Document:

EX-10.7

 Exhibit 10.7 

CONFIDENTIAL TREATMENT REQUESTED 

Collaboration Research and Technology Licensing Agreement 

This Definitive Collaboration Research and Technology Licensing Agreement (this “Agreement”) is effective as of May 31, 2011 (the
“Effective Date”), and is entered into by and between 
 Pieris AG, having its office at Lise-Meitner Str. 30, 85354
Freising-Weihenstephan, Germany (“Pieris”), and 
 Daiichi Sankyo Company Limited, having its principal place of business at 3-5-1
Nihonbashi-honcho, Chuo-ku, Tokyo, 103-8426 Japan (“DS”). 
 Pieris and DS are referred to herein individually as a
“Party”, and collectively “Parties”. 
 RECITALS 

WHEREAS, Pieris and DS desire to carry out certain research collaboration arrangements using Pieris’ Anticalin Technology, and have agreed upon the basic
terms for the collaboration in that certain Collaboration Research and Technology Licensing Agreement (the “Initial Agreement”) executed by the Parties on the Initial Agreement Effective Date (as defined below). 

WHEREAS, according to Section 12 of the Initial Agreement, the Parties agreed to execute a definitive agreement relating to their collaboration within
sixty (60) days of the Initial Agreement Effective Date. 
 WHEREAS, this Agreement constitutes the definitive agreement contemplated by
Section 12 of the Initial Agreement. 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Pieris and DS agree as follows: 
  

	1.	DEFINITIONS 

 “Affiliate” shall mean, with respect to any person or entity, any other
person or entity, which directly or indirectly controls, is controlled by, or is under common control with, such person or entity. A person or entity shall be regarded as in control of another person or entity if it owns, or directly or indirectly
controls, more than fifty percent (50%) of the voting stock or other ownership interest of the other person or entity, or if it directly or indirectly possesses the power to direct or cause the direction of the management and policies of the
other person or entity by any means whatsoever. 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 “Anticalin” means, whether in nucleic acid or protein form, (i) any lipocalin mutein
isolated from an Anticalin Library [***] that [***], or (ii) any lipocalin mutein that, in each case, has been derived (either physically, intellectually or by reverse engineering, in one (1) or more steps) from any lipocalin mutein
referred to in Section (i) of this definition. 
 “Anticalin Library” shall have the meaning set forth in Exhibit B. 

“Anticalin Technology” shall have the meaning set forth in Exhibit B. 

“Background Technology” means (i) any intellectual property and know-how within Pieris’ or DS’ pre-existing technology
existing as of the Initial Agreement Effective Date and which such Party has the right to license to the other Party as provided for herein; and (ii) any improvements to Pieris’ Anticalin Library that has been generated or conceived by
Pieris following the Initial Agreement Effective Date and which Pieris has the right to license to DS as provided for herein. For the avoidance of doubt, as of the Effective Date it is the Parties’ understanding that the Patent Rights listed in
Exhibit C will be the Patent Rights included in the Background Technology relevant for the collaboration under this Agreement. 

“BLA/NDA” shall mean a Biologics License Application, New Drug Application, Product License Application or any similar application for
marketing authorizations submitted to the FDA or any comparable application for marketing authorizations in any other country. 
 “Collaboration
Research” means research and development activities carried out by or on behalf of Pieris and/or DS to identify or generate Project Compounds and/or Licensed Products in accordance with a Project Plan. 

“Commercially Reasonable Efforts” means those efforts consistent with prudent business judgment devoting at least the same degree of
attention and diligence to such efforts that DS devotes to such activities for its own products [***], provided that Commercially Reasonable Efforts shall be deemed not to have been met [***]. For the avoidance of doubt, [***] shall not constitute a
factor to be taken into account in the determination of Commercially Reasonable Efforts. 
 “Confidential Information” is defined in
Section 8.1. 
 “Development Milestone” means the success criteria defined for the Development Milestone payments set forth in
Section 5.6. 
 “DS Foreground Technology” means any Foreground Technology [***]. 

“DS Target” means each of two (2) targets selected by DS and confirmed by Pieris as available for licensing to DS under this Agreement
in accordance with Section 2.1. The first DS Target is listed on Exhibit D. 
  

Portions of the exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and
Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

 “Effective Date” is defined on the cover page of this Agreement. 

“Foreground Technology” means any intellectual property, know-how and data generated or conceived by or on behalf of [***] from the
activities under this Agreement and [***]. 
 “Indication” means ([***]) those indications defined by [***] (e.g. [***]); and all
indications [***] [***] (e.g [***]”) shall be understood to belong to the same one Indication. The current online version of [***]. 
 “Initial
Agreement” is defined in the Preamble of this Agreement. 
 “Initial Agreement Effective Date” shall mean March 31, 2011.

 “Joint Research Committee” or “JRC” means the committee established in accordance with Article 6. 

“Licensed Product” means a product containing a Project Compound, which [***]. 

“Net Sales” shall mean the gross amount billed or invoiced by DS or any of its Affiliates or Sublicensees to third parties throughout the
Territory for sales or other dispositions or transfers for value of Licensed Products less (a) allowances for normal and customary trade, quantity and cash discounts (including discounts imposed by way of wholesaler fees) actually allowed and
taken, (b) transportation, insurance and postage charges, if prepaid by DS or any Affiliate or Sublicensee of DS and included on any such party’s bill or invoice as a separate item, (c) credits, rebates, or returns pursuant to
agreements (including, without limitation, managed care agreements) or government regulations, to the extent any of the foregoing is actually allowed, and (d) sales, use and other consumption taxes incurred, to the extent included on the bill
or invoice as a separate item. 
 “Patent Right” means, with respect to any technology or product, (a) all patent applications
heretofore or hereafter filed or having legal force in any country to the extent and only to the extent they claim or cover such technology or product or the use thereof (b) all patents that have issued or in the future issue from such
applications, including without limitation utility model and design patents and certificates of invention and (c) all divisionals, continuations, continuations-in-part, supplemental protection certificates, re-issues, re-examinations, renewals,
extensions or additions to any such patent applications or patents. 
 “Phase I Clinical Trial” shall mean any human clinical study in any
country designed to evaluate the safety, tolerability and pharmacokinetics effect of a drug in volunteer subjects or patients that would satisfy the requirements of 21 US CFR 312.21(a), or other comparable regulation imposed by the FDA, the EMA, the
MHLW or their foreign counterparts. 
 “Phase II Clinical Trial” shall mean any controlled human clinical study conducted to 

 
 Portions of the exhibit, indicated by the mark “[***],”
were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

 
evaluate the effectiveness of the drug for a particular indication in patients with the disease or condition under study and/or to determine the common short-term side effects and risks
associated with a drug that would satisfy the requirements of 21 US CFR 312.21(b) or other comparable regulation imposed by the FDA, the EMA, the MHLW or their foreign counterparts. 

“Phase III Clinical Trial” shall mean any expanded human clinical study intended to gather additional information about effectiveness and
safety needed to evaluate the overall benefit-risk relationship of a drug for a particular indication that would satisfy the requirements of 21 US CFR 312.21(c) or other comparable regulation imposed by the FDA, the EMA, the MHLW or their
foreign counterparts. 
 “Phase A” means, for each Program relating to a DS Target, the period [***]. 

“Phase B” means, for each Program relating to a DS Target, the period [***]. 

“Pieris Foreground Technology” means any Foreground Technology [***]. 

“Program” shall mean, for each DS Target, the research, development and commercialization activities to be performed by either Party in
relation to such DS Target pursuant to the terms of this Agreement. 
 “Project Compound” means [***] which is conceived, reduced to
practice and/or developed by or on behalf of [***], as well as any fragments or derivatives thereof. 
 “Project Plan” means the research
plan including roles and responsibilities between the Parties for [***] of a Program, which shall contain [***]. 
 “Research License” is
defined in Section 3.1. 
 “Research Milestone” means [***]. 

“Sublicensee” is defined in Section 3.4. 

“Territory” means worldwide. 
 “Valid
Patent Claim” means any claim of an issued, unexpired patent right included in the Pieris Background Technology or the Pieris Foreground Technology that has not been held invalid or unenforceable in a final decision of a court or
administrative authority of competent jurisdiction from which decision no appeal may be taken, and, for those jurisdictions where re-issue, re-examination, disclaimer or similar proceedings are available, which claim has not been disclaimed or
admitted or determined to the invalid or unenforceable through re-issue, re-examination, disclaimer or otherwise. 
  

	2.	INITIATION AND PERFORMANCE OF COLLABORATION RESEARCH 

  

Portions of the exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and
Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

 2.1 Nomination of DS Targets. The Parties agree to collaborate in relation to two (2) DS Targets
pursuant to the terms and conditions of this Agreement. The first DS Target is listed on Exhibit D. The second DS Target shall be nominated [***], but in any event [***]. Provided that such second DS Target proposed by DS is not the
subject matter of (i) [***] or (ii) [***], Pieris shall confirm that such nominated second DS Target is available for licensing to DS under this Agreement within [***] days of Pieris’ receipt of DS’ nomination notice.
Notwithstanding the foregoing, in case that any second DS Target nominated by DS is not available for licensing to DS because of the abovementioned reason, DS may nominate the second DS Target [***], provided that DS makes a substitute
nomination within [***] days of DS after any written response by Pieris that the nominated DS Target is not available for licensing, until such time as [***]. 

2.2 Project Plans. The Collaboration Research for each DS Target shall be performed in accordance with the Project Plan agreed in relation to such DS
Target. The Project Plan applicable to the first DS Target is set forth in Exhibit A. The Project Plan for the second DS Target shall be discussed between the Parties and agreed upon by the JRC [***] no later than [***] days following
Pieris’ confirmation that such second DS Target is available for licensing pursuant to Section 2.1 above. Following the execution of any Project Plan, such Project Plan may only be amended by a decision of the JRC in accordance with
Section 6.3. 
 2.3 Commencement of Programs. Pieris will commence the Collaboration Research activities for the first DS Target in accordance
with the Project Plan as promptly as reasonably possible following the Initial Agreement Effective Date, but no later than [***] months thereafter, provided that [***]. Pieris will commence the Collaboration Research activities for the second DS
Target [***], but in any event [***] than (i) [***] months [***] and (ii) [***] months [***] [***] as specified in the Project Plan. 
 2.4
Conduct of Phase A. In Phase A of each Program, Pieris shall use its good faith reasonable efforts to [***] (as specified in the Project Plan) [***]. DS shall provide [***] under the Project Plan [***] in connection with [***] under
the Project Plan (such as, e.g., [***]). Pieris shall [***] under the Project Plan or this Agreement. Pieris shall keep DS fully informed as to its progress, results, status and plans for performing and implementing the Project Plan. Such
information shall be given during the JRC meetings or more often, as necessary. 
 2.5 End of Phase A; Decision Point for DS to enter
Phase B. Phase A shall end at the earlier of [***]. Following the end of Phase A of each Program, DS shall inform Pieris by written notice within [***] days whether it wishes to enter into Phase B of the relevant Program. In
the event that [***], [***]. In such event, the relevant Program shall [***]-day period. 
 2.6 Conduct of Phase B. If DS informs Pieris in
writing that it wishes to enter into Phase B in accordance with Section 2.5, [***], to (i) [***] and (ii) [***]. During Phase B of each Program, DS shall keep Pieris reasonably informed as to [***] days 

 
 Portions of the exhibit, indicated by the mark “[***],”
were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

 
following the end of every half calendar year. Each such written report shall be sufficiently detailed to demonstrate that DS continues to apply Commercially Reasonable Efforts in relation to the
relevant Program in accordance with its obligations under this Agreement, and shall include [***]. 
 2.7 Remedy for Failure to Meet Diligence
Obligations. In the event that Pieris believes that DS has failed to comply with its diligence obligations under Section 2.6 in relation to a Program, Pieris shall notify DS in writing. Following [***] days of such notice, Pieris shall be
entitled to terminate the relevant Program in writing, unless DS (i) has remedied the alleged failure in complying with its diligence obligations within such [***]-day period or (ii) by written notice reasonably disputes that it has failed
to comply with its diligence obligations and provides Pieris with specific documents evidencing how DS complied with its diligence obligations under Section 2.6. If Pieris receives such notice within the above [***]-day period, and the Parties
cannot reach agreement with respect to such dispute within [***] days following receipt of such notice, [***] in accordance with [***] pursuant to [***]. 
  

	3.	LICENSES 

 3.1 Research License. Subject to the terms and conditions herein, Pieris grants to DS,
on a [***], an exclusive[***], [***], [***] license in the Territory, under the Pieris Background Technology and the Pieris Foreground Technology, to use, have used, make, have made, and import Project Compounds [***], solely for research purposes
(the “Research License”). For clarity, DS may [***]. 
 3.2 Term of Research License. The Research License shall, for each DS
Target, commence upon [***] and shall expire [***] as defined in Section [***]. 
 3.3 Commercial License. Following the decision of DS [***]
pursuant to Section [***], Pieris hereby grants to DS: 
  

	(i)	an exclusive license in the Territory, under the Pieris Background Technology and the Pieris Foreground Technology, to develop, have developed, make, have made, use, have used, sell, offer for sale, have sold, import
and export Licensed Product in the field of [***]; and 

  

	(ii)	subject to Section 5.8, a non-exclusive license in the Territory, under the Pieris Background Technology and the Pieris Foreground Technology, to develop, have developed, make, have made, use, have used, sell,
offer for sale, have sold, import and export Licensed Product in the field of [***]. 

 The license under Section 3.3(i) shall become
fully-paid up, royalty free, non-exclusive on a [***] basis at the end of the relevant Royalty Term as set forth in Section 5.10. 
 3.4
Sublicenses. DS may sublicense the commercial licenses granted under Section 3.3 
  

Portions of the exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and
Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

 
above to Affiliates or any third parties (each, a “Sublicensee”), provided that the [***]. DS shall inform Pieris of any sublicense granted pursuant to this Section 3.4 in
writing. 
  

	4.	NON-COMPETE 

 Pieris shall not, (i) [***] and (ii) [***], [***] conduct research or commercial
activities (in either case) in the field of [***] [***] as a DS Target using Pieris’ Anticalin patents and Pieris’ Anticalin know-how on its own or with any third parties. 

 

	5.	PAYMENTS 

 5.1 Upfront Payments. Pieris hereby confirms that DS has paid to Pieris the
non-refundable, non-creditable upfront payments set forth in Section 7.1 of the Initial Agreement. 
 5.2 Research Funding. DS shall pay to
Pieris, [***], within [***] days after receiving a corresponding invoice from Pieris, research funding in the amount of [***] Euros (EUR [***]) per [***] per [***] put into (i) [***] in accordance with the Project Plan, and (ii) any
extra research activities, if requested by DS and agreed upon by Pieris. 
 5.3 Research Milestones. DS shall pay to Pieris Research Milestone
payments [***] within [***] days after the occurrence of the relevant Research Milestone event. With respect to the first DS Target, the following Research Milestone payments shall apply: 

 

							
	 No.
	  	Milestone Payment	 	  	 Research Milestone Event

	[***]	  	EUR	[***	] 	  	[***]
	[***]	  	EUR	[***	] 	  	[***]
	[***]	  	EUR	[***	] 	  	[***]
	[***]	  	EUR	[***	] 	  	[***]

 With respect to the second DS Target, the Parties will agree on [***] within the framework of the relevant Project Plan. 

5.4 Reporting on Research Milestone Achievement. Pieris shall provide written notice to DS of any occurrence of Research Milestones [***] under any
Program, and 
  
 Portions of the exhibit, indicated by the mark
“[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. 

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

 
DS shall provide written notice to Pieris of any occurrence of Research Milestones [***] under any Program. If DS agrees that Research Milestones [***] have been met, it shall notify Pieris
accordingly within [***] days. Once the occurrence of a Research Milestone has been agreed between the Parties, Pieris shall send DS an invoice for the relevant Research Milestone payment which shall be payable within [***] days. In the event of any
disagreement between DS and Pieris whether a Research Milestone has been met, such dispute may be escalated by either Party in accordance with Section 12.3. 

In any event, [***]. 
 5.5 Timelines for Research
Milestones. Notwithstanding the foregoing, if, in relation to the first Program: 
  

	(i)	[***] within [***] months from commencement by Pieris of the research activities under Phase A, or 

  

	(ii)	[***] within [***] months from [***], or 

  

	(iii)	[***] within [***] months from [***], or 

  

	(iv)	[***] within [***] months from [***], 

 then (in any of the foregoing cases) DS and Pieris shall discuss in
good faith whether [***]. The Parties will agree on similar timelines for the second Program within the framework of the relevant Project Plan. 
 If DS
[***] after the expiration of the relevant timeline, then (i) to the extent the Parties agree in good faith[***], the Parties will discuss in good faith how to [***] and the Parties will [***] with Section [***] governing [***], or
(ii) to the extent the Parties agree in good faith that [***] the corresponding [***] shall be regarded [***]. 
 If DS does not wish to [***], it
shall [***] pursuant to Section [***] and the licenses and rights [***] under this Agreement [***] including all [***]. 
 5.6 Development
Milestones for [***]. DS shall pay to Pieris the following Development Milestone payments for Licensed Products in the field of [***], as set forth below, in each case within [***] after the occurrence of the following events: 

 

							
	 No.
	  	Milestone Payment	 	    	 Development Milestone Event

	[***]	  	EUR	[***	] 	    	[***]
	[***]	  	EUR	[***	] 	    	[***]
	[***]	  	EUR	[***	] 	    	[***]

  

Portions of the exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and
Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 8 

 CONFIDENTIAL TREATMENT REQUESTED 

 

							
	 	 	 	 	  	 
	[***]	 	EUR	           [***	] 	  	[***]
	[***]	 	EUR	[***	] 	  	[***]
	[***]	 	EUR	[***	] 	  	[***]
	[***]	 	EUR	[***	] 	  	[***]
	[***]	 	EUR	[***	] 	  	[***]
	[***]	 	EUR	[***	] 	  	[***]

 The Development Milestone payments for [***] shall be [***] of the [***] for such Licensed Product set forth above; and the
Development Milestones for [***] shall be [***] of the [***] set forth above. [***]. 
 [***]. 

5.7 Sales Milestones for [***]. DS shall pay to Pieris the following sales milestone payments [***], [***] as set forth below, in each case within
[***] days after the occurrence of the following events: 
  

							
	 No.
	  	Milestone Payment	 	  	 Sales Milestone Event

	[***]	  	EUR	[***	] 	  	[***] EUR [***]
	[***]	  	EUR	[***	] 	  	[***] EUR [***]
	[***]	  	EUR	[***	] 	  	[***] EUR [***]

 5.8 [***] Milestones. DS shall pay to Pieris the following [***] milestone payments [***] [***], [***] as set forth
below, in each case within [***] days after the occurrence of the following events: 
  

							
	 No.
	  	Milestone Payment	 	  	 Diagnostic Milestone Event

	[***]	  	EUR	[***	] 	  	[***]
	[***]	  	EUR	[***	] 	  	[***]
	[***]	  	EUR	[***	] 	  	[***]

 5.9 Reporting on Development Milestone and Sales Milestone Achievement. DS shall provide written notice to Pieris
(i) of any occurrence of any of the Development 
  
 Portions
of the exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended. 

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

 
Milestones set forth in Sections 5.6 and 5.7 no later than [***] days following the occurrence of the relevant milestone event and (ii) of any occurrence of any of the sales milestones set
forth in Section 5.8 no later than [***] days following [***]. Upon receipt of any of the aforesaid notices, Pieris shall send DS a corresponding invoice, which shall be payable within [***] days. 

