Document:

advm-ex103_297.htm

Exhibit 10.3

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

Amended and Restated Master Services Agreement

This Amended and Restated Master Services Agreement (together with its Schedules, this “Agreement”) is made effective from July 15 2014 (the “Effective Date”) and amends and restates in its entirety that certain Master Services Agreement effective July 15th, 2014 between Annapurna Therapeutics, SAS (formerly AAVLife), a French simplified joint stock company (societe par actions simplifiee) (“Annapurna”), and Cornell University, for and on behalf of its Joan and Sanford I. Weill Medical College, a New York education corporation (“Cornell”).  Each of Annapurna and Cornell may be referred to herein as a “Party” or, collectively, as the “Parties.”

The Parties hereby agree that the following provisions shall govern with respect to each set of Services (as defined below): 

ARTICLE I

Performance of Services

Section 1.01 Services. Cornell shall render services to  Annapurna (collectively, the “Services”), as set forth in Schedule A through D hereto and any additional Schedule(s) executed pursuant to this Agreement (collectively, the “Schedules”). In the event of any conflict between the provisions of a Schedule and the provisions of this Agreement, the provisions of this Agreement shall govern, except to the extent expressly set forth in such Schedule.

All Services will be performed in accordance with the terms of this Agreement. Any change or modification to this Agreement must be made in accordance with Section 9.07 below. 

Cornell shall provide the Services (a) at such times and at such places as Annapurna may reasonably request; and (b) within the time period specified in the relevant and mutually agreed to Schedule. 

Cornell will designate one of its employees as “Project Leader,” who will be available for frequent communications with Annapurna regarding the Services. 

Section 1.02 Subcontracting. With Annapurna’s prior written consent, Cornell may subcontract the performance of certain of its obligations under this Agreement to qualified affiliates or Third Parties (as defined below), provided that:

(a) Except as otherwise permitted under this Agreement, Cornell will not transfer Annapurna Materials or use any of its affiliates’ or any Third Party’s facilities or intellectual property in performing the Services, without Annapurna’s prior written consent,

(b) Cornell notifies Annapurna of the proposed subcontractor and identifies the specific Services to be performed by the subcontractor,

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(c) the subcontractor performs those Services in a manner consistent with the terms and conditions of this Agreement, and

(d) Cornell remains liable for the performance of the subcontractor.

ARTICLE II

Representations

Cornell represents and warrants to Annapurna that (a) Cornell is under no contractual or other obligation or restriction that is inconsistent with Cornell’s execution or performance of this Agreement. Cornell will not enter into any agreement, either written or oral, that could conflict with Cornell’s responsibilities or obligations under this Agreement; (b) Cornell’s employees, subcontractors and/or consultants providing the Services (“Cornell Personnel”) have the proper skill, training and experience to provide the Services; (c) Cornell will be solely responsible for paying Cornell Personnel and providing any employee benefits that they are owed; (d) each of the Cornell Personnel performing Services is subject to confidentiality obligations no less stringent than described in this Agreement; (e) Cornell Personnel are obligated to assign to Cornell all right, title and interest in and to the Deliverables and Cornell Materials and the intellectual property rights therein; (f) Cornell will comply with all laws, regulations and orders applicable to the provision of the Services; in addition, Cornell will comply with the terms of this Agreement;; (g) Cornell’s provision of, and Annapurna’s use of, the Services and the Deliverables (as defined below) in accordance with this Agreement will not, to the best of Cornell’s knowledge, violate any patent, trade secret or other proprietary or intellectual property right of any Third Party; and (h) neither Cornell nor any of the Cornell Personnel performing Services under this Agreement have been debarred, and to the best of Cornell’s knowledge, are not under consideration to be debarred, by the United States Food and Drug Administration (“FDA”) or any other governmental authority from working in or providing services to any pharmaceutical or biotechnology company under the Generic Drug Enforcement Act of 1992.

ARTICLE III

Inspections; Records

Section 3.01 Inspections by Annapurna. Annapurna, or a Third Party designated by Annapurna, during Cornell’s regular hours of business, may request reasonable access to Cornell’s facility to perform quality assurance inspections at mutually convenient times, subject to Cornell’s consent, which shall not be unreasonable withheld. Cornell shall reasonably cooperate with such inspectors and shall provide copies of all documents reasonably required by them to properly perform such inspections.

Section 3.02 Inspections by Regulatory Authorities. Cornell shall promptly notify Annapurna of any inspection of its facility conducted by any regulatory authority, including the FDA, that is directly related to the Services. Cornell shall promptly provide copies of all reports, citation, violations, warnings and notices of deficiency received by Cornell in connection with each such inspection. 

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Section 3.03 Records.

(a) Cornell will maintain all materials, data and documentation obtained or generated by Cornell in the course of providing the Services, including all electronic or computerized records and files (collectively, the “Records”), in a secure area protected from destruction.

(b) Cornell shall retain all Records for a period of five (5) years from the termination or expiration of this Agreement, or as otherwise required by applicable law or regulation. Upon written request of Annapurna, all Records will, at Annapurna’s option, either be delivered to Annapurna or to Annapurna’s designee, at Annapurna’s expense. 

(c) In no event will Cornell dispose of any such Records without first giving Annapurna sixty (60) days’ prior written notice of its intent to do so. Cornell may, however, retain copies of any Records as are reasonably necessary for regulatory or insurance purposes, subject to Cornell’s obligation of confidentiality.

ARTICLE IV

Compensation

As full consideration for the Services, Annapurna will pay Cornell as set forth in the applicable Schedule.

ARTICLE V

Proprietary Rights

Section 5.01 Materials. All documentation, information and data, as well as all biological, chemical or other materials, controlled by Annapurna and furnished to Cornell in connection with this Agreement and/or the Services (including all samples and all Annapurna’s Confidential Information), and all reports, communications, or analyses provide by Annapurna in connection with the Services (collectively, “Annapurna Materials”), are and shall remain the exclusive property of Annapurna. Cornell shall keep all Annapurna Materials in its custody and control, and Cornell shall deliver to Annapurna any Annapurna Materials upon termination of this Agreement or otherwise upon Annapurna’s request.  All documentation, information, data and other materials created, controlled or provided by Cornell in connection with this Agreement  and/or the Services (including all samples and all Cornell’s Confidential Information), and all reports, communications, or analyses provided by Cornell in connection with the Services (collectively, “Cornell Materials”;), are and shall remain the exclusive property of Cornell, subject to the rights expressly granted to Annapurna hereunder.. Each of the Annapurna Materials and Cornell Materials are “Materials”.

Section 5.02 Disclosure. Any Deliverables or Cornell Materials produced in connection with this Agreement shall be promptly and fully disclosed to Annapurna in accordance with the terms of this Agreement. 

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Section 5.03 Deliverables. With respect to (a) all Cornell Materials and (b) all information, data, documentation, reports, results and other products of the Services (collectively, the “Deliverables”): 

(a) With respect to Deliverables arising from Services delivered to Annapurna for research, development or manufacture of Licensed Products as defined in the relevant license agreement effective December 15, 2015 between Cornell and Annapurna for each of the following Cornell inventions:

[***]

[***]

[***]

(each a “License Agreement” and together, the “License Agreements”) the terms of the relevant License Agreement will govern Annapurna’s rights to use such Deliverables. 

(b) With respect to Deliverables arising from Services not directed to research, developing or manufacturing Licensed Products, subject to the terms and conditions set forth herein Cornell hereby grants to Annapurna a non-exclusive, worldwide, perpetual, royalty-free, non-transferable (except in accordance with Section 9.05), sub-licensable license to use, copy, disclose, modify and distribute in any manner, all or any part of such Deliverables.  Annapurna will promptly inform Cornell of such sublicense(s), and provide a copy of each such sublicense and each amendment made to any sublicense(s) to Cornell. All such sublicenses issued by Annapurna will protect Cornell’s rights in Deliverables, and ensure that sub-licensees are subject to obligations to Cornell similar to obligations described in this Agreement.  Any such sublicense granted herein is not further sub-licensable.

Section 5.04 Grant-back License to Cornell for Manufacturing Process Improvements to the Deliverables.  Annapurna hereby grants to Cornell, a fully-paid and royalty free, non-exclusive, non-transferable and non-sublicensable, worldwide license to use any inventions or discoveries made by Annapurna which are manufacturing process improvements pertaining specifically to the process for manufacture of AAV vectors which are improvements to or are based upon or incorporate any of the Deliverables provided hereunder (the “Annapurna Manufacturing Process Improvements”), solely for Cornell to provide vector manufacturing process services to any for-profit, non-profit or commercial third party, but not to transfer or sublicense any such Annapurna Manufacturing Process Improvements to any third party Any sublicense granted herein is not further sub-licensable.

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ARTICLE VI

Confidential Information 

Section 6.01 “Confidential Information” means all information disclosed by one Party to the other Party, that is treated as confidential and proprietary by the disclosing Party, including the disclosing Party’s Materials, whether or not labeled “Confidential”, and any information developed by either Party as a result of work in connection with this Agreement, including the Records, the Deliverables and the Materials; provided that “Confidential Information” does not include information that prior or subsequent to the time of such disclosure:

(a) is known to the receiving Party other than in connection with this Agreement and is and was not subject to another confidentiality obligation to the disclosing Party;

(b) is publicly known, or becomes publicly known, under circumstances involving no breach of this Agreement;

(c) is lawfully and in good faith disclosed to the receiving Party other than in connection with this Agreement by a Third Party (as defined in Section 9.12 of this Agreement), who is not subject to a confidentiality obligation to the disclosing Party;

(d) is independently developed by the receiving Party other than in connection with this Agreement and without reference to the other Party’s Confidential Information, as evidenced by its contemporaneous written records; or 

(e) is released from confidential status pursuant to a written agreement between the Parties.

For the purposes of clarity Parties agree that results of Services and supporting data published by Cornell and Cornell Project Leader are not Confidential Information.

Section 6.02 Obligations. Both Parties acknowledge that the disclosing Party is and will remain the sole owner of all of such disclosing Party’s Confidential Information. During the term of this Agreement and for a period of five (5) years thereafter, the receiving Party will take all commercially reasonable precautions to protect the confidentiality of the disclosing Party’s Confidential Information, and will not disclose or use any such Confidential Information except, with disclosing Party’s consent. 

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Section 6.03 Permitted Disclosure. The Parties may disclose Confidential Information to their Personnel who need to know such Confidential Information in order to provide the Services and who are obligated, in writing, to protect the confidentiality of such Confidential Information under terms no less stringent than those set forth in this Article VI. If required by law, the receiving Party may disclose Confidential Information to a governmental authority, provided that, to the extent possible, reasonable advance notice is given to the disclosing Party and the receiving Party reasonably cooperates with the disclosing Party to obtain confidentiality protection of such information.  In addition, Annapurna may disclose Cornell’s Confidential Information in exercising its rights under Section 5.03 or 5.04 or to an actual or bona fide potential acquirer, collaborator, contractor, investor or financing source for purposes of an acquisition, investment, financing transaction or the research, development, manufacturing and/or commercialization of products for rare diseases and conditions, including, without limitation, Friedreich ataxia.

Section 6.04 PHI. Both Parties shall hold all individually identifiable Protected Health Information (as is defined under the Health Insurance Portability and Accountability Act of 1996) or comparable information under the law of any other jurisdiction (collectively, “PHI”) that is obtained pursuant to this Agreement strictly confidential in accordance with applicable law and provide all reasonable protections to prevent the unauthorized disclosure of such PHI.

ARTICLE VII

Indemnification and Insurance

Section 7.01 Indemnification of Annapurna. Cornell agrees to defend, indemnify and hold harmless Annapurna and its employees, directors, independent contractors and agents from and against any and all liabilities, obligations, losses, damages, penalties, claims, costs, expenses and disbursements of any kind or nature whatsoever (including attorney fees) (collectively “Liabilities”) in connection with any action, proceeding or claim commenced or threatened by any Third Party (each, a “Claim”), to the extent arising out of Cornell’s performance of the Services or material breach by Cornell of this Agreement, in each case except to the extent such Claim arises from negligence or intentional misconduct of Annapurna or breach of this Agreement by Annapurna.

As a condition of this indemnification obligation, Annapurna must promptly notify Cornell of such Claim, must tender to Cornell (and/or its insurer) full authority to defend or settle such Claim and must reasonably cooperate with the defense of such Claim. Cornell shall not settle such Claim without Annapurna’s prior written consent, such consent not to be unreasonably withheld.

Section 7.02 Indemnification of Cornell. Annapurna agrees to defend, indemnify and hold harmless Cornell and the Cornell Personnel from and against any and all Liabilities in connection with any Claim to the extent relating to or arising out of (a) Annapurna’s negligence or willful misconduct in connection with this Agreement, (b) Annapurna’s breach of this Agreement, or (c) Annapurna’s use or sale of the Annapurna Materials or the Deliverables, in each case except to the extent such Claim arises out of or results from a material breach by Cornell of this Agreement or from the gross negligence or willful misconduct of Cornell or any of the Cornell Personnel, or to the extent provided in Section 7.01.

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As a condition of such indemnification obligation, Cornell must promptly notify Annapurna of such Claim, must tender to Annapurna (and/or its insurer) full authority to defend or settle such Claim and must reasonably cooperate with the defense of such Claim. Annapurna shall not settle any such Claim without Cornell’s prior written consent, such consent not to be unreasonably withheld.

