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License Agreement - Stanford University and Rigel Pharmaceuticals Inc.

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                                  LICENSE AGREEMENT

       Effective as of March 27, 1998 ("Effective Date"), THE BOARD OF TRUSTEES
OF THE LELAND STANFORD JUNIOR UNIVERSITY, a body having corporate powers under
the laws of the State of California ("STANFORD"), and RIGEL PHARMACEUTICALS,
INC., a Delaware corporation doing business as RIGEL, INC. in California, having
a principal place of business at 772 Lucerne Drive, Sunnyvale, California 94086
("RIGEL"), agree as follows:

1.     BACKGROUND

       1.1    STANFORD has an assignment of U.S Provisional Applications (the
"Provisionals"), [ * ] (the "Invention"), and as described in Stanford Docket
[ * ], and any Licensed Patents, as hereinafter defined, which may claim such
Invention.

       1.2    STANFORD has certain biological materials ("Licensed BIOLOGICAL
Materials") and other know-how ("Know-How"), as defined below, pertaining to the
Inventions.

       1.3    STANFORD desires to have the Know-How and Inventions perfected and
marketed at the earliest possible time in order that products resulting
therefrom may be available for public use and benefit.

       1.4    RIGEL desires a license under said Know-How, Invention and
Licensed Patents to develop, manufacture, use and sell Licensed Products in the
Licensed Field of Use, as defined below.

       1.5    The Know-How and Invention were made in the course of research
supported by the National Institutes of Health.

2.     DEFINITIONS

       2.1    "EXCLUSIVE" means that STANFORD shall not grant further licenses
in the Licensed Territory in the Licensed Field of Use.

       2.2    "LICENSED BIOLOGICAL MATERIALS" means the materials listed on
Exhibit A, as amended from time to time upon the parties' mutual written
consent.

       2.3    "LICENSED FIELD OF USE" means, subject to Section 14:

              (a)    the development of reporter systems useful for the analysis
of protein-protein interactions;

              (b)    the development of methods for analyzing molecular
interactions by reporter subunit complementation; and

              (c)    applications of the systems and methods set forth in (a)
and (b) to functional genomics, target analysis and drug discovery.


[  * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY  WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS
AMENDED.

                                      1.

<PAGE>

       2.4    "LICENSED KNOW-HOW" means know-how useful for the commercial
exploitation of the Licensed Patents in the Licensed Field of Use and is
provided to RIGEL by STANFORD, including know-how, trade secrets, protocols,
information, processes or other subject matter which is either disclosed in the
Licensed Patents, or useful to practice the Invention in the Licensed Field of
Use.  Licensed Know-How excludes the Licensed Patents and includes the Licensed
Biological Materials.  STANFORD has no obligation to provide such know-how.

       2.5    "LICENSED PATENTS" means any Letters Patent issued upon (i)
patent applications claiming priority from or based upon the Provisionals;
(ii) any patents issuing from any divisional, continuations, substitute, or
continuation-in-part (to the extent provided in this Section 2.5) application
relating to the patent applications described in (i); and (iii) any foreign
counterparts of the patent applications described in (i) or (ii).
Continuation-in-part applications are included in the Licensed Patents to the
extent that such continuation-in-part claims subject matter disclosed in the
applications set forth in (i) and to the extent that the practice of an
invention claimed in a Licensed Patent issuing from a patent application
other than such continuation-in-part would infringe a claim of a Licensed
Patent issuing from such continuation-in-part.

       2.6    "LICENSED PRODUCTS" means

              (a)    any product, the manufacture, use, sale, offer for sale and
import of which:

                     (i)    is covered by one or more valid claims of an issued,
unexpired Licensed Patent directed to the Invention.  Claims of issued,
unexpired Licensed Patent shall be presumed to be valid unless and until they
have been held to be invalid by a final judgment of a court of competent
jurisdiction from which no appeal can be or is taken; or

                     (ii)   is covered by any claim being prosecuted in a
pending application directed to the Invention, which claim has not been pending
for more than three (3) years from the first filing of such claim; and

              (b)    any product which directly incorporates any of the Licensed
Biological Materials; and

              (c)    any product which would not, but for the use of the
Licensed Technology, have been identified, discovered or developed.

       2.7    "LICENSED TECHNOLOGY" means the Licensed Patents and the Licensed
Know-How.

