Document:

EXHIBIT 10.74

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CONSENT, TRANSFER, ASSUMPTION AND AMENDMENT AGREEMENT

This Consent, Transfer, Assumption and Amendment Agreement (the “Loan Transfer Consent” or this “Agreement”), is made and entered into as of August 12, 2013, by and among (i) XOMA Ireland Limited, a company with limited liability incorporated organized and existing under the laws of Ireland (registered number 307875), having its registered head office at 26 Upper Pembroke Street, Dublin 2, Ireland (“XOMA Ireland”), (ii) XOMA (US) LLC, a limited liability company organized and existing under the laws of Delaware, having its registered office at 2910 Seventh Street, Berkeley, California 94710, USA (“XOMA US”), and (iii) Les Laboratoires Servier, a corporation organized and existing under the laws of France, 50 rue Carnot, 92284 Suresnes, France (“SERVIER”).

WITNESSETH:

WHEREAS, XOMA Ireland and SERVIER entered into a Loan Agreement dated December 30, 2010 (the “Loan Agreement”), pursuant to which SERVIER made the Advance to XOMA Ireland;

WHEREAS, in connection with and pursuant to the Loan Agreement, the following documents were delivered and filed:

		Ø	XOMA Ireland issued a Promissory Note to SERVIER on January 13, 2011 with a principal amount equal to the Advance (the “Original Note”);

		Ø	XOMA Ireland and SERVIER entered into a Fixed Charge (the “Fixed Equitable Charge”) dated January 13, 2011 pursuant to which XOMA Ireland charged certain contractual and intellectual property rights (the “Collateral”) related to its proprietary IL-1β antibody designated gevokizumab (formerly known as XOMA 052 and/or S-78989, “GEVO”) as a security for the benefit of SERVIER to guarantee the repayment of the amounts due to SERVIER pursuant to the Loan Agreement;

		Ø	the Fixed Equitable Charge was registered with the Irish Companies Registry on January 25, 2011;

		Ø	XOMA Ltd., XOMA Ireland’s parent company organized under the laws of Bermuda, issued a Guarantee to SERVIER on December 30, 2010, to guarantee the payment by XOMA Ireland to SERVIER of all amounts due under the Loan Agreement (the “XOMA Ltd. Guarantee”); and

		Ø	XOMA US issued a Guarantee to SERVIER on December 30, 2010, to guarantee the payment by XOMA Ireland to SERVIER of all amounts due under the Loan Agreement (the “XOMA US Guarantee”).

WHEREAS, XOMA Ireland has entered into an Asset Transfer Agreement (the “Asset Transfer Agreement”) with its Affiliate, XOMA US, pursuant to which they have, subject to the satisfaction of certain conditions, agreed to (i) the transfer by XOMA Ireland to XOMA US of various assets relating to GEVO, including the Collateral and (ii) the assumption by XOMA US of certain liabilities of XOMA Ireland, including under the Loan Agreement and the Loan Documents (collectively, the “GEVO Asset Transfer”), the completion of which in accordance with the terms of the Asset Transfer Agreement is expected to occur on or about August 12, 2013 or at such other date as may be notified in writing at least 5 days prior to the occurrence thereof, by XOMA US to SERVIER (the “Transfer Completion Date”);

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WHEREAS, XOMA Ireland wishes to obtain SERVIER’s consent to the transfer of the Loan Agreement to XOMA US in accordance with Section 9.2 thereof, to the termination and release of the Fixed Equitable Charge and corresponding registration with the Irish Companies Registry and to various other matters relating to the Loan Agreement that are necessary or useful to enable XOMA Ireland to complete the GEVO Asset Transfer;

WHEREAS, SERVIER is willing to provide such consents subject to (a) XOMA US undertaking to assume and perform all of XOMA Ireland’s obligations under the Loan Agreement in accordance with and as modified by the terms hereof, and (b) the satisfaction of the Conditions (as defined in Section 3.1.1 below); and

WHEREAS, XOMA US is willing to assume XOMA Ireland’s obligations under the Loan Agreement and to deliver to SERVIER and file such documents.

NOW, THEREFORE, in consideration of the covenants and conditions set forth below, the Parties hereto, intending to be legally bound, hereby agree to the following:

ARTICLE 1 – TRANSFER OF LOAN AGREEMENT

	1.1	Subject to Section 3.1, SERVIER hereby irrevocably consents to the transfer of all of XOMA Ireland’s rights and obligations under the Loan Agreement to XOMA US.

	1.2	Effective as of the Transfer Completion Date, all references to XOMA Ireland in the Loan Agreement shall be deemed to refer to XOMA US and XOMA Ireland shall have no further obligations under the Loan Agreement.

	1.3	XOMA US hereby irrevocably agrees effective as of the Transfer Completion Date to assume all of XOMA Ireland’s obligations under the Loan Agreement and shall perform and discharge all such obligations in accordance with the terms thereof.

	1.4	The representations and warranties contained in Article 5 of the Loan Agreement, shall be true and correct as of the Transfer Completion Date, provided that: (a) each reference in such provisions to XOMA Ireland shall be deemed to refer to XOMA US, and (b) for purposes of Sections 5.1 and 5.4 of the Loan Agreement, each representation and warranty by XOMA Ireland as an Irish limited company shall mean and refer to XOMA US, a Delaware limited liability company, with all such representations and warranties meaning and referring to XOMA US as such.

ARTICLE 2 – AMENDMENT

	2.1	Termination and Replacement of the Fixed Equitable Charge.

	2.1.1	Subject to Section 3.1, XOMA Ireland, SERVIER and XOMA US agree that the Fixed Equitable Charge shall be cancelled and released effective as of the Transfer Completion Date.

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	2.1.2	Subject to Section 3.1, SERVIER shall at the latest on the Transfer Completion Date deliver to XOMA US a Deed of Release in substantially the form attached as Exhibit 3 hereto dated as of the date hereof giving effect to SERVIER’s cancellation and release of the Fixed Equitable Charge.

	2.1.3	The definition “Fixed Equitable Charge” in Section 1.2 of the Loan Agreement shall be deleted in its entirety and replaced by the definition of “Security Agreement” set out in Section 3.1 hereof.  All references to the term “Fixed Equitable Charge” in the Loan Agreement shall thereinafter be understood as referring to the Security Agreement.

	2.2	Cancellation and Replacement of the Note.

	2.2.1	Subject to Section 3.1, the Original Note shall be cancelled and of no further effect and validity effective as of the Transfer Completion Date, and replaced by the XOMA US Note (as defined in Section 3.1 hereof) in accordance with terms hereof.  Upon receipt of the XOMA US Note, SERVIER shall deliver to XOMA Ireland the cancelled Original Note.

	2.2.2	All references to the term “Note” in the Loan Agreement shall thereinafter refer to the XOMA US Note.

	2.3	Cancellation of the XOMA US Guarantee to SERVIER.

	2.3.1	Subject to Section 3.1, the XOMA US Guarantee shall be terminated and of no further effect effective as of the Transfer Completion Date.

	2.4	Tax Cooperation.

	2.4.1	Effective as of the Transfer Completion Date, the first three sentences of Section 3.10(a) of the Loan Agreement shall be deleted in their entirety and replaced by the following text:

“(a)            The Parties agree to cooperate with one another and use reasonable efforts to reduce or eliminate tax withholding or similar obligations in respect of payments of interest and other Indebtedness made by XOMA US to Servier under this Loan Agreement. XOMA US agrees that under the current French/United States Tax Treaty, payments made by XOMA US to Servier under this Loan Agreement are not subject to withholding tax in the United States so long as Servier provides XOMA US a valid Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding (“Form W-8BEN”) evidencing its eligibility for a reduced withholding tax rate of 0% under the current French/United States Tax Treaty. Servier shall provide to XOMA US, who shall complete any required portions of, any tax forms that may be reasonably necessary in order for XOMA US not to withhold tax or to withhold tax at a reduced rate under an applicable bilateral income tax treaty, including a valid Form W-8BEN (“Tax Forms”).”

The remainder of Section 3.10(a) shall remain unchanged, other than the replacement of XOMA Ireland by XOMA US.

 

	2.4.2	Effective as of the Transfer Completion Date, Section 3.10(b) of the Loan Agreement shall be deleted in its entirety and replaced by the following text:

 

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“(b)            If despite Servier’s submission of the Tax Forms, XOMA US is required by US tax laws to deduct any taxes from any amount payable under this Loan Agreement or any Note, (i) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section 3.10(b)), Servier receives an amount equal to the sum it would have received had no such deductions been made, (ii) XOMA US shall make such deductions, (iii) XOMA US shall pay the full amount deducted to the relevant governmental authority in accordance with applicable law and (iv) XOMA US shall furnish to Servier evidence of such payment as may be reasonably acceptable to Servier; provided, however, that XOMA US’ obligations under this Section 3.10(b) shall not be applicable to the extent that (x) the withholding results from any modification in Servier’s tax status or (y) Servier is able to obtain a reimbursement of or credit for the withheld amount.”

	2.5	Effective as of the Transfer Completion Date, Section 9.4 (Notices) of the Loan Agreement shall be amended by including the following as XOMA US’ address and designated contact person for notices:

XOMA (US) LLC

2910 Seventh Street

Berkeley, CA 94710

United States

Attention: Chief Financial Officer

FAX: 510-649-0315

	2.6	Effective as of the Transfer Completion Date, all references to the Republic of Ireland in the Loan Agreement shall be amended to refer to the State of Delaware.

	2.7	Effective as of the Transfer Completion Date, all references in the Loan Agreement toBelgium law and Belgium choice of law shall be changed to New York law and NewYork choice of law; and Sections 9.6 (Governing Law) and 9.7 (Binding Arbitration) of the Loan Agreement shall be deleted and replaced by Section 9 of the Security Agreement, which shall be incorporated by reference to the Loan Agreement and apply thereto mutatis mutandis.

	2.8	Effective as of the Transfer Completion Date, the definition of “Collateral” set forth in Section 1.1 of the Loan Agreement shall be deleted in its entirety and replaced by the following text:

““Collateral” shall have the meaning ascribed thereto in the Security Agreement.”

 

ARTICLE 3 – CONDITIONS TO EFFECTIVENESS – RELEASE

	3.1	Conditions to Effectiveness.

	3.1.1	XOMA Ireland and XOMA US acknowledge and agree that, pursuant to the terms of the Loan Agreement, SERVIER’s consent is required prior to any transfer of the Loan Agreement, and that SERVIER’s consent given in this Loan Transfer Consent and the amendments in Article 2 hereof are subject to the prior satisfaction of the Conditions. Upon the satisfaction of the Conditions, SERVIER undertakes to deliver to XOMA Ireland and XOMA US a written confirmation of the Conditions having been satisfied, in substantially the form set out in Exhibit 4 hereto.

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For the purposes hereof “Conditions” shall mean (a) the completion of the GEVO Asset Transfer as evidenced by the delivery by XOMA US to SERVIER of a written confirmation thereof, and (b) the delivery, at the latest on the Transfer Completion Date, to SERVIER of (i) a replacement promissory note by XOMA US in favor of SERVIER in substantially the form set out in Exhibit 2 hereto (the “XOMA US Note”), and (ii) a security agreement in substantially the form set out in Exhibit 1 hereto pursuant to which XOMA US will grant a security interest in the Collateral to SERVIER to secure all of the obligations of XOMA US under the Loan Agreement, the Loan Documents and the XOMA US Note (the “Security Agreement”).