ARTICLE VIII

Expiration and Termination

Section 8.01 Term. This Agreement will be in effect starting on the Effective Date and continuing until the second (2nd) anniversary of the Effective Date, as may be extended by mutual agreement; provided that this Agreement shall remain in effect, unless earlier terminated in accordance with Section 8.02, until the termination, or completion of performance of the Services under any Schedule in effect as of the date of expiration of this Agreement.

Section 8.02 Termination. Either Party may terminate this Agreement or any Schedule: 

(i) upon thirty (30) days’ prior written notice to the other Party, if such other Party breaches this Agreement and fails to cure the breach during such notice period.

Section 8.03 Effects of Termination. Upon termination or expiration of this Agreement, (a) Cornell will terminate all Services in progress in an orderly manner as soon as practical and in accordance with a schedule agreed to by the Parties, (b) Cornell will deliver to Annapurna any Materials and Deliverables, (c) Annapurna will pay Cornell any monies due and owing Cornell, up to the time of termination or expiration, for Services actually and properly performed (not to exceed the amount set forth in the relevant Schedule) and all authorized expenses actually incurred, (d) receiving Parties will immediately return to the disclosing Parties all of such disclosing Party’s Confidential Information and copies thereof provided to the receiving Party under this Agreement (except for (i) one (1) copy which the receiving Party may retain solely to monitor its surviving obligations of confidentiality under this Agreement and (ii) to exercise its rights that survive expiration or termination of this Agreement), and (e) the provisions of Articles III, V, VI, VII and IX, and this Section 8.03 will survive the expiration or any termination of this Agreement.

ARTICLE IX

Miscellaneous 

Section 9.01 Independent Contractor. All Services will be rendered by Cornell as an independent contractor and this Agreement does not create an employer-employee relationship between the Parties. Cornell and Cornell Personnel will have no rights to receive any employee benefits, including health and accident insurance, sick leave or vacation, which are accorded to Annapurna employees. Cornell will not in any way represent itself to be an employee, partner, joint venturer or agent of Annapurna.

Section 9.02 Taxes. Cornell will pay all required taxes on Cornell’s income from Annapurna under this Agreement. Cornell will provide Annapurna with Cornell’s taxpayer identification number.

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Section 9.03 Publicity. Except as otherwise stated in this Agreement, neither Party may use the name of the other Party in any advertising or other form of publicity, without the written permission of such other Party; it being noted that the publication of scholarly articles, disclosures required by law, shall not be considered publicity.

Section 9.04 Notices. All notices delivered pursuant to this Agreement must be written and sent to the following addresses (or such other address as is provided in accordance with this Section 9.4) and otherwise in accordance of this section 9.04:

If to Annapurna:

Annapurna Therapeutics

183 Avenue de Choisy 

Paris, France 75013 

Attn: Amber Salzman

If to Cornell:

Weill Cornell Medicine

1300 York Avenue, Box 89

New York, New York 10065

Attn: Office of Sponsored Research Administration

With a copy to:

Weill Cornell Medicine

1300 York Avenue, 

New York, NY 10065

Attn: Dr. Ronald Crystal

All notices will be effective upon receipt and must be delivered: (a) by personal delivery, with receipt acknowledged; (b) by facsimile, by electronic mail in portable document format (.pdf) form, or by any other electronic means intended to preserve the originals graphic and pictorial appearance of a document; (c) by prepaid certified or registered mail, return receipt requested; or (d) by prepaid recognized next business day delivery service. 

Section 9.05 Assignment.

(a) This Agreement is a personal services agreement, and the rights and obligations hereunder may not be assigned or transferred by either Party without the other Party’s prior written consent, except as, otherwise, set forth in this Section 9.05. 

(b) Annapurna may assign this Agreement without the consent of Cornell, in whole or in part, to an affiliate, or in connection with a merger, consolidation, acquisition or sale or transfer of all or substantially all assets to which this Agreement relates. 

(c) Any assignment not in accordance with this Section 9.05 shall be void. 

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Section 9.06 Entire Agreement. This Agreement constitutes the entire agreement of the Parties with regard to its subject matter, and supersedes all previous written or oral representations, agreements and understandings between Annapurna and Cornell with respect to its subject matter. 

Section 9.07 Amendment. The provisions of this Agreement may be changed only by a written agreement signed by authorized representatives of both Parties.

Section 9.08 Severability. Each provision in this Agreement is independent and severable from the others, and no provision will be rendered unenforceable as a result of any other provision(s) being held to be invalid or unenforceable in whole or in part. If any provision of this Agreement is determined to be invalid or unenforceable, that provision shall be appropriately limited and revised to the extent permitted by applicable law. 

Section 9.09 Governing Law. This Agreement will be construed and interpreted and its performance governed by the laws of the State of New York, without giving effect to the doctrine of conflict of laws.

Section 9.10 Waiver. No waiver of any term, provision or condition of this Agreement (whether by conduct or otherwise) in any one or more instances will be deemed to be or construed as a further or continuing waiver of any such term, provision or condition of this Agreement.

Section 9.11 Counterparts and Signatures. This Agreement may be executed in one or more counterparts, each of which will be deemed an original, and all of which together will be deemed to be one and the same instrument. Signatures to this Agreement transmitted by facsimile transmission, by electronic mail in portable document format (.pdf) form, or by any other electronic means intended to preserve the originals graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document bearing the original signatures, and shall be deemed original signatures by both Parties.

Section 9.12 Construction. In construing this Agreement, unless expressly specified otherwise, (a) except where the context otherwise requires, use of any gender includes any other gender, and use of the singular includes the plural and vice versa; (b) any list or examples following the word “including” shall be interpreted without limitation to the generality of the preceding words; (c) all references to “dollars” or “$” herein shall mean U.S. Dollars; (d) “Third Party” means any person or entity other than a Party or an affiliate of a Party; (e) headings are only for convenience and the headings do not constitute or form a part of this Agreement, and should not be used in the construction of this Agreement; and (f) each Party represents that it has been represented by legal counsel in connection with this Agreement and acknowledges that it has participated in the drafting hereof, and that in interpreting and applying the terms and provisions of this Agreement, no presumption shall apply against the Party that originally drafted such terms and provisions.

[Signature Page Follows]

 

 

 

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The Parties to this Agreement hereby indicate their acceptance of the terms of this Agreement by the signatures set forth below. Each individual signing on behalf of a corporate entity hereby personally represents and warrants his or her legal authority to legally bind that entity. 

 

	
Annapurna

	
 
	
 

	
By:
	
 

	
 
	
Name:
	
 

	
 
	
Title:
	
 

 

	
Cornell University, for and on behalf of its Joan and Sanford I. Weill Medical College

	
 
	
 

	
By:
	
 

	
 
	
Name:
	
Amy A. Lane, MBA

	
 
	
Title:
	
Assistant Director, Office of

Sponsored Research

Administration

 

 

 

SIGNATURE PAGE TO MASTER SERVICES AGREEMENT

 

A [Do not delete - this paragraph generates the automatic page number]

Schedule A

Services and Compensation

This Schedule (“Schedule”) is made effective as of July 15, 2014 (the “Schedule Effective Date”) between AAVLife, a French simplified joint stock company (societe par actions simplifee) (“AAVLife”) and Cornell University, for and on behalf of its Joan and Sanford I. Weill Medical College, a New York education corporation (“Cornell”), and upon execution will be incorporated into the Master Services Agreement between AAVLife and Cornell dated July 15, 2014 (the “Agreement”).

In the event of any conflict between the provisions of this Schedule and the provisions of the Agreement, the provisions of the Agreement shall govern, except to the extent expressly set forth in this Schedule. Capitalized terms defined in the Agreement and not otherwise defined in this Schedule shall have the meanings ascribed to such capitalized terms in the Agreement.

1. Services; Materials.

Cornell will render to AAVLife the Services set forth below. Any Deliverables will be provided to AAVLife in a mutually agreeable format.

[***]

2. Cornell Project Leader.

The project leader for the Services set forth above shall be:

 

		
	
Name:
	
Dr. Dolan Sondhi

	
Title:
	
Associate Research Professor

	
Phone:
	
(212)746-5609

	
Email:
	
dos2011@med.cornell.edu

 

3. Compensation.

As full compensation for Services performed pursuant to this Schedule, AAVLife will pay Cornell in accordance with the budget attached hereto as Annex A and incorporated herein by reference.

If paying for travel/expenses: AAVLife will reimburse Cornell for all reasonable travel and other expenses incurred by Cornell in rendering the Services, provided that such expenses are agreed upon in writing in advance, and are confirmed by appropriate written expense statements and other supporting documentation. The total amount paid to Cornell by AAVLife for both compensation and expenses shall not exceed [***] without AAVLife’s prior written consent.

[Schedule ___]

On the last day of each calendar month, Cornell shall invoice AAVLife for Services rendered and expenses incurred during the preceding month. All invoices will be sent to:

AAVLife

183 Avenue de Choisy 

Paris, France 75013 

Attn: Amber Salzman

and shall reference Schedule A.

AAVLife will remit payment within thirty (30) days of AAVLife’s receipt of invoice to the following address:

 

			
	
Payable To:
	
 
	
Weill Medical College of Cornell University

	
Tax ID #:
	
 
	
13-1623978

	
Address:
	
 
	
1305 York Avenue, 13th Floor, New York, NY 10021

	
Attention:
	
 
	
Dr. Dolan Sondhi

	
Phone:
	
 
	
(212) 746-5609

 

4. Completion.

The Parties agree that the estimated time for completion of the Services is [***] from the Schedule Effective Date.

5. Counterparts and Signatures.

This Schedule may be executed in one or more counterparts, each of which will be deemed an original, and all of which together will be deemed to be one and the same instrument. Signatures to this Schedule transmitted by facsimile transmission, by electronic mail in portable document format (.pdf) form, or by any other electronic means intended to preserve the originals graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document bearing the original signatures, and shall be deemed original signatures by both Parties. 

*        *        *

[Schedule ___]

The Parties to this Schedule hereby indicate their acceptance of the terms of this Schedule by the signatures set forth below. Each individual signing on behalf of a corporate entity hereby personally represents and warrants his or her legal authority to legally bind that entity.

 

	
AAVLife

	
 
	
 

	
By:
	
 

	
 
	
Name:
	
 

	
 
	
Title:
	
 

 

	
Cornell University, for and on behalf of its Joan and Sаnford I. Weill Medical College

	
 
	
 

	
By:
	
 

	
 
	
Name:
	
Michelle A. Lewis, M.S.

	
 
	
Title:
	
Director, Office of Sponsored

Research Administration

 

	
Read and Acknowledged:

	
 
	
 

	
By:
	
 

	
 
	
Name:
	
Dr. Dolan Sondhi

 

 

 

[Schedule ___]

 

Annex A

Budget

The following amounts are based on completion of Services covered by this Schedule within [***] of the Schedule Effective Date; to be invoiced based on the actual amount of time the relevant individual spends in providing the Services.

[***]

 

 

 

 

 

B [Do not delete - this paragraph generates the automatic page number]

Schedule B

Services and Compensation

This Schedule (“Schedule B”) is made effective as of Nov 6, 2014 (the “Schedule B Effective Date”) between AAVLife, a French simplified joint stock company (societe par actions simplifiее) (“AAVLife”) and Cornell University, for and on behalf of its Joan and Sanford I. Weill Medical College, a New York education corporation (“Cornell”), and upon execution will be incorporated into the Master Services Agreement between AAVLife and Cornell dated July 15. 2014 (the “Agreement”).

In the event of any conflict between the provisions of this Schedule and the provisions of the Agreement, the provisions of the Agreement shall govern, except to the extent expressly set forth in this Schedule. Capitalized terms defined in the Agreement and not otherwise defined in this Schedule shall have the meanings ascribed to such capitalized terms in the Agreement.

1. Services; Materials.

Cornell will render to AAVLife the Services set forth below. Any Deliverables will be provided to AAVLife in a mutually agreeable format.

[***]

2. Cornell Project Leader.

The project leader for the Services set forth above shall be:

 

		
	
Name:
	
Dr. Dolan Sondhi

	
Title:
	
Associate Research Professor

	
Phone:
	
(212)746-5609

	
Email:
	
dos2011@med.еdu

3. Compensation.

AAVLife will pay to Cornell die lump sum of [***] plus [***]  in indirects to cover services performed by Benjamin Van de Graaf, and AAVLife will pay to Cornell the lump sum of [***] plus [***] in indirects for [***] services provided.  Cornell shall invoice AAVLife for Services rendered and expenses.

This would be at a cost of [***] in direct costs with indirect costs being[***] so therefore total cost would be [***]

If paying for travel/expenses: AAVLife will reimburse Cornell for all reasonable travel and other expenses incurred by Cornell in rendering the Services, provided that such expenses are agreed upon in writing in advance, and are confirmed by appropriate written expense statements and other supporting documentation.

[Schedule ___]

All invoices will be sent to:

AAVLife

183 Avenue de Choisy

Paris, France 75013

Attn: Amber Salzman

and shall reference Schedule B.