       2.8    "LICENSED TERRITORY" means all the countries in the world.

       2.9    "NET SALES" means the gross revenue derived by RIGEL and/or its
sublicensee(s) from the sales of Licensed Products to end users thereof, less
the following items but only insofar as they actually pertain to the disposition
of such Licensed Products by RIGEL or RIGEL's sublicensee(s), are included in
such gross revenue, and are separately billed:


[  * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY  WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS
AMENDED.

                                      2.

<PAGE>

              (a)    import, export, excise and sales taxes, and custom duties;

              (b)    transportation charges, issuances and allowances;

              (c)    credit for returns, allowances, trades or retroactive price
adjustments;

              (d)    discounts actually allowed; or

              (e)    royalties payable to third parties on the manufacture, use,
sale, offer for sale or import of Licensed Products.

       2.10   "SERVICE PROVIDER" means a third party contract research or
similar organization that performs assay services (i) for other entities on a
fee-for-service basis and (ii) not in connection with such organization's own
drug development programs (whether such programs are conducted solely by such
entity or jointly by such entity and one or more third parties).

3.     GRANT

       3.1    STANFORD hereby grants, and RIGEL hereby accepts, a license in the
Licensed Field of Use to make, use, sell, offer for sale and import Licensed
Products in the Licensed Territory.

       3.2    RIGEL hereby grants, and STANFORD hereby accepts, a non-exclusive,
royalty free license under its interest in any inventions conceived by RIGEL
during the term of this Agreement that solely relate to the technology claimed
in the Licensed Patents and any intellectual property rights related thereto
(collectively, "Improvements"), to practice and grant licenses under such
Improvements solely  for noncommercial, academic research purposes.

       3.3    The license granted to RIGEL pursuant to Section 3.1 under the
Licensed Know-How shall be nonexclusive for the term of this Agreement. The
license granted in Section 3.1 under the Licensed Patents is Exclusive for a
term (the "Exclusivity Term") commencing as of the Effective Date and ending
(except as otherwise provided in this Agreement) on the first to occur of the
following:

              (a)    the fifth anniversary of the Effective Date if STANFORD
does not grant a license under the Licensed Patents outside the Licensed Field
of Use to a third party prior to or on such date; or

              (b)    the eighth anniversary of the Effective Date, if STANFORD
grants a license under the Licensed Patents outside the Licensed Field of Use to
a third party prior to or on the fifth anniversary of the Effective Date.

       After expiration of the Exclusivity Term, the license granted to RIGEL
       pursuant to Section 3.1 under the Licensed Patents shall be nonexclusive
       for the remainder of the term of the Agreement.



[  * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY  WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS
AMENDED.

                                      3.
<PAGE>


       3.4    Notwithstanding the Exclusive license under the Licensed Patents
granted to RIGEL pursuant to Section 3.1, STANFORD shall have the right to
practice the Licensed Technology in the Licensed Field of Use for noncommercial,
academic research purposes.  STANFORD shall have the right to publish any
information included in the Licensed Technology.

       3.5    STANFORD may grant sublicenses under Improvements to third parties
solely for noncommercial, academic research purposes, provided that each such
sublicense is granted in conjunction with a license under the Licensed
Technology.  After the expiration of the Exclusivity Term, STANFORD may grant
sublicenses under Improvements to third parties for purposes other than
conducting noncommercial academic research, provided that each such sublicense
is granted solely in conjunction with the grant of a license under the Licensed
Technology.  STANFORD's license under Section 3.2 and its ability to grant
sublicenses thereunder as provided in this Section 3.5 shall survive termination
of this Agreement.

4.     GOVERNMENT RIGHTS

       This Agreement is subject to all of the terms and conditions of Title 35
United States Code Sections 200 through 204, including an obligation that
Licensed Products sold or produced in the United States be "manufactured
substantially in the United States," and RIGEL agrees to take all reasonable
action necessary on its part as licensee to enable STANFORD to satisfy its
obligation thereunder relating to Inventions.

5.     DILIGENCE; PROGRESS REPORTS

       5.1    As an inducement to STANFORD to enter into this Agreement, RIGEL
agrees to use all commercially reasonable efforts and diligence to proceed with
the development, manufacture and sale of Licensed Products and to diligently
develop markets for the Licensed Products.  RIGEL shall demonstrate such
diligence to STANFORD by achieving the following goals:

              (a)    before the first anniversary of the Effective Date, RIGEL
shall identify and characterize [ * ].

