EXHIBIT 10.4
APRIL 24,
2003
EXCLUSIVE
PATENT AND KNOW HOW LICENSE
AGREEMENT
BY AND BETWEEN
PHARMASSET, LTD
(LICENSOR)
AND
PRIMAGEN HOLDING B.V.
(LICENSEE)
concerning
Pharmasset’s
Mitochondrial Toxicity
Technology
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EXCLUSIVE PATENT LICENSE PHARMASSET
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CONFIDENTIAL / EXECUTION COPY APRIL
24, 2003
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Certain portions of this Exhibit
have been omitted pursuant to a request for confidentiality. Such
omitted portions, which are marked with brackets and asterisks
[***], have been separately filed with the Commission.
TABLE OF CONTENTS
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PREAMBLE
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3
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ARTICLE 1
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DEFINITIONS
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4
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ARTICLE 2
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GRANT OF EXCLUSIVE LICENSE
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4
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ARTICLE 3
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KNOW HOW AND MATERIALS
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6
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ARTICLE 4
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SUBLICENSES
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ARTICLE 5
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DILIGENCE
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ARTICLE 6
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ROYALTIES AND OTHER
CONSIDERATION
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ARTICLE 7
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ROYALTY STATEMENTS AND PAYMENT
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ARTICLE 8
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RECORD KEEPING AND INSPECTION
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10
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ARTICLE 9
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FILING AND MAINTENANCE OF PATENT
RIGHTS
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ARTICLE 10
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ENFORCEMENT OF TECHNOLOGY RIGHTS
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ARTICLE 11
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CONFIDENTIAL INFORMATION
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ARTICLE 12
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REPRESENTATIONS, WARRANTIES AND
COVENANTS
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16
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ARTICLE 13
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INDEMNIFICATION
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18
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ARTICLE 14
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TERM AND TERMINATION
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18
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ARTICLE 15
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NOTICES
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21
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ARTICLE 16
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APPLICABLE LAW AND FORUM
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21
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ARTICLE 17
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MISCELLANEOUS
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22
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SCHEDULE 1 –
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Definitions
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SCHEDULE 2 –
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Patent rights
(applications)
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SCHEDULE 3 –
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Parameters to
Support Measuring Efforts
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SCHEDULE 4 –
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Running Royalty
from Direct Sale
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SCHEDULE 5 –
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Stock Option
Agreement
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2
This Agreement is made the 24th day of April
2003
Between:
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1.
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PHARMASSET,
LTD, an International
Business Company incorporated and existing under the laws of
Barbados with US research laboratories located at 1860 Montreal
Road, Tucker, GA 30084, USA. (“ Licensor
”),
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and
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2.
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PRIMAGEN
HOLDING B.V., a limited
liability company incorporated and existing under the laws of the
Netherlands, having its registered office at Meibergdreef 59, 1105
BA Amsterdam (“ Primagen ”);
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(Licensor and Licensee hereinafter
referred to as “ Party ” or collectively “
Parties ”)
WHEREAS:
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i.
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Licensor has
filed certain patent applications and owns trade secret and
substantial know-how relating to mitochondrial toxicity technology
(the “ Technology Rights ”, as defined
hereinafter);
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ii.
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Primagen is
engaged in the research, development, commercialization and
exploitation of processes and products in the field of amongst
others diagnostics and is interested in obtaining from Licensor the
exclusive right to use and apply the Technology Rights;
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iii.
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Licensor is
willing to license to Primagen the exclusive right to use and apply
the Technology Rights, subject to the terms and conditions set
forth hereinafter;
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iv.
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In addition to
certain patent recovery and royalty payments, Primagen in return is
willing to grant Licensor the option to acquire a certain number of
shares of the common stock of Primagen, , all as described and
subject to the terms and conditions set forth
hereinafter,
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NOW, THEREFORE
, in consideration of the premises
and the terms and conditions contained in this Agreement and other
good and valuable consideration the receipt and
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EXCLUSIVE PATENT LICENSE PHARMASSET
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CONFIDENTIAL / EXECUTION COPY APRIL
24, 2003
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sufficiency of which is hereby acknowledged,
Licensor and Primagen, intending to be legally bound, have agreed
as follows:
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1.1
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Definitions . In this Agreement the capitalized words and
expressions shall have the meanings set out in Schedule 1
hereto.
