Agreement

Effective Date: May 01, 1995

Parties:
Eden Bioscience
Sectors: Chemicals
EXHIBI 10!1
EXC"#SI$E "ICE%SE &'(EEME%
HIS &'(EEME%, effective as of the first )ay of May 1995 *herei+after ,Effective Date,-, .y a+)
.et/ee+ C0(%E"" (ESE&(CH 10#%D&I0%, I%C!, havi+2 offices at Cor+ell B3si+ess 4
ech+olo2y Par5, 60 hor+/oo) Drive, S3ite 105, Ithaca, %e/ 7or5 18950, herei+after referre) to as
,10#%D&I0%, a+) EDE% BI0SCIE%CE C0(P0(&I0%, havi+2 offices at 5:95 %!E! Mi+)er,
Po3ls.o, ;ashi+2to+ 99<:0, herei+after referre) to as ,"ICE%SEE,!
; I % E S S E H H & :
;HE(E&S, #+ite) States Pate+t &==licatio+ %o! 09>600,:68, e+title) ,Elicitors of the Hy=erse+sitive
(es=o+se i+ Pla+ts, *C(1 D?11:6-, /as file) i+ the #!S! Pate+t 4 ra)emar5 0ffice o+ 1e.r3ary 6,
1998, a co=y of /hich is a==e+)e) as [email protected] & a+) Pate+t &==licatio+ %o! 09>600,:68 is a
co+ti+3atio+ of #!S! Pate+t &==licatio+ %o! 0:>90:,9<5 file) o+ 1 Se=tem.er 1996 a+) the forei2+
eA3ivale+t PC>#S9<>0B68< /as file) o+ <0 C3+e 199< coveri+2 all EPC co3+tries a+) Ca=a+D a+)
;HE(E&S, #+ite) States Pate+t &==licatio+ %o! 09>0B6,068, e+title) ,Pse3)omo+as Syri+2ae =v!
syri+2ae hr=E 'e+e *C(1 D?1865-, /as file) i+ the #!S! Pate+t 4 ra)emar5 0ffice o+ 1: May 199<,
a co=y of /hich is a==e+)e) as [email protected] B a+) the forei2+ eA3ivale+t PC>#S98>05018 /as file) o+ 5
May 1998 coveri+2 all EPC co3+tries a+) Ca=a+D a+)
;HE(E&S, 10#%D&I0% i+te+)s to file a #+ite) States Pate+t &==licatio+ e+title) ,Har=i+?
I+)3ce) Systemic &cA3ire) (esista+ce *S&(- to Pla+t Patho2e+s,, +o/ I+ve+tio+ Disclos3re C(1 D?
1B58, a co=y of /hich is a==e+)e) as [email protected] C, a+) 10#%D&I0% i+te+)s to file forei2+
eA3ivale+ts, /here a==ro=riate, of sai) I+ve+tio+ Disclos3reD a+)
;HE(E&S, 10#%D&I0% i+te+)s to file a #+ite) States Pate+t &==licatio+ e+title) ,Er/i+a
chrysa+themi Elicitor of the Hy=erse+sitive (es=o+se i+ Pla+ts,, +o/ I+ve+tio+ Disclos3re C(1 D?
1:<6, a co=y of /hich is a==e+)e) as [email protected] D, a+) 10#%D&I0% i+te+)s to file forei2+
eA3ivale+ts, /here a==ro=riate, of sai) I+ve+tio+ Disclos3reD a+)
;HE(E&S, the i+ve+tio+s )isclose) a+) claime) i+ [email protected] &, B, C a+) D are, or /ill .e assi2+e) to
10#%D&I0% a+) 10#%D&I0% is a /holly o/+e) s3.si)iary cor=oratio+ of Cor+ell #+iversity
a+) hol)s the o/+ershi= i+terests of =ate+ts iss3e) o+ i+ve+tio+s ma)e .y Cor+ell #+iversityFs staff
a+) a)mi+isters lice+ses i+ a ma++er co+siste+t /ith the =ate+t =olicy of Cor+ell #+iversityD a+)
;HE(E&S, 10#%D&I0% re=rese+ts that it is, or /ill .e assi2+ee of the a.ove?i)e+tifie) =ate+t
a==licatio+s a+) a+y =ate+ts iss3i+2 thereo+ a+) has the ri2ht to 2ra+t lice+ses 3+)er sai) =ate+t
a==licatio+s a+) =ate+ts iss3i+2 thereo+D a+)
;HE(E&S, the /or5 lea)i+2 to the i+ve+tio+s )isclose) a+) to .e claime) i+ [email protected] &, B, C a+) D
/ere s3==orte) i+ =art .y a+ a2e+cy of the #!S! 'over+me+t,
GHI DESI'%&ES P0(I0%S 01 HIS D0C#ME% H& H&$E BEE% 0MIED P#(S#&%
0 & (EJ#ES 10( C0%1IDE%I&" (E&ME% 1I"ED SEP&(&E"7 ;IH HE
C0MMISSI0%!
P&'E 1
6
10#%D&I0% is o.li2ate) to com=ly /ith the #!S! 0ffice of Ma+a2eme+t 4 B3)2ets Circ3lar %o!