              (b)    before the second anniversary of the Effective Date, RIGEL
shall establish two (2) new high throughput screening assays that utilize the
Licensed Technology, one (1) of which is primarily useful for target
identification and one (1) of which is primarily useful for screening to
identify small molecules that bind to drug targets; and

              (c)    before the fourth anniversary of the Effective Date, use
the assays described in (b) to identify one new drug target and one small
molecule that competes with the binding of molecules to a drug target.

       5.2    If RIGEL is unable to demonstrate its diligence by achieving the
goals provided in Section 5.1 within the time frames set forth therein, the
parties shall meet no later than thirty (30) days after the relevant date set
forth in Section 5.1 to discuss in good faith the reasons for such



[  * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY  WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS
AMENDED.

                                      4.

<PAGE>

failure, and mutually acceptable mechanisms for remedying such failure.  If
the parties do not agree upon modifications to the diligence requirements set
forth in Section 5.1 during such discussion, then STANFORD may thereafter
convert RIGEL's exclusive license under the Licensed Patents to non-exclusive
upon thirty (30) days written notice to RIGEL.

       5.3    If RIGEL succeeds in meeting the goals provided in Section 5.1,
RIGEL and STANFORD agree to meet within ninety (90) days prior to the fourth
anniversary of the Effective Date to establish further mutually acceptable
diligence requirements applicable to the next two (2) year period during the
term of the Agreement.  If the parties, after good faith effort, cannot agree on
such additional requirements, STANFORD may in its sole discretion elect to
convert RIGEL's exclusive license under the Licensed Patents to non-exclusive as
of the fourth anniversary of the Effective Date by written notice to RIGEL.

       5.4    On or before August 1, 1998 and each anniversary thereof until
RIGEL markets Licensed Products, RIGEL shall make a written annual report to
STANFORD covering RIGEL's progress during the preceding year toward commercial
use of Licensed Products.  Such report shall include, as a minimum, information
sufficient to enable STANFORD to satisfy reporting requirements of the U.S.
Government and for STANFORD to ascertain progress by RIGEL toward meeting the
diligence requirements of this Article 5.

6.     PAYMENTS AND ROYALTIES

       6.1    RIGEL shall upon the Effective Date:

              (a)    pay to STANFORD a noncreditable, nonrefundable license
issue royalty of __________; and

              (b)    issue to STANFORD ___________________ Stock pursuant to a
stock purchase agreement to be separately executed by the parties.

       6.2    Subject to Section 6.6, RIGEL also agrees to pay the following
minimum annual royalties to STANFORD within thirty (30) days after the
occurrence of each date below:



       Anniversary of Effective Date              Minimum Annual Royalty Due
       -----------------------------              --------------------------
                                              
       First and Second                                   _________

       Third through Fifth                                _________

       Sixth and Thereafter                               _________


       These minimum annual royalty payments are nonrefundable, but they are
       creditable against earned royalties due to Stanford pursuant to Section
       6.4.  In addition, the minimum annual royalties set forth in this
       Section 6.2 shall be reduced by fifty percent (50%) if STANFORD abandons
       all patent applications from which Licensed Patents could issue prior to
       the time that any Licensed Patents issue.


[  * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY  WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS
AMENDED.

                                      5.

<PAGE>

       6.3    RIGEL also agrees to pay to STANFORD upon the occurrence of the
following events, the following amounts:




       Event                                                   Milestones
       -----                                                   ----------
                                                           
        Earlier of the execution of the first sublicense       ____________
        by Rigel under the Licensed Technology or 18
        months after the Effective Date

        Earlier of the execution of the second sublicense      ____________
        by Rigel under the Licensed Technology or 48
        months after the Effective Date

        Earlier of the execution of the third sublicense       ____________
        by Rigel under the Licensed Technology or 78
        months after the Effective Date

        Execution of any additional sublicenses by Rigel       ____________
        after payment of all of the foregoing milestones


       6.4    RIGEL shall pay to STANFORD earned royalties of ___________ of Net
Sales during the Exclusivity Term.  Should total earned royalties due on
Licensed Products to STANFORD under this Agreement and any other agreement
between STANFORD and RIGEL (the "Other Agreements") equal or exceed __________
of Net Sales, STANFORD shall, upon request by RIGEL, meet with RIGEL to discuss
an appropriate mechanism, if RIGEL's royalty obligations under this Agreement
and the Other Agreements render further development and commercialization of
License Products uneconomic.  The parties will discuss in good faith appropriate
adjustments to RIGEL's obligations under this Agreement..