	3.1.2	Subject to the satisfaction of the Conditions, SERVIER acknowledges and agrees that neither the consummation of the Asset Transfer Agreement and the GEVO Asset Transfer nor the transfer of the Collateral to XOMA US in accordance with the terms and conditions of the Asset Transfer Agreement and this Loan Transfer Consent shall constitute a breach or default under the Loan Agreement.

	3.2	Release. Subject to the satisfaction of the Conditions, SERVIER consequently releases XOMA Ireland from any and all obligations towards SERVIER under the Loan Agreement as of the Transfer Completion Date. Similarly, subject to the satisfaction of the Conditions, XOMA Ireland consequently releases SERVIER from any and all obligations towards XOMA Ireland under the Loan Agreement as of the Transfer Completion Date.

 

ARTICLE 4 – POST-COMPLETION COVENANTS

	4.1	Reimbursement of Costs. XOMA US covenants to pay or reimburse the reasonable fees and out-of-pocket expenses of outside counsel incurred by SERVIER in connection with the preparation, execution and delivery of this Loan Transfer Consent and the related agreements.

	4.2	Patent Transfer Registration. Following the Transfer Completion Date (within three (3) months for European Union countries and within six (6) months for all other countries listed below), XOMA US (or an appropriate affiliate) and XOMA Ireland shall carry out all formalities that are necessary or helpful to register with the relevant regional or national patent offices in the countries / regions listed below the transfer to XOMA US of the rights in the patent applications or patents, as applicable, that are transferred to XOMA US in connection with the transactions contemplated by the Asset Transfer Agreement. XOMA US and XOMA Ireland shall thereafter use their respective best efforts to have this transfer registered promptly after the filing of such transfer request.

The list of countries / regions is: European Union, China, Russia, Indonesia, Turkey, South Korea, South Africa, Australia and Canada. There are, among the patent applications and patents relating to GEVO to be transferred to XOMA US in connection with the GEVO Asset Transfer, no patent applications or patents in Egypt.

XOMA US and XOMA Ireland’s obligation under this Section 4.2 shall include registering any previous transfer of the rights in the patent applications or patents, as applicable, that are transferred to XOMA US in connection with the transactions contemplated by the Asset Transfer Agreement if and where such supplementary registration is required for the purpose of registering the transfer to XOMA US of such rights.

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Servier shall reimburse all reasonable out-of-pocket expenses, including registration fees, translation fees and outside patent and legal counsel fees, incurred by XOMA US (or an appropriate affiliate) and/or XOMA Ireland in connection with these patent right transfer registrations.

ARTICLE 5 – MISCELLANEOUS

	5.1	Further Assurances. XOMA Ireland, XOMA US and SERVIER hereby covenant that each will, at any time and from time to time upon request by any other, and without the assumption of any additional liability thereby, execute and deliver such further documents and do such further acts as such party may reasonably request in order to fully effect the purpose of this Loan Transfer Consent

	5.2	Counterparts. This Loan Transfer Consent may be executed in any number of counterparts, each of which shall be deemed an original, but all of which when taken together shall constitute but one and the same agreement.

	5.3	Governing Law - Arbitration. This Loan Transfer Consent shall be governed by, and construed and enforced in accordance with, the laws of the State of New York, excluding conflict of laws principles that would cause the application of laws of any other jurisdiction.  The provisions of Section 9 of the Security Agreement are hereby incorporated by reference and this Agreement and the parties hereto shall otherwise be subject to all of the terms and conditions of Section 9 of the Security Agreement, mutatis mutandis.

	5.4	All capitalized terms used but not defined in this Loan Transfer Consent shall have the meanings ascribed thereto in the Loan Agreement.

	5.5	Except as explicitly amended hereby, the Loan Agreement remains in full force and effect.

IN WITNESS WHEREOF, the parties hereto have executed or caused this Loan Transfer Consent to be executed as of the date first above written.

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XOMA Ireland Limited

		
XOMA (US) LLC

	 		 
	
By: /s/ Alan Kane

		
By: /s/ James R. Neal

	
Name: Alan Kane

		
Name: James R. Neal

	
Title: Director

		
Title: VP, Business Development

	 		 
	
LES LABORATOIRES SERVIER

		 
	
By: /s/ Marie Christine Larcher

		 
	
Name: Marie Christine Larcher

		 
	
Title: Legal Affairs Director

		 

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EXHIBIT 1

SECURITY AGREEMENT

This Security Agreement (this “Agreement”) is made and entered into as of _____, 2013 by and between XOMA (US) LLC, a Delaware limited liability company (“Debtor”), and LES LABORATOIRES SERVIER, a corporation organized and existing under the laws of France (the “Secured Party”).

Recitals

Whereas, XOMA Ireland Limited (“XOMA Ireland”) and Secured Party are parties to that certain Amended and Restated Collaboration and License Agreement, dated February 14, 2012 (the “Collaboration and License Agreement”), a Loan Agreement, dated December 30, 2010 (as amended from time to time, the “Loan Agreement”), a Promissory Note, dated January 13, 2011, issued by XOMA Ireland to Secured Party (the “Original Note”), and a Fixed Charge, dated January 13, 2011, granted by XOMA Ireland in favor of Secured Party (the “Ireland Fixed Charge”).

Whereas, pursuant to that certain Asset Transfer Agreement, dated of even date herewith, by and between XOMA Ireland and Debtor and that certain Consent, Transfer, Assumption and Amendment Agreement, dated of even date herewith, by and among XOMA Ireland, the Secured Party and Debtor (the “Assumption Agreement”) (collectively, the “Asset Transfer Documents”), XOMA Ireland intends to transfer certain assets, including, without limitation, certain assets relating to the Collaboration and License Agreement, and certain rights and obligations under the Loan Agreement to Debtor, as further set forth in the Asset Transfer Documents.

Whereas, pursuant to the Assumption Agreement, Debtor will assume all of the obligations and rights of XOMA Ireland under the Loan Agreement, which the Secured Party has consented to, and the Original Note and Ireland Fixed Charge will be cancelled and released by the Secured Party upon the satisfaction of the conditions contained in the Assumption Agreement.

 

Whereas, the parties intend that a new Promissory Note, dated of even date herewith, will be issued by Debtor to Secured Party (as amended from time to time, the “XOMA US Promissory Note” and, collectively with the Loan Agreement, following the execution of the Assumption Agreement, the “Secured Agreements”), and Debtor and Secured Party wish to secure performance and payment of all obligations of Debtor to Secured Party under the Loan Agreement and the XOMA US Promissory Note (the “Obligations”) with liens on certain assets as described herein, in favor of Secured Party.  All terms used without definition in this Agreement shall have the meaning assigned to them in the Asset Transfer Documents and the Secured Agreements.  All terms used without definition in this Agreement, the Asset Transfer Documents, or the Secured Agreements shall have the meaning assigned to them in the UCC.

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Now, Therefore, Debtor and the Secured Party agree as follows:

1.            Grant of Security Interest.  To secure all of the Obligations and the performance by Debtor of its obligations under the Secured Agreements, Debtor grants to the Secured Party a security interest in the property described in Exhibit A (the “Collateral”).

 

2.            Debtor’s Representations and Warranties.  Debtor represents and warrants as follows:

 

(a)            Authorization.  Debtor has authority and has obtained all approvals and consents necessary to enter into this Agreement, and Debtor’s execution, delivery and performance of this Agreement will not violate or conflict with the terms of Debtor’s Limited Liability Company Agreement or other charter document, or any law, agreement, or other instrument or writing to which Debtor is party or by which is it bound.

 

(b)            Title.  The Collateral is owned by Debtor and is free and clear of all liens, encumbrances and other security interests.

 

(c)            Solvency, Payment of Debts.  (a) Debtor is able to pay its debts and other liabilities, contingent obligations and other commitments as they mature in the ordinary course of business, (b) Debtor does not intend to, and does not believe that it will, incur debts or liabilities beyond its ability to pay such debts and liabilities as they mature in the ordinary course of business, (c) Debtor is not engaged in a business or a transaction, and is not about to engage in a business or a transaction, for which its property would constitute unreasonably small capital under applicable laws and after giving due consideration to the prevailing practice in the industry in which it is engaged or is to engage, (d) the fair value of the property of Debtor is greater than the total amount of liabilities, including contingent liabilities, of Debtor and (e) the present fair salable value of the property of Debtor is not less than the amount that will be required to pay the probable liability of Debtor on its debts as they become absolute and matured.  In computing the amount of contingent liabilities at any time, it is intended that such liabilities will be computed at the amount which, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

 

(d)            Further Representations.  Debtor further represents, warrants, and covenants that (i) Debtor is not in default under any agreement under which Debtor owes any money, or any agreement, the violation or termination of which could have a material adverse effect on Debtor; (ii) the information provided to Secured Party on or prior to the date of this Agreement is true and correct in all material respects; (iii) Debtor is in compliance with all laws and orders applicable to it; (iv) Debtor is not a party to any litigation or is the subject of any government investigation, and Debtor has no knowledge of any pending litigation or investigation or the existence of circumstances that reasonably could be expected to give rise to such litigation or investigation; (v) Debtor’s principal place of business is located at the address specified in this Agreement; (vi) Debtor is a limited liability company organized under the laws of the State of Delaware; (vii) Debtor has not granted any security interest in the Collateral; (vii) each of the representations and warranties contained in the Loan Agreement and the other Loan Documents shall be true and correct as of the date hereof, provided that each reference in such provisions to XOMA Ireland shall be deemed to refer to the Debtor, and as otherwise modified in the Assumption Agreement; and (ix) no representation or other statement made by Debtor to Secured Party contains any untrue statement of a material fact or omits to state a material fact necessary to make any statements made to Secured Party not misleading.

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3.            Covenants.

 

(a)            Encumbrances.  Debtor shall (i) not grant a security interest in any of the Collateral other than to Secured Party or (ii) execute, or consent to the filing of, any financing statements covering any of the Collateral in favor of any person other than Secured Party.

 

(b)            Perfection of Security Interest.  Debtor shall execute and deliver such documents as Secured Party reasonably deems necessary to create, perfect and continue the security interest in the Collateral contemplated hereby.

 

(c)            Records.  Debtor shall prepare and keep, in accordance with generally accepted accounting principles consistently applied, complete and accurate records regarding the Collateral and, if and when requested by Secured Party, shall prepare and deliver a complete and accurate schedule of all the Collateral in such detail as Secured Party may reasonably require.

 

(d)            Fees and Costs.  Debtor shall pay all expenses, including reasonable attorneys’ fees, incurred by Secured Party in the preservation, realization, enforcement or exercise of any Secured Party’s rights under this Agreement.

 

(e)            Company Existence.  Debtor will maintain its company existence and good standing and will maintain in force all licenses and agreements, the loss of which could have a material adverse effect on Debtor's business.  Debtor will pay all taxes on or before the date such taxes are due, and will comply with all laws and orders applicable to it.

 

(f)            Negative Covenant.  Debtor will not (i) relocate its chief executive office, or change its name or state of organization, without at least 30 days prior written notice to Secured Party, or (ii) sell, lease, transfer or otherwise dispose of any of the Collateral without Secured Party’s prior written consent.

 

(g)            Further Assurances.  At any time and from time to time, upon the written request of Secured Party, and at the sole expense of Debtor, Debtor shall promptly and duly execute and deliver any and all such further instruments and documents and take such further action as Secured Party may reasonably deem desirable to obtain the full benefits of this Agreement and of the rights and powers herein granted, including, without limitation, (a) to secure all consents and approvals necessary or appropriate for the grant of a security interest to Secured Party in any Collateral held by Debtor or in which Debtor has any rights not heretofore assigned, (b)  execute, acknowledge and deliver all deeds, conveyances, assignments, demises, mortgages, charges, documents and assurances at law as are necessary or advisable or as the Secured Party may reasonably require for the better granting, conveying, assigning, transfer, demising or charging the same, and every such further to the Secured Party for the purpose referred to in this Section 3.1(h) and for conferring upon the Secured Party such power of sale and other powers over the said property as are expressed to be conferred by this Agreement, and (b) filing any financing or continuation statements under the UCC with respect to the security interests granted hereby.  Debtor also hereby authorizes Secured Party to file any such financing or continuation statement without the signature of Debtor.

