LICENSE AGREEMENT
EXHIBIT 10.2
** CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND WILL BE FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST.
THIS LICENSE AGREEMENT is made as of the 31st day of May, 2001 by and between BENTLEY PHARMACEUTICALS, INC., a Delaware corporation, with offices at 00 Xxxxxxxxx Xxxx, 0xx Xxxxx, Xxxxx Xxxxxxx, Xxx Xxxxxxxxx 03862-2403 (hereinafter, “BENTLEY” or “Licensor”), and AUXILIUM A2, INC., a Delaware corporation having a principal place of business at 000 X. Xxxxxxxxxx Xxxx, Xxxxx X-0, Xxxx Xxxxxxxx, Xxxxxxxxxxxx 00000 (hereinafter, “AUXILIUM” or” Licensee”). BENTLEY and AUXILIUM may be referred to as a “Party” or, collectively, as “Parties.”
WHEREAS BENTLEY is willing to grant such a license under certain terms and conditions.
ARTICLE I
1.1 The following terms, as used herein, shall have the following meanings:
“Act” shall mean the United States Federal Food Drug and Cosmetic Act and applicable regulations.
“Affiliate” means, when used with reference to a Party, any person directly or indirectly Controlling, Controlled by or under common Control with a Party.
** CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND WILL BE FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST.
“Bankruptcy Event” means the person in question becomes insolvent, or voluntary or involuntary proceedings by or against such person are instituted in bankruptcy or under any insolvency law, or a receiver or custodian is appointed for such person, or proceedings are instituted by or against such person for corporate reorganization or the dissolution of such person, which proceedings, if involuntary, shall not have been dismissed within one hundred eighty days after the date or filing, or such person makes an assignment for the benefit of creditors, or substantially all of the assets of such person are seized or attached and not released within one hundred eighty days thereafter.
“BENTLEY Know-How” shall mean any and all present and future information and any materials, including, without limitation, formulations, processes, techniques, formulas, biological, chemical, assay control and manufacturing data, methods, software, equipment designs, know-how, and trade secrets, patentable or otherwise, tangible or intangible, that are owned or controlled by Licensor that relate to the preparation, purification, characterization, stabilization, processing, and formulation and/or use of a dihydrotestosterone formulation containing CPE-215.
“BENTLEY Patents” shall mean United States Patent No. 5,023,252 and any and all continuations, continuations-in-part, additions, divisions, renewals, extensions, re-examinations and reissues thereof and any and all foreign counterparts of the foregoing as set forth in Schedule A hereto and any other Bentley U.S. or foreign patent application which is filed hereafter and which includes a claim that covers a dihydrotestosterone formulation which contains CPE-215 and/or the preparation and/or use thereof and any U.S. or foreign patent issuing therefrom and any renewal, extension, re-examination or reissue thereof.
“BENTLEY Technology” means BENTLEY Know-How and Improvements.
“Calendar Quarter” means each three-month period, or any portion thereof, beginning on January 1, April 1, July 1 and October 1.
“Combination Products” means any and all pharmaceutical compositions which contain: (A) dihydrotestosterone as an active ingredient in combination with any other products; and (B) the Compound; and which fall within the scope of any composition, method, or article claim of the BENTLEY Patents.
“Compound” is defined above in the Recitals.
“Confidential Information” means (i) BENTLEY Technology, (ii) any other information or material in tangible form that is confidential or proprietary to the furnishing Party at the time it is delivered to the receiving Party, (iii) proprietary information of the furnishing party, (iv) information that is furnished orally if the furnishing party identifies such information as confidential or proprietary when it is disclosed, and (v) patent applications not yet in the public domain.
“Control”, “Controlling,” and “Controlled by” mean the direct or indirect ownership of over 50% of the outstanding voting securities of an entity, or the right to receive over 50% of the profits or earnings of a person, or the right to control the policy decisions of a person.
2
“Effective Date” means the date of receipt by BENTLEY of written notice from AUXILIUM pursuant to Section 5.1 of the Research Agreement that it wishes to proceed with development of Product.
“Improvement” shall mean any formulations and/or any enhancement or other desirable change to the technical/pharmacological characteristics of formulations of Product, whether patentable or not, which is useful for commercializing Product developed by BENTLEY during the term of this Agreement which may take the form of, without limitation, new or improved methods of administration, manufacture, improved shelf life or packaging.