5.10 Royalties. DS shall pay to Pieris, [***], tiered royalties on [***] Net Sales generated by DS, its Affiliates and Sublicensees from the
commercialization of Licensed Products for [***] at the following rates: 
  

			
	 Royalty
	  	 Worldwide Annual Net Sales

	 [***]
	  	[***] Net Sales [***] EUR [***]
	 [***]
	  	[***] Net Sales [***] EUR [***]
	 [***]
	  	[***] Net Sales [***] EUR [***]

 (Example: If, [***], [***] reach EUR [***], the royalty payable to Pieris will be: EUR [***] x [***] + EUR [***] x
[***] + EUR [***] x [***].) 
 DS shall pay to Pieris, during the Royalty Term, royalties on [***] Net Sales generated by DS, its Affiliates and
Sublicensees from the commercialization of Licensed Products [***] at the rate of: [***] for [***] Net Sales [***] EUR [***]; [***] for [***] Net Sales [***] EUR [***], but [***]; and [***] for [***] Net Sales [***] EUR [***]. 

The “Royalty Term” shall be, on a [***] basis, the time period [***] and ending on the later of (i) the [***] and (ii) [***]. In
case that there is [***], then [***]. For the purposes of this Agreement, “[***]” means [***] in the relevant country with, [***] [***] [***] in that country (and “[***]” means, with respect to a Licensed Product,
(i) [***], or (ii) [***]. If, at the time of expiration of the Royalty Term, there exists any other Pieris patents than Pieris Royalty Bearing Patent Claims that are reasonably required for freedom to operate to commercialize such Licensed
Product as contemplated herein, [***]. 
 5.11 Taxes. 

5.11.1 Withholding Tax. If applicable laws or regulations require withholding taxes on the payments provided in this Section 5,
such taxes will be deducted by DS from such payments in an amount and will be paid by DS to the proper taxing authority, and proof of tax payment shall be sent to Pieris. The Parties agree to reasonably cooperate with each other to proceed
exemptions from any double taxation. Notwithstanding the foregoing, DS shall not be permitted to reduce any fees related to FTE payments. 

5.11.2 VAT. The consideration set forth in this Agreement excludes value added tax (VAT) and any VAT that becomes payable shall be paid
by DS in addition to the consideration. 
  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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 5.12 Other Payment Terms. 

5.12.1 Currency, Payment Costs. DS shall make the payments [***] Euro. Where the payments due to Pieris are being converted from a
currency [***] Euro, conversion of Net Sales recorded in local currencies to Euros shall be performed in a manner consistent with DS’ normal practices used to prepare its audited financial statements for internal and external reporting
purposes, which uses a widely accepted source of published exchange rates. All payments will be made [***]. 
 5.12.2 [***] Royalty
Reporting. All royalty payments will be made at [***] intervals. Within [***] days of the end of each [***] after the first commercial sale of the relevant Licensed Product in [***], DS shall prepare a statement which shall show on a [***] basis
for the previous [***] all Net Sales of each Licensed Product by DS, its Affiliates and Sublicensees and all moneys due to Pieris based on such Net Sales. This statement shall include details of Net Sales broken down to show [***] of the sales and
the total Net Sales in [***] and shall be submitted to Pieris within such [***] day period and the amount due shall be paid by DS within [***] days from receipt of the corresponding invoice from Pieris. 

5.12.3 Records. DS shall keep, and shall procure that all Affiliates and Sublicensees, keep, true and accurate records and books of
account containing all data necessary for the calculation of the amounts payable by it to Pieris pursuant to this Agreement. Those records and books of account shall be kept for [***] years following the end of the calendar year to which they
relate. Upon Pieris’ written request, a firm of accountants appointed by agreement between the Parties (or, failing such agreement within [***] days of the initiation of discussions between them on this point, Pieris shall have the right
to cause an international firm of independent certified public accountants that has not performed auditing or other services for either Party or their Affiliates and is acceptable to DS, such acceptance not to be unreasonably withheld) shall have
the right to inspect such records and books of account. In particular such firm: 
  

	(i)	shall be given access to and shall be permitted to examine and copy such books and records DS, its Affiliates and Sublicensees upon [***] days’ notice having been given by Pieris and at all reasonable times on
business days for the purpose of certifying that the Net Sales or other relevant sums calculated by DS, its Affiliates and Sublicensees during the current and the [***] years were reasonably calculated, true and accurate or, if this is not their
opinion, certify the Net Sales figure or other relevant sums for such period which in their judgment is true and correct; 

  

	(ii)	prior to any such examination taking place, such firm of accountants shall undertake to DS that they shall keep all information and data contained in such books and records, strictly confidential and shall not disclose
such information or copies of such books and records to any third person including Pieris, but shall only use the same for the purpose of calculations which they need to perform in order to issue the certificate to which this Section envisages;

  
 Portions of the exhibit, indicated by the mark
“[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. 

  
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	(iii)	any such access examination and certification shall occur during DS’s normal business hours and no more than [***] per [***]; 

  

	(iv)	DS, its Affiliates and Sublicensees shall make available personnel to answer queries on all books and records required for the purpose of that certification; 

 

	(v)	any amount shown by the accountant to be owed but overpaid or underpaid and in need of reimbursement shall be paid or refunded (as the case may be) within [***] days from receipt of the corresponding invoice from the
Party to which money is due pursuant to the accountant report, and 

  

	(vi)	the cost of the accountant (including reasonable attorneys’ fees of Pieris, if applicable) shall be the responsibility of DS if the certification shows it to have underpaid monies to Pieris by more than [***] and
the responsibility of Pieris otherwise. 

 5.12.4 Payments Made by Wire Transfer. All payments made to Pieris under
this Agreement shall be made by wire transfer to the following bank account of Pieris, or such other bank account as notified by Pieris to DS from time to time: 

Pieris AG 
 [***] 

Account No.: [***] 
 BLZ (Routing
Number): [***] 
 IBAN: [***] 

BIC (SWIFT Code): [***] 
 5.12.5
Late Payments. If DS fails to make any payment to Pieris hereunder on the due date for payment, without prejudice to any other right or remedy available to Pieris, Pieris shall be entitled to charge DS interest of the amount unpaid [***],
calculated on a [***] basis until payment in full is made without prejudice to Pieris’ right to receive payment on the due date. 
  

	6.	JOINT RESEARCH COMMITTEE 

 6.1. Establishment of JRC. Within [***] days following Effective Date
of the Agreement, Pieris and DS shall establish a Joint Research Committee (comprising equal representation by each Party and at least [***] but not more than [***] members from each Party) to [***]. JRC member shall have sufficient authority to
ensure acceptance and execution of JRC decisions within its organization. Each Party may appoint substitutes or alternates for its JRC members at any time by written notice to the other Party. 

6.2. Meetings; Quorum. JRC meetings will be held quarterly (with in-person meetings twice a year), or any other frequency agreed between the Parties,
during Phase A. 
  
 Portions of the exhibit, indicated by the mark
“[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. 

  
 12 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 
Each Party may invite non-voting participants to the JRC meetings. The JRC shall be furnished in advance by the Program managers with a reasonably detailed report on the progress of the Program
and decisions that are requested under Phase A. At each JRC meeting, at least [***] JRC members from each Party shall constitute a quorum and, therefore, need to be present in person or by telephone or video conference in order to take decisions.

 6.3. Decisions. Any decisions on the activities of Phase A shall be made by consensus between DS and Pieris, provided however, that, if the JRC is
unable to decide any matter by consensus, then such matter shall be decided by DS. Notwithstanding the foregoing, (i) [***] and (ii) [***]. Within [***] days following each JRC meeting, the Parties shall prepare in an alternating fashion
and distribute reasonably detailed written minutes of such meeting for approval by the other Party, which minutes shall constitute Confidential Information of each Party. 

6.4 Role of JRC after Phase A. During the period of Phase B, DS will keep Pieris reasonably informed by delivering to Pieris a written report in
relation to the relevant Program pursuant to Section 2.6; and upon mutual agreement of the Parties, the JRC will be convened to discuss matters related to the development of the Project Compound. 

6.5 Science Meetings. Both Parties shall hold joint science meetings to discuss and consult on the activities of the Phase A, once per month or such
agreed frequency between the Parties, by video conference, teleconference or face to face, as mutually agreed between the Parties. 
  

	7.	INTELLECTUAL PROPERTY 

 7.1 Background Technology. Each Party shall solely own, and will continue
to solely own, all intellectual property rights and know-how in its pre-existing technology existing as of the Initial Agreement Effective Date or developed outside of the Collaboration Research. 

7.2 Inventorship in Foreground Technology. The inventorship for any invention, improvements and discoveries, whether patentable or unpatentable,
arising or derived from the course of the Collaboration Research shall be decided in accordance with the [***]. 
 7.3 Ownership and Prosecution of
Foreground Technology. 
 7.3.1 [***] Ownership in Foreground Technology. [***] shall [***] Foreground Technology as well as all
improvements to [***]. It is the intent of the Parties to pursue intellectual property rights on [***] Foreground Technology relating to Project Compounds in a collaborative manner, with the intent to maximize the scope of intellectual property
protection for Project Compounds. Therefore, despite its ownership 
  

Portions of the exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and
Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 13 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 
interest in [***] Foreground Technology, [***] may not file, prosecute, withdraw, maintain or abandon any patent applications relating to any Project Compound [***], handle any dispute relating
to any such patent applications, or decide not to do any of them, without the prior written agreement from [***] (including agreement per e-mail), which shall not be unreasonably withheld. [***] shall be responsible for any cost of such filing,
prosecution, withdrawal, maintenance and abandonment of patent applications or patents based thereon prior to any assignment by [***] interest in such [***] Foreground Technology in accordance with Section 7.3.2. 

7.3.2 Transfer of Pieris Foreground Technology. Upon DS’s decision to enter into Phase B pursuant to Section 2.5 above
in relation to any Project Compound, Pieris shall assign, without any additional fees or costs, all interests and ownership in any Pieris Foreground Technology relating to such Project Compound to DS, provided that all financial terms under this
Agreement shall remain unaffected by such assignment. [***] DS shall provide reasonable advanced written notice to Pieris before abandoning any Pieris Foreground Technology assigned to DS, in which case Pieris shall have the right to assume, without
any additional fees or costs, ownership of such Pieris Foreground Technology as well as the right to continue prosecution and/or maintenance thereof. Pieris shall not assign any such Pieris Foreground Technology reverted back to Pieris to any third
party unless Pieris first offers in writing to assign such technology on substantially the same terms to DS and DS does not accept such offer in writing within [***] days thereof. In case that Pieris assigns any such Pieris Foreground Technology
reverted back to Pieris to a third party, then such technology shall be excluded from Pieris Foreground Technology thereafter. 
 7.3.3
[***] Ownership in Foreground Technology. [***] shall [***] Foreground Technology, and [***] shall have the right (but not the obligation), at its sole expense and sole discretion, to control the preparation, filing, prosecution, maintenance
and enforcement of all Patent Rights applicable to any [***] Foreground Technology. 
 7.4 Enforcement. 

7.4.1 Enforcement of Pieris Foreground Technology within Scope of Exclusive License. To the extent and for as long as the Pieris
Foreground Technology has been (i) exclusively licensed to DS pursuant to Section 3.3(i) or (ii) assigned to DS pursuant to Section 7.3.2, DS shall have the first right (but not the obligation), [***] Prior to undertaking any
such action to enforce such Pieris Foreground Technology, DS shall notify Pieris in writing. The Parties shall reasonably cooperate with each other in the planning and execution of any such action to enforce such Pieris Foreground Technology
(including the obligation to be named or joined as a party in a lawsuit, as applicable), [***]. All monies recovered upon the final judgment or settlement of any such suit or action to enforce such Pieris Foreground Technology shall be treated as
[***]. In the event that DS does not wish to enforce such Pieris Foreground Technology against such a potential infringer, then DS shall deliver prompt written notice thereof to Pieris. For the avoidance of doubt, [***]. 

 
 Portions of the exhibit, indicated by the mark “[***],”
were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

  
 14 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 In the event that DS delivers to Pieris written notice described in the previous paragraph that DS does not
wish to enforce such Pieris Foreground Technology against such a potential infringer, then Pieris shall have the option to assume the right (but not the obligation), [***]. If Pieris timely exercises such option, then (i) Pieris shall
thereafter assume the rights and obligations attributed to DS under the preceding paragraph, and (ii) DS shall thereafter assume the rights and obligations attributed to Pieris under the preceding paragraph; provided that monies recovered upon
the final judgment or settlement of any such suit or action to enforce such Pieris Foreground Technology shall be applied in the following order of priority: (x) first, [***]; and (y) thereafter, any remainder shall be [***]. 

7.4.2 Other Enforcements. In all other cases the Party owning the relevant Patent Rights shall have the exclusive right to enforce such
Patent Rights in its own name and at its own cost and risk. 
 7.5 Cooperation. Each Party agrees to cooperate with, and perform such lawful acts and
execute such documents in order to reasonably assist, the other Party with respect to the preparation, filing, prosecution, defense, enforcement and maintenance of Patent Rights pursuant to this Article 7. Furthermore, the Parties shall
cooperate with each other in gaining patent term extensions wherever applicable to any of the Foreground Technology. 
 8. CONFIDENTIALITY 

8.1 Confidential Information. “Confidential Information” shall mean all trade secrets or confidential or proprietary information
designated as such in writing by the disclosing Party, whether by letter or by the use of an appropriate stamp or legend, prior to or at the time any such trade secret or confidential or proprietary information is disclosed by the disclosing Party
to the receiving Party. Notwithstanding the foregoing, information which is orally or visually disclosed to the receiving Party by the disclosing Party, or is disclosed in writing without an appropriate letter, stamp or legend, shall constitute
Confidential Information if (i) it would be obvious to a reasonable person, familiar with the disclosing Party’s activities and the industry in which it operates, that such information is of a confidential or proprietary nature, or if
(ii) the disclosing Party, within [***] days after such disclosure, delivers to the receiving Party a written document or documents describing such information and notifying it as proprietary or confidential. 

8.2 Confidentiality. During the Term, and for a period of [***] years thereafter, each Party shall: 

 

	(i)	except to the extent permitted by this Agreement or otherwise agreed to in writing, keep confidential and not disclose to any third party any Confidential Information of the other Party; 

 
 Portions of the exhibit, indicated by the mark “[***],”
were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

  
 15 

 CONFIDENTIAL TREATMENT REQUESTED 

 

	(ii)	except in connection with the activities contemplated by or the exercise of rights permitted by this Agreement or as otherwise agreed to in writing, not use for any purpose any Confidential Information of the other
Party; and 

  

	(iii)	take all reasonable precautions to protect the Confidential Information of the other Party (including all precautions a Party employs with respect to its own confidential information of a similar nature and taking
reasonable precautions to assure that no unauthorized use or disclosure is made by others to whom access to the Confidential Information of the Party is granted). 

8.3 Exceptions. Notwithstanding anything set forth in this Article 8 to the contrary, the obligations of Section 8.2 above shall not apply to the
extent that the Party seeking the benefit of the exclusion can demonstrate that the Confidential Information of the other Party: 
  

	(i)	was already known to the receiving Party, other than under an obligation of confidentiality, at the time of receipt by the receiving Party; 

 

	(ii)	was generally available to the public or otherwise part of the public domain at the time of its receipt by the receiving Party; 

  

	(iii)	became generally available to the public or otherwise part of the public domain after its receipt by the receiving Party other than through any act or omission of the receiving Party in breach of this Agreement;

  

	(iv)	was received by the receiving Party without an obligation of confidentiality from a third party having the right to disclose such information without restriction; 

 

	(v)	was independently developed by or for the receiving Party without use of or reference to the Confidential Information of the other Party; 

 

	(vi)	was released from the restrictions set forth in this Agreement by express prior written consent of the other Party; or 

  

	(vii)	is required to be disclosed by court order or any competent government authority or under applicable stock exchange or similar rules or regulations, in which case the receiving Party will provide reasonable advanced
written notice to the disclosing Party and will use reasonable efforts to limit public disclosure of the Confidential Information by seeking a protective order or similar protection permitted under applicable law. 

If any of the Confidential Information becomes subject to the exceptions above, then the receiving Party shall all the same not disclose to any third party
the fact that such information was received from or used by the disclosing Party, unless such fact becomes subject to the exceptions listed in subsections (i)-(vii) above. 

 
 Portions of the exhibit, indicated by the mark “[***],”
were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

  
 16 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 The Confidential Information shall not be deemed to be in the public domain merely because any part of the
Confidential Information is embodied in any general disclosure or because individual features, components or combinations thereof are known to the public. 

8.4 Disclosure to Employees, Consultants and Investors. Each Party agrees that it and its Affiliates shall provide or permit access to
Confidential Information received from the other Party only to the receiving Party’s employees, scientific consultants, scientific or professional advisors and permitted subcontractors who have a need to know such Confidential Information to
assist the receiving Party with the development, manufacturing and/or commercialization of a Project Compound and/or Licensed Product and the activities contemplated by this Agreement and who are subject to obligations of confidentiality and non-use
with respect to such Confidential Information similar to the obligations of confidentiality and non-use of the receiving Party pursuant to Section 8.2; provided, that Pieris and DS shall each remain responsible for any failure by its
Affiliates, and its and its Affiliates’ respective employees, consultants, advisors and permitted subcontractors, Sublicensees and distributors, to treat such Confidential Information as required under Section 8.2 (as if such Affiliates,
employees, consultants, advisors and permitted subcontractors, Sublicensees and distributors were Parties directly bound to the requirements of Section 8.2). In addition, a receiving Party may provide Confidential Information disclosed to it to
any bona fide actual or prospective collaborators or strategic partners who are obligated to keep such information confidential, to the extent reasonably necessary to enable such actual or prospective collaborators to determine their interest in or
collaborating with the receiving Party. 
 8.5 Return of Confidential Information. Upon termination or expiration of any Program or this
Agreement, upon the request of the disclosing Party, the receiving Party shall promptly return to the disclosing Party or destroy the disclosing Party’s Confidential Information, including all copies thereof, except to the extent that retention
of such Confidential Information is reasonably necessary for the receiving Party to exploit any continuing rights it may have (in particular the rights under Section 11.10) and/or to fulfill its obligations contemplated herein, including its
obligations of non-disclosure and non-use hereunder. Any such destruction requested by the disclosing Party shall be certified in writing to the disclosing Party by an authorized officer of the receiving Party. The return and/or destruction of
such Confidential Information as provided above shall not relieve the receiving Party of its obligations under this Agreement. 
  

	9.	REPRESENTATIONS AND WARRANTIES 

 9.1 Mutual Representations. Each Party hereby represents and
warrants to the other Party that as of the Effective Date, it has full corporate right, power and authority to enter into this Agreement, to grant the rights it grants to the other Party and to perform its respective obligations under this
Agreement. 
 9.2 No Conflict. Each Party hereby represents and warrants to the other Party 

 
 Portions of the exhibit, indicated by the mark “[***],”
were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

  
 17 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 
that, notwithstanding anything to the contrary in this Agreement, the execution and delivery of this Agreement by such Party, the performance of such Party’s obligations hereunder and the
licenses and sublicenses to be granted by such Party pursuant to this Agreement (a) to the best of its knowledge, do not conflict with or violate any requirement of any laws, rules or regulations existing as of the Effective Date and
applicable to such Party and (b) do not conflict with, violate, breach or constitute a default under any contractual obligations of such Party or any of its Affiliates existing as of the Effective Date. 

9.3 Disclaimer of Warranties. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH HEREIN, NEITHER PARTY MAKES ANY REPRESENTATION OR EXTENDS ANY WARRANTIES OF ANY
KIND, EITHER EXPRESS OR IMPLIED, TO THE OTHER PARTY, AND EACH PARTY HEREBY DISCLAIMS ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, VALIDITY AND ENFORCEABILITY OF ANY PATENT LICENSED HEREUNDER, AND NON-INFRINGEMENT WITH
RESPECT TO THE PROGRAM COMPOUNDS AND LICENSED PRODUCTS. EACH PARTY HEREBY DISCLAIMS ANY REPRESENTATION OR WARRANTY THAT THE DEVELOPMENT, MANUFACTURE AND COMMERCIALIZATION OF THE PROGRAM COMPOUNDS OR LICENSED PRODUCTS PURSUANT TO THIS AGREEMENT WILL
BE SUCCESSFUL. 
  