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(h)            This Agreement will be a continuing security notwithstanding any settlement of account or other matter or thing whatsoever and in particular will not be considered satisfied by any intermediate repayment or satisfaction of all or any of the monies, liabilities and obligations secured by this Agreement and will continue in full force and effect until final repayment in full and total satisfaction of all monies, liabilities and obligations secured by this Agreement; and if upon such final repayment and satisfaction there shall exist any right on the part of the Borrower or any other person to draw funds or otherwise which, if exercised, would or might cause the Borrower to become actually or contingently liable to the Secured Party whether as principal debtor or as surety for another person, then the Secured Party will be entitled to retain this security and all rights, remedies and powers conferred by this Agreement in the Collateral,  for so long as shall or might be necessary to secure the discharge of such actual or contingent liability; and in the event that any demand is made by the Secured Party under this Agreement the said monies will become due and shall be paid and discharged to the Secured Party and all provisions of this Agreement will apply accordingly.

 

(i)            The security constituted by this Agreement will be in addition to and will not operate so as in any way to prejudice or affect any other security which the Secured Party may now or at any time in the future hold for or in respect of all or any part of the monies and liabilities secured by this Agreement, if any, nor will any such other security or any lien to which the Secured Party may be otherwise entitled or the liability of any person not party to this Agreement for all or any part of the monies and liabilities secured by this Agreement be in any way prejudiced or affected by this security.  The Secured Party will have full power at its discretion to give time for payment to or make any other arrangement with any such other person without prejudice to the liability of the Borrower under this Agreement.

 

(j)            If the Obligations covenanted to be paid and discharged in this Agreement have been unconditionally and irrevocably paid and discharged in full the Secured Party shall, as soon as reasonably practicable after such payment and discharge and at the request and cost of the Borrower, execute such documents as may be necessary to release the security created by this Agreement.

 

4.            Events of Default.  The occurrence of any Event of Default under the Secured Agreements, or the breach of any material representation under this Agreement, or the failure to perform any material obligation under Section 3 of this Agreement, shall constitute an “Event of Default” under this Agreement.

 

5.            Remedies on Default.  Upon the occurrence and during the continuance of an Event of Default, Secured Party shall have all rights, privileges, powers and remedies provided by law, including, but not limited to, exercise of any or all of the following remedies.

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(a)            Secured Party may declare all amounts outstanding under the Secured Agreements to be immediately due and payable, and thereupon all such amounts shall be and become immediately due and payable to the Secured Party; provided that upon an Event of Default under Section 7.3 of the Loan Agreement, all amounts outstanding shall be immediately due and payable without any action by Secured Party.

 

(b)            Secured Party may dispose of the Collateral in accordance with applicable law.

 

(c)            Secured Party may use, operate, consume and sell the Collateral in its possession as appropriate for the purpose of performing Debtor’s obligations with respect thereto to the extent necessary to satisfy the obligations of Debtor.

 

(d)            All payments received and amounts realized by Secured Party shall be promptly applied and distributed by the Secured Party in the following order of priority:

 

(i)            first, to the payment of all costs and expenses, including reasonable legal expenses and attorneys fees, incurred or made hereunder by Secured Party, including any such costs and expenses of foreclosure or suit, if any, and of any sale or the exercise of any other remedy under this Section 5, and of all taxes, assessments or liens superior to the lien granted under this Agreement; and

 

(ii)          second, to the payment to Secured Party of the amount then owing under the Secured Agreements.

 

6.            Power of Attorney.  Debtor hereby appoints Secured Party, its attorney-in-fact to prepare, sign and file or record, for Debtor in Debtor’s name, any financing statements, applications for registration and like papers and to take any other action deemed by Secured Party necessary or desirable in order to perfect the security interest of the Secured Party hereunder, and, following the occurrence and continuance of an Event of Default, Debtor hereby appoints Secured Party, its attorney-in-fact (i) to dispose of any Collateral, (ii) to perform any obligations of Debtor hereunder, (iii) to commence and prosecute any actions at any court for the purposes of collecting any Collateral and enforcing any other right in respect thereof, (iv) to defend, settle or compromise any action brought and, in connection therewith, give such discharge or release as the Secured Party may deem reasonably appropriate, (v) institute any foreclosure proceedings that the Secured Party may deem appropriate, (vi) to sign and endorse any drafts, assignments, verifications, notices and other documents relating to the Collateral, (vii) to pay or discharge taxes, liens, security interests or other encumbrances levied or placed on or threatened against the Collateral, (viii) to direct any parties liable for any payment in connection with any of the Collateral to make payment of any and all monies due and to become due thereunder directly to the Secured Party or as the Secured Party shall direct, (ix) to receive payment of and receipt for any and all monies, claims, and other amounts due and to become due at any time in respect of or arising out of any Collateral, and (x) do and perform all such other acts and things as the Secured Party may reasonably deem to be necessary, proper or convenient in connection with the Collateral, in each case at Debtor’s expense, but without obligation to do so.

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7.            Remedies Cumulative.  Secured Party’s rights and remedies under this Agreement, the Loan Documents, and all other agreements shall be cumulative.  Secured Party shall have all other rights and remedies as provided under the New York Uniform Commercial Code (the “UCC”), by law, or in equity.  No exercise by Secured Party of one right or remedy shall be deemed an election, and no waiver by Secured Party of any Event of Default on Borrower’s or Debtor’s part shall be deemed a continuing waiver.  No delay by Secured Party shall constitute a waiver, election, or acquiescence by it.  No waiver by Secured Party shall be effective unless made in a written document signed on behalf of Secured Party and then shall be effective only in the specific instance and for the specific purpose for which it was given.

 

8.            Notices.  Unless otherwise provided in this Agreement, all notices or demands by any party relating to this Agreement or any other agreement entered into in connection herewith shall be in writing and shall be personally delivered or sent by a recognized overnight delivery service, certified mail, postage prepaid, return receipt requested, or by electronic mail or telefacsimile to Debtor or to Secured Party, as the case may be, at its addresses set forth below:

 

If to Debtor:

 

XOMA (US) LLC

2910 7th Street, No.100

Berkeley, CA 94710

Fax: 510-649-0315

Attn: Chief Financial Officer

Email: kurland@xoma.com

If to Secured Party:

 

Les Laboratoires Servier

50 rue Carnot

92284 Suresnes Cedex, France

Fax: + 33 1 55 72 54 66

Attn: Alliance Manager Business Partenariat Xoma

Email: guillaume.rouland@fr.netgrs.com

The parties hereto may change the address at which they are to receive notices hereunder, by notice in writing in the foregoing manner given to the other.

9.            Dispute Resolution; Choice of Law and Venue.

 

(a)            EACH PARTY HERETO AGREES THAT ANY ACTION, DISPUTE, PROCEEDING, CLAIM OR CONTROVERSY BETWEEN OR AMONG THE PARTIES, OR THEIR SUCCESSORS OR ASSIGNS, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE ARISING IN CONNECTION WITH THIS AGREEMENT, THE LOAN AGREEMENT OR THE XOMA US PROMISSORY NOTE (“DISPUTE” OR “DISPUTES”) SHALL BE FINALLY SETTLED UNDER THE RULES OF ARBITRATION OF THE INTERNATIONAL CHAMBER OF COMMERCE BY ONE OR MORE ARBITRATORS APPOINTED IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION AND THE SAID RULES.

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(b)            A SINGLE ARBITRATOR SHALL DECIDE ANY CLAIM OF $100,000 OR LESS. WHERE THE CLAIM OF ANY PARTY IS NOT QUANTIFIED OR EXCEEDS $100,000, THE DISPUTE SHALL BE DECIDED BY A MAJORITY VOTE OF THREE ARBITRATORS.

(c)            THE PLACE OF ARBITRATION SHALL BE IN BRUSSELS, BELGIUM AND THE ARBITRATION SHALL BE HELD IN ENGLISH.

(d)            THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK, NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

 

(e)            THE ARBITRATOR SHALL NOT HAVE THE POWER OR AUTHORITY TO AWARD PUNITIVE DAMAGES TO ANY PARTY.

 

(f)            THE PARTIES AGREE THAT US PROCEDURAL RULES (INCLUDING DISCOVERY AND CROSS-EXAMINATION) WILL NOT APPLY AND THAT THE ARBITRATORS MAY ORDER DISCLOSURE OF A DOCUMENT ONLY IF AND TO THE EXTENT THAT IT IS HIGHLY RELEVANT TO THE RESOLUTION OF THE DISPUTE; PROVIDED, HOWEVER, THAT ALL PRIVILEGES RESTRICTING DISCLOSURE ESTABLISHED UNDER THE LAWS GOVERNING THIS AGREEMENT SHALL APPLY AND MAY BE INVOKED BY BOTH PARTIES.

 

(g)            JUDGMENT UPON THE AWARD RENDERED MAY BE ENTERED IN ANY COURT HAVING JURISDICTION.

 

No provision of, nor the exercise of any rights under, subsection (a) or subsection (b) above shall limit the right of any party (i) to foreclose against any Collateral, pursuant to applicable provisions of the UCC, or otherwise pursuant to applicable law, (ii) to exercise self help remedies including but not limited to setoff and repossession, or (ii) to request and obtain from a court having jurisdiction before, during or after the pendency of any arbitration provisional or ancillary remedies and relief including but not limited to injunctive or mandatory relief or the appointment of a receiver.  The institution and maintenance of an action or judicial proceeding for, or pursuit of, provisional or ancillary remedies or exercise of self help remedies shall not constitute a waiver of the right of Secured Party, even if Secured Party would otherwise have such right.

 

10.         General Provisions.

 

10.1            Successors and Assigns.  This Agreement shall bind and inure to the benefit of the respective successors and permitted assigns of each of the parties; provided, however, that neither this Agreement nor any rights hereunder may be assigned by Debtor without Secured Party’s prior written consent, which consent may be granted or withheld in Secured Party’s sole discretion.  Secured Party shall have the right without the consent of or notice to Debtor to sell, transfer, negotiate, or grant participation in all or any part of, or any interest in, Secured Party’s obligations, rights and benefits hereunder.

 

10.2            Time of Essence.  Time is of the essence for the performance of all obligations set forth in this Agreement.

 

7

Execution Copy

 

10.3            Severability of Provisions.  Each provision of this Agreement shall be severable from every other provision of this Agreement for the purpose of determining the legal enforceability of any specific provision.

 

10.4            Amendments in Writing, Integration.  This Agreement cannot be amended or terminated orally.  All prior agreements, understandings, representations, warranties, and negotiations between the parties hereto with respect to the subject matter of this Agreement, if any, are merged into this Agreement and the Loan Documents.

 

10.5            Counterparts.  This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same Agreement.

 

10.6            Survival.  All covenants, representations and warranties made in this Agreement shall continue in full force and effect so long as any Obligations remain outstanding, any Obligations remain outstanding, or Secured Party has any obligation to make credit extensions to Borrower under the Loan Agreement.  This Agreement shall terminate upon the payment and performance in full of the Obligations.

