Document:

Exhibit 10.161

 

NOVATION AGREEMENT

 

THIS NOVATION AGREEMENT
(this “Agreement”) is made as of August 16, 2004 (the “Novation Date”) by and
among THE IMMUNE RESPONSE CORPORATION, a Delaware corporation, having a place
of business located at 5931 Darwin Court, Carlsbad, California 92008 (“IRC”),
and NOVARX CORPORATION, a Delaware corporation, having a place of business
located at 8866 Caminito Primo Vera, La Jolla, California 92037 (“NovaRx”), and
MASAYOSHI NAMBA, M.D., an individual, having a place of business at The Okayama
Medical Foundation, Okayama University Medical School, 2-5-1 Shikata, Okayama
700-8558, Japan (“Dr. Namba”).

 

WHEREAS, IRC and Dr.
Namba are parties to a License Agreement, entered into on July 6, 1998, as
amended on December 19, 2002 (together the “License Agreement”);

 

WHEREAS, pursuant to
the License Agreement, Dr. Namba granted to IRC, under a certain immortalized
KMST-6 embryonic fibroblast cell line and Dr. Namba’s intellectual property
rights to such cell line, an exclusive worldwide license to develop and
commercialize products for use in the diagnosis, monitoring, prevention and
treatment of cancer; and

 

WHEREAS, Dr. Namba,
IRC and NovaRx desire to effect a novation of the License Agreement as of the
Novation Date, so as to substitute NovaRx for IRC as Licensee under the License
Agreement going forward with all the same rights and obligations as IRC would
have had, on the terms set forth below.

 

NOW, THEREFORE, for
and in consideration of the mutual covenants contained herein, the parties
hereby agree as follows, effective as of the Novation Date:

 

1.                                       Transfer.
The parties hereby agree that NovaRx is substituted in place of IRC in the
License Agreement, with the intent that all of IRC’s rights, title, obligations
and interest, in each case as of and after the Novation Date, in, to and under
the License Agreement shall be transferred to NovaRx.

 

2.                                       Assumption.

 

(a)  In connection with such
substitution, NovaRx hereby undertakes, accepts and assumes all of IRC’s
rights, title, duties, liabilities, covenants, obligations and interest in, to
and under the License Agreement and shall hereafter perform and discharge each
and every duty, liability, covenant and obligation performable by IRC under the
License Agreement (but for the novation under this Agreement), in each case as
of and after the Novation Date, in accordance with the terms and conditions of
the License Agreement.

 

(b)  NovaRx shall perform the
obligations of IRC under the License Agreement and NovaRx shall be bound by all
of the terms and conditions of the License Agreement in

 

 

every way in as much as NovaRx is the substituted party thereto as
Licensee as of the Novation Date.

 

3.                                       Novation.

 

(a)  Notwithstanding anything to
the contrary in the License Agreement, Dr. Namba remises, releases and forever
discharges IRC, as well as its shareholders, directors, officers, employees,
agents and representatives, from all obligations arising under the License
Agreement, and from all manner of actions, causes of action, suits, debts, damages,
expenses, claims and demands whatsoever that Dr. Namba has or may have against
any of the foregoing entities, arising out of or in any way connected to the
License Agreement as of and after the Novation Date.

 

(b)  Notwithstanding anything to
the contrary in the License Agreement, IRC remises, releases and forever
discharges Dr. Namba, as well as his agents and representatives, from all
obligations arising under the License Agreement, and from all manner of
actions, causes of action, suits, debts, damages, expenses, claims and demands
whatsoever that IRC has or may have against any of the foregoing entities,
arising out of or in any way connected to the License Agreement as of and after
the Novation Date.

 

(c)  Dr. Namba recognizes NovaRx
as IRC’s successor-in-interest in and to the License Agreement.  NovaRx by this Agreement becomes entitled to
all right, title and interest of IRC in and to the License Agreement in as much
as NovaRx is the substituted party to the License Agreement as of and after the
Novation Date.  As of and after the
Novation Date, the term “Licensee”, as used in the License Agreement, shall
refer to NovaRx.  Dr. Namba and NovaRx
shall be bound by the terms of the License Agreement in every way as if NovaRx
is named in the novated License Agreement in place of IRC as a party
thereto.  Dr. Namba represents and
warrants to IRC and NovaRx that there is no payment or other liability of IRC
to Dr. Namba which has accrued and remains outstanding as of the Novation Date.

