Document:

QuickLinks
 -- Click here to rapidly navigate through this document
  

Exhibit 10.2  

 
 

RESEARCH AND COMMERCIALIZATION AGREEMENT    
    

        THIS RESEARCH AND COMMERCIALIZATION AGREEMENT (the "Agreement"), effective as of April 6, 2004 (the
"Effective Date"), is entered by and between MEDAREX, INC., a New Jersey corporation, with a principal place of business at 707 State Road,
Princeton, New Jersey 08540, GENPHARM INTERNATIONAL, INC., a wholly owned subsidiary of Medarex, Inc., (collectively, "Medarex"), and  CELLDEX THERAPEUTICS,
 INC., a Delaware corporation, with a principal place of business at 519 Route 173 W, Bloomsbury, New Jersey 08804
("Celldex"). 

        WHEREAS, Medarex owns or otherwise controls certain technology, including certain patents and know-how, relating to the use of
antibodies in connection with the research and development of vaccines; 

        WHEREAS, Medarex has determined that this technology and the associated business opportunities are outside of Medarex's core business and,
accordingly, can best be exploited through a separate corporate entity; 

        WHEREAS, Medarex has caused Celldex to be incorporated for this purpose; and 

        WHEREAS, Celldex wishes to acquire from Medarex an option to obtain exclusive commercial licenses under the Medarex Technology (as defined
below) for the use of the Medarex Mice (as defined below) to prepare fully human antibodies, and subject to the availability of such license rights with regard to such antibodies, Medarex is willing
to grant such licenses, on the terms and conditions herein. 

        NOW, THEREFORE, in consideration of the foregoing premises and the mutual promises and covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, do hereby agree as follows: 

1.     DEFINITIONS  

        1.1   "Additional Mice" shall mean (a) the mice developed by Kirin Brewery Company, Ltd.
("Kirin") using certain transchromosomal technology and licensed to Medarex pursuant to the Collaboration and License Agreement between Medarex and
Kirin, dated September 4, 2002 (the "Kirin Agreement"), and (b) the mice developed through the crossbreeding of the Medarex Mice with the
mice described in clause (a) of this Section 1.1 and licensed to Medarex pursuant to the Kirin Agreement. 

        1.2   "Affiliate" shall mean any Person that, directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with another Person. For purposes of this definition only, "control" and, with correlative meanings, the terms "controlled by" and "under common control with"
shall mean (a) the possession, directly or indirectly, of the power to direct the management or policies of a Person, whether through the ownership of voting securities or by contract relating
to voting rights or corporate governance, or (b) the ownership, directly or indirectly, of at least fifty percent (50%) of the voting securities or other ownership interest of a Person;
provided that, if local law restricts foreign ownership, control will be established by direct or indirect ownership of the maximum ownership percentage that may, under such local law, be owned by
foreign interests. For purposes of this Section 1.2, (i) "Person" shall mean an individual, sole proprietorship, partnership, limited partnership, limited liability partnership,
corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture or other similar entity or organization, including a government or
political subdivision, department or agency of a government, and (ii) neither Medarex, Celldex nor Genmab A/S shall be deemed to be an "Affiliate" of the other(s). 

1

 

        1.3   "Antibody" shall mean any fully human antibody, or fragment thereof, with a unique amino acid sequence that has been
raised against a Research Antigen. By way of clarification, (i) Antibodies with different amino acid sequences shall be deemed to be different Antibodies, irrespective of whether they bind to
the same Research Antigen, and (ii) any single chain antibody that is derived from an Antibody shall be deemed to be the same Antibody as the Antibody from which it is derived. 

        1.4   "Antibody Materials" shall mean any and all genes and DNA sequences, including vectors containing same, that code for an
Antibody and any hybridoma that produces an Antibody. References in the Agreement to a "Antibody Materials" shall include (a) cells expressing or secreting such Antibody or containing
nucleotide sequences (whether coding or non-coding) with respect to the expression of such Antibody, and (b) nucleotide sequences (whether coding or non-coding) with
respect to the expression of such Antibody (or a fragment of such entire Antibody containing that portion of such Antibody conferring binding specificity for a Research Antigen). 

        1.5   "Antigen" shall mean any protein (including any glyco- or lipo-protein), carbohydrate, compound or other
composition, and any fragment, peptide or epitope thereof, that stimulates the production of antibodies. 

        1.6   "Approval" shall mean all approvals, licenses, registrations and authorizations of all governmental agencies in a country
necessary for the manufacture, use or sale of a Product in the applicable country. 

        1.7   "Backup Antibody" shall have the meaning set forth in Section 4.2.1. 

        1.8   "Biological License Application" or "BLA" shall mean a Biological License
Application as defined in the U.S. Food, Drug and Cosmetics Act and the regulations promulgated thereunder, and any corresponding or equivalent foreign application, registration or certification. 

        1.9   "Calendar Quarter" shall mean each three-month period commencing January 1, April 1, July 1 or
October 1 of each year during the term of this Agreement. 

        1.10 "Commercially Reasonable Efforts" shall mean, with respect to a Product, efforts and resources similar to those employed
by Celldex to develop, manufacture or market a product of similar market potential at a similar stage in its product life, taking into account for example the establishment of the Product in the
marketplace, the competitiveness of alternative products, the likely proprietary position of the Product, the likelihood of regulatory approval for the Product, the potential profitability of the
Product and Celldex's resources available. Commercially Reasonable Efforts shall be determined on a market-by-market basis for each Product. 

        1.11 "Confidential Information" shall mean, subject to the provisions of Article 9 hereof, any information, whether in
oral, written, graphic, electronic or tangible form, disclosed by one party to the other hereunder or under any agreement governing the use and disclosure of confidential information entered into by
the parties prior to the Effective Date. 

        1.12 "Control" or "Controlled" shall mean, with respect to a particular item
of information or intellectual property right, (i) that the party owns and has the ability to grant to the other party the licenses to such item provided for herein, without violating the terms
of any agreement or other arrangement with any third party, and/or (ii) that the party has a license to such item and has the ability to grant to the other party the licenses to such item
provided for herein, without violating the terms of any agreement or other arrangement with any third party. 

        1.13 "Cross License Agreement" shall mean that certain Cross License Agreement between and among Medarex, Cell
Genesys, Inc., Abgenix, Inc., Xenotech, L.P. and Japan Tobacco Inc., dated March 26, 1997. 

        1.14 "Exclusive Commercial License" shall have the meaning set forth in Section 4.3. 

2

 

        1.15 "FDA" shall mean the U.S. Food and Drug Administration and any successor agency thereto. 

        1.16 "First Commercial Sale" shall mean, with respect to each Product in each country, the first bona fide commercial sale by
Celldex, its Affiliates or Sublicensees of such Product following Marketing Approval in such country; provided, however, that where such first commercial sale has occurred in a country for which
government pricing or government reimbursement approval is needed for widespread commercial sale (for clarification, the parties acknowledge that no such approval is currently required in the United
States), then such sales shall not be deemed a First Commercial Sale until such pricing or reimbursement approval has been obtained. 

        1.17 "IND" shall mean an Investigational New Drug application, as defined in the U.S. Food, Drug and Cosmetics Act and the
regulations promulgated thereunder, or any corresponding or equivalent foreign application, registration or certification. 

        1.18 "Licensed Antibody" shall mean an Antibody to which Celldex obtains an Exclusive Commercial License pursuant to
Section 4.3. 

        1.19 "Marketing Approval" shall mean, with respect to each country of the Territory for a particular Product, approval of the
applicable MAA filed in such country by the health regulatory authority in such country that is the counterpart of the FDA. It is understood that Marketing Approval does not necessarily include
pricing or reimbursement approval. 

        1.20 "Marketing Approval Application" or "MAA" shall mean, on a
Product-by-Product basis, a New Drug Application or Biologics License Application as required under the U.S. Food, Drug and Cosmetics Act and the regulations promulgated
thereunder, or a comparable filing in a foreign country. 

        1.21 "Medarex Mice" shall mean any of Medarex's immunizable transgenic mice containing unrearranged human immunoglobulin
heavy and light chain transgenes, each inserted into mouse chromosomes, but excluding the Additional Mice. 

        1.22 "Medarex Technology" shall mean the Medarex Patent Rights and Medarex Know How. 

        1.22.1
"Medarex Patent Rights" shall mean all United States and foreign patents (including all reissues, extensions, substitutions,
re-examinations, supplementary protection certificates and the like, and patents of addition) and patent applications (including, without limitation, all continuations,
continuations-in-part and divisions thereof) Controlled by Medarex during the term of this Agreement that claim an invention which is necessary or reasonably useful for the use
of the Medarex Mice to create Antibodies or to develop, produce, make, have made, import, have imported, use, offer for sale and sell a Licensed Antibody or Product. 

        1.22.2
"Medarex Know How" shall mean the Confidential Information Controlled by Medarex during the term of this Agreement that is
necessary or reasonably useful to use of the Medarex Mice and/or for the exercise of the Medarex Patent Rights, including without limitation, technical data, protocols and methods. For the avoidance
of doubt, the Medarex Know How does not include any Medarex Patent Rights. 

        1.23 "Mice Materials" shall mean any parts or derivatives of the Medarex Mice, including without limitation, hybridomas,
cells or other biological materials derived directly or indirectly from the Medarex Mice, but excluding all Antibodies and Antibody Materials. 

        1.24 "MRC Agreement" shall mean that certain License Agreement among the Medical Research Council, Agricultural and Food
Research Council Institute of Animal Physiology and Genetics Research of Babraham Hall, Marianne Bruggëmann and GenPharm International, Inc., effective October 1, 1993,
and any amendments thereto. 

3

 

        1.25 "Net Sales" shall mean, [*****] 

        1.26 "Phase I Clinical Trial" shall mean a human clinical trial, the principal purpose of which is a preliminary
determination of safety in healthy individuals or patients as required in 21 C.F.R. §312, or a similar clinical study prescribed by the regulatory authorities in a country other than the
United States. A Phase I Clinical Trial shall be deemed to have commenced when the first subject in the study has been enrolled. 

        1.27 "Phase II Clinical Trial" shall mean a human clinical trial for which a primary endpoint is a preliminary
determination of efficacy or dose ranges in patients with the disease being studied as required in 21 C.F.R. §312, or a similar clinical study prescribed by the regulatory authorities in a
country other than the United States. Any well-controlled study intended to provide the substantial

*****REPRESENTS
CONFIDENTIAL PORTION WHICH HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED
PORTIONS. 

4

 

evidence
of efficacy necessary to support the filing of an approvable MAA (such as a combined Phase II Clinical Trial/ Phase III Clinical Trial, or any Phase III Clinical Trial in
lieu of a Phase II Clinical Trial) (a "Pivotal Study") shall automatically be deemed to have reached Phase II status. A Phase II Clinical Trial shall be deemed to have commenced
when the first subject in the study has been enrolled. 

        1.28 "Phase III Clinical Trial" shall mean a human clinical trial, the principal purpose of which is to establish
safety and efficacy in patients with the disease being studied as required in 21 C.F.R. §312, or similar clinical study prescribed by the regulatory authorities in a country other than the
United States. A Phase III Clinical Trial shall also include any other human clinical trial intended as a Pivotal Study, whether or not such study is a traditional Phase III Clinical
Trial. A Phase III Clinical Trial shall be deemed to have commenced when the first patient has been enrolled in a Pivotal Study. 

        1.29 "Product" shall mean any composition or formulation incorporating one or more Licensed Antibodies. 

        1.30 "Research Antigen" shall mean a protein, peptide, carbohydrate, chemical entity, compound or other composition, and/or
any fragment, peptide or epitope thereof, used by Celldex, or by Medarex on behalf of Celldex, to immunize the Medarex Mice in connection with the Research Program and with respect to which Celldex
obtains a Research License pursuant to Section 3.1 and which is thereafter listed in Exhibit A hereto, which Exhibit may be amended from time to time by the mutual agreement of the
parties; provided, however, that the antigen, [*****] shall in no event be a Research Antigen. 

        1.31 "Research License" shall mean the nonexclusive research license with regard to a particular Research Antigen granted by
Medarex to Celldex pursuant to Section 3.1. 

        1.32 "Research License Period" shall mean, on a Research Antigen-by-Research Antigen basis, the
period commencing on the date that Medarex notifies Celldex of the availability of an antigen pursuant to Section 3.2 (the "Notification Date"), and ending on the earlier of (i) twelve
(12) months after the Notification Date, or if extended pursuant to Section 3.4.2, the expiration of any such extension(s), or (ii) when Celldex has taken an Exclusive Commercial
License with respect to the particular Research Antigen pursuant to Section 4.3, or (iii) the termination of the Agreement. 

        1.33 "Research Program" shall mean (i) the immunization of Mice conducted by Celldex or, as applicable, by Medarex on
behalf of Celldex pursuant to Section 2.2, during the Research License Period, and (ii) the evaluation of Antibodies conducted by Celldex with respect to specific Research Antigens
during the applicable Research License Periods, each in connection with Celldex's assessment of the usefulness of the Medarex Mice to produce Antibodies and the evaluation of the Antibodies themselves
as potential Licensed Antibodies, for the purpose of determining whether Celldex wishes to obtain Exclusive Commercial Licenses to such Antibodies. 

        1.34 "Sublicensee" shall mean a third party to whom Celldex has granted a license or sublicense, as the case may be, pursuant
to Section 4.3.2, to develop, make, have made, import, use, sell, offer for sale or otherwise exploit Products. 

        1.35 "Territory" shall mean all countries of the world. 

2.     RESEARCH PROGRAM  

        2.1    Research Program.    Medarex shall provide, as reasonably requested by Celldex and pursuant to the terms of
this Agreement, Medarex Mice to Celldex to allow Celldex to immunize Medarex Mice against Research Antigens during the applicable Research License Period(s), for the purpose of determining whether
Celldex wishes to obtain an Exclusive Commercial License with regard to one or more specific Antibodies pursuant to Section 4.3. Celldex agrees that during any applicable Research

*****REPRESENTS
CONFIDENTIAL PORTION WHICH HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED
PORTIONS. 

5

 

License
Period(s), the Medarex Mice will be used solely for the purpose of conducting research under the Research Program and for no other purpose. Ownership of Medarex Mice and Mice Materials shall
be as set forth in Article 11. 

        2.2    Immunization.    For purposes of the Research Program, Celldex has the option, as to each Research Antigen,
either to perform immunizations, derive hybridomas and characterize Antibodies with respect to such Research Antigen, or to request that Medarex perform the immunizations, derive hybridomas and
perform characterizations of Antibodies with respect to such Research Antigen. In the event Celldex requests that Medarex perform the immunization for a given Research Antigen, Celldex shall supply
all Research Antigen needed by Medarex for such purpose and shall pay Medarex the amounts set forth in Section 5.1. Medarex's obligation to perform such immunizations is conditioned upon the
receipt by Medarex from Celldex of Research Antigen of sufficient quantity and quality for such purpose. Medarex shall not use Research Antigen provided by Celldex for any purpose other than
immunization of Medarex Mice for the benefit of Celldex. 

        2.3    Reasonable Efforts.    In the event that Celldex requests Medarex to perform immunizations pursuant to
Section 2.2, Medarex shall use reasonable efforts to conduct requested immunizations and characterizations of Antibodies and agrees to use reasonable efforts to commit the personnel, facilities
and other resources reasonably necessary to perform the immunizations; provided, however, Medarex does not warrant that the immunizations shall result in the identification of any Antibody suitable
for development as a Product. 

        2.4    Limited Use.    

        2.4.1
Celldex shall only grant access to the Medarex Mice to those of its employees who require such access for the performance of this Agreement. Celldex shall not breed the Medarex
Mice, use them for any purpose other than the conduct of the Research Program, or transfer them to any other person or entity or to any place other than Celldex facilities without the prior written
approval of Medarex. Celldex shall not make any effort, directly or indirectly, to clone or otherwise reproduce the Mice by any means, sexual or asexual. 

        2.4.2
(a) In the event that Celldex uses the Medarex Mice for any purpose not permitted under this Agreement, in addition to any other remedies Medarex may have, Medarex may cause
Celldex to (i) assign to Medarex all right, title, and interest to all intellectual property arising from such use, (ii) in a reasonably timely manner execute those documents, as
requested by Medarex, necessary to document and/or perfect the assignment of such intellectual property, and (iii) transfer ownership and possession to Medarex of any and all Antibodies and
Antibody Materials produced, generated or derived by Celldex in the course of such non-permitted use. 

        (b)   In
the event that Medarex uses Research Antigen provided by Celldex for any purpose not permitted under this Agreement, in addition to any other remedies Celldex may
have, Celldex may cause Medarex to (i) assign to Celldex all right, title, and interest to all intellectual property arising from such use, (ii) in a reasonably timely manner execute
those documents, as requested by Celldex, necessary to document and/or perfect the assignment of such intellectual property, and (iii) transfer ownership and possession to Celldex of any and
all Antibodies and Antibody Materials produced, generated or derived by Medarex in the course of such non-permitted use. 

