Technology Development Agreement

Confidential Materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote omissions.


Execution Copy


TECHNOLOGY DEVELOPMENT AGREEMENT


BY AND BETWEEN


MILLENNIUM PHARMACEUTICALS, INC.


AND


AVENTIS PHARMACEUTICALS INC.


TABLE OF CONTENTS


PAGE
---- TECHNOLOGY DEVELOPMENT AGREEMENT..................................................................................1 Article I Definitions.............................................................................................1


Section 1.1 "Affiliate"..................................................................................1
Section 1.2 "Agreement Term".............................................................................1
Section 1.3 "Aventis Development Program Technology".....................................................1
Section 1.4 "Aventis Development Program Technology Patent Rights and Copyrights"........................2
Section 1.5 "Aventis Ex-Program Technology"..............................................................2
Section 1.6 "Aventis Ex-Program Technology Patent Rights and Copyrights".................................2
Section 1.7 "Change of Control"..........................................................................2
Section 1.8 "Confidential Information"...................................................................2
Section 1.9 "Contract Year"..............................................................................3
Section 1.10 "Development Program Technology"............................................................3
Section 1.11 "Effective Date"............................................................................3
Section 1.12 "Executive Officers"........................................................................3
Section 1.13 "Ex-Program Technology".....................................................................3
Section 1.14 "Field".....................................................................................3
Section 1.15 "Human Health Care Field"...................................................................3
Section 1.16 "Inflammation Agreement"....................................................................3
Section 1.17 "Joint Steering Committee"..................................................................3
Section 1.18 "Joint Technology Development Team".........................................................3
Section 1.19 "Millennium Development Program Technology".................................................4
Section 1.20 "Millennium Development Program Technology Patent Rights and Copyrights"....................4
Section 1.21 "Millennium Ex-Program Technology"..........................................................4
Section 1.22 "Millennium Ex-Program Technology Patent Rights and Copyrights".............................4
Section 1.23 "Party".....................................................................................4
Section 1.24 "Patent Right"..............................................................................4
Section 1.25 "Process Technology"........................................................................4
Section 1.26 "Product-Process Tool Technology"...........................................................4
Section 1.27 "Product Technology"........................................................................5
Section 1.28 "Prohibited Field"..........................................................................5
Section 1.29 "Significant Agricultural Enterprise".......................................................5
Section 1.30 "Technology Development"....................................................................5
Section 1.31 "Technology Development Plan"...............................................................5
Section 1.32 "Technology Transfer Agreement".............................................................6
Section 1.33 "Territory".................................................................................6
Section 1.34 "Third Party"...............................................................................6
Section 1.35 "Additional Definitions"....................................................................6


Article II Grants of Rights.......................................................................................6
Section 2.1 Grants of Licenses...........................................................................6
Section 2.2 Release from Restrictions...................................................................13
Section 2.3 Source Code.................................................................................14
Section 2.4 Nontransferable.............................................................................15
Section 2.5 Prohibited Field............................................................................15


Article III Technology Development...............................................................................16


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Section 3.1 Technology Development......................................................................16
Section 3.2 Joint Technology Development Team...........................................................16
Section 3.3 Technology Development Plan.................................................................17
Section 3.4 Technology Development Disclosure and Update................................................18
Section 3.5 Development Expenses........................................................................18


Article IV Intellectual Property Ownership, Protection and Related Matters.......................................19
Section 4.1 Ownership...................................................................................19
Section 4.2 Prosecution and Maintenance of Patent Rights................................................19
Section 4.3 Exploitation of Inventions..................................................................19
Section 4.4 Cooperation.................................................................................20
Section 4.5 Third Party Infringement....................................................................20
Section 4.6 Claimed Infringement........................................................................20


Article V Confidentiality........................................................................................21
Section 5.1 Confidential Information....................................................................21
Section 5.2 Employee and Advisor Obligations............................................................21
Section 5.3 Term........................................................................................22


