Document:

exv10w8

 

EXHIBIT 10.8

IMPORTANT NOTICE

     THE SECURITY REPRESENTED HEREBY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED. THIS SECURITY CANNOT BE SOLD OR OTHERWISE TRANSFERRED UNLESS THIS SECURITY IS REGISTERED
UNDER SUCH ACT OR THE COMPANY IS FURNISHED WITH AN ACCEPTABLE OPINION OF COUNSEL THAT AN EXEMPTION
FROM REGISTRATION IS AVAILABLE OR UNLESS SOLD PURSUANT TO RULE 144 OF SUCH ACT.

SUBORDINATED CONVERTIBLE PROMISSORY NOTE

	 	 	 
	Principal Amount
	 	 
	$_,___,___.___

	 	_______, 200_

     This
is the subordinated convertible promissory note (this
“Note”) set forth as Exhibit 10.8 to
the Development Plan attached to and made a material part of that certain Amended and Restated
License Agreement dated as of April 6, 2001 (the “Amended License”), by and between IOMAI
CORPORATION, a Delaware corporation (the “Company”) and WALTER REED ARMY INSTITUTE OF RESEARCH, A
REPRESENTATIVE OF THE UNITED STATES OF AMERICA (“WRAIR”). All capitalized terms used and not
otherwise defined herein shall have the meanings assigned to them in the Amended License. This
Note is issued in connection with the Amended License, and the holder is entitled to the benefits
of the Amended License and is subject to all of the agreements, terms and conditions therein
contained.

     For Value Received, the Company (or any successor corporation) hereby promises to pay to the
order of WRAIR (or any designated trustee or assign collectively hereinafter referred to as the
“Holder”), the principal sum of
_____________________________________   _____________________________________($ _,___,___.___), together with interest thereon
calculated from the date of issuance hereof (the “Original Issue Date”) (the entire principal
amount and interest due plus any and all fees, costs and expenses incurred by Holder hereunder are
collectively hereinafter referred to as the “Obligations”), on the terms and conditions set forth
herein. All or a part of the principal and accrued interest thereon otherwise owing hereunder
shall be deemed satisfied to the extent of a complete or partial conversion in exchange for and
upon delivery of a corresponding number of Shares pursuant to Section 4 of this Note.

     1. Payment of Principal on Note.

     (a) Scheduled Payments. The outstanding principal amount due under this Note shall be
due and payable in one lump sum payment on the fifth anniversary of the Original Issue Date when
the entire principal balance and accrued interest thereon shall be due and owing in full (the
“Maturity Date”).

     (b) Prepayment. The Company may at any time prior to the Maturity Date prepay all of
the Obligations then due and owing under this Note to the date of payment in full, subject to
Section 3.

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     (c) Mandatory Prepayment. In the event of a “Sale” (as defined below), any and all
outstanding Obligations shall be immediately due and payable without notice of any kind and the
Holder shall be entitled to receive an immediate preferential payment or distribution from the
assets of the Company or from cash or property received as a result of any such Sale (to the extent
of funds legally available therefore) until payment is made in full satisfaction of the
Obligations, after payment or provision for payment of the Senior Obligations due and owing at such
time but prior to and before any distribution of any kind is made to or for the benefit of the
other holders of Common Stock (a “Mandatory Prepayment”). A “Sale” means each instance a voluntary
or involuntary dissolution or liquidation of the Company, any merger or other form of corporate
reorganization in which the Company is not the surviving entity after such merger or consolidation,
a sale or transfer of either (i) Common Stock equal to fifty percent (50%) or more of the then
outstanding Common Stock or (ii) capital stock of the Company with the power to elect directors
entitled to cast fifty percent (50%) or more of the votes of the entire board of directors of the
Company, or a sale or transfer of the Company’s rights in and to the Licensed Patent Technology
under the Amended License, or a sale of substantially all of the Company’s assets or winding-up of
the affairs of the Company prior to or after the Maturity Date.

     2. Payment of Interest.

     (a) Scheduled Payments. Interest will accrue on the principal amount of this Note
from time to time outstanding, payable in arrears, together with each payment of principal, at a
fluctuating rate per annum equal to the Prime Rate (as defined immediately below) plus three
percent (3%) (the “Contract Rate”); provided, that any change in the interest rate shall
become effective immediately without notice or demand of any kind, upon the announcement of any
change in the Prime Rate. The “Prime Rate” shall mean, at any time, the rate of interest publicly
announced from time to time by Citigroup, Inc. at its principal office in New York City as its
prime rate or prime lending rate. If this prime rate ceases to be published, an alternate prime
lending rate of a similar nature will be selected by Holder. Interest shall be calculated on the
basis of a 360-day year for the actual days elapsed. The principal and interest represented by
this Note shall be payable in immediately-available funds in lawful money of the United States,
which shall be legal tender for public and private debts at the time of payment. All payments
hereunder shall be payable to the order of Holder and sent to DFAS – ROCK ISLAND OPLOC, ATTN:
DFAS-RI-FD, Building 68, Rock Island, IL 61299-8300, or to such person as shall be designated in
writing from time to time by Holder. Payments received by Holder shall be applied first to
collection expenses incurred by Holder, then to interest, then the balance, if any, to principal.
In no event shall the Contract Rate of interest exceed the maximum interest rate permitted by law.

     (b) Additional Rate. Upon and during the continuation of a Substantial Violation, as
defined in Section 7 hereof, the principal balance outstanding shall bear interest, payable on
demand, at rate per annum which is two percent (2%) above the Contract Rate which would otherwise
be applicable hereunder (the “Additional Rate”). In no event shall the Additional Rate of interest
exceed the maximum interest rate permitted by law.

     (c) Default Rate. Upon and during the continuation of an Event of Default, as defined
in Section 8 hereof (including by reason of acceleration of the principal amount due before or
after the Maturity Date), the principal balance outstanding shall bear interest, payable

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on demand,
at rate per annum which is four percent (4%) above the Contract Rate which would otherwise be
applicable hereunder (the “Default Rate”). In no event shall the Default Rate of interest exceed
the maximum interest rate permitted by law.

     3. Subordination. From the date hereof up to but ending on the Maturity Date, the
payment of principal and interest under this Note and the Obligations shall be expressly
subordinate to the Senior Obligations and no Event of Default as defined under Section 8(d) below
shall be deemed to exist as a result of the Company’s failure to make any such payment prior to the
Maturity Date.

     4. Conversion.

     (a) Voluntary Conversion. For so long as any of the principal and interest thereon
due under this Note remain outstanding, the Holder may elect to convert all or part of the
outstanding principal and accrued interest thereon into a pro rata portion of the Shares held in
escrow under Article 2 of the Voting Trust and Escrow Agreement (e.g., a conversion of 30% of the
principal and accrued interest thereon would be converted into 30% of the Shares) rounded up to the
nearest whole number (the “Conversion Right”). In order to exercise the Conversion Right, the
Holder shall provide written notice to the Company of its intention to exercise such right, which
notice shall set forth the date of exercise of the Conversion Right, which shall be a date at least
ten (10) and not more than thirty (30) days after the date of such written notice (the “Conversion
Closing Date”). On the Conversion Closing Date, the Holder shall surrender the Note to the Company
marked “canceled” in exchange for (i) the number of Shares delivered from escrow as payment
therefor; and (ii) in the event of a partial conversion, an amended Note to evidence the remaining
unpaid Obligations due and owing after the conversion on substantially the same terms and
conditions. To further evidence and record each such conversion as contemplated hereunder, the
stock certificate held by the Voting Trustee in escrow under Article 2 of the Voting Trust and
Escrow Agreement shall also be surrendered to the Company, marked “canceled” and replaced by a new
stock certificate issued and delivered by the Company to the Voting Trustee to be held in
accordance with Article 1 of the Voting Trust Agreement, or in the event of a partial conversion,
replaced by two stock certificates issued and delivered by the Company, one certificate
representing the remaining Shares to be held by the Voting Trustee in escrow under Article 2 of the
Voting Trust and Escrow Agreement and one certificate representing the converted shares to be held
in accordance with Article 1 under the Voting Trust and Escrow Agreement. With respect to the pro
rata conversion and exchange of principal and interest thereon for Shares, no adjustment shall be
made for interest payable to the Holder after the Conversion Closing Date or for dividends payable
to holders of Common Stock of record prior to the date of surrender for conversion.

