology, the System, or their uses shall be owned exclusively by IRM or
Novartis. 
  
 7. Confidentiality.

  
 7.1 Confidential Information. Except as expressly
provided herein, the parties agree that, for the term of this Agreement and for three (3) years thereafter, the receiving party shall protect from disclosure and shall not use for any purpose except for the purposes contemplated by this Agreement,
any information identified as confidential (“Confidential Information”) furnished to it by the disclosing party hereto. The receiving party shall use the same standard of care in safeguarding the disclosing party’s information as the
receiving party uses for its own similarly sensitive information. Confidential Information shall not include information which the receiving party shows: 
  
 (a) was already known to the receiving party, other than under an obligation of confidentiality, at the time of disclosure; 
  

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 (b) was generally available to the public or otherwise part of the public domain at the
time of its disclosure to the receiving party; 
  
 (c) became generally available to the public or otherwise part of the public domain after its disclosure and other than through any act or omission of the receiving party in breach of this Agreement; 
  
 (d) was subsequently lawfully disclosed to the receiving
party by a person other than a party hereto; or 
  
 (e) was approved for release by written authorization of the disclosing party. 
  
 7.2 Permitted Use and Disclosures. Each party hereto may use or disclose information disclosed to it by the other party to the extent such use or disclosure is reasonably necessary in complying with applicable
law, legal process or governmental regulations, or exercising its rights hereunder, provided that if a party is required to make any such disclosure of another party’s Confidential Information, it will give reasonable advance notice to the
latter party of such disclosure and will use its best efforts to secure confidential treatment of such information prior to its disclosure (whether through protective order or otherwise). 
  
 7.3 Confidential Terms. Except as expressly provided herein, each party agrees not to disclose any terms of this
Agreement to any third party without the consent of the other party; provided, disclosures may be made to actual or prospective corporate partners or investors, or to a party’s accountants, attorneys and other professional advisors. Any
disclosures made to actual or prospective corporate partners or investors, or to a party’s accountants, attorneys and other professional advisors, shall be limited to statements of fact and shall not imply endorsement of the other party’s
products or services. 
  
 8. Press Release. Xenogen may make a press
release in the form attached as Exhibit D to announce the execution of this Agreement; thereafter, Xenogen and IRM may each disclose to third parties the information contained in such press release without the need for further approval by the other
party. Other press releases of any kind by either party will be released only after both parties have agreed in writing to the contents of the press releases. 
  

9. Warranties and Indemnification 
  
 9.1 Warranty of Right to Grant License. Xenogen warrants that as of the Effective Date, (a) it has the legal right to grant the License herein, and
(b) the grant of the License does not conflict with, violate, or constitute a breach or default under any contract or other obligation of Xenogen. 
  
 9.2 Warranty of Full Disclosure. Xenogen warrants that as of the Effective Date, all non-cumulative material, prior art references and information
that Xenogen is aware of and that could adversely affect Xenogen’s pending patent applications and issued patents relating to the Xenogen Monitoring Technology are presently before the United States Patent and Trademark Office (USPTO).

  
 9.3 Indemnification. (a) IRM agrees to indemnify,
defend and hold Xenogen and its directors, officers, employees and agents and The Trustees of the Leland Stanford Junior 
  