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1.2
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Interpretation . As used in this Agreement, neutral pronouns
and any variations thereof shall be deemed to include the feminine
and masculine and all terms used in the singular shall be deemed to
include the plural, and vice versa, as the context may require. The
words “herein,” “hereof,”
“hereto” and “hereunder” and other words of
similar import refer to this Agreement as a whole, including the
schedules and exhibits hereto, as the same may from time to time be
amended or supplemented and not to any subdivision contained in
this Agreement. The word “including” when used herein
is not intended to be exclusive and means “including, without
limitation.” References herein to an article, section,
schedule or exhibit shall refer to the appropriate section,
subsection, clause, schedule or exhibit in or to this Agreement.
The headings of the articles, sections, schedules and exhibits of
this Agreement are intended merely to facilitate reference and
shall have no bearing upon the interpretation of any of the
provisions of this Agreement.
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ARTICLE 2
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GRANT OF
EXCLUSIVE LICENSE
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2.1
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Exclusive
Worldwide License .
Licensor hereby grants to Primagen, and Primagen hereby accepts
from Licensor, a sole and exclusive and royalty bearing license,
with the right to sublicense, in the Territory, under the
Technology Rights during the Term of this Agreement, to research,
develop, make, have made, use, import, export, market and sell
Products and to practice and have practiced Processes, without any
limitations except for those limitations expressly set forth
herein.
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2.2
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Intellectual Property Rights,
Improvements and Grant Back . All intellectual and/or industrial property
rights in work or resulting from work done by or on behalf of
Primagen pursuant to this Agreement, whether or not in
collaboration with Licensor or any of its Affiliates, or with
respect to Improvements, shall exclusively vest in Primagen.
Primagen shall grant back to Licensor a
non-transferable,
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EXCLUSIVE PATENT LICENSE PHARMASSET
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non-exclusive right to utilize and
practice any and all Improvements, as if and when originated, for
the lifetime of any patents, but only for the Authorized
Purpose.
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2.3
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Expression
of No Interest .
Notwithstanding the exclusive rights granted to Primagen under
Section 2.1, Licensor shall have the non-transferable
non-exclusive right to utilize and practice the Technology Rights
for such commercial purposes, in those parts of the Territory and
field of use in which, but only if, as and when, Primagen has
affirmatively expressed a lack of commercial interest. It is
expressly understood and agreed that Primagen shall only be obliged
to make such expression whether or not it is interested, within
sixty (60) calendar days of Licensor’s specific request
that Primagen expresses whether or not it is interested.
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2.4
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Non-exclusive Retained License
. Licensor, on behalf of itself and
its Affiliates, reserves the non-exclusive, non-transferable, right
to utilize and practice the Technology Rights solely for the
purpose of its Core Business, including the right to collaborate
with Third Parties to strengthen Licensor’s Core Business
only (the “ Authorized Purpose ”), and provided
always that said collaborator(s) will be bound by confidentiality
undertakings which provide at least as much protection to Primagen
as those of this Agreement and preventing disclosure of the
Technology Rights at all times, except as may be permitted by
Primagen. Except for the Authorized Purpose and as provided under
Section 2.3, and irrespective of anything to the contrary
herein, it is expressly understood and agreed that neither Licensor
nor any of its Affiliates shall have the right to utilize or
practice, or grant or allow Third Parties to utilize or practice,
the Technology Rights for any commercial, for-profit purpose or any
other purpose that will enable such Third Party to compete with
Primagen or any of its Affiliates or Sublicensees or that may
otherwise conflict with or may be to the detriment of
Primagen’s interest, as such interest is determined by
Primagen. No agreement concerning any permitted collaboration shall
relieve Licensor of any of its obligations under this
Agreement.