     (b) Automatic Conversion. Immediately prior to the effectiveness of any underwritten
public offering undertaken by the Company pursuant to a registration statement filed under the
Securities Act of 1933, as amended, covering the offer and sale of Common Stock for the account of
the Company (and any other seller thereby) (“Qualified Public Offering”), this Note and the
outstanding principal and interest thereon due and owing at such time shall be converted
automatically into the number of Shares then in escrow under Article 2 of the Voting Trust and
Escrow Agreement, without any further action by the Holder and whether or not this Note is
surrendered to the Company or its transfer agent for the Common Stock. In order to

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receive a
certificate for such Shares, the Holder shall surrender the Note to the Company or its transfer
agent for the Common Stock at which time a certificate representing such Shares will be issued.
Notwithstanding the foregoing automatic conversion, in the event that the registration statement
relating to the Qualified Public Offering is declared effective by the Securities and Exchange
Commission but the Qualified Public Offering does not close for any reason whatsoever, then such
Shares into which the Note was converted pursuant to this Section 4(b) shall be reconverted
automatically into the Note and the unpaid principal and interest thereon due and owing thereunder
with accrued unpaid interest continuously assessed shall be reinstated, without any further action
by the Company or the Holder and whether or not the Note is surrendered to the Company or its
transfer agent.

     (c) Covenants. For so long as any of the Obligations due under this Note remain
outstanding, the Company covenants that: (i) the Shares shall be issued and delivered to the Voting
Trustee under and subject to the Voting Trust and Escrow Agreement; (ii) all of the Shares of
Common Stock shall be duly authorized validly-issued and fully-paid and non-assessable; (iii) the
issuance of new certificates for the remaining Shares of Common Stock as a result of a pro rata
exercise of the Conversion Right shall be made without charge to the Holder for such certificates
or for any tax in respect of the issuance of such certificates; and (iv) such certificates shall be
issued and delivered to the Voting Trustee and held in trust for the sole and exclusive economic
benefit of the Holder under and subject to the Voting Trust and Escrow Agreement. The Company will
not, by amendment of its certificate of Incorporation or through any capital reorganization or
similar event or any other voluntary action, avoid or seek to avoid the observance or performance
of any of the terms set forth herein, but will at all times in good faith assist in the carrying
out of all such terms and in the taking of all such actions as may be necessary or appropriate in
order to protect the rights of the Holder against impairment. The Company shall also notify the
Holder that an event of default has occurred and is continuing in respect of either payment of all
or any portion of the Senior Obligations whether at maturity, at a date fixed for prepayment or an
acceleration or any other event of default.

     5. Adjustments.

     (a) Adjustments for Stock Splits and Subdivisions. In the event the Company should at
any time or from time to time after the Original Issue Date fix a record date for the effectuation
of a split or subdivision of the outstanding shares of Common Stock or for the determination that
holders of Common Stock are entitled to receive a dividend or other distribution payable in
additional shares of Common Stock or other securities or rights convertible into, or entitling the
holder thereof to receive directly or indirectly, additional shares of Common Stock (hereinafter
referred to as “Common Stock Equivalents”), with or without payment of any consideration by such
holder for the additional shares of Common Stock or the Common Stock Equivalents (including the
additional shares of Common Stock issuable upon conversion or exercise thereof), then, as of such
record date (or the date of such dividend distribution, split or subdivision if no record date is
fixed), the Shares shall be appropriately increased in proportion to such increase of outstanding
shares of Common Stock without payment of any kind due from Holder.

     (b) Adjustments for Reverse Stock Splits. If the number of shares of Common Stock
outstanding at any time after the date hereof is decreased by a combination of the outstanding

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shares of Common Stock, then, following the record date of such combination, the Shares shall be
appropriately decreased in proportion to such decrease in outstanding shares of Common Stock.

     (c) References to Shares. Any reference to the Shares under this Note shall be deemed
to be a reference to the Shares as adjusted by this Section 5.

     6. Subordination and Negative Covenants.

     (a) Senior Obligations. From the date hereof up to but ending on the Maturity Date,
the principal and interest thereon due and owing under this Note shall be expressly subordinate and
junior to any and all Senior Obligations. “Senior Obligations” means any and all existing and
future indebtedness, obligations, or liabilities of the Company, whether direct or indirect,
absolute or contingent, with respect to (i) the Series A Preferred Stock of the Company or any
other class of capital stock or securities that are senior to the Common Stock with respect to
dividends or distributions upon liquidation, and (ii) indebtedness to banks, financial institutions
or lenders (institutional and non-institutional) and other amounts payable on or in respect of any
such indebtedness incurred by the Company for any purpose in the ordinary course and best interests
of its business; provided, that Senior Obligations shall specifically exclude without
limitation unsecured debt (other than (i) and (ii) above), trade accounts payable or other current
liabilities incurred in the ordinary course of business or amounts owing under leases (other than
capitalized lease obligations); provided, further that in each instance with
respect to any of the Senior Obligations the Company is unable to obtain any third party consent
required to permit payment by the Company of the principal and interest as and when due under this
Note.

     (b) Negative Covenant. Unless and until this Note and the Obligations due and owing
hereunder are paid or satisfied in full, the Company covenants that it shall not without the prior
consent of Holder: (i) agree or consent to or participate in or otherwise allow any Sale to occur
in which a payment or distribution of the Sale proceeds by the Company or any other Person on
account of any Common Stock holder is made prior to a Mandatory Prepayment in violation of Section
1(c); or (ii) declare, pay or make any dividend or distribution on any shares of its capital stock
(other than dividends or distributions payable in its stock, or split-ups or reclassifications of
its stock) or apply any of its funds, property or assets to the purchase, redemption or other
retirement of any of its capital stock, or of any options to purchase or acquire any such shares of
its capital stock except with respect to the Senior Obligations (any such payment or distribution
under (b)(i) or (ii) above hereinafter an “Improper Distribution”).

     7. Substantial Violation. Each of the following shall constitute a substantial
violation under this Note (each a “Substantial Violation”):

     (a) the Company fails to perform or observe any material non-monetary agreement or covenant
under this Note or the Amended License or the Development Plan, unless susceptible to cure and
remedied within a reasonable period of time not to exceed ninety (90) days from the date written
notice of such breach is given to the Company provided that the Company is making good faith and
diligent efforts to cure such breach during such period;

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     (b) any representation, warranty or information contained in the Development Plan or required
to be furnished to or on behalf of Holder pursuant to the Amended License, the Development Plan or
in any schedule or exhibit or supplement contemplated in connection therewith, or in any writing
furnished by the Company to or on behalf of Holder in connection with the Amended License, the
Development Plan or in any schedule or exhibit or supplement contemplated in connection therewith,
is false or misleading in any material respect on the date made or furnished;

     (c) a violation of any provision of applicable law, statute, rule or regulation applicable to
the Company or any ruling, writ, injunction, order, judgment or decree of any court, arbitrator,
administrative agency or other governmental body that would or could have a Material Adverse Effect
(as defined in Exhibit C-2 to the Development Plan) on either the Company or the Licensed
Patent Technology; or

     (d) If the “Put Option” is exercised for any reason set forth under the definition of “For
Cause” in the Side Letter unless an event of default under Section 8 immediately below otherwise
applies.