&?168, or <: C1( Part 801D a+)
;HE(E&S, Drs! Steve+ Beer, &la+ Collmer a+) their collea23es at Cor+ell #+iversity have
)evelo=e) =ro=rietary .iolo2ical materials a+) =rocesses relati+2 to the fiel) of =la+t )isease a+) some
of these materials a+) =rocesses are or /ill .e claime) a+) covere) i+ sai) =ate+t a==licatio+s of
[email protected] &, B, C a+) D a+) other s3ch materials a+) =rocesses are +ot claime) i+ sai) =ate+t
a==licatio+s .3t are =ro=rietary to 10#%D&I0%D a+)
;HE(E&S, "ICE%SEE is )esiro3s of sec3ri+2 a lice+se 3+)er the )iscoveries a+) i+ve+tio+s
em.o)ie) i+ sai) =ate+t a==licatio+s a+) =ate+ts iss3i+2 thereo+ as /ell as the )iscoveries a+)
i+ve+tio+s em.o)ie) i+ sai) relate) =ro=rietary .iolo2ical =rocesses a+) materials to ma5e, have
ma)e, 3se a+) sell "ice+se) Pro)3cts i+ the #+ite) States a+) thro32ho3t the /orl)D a+)
;HE(E&S, 10#%D&I0% is /illi+2 to 2ra+t a lice+se i+ sai) =ate+t a==licatio+s a+) a+y =ate+ts
iss3i+2 thereo+ as /ell as the )iscoveries a+) i+ve+tio+s em.o)ie) i+ sai) relate) =ro=rietary
.iolo2ical =rocesses a+) materials to "ICE%SEE 3=o+ the terms a+) co+)itio+s herei+after set forthD
a+)
%0;, HE(E10(E, i+ co+si)eratio+ of the cove+a+ts a+) o.li2atio+s herei+after set forth, the
=arties hereto here.y a2ree as follo/s:
I! DE1I%II0%S
he follo/i+2 )efi+itio+s /ill a==ly thro32ho3t this a2reeme+t:
1! "ice+se) Pate+t &==licatio+ shall mea+ #!S! Pate+t &==licatio+ Serial %o! 09>600,:68 attache) as
[email protected] & a+) a+y co+ti+3atio+, co+ti+3atio+?i+?=art, or )ivisio+al a==licatio+s thereof as /ell as
forei2+ co3+ter=arts thereof a+) #!S! Pate+t &==licatio+ Serial %o! 09>0B6,068 attache) as [email protected] B
a+) a+y co+ti+3atio+, co+ti+3atio+?i+?=art, or )ivisio+al a==licatio+s thereof as /ell as forei2+
co3+ter=arts thereof a+) a+y #!S! Pate+t &==licatio+ .ase) o+ I+ve+tio+ Disclos3re C(1 D?1B58
attache) as [email protected] C a+) a+y co+ti+3atio+, co+ti+3atio+?i+?=art, or )ivisio+al a==licatio+s thereof as
/ell as forei2+ co3+ter=arts thereof a+) a+y #!S! Pate+t &==licatio+ .ase) o+ I+ve+tio+ Disclos3re
C(1 D?1:<6 attache) as [email protected] D a+) a+y co+ti+3atio+, co+ti+3atio+?i+?=art, or )ivisio+al
a==licatio+s thereof as /ell as forei2+ co3+ter=arts thereof!
6! "ice+se) Pate+t shall mea+ a+y #!S! Pate+ts iss3i+2 from a "ice+se) Pate+t &==licatio+, a+) all
reiss3es thereof as /ell as forei2+ co3+ter=arts thereof!
GHI DESI'%&ES P0(I0%S 01 HIS D0C#ME% H& H&$E BEE% 0MIED P#(S#&%
0 & (EJ#ES 10( C0%1IDE%I&" (E&ME% 1I"ED SEP&(&E"7 ;IH HE
C0MMISSI0%!
P&'E 6
<
<! "ice+se) Biolo2ical Material shall mea+ that .iolo2ical material i+cl3)i+2 2e+es, =rotei+s a+)
=e=ti)e fra2me+ts, e@=ressio+ systems, cells a+) a+ti.o)ies )evelo=e) i+ the Cor+ell #+iversity
"a.oratories of Drs! Steve+ Beer, &la+ Collmer a+) their collea23es a+) /hich is )irectly relate) to
the i+ve+tio+s )escri.e) i+ "ice+se) Pate+ts or "ice+se) Pate+t &==licatio+s a+) /hich is liste) a+)
)escri.e) i+ [email protected] E or a))e) to [email protected] E at a later time .y /ritte+ m3t3al a2reeme+t of the =arties!
10#%D&I0% a+) "ICE%SEE ac5+o/le)2e that, to the .est of their 5+o/le)2e, sai) list of [email protected]
E is com=lete!
8! "ice+se) Pro)3cts shall mea+ a+y =ro)3ct or 3se claime) i+ a "ice+se) Pate+t &==licatio+ or
"ice+se) Pate+t or a+y =ro)3ct or 3se /hich i+cor=orates or other/ise 3tiliEes "ice+se) Biolo2ical
Material!