“IND” shall mean an Investigational New Drug Exemption application filed under the Act, or comparable filing in any major market in the Territory the approval of which permits clinical investigation of Product in humans.
“NDA” means a New Drug Application submitted under the Act to permit commercial sale of Product in the United States or a comparable marketing license in another major market in the Territory.
“Net Sales Price” means the gross amount charged by Licensee for the sale of a Product, net of returns and credits for rejected goods, and after deducting (i) trade and quantity discounts actually allowed, (ii) sales, use or value added taxes, the legal obligation of which is on Licensee, and (iii) freight allowances, insurance and customs duties, to the extent any of the foregoing are identified on the invoice for the product. If a product is sold for consideration other than solely cash, the fair market value of such other consideration shall be included in the Net Sales Price. If a Product is sold in a package or kit containing another product which is not a Product, the Net Sales price for purposes of calculating the royalty under Section 3.2 hereof shall be calculated by multiplying the Net Sales Price of the combination product by the fraction of A/A+B, where “A” is the Net Sales Price of Product when sold separately “B” is the Net Sales Price of the other product or products when sold separately. If either the Product or the other product is not sold separately, the Net Sales Price of the Product shall be negotiated in good faith by the Parties.
“Person” or “Persons” means any corporation, partnership, joint venture or natural person.
“Products” means any and all pharmaceutical compositions which contain (A) dihydrotestosterone as the single active drug ingredient; and (B) the Compound; and which fall within the scope of any composition, method or article claim of the BENTLEY Patents.
“Sale” or any variation thereof means the sale, assignment, lease or other disposition of a Product by Licensee to a non-Affiliate. A Product shall be deemed to have been sold for purposes of calculating royalties under Article III hereof upon the first to occur of the following: (i) the transfer of title in the Product from Licensee to a non-Affiliate; or (ii) shipment of the Product from the manufacturing facilities of Licensee to a non-Affiliate.
“Territory” shall mean all countries and territories of the world.
3
“Use Patents” shall mean any patent granted in the Territory for the use of the Product in a specific therapeutic indication.
ARTICLE II
2.1 Grant of License. Subject to the terms and conditions contained in this Agreement, the Licensor hereby grants to Licensee a sole and exclusive, worldwide, royalty-bearing license under BENTLEY Patents and BENTLEY Technology with the right to sublicense to make, have made, use and sell Products in the Territory pursuant to the terms and conditions of this License Agreement. In addition, Licensee shall have the exclusive right to enter into another License Agreement with BENTLEY to acquire rights in BENTLEY Patents and BENTLEY Technology for the development of Combination Products, such right to expire upon the termination of this Agreement. Licensor and Licensee agree to negotiate the terms of such License Agreement in good faith.
ARTICLE III
PAYMENTS IN CONSIDERATION FOR LICENSE
Initial Payment—On the date of execution of this Agreement: $[**], in consideration of for formulation to be provided by BENTLEY under the Research Agreement.
Milestone One—On the Effective Date: $[**].
Milestone Two—Three (3) months after first approval for commercialization in any major market (United States, Germany, France or Japan): $[**].
(a) there is an enforceable BENTLEY Patent at the time of sale:
The First $[**] Million of Annual Net Sales |
[**]% | |
The Next $[**] Million of Annual Net Sales |
[**]% | |
Net Sales over the First $[**] Million of Annual Net Sales |
[**]% |
(b) there is no enforceable BENTLEY Patent in the country when there is an enforceable BENTLEY Patent in another country at the time of sale:
All Annual Net Sales over $[**] Million |
[**]% |
** | CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND WILL BE FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST. |
4
(c) there is no enforceable BENTLEY Patent in any country at the time of sale:
All Annual Net Sales over $[**] Million [**]%
3.4 Currency, Place of Payment, Interest.
(a) All dollar amounts referred to in this Agreement shall be expressed in United States dollars. All payments to the Licensor under this Agreement shall be made in United States dollars, as directed by the Licensor, by wire transfer to the Licensor or in such other manner as the Licensor may designate from time to time.
(b) If Licensee receives revenues from sales of Products in a currency other than United States dollars, royalties shall be converted into United States dollars at a quarterly conversion rate for each foreign currency calculated as the daily average of the noon buying rate in New York City for cable transfers in foreign currencies as certified for customs purposes by the Federal Reserve Bank in New York. These exchange rates are published at xxx.xxxxxxxxxxxxxx.xxx/xxxxxxxx/X00/xxxx.
