Document:

EXHIBIT 10.17

 

EXECUTION VERSION

 

Joint
Participation Agreement

 

By
And Between

 

Oncobiologics,
Inc.

 

And

 

Zhejiang
Huahai Pharmaceutical Co., Ltd.

 

Effective
as of May   6  , 2013

 

    	 	 	 

     

    

 

Table
of Contents

 

	 	 	 	Page
	 	 	 	 
	1.	Definitions	2
	 	 	 	 
	 	1.1	Defined Terms	2
	 	 	 	 
	 	1.2	Additional Defined Terms	4
	 	 	 	 
	 	1.3	Rules of Construction	4
	 	 	 	 
	 	1.4	Terms of Alliance Agreement; Supremacy	5
	 	 	 	 
	2.	Governance; Funding	5
	 	 	 	 
	 	2.1	In General	5
	 	 	 	 
	 	2.2	Additional JSC Functions	5
	 	 	 	 
	 	2.3	JSC Decision-Making Authority	5
	 	 	 	 
	 	2.4	Additional Alliance Manager Functions	5
	 	 	 	 
	 	2.5	Conversion of Agreement Structure	6
	 	 	 	 
	 	2.6	Co-development Funding; Value Ownership	6
	 	 	 	 
	3.	Rights of Data; Exclusivity; Patent Matters	7
	 	 	 	 
	 	3.1	Rights and Transfer of Data	7
	 	 	 	 
	 	3.2	Exclusivity	7
	 	 	 	 
	 	3.3	Patent Costs	8
	 	 	 	 
	 	3.4	Enforcement of Patent Rights	8
	 	 	 	 
	 	3.5	Third Party Actions Claiming Infringement	8
	 	 	 	 
	4.	Diligence	10
	 	 	 	 
	 	4.1	Generally	10
	 	 	 	 
	 	4.2	Conduct of the Parties	10
	 	 	 	 
	 	4.3	Conduct of Oncobiologics	10
	 	 	 	 
	5.	Restricted License Grant	11
	 	 	 	 
	 	5.1	Grant of Restricted License to Huahai	11
	 	 	 	 
	6.	Term And Termination	11
	 	 	 	 
	 	6.1	Term	11
	 	 	 	 
	 	6.2	Termination upon Material Breach	11
	 	 	 	 
	 	6.3	Mutual Termination	12
	 	 	 	 
	 	6.4	Effect of Mutual Termination	12
	 	 	 	 
	 	6.5	Effect of Expiration of the Term	12

 

    	 	(i)	 

     

    

 

	 	6.6	Effect Upon Termination for Cause	13
	 	 	 	 
	 	6.7	Accrued Rights; Surviving Obligations	14
	 	 	 	 
	 	6.8	Section 365(n) of the Bankruptcy Code	15

 

    	 	(ii)	 

     

    

 

List
Of Schedules

 

	Schedule 1.1.11	Joint Participation Compounds; Delivery Plan

 

    	 	(iii)	 

     

    

 

JOINT PARTICIPATION
AGREEMENT

 

This
Joint Participation Agreement is made effective as of May   6  , 2013 (the “Effective
Date”) by and between Oncobiologics, Inc., a corporation organized
under the laws of the State of New Jersey, U.S. having its place of business at 7 Clarke Drive, Cranbury NJ 08512 (“Oncobiologics”),
and Zhejiang Huahai Pharmaceutical Co., Ltd., a limited liability company
organized under the laws of the People’s Republic of China having its place of business at Xunqiao, Linhai City, Zhejiang
Province, PRC 317024 (“Huahai”). Oncobiologics and Huahai may be referred to herein as a “Party”
or, collectively, as “Parties.”

 

RECITALS:

 

Whereas,
Oncobiologics is a biopharmaceutical company engaged in the development, clinical manufacture and regulatory approval of the Biosimilar
(as defined below); and

 

Whereas,
Oncobiologics has, as of the Effective Date, entered into that certain commercial license agreement (the “In-License Agreement”)
with Selexis SA with respect to its proprietary technology covering the construction and development of recombinant cell lines
for the manufacture of biopharmaceutical products as more fully described in the In-License Agreement (the “In-Licensed
Technology”); and

 

Whereas,
Huahai has expertise in the development, manufacture, sale and distribution of pharmaceutical drugs in China, and is interested
in supporting the development of the Joint Participation Compounds in their respective Fields in the Developed Countries (as such
terms are defined below) subject to the terms and conditions of this Agreement (as defined below); and

 

Whereas,
Oncobiologics and Huahai desire to share the Value Ownership (as defined below) of the Biosimilar products containing or comprising
the Joint Participation Compounds in their respective Fields (as defined below) for commercialization in the Developed Countries
pursuant to the terms and conditions of this Agreement (defined below); and

 

Whereas,
pursuant to that certain letter of intent dated January 16, 2013 and the incorporated term sheet appendices (collectively, the
“LOI”), as of the Effective Date, the Parties are entering into: (i) this Agreement; and (ii) that certain Co-Development
and License Agreement (the “License Agreement”) pursuant to which the Parties will collaborate in the development
of pharmaceutical products containing or comprising the Biologic Compounds in their respective Fields in the Licensed Territory
(as such terms are defined in the License Agreement) for commercialization by Huahai in the Licensed Territory; and (iii) that
certain Agreement for Commitment to Enter Cooperative JV Agreement (the “Commitment Agreement”), pursuant to
which the Parties agree to enter into an agreement (within ninety ( 90) days after the Effective Date, or such later date as mutually
agreed to by the Parties) that establishes a new, jointly owned, cooperative entity in The People’s Republic of China to
develop and commercialize a number of pharmaceutical products, including Biosimilars, biobetters, NCEs and/or BLAs (but excluding
the Licensed Products defined in the License Agreement or any product having the same Biosimilar Reference Product (as defined
in the Strategic Alliance Agreement) as any Licensed Product (as defined in the License Agreement)) as further described in that
certain Commitment Agreement, the subsequent agreement and its

 

    	 	- 1 -	 

     

    

 

ancillary documents (collectively,
the “Cooperative JV Contract”) (this Agreement, the License Agreement and the Cooperative JV Contract, collectively,
the “Joint Agreements”); and

 

Whereas,
the Parties have entered into that certain Strategic Alliance Agreement (the “Alliance Agreement”) to provide
for the governance of certain aspects of the relationship between the Parties pursuant to the Joint Agreements.

 

Now,
Therefore, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the Parties agree as follows:

 

		1.	Definitions.

 

1.1         Defined Terms.
As used in this Agreement, the following terms shall have the meanings set forth in this Section 1 unless context clearly and unambiguously
dictates otherwise. Capitalized terms used in this Agreement that are not defined in this Agreement shall have the meaning assigned
to such term in the Alliance Agreement.

 

1.1.1       “Agreement”
means this joint participation agreement together with the recitals and all exhibits, schedules and attachments.

 

1.1.2       “Ancillary
Agreement” shall mean a separate agreement to be entered into by the Parties contemporaneously with any Third Party License
Agreement, which will set forth any further rights and/or obligations of the Parties with respect to such Third Party License Agreement.

 

1.1.3       “Biosimilar”
means a product containing or comprised of a Joint Participation Compound identified on Schedule 1.1.11 for which an abbreviated
filing could be used to obtain Regulatory Approval in the relevant country or legal jurisdiction, as applicable (to the extent
such an abbreviated filing pathway is available in such country or jurisdiction), and Regulatory Approval pursuant to such abbreviated
filing would be granted based on a claim of statistical equivalence or non-inferiority, or any other standard upon which the applicable
Regulatory Authority will review such abbreviated filings, with respect to the Biosimilar Reference Product, regardless of the
filing pathway actually used or planned to be used.

 

1.1.4       “Cell
Lines” means those clonal cell lines generated by Oncobiologics using the In-Licensed Technology in combination with
Oncobiologics’ inputs, including the Oncobiologics Technology, to develop a process to obtain Licensed Products containing
or comprising the Biologics Compounds.

 

1.1.5       “Collaboration
Agreement” means a separate mutually acceptable agreement, or amendment to this Agreement, to be entered into by the
Parties in the event the Parties elect to continue joint development and/or commercialization of a Joint Participation Product.

 

1.1.6       “Completion
of Phase III-Ready Package” means, with respect to a Joint Participation Compound Oncobiologics shall (i) complete all
development and

 

    	 	- 2 -	 

     

    

 

manufacturing activities
necessary to be ready to commence a Phase III Trial for such Joint Participation Compound, and (ii) obtain affirmative response
of an end-of-phase I, or Phase III study review meeting, as applicable, with any Regulatory Authority in the Territory.