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 University, Stanford Health Services and their respective trustees, officers, employees, students and agents (the
“Xenogen Indemnitee(s)”) harmless from and against any and all liabilities, claims, demands, expenses (including, without limitation, reasonable attorneys and professional fees and other costs of litigation), losses or causes of action
(each, a “Xenogen Liability”) that may be brought against the Xenogen Indemnitee(s) by reason or arising out of or relating in any way to (i) IRM’s or Permitted Users’ possession and use of the System, whether based on
negligence, product liability or otherwise, (ii) the exercise of any right granted to IRM or Permitted Users pursuant to this Agreement, or (iii) any material breach of this Agreement by IRM or Permitted Users, except to the extent, in each case,
that such Xenogen Liability is caused by the negligence or willful misconduct by Xenogen as determined by a court of competent jurisdiction. Notwithstanding the above, neither IRM nor any Permitted User shall enter into any settlement or other
agreement which makes any admission of negligence or wrongdoing on the part of any Xenogen Indemnitee or that relates to the validity or enforceability of any patents owned by Xenogen without the prior written consent of Xenogen, which consent shall
not be unreasonably withheld. (b) Xenogen agrees to defend, indemnify and hold IRM, the Permitted Users and its directors, officers, employees, agents and assigns (the “IRM Indemnitee(s)”) harmless against any and all liabilities, claims,
demands, expenses (including, without limitation, reasonable attorney’s and professional fees and other costs of litigation), losses or causes of action (each, an “ IRM Liability”) that may be brought against the IRM Indemnitee(s) by
reason or arising out of or relating in any way to any negligent act or willful misconduct on the part of Xenogen, except to the extent that such IRM Liability is caused by the negligence or willful misconduct by IRM or Permitted Users as determined
by a court of competent jurisdiction. Notwithstanding the above, Xenogen shall not enter into any settlement or other agreement which makes any admission of negligence or wrongdoing on the part of any IRM Indemnitee(s). The party seeking
indemnification under this Section shall immediately notify the other party, in writing, of any claim or proceeding brought against it for which it seeks indemnification hereunder. 
  
 10. Term and Termination 
  
 10.1 Term. This Agreement will commence on the Effective Date and unless terminated earlier as provided in this
Article 10, will terminate three (3) years after the Effective Date. 
  
 10.2 Term Extension. Prior to the *** anniversary of the Effective Date, unless earlier terminated, IRM, Permitted Users or an assignee under Section 11.2 herein may extend the Term for up to *** additional years by paying to Xenogen
a fee of *** U.S. dollars (U.S. ***) per year of extension. 
  
 10.3 Permissive Termination. IRM may terminate this Agreement upon thirty (30) days written notice to Xenogen for (i) failure of the Xenogen Monitoring Technology, as confirmed by at least one peer-reviewed publication by a
disinterested party, (ii) a final judgment of invalidity of all Relevant Patent Claims (as defined below) under the Xenogen Monitoring Technology, (iii) a final adverse resolution of infringement of third party intellectual property rights, or (iv)
an assignment by Xenogen to a major pharmaceutical company pursuant to Section 11.2 herein. A Relevant Patent Claim is a claim under the Xenogen Monitoring Technology that would be infringed by IRM or Permitted Users but for the License granted
herein. IRM may also terminate this Agreement after two years, and annually thereafter, for any reason with 60 days written notice prior to the annual anniversary date of this Agreement. 
  
 *** CONFIDENTIAL TREATMENT GRANTED 
  

 6 

 10.4 Termination for Cause. Either party may terminate this Agreement in the event the other party
has materially breached or defaulted in the performance of any of its obligations hereunder, and such default has continued for thirty (30) days after written notice thereof was provided to the breaching party by the nonbreaching party. Any
termination shall become effective at the end of such thirty (30) day period unless the breaching party has cured any such breach or default prior to the expiration of such period. Notwithstanding the above, in the case of a failure to pay any
amount due hereunder the period for cure of any such default following notice thereof shall be ten (10) days and, unless payment is made within such period, the termination shall become effective at the end of such period. 
  
 10.5 Automatic Termination. This Agreement shall terminate
automatically and without further notice to the other party in the event that either party shall make any unauthorized assignment for the benefit of creditors, file any petition under the bankruptcy or insolvency laws of any jurisdiction, have or
suffer a receiver or trustee to be appointed for its business or property, or be adjudicated a bankrupt or an insolvent. 
  
 10.6 Effect of Termination. 
  
 (a) Accrued Rights and Obligations. Termination of this Agreement for any reason shall not release any party hereto from any
liability which, at the time of such termination, has already accrued to the other party or which is attributable to a period prior to such termination nor preclude either party from pursuing any rights and remedies it may have hereunder or at law
or in equity with respect to any breach of this Agreement. 
  
