Document:

EX-10.22

 Exhibit 10.22 

Confidential Materials omitted and filed separately with the Securities and Exchange Commission. 

Double asterisks denote omissions. 

LICENSE AGREEMENT 
 by
and between 
 ARGOS THERAPEUTICS, INC. 

and 
 MEDINET CO, LTD.

 LICENSE AGREEMENT 

THIS LICENSE AGREEMENT (the “Agreement”), effective as of December 27, 2013 (the “Effective Date”), is
by and between Argos Therapeutics, Inc., a corporation organized and existing under the laws of Delaware (“Argos”), and Medinet Co., Ltd., a corporation organized and existing under the laws of Japan (“Medinet”).

 RECITALS: 

WHEREAS, Argos controls a proprietary immunotherapy system referred to as
“Arcelis®” for the production of personalized therapeutic products for the treatment of cancer and infectious disease; 

WHEREAS, Argos is developing a proprietary therapeutic product referred to as “AGS-003” based on the Arcelis® system targeting the treatment of metastatic renal cell carcinoma (“mRCC”), including through the conduct of a Phase III clinical study sponsored by Argos and referred to as
“ADAPT”; 
 WHEREAS, Medinet desires to develop and manufacture the AGS-003 product for the treatment of mRCC in Japan;

 WHEREAS, Medinet desires an option to commercialize the AGS-003 products for the treatment of mRCC as set forth in this Agreement
in Japan; 
 WHEREAS, the parties desire for Medinet to loan Argos funds in order to enable Argos to accelerate the development of
the product based on Arcelis® system; and 
 WHEREAS, Argos and Medinet
believe that a license, option and loan for such purposes on the terms and conditions of this Agreement would be desirable. 
 NOW,
THEREFORE, in consideration of the foregoing premises and the mutual covenants herein contained, the Parties hereby agree as follows: 

1. DEFINITIONS 
 Unless
specifically set forth to the contrary herein, the following terms, whether used in the singular or plural, shall have the respective meanings set forth below: 

1.1 “Affiliate” means a corporation or non-corporate business entity that, directly or indirectly, controls, is controlled
by, or is under common control with the Person specified, for so long as such control continues. An entity will be regarded as in control of another entity if: (a) it owns, directly or indirectly, at least 50% of the voting securities or
capital stock of such entity, or has other comparable ownership interest with respect to any entity other than a corporation; or (b) it possesses, directly or indirectly, the power to direct or cause the direction of the management and policies
of the corporation or non-corporate business entity, as applicable, whether through the ownership or control of voting securities, by contract or otherwise. 

1.2 “Argos Indemnitees” has the meaning set forth in Section 12.5.1. 

  
 1 

 1.3 “Argos In-License” means an agreement between Argos and a Third Party
pursuant to which Argos has rights and obligations with respect to, or which otherwise Cover, the Licensed Product and is necessary to Develop, Commercialize and/or Manufacture the Licensed Product in the Field in the Territory. 

1.4 “Argos Know-How” means Know-How Controlled by Argos during the Term that is reasonably necessary or useful for Medinet
and its Related Parties to perform their obligations or exploit their rights under this Agreement with respect to products incorporating Argos’ Arcelis Personalized Immunotherapy Platform for the treatment of tumors or pathogen infection, as
such platform is more particularly described on Schedule A attached hereto. For the avoidance of doubt, Argos Know-How shall not include Know-How associated with or relating to Automated Systems, dendritic cell transfected with IL4 RNA for
the treatment of unwanted autoimmune responses, anti-interferon alpha antibodies, soluble CD83 or regulatory T cells. 
 1.5 “Argos
Patent Rights” means those Patent Rights Controlled by Argos during the Term that relate to Argos’ Arcelis Personalized Immunotherapy Platform for the treatment of tumors and that are reasonably necessary or useful for Medinet and its
Related Parties to perform their obligations or exploit their rights under this Agreement with respect to the Licensed Product in the Field in the Territory, including without limitation, the Patent Rights set forth in Schedule B of this
Agreement. For the avoidance of doubt, Argos Patent Rights shall not include patent rights associated with or relating to dendritic cell transfected with IL4 RNA for the treatment of unwanted autoimmune responses, anti-interferon alpha antibodies,
soluble CD83 or regulatory T cells. 
 1.6 “Argos Technology” means, collectively, Argos Know-How and Argos Patent Rights.

