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COLLABORATION AGREEMENT

Research and Development Agreement

COLLABORATION AGREEMENT | Document Parties: pSivida LTD | AEA TECHNOLOGY QSA GmbH You are currently viewing:
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pSivida LTD | AEA TECHNOLOGY QSA GmbH

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Title: COLLABORATION AGREEMENT
Date: 1/20/2005

COLLABORATION AGREEMENT, Parties: psivida ltd , aea technology qsa gmbh
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                                                                     Exhibit 4.2

 

[***] - INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL

TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE

COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES AND EXCHANGE

ACT OF 1934, AS AMENDED.

 

                              PSIONCOLOGY PTE. LTD.

 

                                     - and -

 

                      SINGAPORE GENERAL HOSPITAL PTE. LTD.

 

                                      - and -

 

                        SGH TECHNOLOGY VENTURES PTE. LTD

 

        ================================================================

 

                             COLLABORATION AGREEMENT

 

        ================================================================

 

<PAGE>

 

THIS AGREEMENT is made as of the 24th day of July 2002

 

BETWEEN:

 

1      PSIONCOLOGY PTE. LTD. a company   incorporated   under the laws of Singapore

      and whose   registered   office is at 80   Robinson   Rd,   #17-02,   Singapore,

      068898. ("PSIONCO"); and

 

2      SINGAPORE   GENERAL HOSPITAL PTE LIMITED a company   incorporated   under the

      laws of   Singapore   and whose   registered   office is at 11 Third   Hospital

      Avenue, #07-00 SNEC Building, Singapore 168751 ("SGH"); and

 

3      SGH TECHNOLOGY VENTURES PTE LIMITED a company   incorporated under the laws

      of Singapore with   registration   number   200205889D   and whose   registered

      office is at 11 Third Hospital   Avenue,   #07-00 SNEC   Building,   Singapore

      168751 ("SGHT").

 

PRELIMINARY

 

(1)    By a   Subscription   and   Shareholders   Agreement   between SGHT,   pSiMedica

      Limited (a company   incorporated under the name of Forceglass Limited on 5

      July, 2000 with a registered number 4027099 and whose registered office is

      at One, St. Paul's   Churchyard,   London EC4M 8SH)   ("PSIMEDICA"),   Biotech

      Research   Ventures   Pte Ltd (a   company   incorporated   under   the   laws of

      Singapore under number 200101402W of registered   office,   24a Duxton Hill,

      Singapore    089607   ("BRV"))   and   pSiOnco,    of   even   date   (the   "SHARE

      SUBSCRIPTION   AGREEMENT"),   it was agreed that SGHT and pSiOnco,   together

      with SGH would execute this Agreement upon its terms and conditions.

 

(2)    By a Patent and Know-how Licence   Agreement   between (1) pSiMedica and (2)

      pSiOnco of even date,   pSiMedica   granted   pSiOnco a limited licence under

      the pSiOnco Patents and pSiOnco Know-how to research,   discover,   develop,

      manufacture,   have manufactured,   use market and sell within the Field the

      pSiOnco Materials together with the right to grant sub-licences within the

      Field (the "PATENT AND KNOW-HOW LICENCE")

 

 

<PAGE>

                                      -2-

 

 

NOW IT IS HEREBY AGREED AS FOLLOWS:

 

1.     DEFINITIONS AND INTERPRETATION

 

      1.1    In   this   Agreement   and in the   Schedules   to   this   Agreement   the

            following words and phrases shall have the following meanings unless

            the context requires otherwise:

 

               "Agreement"     the terms and   conditions set out in this document

                              and any and all Schedules and Appendices   attached

                              to it as the same may be varied   from time to time

                              in    accordance    with   the   Change   of    Research

                              Programme Procedure;

 

               "Board"         the   board   of   directors   for the   time   being of

                               psiOnco;

 

               "Business

               Day"            a day other   than a   Saturday,   Sunday,   or public

                              holiday in Singapore;

 

               "Chairman"      the   chairman   of the   Joint   Research   Committee,

                               appointed    in     accordance     with    the    Share

                              Subscription Agreement;

 

               "Change"        a change to the Research Programme or the services

                              provided   in   accordance   with this   Agreement   to

                              which the Change of Research   Programme   Procedure

                              applies;

 