       6.5    RIGEL shall also pay to STANFORD ______________ upon the issuance
of the first patent included in the Licensed Patents.

       6.6    Within thirty (30) days after the license granted under the
Licensed Patents pursuant to Section 3.1 becomes non-exclusive pursuant to
Sections 3.3, 5.2 or 5.3, STANFORD shall provide to RIGEL a written summary of
all non-confidential material terms of any other license agreements with third
parties relating to the Licensed Technology.  STANFORD shall use reasonable
efforts to obtain consent of any such third parties to disclose such material
terms or at least a general description of the economic terms of such other
license agreements to RIGEL.  Within thirty (30) days after receiving such
summary, RIGEL shall elect one of the following options by written notice to
STANFORD:

              (a)    to allow this Agreement to continue in full force and
effect, except that the minimum annual royalties due to STANFORD pursuant to
Section 6.2 shall be reduced by fifty percent (50%); or


[  * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY  WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS
AMENDED.

                                      6.

<PAGE>

              (b)    to modify the terms of this Agreement to include terms no
less favorable to RIGEL than those STANFORD then provides to third party
licensees of the Licensed Technology.

       If no such license agreement between STANFORD and any such third party
       exists at the time RIGEL must elect either (a) or (b), then (a) shall
       automatically apply. If RIGEL elects the option set forth in Section
       6.6(a), such a reduction shall be in addition to any reduction resulting
       from the application of Section 6.2. If RIGEL elects the option set forth
       in Section 6.6(b), RIGEL and STANFORD shall modify the Agreement to
       contain all rights and obligations contained in licenses available to
       such other licensees.

       6.7    Creditable payments under this Agreement shall be offset against
up to fifty percent (50%) of each earned royalty payment which RIGEL would be
required to pay pursuant to Section 6.4, until the entire creditable amount is
exhausted.

       6.8    If this Agreement is not terminated in accordance with other
provisions hereof, RIGEL's obligation to pay royalties hereunder shall continue
until ten (10) years after first commercial sale of Licensed Products.

       6.9    The royalty on sales in currencies other than U.S. Dollars shall
be calculated using the appropriate foreign exchange rate for such currency
quoted by the Bank of America (San Francisco) foreign exchange desk, on the
close of business on the last banking day of each calendar quarter.  Royalty
payments to STANFORD shall be in U.S. Dollars.  All non-U.S. taxes related to
royalty payments shall be paid by RIGEL and are not deductible from the payments
due STANFORD.

7.     ROYALTY REPORTS, PAYMENTS, AND ACCOUNTING

       7.1    QUARTERLY EARNED ROYALTY PAYMENT AND REPORT - Beginning with the
first sale of Licensed Products, RIGEL shall make written reports (even if there
are no sales) and earned royalty payments to STANFORD within thirty (30) days
after the end of each calendar quarter.  This report shall be in the form of the
report of Appendix B and shall state the number, description and aggregate Net
Sales of Licensed Products during such completed calendar quarter, and shall
state the resulting calculation pursuant to Section 6.4 of earned royalty
payments due STANFORD for such completed calendar quarter.  Concurrent with the
making of each such report, RIGEL shall include payment due STANFORD of
royalties for the calendar quarter covered by such report.

       7.2    ACCOUNTING - RIGEL agrees to keep and maintain records for a
period of three (3) years showing the manufacture, sale, use and other
disposition of products sold or otherwise disposed of under the licenses herein
granted.  Such records will include general ledger records showing cash receipts
and expenses and records which include production records, customers, serial
numbers and related information in sufficient detail to enable the royalties
payable hereunder by RIGEL to be determined.  RIGEL further agrees to permit its
books and records to be examined by STANFORD from time to time to the extent
necessary to verify reports provided


[  * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY  WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS
AMENDED.

                                      7.