Article VI Term and Termination..................................................................................22
Section 6.1 Term; Extension.............................................................................22
Section 6.2 Termination.................................................................................22
Section 6.3 Rights Upon Termination.....................................................................23
Section 6.4 Cooperation Upon Termination................................................................23


Article VII Dispute Resolution...................................................................................23
Section 7.1 Joint Steering Committee....................................................................23
Section 7.2 Referral of Unresolved Matters to Joint Steering Committee..................................24
Section 7.3 Referral of Unresolved Matters to Executive Officers........................................24
Section 7.4 Independent Experts.........................................................................24
Section 7.5 Non-Binding Mediation.......................................................................24


Article VIII Representations and Warranties......................................................................25
Section 8.1 Representation of Authority; Consents.......................................................25
Section 8.2 No Conflict.................................................................................25
Section 8.3 Knowledge of Pending or Threatened Litigation...............................................25
Section 8.4 Employee and Consultant Obligations.........................................................25
Section 8.5 Disclaimer of Warranty......................................................................26


Article IX Miscellaneous Provisions..............................................................................26
Section 9.1 Product Liability Indemnification...........................................................26
Section 9.2 Governing Law...............................................................................27
Section 9.3 Assignment..................................................................................27
Section 9.4 Entire Agreement............................................................................28
Section 9.5 Amendments..................................................................................28
Section 9.6 Notices.....................................................................................28
Section 9.7 Force Majeure...............................................................................29
Section 9.8 Compliance with Export Regulations..........................................................29
Section 9.9 Section 365(n) of the Bankruptcy Code.......................................................29
Section 9.10 Public Announcements.......................................................................29
Section 9.11 Non-Solicitation...........................................................................30
Section 9.12 Independent Contractors....................................................................30
Section 9.13 No Strict Construction.....................................................................30
Section 9.14 Headings...................................................................................30
Section 9.15 No Implied Waivers; Rights Cumulative......................................................30
Section 9.16 Severability...............................................................................30


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Section 9.17 Execution in Counterparts..................................................................31
Section 9.18 No Third Party Beneficiaries...............................................................31
Section 9.19 No Consequential Damages...................................................................31


"EXHIBIT". The Exhibit referred to in the definitions of this Agreement is being simultaneously delivered with the execution of this Agreement as a separate document and shall have the following title:


EXHIBIT A Technology Development Plan


"SCHEDULE". The Schedule referred to in the definitions of this Agreement has been attached to this Agreement and shall have the following title:


SCHEDULE I Types of Technology


TECHNOLOGY DEVELOPMENT AGREEMENT


This Technology Development Agreement dated the 22nd day of June, 2000 (the "Execution Date") is by and between Millennium Pharmaceuticals, Inc., a corporation organized and existing under the laws of the State of Delaware and having its principal office at 75 Sidney Street, Cambridge, Massachusetts 02139 ("Millennium") and Aventis Pharmaceuticals Inc., a corporation organized and existing under the laws of the State of Delaware and having its principal office at Route 202-206, P.O. Box 6800, Bridgewater, New Jersey 08807. ("Aventis").


INTRODUCTION


1. Aventis and Millennium have each developed certain technologies relating to the identification and characterization of genetic materials, proteins and small molecules.


2. Millennium and Aventis wish to engage in the joint development of additional technologies potentially useful in the discovery and development of pharmaceutical products.


NOW, THEREFORE, Millennium and Aventis agree as follows:


ARTICLE I
DEFINITIONS


When used in this Agreement, each of the following terms shall have the meanings set forth in this Article I:


SECTION 1.1 "AFFILIATE". Affiliate means any corporation, company, partnership, joint venture and/or firm which controls, is controlled by, or is under common control with a specified person or entity. For purposes of this Section 1.1, "control" shall be presumed to exist if one of the following conditions is met: (a) in the case of corporate entities, direct or indirect ownership of at least fifty percent (50%) of the stock or shares having the right to vote for the election of directors, or (b) in the case of non-corporate entities, direct or indirect ownership of at least fifty percent (50%) of the equity interest with the power to direct the management and policies of such non-corporate entities. The Parties acknowledge that in the case of certain entities organized under the laws of certain countries outside of the United States, the maximum percentage ownership permitted by law for a foreign investor may be less than fifty percent (50%), and that in such case such lower percentage shall be substituted in the preceding sentence, PROVIDED THAT such foreign investor has the power to direct the management and policies of such entity.