5! "ice+se 7ear shall mea+ each t/elve *16- mo+th =erio) .e2i++i+2 o+ the Effective Date of this
&2reeme+t first /ritte+ a.ove a+) thereafter o+ the a++iversary )ate thereof!
B! "ICE%SEE shall mea+ the a.ove +ame) com=a+y a+) a+y of its affiliates i+ /hich it o/+s or
co+trols at least 50K of the voti+2 stoc5!
:! %et Sales Price shall mea+ GHI!
II! '(&%
S3.Lect o+ly to the ri2hts of a+) o.li2atio+s to the #!S! 'over+me+t as set forth i+ #!S! 0ffice of
Ma+a2eme+t 4 B3)2et Circ3lar &?168 or <: C1( Part 801D
he 10#%D&I0% here.y 2ra+ts to the "ICE%SEE for the term set forth .elo/ a+) 3+)er the
royalty .asis set forth .elo/, a+ e@cl3sive lice+se to the "ice+se) Pate+t &==licatio+s, "ice+se)
Pate+ts a+) "ice+se) Biolo2ical Materials to ma5e, have ma)e, 3se a+) sell "ice+se) Pro)3cts i+ the
#+ite) States a+) thro32ho3t the /orl)! he term ,e@cl3sive lice+se, as 3se) herei+a.ove shall mea+
that 10#%D&I0% shall +ot iss3e a lice+se to a+other, /ithi+ the =erio) of e@cl3sivity set forth
herei+after or a+y a2ree) 3=o+ e@te+sio+ thereof! 10#%D&I0% shall +ot ma5e, have ma)e, 3se or
sell "ice+se) Pro)3cts! Cor+ell #+iversity researchers shall
GHI DESI'%&ES P0(I0%S 01 HIS D0C#ME% H& H&$E BEE% 0MIED P#(S#&%
0 & (EJ#ES 10( C0%1IDE%I&" (E&ME% 1I"ED SEP&(&E"7 ;IH HE
C0MMISSI0%!
P&'E <
8
retai+ the royalty?free ri2ht to 3se "ice+se) Pate+t &==licatio+s, "ice+se) Pate+ts a+) "ice+se)
Biolo2ical Materials for i+ter+al research =3r=oses a+) s3ch 3se shall +ot =rohi.it s3ch researchers
from =ro)3ci+2 i+ve+tio+s a+), if s3ch i+ve+tio+s are ma)e solely .y sai) Cor+ell #+iversity
researchers, s3ch i+ve+tio+s shall .e the =ro=erty of 10#%D&I0%! If s3ch i+ve+tio+s are ma)e
Loi+tly .y sai) Cor+ell #+iversity researchers a+) em=loyees of "ICE%SEE, s3ch i+ve+tio+s shall .e
the Loi+t =ro=erty of 10#%D&I0% a+) "ICE%SEE!
III! 0 H&$E M&DE
he ri2ht of "ICE%SEE to ma5e "ice+se) Pro)3cts i+cl3)es the ri2ht to have ma)e .y co+tract /ith
thir) =arties /ithi+ a co3+try /here "ICE%SEE is lice+se) a+) =ate+t =rotectio+ for "ice+se)
Pro)3cts e@ists or is =e+)i+2! S3ch co+tract3al arra+2eme+ts /ith thir) =arties shall .e s3.Lect to a+)
co+)itio+e) 3=o+ a==ro=riate s3=ervisio+ a+) A3ality ass3ra+ce a+) co+trol of the thir) =arty .y
"ICE%SEE a+) the thir) =arty shall res=ect all ri2hts of 10#%D&I0% a+) to s3==ly all =ro)3ctio+
of "ice+se) Pro)3cts e@cl3sively to "ICE%SEE or its )esi2+ee*s-!
I$! P&7ME%S M&DE I% C0%SIDE(&I0% 01 HE EXEC#I0% 01 HIS "ICE%SE
&'(EEME%
10#%D&I0% here.y ac5+o/le)2es a =ayme+t, )3e 3=o+ a==roval of this &2reeme+t .y the Boar)
of Directors of 10#%D&I0% *or at least .y the E@ec3tive Committee of that Boar)-, of fo3r
h3+)re) tho3sa+) *800,000- eA3ity shares of commo+ stoc5 i+ "ICE%SEE /hich amo3+t eA3als seve+
a+) fo3rtee+ h3+)re)ths =erce+t *:!18K- of "ICE%SEEFS total iss3e) stoc5 as of Effective Date, ma)e
.y "ICE%SEE as a co+si)eratio+ for e+teri+2 i+to this &2reeme+t, /hich s3m /ill +ot .e co+si)ere)
as a+ a)va+ce =ayme+t o+ royalties )3e here3+)er! It is 3+)erstoo) .y the =arties that sai) eA3ity
shares i+ "ICE%SEE hel) .y 10#%D&I0% shall .e +o+?voti+2 a+) 10#%D&I0% shall ta5e +o
ma+a2eme+t role i+ "ICE%SEE!