 (b) Return of Confidential Information and Leased Systems. Upon any termination or expiration of this Agreement, IRM and Permitted Users and Xenogen shall promptly return to the other party all Confidential
Information received from the other party (except one copy which may be retained for legal archival purposes), IRM and Permitted Users shall return to Xenogen all leased Systems, including all Equipment and Software leased to IRM and Permitted Users
under any lease agreement within thirty (30) days of the termination of this Agreement. The System(s) shall be shipped to Xenogen’s facility at the address set forth in Section 11.5. IRM or Permitted Users shall pay all shipping and freight
charges, and shall assume the risk of loss during shipment. Xenogen agrees that in the event of any loss or damage to the leased System(s), IRM’s or Permitted Users’ liability for such loss or damage shall not exceed the lower of the
amortized or market values of the leased System(s) at the time of damage or loss. 
  
 (c) Licenses. The licenses granted hereunder shall terminate upon the termination of this Agreement, 
  
 10.7 Survival. Sections 2.3, 4.11, 10.6 and 10.7; and Articles 6,7, 9
and 11 of this Agreement shall survive the expiration or termination of this Agreement for any reason, 
  
 11. Miscellaneous 
  
 11.l Governing Law; Venue. This Agreement and any dispute, including without limitation any arbitration, arising from the performance or breach
hereof shall be governed by and construed and enforced in accordance with the laws of the state of California, without reference to conflicts of laws principles. The exclusive venue of any dispute arising out of or in connection with 
  

 7 

 the performance or breach of this Agreement shall be the California state courts or U.S. district court located in
Alameda County, California. 
  
 11.2 Assignment. IRM may
not transfer or assign this Agreement or any of IRM’s rights hereunder without the written consent of Xenogen, which consent shall not be unreasonably withheld; the foregoing notwithstanding, IRM may assign this Agreement to Novartis or any
Novartis Affiliate. Xenogen may assign this Agreement or its rights hereunder. This Agreement shall be binding upon and inure to the benefit of the parties and their permitted successors and assigns. 
  
 11.3 Waiver. No waiver of any rights, shall be effective unless
consented to in writing by the party to be charged and the waiver of any breach or default shall not constitute a waiver of any other right hereunder or any subsequent breach or default. 
  
 11.4 Severability. In the event that any provision of this Agreement is determined to be invalid or unenforceable by
a court of competent jurisdiction, the remainder of the Agreement shall remain in full force and effect without said provision. 
  
 11.5 Notices. All notices, requests and other communications hereunder shall be in writing and shall be personally delivered or sent by telecopy or
other electronic facsimile transmission or by registered or certified mail, return receipt requested, postage prepaid, in each case to the respective address specified below, or such other address as may be specified in writing to the other parties
hereto: 
  

			
	IRM:	  	IRM, LLC
	 	  	P.O. Box HM 2899
	 	  	Hamilton HMLX, Bermuda
		
	Xenogen:	  	Xenogen Corporation
	 	  	860 Atlantic Avenue
	 	  	Alameda, CA 94501
	 	  	Attn: President

  
 11.6 Independent
Contractors. Both parties are independent contractors under this Agreement. Nothing contained in this Agreement is intended nor is to be construed so as to constitute Xenogen or Novartis as partners or joint venturers with respect to this
Agreement. Neither party shall have any express or implied right or authority to assume or create any obligations on behalf of or in the name of the other party or to bind the other party to any other contract, agreement, or undertaking with any
third party. 
  
 11.7 Use of Name. Neither IRM nor
Permitted Users shall use the name or trademarks of Xenogen or Stanford without the prior written consent of Xenogen or Stanford, respectively. Xenogen shall not use the name or trademarks of IRM or the Permitted Users without prior written consent,
respectively. 
  
 11.8 Compliance with Laws. In exercising
their rights under this license, the parties shall fully comply in all material respects with the requirements of any and all applicable laws, regulations, rules and orders of any governmental body having jurisdiction over the exercise of rights
under this Agreement. 
  