     8. Events of Default. Each of the following shall constitute an event of default
under this Note (each an “Event of Default”):

     (a) the Company fails to pay the full amount of principal or interest due and payable on the
Maturity Date under this Note, and such failure has continued for a period of 10 days;

     (b) the Company or Xairo Corporation, Ltd. (or any successor joint venture Subsidiary) (i)
admits insolvency or an inability to pay its debts as they mature, (ii) makes a general assignment
for the benefit of creditors, (iii) commences a case under or otherwise seeks to take advantage of
any bankruptcy, reorganization, insolvency, readjustment of debt, dissolution or liquidation law,
statute or proceeding, (iv) by any act indicates its consent to, approval of or acquiescence in any
such proceeding or the appointment of any receiver of or trustee for it or a substantial part of
its property or suffering any such receivership, trusteeship or proceeding to continue without
dismissal for a period of sixty (60) days, or (v) becomes a debtor in any case under any chapter of
the United States Bankruptcy Code;

     (c) an Improper Distribution is made in violation of Section 6(b) above;

     (d) subject to Section 3, the Company fails to make a Mandatory Prepayment as a result of Sale
in violation of Section 1(c) above;

     (e) If the “Put Option” is exercised “For Cause” as defined and set forth in the Side Letter
solely as a result of a failure by the Company to pay amounts in the aggregate equal to or in
excess of One Hundred Thousand Dollars ($100,000.00), as and when due and owing under the Amended
License or the Development Plan which failure has continued for more than ten (10) days after
written notice of such failure;

     (f) the Company or any Subsidiary defaults in the performance of any obligation issued in
connection with the Senior Obligations and an action, suit, or other legal or equitable proceeding
against the Company or any Subsidiary or its respective property to compel payment

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thereof is
initiated prior to payment of the Obligations due hereunder on the Maturity Date, unless such
default is waived and the action is stayed or dismissed by the holder or holders of the Senior
Obligations or such default or action would not, or could not, result in a Material Adverse Effect
on the Company with respect to either the payment of the Obligations due and owing hereunder or the
Licensed Patent Technology; or

     (g) whether occurring before or after the date of this Note, a termination of the Amended
License or the underlying license granted to the Company for whatever reason occurs.

     9. Holder’s Rights and Remedies After Default.

     (a) Acceleration and Proceedings. Upon the occurrence of an Event of Default pursuant
to Section 8(b) all Obligations shall be immediately due and payable. Upon the occurrence of any
of the other Events of Default and at any time thereafter (such default not having previously been
cured), at Holder’s option upon notice to the Company, all Obligations shall be immediately due and
payable. In either event, the Holder shall be entitled, notwithstanding anything herein contained
to the contrary, to seek enforcement, collection and realization on the Obligations in full.

     (b) Remedies. The Holder shall be entitled to demand, receive, or sue for or
accelerate any payment, including a Mandatory Payment, in respect of the Obligations, in addition
to any other right which the Holder may have under the Amended License or the Development Plan,
including, without limitation, termination of the Amended License or an action for indemnification
or specific performance. The Holder, at its option, shall also have the right to reduce the
Obligations owed to Holder under this Note to a judgment by confession. In this regard the Company
hereby authorizes any attorney at law to appear in any court of record in the United States and on
behalf of the Company, to waive the issuance and service of process, and confess a judgment against
the Company in favor of the Holder hereof for any and all Obligations due and owing under this
Note, with interest at the Default Rate, costs of suit, plus attorneys’ fees of 5% of the
outstanding Obligations then due or $50,000, whichever is less, waiving all exemption laws of any
state of the United States (to the extent permitted by law), and ratifying all that said attorney
may do. The authority and power to appear for and enter judgment against the Company shall not be
exhausted by one or more exercises thereof, or by any imperfect exercise thereof, and shall not be
extinguished by any judgment entered pursuant thereto. Such authority and power may be exercised
on one or more occasions, from time to time, in the same or different jurisdictions, as often as
the Holder shall deem necessary or desirable. The Company consents to the filing of and
maintenance of a confessed judgment action in the District of Columbia or in any court of record in
the Unites States, expressly waives any objection or defense as to insufficiency of process, lack
of personal jurisdiction by any said court over the person, proper venue, and specifically consents
to the registration or enrollment of a judgment by confession once granted in any other court of
record in the United States. The Company hereby expressly waives any right to a trial by jury in
connection with any suit brought under this Note by Holder, and the Company hereby irrevocably
submits to the jurisdiction of any federal court sitting in the District of Columbia with respect
to this action and hereby also waives the defense of an inconvenient forum for the maintenance of
such an action. Such Court is hereby empowered and authorized to modify the terms and conditions
of this provision as may be necessary to enforce this remedy to the maximum extent allowed under
applicable law.

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     (c) Escrow. Until the Obligations are satisfied in full, the Company agrees that the
Shares shall be held in escrow to secure the full and prompt payment of the Obligations under and
subject to the Voting Trust and Escrow Agreement set forth as Exhibit C-5 to the Development Plan.

     (d) Holder’s Discretion. The Holder shall have the right, in its sole discretion, to
determine which rights or remedies the Holder may at any time pursue, relinquish, subordinate,
modify or take any other action with respect thereto and such determination will not in any way
modify or affect any of them or any of the Holder’s rights. The enumeration of the foregoing
rights and remedies is not intended to be exhaustive and the exercise of any right or remedy shall
not preclude the exercise of any other right or remedies, all of which shall be cumulative and not
alternative.

     10. Expenses. The Company agrees to pay any and all costs and expenses incurred by
Holder in connection with the enforcement and collection of this Note, including, but not limited
to, attorneys’ fees.

     11. Waiver. The Company waives demand, presentment for payment, protest and notice
of dishonor, and that at any time and from time to time and with or without consideration, the
Holder may, without notice to or further consent of the Company and without in any manner
releasing, lessening or affecting the obligations of the Company: (a) release, surrender, waive,
add, substitute, settle, exchange, compromise, modify, extend or grant indulgences with respect to:
(i) this Note, (ii) the Shares and (iii) the Amended License or the Development Plan; (b) complete
any blank in this Note; and (c) grant any extension or other postponements of the time of payment
hereof.

     12. Subrogation. Subject to payment in full of the Obligations, the Holder shall be
subrogated to the rights of the holders of the Senior Obligations.

     13. Successor and Assigns. All covenants and agreements in this Note by the Company
shall bind its successors and assigns, whether so expressed or not.

     14. Separability. In case any provision in this Note, the Amended License or the
Development Plan shall be held invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired.

     15. Governing Law and Venue. This Note shall be governed by and construed in
accordance with the federal laws of the United States of America, without giving effect to
principles of conflicts of laws. Each of the parties hereby irrevocably submits to the
jurisdiction of any federal court sitting in the District of Columbia over any action or proceeding
arising out of or relating to this Note and each hereby waives the defense of an inconvenient forum
for the maintenance of such an action.

     16. Effect. The terms and conditions of this Note shall remain in effect only to the
extent any Obligations are or remain outstanding hereunder.

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     IN WITNESS WHEREOF, the undersigned representative, with full power and authority to do so,
has executed and delivered this Note on behalf of the Company on the day and year first above
written.

IOMAI CORPORATION

By:________________________________

Name:______________________________

Title:_______________________________

9exv10w9

 

EXHIBIT 10.9

**Text Omitted and Filed Separately

Confidential Treatment Requested Under

17 C.F.R. §§ 200.80(b)(4) and 230.406

Pfénex Expression TechnologyTM

COMMERCIAL LICENSE AGREEMENT

     This Agreement is effective as of the latest date of signing below and is by and between Dow
Global Technologies Incorporated (“Dow”), a Michigan corporation having its principal offices at
2030 Dow Center, Midland, MI, 48674 USA and Iomai Corporation, a Delaware corporation (“Licensee”)
having a principal place of business at 20 Firstfield Road Suite 250, Gaithersburg, MD 20878 USA

     Licensee further desires to secure a non-exclusive license to Dow’s Pfénex Expression TechnologyTM the clinical and
commercial production of Product.

     Accordingly, in consideration of the premises and the mutual covenants of this Agreement, the
parties hereto agree as follows:

Article 1  DEFINITIONS

1.01 Affiliates: “Affiliates” shall mean any entity that, directly or indirectly through
one or more intermediates, controls, is controlled by or is under common control with either
Licensee or Dow, where “controls”, “controlled by”, and “is under common control” means ownership,
directly or indirectly, of fifty percent (50%) of the voting equity interest in the entity or the
possession, direct or indirect, of the power to direct or cause the direction of the management and
policies of that entity, whether through ownership or voting securities, by contract or otherwise.

1.02 Active: “Active” shall mean:

	(i)	 	[**] expressed by Pfénex Expression TechnologyTM with any of the following protein sequences:

[**]

[**]

[**]

[**]

[**]

[**]

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

 

 

[**]

[**]

[**]

[**]

[**]

[**]

[**]

[**]

[**]

[**].

1.03 Biological Material: “Biological Material” shall mean Dow’s proprietary [**].

1.04 Calendar Quarter: “Calendar Quarter” shall mean a three month period ending March 31,
June 30, September 30 or December 31.