        2.5    Care in Use of Medarex Mice.    It is understood and agreed that the Medarex Mice are experimental in nature
and may have unknown characteristics, and Celldex therefore agrees to use prudence and reasonable care in the use, handling, storage, transportation, disposition and containment of the Medarex Mice,
and to maintain the Medarex Mice under suitable containment conditions in compliance with all applicable national, state and local laws, regulations, rules and ordinances. 

        2.6    Records.    Celldex shall prepare and maintain complete and accurate written records of all uses made of the
Medarex Mice and the Mice Materials, and copies of such records will be furnished

6

 

to
Medarex, upon Medarex's written request; provided, however, that Medarex shall maintain such records and the information contained therein in strict confidence in accordance with Article 9
hereof, and shall not use such records or information except to the extent permitted by this Agreement. In the event that Medarex performs immunizations of the Medarex Mice on behalf of Celldex
pursuant to Section 2.2, Medarex shall prepare and maintain complete and accurate written records with respect to such immunizations and copies of such records will be furnished to Celldex,
upon Celldex's written request; provided, however, that Celldex shall maintain such records and the information contained therein in strict confidence in accordance with Article 9 hereof, and
shall not use such records or information except to the extent permitted by this Agreement 

        2.7    Termination of Research Program.    

        2.7.1    Termination by Celldex.    Should Celldex elect to terminate the Research Program for
all Research Antigens without obtaining an Exclusive Commercial License pursuant to Section 4.3, this Agreement shall immediately terminate, in accordance with the terms of Section 13.4,
upon thirty (30) days from the date of Medarex's receipt of written notice from Celldex of such election. 

        2.7.2    Expiration of the Research Program.    In the event that Celldex has not obtained at
least one (1) Research License by the second anniversary of the Effective Date, or thereafter does not have a Research License or Exclusive Commercial License in effect for any six
(6) month period, the Research Program shall expire, and, unless the parties mutually agree otherwise, this Agreement shall automatically terminate as of such date in accordance with the terms
of Section 13.4. In the event that Celldex has obtained at least one (1) Research License by the second anniversary of the Effective Date but has not exercised its option to take an
Exclusive Commercial License by the end of the last Research License Period, this Agreement shall automatically terminate, in accordance with the terms of Section 13.4, as of the end of the
last Research License Period. 

3.     RESEARCH LICENSES  

        3.1    Research Licenses for Each Research Antigen.    At any time commencing upon the
Effective Date and ending on the fifth anniversary of the Effective Date, on a Research Antigen-by-Research Antigen basis, commencing on the date that Medarex has notified
Celldex that a particular Antigen is available for licensing to Celldex pursuant to Section 3.2 below, Medarex shall grant, and does hereby grant, to Celldex a non-exclusive,
non-sublicenseable, non-transferable license under the Medarex Technology and Medarex's rights in the Medarex Mice, during the Research License Period applicable to such
Research Antigen, to immunize the Medarex Mice to raise Antibodies against such Antigen, which Antigen shall be deemed a Research Antigen subsequent to such grant, and to further evaluate whether
Celldex wishes to acquire an Exclusive Commercial License(s) with respect to any such Antibody(ies). The parties shall thereupon amend Exhibit A to add such Research Antigen thereto. Upon
expiration of the Research
License Period for a given Research Antigen, the applicable Research License shall terminate. Celldex shall be entitled to obtain five (5) Research Licenses during the term of Agreement.
Medarex hereby grants to Celldex a non-exclusive, non-sublicenseable, non-transferable license under the Medarex Technology and Medarex's rights in the Medarex
Mice, to immunize the Medarex Mice to raise Antibodies against the [*****] during the Research License Period applicable to such Research Antigen, which Research Antigen is
included on Exhibit A hereto. For the avoidance of doubt, the Research License granted hereunder with respect to the [*****] is deemed to be one of the five
(5) such Research Licenses available to Celldex under this Agreement. 

        3.2    Antigen Availability for Research Use.    For each Antigen for which Celldex desires to
obtain a Research License pursuant to Section 3.1, Celldex shall provide Medarex with a written description of such Antigen. Each such Antigen shall be a specific molecular target or
biochemical entity, such as defined proteins or polypeptides (including glyco- or lipo-proteins or carbohydrates) and the parties

*****REPRESENTS
CONFIDENTIAL PORTION WHICH HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED
PORTIONS. 

7

 

shall
agree on a written description of such Antigen, which description shall include, where possible, a GenBank accession number. Within thirty (30) business days following receipt of notice
from Celldex regarding its desire to obtain a Research License with regard to a particular Antigen hereunder, Medarex will notify Celldex whether the rights requested by Celldex are available for
licensing to Celldex. It is understood and agreed that an Antigen may not be available for Celldex for a Research License if: (i) Medarex is actively engaged in discussions with a third party
with regard to exclusive rights with respect to such Antigen and antibodies thereto, or (ii) Medarex has previously granted a third party rights with respect to such Antigen and/or antibodies
relating thereto that would preclude Medarex from granting the rights contained herein to Celldex, or (iii) Medarex has initiated an active program of research, development or commercialization
with respect to such Antigen or antibodies thereto or has an intent to initiate an active program with regard to such Antigen or antibodies thereto as shown by written records that predate Celldex's
written request. If Medarex notifies Celldex that a particular Antigen requested by Celldex pursuant to this Section 3.2 is (i) available for use in the Research Program, such Antigen
shall be a Research Antigen as set forth in Section 3.1, shall thereupon be added to Exhibit A and shall count against the total of five (5) such Research Licenses available to
Celldex pursuant to Section 3.1; and (ii) not available for use in the Research Program, such Antigen shall not be a Research Antigen and shall not be counted against the total of five
(5) such Research Licenses available to Celldex pursuant to Section 3.1. 

        3.3    Research License Fee.    The parties acknowledge and agree that Celldex shall not owe
any payment for the initial twelve (12) months of a Research License Period with respect to each Research Antigen. For each extension of such Research License Period hereunder, within thirty
(30) days of providing written notice to Medarex of Celldex's desire to extend the Research License Period with respect to a Research Antigen, Celldex shall pay the amount set forth in
Section 5.2 

        3.4    Research License Period.    

        3.4.1    Initial Period.    The initial Research License Period for a particular Research
Antigen shall commence on the date that Medarex notifies Celldex that a particular Research Antigen is available for licensing by Celldex pursuant to Section 3.2 and shall expire twelve
(12) months later. 

        3.4.2    Extension of Research License Period.    On a Research
Antigen-by-Research Antigen basis, Celldex will have the option to extend the term of the Research License Period and the corresponding Research License, for up to two
(2) additional twelve (12) month periods for a total Research License Period of thirty-six (36) months, by providing Medarex written notice at least sixty
(60) days before the end of the applicable Research License Period and paying to Medarex the Research License Period extension fee as described in Sections 3.3 and 5.2. Upon receipt of
the other party's written permission, such permission not to be unreasonably withheld, a party shall be entitled to make a press release announcing each such extension of the Research License Period
following receipt of Celldex's notice of its wish to extend the Research License Period. 

        3.5    Destruction of Medarex Mice, Mice Materials, Antibodies and Antibody Materials; Covenant.    If Celldex does
not enter into an Exclusive Commercial License for an Antibody against a given Research Antigen under Section 4.3 by the end of the applicable Research License Period: 

        3.5.1
Within fifteen (15) days of the end of the applicable Research License Period, Celldex shall destroy all Medarex Mice immunized with such Research Antigen and all Mice
Materials derived from such Medarex Mice, and all Antibodies and Antibody Materials obtained through use of such Medarex Mice with respect to such Research Antigen, and promptly after such destruction
an officer of Celldex shall provide Medarex with written certification thereof; and 

        3.5.2
In the event Celldex has filed patent applications disclosing or claiming inventions comprising Antibodies or Antibody Materials or making or using thereof, obtained through the
use of Medarex Mice and/or Mice Materials, with respect to such Research Antigen, Celldex covenants 

8

 

that
it shall, at its election, either abandon, or assign to Medarex, such patents or patent applications. Notwithstanding the foregoing, if Celldex intends to abandon such patents or patent
applications and such patents or patent applications, or any scientific articles relating thereto, have been or will be, published, then in lieu of such abandonment, Celldex shall assign to Medarex
such patents or patent applications. In the event Celldex is to assign such patents or patent applications to Medarex, Celldex shall execute those documents, as requested by Medarex, necessary to
document and/or perfect the assignment of such patents and/or patent applications, and upon the completion of such assignment, Celldex shall provide to Medarex a detailed invoice showing all costs
incurred by Celldex in prosecuting and maintaining such patent applications and patents prior to the date of such assignment. Within sixty (60) days of receiving such detailed invoice, Medarex
shall reimburse Celldex for such costs. Notwithstanding the foregoing, Celldex shall retain an irrevocable, royalty-free, worldwide, nonexclusive license, without a right to sublicense,
assign or otherwise transfer such license, from Medarex under such patents and patent applications, and any foreign equivalents, divisionals, continuations, CIPs, reissues and reexaminations thereof,
and patents issuing therefrom, to discover, develop and commercialize any and all antibodies against such Research Antigen, which antibodies are identified using technology other than Medarex
Technology and/or Medarex Mice, Mice Materials, Antibodies or Antibody Materials. It is understood and agreed that Celldex shall not be obligated to assign to Medarex patent rights in any inventions
that consist solely of the compositions of such Research Antigen itself. 

        3.6    Termination of Specific Research License.    Celldex may terminate the Research License
for any Research Antigen at any time by giving written notice to Medarex. Upon expiration of the Research License Period for a Research Antigen, the corresponding Research License granted hereunder
shall expire. Following the termination or expiration of the applicable Research License, Celldex shall have no further license rights under the Medarex Technology with respect to the Research Antigen
and any Antibodies against such Research Antigen, and the terms of Section 3.5 shall apply. 

4.     OPTIONS; COMMERCIAL LICENSES  

        4.1    Option for Exclusive Commercial Licenses.    

        4.1.1
Subject to the availability of a particular Antibody(ies) to a Research Antigen for exclusive licensing by Celldex pursuant to Section 4.2, during the term of the applicable
Research License Period, Celldex shall have a non-exclusive option to obtain an Exclusive Commercial License as
set forth in Section 4.3. The option granted under this Section 4.1.1 shall terminate at the end of the Research License Period for the applicable Research Antigen. 

        4.1.2
In no event will Celldex initiate any human clinical trials with respect to, nor file an IND on, a Product containing an Antibody without first obtaining an Exclusive Commercial
License with respect to such Antibody pursuant to the procedures set forth in Sections 4.1, 4.2 and 4.3. 

        4.1.3
Celldex covenants that it shall not commercialize any Antibody and/or Antibody Materials obtained through the Research Program with respect to a Research Antigen without obtaining
an Exclusive Commercial License with respect to such Antibody or Antibody Materials under Section 4.3. 

        4.2    Antibody Availability for Commercial Use.    

        4.2.1    Antibody, Backup Antibody and Antigen Identification.    At any time during the
Research License Period with respect to a particular Research Antigen, Celldex may provide written notice to Medarex that it wishes to acquire an Exclusive Commercial License to an Antibody raised
against such Research Antigen and to Products containing such Antibody. In such written notice, Celldex shall provide the amino acid sequence for the Antibody and the genetic sequence for the Research
Antigen that it was raised against. In such written notice, Celldex shall 

9

 

have
the right to identify up to two (2) additional Antibodies raised against such Antigen to be named as "Backup Antibodies" with respect to the individual Antibody, if any, to which Celldex
obtains an Exclusive Commercial License hereunder. In such notice, Celldex shall provide the amino acid sequence for such Backup Antibody(ies). 

        4.2.2    Notice of Availability.    Within thirty (30) business days following receipt
of notice provided pursuant to Section 4.2.1 with respect to an Antibody (or Backup Antibody(ies)), subject to Section 4.2.4, Medarex will notify Celldex whether the rights requested by
Celldex with respect to such Antibody(ies) (or Backup Antibody(ies)) are available for licensing to Celldex. 

        4.2.3    License Fee.    If Medarex notifies Celldex, pursuant to Section 4.2.2, that
an Exclusive Commercial License is available with respect to a given Antibody (or Backup Antibody(ies)) as requested by Celldex under Section 4.2.1, within fifteen (15) business days of
Medarex's notice of such availability, Celldex shall pay to Medarex the Exclusive Commercial License fee due pursuant to Section 5.3 with respect to such Exclusive Commercial License. 

        4.2.4    Unavailability.    It is understood and agreed that Celldex may be unable to receive
an Exclusive Commercial License to an Antibody (or Backup Antibody(ies)) if, prior to Celldex's request for an Exclusive Commercial License pursuant to Section 4.2.1, Medarex has granted rights
to a third party to an antibody with the same amino acid sequence as the Antibody (or the Backup Antibody(ies)). It is further understood and agreed that any Exclusive Commercial License granted to
Celldex shall be subject to any rights then in effect granted by Medarex to one or more third parties with respect to the applicable Research Antigen and any antibodies related thereto. 

        4.3    Exclusive Commercial License.    

        4.3.1    Grant.    If Celldex elects to exercise its option to acquire an Exclusive Commercial
License with respect to a particular Antibody pursuant to Section 4.1, and Medarex informs Celldex that such Antibody is available for licensing pursuant to Section 4.2, and Celldex pays
the Exclusive Commercial License fee pursuant to Section 5.3, then subject to the terms and conditions of this Agreement, and commencing as of the date Medarex has both (i) so informed
Celldex and (ii) received from Celldex such fee, Medarex is automatically deemed to grant, and in such event hereby grants, to Celldex, on an Antibody-by-Antibody basis,
a worldwide, exclusive (even as to Medarex), non-transferable, royalty-bearing license under the Medarex Technology and Medarex's rights in the Medarex Mice, with the right to sublicense
as permitted in Section 4.3.2, to use the Medarex Mice to develop, make, have made, import, have imported, use, offer for sale and sell such Antibody, which license is non-exclusive
with respect to a Research Antigen and exclusive with respect to the specific Antibody (which Antibody shall be deemed a Licensed Antibody for all purposes hereunder) (an
"Exclusive Commercial License"). 

        Medarex
covenants that, upon informing Celldex that an Antibody (or Backup Antibody(ies)) is available for exclusive commercial licensing pursuant to Section 4.2.2, Medarex shall
not license to any third party any rights to make, have made, import, have imported, use, offer for sale or sell Products containing such Antibody (or Backup Antibody(ies)) against such Research
Antigen raised using the Medarex Mice; provided however, if Celldex fails to pay the commercial license fee due pursuant to Section 5.3 with respect to such Antibody, such covenant shall
thereafter immediately terminate. The parties acknowledge and agree that any Exclusive Commercial Licenses granted hereunder shall be subject to the terms and conditions of the Cross License
Agreement. 

10

  

        In
the event that the development of a Licensed Antibody is terminated by Celldex for any reason, but Celldex does not wish to terminate the Exclusive Commercial License with respect to
such Licensed Antibody pursuant to Section 4.3.3, then Celldex may, at its sole discretion and without payment of any additional license fee, designate as the Licensed Antibody one
(1) of the two (2) Backup Antibodies previously determined to be available pursuant to Section 4.2. Thereafter, the remaining Backup Antibody shall continue to be a Backup
Antibody. Further, with respect to the development of the newly designated Licensed Antibody (that had previously been a Backup Antibody), Celldex [*****] to Medarex with
respect to such newly designated Licensed Antibody that Celldex [*****] pursuant to Section 5.4 with respect to the replaced Licensed Antibody. 

        4.3.2    Sublicenses.    

        (a)   Subject
to Section 4.3.2(b), Celldex may grant sublicenses under the Medarex Technology to the extent necessary to develop, make, have made, import, use, offer
for sale and sell Products; provided, however, within ten (10) days of the date any such sublicense is executed, Celldex shall provide Medarex with at least the following information with
respect to each such Sublicensee: (i) the identity of the Sublicensee; (ii) a description of the Product and the rights being granted to the Sublicensee; and (iii) the territory
in which the Product will be sold. Each sublicense granted by Celldex shall be consistent with all the terms and conditions of this Agreement, and subordinate thereto, and Celldex shall remain
responsible to Medarex for the compliance of each such Sublicensee with the financial and other obligations due under this Agreement. 

