NPS PHARMACEUTICALS INC
1999 PATENT AGREEMENT AMENDMENT
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<TYPE>EX-10.9.D
<SEQUENCE>19
<FILENAME>b323607ex10-9d.htm
<DESCRIPTION>1999 PATENT AGREEMENT AMENDMENT
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Prepared and filed by St Ives Burrups
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<p align="right"><font size="2" face="serif"> <b>Exhibit 10.9D</b></font></p>
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<p align="center"><font size="2" face="serif"><b>1999 Patent Agreement Amendment</b><font size="4"><br>
  </font><b>between<br>
  THE BRIGHAM AND WOMEN&#8217;S HOSPITAL, INC. <br>
  and<br>
  NPS PHARMACEUTICALS, INC.</b></font></p>
<div style="text-indent:3%">
  <p><font size="2" face="serif">Effective February 18, 1999, The Brigham and
    Women's Hospital, Inc., a Massachusetts not-for-profit corporation having
    its principal offices at 75 Francis Street, Boston, Massachusetts 02115 (the
    &#8220;Hospital&#8221;), and NPS Pharmaceuticals, Inc., a Delaware corporation
    having its principal offices at 420 Chipeta Way, Salt Lake City, Utah 84108
    (the &#8220;Company&#8221;) agree as follows:</font></p>
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<table width="100%" cellspacing="0">
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    <td width="3%"><font size="2" face="serif"><b>1.</b></font></td>
    <td><font size="2" face="serif"><b>BACKGROUND</b></font></td>
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<div style="text-indent:3%">
  <p><font size="2" face="serif">The Hospital and the Company entered into a certain
    Patent Agreement effective February 19, 1993, amended by a letter agreement
    dated March 15, 1993, and by paragraph 5 of the Research Agreement Amendment
    effective December 10, 1993 and further amended by the 1996 Patent Agreement Amendment effective February 7, 1996 (collectively,
    the &#8220;Original Patent Agreement&#8221;).</font></p>
  <p><font size="2" face="serif">The Hospital and the Company now wish to amend
    said Original Patent Agreement pursuant to the terms of this 1999 Patent Agreement
    Amendment (the &#8220;1999 Patent Agreement Amendment&#8221;). This 1999 Patent Agreement
    Amendment shall become effective the date first above written.</font></p>
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    <td width="3%" align="left"><font size="2" face="serif"><b>2.</b></font></td>
    <td colspan="4" align="left"><font face="serif"><b><font size="2">AMENDMENTS.
      </font></b><font size="2">The Original Patent Agreement as in effect on
      the effective date hereof, is hereby amended by this 1999 Patent Agreement
      Amendment as follows:<b>&nbsp;</b>&nbsp;</font></font><font size="2" face="serif">&nbsp;</font></td>
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    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td width="80%" align="left">&nbsp;</td>
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    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">2.1</font></td>
    <td colspan="3" align="left"><font size="2" face="serif">The term &#8220;Licensed
      Product(s)&#8221; contained in paragraphs 1.B, 4.A, 4.D, 5.A, 5.B, 6.A,
      6.C, 7.C, 7.D, 7.E, 13.A and 13.B of the Original Patent Agreement is hereby
      stricken and is replaced in all instances by the term &#8220;Royalty Bearing
      Products.&#8221;</font><font face="serif"><b><font size="2">&nbsp;</font></b><font size="2">&nbsp;</font></font><font size="2" face="serif">&nbsp;</font></td>
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    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
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    <td align="left"><font size="2" face="serif">2.2</font></td>
    <td colspan="3" align="left"><font size="2" face="serif">Paragraph 1.E. is
      hereby amended by inserting the following phrase &#8220;and/or in the Royalty
      Bearing Patents&#8221; immediately after the term &#8220;Licensed Patents&#8221;
      in the third line of such paragraph.</font><font face="serif"><b><font size="2">&nbsp;</font></b><font size="2">&nbsp;</font></font><font size="2" face="serif">&nbsp;</font></td>
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    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">2.3</font></td>
    <td colspan="3" align="left"><font size="2" face="serif">The Original Patent
      Agreement is hereby amended to include the additional defined terms as follows:</font><font face="serif"><b><font size="2">&nbsp;</font></b><font size="2">&nbsp;</font></font><font size="2" face="serif">&nbsp;</font></td>
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    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td colspan="3" align="left">&nbsp;</td>
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    <td width="3%" align="left">&nbsp;</td>
    <td width="3%" align="left"><font size="2" face="serif">2.3.1</font></td>
    <td colspan="2" align="left"><font size="2" face="serif">&#8220;Brown Funded
      Research Program&#8221; shall mean the research program as defined in the
      Complete Research Agreement (defined below) as said research program is
      amended and in effect from time to time under said Complete Research</font><font face="serif"><b><font size="2">&nbsp;</font></b><font size="2">Agreement.