 1.7 “Argos Trademark” has the meaning set forth in Section 13.8.2. 

1.8 “Automated Systems” means the automated cellular and RNA systems used from time to time to Manufacture Licensed Product,
as such systems are generally described in Schedule C attached hereto. 
 1.9 “Bankrupt Party” has the meaning set
forth in Section 14.2.3(c). 
 1.10 “Calendar Quarter” means the respective periods of three (3) consecutive
calendar months ending on March 31, June 30, September 30 and December 31; provided, that (a) the first Calendar Quarter of the Term shall begin on the Effective Date and end on the first to occur of
March 31, June 30, September 30 or December 31 thereafter and the last Calendar Quarter of the Term shall end on the last day of the Term, and (b) the first Calendar Quarter of a Royalty Term for the Licensed
Product shall begin on the First Commercial Sale of the Licensed Product and end on the first to occur of March 31, June 30, September 30 or December 31 thereafter and the last Calendar Quarter of a Royalty Term shall end on the
last day of such Royalty Term. 
 1.11 “Calendar Year” means each successive period of twelve (12) months commencing
on January 1 and ending on December 31; provided, that (a) the first Calendar Year of the Term shall begin on the Effective Date and end on the first December 31 thereafter and the last Calendar Year of the Term shall end
on the last day of the Term, and (b) the first Calendar Year of a Royalty Term for the Licensed Product shall begin on the First Commercial Sale of the Licensed Product and end on the first December 31 thereafter and the last Calendar Year
of the Term shall end on the last day of such Royalty Term. 

  
 2 

 1.12 “CMO License” has the meaning set forth in Section 2.1. 

1.13 “Code” has the meaning set forth in Section 14.2.3(c). 

1.14 “Commercialization” or “Commercialize” means any and all activities directed to Developing, marketing,
promoting, distributing, importing, exporting, offering to sell and/or selling the Licensed Product, including the activities directed to obtaining pricing and reimbursement approvals, as applicable. 

1.15 “Commercialization License” has the meaning set forth in Section 3.2. 

1.16 “Commercialization Plan” has the meaning set forth in Section 10.3. 

1.17 “Commercially Reasonable Efforts” means the carrying out of obligations in a diligent and sustained manner using
such effort and employing such resources as would normally be exerted or employed by a similarly situated pharmaceutical company for a product of similar market or profit potential or strategic value at a similar stage of its product life. 

1.18 “Commitment Fee” has the meaning set forth in Section 9.1. 

1.19 “Conditional Regulatory Approval” means the granting of Regulatory Approval of the Licensed Product for the Field in the
Territory that requires the holder of such Regulatory Approval to conduct more safety and/or efficacy studies after the initial marketing of the Licensed Product. 

1.20 “Confidential Information” means any and all information and data, including without limitation all scientific,
pre-clinical, clinical, regulatory, manufacturing, marketing, financial, trade secret and commercial information or data, whether communicated in writing or orally or by any other method, which is provided by one Party to the other Party in
connection with this Agreement. Argos Technology is Confidential Information of Argos. Medinet Improvements are Confidential Information of Medinet. Joint IP is the Confidential Information of the Parties. 

1.21 “Control”, “Controls” or “Controlled by” means, with respect to any (a) material, Know-How or
other information or (b) intellectual property right, the possession of (whether by ownership or license, other than pursuant to this Agreement), or the ability of a Party or its Affiliates to assign, transfer, grant access to, or a license or
sublicense of, such item or right as provided for herein without violating the terms of any agreement or other arrangement with any Third Party existing at the time such Party would be required hereunder to assign, transfer or grant the other Party
such access or license or sublicense. 
 1.22 “Cover,” “Covering” or “Covers” means that in the absence
of a license granted under a Valid Claim, the Development, Manufacture or Commercialization of the Licensed Product would or is reasonably likely to infringe such Valid Claim. 

