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6.3 Grants to Plexium .......................................................................................................................... 31
6.4 Sublicenses .................................................................................................................................... 31
6.5 Distributorships ............................................................................................................................. 31
6.6 Co-Promotion Rights ..................................................................................................................... 31
6.7 Retention of Rights ........................................................................................................................ 31
6.8 Confirmatory Patent License ......................................................................................................... 32
6.9 Exclusivity ..................................................................................................................................... 32
ARTICLE 7 PAYMENTS AND RECORDS ..................................................................................... 33
7.1 Upfront Payment ........................................................................................................................... 33
7.2 Substitute Research Program Fee .................................................................................................. 33
7.3 Option Payment ............................................................................................................................. 33
7.4 Development Milestones ............................................................................................................... 33
7.5 First Commercial Sale Milestones ................................................................................................. 34
7.6 Sales-Based Milestones ................................................................................................................. 34
7.7 Royalties ........................................................................................................................................ 35
7.8 Royalty Payments and Reports ...................................................................................................... 36
7.9 Other Invoiced Amounts ............................................................................................................... 37
7.10 Mode of Payment .......................................................................................................................... 37
7.11 Withholding Taxes ........................................................................................................................ 37
7.12 Indirect Taxes ................................................................................................................................ 37
7.13 Financial Records .......................................................................................................................... 38
7.14 Audit .............................................................................................................................................. 38
7.15 Audit Dispute................................................................................................................................. 38
7.16 Confidentiality ............................................................................................................................... 38
7.17 Diagnostic or Veterinary Products ................................................................................................ 38
7.18 No Other Compensation ................................................................................................................ 38
7.19 No Limitation ................................................................................................................................ 39
ARTICLE 8 INTELLECTUAL PROPERTY ................................................................................... 39
8.1 Ownership of Intellectual Property................................................................................................ 39
8.2 Maintenance and Prosecution of Patents ....................................................................................... 39
7.2 Maintenance and Prosecution of Patents ....................................................................................... 41
8.3 Enforcement of Patents and Know-How ....................................................................................... 42
8.4 Infringement Claims by Third Parties ........................................................................................... 44
8.5 Invalidity or Unenforceability Defenses or Actions ...................................................................... 44
8.6 Third Party Licenses ...................................................................................................................... 45
8.7 Product Trademarks ....................................................................................................................... 46
8.8 Inventor's Remuneration ............................................................................................................... 46
8.9 Common Interest ........................................................................................................................... 46
ARTICLE 9 CONFIDENTIALITY AND NON-DISCLOSURE ..................................................... 47
9.1 Product Information ....................................................................................................................... 47
9.2 Confidentiality Obligations ........................................................................................................... 47
9.3 Permitted Disclosures .................................................................................................................... 48
9.4 Use of Name .................................................................................................................................. 49
9.5 Public Announcements .................................................................................................................. 49
9.6 Publications ................................................................................................................................... 50
9.7 Return of Confidential Information ............................................................................................... 50
9.8 Survival ......................................................................................................................................... 51
ARTICLE 10 REPRESENTATIONS AND WARRANTIES ............................................................. 51
10.1 Mutual Representations, Warranties and Covenants ..................................................................... 51
10.2 Additional Representations and Warranties of Plexium ................................................................ 51
10.3 Additional Covenants of Plexium.................................................................................................. 52
10.4 Mutual Representations, Warranties, and Covenants .................................................................... 53
10.5 Debarment and Exclusion .............................................................................................................. 53
10.6 Anti-Bribery and Anti-Corruption Compliance............................................................................. 54
10.7 Disclaimer of Warranties ............................................................................................................... 54
10.8 Option Data Package Disclosure Schedules .................................................................................. 54
ARTICLE 11 INDEMNITY .................................................................................................................. 54
11.1 Indemnification of Plexium ........................................................................................................... 54
11.2 Indemnification of AbbVie ............................................................................................................ 55
11.3 Certain Losses ............................................................................................................................... 55
11.4 Notice of Claim ............................................................................................................................. 55
11.5 Control of Defense ........................................................................................................................ 56
11.6 Special, Indirect, and Other Losses ............................................................................................... 57
11.7 Insurance........................................................................................................................................ 57
ARTICLE 12 TERM AND TERMINATION ...................................................................................... 58
12.1 Term .............................................................................................................................................. 58
12.2 Termination for Material Breach ................................................................................................... 58
12.3 Additional Termination Rights ...................................................................................................... 59
12.4 Termination for Insolvency ........................................................................................................... 59
12.5 Rights in Bankruptcy ..................................................................................................................... 60
12.6 Termination in Entirety ................................................................................................................. 60
12.7 Termination of Terminated Territory ............................................................................................ 61
12.8 Remedies ....................................................................................................................................... 61
12.9 Accrued Rights; Surviving Obligations ......................................................................................... 61
ARTICLE 13 MISCELLANEOUS ....................................................................................................... 62
13.1 Force Majeure ................................................................................................................................ 62
13.2 Change in Control .......................................................................................................................... 62
13.3 Export Control ............................................................................................................................... 63
13.4 Assignment .................................................................................................................................... 63
13.5 Severability .................................................................................................................................... 63
13.6 Governing Law, Jurisdiction and Service ...................................................................................... 63
13.7 Dispute Resolution ........................................................................................................................ 64
13.8 Notices ........................................................................................................................................... 64
13.9 Entire Agreement; Amendments ................................................................................................... 65
13.10 English Language .......................................................................................................................... 66
13.11 Equitable Relief ............................................................................................................................. 66
13.12 Waiver and Non-Exclusion of Remedies ...................................................................................... 66
13.13 No Benefit to Third Parties ............................................................................................................ 66
13.14 Further Assurance .......................................................................................................................... 66
13.15 Relationship of the Parties ............................................................................................................. 66
13.16 Performance by Affiliates .............................................................................................................. 66
13.17 Counterparts; Facsimile Execution ................................................................................................ 67
13.18 References ..................................................................................................................................... 67
13.19 Schedules ....................................................................................................................................... 67
13.20 Construction .................................................................................................................................. 67
SCHEDULES
Schedule 1.165 Research Plans
Schedule 3.2.3 Permitted Subcontractors
Schedule 7.7.1 Example Royalty Calculations
Schedule 10.2 Plexium Disclosures