      Where appropriate, references to the &#8220;Brown-Hebert Funded Research
      Program&#8221; shall also include the &#8220;Brown Funded Research Program.&#8221;</font></font></td>
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    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
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    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">2.3.2</font></td>
    <td colspan="2" align="left"><font size="2" face="serif">&#8220;Complete Research
      Agreement&#8221; as used herein shall mean collectively that Research Agreement
      entered into by the Hospital and the Company effective February 19, 1993
      (the &#8220;Initial Research Agreement&#8221;) as amended by the</font><font face="serif"><b><font size="2">&nbsp;</font></b><font size="2">&nbsp;</font></font><font size="2" face="serif">&nbsp;</font></td>
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<p align="center"><font size="2" face="serif">1</font></p>
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      <td width="9%">&nbsp;</td>
      <td><font size="2" face="serif">Research Agreement Amendment effective December
        10, 1993 (the &#8220;1993 Research Agreement Amendment&#8221;), the 1996 Research
        Agreement Amendment effective February 7, 1996 (the &#8220;1996 Research Agreement
        Amendment&#8221;) the 1997 Research Agreement Amendment effective March 1, 1997,
        and as further amended by the 1998 Research Agreement Amendment effective
        the date hereof (the &#8220;1998 Research Agreement Amendment&#8221;).</font></td>
    </tr>
  </table>
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    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td colspan="2" align="left">&nbsp;</td>
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    <td width="3%" align="left">&nbsp;</td>
    <td width="3%" align="left">&nbsp;</td>
    <td width="3%" align="left"><font size="2" face="serif">2.3.3</font></td>
    <td colspan="2" align="left"><font size="2" face="serif">&#8220;Extended Performance
      Period&#8221; shall mean that period beginning on March 1, 1996 and ending on
      the earlier of (i) February 29, 2000, or (ii) such earlier date of termination
      of the Extended Performance Period as shall be effected by the Company under
      the terms of the Complete Research Agreement.</font></td>
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    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td colspan="2" align="left">&nbsp;</td>
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    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">2.3.4</font></td>
    <td colspan="2" align="left"><font size="2" face="serif">&#8220;Principal Investigator(s)&#8221;
      shall mean Dr. Edward M. Brown.</font></td>
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    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td colspan="2" align="left">&nbsp;</td>
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    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">2.3.5</font></td>
    <td colspan="2" align="left"><font size="2" face="serif">&#8220;Royalty Bearing
      Patents&#8221; shall mean the following patent applications: U.S. Serial No.:
      08/546,998, U.S. Serial No.: 08/846,721, Japan Serial Nos.: 178315/96, 107778/97,
      and 350393/96, any patents granted on such U.S. and Japanese applications,
      and any continuations, continuations-in-part, divisionals, reissues or re-examinations
      and any corresponding foreign filings thereof.</font></td>
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    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td colspan="2" align="left">&nbsp;</td>
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    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">2.3.6</font></td>
    <td colspan="2" align="left"><font size="2" face="serif">&#8220;Royalty Bearing
      Products&#8221; shall mean (i) Licensed Products, and (ii) any product or process,
      the manufacture, use (including discovery testing and development), sale,
      or import of which falls within the scope of Valid Claims of Royalty Bearing
      Patents.</font></td>
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    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td colspan="2" align="left">&nbsp;</td>
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    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">2.4</font></td>
    <td colspan="3" align="left"><font size="2" face="serif">Subparagraphs 5.G.