 

10.7            Terms.  In this Agreement (except where the context otherwise requires):

 

(a)                the singular includes the plural and vice versa and any gender includes the other gender;

 

(b)                words importing persons include natural persons, firms, partnerships, companies, corporations, associations, organisations, governments, states, foundations and trusts (in each case whether or not having a separate legal personality);

 

(c)                any reference to a statute, statutory provision or subordinate legislation (“legislation”) is (unless the contrary is clearly stated) to be construed as a reference to legislation operative in New York and is (except where the context otherwise requires) to be construed as referring to such legislation as amended and in force from time to time and to any legislation which re-enacts or consolidates (with or without modification) any such legislation;

 

(d)                save as otherwise provided in this Agreement, any reference to a section, clause, paragraph, sub-clause, sub-paragraph or schedule is a reference to a section, clause, paragraph, sub-clause, sub-paragraph or schedule (as the case may be) of this Agreement;

 

(e)                the index and headings are inserted for convenience only and are not to affect the construction of this Agreement;

 

(f)                 a reference to any document includes that document as it has or may be amended, varied, assigned, novated, restated or supplemented from time to time;

 

(g)                the Borrower and the Secured Party or any other person shall be construed so as to include its successors in title, permitted assigns and permitted transferees;

 

(h)                any reference to a legal term for any action, remedy, method of judicial proceeding, legal document, legal status, court, official or any legal concept or thing is, in respect of any jurisdiction other than New York, to be deemed to include a reference to what most nearly approximates in that jurisdiction to the legal term under New York law;

8

Execution Copy

(i)                 any phrase introduced by the terms “including”, “include”, “in particular” or any similar expression is to be construed as illustrative and shall not limit the sense of the words preceding those terms.

In Witness Whereof, the parties have executed this Agreement on the date set forth above.

 

	
Debtor:

	 	
Secured Party:

	
XOMA (US) LLC

	 	
LES LABORATOIRES SERVIER

	 		 		 
	
By:

	     	 	
By:

	     
	
Name:

	 	 	
Name:

	 
	
Title:

	 	 	
Title:

	 

9

EXHIBIT 10.74

Execution Copy

 

	DEBTOR:	XOMA (US) LLC

	SECURED PARTY:	LES LABORATOIRES SERVIER

EXHIBIT A

COLLATERAL DESCRIPTION ATTACHMENT

TO SECURITY AGREEMENT

The following personal property of Debtor:

1. All of Debtor’s right, title and interest in that certain Transfer Agreement relating to the Intellectual Property Rights (as defined below), effective as of December 30, 2010, by and between XOMA Technology Ltd. and XOMA Ireland Limited, which rights of XOMA Ireland Limited have been assigned to and assumed by Debtor pursuant to that certain Asset Transfer Agreement, dated as of August     , 2013;

2. All of Debtor’s right, title and interest in the patents and patent applications in the Licensed Territory listed in Schedule A hereto (including any rights transferred under the above mentioned December 30, 2010 Transfer Agreement), including any and all related continuations, continuations in-part, divisions, extensions, reissues, re-examinations, renewals or substitutions, any and all other proprietary rights related to the foregoing (including, without limitation, remedies against infringements thereof and rights of protection of and interest therein under the laws of all jurisdictions) in the Licensed Territory (as defined below).

“Licensed Territory” means all countries of the world other than (a) the United States of America, and (b) Japan, including their respective territories and possessions.

SCHEDULE A

FAMILY 1

	Title:	IL1-Beta binding antibodies and fragments thereof

	Inventors:	Linda Masat; Mary Haak-Frendscho; Gang Chen; Arnold Horwitz; Marina Roell

	
COUNTRY

	
APPLICATION NO.

	
FILE DATE

	
PATENT/PUBLICATION

	
US Provisional

	
61/692,830

	
06/21/05

	 
	
PCT

	
PCT/US06/024261

	
06/21/06

	
WO2007/002261

	
Australia

	
2006 262179

	
06/21/06

	
2006262179 B2

	
Brazil

	
PI0612273-6

	
06/21/06

	
BRPI0612273 A2

	
Canada

	
2,612,760

	
06/21/06

	
CA2612760 A1

	
China

	
2006 80026551.9

	
06/21/06

	
CN101228188 A

	
China

	
201210157441.3

	
05/18/12

	
CN102775493A

	
EP (all countries):

	
06773749.4

	
06/21/06

	
1899378

	
Austria

	
06773749.4

	
06/21/06

	
1899378

	
Belgium

	
06773749.4

	
06/21/06

	
1899378

	
Bulgaria

	
06773749.4

	
06/21/06

	
1899378

	
Cyprus

	
06773749.4

	
06/21/06

	
1899378

	
Czech Republic

	
06773749.4

	
06/21/06

	
1899378

	
Denmark

	
06773749.4

	
06/21/06

	
1899378

	
Estonia

	
06773749.4

	
06/21/06

	
E004059

	
Finland

	
06773749.4

	
06/21/06

	
1899378

	
France

	
06773749.4

	
06/21/06

	
1899378

	
Germany

	
06773749.4

	
06/21/06

	
60 2006 010 072.8-08

	
Greece

	
06773749.4

	
06/21/06

	
3070850

	
Hungary

	
06773749.4

	
06/21/06

	
E 007716

	
Iceland

	
06773749.4

	
06/21/06

	
1899378

	
Ireland

	
06773749.4

	
06/21/06

	
1899378

	
Italy

	
06773749.4

	
06/21/06

	
73749BE/2009

	
Latvia

	
06773749.4

	
06/21/06

	
1899378

	
Lithuania

	
06773749.4

	
06/21/06

	
1899378

	
Luxembourg

	
06773749.4

	
06/21/06

	
1899378

	
Monaco

	
06773749.4

	
06/21/06

	
1899378

	
Netherlands

	
06773749.4

	
06/21/06

	
1899378

	
Poland

	
06773749.4

	
06/21/06

	
1899378

	
Portugal

	
06773749.4

	
06/21/06

	
1899378

	
Romania

	
06773749.4

	
06/21/06

	
RO/EP 1 899 378

	
Slovak Republic

	
06773749.4

	
06/21/06

	
1899378

	
Slovenia

	
06773749.4

	
06/21/06

	
1899378

	
Spain

	
06773749.4

	
06/21/06

	
1899378

	
Sweden

	
06773749.4

	
06/21/06

	
1899378

	
Switzerland

	
06773749.4

	
06/21/06

	
1899378

	
Turkey

	
06773749.4

	
06/21/06

	
TR 2009 09878 T4

	
United Kingdom

	
06773749.4

	
06/21/06

	
1899378

	
EP

	
09 174 190.0

	
10/27/09

	
2 163 562 A2

	
EP

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
Austria

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
Belgium

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
Bulgaria

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
Cyprus

	
10 179 088.9

	
09/23/10

	
2314623 B1

 

Execution Copy

 

	
Czech Republic

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
Denmark

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
Estonia

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
Finland

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
France

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
Germany

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
Greece

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
Hungry

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
Iceland

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
Ireland

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
Italy

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
Latvia

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
Lithuania

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
Liechtenstein

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
Luxembourg

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
Monaco

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
Netherlands

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
Poland

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
Portugal

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
Romania

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
Spain

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
Sweden

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
Slovenia

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
Slovak Republic

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
Switzerland

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
Turkey

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
United Kingdom

	
10 179 088.9

	
09/23/10

	
2314623 B1

	
EP

	
10 179 089.7

	
09/23/10

	
2 322 552 A2

	
Hong Kong

	
09100795.8

	
06/21/06

	
1123560

	
Hong Kong

	
10107181.2

	
07/27/10

	
1140781A

	
Hong Kong

	
11111525.8

	
10/26/11

	
1157351 B

	
Hong Kong

	
11112428.4

	
11/17/11

	
1158218A

	
Israel

	
188094

	
06/21/06

	
188094

	
Israel

	
202630

	
12/09/09

	
202630

	
India

	
320/CHENP/2008

	
06/21/06

	 
	
Korea

	
10-2008-7001520

	
06/21/06

	
KR 20080039875 A

	
Mexico

	
MX/a/2007/016032

	
06/21/06

	
282003

	
Mexico

	
MX/a/2010/002638

	
03/08/10

	 
	
New Zealand

	
565138

	
06/21/06

	
565138

	
Philippines

	
1-2007-502895

	
06/21/06

	
1-2007-502895

	
Russian Federation

	
2008102135

	
06/21/06

	
RU 2008102135 A

	
Singapore

	
200718904-6

	
06/21/06

	
140638

	
South Africa

	
2008/00555

	
06/21/06

	
2008/00555

 

FAMILY 2

	Title:	Methods for Treatment of IL-1Beta Related Diseases

	Inventors:	Alan M. Solinger; Patrick J. Scannon; Robert J. Bauer; David Alleva

	
COUNTRY

	
APPLICATION NO.

	
FILE DATE

	
PATENT/PUBLICATION

	
US Provisional

	
60/871,046

	
12/20/06

	 
	
US Provisional

	
60/908,389

	
03/27/07

	 
	
US Provisional

	
60/911,033

	
04/10/07

	 
	
PCT

	
PCT/US2007/088411

	
12/20/07

	
WO 2008/077145

	
Europe

	
07869675.4

	
12/20/07

	
EP2094306 A2

	
Australia

	
2007333635

	
12/20/07

	
AU2007333635 A1

 

3

Execution Copy

 

	
Brazil

	
PI 0720928-2

	
12/20/07

	 
	
Canada

	
2,673,592

	
12/20/07

	 
	
China

	
200780051536.4

	
12/20/07

	
CN 101616690A

	
Hong Kong

	
10102012.8

	
02/25/10

	
1135323A

	
India

	
4626/DELNP/2009

	
12/20/07

	 
	
Indonesia

	
W00 2009 01721

	
12/20/07

	
050.2064A

	
Mexico

	
MX/a/2009/006709

	
12/20/07

	
299543

	
Russia

	
2009127066

	
12/20/07

	 
	
South Africa

	
2009/04660

	
12/20/07

	
2009/04660

FAMILY 3

	Title:	Methods for Treatment of Gout

	Inventors:	Alan M. Solinger

	
COUNTRY

	
APPLICATION NO.

	
FILE DATE

	
PATENT/PUBLICATION

	
US Provisional

	
61/015,633

	
12/20/07

	 
	
US Provisional

	
61/059,378

	
06/06/08

	 
	
US Provisional

	
61/095,191

	
09/08/08

	 
	
PCT

	
PCT/US08/087519

	
12/18/08

	
WO 2009/086003

	
Australia

	
2008343085

	
07/12/10

	 
	
Canada

	
2,710,252

	
12/18/08

	 
	
China

	
200880126879.7

	
12/18/08

	 
	
EP

	
08866346.3

	
07/19/10

	
2 391 650 A1

	
Mexico

	
MX/a/2010/006823

	
06/18/10

	
293693

	
Russia

	
2010129783

	
07/20/10

	 

4

FAMILY 4

	Title:	Methods for the Treatment of Rheumatoid Arthritis

	Inventors:	Alan M. Solinger, Alexander Owyang

	
COUNTRY

	
APPLICATION NO.