<PAGE>

for in Section 7.1.  Such examination is to be made by STANFORD or its
designee, at the expense of STANFORD, except in the event that the results of
the audit reveal an underreporting of royalties due STANFORD of five percent
(5%) or more, then the audit costs shall be paid by RIGEL.

8.     NEGATION OF WARRANTIES

       8.1    Nothing in this Agreement is or shall be construed as:

              (a)    a warranty or representation by STANFORD as to the validity
or scope of any Licensed Patents;

              (b)    a warranty or representation that anything made, used, sold
or otherwise disposed of under any license granted in this Agreement is or will
be free from infringement of patents, copyrights and other rights of third
parties;

              (c)    an obligation to bring or prosecute actions or suits
against third parties for infringement, except to the extent and in the
circumstances described in Article 13;

              (d)    granting by implication, estoppel or otherwise any licenses
or rights under patents or other rights of STANFORD or other persons other than
Licensed Technology, regardless of whether such patents or other rights are
dominant or subordinate to any Licensed Technology; or

              (e)    an obligation to furnish any technology or technological
information other than the Licensed Technology.

       8.2    Except as expressly set forth in this Agreement, STANFORD MAKES NO
REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR
IMPLIED.  THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE, OR THAT THE USE OF THE LICENSED PRODUCT(S)
WILL NOT INFRINGE ANY PATENT, COPYRIGHT, TRADEMARK, OR OTHER RIGHTS OR ANY OTHER
EXPRESS OR IMPLIED WARRANTIES.

       8.3    RIGEL agrees that nothing in this Agreement grants RIGEL any
express or implied license or right under or to U.S. Patent 4,656,134
"Amplification of Eucaryotic Genes" or any patent application corresponding
thereto.


9.     INDEMNITY

       9.1    LICENSEE agrees to indemnify, hold harmless, and defend STANFORD,
UCSF-Stanford Health Care and Stanford Health Services and their respective
trustees, officers, employees, students and agents against any and all claims
for death, illness, personal injury, property damage, and improper business
practices arising out of the manufacture, use, sale or


[  * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY  WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS
AMENDED.

                                      8.

<PAGE>

other disposition of Inventions, Licensed Products or Licensed Technology by
RIGEL or RIGEL's sublicensee(s), or their customers.

       9.2    STANFORD shall not be liable for any indirect, special,
consequential or other damages whatsoever, whether grounded in tort (including
negligence), strict liability, contract or otherwise.  STANFORD shall not have
any responsibilities or liabilities whatsoever with respect to Licensed
Product(s).

       9.3    LICENSEE shall at all times comply, through insurance or
self-insurance, with all statutory workers' compensation and employers'
liability requirements covering any and all employees with respect to
activities performed under this Agreement.

       9.4    In addition to the foregoing, LICENSEE shall maintain, during
the term of this Agreement, Comprehensive General Liability Insurance,
including Products Liability Insurance, with reputable and financially secure
insurance carrier(s) to cover the activities of LICENSEE and its
sublicensee(s).  Such insurance shall provide minimum limits of liability of
$5 Million and shall include STANFORD, UCSF-Stanford Health Care, Stanford
Health Services, their trustees, directors, officers, employees, students and
agents as additional insureds.  Such insurance shall be written to cover
claims incurred, discovered, manifested, or made during or after the
expiration of this Agreement.  At STANFORD's request, LICENSEE shall furnish
a Certificate of Insurance evidencing primary coverage and requiring thirty
(30) days prior written notice of cancellation or material change to
STANFORD.  LICENSEE shall advise STANFORD, in writing, that it maintains
excess liability coverage (following form) over primary insurance for at
least the minimum limits set forth above.  All such insurance of LICENSEE
shall be primary coverage; insurance of STANFORD, USCF-Stanford Health Care,
and Stanford Health Services shall be excess and noncontributory.

10.    MARKING

       Prior to the issuance of patents on the Inventions, RIGEL agrees to mark
Licensed Products (or their containers or labels) made, sold, or otherwise
disposed of by it under the license granted in this Agreement with the words
"Patent Pending," and following the issuance of one or more patents, with the
numbers of the Licensed Patents.