        (b)   The
parties recognize that according to the provisions of the Cross License Agreement relating to the Medarex Technology, Medarex may not grant Celldex the right to
directly grant sublicenses under certain Medarex Technology that is covered by the Cross License Agreement to sell, lease, and offer for sale or lease Products. So long as such provisions are in
effect, if Celldex grants or desires to grant a sublicense to a particular Sublicensee under the Medarex Technology pursuant to Section 4.3.2(a) to sell, lease, and offer for sale or lease a
particular Product, then Medarex shall enter into an agreement with such Sublicensee which grants a direct license to such Sublicensee under such of the Medarex Technology that is covered by the Cross
License Agreement to sell, lease, and offer for sale or lease such Product on the same terms and conditions as the sublicense granted by or desired to be granted by Celldex to such Sublicensee
("Direct Sublicense Agreement"); provided, each such Direct Sublicense Agreement granted by Medarex shall: (i) be consistent with all the terms and conditions of this Agreement;
(ii) provide that all performance obligations of such Sublicensee, including without limitation, with respect to development and commercialization of Products and payment of amounts owing under
the sublicense granted to such Sublicensee by Celldex, shall be owed to Celldex and not to Medarex; (iii) not conflict with any of the rights granted under this Agreement; (iv) provide
that Celldex is a third party beneficiary under such Direct Sublicense Agreement, with the right, at Celldex's expense, to enforce the terms and conditions of such Direct Sublicense Agreement against
such
Sublicensee, including the right to collect all monies due to Celldex from such Sublicensee under such Direct Sublicense Agreement; and (v) be subject to Celldex's approval, such approval not
to be unreasonably withheld. Further, it is understood and agreed by Celldex that, in such sublicense granted by Celldex to such Sublicensee, Celldex shall make the rights related to such certain
Medarex Technology granted by Medarex to Celldex under Section 4.3 subordinate to such direct license granted by Medarex to such Sublicensee, such that the rights granted by Medarex to Celldex
under Section 4.3.1 shall not be in conflict with the rights granted to such Sublicensee by Medarex under this Section 4.3.2(b). 

*****REPRESENTS
CONFIDENTIAL PORTION WHICH HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED
PORTIONS. 

11

 

        4.3.3    Termination of Exclusive Commercial License.    

        (a)   Termination.    Celldex may terminate the Exclusive Commercial License with respect to any particular Licensed
Antibody at any time with immediate effect by giving written notice to Medarex. Following the termination of the applicable Exclusive Commercial License, Celldex shall have no further license rights
under the Medarex Technology with respect to the Antibody that was the subject of such Exclusive Commercial License. Within thirty (30) days after termination of the Exclusive Commercial
License with respect to a specific Licensed Antibody, Celldex shall destroy any and all Medarex Mice immunized with the given Research Antigen, Mice Materials derived from such Medarex Mice, and any
and all Antibodies, Antibody Materials and Products obtained through the use of such Medarex Mice, with respect to such Research Antigen. 

        (b)   Covenants.    Upon termination of an Exclusive Commercial License with respect to a particular Licensed
Antibody to a given Research Antigen, in the event that Celldex has filed any patent applications disclosing or claiming Antibodies and Antibody Materials, or the making or using thereof, obtained
through the use of Medarex Mice and/or Mice Materials with respect to such Research Antigen, Celldex covenants that it shall, at its election, either abandon, or assign to Medarex, such patents or
patent applications. In addition, Celldex covenants it shall not commercialize any Antibody and/or Antibody Materials obtained through the use of such Medarex Mice and/or Mice Materials with respect
to such Research Antigen. Notwithstanding the foregoing, if Celldex intends to abandon any such patents or patent applications and such patents or patent applications, or any scientific articles
relating thereto, have been or will be published, then in lieu of such abandonment, Celldex shall assign to Medarex such patents or patent applications. In the event Celldex is to assign such patents
or patent
applications to Medarex, Celldex shall execute those documents, as requested by Medarex, necessary to document and/or perfect the assignment of such patents and/or patent applications, and upon the
completion of such assignment, Celldex shall provide to Medarex a detailed invoice showing all costs incurred by Celldex in prosecuting and maintaining such patent applications and patents prior to
the date of such assignment. Within sixty (60) days of receiving such detailed invoice, Medarex shall reimburse Celldex for such costs. It is understood and agreed that Celldex shall not be
obligated to assign to Medarex patent rights in any inventions that consist solely of the compositions of such Research Antigen itself. Notwithstanding the foregoing, Celldex shall retain an
irrevocable, royalty-free, worldwide, nonexclusive license, without a right to sublicense, assign or otherwise transfer such license, from Medarex under such patents and patent
applications, and any foreign equivalents, divisionals, continuations, CIPs, reissues and reexaminations thereof, and patents issuing therefrom, to discover, develop and commercialize any and all
antibodies against such Research Antigen, which antibodies are identified using technology other than Medarex Technology and/or Medarex Mice, Mice Materials, Antibodies or Antibody Materials. 

        4.3.4    Existing Grants.    Celldex acknowledges and agrees that: (a) pursuant to the
Cross License Agreement, Medarex has granted a non-exclusive license under certain Medarex Patent Rights to develop and commercialize antibody products with respect to antigens, including
Research Antigens, in the Territory; and (b) pursuant to certain existing agreements with third parties, Medarex has granted exclusive rights under the Medarex Technology to develop antibody
product(s) with respect to antigens other than Research Antigens, which antibody product(s) could comprise the same antibody(ies) as a Licensed Antibody(ies). 

        4.4    Use of Medarex Mice.    Any use of the Medarex Mice by Celldex or its Affiliates
pursuant to a license granted pursuant to Section 4.3 shall be subject to the provisions of Sections 2.4, 2.5, 2.6, 11.1 and 11.2. 

12

 

5.    CONSIDERATION    

        5.1    Immunization Fees.    If Celldex elects to have Medarex perform immunizations and
characterizations of the Antibodies for the Research Program pursuant to Section 2.2, Celldex shall pay to Medarex a non-refundable, non-creditable immunization fee
[*****] for the performance of such activities per calendar quarter per Research Antigen. Any payments hereunder shall be due concurrently with Celldex's notice to Medarex that
Celldex wishes Medarex to perform such immunization. 

        5.2    Research License Fee; Research License Period Extension Fee.    If Celldex elects to
obtain a Research License from Medarex pursuant to Section 3.1 with respect to a particular Antigen, there shall be no license fee for the initial Research License Period for such Antigen. If
Celldex elects to extend the
Research License Period for a particular Research Antigen pursuant to Section 3.4.2, then concurrently with its notice that Celldex wishes to extend the Research License Period for such
Research Antigen, Celldex shall pay to Medarex a non-refundable, non-creditable license fee of [*****] for each twelve (12) month extension. 

        5.3    Exclusive Commercial License Fees.    If Medarex notifies Celldex pursuant to
Section 4.2.2 that an Exclusive Commercial License is available with respect to an Antibody (or Backup Antibody(ies)), and Celldex wishes to exercise its option for an Exclusive Commercial
License pursuant to Section 4.1.1 with respect to such Antibody (or Backup Antibody(ies)), then Celldex shall pay to Medarex a non-refundable, non-creditable license fee
of [*****] for such Exclusive Commercial License within five (5) business days of such notification or exercise. Each time Celldex obtains a new Exclusive Commercial
License pursuant to Section 4.3, a new non-refundable, non-creditable license fee of [*****] shall be due pursuant to this Section. For avoidance
of doubt, [*****] shall be due under this Section 5.3 for, collectively, any one Antibody and the two Backup Antibodies relating thereto identified pursuant to
Section 4.2.1, and [*****] will be payable hereunder in the event Celldex exercises its rights to substitute a Backup Antibody for an Antibody, or a second Backup
Antibody for the first Backup Antibody as permitted under Section 4.3.1. 

        5.4    Milestone Payments.    

        5.4.1    Milestones.    Within thirty (30) days following the occurrence of the
relevant events specified below, on a Product-by-Product basis, with respect to each Product subject to an Exclusive Commercial License, Celldex shall pay to Medarex the
following amounts: 

	Milestone
 
	 	1st Product
	 	2nd Product
	 	3rd and Subsequent

Products

	1.	 	Upon filing of IND or equivalent	 	[*****]	 	 	 	 
	2.	 	Upon enrollment of the first patient in Phase II Clinical Trial	 	 	 	 	 	 
	3.	 	Upon enrollment of the first patient in Phase III Clinical Trial	 	 	 	 	 	 
	4.	 	Upon filing of the first BLA, or equivalent	 	 	 	 	 	 
	5.	 	Upon approval of the first BLA, or equivalent	 	 	 	 	 	 
	6.	 	Upon approval of the first BLA, or equivalent, in a second jurisdiction	 	 	 	 	 	 
	 	 	 	 	
	 	
	 	

	TOTALS	 	 	 	 	 	 

        In
the event a Product achieves Milestone #3, but has not, based on the definitions set forth in Article 1, achieved Milestone #2, the payment associated with
Milestone #2 for such Product 

*****REPRESENTS
CONFIDENTIAL PORTION WHICH HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED
PORTIONS. 

13

 

shall
nevertheless be due at the same time the payment is due for such Product with respect to Milestone #3. 

        In
the event a Product achieves Milestone #4, but has not, based on the definitions set forth in Article 1, achieved Milestone #2 and/or Milestone #3, the
payment(s) associated with Milestone #2 and/or Milestone #3 for such Product, as applicable, shall nevertheless be due at the same time the payment is due for such Product with respect
to Milestone #4. 

        5.4.2    Backup Products.    The payments set forth in Section 5.4.1 above shall be
made with respect to each Product; provided, however, if Celldex ceases all clinical development of a particular Product prior to receiving Approval for such Product but after having made one or more
milestone payments with respect to such Product under Section 5.4.1 (a "Discontinued Product"), there shall be [*****] due upon the accomplishment of that same
milestone, or those same milestones, with respect to the next Product with specificity for the same Research Antigen as the Discontinued Product (the "Backup Product"). When milestones are achieved
with respect to any
Backup Product that were not previously paid with respect to a corresponding Discontinued Product, such milestone payments shall be [*****] 

        5.4.3    Subsequent Products.    References under Section 5.4.1 to milestones with
regard to the "first Product," "second Product," and "third and subsequent Products" indicate the order in which the milestones are reached by the Products being developed by Celldex and do not
necessarily indicate that the initial Product developed by Celldex will meet all of the "first Product" milestones. The milestones payable under Section 5.4.1 shall be paid with respect to the
first Product that reaches the applicable milestone, whether or not such Product was the first Product to meet the previous milestones, and the milestones payable for the second Product under
Section 5.4.1 shall be paid with respect to the second Product that reaches the applicable milestone, whether or not such Product was the second Product to meet the previous milestones. For
example, if a second Product receives approval of a BLA or equivalent before the first Product reaches that milestone, then a $2 million milestone would be payable to Medarex with respect to
such approval of the second Product even if the first Product reached the milestone for the Phase III Clinical Trial first. 

        5.4.4    Multiple Products to the Same Research Antigen.    If, following Approval of a first
Product against a given Research Antigen, a second or subsequent Product against such Research Antigen is developed and/or commercialized, further full sets of milestone payments as set forth in
Section 5.4.1 will become due (except as provided in Section 5.4.2), and will be payable at the time(s) of achievement of such milestones by each such Product. However, it is understood
and agreed that such milestones will not be due for a particular Product for Approval(s) for additional indications with regard to such Product for which the milestones in Section 5.4.1 were
previously paid. 

        5.4.5    Reports.    Except as set forth in Section 8.4, within fifteen
(15) days of the occurrence of any event which would trigger a milestone payment according to this Section 5.4, Celldex shall provide notice to Medarex of such occurrence. 

*****REPRESENTS
CONFIDENTIAL PORTION WHICH HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED
PORTIONS. 

14

 

        5.5    Royalties.    

        5.5.1    Royalty on Net Sales.    In partial consideration for any Exclusive Commercial
License granted by Medarex, Celldex shall pay to Medarex a royalty on annual (based on a calendar year) aggregate worldwide Net Sales of Products on a Product-by-Product basis
as follows: 

	 
	 	Annual Net Sales per Product
	 	Royalty Rate

	Portion of Annual Net Sales	 	[*****]	 	 
	Portion of Annual Net Sales	 	 	 	 
	Portion of Annual Net Sales	 	 	 	 

        5.5.2    Royalty Rates and Term.    With respect to the royalty rates for Products, the
parties acknowledge and agree that the patent rights and know-how licensed pursuant to this Agreement justify royalty rates of differing amounts with respect to sales of such Products,
which rates could be applied separately to Products involving the exercise of such patent rights and/or the incorporation of such know-how, and that if such royalties were calculated
separately, royalties relating to patent rights and royalties relating to know-how would last for different terms. The parties have determined in light of such considerations and for
reasons of convenience that blended royalty rates for the patent rights and the know-how licensed hereunder will apply during a single royalty term (which blended royalty rates would be
advantageous to both parties). Consequently, the parties have agreed to adopt the royalty rates set forth in Section 5.5.1 hereof. The royalties due pursuant to Section 5.5.1 shall be
payable on a country-by-country and Product-by-Product basis until the date which is the later of: (i) the
expiration of the last to expire of the patents within the Medarex Patent Rights covering the Product in each country of manufacture or sale of such Product (such expiration to occur only after
expiration of extensions of any nature to such patents which may be obtained under applicable statutes or regulations in the respective countries, such as the Drug Price Competition and Patent Term
Restoration Act of 1984 in the U.S.A. and similar patent extension laws in other countries), and (ii) the tenth anniversary of the First Commercial Sale of such Product in such country. Upon
expiration of the royalty term with respect to a Product in a country (other than as a result of the early termination of this Agreement), and payment to Medarex of all amounts due under this
Agreement with respect to such Product in such country, the applicable grants under Article 4 with respect to such Product in such country shall become non-exclusive and fully
paid-up. 

        5.5.3    Third Party Royalties.    

        (a)   Celldex
shall be responsible for the payment of any royalties, license fees and milestone and other payments due to third parties under license agreements for
intellectual property licensed to Celldex by a third party that is required to make, have made, use, sell, offer for sale and import Products using the licensed Medarex Technology, including without
limitation, the payment to the Medical Research Council ("MRC") of any royalties due the MRC pursuant to the MRC Agreement; provided, however, that Celldex's responsibility with respect to the
royalties due to MRC shall be limited to such royalty rate in effect as of the Effective Date or any reduction in such royalty rate thereafter. 

        (b)   In
the event Medarex acquires rights to additional intellectual property relating to the Medarex Mice controlled by a third party pursuant to an agreement that requires
no payments to such third party and that permits Medarex to include such intellectual property in this Agreement, such intellectual property shall be included in this Agreement at no additional charge
to Celldex. In the event Medarex acquires rights to additional intellectual property relating to the Medarex Mice controlled by a third party pursuant to an agreement that requires payments to such
third party and that permits Medarex to include such intellectual 

*****REPRESENTS
CONFIDENTIAL PORTION WHICH HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED
PORTIONS. 

15

 

property
in this Agreement, Celldex and Medarex shall negotiate in good faith the terms under which such intellectual property shall be included in this Agreement, including without limitation,
additional payments to be made by Celldex for the right to use such intellectual property. In the event Celldex and Medarex are unable to agree on such terms, then the subject matter of such
intellectual property shall not be included within the definition of Medarex Technology, and Celldex shall have no license or rights with respect to such intellectual property. 

6.    PAYMENTS    

        6.1    Timing of Royalty Payments.    All royalties due to Medarex shall be paid within thirty
(30) days after the last day of the Calendar Quarter in which they accrue. 

        6.2    Payment Method.    All cash amounts due Medarex hereunder shall be paid in U.S. dollars
by wire transfer in immediately available funds to an account designated by Medarex. 

        6.3    Currency; Foreign Payments.    If any currency conversion shall be required in
connection with the payment of any royalties hereunder, such conversion shall be made by using the exchange rate for the purchase of U.S. dollars reported by the Chase Manhattan Bank on the last
business day of the Calendar Quarter to which such royalty payments relate. If at any time legal restrictions prevent the prompt remittance of any royalties owed on Net Sales in any jurisdiction,
Celldex may notify Medarex and make such payments by depositing the amount thereof in local currency in a bank account or other depository in such country in the name of Medarex, and Celldex shall
have no further obligations under this Agreement with respect thereto. 

        6.4    Taxes.    All royalty amounts required to be paid to Medarex pursuant to this Agreement
may be paid with deduction for withholding for or on account of any taxes (other than taxes imposed on or measured by net income) or similar governmental charge imposed by a jurisdiction other than
the United States ("Withholding Taxes"). At Medarex's request, Celldex shall provide Medarex a certificate evidencing payment of any Withholding Taxes hereunder and shall reasonably assist Medarex to
obtain the benefit of any applicable tax treaty. 

7.    REPORTS AND RECORDS    

        7.1    Royalty Reports.    Celldex shall deliver to Medarex within thirty (30) days
after the last day of each Calendar Quarter in which Products are sold a report setting forth in reasonable detail the calculation of the royalties payable to Medarex for such Calendar Quarter
identifying, by country and Product, the Products sold by Celldex and its Affiliates and Sublicensees, and the calculation of Net Sales and royalties due to Medarex. 

        7.2    Inspection of Books and Records.    Celldex and its Affiliates and Sublicensees shall
maintain accurate books and records, which enable the calculation of milestone payments and royalties payable hereunder to be verified. Celldex and its Affiliates and Sublicensees shall retain the
books and records for each quarterly period for three (3) years after the submission of the corresponding report under Section 7.1 hereof. Upon thirty (30) days prior notice to
Celldex, independent accountants selected by Medarex and reasonably acceptable to Celldex, may have access to the books and records of Celldex and its Affiliates and Sublicensees during normal
business hours to conduct a review or audit, solely, however, to the extent necessary for the purpose of verifying the accuracy of Celldex's payments and compliance with this Agreement. Celldex shall
promptly pay to Medarex any underpayment with interest from the date such amount(s) were due, at the prime rate reported by the Chase Manhattan Bank, New York, New York, plus two percent (2%). Any
such inspection or audit shall be at Medarex's expense; provided, however, in the event an inspection reveals underpayment of five percent (5%) or more in any audit period, in addition to any
underpayment Celldex also shall pay the costs of the inspection. 