	
FILE DATE

	
PATENT/PUBLICATION

	
US Provisional

	
61/059,711

	
06/06/08

	 
	
US Provisional

	
61/095,232

	
09/08/08

	 
	
PCT

	
PCT/US09/46441

	
06/05/09

	
WO 2009/149370

	
Canada

	
2,727,171

	
12/06/10

	 
	
Australia

	
2009256072

	
12/14/10

	 
	
Europe:

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Austria

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Belgium

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Bulgaria

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Croatia

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Cyprus

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Czech Repub

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Denmark

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Estonia

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Finland

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
France

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Germany

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Greece

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Hungary

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Iceland

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Ireland

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Italy

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Latvia

	
09 759 528.4

	
12/22/10

	
2293816 B1

 

5

Execution Copy

 

	
Lithuania

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Luxembourg

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Macedonia

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Malta

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Monaco

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Netherlands

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Norway

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Poland

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Portugal

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Romania

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Slovak Repub

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Slovenia

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Spain

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Sweden

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Switzerland/

 Liechtenstein

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
Turkey

	
09 759 528.4

	
12/22/10

	
2293816 B1

	
UK

	
09 759 528.4

	
12/22/10

	
2293816 B1

 

FAMILY 5

	Title:	Methods for Treating or Preventing IL-1Beta Related Diseases

	Inventors:	Patrick J. Scannon, Alan M. Solinger, Robert J. Bauer

	
COUNTRY

	
APPLICATION NO.

	
FILE DATE

	
PATENT/PUBLICATION

	
US Provisional

	
61/094,842

	
09/05/08

	 
	
US Provisional

	
61/121,451

	
12/10/08

	 
	
PCT

	
PCT/US09/56086

	
09/04/09

	
WO 2010/028275

	
Australia

	
2009289547

	
03/03/11

	 
	
Canada

	
2,735,940

	
03/02/11

	 
	
Europe

	
09 812 306.0

	
04/04/11

	
2 341 936 A1

 

FAMILY 6

	Title:	METHODS FOR IMPROVEMENT OF BETA CELL FUNCTION

	Inventors:	Patrick J. Scannon, Alan M. Solinger, Robert J. Bauer

	
COUNTRY

	
APPLICATION NO.

	
FILE DATE

	
PATENT/PUBLICATION

	
US Provisional

	
61/094,857

	
09/05/08

	 
	
US Provisional

	
61/121,486

	
12/10/08

	 
	
PCT

	
PCT/US09/56084

	
09/04/09

	
WO 2010/028273

	
Australia

	
2009289545

	
03/03/11

	 
	
Canada

	
2,735,939

	
03/02/11

	 
	
Europe

	
09 812 304.5

	
04/04/11

	
2 341 935 A1

FAMILY 7

	Title:	CARDIOVASCULAR RELATED USES OF IL-1β ANTIBODIES AND BINDING FRAGMENTS THEREOF

	Inventors:	Patrick J. Scannon, Alan M. Solinger, Jeffrey D. Feldstein

 

	
COUNTRY

	
APPLICATION NO.

	
FILE DATE

	
PATENT/PUBLICATION

	
US Provisional

	
61/182,679

	
05/29/09

	 
	
US Provisional

	
61/252,571

	
10/16/09

	 
	
US Provisional

	
61/313,001

	
03/11/10

	 
	
PCT

	
PCT/US10/36761

	
05/28/10

	
WO 2010/138939

 

6

Execution Copy

 

	
Australia

	
2010253924

	
05/28/10

	 
	
Australia

	
2013203560

	
04/10/13

	 
	
Brazil

	
PI1011228-6

	
11/29/11

	 
	
Canada

	
2,763,161

	
05/28/10

	 
	
China

	
201080033031.7

	
05/28/10

	
 CN 102573893A

	
EPO

	
10 781 360.2

	
12/20/11

	
 EP 2 435 073 A1

	
Eurasia

	
201101643

	
12/15/11

	 
	
Hong Kong

	
12108509.3

	
08/XX/12

	
 1167814A

	
India

	
9944/DELNP/2011

	
12/16/11

	 
	
Indonesia

	
W00 2011 04690

	
12/21/11

	
 2012/01714 A

	
Israel

	
216660

	
11/28/11

	 
	
Korea

	
10-2011-7031198

	
12/27/11

	
 10-2012-006104

	
Mexico

	
MX/a/2011/012666

	
11/28/11

	 
	
New Zealand

	
597024

	
11/12/11

	 
	
Philippines

	
1-2011-502479

	
11/28/11

	 
	
Singapore

	
201108772-3

	
11/28/11

	 
	
South Africa

	
2011/09050

	
12/08/11

	 

FAMILY 8

	Title:	Methods for the treatment of IL-1Beta related conditions

	Inventors:	Alan M. Solinger, Ahmet Gül

	
COUNTRY

	
APPLICATION NO.

	
FILE DATE

	
PATENT/PUBLICATION

	
US Provisional

	
61/332,658

	
05/07/10

	 
	
US Provisional

	
61/334,125

	
05/12/10

	 
	
US Provisional

	
61/444,638

	
02/18/11

	 
	
PCT

	
PCT/US11/35646

	
05/06/11

	
 WO 2011/140522

	
Australia

	
2011249854

	
05/06/11

	 
	
Australia

	
2013203214

	
04/09/13

	 
	
Brazil

	
BR 11 2012 028557 2

	
05/06/11

	 
	
Canada

	
2,797,846

	
05/06/11

	 
	
China

	
201180022684.X

	
05/06/11

	
 2013-509314

	
Europe

	
11778465.2

	
05/06/11

	
 2 566 520 A

	
Eurasia

	
201201526

	
05/06/11

	 
	
India

	
9496/DELNP/2012

	
05/06/11

	 
	
Indonesia

	
W00201204922

	
05/06/11

	 
	
Israel

	
222890

	
05/06/11

	 
	
Korea

	
10-2012-7031454

	
05/06/11

	 
	
Mexico

	
MX/a/2012/012901

	
05/06/11

	 
	
New Zealand

	
603191

	
05/06/11

	 
	
Philippines

	
1-2012-502143

	
05/06/11

	 
	
Singapore

	
201208230-1

	
05/06/11

	 
	
South Africa

	
2012/08172

	
05/06/11

	 

FAMILY 9*

	Title:	METHODS FOR TREATING ACNE

	Inventors:	Paul Rubin

	
COUNTRY

	
APP. NO.

	
FILE DATE

	
PATENT/PUBLICATION

	
US Provisional

	
61/577,450

	
12/19/11

	 
	
PCT

	
PCT/US12/70734

	
12/19/12

	 

*Future ROW (non-US, non-Japan) rights

7

Execution Copy

EXHIBIT 2

PROMISSORY NOTE

 

€15,000,000

August __, 2013

Berkeley, California

 

For Value Received, XOMA (US) LLC, a Delaware limited liability company (“Borrower”), hereby promises to pay to the order of LES LABORATOIRES SERVIER, a corporation organized under the laws of France (“Lender”), the principal sum of Fifteen Million Euros (€15,000,000) (the “Loan”) together with accrued and unpaid interest thereon, each due and payable on the dates and in the manner set forth below.

This Promissory Note is the Note referred to in and is executed and delivered in connection with that certain Security Agreement, dated as of even date herewith, executed by Borrower in favor of Lender (as the same may from time to time be amended, modified or supplemented or restated, the “Security Agreement”), and that certain Loan Agreement, dated as of December 30, 2010, as amended, by and between Borrower and Lender (as the same may from time to time be amended, modified or supplemented or restated, the “Loan Agreement”), among other agreements.  Additional rights and obligations of Lender are set forth in the Security Agreement and the Loan Agreement.  All capitalized terms used herein and not otherwise defined herein shall have the respective meanings given to them in the Loan Agreement and the Security Agreement.

 

1.            Original Note; Loan Agreement.  This Promissory Note replaces the Promissory Note, dated as of January 13, 2011, issued by Xoma Ireland Limited to Lender (the “Original Note”).  Lender shall deliver the cancelled Original Note to Xoma Ireland Limited upon its receipt of this Promissory Note, executed by the Borrower.  This Promissory Note shall be the Note referred to in the Loan Agreement and is entitled to the benefits of all provisions of the Loan Agreement.  All references in the Loan Agreement to the “Note” shall be deemed to refer to this Promissory Note.

 

2.            Principal Repayment.  The total outstanding principal amount of the indebtedness evidenced by this Promissory Note shall be due and payable in accordance with the terms of the Loan Agreement.  Demand, diligence, presentment, protest and notice of non-payment and protest are hereby waived by the Borrower.

 

3.            Interest Rate.  Borrower further promises to pay interest on the outstanding principal amount hereof at the rate or rates per annum and in the manner set forth in the Loan Agreement, or the maximum rate permissible by law, whichever is less.

 

4.            Payment on Non-Business Day.  In the event that any payment of any principal, interest, fees or other amounts payable by Borrower under or pursuant to the Loan Agreement, or under any other Loan Document shall become due on any day which is not a Business Day, such due date shall be extended to the next succeeding Business Day, further provided that no interest shall accrue from and during any such extension.

 

5.            Default.   Upon the occurrence and during the continuance of an Event of Default under the Loan Agreement or any of the other Loan Documents, all unpaid principal, accrued interest and other amounts owing hereunder shall become due and payable as provided in the Loan Agreement and the Lender shall have all rights and remedies against the Borrower as provided in the Loan Agreement, the Security Agreement and under applicable law.

8

Execution Copy

6.            Secured Note.  The full amount of this Note is secured by the Collateral identified and described as security therefore in the Security Agreement executed by and delivered by Borrower to Lender.  Borrower shall not, directly or indirectly, create, permit or suffer to exist, and shall defend the Collateral against and take such other action as is necessary to remove, any Lien on or in the Collateral, or in any portion thereof.

 

7.            Representations and Warranties.  By its execution hereof, Borrower hereby represents and warrants that each of the representations and warranties contained in the Loan Agreement and the other Loan Documents shall be true and correct as of the date hereof, provided that each reference in such provisions to XOMA Ireland shall be deemed to refer to the Borrower.

 

8.            Governing Law.  This Note shall be governed by, and construed and enforced in accordance with, the laws of the State of New York, excluding conflict of laws principles that would cause the application of laws of any other jurisdiction.  The provisions of Section 9 of the Security Agreement are hereby incorporated by reference (including with respect to arbitration) and this Promissory Note and the parties hereto shall otherwise be subject to all of the terms and conditions of Section 9 of the Security Agreement, mutatis mutandis.

 

9.            Successors and Assigns.  The provisions of this Note shall inure to the benefit of and be binding on any successor to Borrower and shall extend to any holder hereof.

	
Borrower

	
XOMA (US) LLC

 

	 	
By:            

	     
	 	
 

Printed Name:

	     
	 	
 

Title:            

	      

9

Execution Copy

 

EXHIBIT 3

Dated                     2013

XOMA IRELAND LIMITED

as Chargor

 

LES LABORATOIRES SERVIER

as Chargee

and

DEED OF RELEASE

Re: Fixed Equitable Charge dated 13 January 2011

A & L GOODBODY

10

Execution Copy

THIS DEED OF RELEASE is dated                    2013 and made between:

(1)                XOMA IRELAND LIMITED, a company incorporated in Ireland with registration number 307875 and having its registered office at 26 Pembroke Street Upper, Dublin 2, Ireland (the Chargor); and

(2)                LES LABORATOIRES SERVIER, a company organised and existing under the laws of France having its principal place of business at 50 rue Carnot, 92284 Suresnes, France (the Chargee).

WHEREAS:

A.                By a fixed charge dated 13 January 2011 between the Chargor and Chargee in respect of the Loan Agreement, the Chargor has granted security to the Chargee for the payment and discharge of the Obligations (the Fixed Charge).

B.                 Pursuant to a consent, transfer and assumption agreement dated the date hereof between the Chargor, the Chargee and XOMA (US) LLC (the Consent, Transfer, Assumption and Amendment Agreement) the Chargee has agreed to release the Chargor in full from its obligations under the Fixed Charge and has agreed to do so on and subject to the terms of this Deed.