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2.5
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Non
assertion . During the
Term of this Agreement and so long as Primagen has not committed
any material breach of any obligation that allows Licensor to
terminate this Agreement pursuant to Section 14.2.2, neither
Licensor nor any of its Affiliates shall assert any of the
Technology Rights licensed hereunder against Primagen to prevent
Primagen or any of its Affiliates or Sublicensees from practicing
the rights granted to Licensee pursuant to this
Agreement.
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EXCLUSIVE PATENT LICENSE PHARMASSET
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CONFIDENTIAL / EXECUTION COPY APRIL
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ARTICLE 3
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KNOW HOW AND
MATERIALS
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3.1
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Delivery of
Know How to Primagen .
Within thirty (30) days of the Effective Date, Licensor shall
take substantial steps, with the assistance of Primagen, to
identify the Know How and Materials, and thereafter shall promptly
deliver to Primagen, at Primagen’s expense, such Know How and
Materials. Thereafter, promptly after the end of each calendar
year, to the end of this Agreement, Licensor shall similarly
identify and at Primagen’s request deliver to Primagen, at
Primagen’s expense, the Know How and Materials.
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3.2
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Site
visits . For the purpose
of facilitating disclosure to Primagen of Know How and Materials,
Licensor shall permit duly authorized employees of or
representatives of Primagen to visit laboratories and other
Licensor’s facilities at reasonable times, convenient for all
Parties involved and with reasonable notice. It is understood
between the Parties, that such visits shall not be permitted to
affect the normal course of work within the
laboratories.
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4.1
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Right to
Grant Sublicenses .
Subject to the provisions of this Agreement, Primagen shall have
the right to grant (exclusive and non-exclusive) sublicenses under
the license granted under Section 2.1 to its Affiliates and to
Third Parties. Primagen, within its sole discretion, shall
determine whether or not to grant a sublicense.
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4.2
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Responsibility for Sublicensees
. No sublicense shall relieve
Primagen of any of its obligations under this Agreement. Each
sublicense shall refer to and be generally consistent with this
Agreement in terms of running royalty obligations and diligence
requirements, and it shall at all times preserve the rights and
reservations of Licensor under this Agreement. Primagen shall
forward to Licensor a copy of each executed sublicense agreement
within 30 (thirty) days of its execution. Licensor agrees to
maintain such information about the (existence of the) sublicense
agreement in confidence.
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5.1
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Good Faith Commercially
Reasonable Efforts .
Primagen shall diligently pursue the development and
commercialization, including but not limited to marketing and sales
of the Products, using good faith commercially reasonable efforts
in accordance with
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EXCLUSIVE PATENT LICENSE PHARMASSET
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industry standards. The efforts
of a Sublicensee and/or an Affiliate and/or a collaborator of
Primagen shall be considered as efforts of Primagen. Subject to the
terms of this Agreement, Primagen shall have sole discretion for
making all decisions relating to the development, commercialization
and marketing of any Product or Process.
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5.2
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Parameters
to Support Measuring Efforts . If, in any calendar year, Primagen or its
Affiliate and/or a Sublicensee and/or a collaborator of Primagen
has performed any one of the parameters set out in Schedule
3 with respect to the Technology, then Primagen shall be deemed
to have complied with Primagen’s obligations under
Section 5.1.
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5.3
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Licensor’s Right to Terminate
Agreement . If Primagen
fails to comply with the obligations of Section 5.1 with
respect to any calendar year following the second calendar year as
of the Effective Date and, in addition, has not performed at least
one of parameters set out in Schedule 3, during that same calendar
year, Licensor’s sole and exclusive remedy for
Primagen’s failure to comply therewith shall be the right to
terminate this Agreement by written notice to Primagen within
ninety (90) days after the end of the applicable calendar
year, unless Primagen cures such failure prior to the expiration of
thirty (30) days after such notice.