SECTION 1.2 "AGREEMENT TERM". Agreement Term means the term commencing on the Effective Date and ending five (5) years after the Effective Date unless (a) earlier terminated pursuant to the provisions of Article VI or (b) extended pursuant to the provisions of Section 6.1.


SECTION 1.3 "AVENTIS DEVELOPMENT PROGRAM TECHNOLOGY". Aventis Development Program Technology means Process Technology and Product-Process Tool Technology of the types listed in SCHEDULE I attached to this Agreement which is (a) developed by Aventis or any of its Affiliates alone or jointly by Aventis and Millennium in the course of Technology


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Development activities under Article III, or (b) licensed in by Aventis or any of its Affiliates from Third Parties pursuant to the Technology Development Plan, in each case during the Agreement Term (but only to the extent that transfer or sublicensing is permitted by any applicable agreements with Third Parties).


SECTION 1.4 "AVENTIS DEVELOPMENT PROGRAM TECHNOLOGY PATENT RIGHTS AND COPYRIGHTS". Aventis Development Program Technology Patent Rights and Copyrights means Patent Rights and copyrights that cover Aventis Development Program Technology.


SECTION 1.5 "AVENTIS EX-PROGRAM TECHNOLOGY". Aventis Ex-Program Technology means Process Technology and Product-Process Tool Technology that (a) does not constitute Aventis Development Program Technology; (b) is solely or jointly owned by Aventis or any of its Affiliates or is licensed in by Aventis or any of its Affiliates from Third Parties, in each case as of the Effective Date or during the Agreement Term (but only to the extent that transfer or sublicensing is permitted by any applicable agreements with Third Parties); and (c) is specified in the Technology Development Plan to be used by the Parties in a Development Project.


SECTION 1.6 "AVENTIS EX-PROGRAM TECHNOLOGY PATENT RIGHTS AND COPYRIGHTS". Aventis Ex-Program Technology Patent Rights and Copyrights means Patent Rights and copyrights that cover Aventis Ex-Program Technology.


SECTION 1.7 "CHANGE OF CONTROL". Change of Control means (a) a merger or consolidation of a Party which results in the voting securities of such Party outstanding immediately prior thereto ceasing to represent at least fifty percent (50%) of the combined voting power of the surviving entity immediately after such merger or consolidation, or (b) a Third Party, together with its Affiliates, becoming the beneficial owner of fifty percent (50%) or more of the combined voting power of the outstanding securities of a Party, or (c) the sale or other transfer of all or substantially all of a Party's assets which relate to this Agreement to a Third Party.


SECTION 1.8 "CONFIDENTIAL INFORMATION". Confidential Information means all proprietary materials, know-how or other information (whether or not patentable) (including software) regarding a Party's technology, products, business information or objectives, which is designated as confidential in writing by the disclosing Party, whether by letter or by the use of an appropriate stamp or legend, prior to or at the time any such material, know-how or other information is disclosed by the disclosing Party to the other Party. Notwithstanding the foregoing to the contrary, materials, know-how or other information which is orally, electronically or visually disclosed by a Party, or is disclosed in writing without an appropriate letter, stamp or legend, shall constitute Confidential Information of a Party (a) if the disclosing Party, within thirty (30) days after such disclosure, delivers to the other Party a written document or documents describing the materials, know-how or other information and referencing the place and date of such oral, visual, electronic or written disclosure and the names of the persons to whom such disclosure was made, or (b) such material, know-how or information is of the type that is customarily considered to be confidential information by persons engaged in activities that are substantially similar to the activities being engaged in by the Parties (including without limitation software source code). Notwithstanding the foregoing, any technical or financial information of a Party disclosed at a meeting of the Joint Technology Development Team


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or disclosed through an audit report shall constitute Confidential Information of a Party unless otherwise specified.