 

4.                                       Indemnification.

 

(a)  NovaRx shall indemnify and
hold IRC harmless from any and all claims, demands, causes of action, losses,
costs (including, without limitation, reasonable court costs and attorneys’
fees), liabilities or damages of any kind or nature whatsoever that IRC may
sustain to third parties (not including IRC affiliates) by reason of NovaRx’s
breach or non-fulfillment (whether by action or inaction), at any time, of any
covenant or obligation under the License Agreement to be performed by NovaRx
thereunder as of and after the Novation Date.

 

(b)  IRC shall indemnify and hold
NovaRx harmless from any and all claims, demands, causes of action, losses,
costs (including, without limitation, reasonable court costs and attorneys’
fees), liabilities or damages of any kind or nature whatsoever that NovaRx may
sustain to third parties (not including NovaRx affiliates) by reason of IRC’s
breach or non-fulfillment (whether by action or inaction), at any time, of any
covenant or obligation

 

 

under the License Agreement to be performed by IRC thereunder before
the Novation Date.

 

(c)  The indemnification
obligations under this Section shall be conditioned upon the indemnified party
giving notice to indemnifying party promptly after the indemnified party
receives notice of the claim and shall survive the expiration or termination of
the License Agreement.

 

5.                                       Notices.  Any notice, demand, consent, approval,
direction, agreement or other communication required or permitted hereunder or
under any other documents in connection herewith shall be in writing and shall
be directed as follows:

 

	
  If to Dr. Namba:

  	
  Masayoshi Namba, M.D. & Ph.D.

  
	
   

  	
  The Okayama Medical Foundation

  
	
   

  	
  Okayama University Medical School

  
	
   

  	
  2-5-1 Shikata

  
	
   

  	
  Okayama 700-8558

  
	
   

  	
  Japan

  
	
   

  	
   

  
	
  If to NovaRx:

  	
  NovaRx Corporation

  
	
   

  	
  8866 Caminito Primo Vera

  
	
   

  	
  La Jolla, California 92037

  
	
   

  	
  Attention:  Habib Fakhrai,
  President

  
	
   

  	
   

  
	
  with a copy to:

  	
  Morrison & Foerster

  
	
   

  	
  3811 Valley Centre Drive, Suite 500

  
	
   

  	
  San Diego, California 92130-2332

  
	
   

  	
  Attention:  Jay de Groot

  
	
   

  	
   

  
	
  If to IRC:

  	
  The Immune Response Corporation

  
	
   

  	
  5931 Darwin Court

  
	
   

  	
  Carlsbad, California 92008

  
	
   

  	
  Attention: Michael K. Green

  
	
   

  	
   

  
	
  with a copy to:

  	
  Heller Ehrman White & McAuliffe LLP

  
	
   

  	
  4350 La Jolla Village Drive, 7th Floor

  
	
   

  	
  San Diego, California 92122

  
	
   

  	
  Attention:  Hayden J. Trubitt

  

 

All notices, demands, requests, consents or approvals that may or are
required to be given by any party to another shall be in writing and shall be
deemed given upon the earliest of (i) when actually received by the other
party; (ii) when served personally; (iii) two business day after being sent by
nationally-recognized overnight courier with return receipt; or (iv) eight
business days after being sent by United States registered or certified mail,
postage prepaid, return receipt requested and addressed to such other party at
the

 

 

address specified above or at such other place as such other party may
from time to time designate by notice in writing to the other parties hereto.

 

6.                                       Miscellaneous.

 

(a)  Each provision of this
Agreement shall extend, bind and inure to the benefit of Dr. Namba, IRC and
NovaRx and their respective successors and assigns, including without
limitation successors to NovaRx of the License Agreement.

 

(b)  This Agreement contains the
entire agreement between Dr. Namba, IRC, and NovaRx regarding the subject
matter hereunder, and all prior negotiations and agreements are merged in this
Agreement. This Agreement may not be changed, modified or discharged, in whole
or in part, except by a written instrument executed by the party against whom
enforcement of the change, modification or discharge is sought.

 

(c)  This Agreement may be
executed in any number of counterparts, each of which upon execution and
delivery shall be considered an original for all purposes; provided, however,
all such counterparts shall, together, upon execution and delivery, constitute
one and the same instrument.