AAVLife will remit payment within thirty (30) days of AAVLife’s receipt of invoice to the following address:

 

			
	
Payable To:
	
 
	
Weill Medical College of Cornell University

	
Tax ID #:
	
 
	
13-1623978

	
Address:
	
 
	
1300 York Avenue, Box 164. New York, NY 10065

	
Attention:
	
 
	
Eduardo Betancourt. Department Administrator

	
Phone:
	
 
	
646-962-5561

4. Completion.

The Parties agree that the estimated time for completion of the Services is [***] from the Schedule Effective Date.

5. Counterparts and Signatures.

This Schedule may be executed in one or more counterparts, each of which will be deemed an original, and all of which together will be deemed to be one and the same instrument. Signatures to this Schedule transmitted by facsimile transmission, by electronic mail in portable document format (.pdf) form, or by any other electronic means intended to preserve the originals graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document bearing the original signatures, and shall be deemed original signatures by both Parties.

*      *      *      *      *

[Schedule ___]

The Parties to this Schedule hereby indicate their acceptance of the terms of this Schedule by the signatures set forth below. Each individual signing on behalf of a corporate entity hereby personally represents and warrants his or her legal authority to legally bind that entity.

 

	
AAVLife

	
 
	
 

	
By:
	
 

	
 
	
Name:
	
 

	
 
	
Title:
	
 

 

	
Cornell University, for and on behalf of its Joan and Sаnford I. Weill Medical College

	
 
	
 

	
By:
	
 

	
 
	
Name:
	
Michelle A. Lewis, M.S.

	
 
	
Title:
	
Director, Office of Sponsored

Research Administration

 

	
Read and Acknowledged:

	
 
	
 

	
By:
	
 

	
 
	
Name:
	
Dr. Dolan Sondhi

 

 

 

[Schedule ___]

 

C [Do not delete - this paragraph generates the automatic page number]

Schedule C

Services and Compensation

This Schedule (“Schedule C”) is made effective as of June 8, 2015 (the “Schedule C Effective Date”) between AAVLife, a French simplified joint stock company (societe par actions simplifiee) (“AAVLife”) and Cornell University, for and on behalf of its Joan and Sanford I. Weill Medical College, a New York education corporation (“Cornell”), and upon execution will be incorporated into the Master Services Agreement between AAVLife and Cornell dated July 15, 2014 (the “Agreement”).

In the event of any conflict between the provisions of this Schedule and the provisions of the Agreement, the provisions of the Agreement shall govern, except to the extent expressly set forth in this Schedule. Capitalized terms defined in the Agreement and not otherwise defined in this Schedule shall have the meanings ascribed to such capitalized terms in the Agreement.

1. Services; Materials.

Cornell will render to AAVLife the Services set forth below. Any Deliverables will be provided to AAVLife in a mutually agreeable format.

[***]

Direct costs: [***] and indirect costs [***]: [***] come to a total of [***]

2. Cornell Project Leader.

The project leader for the Services set forth above shall be:

 

		
	
Name:
	
Dr. Dolan Sondhi

	
Title:
	
Associate Research Professor

	
Phone:
	
(212)746-5609

	
Email:
	
dos2011@med.cornell.edu

3. Compensation.

AAVLife will pay to Cornell the amount of [***] for these Services. On the last day of each calendar month, Cornell shall invoice AAVLife for Services rendered and expenses incurred during the preceding month.

If paying for travel/expenses: AAVLife will reimburse Cornell for all reasonable travel and other expenses incurred by Cornell in rendering the Services, provided that such expenses are agreed upon in writing in advance, and are confirmed by appropriate written expense statements and other supporting documentation.

[Schedule ___]

All invoices will be sent to:

AAVLife

183 Avenue de Choisy 

Paris, France 75013 

Attn: Amber Salzman

and shall reference Schedule A.

AAVLife will remit payment within thirty (30) days of AAVLife’s receipt of invoice to the following address:

 

			
	
Payable To:
	
 
	
Weill Medical College of Cornell University

	
Tax ID #:
	
 
	
13-1623978

	
Address:
	
 
	
1305 York Avenue, 13th Floor, New York, NY 10021

	
Attention:
	
 
	
Dr. Dolan Sondhi

	
Phone:
	
 
	
(212) 746-5609

4. Completion.

The Parties agree that the estimated time for completion of the Services is [***] from the Schedule Effective Date.

5. Counterparts and Signatures.

This Schedule may be executed in one or more counterparts, each of which will be deemed an original, and all of which together will be deemed to be one and the same instrument. Signatures to this Schedule transmitted by facsimile transmission, by electronic mail in portable document format (.pdf) form, or by any other electronic means intended to preserve the originals graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document bearing the original signatures, and shall be deemed original signatures by both Parties.

*      *      *

[Schedule ___]

The Parties to this Schedule hereby indicate their acceptance of the terms of this Schedule by the signatures set forth below. Each individual signing on behalf of a corporate entity hereby personally represents and warrants his or her legal authority to legally bind that entity.

 

	
AAVLife

	
 
	
 

	
By:
	
 

	
 
	
Name:
	
Amber Salzman, PhD

	
 
	
Title:
	
CEO

 

	
Cornell University, for and on behalf of its Joan and Sаnford I. Weill Medical College

	
 
	
 

	
By:
	
 

	
 
	
Name:
	
Amy A. Lane, MBA

	
 
	
Title:
	
Assistant Director, Office of

Sponsored Research

Administration

 

	
Read and Acknowledged:

	
 
	
 

	
By:
	
 

	
 
	
Name:
	
Dr. Dolan Sondhi

 

 

 

[Schedule ___]

 

D [Do not delete - this paragraph generates the automatic page number]

Schedule D

WorkPlan for the Services, Deliverables, Budget and Compensation 

This Schedule (“Schedule D”) is made effective as of December 1, 2015 (the “Schedule D Effective Date”) between Annapurna Therapeutics, SAS, a French simplified joint stock company (societe par actions simplifiee) (“Annapurna”) and Cornell University, for and on behalf of its Joan and Sanford I. Weill Medical College, a New York education corporation (“Cornell”), and upon execution will be incorporated into the Amended and Restated Master Services Agreement between Annapurna and Cornell effective from July 15, 2014 (the “Agreement”). The WorkPlan under this Schedule D shall cover a term of [***] (the “Term”). In the event of any conflict between the provisions of this Schedule and the provisions of the Agreement, the provisions of this Schedule shall govern. Capitalized terms defined in the Agreement and not otherwise defined in this Schedule shall have the meanings ascribed to such capitalized terms in the Agreement.

1. Services under the WorkPlan; Deliverables; and Budget.

This Schedule D shall be understood to describe the scope to apply for [***] of the WorkPlan hereunder, with the general parameters for each [***] (other than [***]) to be agreed upon no later than 60 days prior to [***] of this Schedule D. Annapurna shall not under this Agreement be obligated to pay any rates or costs for any Services to be conducted or Deliverables to be provided by Cornell at rates or costs that are not materially consistent with those charged by comparable university research institutions similarly situated. The WorkPlan and Budget shall set forth a detailed and full description of all of the work and services to be included within the Services to be provided hereunder. The Parties shall meet at least once per calendar quarter (or more frequently if requested in writing by Annapurna from time to time), to review and update each WorkPlan and the Budget to reflect the desired scope of work and services requested by Annapurna to be provided by Cornell (each, a “Quarterly WorkPlan Review”). For clarity, Annapurna shall not have any obligation to pay for any Services or Deliverables unless such Services or Deliverables were agreed in advance by the Parties in writing as documented as a result of the most recent Quarterly Workplan Review, as reflected in the latest updated WorkPlan and Budget. The failure by the parties to agree on a WorkPlan for any calendar quarter shall not ever give rise to any right of termination by Annapurna. If no agreement can be reached on the WorkPlan as the result of any Quarterly WorkPlan Review, then Annapurna will work in good faith with Cornell to define Services that are in the best interest of Annapurna’s business and within Cornell’s ability to deliver. Services will relate to gene therapy with adeno-associated virus vectors.

Cornell will render to Annapurna the Services set forth pursuant to the WorkPlan for [***] as described below and in accordance with the Budget as described in “Annex A” which is attached hereto and is hereby incorporated by reference and only shall be amended by the parties in good faith discussions from time to time. The WorkPlan for [***] shall be as follows, and any Deliverables will be provided to Annapurna in a mutually agreeable format.

[***]

Schedule D-1

2. Cornell Project Leader/Changes to Project Leader or Types of Services.  

The Project Leader for the Services and Deliverables under this WorkPlan as set forth above shall be Dr. Ronald G. Crystal. In the event that Dr. Crystal is no longer able to serve as the Cornell Project Leader for the Services under the WorkPlan, Annapurna shall have the right to terminate the Agreement upon thirty (30) days written notice to Cornell. Further, Annapurna shall have the right to terminate the Agreement upon thirty (30) days written notice to Cornell if Cornell is otherwise unable to continue to provide the types of services as outlined in the WorkPlan for [***] in a similar or comparable fashion for [***], or if Cornell or the Cornell Project Leader has failed to cure a material breach in accordance with Section 8.02 of the Agreement. 

3. Compensation. 

	
 
	
(i)
	
For [***] and any subsequent [***], unless Annapurna raises financing after the Effective Date as set forth in subparts (ii) or (iii) below, Annapurna will pay to Cornell, in accordance with the details of the Budget as set forth in “Annex A”, the total aggregate amount of [***] as fully-inclusive for [***], such total (i) to be fully-inclusive of all direct and indirect costs of all types (such indirect costs at a rate not to exceed [***]), (ii) to be paid upon the delivery of the Deliverables in quarterly installments, (iii) to include all costs for [***], and (iv) to be fully inclusive for all of the Services as set forth herein for [***] and for the delivery of the resulting Deliverables and for the rights granted to Annapurna under the Agreement for the use of all the Deliverables.

	
 
	
(ii)
	
In the event that Annapurna and its affiliates raise, in total, an additional [***] in financing after the Effective Date of this Schedule D, through investors or Annapurna or one of its affiliates engages in a business transaction such as a merger with or acquisition by a third party wherein the surviving entity in the merger or the parent company or affiliate in the acquisition has at least [***], Annapurna will pay to Cornell, in accordance with the details of the Budget as set forth in “Annex A”, the total aggregate amount of [***] as fully-inclusive for [***] and each of the following [***], such total (i) to be fully-inclusive of all direct and indirect costs of all types (such indirect costs at a rate not to exceed [***]) , (ii) to be paid upon the delivery of the Deliverables in quarterly installments, (iii) to include all costs for [***], and (iv) to be fully inclusive for all of the Services as set forth herein for [***] and as agreed to for each of the following [***] and for the delivery of the resulting Deliverables and for the rights granted to Annapurna under the Agreement for the use of all the Deliverables.

	
 
	
(iii)
	
In the event that Annapurna and its affiliates raise, in total, an additional [***] in financing after the Effective Date of this Schedule D, through investors or Annapurna or one of its affiliates engages in or a business transaction such as a merger with or acquisition by a third party wherein the surviving entity in the merger or the parent company or affiliate in the acquisition has at least [***], Annapurna will pay to Cornell, in accordance with the details of the Budget as set 

 

	
 
		
forth in “Annex A”, the total aggregate amount of [***] as fully-inclusive for [***] and each of the following [***], such total (i) to be fully-inclusive of all direct and indirect costs of all types (such indirect costs at a rate not to exceed [***]) , (ii) to be paid upon the delivery of the Deliverables in quarterly installments, (iii) to include all costs for [***], and (iv) to be fully inclusive for all of the Services as set forth herein for [***] and as agreed to for each of the following [***] and for the delivery of the resulting Deliverables and for the rights granted to Annapurna under the Agreement for the use of all the Deliverables. 

For clarity, the amounts to be paid by Annapurna under the Budget as shown in subparts (i), (ii) and (iii) above are not to be taken as cumulative, and instead, only the highest amount that is applicable will apply. In each [***] of the Term prior to the consummation of the financings referred to above, Annapurna will be required to pay not less than the minimum amount required above. Upon consummation of the financing, Annapurna will be required to pay not less than [***] per [***] plus any shortfall from prior [***] so that at the end of the Term Annapurna shall have paid [***].

For example, for [***], if the total of [***] in additional revenue has been raised after the Effective Date during [***] as described in subpart (iii) above, [***] total shall be spent on the following:

[***]

Invoices should be generated quarterly in the amounts specified under the Budget, based on the updated WorkPlan resulting from the most recent Quarterly WorkPlan Review, provided that the WorkPlan is being conducted diligently and in good faith to provide the Deliverables as set forth therein.

On the last day of each calendar quarter, Cornell shall invoice Annapurna for Services rendered and expenses incurred during the preceding quarter, as described in the Agreement and of this Schedule D.

Notwithstanding any provision or interpretation of the Agreement or of this Schedule D to the contrary, in the event that either (i) Cornell is not charging in any material respect competitive market-based prices for each element of the Deliverables or Services under the WorkPlan (as updated by the Quarterly WorkPlan Review), or (ii) Cornell has failed to provide any of the Deliverables or Services in accordance with the requisite timing stated for any Deliverables or Services under the WorkPlan (as updated by the Quarterly WorkPlan Review), or (iii) is not providing Deliverables or Services of the requisite quality, quantity or technical specifications as is set forth in the WorkPlan for the Deliverables or Services (as updated by the Quarterly WorkPlan Review), then, in either case of (i), (ii) or (iii), Annapurna shall have no obligation to make any payments on account of any such specific Deliverables or Services that materially fail to meet any of such parameters Under all circumstances Annapurna shall be obligated to discuss in good faith with Cornell details of such problems to facilitate resolution.