1.05 Calendar Year: “Calendar Year” shall mean the year beginning January 1st
and ending December 31st.

1.06 Confidential Information: “Confidential Information” shall mean any and all
proprietary information (including without limitation, information related to technical, business,
including customer names, information or addresses, and intellectual property matters), know-how,
data, intellectual property, trade secrets, and other physical materials, and information contained
in Royalty Reports, Status Reports, Termination Royalty Report, Biological Material, Patent Rights,
Know-How, Active in Product, information and know-how related to the Active and Product owned or
held by either party to this Agreement, now and in the future which is disclosed by either party to
the other party in connection with this Agreement. The Confidential Information shall include
proprietary information disclosed in writing or other tangible form, including samples of
materials.

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

- 2 -

 

1.07 Effective Date: “Effective Date” shall mean the last date of execution of this
Agreement.

1.07(a) Europe: “Europe” shall mean [**].

1.08 Field: “Field” shall mean use in human vaccines for the prevention of diseases
caused by [**] and use for therapeutic applications or therapeutic vaccines or in combination with
[**].

1.09 Improvements: “Improvements” shall mean all discoveries and/or inventions (whether
patented or not) made during the term of this Agreement by either Party which constitute a
modification of Biological Material, or Know-How Technology or which would infringe any of the
claims of Patent Rights or which constitute a modification to the Pfénex Expression TechnologyTM. Made as used herein means
the discovery or invention was conceived or reduced to practice. Improvements does not include any
invention or discovery related to [**].

1.10 Improvement Report: “Improvement Report” shall mean a written report that provides
sufficient information so that Dow may practice such Improvement and if necessary such report shall
also include the transfer of material necessary to practice Improvements.

1.11 Know-How Technology: “Know-How Technology” shall mean Dow’s proprietary, non-public
technical information and materials (including without limitation, technology, data, [**], computer
software and algorithms for controlling [**] and related equipment, chemicals, inventions
(patentable or otherwise), practices, methods, knowledge, know-how, skill, and experience) related
directly or indirectly to the Pfénex Expression TechnologyTM.

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

- 3 -

 

1.12 Licensee Partner: “Licensee Partner” shall mean any co-developer, co-marketer,
co-promoter or distributor of Product, under an agreement with Licensee relating to the
development, marketing, promotion or distribution of Product.

1.13 Net Sales: “Net Sales” shall mean the gross amounts billed or invoiced by Licensee,
its Affiliates, Licensee Partners and Permitted Sublicensees, as the case may be, to non-Affiliate
Third Parties (“Buyers”) for the sale of any Product, less the following deductions, in each case
to the extent specifically related to the Product and taken by such Buyers or otherwise paid or
accrued for by Licensee (“Permitted Deductions”): [**]

[**]

Sales of a Product to an Affiliate, Licensee Partner or Sublicensee shall be excluded from Net
Sales calculations, it being understood and agreed that sales of a Product by such Persons shall be
included in Net Sales, as provided above.

If a Product is sold together with one or more products that do not bear royalties under this
Agreement for a single invoiced price or is “bundled” for sale together with one or more such
non-royalty bearing products in a single transaction or group of related transactions, the Net
Sales for such Product shall [**]

For any Product sold or otherwise transferred in a commercial transaction for consideration other
than money, “Net Sales” shall be [**]

Net Sales also include the value of any consideration received by Licensee for [**].

1.14 Parties: “Parties” shall mean collectively Dow and Licensee.

1.15 Party: “Party” shall mean either Dow or Licensee as the case may be.

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

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1.16 Patent Rights: “Patent Rights” shall mean Dow owned or controlled patent applications
U.S. Serial Nos. [**] and [**] and any divisional, continuation, foreign equivalent, substitute,
renewal, extension, reissue, reexamination, patents of addition, supplemental protection
certificate, or application therefore or patent issuing therefrom.

1.17 Permitted Sublicensee: “Permitted Sublicensee” shall mean any Person to whom Licensee
has granted rights under the rights granted to Licensee by Dow hereunder and any Person to whom
such Permitted Sublicensee, to the extent permitted hereunder, sublicenses such [**].

1.18 Pfénex Expression TechnologyTM: “Pfénex Expression TechnologyTM”
 shall mean Patent Rights and Know-How Technology related to or using directly or
indirectly the [**].

1.19 Product: “Product” shall mean any product or combination product containing Active
where the manufacture or formulation of such Active (i) would (but for the license granted
hereunder) infringe any Valid Claim of any Patent Right or (ii) involved the practice of Know-How
Technology.

1.20 Royalty: “Royalty” has the meaning set forth in Section 3.02.

1.21 Royalty Report: “Royalty Report” shall mean the written report due under this
Agreement that report Royalties due under the Agreement.

1.22 Termination Royalty Report: “Termination Royalty Report” shall mean the Royalty
Report that is due after termination of this Agreement.

1.23 Third Party: “Third Party” shall mean any person, organization, firm, corporation,
partnership or entity other than Dow, Licensee and their respective Affiliates.

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

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1.24 Valid Claim: “Valid Claim” shall mean a claim of an issued and unexpired patent that
has not been held permanently revoked, unenforceable or invalid by a decision of a court or other
governmental agency of competent jurisdiction, unappealed or unappealable within the time allowed
for appeal, and that has not been admitted to be invalid or unenforceable through reissue,
disclaimer or otherwise.

			
	Article 2	 	LICENSE GRANT AND TRANSFER OF BIOLOGICAL MATERIAL 

2.01 Grant to Licensee: Dow hereby grants to Licensee a non-exclusive, worldwide,
sublicensable, royalty-bearing license in the Field under the Patent Rights and Know-How Technology
to use said Pfénex Expression TechnologyTM to make, have made, use and sell Product for clinical and commercial use.
Licensee shall not have any right to sublicense its rights under this Agreement other than to
Affiliates, Licensee Partners and Permitted Sublicensees. Licensee may transfer or assign its
rights under this Agreement only as provided in Section 8.01. Except for production of Active
using the Pfénex Expression TechnologyTM, Licensee shall not use any Biological Materials or Know-How Technology for research
or production. The right to “have made” granted hereunder shall be subject to the limitation that
any such right shall be exercised only with respect to a reputable manufacturer [**].
In exercising its right to have made, Licensee shall provide Dow written notice to inform Dow of the
chosen manufacturer in advance of engaging the manufacturer.

	 	(a)	 	Licensee shall notify Dow as soon as practicable, but in no event later
than [**] after granting any sublicense under the rights granted by Dow to Licensee
under this Agreement, [**] (the “Sublicensee”).

	 	(b)	 	Licensee shall cause all sublicenses to incorporate contractual provisions substantially
identical to Sections 4.01 and 4.02 hereof. Licensee shall also provide to Dow such [**]
information regarding the [**]

	 	(c)	 	Licensee shall cause all Permitted Sublicensees to execute and deliver
such

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

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	 	 	documents as Dow may reasonably request to [**]. 
	 
	(d)	 	In the event that any Permitted Sublicensee fails to make any payment
required to be made directly to Dow within the periods provided for herein for the
payment of royalties (Licensee shall cause the termination of such sublicense and Dow
may at its option terminate this Agreement if Licensee does not pay Dow the full
unpaid amount owed on any such royalty payment within [**]days of notice of such
failure to pay from Dow.
	 
	(e)	 	The right to “make,” if granted hereunder by Licensee to any Permitted
Sublicensee shall be subject to the limitation that any such right shall be exercised
only by a reputable manufacturer [**].
	 
	(f)	 	The right to “have made,” if granted hereunder by Licensee to any
Permitted Sublicensee shall be subject to the limitation that any such right shall be
exercised only with respect to a reputable manufacturer [**].
	 
	(g)	 	If exercising a right to “have made,” Sublicensee shall provide Dow written
notice of [**] in advance of engaging the
manufacturer.
	 
	(h)	 	The right to make or have made, if granted to any Sublicensee by Licensee
hereunder, shall not be sublicensed by any such Sublicensee without the consent of
Dow, such consent not be unreasonably withheld or delayed.
	 
	(i)	 	The terms of any sublicense to any Permitted Sublicensee shall be subject to
[**].

2.02 Transfer of Biological Material and Technical Support: Upon execution of this

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

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Agreement, Dow shall transfer Biological Material and a Know-How Technology package to Licensee and
the Know-How Technology package will be added as Appendix A. [**]. Dow shall provide commercially
reasonable technical assistance to Licensee in the use of Biological Material and Know-How
Technology at [**] at the time technical assistance is provided. Payment for [**]. It is
understood and agreed that these hours will consist of technical support/advice and shall not be
used for process development activities at Dow.