If sai) a==roval .y the Boar) of Directors of 10#%D&I0% is +ot o.tai+e) /ithi+ si@ *B- mo+ths of
the Effective Date, 10#%D&I0% a+) "ICE%SEE a2ree to re+e2otiate alter+ative fi+a+cial terms as
co+si)eratio+ for e+teri+2 i+to this &2reeme+t!
he =arties ac5+o/le)2e that "ICE%SEE may, 3=o+ termi+atio+ of this &2reeme+t, ca+cel sai) eA3ity
shares accor)i+2 to the follo/i+2 sche)3le:
1- #=o+ termi+atio+ of this &2reeme+t at a+y time 3= to GHI from
the Effective Date, "ICE%SEE may ca+cel 3= to GHI of the total
eA3ity
GHI DESI'%&ES P0(I0%S 01 HIS D0C#ME% H& H&$E BEE% 0MIED P#(S#&%
0 & (EJ#ES 10( C0%1IDE%I&" (E&ME% 1I"ED SEP&(&E"7 ;IH HE
C0MMISSI0%!
P&'E 8
5
shares /hich /ere iss3e) to 10#%D&I0% a+) a==rove) .y
10#%D&I0%FS Boar) of Directors!
6- #=o+ termi+atio+ of this &2reeme+t at a+y time from GHI from
the Effective Date 3= to GHI, "ICE%SEE may ca+cel 3= to GHI
of the total eA3ity shares /hich /ere iss3e) to 10#%D&I0% a+)
a==rove) .y 10#%D&I0%FS Boar) of Directors!
<- #=o+ termi+atio+ of this &2reeme+t at a+y time from GHI 3+til
GHI "ICE%SEE may ca+cel 3= to GHI of the total eA3ity shares
/hich /ere iss3e) to 10#%D&I0% a+) a==rove) .y 10#%D&I0%Fs
Boar) of Directors!
8- #=o+ termi+atio+ of this &2reeme+t at a+y time from GHI to
GHI, "ICE%SEE may ca+cel 3= to GHI of the total eA3ity
shares /hich /ere iss3e) to 10#%D&I0% a+) a==rove) .y
10#%D&I0%FS Boar) of Directors!
5- #=o+ termi+atio+ of this &2reeme+t at a+y time from GHI to
GHI, "ICE%SEE may ca+cel 3= to GHI of the total eA3ity
shares /hich /ere iss3e) to 10#%D&I0% a+) a==rove) .y
10#%D&I0%FS Boar) of Directors!
B- #=o+ termi+atio+ of this &2reeme+t at a+y time after GHI
"ICE%SEE may +ot ca+cel a+y of the total eA3ity shares /hich
/ere iss3e) to 10#%D&I0% a+) a==rove) .y 10#%D&I0%FS Boar) of
Directors!
&s a))itio+al co+si)eratio+, "ICE%SEE /ill f3+) research activity i+ the Cor+ell #+iversity
la.oratories of Dr! Steve+ Beer a+) his collea23es at a level +ot less tha+ GHI i+ "ice+se 7ear 1 a+) GHI
i+ each of "ice+se 7ear 6 a+) "ice+se 7ear <! Sai) f3+)i+2 shall .e co+ti+2e+t 3=o+ a m3t3ally a2ree)
/or5=la+ a+) .3)2et for sai) research activity a+) s3ch amo3+ts are i+cl3sive of all costs i+cl3)i+2
)irect a+) i+)irect costs!
&+y i+ve+tio+s ma)e 3si+2 the research f3+)i+2, )escri.e) a.ove, =rovi)e) to Dr! Beer a+) his
collea23es .y "ICE%SEE /hich are )omi+ate) .y the claims of "ice+se) Pate+t &==licatio+s or
"ice+se) Pate+ts shall, to the e@te+t =ossi.le co+si)eri+2 10#%D&I0%FS o.li2atio+s to thir) =arties,
.e s3.Lect to the terms a+) co+)itio+s of this &2reeme+t a+) shall .e i+cl3)e) herei+ .y letter
ame+)me+t to this &2reeme+t!
&+y i+ve+tio+s ma)e 3si+2 the research f3+)i+2 =rovi)e) to Dr! Beer .y "ICE%SEE /hich are +ot
)omi+ate) .y the claims of "ice+se) Pate+t &==licatio+s or
GHI DESI'%&ES P0(I0%S 01 HIS D0C#ME% H& H&$E BEE% 0MIED P#(S#&%
0 & (EJ#ES 10( C0%1IDE%I&" (E&ME% 1I"ED SEP&(&E"7 ;IH HE
C0MMISSI0%!
P&'E 5
B
"ice+se) Pate+ts shall +ot .e s3.Lect to the terms a+) co+)itio+s of this &2reeme+t! 10#%D&I0%
shall =rovi)e "ICE%SEE the first o==ort3+ity to +e2otiate to o.tai+ a+ e@cl3sive lice+se i+ s3ch
i+ve+tio+s a+) /ill +ot offer a+y thir) =arty a+y lice+se havi+2 more favora.le terms a+) co+)itio+s
3+less those terms a+) co+)itio+s have first .ee+ offere) to a+) ref3se) .y "ICE%SEE!