	10.	INDEMNIFICATION AND LIABILITY 

 10.1 Indemnification. 

10.1.1 Indemnification [***]. [***] will defend, indemnify and hold harmless [***], its Affiliates and their respective directors,
officers, employees and agents (the “[***]”) from and against all claims, demands, liabilities, damages, penalties, fines, costs and expenses, including reasonable attorneys’ and expert fees and costs, and costs or amounts paid
to settle (collectively, “Losses”), arising from or occurring as a result of a third party’s claim (including any third party product liability or infringement claim), action, suit, judgment or settlement to the extent such
Losses are due to or based upon: 
  

	(i)	[***]; or 

  

	(ii)	[***]; or 

  

	(iii)	[***]. 

 10.1.2 Indemnification [***]. [***] will defend, indemnify and hold harmless
[***], its Affiliates, and their respective directors, officers, employees and agents (the “[***]”) from and against all Losses arising from or occurring as a result of a third party’s claim, action, suit, judgment or
settlement that is due to or based upon the material breach by [***] of the terms of, or the material inaccuracy of any representation or warranty made by it in, this Agreement. 

 
 Portions of the exhibit, indicated by the mark “[***],”
were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

  
 18 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 10.2 Claims for Indemnification.

10.2.1 A person entitled to indemnification under this Section 10.1 (an “Indemnified Party”) shall give prompt written
notification to the person from whom indemnification is sought (the “Indemnifying Party”) of the commencement of any action, suit or proceeding relating to a third party claim for which indemnification may be sought or, if earlier,
upon the assertion of any such claim by a third party (it being understood and agreed, that the failure by an Indemnified Party to give notice of a third party claim as provided in this Section 10.2.1 shall relieve the Indemnifying Party of its
indemnification obligation under this Agreement unless the Indemnified Party can demonstrate that such failure to give notice has not resulted in any prejudice to the Indemnifying Party). 

10.2.2 Within [***] days after receipt of such notification, the Indemnifying Party may, upon written notice thereof to the Indemnified Party,
assume control of the defense of such action, suit, proceeding or claim with counsel of its choice. If the Indemnifying Party does not assume control of such defense, the Indemnified Party shall control such defense. 

10.2.3 The Party not controlling such defense may participate therein at its own expense; provided, that if the Indemnifying Party assumes
control of such defense and the Indemnified Party reasonably concludes, based on advice from counsel, that the Indemnifying Party and the Indemnified Party have conflicting interests with respect to such action, suit, proceeding or claim, the
Indemnifying Party shall be [***]. 
 10.2.4 The Party controlling such defense shall keep the other Party advised of the status of such
action, suit, proceeding or claim and the defense thereof and shall consider reasonable recommendations made by the other Party with respect thereto. 

10.2.5 The Indemnified Party shall not agree to any settlement of such action, suit, proceeding or claim without the prior written consent of
the Indemnifying Party, which shall not be unreasonably withheld. The Indemnifying Party shall not agree to any settlement of such action, suit, proceeding or claim or consent to any judgment in respect thereof that does not include a complete
and unconditional release of the Indemnified Party from all liability with respect thereto or that imposes any liability or obligation on the Indemnified Party without the prior written consent of the Indemnified Party. 

10.3 Limitation of Liability. IN NO EVENT SHALL EITHER PARTY BE LIABLE OR OBLIGATED TO THE OTHER PARTY IN ANY MANNER FOR ANY SPECIAL, NON-COMPENSATORY,
CONSEQUENTIAL, INDIRECT, INCIDENTAL, STATUTORY OR PUNITIVE DAMAGES OF ANY KIND, INCLUDING, WITHOUT LIMITATION, LOST PROFITS AND LOST REVENUE, REGARDLESS OF THE FORM OF ACTION, WHETHER IN CONTRACT, TORT, NEGLIGENCE, STRICT PRODUCT LIABILITY, OR
OTHERWISE, EVEN IF INFORMED OF OR AWARE OF THE POSSIBILITY OF ANY SUCH DAMAGES IN ADVANCE. THE LIMITATIONS SET FORTH ABOVE SHALL BE DEEMED TO APPLY TO THE 
  

Portions of the exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and
Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 19 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 
MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW AND NOTWITHSTANDING THE FAILURE OF THE ESSENTIAL PURPOSE OF ANY LIMITED REMEDIES. THE PARTIES ACKNOWLEDGE AND AGREE THAT THEY HAVE FULLY CONSIDERED THE
FOREGOING ALLOCATION OF RISK AND FIND IT REASONABLE, AND THAT THE FOREGOING LIMITATIONS ARE AN ESSENTIAL BASIS OF THE BARGAIN BETWEEN THE PARTIES. The above limitation of liability shall not apply to the indemnifications set forth in
Section 10.1 and any breach of Article 8 (“CONFIDENTIALITY”). 
 10.4 Insurance. Each Party shall maintain, and shall require its
Affiliates and Sublicensees hereunder to maintain, a commercial general liability and, as regards DS only, a product liability insurance program on terms customary in the pharmaceutical and biopharmaceutical industry covering all activities and
obligations of it, and, as the case may be, its Affiliates, hereunder, or other insurance programs with comparable coverage, up to and beyond the expiration or termination of this Agreement and a commercially reasonable period thereafter. 

11. TERM 
 11.1 Agreement Term. This Agreement
shall become effective as of the Effective Date and shall continue in full force and effect until (i) expiration of all payment and related obligations of DS under Article 5, (ii) the decision of DS not to enter into any Phase B under
any Program, or (iii) any termination of this Agreement in accordance with Section 2.7 or Sections 11.2 to 11.6 below. 
 11.2 Termination
for Convenience by DS. Following [***] of any Program, DS shall have the right to terminate such Program at any time on thirty (30) days prior written notice to Pieris without any liability to Pieris in that respect (other than to perform
obligations which survive such termination in accordance with this Agreement) 
 11.3 Termination for Breach. Subject to Section 2.7 in relation
to DS’s failure to comply with its diligence obligations, either Party shall be entitled to terminate any Program(s) by written notice to the other with immediate effect if the other Party breaches any of its material obligations under this
Agreement in relation to such Program(s) and fails to cure such breach within [***] days following its receipt of written notice thereof from the terminating Party if such breach is curable within the aforesaid period; provided,
however, prior to giving any notice for breach, the Parties shall first attempt to resolve any disputes as to the existence of any breach as set forth in Section 12.3. 

11.4 Termination for Insolvency. Either Party may terminate any or all Programs under this Agreement by written notice to the other with immediate
effect if the other Party becomes insolvent, is compelled to file bankruptcy or is determined otherwise imminently subject to control by a bankruptcy trustee or its equivalent pursuant to the laws of the jurisdiction in which such Party is doing
business. 
  
 Portions of the exhibit, indicated by the mark
“[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934,
as amended. 

  
 20 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 11.5 Termination for Challenges of Patent Rights. If DS or any of its Affiliates or Sublicensees
(i) commences or participates in any action or proceeding (including, without limitation, any patent opposition or re-examination proceeding), or otherwise asserts in writing any claim, challenging or denying the validity of any of the Patent
Rights licensed to DS hereunder, or any claim thereof, or (ii) actively assists any other Person in bringing or prosecuting any action or proceeding (including, without limitation, any patent opposition or re-examination proceeding) challenging
or denying the validity of any of such Patent Rights or any claim thereof (each, a “Challenge”), then such Challenge shall constitute a material breach of the Agreement and Pieris will have the right to give warning notice to DS under
Section 11.3, and, unless DS or the relevant Affiliate or Sublicensee withdraws or causes to be withdrawn all such Challenge(s) within the sixty (60) day period set forth in Section 11.3, Pieris shall have the right to terminate
this Agreement forthwith. 
 11.6 Termination of Agreement. Any termination of the last Program pursued under this Agreement shall constitute a
termination of this Agreement. 
 11.7 Effect of Termination of Programs or Agreement. In case of any termination of any Program(s), all rights and
obligations of the Parties (including the licenses granted under Sections 3.1 and 3.3) shall cease immediately with respect to the relevant Program(s), unless otherwise indicated in this Section below or elsewhere in this Agreement, and DS shall
re-assign to Pieris all Pieris Foreground Technology assigned to DS pursuant to Section 7.3.2 in relation to Project Compounds developed under the relevant Program(s). 

11.8 Obligations Accrued. Expiration or termination of this Agreement or termination of any Program shall not relieve the Parties of any obligation
accruing prior to such expiration or termination. 
 11.9 Survival. The provisions of Sections 5.12.2 to 5.12.5, 7.1, 7.2, 7.3.1 (first sentence
only), 7.3.3, 7.5, 8, 9, 10, 11.7 to 11.10 and 12 shall survive any termination of any Program or termination or expiration of this Agreement. 
 11.10
Transfer of Terminated Program Under Certain Circumstances. If any Program is terminated (i) by Pieris in accordance with Section 11.3 (termination for breach by DS) or Section 2.7 (failure to comply with diligence
obligations), or (ii) by DS in accordance with Section 11.2 (termination for convenience) (such Program hereinafter referred to as the “Terminated Program”), the following terms and conditions shall apply in relation to
the Terminated Program: 
 11.10.1 DS shall as promptly as practicable transfer to Pieris or Pieris’ designee (i) possession and
ownership of [***], (ii) copies of [***], and (iii) all records [***]. 
 11.10.2 DS shall appoint Pieris as DS’ agent for
all Licensed Product-related matters under the Terminated Program involving regulatory authorities until all marketing authorizations and other regulatory filings and approvals have been 

 
 Portions of the exhibit, indicated by the mark “[***],”
were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

  
 21 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 
transferred to Pieris or its designee, it being agreed that both Parties shall use reasonable and diligent efforts to have this transfer occur as rapidly as feasible. 

11.10.3 If the effective date of termination of the Terminated Program is [***], then DS shall [***] and grant [***], until such time as [***]
it being agreed that both Parties shall use reasonable and diligent efforts to have [***] as rapidly as feasible. 
 11.10.4 If DS or any of
its Affiliates or Sublicensees is manufacturing a Licensed Product under a Terminated Program, then, at Pieris’ option, DS shall [***] until such time as [***], provided that Pieris can demonstrate it has been [***] and [***] shall not continue
for more than [***] months from the date of [***]. 
 11.10.5 If Pieris so requests, DS shall transfer to Pieris any third party agreement
relating to the development, manufacture or commercialization of a Licensed Product under a Terminated Program, to which DS is a party, provided that such [***] and provided further that, in relation to agreements relating to [***], this obligation
shall only apply to the extent that DS does not continue to manufacture and supply the relevant Licensed Product in accordance with Section 11.10.4 above. 

11.10.6 [***] shall[***] that [***] as such [***] only to the extent [***] set forth in [***] whether it is [***] 

11.10.7 To the extent a Program has been terminated by Pieris in accordance with Section 11.3 (termination for breach by DS),
(i) the assignment pursuant to Section 11.10.6(i) above shall be without any compensation and (ii) [***]. Notwithstanding foregoing sentence in this Section, intellectual property licensed from third parties for which, to the extent
DS is able to sub-license or assign its rights, any payment obligation of DS to the third party will be assumed by Pieris to the extent such payment obligation relates to the Terminated Program. 

To the extent a Program has been terminated by Pieris in accordance with Section 2.7 (failure to comply with diligence obligations) or by
DS in accordance with Section 11.2 (termination for convenience), the assignment pursuant to Section 11.10.6(i) above and the license granted pursuant to Section 11.10.6(ii) above shall be subject to the following royalty payments to
be made by Pieris to DS on the Net Sales of pharmaceutical products containing one or more Project Compounds of the Terminated Program made by Pieris, its Affiliates, sublicensees or sublicensees’ Affiliates (and the definition of “Net
Sales” shall apply mutatis mutandis to such sales): 
  

			
	 Time of termination
	  	Royalty rate
	 [***]
	  	[***]
	 [***]
	  	[***]

  

Portions of the exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and
Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 22 

 CONFIDENTIAL TREATMENT REQUESTED 

 

			
	 [***]
	  	[***]

 The above royalty shall be payable by Pieris to DS on a [***] basis for a period [***][***]: 

 

					
	 Time of termination
	  	Maximum
aggregate
royalty amount	 
	 [***]
	  	EUR	[***]	  
	 [***]
	  	EUR	[***]	  
	 [***]
	  	EUR	[***]	  

 Sections 5.11 and 5.12 shall apply reciprocally to royalty payments by Pieris to DS under this
Section 11.10.7.11.10.8 DS shall execute all documents and take all such further actions as may be reasonably requested by Pieris in order to give effect to the terms of this Section 11.10. 

12. MISCELLANEOUS 
 12.1 Notices. Unless provided
otherwise, any consent or notice required or permitted to be given or made under this Agreement by one of the Parties to the other shall be in writing and delivered through registered mail with acknowledgement of receipt, and addressed to such other
Party at its address indicated below, or to such other address as the addressee shall have last furnished in writing to the addressor, and shall be effective upon receipt by the addressee. 

 

			
	If to DS:	  	Daiichi Sankyo Company Limited
		  	[***]
		
	If to Pieris:	  	Pieris AG
		  	Lise-Meitner-Str. 30
		  	85354 Freising, Germany
		
		  	Attention: Chief Executive Officer

 For the avoidance of doubt, reports or other exchanges of information on an operational level may also be sent by facsimile or
electronic transmission. 
  
 Portions of the exhibit, indicated by
the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act
of 1934, as amended. 

  
 23 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 12.2 Governing Law. This Agreement (including Exhibits attached hereto) shall be governed by and
construed in accordance with the laws of [***] without regard to the application of principles of conflict of laws. 
 12.3 Dispute Resolution. Each
Party shall exercise reasonable effort to resolve any dispute regarding this Agreement. If the Parties hereto are unable to resolve such dispute amicably, then such dispute shall [***] in accordance with the process set forth in
Exhibit E [***]. 
 12.4 Attorneys Fees and Costs. Except as specifically provided in this Agreement, in the event of any dispute between
the Parties arising out of or relating to this Agreement, the prevailing Party shall be entitled to recover from the unsuccessful Party all costs, expenses and actual attorneys’ fees relating to or arising from (i) any litigation,
arbitration or mediation relating to or arising from, this Agreement; and/or (ii) the enforcement of any judgment or award resulting from any such litigation, arbitration or mediation. Any such judgment or award shall contain a specific
provision for the recovery of all costs, expenses and actual attorneys’ fees incurred in enforcing any such judgment or award. 
 12.5
Severability. Each Party hereby agrees that it does not intend to violate any public policy, statutory or common laws, rules, regulations, treaty or decision of any government agency or executive body thereof of any country or community or
association of countries. Should one or more provisions of this Agreement be or become invalid, the Parties hereto covenant and agree to renegotiate any such term, covenant or application thereof in good faith in order to provide a reasonably
acceptable alternative to the term, covenant or condition of this Agreement or the application thereof that is invalid, illegal or unenforceable, said renegotiated term, covenant or condition being deemed to be effective as of the Effective Date, it
being the intent of the Parties that the basic purposes of this Agreement and the economical balance between the Parties as contemplated upon the execution of the Agreement are to be effectuated as nearly as possible. 

12.6 Assignment. This Agreement may not be assigned or transferred by either Party without the prior written consent of the other Party.
Notwithstanding the foregoing, either Party shall have the right to assign this Agreement to its Affiliates or to a third party in connection with any transaction (“Transaction”), including but not limited to: (i) acquisition
(of or by), consolidation with, or merger into, any other corporation or other entity or person; (ii) any corporate reorganization; or (iii) the sale of its business to which this Agreement is related, provided that in any
such Transaction the assignee expressly obligates itself in a written instrument delivered to the non-assigning Party to this Agreement, on or before the date of closing of such Transaction, to fully perform all of the obligations of the assigning
Party under this Agreement. This right of assignment shall likewise be available to the assignee in the same manner as it is to the assigning Party, and subsequent assignees in like manner, provided that in each instance of assignment, the assignee
provides the writing specified above to the non-assigning Party to this Agreement prior to the date of closing of such Transaction. 
  

Portions of the exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and
Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 24 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 12.7 Entire Agreement. This Agreement constitutes the entire agreement between the Parties, and
supersedes all written or oral agreements or understandings with respect thereto, including the Initial Agreement. Neither Party shall claim any amendment, modification, or release from any provision hereof unless such an amendment is in writing
signed by an authorized representative of each Party. 
 12.8 Counterparts; Facsimile. This Agreement may be executed in counterparts, each and every
one of which shall be deemed an original and all of which together shall constitute one and the same instrument. Signing and delivery of this Agreement may be evidenced by an electronic transmission of the signed signature page to the other Party,
provided however that such electronic signing and delivery is confirmed in written paper copy signed by and delivered to each Party promptly following electronic signing and delivery. 

[signatures continued on the following page] 
  

Portions of the exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and
Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 25 

 CONFIDENTIAL TREATMENT REQUESTED 

 

			
	Pieris AG:
		
	By:		/s/ Stephen S. Yoder
		
	Name:		Stephen S. Yoder
		
	Title:		CEO
		
	Date:		31 May 2011
	
	Daiichi Sankyo Company, Ltd.:
		
	By:		/s/ Masahiko Ohtsuki
		
	Name:		Masahiko Ohtsuki
		
	Title:		Vice President
		
			R&D Planning Department, R&D Division
		
			Global Head of R&D Planning
		
	Date:		20 May 2011

  
 Portions of the exhibit, indicated
by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange
Act of 1934, as amended. 

  
 26 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 Exhibit A 

Project Plan for first Program 
 [***]

 [***] 
  

							
	[***]		[***]		[***]		[***]
	[***]
	[***]		[***]		[***]
	[***]		[***]		[***]		
	[***]		[***]				
	[***]		[***]				
	[***]		[***]				
	 •       [***]
						
	[***]		[***]		[***]
	[***]		[***]				
	[***]		[***]				
	[***]		[***]				
	[***]						
	[***]		[***]		
	[***]						
	[***]		[***]		[***]
	[***]		[***]				
	[***]		[***]				
	[***]		[***]				
	[***]		[***]				
	[***]				[***]		
	[***]						
	[***]				[***]		[***]

  

Portions of the exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and
Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 27 

 CONFIDENTIAL TREATMENT REQUESTED 

 

							
	[***]		[***]				
				
	[***]						
				
	[***]						
	[***]		[***]		[***]		
				
	[***]						
	[***]						
	[***]		[***]		[***]		
	[***]		[***]		[***]		
				
	[***]						
	[***]		[***]		[***]		
	[***]		[***]		[***]		
	[***]						

 [***] 
  

Portions of the exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and
Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 28 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 Exhibit B 

[***] 
 [***] shall mean [***]. 

[***] shall mean any [***]). 
 [***] shall mean [***]. 

[***] shall mean [***]. 
 [***] shall mean [***]. 

[***] shall mean [***]. 
  

Portions of the exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and
Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 29 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 Exhibit C 

[***] 
  

Portions of the exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and
Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 30 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 Exhibit D 

[***] 
  

Portions of the exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and
Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 31 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 Exhibit E 

Dispute Resolution 
  

	(a)	Any dispute unresolved for more than [***] after its written documentation shall be brought to the attention of a senior management representative of each Party, who shall attempt to resolve such dispute in good faith.
If the senior management representatives of the Parties are unable to resolve a dispute within [***] days, the CEOs or presidents of the Parties shall attempt in good faith to resolve such dispute within [***] days. 