 

If paying for travel/expenses: Annapurna will reimburse Cornell for all reasonable travel and other expenses incurred by Cornell in rendering the Services, provided that such expenses are agreed upon in writing in advance (with such consent not to be unreasonably withheld) , and are confirmed by appropriate written expense statements and other supporting documentation.

All invoices will be sent to:

Annapurna Therapeutics, SAS

183 Avenue de Choisy

Paris, France 75013

Attn: Amber Salzman

and shall reference Schedule D.

Annapurna will remit payment within thirty (30) days of Annapurna’s receipt of invoice to the following address:

 

			
	
Payable To:
	
 
	
Weill Medical College of Cornell University

	
Tax ID #:
	
 
	
_13-1623978_

	
Address:
	
 
	
1305 York Avenue, 13th Floor, New York, NY 10021

	
Attention:
	
 
	
Dr. Ronald G. Crystal

	
Phone:
	
 
	
(646) 962-4363

4. Completion.

The Parties agree that the estimated time for completion of [***] under the WorkPlan for the performance of the Services is [***] from the Schedule Effective Date, which, subject to the terms and conditions of this Schedule D and of the Agreement, shall run for a term [***] for a total of [***] as described under the terms and conditions herein.

5. Counterparts and Signatures.

This Schedule may be executed in one or more counterparts, each of which will be deemed an original, and all of which together will be deemed to be one and the same instrument. Signatures to this Schedule transmitted by facsimile transmission, by electronic mail in portable document format (.pdf) form, or by any other electronic means intended to preserve the originals graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document bearing the original signatures, and shall be deemed original signatures by both Parties.

*     *     * 

 

The Parties to this Schedule hereby indicate their acceptance of the terms of this Schedule by the signatures set forth below. Each individual signing on behalf of a corporate entity hereby personally represents and warrants his or her legal authority to legally bind that entity.

 

	
Annapurna Therapeutics, SAS

	
 
	
 

	
By:
	
 

	
 
	
Name:
	
Amber Salzman, PhD

	
 
	
Title:
	
CEO

 

	
Cornell University, for and on behalf of its Joan and Sаnford I. Weill Medical College

	
 
	
 

	
By:
	
 

	
 
	
Name:
	
Amy A. Lane, MBA

	
 
	
Title:
	
Assistant Director, Office of

Sponsored Research

Administration

 

	
Read and Acknowledged:

	
 
	
 

	
By:
	
 

	
 
	
Name:
	
Dr. Ronald G. Crystal

 

 

 

 

 

[***] THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

 

 

 

 

 

 

[***] THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.advm-ex104_296.htm

Exhibit 10.4

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

LICENSE AGREEMENT

BETWEEN

ANNAPURNA THERAPEUTICS LIMITED

AND

CORNELL UNIVERSITY

FOR

[***]

CTL CONTRACT NO. C2016-11-10546

 

 

 

 

 

Exhibit 10.4

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

TABLE OF CONTENTS

 

	
ARTICLE 1.  DEFINITIONS
	
 
	
1

	
ARTICLE 2.  GRANTS
	
 
	
4

	
ARTICLE 3.  CONSIDERATION
	
 
	
5

	
ARTICLE 4.  REPORTS, RECORDS AND PAYMENTS
	
 
	
9

	
ARTICLE 5.  INTELLECTUAL PROPERTY MATTERS
	
 
	
12

	
ARTICLE 6.  GOVERNMENTAL MATTERS
	
 
	
13

	
ARTICLE 7.  TERMINATION OF THE AGREEMENT
	
 
	
13

	
ARTICLE 8.  LIMITED WARRANTY AND INDEMNIFICATION
	
 
	
14

	
ARTICLE 9.  USE OF NAMES AND TRADEMARKS
	
 
	
16

	
ARTICLE 10.  MISCELLANEOUS PROVISIONS
	
 
	
17

	
Appendix A: Original Material
	
 
	
22

	
Appendix B: Convertible Note
	
 
	
23

	
Appendix C: Development Report
	
 
	
30

	
Appendix D: Commercialization Report
	
 
	
34

	
Appendix E: Business Plan
	
 
	
37

 

 

 

 

 

 

LICENSE AGREEMENT

This agreement ("Agreement") is made by and between Annapurna Therapeutics Limited, an Irish corporation having an address at 9 Upper Pembroke Street, Dublin 2 ("LICENSEE") and Cornell University (“Cornell”) as represented by its Center for Technology Licensing ("CTL") at Cornell University at 395 Pine Tree Road, Ithaca, NY 14850.

This Agreement is effective on the December 15, 2015 (“Effective Date”).

RECITALS

WHEREAS, the inventions disclosed in [***] ("Invention") were made in the course of research at Cornell by Dr. Ronald Crystal and his associates (hereinafter and collectively, the "Inventors") and associated Technology (as defined herein);

WHEREAS, the Inventors are employees of Cornell, and they are obligated to assign all of their right, title and interest in the Invention to Cornell and have done so;

WHEREAS, CTL is the officially authorized unit at Cornell to manage Invention and to grant rights subsisting therein for Cornell;

WHEREAS, Cornell desires that the Invention be developed and utilized to the fullest possible extent so that its benefits can be enjoyed by the general public;

WHEREAS, LICENSEE has provided CTL a brief business plan, a copy of which is attached herein as Appendix E, for the purpose of obtaining certain rights from Cornell for the commercialization of the Inventions under this Agreement; and

WHEREAS, LICENSEE understands that Cornell may publish or otherwise disseminate information concerning the Invention and Technology (as defined below) at any time and that LICENSEE is paying consideration hereunder for its early access to the Invention, the associated intellectual property rights and Technology, not continued secrecy therein.

NOW, THEREFORE, the parties agree:

ARTICLE 1.  DEFINITIONS

The terms, as defined herein, shall have the same meanings in both their singular and plural forms.

	
1.1
	
"Affiliate" means any corporation or other business entity in which LICENSEE owns or controls, directly or indirectly, at least twenty percent (20%) of the outstanding stock, units of membership, or other voting rights entitled to elect directors or officers, or in which LICENSEE is owned or controlled directly or indirectly by at least twenty percent 

 

1

 

		
(20%) of the outstanding stock, units of membership, or other voting rights entitled to elect directors or officers; but in any country where the local law does not permit foreign equity participation of at least twenty percent (20%), then an "Affiliate" includes any company in which LICENSEE owns or controls or is owned or controlled by, directly or indirectly, the maximum percentage of outstanding stock, units of membership, or voting rights permitted by local law.  

	
1.2
	
"Sublicense" means an agreement into which LICENSEE enters with a third party that is not an Affiliate for the purpose of (i) granting certain rights; (ii) granting an option to certain rights; or (iii) forbearing the exercise of any rights, granted to LICENSEE under this Agreement after Effective Date.  For clarity, a “Sublicense” will not include any such agreement entered into with LICENEE’s successor, assignee or transferee in the context of or as a result of any merger, acquisition, sale or change of control of LICENSEE.  "Sublicensee" means a third party with whom LICENSEE enters into a Sublicense.

	
1.3
	
"Field" means all fields.

	
1.4
	
"Territory" means [***].

	
1.5
	
"Term" means, on a country-by-country and Licensed Product-by-Licensed Product basis, the period of time beginning on Effective Date and ending on the later of (i) the date of the twelfth (12th) anniversary of the first commercial sale of the applicable Licensed Product ; or (ii) the expiration date for orphan drug exclusivity or for other regulatory-based marketing exclusivity rights obtained by LICENSEE or by any Sublicensee expire for the applicable Licensed Product in that country; or (iii) the introduction of any generic, biosimilar or other directly competing product. 

	
1.6
	
[this paragraph left intentionally blank] 

	
1.7
	
"Technology" means Materials and technical information and know-how relating to the IND and/or the Invention that Cornell or the Inventor provide or disclose to LICENSEE prior to the Effective Date or during the Term of this Agreement for the purpose of researching, developing or manufacturing Licensed Products, and the first-mover advantage imparted to LICENSEE by those provisions and by the assignment and transfer of the IND to LICENSEE as provided in Paragraph 5.4(d) hereof.  

	
1.8
	
[This paragraph left intentionally blank.]  

	
1.9
	
"Licensed Method" means any method that uses Technology, the use of which would constitute, but for the license granted to LICENSEE under this Agreement, misappropriation of Technology.

	
1.10
	
"Licensed Product" means any service, composition or product that uses Technology, or that is produced or enabled by Licensed Method, or the manufacture, use, sale, offer for sale, or importation of which would constitute, but for the license granted to LICENSEE under this Agreement, misappropriation of Technology. 

 

2

 

	
1.11
	
"Net Sales" means the total of the gross invoice prices of Licensed Products sold or leased by LICENSEE, Sublicensee, Affiliate, or any combination thereof, less the sum of the following actual and customary deductions where applicable and separately listed:  cash, trade, or quantity discounts; sales, use, tariff, import/export duties or other excise taxes imposed on particular sales (except for value-added and income taxes imposed on the sales of Licensed Product in foreign countries); transportation charges; or credits to customers because of rejections or returns. For purposes of calculating Net Sales, transfers to a Sublicensee or an Affiliate of Licensed Product under this Agreement for (i) end use (but not resale) by the Sublicensee or Affiliate shall be treated as sales by LICENSEE at the invoiced price of LICENSEE in an arm-length transaction, or (ii) resale by a Sublicensee or an Affiliate shall be treated as sales at the list price of the Sublicensee or Affiliate, but in no event shall both (i) and (ii) be considered in cumulative fashion.  In addition any “compassionate use” sales or other similar private benefit sales of Licensed Product permitted by law in the relevant country before commercial launch in such country shall not be deemed to be included within Net Sales hereunder for any such Licensed Product that is transferred or sold at or below the cost of goods for producing such Licensed Product and without any profit on the basis of such Net Sales with the proviso that should LICENSEE include overhead or other non-customary costs in such compassionate use sales then such overhead or other non-customary costs will be treated as “Net Sales” and will be subject to the earned royalty provision in Paragraph 3.1(d). 

	
1.12
	
[This paragraph left intentionally blank.]

	
1.13
	
"Materials" shall mean Original Material, Progeny, and Unmodified Derivatives, and Modifications as defined in this Paragraph 1.13.  Materials shall not include any other substances created by the LICENSEE through the use of the Materials which are not Modifications, Progeny, or Unmodified Derivatives. 

(a)  "Original Material" shall mean the material described in Appendix A, as provided to LICENSEE by Inventor under this Agreement.

(b)  "Progeny" shall mean unmodified descendant from the Original Material, such as virus from virus, cell from cell, or organism from organism. 

(c)  "Unmodified Derivatives" shall mean substances created by or at the behest of LICENSEE, a Sublicensee, or an Affiliate, which constitute an unmodified functional subunit or product expressed by the Original Material or its Progeny. Some examples include: subclones of unmodified cell lines, purified or fractionated subsets of the Original Material or Progeny, proteins expressed by DNA/RNA, monoclonal antibodies secreted by a hybridoma cell line, or purified proteins expressed or secreted by a cell line, or cells or other material extracted from a model organism.

 

3

 

(d)  "Modifications" shall mean substances created by or at the behest of LICENSEE, a Sublicensee, or an Affiliate which contain or incorporate, in whole or in part, the Original Material, Progeny, and/or Unmodified Derivatives.

	
1.14
	
"IND" Shall mean the Investigational New Drug Application No [***].   

	
1.15
	
“Major Market Region" shall mean any of the following countries or regions: [***].

ARTICLE 2.  GRANTS

2.1License.  Subject to the limitations set forth in this Agreement, Cornell hereby grants to LICENSEE, and LICENSEE hereby accepts, a license to use Technology to make and have made, to use and have used, to sell and have sold, to offer for sale, and to import and have imported Licensed Products and to practice Licensed Methods, in the Field within the Territory and during the Term.

The license granted herein is exclusive for Technology.

Upon the expiration of the Term, the license granted herein shall be considered a fully-paid, perpetual and royalty-free license.

LICENSEE may extend the rights granted above to its Affiliates provided that LICENSEE shall first provide to Cornell a written assurance from each of its Affiliates to comply with all applicable terms, conditions and obligations to Cornell.

2.2Sublicense.  

(a)  The license granted in Paragraph 2.1 includes the right of LICENSEE to grant Sublicenses (including through multiple tiers) to third parties during the Term. 

(b)  With respect to Sublicense granted pursuant to Paragraph 2.2(a), LICENSEE shall:

(i)  not receive, or agree to receive, anything of value in lieu of cash as consideration from a third party under a Sublicense granted pursuant to Paragraph 2.2(a) without the prior written consent of  Cornell, such consent not to be unreasonably refused; provided, however, that in the event that, prior to the execution of any such Sublicense, LICENSEE and Cornell discuss and agree in good faith on the treatment of any such non-cash consideration and how to apply an appropriate percentage of such non-cash consideration or the revenue resulting to LICENSEE attributable to any such non-cash consideration in percentages equal to the percentages as set forth below for Sublicense fees, then the requirement to obtain the consent of Cornell under this subsection 2.2b(i) shall not apply;  

(ii)  to the extent applicable, include all of the rights of and obligations due to Cornell (and, if applicable, the Sponsor's Rights) and contained in this Agreement;

 

4

 

(iii)  promptly provide Cornell with a copy of each Sublicense issued and any amendment made to any Sublicense; and

(iv)  collect and guarantee payment of all payments due, directly or indirectly, to Cornell from Sublicensees and summarize and deliver all reports due, directly or indirectly, to Cornell from Sublicensees.