2.03 Parties’ Roles: Licensee shall have complete control of purchasing and the detailed
design, construction and operation (including maintenance) of the equipment necessary to produce
Active and Product using Pfénex Expression TechnologyTM. Dow’s role is a technical advisor. Among other things, this means
that Licensee is solely responsible for all of the following: (i) safety, (ii) the selection,
retention, supervision, performance, and payment of qualified engineer(s), constructor(s) and/or
contractor(s), (iii) the detailed design, and the construction, operation and maintenance of the
equipment necessary to produce Active and Product using Pfénex Expression TechnologyTM and all of its component parts, (iv)
the inspection and the structural and mechanical conditions of any and all equipment and materials
included in or added to the equipment necessary to produce Active and Product using Pfénex Expression TechnologyTM, and (v)
the training of the operating and maintenance personnel.

Article 3 MILESTONE PAYMENTS, ROYALTIES, AND ROYALTY REPORTS

3.01 Milestone Payments:  As partial consideration for the granting of this license,
Licensee agrees to pay Dow the sum [**]. No more than [**] shall be
payable with respect to [**] under the provisions of this Section 3.01. These sums shall [**].

3.02 Royalty Payments:

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

- 8 -

 

3.02.1 Except as provided in 3.02.2, the royalties due and payable by Licensee in US
dollars to Dow shall be [**] of Net Sales when [**].

3.02.2 [**], the royalties due and payable by Licensee in US dollars to Dow shall be [**]
of Net Sales.

For the purposes of this article, [**]. Without limiting the generality of the foregoing, for the
avoidance of doubt, [**].

3.03 Royalty and Royalty Reports: Commencing with respect to the [**] in which the first
Product receives regulatory approval, Licensee agrees to make written Royalty Reports to Dow
[**], and Licensee shall use commercially reasonable efforts to provide Royalty Reports within
[**] days of the end of each [**]. Royalty Reports shall provide the total Net Sales of Product
sold or value received during the [**]. The first Royalty Report shall include all Net Sales of
Product sold from the Effective Date of this Agreement to the date of said Royalty Report. Such
[**] Royalty Reports shall provide the particulars regarding sales of Products during such
[**] as are pertinent to a royalty accounting. These shall include at least the following:

	 	a.	 	[**]
	 
	 	b.	 	[**]
	 
	 	c.	 	[**]
	 
	 	d.	 	[**]

3.04 Royalty Report after Termination: Licensee shall provide a Termination Royalty Report
to Dow within [**] days after the date of any termination of this Agreement. The Termination
Royalty Report shall provide the total Product Net Sales up to such date of termination which were
not previously reported to Dow. Concurrently with the making of this Termination Royalty Report,
Licensee will pay to Dow all Royalties due.

3.05 Methods for Payment of Milestone Fees and Royalties:

	 	(a)	 	Each payment to Dow shall be made by wire transfer to the following
destination:

[**]

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

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	 	(b)	 	Royalty reports shall be addressed to the following address:

[**]

	 	 	 	or another location in the United States which Dow may subsequently designate from
time to time by notice to Licensee.

3.06 Late Payments: If Licensee fails to timely pay when due any amount which is payable
under this Agreement, then, without prejudice to other sections of this Agreement, that amount
shall bear interest compounded quarterly from the due date until payment is made in full, both
before and after any judgment, at an annual rate of [**] on the day payment was due, until paid.

3.07 Status Reports: Upon the [**] of this agreement and [**]
Licensee shall provide Licensor a clinical status report detailing the clinical status and
projected commercialization date of each Product in which Active is used. These reports shall be
sent to the address provided in Section 12.01, with a copy to the address provide in Section
3.05(b).

3.08 Currency. All amounts payable and calculations hereunder shall be in United States
dollars. As applicable, Net Sales and any royalty deductions shall be translated into United
States dollars at the [**]. If, due to restrictions or prohibitions imposed by national or
international authority, payments cannot be made as provided in this Article 3, the Parties shall
consult with a view to finding a prompt and acceptable solution, and Licensee will deal with such
monies as Dow may lawfully direct so long as [**].

3.09 Taxes and Withholding. All payments under this Agreement will be made without any
deduction or withholding for or on account of any tax, duties, levies, or other

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

- 10 -

 

charges unless such deduction or withholding is required by applicable laws or regulations to be
assessed against Dow. If Licensee is so required to deduct or withhold, Licensee will (i) promptly
notify Dow of such requirement, (ii) pay to the relevant authorities the full amount required to be
deducted or withheld promptly upon the earlier of determining that such deduction or withholding is
required or receiving notice that such amount has been assessed against Dow, and (iii) promptly
forward to Dow an official receipt (or certified copy) or other documentation reasonably acceptable
to Dow evidencing such payment to such authorities.

Article 4  RETENTION BY LICENSEE AND ACCESS TO RECORDS

4.01 Records: Licensee shall keep records showing the amount of Products sold or otherwise
transferred to Third Parties. Licensee shall keep complete records related to activities and
requirements under Article 3 such that records shall be in sufficient detail to enable the
Royalties payable hereunder by Licensee to be clearly and fully determined. Licensee further
agrees to permit its books and records, including without limitation such books and records
relating to Permitted Sublicensees, to be examined no more than [**] to verify the reports provided
under this Agreement, such confidential examination to be made at Dow’s discretion by [**]. Such
records shall be kept and examination thereof shall be limited to a period of time no more than
[**] after the close of the fiscal year to which the records pertain. In the event that Licensee
shall make any sublicense to a Permitted Sublicensee to the extent permitted hereunder, Licensee
shall (a) cause such sublicense to incorporate audit rights in favor of Licensee substantially
identical to the provisions of this Section 4.01 , and (b) use commercially reasonable efforts to
enforce such audit rights with respect to such Permitted Sublicensee.

4.02 Financial Information. Licensee shall provide to Licensor [**]

Article 5 CONFIDENTIALITY

5.01 Confidential Information: It is anticipated that it will be necessary, in connection

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

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with their obligations under this Agreement, for Licensee and Dow to disclose to each other
Confidential Information. If Confidential Information is disclosed orally, the Confidential
Information shall be summarized in written form within [**] by the disclosing party and
a copy provided to the recipient.

5.02 Confidentiality and Limited Use: With respect to all Confidential Information, both
Licensee and Dow agree as follows, it being understood that “recipient” indicates the Party
receiving the confidential, proprietary information from the other “disclosing” Party.
Confidential Information and Biological Material provided or disclosed to the recipient shall
remain the property of the disclosing Party and shall be maintained in confidence by the recipient
and shall not be provided or disclosed to Third Parties by the recipient and, further, shall not be
used except for purposes contemplated in this Agreement. Parties may disclose Confidential
Information to officers, directors, employees, associates, agents, consultants, and Affiliates.
All confidentiality and limited use obligations with respect to the Confidential Information shall
terminate [**] years after the termination date of this Agreement.

5.03 Confidentiality Exceptions: Notwithstanding any provision to the contrary, a party
may disclose the Confidential Information of the other party: (i) in connection with an order of a
court or other government body or as otherwise required by or in compliance with law or
regulations; provided that the disclosing party provides the other party with notice and takes
reasonable measures to obtain confidential treatment thereof; (ii) in confidence to recipient’s
attorneys, accountants, banks and financial sources and its advisors; or (iii) in confidence, in
connection with the sale of substantially all the business assets to which this Agreement relates,
so long as, in each case, the entity to which disclosure is made is bound to confidentiality on
terms consistent with those set forth herein. The obligations of confidentiality and limited use
shall not apply to any of the Confidential Information which:

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

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	 	(a)	 	is publicly available by publication or other documented means or later
becomes likewise publicly available through no act or fault of recipient; or
	 
	 	(b)	 	is already known to recipient before receipt from the disclosing party, as
demonstrated by recipient’s written records; or
	 
	 	(c)	 	is made known to recipient by a Third Party who did not obtain it directly or
indirectly from the disclosing party and who does not obligate recipient to hold it in
confidence; or
	 
	 	(d)	 	is independently developed by the recipient as evidenced by credible written
research records of recipient’s employees or agents who did not have access to the
disclosing party’s Confidential Information. Specific information should not be
deemed to be within any of these exclusions merely because it is embraced by more
general information falling within these exclusions.