  
 3 

 1.23 “Current Medinet Facility” means Medinet’s operating facility located
at Shin-yokohama, Osaka, Fukuoka, and Tokyo Univ. 
 1.24 “Data” means all manufacturing, non-clinical and clinical data
related to the Licensed Product in the Field. 
 1.25 “Development,” “Developing” or “Develop”
means the research and development activities related to the generation, characterization, optimization, construction, expression, use production, seeking Regulatory Approval of the Licensed Product, any other research and development activities
related to the pre-clinical testing and qualification of the Licensed Product for clinical testing, and such other tests, studies and activities as may be required or recommended from time to time by any Regulatory Authority to obtain Regulatory
Approval of the Licensed Product, including toxicology studies, statistical analysis and report writing, pre-clinical testing, clinical studies and regulatory affairs, product approval and registration activities. 

1.26 “Dispute” has the meaning set forth in Section 15.11.1. 

1.27 “Effective Date” has the meaning set forth in the preamble. 

1.28 “Excluded Claim” has the meaning set forth in Section 15.11.1. 

1.29 “Field” means the treatment of mRCC using dendritic cells loaded with RNA encoding Uncharacterized Antigens. 

1.30 “First Commercial Sale” means, with respect to the Licensed Product, the first sale for end use or consumption of such
Licensed Product after all required Regulatory Approvals have been granted by the Regulatory Authority. 
 1.31 “GAAP”
means generally accepted accounting principles in the United States, or internationally, as appropriate, consistently applied. 
 1.32
“ICC” has the meaning set forth in Section 15.11.1. 
 1.33 “IND” means an Investigational New Drug
application, Clinical Trial Application or similar application or submission for approval to conduct human clinical investigations filed with or submitted to a Regulatory Authority in conformance with the requirements of such Regulatory Authority.

 1.34 “Indemnitee” has the meaning set forth in Section 12.5.4. 

1.35 “Infringement Claim” has the meaning set forth in Section 13.5.1. 

1.36 “In-Licenses” means, collectively, the Argos In-Licenses and the Medinet In-Licenses. 

1.37 “Joint IP” has the meaning set forth in Section 13.2. 

  
 4 

 1.38 “Know-How” means all biological materials and other tangible materials,
inventions, practices, methods, protocols, formulas, knowledge, know-how, trade secrets, processes, assays, skills, experience, techniques and results of experimentation and testing, including without limitation pharmacological, toxicological and
pre-clinical and clinical test data and stability, analytical and quality control data, patentable or otherwise. 
 1.39
“Knowledge,” with respect to a Party, means the actual knowledge of any of the executive officers of such Party. 
 1.40
“Licensed Product” means any product developed, manufactured or sold utilizing the Argos Technology. 
 1.41 “Licensed
Product Trademarks” has the meaning set forth in Section 13.8.2. 
 1.42 “Losses” has the meaning set forth
in Section 12.5.1. 
 1.43 “Manufacturing” or “Manufacture” means, as applicable, all activities
associated with the production, manufacture, processing, filling, finishing, packaging, labeling, shipping, and storage of the Licensed Product, including process and formulation development, process validation, stability testing, manufacturing
scale-up, pre-clinical, clinical and commercial manufacture and analytical development, product characterization, quality assurance and quality control development, testing and release.  

1.44 “Medinet Improvements” mean any improvements, ideas, inventions, developments, derivatives, modifications, technologies,
discoveries, know-how and techniques, whether or not patentable, conceived or reduced to practice by Medinet or Related Parties during the Term that cover or relate to Argos Technology, the Automated System or Licensed Product. 

1.45 “Medinet Indemnitees” has the meaning set forth in Section 12.5.2. 

1.46 “Medinet In-License” means an agreement between Medinet and a Third Party pursuant to which Medinet has rights and
obligations with respect to, or which otherwise Cover, the Licensed Product, its Manufacture, or a reagent or component for its Manufacture and is necessary to Develop, Commercialize and/or Manufacture such Licensed Product in the Field. 

1.47 “Medinet Trademark” has the meaning set forth in Section 13.8.2. 