(c) Amounts that are not paid when due shall accrue interest from the due date until paid, at an annual rate equal to the Prime Rate plus 1% as published at xxx.xxxxxxxxxxxxxx.xxx/xxxxxxxx/X00/xxxxxx under the caption “Bank Prime Loan.” Historical rates are published at xxx.xxxxxxxxxxxxxx.xxx/xxxxxxxx/X00/xxxx.xxx.
** | CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND WILL BE FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST. |
5
ARTICLE IV
CERTAIN OBLIGATIONS OF LICENSEE
(a) Licensee shall use its reasonable best efforts to develop for commercial sale and to market Products in the Territory, and to continue to market Products as long as commercially viable, all in a manner consistent with sound and reasonable business practices. For purposes of this Agreement reasonable best efforts in the case of Product development in any major market shall mean at least that diligence required on the part of an NDA applicant in undertaking the development of a drug product to qualify for the maximum patent term extension under the Act.
(b) Licensee shall notify Licensor within thirty (30) days after the first commercial sale of a Product and of any formal written notice from the FDA or other equivalent regulatory authority (“Regulator”) in which CPE-215 is the Regulator’s primary focus, apart from the use of CPE-215 in the Licensee’s Product.
ARTICLE V
WARRANTIES AND REPRESENTATIONS
5.1 Mutual Representations. Each of the Parties hereto represents, warrants and covenants:
(i) It is a corporation or entity duly organized and validly existing under the laws of the state or other jurisdiction of its incorporation or formation.
6
(ii) The execution, delivery and performance of this Agreement by such Party has been duly authorized by all requisite corporate action.
(iii) It has the power and authority to execute and deliver this Agreement and perform its obligations hereunder.
(iv) The execution, delivery and performance by such Party of this Agreement does not and will not conflict with or result in breach of the terms and provisions of any other agreement or constitute a default under (a) a loan agreement, guaranty, financing agreement, affecting a product or other agreement or instrument binding or affecting it or its property; (b) the provisions of its charter or operative documents or bylaws; or (c) any order, writ, injunction or decree of any court or governmental authority entered against it or by which any of its property is bound.
(v) The execution, delivery and performance of this Agreement by such Party does not require the consent, approval or authorization of, or notice, declaration, filing or registration with, any governmental or regulatory authority in the Territory and the execution, delivery and performance of this Agreement does not violate any law, rule or regulation applicable to such Party.
(vi) This Agreement has been duly authorized, executed and delivered and constitutes such Party’s legal, valid, and binding obligation enforceable against it in accordance with its terms subject, as to enforcement, to bankruptcy, insolvency, reorganization and other laws of general applicability relating to or affecting creditors’ rights and to the availability of particular remedies under general equity principles.
(vii) It shall comply with all applicable laws and regulations relating to its activities under this Agreement.
(viii) Each warrants that it is not debarred and has not and will not use in any capacity the services of any person debarred under subsections 306 (a) and (b), of the Generic Drug Enforcement Act of 1992. If at any time during the term of this Agreement this warranty is no longer accurate, the affected party shall immediately notify the other.
7
ARTICLE VI
ARTICLE VII
8
7.2 Indemnification by AUXILIUM. AUXILIUM will indemnify and hold BENTLEY, its directors, officers, employees and agents harmless against any and all liability, damage, loss, cost or expense (including reasonable attorney’s fees) resulting from any third-party claims made or suits brought against BENTLEY which arise from the breach of any of AUXILIUM’S representations, warranties or agreements contained herein, or which arise out of the development, manufacture, promotion, distribution, use, testing or sale, distribution or other disposition of Product, including, without limitation, any claims, express, implied or statutory, made as to the efficacy, safety or use to be made of Product, and claims made by reason of any Product labeling or any packaging containing Product. This indemnification obligation shall not apply where the basis for the claim is the negligence or willful malfeasance of BENTLEY.
ARTICLE VIII
9
ARTICLE IX
PATENTS, TRADEMARKS AND INFRINGEMENT
(a) The Licensor shall be solely responsible for preparing, prosecuting and maintaining the BENTLEY Patents.
(b) Each Party shall cooperate with the other Party to execute all required papers and instruments and to make all required oaths and declarations as may be necessary in the preparation and prosecution of all such patents and other applications and protections referred to in this Section 9.1.