16

 

8.    DILIGENCE    

        8.1    Reasonable Efforts.    Celldex shall use Commercially Reasonable Efforts to
(i) achieve regulatory approvals for the sale of Products throughout the Territory by submitting registration packages requesting approval for commercial sale of the Product as soon as
reasonably practicable and (ii) actively pursue commercial sales of each Product in each country in which all necessary regulatory approvals are obtained. Commencing as of the Effective Date,
Celldex shall use Commercially Reasonable Efforts to develop, clinically test, manufacture and commercialize Products. All costs of development, clinical testing, manufacturing and commercialization
shall be borne by Celldex, its Affiliates or Sublicensees. 

        8.2    Lack of Diligence.    Medarex may terminate the Exclusive Commercial License granted
herein to Celldex with respect to a particular Licensed Antibody, on a Product-by-Product [*****] basis, effective upon written notice to Celldex, if
Celldex: 

        8.2.1    abandons
development and/or commercialization of the applicable Product [*****] and (i) decides not to engage in commercially reasonable
efforts to sublicense such Product or (ii) discontinues reasonable sublicensing efforts for more than six (6) months, or 

        8.2.2    suspends
the development and/or commercialization of the applicable Product [*****] for more than nine (9) consecutive months, except
for suspensions (i) that have been requested by official regulatory and safety bodies, or (ii) that Medarex agrees are
necessary for investigating and clarifying untoward pharmacological, pharmacokinetic, toxicological, or human-clinical observations of the applicable Product. 

        [*****] 

        8.3    Diligence Obligations.    The parties agree that the following diligence obligations
shall apply to Celldex's development and commercialization efforts with regard to a Product incorporating a Licensed Antibody for which it obtains an Exclusive Commercial License: 

        8.3.1    If
upon the [*****] anniversary of the date that Celldex obtains an Exclusive Commercial License with respect to a Product, Celldex has not
filed an IND for such Product in any country, Celldex shall pay Medarex a nonrefundable, noncreditable fee of [*****] per year to maintain such Exclusive Commercial License
with respect to such Product until the earlier of (i) the date that Celldex files an IND for such Product in any country, (ii) the date Celldex terminates the Exclusive Commercial
License with respect to such Product pursuant to Section 4.3.3, or (iii) the [*****] anniversary of the date that Celldex obtains an Exclusive Commercial License
with respect to such Product. 

        8.3.2    If
upon the [*****] anniversary of the date that Celldex obtains an Exclusive Commercial License with respect to a Product, Celldex has not
filed an IND for such Product in any country, all rights granted to Celldex hereunder with respect to such Product (and corresponding Antibodies) shall revert to Medarex and the terms of
Section 4.3.3 shall apply with respect to the applicable Exclusive Commercial License. 

        8.3.3    If
upon the [*****] anniversary of the date that Celldex files an IND, if any, for such Product in any country, Celldex has not initiated a
Phase II Clinical Trial with regard to such Product, Celldex shall pay a nonrefundable, noncreditable fee equal to [*****] with regard to such Product each year until
such time as Celldex initiates a Phase II Clinical Trial with regard to such Product, unless Celldex terminates the Exclusive Commercial License with respect to such Product pursuant to
Section 4.3.3. 

*****REPRESENTS
CONFIDENTIAL PORTION WHICH HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED
PORTIONS. 

17

 

        8.3.4    If
upon the fifth anniversary of the date that Celldex initiates Phase II Clinical Trials for such Product, Celldex has not initiated a Phase III Clinical Trial
with regard to such Product, Celldex shall pay a nonrefundable, noncreditable fee equal to fifty percent (50%) of the milestone payment relating to Phase III Clinical Trials set forth in
Section 5.4.1 with regard to such Product each year until such time as Celldex initiates Phase III Clinical Trials with regard to such Product, unless Celldex terminates the Exclusive
Commercial License with respect to such Product pursuant to Section 4.3.3. 

        8.4    Reports to Medarex.    During the term of this Agreement, Celldex shall keep Medarex
informed of its development and commercialization activities subject to this Agreement, and on January 31 of each year shall provide Medarex with a reasonably detailed written summary of such
events and activities in the preceding year. When the registration package requesting Approval for commercial sale of any Product receives Approval [*****] Celldex will notify
Medarex in writing within ten (10) business days thereof. 

        8.5    Regulatory Filings.    Celldex (or its designee) shall file and hold title to all
regulatory applications, Approvals and supplements thereto relating to Products; provided, in the event that the Exclusive Commercial License rights of Celldex terminate with regard to any Product
and/or country due to Celldex's decision to terminate its license pursuant to Section 4.3.3(a) or pursuant to Sections 8.2, 8.3, 8.6 or 13.3, Medarex (or its designee) shall have access
to and the right to use and reference, without charge, all such regulatory applications, Approvals and supplements with regard to the applicable Product and/or country, and Celldex shall cooperate
with Medarex to enable Medarex (or its designee) to practice the foregoing rights. Medarex shall reimburse Celldex for any reasonable fees actually incurred by Celldex and that are charged by a
governmental authority that are necessary to effect Medarex's right to use and reference all such regulatory applications, Approvals and supplements with regard to the applicable Product and/or
country pursuant to this Section 8.5. 

        8.6    Abandoned Products.    Celldex shall promptly notify Medarex should it elect to abandon
its rights to pursue commercialization of any Product in any country. In such event, the terms of Section 4.3.3 shall apply with respect to such Product in such country and the Exclusive
Commercial License therefor. 

9.    CONFIDENTIALITY    

        9.1    Confidential Information.    Except as expressly provided herein, the parties agree
that for the term of the Agreement and for five (5) years thereafter, the receiving party shall keep completely confidential and shall not publish or otherwise disclose and shall not use for
any purpose except for the purposes
contemplated by this Agreement any Confidential Information of the other party, except to the extent that it can be established by the receiving party by competent proof that such Confidential
Information: 

        9.1.1    was
already known to the receiving party, other than under an obligation of confidentiality, at the time of disclosure; 

        9.1.2    was
generally available to the public or otherwise part of the public domain at the time of its disclosure to the receiving party; 

        9.1.3    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; 

        9.1.4    was
independently developed by the receiving party as demonstrated by documented evidence prepared contemporaneously with such independent development; or 

        9.1.5    was
subsequently lawfully disclosed to the receiving party by a person other than a party hereto. 

*****REPRESENTS
CONFIDENTIAL PORTION WHICH HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED
PORTIONS. 

18

 

        9.2    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 governmental regulations or otherwise submitting information to tax or
other governmental authorities, conducting clinical trials, or making a permitted sublicense or otherwise exercising its rights hereunder, provided that if a party is required to make any such
disclosure of another party's confidential information, other than pursuant to a confidentiality agreement, it shall (i) give reasonable advance notice to the latter party of such disclosure,
(ii) if such advance notice is not possible, provide notice of such disclosure immediately thereafter, (iii) to the extent possible, minimize the extend of such disclosure, and
(iv) save to the extent inappropriate in the case of patent applications, use its best
efforts to secure confidential treatment of such information prior to its disclosure (whether through protective orders or otherwise), it being understood that any information so disclosed shall
otherwise remain subject to the limitations on use and disclosure hereunder. 

        9.3    Public Disclosure.    Except as otherwise required by law, rule or regulation, neither
Party shall issue a press release or make any other public disclosure of this Agreement or the terms hereof without the prior written approval of the other Party of such press release or public
disclosure and the content thereof; provided, however, the Parties agree that disclosures of information for which consent has been previously obtained and of information of a similar nature to that
which has been previously disclosed publicly with respect to this Agreement, each shall not require advance approval; and provided, further, that, with prior notice to Celldex, Medarex may make a
public disclosure with respect to the specific stage of development of each Licensed Product as stated in the contents of the report provided to Medarex by Celldex pursuant to Section 8.4. Each
Party shall submit any press release or public disclosure requiring the other Party's approval to the other Party, and the receiving Party shall have three (3) business days to review and
approve any such press release or public disclosure, which approval shall not be unreasonably withheld. If the receiving Party does not respond in writing within such three (3) business day
period, the press release or public disclosure shall be deemed approved. In addition, if a public disclosure is required by law, rule or regulation, including in a filing with the Securities and
Exchange Commission, other than a filing on Form 10K or Form 10Q, the disclosing Party shall provide copies of the disclosure reasonably in advance of such filing or other disclosure for
the nondisclosing Party's prior review and comment and the Parties shall thereafter mutually agree upon the extent and nature of any such disclosures, such agreement not to be unreasonably withheld. 

        9.4    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; except that such consent shall not be required for disclosure to actual or prospective investors or to a
party's accountants, attorneys and other professional advisors. In addition, the terms of this Agreement may be disclosed pursuant to confidentiality obligations at least as strict as is set forth
herein, to sublicensees and actual or potential acquirors or acquirees. 

10.    REPRESENTATIONS AND WARRANTIES    

        10.1    Medarex.    Medarex represents and warrants that: (i) it is a corporation duly
organized, validly existing and in good standing under the laws of the State of New Jersey; (ii) the execution, delivery and performance of this Agreement have been duly authorized by all
necessary corporate action on the part of Medarex; and (iii) it will not enter into an agreement that is inconsistent with the rights and licenses granted to Celldex in this Agreement. 

        10.2    Celldex.    Celldex represents and warrants that: (i) it is a company duly
organized, validly existing and in good standing under the laws of the State of Delaware; (ii) the execution, delivery and performance of this Agreement have been duly authorized by all
necessary corporate action on the part of Celldex; and (iii) it will not enter into an agreement that is inconsistent with the performance of its obligations hereunder. 

19

   
        10.3    Disclaimer of Warranties.    THE MEDAREX MICE ARE PROVIDED "AS IS", AND EXCEPT
AS
OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, MEDAREX MAKES NO REPRESENTATIONS AND EXTENDS NO WARRANTIES OR CONDITIONS OF ANY KIND, EITHER EXPRESS OR IMPLIED, WITH RESPECT TO THE MEDAREX MICE, MICE
MATERIALS, ANTIBODIES, ANTIBODY MATERIALS, OR MEDAREX TECHNOLOGY, INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, VALIDITY OF THE PATENT RIGHTS LICENSED
HEREUNDER, OR NONINFRINGEMENT OF THE INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES. 

        10.4    Disclaimer.    EXCEPT AS OTHERWISE EXPLICITLY PROVIDED HEREIN, NOTHING IN THIS
AGREEMENT IS OR SHALL BE CONSTRUED AS: 

        10.4.1    A
WARRANTY OR REPRESENTATION BY MEDAREX AS TO THE VALIDITY OR SCOPE OF ANY CLAIM OR PATENT WITHIN THE MEDAREX PATENT RIGHTS; 

        10.4.2    A
WARRANTY OR REPRESENTATION THAT ANYTHING MADE, USED, SOLD OR OTHERWISE DISPOSED OF UNDER ANY LICENSE GRANTED IN THIS AGREEMENT IS OR WILL BE FREE FROM INFRINGEMENT
OF ANY PATENT RIGHTS OR OTHER INTELLECTUAL PROPERTY RIGHT OF ANY THIRD PARTY; 

        10.4.3    AN
OBLIGATION TO BRING OR PROSECUTE ACTIONS OR SUITS AGAINST THIRD PARTIES FOR INFRINGEMENT OF ANY OF THE MEDAREX PATENT RIGHTS; OR 

        10.4.4    GRANTING
BY IMPLICATION, ESTOPPEL, OR OTHERWISE ANY LICENSES OR RIGHTS UNDER PATENTS OR OTHER RIGHTS OF MEDAREX OR THIRD PARTIES, REGARDLESS OF WHETHER SUCH PATENTS
OR OTHER RIGHTS ARE DOMINANT OR SUBORDINATE TO ANY PATENT WITHIN THE MEDAREX PATENT RIGHTS. 

        10.5    Limitation of Liability.    MEDAREX'S LIABILITY ARISING OUT OF THIS AGREEMENT SHALL BE
LIMITED TO THE AGGREGATE VALUE OF THE CONSIDERATION RECEIVED BY MEDAREX FROM CELLDEX UNDER THIS AGREEMENT. 

11.    INTELLECTUAL PROPERTY; OWNERSHIP OF MATERIALS    

        11.1    Inventorship.    Subject to the terms of this Article 11, inventorship of any
inventions arising out of the Research Program shall be determined according to U.S. law. 

        11.2    Ownership of Biological Materials.    All right, title and interest in and to the
Medarex Mice, the Mice Materials and Antibody Materials shall at all times remain with and be vested in Medarex. Subject to Sections 3.5.1 and 13.4.4, all right, title and interest in and to the
Antibodies shall at all times remain with and be vested in Celldex. 

        11.3    Ownership of Inventions Related to Medarex Mice and Mice Materials.    All right,
title and interest to any inventions and intellectual property relating to the Medarex Mice and the Mice Materials shall (subject to the Research License and any licenses explicitly granted hereunder)
at all times remain with and be vested in Medarex. Any invention or other intellectual property made, and data derived, by Celldex or its respective employees, consultants or agents that relate to the
Medarex Mice or Mice Materials shall be owned by Medarex. Celldex shall promptly notify Medarex of any such invention or other intellectual property, and cooperate with Medarex at Medarex's request
and expense, in the preparation, filing, prosecution, and defense of patent applications and patents relating thereto. Subject to the terms of this Article 11, and except for inventions or
other intellectual property that exclusively relate to Antibodies and/or Antibody Materials and Research Antigens as noted in Section 11.4 below, Celldex shall assign, and hereby assigns, to
Medarex, all right, title and interest to any inventions or other intellectual property that relate to the Medarex Mice or the Mice Materials, 

20

 

and
shall in a reasonably timely manner execute those documents, as requested by Medarex, necessary to document and/or perfect the assignment of such inventions and intellectual property. 

        11.4    Ownership of Antibodies and Inventions Related Thereto.    

        11.4.1    Subject
to Section 11.3 and further subject to Sections 3.5 and 4.3.3, all right, title and interest to the Antibodies and to results, technical
information, inventions and intellectual property and data resulting directly from the use of the Medarex Mice, Mice Materials, Antibodies and the Antibody Materials by Celldex and/or Medarex under
the terms of this Agreement shall at all times remain with and be vested in Celldex. Medarex shall promptly notify Celldex of any such invention or other intellectual property, and cooperate with
Celldex at Celldex's request and expense, in the preparation, filing, prosecution, and defense of patent applications and patents relating thereto. Further, inventions or other intellectual property
made and data derived by Celldex or its employees, consultants or agents in connection with the Research Program that relate to the Research Antigens used to immunize Medarex Mice shall be owned by
Celldex. 

        11.4.2    Medarex
agrees to assign and hereby assigns to Celldex all right, title and interest in and to any invention or other intellectual property made by Medarex or its
respective employees, consultants or agents in the course of activities in connection with the Research Program that relates solely to the Research Antigens provided by Celldex. Notwithstanding the
foregoing, in the event that Celldex terminates a Research License and all Exclusive Commercial Licenses with respect to a Research Antigen, Celldex hereby grants to Medarex a worldwide, perpetual,
royalty-free nonexclusive license, with the right to sublicense, under Celldex's rights in the inventions described under this Section 11.4.2 to discover, develop and commercialize
any and all antibodies against such Research Antigen(s); provided, however, Celldex shall not be obligated to grant to Medarex the license described in this Section 11.4.2 in the event that, at
the time that Celldex terminates a Research License and all Exclusive Commercial Licenses with respect to a Research Antigen, Celldex has entered into an agreement with a third party with respect to
such Research Antigen, which agreement provides for Celldex and/or the third party to pursue an antibody-development program with respect to such Research Antigen and such program is actually underway
at the time of such license termination. 

        11.5    Patent Filings.    Celldex hereby covenants that neither Celldex nor its Affiliates
nor their respective employees, consultants or agents shall file any patent applications disclosing or claiming inventions comprising any Medarex Mice or Mice Materials, or the making or using
thereof, without Medarex's prior written consent. In the event Celldex breaches this covenant, in addition to any other remedies Medarex may have, Celldex shall (i) assign to Medarex all right,
title, and interest to all patent applications and patents issuing thereon, and (ii) execute those documents, as requested by Medarex, necessary to document and/or perfect the assignment of
such patent applications and patents issuing thereon. 

        11.6    Patent Prosecution.    

        11.6.1    Celldex Patent Rights.    Celldex shall be solely responsible, at its expense and in
its sole discretion, for the preparation, filing, prosecution and maintenance of the patent applications and patents owned by or on behalf of Celldex claiming Antibodies and Antibody Materials in
countries selected by Celldex, and for conducting any interferences, reexaminations, reissues, oppositions, or request for patent term extension relating thereto. 

