Investment Research Associates - Page 359




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               The ostensible purpose in organizing IRC was for IRC to                 
          enter into a licensing agreement with Newport for exploitation of            
          the NPT-15000 series compound in which Newport held a one-half               
          interest.  IRC and Newport entered into such an agreement in 1979            
          for the compound identified as NPT-15392, which was within the               
          NPT-15000 series.  However, the licensing agreement IRC entered              
          into was only with Newport.  Sloan-Kettering was not a party to              
          the agreement and did not sign the agreement, and there is no                
          evidence that Sloan-Kettering ever acquiesced in the agreement.              
          Newport and IRC were cognizant of Sloan-Kettering's reservation              
          of patent rights, and, accordingly, the licensing agreement                  
          between IRC and Newport was structured with the intent that                  
          exploitation of the subject compound by IRC or its licensees                 
          would not violate Sloan-Kettering's rights.  With that in mind,              
          the research agreement between IRC and Newport contained the                 
          following provisions:                                                        
               2.  Ownership of Project Results.                                       
                    Any and all products, processes, compounds,                        
               inventions, ideas, patents, patent rights, technical                    
               information, data and other proprietary know-how                        
               resulting or deriving from the Project, including all                   
               improvements thereto, and any other rights to                           
               commercially exploit the Project and the products and                   
               results thereof, including but not limited to,                          
               licensing and distribution rights, shall be the sole                    
               and exclusive property of the corporation [i.e., IRC];                  
               provided, however, the Corporation shall have no                        
               ownership rights or   rights which may be deemed to be                  
               a sub-license to the extent that any of the foregoing                   
               constitutes a "Patent Right" or an invention or                         
               improvement covered thereby as defined in the agreement                 






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