(a) In the event of Licensor wishing to abandon any BENTLEY Patents, Licensor will offer to assign to Licensee, free of charge, any such Patent prior to effectuating the abandonment. Licensee will bear the costs connected to any assignment hereunder. In the event that any of the BENTLEY Patents is assigned to AUXILIUM and AUXILIUM decides thereafter to abandon the assigned Patent, AUXILIUM agrees that, at the request of BENTLEY, it will offer to assign the assigned Patent to a third-party licensee that is licensed by BENTLY under the assigned Patent as such third-party licensee is identified by BENTLEY to AUXILIUM.
10
9.5 If one party institutes and carries on a legal proceeding to enforce a BENTLEY Patent against an alleged infringing party, the other Party shall fully cooperate with and supply all assistance reasonably requested by the Party instituting and carrying or such proceeding.
ARTICLE X
(a) Licensee and Licensor shall maintain in confidence and shall not disclose to any third-party the Confidential Information received pursuant to this Agreement, without the prior written consent of the other Party except that the Confidential Information may be disclosed only to those third parties (x) who have a need to know the information in connection with the exercise of rights and obligations under this Agreement and who agree in writing to keep the information confidential to the same extent as is required of each Party under this Section 10.1, or (y) to whom the Party is legally obligated to disclose the Information. The foregoing obligation shall not apply to:
(i) information that is known to the other Party or independently developed by the other Party prior to the time of disclosure, in each case, to the extent evidenced by written records promptly disclosed to the other Party upon receipt of the Confidential Information; or
(ii) information that becomes patented, published or otherwise part of the public domain as a result of acts by a Party or a third person obtaining such information lawfully as a matter of right; or
(iii) information that becomes patented, published or otherwise part of the public domain as a result of acts by the Licensor or a third person obtaining such information lawfully as a matter of right; or
(iv) information that is required by any law, rule, regulation, order, decision, decree, or subpoena or other judicial, administrative or legal process to be disclosed, provided, however that each Party, as applicable, gives the other prompt written notice of such request/order to permit the other party to seek a protective order or other similar order with respect to such Confidential Information and thereafter discloses only the minimum Confidential Information required to be disclosed in order to comply.
(b) Each Party will take all reasonable steps to protect the Confidential Information of the other Party with the same degree of care it uses to protect its own confidential proprietary information. Without limiting the foregoing, each party shall ensure that all of its employees having access to the Confidential Information of the other Party are obligated in writing to keep such information confidential to the same extent as is required of each Party under this Section 10.1.
10.2 Injunctive Relief. Because damages at law may be an inadequate remedy for breach of any of the covenants, promises and agreements contained in Section 10.1 hereof, both the Licensor and Licensee shall be entitled to injunctive relief in any state or federal court located within the District of Delaware, including specific performance or an order enjoining the breaching Party from any
11
threatened or actual breach of such covenants, promises or agreements. Each of the Licensee and the Licensor hereby waives any objection it may have to the personal jurisdiction or venue of any such court with respect to any such action. The rights set forth in this Section 10.2 shall be in addition to any other rights which the Licensor and Licensee may have at law or in equity.
10.3 This Article X shall survive the expiration or termination of this Agreement.
ARTICLE XI
11.2 Termination by the Licensor or Licensee.
(a) Upon the occurrence of any of the events set forth below (“Events of Default”), the Licensor shall have the right to terminate this Agreement by giving written notice of termination, such termination effective with the giving of such notice:
(i) In the event of nonpayment of any material amount payable to the Licensor after completion of an audit provided for under Section 3.5 hereof, which nonpayment is continuing thirty (30) calendar days after the Licensor gives Licensee written notice of such non-payment.
(ii) In the event that Licensee fails to initiate clinical trials within two (2) years of availability of final formulation in quantities adequate for clinical testing and associated documentation for clinical trials, unless such failure is outside of the control of Licensee.
(iii) In the event that Licensee does not submit an application for marketing approval in a major market within a five (5) year period after the Effective Date unless such failure to submit is outside of the control of Licensee.
(iv) In the event that Licensee does not launch Product in a major market within six (6) months after marketing approval.
(v) In the event that Licensee becomes subject to a Bankruptcy Event provided, however, that so long as Licensor continues to receive royalty payments from Licensee under this Agreement, such Bankruptcy Event shall not be a basis for termination of this Agreement by Licensor.