               "Change of

               Research

               Programme

               Procedure"      the procedure set out in Clause 14.1 to 14.3;

 

               "Chemotherapy

               Agents"         Generic   Chlorambucil or its generic   variants and

                              generic    5-Flourouracil    (5FU)   or   its   generic

                               variants and/or such other chemotherapy   agents as

                              agreed    with    pSiOnco    from   time   to   time   in

                              accordance   with the Change of Research   Programme

                               Procedure;

 

<PAGE>

                                      -3-

 

 

               "Commencement

               Date"           the date first written above;

 

               "Competent

               Authority"      any    local    or    national    agency,    authority,

                              department,    inspectorate,    minister,    ministry

                              official or public or   statutory   person   (whether

                              autonomous   or   not)   of   any   country   or of   any

                               government of any country having jurisdiction over

                              the   Agreement   or any of the   Parties or over the

                              development    or    manufacture    or   marketing   of

                               medicinal   products   including   but not limited to

                              the Health Sciences Authority of Singapore;

 

               "Documents"     paper, notebooks,   books, files, ledgers, records,

                              tapes,   discs,   diskettes,   CD-ROM   and any   other

                              media on which Know How can be permanently stored;

 

               "Field"         intra-tumoural radiotherapy using the Radiotherapy

                              Agents   and   chemotherapy   using the   Chemotherapy

                              Agents where the therapy is applied interstitially

                              within   the   tumour   (and not in any other   matter

                              parenterally or otherwise) which for the avoidance

                              of doubt avoids introduction via the vasculature;

 

               "Force

               Majeure"        in relation to any Party any event or circumstance

                              which is beyond   the   reasonable   control   of that

                              Party,   which that Party could not   reasonably   be

                              expected   to   have   taken   into    account   at   the

                              Commencement   Date and which   results in or causes

                              the failure of that Party to perform any or all of

                              its obligations under this Agreement   including an

                              act   of   God,    lightning,    fire,   storm,   flood,

                              earthquake,   accumulation   of snow or ice, lack of

                              water    arising   from   weather   or    environmental

                              problems,   strike,   lockout   or   other   industrial

                               disturbance   arising in relation to the work force

                              of a Third Party,   war,   terrorist act,   blockade,

                              revolution,   riot   insurrection,   civil commotion,

                               public demonstration,   sabotage, act of vandalism,

                              prevention   from or   hindrance in obtaining in any

                              way    materials,    energy    or    other    supplies,

                              explosion, fault or failure of plant or machinery,

                              governmental   restraint,   act of   legislature   and

                              directive or requirement of a Competent   Authority

                              governing   any Party,   provided that lack of funds

                              shall not be   interpreted   as a cause   beyond   the

                              reasonable control of that Party;

 

<PAGE>

                                      -4-

 

 

 

               "Group"          in relation to any person, being a corporate body,

                              that   person   any   "subsidiary"   thereof,   or   any

                              "holding   company" thereof or "subsidiary" of such

                              "holding   company" as defined in the Companies Act

                              Cap 50;

 

               "Intellectual

               Property"       copyright   and related   rights,   database   rights,

                              design rights,   trade marks, trade names,   service

                              marks,   domain   names,   Patent   Rights,   Know How,

                              Materials   and other   such   intellectual   property

                              rights   existing now or in the future   anywhere in

                              the world (whether   registered or not) and any and

                              all applications or renewals for such rights;

 

               "Joint

               Research

               Committee"      the committee established pursuant to Clause 4;

 

               "Know How"      unpatented technical and other information related

                              to or   useful   in the   Field   which   is not in the

                              public    domain    including,     ideas,    concepts,

                              inventions,      discoveries,     data,     formulae,

                              specifications,   information relating to Material,

                              procedures for   experiments   and tests and results

                              of    experimentation    and   testing,    results   of

                              research   and   development    including   laboratory

                              records and data analyses;

 

<PAGE>

                                       -5-

 

 

               "Material"      any chemical or biological   substances   related to

                              or useful in the Field including,   but not limited

                              to any:

 

                                (a)      organic or inorganic chemical element or

                                        compound;

 

                                (b)      amino acid, amino acid sequence, peptide

                                        or protein;

 

                                 (c)      nucleotide    or    nucleotide     sequence

                                        including DNA and RNA sequences;

 

