Document:

Sublease

 Exhibit 10.4 
 SUBLEASE 
 This Sublease (the “Sublease”) is made as of June 28, 2007 by and between
PANACOS PHARMACEUTICALS, INC., a Delaware corporation (“Landlord”), and WOLFE LABORATORIES, INCORPORATED, a Massachusetts corporation (“Subtenant”). 
 WITNESSETH: 
 WHEREAS, by Lease dated August 4, 1999 between Coolidge Partners L.L.C.
(“Overlandlord”) as lessor thereunder, and Pentose Pharmaceuticals, Inc., Landlord’s predecessor-in-interest, as lessee thereunder (the “Original Lease”), as amended by First Amendment dated November 5, 1999 (the
“First Amendment”; the Original Lease as amended by the First Amendment is referred to as the “Overlease”), redacted copies of which are attached as Exhibit A hereto, Overlandlord leased to Landlord the Land and the
Building known as 134 Coolidge Avenue, Watertown, MA (defined in the Overlease as the “Premises”) as more particularly described in the Overlease; and 
 WHEREAS, Subtenant desires to sublease from Landlord and Landlord desires to sublease to Subtenant, a portion of the Building consisting of the entire second (2nd) floor as identified on Exhibit B attached
hereto (hereinafter referred to as the “Subleased Premises”), which Subleased Premises, notwithstanding anything to the contrary contained in the Overlease, are agreed to consist of 21,461 rentable square feet of space. 
 NOW, THEREFORE, in consideration of the mutual covenants herein contained and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto hereby agree as follows: 
 1. DEMISE OF SUBLEASED PREMISES. Landlord hereby demises
and subleases to Subtenant, and Subtenant hereby hires and takes from Landlord, the Subleased Premises for the term and upon the conditions hereinafter set forth. Subtenant shall have the right to use, in common with Landlord, the common areas and
facilities of the Building and Land, including, without limitation, a loading dock and Subtenant’s Building Share (as hereinafter defined) of the parking spaces available under the Overlease. 
 2. TERM. 
 (a) The term of this
Sublease (the “Term”) shall commence on the date (the “Commencement Date”) that is the later to occur of (i) the day on which Overlandlord shall have consented to this Sublease in accordance with Section 15 hereof, or
(ii) the day on which Landlord shall have delivered the entire Subleased Premises to Subtenant. 

 (b) The Term shall end on February 28, 2010 (the “Expiration Date”) or shall end on such
earlier date upon which such term may expire or be terminated pursuant to the provisions hereof or pursuant to law. 
 3. SUBORDINATION TO
AND INCORPORATION OF THE OVERLEASE. 
 (a) This Sublease is in all respects subject and subordinate to the terms and conditions of the
Overlease and to the matters to which the Overlease, including any amendments thereto, is or shall be subordinate. Subtenant agrees that Subtenant has reviewed and is familiar with the Overlease, and will not do or suffer or permit anything to be
done which would result in a default or breach (whether or not subject to notice or grace periods) on the part of Landlord under the Overlease or cause the Overlease to be terminated. If, however, the Overlease is terminated prior to its scheduled
expiration, for any reason whatever, this Sublease shall likewise terminate, without further notice. Such termination shall be without further obligation or liability on the part of Landlord unless such termination (a) shall have arisen out of
a default under the Overlease by Landlord not arising out of a default by Subtenant hereunder, or (b) shall have been effected by Landlord in violation of Section 21.F. hereof. Such termination shall be without further obligation or
liability on the part of Subtenant unless such termination shall have arisen out of a default by Subtenant hereunder. 
 (b) Except as
otherwise expressly provided in this Sublease, the terms, covenants, conditions, rights, obligations, remedies and agreements of the Overlease are incorporated into this Sublease by reference and made a part hereof as if fully set forth herein and
shall constitute the terms of this Sublease, mutatis mutandis, Landlord being substituted for “Landlord” thereunder and Subtenant being substituted for “Tenant” thereunder, except to the extent that such terms do
not relate to the Subleased Premises or are inapplicable to, or specifically inconsistent with, the terms of this Sublease, it being understood and agreed that Landlord will not be acting as, or assuming any of the responsibilities of, Overlandlord,
and all references in the Overlease to Landlord-provided services or Landlord insurance requirements, and any other references which by their nature relate to the owner or operator of the Building, rather than to a tenant of the Building subleasing
space to a subtenant, shall continue to be references to Overlandlord and not to Landlord. Neither the incorporation of the Overlease into this Sublease nor any other provision of this Sublease shall create privity of estate or contract between
Subtenant and Overlandlord. Should there be any conflict between the terms of this Sublease as specifically set forth herein and the terms of the Overlease which are incorporated herein by reference, the terms specifically set forth in this Sublease
shall control as between Landlord and Subtenant. 
 (c) The following provisions of the Overlease shall not be incorporated herein by
reference and are expressly excluded from the terms of this Sublease: all of Exhibit 1 except for “Permitted Use”; Article 2; Article 3; Article 4; the last sentence of Section 5.3; Sections 6(a), (c) and (d); Section 7(f);
Section 8.1(a); the last sentence of Section 8.2; Section 8.4(b); Article 9 except for the defined terms “Taxes” and “Operating Costs”; Section 12(b); Section 12(d) 

  

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(except for the first sentence); the second sentence of Section 15.1(c); the second sentence of Section 16(a); the last sentence of
Section 16(c); Sections 16(d), (h) and (i); the first sentence of Section 17.7(b); Article 18; Article 20; Section 21.4(b); the last sentence of Section 23(a); the first paragraph of Article 27; Section 29.3;
Section 29.5; Article 30; Exhibit 2; Exhibit 2-1; Exhibit 3; Exhibit 5; Exhibit 7; Rider to Lease; and the First Amendment. The reference in this Sublease to any particular section or article of the Overlease shall not in any way be deemed or
construed to derogate from the general incorporation by reference of the entire Overlease (except as aforesaid) into this Sublease. 
 4.
RENT. 
 (a) Subtenant shall pay to Landlord annual fixed rent (the “Yearly Rent”) as follows: 
  

										
	 Period
	  	 Yearly
 Rent
	  	Monthly
Installment	  	Per Rentable
Square Foot
	 From the Commencement Date through the Expiration Date:
	  	$	493,603.00	  	$	41,133.58	  	$	23.00

 payable in advance in equal monthly installments, pro-rated on a per diem basis in the case of any partial months
during the Term. Except as otherwise set forth herein, each monthly installment shall be payable on or before the first day of the calendar month for which such payment is made, without notice or demand and without abatement, set-off or deduction
except as expressly provided in this Sublease. Notwithstanding the foregoing, provided Subtenant is not in default hereunder, Landlord waives payment of Yearly Rent for the period commencing on the Commencement Date and expiring on the later of
(i) October 31, 2007, or (ii) thirty (30) days after the Commencement Date. Subtenant shall, on the Commencement Date, pay to Landlord the sum of $41,133.58, to be applied to the first monthly installment of Yearly Rent due
hereunder. 
 (b) In addition to the Yearly Rent and any other sums which Subtenant may be obligated to pay pursuant to any other provision
of this Sublease, Subtenant agrees to pay to Landlord as additional rent hereunder (or directly to the utility company, if applicable), commencing on the Commencement Date and otherwise as and when such sums are due and payable as provided herein:
(i) 57.4% (“Subtenant’s Building Share”) of the Operating Costs and Taxes as set forth in Article 9 of the Overlease, (ii) all Utility Charges (as hereinafter defined) and (iii) all Subtenant Surcharges (as hereinafter
defined). 
 (c) Commencing on the Commencement Date, Subtenant shall pay directly to the applicable utility company the costs of electrical
service consumed in the second floor of the Building as measured by a separate meter therefor. Subtenant shall contract for and pay directly to the applicable utility company, the costs of telecommunications service to the Subleased 

  