(b) Upon the occurrence of any of the events set forth below (“Events of Default”), Licensee shall have the right to terminate this Agreement by giving written notice of termination, such termination effective with the giving of such notice:
12
(i) breach by Licensor of any covenant or any representation or warranty contained in this Agreement that is continuing thirty (30) calendar days after Licensee gives written notice of such breach;
(ii) Licensor fails to comply with the terms of the license granted hereunder and such noncompliance is continuing thirty (30) calendar days after Licensee gives notice of such noncompliance;
(iii) Licensor becomes subject to a Bankruptcy Event; or
(iv) the dissolution or cessation of operations by Licensor.
(d) No exercise by the Licensor or Licensee of any right of termination shall constitute a waiver of any right of the Licensor or Licensee for recovery of any monies then due to it hereunder or any other right or remedy the Licensor or Licensee may have at law or under this Agreement.
ARTICLE XII
12.1 Either Party shall be relieved of its obligations under this Agreement to the extent that fulfillment of such obligations shall be prevented by strikes, embargoes, riots, fires, floods, war, hurricanes, windstorms, acts or defaults of common carriers, governmental laws, acts or regulations, shortages of materials or any other occurrence, whether or not similar to the foregoing, beyond the reasonable control of the Party affected thereby.
12.2 If either Party is prevented from fulfilling its obligations under this Agreement by reason of a circumstance covered by this Article 12, the Party unable to fulfil its obligations shall, upon the occurrence of any such circumstances, promptly notify the other Party upon the cessation of such circumstance and of the likely duration thereof, and shall promptly notify the other party upon the cessation of such circumstance.
ARTICLE XIII
(a) All disputes arising between the Licensor and Licensee under this Agreement shall be settled by arbitration conducted in accordance with the Rules of the American Arbitration Association. The Parties shall cooperate with each other in causing the arbitration to be held in as efficient and expeditious a manner as practicable.
(b) Licensee and Licensor each irrevocably and unconditionally consents to the jurisdiction of any such proceeding and waives any objection that it may have to personal jurisdiction or the laying of venue of any such proceeding.
13
If to the Licensor, to:
BENTLEY PHARMACEUTICALS, Inc.
00 Xxxxxxxxx Xxxx, 0xx Xxxxx
Xxxxx Xxxxxxx, XX 00000-0000
Attention: President
If to the Licensee, to:
AUXILIUM A(2), Inc.
000 X. Xxxxxxxxxx Xxxx
Xxxxx X-0, Xxxxxxxx Office Center
Xxxxxxxxxx, XX 00000
Attention: President
Copy to General Counsel
or to such other addresses as may be designated from time to time by notice given in accordance with the terms of this Section.
14
provisions hereof or affecting the validity or unenforceability of any of the terms of this Agreement in any other jurisdiction.
13.9 Governing Law. This Agreement shall be construed, governed, interpreted and applied in accordance with the laws of the State of Delaware, without giving effect to conflict of law provisions.
IN WITNESS WHEREOF, the parties hereto have duly executed this License Agreement as of the date first above written.
BENTLEY PHARMACEUTICALS, INC. |
AUXILIUM A(2), Inc. | |||||||
By: | /s/ XXXXXX XXXXXXX |
By: | /s/ XXXXXXXXX X. XXXXXXX | |||||
Xxxxxx Xxxxxxx Vice President & General Counsel |
Xxxxxxxxx X. Xxxxxxx Chief Executive Officer |
15
SCHEDULE A/APPENDIX A
BENTLEY PATENTS
COUNTRY |
PATENT NO. |
GRANT DATE |
EXPIRATION DATE | |||
Belgium | 248,885 | Aug. 5, 1992 | Nov. 28, 0000 | |||
Xxxxxx | 1,312,281 | Jan. 5, 1993 | Jan. 05, 0000 | |||
Xxxxxxx | 167,343 | Oct. 18, 1993 | Nov. 28, 0000 | |||
Xxxxxx | 248,885 | Aug. 5, 1992 | Nov. 28, 0000 | |||
Xxxxxxx | P3,690,626.3 | May 15, 1997 | Nov. 28, 2006 | |||
Great Britain | 2,192,134 | Apr. 25, 1990 | Nov. 28, 0000 | |||
Xxxxx | 248,885 | Aug. 5, 1992 | Nov. 28, 0000 | |||
Xxxxx | 2,583,777 | Nov. 21, 1996 | Nov. 28, 2006 | |||
Korea | 84,759 | Nov. 29, 1994 | Nov. 28, 2006 | |||
Luxembourg | WO 873,473 | Nov. 11, 1987 | Nov. 28, 0000 | |||
Xxxxxxxxxxx | 666,813 | Aug. 31, 0000 | Xxx. 00, 0000 | |||
Xxxxxx Xxxxxx | 5,023,252 | June 11, 1991 | Jun. 11, 2008 |
Other patents are filed as provisional applications or are in the preparation or developmental stages and will be amended, if applicable, to this Agreement.