 

1.1.7       “Developed
Countries” means the U.S., Canada, EU, Japan, Australia and New Zealand.

 

1.1.8       “Delivery
Plan” means each plan prepared by Oncobiologics as set forth on Schedule 1.1.11.

 

1.1.9       “Field”
means, with respect to each Joint Participation Compound, the prophylactic, palliative, therapeutic or diagnostic uses identified
on Schedule 1.1.11 for such Joint Participation Compound.

 

1.1.10     “Going-Forward
Plan” means the plan prepared by the Parties and approved by the JSC for all activities subsequent to the Completion
of Phase-III Ready Package for each Joint Participation Compound.

 

1.1.11     “Joint
Participation Compound” means each of the monoclonal antibodies described and defined in more detail on Schedule 1.1.11.

 

1.1.12     “Joint
Participation Product” means a Biosimilar version of any pharmaceutical product, in any dosage form, formulation, presentation
or package configuration that is commercialized or undergoing research or pre-clinical or clinical development that contains or
comprises, in part or in whole, a Joint Participation Compound.

 

1.1.13     “Term”
means, with respect to each Joint Participation Compound, the period commencing on the Effective Date and, unless earlier terminated
pursuant to the provisions of Section 6, shall continue until the Parties either: (a) enter into a Collaboration Agreement to continue
the joint development and/or commercialization of the applicable Joint Participation Compound or (b) enter into a Third Party License
Agreement.

 

1.1.14     “Terminated
Product” means (a) in the event of the termination of this Agreement with respect to a particular Joint Participation
Compound pursuant to any provision of this Agreement, such Joint Participation Compound and all of the Joint Participation Products
containing or comprising such Joint Participation Compound; or (b) in the event of the termination of this Agreement in its entirety
pursuant to any provision of this Agreement, all of the Joint Participation Compounds and all of the Joint Participation Products
containing or comprising such Joint Participation Compounds.

 

1.1.15     “Third
Party IP” means any Intellectual Property Rights owned or controlled by a Third Party that Oncobiologics deems necessary
to obtain a license to in order to develop and/or commercialize a Joint Participation Compound or the Joint Participation Product
related thereto in the Developed Countries.

 

1.1.16     “Third
Party License Agreement” means, with respect to one or more Joint Participation Compound(s), an agreement entered into
by the Parties with a Third Party pursuant to which Oncobiologics grants to such Third Party an out-license under the

 

    	 	- 3 -	 

     

    

 

Oncobiologics Technology
for the commercialization of the respective Joint Participation Product(s) in one or more Developed Countries.

 

1.1.17     “Value
Ownership” means the percentage share of all consideration, fees, earnings or other proceeds that a Party shall be entitled
to receive with respect to each Joint Participation Product, which shall be based upon each Party’s contribution to the research,
discovery and development of the Joint Participation Compound in the Developed Countries as determined pursuant to Section 2.6
as further adjusted pursuant to the terms of this Agreement and as reflected in a financial record maintained by Oncobiologics
of all contributions made by each Party with respect to each Joint Participation Compound in the Developed Countries, such financial
record shall be provided by Oncobiologics to Huahai each Calendar Quarter.

 

1.2         Additional
Defined Terms. The following additional defined terms are defined in the Section of this document listed below:

 

	Term	 	Section
	Action	 	3.4.1
	Alliance Agreement	 	6th Whereas Clause
	Bankruptcy Code	 	6.8.1
	Commitment Agreement	 	5th Whereas Clause
	Cooperative JV Contract	 	5th Whereas Clause
	Huahai Funding	 	2.6
	Initial Valuation	 	2.6.2
	In-License Agreement	 	2nd Whereas Clause
	In-Licensed Technology	 	2nd Whereas Clause
	Joint Agreements	 	5th Whereas clause
	License Agreement	 	5th Whereas clause
	LOI	 	5th Whereas clause
	Replacement Compound	 	6.4.3
	Termination Agreement	 	6.4.1
	Third party Action	 	3.5.1

 

1.3         Rules of
Construction. The definitions of the terms in this Agreement shall apply equally to the singular and plural forms of the terms
defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The
words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without
limitation” (regardless of whether it is actually written there (and drawing no implication from the actual inclusion of
such phrase in some instances after such terms but not others)). The word “will” shall be construed to have the same
meaning and effect as the word “shall.” Unless the context requires otherwise: (a) any definition of or reference to
any agreement, instrument or other document in this Agreement shall be construed as referring to such agreement, instrument or
other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments,
supplements or modifications set forth in this Agreement); (b) any reference in this Agreement to any Person shall be construed
to include the Person’s successors and assigns; (c) the words “herein,” “hereof” and “hereunder”
and words of

 

    	 	- 4 -	 

     

    

 

similar import, shall
be construed to refer to this Agreement in its entirety and not to any particular provision of this Agreement; and (d) all references
in this Agreement to Recitals, Sections or Exhibits shall be construed to refer to the recitals, sections and exhibits of this
Agreement.

 

1.4         Terms of
Alliance Agreement; Supremacy. All of the terms and conditions of the Alliance Agreement shall apply to this Agreement as if
stated in this Agreement in their entirety. In the event of any conflict between the provisions of the Alliance Agreement and this
Agreement, the terms of this Agreement will control as set forth in Section 9.10 of the Alliance Agreement.

 

		2.	Governance; Funding.

 

2.1         In General.
Each Party’s activities under this Agreement to develop the Joint Participation Compounds in their respective Fields shall
be governed by the terms of this Agreement and the Alliance Agreement, including the oversight responsibilities of both the Joint
Steering Committee and the Alliance Managers; subject, in each case, to the option rights and rights to sublicense the Joint Participation
Compounds and Joint Participation Products as more fully set forth in this Agreement.

 

2.2         Additional
JSC Functions. In addition to the responsibilities of the JSC as provided in the Alliance Agreement, under this Agreement,
the JSC shall:

 

2.2.1       review available
data and information in order to determine whether to cease development of a Joint Participation Compound in the Developed Countries;

 

2.2.2       review and approve
the Going-Forward Plan;

 

2.2.3       review available
data and information in order to determine how to further develop each Joint Participation Compound in the Developed Countries
upon the Completion of a Phase III-Ready Package for a particular Joint Participation Compound as set forth in Schedule 1.1.11;
and

 

2.2.4       oversee the
activities of the Parties under this Agreement.

 

2.3         JSC Decision-Making
Authority. The JSC will take action in accordance with the provisions of Section 2.1.4 of the Alliance Agreement, except that
the arbitration provisions set forth in the Alliance Agreement shall resolve any matters that: (a) are governed by such provisions
as set forth in this Agreement, including without limitation any changes to Value Ownership of either Party and (b) the JSC cannot
reach a consensus to resolve.

 

2.4         Additional
Alliance Manager Functions. In addition to the responsibilities set forth in the Alliance Agreement, each Party’s designated
Alliance Managers shall:

 

2.4.1       monitor the
overall progress of the development of the Joint Participation Compounds and Joint Participation Products in their respective Fields;
and

 

    	 	- 5 -	 

     

    

 

2.4.2       prepare and
submit a Going-Forward Plan for review and approval by the JSC.

 

2.5         Conversion
of Agreement Structure. At any time point during the Term of this Agreement, Huahai may propose in writing that the Parties
enter into an entity joint venture, through an LLC or other entity incorporated under the laws of the applicable Developed Country
if it becomes necessary or desirable for commercial or other reasons, and Oncobiologics may agree to such different structure,
such agreement shall not be unreasonably withheld. Huahai shall have 51% ownership of such new LLC or other entity, provided,
that, Huahai provides the Huahai Funding for at least one such Joint Participation Compound in the Developed Country as set
forth in Section 2.6. Each other Joint Participation Compound shall transfer to such an entity as long as Huahai pays the Huahai
Funding for such Joint Participation Compound in the Developed Country to Oncobiologics and assuming that there are no other adjustments
to Value Ownership thereunder at such time.