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5.4
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Contestation . If Primagen receives a notice under
Section 5.3, Primagen shall have the right to contest such
notice by requesting arbitration under Article 16, and if Primagen
requests such arbitration this Agreement shall be terminated
pursuant to Section 5.3 only if in such arbitration there is a
final determination that Primagen has not met Primagen’s
obligation under Section 5.1 in the applicable calendar year
and, in addition, in such calendar year none of the events set out
in Schedule 3 has occurred.
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5.5
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No
Restrictions to Other Businesses . Licensor acknowledges that Primagen is in the
business of developing, manufacturing and selling of Products and
Processes and that nothing in this Agreement shall be construed as
restricting such business or imposing on Primagen the duty to
market, and/or sell and exploit the Products for which royalties
are due hereunder to the exclusion of or in preference to any other
product or process.
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EXCLUSIVE PATENT LICENSE PHARMASSET
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CONFIDENTIAL / EXECUTION COPY APRIL
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Certain portions of this Exhibit
have been omitted pursuant to a request for confidentiality. Such
omitted portions, which are marked with brackets and asterisks
[***], have been separately filed with the Commission.
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ARTICLE 6
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ROYALTIES
AND OTHER CONSIDERATIONS
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6.1
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Cash
Consideration . In
consideration of the rights granted herein to Primagen, Licensor
will be entitled to:
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6.1.1
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Patent and
Research Recovery Fee .
Primagen will pay to Licensor US $ [***] for patent and research
recovery costs payable in three installments:
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I. US $ 25,000 due and payable upon
signing of this Agreement by the Parties
II. US $ [***] on the first
anniversary of this Agreement’s Effective Date
III. US $[***] upon the granting or
letter of allowance of the first Patent Right concerning the
Technology in any part of the Territory.
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6.1.2
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Running
Royalty from Direct Sale . Primagen will pay to Licensor a running
royalty expressed as a percentage of Net Sales of any Products or
Process by Primagen or its Affiliates, said percentage(s) being
detailed in Schedule 4 .
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6.1.3
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Running
Royalty from Indirect Sale . Primagen will pay to Licensor a running
royalty of [***] percent ([***]%) of all and any Considerations
received from its Sublicensees to commercialize the Technology
Rights.
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6.1.4
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Minimum
Royalty . If royalty
payments to Pharmasset are less than US $ [***] on
December 31, 2004, or any year thereafter, Primagen shall pay
Licensor a minimum royalty of US $ [***] per year during the Term
of this Agreement. The minimum royalty shall be remitted within 60
days of the end of each calendar year, and provided that the
minimum royalty shall not be due for any previous calendar year, if
the payments referred in Section 6.1.2 and 6.1.3 due for the
Accounting Period relative to the same calendar year are equal or
greater than the minimum royalty.
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6.2
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Non-cash
Consideration: Stock Option . In consideration of the rights granted herein
to Primagen, upon execution of this Agreement, Primagen shall grant
Licensor an option to acquire a certain number of shares of the
common stock of Primagen subject to the terms and conditions laid
down in the stock option agreement enclosed in Schedule 5
(the “ Stock Option Agreement ”).
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EXCLUSIVE PATENT LICENSE PHARMASSET
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CONFIDENTIAL / EXECUTION COPY APRIL
24, 2003
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Certain portions of this Exhibit
have been omitted pursuant to a request for confidentiality. Such
omitted portions, which are marked with brackets and asterisks
[***], have been separately filed with the Commission.
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ARTICLE 7
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ROYALTY
STATEMENTS AND PAYMENT
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7.1
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Royalty
Statements . With each
payment, Primagen shall deliver to Licensor a full and accurate
accounting of the calculation of the royalties owing hereunder to
include at least the following information:
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(a)
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Quantity of
each Product or Process subject to royalty sold (by country) by
Primagen and its Affiliates;
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(b)
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Net Sales for
each Product or Process (by country), including a detailed
reconciliation from the gross invoiced sales price to Net
Sales;
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(c)
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The calculation
of the gross royalties (before deductions), for each Product or
Process (by country) and any deductions, offsets and credits
therefrom;
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(d)
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Total royalties
payable to Licensor for each Product or Process (by country) and
the total royalties payable to Licensor for all Products or
Processes (for all countries);
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(e)
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Considerations
received from Sublicensees as referred in
Section 6.1.3;
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(f)
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The calculation
and total royalties payable to Licensor in accordance with
Section 6.1.3.