WITNESSES as follows:

	1.	DEFINITIONS AND INTERPRETATION

Unless the context otherwise requires, terms used and not defined shall have the same meaning given to them in the Fixed Charge.

Indebtedness has the same meaning as in the Loan Agreement;

Intellectual Property Rights has the same meaning as in the Loan Agreement;

Loan Agreement means the loan agreement dated 30 December, 2010 between the Chargor and the Chargee pursuant to which the Chargee made a loan available to the Chargor, as amended from time to time;

Loan Documents has the same meaning as in the Loan Agreement;

Obligations has the same meaning as in the Loan Agreement;

Transfer Agreement means the transfer agreement between Xoma Technology Ltd. and the Chargor dated 30 December 2010 relating to the Intellectual Property Rights;

	2.	DISCHARGE AND RELEASE

2.1.            In accordance with the terms of the Fixed Charge, the Chargee hereby irrevocably and unconditionally

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Execution Copy

		2.1.1.	RELEASES and DISCHARGES unto the Chargor, to the extent charged by way of security in favour of the Chargee pursuant to the Fixed Charge, all rights, interests and titles in and to the Transfer Agreement present or future;

		2.1.2.	RELEASES and DISCHARGES unto the Chargor, to the extent charged by way of security in favour of the Chargee pursuant to the Fixed Charge, all rights, interests and titles in and to the Intellectual Property Rights, including without limitation, all Intellectual Property Rights specified in the schedule attached to the Fixed Charge; and

		2.1.3.	RELEASES and DISCHARGES the Chargor from all obligations, absolute and contingent, pursuant to the Fixed Charge and all claims and demands thereunder, so that such obligations, claims and demands are, with effect from the execution and delivery of this Deed, discharged and of no further effect.

2.2.            The Chargor and the Chargee hereby agree that the Fixed Charge be and is hereby terminated.

	3.	INVALIDITY

3.1.            If a provision of this Deed is or becomes illegal, invalid or unenforceable in any jurisdiction, that will not affect:

		3.1.1.	the legality, validity or enforceability in that jurisdiction of any other provision of this Deed; or

		3.1.2.	the legality, validity or enforceability in any other jurisdiction of that or any other provision of this Deed.

The illegal, invalid or unenforceable provision shall be substituted by a valid provision which accomplishes as far as legally possible the economic purposes of the void or unenforceable provision.

	4.	REPRESENTATIONS AND WARRANTIES

4.1.            Each of the parties hereto hereby represents and warrants that:

		4.1.1.	it has full power and authority to execute, deliver and perform its obligations under this Deed; and

		4.1.2.	this Deed constitutes its legal, valid and binding obligations enforceable against it in accordance with its terms.

	5.	FURTHER ASSURANCES

The Chargee shall, at the cost and expense of the Chargor, from time to time sign, seal, execute, acknowledge, deliver, file and register, all such further and additional documents, instruments, agreements, certificates, consents and assurances and do all such other acts and things as may be reasonably required by the Chargor for the purpose of more effectively carrying out the intent and purpose of this Deed.

12

Execution Copy

	6.	COUNTERPARTS

This Deed may be executed in any number of counterparts and by the different parties to this Deed on different counterparts each of which, when executed and delivered, shall constitute an original, but all the counterparts shall together constitute but one and the same instrument.

	7.	GOVERNING LAW

This Deed shall be governed by and construed in accordance with the laws of Ireland.

IN WITNESS whereof the parties have executed and delivered this Deed on the date at the beginning of this Deed.

GIVEN UNDER THE COMMON SEAL OF

XOMA IRELAND LIMITED

LES LABORATORIES SERVIER

	
By:

	      	 
	
Name:

	     	 
	
Title:

	     	 

13

Execution Copy

EXHIBIT 4

 

CONFIRMATION OF SATISFACTION

Pursuant to Section 3.1 of that certain Consent, Transfer, Assumption and Amendment Agreement dated August ___, 2013 (the “Loan Transfer Consent”), by and among XOMA Ireland, XOMA US and Servier, the undersigned as [INSERT TITLE] of Servier hereby confirms and declares that it has received from XOMA US (i) confirmation of the completion of the GEVO Asset Transfer, (ii) the signed XOMA US Note and (iii) the fully signed Security Agreement; and that the Conditions have thus been satisfied as of the Transfer Completion Date (all capitalized terms shall have the meanings assigned thereto in the Loan Transfer Consent).

	 	
For and on behalf of LES LABORATOIRES SERVIER

	
	 	 		
	 	
By:

	      	
	 	
Name:

	      	
	 	
Title:

	     	
	 	
Date:

	     	

 

 

14mm_Ex10-20

		
			Exhibit 10.20
		

		
			MILLENNIAL MEDIA, INC.
		

		
			KEY EMPLOYEE AGREEMENT
		

		
			This KEY EMPLOYEE AGREEMENT (the "Agreement")  is entered into effective September 30, 2014 (the "Effective Date") by and between JASON KELLY (the "Executive") and MILLENNIAL MEDIA, INC.,  a Delaware corporation (the "Company'').
		

		
			 
		

		
			The Company desires to continue to employ the Executive and, in connection therewith, to compensate the Executive for Executive's personal services to the Company; and
		

		
			 
		

		
			The Executive wishes to be employed by the Company and provide personal services to the Company in return for certain compensation.
		

		
			 
		

		
			Accordingly, in consideration of the mutual promises and covenants contained herein, the parties agree to the following:
		

		
			 
		

		
			1.          EMPLOYMENT BY THE COMPANY.
		

		
			 
		

		
			1.1          Position. Subject to the terms set forth herein, the Company agrees to employ Executive in the position of President of the Media Group, and Executive hereby accepts such employment, with an employment start date of October 13, 2014. During the term of Executive's employment with the Company, subject to Section 4.1, Executive will devote Executive's best efforts and substantially all of Executive's business time and attention to the business of the Company (except for vacation periods as set forth herein and reasonable periods of illness or other incapacities permitted by the Company's general employment policies).
		

		
			 
		

		
			1.2          Duties. Executive shall serve as the President of the Media Group of the Company, reporting to the Chief Executive Officer and performing such duties and having such authority and powers as are customarily associated with such position together with such other duties as are consistent with that position and assigned to the Executive from time to time by the Board.
		

		
			 
		

		
			1.3          Other Employment Policies. The employment relationship between the parties shall also be governed by the general employment policies and practices of the Company, including those relating to protection of confidential information and assignment of inventions, except that when the terms of this Agreement differ from or are in conflict with the Company's general employment policies or practices, this Agreement shall control.
		

		
			 
		

		
			2.          COMPENSATION.
		

		
			 
		

		
			2.1          Salary. As of the Effective Date, Executive shall receive for Executive's services to be rendered hereunder an annualized base salary of $400,000. Executive's base salary is subject to standard federal and state payroll withholding requirements, payable in accordance with Company's standard payroll practices. This amount will be reviewed each year during the term of Executive's employment in accordance with the Company's standard practices and will be subject to review and adjustment from time to time by the Company in its  sole discretion, subject to Section 
		

		 

 

		6.4(b)(ii) below (Executive's salary, as may be increased or decreased in accordance with this Agreement from time to time is hereinafter referred to as "Base Salary").
		

		
			 
		

		
			2.2          Bonus. Executive shall be eligible for an annual incentive bonus award opportunity in respect of each fiscal year during his term of employment (the "Annual Bonus"). Executive shall have the opportunity to earn an Annual Bonus equal to a maximum amount of eighty percent (80%) of Base Salary. Any Annual Bonus shall be awarded by the Board in its sole discretion based upon an annual incentive plan adopted by the Board (or Compensation Committee thereof) at or near the beginning of each fiscal year during the term hereof. For the 2014 fiscal year (January 1, 2014-December 31, 2014), Executive will be eligible for a bonus if Executive continues to work through the end of 2014, which shall be pro-rated according to the following formula: the amount of the Annual Bonus that Executive would have earned had he worked the entire calendar year multiplied by a fraction, the numerator of which shall be the number of days employed in 2014, and the denominator of which shall be 365. Additionally, if the Executive remains in the continuous employment of the Company through December 31, 2014, then the Company will pay Executive a guaranteed bonus for his services in the amount of $50,000, subject to standard federal and state payroll withholding requirements. Any bonus shall be paid to Executive at the same time as other similar bonuses are generally payable to other senior executives of the Company, but in all events, any bonus earned pursuant to this Section 2.2 will be paid on or before March 15 of the year following the year for which it is earned.
		

		
			 
		

		
			2.3          Equity Compensation.
		

		
			 
		

		
			(a) New Hire Stock Option Grant. As soon as practicable after the Effective Date, and subject to approval by the Board, Executive shall be granted an option to purchase 150,000 shares of the Company's common stock (the "Initial Option") pursuant to the Company's 2012 Equity Incentive Plan, as may be amended from time to time (the "Plan"). The Initial Option shall be an incentive stock option to the extent permissible under Section 422 of the Internal Revenue Code and have an exercise price equal to the fair market value of the stock on the date of the grant by the Board. The complete terms and conditions of the Initial Option shall be set forth in a separate grant notice and/or agreement between Executive and the Company. The Initial Option shall vest according to the following schedule: 25% will vest immediately as of the first anniversary of the date of grant, and the remaining 75% of the shares will then vest in equal installments each month thereafter over the next 36 months, subject to continuous service with the Company on such dates.
		

		
			 
		

		
			(b) New Hire Restricted Stock Units Grant. In addition, as soon as practicable after the Effective Date, and subject to approval by the Board, Executive shall be granted 150,000 Restricted Stock Units ("Initial RSUs") pursuant to the Plan. The complete terms and conditions of the Initial RSUs shall be set forth in a separate grant notice and/or agreement between Executive and the Company. The Initial RSUs shall vest according to the following schedule: 25% will vest immediately as of the first anniversary of the date of grant, and the remaining 75% of the shares will then vest in equal installments quarterly thereafter over the next 36 months, subject to continuous service with the Company through such dates.
		

		
			 
		

		
			(c) Special Retention Equity Grant. Additionally, as soon as practicable after the Effective Date, and subject to approval by the Board, Executive shall be granted 300,000 Restricted Stock Units ("Retention RSUs") pursuant to the Plan. The complete terms and conditions of the Initial RSUs shall be set forth in a separate grant notice and/or agreement between Executive and the 
		

		 

 

		Company. The Retention RSUs shall vest according to the following schedule: 50% shall vest immediately as of the first anniversary of the date of grant, and the remaining 50% will then vest in equal installments quarterly thereafter over the next 12 months, subject to continuous service with the Company through such date.
		

		
			 
		

		
			In addition, all of the foregoing Initial Stock Options, Initial RSUs, and Retention RSUs collectively, the "Equity"), shall be subject to the following acceleration provisions: (i) 50% of the then-unvested portion of the Equity shall accelerate upon a "Single Trigger Event" (as defined below); and (ii) 100% of the then-unvested portion of the Equity shall accelerate upon a "Double Trigger Event" (as defined below). A "Single Trigger Event" shall mean that a "Change in Control" (as such term is defined in the Plan) has been consummated. A "Double Trigger Event" shall mean that (1) a "Change in Control" (as such term is defined in the Plan) has been consummated and (2) Employee has been terminated by the Company without "Cause," or resigns for "Good Reason" (other than as a result of death or disability), as "Cause" and/or "Good Reason" is defined in this Agreement, within one (1) month prior to, as of, or within twelve (12) months after, the date that such Change in Control has been consummated, and provided such termination is a "separation from service" (as defined in Treasury Regulations Section 1.409A-1(h), a "Separation from Service") and (3) provided Employee has signed and allowed to become effective a release of claims within 60 days following his Separation from Service (as defined under Treasury Regulation Section 1.409A-l(h)).
		