 

2.6         Co-development
Funding; Value Ownership.

 

2.6.1       In partial consideration
of the contributions and research activities of Oncobiologics prior to the Effective Date with respect to the Joint Participation
Compounds and in consideration of the ongoing research and development of such Joint Participation Compounds and related Joint
Participation Products by Oncobiologics, Huahai shall pay to Oncobiologics an aggregate of US$10,000,000 with respect to each Joint
Participation Compound (the “Huahai Funding”) within thirty (30) days of the first occurrence of each milestone
event set forth in the table below with respect to the applicable Joint Participation Compound as follows:

 

	 	 	Milestone Payment	 
		 	ONS-3010	 	 	ONS-1045	 	 	ONS-1040	 	 	ONS-1050	 
	Milestone Event:	 	a Humira

    Biosmilar	 	 	an Avastin

    Biosmilar	 	 	a Rituxan

    Biosmilar	 	 	a Herceptin

    Biosmilar	 
	1.    Execution of this Agreement.	 	U.S. $	5,000,000	 	 	 	n/a	 	 	 	n/a	 	 	 	n/a	 
	2.    The Oncobiologics’ IND in either the U.S. or EU becomes Effective.	 	U.S. $	 5,000,000	 	 	U.S. $	10,000,000	 	 	U.S. $	 10,000,000	 	 	U.S. $	10,000,000	 

 

2.6.2       Provided that
Oncobiologics conducts all activities contemplated by the Delivery Plan, and Huahai provides the Huahai Funding as provided in
Section 2.6.1, and unless the Value Ownership is adjusted pursuant to any other provision of this Agreement that provides for a
potential adjustment, upon Completion of Phase III-Ready Package with respect to a Joint Participation Compound, the Parties acknowledge
and agree that: (a) Huahai shall have a fifty-one percent (51%) Value Ownership in such Joint Participation Compound and any resulting
Joint Participation Product; and (b) Oncobiologics shall have a forty-nine percent (49%) Value Ownership in such Joint Participation
Compound and any resulting Joint Participation Product; in each case, in the Developed Countries. Huahai’s Value Ownership
interest will be deemed to have a value of US$10,000,000, and Oncobiologics’ Value Ownership interest will be deemed to

 

    	 	- 6 -	 

     

    

 

have a value ofUS$9,607,843
for an aggregate basis of US$19,607,843 (the “Initial Valuation” for each Joint Participation Compound). Any
adjustments to Value Ownership as provided in this Agreement will be calculated on that basis. Any disagreements relating to adjustments
to Value Ownership shall be resolved by the JSC or, if the JSC cannot reach a consensus, pursuant to the arbitration Provisions.
For the avoidance of doubt, Oncobiologics shall own one hundred percent (100%) of the Joint Participation Compound(s) in the Developed
Countries until Oncobiologics receives the Huahai Funding for such Joint Participation Compound(s), at which point the Joint Participation
Compound will be owned by the Parties according to their Value Ownership as set forth immediately above.

 

2.6.3       Oncobiologics
is responsible for completing Phase III Ready Package which shall include manufacture of Phase-1 material and execution of Phase-1
Clinical Trial at Oncobiologics expense for which part of Huahai funding will be used for such Joint Participating Compound for
the Developed Country.

 

		3.	Rights of Data; Exclusivity; Patent Matters.

 

3.1         Rights and
Transfer of Data.

 

3.1.1       Oncobiologics
shall grant Huahai the right to use all data (including pre-clinical, clinical, technical, chemical, safety, and scientific data
and information), Know-How and other results generated and Possessed by Oncobiologics that relate to the Joint Participation Compound(s)
in the Licensed Territory pursuant to the terms of the License Agreement, subject to Oncobiologics receipt of the Huahai Funding
for the respective Joint Participation Compound(s) to which the data relates. Oncobiologics will provide Huahai with the right
to use such data at such time as the JSC determines is appropriate, taking into consideration the rights of any Third Party under
a Third Party License Agreement.

 

3.1.2       Each Party shall
be permitted to use all Safety Data of the other Party, and to share such Safety Data with its licensees and sublicensees, as the
case may be, for purposes of Safety Data reporting under Applicable Laws.

 

3.1.3       All data (including
pre-clinical, clinical, technical, chemical, safety, and scientific data and information) shall be owned by both Parties. Both
Parties shall own all regulatory filings for the Joint Participation Compounds and Joint Participation Products in the Developed
Countries developed pursuant to this Agreement, including all INDs; subject to the rights of any Third Party pursuant to any Third
Party License Agreement.

 

3.2         Exclusivity.
  During the term of this Agreement, neither Oncobiologics nor its Affiliates shall, directly or indirectly, conduct, have conducted
or fund any discovery, research, development, regulatory, manufacturing or commercialization activity, alone or in collaboration
with a Third Party, of any biosimilar pharmaceutical product having the same Biosimilar Reference Product as any of the Joint Participation
Compounds or Joint Participation Products for use in the Developed Countries, other than the Joint Participation Compounds and
Joint Participation Products for use in the Developed Countries pursuant to this Agreement.

 

    	 	- 7 -	 

     

    

 

3.3         Patent Costs.
  Notwithstanding anything to the contrary in the Alliance Agreement, the Party filing the patent will cover the cost of such patent.
In case of joint patent application the cost will be jointly shared by the Parties.

 

3.3.1       The Parties
shall agree on a mechanism for reporting and sharing of any Other Shared Costs and any Cost Recoveries; including the process and
timing for the exchange of funds by the Parties as necessary to implement such sharing.

 

3.4         Enforcement
of Patent Rights.

 

3.4.1       Prior to Huahai
Funding of a Joint Participation Compound Oncobiologics shall have the right, either directly or through a Third Party licensee,
to attempt to resolve any such infringement or claim related to such Joint Participation Compound, including by filing an infringement
suit, defending against such claim or taking other similar action (each, an “Action”) with respect to any Oncobiologics
Technology in the Developed Countries and to compromise or settle such infringement or claim. Any award, damages or other monetary
awards recovered (whether by way of settlement or otherwise) shall be retained by Oncobiologics.

 

3.4.2       After Huahai
Funding of a Joint Participating Compound: The costs and expenses of any Action (including fees of attorneys and other professionals)
shall be borne first by the Parties proportional to the Value Ownership. Any award, damages or other monetary awards recovered
(whether by way of settlement or otherwise) shall be applied first to reimburse the Parties for all costs and expenses incurred
by the Parties with respect to such Action on a pro rata basis and, if after such reimbursement any funds remain from such award,
they shall be distributed based on Value Ownership. If one Party elects not to participate in the Action then the costs and expenses
of any Action (including fees of attorneys and other professionals) shall be borne by the Party instituting the Action. Each Party
shall provide necessary support to the Party instituting the Action. Any award, damages or other monetary awards recovered (whether
by way of settlement or otherwise) shall be retained by the Party instituting such Action.

 

3.5         Third Party
Actions Claiming Infringement.

 

3.5.1       If a Third Party
asserts, prior to the BLA or MAA approval, whether raised directly or by way of counterclaim or affirmative defense, that any Patent
Rights or other Intellectual Property Rights owned by it is infringed by the manufacture, use, offer for sale, sale or importation
of any Joint Participation Product developed or commercialized under this Agreement in the Developed Countries, or the proposed
manufacture, use or sale of any such Joint Participation Product in such Developed Countries, or if a Party otherwise becomes aware
of a potential infringement of any Third Party Patent Rights or other Intellectual Property Rights (each, a “Third Party
Action”), the Party first having knowledge of such claim shall promptly provide the other Party with notice of same in
accordance with Section 9.11 of the Alliance Agreement, and shall also provide the Alliance Managers with notice of such claim
and the related facts in reasonable detail.

 

3.5.2       Unless the Parties
otherwise agree to share in the defense of any such Third Party Action, Oncobiologics, either directly or through a Third Party
licensee, shall defend

 

    	 	- 8 -	 

     

    

 

(including undertaking
court proceedings or other appropriate steps to settle), at its sole cost and expense, any Third Party Action described in Section
3.5.1, shall have the sole right to compromise or settle such Third Party Action and shall have the sole and exclusive right to
select counsel to assist with defending (including undertaking court proceedings or other appropriate steps to settle) such Third
Party Action.

 

3.5.3       Oncobiologics
shall consult with Huahai on all material aspects of the defense of any Third Party Action. Huahai shall have a reasonable opportunity
for meaningful participation in decision-making and formulation of defense strategy. The Parties shall reasonably cooperate with
each other in all such actions or proceedings. Huahai shall provide reasonable assistance to Oncobiologics, including providing
access to relevant documents and other evidence and making its employees available, including without limitation to participate
in judicial proceedings. Huahai will be entitled to be represented by independent counsel of its own choice at its own expense.

 

3.5.4       Unless the Parties
otherwise agree to share in the defense of any Third Party Action, the costs and expenses of such Third Party Action (including
fees of attorneys and other professionals) shall be borne by the Parties as provided in Section 3.3. If a Party prevails and receives
an award from such Third Party as a result of such Third Party Action (whether by way of judgment, award, decree, settlement or
otherwise), such award shall be shared by the Parties as provided in Section 3.3.