                                (d)      vector or construct   including plasmids,

                                        phages or viruses; or

 

                                (e)      assay or reagent;

 

               "Parties"       SGH,   pSiOnco   and   SGHT   and a   "Party"   shall be

                              construed accordingly;

 

               "Patent

               Rights"         to the   extent   related to or useful in the Field,

                              patent applications, patents, author certificates,

                              inventor    certificates,    utility    certificates,

                              improvement patents and models and certificates of

                              addition and all foreign   counterparts of them and

                              includes all divisions,   renewals,   continuations,

                              continuations-in-part,     extensions,     reissues,

                              substitutions,     confirmations,     registrations,

                              revalidations and additions of or to them, as well

                              as any supplementary   protection   certificate,   or

                              like   form   of   protection,    in   respect   thereof

                              existing   now or in   the   future   anywhere   in the

                              world;

 

<PAGE>

                                       -6-

 

 

               "pSiOnco

               Intellectual

               Property"       the pSiOnco   Patent   Rights,   pSiOnco Know How and

                              pSiOnco Material;

 

               "pSiOnco

               KnowHow"        the Know How in the Field   owned by or licensed to

                              pSiOnco as set out in Schedule 2;

 

               "pSiOnco

               Material"       the Materials in the Field owned by or licensed to

                              pSiOnco as set out in Schedule 3;

 

               "pSiOnco

               Patent

               Rights"         the   Patent   Rights   in   the   Field   owned   by   or

                              licensed   to pSiOnco as set out in   Schedule 4 and

                               all Patent Rights arising therefrom;

 

               "Programme

               Intellectual

               Property"       Any    Intellectual    Property    arising   from   the

                              Research   Programme   carried   out by the   Research

                              Group during the Research Term;

 

               "Radiotherapy

               Agents"         isotopes of   Phosphorous   and   isotopes of Yitrium

                              and/or such other   agents as agreed   with   pSiOnco

                              from time to time in accordance with the Change of

                              Research Programme Procedure;

 

               "Research

               Group"          that   part   of   the   Department   of    Experimental

                               Surgery at SGH which is   undertaking   the Research

                              Programme   and   which is   directed   by Dr.   Pierce

                              Chow;

 

               "Research

               Programme"      the programme of research set out in Schedule 1 as

                              may be   amended   from   time to time in   accordance

                              with the Change of Research Programme Procedure;

 

<PAGE>

                                      -7-

 

 

               "Research

               Term"           the period   during   which the   Research   Programme

                              will be   undertaken   as set out in   Clause   3.1 or

                              such other   period as may be amended   from time to

                              time in   accordance   with the   Change of   Research

                              Programme Procedure;

 

               "SGHT

               Intellectual

               Property"       the Intellectual   Property owned by or licensed to

                              SGHT and SGH as set out in Schedule 5; and

 

               "Third

               Party"          any entity or person   other than the   Parties or a

                              member of a Party's Group.

 

 

       1.2     In this Agreement:

 

              1.2.1   unless the context otherwise requires,   all references to a

                     particular   clause or schedule shall be a reference to that

                     clause or   schedule   in or to this   Agreement   as it may be

                     amended from time to time pursuant to this Agreement;

 

              1.2.2   the   table   of   contents   and   headings   are   inserted   for

                     convenience   only and shall be ignored in   construing   this

                     Agreement;

 

              1.2.3   unless the contrary intention appears,   words importing the

                     masculine   gender shall include the feminine and vice versa

                     and   words in the   singular   include   the   plural   and vice

                     versa;

 

              1.2.4   unless   the   contrary   intention   appears,   words   denoting

                     persons shall include any individual, partnership, company,

                     corporation, joint venture, trust association, organisation

                     or   other   entity,   in   each   case   whether   or not   having

                     separate legal personality;

 

              1.2.5   the words   "include",   "included" or "including"   are to be

                      construed   without   limitation   to   the   specifics   of   the

                     subsequent words;

 

<PAGE>

                                      -8-

 

 

              1.2.6   reference   to   any   statute   or   regulation    includes   any

                      modification or re-enactment of that statute or regulation;

                     and

 

              1.2.7   references   to each of pSiOnco,   SGH and SGHT shall include

                     references to each of their   permitted   successors in title

                     and assigns.