		
			 
		

		
			2.4          Standard Company Benefits. Executive shall be entitled to all rights and benefits for which the Executive is eligible under the terms and conditions of the standard Company benefits and compensation practices which may be in effect from time to time and provided by the Company to its Executives generally. The Company may adopt, change or delete plans, policies and provisions in its sole discretion.
		

		
			 
		

		
			2.5          Expense Reimbursement. The Company will promptly reimburse Executive for reasonable business expenses in accordance with the Company's standard expense reimbursement policy. In addition, the Company will reimburse up to $7,500 in documented legal fees and disbursements incurred by Executive in connection with the review and negotiation of this Agreement within fifteen (15) days after Executive submits to the Company documentation with respect to such legal fees and disbursements, but in no even shall such reimbursement be paid later than December 31, 2014.
		

		
			 
		

		
			3.          PROPRIETARY INFORMATION, INVENTIONS, NON-COMPETITION AND NON-SOLICITATION OBLIGATIONS.
		

		
			 
		

		
			3.1          Agreement. As a condition of employment, Executive agrees to execute and abide by the Employee Nondisclosure and Developments Agreement (the "Proprietary Information Agreement"), which may be amended by the parties from time to time without regard to this Agreement. The Proprietary Information Agreement contains provisions that are intended by the parties to survive and do survive termination or expiration of this Agreement.
		

		
			 
		

		
			4.          OUTSIDE ACTIVITIES.
		

		
			 
		

		
			4.1          Other Employment/Enterprise. Except with the prior written consent of the Board, Executive will not, while employed by the Company, undertake or engage in any other employment, occupation or business enterprise, other than those in which Executive is a passive investor. Executive may engage in limited advisory relationships with and serve on the boards of other companies (provided such companies are not in competitive markets), scientific research, scholarly 
		

		 

 

		writing and publications, and civic and not-for-profit activities so long as such activities do not materially interfere with the performance of Executive's duties hereunder.
		

		
			 
		

		
			4.2          Conflicting Interests. Except as permitted by Section 4.3, while employed by the Company, Executive agrees not to acquire, assume or participate in, directly or indirectly, any position, investment or interest known by Executive to be adverse or antagonistic to the Company, its business or prospects, financial or otherwise.
		

		
			 
		

		
			4.3          Competing Enterprise. While employed by the Company, except on behalf of the Company, Executive will not directly or indirectly, whether as an officer, director, stockholder, partner, proprietor, associate, representative, consultant, or in any capacity whatsoever engage in, become financially interested in, be employed by or have any business connection with any other person, corporation, firm, partnership or other entity whatsoever which were known by Executive to compete directly with the Company, throughout the world, in any line of business engaged in (or then currently planned to be engaged in) by the Company; provided, however, that anything above to the contrary notwithstanding, Executive may own, as a passive investor, securities of any public competitor corporation, so long as Executive's direct holdings in any one such corporation shall not in the aggregate constitute more than 2% of the voting stock of such corporation.
		

		
			 
		

		
			5.          FORMER EMPLOYMENT.
		

		
			 
		

		
			5.1          No Conflict With Existing Obligations. Executive represents that Executive's performance of all the terms of this Agreement and as an Executive of the Company do not and will not materially breach any agreement or obligation of any kind made prior to Executive's employment by the Company, including agreements or obligations Executive may have with prior employers or entities for which Executive has provided services. Executive has not entered into, and agrees Executive will not enter into, any agreement or obligation, either written or oral, in conflict herewith.
		

		
			 
		

		
			5.2          No Disclosure of Confidential Information. If, in spite of Section 5.1, Executive should find that confidential information belonging to any former employer might be usable in connection with the Company's business, Executive will not intentionally disclose to the Company or use on behalf of the Company any confidential information belonging to any of Executive's former employers (except in accordance with agreements between the Company and any such former employer); but during Executive's employment by the Company Executive will use in the performance of Executive's duties all information which is generally known and used by persons with training and experience comparable to Executive's own and all information which is common knowledge in the industry or otherwise legally in the public domain.
		

		
			 
		

		
			6.          TERMINATION OF EMPLOYMENT. The parties acknowledge that Executive's employment relationship with the Company is at-will. Either Executive or the Company may terminate the employment relationship at any time, with or without Cause. The provisions of Sections 6.1 through 6.6 govern the amount of compensation, if any, to be provided to Executive upon termination of employment and do not alter this at-will status.
		

		
			 
		

		
			6.1          Termination by the Company Without Cause.
		

		
			 
		

		
			(a)          The Company shall have the right to terminate Executive's employment with the Company at any time without Cause (as defined in Section 6.2(b) below) by giving notice as described in Section 6.6 of this Agreement.
		

		
			 
		

		

		

		 

 

		(b)          In the event Executive's employment is terminated without Cause then provided that the Executive executes a general release in favor of the Company, in form and substance reasonably acceptable to the Company (the "Release"), which Release is effective as of the date required by the Release agreement, but in no event later than 60 days following Executive's separation from service (as defined under Treasury Regulation Section l.409A-l(h), and without regard to any alternate definition thereunder, a "Separation from Service"), and subject to Section 6.1(c), then:
		

		
			 
		

		
			(i)          the Company shall continue to pay Executive as severance Executive's then-effective Base Salary for a period of the first six (6) months following Executive's Separation from Service (the "Severance Period"), less applicable withholdings and deductions, on the Company's regular payroll dates;
		

		
			 
		

		
			(ii)          if Executive is participating in the Company's group health insurance plans on the Separation from Service, and Executive timely elects and remains eligible for continued coverage under COBRA, or, if applicable, state insurance laws, the Company shall pay that portion of Executive's COBRA premiums that the Company was paying prior to the Separation from Service for the Severance Period or for the continuation period for which Executive is eligible, whichever is shorter (such shorter period, the "COBRA Payment Period”). The Company's COBRA premium payment obligation will end immediately if the Executive obtains health care insurance from any other source during the Severance Period. However, if at any time the Company determines, in its discretion, that the payment of the COBRA premiums would be reasonably likely to result in a violation of the nondiscrimination rules of Section 105(h)(2) of the Internal Revenue Code of 1986, as amended (the "Code") or any statute or regulation of similar effect (including, without limitation, the 2010 Patient Protection and Affordable Care Act, as amended by the 2010 Health Care and Education Reconciliation Act), then in lieu of providing the Company's portion of the COBRA premiums, the Company will instead pay Executive, on the first day of each month of the remainder of the COBRA Payment Period, a fully taxable cash payment equal to the portion of the COBRA premiums that the Company was paying prior to the date of Executive's Separation from Service for that month, subject to applicable tax withholdings and deductions.
		

		
			 
		

		
			(c)          The Company will not make any payments to Executive with respect to any of the benefits pursuant to Section 6.1(b) prior to the 60th day following Executive's Separation from Service. On the 60th day following Executive's Separation from Service, and provided that Executive has delivered an effective Release, the Company will make the first payment to Executive under Section 6.1(b) in a lump sum equal to the aggregate amount of payments that the Company would have paid Executive through such date had the payments commenced on the date of Executive's Separation from Service through such 60th day, with the balance of the payments paid thereafter on the schedule described above, subject to any delay in payment required by Section 7.11.
		

		
			 
		

		
			(d)          The benefits provided to Executive pursuant to this Section 6.1 are in lieu of, and not in addition to, any benefits to which Executive may otherwise be entitled under any Company severance plan, policy or program.
		

		
			 
		

		
			6.2          Termination by the Company for Cause.
		

		
			 
		

		
			(a)          The Company shall have the right to terminate Executive's employment with the Company at any time for Cause by giving notice as described in Section 6.6 of this Agreement.
		

		
			 
		

		
			(b)          "Cause"  for termination shall mean: (i) Executive's commission of 
		

		 

 

		any act constituting a felony or a crime involving fraud or moral turpitude; (ii) Executive's wrongful act or omission which results in material harm to the Company; (iii) Executive's willful violation of any material Company policy that has, prior to any alleged violation, been communicated in writing to the Executive, and which results in material harm to the Company; (iv) Executive's material breach of any written agreement between the Executive and the Company which results in material harm to the Company; (v) Executive's conduct that demonstrates gross unfitness to serve the Company as determined in the sole discretion of the Board; or (vi) breach of fiduciary duty by Executive which results in an improper benefit to Executive or material harm to the Company, its shareholders, or their respective interests.
		

		
			 
		

		
			(c)          In the event Executive's employment is terminated at any time for Cause, Executive will not be entitled to receive severance pay or any other such severance compensation, except that, pursuant to the Company's standard payroll policies, the Company shall pay to Executive the accrued but unpaid salary of Executive through the date of termination, together with all compensation and benefits payable to Executive through the date of termination under any compensation or benefit plan, program or arrangement during such period.
		

		
			 
		

		
			6.3          Resignation by the Executive.
		

		
			 
		

		
			(a)          Executive may resign from Executive's employment with the Company at any time by giving notice as described in Section 6.6.
		

		
			 
		

		
			(b)          In the event Executive resigns from Executive's employment with the Company (other than for Good Reason as set forth in Section 6.4), Executive will not receive severance pay or any other such severance compensation, except that, pursuant to the Company's standard payroll policies, the Company shall pay to Executive the accrued but unpaid salary of Executive through the date of resignation, together with all compensation and benefits payable to Executive through the date of resignation under any compensation or benefit plan, program or arrangement during such period.
		

		
			 
		

		
			6.4          Resignation by the Executive for Good Reason.
		

		
			 
		

		
			(a)          Provided Executive has not previously been notified of the Company's intention to terminate Executive's employment, the Executive may resign from Executive's employment for "Good Reason"  within sixty (60) days after the initial occurrence of one of the events specified in Section 6.4(b) below, by giving notice as described in Section 6.6 of this Agreement.
		

		
			 
		

		
			(b)          "Good Reason"  for resignation shall mean the occurrence of any of the following without the Executive's prior written consent: (i) a material diminution of Executive's authority, responsibilities or duties; provided, however, that the acquisition of the Company and subsequent conversion of the Company to a division or unit of the acquiring company will not by itself result in a diminution of Executive's responsibilities or duties; (ii) a material diminution by the Company in Executive's Base Salary; (iii) the Company's requiring Executive to be based anywhere other than the Company's offices in New York, NY, notwithstanding that Executive's job may require travel from time to time, and such travel shall not constitute Good Reason herein, or (iv) a material breach of this Agreement by the Company; provided, that prior to any termination for Good Reason pursuant this Section 6.4(b), the Executive shall first provide the Board reasonable written notice within thirty (30) days of the initial occurrence of one of the events specified in clauses (i), (ii), (iii) or (iv) of this Section 6.4(b), setting forth the reasons that the Executive believes exist that give rise to "Good Reason" for resignation, stating that the Company shall have thirty (30) business days to 
		

		 

 

		cure such "Good Reason", and the "Good Reason" has not been cured by the Company within thirty (30) business days after such notice has been delivered. Notwithstanding the foregoing, any actions taken by the Company to accommodate a disability of the Executive or pursuant to the Family and Medical Leave Act shall not be a Good Reason for purposes of this Agreement.
		

		
			 
		

		
			(c)          In the event Executive resigns from Executive's employment for Good Reason, and subject to Section 6.4(d), the Executive shall be entitled to receive the same payments and benefits as Executive would receive under Section 6.1 had Executive been terminated by the Company without Cause, provided that Executive executes a Release in favor of the Company that meets the criteria specified in Section 6.1(b) and that Executive's receipt of the payments and benefits are subject to all the terms and conditions of Section 6.1(c).
		