$! 10(EI'% P&E%S &%D P&7ME% 01 C0SS
&s the o==ort3+ity to co+ti+3e =rosec3tio+ of forei2+ co3+ter=art a==licatio+s of #+ite) States Pate+t
&==licatio+s %o! 09>600,:68 a+) %o! 09>0B6,068 a+) to file forei2+ co3+ter=art a==licatio+s o+ the
#!S! =ate+t a==licatio+s to .e file) o+ I+ve+tio+ Disclos3res C(1 D?1B58 a+) C(1 D?1:<6 e@ists,
"ICE%SEE may )esi2+ate forei2+ co3+tries /here co3+ter=art a==licatio+s shall .e file)! itle to s3ch
forei2+ =ate+t a==licatio+s shall .e i+ 10#%D&I0%! "ICE%SEE a2rees to =ay for all e@=e+ses
i+c3rre) i+ the =re=aratio+, fili+2, =rosec3tio+, re+e/al a+) co+ti+3atio+ of "ice+se) Pate+ts a+)
"ice+se) Pate+t &==licatio+s i+ sai) )esi2+ate) co3+tries i+cl3)i+2 all ta@es, official fees a+)
attor+eyFs fees, as /ell as a GHI a)mi+istrative fee assesse) .y 10#%D&I0%! %ot/ithsta+)i+2 the
fore2oi+2, "ICE%SEE may elect i+ /riti+2 to .e release) from its lice+se i+ a+y of the "ice+se)
Pate+ts a+) &==licatio+s i+ forei2+ co3+tries at a+y time after i+itial fili+2 costs have .ee+ =ai), i+
/hich eve+t it shall thereafter have +o o.li2atio+ to reim.3rse 10#%D&I0% for a+y f3t3re e@=e+ses
relati+2 to s3ch =ate+t or =ate+t a==licatio+! #=o+ a==roval of this &2reeme+t .y the 10#%D&I0%Fs
Boar) of Directors, "ICE%SEE shall reim.3rse 10#%D&I0% for all )irect a+) )oc3me+ta.le
forei2+ =ate+t costs i+c3rre) to )ate, =l3s sai) GHI a)mi+istrative fee assesse) .y 10#%D&I0%!
$I! P&7ME% 01 #!S! P&E% C0SS
;here re+e/al fees are )3e o+ a "ice+se) Pate+t i+ the #+ite) States a+) "ICE%SEE remai+s
e@cl3sively lice+se) or is the sole +o+e@cl3sive lice+see, "ICE%SEE a2rees to reim.3rse
10#%D&I0% for the costs of sai) re+e/al /ithi+ thirty *<0- )ays of %otice thereof to "ICE%SEE
.y 10#%D&I0%!
;here "ice+se) Pate+t &==licatio+s are =e+)i+2 i+ the #+ite) States "ICE%SEE a2rees to =ay all
)irect a+) )oc3me+ta.le =rosec3tio+ costs for s3ch "ice+se) Pate+t &==licatio+s at least thro32h a+
a==eal to the #!S! Pate+ts 4 ra)emar5 0ffice Boar) of &==eals =l3s a GHI a)mi+istrative fee assesse)
.y 10#%D&I0%!
%ot/ithsta+)i+2 the fore2oi+2, "ICE%SEE may elect i+ /riti+2 to .e release) from its lice+se i+ a+y
of the "ice+se) Pate+ts a+) &==licatio+s i+ the #+ite) States at a+y time after i+itial fili+2 costs have
.ee+ =ai), i+ /hich eve+t it shall thereafter have
GHI DESI'%&ES P0(I0%S 01 HIS D0C#ME% H& H&$E BEE% 0MIED P#(S#&%
0 & (EJ#ES 10( C0%1IDE%I&" (E&ME% 1I"ED SEP&(&E"7 ;IH HE
C0MMISSI0%!
P&'E B
:
+o o.li2atio+ to reim.3rse 10#%D&I0% for a+y f3t3re e@=e+ses relati+2 to s3ch =ate+t or =ate+t
a==licatio+!
#=o+ a==roval of this &2reeme+t .y 10#%D&I0%Fs Boar) of Directors, "ICE%SEE shall reim.3rse
10#%D&I0% for all )irect a+) )oc3me+ta.le costs relate) to "ice+se) #!S! Pate+t &==licatio+s
i+c3rre) to )ate, =l3s a GHI a)mi+istrative fee assesse) .y 10#%D&I0%D s3ch amo3+t, i+cl3)i+2
eA3ivale+t 1orei2+ Pate+t costs )escri.e) herei+a.ove is e@=ecte) to a==ro@imate GHI as of the
Effective Date!