 8 

 11.9 LIMITATION OF LIABILITY. NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY SPECIAL,
CONSEQUENTIAL, INCIDENTAL OR INDIRECT DAMAGES, INCLUDING, WITHOUT LIMITATION, ANY LOSS OF USE, REVENUE OR PROFIT, ARISING OUT OF THIS AGREEMENT, THE EXECUTION OF THE LICENSE, OR ANY BREACH OR DEFAULT UNDER THIS AGREEMENT, HOWEVER CAUSED, UNDER ANY
THEORY OF LIABILITY. 
  
 11.10 “Most Favored
Licensee”. Xenogen agrees that it will not grant, to any commercial entity, a Commercial Use License with no milestone, royalty or per-use fees, to use the Xenogen Technology for All Fields, for a per-year license fee which is less than the
per-year license fee paid by IRM under this Agreement. In the event that Xenogen does grant such a license to any other commercial entity, Xenogen will refund or credit IRM the difference. This clause shall not apply to any settlements for past
infringement. 
  
 11.11 Entire Agreement: Amendment. This
Agreement, together with its Exhibits, constitutes the entire and exclusive Agreement between the parties with respect to the subject matter hereof and supersedes and cancels all previous discussions, agreements, commitments and writings in respect
thereof. No amendment or addition to this Agreement shall be effective unless reduced to writing and executed by the authorized representatives of the parties. 
  

									
	 IRM, LLC
	 	 	 	 XENOGEN CORPORATION

					
	Signature:	 	 /s/    J. Reinhardt        

	 	 	 	Signature:	 	 /s/    David W. Carter        

	 Printed Name:
	 	 Dr. J. Reinhardt        Dr. B. Aebischer

	 	 	 	 Printed Name:
	 	 David W. Carter

	 Title:
	 	 President                   Secretary

	 	 	 	 Title:
	 	 Chairman

	 Date:
	 	 7/25/2000
	 	 	 	 Date:
	 	 7/10/00

  
 Exhibit A: Field 
 Exhibit B: Authorized Site 
 Exhibit C: CCD Imaging System 
 Exhibit D: Press Release 
  

 9 

 EXHIBIT A 
  

Field 
  
 Drug discovery, lead compound development, pre-clinical evaluation & development (including efficacy and safety assessment, such as toxicology), and clinical research
& development for all targets, diseases and indications. 
  

 10 

 EXHIBIT B 
  

Authorized Sites 
  
 All Novartis sites: 
  
 The sites of all Novartis Affiliates 
  
 The
Novartis Research Foundation entities including, but not limited to: 
  
 The Novartis Institute for Functional Genomics, and 
  
 The Friedrich Miescher Institute. 
  

 11 

 EXHIBIT C 
  

CCD Imaging Systems Available for Sale or Lease to IRM or Permitted Users 
  
 Hardware  
  

Hamamatsu 2400 Imaging System  
  

	 	•	Hamamatsu intensified CCD camera 

  

	 	•	Hamamatsu (Argus) Image Processor 

  

	 	•	Nikkor® 50 mm f 1.2 lens 

  

	 	•	Hamamatsu specimen chamber 

  

	 	•	Macintosh® control computer with high-resolution monitor 

  
 Xenogen IVISTM Imaging System 
  

	 	•	Roper LN- 1300EB cooled CCD camera (or equivalent) 

  

	 	•	Navitar 50 mm f 0.95 lens (or equivalent) 

  

	 	•	Xenogen specimen chamber 

  

	 	•	Windows 98® control computer with high-resolution monitor 

  
 Software 
  
 LivingImageTM Image processing and data analysis software 
  

 12 

 EXHIBIT D 
  

PRESS RELEASE 
  
 XENOGEN CORPORATION GRANTS NOVARTIS LICENSE TO XENOGEN’S 
 PATENTED REAL-TIME IN VIVO IMAGING TECHNOLOGY 
  
 Alameda, CA (July XX, 2000) — Xenogen Corporation, a leader and innovator in the field of real time in vivo imaging, and a company of Novartis
Research Foundation today announced they have entered into a full commercial licensing agreement for Xenogen’s real time in vivo imaging technology. This agreement grants Novartis complete access to Xenogen’s proprietary suite of
technologies for use in pre-clinical drug development studies at any Novartis site worldwide. 
  