SECTION 1.9 "CONTRACT YEAR". Contract Year means (a) with respect to the first Contract Year, the period beginning on the Effective Date and ending on December 31, 2000 (the "First Contract Year"), and (b) with respect to the second, third, fourth and fifth Contract Years, the calendar years 2001, 2002, 2003 and 2004, respectively (the "Second Contract Year", "Third Contract Year", etc.) and (c) with respect to the sixth Contract Year, the period beginning on January 1, 2005 and ending on the fifth anniversary of the Effective Date (the "Sixth Contract Year").


SECTION 1.10 "DEVELOPMENT PROGRAM TECHNOLOGY". Development Program Technology means Aventis Development Program Technology and/or Millennium Development Program Technology.


SECTION 1.11 "EFFECTIVE DATE". Effective Date means the HSR Clearance Date (as defined in the Technology Transfer Agreement) or, if the Parties mutually agree that an HSR Filing is not required, July 6, 2000.


SECTION 1.12 "EXECUTIVE OFFICERS". Executive Officers means the Chief Executive Officer of Aventis (or an executive of Aventis designated by such Chief Executive Officer) and the Chief Executive Officer of Millennium (or an executive of Millennium designated by such Chief Executive Officer).


SECTION 1.13 "EX-PROGRAM TECHNOLOGY". Ex-Program Technology means Aventis Ex-Program Technology and/or Millennium Ex-Program Technology.


SECTION 1.14. "FIELD". Field means any and all fields of use other than the Prohibited Field.


SECTION 1.15 "HUMAN HEALTH CARE FIELD". Human Health Care Field means the research, development and commercialization of products or services for the diagnosis, prophylaxis and/or treatment of diseases or conditions in humans.


SECTION 1.16 "INFLAMMATION AGREEMENT". Inflammation Agreement means the Collaboration and License Agreement between Millennium and Aventis dated as of the Execution Date.


SECTION 1.17 "JOINT STEERING COMMITTEE". Joint Steering Committee means a committee comprised of an appropriate number of representatives of Millennium and Aventis to plan and oversee the activities contemplated by this Agreement, as well as the activities of the Parties under the Technology Transfer Agreement and the Inflammation Agreement, as may be provided in such agreements.


SECTION 1.18 "JOINT TECHNOLOGY DEVELOPMENT TEAM". Joint Technology Development Team means a committee comprised of an appropriate number of representatives of Aventis and Millennium to plan and oversee Technology Development, as more fully described in Article III.


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SECTION 1.19 "MILLENNIUM DEVELOPMENT PROGRAM TECHNOLOGY". Millennium Development Program Technology means Process Technology and Product-Process Tool Technology of the types listed in SCHEDULE I attached to this Agreement which is (a) developed by Millennium or any of its Affiliates alone or jointly by Millennium and Aventis in the course of Technology Development activities under Article III, or (b) licensed in by Millennium or any of its Affiliates from Third Parties pursuant to the Technology Development Plan, in each case during the Agreement Term (but only to the extent that transfer or sublicensing is permitted by any applicable agreements with Third Parties).


SECTION 1.20 "MILLENNIUM DEVELOPMENT PROGRAM TECHNOLOGY PATENT RIGHTS AND COPYRIGHTS". Millennium Development Program Technology Patent Rights and Copyrights means Patent Rights and copyrights that cover Millennium Development Program Technology.


SECTION 1.21 "MILLENNIUM EX-PROGRAM TECHNOLOGY". Millennium Ex-Program Technology means Process Technology and Product-Process Tool Technology that (a) does not constitute Millennium Development Program Technology; (b) is solely or jointly owned by Millennium or any of its Affiliates or is licensed in by Millennium or any of its Affiliates from Third Parties, in each case as of the Effective Date or during the Agreement Term (but only to the extent that transfer or sublicensing is permitted by any applicable agreements with Third Parties); and (c) is specified in the Technology Development Plan to be used by the Parties in a Development Project.