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Premises. Commencing on the Commencement Date, Subtenant shall pay to Landlord 50% (“Subtenant’s Utility Share”) of (i) the costs of
electricity for the rooftop units, (ii) the costs of natural gas for building heating and the emergency generator and (iii) the costs of water and sewer for general building uses and the sprinkler system. The costs payable by Subtenant
pursuant to this Section 4(c) are referred to as “Utility Charges”. 
 (d) As used herein, the term “Subtenant
Surcharges” shall mean any and all amounts other than Operating Costs, Taxes and Utility Charges which become due and payable by Landlord to the Overlandlord under the Overlease whether as “additional rent” or for any extra services
or otherwise, which would not have become due and payable but for the acts and/or failures to act of Subtenant under this Sublease or which are otherwise attributable to the Subleased Premises, including, but not limited to: (i) any increases
in the Overlandlord’s fire, rent or other insurance premiums resulting from any act or omission of Subtenant, (ii) any additional rent under the Overlease payable by Landlord on account of Subtenant’s use or maintenance of heating,
ventilation or air conditioning, and (iii) any additional rent under the Overlease payable by Landlord on account of any other additional service as may be provided to the Subleased Premises under the Overlease or with the consent of the
Overlandlord. 
 (e) Subtenant’s payments of Operating Costs and Taxes shall be due on the dates on which Landlord’s payments of
the same are due to Overlandlord under the provisions of the Overlease and shall be pro-rated for any partial month or year. Subtenant shall pay the other additional rents set forth in subsections (b), (c) and (d) of this Section 4
within fifteen (15) days after the presentation of statements therefor by Landlord to Subtenant together with a copy of the related bill and supporting documentation received by Landlord. Notwithstanding the foregoing, (i) if the Overlease
provides that a payment of additional rent is payable by Landlord to the Overlandlord within a shorter period of time, Subtenant shall pay the additional rent provided for in this Section 4 relating to such payment of additional rent by
Landlord no later than the business day next preceding the date that Landlord shall be so required to pay, but in no event sooner than ten (10) days after presentation of a statement therefor by Landlord as aforesaid, and (ii) if the
Overlease provides that a payment of additional rent thereunder for which Subtenant is liable to Landlord under this Section 4 is payable by Landlord to the Overlandlord on demand, then Subtenant shall pay any additional rent provided for in
this Section 4 relating to such payment of additional rent under the Overlease upon the demand of Landlord accompanied by a statement of the amount due as aforesaid. Subtenant shall pay Overlandlord on the applicable due dates under the
Overlease for any additional services requested by Subtenant which are billed by Overlandlord directly to Subtenant rather than Landlord, and Subtenant shall provide a copy of such bill and payment to Landlord. Any failure or delay by Landlord in
billing any sum set forth in this Section 4 shall not constitute a waiver of Subtenant’s obligation to pay the same in accordance with the terms of this Sublease. 
 (f) Landlord shall promptly furnish to Subtenant a copy of each notice or statement from the Overlandlord or utility company affecting the Subleased
Premises with respect to 

  

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Subtenant’s obligations hereunder including, without limitation, the Operating Budget prepared by Overlandlord. Landlord shall use reasonable efforts to
consult with Subtenant regarding any disputed items of the Operating Budget before approving or disapproving such Operating Budget in accordance with the terms of the Overlease. If Landlord disputes the correctness of any such notice or statement
and if such dispute is resolved in Landlord’s favor, or if Landlord shall receive any refund of additional rent with or without a dispute, Landlord shall promptly pay to Subtenant any refund (after deducting from the amount of any such refund
an equitable portion of all expenses, including court costs and reasonable attorneys’ fees, incurred by Landlord in resolving any such dispute) received by Landlord in respect (but only to the extent) of any related payments of additional rent
made by Subtenant less any amounts theretofore received by Subtenant directly from the Overlandlord and relating to such refund; provided, however, that, if Landlord is required under the terms of the Overlease to pay such amounts
pending the determination of any such dispute (by agreement or otherwise), Subtenant shall pay the full amount of the Yearly Rent, Operating Costs, Taxes, Utility Charges and Subtenant Surcharges in accordance with this Sublease and the applicable
Overlandlord’s or utility company’s statement or notice, subject to Subtenant’s rights hereunder to receive Subtenant’s share of any refund subsequently received by Landlord. 
 (g) To the extent then accrued but not satisfied, Subtenant’s obligation to pay the Yearly Rent, Operating Costs, Taxes, Utility Charges, Subtenant
Surcharges and all other sums payable under this Section 4 or otherwise under this Sublease shall survive the expiration or earlier termination of this Sublease, and any obligation of Landlord’s to refund any overpayments of additional
rent or other amounts paid to it by Subtenant shall likewise survive the expiration or earlier termination of this Sublease. 
 (h) The
Yearly Rent, Operating Costs, Taxes, Utility Charges, Subtenant Surcharges and any other amounts payable pursuant to this Sublease shall be paid by Subtenant to Landlord at the address first set forth above, or at such other place as Landlord may
hereafter designate from time to time in writing, in lawful money of the United States of America, by, at Landlord’s option, a good unendorsed check, subject to collection, as and when the same become due and payable, without demand
therefor and without any deduction, set-off or abatement (except for any abatement expressly provided for herein) whatsoever. Any other amounts of additional rents and other charges herein reserved and payable shall be paid by Subtenant in the
manner and to the persons set forth in the statement from Landlord describing the amounts due. All Operating Costs, Taxes, Utility Charges, Subtenant Surcharges and all other costs, charges and expenses which Subtenant assumes, agrees or is
obligated to pay to Landlord pursuant to this Sublease shall be “additional rent” and in the event of nonpayment thereof Landlord shall have all the rights and remedies with respect thereto as are herein provided for in case of nonpayment
of the Yearly Rent reserved hereunder. 
 5. SECURITY DEPOSIT. Subtenant agrees that a security deposit in an amount equal to
$41,133.58 will be paid upon execution and delivery of this Sublease, and that Landlord shall 

  

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hold the same throughout the Term as security for the performance by Subtenant of all obligations on the part of Subtenant hereunder. Landlord shall have the
right from time to time without prejudice to any other remedy Landlord may have on account thereof, to apply such deposit, or any part thereof, to Landlord’s damages arising from, or to cure, any default of Subtenant (after the giving of notice
and an opportunity to cure, if applicable). If Landlord shall so apply any or all of such deposit, Subtenant shall immediately deposit with Landlord the amount so applied to be held as security hereunder. At the expiration of the Term of this
Sublease and surrender of possession of the Subleased Premises by Subtenant to Landlord, Landlord shall return the deposit, or so much thereof as shall not have theretofore been applied in accordance with the terms of this Section (or reasonably
retained by Landlord as security for any then outstanding debt or obligation under this Sublease with respect to which a notice or grace period may not have passed). While Landlord holds such deposit, Landlord shall have no obligation to pay
interest on the same and shall have the right to commingle the same with Landlord’s other funds. If Landlord assigns or transfers Landlord’s interest under this Sublease, the deposit, or any part thereof not previously applied, shall be
turned over by Landlord to Landlord’s grantee, and, if so turned over, Subtenant agrees to look solely to such grantee for proper application of the deposit in accordance with the terms of this Section 5 and the return thereof in
accordance herewith. 
 6. USE OF SUBLEASED PREMISES. Subtenant shall use the Subleased Premises solely for office and research and
development purposes and for no other purposes, but in no event contrary to the uses permitted by the Overlease. 
 7. CONDITION OF
SUBLEASED PREMISES. 
 (a) Subtenant represents and warrants that it has made a thorough examination of the Subleased Premises and it is
familiar with the condition thereof. Subtenant acknowledges that it enters into this Sublease without any representation or warranties by Landlord or anyone acting or purporting to act on behalf of Landlord, as to present or future condition of the
Subleased Premises or the appurtenances thereto or any improvements therein or of the Building, except as otherwise expressly set forth herein. It is further agreed that, subject to Landlord’s obligations hereunder, Subtenant does and will
accept the Subleased Premises in their “as is” condition on the date hereof (as affected by reasonable wear and tear after the date hereof) and Landlord has no obligation to perform any work therein, or contribute to the cost of any work,
except as otherwise expressly provided herein. Prior to the Commencement Date, Landlord shall decommission the Subleased Premises in accordance with all applicable federal, state and local laws and regulations at Landlord’s expense. 

