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***Text Omitted and Filed Separately
Confidential Treatment Requested
Under 17 C.F.R. Sections 200.80(b)(4)
And 240.24b-2
Exhibit 10.67
LICENSE AGREEMENT
This license agreement (the "Agreement"),
effective as of December 31, 2004 (the
"Effective Date") is by and between
Gen-Probe Incorporated ("Gen-Probe"), a
Delaware corporation having an address at
10210 Genetic Center Drive, San Diego,
CA 92121 and Corixa Corporation ("Corixa"),
a Delaware corporation, having an
address at 11900 9th Avenue, Suite 1100,
Seattle, WA 98101, (collectively the
"parties" and each a "party").
1. BACKGROUND
1.1. Corixa
controls certain intellectual property rights related to
nucleic acids, antigens and antibodies that may be useful
components
in cancer diagnostic products.
1.2. Gen-Probe
desires to obtain a license under Corixa's rights to such
intellectual property in order to make, use and sell certain
diagnostic products that incorporate such components.
2. DEFINITIONS
2.1. "AFFILIATE"
shall mean, with respect to either party hereto, any
corporation, partnership, or organization which such party directly
or
indirectly controls, is controlled by or is under common control
with.
For the purposes of this definition "control" shall mean holding
of
fifty percent (50%) or more of the voting stock or other
ownership
interest of the corporation or business entity involved, or if
it
possesses the power to directly or indirectly control the
management
and policies of the other corporation or business entity.
2.2. "ANALYTE
SPECIFIC REAGENT" OR "ASR" shall mean diagnostic reagents
used or sold for use by Third Parties with General Purpose
Reagents
(GPR) under applicable regulations of the U.S. Food and Drug
Administration, where the ASR's and GPR's are not considered to
comprise a diagnostic test kit.
2.3.
"CONFIDENTIAL INFORMATION" shall mean, subject to the terms of
Article
9 of this Agreement, all information and materials received by
either
party from the other party pursuant to this Agreement that is
marked
as "confidential", "restricted", "proprietary" or the like, or
which
is stated to be such within sixty (60) days after its disclosure
if
transmitted orally, or which by its nature is information
normally
intended to be held in confidence, whether in the form of
tangible
media, oral disclosures or otherwise. The nature and terms of
this
Agreement shall be deemed to be Confidential Information.
2.4. "CONTROL"
OR "CONTROLLED" means with respect to any Know-How, Licensed
Patents or other intellectual property rights, the possession by
a
party of the right, power and authority (whether by ownership,
license
or otherwise) to grant a license or sublicense to such
Know-How,
Licensed Patents or other
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intellectual property without violating the terms of any agreement
or
other arrangement with any Third Party.
2.5. "DIAGNOSTIC RESULT" shall
mean one or more of the following
determinations as they pertain to a discrete disease or condition:
the
presence or absence of the disease or condition, predisposition to
or
likelihood of contracting the disease or condition, monitoring
the
progress or decline of the disease or condition, predicting
and/or
monitoring the response to treatment of the disease or
condition,
prognosis relating to the disease or condition, and, identification
of
the origin of the tissue.
2.6. "END USER" shall mean those
persons or entities who are not in the
business of reselling products, and whose use of a product
normally
results in the product's consumption, destruction or loss of
activity.
2.7. "FDA" shall mean the Food
and Drug Administration of the United States
or its foreign equivalent or counterpart, as applicable.
2.8. "FIELD" shall mean the field
of [...***...] and [...***...].
2.9. "FIRST COMMERCIAL SALE"
shall mean the first sale on a commercial
basis after receiving Marketing Approval of any Licensed Product
by
Gen-Probe or its sub-licensees to a Third Party (excluding any
Affiliate or sublicensee of Gen-Probe, unless such Affiliate or
sublicensee is an End User), in any country, on a
country-by-country
basis.