5.04 Disclosures to Personnel: Recipient agrees to advise those of its officers,
directors, employees, associates, agents, consultants, and Affiliates who become aware of the
Confidential Information, of these confidentiality and limited use obligations and agrees, prior to
any disclosure of Confidential Information to such individuals or entities, to make them bound by
obligations of confidentiality and limited use of the same stringency as those contained in this
Agreement.

5.05 Return of Confidential Information: Upon termination of this Agreement, originals and
copies of Confidential Information in written or other tangible form and all Biological Material
shall be returned to the disclosing party by recipient or destroyed by recipient. One copy of each
document may be retained in the custody of the recipient’s legal counsel solely to provide a record
of what disclosures were made.

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

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5.06 Confidential Status of Agreement: [**]

Article 6 DISCLAIMERS, INDEMNIFICATION, HOLD HARMLESS AND INSURANCE

6.01 Representations and Warranties of Each Party. Each of Dow and Licensee hereby represents,
warrants, and covenants to the other Party as follows:

	 	(a)	 	it is a corporation duly organized and validly existing under the laws of the
state of its incorporation;
	 
	 	(b)	 	the execution, delivery and performance of this Agreement by such Party has
been duly authorized by all requisite corporate action and does not require any
further corporate action or approval;
	 
	 	(c)	 	it has the power and authority to execute and deliver this Agreement and to
perform its obligations hereunder; and
	 
	 	(d)	 	the execution, delivery and performance by such Party of this Agreement and
its compliance with the terms and provisions hereof does not and will not conflict
with or result in a breach of any of the terms and provisions of or constitute a
default under (i) any other agreement or instrument binding or affecting it or its
property; (ii) the provisions of its charter or operative documents or bylaws; or
(iii) any order, writ, injunction or decree of any court or governmental authority
entered against it or by which any of its property is bound.

6.02 Additional Representations and Warranties of Dow. Dow, hereby represents, warrants, and
covenants to Licensee that:

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

- 14 -

 

	 	(a)	 	as of the Effective Date, the Patent Rights are existing and, to the best of
its knowledge, are not invalid or unenforceable, in whole or in part;
	 
	 	(b)	 	it has and will have the full right, power and authority to grant all of the
right, title and interest in the licenses granted or to be granted to Licensee under
this Agreement;
	 
	 	(c)	 	Dow is the sole and exclusive owner of the Dow Patent Rights existing as of
the effective date of this Agreement, all of which are free and clear of any liens,
charges and encumbrances (other than licenses granted by Dow to Third Parties, which
grants do not conflict with the license grants to Licensee hereunder);
	 
	 	(d)	 	to the best of its knowledge, as of the effective date of this Agreement, the
use of Pfénex Expression TechnologyTM to make, have made, use and sell Product as contemplated by this
Agreement, does not infringe any issued patent owned or possessed by any Third Party;
	 
	 	(e)	 	to the best of its knowledge, as of the Effective Date, there are no Third
Party patent applications pending (other than those which have been disclosed, in
writing, by Dow to Licensee prior to the signing of this Agreement) which, if issued,
would be infringed by the use of Pfénex Expression TechnologyTM to make, have made, use and sell Product as
contemplated by this Agreement; and
	 
	 	(f)	 	as of the Effective Date, there are no claims, judgments or settlements
against or owed by Dow or, to the best of its knowledge, pending or threatened claims
or litigation, in either case relating to the Pfénex Expression TechnologyTM.

6.03 No Other Warranties:

EXCEPT FOR THE EXPRESS WARRANTIES IN SECTIONS 6.01 and 6.02, NEITHER DOW NOR LICENSEE MAKES ANY
REPRESENTATION OR

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

- 15 -

 

WARRANTY, EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, REGARDING:

PATENT RIGHTS, KNOW-HOW TECHNOLOGY, IMPROVEMENTS, PFéNEX EXPRESSION TECHNOLOGYTM, PRODUCT AND BIOLOGICAL MATERIAL
(INCLUDING, WITHOUT LIMITATION, THE VALIDITY OR SCOPE OF THE PATENT RIGHTS) OR INCLUDING,
WITHOUT LIMITATION, PERFORMANCE, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR THE
NON-INFRINGEMENT OF THIRD PARTY PROPERTY RIGHTS.

6.04 Indemnification by Licensee. Licensee will indemnify, defend and hold harmless Dow, each of
its Affiliates, and each of its and its Affiliates’ employees, officers, directors and agents
(each, a “Dow Indemnified Party”) from and against any and all liability, loss, damage, expense
(including reasonable attorneys’ fees and expenses) and cost (collectively, a “Liability”) that the
Dow Indemnified Party may be required to pay to one or more Third Parties resulting from or arising
out of:

	 	(a)	 	any claims of any nature arising out of the identification, research,
development or commercialization of Product(s) by, on behalf of, or under the
authority of, Licensee (other than by any Dow Indemnified Party), other than claims by
Third Parties relating to patent infringement arising out of the exercise of rights
under the Patent Rights; or
	 
	 	(b)	 	the material breach by Licensee of any of its representations, warranties or
covenants set forth herein;
	 
	 	 	 	except, in each case, to the extent caused by the gross negligence or willful
misconduct of Dow or any Dow Indemnified Party.

6.05 Indemnification by Dow. Dow will indemnify, defend and hold harmless Licensee, its
Affiliates, Permitted Sublicensees, and Licensee Partners and each of its and their respective
employees, officers, directors and agents (each, a “Licensee Indemnified

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

- 16 -

 

Party”) from and against any and all Liabilities that the Licensee Indemnified Party may be
required to pay to one or more Third Parties resulting from or arising out of the material breach
by Dow of any of its representations, warranties or covenants set forth herein, except to the
extent caused by the gross negligence or willful misconduct of Licensee or any Licensee Indemnified
Party.

6.06 Indemnification Procedure. Each Party will notify the other Party in writing in the event it
becomes aware of a claim for which indemnification may be sought hereunder. In case any proceeding
(including any governmental investigation) shall be instituted involving any Party in respect of
which indemnity may be sought pursuant to this Agreement, such Party (the “Indemnified Party”)
shall promptly notify the other Party (the “Indemnifying Party”) in writing and the Indemnifying
Party and Indemnified Party shall meet to discuss how to respond to any claims that are the subject
matter of such proceeding. The Indemnified Party shall cooperate fully with the Indemnifying Party
in defense of such matter. [**]. The Indemnifying Party shall
not be liable for any settlement of any proceeding effected without its written consent, but, if
settled with such consent or if there be a final judgment for the plaintiff, the Indemnifying Party
agrees to indemnify the Indemnified Party from and against any loss or liability by reason of such
settlement or judgment. The Indemnifying Party shall not, without the written consent of the
Indemnified Party, effect any settlement of any

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

- 17 -

 

pending or threatened proceeding in respect of which the Indemnified Party is, or arising out of
the same set of facts could have been, a party and indemnity could have been sought hereunder by
the Indemnified Party, unless such settlement includes an unconditional release of the Indemnified
Party from all liability on claims that are the subject matter of such proceeding.

6.07 Limited Liability: NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY LOSS OF
PROFITS, LOSS OF BUSINESS, INTERRUPTION OF BUSINESS, INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES OF
ANY KIND SUFFERED BY SUCH OTHER PARTY FOR BREACH HEREOF, WHETHER BASED ON CONTRACT OR TORT CLAIMS
OR OTHERWISE, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS.

6.08 Insurance: At all times while this Agreement is in effect and during which Licensee
is conducting clinical trials of any Product, LICENSEE will procure and maintain, at its own
expense and for its own benefit, Comprehensive/ Commercial General Liability Insurance, including
coverage for Contractual Liability and Products Liability (including coverage for human clinical
trials), having a bodily injury, death, and property damage combined single limit of at least [**]
per occurrence. Prior to commencement of any commercial product sales, LICENSEE will procure and
maintain, at its own expense and for its own benefit , Product Liability insurance having a bodily
injury, death, and property damage combined single limit of at least [**] per occurrence, provided
that such [**] coverage will be increased to [**]. The scope of the Product Liability coverage to
be provided is to be similar to standard ISO forms (e.g. 1998 Commercial General Liability ISO form
#CG 00 01 01 98 or CG 00 02 01 98). If the insurance to be provided is in a form similar to ISO
policy form CG 00 02 01 98 (claims made form), then the policy shall contain an extended reporting
period of at least [**]; any Retroactive Date under said policy shall be no later than the
Effective Date of this Agreement.