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7.2
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Payments . All sums payable pursuant to this shall be
paid by the due date for payment as specified in this Agreement. If
Primagen fails to pay any sum due under this Agreement in full by
the due date for payment then Licensor may, without prejudice to
any other right or remedy available to Licensor, charge interest.
The interest rate shall be the three months Euribor rate, plus
[***] base points, on the second business day before the relevant
payment due date.
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7.3
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Currency and Exchange
Ratio . With respect to
sales (if any) of Products and Processes invoiced in EURO, the
gross sales, Net Sales and/or royalties received, and royalties
payable to Licensor shall be expressed in EURO. With respect to
sales of Products and Processes invoiced in a currency other than
EURO, the gross sales, Net Sales and/or royalties received, and
royalties payable to Licensor shall be expressed in the currency of
the invoice together with the EURO equivalent of the
royalty
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EXCLUSIVE PATENT LICENSE PHARMASSET
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CONFIDENTIAL / EXECUTION COPY APRIL
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payable, calculated using the
average rate of exchange published by the ABNAMRO Bank (the
Netherlands) for the ninety (90) days of the relevant
Accounting Period.
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7.4
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Sales
Tax . All sums payable
pursuant to this Agreement are exclusive of any value added tax or
any other sales tax or duties, which, where applicable, shall be
payable by Primagen in addition.
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7.5
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Suspension
of Payment . In the event
that Licensor materially breaches this Agreement, in addition to
any other remedy that Primagen may have, Primagen shall have the
right to notify Licensor in writing of such breach and if such
breach is not cured within 60 days thereafter, Primagen shall have
the right to suspend payments under this Agreement and no further
payment shall be due until such breach is cured. Payments will be
accrued during any dispute and it will all become due, within 30
days of settlement or a final and binding arbitral decision, if
Licensor is found not to be at fault.
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7.6
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Single
Royalty and Non-Royalty Sales . In no event shall more than one royalty be
payable under Article 6 with respect to a particular unit of
Products or Processes. No royalty shall be payable under this
Article 6 with respect to sales or transfers between Primagen and
its Affiliate Sublicensees, to the extent permitted under this
Agreement. No royalty shall be payable for (i) Products or
Processes used in clinical trials (for the development of the
product), (ii) Products or Processes used for research but
excluding Products labelled “For Research Only” or
equivalent, (iii) customary quantities of Products distributed
as free samples or (iv) reasonable quantities of Products
disposed of as donations to Third Parties (such as humanitarian and
charitable organizations).
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7.7
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Royalty
Relieve for Patent Expiry . A patent or patent application licensed under
this Agreement shall cease to fall within the Patent Rights for the
purpose of computing earned royalty payments in any given country
on the earliest dates that a Valid Patent Claim is
absent.
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ARTICLE 8
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RECORD
KEEPING AND INSPECTION
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8.2
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Maintenance of
Records . Primagen shall,
and shall procure that its (sub)licensees shall, keep at their
normal place of business detailed, accurate and up to date records
and books of account showing the quantity, description and value of
all Products and Processes supplied by Primagen and its licensees
in each country and all sums paid to Primagen by its licensees, in
each case for the three (3) years next following the
end
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EXCLUSIVE PATENT LICENSE PHARMASSET
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CONFIDENTIAL / EXECUTION COPY APRIL
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Certain portions of this Exhibit
have been omitted pursuant to a request for confidentiality. Such
omitted portions, which are marked with brackets and asterisks
[***], have been separately filed with the Commission.
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of the Accounting Period to which
each pertains. Primagen shall ensure that such records and books of
accounts are adequate to ascertain the royalties due to Licensor
under this Agreement.