 

3.5.5       Neither Party
shall settle or otherwise compromise any Third Party Action by admitting that any Oncobiologics Patents or any Patent Rights covering
or claiming any Joint Invention are invalid or unenforceable without the other Party’s prior written consent, and neither
party may settle or otherwise compromise a Third Party Action in a way that adversely affects or would be reasonably expected to
adversely affect the other Party’s rights or benefits under this Agreement with respect to any Joint Participation Product,
without such other Party’s prior written consent.

 

3.5.6       The responsibility
and liability of each Party with respect to any Third Party Action as allocated and set forth in this Section 3.5 shall apply regardless
of which Party(ies) are named as defendants in such legal proceeding.

 

(a)        Oncobiologics
shall indemnify, defend and hold Huahai harmless from and against any and all liability, damage, loss, cost or expense (including
reasonable attorney’s fees) to the extent arising out of Third Party claims, demands or suits related to a Third Party Action
pursuant to this Section 3.5 and in accordance with Section 7 of the Strategic Alliance Agreement; provided, however, that
Oncobiologics’ obligations pursuant to this Section 3.5.6(a) shall not apply to the extent that such claims or suits result
from the negligence or willful misconduct of Huahai.

 

(b)        In the event
that a judgment in a Third Party Action prior to IND approval in US or EU is entered against Oncobiologics relating solely to Oncobiologics
Technology, then Oncobiologics shall pay all the fees and third part damages.

 

    	 	- 9 -	 

     

    

 

(c)        In the event
that a judgment in a Third Party Action post IND approval in US or EU is entered against Oncobiologics relating solely to Oncobiologics
Technology, Oncobiologics shall remain responsible for such infringement until commercial partner takes over such responsibility.

 

		4.	Diligence.

 

4.1         Generally.
In addition to the general diligence obligation set forth in the Alliance Agreement, the Parties, acting in accordance with this
Section 4, and the Delivery Plans as supplemented, amended or updated, shall use Commercially Reasonable Efforts to develop the
Joint Participation Compounds and related Joint Participation Products for use in their Fields in the Developed Countries.

 

4.2         Conduct of
the Parties. Without limiting the generality of the foregoing, each Party shall:

 

4.2.1       act in good
faith and in a co-operative manner to: (a) share all information reasonably necessary to facilitate each Party’s performance
of its obligations under this Agreement; (b) reach consensus on decisions of the JSC, of any other Committees and of the Alliance
Managers; and (c) negotiate and enter into any Collaboration Agreements, Ancillary Agreements and Third Party License Agreements
contemplated under this Agreement; and

 

4.2.2       co-operate with
the other Party to implement the Delivery Plans and Going-Forward Plans, and such other activities that, from time to time, the
Alliance Managers decide are necessary or useful for the success of the Joint Participation Compounds.

 

4.2.3        Huahai or any
of its sublicensees under the License Agreement shall not make any request for, or filing or declaration of, or undertake any action
involving, any interference, opposition, challenges as to ownership, assertions of invalidity or unenforceability, revocation or
reexamination relating to any Oncobiologics’ Patent Rights before any court, agency or other tribunal.

 

4.3         Conduct of
Oncobiologics. In addition to the foregoing, Oncobiologics shall:

 

4.3.1       use Commercially
Reasonable Efforts to achieve the target completion date and perform the work set out in the Delivery Plans efficiently and expeditiously;

 

4.3.2       conduct its
activities with respect to the Joint Participation Compound(s) in a good scientific manner, and in compliance in all material respects
with all requirements of Applicable Laws in the Developed Countries and all other requirements of any applicable GMP, GLP or GCP;

 

4.3.3       maintain records,
in sufficient detail and in a good scientific manner, which shall be complete and accurate and shall fully and properly reflect
all work done with respect to the Joint Participation Compound(s) and results achieved in the form required under all Applicable
Laws in the Developed Countries. Huahai shall have the right, during normal business hours and upon reasonable prior written notice,
to inspect, copy and retain all such

 

    	 	- 10 -	 

     

    

 

records at its own expense,
so long as doing so is not unreasonably disruptive. Huahai shall maintain such records and information contained therein in confidence;
and

 

4.3.4       allow representatives
of Huahai, upon reasonable prior written notice and during normal business hours, to visit Oncobiologics’ facilities where
any activities relating to the Joint Participation Compounds are being conducted, and consult, during such visits and by telephone,
with Oncobiologics’ personnel performing work on the Joint Participation Compounds, so long as such visits and consultations
are not unreasonably disruptive. Huahai shall maintain any information received (whether by observation or otherwise) during such
visit in confidence.

 

		5.	Restricted License Grant.

 

5.1         Grant of
Restricted License to Huahai. Subject to the terms and conditions of this Agreement, Oncobiologics (a) hereby grants to Huahai
and its Affiliates the following exclusive rights and licenses, with the right to grant sublicenses, under the Oncobiologics Technology
and (b) shall grant to Huahai and its Affiliates the following rights and licenses to the In-Licensed Technology pursuant a comparable
arrangement as that set forth in Section 2.2 of the License Agreement, to research, develop, manufacture and use the Joint Participation
Compounds and the Joint Participation Products in order to continue the development and/or commercialization of such Joint Participation
Compounds and Joint Participation Products in the Developed Countries in their respective Fields; provided, however, that
Huahai shall only have the right to use such rights and license in the event that Oncobiologics files a voluntary petition in bankruptcy
or insolvency or if proceedings in involuntary bankruptcy shall be initiated against Oncobiologics (and, in the case of any such
involuntary proceeding, not dismissed within one hundred and twenty (120) days), or in case of the filing by Oncobiologics of any
petition or answer seeking reorganization, readjustment, or rearrangement of the business of Oncobiologics under any law or any
government regulation relating to bankruptcy or insolvency, or in case of the appointment of a receiver for all or substantially
all of the property of Oncobiologics and such appointment is not discharged within one hundred and twenty (120) days, or in case
of the institution by Oncobiologics of any proceedings for the liquidation or winding up of its business, or for the termination
of its corporate charter. Such right shall be exercised, if at all, in lieu of, and not in addition to, exercising any right to
terminate this Agreement in whole or in part pursuant to Section 6.2.

 

		6.	Term And Termination.

 

6.1         Term.
This Agreement shall become effective as of the Effective Date and, unless earlier terminated pursuant to the other provisions
of this Section 6, shall continue on a Joint Participation Compound-by-Joint Participation Compound basis, until the expiration
of the Term with respect to such Joint Participation Compound.

 

6.2         Termination
upon Material Breach. Either Party may, without prejudice to any other rights or remedies conferred on it by this Agreement
or available to at law or in equity, terminate this Agreement in its entirety, or with respect to a particular Joint Participation
Compound(s) and the Joint Participation Products related thereto, in the event the other Party breaches any of its material obligations
under this Agreement with respect to this Agreement in

 

    	 	- 11 -	 

     

    

 

its entirety or to such
Joint Participation Compound(s) / Joint Participation Products and such breach or default shall have continued for sixty (60) days
after written notice thereof was provided to the breaching Party by the non-breaching Party (or, if such breach or default cannot
be cured within such 60-day period, if the breaching Party does not commence and diligently continue actions to cure such breach
or default during such 60-day period). For clarity, such material obligations may apply to the performance of either: (a) this
Agreement in its entirety, in which case this provision shall apply to the entire Agreement, or (b) a specific Joint Participation
Compound / Joint Participation Product, in which case this provision shall apply only to such affected Joint Participation Compound
and related Joint Participation Products.

 

6.3         Mutual Termination.
With respect to a Joint Participation Compound and the Joint Participation Product containing or comprising such Joint Participation
Compound, the Parties shall have the right to mutually agree to immediately terminate the Delivery Plan and this Agreement with
respect to the subject Joint Participation Compound and the Joint Participation Product containing or comprising such Joint Participation
Compound by written consent of both Parties; provided, that, the Parties engage in good faith discussions regarding such
possible termination and the effects of such termination.

 

6.4         Effect of
Mutual Termination.

 

6.4.1       In the event
that the Parties mutually agree to terminate this Agreement pursuant to Section 6.3, the Parties shall negotiation in good faith
in order to reach agreement on a termination agreement for the Terminated Product(s) (each, a “Termination Agreement”).
Any Termination Agreement shall set forth the rights and obligations of each Party arising out of or in connection with such mutual
termination.