2.10. "KNOW-HOW" means all trade secret
or other information that is not
generally known or biological materials, including, without
limitation, cells, cell lines, genes, gene fragments, gene
sequences,
probes, DNA, RNA, cDNA libraries, proteins, peptides,
polypeptides,
plasmids, vectors, expression systems, organisms, biological
substances, and any constituents, progeny or replications thereof
or
therefrom, reagents, chemical compounds, inventions,
improvements,
practices, formula, trade secrets, techniques, methods,
procedures,
knowledge, know-how, skill, experience, results, test data
(including,
without limitation, pharmacological, toxicological, animal model
and
clinical test data), analytical and quality control data and
any
marketing, pricing, distribution, cost, sales, manufacturing,
patent
or data descriptions, whether or not patentable, that are owned
or
Controlled by Corixa and that are related to the Licensed Products
and
the monoclonal antibody-producing hybridoma cell line clones
identified in Exhibit B.
2.11. "LICENSED PATENTS" shall mean the
U.S. and foreign patents (including
without limitation any reissues, reexaminations, extensions,
divisions, renewals, substitutions, confirmations,
registrations,
revalidations, revisions and additions of or to any of the
foregoing)
and patent applications (including without limitation any
renewal,
division, continuation, continued prosecution application or
continuation-in-part of any of such applications) set forth in
Exhibit
A.
2.12. "LICENSED PRODUCT" shall mean any
product in the Field that
incorporates Know-How or at least one (1) Marker, the
manufacture,
use, sale, or import of which by Gen-Probe or a Gen-Probe
sublicensee,
would, but for the license granted herein, infringe one (1) or more
of
the Valid Claims of one (1) or more
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Licensed
Patents or, in the case of Know-How, was utilized in the
development, manufacturing, use or sale of a product.
2.13. "MARKER" shall mean a specific
nucleic acid composition (or
derivative thereof), protein composition (or derivative thereof),
or
antibody directed to the specific protein composition and
methods
employing or assaying for the presence of such compositions for
providing a Diagnostic Result. Such nucleic acid composition may be
a
polynucleotide or fragment of a polynucleotide and such protein
composition may be a polypeptide or fragment of a polypeptide.
2.14. "MARKETING APPROVAL" shall mean,
with respect to a particular Licensed
Product in a particular country, the date upon which the last of
all
governmental or regulatory approvals required for the sale of
such
Licensed Product in that country has been granted.
2.15. "NET SALES" shall mean the gross
amount invoiced to non-affiliated
Third Parties by Gen-Probe, its Affiliates, or its sublicensees
in
arms length transactions, less the following reasonable and
customary
accrual-basis deductions to the extent applicable to such
invoiced
amounts (to the extent
each is actually incurred and included in the
invoiced gross sales price) in accordance with generally
accepted
accounting practices ("US GAAP"), as consistently applied by
Gen-Probe
for financial reporting purposes: (i) [...***...], [...***...]
and
[...***...], [...***...], or [...***...] (including, without
limitation, [...***...]); (ii) [...***...] for [...***...],
[...***...] or [...***...] or [...***...]; [...***...];
[...***...];
or [...***...]; (iii) [...***...], [...***...] and [...***...],
[...***...], [...***...], [...***...] and other [...***...]
(including
[...***...], but excluding what is commonly known as [...***...]);
and
(iv) [...***...]
or [...***...] given or made for [...***...],
[...***...] and [...***...]. The specific deductions taken under,
and
the general provision of, (i) through (iv) above shall be
adjusted
periodically as necessary to reflect amounts actually incurred.
For
the avoidance of doubt, a Licensed Product sale shall be deemed
to
occur when shipment of such Licensed Product is recognized by
Gen-Probe, its Affiliates, or its sublicensees as revenue under
US
GAAP, consistently applied.. A "sale" shall also include a transfer
or
other disposition for consideration other than cash, in which
case
such consideration shall be valued at the fair market value
thereof.
Transfers
or dispositions for charitable or promotional purposes or
for pre-clinical, clinical, regulatory or governmental purposes
prior
to receiving Marketing Approval are not considered a "sale."
2.15.1. In the event that a Licensed Product is sold pursuant to
a
"reagent/rental" program or comparable sale or lease program,
that portion of the invoiced price of such Licensed Product
reasonably allocable to recovery of the cost of the
instrumentation shall also be deducted in determining the Net
Sales of such Licensed Product; provided that Gen-Probe shall
not
market Licensed Products and instrumentation in such a manner
as
to
distort the relative profitability of the Licensed Products
when considered in light of Gen-Probe's standard accounting
practices and standard marketing practices within the clinical
diagnostic industry.