(b) As of the Commencement Date, Landlord hereby transfers and conveys to Subtenant all of its right, title and interest in and to, and Subtenant
shall accept from Landlord, at no additional charge, in “as is” condition, free of liens and security interests, but otherwise without representation or warranty, all of Landlord’s furniture and equipment located in the 

  

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Subleased Premises. At Subtenant’s request delivered not later than fifteen (15) days after the Commencement Date, the parties shall develop an
inventory of the property to be transferred to Subtenant hereunder and Landlord shall deliver a commercially reasonable bill of sale to Subtenant by which such property shall be transferred to Subtenant in its then “as is” condition, free
of liens and security interests, but otherwise without representation or warranty by Landlord. 
 (c) Notwithstanding anything to the
contrary contained herein or in the Overlease, Subtenant shall maintain and repair during the Term, at Subtenant’s sole cost and expense, all systems and equipment including, without limitation, the PH neutralization system and the pure water
system, serving only the laboratory areas of the Building. Landlord covenants and agrees that the PH neutralization system and the pure water system serving only the laboratory areas will be in good working order and condition on the Commencement
Date. 
 8. ALTERATIONS. Subtenant shall not make any changes, alterations, additions or improvements (collectively
“Alterations”) to the Subleased Premises without first obtaining the written consent of Landlord, which consent shall not be unreasonably withheld or delayed, and, if required by the Overlease, the written consent of Overlandlord. Landlord
shall, at no cost or expense to Landlord, take all reasonable measures to obtain Overlandlord’s consent to any Alterations that require the consent of Overlandlord under the Overlease (including the Initial Alterations as hereinafter defined).
If Overlandlord does not require Subtenant or Landlord to remove any such Alterations made by Subtenant upon the expiration or earlier termination of the term of the Overlease, then Subtenant shall not be obligated to remove such Alterations upon
the expiration or earlier termination of the Term hereof. Landlord acknowledges that Subtenant has no obligation to remove any improvements or alterations existing in the Subleased Premises as of the Commencement Date. 
 Subject to the terms and conditions of the Overlease and the terms of this Sublease, Subtenant shall have the right to perform the initial work in and to
the Subleased Premises set forth in Exhibit D attached hereto (the “Initial Work”). Such Initial Work shall be performed in a good and workmanlike manner and at Subtenant’s sole cost and expense, and shall comply with all
requirements of the Overlease and this Sublease and all requirements all federal, state and local laws, rules, regulations, and ordinances. 
 9. FAILURE OF LANDLORD TO PERFORM OBLIGATIONS. Except as otherwise specifically provided herein, Subtenant is to have the benefit of the covenants and undertakings of Overlandlord as landlord under the Overlease to the extent the
same as applicable to the Subleased Premises during the Term hereof. Subtenant acknowledges and agrees that Landlord shall have no obligation to provide any services or repairs to the Subleased Premises or to perform the terms, covenants, conditions
or obligations contained in the Overlease on the part of Overlandlord to be performed. Subtenant agrees to look solely to Overlandlord for the furnishing of such services and repairs and the performance of such terms, covenants, conditions or
obligations. In the event that Overlandlord shall fail to furnish such services or to perform any of 

  

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the terms, covenants, conditions or obligations contained in the Overlease on its part to be performed, Landlord shall be under no obligation or liability
whatsoever to Subtenant for such failure. In any event, Subtenant shall not be allowed any abatement or diminution of rent under this Sublease because of Overlandlord’s failure to perform any of its obligations under the Overlease except to the
extent that a corresponding abatement or diminution is received by Landlord. Landlord agrees, however, that in the event that Overlandlord shall fail to provide the services or perform the obligations to be provided or performed by it pursuant to
the terms of the Overlease, Landlord shall, upon written notice from Subtenant, make demand upon Overlandlord pursuant to the terms of the Overlease and shall take all reasonable measures to enforce Overlandlord’s obligations. The term
“reasonable measures” shall not include legal action against Overlandlord for its failure to perform nor the exercise of Landlord’s rights under Sections 8.4(b) and/or 21.4(b) of the Overlease unless Subtenant agrees (a) to pay
all costs and expenses (including, without limitation, attorneys’ fees, disbursements and court costs) in connection therewith, (b) to indemnify, defend and hold Landlord harmless from and against all losses, costs, expenses (including,
without limitation, attorneys’ fees, disbursements and court costs), damages, claims and counterclaims in connection therewith and (c) to provide such additional security to Landlord as Landlord may reasonably require. 
 10. ACCESS. Landlord, Overlandlord, and agents of Landlord and Overlandlord may, at reasonable times and upon reasonable notice, enter to view the
Subleased Premises, and make repairs and alterations as Landlord and/or Overlandlord should elect to do and may show the Subleased Premises to others, before the expiration of the Term. 
 11. INSURANCE. Commencing on the Commencement Date and throughout the Term, Subtenant shall carry all insurance as required in the
Overlease, naming Landlord and Overlandlord as additional insureds. Landlord shall request that Overlandlord waive or reduce Subtenant’s obligation to carry at least $10,000,000 of umbrella liability insurance, but Landlord shall not be
obligated to make any payment or concession in order to obtain any such waiver or reduction. 
 12. ASSIGNMENT AND SUBLETTING.
Except as permitted by Sections 16(b) and (c) of the Overlease as incorporated herein, Subtenant shall not assign, mortgage, encumber or otherwise transfer (by operation of law or otherwise) this Sublease, nor sublet the Subleased Premises or
any part thereof, or permit the Subleased Premises or any part thereof to be used or occupied by anyone without first obtaining the written consent of Landlord and Overlandlord in each instance, which consent of Landlord shall not be unreasonably
withheld with respect to not more than one (1) sublease of not more than 5,000 rentable square feet of the Subleased Premises, and which otherwise may be withheld by Landlord for any reason whatsoever. With respect to any permitted subletting
or assignment (other than as described in Sections 16(b) and (c)), Subtenant shall pay to Landlord, in the event of a sublease, fifty percent (50%) of the excess of any rents and other consideration received by Subtenant over the rents payable
hereunder on a per square foot basis, or in the event of an assignment, all consideration received by Subtenant. 
  

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 Notwithstanding the preceding paragraph, but subject to Overlandlord’s written consent if required
pursuant to the Overlease, Subtenant may permit Y-Point BioAnalytical LLC and/or XTAL Biostructures, Inc. to occupy office space within the Subleased Premises and to share the use of the Subleased Premises with Subtenant for the uses permitted by
this Sublease so long as such entity shall be affiliated or have a bona fide business relationship with Subtenant (other than as space occupant), the space occupied by such entity is not separately demised and the aggregate amount of space
occupied by such entity or entities shall not exceed forty percent (40%) of the Subleased Premises, provided that no such shared use shall vest in either such entity any rights or interest in the Sublease or the Subleased Premises. 