 

6.4.2       Each Party shall
promptly return to the other Party all data and materials in its possession or control containing or comprising any Confidential
Information of the other Party relating to such Terminated Product(s); provided, that, each Party shall have the right to
retain one copy of such Confidential Information for archival purposes only.

 

6.4.3       In the event
this Agreement is terminated pursuant to Section 6.3, Oncobiologics shall use Commercially Reasonable Efforts in order to present
Huahai with a compound to replace the Biologic Compound that was the subject of the termination, and Huahai shall decide whether
or not to further develop such compound (a “Replacement Compound”); provided that, Huahai agrees to fund
the development of such Replacement Compound. Thereafter, such Replacement Compound shall be deemed to be a Joint Participation
Compound for purposes of this Agreement. Except if such Terminated Product is ONS-3010 and such termination occurs prior to the
achievement of the second milestone event set forth in Section 2.6, then the $5,000,000 payment received upon execution of this
Agreement shall be used towards the next Joint Participation Compound’s milestone.

 

6.5         Effect of
Expiration of the Term. Following the expiration of this Agreement with respect to a Terminated Product pursuant to Section
6.1, each Party shall have the rights and be subject to the terms of any Third Party License Agreement, Ancillary Agreement and/or
Collaboration Agreement applicable thereto.

 

    	 	- 12 -	 

     

    

 

6.6         Effect Upon
Termination for Cause.

 

6.6.1       If this Agreement
is terminated by Oncobiologics pursuant to Section 6.2, either in its entirety or with respect to a particular Terminated Product,
as the case may be, in addition to any other remedies available to Oncobiologics at law or in equity:

 

(a)        The right of
data by Oncobiologics to Huahai under Section 3.0 with respect to such Terminated Product(s) shall terminate;

 

(b)        At Huahai’s
expense, each Party shall promptly return to the other Party all relevant records and materials in such Party’s possession
or Control containing the other Party’s Confidential Information, if any, relating to such Terminated Product(s) (provided
that each Party may keep one copy of such Confidential Information of the other Party for archival purposes only);

 

(c)        Oncobiologics
shall retain all rights to such Terminated Product(s);

 

(d)        Huahai shall
pay to Oncobiologics all outstanding Huahai Funding due and owing, if any, with respect to such Terminated Product(s) pursuant
to this Agreement prior to termination;

 

(e)        a financial
reconciliation, if applicable, of the then-current development programs underway with respect to the Terminated Product(s) shall
be performed as of the date of such termination; and

 

(f)         Oncobiologics
shall assume all responsibility for any Third Party IP in-licensed.

 

6.6.2       If this Agreement
is terminated by Huahai pursuant to Section 6.2, either in its entirety or with respect to a particular Terminated Product, in
addition to any other remedies available to Huahai at law or in equity:

 

(a)        at Oncobiologics’
expense, each Party shall promptly return to the other Party all relevant records and materials in such Party’s possession
or Control containing the other Party’s Confidential Information, if any, relating to such Terminated Product(s) (provided
that each Party may keep one copy of such Confidential Information of the other Party for archival purposes only);

 

(b)        a financial
reconciliation, if applicable, of the then-current development programs underway with respect to such Terminated Product(s) shall
be performed as of the date of such termination;

 

(c)        Oncobiologics
shall repay to Huahai the amount of Huahai Funding, if any, paid by Huahai to Oncobiologics with respect to such Terminated Product(s)
pursuant to this Agreement prior to termination within thirty (30) days after the effective date of such termination;

 

    	 	- 13 -	 

     

    

 

(d)        Oncobiologics
shall retain all rights to such Terminated Product(s); provided, that, if such termination occurs after the Huahai Funding
of such Terminated Joint Participation Compound(s) has been made, (i) Oncobiologics shall repay to Huahai the amount of Huahai
Funding, if any, paid by Huahai to Oncobiologics with respect to such Terminated Product(s) pursuant to this Agreement prior to
termination; and (ii) Oncobiologics shall pay to Huahai: (A) a royalty of six percent (6%) of Net Sales by Oncobiologics and/or
its Affiliates of the relevant terminated Joint Participation Product(s), and (B) twenty-five (25%) of revenue Oncobiologics receives
from a sublicensee for commercial sales of such Terminated Product(s) in the Developed Countries until Huahai receives aggregate
payments under clauses (A) and (B) totaling ten (10) times the amount of the Huahai Funding for such Joint Participation Compound(s).
Notwithstanding the foregoing, in the event of Huahai’s failure to make any payment required under this Agreement, Oncobiologics
shall have a right to set off any such amount in full prior to making any such payment; and

 

(e)        Oncobiologics
shall assume all responsibility for any Third Party IP in-licensed.

 

6.7         Accrued Rights;
Surviving Obligations.

 

6.7.1       Termination,
relinquishment or expiration of this Agreement for any reason shall be without prejudice to any rights that shall have accrued
to the benefit of any Party prior to such termination, relinquishment or expiration including any payment obligations and any and
all damages arising from any breach under this Agreement. Such termination, relinquishment or expiration shall not relieve any
Party from obligations which are expressly indicated to survive termination of this Agreement. Further, such termination, relinquishment
or expiration shall not affect any Third Party License Agreement or Ancillary Agreement entered into prior to the date of such
termination, relinquishment or expiration, each of which shall expire or terminate in accordance with its own terms.

 

6.7.2       Except as specifically
provided in this Section 6, the expiration or termination of this Agreement in its entirety or with respect to any Joint Participation
Compound(s) and related Joint Participation Product(s), shall not affect any royalty or other obligations under any Third Party
License Agreement, Ancillary Agreement and/or Collaboration Agreement applicable thereto, which by its terms would otherwise continue
except for such expiration or termination and the obligation to pay such royalty shall continue for its full term regardless of
such expiration or termination.

 

6.7.3       The arbitration
provisions set forth in the Alliance Agreement shall continue to apply to all disputes between the Parties arising before or after
such expiration or termination if provided for in accordance with the terms of this Agreement.

 

6.7.4       All of the Parties’
rights and obligations under, and/or the provisions contained in, Sections 1, 3.1, 6.4, and 6.6 shall survive the expiration, termination
or relinquishment of this Agreement.

 

    	 	- 14 -	 

     

    

 

6.8         Section 365(n)
of the Bankruptcy Code.

 

6.8.1       All rights and
licenses granted under or pursuant to this Agreement are and shall otherwise be deemed to be, for purposes of Section 365(n) of
Title 11, of the United States Code (the “Bankruptcy Code”) and any similar law or regulation in any other country,
licenses of rights to “intellectual property” as defined in Section 101(56) of the Bankruptcy Code. The Parties shall
retain and may fully exercise all of their respective rights and elections under the Bankruptcy Code. The Parties agree that all
intellectual property rights licensed hereunder are part of the “intellectual property” as defined under the Bankruptcy
Code subject to the protections afforded the non-terminating Party thereunder, and any similar law or regulation in any other country.
Upon the bankruptcy of any Party, the non-bankrupt Party shall further be entitled to a complete duplicate of, or complete access
to, any such intellectual property, and such, if not already in its possession, shall be promptly delivered to the non-bankrupt
Party, unless the bankrupt Party elects to continue, and continues, to perform all of its obligations under this Agreement.

 

[Signature
Page Follows]

 

    	 	- 15 -	 

     

    

 

In
Witness Whereof, the Parties have caused this Joint Participation Agreement to be executed and delivered by their respective
duly authorized officers as of the day and year first above written.

 

	ONCOBIOLOGICS, INC. 	 	ZHEJIANG HUAHAI 
	 	 	PHARMACEUTICAL CO., LTD.
	 	 	 
	By:	/s/ Pankaj Mohan, Ph.D., MBA	 	By:	/s/ Baohua Chen
	 	 	 
	Name:  Pankaj Mohan, Ph.D., MBA	 	Name:  Baohua Chen
	 	 	 
	Title:  Chief Executive Officer	 	Title:  General Manager
	 	 	 
	 	 	By:	/s/ Jun Du
	 	 	 
	 	 	Name:  Jun Du
	 	 	 
	 	 	Title  Vice Chairman and CEO, Huahai US, Inc.