		
			 
		

		
			(d)          Executive shall not receive any of the benefits pursuant to Section 6.4(c) unless and until the Release becomes effective and can no longer be revoked by Executive under its terms.
		

		
			 
		

		
			(e)          The benefits provided to the Executive pursuant to this Section 6.4 are in lieu of, and not in addition to, any benefits to which Executive may otherwise be entitled under any Company severance plan, policy or program.
		

		
			 
		

		
			6.5          Termination by Virtue of Death or Disability of the Executive.
		

		
			 
		

		
			(a)          In the event of Executive's death during the term of this Agreement, all obligations of the parties hereunder shall terminate immediately, and the Company shall, pursuant to the Company's standard payroll policies, pay to the Executive's legal representatives Executive's accrued but unpaid salary through the date of death together with all compensation and benefits payable to Executive through the date of death under any compensation or benefit plan, program or arrangement during such period
		

		
			 
		

		
			(b)          Subject to applicable state and federal law, the Company shall at all times have the right, upon written notice to the Executive, to terminate this Agreement based on the Executive's Disability (as defined below). Termination by the Company of the Executive's employment based on "Disability"  shall mean termination because the Executive is unable to perform the essential functions of Executive's position with or without accommodation due to a disability (as such term is defined in the Americans with Disabilities Act) for six months in the aggregate during any twelve month period. This definition shall be interpreted and applied consistent with the Americans with Disabilities Act, the Family and Medical Leave Act and other applicable law. In the event Executive's employment is terminated based on the Executive's Disability, Executive will not receive severance pay or any other such compensation; provided, however, the Company shall, pursuant to the Company's standard payroll policies, pay to Executive the accrued but unpaid salary of Executive through the date of termination, together with all compensation and benefits payable to Executive through the date of termination under any compensation or benefit plan, program or arrangement during such period.
		

		
			 
		

		

		

		 

 

		6.6          Notice; Effective Date of Termination.
		

		
			 
		

		
			(a)          Termination of Executive's employment pursuant to this Agreement shall be effective on the earliest of:
		

		
			 
		

		
			(i)          immediately after the Company gives written notice to Executive of Executive's termination without Cause, unless the Company specifies a later date, in which case, termination shall be effective as of such later date;
		

		
			 
		

		
			(ii)          immediately after the Company gives written notice to Executive of Executive's termination or Cause;
		

		
			 
		

		
			(iii)          immediately upon the Executive's death;
		

		
			 
		

		
			(iv)          thirty (30) days after the Company gives written notice to Executive of Executive's termination on account of Executive's Disability, unless the Company specifies a later date, in which case, termination shall be effective as of such later date, provided, that Executive has not returned to the full time performance of Executive's duties prior to such date;
		

		
			 
		

		
			(v)          thirty (30) days after the Executive gives written notice to the Company of Executive's resignation without Good Reason, unless the Company agrees to a different date at any time between the date of notice and the date of resignation, in which case the Executive's resignation shall be effective as of such other date; or
		

		
			 
		

		
			(vi)          upon the end of the thirty (30) day cure period as provided in Section 6.4(b) above (in the case of a resignation for Good Reason), if the "Good Reason" has not been cured by the Company within such thirty (30) day cure period and Executive otherwise fully complies with the procedures set forth in Section 6.4(b) above, unless the Company agrees to a different date at any time between the date of notice and the date of resignation, in which case the Executive's resignation shall be effective as of such other date.
		

		
			 
		

		
			(b)          Executive will receive compensation through any required notice period in the event of termination for any reason. However, the Company reserves the right to require that the Executive not perform any services or report to work during any required notice period.
		

		
			 
		

		
			7. GENERAL PROVISIONS.
		

		
			 
		

		
			7.1          Notices. Any notices provided hereunder must be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by electronic mail, telex or confirmed facsimile if sent during normal business hours of the recipient, and if not, then on the next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the Company at its primary office location and to Executive at Executive's address as listed on the Company payroll, or at such other address as the Company or the Executive may designate by ten (10) days advance written notice to the other.
		

		
			 
		

		
			7.2          Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law 
		

		 

 

		or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provisions had never been contained herein.
		

		
			 
		

		
			7.3          Waiver. If either party should waive any breach of any provisions of this Agreement, Executive or it shall not thereby be deemed to have waived any preceding or succeeding breach of the same or any other provision of this Agreement.
		

		
			 
		

		
			7.4          Complete Agreement. This Agreement, together with the Proprietary Information Agreement, constitutes the entire agreement between Executive and the Company with regard to the subject matter hereof. This Agreement is the complete, final and exclusive embodiment of their agreement with regard to this subject matter and supersedes any prior oral discussions or written communications and agreements. This Agreement is entered into without reliance on any promise or representation other than those expressly contained herein, and it cannot be modified or amended except in writing signed by Executive and an authorized officer of the Company.
		

		
			 
		

		
			7.5          Counterparts.  This Agreement may be executed in separate counterparts, any one of which need not contain signatures of more than one party, but all of which taken together will constitute one and the same Agreement.
		

		
			 
		

		
			7.6          Headings. The headings of the sections hereof are inserted for convenience only and shall not be deemed to constitute a part hereof nor to affect the meaning thereof.
		

		
			 
		

		
			7.7          Successors and Assigns. This Agreement is intended to bind and inure to the benefit of and be enforceable by Executive and the Company, and their respective successors, assigns, heirs, executors and administrators, except that Executive may not assign any of Executive's duties hereunder and Executive may not assign any of Executive's rights hereunder without the written consent of the Company.
		

		
			 
		

		
			7.8          Survival. Executive's obligations under the Proprietary Information Agreement shall survive termination of Executive's employment with the Company, as provided therein.
		

		
			 
		

		
			7.9          Choice of Law. All questions concerning the construction, validity and interpretation of this Agreement will be governed by the law of the State of Maryland.
		

		
			 
		

		
			7.10          Resolution of Disputes. Any controversy arising out of or relating to this Agreement or the breach hereof shall be settled by binding arbitration in accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration Association and judgment upon the award rendered may be entered in any court having jurisdiction thereof. The location for the arbitration shall be Baltimore, MD metropolitan area. Any award made by such panel shall be final, binding and conclusive on the parties for all purposes, and judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction thereof. The arbitrators' fees and expenses and all administrative fees and expenses associated with the filing of the arbitration shall be borne by the Company; provided, however, that at Executive's option, Executive may voluntarily pay up to one-half the costs and fees. The parties acknowledge and agree that their obligations under this arbitration agreement survive the termination of this Agreement and continue after the termination of the employment relationship between Executive and the Company.
		

		
			 
		

		

		

		 

 

		7.11          Application of Section 409(A). It is intended that all of the benefits provided under this Agreement satisfy, to the greatest extent possible, the exemptions from the application of Section 409A of the Code and the regulations and other guidance thereunder and any state law of similar effect (collectively, "Section 409A") provided under Treasury Regulations Sections 1.409A-1(b)(4), 1.409A-1(b)(5), and 1.409A-1(b)(9), and this Agreement will be construed to the greatest extent possible as consistent with those provisions. To the extent not so exempt, this Agreement (and any definitions in this Agreement) will be construed in a manner that complies with Section 409A, and incorporates by reference all required definitions and payment terms. For purposes of Section 409A (including, without limitation, for purposes of Treasury Regulations Section 1.409A-2(b)(2)(iii)), Executive's right to receive any installment payments under this Agreement will be treated as a right to receive a series of separate payments and, accordingly, each installment payment under this Agreement will at all times be considered a separate and distinct payment. Notwithstanding anything to the contrary set forth herein, any payments and benefits provided under this Agreement (or under any other arrangement with Executive) that constitute "deferred compensation" shall not commence in connection with Executive's termination of employment unless and until Executive has also incurred a Separation from Service. If the Company determines that any of the payments or benefits upon a Separation from Service provided under this Agreement (or under any other arrangement with Executive) constitute "deferred compensation" under Section 409A and if Executive is a "specified employee" of the Company (as defined in Section 409A(a)(2)(B)(i) of the Code) at the time of his Separation from Service, then, solely to the extent necessary to avoid the incurrence of the adverse personal tax consequences under Section 409A, the timing of the payments upon a Separation from Service will be delayed as follows: on the earlier to occur of (i) the date that is six months and one day after the effective date of Executive's Separation from Service, and (ii) the date of Executive's death (the earlier date, the "Delayed Initial Payment Date"), the Company will (A) pay to Executive a lump sum amount equal to the sum of the payments upon Separation from Service that Executive would otherwise have received through the Delayed Initial Payment Date if the commencement of the payments had not been delayed pursuant to this Section 7.11, and (B) begin paying the balance of the payments in accordance with the applicable payment schedules set forth above. No interest will be due on any amounts so deferred.
		

		
			 
		

		
			7.12          Golden Parachute Excise Tax. The Company and Executive agree that Executive's execution of a non-competition agreement is a material inducement to the severance payments and benefits provided pursuant to this Agreement, and the Company further agrees such severance payments and benefits are payable on account of such non-competition agreement. Notwithstanding the foregoing, if any payment or benefit Executive would receive from the Company or otherwise in connection with a Change in Control (as defined in the Plan) or other similar transaction ("Payment") would (i) constitute a "parachute payment" within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the "Excise Tax"), then such Payment will be equal to the Reduced Amount. The "Reduced Amount" will be either (x) the largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax, or (y) the largest portion, up to and including the total, of the Payment, whichever amount ((x) or (y)), after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in Executive's receipt of the greater economic benefit notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a Reduced Amount will give rise to the greater after tax benefit, the reduction in the Payments will occur in the following order: (a) reduction of cash payments; (b) cancellation of accelerated vesting of equity awards other than stock options; (c) cancellation of accelerated vesting of stock options; and (d) reduction of other benefits paid to Executive. Within any such category of payments and benefits (that is, (a), (b), (c) or (d)), a reduction will occur first with respect to amounts that are not "deferred compensation" within the 
		

		 

 

		meaning of Section 409A and then with respect to amounts that are. In the event that acceleration of compensation from Executive's equity awards is to be reduced, such acceleration of vesting will be canceled, subject to the immediately preceding sentence, in the reverse order of the date of grant.    
		

		
			 
		

		
			The registered public accounting firm engaged by the Company for general audit purposes as of the day prior to the effective date of the event described in Section 280G(b)(2)(A)(i) of the Code will perform the foregoing calculations. If the registered public accounting firm so engaged by the Company is serving as accountant or auditor for the acquirer or is otherwise unable or unwilling to perform the calculations, the Company will appoint a nationally recognized firm that has expertise in these calculations to make the determinations required hereunder. The Company will bear all expenses with respect to the determinations by such independent registered public accounting firm required to be made hereunder. The firm engaged to make the determinations hereunder will provide its calculations, together with detailed supporting documentation, to the Company and Executive within thirty (30) calendar days after the date on which Executive's right to a Payment is triggered (if requested at that time by the Company or Executive) or such other time as reasonably requested by the Company or Executive. Any good faith determinations of the independent registered public accounting firm made hereunder will be final, binding and conclusive upon the Company and Executive.
		

		
			 
		

		
			IN WITNESS WHEREOF,  the parties have executed this Key Employee Agreement on the Effective Date.
		

		
			 
		

			
					
						 

					
					
						MILLENNIAL MEDIA, INC.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Robin Eletto

				
	
					
						 

					
					
						 

					
					
						NAME: Robin Eletto

				
	
					
						 

					
					
						 

					
					
						TITLE: EVP/Chief People Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						/s/ Jason Kelly

				
	
					
						 

					
					
						Jason Kelly

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