13. CASUALTY AND CONDEMNATION. Notwithstanding anything to the contrary contained in this Sublease or in the Overlease, Subtenant shall not
have the right to terminate this Sublease as to all or any part of the Subleased Premises, or be entitled to an abatement of Yearly Rent, additional rent or any other item of rental, by reason of a casualty or condemnation affecting the Subleased
Premises unless Landlord is entitled to terminate the Overlease or is entitled to a corresponding abatement with respect to its corresponding obligation under the Overlease. If Landlord is entitled to terminate the Overlease for all or any portion
of the Subleased Premises by reason of casualty or condemnation, Subtenant may terminate this Sublease as to any corresponding part of the Subleased Premises by written notice to Landlord given at least five (5) business days prior to the
date(s) Landlord is required to give notice to Overlandlord of such termination under the terms of the Overlease. 
 14. CONSENTS. In
no event shall Landlord be liable for failure to give its consent or approval in any situation where consent or approval has been withheld or refused by Overlandlord, whether or not such withholding or refusal was proper. Notwithstanding the
foregoing, upon Subtenant’s request, Landlord shall use reasonable measures (as defined in Section 9), at no cost or expense to Landlord, to obtain Overlandlord’s consent or approval whenever required by the Overlease (unless Landlord
is entitled hereunder to withhold consent or approval even if Overlandlord shall have granted its consent or approval). 
 15. CONSENT OF
OVERLANDLORD. Subtenant and Landlord hereby acknowledge and agree that this Sublease is subject to and conditioned upon Landlord obtaining the written consent of Overlandlord to this Sublease and to the space sharing arrangement set forth in
Section 12 hereof (the “Consent”). Promptly following the execution and delivery of this Sublease by Landlord and Subtenant, Landlord shall submit this Sublease to Overlandlord. It is expressly understood and agreed that
notwithstanding anything to the contrary contained herein, the Term shall not commence, nor shall Subtenant take possession of the Subleased Premises or any part thereof, until the Consent has been obtained. Subtenant hereby agrees that it shall
cooperate in good faith with Landlord and shall comply with any reasonable requests made of Subtenant by Landlord or Overlandlord in the procurement of the Consent. Landlord shall make any payment to Overlandlord provided for by the Overlease in
order to obtain the Consent, but shall not be required to make any other payments to obtain the Consent or the consent of Overlandlord to any provision hereof. 

  

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Subtenant shall make any payment to Overlandlord provided for by the Overlease to obtain Overlandlord’s consent to the Initial Alterations (if such
consent is required by the Overlease). If the Consent shall not have been obtained within sixty (60) days after the date of this Sublease, either party may terminate this Sublease upon written notice, provided that the Consent shall not have
been obtained prior to the giving of such termination notice, and upon such termination this Sublease shall be of no further force and effect and Landlord shall return to Subtenant promptly all sums theretofore paid by Subtenant hereunder.

 16. DEFAULTS. Subtenant covenants and agrees that in the event that it shall default in the performance of any of the terms,
covenants and conditions of this Sublease or of the Overlease (after the giving of notice and an opportunity to cure as may be specified in Section 21.7 or elsewhere in the Overlease, but subject to the last sentence hereof) Landlord shall be
entitled to exercise any and all of the rights and remedies to which it is entitled by law, including, without limitation, the remedy of summary proceeding, and also any and all of the rights and remedies specifically provided for in the Overlease,
which are incorporated herein and made a part hereof, with the same force and effect as if herein specifically set forth in full, and that wherever in the Overlease rights and remedies are given to Overlandlord therein named, the same shall be
deemed to refer to Landlord herein. If Overlandlord shall give any notice of failure or default under the Overlease arising out of any failure by Subtenant to perform any of its obligations hereunder, then Landlord shall furnish Subtenant with a
copy thereof within three (3) business days after receipt thereof by Landlord. If the Overlease shall provide any grace or cure period for such failure or default, then the grace or cure period hereunder shall expire two (2) days prior to
the date on which the grace or cure period under the Overlease shall expire. 
 17. NOTICE. Whenever, by the terms of this Sublease,
any notice, demand, request, approval, consent or other communication (each of which shall be referred to as a “notice”) shall or may be given either to Landlord or to Subtenant, such notice shall be in writing and shall be sent by hand
delivery, reputable overnight courier, or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows (or to such other address or addresses as may from time to time hereafter be designated by Landlord or
Subtenant, as the case may be, by like notice): 
  

	 	(a)	If intended for Landlord, to: 

 Panacos Pharmaceuticals,
Inc. 
 134 Coolidge Avenue 
 Watertown, MA 02472 
 Attention: Peyton Marshall 
 and to: 
 Mintz, Levin,
Cohn, Ferris, Glovsky and Popeo, P.C. 
 One Financial Center 
 Boston, MA 02111 
 Attention: William Whelan, Esq. 
  

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	 	(b)	If intended for Subtenant, to: 

 Wolfe Laboratories
Incorporated 
 313 Pleasant
Street                                       
         (Prior to the Commencement Date) 
 Watertown, MA 02472 
 Attention: David Myers 
 Wolfe Laboratories
Incorporated 
 134 Coolidge
Avenue                                       
     (After Commencement Date) 
 Watertown, MA 02472 
 Attention: David Myers 
 and
to: 
 Sullivan & Worcester LLP 
 One Post Office Square 
 Boston, MA 02109 
 Attention: Paul C. Oakley, Esq. 
 All such
notices shall be deemed to have been served on the date of actual receipt (in the case of hand delivery), or one (1) business day after such notice shall have been deposited with a reputable overnight courier, or three (3) business days
after such notice shall have been deposited in the United States mails within the continental United States (in the case of mailing by registered or certified mail as aforesaid). 
 18. SURRENDER OF SUBLEASED PREMISES. Subtenant shall at the expiration or other termination of this Sublease remove all Subtenant’s property
from the Subleased Premises (including, without hereby limiting the generality of the foregoing, all signs and lettering affixed by Subtenant, either inside or outside the Subleased Premises) and deliver to Landlord all keys and locks security
passes to the Subleased Premises, and deliver the Subleased Premises to Landlord in the condition required by the Overlease upon the expiration or termination of the term thereof (except that Subtenant shall have no obligation to remove any
improvements or alterations existing in the Subleased Premises as of the Commencement Date), and decommissioned in accordance with all applicable federal, state and local laws and regulations. In the event of Subtenant’s failure to remove any
of Subtenant’s property from the Subleased Premises, Landlord and Overlandlord are hereby authorized, without liability to Subtenant for loss or damage thereto, and at the sole risk of Subtenant, to remove and store any of the property at
Subtenant’s expense, or to retain same under Landlord’s or Overlandlord’s control or to sell at 

  

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public or private sale, without notice any or all of the property not so removed and to apply the net proceeds of such sale to the payment of any sum due
hereunder, or to destroy such property. Without limiting the provisions of Section 22(c) of the Overlease as incorporated herein, Subtenant shall indemnify and hold Landlord harmless from and against all damages, costs and expenses suffered or
incurred by Landlord on account of Subtenant’s holding over in the Subleased Premises. 
 19. BROKER. Subtenant represents and
warrants to Landlord that Subtenant has not dealt, either directly or indirectly, with any broker in connection with this Sublease other than Grubb & Ellis and Richard, Barry, Joyce & Partners (collectively, the “Broker”)
and Landlord shall be solely responsible for all fees of the Broker. Subtenant shall indemnify Landlord from and against any and all loss, costs and expenses, including reasonable attorney’s fees, incurred by Landlord, resulting from a breach
of such representation and warranty. Landlord represents and warrants to Subtenant that Landlord has not dealt, either directly or indirectly, with any broker in connection with this Sublease other than the Broker, and Landlord shall indemnify
Subtenant from and against any and all loss, costs and expenses, including reasonable attorney’s fees, incurred by Subtenant resulting from a breach of such representation and warranty or Landlord’s agreement to pay the fees of the Broker.