16
** | CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND WILL BE FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST. |
AMENDMENT NO. 1 TO LICENSE AGREEMENT
THIS AMENDMENT NO. 1 TO LICENSE AGREEMENT is made as of the 6th day of September, 2002 by and between BENTLEY PHARMACEUTICALS, INC., a Delaware corporation, with offices at 00 Xxxxxxxxx Xxxx, 0xx Xxxxx, Xxxxx Xxxxxxx, Xxx Xxxxxxxxx 03862-2403 (hereinafter, “BENTLEY” or “Licensor”), and AUXILIUM PHARMACEUTICALS, INC. (formerly Auxilium A(2), Inc.), a Delaware corporation having a principal place of business at 000 X. Xxxxxxxxxx Xxxx, Xxxxx X-0, Xxxx Xxxxxxxx, Xxxxxxxxxxxx 00000 (hereinafter, “AUXILIUM” or “Licensee”). BENTLEY and AUXILIUM may be referred to as a “Party” or, collectively, as “Parties.”
WHEREAS the parties have entered into that certain License Agreement, dated May 31, 2001, relating to the grant by BENTLEY to AUXILIUM of a license of certain technology which relates to formulations which contain the therapeutic drug dihydrotestosterone and CPE-215 (the “License Agreement”); and
ARTICLE I
1.1 Except as amended below, the terms defined in the License Agreement shall remain unchanged. Unless otherwise defined in this Amendment, all capitalized terms in this Amendment shall have the meanings ascribed to them in the License Agreement, as amended by the Previous Amendments.
ARTICLE III
PAYMENTS IN CONSIDERATION FOR LICENSE
3.1 Except as amended below, all payments set forth in Article III of the License Agreement shall remain unchanged.
** | CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND WILL BE FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST. |
3.2 (a) of the License Agreement shall be amended to read as follows:
(a) there is an enforceable BENTLEY Patent at the time of sale:
All Annual Net Sales in the United States and Canada | [**]% beginning at Product launch and continuing for thirty-six full Calendar months thereafter; and [**]% thereafter | |
All Annual Net Sales Outside the United States and Canada | [**]% plus [**] of all “Product Royalties” (as defined below) paid to Auxilium which exceed [**]% |
“Product Royalties” shall mean all payments received by Auxilium which are based on sales of Products, but shall not include milestone payments related to achievements which are not sales based.
ARTICLE IV
4.1 Article VIII of the License Agreement is amended in its entirety to read as follows:
8.1 Intellectual Property Rights. The inventorship of inventions developed under this Agreement and relating to Products (“Inventions”) shall be determined in accordance with U.S. Law. Inventions made solely by employees of BENTLEY or owned by BENTLEY (“BENTLEY Inventions”) shall be the exclusive property of BENTLEY. Inventions made solely by employees of AUXILIUM (“AUXILIUM Inventions”) shall be the exclusive property of AUXILIUM, except that AUXILIUM Inventions that relate to the use of Products shall be owned by BENTLEY and shall be included in the license granted under this License Agreement and included in the definition of BENTLEY Patents. Inventions made by employees of BENTLEY and employees of AUXILIUM shall also be owned by BENTLEY and shall be included in the license granted under this License Agreement and included in the definition of BENTLEY Patents.
** | CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND WILL BE FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST. |
2
BENTLEY PHARMACEUTICALS, INC. |
AUXILIUM PHARMACEUTICALS, INC. | |||||||
By: | /s/ XXXXX X. XXXXXX |
By: | /s/ XXXXXXXXX X. XXXXXXX | |||||
Xxxxx X. Xxxxxx Chief Executive Officer |
Xxxxxxxxx X. Xxxxxxx Chief Executive Officer |
3