        11.6.2    Medarex Patent Rights.    Medarex shall be responsible, at its expense and in its
sole discretion, for the preparation, filing, prosecution and maintenance of the Medarex Patent Rights and for conducting any interferences, reexaminations, reissues, oppositions, or request for
patent term extensions relating thereto. In addition, Medarex shall have the sole right, but not the obligation, at its expense, to prepare, file, prosecute and maintain the patent applications and 

21

 

patents
assigned to Medarex by Celldex pursuant to Sections 3.5.2, 4.3.3(b) and 11.3, and to conduct any interferences, reexaminations, reissues, oppositions, or request for patent term
extensions relating thereto. 

        11.6.3    Celldex's Failure to Prosecute.    In the event that Celldex declines to file or,
having filed, declines to further prosecute and maintain any patent applications or patents subject to Section 11.6.1 above, Celldex shall provide Medarex notice thereof prior to the expiration
of any deadline relating to such activities, but in any event at least thirty (30) days prior notice, and Medarex shall have the right to file, prosecute and maintain such patent applications
or patents in the name of Celldex, at Medarex's expense, using counsel of its choice, which patent applications and patents shall be owned by Celldex. 

        11.6.4    Cooperation.    Celldex shall keep Medarex reasonably informed and shall respond to
all reasonable requests for information made by Medarex, with regard to Celldex's activities pursuant to Section 11.6.1 above. Likewise, Medarex shall keep Celldex reasonably informed and shall
respond to all reasonable requests for information made by Celldex with regard to Medarex's activities pursuant to Section 11.6.2 above as they relate to the Licensed Antibody(ies) and
Product(s). 

        11.7    Infringement Claims.    If the manufacture, importation, sale or use of a Product
pursuant to this Agreement results in any claim, suit or proceeding alleging patent infringement against Medarex or Celldex, such party shall promptly notify the other party hereto. The defendant
shall keep each other party hereto reasonably informed of all material developments in connection with any such claim, suit or proceeding. 

12.    INDEMNIFICATION    

        12.1    Medarex.    Medarex shall indemnify, defend and hold harmless Celldex and its
directors, officers and employees (each an "Celldex Indemnitee") from and against any and all liabilities, damages, losses, costs or expenses (including attorneys' and professional fees and other
expenses of litigation and/or arbitration) ("Liabilities") resulting from a claim, suit or proceeding made or brought by a third party against an Celldex Indemnitee arising from or occurring as a
result of any breach of the representations and warranties set forth in Section 10.1, except to the extent caused by the negligence or willful misconduct of Celldex. 

        12.2    Celldex.    Celldex shall indemnify, defend and hold harmless Medarex and its
directors, officers and employees (each a "Medarex Indemnitee") from and against any and all Liabilities resulting from a claim, suit or proceeding made or brought by a third party against a Medarex
Indemnitee, arising from or occurring as a result of (i) any breach of the representations and warranties set forth in Section 10.2, (ii) the use of the Medarex Mice, conduct of
the Research Program, or the practice by Celldex of any right granted herein, except those that arise from infringement or appropriation of intellectual property rights with respect to Medarex Mice or
Mice Materials, or (iii) any development, testing, manufacture, importation, use, offer for sale, sale or other distribution of any Research Antigen, Antibody or Product by Celldex or its
Affiliates or Sublicensees (including, without limitation, product liability claims), except in each case, to the extent caused by the negligence or willful misconduct of Medarex. 

        12.3    Procedure.    In the event that a party indemnified hereunder (an "Indemnitee")
intends to claim indemnification under this Article 12, such Indemnitee shall promptly notify the other party (the "Indemnitor") in writing of such alleged Liability. The Indemnitor shall have
the sole right to control the defense and settlement thereof. The Indemnitees shall cooperate with the Indemnitor and its legal representatives in the investigation of any action, claim or liability
covered by this Article 12. The Indemnitee shall not, except at its own cost and risk, voluntarily make any payment or incur any expense with respect to any claim or suit without the prior
written consent of the Indemnitor, which 

22

 

the
Indemnitor shall not be required to give. The Indemnitor shall not be required to provide indemnification with respect to a Liability the defense of which is prejudiced by the failure to give
notice by the Indemnitee or the failure of the Indemnitee to cooperate with the Indemnitor or where the Indemnitee settles or compromises a Liability without the written consent of the Indemnitor. 

13.    TERM AND TERMINATION    

        13.1    Term.    The term of this Agreement shall commence on the Effective Date. Unless
earlier terminated as provided in Sections 2.7.1, 2.7.2 and this Article 13, this Agreement shall continue in full force and effect on a country-by-country and
Product-by-Product basis until there are no remaining royalty payment obligations in a country, at which time the Agreement shall expire in its entirety in such country. Upon
such expiration and following the completion of the payment of all royalties due with respect to a particular Product in such country, Celldex shall have a fully paid, royalty-free,
perpetual license under the Medarex Know How to commercialize such Product in such country. 

        13.2    Breach.    Any failure by a party to comply with any of its obligations contained
herein shall entitle the party not in breach to give to the party in breach notice specifying the nature of the breach, requiring the breaching party to make good or otherwise cure such breach. If
such breach is not cured within thirty (30) days after the receipt of such notice (or, if such breach cannot be cured within such thirty (30)-day period, if the party in breach does
not commence actions to cure such breach within such period and thereafter diligently continue such actions or if such breach is not otherwise cured within ninety (90) days after the receipt of
such notice), the party not in breach shall then be entitled to pursue the rights and remedies available to it by law or in equity. 

        13.3    Termination for Insolvency.    If voluntary or involuntary proceedings by or against a
party are instituted in bankruptcy under any insolvency law, or a receiver or custodian is appointed for such party, or proceedings are instituted by or against such party for corporate reorganization
or the dissolution of such party, which proceedings, if involuntary, shall not have been dismissed within sixty (60) days after the date of filing, or if such party makes an assignment for the
benefit of creditors, or substantially all of the assets of such party are seized or attached and not released within sixty (60) days thereafter, the other party may immediately terminate this
Agreement effective upon notice of such termination. 

        13.4    Effect of Termination or Expiration.    

        13.4.1    Accrued Rights and Obligations.    Termination or expiration of this Agreement for
any reason shall not release either party hereto from any liability which, at the time of such termination or expiration, has already accrued to the other party or which is attributable to a period
prior to such termination or expiration or 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, or default under,
this Agreement. It is understood and agreed that monetary damages may not be a sufficient remedy for any breach of this Agreement and that the non-breaching party may be entitled to
injunctive relief as a partial remedy for any such breach. 

        13.4.2    Return of Confidential Information.    Upon any termination or expiration of this
Agreement, Celldex and Medarex shall promptly return to the other party all Confidential Information of the other; provided, however, that counsel of each party may retain one (1) copy of such
Confidential Information for archival purposes and for ensuring compliance with Article 9. 

        13.4.3    Inventory on Hand.    In the event this Agreement is terminated for any reason,
Celldex and its Sublicensees shall have the right to sell or otherwise dispose of the inventory of any Product subject to this Agreement then on hand until the first anniversary of the effective date
of such termination, any such sale or distribution to be subject to the relevant terms of this Agreement, including without limitation Articles 5, 6 and 7. 

23

 

        13.4.4    Destruction of Biological Materials.    Pursuant to Sections 3.5 and 4.3.3 or upon
any termination of this Agreement, Celldex shall promptly destroy all Medarex Mice, and any Mice Materials, as well as all Antibodies and Antibody Materials derived from the Medarex Mice, and an
officer of Celldex shall provide Medarex with written certification thereof. Upon any expiration of this Agreement, Celldex shall promptly destroy all Medarex Mice and any Mice Materials, and an
officer of Celldex shall provide Medarex with written certification thereof. 

        13.4.5    Licenses.    Except for expiration under Section 13.1, the license(s) granted
Celldex in this Agreement shall terminate upon any termination of this Agreement and in such event Celldex shall cease, and cause its Affiliates and Sublicensees to cease, all development and
commercialization of Products. Any assignment to Medarex pursuant to Sections 2.4, 3.5.2, 4.3.3(b) and 11.3 shall remain in effect following any termination of this Agreement. 

        13.5    Survival.    Sections 2.4.2, 2.6, 3.5, 4.3.3, 7.2, 11.1, 11.2, 11.3, 11.4,
13.4, 13.5, 14.1, 14.5 and 14.7 and Articles 9, 10 and 12 of this Agreement shall survive expiration or termination of this Agreement for any reason, except that Article 12 shall survive
only with respect to liabilities that arise from acts or circumstances that occurred prior to termination or expiration. Section 13.1 of this Agreement shall survive expiration of this
Agreement. 

14.    MISCELLANEOUS    

        14.1    Governing Law.    This Agreement and any dispute arising from the performance or
breach hereof shall be governed by and construed and enforced in accordance with the laws of the state of New Jersey, without reference to conflicts of laws principles. Any claim or controversy
arising out of or related to this Agreement or any breach hereof shall be submitted to a court of applicable jurisdiction in the State of New Jersey, and each party hereby consents to the jurisdiction
and venue of such court. 

        14.2    Independent Contractors.    The relationship of the parties hereto is that of
independent contractors. The parties hereto are not deemed to be agents, partners or joint venturers of the others for any purpose as a result of this Agreement or the transactions contemplated
thereby. 

        14.3    Assignment.    Neither party may assign this Agreement to any third party without the
written consent of the other party, which consent shall not be unreasonably withheld; provided, however, that either party may assign this Agreement, without the other party's consent (a) to
its Affiliates, and (b) to an entity that acquires all or substantially all of the business or assets of the assigning party to which this Agreement pertains, whether by merger, reorganization,
acquisition, sale or otherwise. 

        14.4    Binding Effect.    This Agreement shall be binding upon and inure to the benefit of
the parties and their successors and permitted assigns. 

        14.5    Notices.    All notices, requests and other communications hereunder shall be in
writing and shall be personally delivered or sent by 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. Any such notice shall be deemed to have been given as of the day of personal delivery, one
(1) day after the date sent by facsimile transmission or five (5) days following the date deposited with the United States Postal Service as registered or certified mail, return receipt
requested. 

	If to Medarex:	 	Medarex, Inc.

707 State Road, Suite 206

Princeton, NJ 08540

U.S.A.

Attn: President

Fax No.: (609) 430-2850
	 	 	 

24

 

	

With a copy to:	
 	

Medarex, Inc.

707 State Road, Suite 206

Princeton, NJ 08540

U.S.A.

Attn: General Counsel

Fax No.: (609) 430-4215
	

If to Celldex:	
 	

Celldex Therapeutics, Inc.

519 Route 173W

Bloomsbury, New Jersey 08804

Attn: Chief Executive Officer

Fax No.: (908) 713-6002
	

With a copy to:	
 	

Morgan, Lewis & Bockius LLP

502 Carnegie Center

Princeton, New Jersey 08540

Attn: Randall B. Sunberg, Esq.

Fax No.: (877) 432-9652

        14.6    Force Majeure.    Neither party shall lose any rights hereunder or be liable to the
other party for damages or losses (except for payment obligations) on account of failure by the nonperforming party where the cause of such failure is (i) beyond the reasonable control of such
nonperforming party, such causes including without limitation war, act of terrorism, strike, fire, act of god, earthquake, flood, lockout, embargo, governmental acts or orders or restrictions, or
failure of suppliers, (ii) not caused by the negligence, intentional conduct or misconduct of such nonperforming party, and (ii) such nonperforming party has exerted all reasonable
efforts to avoid or remedy such force majeure; provided, however, that in no event shall a party be required to settle any labor dispute or disturbance. 

        14.7    Injunctive Relief.    Celldex acknowledges that limitations and restrictions on its
possession and use of Medarex Mice and Mice Materials hereunder are necessary and reasonable to protect Medarex, and expressly agrees that monetary damages would be inadequate to compensate Medarex
for any violation by Celldex of any such limitations or restrictions. The parties agree that any such violation would cause irreparable injury to Medarex and agree that without resorting to prior
mediation, and, in addition to any other remedies that may be available in law, in equity or otherwise, Medarex may be entitled to seek temporary and permanent injunctive relief against any threatened
violation of such limitations or restrictions or the continuation of any such violation in any court of competent jurisdiction, without the necessity of proving actual damages. 

        14.8    Compliance with Laws.    Subject to the provisions of Article 9, each party
shall use reasonable efforts to furnish to the other party any information reasonably requested or required by that party during the term of this Agreement or any extensions hereof to enable that
party to comply with the requirements of any U.S. or foreign federal, state and/or government agency. 

        14.9    Further Assurances.    At any time or from time to time on and after the date of this
Agreement, either party shall at the request of the other party hereto (i) subject to the provisions of Article 9, deliver to the requesting party any records, data or other documents
consistent with the provisions of this Agreement, and (ii) execute, and deliver or cause to be delivered, any necessary consents, documents or further instruments of transfer or license. 

        14.10    Retained Rights; No Further Rights.    Only the licenses 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. It is understood and agreed that
Medarex shall retain rights to make, have made, import, use, offer for sale, sell and otherwise commercialize the Mice, itself 

25

 

or
with third parties, for any uses, other than those for which Celldex has been granted licenses under this Agreement. 

        14.11    Export Controls.    Celldex agrees that it shall take all actions necessary to insure
compliance with all U.S. laws, regulations, orders or other restrictions on exports and further shall not sell, license or reexport, directly, or indirectly, the Product(s) to any person or entity for
sale in any country or territory, if, to the knowledge of Celldex based upon reasonable inquiry, such sale, would cause the parties to be in violation of any such laws or regulations now or hereafter
in effect. Celldex agrees to secure from any recipient of Product(s) adequate manually signed written assurances prior to shipment from the United States as are required by the U.S. Export
Regulations. 

        14.12    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. In such event, the parties shall in good
faith negotiate a
substitute clause for any provision declared invalid or unenforceable, which shall most nearly approximate the intent of the parties in entering this Agreement. 

        14.13    Waiver.    It is agreed that no waiver by either party hereto of any breach or
default of any of the covenants or agreements herein set forth shall be deemed a waiver as to any subsequent and/or similar breach or default. 

        14.14    Complete Agreement.    This Agreement constitutes the entire agreement, both written
and oral, between the parties with respect to the subject matter hereof, and all prior agreements respecting the subject matter hereof, either written or oral, expressed or implied, are superseded
hereby. No amendment or change hereof or addition hereto shall be effective or binding on either of the parties hereto unless reduced to writing and duly executed on behalf of both parties. 

        14.15    Use of Name.    Except as required by law, neither party shall use the name or
trademarks of the other party without the prior written consent of such other party. 

        14.16    Headings.    The captions to the several sections and articles hereof are not a part
of this Agreement, but are included merely for convenience of reference only and shall not affect its meaning or interpretation. 

        14.17    Counterparts.    This Agreement may be executed in two (2) counterparts, each
of which shall be deemed an original and which together shall constitute one instrument. 

26

 

        IN WITNESS WHEREOF, Medarex and Celldex have executed this Agreement by their respective duly authorized representatives. 

	MEDAREX, INC.	 	CELLDEX THERAPEUTICS, INC.
	
By:	
 	

/s/  W. BRADFORD MIDDLEKAUFF      
	
 	

By:	
 	

/s/  ANTHONY S. MARUCCI      

	

Print Name:	
 	

W. Bradford Middlekauff
	
 	

Print Name:	

Anthony S. Marucci

	

Title:	
 	

Senior Vice President and General Counsel
	
 	

Title:	
 	

Vice President and Chief Financial Officer

	
GENPHARM INTERNATIONAL, INC.	
 	

 	
 	

 	

 
	
By:	
 	

/s/  W. BRADFORD MIDDLEKAUFF      
	
 	

 	
 	

 	

 
	

Print Name:	
 	

W. Bradford Middlekauff	
 	

 	
 	

 	

 
	 	 	 	 	
	 	 	 	 	 
	

Title:	
 	

Senior Vice President and General Councel	
 	

 	
 	

 	

 
	 	 	
	 	 	 	 	 

27

   EXHIBIT A  

 RESEARCH ANTIGENS  

        [*****] 

*****REPRESENTS
CONFIDENTIAL PORTION WHICH HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED
PORTIONS. 

1

QuickLinks

RESEARCH AND COMMERCIALIZATION AGREEMENTQuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.3  

 
 

AFFILIATION AGREEMENT    
    

        This AFFILIATION AGREEMENT (the "Agreement") is made and entered into as of April 6, 2004, by and between
Medarex, Inc., a New Jersey corporation ("Medarex"), and Celldex Therapeutics, Inc., a Delaware corporation and a wholly-owned subsidiary
of Medarex as of the date hereof ("Celldex"). Certain capitalized terms used herein are defined in Section 1 of this Agreement (Medarex and
Celldex are sometimes hereinafter individually referred to as a "Party" or collectively as the "Parties"). 