$II! P&E% P(0SEC#I0% M&%&'EME%
he =arties ac5+o/le)2e the im=orta+ce of coo=erati+2 o+ the o+2oi+2 ma+a2eme+t of =rosec3tio+ of
"ice+se) Pate+t &==licatio+s! 10#%D&I0% a2rees to 3tiliEe =ate+t co3+sel selecte) .y
10#%D&I0% a+) reaso+a.ly a==rove) .y "ICE%SEE for the =3r=ose of fili+2 a+) =rosec3ti+2
"ice+se) Pate+t &==licatio+s! 10#%D&I0% f3rther a2rees to co+s3lt /ith "ICE%SEE i+ a timely
ma++er co+cer+i+2 *i- the sco=e a+) co+te+t of "ice+se) Pate+t &==licatio+s *ii- the strate2y a+)
tactics of =ate+t =rosec3tio+, *iii- co+te+t of =ro=ose) res=o+ses to official actio+s of the #+ite) States
Pate+t a+) ra)emar5 0ffice a+) forei2+ =ate+t offices )3ri+2 =rosec3tio+ of s3ch =ate+t a==licatio+s
a+) *iv- cost of =ate+t =rosec3tio+! 1or =3r=oses of this =ara2ra=h, ,timely shall mea+ /he+ever
=ossi.le, s3fficie+tly i+ a)va+ce of a+y =ate+t =rosec3tio+ )ecisio+ .y the 10#%D&I0% so as to
allo/ "ICE%SEE to mea+i+2f3lly revie/ s3ch )ecisio+ or /ritte+ res=o+se a+) =rovi)e comme+ts to
10#%D&I0% i+ a)va+ce of s3ch )ecisio+ or )ea)li+e so that "ICE%SEEFs comme+ts ca+ .e
co+si)ere) a+) i+cor=orate) i+to 10#%D&I0%Fs )ecisio+ or /ritte+ res=o+se!
&))itio+ally, it is 10#%D&I0%Fs i+te+t to tra+sfer res=o+si.ility for ma+a2eme+t of =ate+t
=rosec3tio+ a+) mai+te+a+ce activity o+ "ice+se) Pate+t &==licatio+s a+) "ice+se) Pate+ts to
"ICE%SEE t/o *6- years from the Effective Date! S3ch tra+sfer shall .e co+ti+2e+t 3=o+
"ICE%SEEFs a2reeme+t to 3tiliEe =ate+t co3+sel selecte) .y "ICE%SEE a+) reaso+a.ly a==rove) .y
10#%D&I0% for the =3r=ose of fili+2 a+) =rosec3ti+2 "ice+se) Pate+t &==licatio+s a+)
mai+tai+i+2 "ice+se) Pate+ts! #=o+ s3ch tra+sfer, "ICE%SEE shall f3rther a2ree to co+s3lt /ith
10#%D&I0% i+ a timely ma++er co+cer+i+2 *i- the sco=e a+) co+te+t of "ice+se) Pate+t
&==licatio+s *ii- the strate2y a+) tactics of =ate+t =rosec3tio+ a+) *iii- co+te+t of =ro=ose) res=o+ses
to official actio+s of the #+ite) States Pate+t a+) ra)emar5 0ffice a+) forei2+ =ate+t offices )3ri+2
=rosec3tio+ of s3ch =ate+t a==licatio+s! 1or =3r=oses of this =ara2ra=h, ,timely, shall mea+
s3fficie+tly i+ a)va+ce of a+y =ate+t =rosec3tio+ )ecisio+ .y the "ICE%SEE so as to allo/
10#%D&I0% to mea+i+2f3lly revie/ s3ch )ecisio+ or /ritte+ res=o+se a+) =rovi)e comme+ts to
GHI DESI'%&ES P0(I0%S 01 HIS D0C#ME% H& H&$E BEE% 0MIED P#(S#&%
0 & (EJ#ES 10( C0%1IDE%I&" (E&ME% 1I"ED SEP&(&E"7 ;IH HE
C0MMISSI0%!
P&'E :
9
"ICE%SEE i+ a)va+ce of s3ch )ecisio+ or )ea)li+e so that 10#%D&I0%Fs comme+ts ca+ .e
co+si)ere) a+) i+cor=orate) i+to "ICE%SEEFs )ecisio+ or /ritte+ res=o+se! S3ch tra+sfer shall also .e
co+ti+2e+t 3=o+ "ICE%SEEFs )emo+stratio+ to 10#%D&I0% that it ca+ a+) /ill com=ly /ith the
follo/i+2:
a- all )oc3me+ts relate) to the =rosec3tio+ of "ice+se) Pate+t
&==licatio+s shall sho/ Cor+ell (esearch 1o3+)atio+ as the
&ssi2+ee of recor)D
.- "ICE%SEE shall e+s3re that 10#%D&I0% .e =rovi)e) co=ies of all
corres=o+)e+ce a+) )oc3me+ts relate) to sai) =ate+t =rosec3tio+
a+) mai+te+a+ce ma+a2eme+tD
c- "ICE%SEE shall e+s3re that all mai+te+a+ce fees o+ all "ice+se)
Pate+ts .e =ai) a+) that i+ +o eve+t shall "ice+se) Pate+ts .e
allo/e) to la=se for fail3re to =ay s3ch fees /itho3t the
co+c3rre+ce of 10#%D&I0% o+ s3ch la=se!
&ltho32h it is 10#%D&I0%Fs i+te+tio+ to allo/ "ICE%SEE to co+ti+3e sai) res=o+si.ility for
=ate+t =rosec3tio+ a+) mai+te+a+ce for the )3ratio+ of this e@cl3sive lice+se &2reeme+t,
10#%D&I0% reserves the ri2ht to reass3me s3ch res=o+si.ility if it ca+ sho/ that "ICE%SEEFs
efforts are i+s3fficie+t i+ carryi+2 o3t s3ch activities!