2.16. "ROYALTY TERM" means
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2.16.1. With respect to each Licensed Product in each country of
the
Territory, considered on a country-by-country basis, the period
beginning upon the Effective Date and extending for so long as
a
Valid Claim remains in effect and would be infringed by such
Licensed Product but for the license granted by this Agreement;
2.16.2. Notwithstanding the above, in the event that termination
of
the Royalty Term as computed Section 2.16.1 is less than
[...***...] years from the First Commercial Sale of such
Licensed
Product anywhere in the Territory, then the Royalty Term in
each
country shall extend until the [...***...] anniversary of the
date computed in Section 2.16.1.
2.17. "TERRITORY" means the entire
world.
2.18. "THIRD PARTY" shall mean any
person or entity other than Gen-Probe,
Corixa or their respective Affiliates.
2.19. "THERAPEUTIC DRUG
MONITORING" OR "TDM" shall mean the use of a
Marker(s) solely for the purpose of pre-screening human patients
to
determine eligibility for therapeutic treatment with an Active
Response Product (as defined below) that incorporates such
Marker(s)
and/or a Passive Response Product (as defined below) that
incorporates
such Marker(s), or for [...***...] receiving such an Active
Response
Product and/or Passive Response Product, as applicable, either
during
the clinical phase of development of such Active Response
Product
and/or Passive Response Product, as applicable, or following
commercialization thereof. For further clarification, use of a
product
is outside the Field if such product is associated commercially
with
Active Response Product and/or Passive Response Product
administration
and cannot be sold purely as a diagnostic product used for
[...***...], [...***...] or [...***...] or for monitoring
patient
response to non-Active Response Product(s) or non-Passive
Response
Product(s). For purposes of this Agreement, "Active Response
Product"
shall mean a [...***...] containing [...***...], [...***...]
presented
in a [...***...] or as a [...***...]. For purposes of this
Agreement,
"Passive Response Product" shall mean an [...***...]a [...***...],
or
[...***...] to a [...***...] administered to patients [...***...]
a
[...***...].
2.20. "VALID CLAIMS" shall mean
with respect to each country in the
Territory, a claim of an issued, unexpired patent or any
pending
patent applications included in the Licensed Patents, which patent
has
not been (a) held invalid or unenforceable by a final decision of
a
court or governmental agency of competent jurisdiction, which
decision
is unappealable or was not appealed within the time allowed
therefore,
or (b) admitted in writing to be invalid or unenforceable by
the
holder(s), whether by means of reissue, disclaimer or
otherwise.
3. GRANTS
3.1. LICENSE AND
RESTRICTIONS. (a) Corixa hereby grants to Gen-Probe a
royalty-bearing, exclusive right and license, with the right to
sublicense as provided in
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Section 3.2, under the Licensed Patents and Know-How, to
conduct
research and to develop, make and have made, sell, offer to sell
and
have sold, import and have imported Licensed Products in the Field
in
the Territory; provided, however, that such license grant is
subject
to the restrictions set forth in Section 3.1(b) below.
(b) The
license granted by Corixa to Gen-Probe in Section 3.1(a)
above is subject to the following restrictions:
(i) it is
a [...***...] right as it applies to Licensed
Products in the field of [...***...],
(ii) all rights
to the [...***...], [...***...] and
[...***...] conducted for the purpose of diagnosing a
condition or disease in humans and for sale as a
research diagnostic for the [...***...] and [...***...]
are excluded from such license grant,
(iii) it is a
[...***...] right as it applies to (a)
[...***...], [...***...] and [...***...] conducted for
the purpose of [...***...]or [...***...] in [...***...]
for the [...***...] and (b) [...***...] for the
[...***...] and
(iv) it does not
include any rights related to (a) the
[...***...] or (b) the [...***...] or (c) the
development of diagnostics for the detection of
[...***...] the [...***...] listed on Exhibit C that
Corixa has already licensed to a Third Party.