 20. OPTION TO EXPAND. 
 (a) Provided that at the time of such exercise, (i) Subtenant is not in default hereunder and (ii) this Sublease is then in full force and effect, Subtenant shall have the right and option (the “Option”) to expand into a
portion of the first (1st) floor of the Building identified on Exhibit C attached hereto (the “Expansion Space”) as of a date (the “Expansion Date”) upon which Landlord substantially completes the work necessary to
separately demise the Expansion Space (the “Expansion Work”). Landlord shall use reasonable efforts, subject to force majeure and matters beyond Landlord’s reasonable control, to substantially complete the Expansion Work within sixty
(60) days after receipt of written notice from Subtenant exercising the Option. Landlord shall consult reasonably with Subtenant with respect to the cost and performance of the Expansion Work, and Subtenant shall reimburse Landlord, as
additional rent, for the out-of-pocket cost of the Expansion Work within fifteen (15) days of written demand therefor. Landlord and Subtenant agree that the Expansion Space consists of 3,859 rentable square feet of space. If Subtenant exercises
the Option, then upon the Expansion Date (A) the Expansion Space shall be automatically incorporated into the Subleased Premises upon all of the terms and conditions of this Sublease, (B) the Yearly Rent shall be increased by the product
of the rentable square footage of the Expansion Space multiplied by the per square foot Yearly Rent, (C) Subtenant’s Building Share and Subtenant’s Utility Share shall be modified to be 67.7% and (D) Subtenant shall thereafter
pay to Landlord, as part of the Utility Charges, 24.2% of the cost of electricity for the first floor of the Building. Subject to completion of the Expansion Work, Subtenant shall accept the Expansion Space in “as is” condition, without
representation or warranty, and Landlord shall have no obligation to perform any work therein, or to contribute to the cost of any work. 
  

 12 

 21. ADDITIONAL COVENANTS OF LANDLORD. 
 Landlord represents and covenants to Subtenant as follows: 
 A. Landlord has the right and lawful authority to enter into this Sublease (subject to Section 15) and perform Landlord’s obligations hereunder. 
 B. Exhibit A is a true, accurate and complete copy of the Overlease (excluding redacted terms and conditions not relevant to Subtenant) between
Landlord and Overlandlord with respect to the Land and Building known as 134 Coolidge Avenue, Watertown, MA and the Overlease is the complete lease agreement between Landlord and Overlandlord with respect to the Subleased Premises. 
 C. As of the date of this Sublease, the Overlease is in full force and effect, and to the best of Landlord’s actual knowledge (i) Landlord has
not received any notice of default under the Overlease, except for any defaults which Landlord has cured and Overland is no longer claiming to exist, and (ii) Landlord knows of no facts that exist which, with the passage of time and the giving
of notice by Overlandlord (if required by the Overlease) would become a default by Landlord under the Overlease. 
 D. Provided that
Subtenant is not in default (after the giving of notice and an opportunity to cure as may be required by this Sublease) under this Sublease, Landlord shall not amend or modify the Overlease if such amendment or modification would diminish the rights
or increase the obligations of Subtenant under this Sublease, or would adversely affect Subtenant’s ability to use the Sublease Premises for the purposes specified in Section 6 hereof. 
 E. Provided Subtenant is not otherwise in default (after the giving of notice and an opportunity to cure as may be required by this Sublease) under this
Sublease, Landlord agrees to pay when due all rents and other payments which become payable to Overlandlord under the Overlease and not to cause or permit any default under the Overlease; provided that the foregoing shall not prevent the reasonable
exercise by Landlord of its rights under the Overlease including, without limitation, Sections 8.4(b) and 21.4(b) of the Overlease. 
 F.
Except as may be permitted under the Overlease or otherwise on account of casualty or condemnation of the Premises or a default of Overlandlord, Landlord shall not exercise any right to terminate the Overlease or enter into any voluntary termination
of the Overlease. 
 G. Landlord shall deliver to Subtenant promptly a copy of any notice given by Overlandlord to Landlord pertaining to
this Sublease or the Subleased Premises. 
  

 13 

 H. If, under the Overlease, any right or remedy of Landlord or any duty or obligation of Overlandlord
which affects this Sublease or the Subleased Premises is subject to or conditioned upon Landlord’s making any demand upon Overlandlord or giving any notice or request to Overlandlord, then if Subtenant shall so request, Landlord, at
Subtenant’s expense, shall make such demand or give such notice or request (except with respect to any consent or approval which Landlord has withheld pursuant to this Sublease). 
 I. Landlord covenants that Subtenant may peaceably and quietly enjoy the Subleased Premises without disturbance by Landlord or any person claiming, by,
through or under Landlord, subject to the terms and conditions of this Sublease and the Overlease. 
 J. Subject to the provision of
Section 17.4 of the Overlease, Subtenant shall be permitted to install exterior signage on the Building reasonably comparable in terms of size and prominence to the existing signage of Landlord (and if the Subtenant is precluded by Overlandlord
or by law from installing such amount of signage, then Subtenant and Landlord each shall have exterior signage in proportion to their respective shares of the rentable area of the Building. 
 K. To Landlord’s actual knowledge, as of the date of this Sublease, the common areas of the Building, the Land and the Subleased Premises are in
material compliance with applicable laws, codes, and regulations (including those pertaining to handicapped accessibility and the environment). Landlord shall be responsible to correct, at its sole cost and expense, any violation of legal
requirements existing in the Subleased Premises as of the date of this Sublease caused by Landlord upon receiving written notice thereof from a governmental authority having jurisdiction, subject to Landlord’s reasonable right to contest any
such violation. 
 22. COUNTERPARTS, ETC. This Sublease may be executed in one or more counterparts, and by different parties hereto
on separate counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Subtenant shall promptly provide Landlord with a copy of all notices received by Subtenant from Overlandlord
and/or any party claiming under or through Subtenant with respect to this Sublease or the Subleased Premises. Subtenant represents and covenants to Landlord that Subtenant has the right and lawful authority to enter into this Sublease (subject to
Section 15) and perform Subtenant’s obligations hereunder. 
 Signatures on next page. 
  

 14 

 IN WITNESS WHEREOF, Landlord and Subtenant herein have duly executed this instrument on the day and year
first above written. 
  

					
	LANDLORD:	 	PANACOS PHARMACEUTICALS, INC.
			
		 	By:	 	 /s/ Peyton J. Marshall

		 	Name:	 	Peyton J. Marshall
		 	Title:	 	Executive Vice President and CFO
		
	SUBTENANT:	 	WOLFE LABORATORIES, INCORPORATED
			
		 	By:	 	 /s/ David Myers

		 	Name:	 	David Myers
		 	Title:	 	Chief Operating Officer

  

 15 

 EXHIBIT A 
 OVERLEASE 
 (see attached) 

 EXHIBIT B 
 SUBLEASED PREMISES 
 (see attached floor plan) 

 

 

 EXHIBIT C 
 EXPANSION SPACE 
 (see attached floor plan) 

 

 

 EXHIBIT D 
 INITIAL WORK 
 (see attached)Agreement between ABNH, Inc. and VISA International Service Association

 Exhibit 10.1 
 AGREEMENT 
 between 
 American Bank Note Holographics, Inc. (“ABNH”) 
 and 
 VISA International Service Association (“VISA”) 
 A. RECITALS 
  

	 	1.	ABNH has been an authorized supplier of holograms for VISA cards since 1984. 

  

	 	2.	VISA and ABNH (collectively hereinafter the “Parties”) signed a VISA International Holographic Magnetic Stripe Tape Manufacturing Approval Agreement dated April 8,
2005, inter alia obliging ABNH to manufacture holographic magnetic stripe tape (“HMS”) bearing the trade or service marks of VISA (“HMS Manufacturing Agreement”). 

  

	 	3.	Pursuant to the HMS Manufacturing Agreement, between September 2005 and March 2006, approximately 32 million VISA cards with HMS were manufactured and then issued worldwide,
and an additional approximately 68 million VISA cards with HMS were manufactured. 

  

	 	4.	VISA advised members to stop the production and issuance of any VISA cards with the HMS as of March 14, 2006, and recommended alternative design options.

  

	 	5.	On November 7, 2006, VISA terminated the HMS Manufacturing Agreement. 

  

	 	6.	In an effort to resolve claims of damages by both VISA and ABNH arising from the HMS Manufacturing Agreement, and with a view of preserving the business relationship between ABNH
and VISA, the parties have agreed to a mutual release of all claims arising from the HMS Manufacturing Agreement with the terms set forth below. 