 

2.      RESEARCH LICENCES

 

       2.1     SGHT and SGH hereby   grants to pSiOnco   and SGH any and all rights

              and   permissions   required to   undertake   the   Research   Programme

              whether at the premises of SGH or elsewhere including any licences

              required under any and all SGHT   Intellectual   Property and to the

              extent   that   the   use   of   such   SGHT   Intellectual   Property   is

              necessary to research,   develop,   manufacture,   have manufactured,

              use,   market and sell the Programme   Intellectual   Property,   SGHT

              hereby grants pSiOnco a royalty-free, perpetual licence to use the

              SGHT Intellectual Property for such purposes.

 

       2.2     pSiOnco   hereby   grants to SGH a   non-transferable,   royalty free,

              non-exclusive   licence under the pSiOnco Intellectual Property and

              any Programme   Intellectual   Property assigned to pSiOnco pursuant

               to Clause 7.1 for the purpose of   carrying   out SGH's tasks in the

              Research Programme within the Field.

 

3.      RESEARCH PROGRAMME

 

       3.1     SGH   hereby    undertakes   to   provide   the   services   required   to

              undertake the Research Programme as set out in Schedule 1 (subject

              to any variation   thereto   agreed in writing by SGH and pSiOnco in

              accordance with the Change of Research   Programme   Procedure) with

              all   reasonable   skill and care for a period   of twenty   four (24)

              months from the Commencement Date (the "RESEARCH TERM");

 

       3.2     In connection with the provision of the services under this Clause

              3 SGH   shall   only use such   employees   or   persons   as have   been

              approved in advance in writing by pSiOnco for these purposes,   and

              SGH   shall   provide   pSiOnco   with   copies of the   resumes   of its

              employees who are to undertake any part of the Research   Programme

              and form part of the Research   Group.   For the   avoidance of doubt

              pSiOnco agrees to the use of the individuals identified by name as

              approved in Schedule 1 who shall form the initial Research Group;

 

<PAGE>

                                      -9-

 

 

       3.3     SGH shall   ensure   that all   employees   or persons   used by SGH to

              perform the Research   Programme   (including,   without   limitation,

              those   in   the   Research   Group)   shall   be   bound   by   provisions

              equivalent   to   those   regarding    confidentiality    (Clause   10),

              publications   (Clause 11),   non-compete (Clause 9.2) and ownership

              of intellectual property (Clause 7) as set out in this Agreement .

 

       3.4     Each of SGH and pSiOnco   shall keep or cause to be kept   Documents

              relevant   to the   Research   Programme,   such   Documents   shall   be

              maintained separately by SGH from records and notebooks of results

              which are not part of the Research Programme;

 

       3.5     Unless   otherwise   agreed   between   SGH and   pSiOnco   in   writing,

              neither SGH nor pSiOnco   shall be under any   obligation to provide

              additional   resource or facilities in connection with the Research

              Programme over and above that agreed   pursuant to this Clause 3 or

              as set out in the Research Programme;

 

       3.6     pSiOnco   acknowledges   that   SGH   is   in   receipt   of   funds   from

              charitable and   governmental   organisations   to carry out research

              and that SGH is   contractually   obliged to carry out that research

              in   accordance   with the relevant   terms of that   funding.   In the

              light of this,   pSiOnco agrees that those   employees of SGH funded

              by the said non-commercial   organisations   shall, at all times, be

              free to pursue the research for which they have been funded and so

               long as research   conducted by members of the Research   Group does

              not conflict with or reduce or in any way diminish any proposed or

              anticipated   contribution   by the   Research   Group to the Research

              Programme.

 

       3.7     If either of SGH or pSiOnco requires a licence to any Intellectual

              Property owned by a person other than the Parties or any member of

              a Party's Group for the purposes of the Research   Programme,   this

               shall first be discussed by the Joint Research   Committee,   but no

              Party shall enter into a licence   for that   Intellectual   Property

              without   the prior   consent of   pSiOnco.   To the extent   that such

              Intellectual   Property   is owned by a Party   but not   licensed   to

              either SGH or pSiOnco pursuant to this Agreement,   then that Party

              shall, do, or procure to be done, all further acts and execute and

              deliver,   procure to be executed and   delivered,   all such further

              documents and instruments as shall be required in order for SGH or

              pSiOnco to use such Intellectual Property.   Neither Party shall be

              in breach of this   Agreement   where it is unable to carry out part

              of the Research   Programme because to do so without such a licence

              would infringe the Intellectual   Property rights of a person other

              than   the   Parties   unless   they   were   aware of the need for such

              licence at the date of this Agreement.