 

SIGNATURE PAGE TO JOINT PARTICIPATION AGREEMENT

 

    	 	 	 

     

    

 

Execution
Version

 

AMENDMENT NO.1 AND
MUTUAL TERMINATION AGREEMENT

RE: JOINT PARTICIPATION
AGREEMENT

 

THIS Amendment
No. 1 and Mutual Termination Agreement Re: Joint Participation Agreement (this “Amendment No. 1 & Termination
Agreement”) is dated as of December 23, 2014 (the “Amendment Effective Date”) by and between Oncobiologics,
Inc., a corporation organized under the laws of the State of New Jersey, U.S. having its place of business at 7 Clarke
Drive, Cranbury NJ 08512 (“Oncobiologics”), and Zhejiang Huahai Pharmaceutical
Co., Ltd. a limited liability company organized under the laws of the People’s Republic of China having its place
of business at Xunqiao, Linhai City, Zhejiang Province, PRC 317024 (“Huahai”) Oncobiologics and Huahai may be
referred to herein as a “Party” or, collectively, as “Parties.”

 

RECITALS:

 

Whereas,
on May 6, 2013, the Parties entered into: (i) that certain Strategic Alliance Agreement (the “Alliance Agreement”);
(ii) that certain Joint Participation Agreement (the “Joint Participation Agreement”); (iii) that certain Co-Development
and License Agreement (the “License Agreement”); and (iv) that certain Agreement for Commitment to Enter Cooperative
JV Contract (the “Commitment Agreement”) (collectively, the “2013 Agreements”); and

 

Whereas,
the Parties desire to modify their relationship under the 2013 Agreements, and to do so, as of the Effective Date, the Parties
are entering into: (i) that certain Mutual Termination Agreement Re: Commitment to Enter Cooperative N Contract (the “Termination
Agreement”); (ii) that certain Amendment No. 1 and Termination Agreement Re: Co-Development and License Agreement (the
“Amendment to License Agreement”); and (iii) this Amendment No. 1 and Termination Agreement Re: Joint Participation
Agreement (the “Amendment to Joint Participation Agreement”) to effectuate such modifications to the 2013 Agreements;
and

 

Whereas,
under the Joint Participation Agreement the Parties intended that Huahai would provide milestone-based funding in support of development
of four Joint Participation Compounds in exchange for a percentage of the net operating profits generated by the pharmaceutical
products containing or comprising such Joint Participation Compounds in the Developed Countries; and

 

Whereas,
Oncobiologics and Huahai deem it to be in their mutual best interest to terminate the Joint Participation Agreement with respect
to three of the Joint Participation Compounds and to amend certain of the terms and conditions of the Joint Participation Agreement
as it applies to the remaining Joint Participation Compound.

 

Now,
Therefore, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the Parties agree as follows:

 

    	 	2.	 

     

    

 

Execution
Version

 

1.           Defined
Terms. Capitalized terms used in this Amendment No. 1 & Termination Agreement that are not defined in this Amendment No.
1 & Termination Agreement shall have the meanings assigned to such terms in the Joint Participation Agreement.

 

		2.	Termination.

 

2.1         Pursuant to
Section 4.3, the Parties hereby mutually agree that the Joint Participation Agreement is hereby terminated with respect to those
Joint Participation Compounds referred to on Schedule 1.1.11 as ONS-1045, ONS-1040 and ONS-1050 (the “Terminated
Products”) as of the Amendment Effective Date.

 

2.2         This Paragraph
2 of this Amendment No. 1 & Termination Agreement sets forth the terms of such termination pursuant to Section 4.4.1, and are
in lieu of Sections 4.4.2 and 4.4.3 of the Joint Participation Agreement. The Parties agree that the effect of such termination
shall be as follows:

 

(a)          the license granted
by Oncobiologics to Huahai under Section 3 of the Joint Participation Agreement with respect to such Terminated Products shall
terminate;

 

(b)          each Party shall
promptly return to the other Party all relevant records and materials in such Party’s possession or Control containing the
other Party’s Confidential Information, if any, relating to such Terminated Products (provided that each Party may keep one
copy of such Confidential Information of the other Party for archival purposes only);

 

(c)          all of each Party’s
obligations under the Joint Participation Agreement with respect to such Terminated Products shall cease as of the Amendment Effective
Date;

 

(d)          Oncobiologics
shall retain all rights to such Terminated Products in the Territory; and

 

(e)          Oncobiologics
shall assume all responsibility for any Third Party IP in-licensed with respect to such Terminated Products.

 

2.3         Oncobiologics
and Huahai agree that, as of the Amendment Effective Date, there are no outstanding costs and expenses with respect to any Joint
Participation Compound or Product that are due to be paid from Huahai to Oncobiologics.

 

2.4         Huahai hereby
represents and warrants to Oncobiologics that, as of the Amendment Effective Date, Huahai does not own or hold any right, title
or interest (including any Value Ownership interest) in any of the Terminated Products in the Territory.

 

		3.	Amendments to Joint Participation Agreement.

 

3.1         Sections 4.4.2
and 4.4.3 are hereby deleted in their entirety and replaced by the provisions of Paragraph 2 of this Amendment No. 1 & Termination
Agreement.

 

3.2         Schedule
1.1.11 to the Joint Participation Agreement is hereby replaced in its entirety with new Schedule 1.1.11 attached.

 

    	 	3.	 

     

    

 

Execution
Version

 

4.           Ongoing
Development of ONS-3010. The Parties may decide to continue to jointly develop the Joint Participation Compound referred to
as ONS-3010 (“ONS-3010”) through Regulatory Approval for such Joint Participation Product in the Developed Countries.
In such event, the Parties intend to do so pursuant to the creation of an entity joint venture as described within Section 2.5
of the Joint Participation Agreement; provided, however, that the Parties shall be entitled to a percentage interest in
such joint venture entity equal to such Party’s Value Ownership interest at the time such joint venture entity is established
(e.g., as of the Completion of a Phase-III Ready Package for ONS-3010, 51% for Huahai and 49% for Oncobiologics). Oncobiologics
shall continue to develop the ONS-3010 asset and in the event of formation of the Joint Venture, any further development costs
incurred by Oncobiologics pursuant to the Joint Participating Agreement that are justified by the Joint Steering Committee shall
be reimbursed by Huahai to Oncobiologics in proportion to Huahai’s Value Ownership of 51%.

 

		5.	Oncobiologics Repurchase Option.

 

5.1         At any time
after the Amendment Effective Date and until the Parties establish an entity joint venture as provided in Paragraph 4 above, or
one calendar year after the Amendment effective date, whichever is earlier (the “Option Period”), Oncobiologics
shall have the option to acquire all rights to the Joint Participation Product from Huahai (the “Option”). If
Oncobiologics elects to exercise the Option, it shall provide written notice to Huahai during the Option Period. Upon such exercise
of the Option:

 

(a)          the Joint Participation
Agreement shall terminate in its entirety;

 

(b)          the license granted
by Oncobiologics to Huahai under Section 3 of the Joint Participation Agreement with respect to such Joint Participation Product
shall terminate;

 

(c)          each Party shall
promptly return to the other Party all relevant records and materials in such Party’s possession or Control containing the
other Party’s Confidential Information, if any, relating to such Joint Participation Product (unless such Party continues
to have the right to such Confidential Information pursuant to the License Agreement) (provided that each Party may keep one copy
of such Confidential Information of the other Party for archival purposes only);

 

(d)          all of each Party’s
obligations under the Joint Participation Agreement with respect to such Joint Participation Product shall cease as of the exercise
date of such option, except for those set forth in this Paragraph 5;

 

(e)          Oncobiologics
shall acquire all right, title and interest in and to such Joint Participation Compound and such Joint Participation Product, including
Huahai’s Value Ownership to such Joint Participation Compound and such Joint Participation Product; and

 

(f)           Oncobiologics
shall assume all responsibility for any Third Party IP in-licensed with respect to such Joint Participation Product.

 

5.2         In consideration
for the exercise of the Option, Oncobiologics shall pay to Huahai a total of Twenty-Eight Million Dollars (US $28,000,000), as
follows: (i) Oncobiologics shall pay to Huahai the amount of Eleven Million Dollars (US $11,000,000) within seven (7) business

 

    	 	4.	 

     

    

 

Execution
Version

 

days after the written
exercise of the Option; and (ii) Oncobiologics shall pay to Huahai the balance of Seventeen Million Dollars (US $17,000,000) by
paying Four Million Two Hundred and Fifty Thousand Dollars (US $4,250,000) in each of four installments at three, six, nine and
twelve months following the Option’s exercise date, thus making aggregate payments totaling Seventeen Million Dollars (US
$17,000,000) within the twelve (12) month period following the written Option exercise date.