 B. AGREEMENT: For good and valuable consideration and for the mutual covenants and conditions set forth herein, the Parties agree to the following (the “Agreement”): 
  

	 	1.	 Mutual Release: Except for the obligations specifically set forth in this Agreement, ABNH and VISA, for themselves and their respective agents, servants,
members, parent companies, subsidiaries, affiliates, officers, directors, stockholders, attorneys, insurers, representatives, partners (either limited or general), predecessors in interest, assigns, and successors do hereby 

	 	 
forever release, acquit, and fully discharge each other and each of their respective agents, servants, members, spouses, employees, parent companies,
subsidiaries, officers, directors, stockholders, attorneys, insurers, representatives, partners (either limited or general), predecessors in interest, assigns, and successors of and from any and all manner of action or actions, cause or causes of
action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liabilities, claims (including, but not limited to, claims for attorneys’ fees, costs, and sanctions), damages, demands, losses, costs, or expenses of any
nature, character, description, either direct or consequential, whether now known or unknown, vested or contingent, suspected or unsuspected, and whether or not concealed or hidden, which they may have now, may have had at any time heretofore, or
may have at any time hereafter, arising from, resulting from, or related to the HMS Manufacturing Agreement (the “Released Claims”). 

  

	 	2.	With respect to the releases contained in section B.1 above, the Parties expressly acknowledge and agree that they are general in nature and as broad as may be granted under
applicable law and that this Agreement fully and finally settles and forever resolves all of the Released Claims between ABNH and VISA, even those which are unknown, unanticipated or unsuspected, or those which may hereafter arise as the result of
the Parties’ alleged wrongful conduct prior to entry into this Agreement related in any way to the Released Claims. Upon the advice of legal counsel, the Parties hereby expressly waive all benefits and protections under Section 1542 of the
Civil Code of California, as well as under any other statutes, legal decisions or common law principles of similar effect to the extent that such benefits or protections may contravene the provisions of this Agreement. Section 1542 of the Civil
Code of California states: 

 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO
EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” 
  

	 	3.	As additional consideration for releases contained in B.1 above, the parties agree to the following: 

  

	 	a.	ABNH intends to continue to supply the Dove and the Mini Dove holograms to Visa-approved card manufacturers for as long as Visa continues to permit or require the Dove or Mini Dove
on VISA cards. 

  

	 	b.	 VISA intends to continue to authorize ABNH as a supplier of the Dove and Mini Dove for as long as VISA permits or requires the Dove or Mini Dove to be placed on
VISA cards to the extent that ABNH continues to 

	 	 
meet the specifications for the Dove or Mini Dove and provided ABNH continues to meet the requirements applicable to Visa-approved suppliers, as set forth in
Exhibit A to this Agreement 

  

	 	c.	VISA may at its sole discretion replace the Dove or Mini Dove with a different hologram or similar device, including a holographic magnetic stripe (“New Device”) on VISA
cards to be issued in the future. In the event that Visa decides to develop or use a New Device for VISA cards, VISA has the sole discretion to determine who will create the New Device which could be ABNH, VISA itself, or another entity. If ABNH
originates the New Device for VISA, ABNH shall supply a master plate to any additional supplier of VISA’s choosing at no charge so that both ABNH and any additional supplier can produce the New Device for VISA cards. If a supplier other than
ABNH originates the New Device, VISA intends to consider ABNH as a secondary supplier to produce the New Device for VISA cards, provided that ABNH has the ability to meet VISA’s specifications for the New Device. 

  

	 	d.	Section B.3.c above is subject to the execution of a commercially reasonable and mutually acceptable agreement between ABNH and VISA. 

  

	 	e.	ABNH and VISA will work together to develop a mutually agreeable method for the secure destruction of the VISA HMS materials currently in ABNH’s possession.

 C. General Provisions 
  

	 	1.	The Parties understand and agree that this Agreement is entered into in compromise of a dispute between the Parties, that the releases given herein are not to be construed as an
admission of liability on the part of either party, that the Parties deny any liability on their respective parts and that the Parties by entering into this Agreement do so merely to avoid costly and lengthy litigation and to preserve the existing
business relationship. 

  

	 	2.	The Parties represent and acknowledge that in executing this Agreement they did not rely and have not relied upon any representation or statement made by the other or by any of the
other’s agents, attorneys, or representatives with regard to the subject matter, basis or effect of this Agreement or otherwise, other than those specifically stated in this Agreement. 

  

	 	3.	 The Parties agree not to divulge the terms of this Agreement to any third parties, other than their respective attorneys or financial advisors (who in turn shall
not divulge its contents to others), without the express consent of the other party, except the parties agree that either party can file this agreement with the Securities and Exchange Commission if required under the applicable laws and
regulations. The Parties may divulge the contents of this Agreement if compelled by a valid subpoena or as otherwise required by law, but in any 

	 	 
case only after providing the other party with prior written notice as soon as practicable and with reasonable opportunity to contest such subpoena or other
requirement. 

  

	 	4.	Each party shall bear its own costs in connection with the negotiation and drafting of this Agreement. 

  

	 	5.	This Agreement shall be binding upon the Parties and upon their successors and assigns, and shall inure to the benefit of said parties and each of them and to their successors and
assigns. VISA and ABNH each warrants that it has not transferred to any person or entity any rights, causes of action or claims released in this Agreement. 

  

	 	6.	This Agreement sets forth the entire agreement between the Parties and fully supersedes any and all prior agreements or understandings, written or oral, between the Parties hereto
pertaining to the subject matter hereof. 

  

	 	7.	Neither of the Parties to this Agreement shall be deemed to be the author of this Agreement nor any specific term, provision or condition herein. Any ambiguities shall be resolved,
and the terms, provisions and conditions of this Agreement shall be construed and interpreted, without regard to which party may have suggested, drafted, revised or otherwise authored this Agreement or any of its specific terms, provisions or
conditions, and this Agreement shall be construed and interpreted as if drafted jointly by each of the Parties hereto. 

  

	 	8.	The Parties to this Agreement hereby confirm and admit that they have read and/or understand this Agreement and that they have been fully advised and represented by counsel with
respect to this Agreement and all negotiations giving rise to it, and that they have fully discussed this Agreement and all of its terms, consequences and ramifications with their respective counsel. 

  

	 	9.	This Agreement may not be changed, altered or modified except in writing signed by each party to this Agreement. 

  

	 	10.	This Agreement shall be interpreted in accordance with the plain meaning of its terms and not strictly for or against any of the Parties hereto. This Agreement shall be construed
and governed under the laws of the State of California. 

  

	 	11.	 The parties agree that any and all disputes, controversies or claims arising out of or relating in any way to this Agreement, including the formation,
interpretation, breach or termination thereof, including whether the claims asserted are arbitrable, will be referred to and finally determined by arbitration in accordance with the JAMS International Arbitration Rules. A demand for arbitration must
be made in writing and in accordance with the JAMS International Arbitration Rules, within the applicable statute of limitations period. The tribunal will consist of three arbitrators, selected in accordance with the JAMS International Arbitration
Rules. The place of arbitration will be 

	 	 
San Francisco County, California, United States. The language to be used in the arbitral proceedings will be English. Both Parties have the right to be
represented by counsel at arbitration. Each party is responsible for paying the fees of its own attorneys, subject to any remedies which may be provided by law. Judgment upon the award rendered by the arbitrators may be entered by any court having
jurisdiction thereof. 

  

	 	12.	This Agreement may be executed in counterparts, and all such executed counterparts together shall constitute one original Agreement which shall be binding on each party to this
Agreement. 

  

	 	13.	ABNH shall not make or cause to be made any oral or written statements which can reasonably be regarded as reflecting negatively on Visa or its products. Nothing contained herein,
however, shall prevent ABNH from producing documents, or providing truthful testimony, pursuant to a lawful subpoena or an order of a court of competent jurisdiction on any subject matter. 