 

<PAGE>

                                      -10-

 

 

       3.8     SGH shall not delegate to any third party the   performance   of the

              Research Programme without the prior written consent of pSiOnco;

 

       3.9     SGH shall have no power to enter into any   agreement or accept any

              commitments, liability or similar on behalf of pSiOnco.

 

4.      JOINT RESEARCH COMMITTEE

 

       4.1     Immediately   following   the   execution of this   Agreement   SGH and

              pSiOnco shall establish the Joint Research Committee in accordance

              with Clause 4.3 to oversee and manage the Research Programme.

 

       4.2     The Joint Research   Committee will provide a framework for project

              management   and    communication    between    pSiOnco   and   SGH.   In

              particular, the Joint Research Committee shall:

 

              4.2.1   subject to the   provisions of this   Agreement and the Share

                      Subscription Agreement allocate the work under the Research

                     Programme as appropriate (taking into account the manpower,

                     facilities   and   equipment   available   to   each   of SGH and

                      pSiOnco);

 

              4.2.2   monitor   progress   against   the agreed   milestones   and the

                     timetable of the Research Programme;

 

              4.2.3   promote   and ensure   the due   performance   of the   Research

                      Programme;

 

<PAGE>

                                      -11-

 

 

              4.2.4   advise and assist in the   resolution   of any   scientific or

                     technical   difficulties which are experienced by either SGH

                     or pSiOnco personnel engaged on the Research Programme;

 

              4.2.5   review the results of the Research Programme with a view to

                     identifying    any    patentable    inventions    and   consider

                     opportunities for publications and patent filings,   subject

                     to   the    provisions   of   this    Agreement   and   the   Share

                     Subscription Agreement;

 

              4.2.6   prepare quarterly reports for submission to the Board, and

 

               4.2.7   subject   always to   Clause 2   propose   to the Board and SGH

                     amendments to the Research   Programme   from time to time as

                     may be   necessary   or   desirable   which   shall be agreed in

                     accordance with the Change of Research Programme Procedure;

 

PROVIDED   ALWAYS that the Joint Research   Committee   shall have no power to bind

either   pSiOnco or SGH and   decisions   reached   by it shall be   treated   only as

proposals   or   recommendations   to the   Board   of   pSiOnco   and   to   SGH   unless

specifically agreed otherwise in writing.

 

4.3     The Joint   Research   Committee   shall be   established   and run by SGH and

       pSiOnco as follows:-

 

       4.3.1   The   Joint   Research   Committee   shall   comprise   six (6)   members

              ("Members")   comprising   three (3) appointees from each of SGH and

              pSiOnco. The initial Members of the Joint Research Committee shall

              be as follows:

 

              SGH MEMBER                           PSIONCO   MEMBER

 

              Pierce Chow                         Leigh Canham

 

              Kai Zhang                           Steve Connor

 

              Robert Tech Hin                     Roghieh Safie

 

<PAGE>

                                       -12-

 

 

       4.3.2   In addition to the three SGH Members SGH may invite an employee or

              representative   of SGH (an   "INVITEE")   to   meetings   of the Joint

              Research   Committee if in SGH's   opinion the   attendance   of a SGH

               employee or representative is desirable in relation to one or more

              items on the agenda of the relevant   meeting or for the purpose of

              properly advising SGH in relation to matters under this Agreement.

              Prior to any such meeting SGH shall   inform   pSiOnco in writing of

              the SGH employee or representative who will be in attendance.

 

       4.3.3   In addition to the three   pSiOnco   Members,   pSiOnco may invite an

              additional employee or representative of pSiOnco (an "INVITEE") to

              meetings of the Joint Research   Committee if in pSiOnco's   opinion

              the   attendance   of such   pSiOnco   employee or   representative   is

              desirable   in   relation   to one or more items on the agenda of the

              relevant   meeting or for the   purpose of   properly   advising it in

              relation   to   matters   under   this   Agreement.   Prior   to any such

              meeting   pSiOnco   shall   inform   SGH in   writing   of   the   pSiOnco

              employee or representative who will be in attendance.