RECITALS  

        WHEREAS, the Board of Directors of Medarex has determined that it would be in the best interests of Medarex and
its shareholders to separate certain assets and businesses from Medarex; 

        WHEREAS, the Medarex Board of Directors has approved the contribution of certain assets to Celldex; 

        WHEREAS, Celldex intends to file the IPO Registration Statement (as defined herein) with the Securities and Exchange Commission, which IPO
Registration Statement has not yet become effective; 

        WHEREAS, immediately following the consummation of the Initial Public Offering (as defined herein), Medarex will own a majority of the
outstanding shares of Celldex Common Stock (as defined herein); 

        WHEREAS, the parties hereto have determined that in order to accomplish the objectives of the Initial Public Offering and to facilitate
the consummation thereof, it is necessary and desirable to agree upon and set forth certain intercompany relationships, allocate certain liabilities and provide for certain indemnification, all as set
forth herein; 

        NOW, THEREFORE, in consideration of the premises and the representations, warranties, covenants and agreements herein contained, and for
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereby agree as follows: 

        1.    DEFINITIONS.    In addition to the definitions set forth above, the following capitalized terms shall have the
meanings ascribed to them in this Article 1: 

        "Annual Financial Statements" has the meaning set forth in Section 3.1(v). 

        "Business Day" means any day other than a Saturday, a Sunday, or a day on which banking institutions located in the States of New Jersey
or Delaware are obligated by law or executive order to close. 

        "Celldex Affiliate" means a Person that, directly or indirectly through one or more intermediaries, Controls, is Controlled by or is under
common Control with Celldex, other than Medarex or any Medarex Affiliate. 

        "Celldex Business" means any business or operations of Celldex or any Celldex Affiliate, including, in all cases, any predecessor entities
(other than Medarex or any Medarex Affiliate). 

        "Celldex Capital Stock" means all classes or series of capital stock of Celldex authorized by Celldex's Certificate of Incorporation. 

        "Celldex Common Stock" means the common stock, par value $.01 per share, of Celldex. 

        "Celldex Public Filings" has the meaning set forth in Section 3.1(vii). 

        "Celldex's Auditors" has the meaning set forth in Section 3.1(iii). 

 

        "Celldex's Certificate of Incorporation" means Celldex's Certificate of Incorporation, as filed with the Secretary of State of the State
of Delaware and in effect upon the closing of the Initial Public Offering. 

        "Claim" has the meaning set forth in Section 4.5. 

        "Control" means the possession, direct or indirect, by a Person of the power to direct or cause the direction of the management and
policies of another Person, whether through the ownership of voting securities, by contract or otherwise; and "Controlled" has the meaning correlative
to the definition of Control. 

        "Dispute Notice" means written notice of any dispute between Medarex and Celldex arising out of or relating to this Agreement, which shall
set forth, in reasonable detail, the nature of the dispute. 

        "Disputes" has the meaning set forth in Section 5.1. 

        "E&Y" has the meaning set forth in Section 3.1(iii). 

        "Effective Date" has the meaning set forth in Section 5.5. 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended, together with the rules and regulations promulgated thereunder, and
any successor act thereto. 

        "GAAP" means United States generally accepted accounting principles, consistently applied. 

        "Indemnifying Party" means a Person that is obligated to provide indemnification under Article 4 of this Agreement. 

        "Indemnitee" means a Person that is entitled to seek indemnification under Article 4 of this Agreement. 

        "Independent Director" shall mean any individual who is a director of Celldex and who qualifies as an "independent director" under the
Rules of the National Association of Securities Dealers, Inc. ("NASD"), as amended from time to time. 

        "Initial Public Offering" means the initial public offering of shares of Celldex Common Stock as contemplated by the IPO Registration
Statement. 

        "IPO Registration Statement" means the Registration Statement on Form S-1 of Celldex, to be filed with the SEC and as
supplemented and amended from time to time. 

        "Losses" means all losses, liabilities, claims, obligations, demands, judgments, damages, dues, penalties, assessments, fines (civil or
criminal), costs, liens, expenses, forfeitures, settlements, or fees, reasonable attorneys fees and court costs, of any nature or kind, whether or not the same would properly be reflected on a balance
sheet, and "Loss" means any of these. 

        "Medarex Affiliate" means a Person that, directly or indirectly through one or more intermediaries, Controls, is Controlled by or is under
common Control with Medarex, other than Celldex or any Person Controlled by Celldex. 

        "Medarex Annual Statements" has the meaning set forth in Section 3.1(v). 

        "Medarex Business" means any business or operations of Medarex or any Medarex Affiliate, including, in all cases, any predecessor
entities, but excluding the Celldex Business. 

        "Medarex Public Filings" has the meaning set forth in Section 3.1(xiii). 

        "Medarex's Auditors" has the meaning set forth in Section 3.1(v). 

2

 

        "Person" means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a
joint venture, an unincorporated organization or any other legal entity, or a governmental entity or any department, agency or political subdivision thereof. 

        "Quarterly Financial Statements" has the meaning set forth in Section 3.1(iv). 

        "Registration Rights Agreement" means that certain Registration Rights Agreement dated as of the Effective Date by and between Celldex and
Medarex. 

        "Regulation S-K" means Regulation S-K of the General Rules and Regulations promulgated by the SEC,
as in effect from time to time, and any successor thereto. 

        "Regulation S-X" means Regulation S-X of the General Rules and Regulations promulgated by the SEC,
as in effect from time to time, and any successor thereto. 

        "Request" has the meaning set forth in Section 4.5. 

        "SEC" means the United States Securities and Exchange Commission or any successor agency. 

        "Securities Act" means the Securities Act of 1933, together with the rules and regulations promulgated thereunder, and any successor act
thereto. 

        "Separate Counsel" has the meaning set forth in Section 4.4(b). 

        "Subsidiary" means any Person Controlled by Celldex. 

        "Third-Party Claim" means any claim, suit, demand, arbitration, inquiry, proceeding or investigation by or before any court, governmental
or other regulatory or administrative agency or commission or any arbitration tribunal asserted by a Person other than Medarex or any Medarex Affiliate or Celldex or any Celldex Affiliate which gives
rise to a right of indemnification under Article 4 of this Agreement. 

        "Voting Stock" means with respect to any Person, all classes and series of the capital stock or other equity interest of such Person
entitled to vote generally in the election of directors or similar governing body. 

        2.    EXPENSES AND PRIOR RELATIONSHIP.    

        2.1    Expenses Generally.    Except as otherwise provided in this Agreement, all costs and expenses of either party
hereto in connection with this Agreement shall be paid by the party that incurs such costs and expenses. 

        2.2    Certain Expenses Relating to the Initial Public Offering.    Celldex shall be liable for all costs, fees and
expenses relating to the Initial Public Offering, including the costs and expenses of financial, legal, accounting and other advisers. 

        2.3    Prior Relationship.    Celldex, with respect to Celldex and all of the Celldex Affiliates, and Medarex, with
respect to Medarex and all of the Medarex Affiliates, agree to use its commercially reasonable efforts to discontinue their respective uses as promptly as is commercially reasonable of any printed
material that indicates an ownership or other relationship between or among, on the one hand, Medarex or any Medarex Affiliate and, on the other hand, Celldex or any Celldex Affiliate that has changed
as a result of the Initial Public Offering or any other transactions contemplated hereby; provided, that this Section 2.3 shall not prohibit the use of printed material containing appropriate
and accurate references to such relationship. 

3

 

        3.    CERTAIN COVENANTS.    

        3.1    Financial Statements Covenants.    For so long as the percentage of Voting Stock of Celldex beneficially owned
by Medarex and the Medarex Affiliates exceeds 20% of all Voting Stock of Celldex: 

          (i)  Celldex
shall, and shall cause each Celldex Affiliate to, maintain a fiscal year which commences on January 1 and ends on December 31 of each calendar
year; 

         (ii)  Attached
hereto as Schedule 3.1(ii) is a timeline of Medarex's corporate closing requirements for the balance of the fiscal year ending December 31, 2004.
In addition, Medarex shall provide to Celldex at
least sixty (60) days prior to the end of each fiscal year a timeline of Medarex's corporate closing requirements for such upcoming fiscal year. Medarex shall have the right to amend any such
timeline upon thirty (30) days prior written notice to Celldex. Celldex shall use its commercially reasonable efforts to deliver to Medarex the financial information that it is required to
provide under this Section 3, in a time frame consistent with Medarex's corporate closing schedule; 

        (iii)  Except
to the extent required by law (including SEC and NASD rules and regulations), Celldex shall cause Ernst & Young LLP
("E&Y") to be retained as the independent certified public accountants to audit its consolidated financial statements
("Celldex's Auditors") unless (A) Celldex receives the prior written consent of Medarex (which consent will not be unreasonably withheld if
Celldex has demonstrated to Medarex that it is reasonably justified in not retaining E&Y by reason of any action or inaction of E&Y), or (B) E&Y resigns as Celldex's Auditors. If E&Y ceases to
be Celldex's Auditors, then Celldex shall retain independent certified public accountants of nationally recognized standing as Celldex's Auditors; 

        (iv)  As
soon as practicable, and in any event within 25 days after the end of each of the first three fiscal quarters in each fiscal year of Celldex (but in no event
later than five days before Celldex intends to file its Quarterly Financial Statements with the SEC), Celldex shall use commercially reasonable efforts to deliver to Medarex drafts of (A) the
consolidated financial statements of Celldex (and notes thereto) for such periods and for the period from the beginning of the current fiscal year to the end of such quarter, setting forth in each
case in comparative form for each such fiscal quarter of Celldex the consolidated figures (and notes thereto) for the corresponding quarter and periods of the previous fiscal year and all in
reasonable detail and prepared in accordance with Regulation S-X, and (B) a discussion and analysis by management of Celldex's consolidated financial condition and results of
operations for such fiscal period, including, without limitation, an explanation of any material adverse change from the immediately preceding fiscal quarter, all in reasonable detail and prepared in
accordance with Item 303(b) of Regulation S-K. The information set forth in (A) and (B) above is herein referred to as the "Quarterly Financial
Statements." No later than the earlier of (x) two Business Days prior to the date Celldex files its Quarterly Report on Form 10-Q with the SEC or
otherwise makes its Quarterly Financial Statements publicly available or (y) two Business Days prior to the date on which Medarex has notified Celldex that it intends to file its Quarterly
Report on Form 10-Q with the SEC (but in no event earlier than the 5th day before Medarex's Quarterly Report on Form 10-Q is required to be filed with the SEC),
Celldex shall use commercially reasonable efforts to deliver to Medarex the final form of the Quarterly Financial Statements certified by the chief financial officer of Celldex as presenting fairly,
in all material respects, the consolidated financial condition and results of operations of Celldex; provided, that Medarex and Celldex financial
representatives shall actively consult with each other regarding any changes (whether or not substantive) which Celldex may 

4

 

consider
making to its Quarterly Financial Statements and related disclosures prior to the actual filing of its Quarterly Report on Form 10-Q with the SEC; 

         (v)  Celldex
shall use its commercially reasonable efforts to enable Celldex's Auditors to complete their audit such that they will date their opinion on Celldex's audited
annual financial statements on the
same date that Medarex's independent certified public accountants ("Medarex's Auditors") date their opinion on Medarex's audited annual financial
statements (the "Medarex Annual Statements"), and to enable Medarex to meet its timetable for the printing, filing and public dissemination of the
Medarex Annual Statements. To this end, Celldex shall deliver to Medarex as soon as practicable, and in any event within 45 days after the end of each fiscal year of Celldex (but in no event
later than ten days before Celldex intends to file its Annual Financial Statements with the SEC), (A) drafts of the consolidated financial statements of Celldex (and notes thereto) for such
year, setting forth in each case in comparative form the consolidated figures (and notes thereto) for the previous fiscal year and all in reasonable detail and prepared in accordance with
Regulation S-X, and (B) a discussion and analysis by management of Celldex's consolidated financial condition and results of operations for such year, including, without
limitation, an explanation of any material adverse change from the immediately preceding fiscal year, all in reasonable detail and prepared in accordance with Item 303(a) of
Regulation S-K. The information set forth in (A) and (B) above is herein referred to as the "Annual Financial Statements." Celldex
shall deliver to Medarex all revised drafts of the Annual Financial Statements suitable and intended for circulation promptly following the preparation thereof. No later than the earlier of
(x) five Business Days prior to the date Celldex files its Annual Report on Form 10-K with the SEC or otherwise makes its Annual Financial Statements publicly available, or
(y) five Business Days prior to the date on which Medarex has notified Celldex that it intends to file its Annual Report on Form 10-K with the SEC (but in no event earlier
than the 5th day before Medarex's Annual Report on Form 10-K is required to be filed with the SEC), Celldex shall deliver to Medarex the final form of the Annual Financial
Statements certified by the chief financial officer of Celldex as presenting fairly, in all material respects, the financial condition and results of operations of Celldex and its Subsidiaries;
provided, that Medarex and Celldex financial representatives shall actively consult with each other regarding any changes (whether or not substantive) which Celldex may consider making to its Annual
Financial Statements and related disclosures prior to the actual filing of its Annual Report on Form 10-K with the SEC. The Annual Financial Statements shall also be accompanied by
an opinion thereon by Celldex's independent certified public accountants; 

        (vi)  Celldex
shall deliver to Medarex all Quarterly and Annual Financial Statements of each Celldex Affiliate (which (A) Celldex consolidates for financial accounting
purposes and (B) is itself required to file financial statements with the SEC or otherwise make such financial statements publicly available) in the same manner and detail and on the same time
schedule as those financial statements of Celldex required to be delivered to Medarex pursuant to this Section 3.1; 

       (vii)  Celldex
shall, and shall cause each Celldex Affiliate which files information with the SEC to, deliver to Medarex: (A) as soon as the same are prepared,
substantially final drafts of: (x) all reports, notices and proxy and information statements to be sent or made available by Celldex or any Celldex Affiliate to its security holders,
(y) all regular, periodic and other reports to be filed under Sections 13, 14 and 15 of the Exchange Act (including Reports on Forms 10-K, 10-Q and
8-K and Annual Reports to Shareholders), and (z) all registration statements and prospectuses to be filed by Celldex or any Celldex Affiliate with the SEC or any securities exchange
pursuant to the listed company manual (or similar requirements) of such exchange (collectively, the documents identified in clauses (A)(x), (y) and (z) are 

5

 

referred
to herein as "Celldex Public Filings"), and (B) as soon as practicable, but in no event later than two Business Days prior to the date
the same are printed, sent or filed, whichever is earliest, final copies of all such Celldex Public Filings; provided, that Celldex may continue to revise such Celldex Public Filings prior to the
filing thereof in order to make corrections and changes which corrections and changes shall be delivered by Celldex to Medarex as soon as practicable; and,  provided, further, that Medarex and Celldex financial representatives shall actively consult with each
other regarding any changes (whether or not substantive) which Celldex may consider making to any of its Celldex Public Filings and related disclosures prior to any anticipated filing with the SEC; 

      (viii)  In
addition to the financial information required to be provided by Celldex herein, Celldex shall deliver to Medarex (A) as promptly as reasonably practical,
unaudited financial statements on a monthly basis; (B) no later than October 15 of each year, a forecast or budget relating to Celldex's anticipated operations for the upcoming fiscal
year; (C) prior to the end of each fiscal quarter, an "Independent Accountants Review Report" (SAS 100) from Celldex's independent auditors; and (D) at least five Business Days prior to
the proposed completion date (the "Completion Date") of any transaction involving Celldex having a value equal to or greater than 10% of Celldex's total assets, a written report detailing Celldex's
planned accounting treatment for such transaction. Medarex shall have the right (but not the obligation) to provide Celldex with comments on Celldex's proposed accounting treatment, and Celldex
agrees, in good faith, to consider Medarex's comments, provided Medarex provides Celldex with comments at least two Business Days prior to any such Completion Date. Furthermore, with reasonable
promptness, Celldex shall deliver to Medarex such additional financial and other information and data with respect to Celldex and its Subsidiaries and their respective businesses, properties,
financial positions, results of operations and prospects as from time to time may be reasonably requested by Medarex; 

        (ix)  Medarex
agrees to provide to Celldex all information relating to Medarex or any Medarex Affiliate that Celldex reasonably requests in connection with any Celldex Public
Filings that, in the reasonable judgment of Celldex's legal counsel, is required to be disclosed or incorporated by reference therein under any law, rule or regulation. Medarex agrees that such
information shall be provided by Medarex in a timely manner on the dates reasonably requested by Celldex (which may be earlier than the dates on which Medarex otherwise would be required hereunder to
have such information available) to enable Celldex to prepare, print and release all Celldex Public Filings on such dates as Celldex shall determine. In addition, if and to the extent reasonably
requested by Celldex, Medarex agrees that it will diligently and promptly review and provide in a diligent and timely fashion comments with respect to any portion of such Celldex Public Filings
pertaining to Medarex or any Medarex Affiliate; 

         (x)  Celldex
shall authorize Celldex's Auditors to make available to Medarex's Auditors both the personnel who performed or are performing the annual audit of Celldex and
work papers related to the annual audit of Celldex, in all cases within a reasonable time prior to the date of Celldex's Auditors' opinion on Celldex's audited financial statements, so that Medarex's
Auditors are able to perform the procedures they consider necessary to take responsibility for the work of Celldex's Auditors as it relates to Medarex's Auditors' report on Medarex's statements, all
within sufficient time to enable Medarex to meet its timetable for the printing, filing and public dissemination of the Medarex Annual Statements; 