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8.3
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Inspections . Primagen shall, and shall procure that its
licensees shall, make its records and books available to the extent
reasonably required for inspection during normal business hours by
an independent certified accountant selected by Licensor and
reasonably acceptable to Primagen upon reasonable notice during
normal business hours at Licensor’s expense for the sole
purpose of verifying royalty statements, but in no event more than
once in each calendar year. All information and data offered shall
be used only for the purpose of verifying royalties; shall be
treated as Primagen Confidential Information subject to the
obligations of this Agreement; and disclosure by such accountant to
Licensor shall be limited to the information necessary to quantify
any underpayment and to identify the cause thereof, including
without limitation the amount, if any, that any such royalties have
been underpaid.
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8.4
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Underpaid
Royalties . In the event
that for the Accounting Period(s) inspected, Primagen has underpaid
royalties then Primagen shall pay to Licensor the amount of the
underpaid royalty plus interest. The interest rate shall be the
three months Euribor rate, plus [***] base points, on the second
business day before the relevant payment date. If the underpayment
exceeds [***] percent ([***]%) of the amount that should have been
paid, then Primagen shall also pay the cost of the inspection. In
the event that there are three consecutive audits that indicate
that Primagen has underpaid royalties in excess of [***] percent
([***]%), then thereafter the interest rate on underpayments shall
be Euribor plus [***] base points and Licensor shall have the right
to conduct inspections under Section 8.3 on a calendar quarter
basis.
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ARTICLE 9
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FILING AND
MAINTENANCE OF PATENT RIGHTS
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9.1
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Preparation, Filing,
Prosecution, and Maintenance by Licensor . Except as otherwise provided in this Article
9, Licensor agrees to take responsibility for, but to consult with,
Primagen in the preparation, filing, prosecution, and maintenance
of any and all patent applications or patents included in the
Technology Rights and shall furnish copies of relevant
patent-related documents to Primagen. Prosecution for the purposes
of this Agreement shall mean all activities relating to the grant
of a Patent
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EXCLUSIVE PATENT LICENSE PHARMASSET
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CONFIDENTIAL / EXECUTION COPY APRIL
24, 2003
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Certain portions of this Exhibit
have been omitted pursuant to a request for confidentiality. Such
omitted portions, which are marked with brackets and asterisks
[***], have been separately filed with the Commission.
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Right but to exclude the
enforcement of Patent Rights and other Technology Rights as
provided in Article 10.
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9.2
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Consultation
and Opportunity to Comment . Licensor and its patent attorneys or patent
agents shall consult with Primagen in all aspects of the
preparation, filing, prosecution and maintenance of patent
applications and patents included within the Technology Rights and
shall provide Primagen sufficient opportunity to comment on any
document that Licensor intends to file or to cause to be filed with
the relevant intellectual property or patent office that may
materially affect the duration or scope of any resulting patent
right within the Technology Rights.
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9.3
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Duty to
Cooperate Fully .
Primagen agrees to cooperate fully with Licensor, its attorneys,
and agents in the preparation, filing, prosecution, and maintenance
of any and all patent applications or patents included in the
Technology Rights and to provide Licensor with complete copies of
any and all documents or other materials that Licensor deems
necessary to undertake such responsibilities.
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9.4
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Expenses . All fees and out of pocket costs, including
reasonable patent attorney fees, that become due and payable by
Licensor as of the Effective Date in connection with the
preparation, filing, prosecution and maintenance of patent
applications and patents forming part of the Technology Rights
shall be reimbursed by Primagen to the maximum of US $[***] per
calendar year, provided that any and all such activities and costs
that are anticipated to exceed US $[***] (i) shall be subject
to Primagen prior approval which shall not be withheld
unreasonably, and shall be deemed given if not responded to within
5 business days of Licensor’s request for approval,
(ii) shall be properly accounted for by (copies of) notes and
(attorneys time and billing) specifications, and (iii) if made
relative to countries outside the marketing and sales scope of
Primagen, shall be borne by Pharmasset unless agreed otherwise, on
a case by case basis.