      and 5.H. of the Original Patent Agreement (taking into account the amendment
      thereof by the 1996 Patent Agreement Amendment) dealing with royalties are
      hereby amended in their entirety as follows:</font></td>
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    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td colspan="2" align="left">&nbsp;</td>
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    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">G.</font></td>
    <td colspan="2" align="left"><font size="2" face="serif">Upon occurrence of
      the following event(s), the Company shall incur (and within ninety (90)
      days thereafter shall pay) the following Prepaid Royalty(ies):</font></td>
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    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td width="45%" align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
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    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td colspan="2" align="center"><font size="2" face="serif"><u>Event</u></font></td>
    <td align="center"><font size="2" face="serif"><u>Prepaid Royalty(ies)</u></font></td>
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    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">The Hospital has &#8220;delivered&#8221;
      to the Company a Secondary Functional Assay, previously identified as part
      of the Brown-Hebert Funded Research Program and/or the Brown Funded Research
      Program</font></td>
    <td align="center"><font size="2" face="serif">$50,000.00</font></td>
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    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
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    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td colspan="2" align="left"><font size="2" face="serif">The parties acknowledge
      and agree that for purposes hereof, the event of &#8220;delivery of such
      a Secondary Functional Assay&#8221; will be deemed to occur on the date
      when the Secondary Functional Assay is first described in detail in writing
      to the Company provided however, that said delivery is followed within ninety
      (90) days by (i) the Company&#8217;s verification of the information presented
      to the Company, and (ii) the Company&#8217;s establishment of the &#8220;Secondary
      Functional&nbsp;</font></td>
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    <td>&nbsp;</td>
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<p align="center"><font size="2" face="serif">2</font></p>
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    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="left"><font size="2" face="serif">Assay Utility&#8221; of said Secondary
      Functional Assay as described in paragraphs 3.i and 3.j hereof.</font></td>
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    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="left">&nbsp;</td>
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    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size="2" face="serif">H.</font></td>
    <td align="left"><font size="2" face="serif">Notwithstanding any other provision
      hereof for the payment of Prepaid Royalties, the Company shall have no obligation
      (i) to pay the specified Prepaid Royalty under 5.f. or 5.g. if on the date
      of &#8220;delivery&#8221; the Extended Performance Period has then expired
      or otherwise been terminated, or (ii) to pay in the aggregate, more than
      $500,000 of Prepaid Royalties from all payments combined. The Company shall
      receive credit against earned royalty payment obligations otherwise due
      in a given year, for all Prepaid Royalty(ies) made under the Original Patent
      Agreement as amended by this 1999 Patent Agreement Amendment, provided however,
      that the application of such credit shall not reduce earned royalties payable
      in a particular year below fifty percent (50%) of the earned royalties otherwise
      payable for such year. Uncredited Prepaid Royalty(ies) shall be rolled over
      in like manner to the next succeeding earned royalty year. Credits shall
      apply against any earned royalty obligation of the Company under the Original
      Patent Agreement as amended hereby.</font></td>
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    <td width="3%"><font size="2" face="serif">&nbsp;</font></td>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
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    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
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    <td width="3%" align="left"><font size="2" face="serif"><b>3.</b></font></td>
    <td align="left"><font size="2" face="serif"><b>TERMS</b></font></td>
    <td align="left">&nbsp;</td>
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<div style="text-indent:3%">
  <p><font size="2">Except as amended by this 1999 Patent Agreement Amendment,
    the Original Patent Agreement remains in full force and effect pursuant to
    the terms thereof.</font></p>
  </div>
<div style="text-indent:3%">
  <p><font size="2">EXECUTED by the respective duly authorized officers or agents
    of the Hospital and the Company to be effective as of the date and year first
    above written.</font></p>
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    <td colspan="2" align="left"><font size="2" face="serif"><b>NPS PHARMACEUTICALS,
      INC.</b></font></td>
    <td colspan="2" align="left"><font size="2" face="serif"><b>THE BRIGHAM AND
      WOMEN&#8217;S HOSPITAL INC.</b></font></td>
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    <td width="3%" align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td width="3%" align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
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    <td align="left"><font size="2" face="serif">By:</font></td>
    <td align="left"><font size="2" face="serif"> <u>/s/ &#8226;</u></font></td>
    <td align="left"><font size="2" face="serif">By: </font></td>
    <td align="left"><font size="2" face="serif"><u>/s/ BRIAN N. HICKS</u></font></td>
  </tr>
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    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Brian
      N. Hicks</font></td>
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    <td align="left"><font size="2" face="serif">Its: </font></td>
    <td align="left"><font size="2" face="serif">Vice President Corp. Developments
      Legal Affairs</font></td>
    <td align="left"><font size="2" face="serif">Its:.</font></td>
    <td align="left"><font size="2" face="serif"> Director Corporate Sponsored
      Reasearch and Licensing</font></td>
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    <td align="left"><font size="2" face="serif">Date: </font></td>
    <td align="left"><font size="2" face="serif">March 1, 1999</font></td>
    <td align="left"><font size="2" face="serif">Date:</font></td>
    <td align="left"><font size="2" face="serif"> March 22, 1999</font></td>
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<p align="center"><font size="2" face="serif">3</font> </p>
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