SECTION 1.22 "MILLENNIUM EX-PROGRAM TECHNOLOGY PATENT RIGHTS AND COPYRIGHTS". Millennium Ex-Program Technology Patent Rights and Copyrights means Patent Rights and copyrights that cover Millennium Ex-Program Technology.


SECTION 1.23 "PARTY". Party means Aventis or Millennium; "PARTIES" means Aventis and Millennium.


SECTION 1.24 "PATENT RIGHT". Patent Right means all existing patents and patent applications and all patent applications hereafter filed, including any continuations, continuations-in-part, divisions, provisionals or any substitute applications, any patent issued with respect to any such patent applications, any reissue, reexamination, renewal or extension (including any supplemental patent certificate) of any such patent, and any confirmation patent or registration patent or patent of addition based on any such patent, and all foreign counterparts of any of the foregoing.


SECTION 1.25 "PROCESS TECHNOLOGY". Process Technology means methods, systems, programs, technology and software, together with know-how related thereto, for the research, discovery, production and/or characterization of genes, nucleic acids, proteins, peptides and/or small molecules. Process Technology shall include Product-Process Tool Technology.


SECTION 1.26 "PRODUCT-PROCESS TOOL TECHNOLOGY". Product-Process Tool Technology means Product Technology that is used as a tool for the discovery and/or development of Process Technology or that is necessary for the operation, verification or calibration of Process Technology. Product-Process Tool Technology shall include materials, and data related thereto, that are required to discover, develop, operate, verify or calibrate procedures that are part of


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Confidential Materials omitted and filed separately with the
Securities and Exchange Commission. Asterisks denote omissions.


Process Technology, provided that the utility of such materials and data in such procedures is not specific for a particular product or service. By way of example, a chemical library used to derive an algorithm for toxicity prediction is Product-Process Tool Technology, but a chemical library used to identify ligands for a receptor is not Product-Process Tool Technology.


SECTION 1.27 "PRODUCT TECHNOLOGY". Product Technology means technology in the form of biological materials (e.g. genes, gene fragments, vectors, cell lines, cells, organelles, DNA and DNA fragments, proteins and peptides) and chemical compounds (e.g. small molecule and natural product compounds and libraries) and data relating to the foregoing; PROVIDED THAT Product Technology does not include methods, systems, programs, technology and software included in Process Technology.


SECTION 1.28 "PROHIBITED FIELD". Prohibited Field means (a) the research, development or commercialization of (i) [**]in the [**], (ii) [**] or (iii) [**] for the [**] of the [**]; (b) [**] to the [**] in subsection (a) above; and (c) [**]. Notwithstanding the foregoing, [**](each as defined by the U.S. Food and Drug Administration) [**] the Prohibited Field. Within the Prohibited Field, "PLANT AGRICULTURE FIELD" means those fields recited in subsections (a)(i) and (a)(ii) of the definition of Prohibited Field, "NUTRITION FIELD" means the field recited in subsection (b) of the definition of Prohibited Field, and "BOVINE FIELD" means the fields recited in subsections (a)(iii) and (c) of the definition of Prohibited Field.


SECTION 1.29 "SIGNIFICANT AGRICULTURAL ENTERPRISE". Significant Agricultural Enterprise means (a) a company which, together with its Affiliates, had worldwide annual revenues from the sale of products in the Plant Agriculture Field in excess of $[**] during its most recently completed fiscal year, and (b) any Affiliates of such company.


SECTION 1.30 "TECHNOLOGY DEVELOPMENT". Technology Development means the technology development activities to be undertaken by the Parties pursuant to Article III and the Technology Development Plan.


SECTION 1.31 "TECHNOLOGY DEVELOPMENT PLAN". Technology Development Plan means the plan to be developed by the Joint Technology Development Team for each Contract Year, to be updated as necessary during each Contract Year, setting forth, among other things, a master plan for Technology Development during the Agreement Term and the matters described in Section 3.3. EXHIBIT A sets forth the Technology Development Plan for ...