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9.5
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Discontinuance
. If Licensor declines, abandons or
otherwise discontinues the preparation, filing, prosecution, or
maintenance of a Patent (application) with respect to inventions
relating to the Technology Rights, either generally or in a
specific country, and Primagen believes such a patent or patent
application should be prepared, filed, prosecuted or maintained,
Primagen shall notify Licensor in writing of its intent to prepare
and file such patent application or undertake said
prosecution
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and maintenance. If Licensor does
not file such patent application or declare its intention to
undertake the requested actions within thirty (30) days of the date
of the notice from Primagen, Primagen shall have the right, at its
own account, to prepare and file a patent application or commence
or continue the preparation, filing, prosecution, or maintenance,
at Primagen’s expense and Licensor shall cooperate with
Primagen in accordance with Section 9.3 (as if it were
Primagen).
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ARTICLE 10
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ENFORCEMENT
OF TECHNOLOGY RIGHTS
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10.1
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Notice of
Infringement, Misappropriation or Misuse. Primagen and Licensor agree to notify each other
promptly of each infringement or possible infringement or of any
misappropriation or misuse of the Technology Rights and
Improvements, as well as any facts which may affect the validity,
scope, or enforceability of the Technology Rights of which either
Party becomes aware.
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10.2
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Enforcement
of Rights . Primagen
shall have the exclusive right to initiate and prosecute any
enforcement action concerning the Technology Rights, including any
interference, opposition, infringement or validity litigation, as
Primagen deems fit at its own expense and in its own name, or to
control the defence of any actions (including declaratory judgment
actions) relating thereto. Any recovery of license fees obtained as
a result of such action, whether by judgment, award, decree or
settlement and that was proven to be indebted for the use of
Products and Processes shall be treated as Net Sales hereunder,
with Licensor being entitled to its attendant royalty as referred
to in Article 6. If Primagen decides not to prosecute any
enforcement action, including any interference, opposition,
infringement or validity litigation, and Licensor disagrees,
Licensor reserves the right to prosecute any enforcement action,
including any interference, opposition, infringement or validity
litigation, at Licensor’s cost. Any recovery of license fees
obtained as a result of such action by Licensor, whether by
judgment, award, decree or settlement and that was proven to be
indebted for the use of Products and Processes shall be treated as
Net Sales hereunder, with Primagen being entitled to equivalent
Licensors attendant royalty as referred to in Article 6 (in other
words, Primagen will receive what Pharmasset would otherwise
receive if Primagen was to take action and recover
fees).
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10.3
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Cooperation
. In any suit, action or proceeding
referred to in this Article 10 (regardless of which Party commences
or defends), Licensor and its Affiliates shall, at Primagen’
expense, fully cooperate with Primagen and supply all assistance
reasonably requested by Primagen carrying on the proceeding,
including providing
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Primagen with such witnesses,
documents and records and other evidence as may be reasonably
requested. Primagen shall keep Licensor informed of developments in
any action or proceeding, including, to the extent permissible by
law, the status of any settlement negotiations and the terms of any
offer related thereto.
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10.4
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Revocation
or Invalidity Actions. Primagen shall have the right to defend, at its
own expense, all suits or proceedings seeking to have any of the
Technology Rights revoked or declared invalid, unpatentable,
unenforceable or not infringed. All costs and expenses (including
attorneys’ fees) incurred in such action shall be payable by
Primagen defending such action.
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ARTICLE 11
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CONFIDENTIAL
INFORMATION
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11.1
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Confidentiality . Subject to Section 11.5, during the term
of this Agreement, it is contemplated that each Party will disclose
to the other Party confidential information and materials which is
owned or controlled by the party providing such information and
materials or which that party is obligated to maintain in
confidence and which is designated by the party providing such
information and materials as confidential (such material and
information is individually and collectively “
Confidential Information ”). Each Party shall have the
right to refuse to accept the other Party’s Confidential
Information. Subject to Section 11.5, each Party agrees to
retain the other Party’s Confidential Information in
confidence, and to limit disclosure of any such Confidential
Information to its officers, directors, employees and permitted
assigns on a need to know basis and only if the recipient of the
Confidential Information has agreed in writing to maintain
confidentiality. Each Party agrees to use the other Party’s
Confidential Information only as permitted by this Agreement, and
subject to Section 11.5, not to disclose or provide any such
Confidential Information to any other person or entity without the
prior written consent of the party providing such Confidential
Information.