1.48 “Milestone Payment” has the meaning set forth in Section 9.2.3. 

1.49 “mRCC” has the meaning set forth in the recitals. 

1.50 “Necessary Third Party IP” means Know-How or Patent Rights owned or controlled by a Third Party that Cover the
Development, Manufacturing and/or Commercialization of the Licensed Product. 
 1.51 “Net Sales” means the total amount
actually received by Medinet or its Related Parties in connection with sales of the Licensed Product to any Third Party, after deduction of all the following to the extent applicable to such sales: 

(a) all trade, case and quantity credits, discounts, refunds or rebates, including without limitation rebates accrued, incurred or paid to any
governmental agency and any other price reductions required by any governmental agency; 

  
 5 

 (b) allowances or credits for returns, including without limitation amounts received for sales
which become the subject of a subsequent temporary or partial recall by a regulatory agency for safety or efficacy reasons outside the control of a Party, and retroactive price reductions (including Medicaid, managed care and similar types of
rebates); 
 (c) cost of freight, postage, and freight insurance, (if paid by seller); 

(d) sales taxes, value added taxes, excise taxes, and customs duties; and 

(e) cost of export licenses and any taxes (excluding income taxes or similar taxes), fees or other charges associated with the exportation or
importation of Licensed Product. 
 Net Sales shall be calculated in accordance with GAAP. 

A sale or transfer to a Related Party for re-sale by such Related Party shall not be considered a sale for the purpose of this provision but
the resale by such Related Party to a Third Party shall be a sale for such purposes. Any amounts received by Medinet or its Related Parties in exchange for Licensed Product transferred or provided to any person or entity for use in testing, clinical
trials for obtaining Regulatory Approval, compassionate use, or as marketing samples to develop or promote the Licensed Product are expressly excluded from the definition of Net Sales. In the event that the Licensed Product is sold in conjunction
with a product or service (e.g., as a bundled or combination therapy) that is not the Licensed Product, “Net Sales” with respect to such conjoined sale shall be deemed to mean that portion of the total proceeds proportionate to the
value attributable to the Argos Technology that Covers such bundled or combination therapy. In the event of a dispute with respect to the proper allocation of value, the provisions of Section 15.11 shall apply. 

1.52 “New Medinet Facility” has the meaning set forth in Section 2.3.2. 

1.53 “Option” has the meaning set forth in Section 3.1. 

1.54 “Non-Bankrupt Party” has the meaning set forth in Section 14.2.3(c). 

1.55 “Party” means Medinet or Argos; “Parties” means Medinet and Argos. 

1.56 “Patent Expenses” has the meaning set forth in Section 13.3.6. 

1.57 “Patent Rights” means all patents (including all reissues, extensions, substitutions, confirmations, re-registrations,
re-examinations, invalidations, supplementary protection certificates and patents of addition) and patent applications (including all provisional applications, requests for continuation, continuations, continuations-in-part and divisions) and all
foreign equivalents of the foregoing. 
 1.58 “Person” means any individual, corporation, company, partnership, trust,
incorporated or unincorporated association, joint venture or other entity of any kind. 

  
 6 

 1.59 “Pharmacovigilance Agreement” has the meaning set forth in
Section 10.9.2. 
 1.60 “Promissory Note” has the meaning set forth in Section 9.1. 

1.61 “Promotional Materials” has the meaning set forth in Section 10.6. 

1.62 “Recoveries” has the meaning set forth in Section 13.4.4. 

1.63 “Regulatory Approval” means any and all approvals (including pricing and reimbursement approvals), licenses,
registrations or authorizations of any Regulatory Authority, necessary for the Development, Commercialization and Manufacture of the Licensed Product. 

1.64 “Regulatory Authority” means any applicable government regulatory authority involved in granting approvals for the
Development, Manufacturing, Commercialization, reimbursement and/or pricing of the Licensed Product. 
 1.65 “Related
Party” means a Party’s Affiliates and Sublicensees 
 1.66 “Royalty Term” has the meaning set forth in
Section 9.2.9. 
 1.67 “Sublicense Agreement” means a written agreement between Medinet (or its Affiliate) and a Third
Party in which Medinet grants a sublicense to such Third Party of rights licensed by Argos to Medinet pursuant to this Agreement. 
 1.68
“Sublicensee” means a Third Party to whom Medinet grants a sublicense under the rights granted to Medinet by Argos hereunder. 