 

       4.3.4   Each of SGH and   pSiOnco   shall be   entitled   to remove any Member

              appointed   by it and to   appoint   any   person   to   fill a   vacancy

               arising from the removal or retirement of such Member.   Each Party

              shall give the others prior written notice of any proposed changes

              in the identity of their Members.

 

       4.3.5   The Parties   shall use all   reasonable   endeavours   to ensure that

              their   appointed   Members   and/or   Invitees   are   of   a   level   of

              expertise   and seniority to deal with the issues that may arise in

              connection with the Research Programme.

 

        4.3.6   The Joint Research   Committee   shall meet forthwith   following the

              Commencement   Date and thereafter   shall hold regular   meetings at

              intervals   of not more than four (4) months and at any time during

              normal   business   hours on any   Business   Day upon the   request of

              either SGH or pSiOnco.

 

<PAGE>

                                      -13-

 

 

       4.3.7   The venue for all meetings shall be in Singapore, unless otherwise

              agreed,   in which case (where the   meeting   does not take place in

              Singapore at the request of pSiOnco) pSiOnco shall bear all travel

              and subsistence costs incurred by SGH's Members in connection with

              their   attending the meeting in question.   A Member or Invitee may

              attend by   telephone   or video   conference   provided   that all the

              Members present can hear all parts of the proceedings.

 

       4.3.8   At least fourteen (14) days' written notice of each meeting of the

              Joint   Research   Committee   shall be given to each   Member   by the

              Party convening the meeting.

 

       4.3.9   The quorum for meetings of the Joint Research   Committee   shall be

              four (4) Members   provided   at least two (2) Members   from each of

              SGH and pSiOnco are   present.   Members may be   represented   at any

              meeting   by   another   Member   designated   in writing by the absent

              Member.   Members   attending by   telephone   or by video   conference

              shall for the avoidance of doubt count in the quorum.

 

       4.3.10 The   chairman of the Joint   Research   Committee   (who shall be the

              research   director of the Research Group or in his absence another

              member of the Joint Research   Committee)   shall be responsible for

              the   preparation   of the   minutes   of each   meeting   of the   Joint

              Research Committee. A copy of the minutes of each meeting shall be

              sent to each   of the   Members   within   fourteen   (14)   days of the

              meeting   which they   record.   The minutes   for a meeting   shall be

              approved by the Joint Research Committee at the next meeting.

 

       4.3.11 The   Chairman   of   the   Joint   Research   Committee   or   his or her

              designate shall prepare quarterly reports during the Research Term

              summarising   in   reasonable   detail the   results   of the   Research

              Programme   during the   preceding   quarter.   Copies of such reports

              shall   be sent   to the   Parties   within   30 days of the end of the

              quarter to which they relate.

 

<PAGE>

                                      -14-

 

 

5.      RESEARCH FUNDING

 

        5.1     As a   contribution   to SGH's costs for   carrying   out its allotted

              tasks under the Research Programme, pSiOnco shall make payments to

              SGH in   accordance   with   the   Research   Plan   costs   outlined   in

              Schedule 1.

 

       5.2     All payments   shall be made by pSiOnco in   Singapore   dollars on a

              quarterly   basis upon   submission   of a valid invoice by SGH. Such

              payments shall be made directly to SGH as directed by SGH.

 

       5.3     SGH shall apply the payments   received   from   pSiOnco   pursuant to

              Clause 5.1   exclusively   for the sole   purpose of carrying out the

              Research Programme.

 

6.      ACADEMIC COLLABORATIONS

 

       6.1     The   Parties   acknowledge   that   it   may   be   desirable   to   forge

              collaborative   links with Third Party   academic   groups to support

              the   Research   Programme.   In the   event   that   SGH   desires   such

              collaboration,   the   opportunity   in question shall be referred to

              the Board for approval of any such   collaboration.   pSiOnco   shall

              not unreasonably   hinder the establishment of such links where the

              Third Party in question is willing to enter into the collaboration

              on   reasonable   terms and where the   results of such   Third   Party

              collaboration will be available to pSiOnco within the framework of

              the Research   Programme.   SGH shall not, without the prior written

              consent of pSiOnco,   encumber any Programme   Intellectual Property

              in any such academic collaboration.