        (xi)  Celldex
shall give Medarex as much prior notice as reasonably practical of any proposed determination of, or any significant changes in, its accounting estimates or
accounting principles from those in effect on the Effective Date; 

6

 

       (xii)  Celldex
shall, and shall cause each Celldex Affiliate to, maintain a system of internal accounting controls that will provide reasonable assurance that
(A) Celldex's and such Celldex Affiliate's books, records and accounts fairly reflect all transactions and dispositions of assets and (B) the specific objectives of accounting control
are achieved; 

      (xiii)  Celldex
shall cooperate fully, and cause its accountants to cooperate, with Medarex to the extent reasonably requested by Medarex in the preparation of Medarex's
public earnings releases, Quarterly Reports on Form 10-Q, Annual Reports to Shareholders, Annual Reports on Form 10-K, any Current Reports on
Form 8-K and any other proxy, information and registration statements, reports, notices, prospectuses and any other filings made by Medarex with the SEC, any national securities
exchange or otherwise made publicly available (collectively, "Medarex Public Filings"). Celldex agrees to provide to Medarex all information relating to
Celldex that Medarex reasonably requests in connection with any Medarex Public Filings or that, in the judgment of Medarex's legal counsel, is required to be disclosed or incorporated by reference
therein under any law, rule or regulation. Such information shall be provided by Celldex in a timely manner on the dates reasonably requested by Medarex (which may be earlier than the dates on which
Celldex otherwise would be required hereunder to have such information available) to enable Medarex to prepare, print and release all Medarex Public Filings on such dates as Medarex shall determine.
Celldex shall use its commercially reasonable efforts to cause its accountants to consent to any reference to them as experts in any Medarex Public Filings required under any law, rule or regulation.
If and to the extent reasonably requested by Medarex, Celldex shall diligently and promptly review all drafts of such Medarex Public Filings and prepare in a diligent and timely fashion any portion of
such Medarex Public Filing pertaining to Celldex. Prior to any printing or public release of any Medarex Public Filing, an appropriate executive officer of Celldex shall, if requested by Medarex,
certify that the information relating to Celldex in such Medarex Public Filing is accurate, true and correct in all material respects (subject to any exceptions noted by such Celldex executive
officer). Unless required by law, rule or regulation, Celldex shall not publicly release any financial or other information which conflicts with the information with respect to Celldex that is
included in any Medarex Public Filing without Medarex's prior written consent, which consent shall not be unreasonably withheld. Prior to the release or filing thereof, Medarex shall provide Celldex
with a draft of any portion of a Medarex Public
Filing containing information relating to Celldex, any Celldex Affiliate or the Celldex Business and shall give Celldex an opportunity to review such information and comment thereon;  provided, that
Medarex shall determine in its sole discretion the final form and content of all Medarex Public Filings; 

      (xiv)  Medarex
agrees that it shall cooperate fully, and cause its internal and independent accountants to cooperate fully, with Celldex to the extent reasonably requested by
Celldex in the preparation of any Celldex Public Filings; 

       (xv)  Prior
to the release or filing thereof, Celldex shall provide Medarex with a draft of any portion of a Celldex Public Filing containing information relating to Medarex
or any Medarex Affiliate and shall give Medarex an opportunity to review such information and comment thereon; provided, that Celldex shall determine in
its sole discretion the final form and content of all Celldex Public Filings; and 

        Nothing
in this Section 3.1 shall require either Party to violate (A) any agreement with any of its customers regarding the confidentiality of commercially sensitive
information relating to that customer or its business; provided, that in the event that either Party would otherwise be required under this
Section 3.1, but for such agreement, to disclose any such information, such Party shall use its commercially reasonable efforts to seek to obtain such customer's consent to the disclosure of
such information, or (B) any law, rule or regulation of any governmental body or stock exchange applicable 

7

 

to
such Party or, in the case of Celldex, any Celldex Affiliate, or, in the case of Medarex, any Medarex Affiliate. 

        3.2    Board of Directors.    

        (a)    Initial Composition.    The number of directors initially comprising Celldex's board of directors shall be
five. As of the date hereof, such board of directors shall consist of one (1) representative of Medarex (a "Medarex Director"), one
(1) representative of the management of Celldex (a "Celldex Director") and three (3) Independent Directors, the identities of whom are as
set forth on Schedule 3.2 hereto, each of whom shall continue to be a director of Celldex following the Effective Date until his or her successor
is duly elected or appointed and qualified or until his or her earlier death, resignation or removal in accordance with Celldex's Certificate of Incorporation and bylaws. 

        (b)    Proportional Representation.    

          (i)  Unless
otherwise determined by Celldex's Nominating and Corporate Governance Committee, the Celldex Director shall be Celldex's Chief Executive Officer. Following the
Effective Date, Medarex shall continue to have the right to appoint a representative to the Celldex board of directors and, if the Celldex board of directors is increased above five
(5) members, Medarex shall have the right to appoint a second representative with the other representatives being selected by the Nominating and Corporate Governance Committee in accordance
with the Celldex Nominating and Corporate Governance Committee Charter; provided, however, that Celldex shall use commercially reasonable efforts to ensure that Independent Directors constitute a
majority of the Celldex board of directors. Notwithstanding anything to the contrary set forth above, Medarex shall not have a right to designate any nominees to Celldex's board of directors in any
annual meeting if at the record date for such annual meeting the percentage of Voting Stock of Celldex beneficially owned by Medarex and the Medarex Affiliates collectively falls below 20% of the
outstanding shares of the Voting Stock of Celldex. 

         (ii)  Medarex
and the Nominating and Corporate Governance Committee of Celldex shall have the right to designate or nominate any replacement for a director designated by
Medarex or nominated by such committee, respectively, at the termination of such director's term or upon death, resignation, retirement, disqualification, removal from office or other cause. To the
extent permitted by Celldex's Certificate of Incorporation or bylaws, the board of directors shall elect each person so designated or nominated. 

        (iii)  The
Nominating and Corporate Governance Committee of Celldex shall only include Independent Directors. 

        (c)    Director Qualifications.    No individual designated by Medarex shall serve as a director unless such
individual has such business or technical experience, stature and character as is commensurate with service on the board of a publicly held enterprise. No such individual who is an officer, partner or
5% or greater stockholder of any entity that Celldex reasonably believes to be in direct competition with the business or operations of Celldex or any Person Controlled by Celldex at the time of such
designation shall serve as a director of Celldex. Notwithstanding the foregoing, nothing contained in this Section 3.2(c) shall operate so as to prohibit any Person who is an officer, director,
partner, principal or 5% or greater stockholder of Medarex or any Medarex Affiliate or their respective successors from serving as Medarex's designee on the Celldex board. In addition, any Person who,
at any time, is then serving on the Celldex board as a Medarex designee shall not be prohibited from continuing to serve on the Celldex board by reason of an intervening change in the Celldex
Business. 

8

 

        3.3    Voting of Shares.    In any election of directors, Medarex will vote its shares of Voting Stock of Celldex for
all nominees recommended by the Nominating and Corporate Governance Committee of Celldex; provided, that it may cast all of its votes in favor of any
nominee designated by it to be the Medarex Director pursuant to the provisions of this Agreement. 

        3.4    Share Acquisition and Transfer.    

        (a)    Lock-Up.    Medarex hereby agrees that for a period of thirty-six (36) months
following the Effective Date (the "Lock-up Period"), Medarex will not (i) offer, sell, renounce, transfer, deliver, assign, exchange or otherwise dispose of all or any portion of
the shares of Celldex Capital Stock (a "Sale") whether now owned or hereafter acquired by Medarex (collectively the "Securities"), (ii) issue, offer, pledge, sell or contract to sell any
option, right or warrant to purchase or acquire or otherwise transfer or dispose of, directly or indirectly, any Securities, (or any receipt, certificate or other right, title or interest in respect
of or representing Securities or an interest therein), or any security, instrument or other right or interest convertible into or exercisable or exchangeable for or which confers a right or
entitlement to purchase or acquire Securities (or any receipt, certificate or other right, title or interest in respect of or representing Securities or an interest therein), or (iii) enter
into any swap or other agreement that transfers, in whole or in part, any of the economic consequences or other rights of ownership of any Securities (or any receipt, certificate or other right, title
or interest in respect of or representing Securities or an interest therein) or any security, instrument or other right convertible into or exercisable or exchangeable for or which confers a right or
entitlement to purchase or acquire Securities (or any receipt, certificate or other right, title or interest in respect of or representing Securities or an interest therein), whether any such
transaction described in paragraphs (i) or (ii) above is to be settled by delivery of any Securities (or any receipt, certificate or other right, title or interest in respect of or representing
any Securities or an interest therein) or such other securities, in cash or otherwise. 

        (b)    Application of Restrictions.    It is expressly agreed that the restrictions set forth in
Sections 3.4(a) above shall apply to all Securities beneficially owned by Medarex and any Medarex Affiliate. In addition, the foregoing restrictions are expressly agreed to preclude Medarex and
any Medarex Affiliate from engaging in any hedging or other transaction which is designed to or which reasonably could be expected to lead to or result in a Sale or other disposition of the
Securities, even if such Securities would be disposed of by someone other than Medarex and any Medarex Affiliate. Such prohibited hedging or other transactions would include without limitation any
short sale or any purchase, sale or grant of any right (including without limitation any put or call option) with respect to any of the Securities or with respect to any security that includes,
relates to, or derives any significant part of its value from such Securities. 

        (c)    Limitations on Restrictions.    Notwithstanding the foregoing, the restrictions set forth in
Section 3.4(a) and (b) above shall not apply to (i) a transfer or Sale of any Securities by Medarex pursuant to the terms and conditions of the Registration Rights Agreement;
(ii) a transfer or Sale of any Securities by Medarex approved by a majority of Celldex's Independent Directors; and (iii) a transfer or Sale of any Securities by Medarex to a Medarex
Affiliate, provided that any such Medarex Affiliate agrees in writing to be subject to the terms and conditions of this Agreement, and provided, further, that should any such Medarex Affiliate, at any
time, cease to be a Medarex Affiliate, Medarex shall be obligated to require such Medarex Affiliate to transfer the Securities back to Medarex. Anything herein to the contrary notwithstanding, Medarex
shall give, and shall cause any Medarex Affiliate to give, Celldex at least five (5) Business Days prior notice of any transfer or Sale under this Section 3.4(c). 

9

  

        3.5    Standstill and Other Agreements.    

        (a)   Medarex
agrees that during the Lock-up Period, without the prior written consent of a majority of Celldex's Independent Directors, Medarex shall not, nor
shall it permit any Medarex Affiliate to, nor shall Medarex agree, or advise, assist, encourage, provide information or provide financing to other Persons, or permit any Medarex Affiliate to agree, or
to advise, assist, encourage, provide information or provide financing to other Persons, to, individually or collectively, directly or indirectly: 

          (i)  acquire
or offer to acquire or agree to acquire from any Person, directly or indirectly, by purchase or merger, through the acquisition of control of another Person, by
joining a partnership, limited partnership or other "group" (within the meaning of Section 13(d)(3) of the Exchange Act) or otherwise, beneficial ownership of any Securities (other than
Securities beneficially owned by Medarex and any Medarex Affiliate) or direct or indirect rights (including convertible securities) or options to acquire such beneficial ownership (or otherwise act in
concert with respect to any such securities, rights or options with any Person that so acquires, offers to acquire or agrees to acquire); provided, however, that no such acquisition, offer to acquire
or agreement to acquire shall be deemed to occur solely due to (1) a stock split, reverse stock split, reclassification, reorganization or other transaction by Celldex affecting any class of
the outstanding Celldex Capital Stock generally or (2) a stock dividend or other pro rata distribution by Celldex to holders of the outstanding Celldex Capital Stock; or 

         (ii)  seek
representation on the Board of Directors of Celldex or the removal of any Celldex Directors or a change in the composition or size of the Board, other than in
accordance with the terms of this Agreement; 

        (iii)  make
any statement or proposal, whether written or oral, to the Board of Directors of Celldex, or to any director, officer or agent of Celldex, or make any public
announcement or proposal whatsoever with respect to a merger or other business combination, sale or transfer of assets, recapitalization, dividend, share repurchase, liquidation or other extraordinary
corporate transaction with Celldex or any other transaction which could result in a change of control, solicit or encourage any other Person to make any such statement or proposal, or take any action
which might require Celldex to make a public announcement regarding the possibility of any transaction referred to in this paragraph (iii) or similar transaction, or advise, assist or encourage
any other Persons in connection with the foregoing; 

        (iv)  make,
or in any way participate, directly or indirectly, in any "solicitation" of "proxies" (as such terms are defined in Rule 14a-1 under the
Exchange Act) to vote any Voting Securities,
seek to advise, encourage or influence any person or entity with respect to the voting of any Voting Securities, initiate or propose any shareholder proposal, or induce or attempt to induce any other
person to initiate any shareholder proposal, or execute any written consent with respect to Celldex; 

         (v)  deposit
any Voting Securities into a voting trust or subject any Voting Securities to any arrangement or agreement with respect to the voting of any Voting Securities
other than this Agreement; 

        (vi)  form,
join or in any way participate in a "group" (within the meaning of Section 13(d)(3) of the Exchange Act) with respect to any Voting Securities, other than
a group which Medarex is a member of as of the Effective Date; 

       (vii)  make
a public request to Celldex (or its directors, officers, shareholders, employees or agents) to take any action in respect of the foregoing matters; or 

10

 

      (viii)  disclose
any intention, plan or arrangement inconsistent with the foregoing. 

For
purposes of this Section 3.5, the term "Voting Securities" shall mean Securities of Celldex, with the power to vote with respect to the election of directors generally, including any
Securities that are convertible or exchangeable for Voting Securities, it being understood that the number of Voting Securities outstanding as of any time of determination shall be determined as
though all such Securities, whether or not in the money, had been converted or exchanged, in accordance with their terms, into or for Voting Securities immediately prior to the time of determination. 

        (b)   Medarex
acknowledges that Celldex would not have an adequate remedy at law for damages if any of the covenants or agreements contained in Sections 3.4 and 3.5 were not
performed in accordance with their terms and therefore agrees that Celldex shall be entitled to specific enforcement of such covenants or agreements and to injunctive and other equitable relief in
addition to any other remedy to which it may be entitled, at law or in equity. 

        (c)   So
long as Medarex owns in excess of 20% of the Voting Stock of Celldex, Medarex hereby agrees that, following the Lock-up Period, in the event Celldex
proposes to raise additional funding (whether on a public or private basis) and Celldex is informed by its investment banking firm that it would be in Celldex's best interest for Medarex to
"lock-up" its Securities, Medarex will enter into a lock-up arrangement whereby it will agree not to sell, transfer, assign, pledge or otherwise dispose of its Celldex
Securities for a period not to exceed 180 days. 

        3.6    Interested Party Transactions.    Celldex's Board of Directors shall form a Conflict of Interest Committee on
which only Independent Directors of Celldex shall be permitted to serve. 

        3.7    Fiduciary Duties.    Except as set forth in Celldex's Certificate of Incorporation or any other written
agreement between the parties, Medarex hereby covenants and agrees that it and any Medarex Affiliate will observe any fiduciary obligations that they may have under applicable law to Celldex or
Celldex's other stockholders. 

        4.    INDEMNIFICATION.    

        4.1    Indemnification by Celldex.    Subject to Sections 4.2 and 4.3, Celldex shall indemnify, defend and hold
harmless Medarex, all Medarex Affiliates and each of their respective directors, officers and employees (in their capacities as such), from and against: 

          (i)  all
Losses relating to, arising out of, or due to, directly or indirectly, any breach by Celldex or any Celldex Affiliate of any of the provisions of this Agreement; 

         (ii)  all
Losses relating to, arising out of, or due to, directly or indirectly, any incorrect, inaccurate or incomplete financial and other information provided by Celldex
or any Celldex Affiliate to Medarex pursuant to Section 3.1 of this Agreement; 

        (iii)  all
Losses that result from any Third-Party Claim arising solely out of the business or operation of the Celldex Business; and 

        (iv)  all
Losses relating to, arising out of, or due to, directly or indirectly, (x) any Third-Party Claim arising out of any breach or alleged breach of any fiduciary
duty to Celldex based on any action or inaction which is permitted by the provisions of Article III of Celldex's Certificate of Incorporation or (y) any claim, suit, demand, arbitration,
inquiry, proceeding or investigation by or before any court, governmental or other regulatory or administrative agency or commission or any arbitration tribunal asserted by or on behalf of Celldex or
a Celldex Affiliate arising out of any breach or alleged breach of any fiduciary duty to Celldex 

11

 

based
on any action or inaction which is permitted by the provisions of Article III of Celldex's Certificate of Incorporation. 