11.    STANFORD NAMES AND MARKS

       RIGEL agrees not to identify STANFORD in any promotional advertising or
other promotional materials to be disseminated to the public or any portion
thereof or to use the name of any STANFORD faculty member, employee, or student
or any trademark, service mark, trade name, or symbol of STANFORD, STANFORD
Health Services or UC-Stanford Health Care, or that is associated with any of
them, without STANFORD's prior written consent.

12.    PATENT RIGHTS

       12.1   STANFORD shall have the obligation to file, prosecute and maintain
all patent applications and patents included in the Licensed Patents.


[  * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY  WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS
AMENDED.

                                      9.

<PAGE>

       12.2   STANFORD will provide RIGEL with an opportunity to review and
comment upon the prosecution strategy and to consult with STANFORD on the
content of patent filings.  In addition, STANFORD will provide RIGEL or a
designee of RIGEL with copies of any correspondence relating to patent
applications and patents included in the Licensed Patents.

       12.3   RIGEL shall have the right to designate, in its sole discretion,
those foreign countries in which STANFORD will file, prosecute and maintain
patents and patent applications included in the Licensed Patents.  STANFORD may
propose to file, prosecute and maintain Licensed Patents in a country which
RIGEL has not designated pursuant to this Section 12.3.  If RIGEL agrees to such
designation, it shall reimburse STANFORD for the costs of such filing,
prosecution and maintenance of such patents or patent applications pursuant to
Section 12.4 and such patents or patent applications shall be included in the
Licensed Patents.  If RIGEL does not agree to such proposal, STANFORD may elect
to proceed with such filing, prosecution or maintenance at its own expense, and
such patents or patent applications in such country shall not be included in the
Licensed Patents.

       12.4   Within thirty (30) days after the Effective Date, RIGEL shall
reimburse STANFORD for all costs incurred by STANFORD prior to the Effective
Date in connection with the filing and prosecution of the patent applications
described in Section 2.5 ("Prior Patent Costs").  RIGEL shall also reimburse
STANFORD for all costs incurred by STANFORD after the Effective Date with
respect to the filing, prosecution, issuance and maintenance of patent
applications described in Section 2.5 and the Licensed Patents ("Future Patent
Costs"); PROVIDED, HOWEVER, that:

              (a)    if STANFORD grants a license under the Licensed Patents to
any third party (an "Other Licensee"), RIGEL's obligation to reimburse STANFORD
under this Section 12.4(a) shall be reduced such that RIGEL and such Other
Licensee(s) shall pay a pro-rata share of all Future Patent Costs incurred after
the date STANFORD executes such license agreement with such Other Licensee (such
pro-rata share shall be equal to the total Future Patent Costs incurred divided
by the number of licensees under the Licensed Patents at the time such costs are
incurred); and

              (b)    in addition to any reimbursement due RIGEL pursuant to
Section 12.4(a), if STANFORD grants a license under the Licensed Patents to an
Other Licensee prior to the second anniversary of the Effective Date, STANFORD
shall reimburse RIGEL for fifty percent (50%) of the Prior Patent Costs.

13.    INFRINGEMENT BY OTHERS:  PROTECTION OF PATENTS

       13.1   RIGEL shall promptly inform STANFORD of any suspected infringement
of any Licensed Patents by a third party.  During the Exclusivity Term, STANFORD
and RIGEL each shall have the right to institute an action for infringement of
the Licensed Patents against such third party in accordance with the following:


[  * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY  WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS
AMENDED.

                                      10.

<PAGE>

              (a)    if STANFORD and RIGEL agree to institute suit jointly, the
suit shall be brought in both their names, the out-of-pocket costs thereof shall
be borne equally, and any recovery or settlement shall be shared equally.  RIGEL
and STANFORD shall agree to the manner in which they shall exercise control over
such action.  STANFORD may, if it so desires, also be represented by separate
counsel of its own selection, the fees for which counsel shall be paid by
STANFORD;

              (b)    in the absence of agreement to institute a suit jointly,
STANFORD may institute suit, and, at its option, join RIGEL as a plaintiff.  If
STANFORD decides to institute suit, then it shall notify RIGEL in writing.
STANFORD shall bear the entire cost of such litigation and shall be entitled to
retain the entire amount of any recovery or settlement; and

              (c)    in the absence of agreement to institute a suit jointly and
if STANFORD notifies RIGEL that it has decided not to join in or institute a
suit, as provided in (a) or (b) above, RIGEL may institute suit and, at its
option, join STANFORD as a plaintiff.  RIGEL shall bear the entire cost of such
litigation.  Any recovery in excess of litigation costs will be shared with
STANFORD as follows:

                     (i)    Any payment for past sales will be deemed to be Net
Sales and RIGEL will pay STANFORD royalties thereon at the rates specified in
Paragraph 6.4; and

                     (ii)   any payment which covers future sales will be deemed
a sublicense and royalties will be shared as specified in Paragraph 6.3 and
Article 15.