Sho3l) the e@cl3sive lice+se 2ra+te) here3+)er to "ICE%SEE .ecome +o+?e@cl3sive, 10#%D&I0%
shall have the res=o+si.ility for fili+2, =rosec3ti+2 a+) mai+tai+i+2 all "ice+se) Pate+t &==licatio+s
a+) "ice+se) Pate+ts at its o/+ e@=e+se!
$III! (07&"IES &%D MI%IM#M (07&"IES 0 BE P&ID D#(I%' HE "ICE%SE
&'(EEME%
"ICE%SEE /ill =ay to the 10#%D&I0% a royalty of GHI of the %et Sales Price of "ice+se) Pro)3cts
ma)e, 3se) or sol) .y "ICE%SEE i+ the #+ite) States a+) thro32ho3t the /orl)!
"ICE%SEEFS o.li2atio+ to =ay the GHI royalty rate 3=o+ each s3ch =ro)3ct shall cease i+ a =artic3lar
co3+try:
*i- if the a==lica.le claims i+ the "ice+se) Pate+t i+ a+y
=artic3lar co3+try are hel) i+vali) .y a+ 3+a==eale) or
3+a==eala.le )ecisio+ of a co3rt of com=ete+t
L3ris)ictio+ i+ that =artic3lar co3+try, or
*ii- 3=o+ e@=iratio+ of the last sai) "ice+se) Pate+tD or
GHI DESI'%&ES P0(I0%S 01 HIS D0C#ME% H& H&$E BEE% 0MIED P#(S#&%
0 & (EJ#ES 10( C0%1IDE%I&" (E&ME% 1I"ED SEP&(&E"7 ;IH HE
C0MMISSI0%!
P&'E 9
9
*iii- if 10#%D&I0% a.a+)o+s its =ate+t solicitatio+ efforts
for all "ice+se) Pate+t &==licatio+s a+) +o "ice+se)
Pate+t is i+ force!
Provi)e) ho/ever, sho3l) +o "ice+se) Pate+t iss3e a+) all "ice+se) Pate+t &==licatio+s are
a.a+)o+e) .3t "ICE%SEE 3tiliEes a "ice+se) Biolo2ical Material to ma5e, 3se or sell "ice+se)
Pro)3cts, "ICE%SEE /ill =ay to 10#%D&I0% a royalty of GHI of the %et Sales Price of "ice+se)
Pro)3cts ma)e, 3se) or sol) .y "ICE%SEE i+ the #+ite) States a+) thro32ho3t the /orl)!
Be2i++i+2 /ith the fifth "ice+se 7ear, each "ice+se 7ear "ICE%SEE shall =ay 10#%D&I0% a
mi+im3m a++3al royalty =ayme+t accor)i+2 to the follo/i+2 sche)3le:
GHI
S3ch =ayme+ts shall .e ma)e A3arterly thro32ho3t the "ice+se 7ear a+) s3ch mo+eys /ill .e
co+si)ere) as a cre)it for the royalties )3e for that "ice+se 7ear 3+)er this &2reeme+t a+) the royalty
re=orts sho3l) reflect the 3se of s3ch cre)it! S3ch =rovisio+ is to .e co+str3e) as a+ a++3al mi+im3m
royalty =ayme+t reA3ireme+t a+) +o+e of the mi+im3m royalty =ayme+ts are ref3+)a.le or a==lica.le
to s3ccee)i+2 "ice+se 7ears!
I+ "ice+se 7ears 5, B a+) :, "ICE%SEE may cre)it the )irect a+) )oc3me+ta.le costs it has e@=e+)e)
o+ research a+) )evelo=me+t of tra+s2e+ic or2a+ism a==licatio+s of "ice+se) Pate+t &==licatio+s a+)
"ice+se) Pate+ts a2ai+st 3= to GHI of mi+im3m a++3al royalties o/e) for those "ice+se 7ears!
I+ the eve+t "ICE%SEE is reA3ire) to =ay royalties to a thir) =arty i+ or)er to ma5e, 3se or sell
"ice+se) Pro)3cts, 10#%D&I0% shall revie/ the mi+im3m a++3al royalty =ayme+t o.li2atio+
)escri.e) herei+a.ove a+) a2rees to +e2otiate i+ 2oo) faith /ith "ICE%SEE to ma5e a)L3stme+ts i+
s3ch =ayme+t o.li2atio+s!
I+ a+y eve+t, sales from +o+?tra+s2e+ic =la+t a==licatio+s m3st co+stit3te at least GHI of the total
mi+im3m a++3al royalty =ayme+t o.li2atio+!
I+ the eve+t that this &2reeme+t is co+verte) to a fiel)?of?3se e@cl3sive lice+se, +o+?e@cl3sive lice+se
or semi?e@cl3sive lice+se i+ the fiel) of tra+s2e+ic or2a+isms accor)i+2 to the ,E(M, *IX- a+)
,D#E DI"I'E%CE, *X- Sectio+s herei+.elo/, the mi+im3m a++3al royalty =ayme+ts )escri.e)
herei+a.ove shall .e re)3ce) .y GHI!