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11.2
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Exemptions. The obligations of confidentiality and non-use
of Section 11.1 will not apply to:
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(a)
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portions of the
Confidential Information rightfully known to the receiving party,
without obligation of confidentiality or non-use, prior to
disclosure thereof by the disclosing party, as demonstrated by
written records of the receiving party;
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(b)
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portions of the
Confidential Information that become generally available to the
public, without restriction and without breach of this Agreement by
the receiving party; or
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(c)
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portions of the
Confidential Information that become rightfully available, without
obligation of confidentiality or non-use, to the receiving party
from others having no obligation to hold such Confidential
Information in confidence; or
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(d)
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based on such
Party’s good faith judgment with the advice of counsel, is
otherwise required to be disclosed in compliance with applicable
legal requirements to a public authority such as, without
limitation, the U.S. Food & Drug Administration (FDA), the
European Medicines Evaluation Agency (EMEA), or any comparable
authority or court of any country having jurisdiction, provided
that the Party required to make the disclosure takes reasonable
steps to restrict and maintain confidentiality of such disclosure
and provides reasonable prior notice to the other Party.
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11.3
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Non
Disclosure . Except as
provided in Section 11.2 and 11.4, neither Party shall
disclose any terms or conditions of this Agreement including
without limitation their existence, terms, or any disputes relating
to them, or any information concerning Technology Rights and
Confidential Information to any Third Party without the prior
consent of the other Party.
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11.4
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Permitted
Disclosures . A Party may
disclose the terms or conditions of this Agreement, (i) on a
need-to-know basis to its legal and financial advisors to the
extent such disclosure is reasonably necessary in connection with
such Party’s activities expressly permitted by this Agreement
and ordinary and customary business operations, and (ii) to a
Third Party in connection with (w) an equity investment in or
loan to such party or other financing, (x) a merger,
consolidation, change in control or similar transaction by such
Party, (y) the transfer or sale of all or substantially all of
the assets of such party, or (z) in connection with the
granting of a sublicense under this Agreement. Primagen may provide
or disclose Technology Rights and Confidential Information of
Licensor to a Third Party for use in a manner that is consistent
with the license granted to Primagen, provided that the Third Party
agrees to confidentiality provisions which provide at least as much
protection to Licensor as those of this Agreement. Licensor may
disclose Technology Rights to a Third Party under an obligation of
confidentiality subject to the provisions of
Section 2.4.
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11.5
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The
Parties’ obligations under this Article 11 shall terminate
five (5) years after the expiration or termination of this
Agreement.
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ARTICLE 12
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REPRESENTATIONS, WARRANTIES AND
COVENANTS
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12.1
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Mutual
Representations and Warranties . Each of Licensor and Primagen represents and
warrants to the other that:
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12.1.1
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it has the
corporate power and authority and the legal right to enter into
this Agreement and to perform its obligations hereunder;
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12.1.2
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it has taken
all necessary corporate action on its part to authorize the
execution and delivery of this Agreement and the performance of its
obligations hereunder; and
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12.1.3
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this Agreement
has been duly executed and delivered on its behalf, and constitutes
a legal, valid, binding obligation, enforceable against it in
accordance with its terms.
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12.2
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Licensor’s Representations, Warranties and
Covenants . Licensor
represents and warrants to and covenants with Primagen
that:
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12.2.1
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it owns all
right, title and interest in and to the Technology
Rights;
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12.2.2
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it has not
previously granted and, prior to expiration or termination of this
Agreement, will not grant any rights in the Technology Rights that
conflict with or will be inconsistent with the rights and licenses
granted to Primagen herein;
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