 

5.3         If any installment
payment due Huahai is not made as and when due pursuant to Section 5.2, Huahai shall provide written notice (“Default
Notice”) to Oncobiologics of the failure to make such payment by calling an emergency Joint Steering Committee Meeting
within two (2) business days of receipt of the Default Notice, whereby attendance at such Joint Steering Committee shall be mandatory
by both parties. If Oncobiologics fails to attend the emergency Joint Steering Committee meeting, Huahai shall send a recorded
delivery of the Default Notice. If any such failure to make payment following the emergency Joint Steering Committee meeting or
receipt of the recorded Default Notice by Oncobiologics is not cured within thirty (30) business days (the “Cure Period”)
after receipt of such written notice, in addition to all other remedies available to Huahai in equity or at law, Huahai shall have
the right to revoke the Repurchase Option for ONS-3010 by sending written notice to Oncobiologics of Huahai’s exercise of
such right. Immediately upon the expiration of the Cure Period, the revocation shall be effective, and Huahai will retain the Value
Ownership Huahai had to such Joint Participation Product immediately prior to Oncobiologics’ exercise of the Option.

 

		6.	Miscellaneous.

 

6.1         Except as expressly
amended by this Amendment No. 1 & Termination Agreement, all terms and conditions of the Joint Participation Agreement shall
remain unchanged.

 

6.2         This Amendment
No. 1 & Termination Agreement may be executed in two or more counterparts, each of which will be deemed an original, but all
of which together will constitute one and the same instrument.

 

6.3         Signatures to
this Amendment No. 1 & Termination Agreement transmitted by facsimile, by email in “portable document format” (“.pdf”),
or by any other electronic means intended to preserve the original graphic and pictorial appearance of this Amendment No. 1 &
Termination Agreement shall have the same effect as physical delivery of the paper document bearing original signature.

 

[Signature
Page Follows)

 

    	 	5.	 

     

    

 

Execution
Version

 

In
Witness Whereof, the Parties have caused this Amendment No. 1 & Mutual Termination Agreement Re: Joint Participation
Agreement to be executed and delivered by their respective duly authorized officers as of the day and year first above written.

 

	ONCOBIOLOGICS, INC.	 	ZHEJIANG HUAHAI 
	 	 	PHARMACEUTICAL CO., LTD.
	 	 	 
	By:	/s/ Pankaj Mohan 	 	By:	/s/ Jun Du 
	 	 	 
	Name:  Pankaj Mohan, Ph.D., MBA 	 	Name:  Jun Du
	 	 	 
	Title: Chief Executive Officer	 	Title:  Vice Chairman of Zhejiang Huahai
	 	 	Pharmaceutical and CEO of Huahai US Inc.

 

    	 	6.EX-10.25

 Exhibit 10.25 

THIRD AMENDMENT TO CREDIT AGREEMENT 

This Third Amendment (this “Amendment”) to the Credit Agreement dated January 22, 2015 among Patriot National, Inc., a
Delaware corporation (“Borrower”), the Lenders (as defined therein) and BMO Harris Bank N.A., as administrative agent (as previously amended, supplemented or otherwise modified, the “Credit Agreement”) is dated as
of December 23, 2015. 
 1. Definitions. Capitalized terms used and not defined in this Amendment have the
respective meanings assigned to them in the Credit Agreement. 
 2. Amendments to the Credit Agreement. As of
the Third Amendment Effective Date (defined below), the Credit Agreement is hereby amended as follows: 
 (a) In
Section 1.1, the following new defined terms shall be inserted in proper alphabetical order: 
 “Stock Back-to-Back Agreement”
means the Amended and Restated Back-to-Back Agreement dated as of December 23, 2015 between the Borrower and Steven M. Mariano. 

“Warrants” means the warrants dated as of December 23, 2015 between the Borrower and CVI Investments, Inc., between the Borrower
and Hudson Bay Master Fund Ltd and between the Borrower and Alto Opportunity Master Fund, SPC. 
 (b) Section 11.5 is
amended by inserting the following new paragraphs (g) and (h) at the end thereof: 
 (g) Restricted Payments made pursuant to the
Stock Back-to-Back Agreement with the proceeds of funds, or with an amount equal to the value of stock (in the case of a cashless exercise) received by the Borrower in connection with the issuance of Equity Interests pursuant to the Warrants; and

 (h) Restricted Payments made by the Borrower to repurchase Equity Interests issued by the Borrower under the Securities Purchase Agreement
dated as of December 13, 2015 among the Borrower, Steven M. Mariano and the purchasers named therein pursuant to those certain Rescission and Exchange Agreements between the Borrower and CVI Investments, Inc., between the Borrower and Hudson
Bay Master Fund Ltd. and between the Borrower and Alto Opportunity Master Fund, SPC not to exceed $19,999,992. 
 (c) Section 11.7
is amended in its entirety to read as follows: 
 11.7 Transactions with Affiliates. The Borrower will not, and will not permit any of its
Subsidiaries to, (i) sell, lease or otherwise transfer any property or assets to, or purchase, lease or otherwise acquire any property 

 or assets from, or otherwise engage in any other transactions with, any of its Affiliates or
(ii) enter into any transactions with a shareholder (regardless of whether such shareholder is an Affiliate) agreeing to repurchase Equity Interest of the Borrower from such shareholder or sell such shareholder’s Equity Interests in
connection with the issuance of Equity Interests by the Borrower, except: 
 (a) employment and severance arrangements
entered into by the Borrower or its Subsidiaries in the ordinary course of business in an aggregate amount not to exceed $1,500,000 in any Fiscal Year; 

(b) the payment of customary fees and reimbursement of out of pocket expenses of directors of the Borrower or its Subsidiaries
in an aggregate amount not to exceed $1,000,000 in any Fiscal Year; 
 (c) transactions between or among the Borrower and any
Guarantor not involving any other Affiliates; 
 (d) the WCE Capital Lease; 

(e) any Fundamental Change permitted by Section 11.3 and Investment permitted by Sections 11.4(a), (d), (f), (g) and
(j) and any Restricted Payment permitted by Section 11.5(c); and 
 (f) transactions contemplated by the Warrants
and Stock Back-to-Back Agreement. 
 (d) Section 11.13 is amended in its entirety to read as follows: 

11.13 Modification of Certain Documents. 

(a) The Borrower shall not, nor shall it permit any of its Subsidiaries to, agree to any material amendment, restatement,
supplement or other modification to, or waiver of, any of its Organizational Documents in any manner materially adverse to the Lenders when taken as a whole (as determined by the Borrower in good faith) without in each case obtaining the prior
written consent of Required Lenders to such amendment, restatement, supplement or other modification or waiver. 
 (b) The
Borrower shall not agree to (i) any amendment, restatement supplement or other modification to, or waiver of, the Stock Back-to-Back Agreement or (ii) any amendment, restatement supplement or other modification to, or waiver of, the
Warrants which would waive or modify the obligations of Steven M. Mariano under the Stock Back-to-Back Agreement, without in each case obtaining the prior written consent of Required Lenders to such amendment, restatement, supplement or other
modification or waiver. 

  
 2 

 3. Representations and Warranties. Each Loan Party represents and warrants
to the Administrative Agent and the Lenders that: 
 (a) Authorization; No Conflict. The execution, delivery
and performance by such Loan Party of this Amendment, and the consummation of the transactions contemplated hereby, (i) are within such Loan Party’s limited liability company, limited partnership or corporate powers, as applicable,
(ii) have been duly authorized by all necessary limited liability company, limited partnership or corporate action, as applicable, (iii) do not contravene (x) such Loan Party’s organizational documents or (y) any law,
regulation or contractual restriction binding on or affecting such Loan Party and (iv) will not result in or require the creation or imposition of any Lien upon or with respect to any of the properties of such Loan Party or any of its
Subsidiaries. 
 (b) Governmental Approvals. No authorization or approval or other action by, and no notice to or
filing with, any Governmental Authority or regulatory body or any other third party is required for the due execution, delivery and performance by such Loan Party of this Amendment. 

(c) Enforceability. This Amendment has been duly executed and delivered by such Loan Party and is the legal, valid and
binding obligation of such Loan Party, enforceable against such Loan Party in accordance with its terms, except as affected by (i) applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and other similar laws
relating to or affecting the enforcement of creditors’ rights generally and/or (ii) general principles of equity (regardless of whether such enforcement is considered in a proceeding at law or in equity). 

(d) Representations and Warranties. On the date hereof, each representation and warranty set forth in Section 9 of
the Credit Agreement, as amended by this Amendment, is true and correct in all material respects on and as of the date hereof with the same effect as if made on and as of the date hereof (except to the extent any such representation or warranty is
expressly stated to have been made as of a specific date, in which case such representation or warranty was true and correct as of such date). 