As used in this Section 3.1(b), the term "co-exclusive" shall
mean
that at no time during the term of such license or right shall
Corixa
grant a right or license in a given country or territory to more
than
one entity in addition to the rights and licenses granted under
this
Agreement to Gen-Probe, its Affiliates and sublicensees.
3.2.
SUBLICENSES. The grant under Section 3.1 above hereby includes
the
right of Gen-Probe to grant sublicenses to its Affiliates and to
Third
Parties within the scope of the license and rights granted to
Gen-Probe in Section 3.1. Any sublicense agreement by Gen-Probe to
an
Affiliate or a Third Party hereunder shall include provisions
concerning intellectual property and confidentiality at least
as
protective of Corixa as those set for herein and such agreement
shall
consistent with all terms and conditions of this Agreement.
Within
thirty (30) days following execution of any sublicense of any
rights
hereunder, Gen-Probe shall provide to Corixa a copy of such
sublicense
agreement.
4. TECHNOLOGY TRANSFER
4.1.
TECHNOLOGY
TRANSFER. Within thirty (30) days of GenProbe's payment
to Corixa of the license fee set forth in Section 5.1(a) and a
written
request from Gen-Probe, Corixa shall transfer to Gen-Probe, at
Gen-Probe's expense and in
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a format reasonably acceptable to Gen-Probe, a selection of
materials,
information, data and procedures that currently exist and that are
in
Corixa's possession and that, in each case, comprise the "best
practices" Know-How as of such date and any other Know-How that
is
necessary or reasonably useful for Gen-Probe and that is in
Corixa's
possession. Following such initial transfer, to the extent the
parties
identify any additional materials and/or information that is in
Corixa's possession (including without limitation, any
materials,
protocols, reagents, compounds, biological materials, assays,
data,
reports, analyses and other information) relating to the rights
granted under this Agreement that would be necessary or
reasonably
useful for Gen-Probe, and not already disclosed to Gen-Probe by
Corixa
hereunder, Gen-Probe may request that Corixa provide, and Corixa
shall
provide, at Gen-Probe's expense, a further reasonable number of
such
materials or information within thirty (30) days from such
request.
5. PAYMENTS
5.1.
MILESTONE
PAYMENTS. Gen-Probe shall pay to Corixa the following
non-refundable, non-creditable fees to the extent they become
due
during any Royalty Period in the United States computed under
Section
2.16.1:
(a) One Million Six
Hundred Thousand Dollars ($1,600,000) within
thirty (30) days of the Effective Date.
(b) One Million Six
Hundred Thousand Dollars ($1,600,000) by January
31st, 2006.
(c) One Million Six
Hundred Thousand Dollars ($1,600,000) by January
31st, 2007.
(d) [...***...] upon
the [...***...] submission of an application to
the FDA for approval to market a Licensed Product.
(e) [...***...] upon
the [...***...] of the first [...***...].
(f) [...***...] upon
the [...***...] Marketing Approval of a Licensed
Product.
(g) [...***...] upon
each submission of an application to the FDA for
approval to market a Licensed Product that includes any Marker
for which such fee has not already been paid.
(h) [...***...] upon
Marketing Approval of each Licensed Product
incorporating one or more Markers for which such fee has not
already been paid.
(i) [...***...] upon
reaching Net Sales [...***...] in a calendar
year for each Licensed Product for which such fee has not
already
been paid.
(j) [...***...] upon
reaching Net Sales of [...***...] in a calendar
year for each Licensed Product incorporating one or more
Markers
for which such fee has not already been paid.
(k) In the event that
a Licensed Product is directed at [...***...]
or more different Markers and one of the Markers was used in a
Licensed Product
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incorporating [...***...] or [...***...]Markers for which
Gen-Probe had reached Net Sales of [...***...] in a calendar
year, then the milestone payments set forth in Sections 5.1(g),
5.1(h), 5.1(i) and 5.1(j) shall be [...***...] for such
Licensed
Product of the type that is described in this Section 5.1(k).
5.2. ROYALTY
PAYMENTS. In addition to the amounts payable pursuant to
Section 5.1 above and subject to Section 6.1, below, Gen-Probe
shall,
until the end of the applicable Royalty Term, pay Corixa a royalty
on
Net Sales of all Licensed Products as follows:
(a) With respect to
Net Sales of Licensed Products that are
[...***...] for which Marketing Approval has not been obtained
a
royalty of [...***...] shall apply.