(c)  Unless a Sublicense receives written consent from Cornell prior to its issuance by LICENSEE to the Sublicensee and becomes effective, upon termination of this Agreement for any reason, Cornell, at its sole discretion, shall determine whether LICENSEE shall cancel or assign to Cornell said Sublicense.

2.3Reservation of Rights.  Cornell reserves the right to: 

(a)  use the Invention and Technology solely for its own educational and academic research purposes, but not in the context of any third-party commercially-sponsored research or with or for the benefit of any third-party for-profit or third-party commercial entity;

(b)  publish or otherwise disseminate any information about the Invention and Technology at any time; and

(c)  allow other nonprofit academic institutions to use the Invention and Technology solely for their own educational and academic research purposes, provided, however, that  Cornell shall not grant affirmative rights to such nonprofit institutions to use any Invention or Technology for use in the context of any commercially-sponsored research or with or for the benefit of any for-profit or commercial entity.

ARTICLE 3.  CONSIDERATION

3.1Fees and Royalties.  The parties hereto understand that the fees and royalties payable by LICENSEE to Cornell under this Agreement are partial consideration for the license granted herein to LICENSEE under the Technology and for the assignment and transfer of ownership  and sponsorship of the IND to LICENSEE pursuant to the terms and conditions of Section 5.4(d). LICENSEE shall pay Cornell:

(a)  in recognition of LICENSEE being a new start-up business, a license issue fee and an assignment fee to have the IND assigned and transferred in the amount of  [***], of which [***] shall be paid in cash within thirty (30) days of Effective Date, and [***] shall be paid in cash upon the first anniversary of the Effective Date, and the remaining [***] shall be paid in the form of a convertible promissory note attached herein as Appendix B and issued by LICENSEE to Cornell contemporaneously with the execution of this Agreement which shall be convertible into either cash or shares of stock in LICENSEE (at Cornell’s election) upon either the completion of a Series B round of financing by LICENSEE which raises at least at [***] or one year from the Effective Date, whichever shall occur sooner.

 

5

 

(b)  license maintenance fees payable on each anniversary of the Effective Date according to the following schedule; provided however, that LICENSEE's obligation to pay this fee shall end on the date when LICENSEE is commercially selling the first Licensed Product in the first Major Market Region of the Territory, and the license maintenance fee payable shall be pro-rated for the number of months remaining in that license year.

 

		
	
Fee payable to Cornell
	
Date

	
[***]
	
1st - 3rd anniversaries of Effective Date

	
[***]
	
4th anniversary of Effective Date

	
[***]
	
5th anniversary of Effective Date

	
[***]
	
6th anniversary of Effective Date and each subsequent anniversary thereafter, until the date of first commercial sale of a Licensed Product in the first Major Market Region

(c)  milestone payments in the amounts payable according to the following schedule or events:

 

		
	
Amount
	
Date or Event

	
[***]
	
Completion of a Phase II clinical trial

	
[***]
	
Completion of a Phase III clinical trial

	
[***]
	
Marketing approval from the US FDA for first indication

	
[***]
	
Marketing approval in each non-US Major Market Region for first indication

	
[***]
	
Marketing approval from the US FDA for additional indications

	
[***]
	
Marketing approval in each non-US Major Market Region for each additional indication

 

(d)  an earned royalty

(i)  of [***] on Net Sales of Licensed Products by LICENSEE and/or its Affiliate(s) from the date of first commercial sale of the applicable Licensed Product in the country of sale until the expiration of the Term, which is not subject to any anti-stacking relief for royalty payments owed by LICENSEE to a third party.

(ii)  For clarity, in the event that a royalty obligation would apply to a Licensed Product under this Agreement as well as under any other license agreement entered into between LICENSEE and Cornell or any of its Affiliates, then only one royalty rate shall apply for such Licensed Product and the royalty rates shall not be stacked or otherwise considered cumulative or additive upon any such Licensed Product, and only the highest royalty rate applicable under any such agreement between the Parties shall apply to Net Sales of such Licensed Product.  

 

6

 

(e)  a percentage of all Sublicense fees received by LICENSEE from its Sublicensees that are not earned royalties according to the following schedule;

 

		
	
Percentage of the Sublicense fees to be shared with and payable to Cornell
	
Events achieved by LICENSEE related to the timing of the issuance of each Sublicense by LICENSEE

 

	
[***]
	
After filing an IND but before completion of the first human study

	
[***]
	
After completion of first human study but prior to submitting a BLA for approval in a Major Market

 

(f)  on each and every Sublicense royalty payment received by LICENSEE from its Sublicensees on sales of Licensed Product by Sublicensee, the higher of (i) the relevant percentage described in Paragraph 3.1(e) of the royalties received by LICENSEE; or the (ii) royalties based on the royalty rate in Paragraph  3.1(d) as applied to Net Sales of Sublicensee;  provided, however that, for clarity, in the event that a Sublicense fee or Sublicense royalty would apply to a Licensed Product under this Agreement as well as under any other license agreement entered into between LICENSEE and Cornell or any of its Affiliates, then only one Sublicense fee or Sublicense royalty rate shall apply for such Licensed Product and the Sublicense fees or Sublicense royalties shall not be stacked or otherwise considered cumulative or additive upon any such Licensed Product, and only the highest Sublicense fee or Sublicense royalty rate applicable under any such agreement between the Parties shall apply to Net Sales of such Licensed Product by any Sublicensee.  

(g)  beginning the calendar year of commercial sales of the first License Product by LICENSEE, its Sublicensee, or an Affiliate and if the total earned royalties paid by LICENSEE under Paragraphs 3.1(d) and (f) to Cornell in any such year cumulatively are less than the amount (“minimum annual royalty”) illustrated below:

 

		
	
Year of Commercial Sale
	
Minimum Annual Royalty

	
First
	
[***]

	
Second
	
[***]

	
Third and each year thereafter 
	
[***]

 

LICENSEE shall pay to Cornell on or before February 28 following the last quarter of such year the difference between amount noted above and the total earned royalty paid by LICENSEE for such year under Paragraphs 3.1(d) and (f); provided, however, that for the year of commercial sales of the first Licensed Product, the amount of minimum annual royalty payable shall be pro-rated for the number of months remaining in that calendar year.

All fees and royalty payments specified in Paragraphs 3.1(a) through 3.1(g) above shall be paid by LICENSEE pursuant to Paragraph 4.3 and shall be delivered by LICENSEE to Cornell as 

 

7

 

noted in Paragraph 10.1. At Cornell’s election, all fees and payments specified in Paragraphs 3.1(b), (c), and (g) shall be adjusted to reflect any increase in the Consumer Price Index as announced by the Bureau of Labor Statistics of the United States Department of Labor.

3.2[paragraph left intentionally blank]

3.3Due Diligence.

(a)  LICENSEE shall, either directly or through its Affiliate(s) or Sublicensee(s):

(i)  use commercially reasonable diligent efforts to proceed with the development, and commercialization of at least one Licensed Product in the Field and in at least one Major Market Region;

(ii)  raise [***] within [***] of the Effective Date and a further [***] within [***] of the Effective Date.

(iii)  raise a total of [***] within [***] of the Effective Date. For clarity, any portion or all of such amount shall be counted toward the [***] total required regardless of whether any of such amounts are obtained from existing investors in LICENSEE as of the Effective Date or from new investors, or whether such amount represents the cash funds existing and available to any successor to LICENSEE in the event of a merger, acquisition, consolidation or other business combination.

(iv)  file an Investigational New Drug Application for a first Licensed Product within [***] of the Effective Date.

(v)  commence human testing of a Licensed Product within [***] of the Effective Date.

(vi)  commence a clinical trial intended to provide safety and efficacy data for a Biologics License Application or its foreign equivalent to the FDA or its foreign equivalent for a Licensed Product within [***] of the Effective Date. 

(vii)  submit a Biologics License Application for a Licensed Product to the United States FDA within [***] of the Effective Date; 

(viii)  submit the equivalent of a Biologics License Application to the equivalent of the  FDA in a Major Market other than the US for a Licensed Product within [***] of the Effective Date;

(ix)  market Licensed Products in each country within the Territory within nine (9)months of receiving regulatory approval to market such Licensed Products in said country;

(x)  reasonably fill the market demand for Licensed Products following commencement of marketing at any time during the term of this Agreement; and

 

8

 

(xi)  obtain and maintain all necessary governmental approvals and permits for the manufacture, use and sale of Licensed Products.

(b)  If LICENSEE fails to perform any of its obligations specified in Paragraphs 3.3(a)(i)-(xi), then Cornell shall issue a Notice of Default to LICENSEE and the Parties shall discuss in good faith the key reasons for any such delay, and where any such delay or failure to meet the goals set forth above is due to any key scientific or technical challenges or complexities, or unexpected development costs, challenges or complexities or safety issues, manufacturing challenges or hurdles, commercial factors, IP issues or any other key aspects of development and commercialization, the Parties shall discuss the matter in good faith and within sixty (60) days of such Notice of Default, LICENSEE shall propose in good faith a modified development plan in order to remedy or overcome any such challenges. If in Cornell’s reasonable judgment, said plan is made in good faith then, Cornell shall accept such modified development plan in good faith; provided, however, that in the event that after LICENSEE initiates such modified development plan, Cornell does not believe that LICENSEE or its Sublicensee is applying its good faith diligent efforts towards the objectives, Cornell shall have the right and option to either terminate this Agreement or change LICENSEE's exclusive license to a nonexclusive license. This right, if exercised by Cornell, supersedes the rights granted in Article 2.

(c)  If at any time during the Term, LICENSEE has not begun a genuine product research and development or business development program for a specific Licensed Product in any country within the Territory and Cornell receives one ore more earnest inquiries to license Technology for the commercialization of said specific Licensed Product in said country, Cornell shall refer such offers to LICENSE. If LICENSEE fails to satisfy the market demand in said country of the specific Licensed Product or fails to grant Sublicenses to the inquirers to satisfy such market demand, Cornell may then exclude said country from the Territory and license such rights to one or more third parties.

ARTICLE 4.  REPORTS, RECORDS AND PAYMENTS

4.1Reports.  

(a)  Development Reports.  Beginning six months after Effective Date and ending on the date of first commercial sale of a Licensed Product in the United States, LICENSEE shall report to Cornell progress covering LICENSEE's (and Affiliate's and Sublicensee's) activities and efforts in the development of rights granted to LICENSEE under this Agreement for the preceding six months. The report shall include, but not be limited to, activities and efforts to develop and test all Licensed Products and obtain governmental approvals necessary for marketing the same.  Such semi-annual reports shall be due within sixty days (60) of the reporting period and shall use the form as provided herein as Appendix C.

 

9

 

(b)  Commercialization Reports.  After the first commercial sale of a Licensed Product anywhere in the world, LICENSEE shall submit to Cornell semi-annual reports on or before each February 28 and August 31 of each year. Each report shall cover LICENSEE's (and each Affiliate's and Sublicensee's) most recently completed calendar half and shall show:

(i)  the gross sales and Net Sales (as defined in Paragraph 1.11) during the most recently completed calendar quarter and the royalties, in US dollars, payable with respect thereto;

(ii)  the number of each type of Licensed Product sold;

(iii)  Sublicense fees and royalties received during the most recently completed calendar half in US dollars, payable with respect thereto;

(iv)  the method used to calculate the royalties; 

(v)  the exchange rates used; 

(vi)  relevant business and corporate development efforts relating to the rights granted in this Agreement.

LICENSEE shall provide the above information using the form as shown in Appendix D and include information on the date of the first commercial sale of each additional Licensed Product or in each additional country.

If no sales of Licensed Products have been made and no Sublicense revenue has been received by LICENSEE during any reporting period, LICENSEE shall so report.

4.2Records & Audits.

(a)  LICENSEE shall keep, and shall require its Affiliates and Sublicensees to keep, accurate and correct records of all Licensed Products manufactured, used, and sold, and Sublicense fees received under this Agreement.  Such records shall be retained by LICENSEE for at least five (5) years following a given reporting period.

(b)  All records shall be available during normal business hours for inspection at the expense of Cornell by Cornell’s Internal Audit Department or by a Certified Public Accountant selected by Cornell and in compliance with the other terms of this Agreement for the sole purpose of verifying reports and payments or other compliance issues. Such inspector shall not disclose to Cornell any information other than information relating to the accuracy of reports and payments made under this Agreement or other compliance issues. In the event that any such inspection shows an under reporting and underpayment in excess of five percent (5%) for any twelve-month (12-month) period, then LICENSEE shall pay the cost of the audit as well as any additional sum that would have been payable to Cornell had the LICENSEE reported correctly, plus an interest charge at a rate of [***] per year. Such interest shall be calculated from the date the correct payment was due to Cornell up to the date when such payment is actually made by 

 

10

 

LICENSEE. For underpayment not in excess of five percent (5%) for any twelve-month (12-month) period, LICENSEE shall pay the difference within thirty (30) days without inspection cost but with interest charge per the provisions of Paragraph 4.3(c).