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

- 18 -

 

(a) LICENSEE will furnish Dow a certificate(s) from an insurance carrier or carriers
(having a minimum AM Best rating of A-) showing all insurance set forth above. The
certificate(s) will include the following statement: “The insurance certified hereunder is
applicable to contracts between The Dow Chemical Company and the Insured. This insurance
may be canceled or altered only after thirty (30) days written notice to The Dow Chemical
Company.” The insurance will be endorsed and the certificate(s) will confirm that the
insurance (1) names The Dow Chemical Company and its affiliates as additional insureds
with respect to matters arising from this Agreement; (2) provides that such insurance is
primary and non-contributing to any liability insurance carried by The Dow Chemical
Company; and (3) provides that underwriters and insurance companies of LICENSEE may not
have any right of subrogation against The Dow Chemical Company and its affiliates. The
insurance will contain no more than a typical industry deductible/SIR.

(b) LICENSEE agrees [**].

Article 7 PATENTS, IMPROVEMENTS AND INFRINGEMENT OF DOW’S PATENT RIGHTS BY THIRD PARTIES

7.01 Improvements: Licensee shall disclose to Dow all Improvements made under this
Agreement. Such Improvements shall be disclosed to Dow [**] in an Improvements Report, submitted
to the address provided in Section 12.01.

7.02 Grant-Back: When an Improvement is made or discovered by Licensee and/or its

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

- 19 -

 

Affiliates, Licensee will, and will cause its Affiliates as the case may be, grant Dow and its
Affiliates [**] licenses to such Improvement with
the right to sublicense such rights to Third Parties, with the right to further sublicense.
Licensee and its Affiliates shall provide Dow with biological material, which contains or embodies
such Improvement. The licenses in this Section 7.02 shall survive expiration or termination,
whichever occurs later, of this Agreement. Licenses resulting from this Section are for the
commercial life of any such discoveries, unless such discovery is patented, in which case the
license shall be for the life of the patent(s) that claim such Improvement.

7.03 Patent Infringement: Should Licensee become aware of any infringement or alleged
infringement of any Patent Rights, Licensee shall promptly notify Dow in writing of the name and
address of the alleged infringer and of the alleged acts of infringement, and provide any available
evidence of the alleged acts of infringement. [**]. In the event that Dow [**] bring a patent infringement suit against the alleged Third Party infringer, Licensee
shall cooperate with Dow in the prosecution of any legal infringement action and agrees to provide
Dow with pertinent data and evidence which may be helpful in the prosecution of such action of
which it may have knowledge or which may be readily available to it. [**].

7.04 Invalidity of Patent Rights: If, at any time during this Agreement, Dow shall be
unable to uphold the validity of any of the Patent Rights against any alleged infringer,

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

- 20 -

 

[**]. In the event that Patent Rights are not upheld, [**] under this Agreement according to the terms and conditions of this Agreement
for the periods provided for herein.

Article 8 ASSIGNABILITY/SUCCESSION/CHANGE IN CONTROL

8.01 Licensee Assignability: Licensee shall have the right to assign this
Agreement [**]. In addition, Licensee shall have the
right to assign its respective rights or obligations and delegate its performance hereunder, in
whole or in part, to any of its Affiliates, but in any such case, Licensee shall remain fully
obligated for the performance by such Affiliate of all obligations of Licensee hereunder. In all
events, Licensee shall cause the assignee to agree in writing to be bound by all the terms of this
Agreement.

8.02 Dow Assignability: Dow shall have the right to assign this Agreement in connection
with the reorganization, consolidation, spin-off, sale or transfer of assets related to that
portion of its business pertaining to the subject matter of this Agreement, either alone or in
conjunction with other Dow businesses or in connection with any sale of substantially all of its
assets or any merger or consolidation. In addition, Dow shall have the right to assign its
respective rights or obligations and delegate its performance hereunder, in whole or in part, to
any of its Affiliates. In either event, the assignee shall agree in writing to be bound by all the
terms of this Agreement.

Article 9 UNITED STATES GOVERNMENT EXPORT CONTROL

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

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REGULATIONS

9.01 Export Control Regulations: The Export Control Regulations of the U.S. Department of
Commerce prohibit, except under a special validated license, the exportation from the United States
of technical data relating to certain commodities listed in the Regulations, unless the exporter
has received certain written assurance from the foreign importer. In order to facilitate the
exchange of technical information under this Agreement, Licensee therefore hereby gives its
assurance to Dow that it will comply with all of the requirements of the U.S. Export Control
Regulations.

9.02 Termination for Violations: Violation of the U.S. Export Control laws or regulations
by Licensee shall constitute grounds for Dow, in its sole discretion, to terminate this license
agreement. Failure to obtain any needed export control license may result in criminal liability
under the United States law.

Article 10 TERM AND TERMINATION

10.01 Term: Unless previously terminated in accordance with the following provisions of
this Article 10, Section 8.02 or 9.02, this Agreement is effective as of the Effective Date of this
Agreement and shall have a term of [**] from the date of first sale of a Product or to the end of
the term of the last to expire patent in the Patent Rights licensed hereunder, whichever is longer
and shall thereupon expire. Licensee shall have an irrevocable and fully paid-up license to
Licensor’s Pfenex Expression Technology thereafter.

10.02 Licensee’s Right to Terminate: Licensee shall have the right to terminate this
Agreement [**] Calendar Years after the Effective Date, provided Licensee provides [**] months
written notice of such termination.

10.03 Dow’s Right to Terminate: Dow shall have the right to terminate this Agreement by
giving [**] days written notice to Licensee if, in Dow and
Licensee agree that [**] Pfenex Expression TechnologyTM[**].

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

- 22 -

 

10.04 Termination of Agreement for Breach:

	 	(a)	 	Either Party may terminate this Agreement upon at least [**] written
notice to the other Party should the other party commit a material breach of its
obligations or be in default under any of the provisions of this Agreement if: (i) the
breach can reasonably be cured within the [**] notice period and the Party in breach
has failed to cure the breach or default within the same [**] notice period; (ii)
if such breach or default cannot be cured within the [**] period, the Party in
breach has not taken reasonable steps toward curing the breach or default. If the
breach or default can not be cured within the [**] period, the Party in breach
shall notify the non-breaching Party of the steps taken toward curing such default or
breach and the plans to totally cure such default or breach as soon as reasonably
possible. If the Party in breach fails to provide such notice, the non-breaching
Party shall be free to terminate with immediate effect by notice to the Party in
breach.
	 
	 	(b)	 	If Licensee shall at any time default in the payment of any license fee or
royalty or in the making of any report hereunder, and shall fail to remedy any such
default or breach within [**] days after written notice thereof by Licensor, then
Licensor may, at its option, terminate the license and all other rights herein
granted, by giving notice to Licensee in writing to such effect.
	 
	 	(c)	 	Notwithstanding a Party’s right to terminate this Agreement as a result of a
non-cured material breach by the other Party, the non-breaching Party shall not be
prevented from seeking any other remedy which may be available to it in equity,
including specific performance on the part of the party in breach.

10.05 Insolvency: Either Party may terminate this Agreement if, at any time:

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

- 23 -

 

	 	(a)	 	the other Party makes an assignment for the benefit of creditors or admits in
writing its inability generally to pay or is generally not paying its debts as such
debts become due;
	 
	 	(b)	 	any decree or order for relief is entered against the other Party under any
bankruptcy, reorganization, compromise, arrangement, insolvency, readjustment of debt,
dissolution or liquidation or similar law;
	 
	 	(c)	 	the other Party petitions or applies to any tribunal for, or consents to, the
appointment of, or taking possession by, a trustee, receiver, custodian, liquidator or
similar official, of such other Party or any substantial part of its assets, or
commences a voluntary case under the bankruptcy law of any jurisdiction;
	 
	 	(d)	 	any such petition or application is filed, or any such proceedings are
commenced, against the other Party and such other Party by any act indicates its
approval thereof, consent thereto or acquiescence therein, or an order, judgment or
decree is entered appointing any such trustee, receiver, custodian, liquidator or
similar official, or approving the petition in any such proceedings, and such order
for relief, order, judgment or decree remains unstayed and in effect for more than
sixty (60) days; or
	 
	 	(e)	 	any order, judgment or decree is entered in any proceedings against the other
Party decreeing the dissolution of such other Party and such order, judgment or decree
remains unstayed and in effect for more than sixty (60) days.