It is ac5+o/le)2e) a+) a2ree) that the mi+im3m a++3al royalty =ayme+t shall .e allocate) .et/ee+
the fiel) of +o+?tra+s2e+ic a==licatio+s a+) the fiel) of tra+s2e+ic or2a+isms i+ the ratio of GHI of the
mi+im3m a++3al royalty =ayme+t is
GHI DESI'%&ES P0(I0%S 01 HIS D0C#ME% H& H&$E BEE% 0MIED P#(S#&%
0 & (EJ#ES 10( C0%1IDE%I&" (E&ME% 1I"ED SEP&(&E"7 ;IH HE
C0MMISSI0%!
P&'E 9
10
allocate) to the fiel) of +o+?tra+s2e+ic a==licatio+s a+) GHI is allocate) to the fiel) of tra+s2e+ic
or2a+isms- a+) the sole reme)y of 10#%D&I0% for +o+=ayme+t of either =ortio+ of s3ch mi+im3m
a++3al royalty =ayme+t shall .e *after +otice of s3ch +o+=ayme+t a+) o==ort3+ity to c3re- termi+atio+
of the lice+se ri2hts for the fiel) of 3se to /hich the =ortio+ of the =ayme+t a==lies!
IX! 1&$0(ED %&I0%S
If 10#%D&I0% 2ra+ts a +o+?e@cl3sive lice+se to others 3+)er a "ice+se) Pate+t &==licatio+ or
"ice+se) Pate+t, s3ch lice+ses /ill +ot .e 2ra+te) at a royalty rate /hich is more favora.le tha+ the
rate herei+ 2ra+te) to "ICE%SEE 3+less s3ch more favora.le rates are e@te+)e) to "ICE%SEE! his
1avore) %atio+s cla3se )oes +ot a==ly to lice+se a2reeme+ts /hich are i+ settleme+t of =ate+t
liti2atio+!
X! &CC0#%I%' &%D P&7ME% SCHED#"E
Payme+t, re=orti+2 a+) fi+a+cial acco3+ti+2 shall .e o+ a A3arterly .asis a+) "ICE%SEE /ill )eliver
to the 10#%D&I0% /ithi+ +i+ety *90- )ays after the e+) of each A3arter of the "ice+se 7ear a re=ort
i+ /riti+2 setti+2 forth sales of "ice+se) Pro)3cts *i+cl3)i+2 a +e2ative re=ort if a==ro=riate- a+) /ill
accom=a+y s3ch re=ort /ith a+ a==ro=riate =ayme+t of royalty or mi+im3m royalty )3e for s3ch
=erio)! "ICE%SEE /ill 5ee= acc3rate recor)s, certifie) .y it, sho/i+2 the i+formatio+ .y /hich
"ICE%SEE arrive) at a royalty )etermi+atio+ a+) /ill =ermit a =erso+ a==oi+te) .y the
10#%D&I0% a+) acce=ta.le to "ICE%SEE to ma5e s3ch i+s=ectio+ of sai) recor)s as may .e
+ecessary to verify royalty re=orts ma)e .y "ICE%SEE!
Co+versio+ from forei2+ c3rre+cies, if a+y, shall .e .ase) 3=o+ the co+versio+ rate o+ the )ate that
=ayme+t i+ )3e!
Payme+ts /hich are )elaye) .eyo+) the si@ty *B0- )ays after the e+) of the A3arter i+ /hich they
.ecome )3e shall .e s3.Lect to a GHI =er a++3m i+terest char2e!
XI! E(M
he aforesai) e@cl3sive lice+se 3+)er "ice+se) Pate+t &==licatio+s, "ice+se) Pate+ts a+) "ice+se)
Biolo2ical Material shall last for a =erio) e+)i+2 o+ the e@=iratio+ )ate of the last to e@=ire "ice+se)
Pate+t or, sho3l) o+ly "ice+se) Biolo2ical Materials .e lice+se), the+ for a =erio) of fiftee+ *15- years
from the )ate of this &2reeme+t!
By m3t3al a2reeme+t of 10#%D&I0% a+) "ICE%SEE, this &2reeme+t may .e co+verte) i+to a
fiel)?of?3se e@cl3sive lice+se! Sai) fiel)?of?3se e@cl3sive lice+se
GHI DESI'%&ES P0(I0%S 01 HIS D0C#ME% H& H&$E BEE% 0MIED P#(S#&%
0 & (EJ#ES 10( C0%1IDE%I&" (E&ME% 1I"ED SEP&(&E"7 ;IH HE
C0MMISSI0%!
P&'E 10
11
/o3l) o+ly resci+) "ICE%SEEFs ri2hts to ma5e, 3se a+) sell "ice+se) Pro)3cts i+ the fiel) of
tra+s2e+ic or2a+isms!
XII! D#7 01 DI"I'E%CE
"ICE%SEE shall e@ercise reaso+a.le )3e )ili2e+ce to affect the i+tro)3ctio+ of "ice+se) Pro)3cts i+to
the commer !!!