4.3Payments.

(a)  All fees, reimbursements and royalties due Cornell shall be paid in United States dollars and all checks shall be made payable to "Cornell University", referencing Cornell's taxpayer identification number, 15-0532082, and sent to Cornell according to Paragraph 10.1 (Correspondence). When Licensed Products are sold in currencies other than United States dollars, LICENSEE shall first determine the earned royalty in the currency of the country in which Licensed Products were sold and then convert the amount into equivalent United States funds, using the exchange rate quoted in the Wall Street Journal on the last business day of the applicable reporting period.

(b)  Royalty Payments.

(i)  Royalties shall accrue when Licensed Products are invoiced, or if not invoiced, when delivered to a third party or Affiliate.

(ii)  LICENSEE shall pay earned royalties semi-annually on or before February 28 and August 31 of each calendar year. Each such payment shall be for earned royalties accrued within LICENSEE's most recently completed calendar half.

(iii)  Royalties earned on sales occurring or under Sublicense granted pursuant to this Agreement in any country outside the United States shall not be reduced by LICENSEE for any taxes, fees, or other charges imposed by the government of such country on the payment of royalty income, except that all payments made by LICENSEE in fulfillment of Cornell's tax liability in any particular country may be credited against earned royalties or fees due Cornell for that country. LICENSEE shall pay all bank charges resulting from the transfer of such royalty payments. 

(iv)  If at any time legal restrictions prevent the prompt remittance of part or all royalties by LICENSEE with respect to any country where a Licensed Product is sold or a Sublicense is granted pursuant to this Agreement, LICENSEE shall convert the amount owed to Cornell into US currency and shall pay Cornell directly from its US sources of fund for as long as the legal restrictions apply.

(c)  Late Payments.  In the event royalty, reimbursement and/or fee payments are not received by Cornell when due, LICENSEE shall pay to Cornell interest charges at a rate of [***] per year. Such interest shall be calculated from the date payment was due until actually received by Cornell.

 

11

 

ARTICLE 5.  INTELLECTUAL PROPERTY MATTERS

5.1[This paragraph left intentionally blank.]  

5.2[This paragraph left intentionally blank.]  

5.3[This paragraph left intentionally blank.]  

5.4Ownership of Technology

(a)  Cornell retains ownership of Technology, with the exception of the IND, which shall be assigned to LICENSEE and LICENSEE shall be the sole owner thereof, in accordance with the terms and conditions of Section 5.4(d).

(b)  LICENSEE shall make no use of Technology outside the scope of this Agreement and the licenses granted hereunder.  Any such use shall be a material breach of this Agreement. 

(c)  LICENSEE shall notify Cornell in writing promptly after generating any Modification and such notice shall include a reasonably complete description of each Modification and its use.   Upon written request from Cornell, LICENSEE shall promptly provide Cornell or Inventors with each Modification, in an amount and form reasonably usable by Inventors under Paragraph 2.3.

(d)  Subject to LICENSEE raising no less than [***] in financing, the achievement of such event LICENSEE will confirm by providing financial statements to Cornell, within thirty (30) days from the date of such event, Cornell and Inventor each agree to assign and does hereby assign, conditional upon the achievement of such event, all of their right, title and interest in and to the IND to LICENSEE as the sole owner thereof, and each of Cornell and Inventor will execute the assignment and will transfer the sponsorship of the IND to LICENSEE upon the achievement of such event. Cornell and Inventor shall each cooperate with LICENSEE to execute all documents and take all such actions as are reasonably necessary to perfect the assignment and transfer of ownership of the IND to and in the name of LICENSEE as the sole owner thereof, and to have sponsorship of the IND transferred and assigned to LICENSEE throughout the Territory.  

 

12

 

ARTICLE 6.  GOVERNMENTAL MATTERS

6.1Governmental Approval or Registration.  If this Agreement or any associated transaction is required by the law of any nation to be either approved or registered with any governmental agency, LICENSEE shall assume all legal obligations to do so. LICENSEE shall notify Cornell if it becomes aware that this Agreement is subject to a United States or foreign government reporting or approval requirement.  LICENSEE shall make all necessary filings and pay all costs including fees, penalties, and all other out-of-pocket costs associated with such reporting or approval process.

6.2Export Control Laws.  LICENSEE shall observe all applicable United States and foreign laws with respect to the transfer of Licensed Products and related technical data to foreign countries, including, without limitation, the International Traffic in Arms Regulations and the Export Administration Regulations.

ARTICLE 7.  TERMINATION OF THE AGREEMENT

7.1Termination by Cornell.  

(a)  If LICENSEE fails to perform or violates any term of this Agreement, then Cornell may give written notice of default ("Notice of Default") to LICENSEE. If LICENSEE fails to cure the default within forty five (45) days of the Notice of Default, Cornell may terminate this Agreement and the license granted herein by a second written notice ("Notice of Termination") to LICENSEE. If a Notice of Termination is sent to LICENSEE, this Agreement shall automatically terminate on the effective date of that notice. Termination shall not relieve LICENSEE of its obligation to pay any fees owed at the time of termination and shall not impair any accrued right of Cornell.  Upon termination, LICENSEE shall immediately transfer the IND back to Cornell.

(b)  [This paragraph left intentionally blank.]  

7.2Termination by LICENSEE.  

(a)  LICENSEE shall have the right at any time and for any reason, or merely for convenience, to terminate this Agreement upon a ninety (90) day written notice to Cornell. Said notice shall state LICENSEE’s reason for terminating this Agreement.

(b)  Any termination under Paragraph 7.2(a) shall not relieve LICENSEE of any obligation or liability accrued under this Agreement prior to termination or rescind any payment made to Cornell or action by LICENSEE prior to the time termination becomes effective. Termination shall not affect in any manner any rights of Cornell arising under this Agreement prior to termination.

 

13

 

7.3Survival on Termination.  The following Paragraphs and Articles shall survive the termination of this Agreement: 

	
 
	
(a)
	
Article 4 (REPORTS, RECORDS AND PAYMENTS);

	
 
	
(b)
	
Paragraph 7.4 (Disposition of Licensed Products on Hand);

	
 
	
(c)
	
Paragraph 8.2 (Indemnification);

	
 
	
(d)
	
Article 9 (USE OF NAMES AND TRADEMARKS);

	
 
	
(e)
	
Paragraph 10.2 hereof (Secrecy); and

	
 
	
(f)
	
Paragraph 10.5 (Failure to Perform).

7.4Disposition of Licensed Products on Hand.  Upon termination of this Agreement, LICENSEE may dispose of all previously made or partially made Licensed Product within a period of one hundred and twenty (120) days of the effective date of such termination provided that the sale of such Licensed Product by LICENSEE, its Sublicensees, or Affiliates shall be subject to the terms of this Agreement, including but not limited to the rendering of reports and payment of royalties required under this Agreement.  At the end of such period, LICENSEE shall no longer have rights to use Technology, and LICENSEE will promptly transfer sponsorship of the IND to Cornell.

ARTICLE 8.  LIMITED WARRANTY AND INDEMNIFICATION

8.1Limited Warranty.

(a)  Cornell warrants that, without conducting any investigation or any inquiry, it has the lawful right to grant this license, and that, as of the Effective Date, its Center for Technology Licensing, has not received written notice from any third party of any pending or threatened legal action or suit asserting that the use of the Technology as contemplated hereunder for the development and commercialization of any Licensed Product would infringe or misappropriate the patent rights or intellectual property rights of any third party.

(b)  The license granted herein is provided “AS IS” and without WARRANTY OF MERCHANTABILITY or WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE or any other warranty, express or implied. Other than as expressly stated in paragraph (a) above, Cornell makes no representation or warranty that the Licensed Product, Licensed Method or the use of Technology will not infringe any other patent or other proprietary rights.

(c)  In no event shall Cornell be liable for any incidental, special or consequential damages resulting from exercise of the license granted herein or the use of the Invention, Licensed Product, Licensed Method or Technology.

 

14

 

(d)  Nothing in this Agreement shall be construed as:

(i)  a warranty or representation that anything made, used, sold or otherwise disposed of under any license granted in this Agreement is or shall be free from infringement of patents of third parties;

(ii)  conferring by implication, estoppel or otherwise any license or rights under any patents of Cornell Research Foundation, Inc. or Cornell other than as defined in this Agreement; or 

(iii)  an obligation to furnish any know-how not provided in Technology; or

(iv)  an obligation to update Technology. 

8.2Indemnification.

(a)  LICENSEE shall indemnify, hold harmless and defend Cornell, its officers, employees, and agents; the sponsors of the research that led to the Invention; and the Inventors of the Technology and their employers (the “Cornell Indemnitees”) against any and all claims, suits, losses, damage, costs, fees, and expenses (“Claims”) resulting from or arising out of exercise of this license by LICENSEE or any of its Affiliates or any Sublicense by any Sublicensee. This indemnification shall include, but not be limited to, any product liability Claims, but shall expressly exclude any Claims to the extent attributable to (i) the willful misconduct or gross negligence of any of the Cornell Indemnitees, or (ii) the breach by Cornell or any of the Cornell Indemnitees of any provision of this Agreement or of any representation, warranty or covenant made by Cornell hereunder.

(b)  LICENSEE, at its sole cost and expense, shall insure its activities in connection with the work under this Agreement and obtain, keep in force and maintain insurance or an equivalent program of self insurance as follows:

(i)  Prior to the first “in human” test of a Licensed Product:  comprehensive or commercial general liability insurance (contractual liability included) with limits of at least: (A) each occurrence, one million dollars (US$1,000,000); (B) products/completed operations aggregate, five million dollars (US$5,000,000); (C) personal and advertising injury, one million dollars (US$1,000,000); and (D) general aggregate (commercial form only), five million dollars (US$5,000,000); and

(ii)  Commencing upon the first “in human” test of a Licensed Product:  comprehensive or commercial general liability insurance (contractual liability included) with limits of at least: (A) each occurrence, five million dollars (US$5,000,000); (B) products/completed operations aggregate, ten million dollars (US$10,000,000); (C) personal and advertising injury, five million dollars (US$5,000,000); and (D) general aggregate (commercial form only), ten million dollars (US$10,000,000); and

 

15

 

(ii)  the coverage and limits referred to above shall not in any way limit the liability of LICENSEE.

(c)  LICENSEE shall, within ninety (90) days of Effective Date and annually thereafter on anniversary of Effective Date for the life of the Agreement, furnish Cornell with certificates of insurance showing compliance with all requirements. Such certificates shall: (i) provide for seven (7) day advance written notice to Cornell of any modification; (ii) indicate that Cornell has been endorsed as an additionally insured party under the coverage referred to above; and (iii) include a provision that the coverage shall be primary and shall not participate with nor shall be excess over any valid and collectable insurance or program of self-insurance carried or maintained by Cornell.

(d)  Cornell shall notify LICENSEE in writing of any claim or suit brought against Cornell in respect of which Cornell intends to invoke the provisions of this Article. LICENSEE shall keep Cornell informed on a current basis of its defense of any claims under this Article.

ARTICLE 9.  USE OF NAMES AND TRADEMARKS

9.1Nothing contained in this Agreement confers any right to use in advertising, publicity, or other promotional activities any name, trade name, trademark, or other designation of either party hereto (including contraction, abbreviation or simulation of any of the foregoing). Unless required by law, the use by LICENSEE of the name, "Cornell University" is prohibited, without the express written consent of Cornell.

9.2Cornell may disclose to the Inventors the terms and conditions of this Agreement upon their request. If such disclosure is made, Cornell shall request the Inventors not disclose such terms and conditions to others, and all such Inventors shall be required to maintain such information as Confidential Information, subject to the obligations of confidentiality and non-use set forth in Section 10.2.  

9.3Cornell may acknowledge the existence of this Agreement and the extent of the grant in Article 2 to third parties, but Cornell shall not disclose the financial terms of this Agreement to third parties, except where Cornell is required by law or the order of a court of competent jurisdiction to do so.

9.4LICENSEE may acknowledge or make press releases regarding the existence of this Agreement and the extent of the grant in Article 2 but LICENSEE shall not disclose the financial terms of this Agreement, except where LICENSEE is required by law or by the order of a court of competent jurisdiction to do so, or as is reasonably necessary to be disclosed to any of LICENSEEs existing or bona fide potential investors, acquirers, or collaborators. To the extent LICENSEE makes any forward-looking statement in its press releases mentioning Cornell, LICENSEE shall receive prior consent of Cornell which shall not be unreasonably withheld.

 

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ARTICLE 10.  MISCELLANEOUS PROVISIONS

10.1Correspondence.  Any notice, invoice or payment required to be given to either party under this Agreement shall be deemed to have been properly given and effective: 

(a)on the date of delivery if delivered in person;

(b)on the date of successful transmission if sent by facsimile,

(c)one (1) day after the successful transmission in pdf file format if sent by electronic mail using the Internet; or

(d)five (5) days after mailing if mailed by first-class or certified mail, postage paid, to the respective addresses given below, or to such other address as is designated by written notice given to the other party.