(b) With respect to
Net Sales of Licensed Products for which
Marketing Approval has been obtained a royalty of [...***...]
shall apply.
5.3.
SUBLICENSING REVENUE. In addition to the foregoing, Gen-Probe
shall
pay to Corixa a sum equal to [...***...] of all amounts received
by
Gen-Probe in consideration of Gen-Probe sublicensing of any of
its
rights to the Licensed Patents and/or Know-How granted hereunder
to
Third Parties, such amounts to include, without limitation,
[...***...], [...***...], [...***...], [...***...] and [...***...].
In
addition, Gen-Probe shall, until the end of the applicable
Royalty
Term, pay Corixa a royalty on Net Sales of all Licensed Products
by
its sublicensees equal to the lesser of (i) [...***...] of the
royalty
paid by Gen-Probe's sublicensee to Gen-Probe or (ii) the royalty
that
would otherwise be paid by Gen-Probe to Corixa pursuant to Section
5.2
above as if it were Gen-Probe's Net Sales; provided, however, that
in
no event shall the royalties payable to Corixa ever be less
that
[...***...] of the Net Sales of Licensed Products, unless the
circumstances described in Section 6.1(b) below exist, in which
case,
the royalty payable to Corixa shall never be less than [...***...]
of
Net Sales of such Licensed Product.
6. ADJUSTMENTS TO ROYALTY
PAYMENTS
6.1.
ADJUSTMENTS. The royalty rates payable pursuant to Section 5.2
above
may be reduced as follows:
(a) If a Licensed
Product sold in a particular country or territory
is at the time of sale not covered by a Valid Claim of at least
one Licensed Patent in such country, for example, due to
Corixa's
failure to apply for patents, or the expiration or invalidation
of all relevant Licensed Patents in such country by final
judicial or patent office action without possibility of appeal
or
reinstatement, then the applicable royalty rate stated in
Section
5.2 with respect to Net Sales of such Licensed Product sold in
that country under those conditions shall be reduced by
[...***...]. However, if such Licensed Product is later covered
by a Valid Claim of at least one Licensed Patent in such
country
or territory, the full royalty provided for in
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Section 5.2 shall be due as provided therein for the period
that
such patent is a Licensed Patent covering such country.
(b) Where the
manufacture, sale, offer for sale, use or importation
of a Licensed Product infringes the proprietary rights of a
Third
Party due to the incorporation of a Corixa-owned or Controlled
Marker into the Licensed Product, and Gen-Probe or any of its
sublicensees is required to pay any royalties or other amounts
as
a result of such infringement (the "Third Party Amounts"), the
royalties payable under Section 5.2 shall be reduced by
[...***...] of the amount of the Third Party Amounts, provided,
however, that the royalties payable by Gen-Probe to Corixa
under
Section 5.2 above shall in no event be reduced to less than
[...***...] as a result of this Section 6.1(b).
(c) In the event that
the Licensed Product is a diagnostic assay that
includes one or more Corixa-owned or Controlled Markers and
other
Markers in-licensed by Gen-Probe from a Third Party, then the
royalties payable under Section 5.2 shall be reduced by
[...***...] of the amount of royalties payable by Gen-Probe to
such Third Party for such in-license, provided, however, that
the
royalties payable by Gen-Probe to Corixa under Section 5.2
above
shall in no event be reduced to less than [...***...] as a
result
of this Section 6.1(c).
7. REPORTS AND PAYMENT
TERMS
7.1. REPORTS.
Within sixty (60) days following the close of each calendar
quarter, Gen-Probe will submit to Corixa a report of Gen-Probe's
and
its sublicensee(s)' Net Sales and any payments due based on such
Net
Sales under the terms of this Agreement for such period.
7.2. TIMING OF
PAYMENTS. Payments due as set forth in statements pursuant
to Section 7.1 will be paid with the submission of such reports
to
Corixa. Except as otherwise set forth in Section 5.1(a), all
other
payments due under the terms of this Agreement shall be paid
within
[...***...] days of the relevant event on which such payment is
based.