(e) No Default. No Event of Default or Unmatured Event of Default exists or will exist after giving effect to this
Amendment. 
 4. Waiver. The Events of Default which occurred under Sections 11.5 and 11.7 of the Credit
Agreement as a result of the Borrower entering into the Stock Back-to-Back Agreement dated as of December 13, 2015 between the Borrower and Steven M. Mariano are hereby waived. 

5. Effectiveness. This Amendment and the waiver contained in Section 4 shall become effective on the date (the
“Third Amendment Effective Date”) when the Administrative Agent has received each of the following, in form and substance satisfactory to the Administrative Agent: 

(a) counterparts of this Amendment signed by each Loan Party, the Administrative Agent and the Required Lenders; 

  
 3 

 (b) a certified copy of the Stock Back-to-Back Agreement and the Warrants and
evidence that concurrently with the effectiveness of this Amendment, the Borrower will execute the Stock Back-to-Back Agreement and the Warrants; 

(c) certified copies of all documents evidencing any necessary corporate (or other similar) action, and any material
third-party consents and governmental approvals (if any) required for the execution, delivery and performance by each Loan Party of this Amendment; 

(d) certified copies of resolutions of the Governing Body of the Borrower authorizing or ratifying the execution, delivery
and performance by the Borrower of this Amendment; 
 (e) certification that since December 31, 2014, there has been no
event that constitutes or would reasonably be expected to have a Material Adverse Effect; 
 (f) payment of an amendment fee
equal to 15 basis points on the Revolving Commitment and the Term Loans of each Lender executing this Amendment; and 
 (g)
such other documents as the Administrative Agent or any Lender may reasonably request. 
  

	6.	Continuing Effectiveness, etc. 

 (a) Except to the extent
expressly set forth herein, all of the terms and conditions of the Credit Agreement and the other Loan Documents remain unchanged and in full force and effect. Each Loan Party affirms that after giving effect to this Amendment, the Credit Agreement,
as modified hereby, and each other Loan Document to which any Loan Party is a party will remain in full force and effect and will continue to constitute a legal, valid and binding obligation of such Loan Party, enforceable against such Loan Party in
accordance with its terms except insofar as such enforcement may be limited by Debtor Relief Laws. 
 (b) Upon the
effectiveness hereof, all references to the Credit Agreement set forth in any other agreement or instrument shall, unless otherwise specifically provided, be references to the Credit Agreement as amended hereby. 

7. Miscellaneous. The provisions of Sections 1.2, 15.6(a), 15.7, 15.9, 15.10, 15.11, 15.12, 15.16 and 15.17 of the
Credit Agreement are incorporated herein by reference, mutatis mutandis.  
 [Signature Page Follows] 

  
 4 

 IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first written
above. 
  

			
	PATRIOT NATIONAL, INC.
		
	By:	 	/s/ Steven M. Mariano
	Name: Steven M. Mariano
	Title: CEO

  

			
	PATRIOT SERVICES, INC.
		
	By:	 	/s/ Steven M. Mariano
	Name: Steven M. Mariano
	Title: CEO

  

			
	CONTEGO SERVICES GROUP, LLC
	 By: Patriot Services, Inc., its Manager
		
	By:	 	/s/ Steven M. Mariano
	Name: Steven M. Mariano
	Title: CEO

  

			
	CONTEGO INVESTIGATIVE SERVICES, INC.
		
	By:	 	/s/ Beth Crews
	Name: Beth Crews
	Title: Secretary

  

			
	PATRIOT RECOVERY SERVICES, INC.
		
	By:	 	/s/ Beth Crews
	Name: Beth Crews
	Title: Secretary

  

			
	PATRIOT TECHNOLOGY SOLUTIONS, INC.
		
	By:	 	/s/ Kimberly Davis
	Name: Kimberly Davis
	Title: Vice President

  
 S-1 

 
			
	PATRIOT CAPTIVE MANAGEMENT, INC.
		
	By:	 	/s/ Gex Richardson
	Name: Gex Richardson
	Title: Secretary

  

			
	PATRIOT RISK SERVICES, INC.
		
	By:	 	/s/ Beth Crews
	Name: Beth Crews
	Title: Secretary

  

			
	PATRIOT CLAIM SERVICES, INC.
		
	By:	 	/s/ Beth Crews
	Name: Beth Crews
	Title: Secretary

  

			
	PATRIOT CARE, INC.
		
	By:	 	/s/ Beth Crews
	Name: Beth Crews
	Title: Secretary

  

			
	PATRIOT CARE HOLDINGS, INC.
		
	By:	 	/s/ Beth Crews
	Name: Beth Crews
	Title: Secretary

  

			
	PATRIOT CARE SERVICES, INC.
		
	By:	 	/s/ Beth Crews
	Name: Beth Crews
	Title: Secretary

  
 S-2 

 
			
	PATRIOT CARE MANAGEMENT, INC.
		
	By:	 	/s/ Beth Crews
	Name: Beth Crews
	Title: Secretary

  

			
	FORZA LIEN, INC.
		
	By:	 	/s/ Beth Crews
	Name: Beth Crews
	Title: Secretary

  

			
	PATRIOT UNDERWRITERS, INC.
		
	By:	 	/s/ Gex Richardson
	Name: Gex Richardson
	Title: Secretary

  

			
	VIKARAN TECHNOLOGY SOLUTIONS, INC.
		
	By:	 	/s/ Kimberly Davis
	Name: Kimberly Davis
	Title: Vice President

  

			
	TRIGEN INSURANCE SOLUTIONS, INC.
		
	By:	 	/s/ Gex Richardson
	Name: Gex Richardson
	Title: Secretary

  

			
	PATRIOT LEGAL SERVICES, INC.
		
	By:	 	/s/ Kimberly Davis
	Name: Kimberly Davis
	Title: Vice President

  
 S-3 

 
			
	CORPORATE CLAIMS MANAGEMENT, INC.
		
	By:	 	/s/ Beth Crews
	Name: Beth Crews
	Title: Secretary

  

			
	PATRIOT BENEFITS ADMINISTRATORS, INC.
		
	By:	 	/s/ Beth Crews
	Name: Beth Crews
	Title: Secretary

  

			
	TRIGEN HOSPITALITY GROUP, INC.
		
	By:	 	/s/ Gex Richardson
	Name: Gex Richardson
	Title: Secretary

  

			
	INSURELINX, INC.
		
	By:	 	/s/ Kimberly Davis
	Name: Kimberly Davis
	Title: Vice President

  

			
	CWIBENEFITS, INC.
		
	By:	 	/s/ Beth Crews
	Name: Beth Crews
	Title: Secretary

  

			
	GLOBAL HR RESEARCH, INC.
		
	By:	 	/s/ Kimberly Davis
	Name: Kimberly Davis
	Title: Vice President

  
 S-4 

 
			
	PATRIOT RISK CONSULTANTS, INC.
		
	By:	 	/s/ Gex Richardson
	Name: Gex Richardson
	Title: Secretary

  

			
	COMPLINX INSURANCE AGENCY, INC.
		
	By:	 	/s/ Gex Richardson
	Name: Gex Richardson
	Title: Secretary

  

							
	CONTEGO RECOVERY, LLC
		
	By:	 	Contego Services Group, LLC, its Manager
			
		 	By:	 	Patriot Services, Inc.
				
		 		 	By:	 	/s/ Steven M. Mariano
		 		 	Name:	 	Steven M. Mariano
		 		 	Title:	 	CEO

  

					
	DECISION UR, LLC
		
	By:	 	Patriot Technology Solutions, Inc., its Manager
			
		 	By:	 	/s/ Kimberly Davis
		 	Name:	 	Kimberly Davis
		 	Title:	 	Vice President

  
 S-5 

 
			
	BMO HARRIS BANK N.A., as Administrative Agent and a Lender
		
	By:	 	/s/ Joan Murphy
	Name: Joan Murphy
	Title: Director

  
 S-6 

 
			
	FIFTH THIRD BANK
		
	By:	 	/s/ Gary Ladolcetta
	Name: Gary Ladolcetta
	Title: Senior Vice President

  
 S-7 

 
			
	CITY NATIONAL BANK OF FLORIDA
		
	By:	 	/s/ Jeff Watts
	Name: Jeff Watts
	Title: Senior Vice President

  
 S-8 

 
			
	THE PRIVATEBANK AND TRUST COMPANY
		
	By:	 	/s/ Andrew C. Haak
	Name: Andrew C. Haak
	Title: Managing Director

  
 S-9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00253-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00253-of-00352.parquet"}]]