1.69 “Term” has the meaning set forth in Section 14.1. 

1.70 “Territory” means Japan. 

1.71 “Third Party” means an entity other than a Party and its Affiliates. 

1.72 “United States” means the United States of America and its territories, possessions and commonwealths. 

1.73 “Uncharacterized Antigen” means any unknown or uncharacterized antigen. For the avoidance of doubt, a
preparation, or any fractional preparation of total tumor RNA is a preparation that contains exogenous Uncharacterized Antigens. 
 1.74
“Upfront Option Fee” has the meaning set forth in Section 9.2.1. 
 1.75 “Valid Claim” means a claim of:
(a) an issued and unexpired Argos Patent Right, which claim has not been revoked or held unenforceable, unpatentable or invalid by a decision of a court or other governmental agency of competent jurisdiction, which is not appealable or has not
been appealed within the time allowed for appeal, and which has not been abandoned, disclaimed, denied or admitted to be invalid or unenforceable through reissue, re-examination or disclaimer or otherwise, or (b) a patent application for a
patent included within the Argos Patent Rights which has been pending for less than [**] years and that has not been cancelled, withdrawn or abandoned or finally rejected by an administrative agency action from which no appeal can be taken. 

  
 7 

 2. MANUFACTURING LICENSE 

2.1 License Grant. Subject to the terms and conditions of this Agreement, Argos hereby grants Medinet an exclusive, royalty-free
license under and to Argos Technology to Manufacture the Licensed Product in the Territory solely for the purpose of the Commercialization of the Licensed Product in the Territory in the Field (the “CMO License”). Prior to
Medinet’s exercise of the Option and payment of the Upfront Option Fee, unless otherwise agreed by Argos in writing, the CMO License (i) shall be used by Medinet solely to supply Argos or its designee with Licensed Product for
Commercialization in the Territory, and (ii) shall not be sublicensable. Upon Medinet’s exercise of the Option and payment of the Upfront Option Fee, unless otherwise agreed by Argos in writing, the CMO License (i) shall be used by
Medinet solely to supply Medinet or its Related Parties with Licensed Product for Commercialization in the Territory in the Field, and (ii) shall include the right to grant sublicenses as provided in Article 4 below. For the avoidance of doubt,
the license granted pursuant to this Section 2.1 shall not include the right to Manufacture or have Manufactured Automated Systems or components thereof, and shall not preclude Argos from Manufacturing or having Manufactured Licensed Product
outside the Territory for Commercialization outside the Territory. Argos may request Medinet to manufacture Licensed Product in the Territory for Development or Commercialization of the Licensed Product outside the Territory in order to enable Argos
to execute the Argos Retained Right defined in Section 3.3. 
 2.2 Supply Agreement. In the event Medinet does not
exercise the Option, the Parties would use good faith efforts to negotiate and sign a supply agreement no later than [**] months prior to the expected receipt of the Regulatory Approval of the Licensed Product for the Field in the Territory, under
which Medinet would supply Argos or its designee with 100% of its or its designee’s requirements of Licensed Product for Commercialization in the Territory in the Field (“Supply Agreement”). The Supply Agreement would include
industry standard terms and conditions, and Licensed Product would be supplied at a transfer price mutually agreed in good faith by the Parties. 