 

	(b)	If the CEOs or presidents are unable to resolve such dispute within such period, [***] Except as may be required by law, [***] to that effect [***] 

 
 Portions of the exhibit, indicated by the mark “[***],”
were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

  
 32EX-10.8

 Exhibit 10.8 

CONFIDENTIAL TREATMENT REQUESTED 

EXECUTION COPY 
 DEVELOPMENT AND
LICENSE AGREEMENT 
 THIS LICENSE AGREEMENT (the “Agreement”) is made and is effective as of this 7th day of October, 2013 (the “Effective Date”) by and between 
 Cadila Healthcare Limited,
a corporation organized and existing under the laws of India, whose principal place of business is at Zydus Tower, Satellite Cross Roads, Ahmedabad - 380 015, India (“Zydus”), 

and 
 Pieris AG, a corporation organized and existing under the
laws of Germany, whose principal place of business is at Lise-Meitner-Straße 30, 85354 Freising, Germany (“Pieris”). 
 Pieris and
Zydus are sometimes referred to herein individually as a “Party” and collectively as the “Parties”. 

RECITALS 
  

	A.	Pieris is engaged in the research and development of biopharmaceutical products and has developed a novel technology to develop Anticalin® proteins and proprietary know-how and data relating thereto;

  

	B.	Zydus is engaged in the research, development, manufacture and marketing of pharmaceutical and biopharmaceutical products, including but not limited to therapeutic proteins, monoclonal antibodies and vaccines.

  

	C.	Pieris and Zydus desire to grant each other certain exclusive license rights in the further research and development, clinical development and marketing & commercialization of the Products (hereinafter
defined), subject to and in accordance with the terms in this Agreement. 

 NOW, THEREFORE, in consideration of the foregoing
premises and the mutual covenants herein contained, the Parties hereby agree as follows: 
 ARTICLE 1 

DEFINITIONS 
 As used throughout this
Agreement, the singular includes the plural and vice versa, and words denoting any gender include all genders. Where the context so admits or requires, references to Zydus or Pieris shall include their respective employees, officers, directors or
agents. 
 “AFFILIATE” means any Person that directly (or indirectly through one or more intermediaries) controls, is controlled by, or is under
common control with a Party. For the purposes of this definition only, the terms “controls,” “controlled,” and “control” mean: (i) the direct or indirect ability or power to direct or cause the direction of the
management and policies of an entity or otherwise direct the affairs of such entity, whether through ownership of equity, voting securities or beneficial interest, by contract, or otherwise: or (ii) the ownership, directly or indirectly, of
more than fifty percent (50%) of the voting securities (or other comparable ownership interest for an entity other than a corporation) of a Party. 

“API” or “ACTIVE PHARMACEUTICAL INGREDIENT” means the active pharmaceutical ingredient of a Drug Product in bulk form such as a Drug
Substance, which, if appropriately formulated and finished, would constitute the Drug Product. For avoidance of doubt, API for Product 1 is the c-Met Anticalin, 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

 CONFIDENTIAL TREATMENT REQUESTED 

EXECUTION COPY 
  

 
(herein referred to as PRS-110) and API for Product 2 shall be determined by the CC pursuant to Section 3(3). 

“APPLICABLE LAWS” means all applicable statutes, ordinances, regulations, judicial decisions, rules or orders of any kind whatsoever of any
Governmental Authority, including, without limitation, the Regulatory Laws, all as amended from time to time. 
 “AUTHORIZED PERSONS” means
Recipient’s directors, officers, employees and professional advisors and consultants who are legally bound to keep confidential any of the Confidential Information disclosed by the Discloser on terms at least as onerous as those set out herein.

 “[***]” means [***] (for the sake of clarity, [*** ] among other information). 

“CALENDAR MONTH” means each successive period of 30/31 (or 28/29) days (as applicable) commencing on
1st day of every month and ending on the last day of that month. 
 “CALENDAR YEAR” means
each successive period of twelve (12) months commencing on January 1 and ending on December 31. 
 “CMC” means chemistry,
manufacturing and control. 
 “COMMERCIALIZATION” means all activities before and after a Marketing Approval for a Product or otherwise relating
specifically to the marketing, sale and/or distribution of Product including, without limitation: (i) sales force detailing, advertising, education, planning, marketing, sales force training and distribution; (ii) scientific and medical
affairs; (iii) the manufacture of Product intended for commercial sale, including, without limitation, formulation, bulk API and/or Drug Product production, fill/finish, distribution, manufacturing process improvement and quality assurance
technical support. 
 “COMMERCIALLY REASONABLE EFFORTS” means that level of effort and application of expertise and resource, typical in the
pharmaceutical industry in the research, development and commercialization of a product or compound owned by a Third Party or resulting from a Party’s own research efforts, that is of similar market potential and at a similar stage in its
development or product life, taking into account issues of safety and efficacy, product profile, difficulty in developing a Product, competitiveness of the marketplace for resulting products, the patent position of the compound or product, the
regulatory structure involved, the potential total profitability of the applicable products marketed or to be marketed, and other relevant factors affecting the cost, risk and timing of development and the total potential reward (profit) to be
obtained if a product is commercialized. 
 “CONFIDENTIAL INFORMATION” means the Pieris Confidential Information or the Zydus Confidential
Information, as applicable. 
 “CONTROL” or “CONTROLLED” means with respect to any intellectual property right, that the applicable
Party owns or has a license to such intellectual property right and has the ability to grant access, a license, or a sublicense to such intellectual property right to the other Party as provided for in this Agreement without violating an agreement
with a Third Party as of the time such Party would be first required under this Agreement to grant the other Party such access, license or sublicense; provided, however, that for rights acquired from Third Parties after the Effective Date, such
intellectual property right shall be deemed to be “CONTROLLED” only if such access can be granted without additional cost. 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
 2 

 CONFIDENTIAL TREATMENT REQUESTED 

EXECUTION COPY 
  

 “CO-ORDINATION COMMITTEE” or “CC” means the committee of representatives from each Party
established to co-ordinate the Pieris Activities and Zydus Activities, as further detailed in Section 3(3). 
 “DISCLOSER” means the Party
disclosing its Confidential Information to the other Party or to the other Party’s Authorized Persons pursuant to this Agreement. 

“DISPUTE” means any dispute arising from or relating to this Agreement, including, without limitation, the interpretation of any term of this
Agreement and/or the assessment of a Party’s compliance with any of its obligations under this Agreement. 
 “DEVELOPMENT” means all
activities undertaken under any Plan with respect to the clinical development of a Product that are reasonably required to obtain one or more Marketing Approvals of Product, including, without limitation: (i) pre-clinical studies (including,
without limitation, pharmacology, toxicology and pharmacokinetics); (ii) regulatory affairs, project management, clinical operations, medical writing, bio-statistics, data management and drug safety, and clinical trials (including without
limitation Bridging Studies) in accordance with the current Good Laboratory Practices (cGLPs), current Good Clinical Practices (cGCPs) and current Good Manufacturing Practices (cGMPs) or other designated quality standards and Applicable Laws;
(iii) all activities relating to developing the ability to manufacture such Product, including, without limitation, formulation, stability/analytical, packaging, delivery technologies and devices, bulk API and/or Drug Product production,
manufacturing fill/finish, manufacturing process development, and quality assurance technical support, clinical supplies distribution and QC (quality-control) testing and release, until such time as manufacturing of such Product intended for
commercial sale commences; and (iv) any required post-Marketing Approval commitments. 
 “DRUG PRODUCT” or “DP” means the final
dosage form which contains a Product in association with other active or inactive ingredients. 
 “DRUG SUBSTANCE” or “DS” means any
substance or mixture of substances, comprising a Product, intended to be used in the manufacture of a Drug Product and that, when used in the production of the Drug Product, becomes the Active Pharmaceutical Ingredient of the Drug Product. Such
substances are intended to furnish pharmacological activity or other direct effect in the diagnosis, cure, mitigation, treatment, or prevention of disease or to affect the structure and function of the body. 

“DCGI” means the Drug Controller General of India, or any successor federal agency having responsibility over India Marketing Approvals. 

“EMA” means the European Medicines Agency, or any successor federal agency having responsibility over Europe Union (EU) Marketing Approvals. 

“FDA” means the United States (U.S.) Food and Drug Administration, or any successor federal agency having responsibility over U.S. Marketing
Approvals. 
 “FIELD” means (i) with respect to Product 1 (PRS-110), [***] provided, however, [***] and (ii) with respect to Product 2,
t[***] to be agreed upon in good faith upon the nomination of Product 2 pursuant to Section 3(3). 
 “GOVERNMENTAL AUTHORITY” means any court
tribunal, arbitrator, agency, commission, official or other instrumentality of any federal, state, or other political subdivision, or supranational body, domestic or foreign. 

“ICH” means the International Conference on Harmonization. 

“ICH-GCP” means ICH / World Health Organization (WHO) Good Clinical Practice standards. 

“IMPROVEMENT” means any findings, developments, discoveries, inventions, additions, modifications, enhancements, formulations, or changes to the
composition of matter, or method of use of Product, or its manufacture made by, or coming under Control of either Party or Sublicensees during the Term which are 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
 3 

 CONFIDENTIAL TREATMENT REQUESTED 

EXECUTION COPY 
  

 
necessary for the Research and Development of a Product and/or the manufacture and Commercialization of the Product, including without limitation, new or improved methods of synthesis,
manufacture, ingredients, preparation, presentation, means of delivery, dosage, formulation, or analysis, whether or not patentable. 
 “IND
Application” means an Investigational New Drug Application (together with all additions, deletions, and supplements thereto) or the equivalent application in a regulatory jurisdiction, filed with the Regulatory Authority in that jurisdiction,
the filing of which is necessary to commence and conduct human clinical trials of a pharmaceutical product in that jurisdiction such as a Clinical Trial Authorization Application in European Union (EU). 

“INFORMATION” means any information controlled (including Controlled) by either Party during the Term that is necessary for the Research and
Development and/or the manufacture and Commercialization. Information may include, but is not limited to: (a) any and all inventions, know-how, developments, Improvements, materials, data, analyses, and the like, regardless of whether the
information is stored or transmitted in oral, documentary, or electronic form; and (b) information relating to research and development plans, experiments, results, compounds, therapeutic leads, candidates and products, clinical and preclinical
data, trade secrets and manufacturing, marketing, financial, regulatory, personnel and other business information and plans, and all scientific, clinical, regulatory, marketing, financial and commercial information or data; in each case, to the
extent necessary for the Research and Development and/or the manufacture and Commercialization. 
 “INVESTIGATIONAL MEDICAL PRODUCT” or
“IMP” means a pharmaceutical form of a DP or DS being tested in one or more clinical trials. 
 “JOINT ARISING IP” means all
intellectual property, including Improvements and any and all inventions, patents, copyrights and trademarks and other rights relating thereto, that arises from the joint research and development conducted by Zydus and Pieris, during the Term, under
the Plans, as well as during the term of the Prior MTA, and including without limitation, Joint Know-How and Joint Patents, but explicitly excluding (i) Pieris Arising IP & Zydus Arising IP and (ii) Pieris Confidential
Information & Zydus Confidential Information and (iii) Pieris Acquired IP & Zydus Acquired IP. 
 “JOINT KNOW-HOW” means
all Information that is created by Zydus and Pieris jointly, during the Term, under the Plans, but specifically excluding (i) Joint Patents and (ii) the Information contained in Joint Patents. 

“JOINT PATENTS” mean all Patents disclosing and/or claiming Joint Arising IP, together with the Information contained therein, to be registered by
the Parties jointly in the Territory in such manner as stated in Article 10. 
 “LICENSE” shall have the meaning provided under Article 2. 

“MARKETING APPROVAL” means the act of a Regulatory Authority necessary for the Commercialization of a Product for one or more indications in a
regulatory jurisdiction in the Territories, including, without limitation, the approval of an NDA by a Regulatory Authority and satisfaction of all applicable regulatory and notification requirements. 

“NDA” or “NEW DRUG APPLICATION” means an application or set of applications (and any other required registrations, notifications, forms,
amendments or supplements) for a Marketing Approval for a Product and/or pre-market approval to make and commercialize the Product, filed with a Regulatory Authority including, without limitation, all documents, data and other information concerning
a pharmaceutical product which are necessary for gaining the Marketing Approval. 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
 4 

 CONFIDENTIAL TREATMENT REQUESTED 

EXECUTION COPY 
  

 “NET SALES” means, with respect to a Product, the gross amount (excluding VAT or excise duty or
similar taxes) invoiced by Zydus or Pieris or any of their Affiliates or Sub-licensees to a Third Party that is not a Related Third Party, in the Zydus Territory / Pieris Territory as the case may be, less: 

 

	 	a)	[***]; 

  

	 	b)	[***]; 

  

	 	c)	[***]; 

  

	 	d)	[***]; 

  

	 	e)	[***]; and 

  

	 	f)	[***]. 

 Such amount shall be determined from the books and records of Zydus or Pieris or their
respective Sublicensees and Affiliates, as the case may be, maintained in accordance with any then-current Internationally-recognized accounting standard [***], in the case of Sublicensees or Affiliates, such similar accounting principles,
consistently applied. 
 “OUTLICENSE” and “OUTLICENSING” shall mean [***] pursuant to a Sub-license in accordance with Article 2. 

“PATENT” or “PATENTS” means in respect of a Product: (a) all patent applications (including provisional applications and applications
for certificates of invention); (b) all patents issuing from such patent applications (including certificates of invention); (c) all patents and patent applications based on, corresponding to, or claiming priority from any of the
foregoing; (d) all reissues, substitutions, confirmations, registrations, validations, re-examinations, additions, continuations, continued prosecution applications, continuations-in-part, or divisions of or to any of the foregoing; and
(e) all term extensions, supplementary protection certificates and other governmental action beyond the original patent expiration date. 

“PERSON” means a natural person, a corporation, a partnership, a trust, a joint venture, a limited liability company, any governmental authority or
any other entity or organization. 
 “PHASE I TRIAL” means a human clinical trial conducted in healthy volunteers or patients anywhere in the
world with a Product in accordance with ICH cGCP guidelines intended to establish an initial safety profile and the pharmacokinetics and/or pharmacodynamics of the Product. Phase I Trials shall include any Phase Ia Trial and any Phase Ib (multiple
ascending dose) Trial. In case of Oncology drug development expansion trials of Phase I that can lead to a Phase III approval or Marketing Approval will be considered. 

“PHASE II TRIAL” means a human clinical trial conducted in patients anywhere in the world with a Product in accordance with ICH cGCP guidelines and
intended to demonstrate efficacy and a level of safety of the Product in the particular indication tested, as well as to determine the unit and/or daily dosage regimen required for testing the Product in the following Phase III Trial. Phase II
Trials shall include any Phase IIa Trial and any Phase IIb Trial. 
 “PHASE III TRIAL” means a human clinical trial conducted in patients anywhere
in the world with a Product in accordance with ICH cGCP guidelines and intended to demonstrate efficacy and a level of safety of the Product in the particular indication tested sufficient to obtain the Marketing Approval of the Product from a
Regulatory Authority. 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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EXECUTION COPY 
  

 “PLAN” means a written plan for the Zydus Activities and Pieris Activities, prepared and approved
by the CC and implemented by Zydus and Pieris, respectively, on an ongoing basis. A copy of the initial Plan for the Zydus Activities and Pieris Activities is attached hereto as Schedule 3. Subsequent Plan(s), e.g. for Additional Product(s), will be
agreed between the Parties. 
 “PRODUCT(S)” means [***]. 

“PRODUCT 1” means an anti-c-Met Anticalin® protein, made using Pieris Technology [***]
(herein referred to as PRS-110); provided, however, that Product 1 shall exclude (i) [***]0 (ii) any PRS-110 drug conjugate and (iii) Additional Product(s) unless explicitly agreed by the Parties. 

“ADDITIONAL PRODUCT” means any [***] named by mutual agreement between the Parties after the Effective Date, including the Product 2 which will be
named between the Parties pursuant to Section 2(5)(c). 
 “PRODUCT LAUNCH” means [***]. 

“PIERIS ACQUIRED IP” means all Information, know-how, intellectual property, including Improvements and any and all inventions, Patents, copyrights
and trademarks and other rights, in each case necessary to the Development and/or Commercialization of a Product and over which Pieris acquires Control during the Term. 

“PIERIS ACTIVITIES” means the activities undertaken by Pieris under the Plans in relation to (i) the Research, Development, manufacture and
Commercialization of a Product in the Pieris Territory pursuant to the terms of this Agreement and (ii) its obligations in respect of the grant of the License and as stated in Article 3 and Schedule 3 herein. 

“PIERIS ARISING IP” means all intellectual property, including Improvements and any Information, inventions and Patents relating thereto, [***],
during the Term, under the Plans, as well as during the term of the Prior MTA. 
 “PIERIS CONFIDENTIAL INFORMATION” means all Pieris Rights and
all Information disclosed or provided by, or on behalf of, Pieris to Zydus in connection with this Agreement, whether by letter or by the use of an appropriate proprietary stamp or legend. Notwithstanding the foregoing, Information which is orally
or visually disclosed, or is disclosed in writing without an appropriate letter, proprietary stamp or legend, shall constitute Pieris Confidential Information if Pieris, within [***] days after such disclosure, delivers to Zydus a written document
or documents describing such Confidential Information and referencing the place and date of such oral, visual or written disclosure. 
 “PIERIS
KNOW-HOW” means (i) all Information that Pieris Controls as of the Effective Date relating to a Product and (ii) Pieris materials, in each case as is necessary to enable Zydus to conduct the Zydus Activities or exercise/use the
License granted hereunder. Pieris Know-How does not include the Pieris Patents. 
 “PIERIS PATENTS” means all Patents Controlled by Pieris as of
the Effective Date that are necessary to enable Zydus to conduct the Zydus Activities or exercise/use the License granted hereunder, together with the Information contained therein. 

“REVENUES” means [***]. Notwithstanding the foregoing, “Revenues” shall not include any payments that constitute: (a) [***];
(b) [***]; (c) [***]; (d) [***]; and (e) [***]. 
 “PIERIS RIGHTS” means Pieris Patents and Pieris Know-How. 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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 “PIERIS TERRITORY” means [***]. 

“PRIOR CDA” means the Mutual Confidential Disclosure Agreement, made on [***], by and between the Parties. 

“PRIOR MTA” means the Material Transfer Agreement, made on [***], by and between the Parties, wherein Pieris and Zydus have agreed that Zydus shall
conduct Research Program as set forth in Exhibit B attached to the Original Agreement. 
 “RECIPIENT” means the Party receiving the Confidential
Information from the other Party. 
 “REGULATORY AUTHORITY” means, in a particular country or geographical region (each, hereafter, is a
regulatory jurisdiction), any applicable Governmental Authority involved in granting Marketing Approvals and/or to the extent required in such country or region, pricing approval of a Product in such country or region, including without limitation:
(a) in India, the ICMR (Indian Council of Medical Research), DCGI, CDSCO (Central Drugs Standard Control Organization), and any other applicable Governmental Authority in India having jurisdiction over such Product, and any successor
Governmental Authority having substantially the same function; (b) in the U.S., the FDA, and any other applicable Governmental Authority in the U.S. having jurisdiction over such Product; and (c) any foreign equivalent of (a) or (b),
such as in EU, the EMA. 
 “REGULATORY LAW” means any applicable statutes, ordinances, regulations, rules or orders of any kind whatsoever of any
Governmental Authority governing the Development, import, export, manufacture or distribution of a Product (including, without limitation, Marketing Approvals) together with any rules and regulations promulgated thereunder. 