        4.2    Indemnification by Medarex.    Subject to Sections 4.1 and 4.3, Medarex shall indemnify, defend and hold
harmless Celldex, all Celldex Affiliates and each of their respective directors, officers and employees (in their capacities as such), from and against: 

          (i)  all
Losses relating to, arising out of, or due to, directly or indirectly, any breach by Medarex or any Medarex Affiliate of any of the provisions of this Agreement; 

         (ii)  all
Losses relating to, arising out of, or due to, directly or indirectly, any incorrect, inaccurate or incomplete financial and other information provided by Medarex
or any Medarex Affiliate to Celldex pursuant to Section 3.1 of this Agreement; 

        (iii)  all
Losses that result from any Third-Party Claim arising solely out of the business or operation of the Medarex Business; and 

        (iv)  all
Losses relating to, arising out of, or due to, directly or indirectly, (x) any Third-Party Claim arising out of any breach or alleged breach of any fiduciary
duty to Medarex based on any action or inaction which is permitted by the provisions of Article III of Celldex's Certificate of Incorporation or (y) any claim, suit, demand, arbitration,
inquiry, proceeding or investigation by or before any court, governmental or other regulatory or administrative agency or commission or any arbitration tribunal asserted by or on behalf of Medarex or
a Medarex Affiliate arising out of any breach or alleged breach of any fiduciary duty to Medarex based on any action or inaction which is permitted by the provisions of Article III of Celldex's
Certificate of Incorporation. 

        4.3    Other Liabilities.    This Article 4 shall not be applicable to any Losses relating to, arising out of,
or due to any breach of the provisions of any other contract, agreement or understanding between Medarex or any Medarex Affiliate, on the one hand, and Celldex or any Celldex Affiliate, on the other
hand, which Losses shall be governed by the terms of such contract, agreement or understanding. 

        4.4    Procedure for Indemnification Involving Third-Party Claims.    

        (a)    Notice of Claim.    If any Indemnitee receives notice of the assertion of any Third-Party Claim with respect to
which an Indemnifying Party is obligated under this Agreement to provide indemnification, such Indemnitee shall give such Indemnifying Party notice thereof (together with a copy of such Third-Party
claim, process or other legal pleading) promptly after becoming aware of such Third-Party Claim; provided, that the failure of any Indemnitee to give
notice as provided in this Section 4.4 shall not relieve any Indemnifying Party of its obligations under this Article 4, except to the extent that such Indemnifying Party is actually
prejudiced by such failure to give notice. Such notice shall describe such Third-Party Claim in reasonable detail. 

        (b)    Obligation of Indemnifying Party.    An Indemnifying Party, at such Indemnifying Party's own expense and
through counsel chosen by such Indemnifying Party (which counsel shall be reasonably acceptable to the Indemnitee), may elect to defend any Third-Party Claim. If an Indemnifying Party elects to defend
a Third-Party Claim, then, within ten Business Days after receiving notice of such Third-Party Claim (or sooner, if the nature of such Third-Party Claim so requires), such Indemnifying Party shall
notify the Indemnitee of its intent to do so, and such Indemnitee shall cooperate in the defense of such Third-Party Claim. Such Indemnifying Party shall pay such Indemnitee's reasonable
out-of-pocket expenses incurred in connection with such cooperation. Such Indemnifying Party shall keep the Indemnitee reasonably informed as to the status of the defense of
such Third-Party Claim. After notice 

12

 

from
an Indemnifying Party to an Indemnitee of its election to assume the defense of a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article 4 for
any legal or other expenses subsequently incurred by such Indemnitee in connection with the defense thereof other than those expenses referred to in the preceding sentence;  provided, that such
Indemnitee shall have the right to employ one law firm as counsel, together with a separate local law firm in each applicable
jurisdiction ("Separate Counsel"), to represent such Indemnitee in any action or group of related actions (which firm or firms shall be reasonably
acceptable to the Indemnifying Party) if, in such Indemnitee's reasonable judgment at any time, either a conflict of interest between such Indemnitee and such Indemnifying Party exists in respect of
such claim, or there may be defenses available to such Indemnitee which are different from or in addition to those available to such Indemnifying Party and the representation of both parties by the
same counsel would be inappropriate, and in that event the reasonable fees and expenses of such Separate Counsel shall be paid by such Indemnifying Party (it being understood, however, that the
Indemnifying Party shall not be liable for the expenses of more than one Separate Counsel (excluding local counsel) with respect to any Third-Party Claim (even if against multiple Indemnitees). If an
Indemnifying Party elects not to defend against a Third-Party Claim, or fails to notify an Indemnitee of its election as provided in this Section 4.4 within the period of ten Business Days
described above, the Indemnitee may defend, compromise, and settle such Third-Party Claim and shall be entitled to indemnification hereunder (to the extent permitted hereunder) on an as incurred
basis; provided, that no such Indemnitee may compromise or settle any such Third-Party Claim without the prior written consent of the Indemnifying
Party, which consent shall not be unreasonably withheld or delayed. Notwithstanding the foregoing, the Indemnifying Party shall not, without the prior written consent of the Indemnitee, settle or
compromise any Third-Party Claim or consent to the entry of any judgment unless such settlement, compromise or judgment involves only the payment of money by the Indemnifying Party and provides a
complete release of the Indemnitee. 

        (c)    Joint Defense of Certain Claims.    Notwithstanding the provisions of Section 4.4(a), Medarex and
Celldex shall jointly control the defense of, and cooperate with each other with respect to defending, any Third-Party Claim with respect to which each party is claiming that it is entitled to
indemnification under Sections 4.1 or 4.2. If either Medarex or Celldex fails to defend jointly any such Third-Party Claim, the other party shall solely defend such Third-Party Claim and the
party failing to defend jointly shall use its commercially reasonable efforts to cooperate with the other party in its defense of such Third-Party Claim;  provided, that neither party may compromise or
settle any such Third-Party Claim without the prior written consent of the other party, which consent
shall not be unreasonably withheld or delayed. All costs and expenses of either party in connection with, and during the course of, the joint control of
the defense of any such Third-Party Claim shall be initially paid by the party that incurs such costs and expenses. Such costs and expenses shall be reallocated and reimbursed in accordance with the
respective indemnification obligations of the parties on a periodic basis (but in no event later than the conclusion of the defense of such Third-Party Claim). 

        4.5    Procedure for Indemnification Not Involving Third-Party Claims.    If any Indemnitee desires to assert against
an Indemnifying Party any claim for indemnification under this Article 4 other than a Third-Party Claim (a "Claim"), the Indemnitee shall deliver
to the Indemnifying Party notice of its demand for satisfaction of such Claim (a "Request"), specifying in reasonable detail the amount of such Claim
and the basis for asserting such Claim. Within 30 days after the Indemnifying Party has been given a Request, the Indemnifying Party shall either (i) satisfy the Claim requested to be
satisfied in such Request by delivering to the Indemnitee payment by wire transfer or a certified or bank cashier's check payable to the Indemnified Party in immediately available funds in an amount
equal to the amount of such Claim, or (ii) notify the Indemnitee that 

13

 

the
Indemnifying Party contests such Claim by delivering to the Indemnitee a Dispute Notice, stating that the Indemnifying Party objects to such Claim and specifying in reasonable detail the basis for
contesting such Claim. Any dispute described in clause (ii) of this Section 4.5 shall be subject to the provisions of Section 5.1. 

        4.6    Insurance Proceeds.    Any amount that an Indemnifying Party is required to pay to an Indemnitee under this
Article 4 shall be reduced by any payment received by such Indemnitee as an insured from an insurance carrier or paid by an insurance carrier on behalf of the insured, net of any applicable
premium adjustment and tax effect, in respect of the indemnified Loss. If the indemnification payment has been made by the Indemnifying Party prior to receipt by the Indemnitee of such insurance
proceeds, the Indemnitee shall promptly refund to the Indemnifying Party such amount as to give effect to the foregoing sentence. 

        4.7    Exclusive Remedies.    Except for the right to pursue equitable remedies, the remedies provided in this
Article 4 shall be deemed the sole and exclusive remedies of the parties with respect to the subject matters of the indemnification provisions of this Article 4. 

        5.    MISCELLANEOUS.    

        5.1    Dispute Resolution.    Resolution of any and all disputes arising from or in connection with this Agreement,
whether based on contract, tort, or otherwise (collectively, "Disputes"), shall be exclusively governed by and settled in accordance with the provisions
of this Section 5.1. The parties hereto shall use their respective commercially reasonable efforts to settle all Disputes without resorting to mediation, arbitration, litigation or other third
party dispute resolution mechanisms. If any Dispute remains unsettled, the parties hereby agree to mediate such Dispute using a mediator reasonably
acceptable to all parties involved in such Dispute. If the parties are unable to resolve such dispute through mediation, each Party will be free to commence litigation proceedings for the resolution
thereof. 

        5.2    Certain Representations.    Each of the parties hereto represents and warrants to the other that (i) it
has the corporate power and authority to execute, deliver and perform this Agreement, (ii) the execution, delivery and performance of this Agreement by it has been duly authorized by all
necessary corporate action, (iii) it has duly and validly executed and delivered this Agreement, (iv) this Agreement is a legal, valid and binding obligation, enforceable against it in
accordance with its terms subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors' rights generally and general equity principles, and
(v) the execution, delivery and performance of this Agreement by it (A) require no action by or in respect of, or filing with, any governmental body, agency, official or authority, other
than compliance with any applicable requirements of the Exchange Act, the Securities Act and any applicable foreign or state securities or Blue Sky laws and (B) do not and will not contravene
or conflict with, or violate any provision of, its certificate of incorporation or bylaws or any law, regulation, judgment, injunction, order or decree binding upon or applicable to it. The
representations and warranties contained in this Section 5.2 shall survive the execution and delivery hereof until the expiration of all applicable statutes of limitations. 

        5.3    No License.    Both parties agree not to use any of other party's trademarks or trade names without the prior
express written consent of the other party. Nothing in this Agreement shall be construed to create in or grant or provide to either Party any license, right, title, interest, or ownership in or to any
intellectual property or other proprietary rights of the other Party. 

        5.4    Complete Agreement.    Except as otherwise set forth in this Agreement, this Agreement and the exhibits hereto
shall constitute the entire agreement between the parties hereto with respect to the subject matter hereof and shall supersede all prior agreements and understandings, whether written or oral, between
the parties with respect to such subject matter. 

14

 

        5.5    Governing Law.    This Agreement shall be governed by and construed in accordance with the laws of the State of
Delaware (without giving effect to the conflict of laws principles thereof) as to all matters, including matters of validity, construction, effect, performance and remedies. 

        5.6    Notices.    Any notice, request, claim, demand or other communication under this Agreement shall be in writing
and shall be delivered in person, by telecopy, by express or overnight mail delivered by a nationally recognized air courier (delivery charges prepaid), or by registered or certified mail (postage
prepaid, return receipt requested) to the respective parties as follows: 

	(i)
	If
to Medarex, to: 

Medarex, Inc.

707 State Road

Princeton, NJ 08540

Attention: President 

With
copies to: 

Medarex, Inc.

707 State Road

Princeton, NJ 08540

Attention: General Counsel AND

Attention: Contracts Administrator 

	(ii)
	If
to Celldex, to: 

Celldex
Therapeutics Inc.

519 Route 173 West

Bloomsbury, NJ 08804

Attention: Chief Financial Officer 

or
to such other address as the party to whom notice is given may have previously furnished to the others in writing in the manner set forth above. Any notice or communication delivered in person
shall be deemed effective on delivery or when delivery is refused. Any notice or communication sent by telecopy or by air courier shall be deemed effective on the first Business Day at the place at
which such notice or communication is received following the day on which such notice or communication was sent. 

        5.7    Amendment and Modification.    This Agreement may not be or modified in any respect except by a written
agreement signed by both of the parties hereto. 

        5.8    Binding Effect; Assignment.    This Agreement and all of the provisions hereof shall be binding upon the
parties hereto and inure to the benefit of the parties hereto and their respective successors and
permitted assigns. Except with respect to a merger or acquisition of either Party with another Person, neither this Agreement nor any of the rights, interests or obligations hereunder shall be
assigned by either party hereto without the prior written consent of the other Party. 

        5.9    No Third-Party Beneficiaries.    The representations, warranties, covenants and agreements set forth in this
Agreement are for the sole benefit of the Parties hereto and their successors and permitted assigns, and they shall not be construed as conferring any rights on any other Parties. 

        5.10    Waiver.    The observance of any term of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively) by the party entitled to enforce such term, but such waiver shall be effective only if it is in writing signed by the party against which such
waiver is to be asserted. Unless otherwise expressly provided in this Agreement, no delay or omission on the part of any party in exercising any right or privilege under this 

15

 

Agreement
shall operate as a waiver thereof, nor shall any waiver on the part of any party of any right or privilege under this Agreement operate as a waiver of any other right or privilege under this
Agreement nor shall any single or partial exercise of any right or privilege preclude any other or further exercise thereof or the exercise of any other right or privilege under this Agreement. No
failure by either party to take any action or assert any right or privilege hereunder shall be deemed to be a waiver of such right or privilege in the event of the continuation or repetition of the
circumstances giving rise to such right unless expressly waived in writing by the party against whom the existence of such waiver is asserted. 

        5.11    Severability.    Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof. Any such prohibition or unenforceability in
any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 

        5.12    Remedies.    Each of Medarex and Celldex shall be entitled to seek enforcement of its rights under this
Agreement specifically, to seek recovery of damages and costs (including reasonable attorneys' fees) caused by any breach of any provision of this Agreement and to exercise all other rights existing
in its favor. Each of Medarex and Celldex acknowledges and agrees that under certain circumstances the breach by Medarex or any Medarex Affiliate or Celldex or any Celldex Affiliate of a term or
provision of this Agreement will materially and irreparably harm the other party, that money damages will accordingly not be an adequate remedy for such breach and that the non-defaulting
party, in its sole discretion and in addition to its rights under this Agreement and any other remedies it may have at law or in equity, may apply to any court of law or equity of competent
jurisdiction (without posting any bond or deposit) for specific performance and/or other injunctive relief in order to enforce or prevent any breach of the provisions of this Agreement. 

        5.13    Performance.    Each of the parties hereto shall use their respective commercially reasonable efforts to cause
to be performed all actions, agreements and obligations set forth herein to be performed by, in the case of Medarex, any Medarex Affiliate, and, in the case of Celldex, any Celldex Affiliate. 

        5.14    References; Construction.    The section and other headings and subheadings contained in this Agreement and
the exhibits hereto are solely for the purpose of reference, are not part of the agreement of the parties hereto, and shall not in any way affect the meaning or interpretation of this Agreement or any
exhibit hereto. All references to days or months shall be deemed references to calendar days or months. Unless the context otherwise requires, any reference to a "Section" "Exhibit" shall be deemed to
refer to a section of this Agreement. The words "hereof," "herein" and "hereunder" and words of similar import referring to this Agreement refer to this Agreement as a whole and not to any particular
provision of this Agreement. Whenever the words "include," or "including" are used in this Agreement, unless otherwise specifically provided, they shall be deemed to be followed by the words "without
limitation." This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting or causing the document to be drafted. 

        5.15    Effectiveness; Expiration.    This Agreement shall become effective upon the time of purchase of the Firm
Shares (as defined in that certain Underwriting Agreement by and among Medarex, Celldex and the underwriters named therein, relating to the Initial Public Offering) (the
"Effective Date"), and shall terminate upon at such time as Medarex and the Medarex Affiliates collectively beneficially own 100% or 0% of the Voting
Stock of Celldex. 

16

 

        5.16    Counterparts.    This Agreement may be executed in two counterparts, each of which shall be deemed an
original, but both of which together shall constitute one and the same instrument. The Agreement may be executed by facsimile signature. 

        [Signature page follows]

17

        IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered as of the date and year first written
above. 

	 	 	CELLDEX THERAPEUTICS, INC.
	

 	
 	

By:	
 	

/s/  ANTHONY S. MARUCCI      
 Anthony S. Marucci

Vice President and Chief Financial Officer
	

 	
 	
MEDAREX, INC.
	

 	
 	

By:	
 	

/s/  W. BRADFORD MIDDLEKAUFF      
 W. Bradford Middlekauff

Senior Vice President, General Counsel and Secretary

 
 

Schedule 3.1(ii)    
    

Timeline of Medarex, Inc.

Corporate Closing Requirements
  for the year ended December 31, 2004  

Medarex, Inc.

2004 Financial Calendar  

	Event
 
	 	Date

	Q1 2004
 
	 	 

	Q1 2004 Draft Form 10-Q and Draft Press Release Sent to Audit Committee	 	Friday, April 30, 2004
	
Q2 2004
 
	
 	

 

	Q2 2004 Draft Form 10-Q and Draft Press Release Sent to Audit Committee	 	Friday, July 30, 2004
	
Q3 2004
 
	
 	

 

	Q3 2004 Draft Form 10-Q and Draft Press Release Sent to Audit Committee	 	Friday, October 29, 2004

 
 
 

Schedule 3.2    
    

Identities of Celldex Initial Board of Directors  

	Medarex Director:	 	Donald L. Drakeman
	

Celldex Director:	
 	

Michael W. Fanger
	

Independent Directors:	
 	

Herbert J. Conrad
	

 	
 	

Raj B. Parekh
	

 	
 	

George O. Elston

2

QuickLinks

AFFILIATION AGREEMENT

Schedule 3.1(ii)

Schedule 3.2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00064-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00064-of-00352.parquet"}]]