2.3 Technology Transfer. 

2.3.1 Immediately after the execution of this Agreement, provided that the timing accommodates Argos’ manufacturing schedule for
the Phase 3 ADAPT trial, Argos shall transfer the non-automated Argos Technology to the Current Medinet Facility where Medinet would Manufacture Licensed Product based on the current, non-automated, manufacturing system. Upon completion of the
Automated System, Argos shall transfer the technology necessary to Manufacture the Licensed Product using the Automated System to the New Medinet Facility (defined in 2.3.2) Medinet would reimburse Argos for reasonable costs incurred to complete any
technology transfer, the level of costs to be discussed by the Parties prior to initiation of the technology transfer. Medinet would not sell or administer any Licensed Product to humans until Argos has determined that the Technology has been
satisfactorily transferred. 
 2.3.2 Medinet shall build a new manufacturing facility (“New Medinet Facility”) with
capacity sufficient to produce Licensed Product volumes for the Field in Territory based on its commercially reasonable projections agreed in good faith by the Parties. The New Medinet Facility shall be completed on or before [**]. Medinet shall be
responsible at its sole cost and expense to transfer the technology from the Medinet Current Facility to the New Medinet Facility. 

  
 8 

 2.3.3 Medinet shall, at its sole cost, acquire Regulatory Approval to Manufacture the
Licensed Product for Commercialization of the Licensed Product in the Field in the Territory. 
 2.3.4 As of the Effective Date,
Argos is developing the Automated System and Argos anticipates development completion between [**]. Upon completion of the development of the Automated System and the approval of its use by applicable Regulatory Authorities in the Territory, Medinet
shall use the Automated System to Manufacture Licensed Product. Costs to purchase the Automated Systems and installation fees shall be borne by Medinet. Argos shall supply Medinet’s requirements for instruments and disposables for Automated
Systems pursuant to a supply agreement to be negotiated in good faith by the Parties; provided, however, that the price of such instruments and disposables for Automated Systems to be included in such supply agreement shall be
Argos’ fully burdened cost of supplying the Automated Systems. 
 3. OPTION; COMMERCIALIZATION LICENSE 

3.1 Option Grant. Argos hereby grants Medinet an option (the “Option”), exercisable from the Effective Date
until [**] days after Argos provides Medinet with a summary interim report following [**]% of events (deaths) of study subjects in Argos’ ADAPT study (the “Option Period”), to acquire a nonexclusive, royalty-bearing license
under the Argos Technology to use, sell and offer to sell Product solely for the Field in the Territory. Notwithstanding the foregoing, in any event the Option Period shall end on [**]. The Option must be exercised by Medinet, if at all, by
providing written notice to Argos within the Option Period. 
 3.2 Commercialization License Grant. Upon Medinet’s timely
exercise of the Option and Payment of the Upfront Option Fee, Argos shall grant Medinet a nonexclusive, royalty-bearing license under the Argos Technology to use, sell and offer to sell Licensed Product solely for the Field in the Territory (the
“Commercialization License”). The Commercialization License shall include the right to grant sublicenses as provided in Article 4 below. 

3.3 Argos Retained Rights. Notwithstanding anything in this Agreement to the contrary and for clarity, Argos retains the full
right to import (and have imported) from the Territory, and export (and have exported) to outside the Territory, Licensed Product (and components thereof) for Development or Commercialization of the Licensed Product outside the Territory. Argos
shall not have rights to Manufacture the Licensed Products in the Territory. 
 4. SUBLICENSES 

4.1 Sublicense of Medinet’s Rights. Subject to the terms of Section 4.2, Medinet is entitled to grant sublicenses of
all or any portion of their rights under the Commercialization License and, upon exercise of the Option, the CMO License; provided, however, that Medinet may not grant a sublicense under the Commercialization License to more than one
(1) Third Party in the Territory unless it has received the prior written consent of Argos which shall not be unreasonably withheld. Consent shall be presumed and deemed given if Argos does not provide a written objection within [**] days of
Argos’ receipt of a written request for consent. 