7.3. LATE
PAYMENTS. All amounts past due shall bear interest from the
date
they are due until the date they are paid the rate of [...***...]
per
annum.
7.4. CURRENCY
EXCHANGE. The remittance of all amounts payable to Corixa
under this Agreement (including royalties for Net Sales of
Licensed
Products outside the United States) will be made by Gen-Probe,
notwithstanding currency restrictions or regulations in any
country
where the Licensed Products are sold, in United States dollars at
the
official rate of exchange (as quoted by Citibank NA and calculated
as
the average of the exchange rates at noon Pacific Time on the
last
business day of the second and third months of the applicable
calendar
quarter) of the currency of the country from which the royalties
are
payable.
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7.5.
AUDITS.
(a) Upon the written request of Corixa and not more than
[...***...]
in each calendar year, Gen-Probe and its Affiliates shall permit
an
independent certified public accounting firm of nationally
recognized
standing, selected by Corixa and reasonably acceptable to
Gen-Probe,
at Corixa's expense, to have access during normal business hours
to
such of the records of Gen-Probe and its Affiliates as may be
reasonably necessary to verify the accuracy of the royalty
reports
hereunder for any year ending not more than [...***...] months
prior
to the date of such request. The accounting firm shall disclose
to
Corixa only whether the reports are correct or not and the
specific
details concerning any discrepancies.
(b) If such accounting firm concludes that additional royalties
were
owed during the audited period, Gen-Probe shall pay such
additional
royalties within thirty (30) days of the date Corixa delivers
to
Gen-Probe such accounting firm's written report so concluding.
The
fees charged by such accounting firm shall be paid by Corixa;
provided, however, that if the audit discloses that the
royalties
payable by Gen-Probe for such period are more than [...***...] of
the
royalties actually paid for such period, then Gen-Probe shall pay
the
reasonable fees and expenses charged by such accounting firm.
(c) Corixa shall treat all financial information subject to
review
under this Section 7.5 as Confidential Information, and shall
cause
its accounting firm to retain all such financial information in
confidence. Corixa shall cause a copy of any reports provided by
such
accounting firm to Corixa hereunder also to be provided to
Gen-Probe.
7.6. PAYMENT
METHOD. All payments hereunder shall be in U.S. Dollars by
bank wire transfer in immediately available funds from a United
States
bank located in the United States to the following Corixa account
(or
such other bank account as designated by Corixa from time to
time):
Name: [...***...]
Address:
[...***...]
[...***...]
Account: [...***...]
Account #:[...***...]
If Gen-Probe is required to withhold and remit any tax to the
tax
authorities in any regard to any amount payable to the Corixa,
such
amount shall be withheld and paid to the such tax authority. In
such
event, Gen-Probe shall notify Corixa and promptly furnish with
copies
of any documentation evidencing such withholding.
8. PATENT PROSECUTION AND
LITIGATION
8.1. As between
the parties, Corixa shall have [...***...] and [...***...]
regarding any prosecution or maintenance of the Licensed
Patents;
provided, however, that Corixa may not file any Licensed Patents
that
claim [...***...], and/or [...***...] unless requested to do so
in
advance by Gen-Probe. Any such filing or
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prosecution shall be performed by legal counsel selected by
Gen-Probe
and approved by Corixa, which consent shall not be unreasonably
withheld. Corixa shall keep Gen-Probe reasonably informed of
the
course of patent prosecution or other proceedings relating to
the
Licensed Patents. Gen-Probe shall hold all information disclosed to
it
under this Section 8.1 as Confidential Information.
(i)
Gen-Probe shall reimburse Corixa [...***...] incurred after
the Effective Date in connection with the filing,
prosecuting and maintenance of the Licensed Patents that
claim [...***...], and/or [...***...] whether or not Corixa
has a [...***...] development program, and for all Licensed
Patents for programs in which Corixa does not have a
[...***...] development program ongoing.
(ii) Gen-Probe
shall have the right to terminate, on thirty days
written notice to Corixa and on a country-by-country basis,
its obligation to reimburse Corixa for the costs of
prosecuting and maintaining any or all claims in any
Licensed Patents that claim [...***...], and/or [...***...].