 

       6.2     In the event that pSiOnco desires a collaboration   between SGH and

              a Third Party,   the   opportunity   in question shall be referred to

              the Chief Executive of SGH for written   approval and SGH shall not

              unreasonably   hinder the   establishment   of such   links   where the

              Third Party in question is willing to enter into the collaboration

              on   reasonable   terms and where the   results of such   Third   Party

              collaboration will be available to pSiOnco within the framework of

              the Research   Programme.   SGH shall not be under any obligation to

              accept such a   collaboration   which by way of such a collaboration

              with a Third   Party   significantly   alters   SGH's   obligations   to

              pSiOnco as detailed in this Agreement.

 

<PAGE>

                                       -15-

 

 

       6.3     Each Party shall   ensure that no   Documents   are   published by any

              Third Party collaborator unless in accordance with Clause 11.

 

7.      OWNERSHIP AND MANAGEMENT OF INTELLECTUAL PROPERTY

 

       7.1     SGH and SGHT hereby assign by way of present and future assignment

              with full title guarantee and free from charges,   liens, mortgages

              or other   encumbrances of any kind to hold unto pSiOnco absolutely

              all their interests in and to any Programme   Intellectual Property

              and the full and exclusive benefits thereof and rights, privileges

              and advantages associated with them including:

 

              7.1.1   the full   right to apply for and   obtain   patents   or other

                     forms of   protection   in   respect of all or any part of the

                     Programme Intellectual Property throughout the world;

 

              7.1.2   the right to claim   priority   from the   patent   application

                     included   with   any   programme    Patents   under   the   Paris

                     Convention (as amended) when making such applications;

 

              7.1.3   the    right    to    file    divisional,     continuation    and

                      continuation-in-part    applications   in   its   own   name   in

                     respect   of   subject   matter   described   in   the   Programme

                     Patents; and

 

              7.1.4   the right to recover,   and take all such proceedings as may

                     be necessary for the recovery of, damages or other forms of

                     relief   in   respect   of   all   infringements   of   rights   in

                     Programme    Intellectual    Property   or   any   other   rights

                     assigned under this   Agreement   matters taking place before

                     or after the Commencement Date.

 

       7.2     SGH and SGHT   hereby   agree to do or   procure to be done all other

              acts and to execute   and deliver all such   further   documents   and

              instruments   as shall   be   required   to give   full   effect   to the

              assignment   under   Clause 7.1 or the   recording by pSiOnco of such

              assignment   including   by signing   any   documents   required by any

              national patent office or other equivalent registry.

 

<PAGE>

                                      -16-

 

 

       7.3     The   prosecution,   maintenance,   defence   and   enforcement   of the

              Programme   Intellectual   Property shall be the   responsibility   of

              pSiOnco   save that   pSiOnco   shall give copies of all   significant

              documents   relating   to the same to SGH and SGHT in order that SGH

              and SGHT may keep   records of all relevant   events   related to the

              Programme Intellectual Property.

 

8       CONSIDERATION

 

8.1     Subject   to   the   provisions   of the   Share   Subscription   Agreement,   on

       achievement   of a milestone (as detailed in Clauses 8.1.1 to 8.1.3 below)

       within the Research Term plus six months, SGHT together with BRV shall be

       entitled   to   subscribe   for the   further   number of   ordinary   shares in

       pSiOnco   set out in   Clauses   8.1.1 to 8.1.3   below   (in the ratio of two

       thirds to SGHT and one third to BRV) [***]:

 

       8.1.1   [***] on completion of pre-clinical studies leading to approval by

              the Ethics   Committee or any other   appropriate   committee for the

              first trial in humans;

 

       8.1.2   [***] on completion of the first clinical trial to test for safety

              in a human; and

 

       8.1.3   [***] on completion of the first clinical trial to demonstrate for

              efficacy in a human.

 

8.2     The   subscription   price per share for such   further   tranches   of shares

       shall be [***].

 

8.3     Such shares issued in accordance   with this Clause 8 will be held subject

       to and in accordance with the Share Subscription   Agreement and pSiOnco's

       articles of association.

 

8.4     For the   avoidance   of   doubt   SGHT   and BRV   shall   not be   entitled   to

       subscribe for any shares under this Clause 8 in respect of the successful

       achievement of (a) particular   milestone(s) if such m


 
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