10.06 Effects of Termination/Survival:

	 	(a)	 	Expiration or termination of this Agreement shall not relieve the Parties of
any obligation accruing prior to or upon such expiration or termination. Accordingly,
Dow rights under Section 7.02 shall survive expiration of termination of this
Agreement for any reason. Sections 3.04, 6.04, Articles

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

- 24 -

 

	 	 	 	5 and Article 6 shall survive expiration or termination of this Agreement and
Licensee shall not be relieved of any payment obligation that may have accrued prior
to such expiration or termination.
	 
	 	(b)	 	Upon any termination of this Agreement for any reason other than a breach by
Licensee, insolvency by Licensee, termination by Licensee under Section 10.02 or
termination by Dow under Section 10.03, Licensee shall, be entitled to sell, for a
period of [**] months, remaining inventories of any Product(s) which are already in
its possession. Such sales shall be in accordance with this Agreement and the Parties
shall continue to be obligated to make all applicable payments hereunder.
	 
	 	(c)	 	After termination, except as provided in (b) above, any remaining Active,
Product and all Biological Material and Confidential Information remaining, if any,
shall be destroyed or shall be returned, respectively, and the destruction shall be
certified to Dow by a representative of Licensee.

Article 11 ADVERTISING/PUBLICITY

11.01 Neither the granting of the license herein granted by Dow nor the acceptance of the milestone
payments or royalties hereunder by Dow shall constitute Dow’s approval of, or acquiescence in,
advertising or other business practices of Licensee, nor an approval of or acquiescence in any use
of the corporate name of Dow, use of the name(s) of the inventors of the Patent Rights licensed, in
connection with the manufacture, advertising, use or sale of Product, and Dow hereby expressly
reserves all rights of actions with respect thereto.

11.02 Dow and Licensee hereby agree to issue a joint press release upon signing of this Agreement.
The wording of said press release shall be mutually agreed by both parties prior to issuance.

Article 12 NOTICES 

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

- 25 -

 

12.01 Notices: Any notice or other communication required or permitted to be given by
either party under this Agreement shall be given in writing and shall be effective when delivered,
if delivered by hand, reputable courier service or five days after mailing if mailed by registered
or certified mail, postage prepaid and return receipt requested, addressed to each party at the
following addresses or such other address as may be designated by written notice by either Party:

For Dow:

[**]

 

With a copy to:

[**]  

 

For Licensee:

[**]

Iomai Corporation

20 Firstfield Road Suite 250

Gaithersburg, MD 20878 USA

Article 13 MISCELLANEOUS

13.01 Severability: If any clause, provision, or section of this Agreement attached
hereto, shall, for any reason, be held illegal, invalid or unenforceable, the parties shall
negotiate in good faith and in accordance with reasonable standards of fair dealing, a valid,
legal, and enforceable substitute provision or provisions that most nearly reflect the original
intent of the parties under this Agreement in a manner that is commensurate in magnitude and degree
with the changes arising as a result of any such substitute provision or provisions. All other
provisions in this Agreement shall remain in full force and effect and shall be construed in order
to carry out the original intent of the parties as nearly as

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

- 26 -

 

possible (consistent with the necessary reallocation of benefits) and as if such invalid, illegal,
or unenforceable provision had never been contained herein.

13.02 Merger of Understanding: Except for the [**] this Agreement constitutes the entire
Agreement between the Parties regarding the subject matter hereof and all prior negotiations and
understandings between the parties are deemed to be merged into this Agreement. Notwithstanding
the forgoing, in the event that Dow has the right to terminate this Agreement, then Dow shall have
the right to terminate the Confidentiality Agreement and Licensee agrees to abide extend the
Confidentiality term in the Confidentiality Agreement so that the period of confidentiality runs in
parallel with this Agreement.

13.03 Force Majeure: Neither of the Parties shall be liable for any default or delay in
performance of any obligation under this Agreement caused by any of the following: Act of God, war,
riot, fire, explosion, accident, flood, sabotage, compliance with governmental requests, laws,
regulations, orders or actions, national defense requirements or any other event beyond the
reasonable control of such Party; or labor trouble, strike, lockout or injunction (provided that
neither of the Parties shall be required to settle a labor dispute against its own best judgment).
The party invoking the provisions of this Section shall give the other Party written notice and
full particulars of such force majeure event. Both Dow and Licensee shall use reasonable business
efforts to mitigate the effects of any force majeure on their respective part.

13.04 Relationship of the Parties: The relationship of Dow and Licensee is strictly one of
Dow and Licensee and the parties acknowledge that this Agreement does not create a joint venture,
partnership, or the like, between them. Licensee shall always remain independent contractors in
its performance of this Agreement. Neither party to this Agreement shall have any authority to
employ any person as an employee or agent for or on behalf of the other party to this Agreement for
any purpose, and neither party to this

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

- 27 -

 

Agreement, nor any person performing any duties or engaging in any work at the request of such
party, shall be deemed to be an employee or agent of the other party to this Agreement.

13.05 Use of Names: Neither Party shall use the name of the other in any promotional
materials or advertising without the prior written consent of the other except as specifically
provided in this Agreement or other related agreements.

13.06 Choice of Law; Submission to Jurisdiction: All questions with respect to the
construction of this Agreement and the rights and liabilities of the Parties hereto shall be
determined in accordance with the laws of the State of Delaware applicable to business arrangements
entered into and performed entirely within the State of Delaware.

13.07 Provisions Contrary to Law: In performing this Agreement, the Parties shall comply
with all applicable laws and regulations. Nothing in this Agreement shall be construed so as to
require the violation of any law, and wherever there is any conflict between any provision of this
Agreement and any law the law shall prevail, but in such event the affected provision of this
Agreement shall be affected only to the extent necessary to bring it within the applicable law.

13.08 Remedies: Except as otherwise expressly stated in this Agreement, the rights and
remedies of a party set forth herein with respect to failure of the other to comply with the terms
of this Agreement (including, without limitation, rights of full termination of this Agreement) are
not exclusive, the exercise thereof shall not constitute an election of remedies and the aggrieved
party shall in all events be entitled to seek whatever additional remedies may be available in law
or in equity.

13.09 Fees: Except as otherwise provided herein, each Party shall bear its own legal fees
incurred in connection with the transactions contemplated hereby, provided,

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

- 28 -

 

however, that if any Party to this Agreement seeks to enforce its rights under this Agreement by
legal proceedings or otherwise, the non-prevailing Party shall pay all costs and expenses incurred
by the prevailing party, including, without limitation, all reasonable attorneys’ fees.

13.10 Headings: Headings herein are for convenience of reference only and shall in no way
affect interpretation of this Agreement.

13.11 Counterparts: This Agreement may be executed in any number of counterparts with the
same effect as if all parties had signed the same document. All such counterparts shall be deemed
an original, shall be construed together and shall constitute one and the same instrument.

13.12 Appendices: The appended Appendices and any modifications or amendments thereof form an
integral part of this Agreement.

     IN WITNESS WHEREOF, the Parties hereto have understood, agreed to and caused this Agreement to
be executed in duplicate originals by their duly authorized representatives as of the date written
beneath their respective signatures.

	 	 	 	 	 	 	 
	The Dow Chemical Company	 	Iomai Corporation
	(Licensor)

	 	(Licensee)
	 
	 	 	 	 	 	 
	By:
	 	/s/ Andrew N. Liveris	 	By:	 	/s/ Stanley C. Erck 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Name:
	 	 Andrew N. Liveris	 	Name:	 	 Stanley C. Erck
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Title:
	 	 Chief Executive Officer	 	Title:	 	 CEO
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Date:
	 	 June 23, 2005	 	Date:	 	 30 Jun 05
	 

	 	 
	 	 	 	 

[**] Portions of this exhibit have been omitted pursuant to a confidential
treatment request. An unredacted version of this exhibit has been filed separately
with the Commission.

- 29 -

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