If sent to LICENSEE:

Reports and Notices Contact:

Annapurna Therapeutics

3711 Market Street, Suite 800

Philadelphia, PA 19104

Attention: Amber Salzman

Tel: [***]

email: amber@annapurnatx.com

Accounts Payable Contact:

Annapurna Therapeutics

3711 Market Street, Suite 800

Philadelphia, PA 19104

Attention: Amber Salzman

Tel: [***]

email: amber@annapurnatx.com

Intellectual Property Contact:

Annapurna Therapeutics

3711 Market Street, Suite 800

Philadelphia, PA 19104

Attention: Amber Salzman

Tel: [***]

email: amber@annapurnatx.com 

 

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If sent to Cornell:

For all correspondence except payments -

Center for Technology Licensing at Cornell University

Attention: Executive Director

395 Pine Tree Road, Suite 310

Ithaca, NY 14850

FAX:607-254-5454

TEL:607-254-5236

EMAIL: ctl-contracts@cornell.edu

For all payments -

If sent by mail:

Center for Technology Licensing at Cornell University

PO Box 6899

Ithaca, NY 14851-6899

If remitted by electronic payments via ACH or Fed Wire: 

 

		
	
Receiving bank name:
	
[***]

	
Bank account no.:
	
[***]

	
Bank routing (ABA) no.:

SWIFT code: 
	
[***]

[***]

	
Bank account name:
	
[***]

	
Bank ACH format code:
	
[***]

	
Bank address:
	
[***]

	
Additional information:
	
[***]

[***]

 

An email or FAX copy of the wire transfer transaction receipt shall be sent to Director for Finance and Operations at ctl-contracts@cornell.edu or 607-254-5454, respectively. LICENSEE is responsible for all bank charges of wire transfer of funds for payments. The bank charges shall not be deducted from total amount due to Cornell.

 

18

 

10.2Secrecy.  

(a)  "Confidential Information" shall mean information, including Technology, relating to the Invention and disclosed by Cornell to LICENSEE during the term of this Agreement, which if disclosed in writing shall be marked "Confidential", or if first disclosed otherwise, shall within thirty (30) days of such disclosure be reduced to writing by Cornell and sent to LICENSEE:

(b)  Licensee shall:

(i)  use the Confidential Information for the sole purpose of performing under the terms of this Agreement;

(ii)  safeguard Confidential Information against disclosure to others with the same degree of care as it exercises with its own data of a similar nature;

(iii)  not disclose Confidential Information to others (except to its employees, agents or consultants who are bound to LICENSEE by a like obligation of confidentiality) without the express written permission of Cornell, except that LICENSEE shall not be prevented from using or disclosing any of the Confidential Information that: 

	
 
	
(A)
	
LICENSEE can demonstrate by written records was previously known to it; 

	
 
	
(B)
	
is now, or becomes in the future, public knowledge other than through acts or omissions of LICENSEE; 

	
 
	
(C)
	
is lawfully obtained by LICENSEE from sources independent of Cornell; or

	
 
	
(D)
	
is required to be disclosed by law or a court of competent jurisdiction; and

(c)  The secrecy obligations of LICENSEE with respect to Confidential Information shall continue for a period ending five (5) years from the termination date of this Agreement.

10.3Assignability.  This Agreement may be assigned by Cornell, but is personal to LICENSEE and assignable by LICENSEE only with the written consent of Cornell, such consent not to be unreasonably withheld; provided, however, that LICENSEE shall, subject to an assignment fee payment of [***] paid in advance of the assignment date by LICENSEE to Cornell, have the right to assign this Agreement and any of its obligations hereunder, without the consent of Cornell, to any of its Affiliates or to any successor or transferee in connection with a merger, acquisition, consolidation or other business combination or sale or other disposition of all or substantially all of LICENSEE’s business or assets relating to the subject matter hereof so long as such of its Affiliates, or any successor or transferee do not have any of the qualities or statuses set forth in the following sentence and further provided that LICENSEE is in good standing with respect to this Agreement.  As illustrative examples, withholding of consent by 

 

19

 

Cornell shall be considered reasonable for a proposed assignment by LICENSEE to a third party which does not have the necessary resources to commercially develop the Licensed Product, which is in active litigation, arbitration proceedings or other contractual dispute with Cornell at the time of assignment, which is associated with or is controlled by one or more organizations known to be affiliated with countries that are considered by the U.S. government as rogue, which is considered as a business that does not seek to actively make technology available to the public in commerce, which is engaged in “patent troll” activities, or whose association with Cornell will materially negatively impact Cornell’s reputation as an academic institution.  In all cases of permitted assignment the assignee must have agreed in writing to assume and comply with LICENSEE’s obligations (or Cornell’s obligations if Cornell is assigning this Agreement) under, and to be bound by, this Agreement.  

10.4No Waiver.  No waiver by either party of any breach or default of any covenant or agreement set forth in this Agreement shall be deemed a waiver as to any subsequent and/or similar breach or default.

10.5Failure to Perform.  In the event of a failure of performance due under this Agreement and if it becomes necessary for either party to undertake legal action against the other on account thereof, then the prevailing party shall be entitled to reasonable attorney's fees in addition to costs and necessary disbursements.

10.6Governing Laws.  THIS AGREEMENT SHALL BE INTERPRETED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

10.7Force Majeure.  A party to this Agreement may be excused from any performance required herein if such performance is rendered impossible or unfeasible due to any catastrophe or other major event beyond its reasonable control, including, without limitation, war, riot, and insurrection; laws, proclamations, edicts, ordinances, or regulations; strikes, lockouts, or other serious labor disputes; and floods, fires, explosions, or other natural disasters.  When such events have abated, the non-performing party's obligations herein shall resume.

10.8Headings.  The headings of the several sections are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement.

10.9Entire Agreement.  This Agreement embodies the entire understanding of the parties and supersedes all previous communications, representations or understandings, either oral or written, between the parties relating to the subject matter hereof.

10.10Amendments.  No amendment or modification of this Agreement shall be valid or binding on the parties unless made in writing and signed on behalf of each party.

 

20

 

10.11Severability.  In the event that any of the provisions contained in this Agreement is held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Agreement, and this Agreement shall be construed as if the invalid, illegal, or unenforceable provisions had never been contained in it. 

IN WITNESS WHEREOF, both Cornell and LICENSEE have executed this Agreement, in duplicate originals, by their respective and duly authorized officers on the day and year written.

 

		
	
ANNAPURNA THERAPEUTICS LIMITED
	
CORNELL UNIVERSITY

	
 
	
 

	
By: ________________________
	
By: ________________________

	
(Signature of an authorized officer)
	
(Signature of an authorized officer)

	
 

Name: Amber Salzman, PhD
	
 

Name: Brian J. Kelly, PhD

	
Title:   CEO
	
Title:  Director, Technology Licensing

	
 

Date:________________________
	
 

Date:_________________________

 

 

21

 

Appendix A: Original Material

[***]

 

 

 

22

 

Appendix B: Convertible Note

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.  THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED OR UNLESS SOLD PURSUANT TO RULE 144 OF SUCH ACT.

Annapurna Therapeutics Limited

CONVERTIBLE PROMISSORY NOTE

[***]

December 15, 2015

Annapurna Therapeutics Limited, a registered business in Ireland, (the "Company"), the principal office of which is located at 9 Upper Pembroke Street, Dublin 2 for value received hereby and/or as partial consideration of an intellectual property license (or an amendment to an intellectual property license) entered into by and between the parties on December 15, 2015 (the "Agreement:"), promises to pay, at the time and in the manner set forth below, with interest at the rate set forth below, to the order of Cornell University or its registered assigns (the "Holder"), the principal sum of [***]  plus interest or at the election of the Holder, the equivalent value in Stock (as later defined).

The following is a statement of the obligations of the Company and the rights of the Holder of this Note and the conditions to which this Note is subject, and to which the Holder hereof, by the acceptance of this Note, and to which the Company, by the issuance of this Note, mutually agree:

i)Principal and Interest.  Interest will accrue on the principal amount of this Note at the rate of eight percent (8%) per annum and compounded annually. The principal balance and all accrued interest thereon are due and payable to Holder in Company's stock or in cash on the Maturity Date and at the sole discretion of the Holder. Maturity Date shall be the sooner of:

(a)The date that is twelve (12) months from the date of this Note; or

(b)when Annapurna Therapeutics SAS, a French société par actions simplifiée (RCS Paris No. 799 863 873) (the “Parent”) receives a bona fide equity investment offers from one or more third parties that, cumulatively with all other equity investments received by the Parent after the date hereof, equals no less than [***] in one or more arm-length transactions. An arm-length transaction shall mean the sale of stock by company to one or more shareholders who, prior to the sale of the Parent’s stock, do not control or are not controlled by, the Parent.

For the purpose of sub-paragraph (a) above, the principal balance and all accrued interest shall be paid in cash within thirty (30) days of the Maturity Date.

 

23

 

For the purpose of sub-paragraph (b) above, the principal balance and all accrued interest shall be paid, at the sole discretion of the Holder, either in cash, in the Parent’s stock, or in any combination thereof.  In the event of a payment in the Parent’s stock, the conversion per share value and the stock class shall be the share price, discounted at a rate of [***], and class of the stock issued by the Parent in the equity financing that results in the cumulative sum cited in (b) above being satisfied (the "Stock").

ii)Events of Default.  If any of the events specified in this Section 2 herein below shall occur (individually referred to as an "Event of Default" hereinafter), the Holder of the Note may, so long as such condition exists, declare the entire principal and unpaid accrued interest hereon immediately due and payable, by notice in writing to the Company:

(i)Default in the payment of the principal and unpaid accrued interest of this Note when due and payable if such default is not cured by the Company within twenty (20) days after the Holder has given the Company written notice of such default; or

(ii)The institution by the Company of proceedings to be adjudicated as bankrupt or insolvent, or the consent by it to institution of bankruptcy or insolvency proceedings against it or the filing by it of a petition or answer or consent seeking reorganization or release under the federal Bankruptcy Act, or any other applicable federal or state law, or the consent by it to the filing of any such petition or the appointment of a receiver, liquidator, assignee, trustee or other similar official of the Company, or of any substantial part of its property, or the making by it of an assignment for the benefit of creditors, or the taking of corporate action by the Company in furtherance of any such action; or

(iii)If, within sixty (60) days after the commencement of an action against the Company (and service of process in connection therewith on the Company) seeking any bankruptcy, insolvency, reorganization, liquidation, dissolution or similar relief under any present or future statute, law or regulation, such action shall not have been resolved in favor of the Company or all orders or proceedings thereunder affecting the operations or the business of the Company stayed, or if the stay of any such order or proceeding shall thereafter be set aside, or if, within sixty (60) days after the appointment without the consent or acquiescence of the Company of any trustee, receiver or liquidator of the Company or of all or any substantial part of the properties of the Company, such appointment shall not have been vacated; or

(iv)Any material change in the Business Plan provided to CTL for the purpose of negotiating the Agreement and attached the Agreement as Appendix E, to the extent not approved by CTL. 

iii)Prepayment (cash).  The Company may, at its option, at any time, prepay, in whole or part, the principal and interest due under this Note. 

 

24

 

iv)Conversion.  In the event the Holder wishes to convert this Note into fully paid and shares of Stock of the Parent (the "Stock") the following articles shall apply: 

(i)Information Exchange and Conversion Procedure.  Upon the Holder's expression of an interest to convert this Note, in whole or in part, into shares of Stock under the provision in paragraph 1(b) above, Company shall promptly provide the Holders all relevant information regarding the Parent’s private equity financing details, including but not limited to the share price and class of the Stock. If the Holder, after evaluating the Stock offer elects to convert any portion of this Note into Stock, the Holder shall surrender this Note, duly endorsed, at the principal office of the Company and shall give written notice (Exhibit A) by mail, postage prepaid, to the Company at its principal corporate office, of the election to convert the same pursuant to this Section 5, and shall state therein the portion of the Note to be paid in cash and the portion of the Note to be converted into Stock with the name or names in which the certificate or certificates for shares of the Stock are to be issued. Such conversion shall be deemed to have been made immediately prior to the close of business on the date of such surrender of this Note, and the person or persons entitled to receive the shares of Stock issuable upon such conversion shall be treated for all purposes as the record holder or holders of such shares of Stock as of such date.

(ii)Rights of the Holder.  Upon the conversion of this Note into the Stock, the Parent shall issue to the Holder the same type or security, upon the same terms and subject to the same contractual rights, including, without limitation, redemption rights, co-sale rights, registration rights, and the Holder shall execute any documents executed by the investors purchasing the Stock; provided, however, that the Holder will not be required to:  (A) indemnify the Parent, the Company or any third party; (B) enter into a voting agreement or otherwise grant a proxy or power of attorney to any individual or entity; or (C)  agree to any other provision that is inconsistent with Cornell University’s charter, non-profit status or charitable purpose or in contradiction with Cornell University’s role as a non-profit educational and research institution.  Furthermore, in connection with such conversion, the Company shall grant to the Holder in writing the following participation rights:

“Participation Rights.  If the Company proposes to sell any equity securities or securities that are convertible into equity securities of the Company, to investors in a financing (excluding any strategic, business partnership or similar transaction), then Cornell University and/or its Assignee (as defined below) will have the right to purchase up to that portion of the securities issued in each offering that equals Cornell University’s then-current, fully diluted percentage ownership of the Company on the same terms and conditions as are offered to the others in each such financing.  The Company shall provide Cornell University, and any Assignee of which the Company has notice, with thirty (30) days’ advance written notice of each such financing, including reasonable detail regarding the terms and purchasers in the financing.  The term “Assignee” means (a) any entity that is controlled by Cornell University, or (b) any entity to which Cornell University’s participation rights under this Section have been assigned either by Cornell University or another entity.” These rights will terminate immediately prior to an initial public offering or sale of the Company.  Cornell University agrees to work with the Company to conform these participation rights to applicable law and any existing agreements that the 

 

25

 

Company may have with other investors, so as to ensure that Cornell University's participation rights are neither more nor less favorable than those of the Company's other similarly situated investors.