“REGULATORY MATERIALS” means any regulatory applications, submissions, notifications, registrations, approvals and/or other filings made to or with
a Regulatory Authority that may be necessary or reasonably desirable to research, develop, make, have made, use, sell, have sold, offer for sale and import/export Product, and shall include without limitation, NDAs and IND Applications or their
equivalents in other jurisdictions. 
 “REGULATORY SUBMISSION” means the submission by either Party or any of its Affiliates or Sublicensees of
Regulatory Materials to a Regulatory Authority for the purpose of seeking relevant or required approvals for a Product Launch including the Marketing Approval. 

“RESEARCH” means any and all activities undertaken under the Plans with respect to the research and pre-clinical evaluation of compounds for the
Development of a Product. 
 “RELATED THIRD PARTY” means any Third Party [***]. 

“SUBLICENSEE” means any Third Party to which either Party grants any right to make, have made, use, sell, have sold, offer for sale and/or
import/export Product in accordance with Article 2. For the avoidance of doubt, a [***]. 
 “TERM” has the meaning provided in Section 11(1).

 “TERRITORY” shall mean the Pieris Territory or the Zydus Territory, as applicable. 

“TERRITORIES” shall mean both the Pieris Territory and the Zydus Territory. 

“THIRD PARTY” means any Person other than Pieris or Zydus and their respective Affiliates. 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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 “TIMELINES” means those timelines to be met by Zydus or Pieris in relation to Zydus Activities or
Pieris Activities (as applicable) as set forth in Schedule 3 hereto, as may be agreed, updated and amended between the Parties. [***] 
 “ZYDUS
ACQUIRED IP” means all Information, know-how, intellectual property, including Improvements and any and all inventions, Patents, copyrights and trademarks and other rights, in each case necessary to the Development and/or Commercialization of a
Product and over which Zydus acquires Control during the Term. 
 “ZYDUS ACTIVITIES” means the activities undertaken by Zydus hereunder in
relation to (i) the Research, Development, manufacture and Commercialization in the Zydus Territory pursuant to the terms of this Agreement and (ii) its obligations in respect of the grant of the License and as stated in Article 3 and
Schedule 3 herein. 
 “ZYDUS ARISING IP” means all intellectual property, including Improvements and any Information, inventions and Patents
[***], during the Term, under the Plans, as well as during the term of the Prior MTA. 
 “ZYDUS CONFIDENTIAL INFORMATION” means all Zydus Rights
and all Information disclosed or provided by, or on behalf of, Zydus to Pieris in connection with this Agreement, whether by letter or by the use of an appropriate proprietary stamp or legend. Notwithstanding the foregoing, Information which is
orally or visually disclosed, or is disclosed in writing without an appropriate letter, proprietary stamp or legend, shall constitute Zydus Confidential Information if Zydus, within [***] days after such disclosure, delivers to Pieris a written
document or documents describing such Confidential Information and referencing the place and date of such oral, visual or written disclosure. 
 “ZYDUS
KNOW-HOW” means all Information that Zydus Controls as of the Effective Date relating to a Product, necessary to enable Pieris to conduct the Pieris Activities or exercise/use the License granted hereunder. Zydus Know-How does not include the
Zydus Patents. 
 “ZYDUS PATENTS” means all Patents Controlled by Zydus as of the Effective Date that are necessary to enable Pieris to conduct
the Pieris Activities or exercise/use the License granted hereunder, together with the Information contained therein. 
 “ZYDUS RIGHTS” means
Zydus Patents and Zydus Know-How. 
 “ZYDUS TERRITORY” means all regions/countries set forth in Schedule 4 attached hereto. 

ARTICLE 2 
 THE LICENSE

  

	1)	LICENSE GRANTS 

 a) Subject to the terms and conditions of this Agreement such as Section 2(5) and Article
4, Pieris hereby grants to Zydus (a) an exclusive [***] royalty-bearing license under the Pieris Rights, the Pieris Arising IP, the Pieris Acquired IP and Pieris’ interests in the Joint Arising IP and the Joint Patents, with the right to
grant sublicenses to Sublicensees, to use, have used, sell, have sold, offer for sale and import/export Product in the Zydus Territory in the Field; (b) a [***] license under the Pieris Rights, the Pieris Arising IP, the Pieris Acquired IP and
Pieris’ interests in the Joint Arising IP and the Joint Patents, with the right to grant sublicenses to Sublicensees, (i) to research, develop, make or have made a Product (including, without limitation, the DP or DS thereof) in the Zydus
Territory in the Field, by itself or 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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through an Affiliate or a Third Party; and (ii) to conduct Research and/or Development and manufacture of a Product (including, without limitation, the DP or DS thereof), by itself or
through an Affiliate or a Third Party, in the Pieris Territory in the Field so long as such activities are solely in support of Development and/or Commercialization in the Zydus Territory in the Field; and (iii) a [***], [***] license under the
Pieris Arising IP and Pieris’ interests in the Joint Arising IP, with the right to grant sublicenses, to exploit Zydus’ know-how and intellectual property available at Zydus before the Effective Date in a manner consistent with the terms
and conditions of this Agreement such as Subsections (a) and (b) above as well as Section 2(4). 
 b) Subject to the terms and conditions of
this Agreement such as Section 2(5) and Article 4, Zydus hereby grants to Pieris (a) [***] license under the Zydus Rights, the Zydus Arising IP, the Zydus Acquired IP and Zydus’ interests in the Joint Arising IP and the Joint Patents,
with the right to grant sublicenses to Sublicensees, to use, have used, sell, have sold, offer for sale and import/export Product in the Pieris Territory in the Field; (b) a [***] license under the Zydus Rights, the Zydus Arising IP, the Zydus
Acquired IP and Zydus’ interests in the Joint Arising IP and the Joint Patents, with the right to grant sublicenses to Sublicenses, but subject to Section 5(2), (i) to research, develop, make or have made a Product (including, without
limitation, the DP or DS thereof) in the Pieris Territory in the Field, by itself or through an Affiliate or a Third Party; and (ii) to conduct Research and/or Development and manufacture of a Product (including, without limitation, the DP or
DS thereof), by itself or through an Affiliate or a Third Party, in the Zydus Territory in the Field so long as such activities are solely in support of Development and/or Commercialization in the Pieris Territory in the Field; and (iii) a
[***] license under the Zydus Arising IP and Zydus’ interests in the Joint Arising IP, with the right to grant sublicenses, to exploit Pieris’ know-how and intellectual property available at Pieris before the Effective Date in a manner
consistent with terms and conditions of this Agreement such as Subsections (a) and (b) above Section 2(4), [***]. 
 c) The rights described
in the preceding paragraphs of this Section 2(1) are referred as the “License” in this Agreement. 
  

	2)	Formal Licenses 

  

	 	•	 	The Parties shall execute such formal licenses in accordance with terms and conditions set out in Section 2(1), whenever such formal licenses are necessary for registration with relevant patent offices and other
relevant authorities in particular countries throughout the Territories. 

  

	 	•	 	Prior to the execution of the formal licenses (if any) referred to in this Section 2(2), the Parties shall so far as possible have the same rights and obligations towards one another as if such licenses had been
granted. In the event of any conflict in meaning between any such license and the provisions of this Agreement, the provisions of this Agreement shall prevail wherever possible. 

 

	3)	NO IMPLIED LICENSES 

 Only the licenses granted pursuant to the express terms of this Agreement shall be of any
legal force or effect. No other license rights shall be created by implication, estoppel or otherwise. 
  

	4)	NON-COMPETE 

 The Parties agree that, during the Term [***], neither Party nor its Affiliate(s) shall, directly
or indirectly, (a) sell a Product (including, without limitation, the DP or DS thereof) in the other Party’s Territory in the Field or (b) enable a Third Party to sell the Product (including, without limitation, the DP or DS thereof)
in the other Party’s Territory in the Field. 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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	5)	COMMERCIALLY REASONABLE EFFORTS 

 a) Subject to Article 11 and Section 4(4), Zydus shall use Commercially
Reasonable Efforts in and take the overall responsibilities for (i) [***] and (ii) [***]. Further, Zydus shall use Commercially Reasonable Efforts [***]. Following [***] and during the Development, Zydus may sublicense the License to a
Third Party in accordance with this Article 2, to co-develop the Product with the Third Party within the Zydus Territory, provided, however, that [***]. 

b) Subject to Article 11 and Section 4(4) and following [***], Pieris shall use Commercially Reasonable Efforts in [***]. 

c) Subject to Article 11, both Parties shall use Commercially Reasonable Efforts to (i) name the Product 2 through the CC, and (ii) agree on its
respective Field and the financial rights and obligations between the Parties with respect to the Product 2; within [***] months after the Effective Date. 

ARTICLE 3 
 ZYDUS
ACTIVITIES; PIERIS ACTIVITIES; COORDINATION COMMITTEE. 
 1) SCOPE OF ZYDUS RESPONSIBILITIES 

a) SCOPE. Zydus shall control, be obligated to conduct, and be solely responsible for the Zydus Activities in accordance with the Plans. Zydus
shall perform the Zydus Activities with reasonable care and skill. Zydus Activities shall include, without limitation: 
  

	 	i.	Conducting and/or continuing to conduct the Research Program (as defined in the Prior MTA) in accordance with Exhibit B of the Prior MTA, including expressing Product 1 through Pieris Material set out in Schedule 5
attached hereto this Agreement; 

  

	 	ii.	Conducting animal [***] efficacy and toxicology testing necessary for the preparation and filing of IND Applications with the respective local Regulatory Authorities within the Zydus Territory (e.g. the DCGI in India)
for a Product, and which testing is acceptable per ICH-GCP guidelines; 

  

	 	iii.	Conducting suitable clinical trials [***] in the Zydus Territory as per ICH-GCP guidelines and conforming to the aforementioned Regulatory Authorities’ requirements for IND Applications. The sample size for
conducting clinical trials shall meet said Regulatory Authorities’ requirements, as detailed and agreed by the Parties through the CC. 

For avoidance of doubt, [***]. 
  

	 	iv.	Conducting clinical trials as per ICH-GCP guidelines and necessary for Marketing Approvals of the Product throughout the Zydus Territory; all aspects of such clinical trials, including but not limited to the trial
design and the number of patients enrolled, shall be as detailed and agreed by the Parties through the CC and set forth in the Plans; 

  

	 	v.	Developing and optimizing processes and procedures used to manufacture and formulate the Drug Product to achieve a yield that is sufficient to deliver adequate amounts of Drug Product for Development and
Commercialization; 

  

	 	vi.	Production of the Drug Substance for pre-clinical studies throughout the Development in the Zydus Territory per applicable Regulatory Authorities’ requirements; 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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	 	vii.	Performance of formulation, fill and finish of the Drug Substance and/or Drug Product and subsequent activities necessary for achieving the yield of Section 3(1)(a)(iv); 

 

	 	viii.	Manufacturing of the Drug Product per ICH-GMP guidelines, and conforming to the Indian Regulatory Authorities’ requirements, for Development and Commercialization and supplying sufficient amounts of Drug Product
for the clinical trials in the Zydus Territory as referred in Section 3(1)(a)(iii); and 

  

	 	ix.	Providing data (such as data of clinical trials and CMC data) to Regulatory Authorities within the Territories, when any one of said Authorities so requires from either Party or its Affiliates or Sublicensees.

 b) COSTS. Zydus shall be solely responsible for all costs and expenses arising from and/or relating to the Zydus Activities
from the Effective Date. Zydus shall also be solely responsible for all Third Party costs and expenses incurred by Zydus and not included in the Plans related to Research, Development and/or Commercialization. 

c) INFORMATION DISSEMINATION BY ZYDUS. Zydus shall promptly share with Pieris, and provide Pieris with total access to, all data and reports
generated by Zydus during the Term relating to Product, including all such data and reports generated pursuant to this Article 3 and Article 6, all Regulatory Materials, Zydus Arising IP, Joint Arising IP, Zydus Acquired IP, Zydus Know-How, safety
data information and other Information generated by Zydus on an “AS IS” basis, for use by Pieris with regard to the Development in the Pieris Territory. For the avoidance of doubt, [***]. Zydus shall fulfill its obligations under this
paragraph on at least a semi-annual basis throughout the Term. 
 2) SCOPE OF PIERIS RESPONSIBILITIES 

a) SCOPE. Pieris shall control, be obligated to conduct, and be solely responsible for the Pieris Activities in accordance with the Plans.
Pieris shall perform the Pieris Activities with reasonable care and skill. Pieris Activities shall include, without limitation: 
  

	 	i.	Conducting [***] experiments of a Product pursuant to the respective Plan; [***]; 

  

	 	ii.	Sharing the data, generated in Subsection (i) above, with Zydus, such as, [***]; 

  

	 	iii.	Transferring to Zydus all clones, know-how / technologies for cloning, and upstream-and/or-downstream-process-development know-how, available at Pieris, with respect to the Product; 

 

	 	iv.	Supporting Zydus in developing and optimizing processes and procedures used to manufacture and formulate the Drug Substance and/or the Drug Product; and 

 

	 	v.	Developing (together with Zydus) the clinical and regulatory strategy for the Product in the Zydus territory. 

  

	 	vi.	In case Pieris performs one or more clinical trials itself for a Product, the terms and conditions of this Agreement shall not change. 

 

	 	vii.	Providing then-existing data (such as data of clinical trials and CMC data) to Regulatory Authorities within the Territories, when any one of said Authorities so requires. 

b) COSTS. Pieris shall be solely responsible for all costs and expenses arising from and/or relating to the Pieris Activities [***] in the
Pieris Territory from the Effective Date. Pieris shall also be solely 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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responsible for all Third Party costs and expenses incurred by Pieris and not included in the Plans related to Research, Development and/or Commercialization. 

c) INFORMATION DISSEMINATION BY PIERIS. Pieris shall share with Zydus and provide (i) upon request of the CC, copies of clinical trial
results and stability data for Product in existence as of the Effective Date, and any data, materials, Pieris Arising IP, Joint Arising IP, Pieris Acquired IP, safety data information and other Information generated by Pieris during the Term
relating to Product, and (ii) Zydus with access to, and copies of, any technical information relating to Product and in its possession at the Effective Date and which is requested by a Regulatory Authority. The information described in
(i) and (ii) of the preceding sentence is for use by Zydus with regard to the Development solely in the Zydus Territory. For the avoidance of doubt, [***]. 

3) COORDINATION COMMITTEE 
 (a) Scope and
Responsibilities of the CC. For the purpose of open and effective communication between each Party on all ongoing matters with regard to the Zydus Activities and the Pieris Activities, the Parties shall, within [***] days of the Effective Date,
establish the CC and hold the first meeting. The purpose of the CC shall be to set the overall strategy for Development of a Product and to monitor and govern the activities of the Parties in relation to Research and Development and the
manufacturing and Commercialization, and the CC shall have the following specific responsibilities: 
 (i) Determination of
Additional Product(s), including Product 2; 
 (ii) Preparation of, and agreement upon, Plans; 

(iii) Modification and/or amendment of the Plans; 

(iv) Information and data dissemination and provision of detailed progress updates between the Parties related to the Zydus
Activities and the Pieris Activities; 
 (v) Oversight of [***] the Party’s Development, manufacture and
Commercialization activities conducted under this Agreement following [***]; and 
 (vi) Any other matters which the Parties
agree, throughout the Term, should be discussed by or decided upon by the CC. 
 (b) Membership. The CC will be comprised of at least [***]
members [***] and the initial membership shall be as set forth in Schedule 2. 
 (c) Chairmanship. The CC shall appoint a Chairman from
among its members. The role of Chairman shall be to convene and preside at meetings of the CC. The Chairmanship shall alternate between a Zydus member of the CC and a Pieris member of the CC, on a semi-annual basis. 

(d) Quorum and Decision-Making. The presence of at least [***] shall constitute a quorum for the purpose of consideration and action of the
CC. All decisions of the CC shall be unanimous vote, with each Party having one vote. In the event that the CC fails, after good faith efforts, to arrive at a decision, the matter shall be referred to the President or CEO of each Party for
resolution except for the situation referred in Section 3(3)(e) below. In the event that the President(s) or CEO(s) cannot resolve the matter within [***] days, the matter may be submitted for Dispute resolution pursuant to Article 12. 

(e) In case the CC is unable to reach a consensus, via unanimous vote, on [***], then [***]; provided, however, that [***]. 

(f) Meetings. The CC shall meet [***] throughout the Term. Such meetings may be in-person, via videoconference or via teleconference.
In-person meetings will be held alternately at Zydus’ premises at Ahmedabad, India and Pieris’ premises in Freising, Germany, unless the Parties otherwise agree. Each Party will bear the expenses of its participation in meetings. [***]
days prior to each meeting, each Party shall provide written notice to the other Party of agenda items for the meeting, together with appropriate information related thereto. The first CC meeting shall be held within [***] days of the Effective
Date. Non-member Authorized Persons of either Party can also attend such meetings. 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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 (g) Minutes. Material information provided or discussed at a CC meeting will be documented
and signed by both Parties within [***] days of the end of the meeting. Reasonably detailed written minutes will be kept of all meetings and will reflect, without limitation, material information provided at such meetings. Responsibility for
drafting the minutes will be held by the Party that has Chairmanship of the CC at the applicable meeting. The draft minutes are subject to the other Party’s review, comment and/or approval within [***] days of receipt from the drafting Party.
Failure by the other Party to provide comments within such [***] day period shall be deemed to be an approval of the applicable draft minutes. 
 4)
INFORMATION MANAGEMENT 
 The Parties agree to work together to identify methods appropriate for dissemination of information. Subject to the terms of this
Agreement, each Party shall ensure that upon reasonable notice, it shall: (i) make its employees and non-employee consultants reasonably available to the other Party on issues in relation to the Development, including, without limitation, on
regulatory, scientific, technical and clinical issues; and (ii) allow a reasonable number of appropriately qualified representatives of the other Party to have access to written records, accounts, notes, reports and data relating to the
activities hereunder. The CC shall be responsible for arranging such information audit(s) referred in Section 3(5) or other procedures. 
 5)
INFORMATION AUDITS AND SHARING 
 Pieris may carry out [***] of the facility of Zydus at which the Product(s) are manufactured, as well as the documentation
generated in connection with the manufacture and testing of Product(s), including all relevant standard operating procedures. Such audit, which shall typically last no longer than [***] days, will take place during regular business hours and upon no
less than four (4) weeks’ prior written notice by Pieris. In addition, Pieris shall be entitled to perform additional for cause audits upon [***] days’ prior written notice, including without limitation in the event of (i) any
documented [***] regarding the Product(s) or the process of making the Product(s) (for example but not limited to [***] or (ii) any [***] during a Regulatory Authority’s inspection or audit where such inspection or audit relates to the
Product(s) or the process of making the Product(s); and Zydus shall immediately share with Pieris any and all findings during a Regulatory Authority’s inspection or audit where such inspection or audit relates to the Product(s) or the process
of making the Product(s). All audits mentioned above will be carried out by Pieris at Pieris’ own costs but free of charge to Zydus. Notwithstanding the foregoing, [***]. 

6) DEBARMENT 
 In the course of the Development of Products,
neither Party shall use, during the Term, any employee, agent or independent contractor who has been debarred by any Regulatory Authority, or, to the best of such Party’s knowledge, is the subject of debarment proceedings by a Regulatory
Authority; 
 ARTICLE 4 

CONTINUED DEVELOPMENT AND COMMERCIALIZATION 

1) [***] 
 The Zydus Activities and the Pieris Activities are
intended to progress the clinical Development of each Product through the [***] conducted by Zydus in the Zydus Territory pursuant to the respective Plan, including, without limitation, [***]. 

2) CONTINUED ACTIVITIES IN A PARTY’S TERRITORY 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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 (a) [***], (i) [***] and (ii) [***]. In addition, the Parties may elect to co-develop such Product
[***] by mutual agreement. If both Parties elect to co-develop a Product, then the resulting ownership share shall be as the Parties mutually agree in a separate agreement. During the Term, each Development Party shall share all data generated in
the continued Development of a Product in its Territory with the non-Development Party, so long as neither Party has opted out under Section 4(4). 