In the event that Gen-Probe elects not to fund the
prosecution or maintenance of any such claim of any Licensed
Patents in a country, Gen-Probe shall relinquish all rights
under this Agreement with respect to such claim(s) and the
license granted hereunder shall terminate as to such
claim(s) in such country.
(iii) In
connection with the filing, prosecuting and maintenance
of the Licensed Patents that do not claim [...***...] and
for which Corixa has a [...***...] development program
ongoing and where the making, using, selling, and/or
importing of Licensed Product would infringe a Valid Claim
but for the license granted by Corixa hereunder, Corixa
shall first give Gen-Probe the opportunity to consider if it
has any interest in pursuing such claims. Gen-Probe shall
inform Corixa in writing regarding its decision to pursue
such claims within thirty (30) days of receiving a written
description of the proposed claims from Corixa. In the event
that Gen-Probe elects not to pursue such claims, Gen-Probe
shall have no obligation to reimburse Corixa for any costs
that may be incurred for the filing, prosecution or
maintenance of such claims and Gen-Probe shall relinquish
all future rights under the Agreement to such claims. In the
event Gen-Probe elects to pursue such claims, Gen-Probe
shall reimburse Corixa for [...***...] of the costs incurred
after the Effective Date in connection with the filing,
prosecuting and maintenance of the Licensed Patents that do
not claim [...***...], and/or [...***...] and for which
Corixa has a [...***...] development program ongoing and
where the making, using, selling, and/or importing of
Licensed Product would infringe a Valid Claim but for the
license granted by Corixa. Notwithstanding the foregoing,
such costs shall not in any event exceed $[...***...] per
year.
***CONFIDENTIAL TREATMENT REQUESTED
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<PAGE>
8.2.
ENFORCEMENT. A party will notify the other party if it becomes
aware
of the activities of any Third Party which are believed to
infringe
any of the Licensed Patents. Subject to the parties entering into
a
mutually acceptable joint defense agreement or both parties
agreeing
that a joint defense agreement is not necessary, the parties
shall
consult as to potential strategy or strategies to terminate
such
alleged infringement without litigation. Gen-Probe and/or its
sublicensee(s), at its/their sole discretion, may take
reasonable
actions to
terminate such alleged infringement without litigation.
Gen-Probe and/or its sublicensee(s) shall promptly notify Corixa
in
writing of its/their intention with regard to any such
infringement.
If the efforts of Gen-Probe and/or its sublicensee(s) are not
successful in terminating the alleged infringement, Gen-Probe
and/or
its sublicensee(s) shall have the right, but not the obligation,
to
commence any action or proceeding against such infringement, at
its/their own cost. To the extent Gen-Probe and/or its
sublicensee(s)
takes such action, Gen-Probe and/or its sublicensees shall control
any
such action undertaken by Gen-Probe and/or its sublicensee(s)
against
such an infringer, and Gen-Probe and/or its sublicensee(s) may
enter
into settlements, stipulated judgments or other arrangements
respecting such infringement, at its/their own expense;
provided
however, that if such proposed settlements, judgments or
arrangements
would result in reduction or elimination of payments to Corixa
under
this agreement, they shall be subject to Corixa's consent, not to
be
unreasonably withheld. If Gen-Probe and/or its sublicensee(s)
commences such infringement action, Corixa agrees to execute
all
papers and to perform such other acts as may be reasonably
required
(including consent to be joined as nominal party plaintiffs in
such
action). Gen-Probe and/or its sublicensee(s) shall reimburse
Corixa
for its out-of-pocket expenses relating to such infringement
action,
and Corixa may, at its option and expense, be represented by
counsel
of its choice. Any damages or other recovery from an
infringement
action undertaken by Gen-Probe and/or its sublicensee(s) pursuant
to
this section, after reimbursement of any reasonable litigation
expenses of the Parties and/or their sublicensee(s), shall be
divided
equally between Gen-Probe and/or its sublicense(s) on the one hand
and
Corixa on the other. If Gen-Probe and/or its sublicensee(s) fail
to
bring such infringement action within (i) 60 days following notice
of
alleged infringement or (ii) 30 days before the time limit, if
any,
set forth in the appropriate laws and regulations for the filing
of
such actions, whichever comes first, Corixa shall have the right
to
bring and control any such action at its own expense and by counsel
of
its own choice, and Gen-Probe shall have the right, at its own
expense, to be represented in any such action by counsel of its
own
choice. Corixa shall retain any damages or other recovery from
an
infringement action undertaken by Corixa.