                     LICENSEE and STANFORD agree to negotiate in good faith an
                     appropriate compensation to STANFORD for any non-cash
                     amounts or awards received in any settlement or cross-
                     license resulting from a suit brought by RIGEL pursuant to
                     this Section 13.1(c).  STANFORD will not share in the
                     portion of the recovery, if any, that is payment for
                     "willful infringement."

       13.2   Should either STANFORD or RIGEL commence a suit under the
provisions of Section 13.1 and thereafter elect to abandon the same, it shall
give timely notice to the other party who may, if it so desires, continue
prosecution of such suit; PROVIDED, HOWEVER, that the sharing of expenses and
any recovery in such suit shall be as agreed upon between STANFORD and RIGEL.

14.    OTHER LICENSEE(S) OF STANFORD

       14.1   If during the Exclusivity Term STANFORD discusses with, or has
received an offer from, a third party (a "Potential Licensee") with respect to
an opportunity for such Potential Licensee to obtain a license under the
Licensed Technology within the Licensed Field of Use, STANFORD may so notify
RIGEL.  Such notice shall specify the field within which such Potential Licensee
desires to obtain a license under the Licensed Technology (the "Field of
Interest").  Within thirty (30) days after RIGEL receives a notice from STANFORD
pursuant to this Section 14.1, the parties will meet to discuss RIGEL's current
activities directed toward, or


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                                      11.

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plans for, developing Licensed Products useful within the Field of Interest.
If RIGEL does not demonstrate that it is then diligently conducting such
activities or provide plans for diligently developing Licensed Products
within the Field of Interest that are reasonably acceptable to STANFORD, then
RIGEL and STANFORD shall discuss in good faith reasonable modifications to
the Agreement that exclude the Field of Interest from the definition of the
Licensed Field of Use.  STANFORD may thereafter license to such Potential
Licensee the Licensed Technology in the Field of Interest.

       14.2   If STANFORD has not entered into an agreement with a Service
Provider outside the Licensed Field of Use during the Exclusivity Term, then
after the expiration of the Exclusivity Term STANFORD and RIGEL agree to discuss
in good faith how to modify appropriately the definition of the Licensed Field
of Use to enable STANFORD to increase the interest of Service Providers in
obtaining a license under the Licensed Technology outside any modified Licensed
Field of Use.

15.    SUBLICENSE(S)

       15.1   RIGEL may grant sublicense(s) to its corporate partners in
conjunction with a sublicense of RIGEL's proprietary technology other than the
Licensed Technology and Improvements; provided that the Licensed Technology is
applicable to the field within which RIGEL and such corporate partner are
collaborating.

       15.2   Any sublicense(s) granted by RIGEL under this Agreement shall be
subject and subordinate to terms and conditions of this Agreement, except:

              (a)    Sublicense terms and conditions shall reflect that any
sublicensee(s) shall not grant sublicenses to a third parties (subject to
Section 15.4); and

              (b)    The earned royalty rate specified in the sublicense(s) may
be at higher rates than the rates in this Agreement.

       Any such sublicense(s) also shall expressly include the provisions of
Articles 7, 8, and 9 for the benefit of STANFORD and provide for the transfer of
all obligations, including the payment of royalties specified in such
sublicense(s), to STANFORD or its designee, in the event that this Agreement is
terminated if such sublicenses remain in effect after termination of this
Agreement.

       15.3   RIGEL agrees to provide STANFORD with a copy of any sublicense
granted pursuant to this Article 15.

       15.4   STANFORD agrees that RIGEL and/or its permitted sublicensee(s) may
(i) distribute Licensed Products through their normal channels, and (ii)
contract for the manufacture of Licensed Products with one or more third
parties.

16.    TERMINATION


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                                      12.