  

	 	14.	VISA shall not make or cause to be made any oral or written statements which can reasonably be regarded as reflecting negatively on ABNH or its products. Nothing contained herein,
however, shall prevent VISA from producing documents, or providing truthful testimony, pursuant to a lawful subpoena or an order of a court of competent jurisdiction on any subject matter. 

  

	 	15.	Notices. Any notice required or permitted to be given under this Agreement shall be delivered personally, or with a reputable overnight carrier, addressed as follows:

  

			
	 If to ABNH:
	    	Mr. Kenneth Traub
		    	President and Chief Executive Officer
		    	American Bank Note Holographics, Inc.
		    	2 Applegate Drive
		    	Robbinsville, NJ 08691
		
	 If to VISA:
	    	Mr. John Elkins
		    	Executive Vice President
		    	Visa International
		    	P.O Box 8999
		    	San Francisco, CA 94128-8999

 or to such other address as a Party may from time to time specify in writing to the other Parties in accordance
with the terms hereof. 

					
	 Robbinsville, New Jersey; June 26, 2007
	 		 	 San Francisco, California; July 18, 2007

	Place, date	 		 	Place, date
			
	On behalf of ABNH:	 		 	On behalf of VISA:
			
	 /s/ Kenneth Traub
	 		 	 /s/ John Elkins

	Kenneth Traub	 		 	John Elkins

 EXHIBIT A 
  

	1.	Definitions. As used in this Exhibit, the following capitalized terms have the meanings given to them below: 

 1.1. “Confidential Information” means any data or information provided or made available by or on behalf of Visa, any Visa
Affiliate or any Visa member institution to Supplier and/or any of its Personnel in connection with this Agreement to the extent that such data or information: (a) is marked as confidential or proprietary; (b) is otherwise identified
orally or in writing as confidential or proprietary; or (c) should reasonably be understood to be confidential in nature. Without limiting the generality of the preceding sentence, the term “Confidential Information” includes without
limitation all terms and conditions of this Agreement. 
 1.2. “Full-Size Dove Hologram” mean a security hologram featuring
the image of a dove in flight with the nominal dimensions of 20.83mm” by 15.88mm with a corner radius of 1.599mm” 
 1.3.
“Mini-Dove Hologram” means a security hologram featuring the image of a dove in flight with the nominal dimensions of 16.16mm” by 12.31mm with a corner radius of 2.46mm” 
 1.4. “Visa Affiliate” means any Visa subsidiary or affiliate, including without limitation, Visa U.S.A. Inc., Visa Canada Association,
Visa Europe Ltd., Visa Europe Services, Inc., Visa International Service Association, Inovant LLC or a respective subsidiary or affiliate of any of the foregoing and each of their respective directors, officers, employees, agents and affiliates.

 1.5. “Intellectual Property Rights” means any and all of the following, arising in any jurisdiction in the world:
(a) patents, patent applications, continuations, continuations-in-part, divisionals, renewals and reissuances; (b) copyrights; (c) trademarks, service marks, trade names and trade dress; (d) trade secrets; (e) design rights;
(f) data rights; (g) mask work rights; (h) moral rights; (i) foreign equivalents of any of the foregoing; (j) any other intellectual property rights; (k) registrations of, and applications for, any of the foregoing; and
(l) the right to sue for any present and/or past violation, infringement or misappropriation of any of the foregoing. 
 1.6.
“Key Controls” means the operational and security standards adopted by Visa, as such standards may be amended by Visa from time to time. Key Controls are Confidential Information. 
 1.7. “Personnel” means a party’s employees, agents, consultants, contractors and subcontractors, together with the personnel of any
of the foregoing. 

 1.8. “Services” means the services performed by or on behalf of Supplier under this
Agreement. 
 1.9. “Supplier Affiliate” means any entity that now exists or that is hereafter created that directly or
indirectly controls, is controlled by or is under common control with Supplier, where “control” refers to the possession, directly or indirectly, of the power to direct or cause the direction of management or policies of an entity, whether
through beneficial ownership of securities or other equity interests, by contract or otherwise. 
 1.10. “Visa Approved Card
Manufacturer’ means a manufacturer of payment cards that has been authorized by Visa to produce Visa-branded payment cards. 
 1.11.
“Visa Dove Holograms” means the Full-Size Dove Hologram and Mini-Dove Hologram security holograms featuring the image of a dove in flight. 
  

	2.	Production Samples of Visa Dove Holograms. Upon Visa’s request, Supplier will provide to Visa randomly selected samples of an amount of 1000 each of Full-Size Dove
Holograms and Mini-Dove Holograms taken from a production run as specified by Visa. Visa at its discretion shall review the sample Full-Size Dove Holograms and Mini-Dove Holograms for the purposes of quality control inspection.

  

	3.	Plant Security Standards. The plant security standards contained in the Visa International Security Validation Requirements for Card Vendors manual (“Manual”) set
the minimum security and integrity processing standards to be maintained by Supplier as applicable during the term of this Agreement. Supplier warrants and represents that during the term of this Agreement it will, at a minimum, maintain the
security controls, production standards, and transportation standards set forth in said Manual as applicable, the contents of which are incorporated by reference herein, unless and then only to the extent excused by Visa in a written waiver.

  

	4.	Security Inspections. Supplier authorizes Visa to designate a representative(s) to inspect Supplier’s facilities where Visa Dove Holograms are manufactured and/or stored
during normal business hours, with advance notice in written form, to ensure, among other things, that Supplier is complying with the Manual as applicable, transportation requirements, background investigation checks, and standards of professional
conduct as set forth herein. Supplier shall cooperate fully with such representative(s) in the conduct of such inspection. The inspections shall be carried out in compliance with Supplier’s security rules. Visa shall provide Supplier with the
name and the passport number/ID-document-number of the respective representative in advance. On Supplier’s request, any inspections according to this Section shall be subject to the prior execution of a Non Disclosure Agreement between Supplier
and Visa. 

	5.	Audit Rights. Supplier shall allow Visa or its designated agent access with advance notice in written during normal business hours during the term of this Agreement and for
six (6) months thereafter to perform audits of Supplier’s facilities, operations and records relating to Services to determine whether Supplier is in compliance with this Agreement, and adherence to Key Controls, as described in paragraph
6 below. Supplier shall also provide Visa or its designated agent during normal business hours with books, records and supporting documentation adequate to evaluate Supplier’s performance. The audits shall be carried out in compliance with
Supplier’s security rules. Visa shall provide Supplier with the name and the passport number/ID-document-number of the respective persons who will perform audits in advance. On Supplier’s request, any audits according to this Section shall
be subject to prior conclusion of a Non Disclosure Agreement between Supplier and the respective person. 

  

	6.	Key Controls. When handling Visa information, Supplier will comply with Visa’s Key Controls. 

  

	7.	Insurance. The coverage required to be procured and maintained by Supplier under this provision includes the following, together with any additional coverage that may be
required under any other exhibit to this Agreement: 

  

	 	7.1.1.	Statutory Workers Compensation, as required by applicable law; 

  

	 	7.1.2.	Employment Practices Liability, with a minimum limit of one million dollars ($1,000,000) or other currency equivalent; 

  

	 	7.1.3.	Commercial General Liability, including Advertising Injury, Personal Injury, Products Liability, Completed Operations Liability, and Contractual Liability, on an occurrence basis,
with the following minimum limits for bodily injury and property damage: one million dollars ($1,000,000) per occurrence, and two million dollars ($2,000,000) annual aggregate or equivalent in other currency; such coverage should include worldwide
territory and respond to claims brought in the United States of America with an umbrella policy in the amount of twenty-five million dollars ($25,000,000); 

  

	 	7.1.4.	Commercial Automobile Insurance, including owned, leased, hired or non-owned vehicles with minimum limits of one million dollars ($1,000,000) each accident or equivalent in other
currency for bodily injury and property damage; 

  

	 	7.1.5.	Insurance covering fraud, theft, forgery, alteration, mysterious disappearance and destruction, with a minimum limit of one million dollars ($1,000,000) each loss and annual
aggregate; 

	 	7.1.6.	Professional Liability for negligent acts, errors or omissions in connection with the Services provided under this Agreement, with a minimum limit of one million dollars
($1,000,000) each claim and annual aggregate (or equivalent in other currency); such coverage should include worldwide territory and respond to claims brought in the United States of America; and 

  

	 	7.1.7.	Such other coverage, if any, as Supplier may be required to maintain pursuant to applicable laws and regulations. 

  

	 	7.2.	Supplier shall cause Visa and the Visa Affiliates to be included as Additional Insureds (or Principals) under the Commercial General Liability coverage described in 7.1.3 above for
any claims, liability and losses actually or allegedly arising out of or in connection with the Services. 