9. CONFIDENTIALITY AND
PUBLICITY
9.1.
CONFIDENTIALITY. During the term of this Agreement and for
[...***...]
thereafter, all Confidential Information disclosed by one party to
the
other shall not be used by the receiving party except in
connection
with the activities contemplated by this Agreement, shall be
disclosed
to and used by only such personnel of the receiving party that
shall
have a need to know such information, shall be maintained in
confidence by the receiving party, and shall not be disclosed by
the
receiving party to any other person, firm or agency,
***CONFIDENTIAL TREATMENT REQUESTED
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<PAGE>
governmental or private, without the prior written consent of
the
disclosing party, except to the extent Confidential Information
is:
(a) known by or in possession of the receiving party at the time
of
its receipt as documented in written records;
(b) independently developed outside the scope of this Agreement
by
employees of the receiving party having no access to or knowledge
of
the Confidential Information disclosed hereunder as documented
in
written records;
(c) in the public domain at the time of its receipt or
thereafter
becomes part of the public domain through no fault of the
receiving
party;
(d) received without an obligation of confidentiality from a
Third
Party having the right to disclose such information;
(e) required to be disclosed to governmental agencies in order to
gain
approval to sell Licensed Products, or disclosure is otherwise
required by law, regulation or governmental or court order (so long
as
the receiving party provides notice of such disclosure, seeks
to
obtain protective orders or other available confidentiality
treatment
and, in the case of disclosures to the U.S. Securities and
Exchange
Commission provides an opportunity to review the disclosure prior
to
making such disclosure);
(f) released from the restrictions of this Sections 9.1 by the
express
written consent of the disclosing party; or
(g) disclosed to agents, consultants, assignees, sublicensees
or
subcontractors of Gen-Probe or Corixa or their Affiliates which
have a
need to know such information in connection with the performance
of
this Agreement, provided that such persons are or agree to be
subject
to the provisions of this Section 9.1 or substantially similar
provisions.
9.2. PUBLICITY.
Neither party will make, issue or release any public
announcement, press release, statement or acknowledgement of
the
existence of, or reveal publicly the terms, conditions and status
of,
the transactions contemplated herein, without the prior written
consent of the other party as to the content and time of release
of
and the media in which such statement or announcement is to be
made;
provided, however, that in the case of announcements,
statements,
acknowledgments or revelations which either party is required by
law
to make, issue or release, the making issuing or releasing of any
such
announcement, statement, acknowledgement or revelation by the party
so
required to do so by law shall not constitute a breach of this
Agreement if such party shall have given, to the extent
reasonably
possible, not less than two (2) calendar days prior notice to
the
other party, and shall have attempted, to the extent reasonably
possible, to clear such announcement, statement acknowledgement
or
revelation with the other party. No other party shall use the name
of
the other party or any of its Affiliates for advertising or
promotional purposes without the prior written consent of such
other
party. The parties acknowledge that Corixa will issue a press
release
shortly after the execution of this Agreement, the content of
which
shall be agreed to by the parties in advance of the issuance of
the
release.
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<PAGE>
10. TERM, TERMINATION, AND
SURVIVAL
10.1. TERM. This Agreement shall
commence on the Effective Date and, unless
sooner terminated pursuant to Sections 10.2, 10.3 or 10.4,
shall
terminate upon the expiration of Gen-Probe's obligation to pay
royalties under Section 5.2, above.
10.2.
TERMINATION BY GEN-PROBE. Gen-Probe may terminate this Agreement,
in
its sole discretion, upon [...***...] days prior written notice
to
Corixa, provided Gen-Probe pays Corixa all monies owed Corixa as
of
the
effective date of such termination and without prejudice to
Corixa's rights under this Agreement that accrued prior to such
termination.
10.3.
TERMINATION FOR CAUSE. In the event of a material breach by
either
party, the other party may terminate this Agreement by giving
the
breaching party notice of such m