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       16.1   RIGEL may terminate this Agreement by giving STANFORD notice in
writing at least thirty (30) days in advance of the effective date of
termination selected by RIGEL.

       16.2   STANFORD may terminate this Agreement if RIGEL:

              (a)    is in default in payment of royalties or providing of
reports;

              (b)    is in breach of any provision hereof (subject to Section
5.2); or

              (c)    intentionally provides any false report;

       and fails to remedy any such default, breach, or false report within
       thirty (30) days after written notice thereof by STANFORD.

       16.3   Surviving any termination are:

              (a)    RIGEL's obligation to pay royalties accrued or accruable;

              (b)    any cause of action or claim of RIGEL or STANFORD, accrued
or to accrue, because of any breach or default by the other party; and

              (c)    the provisions of Sections 3.2, 3.5 and Articles 7, 8 and
9.

17.    ASSIGNMENT

       This Agreement may not be assigned by either party without the express
written consent of the other party, except that RIGEL may assign the Agreement
in connection with a merger, consolidation or sale of all or substantially all
of RIGEL's assets.

18.    ARBITRATION

       18.1   Any controversy arising under or related to this Agreement, and
any disputed claim by either party against the other under this Agreement
excluding any dispute relating to patent validity or infringement arising under
this Agreement, shall be settled by arbitration in accordance with the Licensing
Agreement Arbitration Rules of the American Arbitration Association.

       18.2   Upon request by either party, arbitration will be by a third party
arbitrator mutually agreed upon in writing by RIGEL and STANFORD within thirty
(30) days of such arbitration request.  Judgement upon the award rendered by the
arbitrator shall be final and nonappealable and may be entered in any court
having jurisdiction thereof.

       18.3   The parties shall be entitled to discovery in like manner as if
the arbitration were a civil suit in the California Superior Court.

       18.4   Any arbitration shall be held at Stanford, California, unless the
parties hereto mutually agree in writing to another place.


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                                      13.

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19.    NOTICES

       All notices under this Agreement shall be deemed to have been fully given
when done in writing and deposited in the United States mail, registered or
certified, and addressed as follows:


       To STANFORD:  Office of Technology Licensing

                     STANFORD University
                     900 Welch Road, Suite 350
                     Palo Alto, CA  94304-1850

                     Attention:    Director

       To RIGEL:     Rigel, Inc.
                     772 Lucerne Drive
                     Sunnyvale, CA  94086

                     Attention:    President

       Either party may change its address upon written notice to the other
party.

20.    WAIVER

       None of the terms of this Agreement can be waived except by the written
consent of the party waiving compliance.

21.    APPLICABLE LAW

This Agreement shall be governed by the laws of the State of California
applicable to agreements negotiated, executed and performed wholly within
California.

22.    SEVERABILITY; ENTIRE AGREEMENT

       If any provision of this Agreement shall be held to be invalid, illegal
or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not be in any way affected or impaired thereby.  This Agreement
embodies the entire understanding of the parties and shall supersede all
previous communications, representations or understandings, either oral or
written, between the parties relating to the subject matter hereof.  No
amendment or modification hereof shall be valid or binding upon the parties
unless made in writing and signed by duly authorized representatives of both
parties.

23.    COUNTERPARTS


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                                      14.

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       This Agreement may be executed in counterparts, each of which shall be
deemed an original and all of which together shall constitute one legal
instrument.

       IN WITNESS WHEREOF, the parties hereto have executed this Agreement in
duplicate originals by their duly authorized officers or representatives.

                     THE BOARD OF TRUSTEES OF THE LELAND
                     STANFORD JUNIOR UNIVERSITY

                     Signature /s/  Katherine Ku
                              -------------------------
                     Name   Katherine Ku
                         ------------------------------
                     Title  Director
                          -----------------------------
                     Date  April 15, 1998
                         ------------------------------
                     RIGEL

                     Signature  /s/ James M. Gower
                              -------------------------
                     Name   James M. Gower
                         ------------------------------
                     Title  President & CEO
                          -----------------------------
                     Date  3/27/98
                         ------------------------------


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EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS
AMENDED.

                                      15.

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                                    EXHIBIT A
                         LICENSED BIOLOGICAL MATERIALS


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                                      16.

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AMENDED.

                                      17.