 The three-year, multi-million dollar agreement (with an option for an additional four years) is the result of a successful pilot study with Xenogen’s technology under an “evaluation license” during
which Novartis assessed the technology’s potential in its pharmaceutical research and development process. Xenogen has a number of such evaluation license agreements with other major pharmaceutical companies worldwide. 
  
 Xenogen’s unique and unrivaled technology represents a novel approach to
the biological assessment of new chemical entities (NCEs) — compounds that serve as the basis for new drugs. Critical advantages offered by Xenogen’s technology include providing higher quality data at earlier time points, resulting in a
better selection of drug development candidates. These advantages result in significant time and cost savings in drug development. 
  
 “Based on the success of our evaluation licensing agreement, Novartis is confident in our decision to expand our business relationship with
Xenogen,” said Alexander Wood, Ph.D., representing Novartis. “We are optimistic that Xenogen’s technology will help improve the speed, accuracy and cost-effectiveness of our pharmaceutical discovery and development programs.”

  
 “Xenogen is pleased to expand its alliance with Novartis,
a worldwide leader in pharmaceutical research. By applying Xenogen’s technology in a cancer model, Novartis has elegantly demonstrated the potential to expedite the development of important new drugs across the spectrum of therapeutic
areas,” said Dr. Pamela Reilly Contag, Ph.D., president and co-CEO of Xenogen Corporation. “The Novartis license represents a milestone for Xenogen in the commercialization of this valuable and unique technology.” 
  

 About the Technology 
  
 Xenogen’s patented real-time in vivo imaging technology enables the detection of fluorescent or bioluminescent cells
(e.g., tumor cells and bacteria) inside intact living animals, allowing non-invasive visualization and tracking of the cells to monitor the effects of treatment with NCEs in vivo in real time. The technology also provides researchers with a way to
localize and follow the activation of selected genes in vivo in Xenogen’s LPTATM light-producing transgenic animals. 
  
 Real-time in vivo imaging offers pharmaceutical companies like Novartis a number of unique benefits to help increase the productivity of their drug
development pipelines. Compared to traditional methods the technology provides improved, more predictive data and thus a better selection process for drug development candidates. In addition, Xenogen’s technology allows researchers to conduct
assessments more rapidly and efficiently. The resulting reduction in labor costs, coupled with a reduction in the number of test animals needed, leads to significant overall cost savings. 
  
 Novartis 
  
 Novartis researches, develops, manufactures and markets leading innovative prescription drugs used to treat a number of diseases and conditions, including
central nervous system disorders, organ transplantation, cardiovascular diseases, dermatological diseases, respiratory disorders, cancer and arthritis. The company’s mission is to improve people’s lives by pioneering novel healthcare
solutions. 
  
 Located in East Hanover, New Jersey, Novartis
Pharmaceuticals Corporation is an affiliate of Novartis AG, a world leader in healthcare with core businesses in Pharmaceuticals, consumer health, generics, eye-care, and animal health. In 1999, the Group (including agribusiness) achieved sales of
USD 21.7 billion and invested more than USD 2.8 billion in R&D. Headquartered in Basel, Switzerland, Novartis employs about 82,400 people and operates in over 140 countries around the world. The Group recently announced plans to spin off its
crop protection and seeds sectors and to merge them with the agrochemicals business of AstraZeneca in the second half of 2000. 
  

 Xenogen Corporation 
  
 Xenogen Corporation is a leader in the field of real-time in vivo imaging, providing the pharmaceutical industry with
proprietary technologies, products and services that enable real-time in vivo monitoring to rapidly identify drug leads for successful clinical development. These technologies, unique to Xenogen, enable researchers to overcome barriers that have
complicated NCE assessment for many years. 
  
 Xenogen’s
technology has attracted strong interest from a wide range of pharmaceutical companies worldwide. In addition to pharmaceutical development, the technology has broad applications in other fields, including toxicology and the chemical industry.

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