 

(d)  The Agreement shall be
governed by and construed in accordance with the laws of the State of
California, without regard to the conflicts of law principles thereof.

 

(e)  If any term or provision of
this Agreement or any application thereof shall be invalid or unenforceable,
the remainder of this Agreement and any other application of such term shall
not be affected thereby.

 

(f) Each party agrees to take or cause to be taken such further
actions, and to execute, deliver and file or cause to be executed, delivered
and filed such further documents and instruments, and to obtain such consents,
as may be reasonably required or requested by the other party(ies) in order to
effectuate fully the purposes, terms and conditions of this Agreement.

 

7.                                       All Parties
Consent.  Each of IRC, NovaRx and Dr.
Namba consent to all of the provisions of this Agreement.

 

 

IN WITNESS WHEREOF,
the parties have executed this Agreement the day and year first above written.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  MASAYOSHI NAMBA, M.D.

  
	
   

  	
   

  
	
   

  	
  NOVARX CORPORATION

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE IMMUNE RESPONSE CORPORATION

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TitleExhibit
10.1

 

NINTH AMENDMENT AGREEMENT

 

THIS NINTH AMENDMENT AGREEMENT (this “Agreement”) is made and entered
into as of the 16th day of August, 2004, by and among FLEET CAPITAL CORPORATION
(“Lender”), a Rhode Island corporation with an office at 200 Glastonbury
Boulevard, Glastonbury, Connecticut 06033; and UNITED INDUSTRIAL CORPORATION, a
Delaware  corporation, and the following
of its subsidiaries; AAI CORPORATION (“AAI”), a Maryland corporation,
DETROIT STOKER COMPANY, a Michigan corporation; AAI ENGINEERING SUPPORT INC., a
Maryland corporation, and AAI/ACL TECHNOLOGIES, INC., a Maryland corporation
(each a “Borrower” and collectively the “Borrowers”). Capitalized
terms used, but not defined, herein shall have the meanings given to such terms
in the Credit Agreement (defined below).

 

WHEREAS,
the Borrowers and the Lender are parties to the Loan and
Security Agreement, dated as of June 28, 2001, as amended by the Waiver,
Amendment and Consent Agreement dated as of March 6, 2002, the Second Amendment
and Consent Agreement dated as of June 28, 2002, the Third Amendment and Waiver
Agreement dated as of March 21, 2003, the Fourth Amendment to Loan Agreement
dated as of March 31, 2003, the Fifth Amendment Agreement dated as of September
30, 2003, the Sixth Amendment Agreement dated as of November 17, 2003, the
Seventh Amendment Agreement dated as of December 31, 2003 and the Eighth
Amendment Agreement dated as of May 18, 2004 (as amended, the “Credit
Agreement”); and

 

WHEREAS,
the Borrowers have requested and the Lender has agreed to
amend the Credit Agreement, all on the terms and conditions set forth herein.

 

NOW
THEREFORE, in consideration of the premises, and in reliance
thereon, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree
as follows:

 

Amendment.
Subject to the satisfaction in full, on or prior to the Agreement Effective
Date, of the conditions precedent set forth in Section 2 below, the Credit
Agreement is hereby amended as follows:

 

Clause (iii) of Section 8.2.7 of the Credit Agreement is amended and
restated in its entirety to read as follows:

 

(iii) stock repurchases
in an aggregate amount not to exceed $30,000,000 during the term of this
Agreement.

 

Conditions to Effectiveness of Agreement. This Agreement shall become effective as of
August 16, 2004 only when the following conditions shall have been satisfied
(the date of satisfaction of such conditions being referred to herein as the “Agreement
Effective Date”):

 

The Lender shall have
executed this Agreement and shall have received a copy of this Agreement duly
executed by the Borrowers.

 

 

The
Borrowers shall have paid to counsel for the Lender the amount of reasonable
fees and disbursements owed to such counsel in connection with this Agreement
and matters related hereto.

 

The Lender shall have received such other
information, approvals, opinions, documents or instruments as it may reasonably
request.