(b) If, [***]y Pieris has not, [***], then Pieris shall [***]. If [***], or if [***], then [***]. 

3) CONTINUED DEVELOPMENT IN PORTIONS OF THE PIERIS TERRITORY [***] 

[***], if Pieris [***], Pieris shall promptly notify Zydus [***] and shall [***], wherein [***] will agree that (i) [***]; (ii) [***] For the
avoidance of doubt, [***]. For the avoidance of doubt, [***] under this Agreement [***]. 
 4) OPT-OUT OF DEVELOPMENT BY A PARTY IN ITS TERRITORY 

(a) [***], either Party shall be permitted to discontinue the Development and/or Commercialization of a Product and inform the other Party
about such discontinuation pursuant to Section 13(3), in which case the other Party shall have the right to elect, by notifying the first Party pursuant to Section 13(3), to continue the Development and/or Commercialization of the Product
and shall be designated as the sole-continuing Party for such Product. In case the other Party does so elect, it [***]. The Party ceasing to continue the Development and/or Commercialization of the Product (the “Opt-Out Party”) shall [***]
the Party continuing such Development and/or Commercialization (the “Continuing Party”). Further, the License granted by the Continuing Party to the Opt-Out Party hereunder shall terminate concurrently, and the License granted by the
Opt-Out Party to the Continuing Party hereunder shall survive such termination and remain in effect, subject to the terms and conditions of this Agreement applicable thereto. 

(b) Notwithstanding Article 7, the Opt-Out Party shall [***] in relation to [***] as follows: 

(i) if the Continuing Party [***], the Continuing Party will [***] in accordance with Section [***]; provided, however, that
[***] as mentioned in Section [***]; 
 (ii) if the Continuing Party [***], the Continuing Party will [***] in accordance
with Section [***]; 
 (iii) if the Continuing [***], the Continuing Party will [***]; provided, however, that [***] as
mentioned in Section [***]; and/or 
 (iv) if the Continuing Party [***], the Continuing Party [***] in accordance with
Section [***]. 
 (c) The Parties agree that the Opt-Out Party will be notified once [***]. For the avoidance of doubt, [***]. 

(d) [***] of same nature, related to [***] shall be agreed between the Parties in good faith [***]. 

5) OUTLICENSING 
 (a) Except where Pieris opts
out under Section 4(4), Pieris [***]. Terms of the Outlicensing agreement shall [***]. Pieris will keep Zydus regularly informed of the progress of any Outlicensing in the Pieris Territory through regular reports to the CC. Zydus [***]. During
the term, Pieris may Outlicense the Product in the Zydus Territory in case Zydus, during the Term, opts out under Section 4(4). 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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 (b) Zydus will, at Pieris’ request, cooperate in the preparation of such information and
materials, participate in such presentations, due diligence procedures and other meetings and otherwise contribute toward such efforts as may be required to negotiate and complete any such Outlicensing in the Pieris Territory. Zydus shall grant such
licenses and other rights to, and cooperate with, such Sublicensee as reasonably necessary to enable the Sublicensee to further develop and commercialize the Product in the Pieris territory and in the applicable Filed. 

(c) Payments by Pieris to Zydus in connection with [***] shall be made [***]. 

(d) During the Term [***] Territory, Zydus may Outlicense a Product [***], except where Zydus opts out under Section 4(4). During the
Term, Zydus may Outlicense the Product in the Pieris Territory in case Pieris opts out under Section 4(4). 
 (e) Nothing in this
Agreement shall [***]. 
 (f) Each Party will decide the procedures for Outlicensing the Product(s) in its respective Territory. Within
[***] days of [***] related to a Product in [***], in each case within the one Party’s Territory, that Party shall [***]. Any [***] shall be considered part of the providing Party’s Confidential Information. 

6) OUTLICENSING RESTRICTIONS 
 Neither Party shall contact Third
Parties to discuss any potential Outlicenses other than such Outlicenses as are permitted pursuant to Section 4(5). During the Term, each Party shall notify the other Party of any unsolicited contacts from Third Parties that relate to any
potential Outlicenses, except for such Outlicenses as are permitted pursuant to Section 4(5). 
 ARTICLE 5 

MANUFACTURING 
  

	1)	MANUFACTURING OF PRODUCT BY ZYDUS IN THE ZYDUS TERRITORY 

 For the avoidance of doubt, [***], [***]. 

 

	2)	MANUFACTURING AND SUPPLY AGREEMENT FOR THE PIERIS TERRITORY 

 Subject to Section [***], [***].
Notwithstanding the foregoing, [***], if [***], 
 Zydus shall use Commercially Reasonable Efforts and negotiate in good faith, with Pieris, its Affiliates,
its Sublicensees and/or its successor-in-interest, the manufacturing and supply terms for the Product (including the API thereof), to be undertaken at Zydus’ facilities, which shall be reflected in a definitive manufacturing and supply
agreement (the “Manufacturing and Supply Agreement”) containing customary terms and conditions of a contract manufacture and supply agreement, with the objective that Zydus is the world-wide supplier of the Product (including the API
thereof). Notwithstanding the foregoing, [***]. 
 [***] Notwithstanding the foregoing, [***]t, [***], provided, however, that the Third Party must be bound
by obligations of confidentiality and non-use at least as equivalent in scope as and no less restrictive than those set forth in this Article 8. [***]. 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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 ARTICLE 6 

REGULATORY 
  

	1)	GENERAL 

 Pieris and Zydus, respectively, shall assume sole responsibility for the preparation, submission and
maintenance of Regulatory Materials and for seeking Marketing Approvals in the Pieris Territory and the Zydus Territory, respectively. Such responsibilities shall include seeking necessary approvals from Regulatory Authorities for any label,
labeling, package inserts and packaging, samples and promotional materials to be used in their respective Territory for Product and continuing relations with, and responding to inquiries and other communications of, applicable Regulatory
Authorities. 
  

	2)	REGULATORY MATERIALS. 

 All Regulatory and Marketing Approvals in the Zydus Territory and the Pieris Territory,
respectively, shall be held in the respective name of, and shall be owned by, the respective Party. A Party shall consult with the other Party in its preparation of Regulatory Materials and in relation to any Regulatory Submission, and shall keep
each other fully informed of any Regulatory Authority review, and approval of Regulatory Materials filings and Regulatory Submission in their respective Territory. Each Party shall be entitled to integrate data within the other Party’s Control
into its Regulatory Materials and, pursuant to the terms of this Agreement, shall have full access to the manufacturing data within the other Party’s Control to assist with preparation of its Regulatory Materials. Neither Party shall file any
Regulatory Materials with any Regulatory Authority without the prior written consent of the other Party, such consent not to be unreasonably withheld, conditioned or delayed in light of the intent and purposes of this Agreement. 

 

	3)	GENERAL REGULATORY ASSISTANCE AND ACCESS TO REGULATORY INFORMATION. 

 Each Party will cooperate and provide the
other Party with all Information and assistance reasonably necessary for such other Party to carry out and comply with any regulatory obligations or requirements of Regulatory Authorities for each Product in connection with the Research and/or
Development and/or the manufacture and/or Commercialization in such other Party’s Territory to the extent contemplated under the terms and intent of this Agreement, including, without limitation, providing such Information and assistance to
such other Party as is necessary for such other Party to: (i) submit, obtain, maintain and update Regulatory Material for each Product with Regulatory Authorities in such other Party’s regulatory jurisdiction (including, without
limitation, sharing clinical data, pre-clinical data, Development data, manufacturing data, and notes and documents related to discussions with Regulatory Authorities in connection with such Regulatory Material); (ii) submit or file promotional
materials with Regulatory Authorities in connection with the Products in the other Party’s regulatory jurisdiction; and (iii) comply with any other requirements of Regulatory Authorities in connection with the Products in the other
Party’s regulatory jurisdiction. 
 ARTICLE 7 

PAYMENTS, TERM AND FINANCIAL REPORTING 

1) PAYMENTS [***] 
 a) DEVELOPMENT
MILESTONE PAYMENTS [***] 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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 To the extent [***], Zydus shall pay to Pieris milestone payments in accordance with the
following schedule and amounts: 
  

					
	 Stage
	  	Amount (USD)	 
	 [***]
	  	$	1,000,000	  

 b) DEVELOPMENT MILESTONE PAYMENTS [***] 

To the extent [***], Pieris shall pay to Zydus milestone payments in accordance with the following schedule and amounts: 

 

					
	 Event
	  	Amount (USD)	 
	 [***]
	  	$	 [***]	  
	 [***]
	  	$	[***]	  

 2) [***] 

If [***], Pieris shall share the Revenue with Zydus in accordance with [***] as stipulated below: 

 

					
	 Development Phase in the Zydus Territory by Zydus
	  	 Pieris
	  	 Zydus

	[***]	  	[***]	  	[***]
			
	[***]	  	[***]	  	[***]
			
	[***]	  	[***]	  	[***]
			
	[***]	  	[***]	  	[***]

 Pieris agrees that if [***], then Pieris shall share [***] of such [***] Revenue with Zydus. If [***], then
Pieris and Zydus shall [***]. 
 Pieris agrees to promptly notify Zydus [***], to provide a reasonable amount of time for an audit set forth
in this [***]. For the avoidance of doubt, [***]. 
 (B) [***] 

Upon and following [***], Revenue [***] in [***] shall be shared between the Parties in the following proportion: 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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	 Pieris
	  	 Zydus

	[***]	  	[***]

 Zydus agrees to promptly notify Pieris [***]. 

3) ROYALTY OBLIGATIONS. 
 a) ROYALTY
PAYABLE TO PIERIS 
 For [***], except [***], Zydus shall pay Pieris a [***] tiered royalty as described in Section 7(3)(c) on all Net
Sales sold by Zydus and its Affiliates (x) in the Zydus Territory [***], or (y) in the Pieris Territory, in case Pieris opts out and Zydus elects to continue under Section 4(4); provided, however, that, in the Pieris Territory, the
[***]% tiered royalty will [***]. All royalty payments due under this Section 7(3)(a) (“Zydus’ Royalty Obligation”) shall be made on a quarterly basis (i.e., within thirty (30) days after 31st March, 30th June, and 30th September and 31st December). For clarity, [***]. 
 b) ROYALTY PAYABLE TO ZYDUS 

For [***], except [***], [***], Pieris shall pay Zydus a [***]% tiered royalty as described in Section 7(3)(c) on all Net Sales sold by
Pieris and its Affiliates (x) in the Pieris Territory [***], or (y) in the Zydus Territory, in case Zydus opts out and Pieris elects to continue under Section 4(4); provided, however, that, in the Pieris Territory, the [***] tiered
royalty will [***]. All royalty payments due under this Section 7(3)(b) (“Pieris’ Royalty Obligation”) shall be made on a quarterly basis (i.e,. within thirty (30) days after
31st March, 30th June, and 30th September and 31st December). For clarity, [***]. 
 c) TIERED ROYALTY RATES 

 

					
	 Net-Sales (USD)
	  	Royalty rate	 
	 [***]
	  	 	[***	]% 
	 [***]
	  	 	[***	]% 
	 [***]
	  	 	[***	]% 

 4) PAYMENT CONDITIONS.  

The payment obligation of the Parties hereunder shall accrue as and when a Party or its respective Affiliates (as applicable) first receives any such amounts
that bear (i) the Royalty Obligations on Net Sales set forth in Section 7(3) or (ii) the Revenue Obligations set forth in Section 7(1) ((i) and (ii) as applicable), respectively (each a “Payment Obligation”).
Notwithstanding the foregoing, the Payment Obligation of one Party shall be subject to the following conditions, as may be applicable: 
  

	 	a)	[***]; 

  

	 	b)	[***]; 

  

	 	c)	[***]; 

  

	 	d)	[***]. 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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	 	e)	[***]. 

 5) PAYMENT TERM. One Party’s Royalty Obligation under Section 7(3)will terminate upon
the date which is the later of: (i) [***]; or (ii) [***] provided that, [***]. 
 6) REPORTS. Following (x) the accrual of a
Party’s payment obligations arising from Sections 7(1), 7(2) and/or 7(3) above (hereafter “Payment Obligations”) and (y) until this Agreement expires or is terminated under Article 11 (the duration between (x) and
(y) is hereafter referred as the “Reporting Period”), such Party, on behalf of itself, its Affiliates and Sublicensees, shall furnish to the other Party a written report on [***] basis [***], accounting for the Net Sales of the
Product subject to royalty obligations sold by it and/or its Affiliates in its Territory during the Reporting Period and any Pieris Revenue or Zydus Revenue, as the case may be, subject to the Payment Obligations, received by it and/or its
Affiliates during the Reporting Period, and detailing the Payment Obligations under this Agreement. Each such report shall state, separately for such Party and each Affiliate, the number, description, and aggregate Pieris Revenues or Zydus Revenues,
as the case may be, and aggregate Net Sales, on a [***] basis during the calendar quarter during which a Payment Obligation is payable. The reports required pursuant to this Section 7(6) shall be provided to the other Party contemporaneously
with the payment of the Payments Obligations hereunder. All sums due under this Agreement shall be made by the due date, failing which a Party may charge the other Party interest on any outstanding amount on a [***] basis at a rate [***].

 7) MAINTENANCE OF RECORDS. The Parties shall keep and maintain (and cause to be kept and maintained) complete and accurate records of the Net
Sales and Pieris Revenues and Zydus Revenues, as the case may be, by such Party and/or their respective Affiliates and Sublicensees. The Parties shall retain such records for [***] years after the close of any Calendar Year. 

8) FINANCIAL AUDITS. 
 (a) Upon [***]
days’ prior written notice, no more frequently than [***] in each period of [***] months and no later than [***] years following the applicable period of time, an independent certified public accounting firm of nationally recognized standing,
reasonably acceptable to the Parties, at the expense of the Party initiating such request, shall have access during normal business hours to such of the records of the other Party and its Affiliates, as applicable, as may be reasonably necessary to
verify the accuracy of the Revenue/royalty reports (as applicable) hereunder in relation to Net Sales as applicable, and any royalties or other payments due thereon. The accounting firm shall be under a duty to keep confidential any other
information obtained from such reports. Each Party shall cooperate with the audit. The results of any audit shall be shared by the auditing Party with the audited Party. The fees charged by such accounting firm shall be paid by the Party initiating
such request; provided, however, that if there is a discrepancy of an underpayment of more than [***] in the Royalty/Revenue amounts, the Party initiating the request may (i) charge the other Party interest on any outstanding amount on a [***]
basis at a rate equivalent to [***], and (ii) [***]. 
 (b) If such accounting firm concludes that additional payments were owed
during such period, the Party so owing the payment shall pay the additional payments within [***] days of the date the other Party delivers to the Party owing the payment, such accounting firm’s written report so correctly concluding; provided,
however, that [***], [***]. 
 (c) Each Party shall include in each sublicence granted by it pursuant to this Agreement a provision
requiring its respective Sublicensees to make reports to it, to keep and maintain records of sales made pursuant to such sublicence and to grant access and audit rights to such records by the mutually selected independent accountant. 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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 (d) The Parties shall treat all financial information subject to review under this Article 7
or under any sublicence agreement, in accordance with the confidentiality provisions of this Agreement, and shall cause the accounting firm to enter into a reasonably acceptable confidentiality agreement with the concerned Party obligating it to
retain all such financial information in confidence pursuant to such confidentiality agreement. 
 9) PAYMENT CURRENCY AND EXCHANGE RATE. All
payments to be made by either Party to the other Party under this Agreement shall be made in U.S. dollars (USD) and shall be paid by bank wire transfer to such bank account designated in writing by the other Party from time to time. In the case of
sales/revenues which are invoiced/recorded in a foreign currency exchange, conversion of such sales into USD will be made on a [***] basis and shall be made at the rate of exchange [***]. 

10) INCOME TAX WITHHOLDING. Where any sum due to be paid to Pieris/Zydus (as applicable) hereunder shall be subject to any withholding tax, the Parties
shall use all reasonable efforts to do all such acts and things and to sign all such documents as will enable them to take advantage of any applicable taxation treaty or agreement. In the event there is no applicable taxation treaty or agreement, or
if an applicable taxation treaty or agreement reduces but does not eliminate such withholding or similar tax, the concerned Party shall pay such withholding or similar tax to the appropriate Governmental Authority, deduct the amount paid from the
amount due to Pieris/Zydus (as applicable), and secure and send to Pieris/Zydus (as applicable) the best available evidence of such payment sufficient to enable Pieris/Zydus (as applicable) to obtain a deduction for such withheld taxes or obtain a
refund thereof including, without limitation, when received, a copy of the official tax receipt evidencing payment of such tax to the appropriate taxing authority. 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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 ARTICLE 8 

CONFIDENTIALITY 
 1) CONFIDENTIALITY 

Except to the extent expressly authorized by this Agreement or otherwise agreed in writing by the Parties, the Recipient agrees that, for the Term and for
[***] years thereafter, it shall keep confidential and shall not publish or otherwise disclose and shall not use for any purpose other than as provided for in this Agreement (which includes the exercise of any rights or the performance of any
obligations hereunder) any Confidential Information furnished to it by the Discloser pursuant to this Agreement except for that portion of such Information that the Recipient can demonstrate by competent written proof: 

(a) was already known to the Recipient or any of its Affiliates, other than under an obligation of confidentiality to the Disclosing Party, at
the time of disclosure by the Discloser; 
 (b) was generally available to the public or otherwise part of the public domain at the time of
its disclosure to the Recipient; 
 (c) became generally available to the public or otherwise part of the public domain after its disclosure
and other than through any act or omission of the Recipient in breach of this Agreement; 
 (d) is subsequently disclosed to the Recipient
or any of its Affiliates by a Third Party without obligations of confidentiality to the Discloser with respect thereto; or 
 (e) is
subsequently independently discovered or developed by the Recipient or its Affiliate without the aid, application, or use of Confidential Information of the Discloser. 
  

	2)	AUTHORIZED DISCLOSURE 

 Each Party may disclose Confidential Information belonging to the other Party to the
extent such disclosure is reasonably necessary in the following situations: 
 (a) filing or prosecuting Patents in accordance with Article
10; 
 (b) subject to Section 8(3), regulatory filings and other filings with Governmental Authorities (including Regulatory
Authorities), including filings with the FDA, as necessary for the Development or Commercialization, as required in connection with any filing, application or request for Regulatory Approval; provided, however, that reasonable measures will be taken
to assure confidential treatment of such information; 
 (c) prosecuting or defending litigation; 

(d) complying with Applicable Law, including regulations promulgated by securities exchanges; 

(e) subject to Section 8(3), complying with Applicable Laws, including regulations promulgated by securities exchanges; 

(f) disclosure to its Affiliates, Authorized Persons, independent contractors, licensors and any Sublicensees (including prospective
Sublicensees), but only on a need-to-know basis and solely in connection with the performance of this Agreement, provided that each aforementioned disclosee must be bound by obligations of confidentiality and non-use at least as equivalent in scope
as and no less restrictive than those set forth in this Article 8 prior to any such disclosure; 
 (g) disclosure of the material terms of
this Agreement to any bona fide potential or actual investor, stockholder, investment banker, acquirer, merger partner or other potential or actual financial partner; provided that each aforementioned disclosee must be bound by obligations of
confidentiality and 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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non-use at least as equivalent in scope as and no less restrictive than those set forth in this Article 8 prior to any such disclosure; 

(h) disclosure of the stage of Development of Products under this Agreement to any bona fide potential or actual investor, stockholder,
investment banker, acquirer, merger partner or other potential or actual financial partner; provided that each aforementioned disclosee must be bound by obligations of confidentiality and non-use at least as equivalent in scope as and no less
restrictive than those set forth in this Article 8 prior to any such disclosure; 
 (i) disclosure of any blinded data generated under this
Agreement to any bona fide potential or actual investor, stockholder, investment banker, acquirer, merger partner or other potential or actual financial partner; provided that each aforementioned disclosee must be bound by obligations of
confidentiality and non-use at least as equivalent in scope as and no less restrictive than those set forth in this Article 8 prior to any such disclosure; and 

(j) disclosure pursuant to Section 5(3)). 