(iii)Delivery of Certificates.  As promptly as practicable after the conversion of this Note, the Parent at its expense will issue and deliver to the Holder of this Note a certificate or certificates for the number of full shares of the Stock issuable upon such conversion (bearing such legends as are required by applicable state and federal securities laws in the opinion of counsel to the Parent), together with any other securities and property to which the Holder is entitled upon such conversion under the terms of this Note, including a check payable to the Holder for any cash amounts payable due to the election of the Holder or of residual value as described in (iii) below.

(iv)Fractional Shares; Effect of Conversion.  No fractional shares of the Stock shall be issued upon conversion of this Note. In lieu of the Parent issuing any fractional shares to the Holder upon the conversion of this Note, the Company shall pay to the Holder the amount of outstanding principal that is not so converted.  Upon conversion and/or payout in cash of the entire principal balance of this Note, the Company shall be forever released from all its obligations and liabilities under this Note, except that the Company shall be obligated to pay the Holder, within ten (10) days after the date of such conversion, any interest accrued and unpaid or unconverted to and including the date of such conversion, and no more.

6.Notices of Record Date, etc.  In the event of:

(i)Any taking by the Company of a record of the holders of any class of securities of the Company for the purpose of determining the holders thereof who are entitled to receive any dividend (other than a cash dividend payable out of earned surplus at the same rate as that of the last such cash dividend theretofore paid) or other distribution, or any right to subscribe for, purchase or otherwise acquire any shares of stock of any class or any other securities or property, or to receive any other right; or

(ii)Any capital reorganization of the Company, any reclassification or recapitalization of the capital stock of the Company or any transfer of all or substantially all of the assets of the Company to any other person or any consolidation or merger involving the Company; or

 

26

 

(iii)Any voluntary or involuntary dissolution, liquidation or winding‐up of the Company, the Company will mail to the holder of this Note at least ten (10) days prior to the earliest date specified therein, a notice specifying: 

(a)The date on which any such record is to be taken for the purpose of such dividend, distribution or right, and the amount and character of such dividend, distribution or right; and

(b)The date on which any such reorganization, reclassification, transfer, consolidation, merger, dissolution, liquidation or winding‐up is expected to become effective and the record date for determining stockholders entitled to vote thereon.

7.Reservation of Stock Issuable Upon Conversion.  The Parent shall at all times reserve and keep available out of its authorized but unissued shares of the proper class of the Stock, solely for the purpose of effecting the conversion of the Note, such number of its shares of the Stock as shall from time to time be sufficient to effect the conversion of the Note; and if at any time the number of authorized but unissued shares of the proper class of the Stock shall not be sufficient to effect the conversion of the entire outstanding principal amount of the Note, in addition to such other remedies as shall be available to the holder of this Note, the Parent will use its best efforts to take such corporate action as may, in the opinion of its counsel, be necessary to increase its authorized but unissued shares of the proper class of the Stock to such number of shares as shall be sufficient for such purposes.  The Company shall cause the Parent to take all actions required of the Parent pursuant to this Note.

8.Assignment.  The rights and obligations of the Company are binding and personal and may only be assigned or transferred with the written consent by the Holder, which consent shall not be unreasonably withheld. The rights and obligations of the Holder of this Note shall be binding and the benefit be inured, at the discretion of the Holder and in whole or in part, to its successors, assigns, heirs, administrators and transferees.

9.Waiver and Amendment.  Any provision of this Note may be amended, waived or modified only upon the written consent of the Company and the Holder of this Note.

10.Transfer of this Note or Securities Issuable on Conversion Hereof.  With respect to any offer, sale or other disposition of this Notes or securities into which such Note may be converted, the Holder will give written notice to the Company prior thereto.

11.Treatment of Note.  To the extent permitted by generally accepted accounting principles, the Company will treat, account and report the Note as debt and not equity for accounting purposes and with respect to any returns filed with federal, state or local tax authorities.

12.Notices.  Any notice, request or other communication required or permitted hereunder shall be in writing and shall be deemed to have been duly given if personally delivered or mailed registered or certified mail, postage prepaid, at the respective address of the parties as 

 

27

 

set forth herein. Any party hereto may by notice so given change its address for future notice hereunder. Notice shall conclusively be deemed to have been given when personally delivered or when deposited in the mail or telegraphed in the manner set forth above and shall be deemed to have been received when delivered. 

13.No Stockholder Rights.  Unless an election under the provision in sub-paragraph 1(b) has been made by the Holder according to paragraph 5, nothing contained in this Note shall be construed as conferring upon the Holder or any other person the right to vote or to consent or to receive notice as a stockholder in respect of meetings of stockholders for the election of directors of the Parent or any other matters or any rights whatsoever as a stockholder of the Parent; and no dividends shall be payable or accrued in respect of this Note.

14.Governing law.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York, excluding that body of law relating to conflict of laws.

15.Heading; References.  All headings used herein are used for convenience only and shall not be used to construe or interpret this Note. Except where otherwise indicated, all returns herein to Sections refer to Sections hereof.

IN WITNESS WHEREOF, the Company has caused this Note be issued this fifteenth  day of December, 2015.

 

			
	
Annapurna Therapeutics Limited

	
 
	
 
	
 

	
By:
	
 
	
 

	
 
	
 
	
 

	
Its:
	
 
	
 

 

			
	
Name of Holder:
	
 
	
Cornell University

	
Address:
	
 
	
c/o Center for Technology Licensing at Cornell University

	
 
	
 
	
395 Pine Tree Road, Suite 310

	
 
	
 
	
Ithaca, New York 14850

 

 

 

 

28

 

 

Exhibit A

NOTICE OF CONVERSION

(To Be Signed Only Upon Conversion of Note)

TO:  Annapurna Therapeutics Limited

The undersigned, the holder of the foregoing Note, hereby surrenders such Note for conversion into __________ shares of _(class)______________ Stock to the extent the amount of $____________ unpaid principal amount of such Note, and requests that the certificates for such shares be issued in the name of, and delivered to, __________________________ , whose address is ____________________________.

 

	
Dated:
	
 
	
 
	
 

	
 
	
 
	
(Signature must conform in all respects to name of holder as specified on the face of the Note)

	
 
	
 
	
 

	
 
	
 
	
(Address)

 

 

29

Appendix C: Development Report

 

	
Company Name
	
CTL Agreement No
	
Your Reference No

	
Reporting Period   ( mm / dd / yyyy )

 

From   ______ / ______ / ______  Through   _____ / ______ / _____
	
Expected Date of first sale of

Licensed Product(s)

( mm / dd / yyyy )            ______ / ______ / ______

	
Please Check One

 

Your Company Has:       o      less than 500 employees worldwide     o       500 or more employees worldwide

 

 

30

For the reporting period prescribed in the agreement, please provide detailed answers to the questions listed below. Please attach a separate report to this sheet if necessary.

 

	
1. Listing of milestones / performance requirements accomplished during the reporting period
	
Done

Completed

Date
	
In Progress

Anticipated

Date
	
Not Done

Anticipated

Date

	
 
	
 
	
 
	
 

 

						
	
2.  List of Products being developed under this agreement

	
Product Name
	
 
	
Brief

Description
	
 

 
	
Status
	
 

	
Product Name
	
 
	
Brief

Description
	
 
	
Status
	
 

	
Product Name
	
 
	
Brief

Description
	
 
	
Status
	
 

	
Product Name
	
 
	
Brief

Description
	
 
	
Status
	
 

	
Product Name
	
 
	
Brief

Description
	
 
	
Status
	
 

 

31

 

	
3. Total expenditure spent in the reporting period (under this agreement)

	
 

 

	
4.Sublicense Activity (if applicable)

	
List of Sublicenses granted during reporting period
	
 
	
List of sublicenses terminated during reporting period

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
Total Number of active sublicenses during reporting period
	
 
	
 

 

Information reported below will only be used in an aggregated manner.  Information related to individual licensee will not be released.

 

	
5. Jobs and Payroll Information
	
 

	
Number of Full Time Employee equivalents currently employed by company (do not count consultants or contractors hired as independent agents)
	
 

	
Total current company payroll  for preceding 12 months
	
 

 

32

 

	
6. Financial Information

	
Amount of equity investment received :

	
a)For preceding 12 months
	
 

	
b)Cumulative total
	
 

	
Amount of investment received using other financial instrument to date excluding equity investment above (e.g. loan, warrant, convertible note etc.)

	
     a) For preceding 12 months
	
 

	
b) Cumulative total
	
 

	
Amount of grants and awards received to date.  (e.g. Federal grants, Small business, Foundation grants, Competition awards) Please list source, amount and years if applicable.

	
     a) For preceding 12 months
	
 

	
 
	
 

	
 
	
 

	
 
	
 

	
 
	
 

	
b) Cumulative total
	
 

	
 
	
 

	
 
	
 

	
 
	
 

	
 
	
 

	
Estimated market value (private) or market capitalization (public) of company 
	
 

 

	
Report Prepared & Approved By

	
Name  ( Please Print )
	
Title
	
Email

 

 

	
Signature
	
Date ( mm / dd / yyyy )

 

_______ / _______ / ___________  

 

Please submit completed report either via mail or email at address below:

Center for Technology Licensing

At Cornell University

395 Pine Tree Rd., Suite 310

Ithaca, NY 14850

ctl-contracts@cornell.edu

 

 

 

 

33

 

Appendix D: Commercialization Report

 

	
Company Name
	
CTL Agreement No
	
Your Reference No

	
Reporting Period   ( mm / dd / yyyy )

 

From   _______ / _______ / _____________  Through   _______ / _______ / ______________  
	
Date of first sale of

Licensed Product(s)                      

( mm / dd / yyyy )                   ________ / ________ / _____________

 

 

	
Please list all trade names for product(s) incorporating licensed rights whether or not you had sales during this reporting period.

	
Product Name 
	
 

Licensed Invention or Patent Rights (No.) used if known or Docket No 
	
Country
	
Number of Units Sold
	
Gross Sales
	
Net Sales 

( A )
	
Royalty Rate1

( B )
	
 

 

 

Total Royalties 

( A * B )

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 

1 Please refer to the license agreement for: 

·         applicable royalty rate, please provide as decimal; 

·         how Net Sales should be calculated;

·         applicable share of sublicense fees;

·         application of minimum royalty rate

·         If sales were in a currency other than United States Dollars, please specify exchange rate      used

          2 Subtract minimum royalty already paid from royalty subtotal for Total Royalty Owed
	
Royalty Subtotal
	
 

	
 
	
Minimum Royalty already paid*
	
 

	
 
	
Total Royalty Owed2
	
 

	
 
	
Total Sublicense Fees* (if applicable)
	
 

	
 
	
Total Payment
	
 

 

 

34

 

 

	
Sublicense Activity (if applicable)

	
List of sublicenses granted during the reporting period
	
 
	
List of sublicenses terminated or expired during the reporting period

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
Total Number of active sublicenses during reporting period
	
 
	
 

 

 

	
List of Products being developed under this agreement

	
Product Name
	
 
	
Brief Description
	
 
	
Status
	
 

	
Product Name
	
 
	
Brief Description
	
 
	
Status
	
 

	
Product Name
	
 
	
Brief Description
	
 
	
Status
	
 

	
Product Name
	
 
	
Brief Description
	
 
	
Status
	
 

	
Product Name
	
 
	
Brief Description
	
 
	
Status
	
 

 

 

 

	
List of Licensed Product(s) Not Manufactured in the US

	
Product Name
	
 

	
Product Name
	
 

	
Product Name
	
 

	
Product Name
	
 

 

 

 

 

	
Jobs and Payroll Information                                                                                                                                                       

	
Number of Full Time Employee equivalents currently employed by company (do not count consultants or contractors hired as independent agents)
	
 

	
Total current company payroll  for preceding 12 months
	
 

 

35

 

 

		
	
Financial Information

	
Amount of equity investment received :
	
 

	
c)For preceding 12 months
	
 

	
d)Cumulative total
	
 

	
Amount of investment received using other financial instrument to date excluding equity investment above (e.g. loan, warrant, convertible note etc.)

	
     a) For preceding 12 months
	
 

	
c) Cumulative total
	
 

	
Amount of grants and awards received to date.  (e.g. Federal Agency, Small business, NSF grants) Please list source, amount and years if applicable.

	
     a) For preceding 12 months
	
 

	
 
	
 

	
 
	
 

	
 
	
 

	
b) Cumulative total
	
 

	
 
	
 

	
 
	
 

	
 
	
 

	
Estimated market value of company (best guess)
	
 

 

	
Report Prepared & Approved By

	
Name  ( Please Print )
	
Title
	
Email

 

 

	
Signature
	
Date ( mm / dd / yyyy )

 

 

_________ / _________ / ______________  

 

 

 

 

36

 

Appendix E: Business Plan

[***]

THE REMAINDER OF THIS PAGE AND THE FOLLOWING 40 PAGES HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

 

 

37

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