 

Representations and Warranties. In order to induce the Lender to enter into
this Agreement, the Borrowers jointly and severally represent and warrant to
the Lender that, as of the Agreement Effective Date, after giving effect to the
effectiveness of this Agreement, the following statements are true and correct
in all material respects:

 

Authorization
of Agreements. The
execution and delivery of this Agreement by each Borrower and its performance
under the Credit Agreement as amended by this Agreement (the “Amended
Agreement”) are within each such Borrower’s corporate powers and have been
duly authorized by all necessary corporate action on the part of each such
Borrower.

 

No
Conflict. The
execution and delivery by each Borrower of this Agreement and the performance
by each Borrower of the Amended Agreement do not contravene any such Borrower’s
certificate of incorporation or by laws or any other contractual restriction
where such a contravention has a reasonable possibility of having a Material
Adverse Effect or contravening any law or governmental regulation or court
decree or order binding on or affecting any such Borrower.

 

Binding
Obligation. This
Agreement has been duly executed and delivered by each Borrower and this
Agreement and the Amended Agreement constitute the legal, valid and binding
obligations of each Borrower, enforceable against each Borrower in accordance
with their respective terms, except as may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws relating to or limiting
creditors’ rights generally and by general principles of equity.

 

Governmental
Approval, Regulation, etc. No authorization or approval or other action by, and no notice to or
filing with, any governmental authority or regulatory body or any other Person
is required for the due execution, delivery or performance of this Agreement by
any Borrower.

 

Incorporation
of Representations and Warranties from Credit Agreement. Other than as amended hereby each of the
representations and warranties set forth in Section 7 of the Credit Agreement
is true and correct.

 

Acknowledgement. Each Borrower acknowledges and agrees that
each of the Security Documents to which it is a party or otherwise bound shall
continue in full force and effect. Each Borrower hereby agrees and confirms
that each Security Document to which it is a party or otherwise bound and all
Collateral encumbered thereby will continue to guaranty or secure, as the case
may be, the payment and performance of all obligations guaranteed or secured
thereby, as the case may be, and that none of the Borrowers has any defense,
offset, counterclaim

 

2

 

or
right of recoupment with respect to the Obligations of the Borrowers under the
Amended Agreement.

 

Miscellaneous.

 

Effect
on the Credit Agreement and the Other Loan Documents. Except as specifically set forth herein,
the terms, provisions and conditions of the Credit Agreement and the other Loan
Documents shall remain in full force and effect and are hereby ratified and
confirmed and the Borrowers remain bound to pay and perform their obligations
thereunder.

 

Applicable
Law. THIS AGREEMENT
SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS
OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO SUCH LAWS RELATING TO
CONFLICTS OF LAWS.

 

Headings. The various headings of this Agreement are
inserted for convenience only and shall not affect the meaning or
interpretation of this Agreement or any provision hereof.

 

Counterparts
and Incorporation.
This Agreement may be executed by the parties hereto in several counterparts
and by the different parties on separate counterparts, each of which shall be
deemed to be an original and all of which shall constitute together but one and
the same instrument. Following execution and delivery of this Agreement, any
reference to the Credit Agreement shall be deemed a reference to such document
as hereby amended.

 

Severability. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such provision and
such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions of this
Agreement or affecting the validity or enforceability of such provisions in any
other jurisdiction.

 

[THE REMAINDER OF THIS
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SIGNATURES ON NEXT PAGE]

 

3

 

IN WITNESS
WHEREOF, this Ninth Amendment Agreement has been duly executed and delivered as
of the day and year first above written.

 

	
   

  	
  FLEET CAPITAL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Matthew
  Bourgeois

  
	
   

  	
  Name: Matthew Bourgeois

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  UNITED INDUSTRIAL
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Frederick
  M. Strader

  
	
   

  	
  Name: Frederick M. Strader

  
	
   

  	
  Title: President and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  AAI CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Frederick
  M. Strader

  
	
   

  	
  Name: Frederick M. Strader

  
	
   

  	
  Title: President and Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  DETROIT STOKER COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Frederick
  M. Strader

  
	
   

  	
  Name: Frederick M. Strader

  
	
   

  	
  Title: Chief Executive
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  AAI ENGINEERING SUPPORT
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Frederick
  M. Strader

  
	
   

  	
  Name: Frederick M. Strader

  
	
   

  	
  Title: Chief Executive
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  AAI/ACL TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Frederick
  M. Strader

  
	
   

  	
  Name: Fredrick M. Strader

  
	
   

  	
  Title: Chief Executive Officer

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