Notwithstanding the foregoing, in the event a Party is required to make a disclosure of the other Party’s Confidential Information pursuant to Sections
8(2)(a), 8(2)(b), 8(2)(c) or 8(2)(d), it will, except where impracticable, give reasonable advance notice to the other Party of such disclosure and use reasonable efforts to secure confidential treatment of such information. In any event, the
Parties agree to take all reasonable action to avoid disclosure of Confidential Information hereunder. 
  

	3)	PUBLICITY; TERMS OF AGREEMENT 

 (a) The Parties agree that the material terms of this Agreement
are the Confidential Information of both Parties, only subject to the special authorized disclosure provisions set forth in Section 8(2) and this Section 8(3). The Parties agree to make a joint public announcement of the execution of this
Agreement substantially in the form of the press release attached as Schedule 6 on or after the Effective Date. 
 (b) After issuance of
such joint press release, if either Party desires to make a public announcement concerning the material terms of this Agreement, such Party shall give reasonable prior advance notice of the proposed text of such announcement to the other Party for
its prior review and approval (except as otherwise provided herein), such approval not to be unreasonably withheld in light of the intent and purposes of this Agreement, except that in the case of a press release or governmental filing required by
Applicable Laws (where reasonably advised by the disclosing Party’s counsel), the disclosing Party shall provide the other Party with such advance notice as it reasonably can and shall not be required to obtain approval therefor. A Party
commenting on such a proposed press release shall provide its comments, if any, within [***] days (or within three (3) business days in the event that one Party (or its Affiliate) is a public reporting company) after receiving the press release
for review and the other Party shall give good faith consideration to same. Neither Party shall be required to seek the permission of the other Party to repeat any information regarding the terms of this Agreement that have previously been publicly
disclosed by such Party, or by the other Party, in accordance with this Section 8(3). For clarity, [***]. 
 (c) The Parties
acknowledge that either or both Parties may be obligated to file under Applicable Laws a copy of this Agreement with the Government Authorities of country where each Party is domiciled or has a public listing. Each Party shall be entitled to make
such a required filing, provided that it requests confidential treatment of at least the financial terms and sensitive technical terms hereof and thereof to the extent such confidential treatment is reasonably available to such Party. In the event
of any such filing, each Party will provide the other Party with a copy of this Agreement marked to show provisions for which such Party intends to seek confidential treatment not less than five (5) Business Days prior to such filing (and any
revisions to such portions of the proposed filing a reasonable time prior 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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to the filing thereof), and shall reasonably consider the other Party’s comments thereon to the extent consistent with the legal requirements, with respect to the filing Party, governing
disclosure of material agreements and material information that must be publicly filed, and shall only disclose Confidential Information which it is advised by counsel or the applicable Governmental Authority is legally required to be disclosed. No
such notice shall be required under this Section 8(3)(c) if the substance of the description of or reference to this Agreement contained in the proposed filing has been included in any previous filing made by either Party hereunder or otherwise
approved by the other Party. 
 (d) Each Party shall require each of its Affiliates and private investors to which Confidential Information
of the other Party is disclosed as permitted hereunder to comply with the covenants and restrictions set forth in this Article 8 as if each such Affiliate and each such investor were a Party to this Agreement and shall be fully responsible for any
breach of such covenants and restrictions by any such Affiliate or investor. 
  

	4)	PUBLICATIONS 

 (a) Neither Party shall publicly present or publish results of studies carried
out under this Agreement (each such presentation or publication a “Publication”) without the opportunity for prior review by the other Party, except to the extent otherwise required by Applicable Law, in which case Section 8(3) shall
apply with respect to disclosures required by the SEC and/or for regulatory filings. The submitting Party shall provide the other Party the opportunity to review any proposed Publication at least [***] days prior to the earlier of its presentation
or intended submission for publication. The submitting Party agrees, upon request by the other Party, not to submit or present any Publication until the other Party has had [***] days to comment on any material in such Publication. The submitting
Party shall consider the comments of the other Party in good faith, but will retain the sole authority to submit the manuscript for Publication; provided that the submitting Party agrees to delay such Publication as necessary to enable the Parties
to file a Patent if such Publication might adversely affect such Patent. The submitting Party shall provide the other Party a copy of the Publication at the time of the submission or presentation. Notwithstanding the foregoing, Zydus shall not have
the right to publish or present Pieris’ Confidential Information without Pieris’ prior written consent, and Pieris shall not have the right to publish or present Zydus’ Confidential Information without Zydus’ prior written
consent. Each Party agrees to acknowledge the contributions of the other Party, and the employees of the other Party, in all publications as scientifically appropriate. 

(b) Nothing contained in this Section 8(4) shall prohibit the inclusion of information in a patent application claiming, and in
furtherance of, the manufacture, use, sale or formulation of a Product, provided that the non-filing Party is given a reasonable opportunity to review, comment upon and/or approve the information to be included prior to submission of such patent
application, where and to the extent required by Article 10 hereof. 
 (c) Notwithstanding Article 10, the Parties recognize that
independent investigators have been engaged, and will be engaged in the future, to conduct clinical trials of Products. The Parties recognize that such investigators operate in an academic environment and may release information regarding such
studies in a manner consistent with academic standards; provided that each Party will use reasonable efforts (e.g. through contractual relationship with said investigators) to prevent publication prior to the filing of relevant patent applications
and to ensure that no Confidential Information of either Party is disclosed. 
  

	5)	TERMINATION OF PRIOR CDA AND PRIOR MTA. 

 This Agreement terminates, as of the Effective Date, the Prior CDA as
well as the Prior MTA. All Information exchanged between the Parties under the Prior CDA as well as the Prior MTA and/or obtained by either Party under the Prior MTA shall be deemed Confidential Information of the corresponding Party under this
Agreement and shall be subject to the terms of this Article 8. 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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 ARTICLE 9 

WARRANTIES AND INDEMNITIES 
 1) PIERIS
WARRANTIES 
 Pieris warrants, represents and undertakes to Zydus that, to the best of Pieris’ knowledge, on and before the Effective Date: 

 

	 	I.	It is a corporation duly organized, validly existing, and in good standing under the laws of the jurisdiction in which it is incorporated, and has full corporate power and authority and the legal right to own and
operate its property and assets and to carry on its business as it is now being conducted and as contemplated in this Agreement, including the right to grant the licenses granted by it hereunder; 

 

	 	II.	It has the full corporate power and authority and the legal right to enter into this Agreement and perform its obligations hereunder. It has taken all necessary corporate action on its part required to authorize the
execution and delivery of this Agreement and the performance of its obligations hereunder. This Agreement has been duly executed and delivered on behalf of Pieris, and constitutes a legal, valid, and binding obligation of Pieris that is enforceable
against it in accordance with its terms; 

  

	 	III.	It is not a party to any agreement, outstanding order, judgment or decree of any court or Governmental Authority that would prevent it from granting the rights granted to Zydus under this Agreement or performing its
obligations under this Agreement; 

  

	 	IV.	It has not, and will not, after the Effective Date and during the Term, grant any right to any Third Party that would conflict with the rights granted to Zydus hereunder; 

 

	 	V.	Pieris is [***]. 

  

	 	VI.	Schedule 1 contains a complete listing of all Pieris Patents [***] as of the Effective Date; 

  

	 	VII.	Pieris has sufficient legal and/or beneficial title, ownership or license under the Pieris Rights to grant the licenses to Zydus as purported to be granted pursuant to this Agreement; and 

 

	 	VIII.	There are no written allegations or pending proceedings which assert that the Development, use or sale of a Product infringes or will infringe Third Party rights or which challenge the validity or enforceability of the
Pieris Patents. 

 2) ZYDUS WARRANTIES 
 Zydus
warrants, represents and undertakes to Pieris that, to the best of Zydus’ knowledge, as of the Effective Date: 
  

	 	I.	It is a company or corporation duly organized, validly existing, and in good standing under the laws of the jurisdiction in which it is incorporated, and has full corporate power and authority and the legal right to own
and operate its property and assets and to carry on its business as it is now being conducted and as contemplated in this Agreement, including the right to grant the licenses granted by it hereunder; 

 

	 	II.	 It has the full corporate power and authority and the legal right to enter into this Agreement and perform its obligations hereunder. It has taken all
necessary corporate action on its part required to 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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authorize the execution and delivery of this Agreement and the performance of its obligations hereunder. This Agreement has been duly executed and delivered on behalf of Zydus, and constitutes a
legal, valid, and binding obligation of Zydus that is enforceable against it in accordance with its terms; 

  

	 	III.	It is not a party to any agreement, outstanding order, judgment or decree of any court or Governmental Authority that would prevent it from granting the rights granted to Pieris under this Agreement or performing its
obligations under this Agreement; 

  

	 	IV.	It has not, and will not, after the Effective Date and during the Term, grant any right to any Third Party that would conflict with the rights granted to Pieris hereunder; 

 

	 	V.	it is the exclusive legal and beneficial owner of all rights, title and interest in the Zydus Rights, and there are no liens, encumbrances or other charges over any of them; 

 

	 	VI.	Zydus [***] upon the terms and conditions of this Agreement [***] under this Agreement; 

  

	 	VII.	Zydus will perform its obligations hereunder with reasonable care and skill; 

  

	 	VIII.	there are no written allegations or claims that Zydus is not entitled to the Zydus Rights; 

  

	 	IX.	it shall make a full and complete disclosure to Pieris of all Zydus relationships with Third Parties which may affect Pieris’ complete exercise of rights under this Agreement; 

 

	 	X.	in the event of Zydus becoming aware of any information which might affect its ability to give the warranties and representations set out above it shall promptly notify Pieris. 

3) MUTUAL INDEMNIFICATION 
 a) ZYDUS’
OBLIGATION. Zydus will defend, indemnify, and hold harmless Pieris from and against any and all liabilities, damages, losses, penalties, fines, costs, interest, and expenses, including, without limitation, reasonable attorneys’ fees
(collectively, “Damages”), direct or indirect, arising from or occurring as a result of (i) a Third Party’s claim, action, suit, judgment, or settlement against Pieris (collectively, “Claims”, and each a
“Claim”) arising out of the Development, preclinical and clinical testing, manufacture, distribution, Commercialization and/or use (including but not limited to product liability claims and claims for infringement of any Third Party
intellectual property rights) of any Product, done by Zydus, its Affiliates or Sublicensees, or (ii) any breach by Zydus of an obligation, agreement, condition, covenant, representation, or warranty of Zydus under this Agreement; provided,
however, that Zydus will not be obligated to indemnify or hold harmless Pieris from Damages under (i) and (ii) above to the extent that such Damages have resulted from (i) the grossly negligent (or more culpable e.g. willful) act or
omission of Pieris or (ii) any breach by Pieris of an obligation, agreement, condition, covenant, representation, or warranty of Pieris under this Agreement or (iii) Pieris’ Rights or Joint Arising IP. 

 

	 	b)	 PIERIS’ OBLIGATION. Pieris will defend, indemnify, and hold harmless Zydus from and against any and all liabilities, damages, losses, penalties,
fines, costs, interest, and expenses, including, without limitation, reasonable attorneys’ fees (collectively, “Damages”), direct or indirect, arising from or occurring as a result of (i) a Third Party’s claim, action, suit,
judgment, or settlement against Zydus (collectively, “Claims” and each a “Claim”)) arising out of the Development, preclinical and clinical testing, manufacture, distribution, Commercialization and/or use (including but not
limited to product liability claims and claims for infringement of any Third Party intellectual property rights) of any Product, done by Pieris, its Affiliates or Sublicensees, or (ii) any breach by Pieris of an obligation, agreement,
condition, covenant, representation, or warranty of Pieris 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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under this Agreement; provided, however, that Pieris will not be obligated to indemnify or hold harmless Zydus from Damages under (i) and (ii) above to the extent that such Damages have
resulted from (i) the grossly negligent (or more culpable e.g. willful) act or omission of Zydus or (ii) any breach by Zydus of an obligation, agreement, condition, covenant, representation, or warranty of Zydus under this Agreement or
(iii) Zydus’ Rights or Joint Arising IP. 
  

	 	c)	INDEMNIFICATION PROCEDURE. Notwithstanding foregoing, Section 9(3)(a) or Section 9(3)(b) will not apply, unless the following (i), (ii) (iii) and (iv) are all satisfied: (i) when the
respective Party (the “Indemnitee”) seeks indemnification from the other Party (the “Indemnitor”) with respect to any Claim, the Indemnitee shall provide written notice of the Claim to the Indemnitor as soon as reasonably
practicable upon becoming aware of the Claim; (ii) the Indemnitor shall be entitled, but shall not be obligated, to participate in or assume the defence of the Claim; provided, however, that if the defence is assumed, the Indemnitor shall,
through legal representative chosen by it at its cost, act reasonably, and the Indemnitee shall also have the right, but not the obligation, to employ separate legal representative, in which event the fees and expenses of such second legal
representative shall be borne by the Indemnitee; (iii) the Indemnitee shall reasonably cooperate with the Indemnitor and its legal representative in the investigation or defence of such Claim; (iv) no Claim may be settled by the Indemnitor
without the prior written consent of the Indemnitee. 

 4) LIMITATION OF LIABILITY. 

NEITHER PARTY WILL BE LIABLE TO THE OTHER PARTY FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, OR SPECIAL DAMAGES INCLUDING, BUT NOT LIMITED TO, LOST
PROFITS ARISING FROM OR RELATING TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH DAMAGES. HOWEVER, NOTHING IN THIS SECTION IS INTENDED TO LIMIT OR RESTRICT THE INDEMNIFICATION RIGHTS OR OBLIGATIONS OF EITHER
PARTY HEREUNDER. 
 ARTICLE 10 

INTELLECTUAL PROPERTY 
 1) OBTAIN AND
MAINTAIN THE PATENTS 
  

	 	a)	Pieris shall, at its own cost and expense and within its sole discretion, file, maintain and prosecute (i) in the Territories, the Patents claiming the Pieris Rights, the Pieris Arising IP and the Pieris Acquired
IP, and (ii) in the Pieris Territory only, the Joint Arising IP. Pieris shall [***]. 

  

	 	b)	Zydus shall, at its own cost and expense and within its sole discretion, file, maintain and prosecute (i) in the Territory, the Patents claiming the Zydus Rights, the Zydus Arising IP and the Zydus Acquired IP, and
(ii) in the Zydus Territory only, the Joint Arising IP. Zydus shall not [***]. 

  

	 	c)	 Notwithstanding foregoing Sections 10(1)(a) and (b), for said Patents, if either Party (the “Ceasing Party”) wishes (i) not to file an
application in any one of the following jurisdictions: [***], (ii) abandon any such patent application or (iii) not to maintain any such Patent in any one of said jurisdictions, it shall give prior written notice to the other Party at
least [***] days before any relevant deadline, then the other Party has the right, exercisable within [***] days exercisable within [***] days of such notice, to take an assignment of the patent application or patent and, at its own expense, control
the further prosecution the patent application or maintenance of such Patent. In the event such right is exercised by the other Party, the Ceasing Party shall effectuate said assignment and provide to the other Party all information necessary for
the further 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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prosecution or maintenance. For the avoidance of doubt, any such Patent is part of the other Party’s Acquired IP. 

 

	 	d)	Notwithstanding foregoing Sections 10(1)(a) and (b), with respect to the filing, maintaining and prosecution of (i) any of Joint Arising IP as well as (ii) any of Pieris Arising IP and Zydus Arising IP, before
any action taken by either Party, the Parties will confer first and try to agree on a strategy for drafting and/or prosecuting the respective application. In this regard, each of Zydus and Pieris shall keep the other Party fully informed as to the
status of preparation, prosecution and maintenance of the respective application or patent, including, without limitation, (x) providing the other Party the opportunity to fully review and comment on (i) any patent application at least
[***] days of the respective filing date and on (ii) any documents which will be filed in any patent office at least [***] days of any relevant deadline, and (y) providing the other copies of any substantive documents that such Party
receives from such patent office at least [***] days after receipt, including notice of all interferences, reissues, re-examinations, oppositions or requests for patent term extensions. The other Party shall provide feedback at least [***] days of
the respective filing date or the relevant deadline. If the Parties could not agree on such a strategy in good faith upon [***] days of the relevant deadline, Pieris will have the final decision-making authority regarding the filing, maintaining and
prosecution of any of (i) [***] and (ii) [***];, while Zydus will have the final decision-making authority regarding the filing, maintaining and prosecution of any of (i) [***] and (ii) [***]; provided, however, that, if [***],
[***]. Zydus and Pieris shall reasonably cooperate with and assist each other at their own respective expense in connection with activities referred under this Section 10(1)(d), at the other Party’s request. 

2) INFRINGEMENT OF THE PATENTS/INTELLECTUAL PROPERTY RIGHTS 
  

	 	a)	During the Term, each Party shall inform the other Party promptly if it becomes aware of any infringement or potential infringement in the Territory of any of the Pieris Rights, the Pieris Arising IP, the Pieris
Acquired IP, the Zydus Rights, the Zydus Arising IP, the Zydus Acquired IP or the Joint Arising IP, and the Parties shall consult with each other to decide the best way to respond to such infringement. 

 

	 	b)	During the Term, if the Parties fail to agree on a joint program of action, including how the costs of any such action are to be borne and how any damages or other sums received from such action are to be distributed,
then the Party (the “Enforcing Party”) in whose Territory such infringement has taken place shall be entitled to take action against the applicable Third Party at its sole expense and the other Party (the “Abstaining Party”)
hereby agrees to be joined by the Enforcing Party in any legal proceeding where the Applicable Law requires the Abstaining Party’s participation for the Enforcing Party to initiate and maintain such proceeding. In this regard, the Enforcing
Party shall have control over such proceeding and the Abstaining Party shall reasonably cooperate with the Enforcing Party and defer to the Enforcing Party’s decisions. The damages or other sums received from such action (the
“Receipts”) shall be distributed as follows: After deducting its own documented legal costs and reimbursing the other Party for any reasonable expenses incurred in assisting it in such action, the enforcing Party shall pay [***] of all
remaining Receipts to the other Party, and shall keep the balance of the remaining Receipts for itself. Notwithstanding the foregoing, during the Term, only the Continuing Party under Section 4(4) can take action against the applicable Third
Party in the Territories, 

 3) INFRINGEMENT OF THIRD PARTY RIGHTS 
  

	 	a)	 If any warning letter or other notice of infringement is received by a Party, or legal suit or other action is brought against such Party, alleging
infringement of Third Party Rights in the practice of its Licence rights hereunder or in the manufacture, use or sale of the Product or use of any Patents, such Party shall promptly provide full details to the other Party, and the Parties shall
discuss the best way to respond. The other Party, however, shall not be relieved of any of its 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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obligations for indemnification, if any, provided for hereinabove, for such infringement. 

  

	 	b)	Zydus shall have the right but not the obligation to defend any such suit in the Zydus Territory, and Pieris shall have the right but not the obligation to defend any such suit in the Pieris Territory. The defending
Party shall have the right to settle with such Third Party, provided that if any action or proposed settlement involves the making of any statement, express or implied, concerning the validity of any Patent Controlled by the other Party, the consent
of the other Party must be obtained before taking such action or making such settlement. 