  

	 	7.3.	Certificates. Supplier shall furnish one or more certificates, satisfactory to Visa, from each insurer evidencing that the coverage required by this Section is in full force
and effect in compliance with the provisions of this Section. Each such certificate shall state the relevant policy number(s), date(s) of expiration and limits of coverage, and shall further state that such coverage shall not be canceled or
materially changed until the expiration of at least thirty (30) days after written notice of such cancellation or change has been received by Visa. Supplier shall cause such certificates to be sent such address as may be specified by Visa from
time to time. 

  

	 	7.4.	Subcontracting. If Supplier subcontracts any Services in accordance with the provisions of this Agreement, Supplier shall cause each applicable Subcontractor to procure and
maintain the insurance coverage required by this Section 7, fully in accordance with the provisions of this Section. 

  

	 	7.5.	Waiver of Subrogation. Supplier agrees to waive any right of subrogation against Visa and the Visa Affiliates for any death or injury to Supplier’s Personnel, arising
out of or in connection with Supplier’s performance of the Services. Further, Supplier shall ensure that the Workers’ Compensation/Employers’ Liability insurers providing the coverage required by this Section 7.1.1 and 7.1.2,
agree to waive subrogation against Visa and the Visa Affiliates, for any claims arising out of or in connection with Supplier’s performance of the Services. 

  

	8.	Return or Destruction. Upon the earliest of: (a) the termination or expiration of this Agreement; or (b) Visa’s demand, Supplier shall promptly return to Visa
all Visa property and all Confidential Information. Alternatively, if so directed by Visa, Supplier shall destroy all Confidential Information, and all copies thereof, in Supplier’s possession or control, and shall provide a certificate signed
by an officer of Supplier that certifies such destruction in detail acceptable to Visa. 

	9.	Revocation. Visa may temporarily or permanently revoke Supplier’s right to manufacture Visa Dove Holograms for any or all Visa Approved Card Manufacturers upon the
occurrence of any of the following: 

  

	 	a.	Supplier’s actual merger, consolidation, change of control or financial condition which creates, in Visa’s opinion, unreasonable potential for damage or financial loss to
Visa or its Visa Approved Card Manufacturers if the manufacture of Visa Dove Holograms, possession of Visa Dove Holograms, and/or possession of materials necessary to manufacture Visa Dove Holograms were to continue. 

  

	 	b.	Supplier fails in Visa’s opinion, to maintain sufficient quality control standards to enable Supplier to comply with the Hologram Specifications attached as exhibit B.

  

	 	c.	Supplier does not maintain security and audit integrity processing controls consistent with the Manual as applicable or if Visa agrees to alternative controls and procedures,
Supplier does not maintain security controls consistent with such alternatives controls and procedures. Supplier is unable to maintain in force the insurance coverage provided for in this Agreement. 

  

	 	d.	VISA replaces the Dove or Mini Dove with a different hologram or similar device, including a holographic magnetic stripe on VISA cards to be issued in the future.

  

	10.	Effect of Termination or De-Approval. Upon expiration or any termination of this Agreement: (a) Supplier shall return the Plates and all Confidential Information in
accordance with the section 8 to Visa and an officer of Supplier shall certify in writing to Visa that Supplier has destroyed all Visa Dove Holograms that are remaining in Supplier’s inventory. 

 

 
  

	1.	Specifications for Visa Dove Holographic Foil 

  

	 	1.1.	Project Title: 

  

	 	1.1.1.	Visa Dove Holograms (Full Size and Mini-Dove) 

  

	 	1.2.	Product Numbers 

  

	 	1.2.1.	3082 Full Size Silver 

	 	1.2.2.	8344 Full Size Gold 

	 	1.2.3.	3756 Mini Silver 

	 	1.2.4.	3757 Mini Gold 

  

	 	1.3.	Holographic Image Description: 

  

	 	1.3.1.	The holographic image consists of a “Dove in flight” 

  

	 	1.4.	Product Description 

  

	 	1.4.1.	Fully metalized holographic silver or gold foil (as specified) with hot melt adhesive suitable for application to PVC, PET-G, PET, ISO or approved substrates or payment compliant
cards using standard and approved methods and application equipment used in the card industry. 

  

	 	1.5.	Format for Delivery 

  

	 	1.5.1.	Core 

  

	 	1.5.1.1.	Core ID is nominally 3” 

	 	1.5.1.2.	Core width to be nominally 1.5” for Full and 1.3” for Mini Rolls to be provided in label copy position as required by Visa approved card manufacturers:

  

	 	1.5.2.	Slitting 

  

	 	1.5.2.1.	Width to be 1.375” for Full and 1.199 for Mini +/- 0.015” 

	 	1.5.2.2.	Telescoping should not exceed .020” from either side of the reel 

  

	 	1.5.3.	Registration: 

  

	 	1.5.3.1.	Each image shall include a diffractive registration block which acts as a target for application equipment. 

  

	 	1.5.4.	Roll Quantity and Numbering 

  

	 	1.5.4.1.	Each roll shall be a minimum 25,000 images 

	 	1.5.4.2.	Holographic Images are sequentially numbered for inventory purposes for the end user (card manufacturer). 

	 	1.5.4.3.	Each roll shall be uniquely identified by manufacturer lot number and roll number. 

  

 

 

 

 
  

	 	1.5.5.	Splices 

  

	 	1.5.5.1.	Maximum of 3 per roll 

	 	1.5.5.2.	Splices will be made as butt splices 

  

	 	1.6.	Inspection Methods and Criteria 

  

	 	1.6.1.	All visual inspections are to be done with the naked eye 

  

	 	1.6.2.	All viewing will take place with direct overhead lighting under normal white fluorescent lighting conditions 550-750 lux or equivalent 

  

	 	1.6.3.	Visa Quality Assurance Standard Chart is to be used by the card manufacturers as guidance for acceptance of holographic image imperfections such as spots, mottle, and haze

  

	 	1.6.4.	Repeating or continuous imperfections which are apparent with the naked eye are not acceptable 

  

	 	1.6.5.	When properly applied to the card, the Visa hologram cannot be lifted intact off the card without destroying the hologram. A tape or other similar industry test shall be used for
testing adhesion such that the Visa hologram cannot be removed or lifted off the card and reapplied to another subsequent card. 

  

	 	1.6.6.	The configuration and adhesive qualities of the Visa dove hologram must be able to withstand exposure to ambient temperatures and conditions throughout the world.

  

	 	1.6.7.	The configuration and adhesive qualities of the Visa dove hologram must be able to sustain prolonged contact with the materials normally used to store Visa cards, such a vinyl
polyethylene and paper. 

  

	 	1.6.8.	The hologram shall be resistant to wear and tear as will occur during normal use of a payment card. 

			
	VISA QA STANDARD CHART	  	

		  	

 

 
 GENERAL RULES 
  

			
	Repeating or continuous defects which are apparent at first glance are generally unacceptable. Single occurrences not more than one in hundred feet are acceptable. Defects apparent only upon
close scrutiny are generally acceptable.	  	Revision: June 13, 2007

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