  

	 	c)	Zydus shall be entitled to deduct, from royalties payable to Pieris in any Calendar Year under this Agreement, up to [***] of any sums paid to Third Parties (including, without limitation, damages, payments in
settlement of litigation and royalty payments) during the same Calendar Year, based on any alleged or actual infringement of Third Party rights as the result of Zydus’ practice of the Pieris Rights pursuant to this Agreement; provided, however,
that no such deduction shall exceed [***] of the royalties otherwise payable to Pieris during such Calendar Year. Pieris shall be entitled to deduct, from payments payable to Zydus in any Calendar Year under this Agreement, up to [***] of any sums
paid to Third Parties (including, without limitation, damages, payments in settlement of litigation and royalty payments) during the same Calendar Year, based on any alleged or actual infringement of Third Party rights as the result of Pieris’
practice of the Zydus Rights pursuant to this Agreement; provided, however, that no such deduction shall exceed [***] of the payments otherwise payable to Zydus during such Calendar Year. 

ARTICLE 11 
 TERM AND
TERMINATION 
 1) TERM 
 This Agreement
shall come into force on the Effective Date and, subject to the terms and conditions herein contained, will remain in effect until both Parties cease to have their respective Payment Obligations hereunder (the “Term”). Upon expiration of a
Party’s Payment Obligations hereunder, such Party will have a fully paid-up exclusive License as to the Product in its respective Territory from the other Party. 

2) TERMINATION 
 a) Without prejudice to any
other right or remedy it may have, either Party may terminate this Agreement at any time by notice in writing to the other Party, upon or after the occurrence of any one of the following: 

 

	 	i.	Breach of any material provision of this Agreement by the other Party and if the breaching Party has not cured such breach within the [***] day period following written notice of termination by the non-breaching Party
or breach of any provision of this Agreement by the other Party and if the breaching Party has not cured such breach within the [***] day period following written notice of termination by the non-breaching Party; provided, however, that to the
extent there is a Dispute as to the existence of such a breach, then prior to any termination under this Section 11(2)(a)(i), the Parties shall resolve such Dispute in accordance with Article 12; and 

 

	 	ii.	 Insolvency or passing of a winding-up order or going into liquidation of the other Party, or if the other Party ceases to otherwise trade or is unable
to pay its debts as and when they 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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fall due or is otherwise subject to any insolvency or winding-up procedure; or a petition is presented for its winding up or it enters into a composition with its creditors; or has filed against
it a petition in bankruptcy; makes any assignment for the benefit of creditors; has appointed a receiver of its property or a substantial portion thereof; or takes advantage of any other law or procedure for the protection of creditors; or the
majority of the Party‘s shares are transferred to Third Parties. 

 Said notice shall take effect on the date as
specified in the notice as long as such date is after the occurrence of any of the (i) or (ii) above. For the avoidance of doubt, the non-breach Party is entitled to cease performance of its obligations during the respective period
referred above in Section 11(2)(a)(i) until the breaching Party has cured the breach. 
 b) Either Party shall be permitted to terminate
this Agreement with respect to a Product after a conclusion in good faith by the Parties that data generated from IND-enabling studies and/or an ongoing clinical trial preclude further Development of such Product in the Territory (e.g. as decided by
the CC in good faith), by providing one thirty (30) days’ prior written notice to the other Party. Once this Agreement is so terminated pursuant to this Section 11(2)(b), either Party shall be solely responsible for any expenses in
relation to its activities and/or responsibilities under this Agreement. 
 3) EFFECTS OF TERMINATION 

 

	 	a)	Termination of this Agreement for any reason shall not release either Party hereto from any of its outstanding financial obligations hereunder or any liability which, at the time of such termination, has already accrued
to the other Party or which is attributable to a period prior to such termination, nor preclude either Party from pursuing all rights and remedies it may have hereunder or at law or in equity with respect to any breach of this Agreement.

  

	 	b)	In the event of termination by Pieris pursuant to Section 11(2)(a)(i) or (ii), Pieris shall retain and/or have the exclusive rights to (i) all data generated until the effective date of such termination as
well as the Arising IP relating thereto (Pieris Arising IP, Zydus Arising IP and Joint Arising IP) and (ii) to continue the Development and/or Commercialization of Products, whether directly or indirectly (e.g., through a Sublicensee), in a
regulatory jurisdiction (e.g. a country or geographical region) within the Territories, without any further financial obligation to Zydus. Zydus agrees to execute one or more assignments necessary to effectuate such grant of rights to Pieris free of
charge. Further, the License granted by Pieris to Zydus hereunder shall terminate concurrently, and the License granted by Zydus to Pieris hereunder shall survive such termination and remain in effect, subject to the terms and conditions of this
Agreement applicable thereto. 

  

	 	c)	In the event of termination by Zydus pursuant to Section 11(2)(a)(i) or (ii), Zydus shall retain and/or have the exclusive rights to all data generated until the effective date of such termination as well as the
Arising IP relating thereto (Pieris Arising IP, Zydus Arising IP and Joint Arising IP) and (ii) to continue the Development and/or Commercialization of Products, whether directly or indirectly (e.g., through a Sublicensee), in a regulatory
jurisdiction (e.g. a country or geographical region) within the Territories, without any further financial obligation to Pieris. Pieris agrees to execute such as one or more assignments necessary to effectuate such grant of rights to Zydus free of
charge. Further, the License granted by Zydus to Pieris hereunder shall terminate concurrently, and the License granted by Pieris to Zydus hereunder shall survive such termination and remain in effect, subject to the terms and conditions of this
Agreement applicable thereto. 

  

	 	d)	 In the event of termination by one Party pursuant to Section 11(2)(b), in term of the Product so terminated, each Party shall retain and/or have
the exclusive rights to its Arising IP and the other Party agrees to execute one or more assignments necessary to effectuate such grant of rights to the first-mentioned Party free of charge. The Parties will handle Joint Arising IP pursuant to
Article 10. Further, the License granted by one Party to the other Party hereunder shall terminate 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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concurrently, except that the non-exclusive licenses granted under Section 2(1)(a)(3) and Section 2(1)(b)(3) hereunder shall survive such termination and remain in effect, subject to
the terms and conditions of this Agreement applicable thereto. Furthermore, the Parties hereby agree to keep the data in confidence in accordance with Article 8 for the Term and [***] years thereafter. 

4) SURVIVAL 
 The following provisions shall survive the
expiration or termination of this Agreement for any reason: Articles 1 and 7 to 13. 
 ARTICLE 12 

GOVERNING LAW [***] 
 This Agreement shall
be governed by and construed in accordance with the then-current substantive law of the state of New York, United States, without regard to the conflict of laws principles thereof. The Parties further agree that any Dispute that cannot be resolved
by negotiation between the Parties shall [***]. 
 ARTICLE 13 

MISCELLANEOUS 
  

	1)	FORCE MAJEURE 

 Neither Party will be held liable or responsible to the other Party nor be deemed to have
defaulted under or breached the Agreement for failure or delay in fulfilling or performing any term of the Agreement when such failure or delay is caused by or results from causes beyond such Party’s reasonable control including, without
limitation, war, fire, accident or other casualty, labor disturbance, strike or other industrial destruction, riots, revolt, acts of war (whether war be declared or not), insurrections, riots, civil commotions, or earthquakes, flood or other natural
disasters or Acts of God or the public enemy, (collectively, “Force Majeure”), provided that, however, the Party affected will notify the other Party of such Force Majeure circumstances as soon as reasonably practicable and will make every
reasonable effort to mitigate the effects of such Force Majeure circumstances. 
  

	2)	FURTHER ASSURANCES 

 The Parties intend that this Agreement contain all consents, licenses and authorizations
from one Party to the other necessary to enable each Party to perform its obligations hereunder. In the event any further such consents, licenses or authorizations are necessary, each Party agrees to take such further actions and execute such
further agreements as may be reasonably necessary to carry out the intent and purposes of this Agreement. 
  

	3)	SEVERABILITY 

 In the event any one or more of the provisions contained in this Agreement should be held
invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein will not in any way be affected or impaired thereby, unless the absence of the invalidated provision(s)
adversely affect the intent and purposes of this Agreement. The Parties will in such an instance use their diligent efforts to replace the invalid, illegal or unenforceable provision(s) with 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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valid, legal and enforceable provision(s) which, insofar as practicable, maintains the intent and purposes of this Agreement under this Agreement. 

 

	4)	NOTICES 

 All notices which are required or permitted hereunder will be in writing and sufficient if delivered
personally, sent by facsimile (and promptly confirmed by personal delivery, registered or certified mail or overnight courier) or sent by nationally-recognized overnight courier addressed as follows: 

 

			
	if to Pieris, to:		Pieris, AG
			Lise-Meitner-Straße 30, 85354
			Freising, Germany
			Attention: CEO
			Fax No: 49 (0) 8161 14 11 444
		
	if to Zydus, to:		Zydus Research Centre
			Sarkhej-BavlaN.H. No. 8A
			Moraiya, Ahmedabad - 382210
			Gujarat, India
			Attn: Dr. Sanjeev Kumar
			Sr. Vice President, Biotechnology
			Ph:   +91-2717-665555
		
	             CC to		Cadila Healthcare Limited
			Zydus Tower
			Satellite Cross Roads
			Ahmedabad - 380 015
			India
			Attention: Mr. Arun Parikh
			Fax No.: +91-79-26868144

 or to such other address as the Party to whom notice is to be given may have furnished to the other Party in writing in
accordance herewith. Any such notice will be deemed to have been given (i) on the same business day if personally delivered or sent by facsimile or (ii) on the third (3rd) business
day after dispatch if sent by nationally-recognized overnight courier. 
  

	5)	ENTIRE AGREEMENT 

 This Agreement contains the entire understanding of the Parties with respect to License,
Research, Development, manufacture and Commercialization of a Product as well as related financial obligations on either Party. All express or implied agreements and understandings, either oral or written, heretofore made by the Parties on the same
subject matter, are expressly superseded by this Agreement. The Agreement may be amended, or any term hereof modified, only by a written instrument duly executed by both Parties hereto. 

 

	6)	HEADINGS 

 The captions to the several Articles and Sections hereof are not a part of the Agreement nor affect
the interpretation of any of its provisions, but are merely a convenience to assist in locating and reading the several Articles and Sections hereof. 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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	7)	INDEPENDENT CONTRACTORS 

 It is expressly agreed that Pieris and Zydus will be independent contractors and that
the relationship between the two Parties will not constitute a partnership, joint venture or agency. Neither Pieris nor Zydus will have the ability to control the other Party or the authority to make any statements, representations or commitments of
any kind, or to take any action, which will be binding on the other, without the prior written consent of the other Party. 
  

	8)	ASSIGNMENT 

 This Agreement may not be assigned or otherwise transferred, nor, except as expressly provided
hereunder, may any right or obligation hereunder be assigned or transferred by either Party without the prior written consent of the other Party; provided, however, that a Party may make such an assignment or transfer without the other Party’s
consent to any Affiliate of such Party, provided that (i) such transfer shall not adversely affect the other Party’s rights and obligations under this Agreement and that such assigning/transferring Party remains jointly and severally
liable with such Affiliate for the performance of this Agreement and/or the assigned obligations, and (ii) that the assigning Party provides written notice to the other Party of such assignment and the assignee shall have agreed in writing to
be bound (or is otherwise required by operation of Applicable Laws to be bound) in the same manner as such assigning Party hereunder. Notwithstanding the foregoing, either Party shall have the right to assign this Agreement to a Third Party
successor-in-interest or purchaser of all or substantially all of the business or assets of such Party to which this Agreement relates (the “Third Party Assignee”), whether in a merger, combination, reorganization, sale of stock, sale of
assets or other transaction; provided, however, that the Third Party Assignee expressly obligates itself in a written instrument delivered to the non-assigning Party, on or before the date of closing such merger, combination, reorganization, sale of
stock, sale of assets or other transaction, to fully perform all of the obligations of the assigning Party under this Agreement. In addition, either Party may assign its right to receive proceeds under this Agreement or grant a security interest in
such right to receive proceeds under this Agreement to one or more Third Parties providing financing to such Party pursuant to the terms of a security or other agreement related to such financing (i.e., for purposes of a royalty financing
arrangement). The rights and obligations of the Parties under this Agreement shall be binding upon and inure to the benefit of the successors and permitted assigns of the Parties. Any attempted assignment not in accordance with this
Section 13(8) will be void. 
  

	9)	WAIVER 

 The waiver by either Party hereto of any right hereunder, or any failure to perform by the other Party,
or any breach by the other Party will not be deemed a waiver of any other right hereunder or of any other breach or failure by said other Party whether of a similar nature or otherwise. 

 

	10)	NO THIRD PARTY BENEFICIARIES 

 Except for as referred in Section 13(8), this Agreement is neither expressly
nor impliedly made for the benefit of any Person other than the Parties. 
  

	11)	COUNTERPARTS 

 The 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. The counterparts of this Agreement may be executed by one Party with electronic signature and delivered through facsimile or email to the other Party and the receiving
Party may rely on the receipt of such counterpart so executed and delivered by as if the original had been received. 
  

	12)	WAIVER OF RULE OF CONSTRUCTION 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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 Each Party has had the opportunity to consult with counsel in connection with the review, drafting and
negotiation of this Agreement. Accordingly, the rule of construction that any ambiguity in this Agreement will be construed against the drafting Party will not apply. 

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date. 

 

									
	CADILA HEALTHCARE LIMITED				PIERIS AG
			
	/s/ Nitin Parekh				/s/ Stephen S. Yoder
					
	Name:		Nitin Parekh				Name:		Stephen S. Yoder
	Title:		Chief Financial Officer				Title:		Chief Executive Officer
				
	/s/ Arun Parikh						
	Name:		Arun Parikh						
	Title:		Sr. V.P. Legal						

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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 SCHEDULE 1 

Pieris Patents: 
 (a) all patent
applications derived from any one of the Patent Cooperation Treaty/PCT applications listed below in this Schedule 1 from i) to vi); (b) all patents issuing from such patent applications (including certificates of invention); (c) all
patents and patent applications based on, corresponding to, or claiming priority from any of the foregoing; (d) all reissues, substitutions, confirmations, registrations, validations, re-examinations, additions, continuations, continued
prosecution applications, continuations-in-part, or divisions of or to any of the foregoing; and (e) all term extensions, supplementary protection certificates and other governmental action beyond the original patent expiration date. 

 

	 	i)	PCT/DE98/02898 

  

	 	ii)	PCT/EP2004/009447 

  

	 	iii)	PCT/EP2007/057971 

  

	 	iv)	PCT/EP2009/051020 

  

	 	v)	PCT/EP2010/061436 

  

	 	vi)	PCT/EP2013/050158 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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 SCHEDULE 2 

CC MEMBERS 
 [***] 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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 SCHEDULE 3 

Plan 
 Zydus and Pieris
shall plan the activities in the CC meeting and track the progress on a regular basis. 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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 SCHEDULE 4 

Zydus Territory (subject to Section 4(3)): 
 [***]

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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 SCHEDULE 5 

[***] 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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 SCHEDULE 6 

Press Release 
  

			
	

		

            

 Zydus and Pieris Sign Broad Co-Development Alliance for Novel Anticalin® Therapeutics 
 —cMet antagonist, PRS-110, to be the flagship program—

 Ahmedabad, India; Freising, Germany. 
 Zydus
Cadila, an innovative global pharmaceutical company that discovers, develops, manufactures and markets a broad range of healthcare products, and Pieris AG, a next generation therapeutic protein R&D company, have entered into an alliance for
development and commercialization of multiple novel Anticalin®-based protein therapeutics, both companies announced today. The collaboration combines Pieris’ drug discovery and early
development capabilities with Zydus’ expertise in biologics development, regulatory affairs and biologics manufacturing. Under the terms of the agreement, Zydus will take the lead in advancing Anticalin drug candidates through formal
pre-clinical development and into clinical development, undertaking drug development in accordance with ICH guidelines. Zydus has been granted exclusive marketing rights in India and several other emerging markets, while Pieris retains exclusive
marketing rights in key developed markets. 
 Mr. Pankaj R. Patel, Chairman and Managing Director, Zydus group said, “Collaborating with
established biotech companies on differentiated drug candidates is an important component of Zydus’ ongoing transformation into an innovation-led global healthcare provider, and we are pleased to add Anticalins to our novel biologics
pipeline”. Pieris CEO, Stephen Yoder, added, “With Zydus’ state-of-the-art manufacturing facilities and seasoned drug development team, this collaboration will allow Pieris to unlock value on a global scale in a cost-effective manner,
significantly expanding the number of proprietary Anticalin programs we can advance into clinical trials.” 
 The most advanced program in the
collaboration is PRS-110, an Anticalin specific for cMet, a target becoming increasingly validated across a broad spectrum of tumors. PRS-110, which is a pure antagonist due to its monovalent target engagement, has demonstrated the ability to

  

—CONTINUES— 

Portions of the exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and
Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
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inhibit both ligand-dependent and -independent cMet signaling in a variety of animal models. Through this unique collaborative model, the companies seek to develop candidates to proof-of-concept
and will explore out-licensing opportunities in Pieris’ territories at the appropriate time. Licensing revenues would be shared on mutually agreed upon terms. 

About Zydus: 
 Zydus Cadila is an innovative, global
pharmaceutical company that discovers, develops, manufactures and markets a broad range of healthcare therapies. The group employs over 15,000 people worldwide and is dedicated to creating healthier communities globally. Zydus is the only Indian
pharma company to launch its own patented NCE – LipaglynTM, the world’s first drug to be approved for the treatment of diabetic dyslipidemia. It aims to be a leading global healthcare provider with a robust product pipeline, achieve
sales of over $3 billion by 2015 and be a research-based pharmaceutical company by 2020. 
 The group has been making significant investments in the
development and manufacturing of Biologics for more than a decade. Zydus has developed a pipeline of 17 Biosimilar drugs with six such drugs commercialized and others in clinical development. Zydus capitalizes on its in-house drug development and
manufacturing strengths to partner in Novel Biologics opportunities and has so far advanced two novel biologic drugs to the clinical trial stage. Zydus has one of the largest Biologics manufacturing facilities in India with scales reaching up to
11,000 L per batch. With a vision to provide high quality Biologics drugs in a cost-effective manner Zydus aspires to be a world leader in the biologics space. For more information, please visit: www.zyduscadila.com 

About Pieris & Anticalins 
 Pieris AG is an
independent, clinical-staged biotechnology company advancing its proprietary Anticalin® technology to create differentiated drugs that are safer and more effective than conventional
approaches. Exclusive to Pieris, Anticalins promise to address high-unmet medical needs and expand the potential of targeted therapeutics. The company currently has a diverse proprietary pipeline and has, in addition to Zydus, ongoing R&D
collaborations with Daiichi Sankyo, the Sanofi Group and Allergan. Privately held, Pieris has been funded by premier biotechnology-focused venture capital, including lead investors OrbiMed Advisors and Global Life Science Ventures. For more
information, please visit: www.pieris-ag.com. 
 Anticalins® are recombinantly engineered versions of human lipocalins, low-molecular weight
polypeptides that naturally bind, store and transport a wide spectrum of molecules. To make Anticalins, Pieris makes discrete changes to those lipocalin amino acid positions responsible in endogenous ligand binding, thereby redirecting specificity
away from the natural ligand and to virtually any target of interest. By utilizing an endogenous binding protein as a template, Pieris “hijacks” the natural function of the lipocalin to enable diverse therapeutic applications. 

—END— 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
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 CONFIDENTIAL TREATMENT REQUESTED 

EXECUTION COPY 
  

			
	For more information, please contact:		
		
	Zydus		Pieris AG
		
	Sujatha Rajesh		Stephen Yoder, CEO
	+91 (0)9974051180		+49 (0) 8161 1411 400
	sujatha.rajesh@zyduscadila.com		
		
	Rashmi Nair		Gretchen Schweitzer
	+91(0) 9724313237		+49 172 861 8540
	rashminair@zyduscadila.com		media@pieris-ag.com

 Anticalin®,
Anticalins® are registered trademarks of Pieris AG. 

  
 Portions of the
exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  
 41

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