  
 9 

 4.2 Sublicensing Terms. Each sublicense granted by Medinet pursuant to this
Article 4 shall be subject and subordinate to the terms and conditions of this Agreement and shall contain terms and conditions consistent with those in this Agreement. Medinet shall promptly provide Argos with a copy of the executed Sublicense
Agreement with any Sublicensee which shall contain the identity of the Sublicensee and shall provide sufficient information to show that the following provisions have been imposed on the Sublicensee: (a) a requirement that such Sublicensee
submit applicable sales or other reports consistent with those required under this Agreement; (b) the audit requirement set forth in Section 9.8; (c) a requirement that such Sublicensee comply with the confidentiality and non-use
provisions of Article 11 with respect to both Parties’ Confidential Information; (d) that the Sublicense Agreement will automatically terminate upon Argos’ exercise of the Revocation Right, as applicable; and (e) any other
provisions required under any Argos In-License subject to Argos’ compliance with Section 6.1 hereof. In the event Medinet becomes aware of a material breach of any Sublicense Agreement by a Sublicensee that has not been cured pursuant to
the terms of such Sublicense Agreement, Medinet shall promptly notify Argos of the particulars of same and shall enforce the terms of such Sublicense Agreement. If Medinet does not cause the Sublicensee to comply with the terms of the Sublicense
Agreement within [**] days of Argos’ request, Medinet shall, upon Argos’ written direction, terminate the Sublicense Agreement. 

4.3 Liability. Medinet shall at all times be responsible for the performance of its Sublicensees under this Agreement. 

4.4 Termination of Sublicenses. In the event Argos exercises its Revocation Right with respect to the CMO License and/or
Commercialization License, all Sublicense Agreements shall immediately terminate. 
 5. REVOCATION RIGHT.  

5.1 Notwithstanding anything in this Agreement to the contrary, but subject to Section 9.3, in the event Argos or an Affiliate
elects to exercise or grant exclusive Commercialization rights to the Argos Technology in the Territory for the Field, Argos may revoke (i) the Commercialization License only, or (ii) the CMO License and the Commercialization License
together (the “Revocation Right”). 
 5.2 In the event Argos exercises the Revocation Right, Medinet shall, unless
prohibited by law or practically impossible, take the following actions at Argos’ cost: 
 (i) as promptly as practicable transfer and
assign to Argos or Argos’ designee: 
 (A) possession and ownership of all governmental or regulatory correspondence, conversation logs,
filings and approvals (including without limitation all Regulatory Approvals and pricing and reimbursement approvals) relating to the Commercialization, and, if the CMO License is revoked, the Manufacture, of the Licensed Product and all Licensed
Product Trademarks and execute any and all documents and carry out any other actions as may be requested by Argos to assist Argos with all regulatory filings with the applicable Regulatory Authorities to ensure that all Regulatory Approvals in the
Territory can be transferred or issued to Argos or Argos’ designee; and 

  
 10 

 (B) copies of all data, reports, records and materials in Medinet’s possession or Control
relating to the Commercialization, and, if the CMO License is revoked, the Manufacture, of the Licensed Product, including without limitation all non-clinical and clinical data relating to the Licensed Product, including without limitation customer
lists and customer contact information and all adverse event data in Medinet’s possession or Control; 
 (ii) as promptly as practicable
appoint Argos or Argos’ designee as Medinet’s and/or Medinet’s Related Parties’ agent for all Licensed Product-related matters involving Regulatory Authorities in the Territory until all Regulatory Approvals and other regulatory
filings have been transferred to Argos or its designee; 
 (iii) as promptly as practicable appoint Argos as its exclusive distributor of the
Licensed Product in the Territory and grant Argos the right to appoint sub-distributors, until such time as all Regulatory Approvals in the Territory have been transferred to Argos or its designee; 

(iv) if Argos so requests, transfer to Argos any Third Party agreements relating to the Commercialization, and, if the CMO License is
revoked, the Manufacture, of the Licensed Product to which Medinet is a party, subject to any required consents of such Third Party, which Medinet shall use Commercially Reasonable Efforts to obtain promptly; and 

(v) unless otherwise agreed by Argos in writing, all Sublicense Agreements related to the Commercialization, and, if the CMO License is
revoked, the Manufacture, of Licensed Product shall automatically terminate. Medinet shall execute all documents and take all such further actions as may be reasonably requested by Argos in order to give effect to the foregoing clauses
(i) through (v). 
 5.3 In the event the following conditions (i), (ii) and (iii) are met, then Argos shall, at
Argos’ sole option, take one of the actions listed as (x), (y) or (z). 
 (i) Argos exercises the Revocation Right with respect to
the CMO License; 
 (ii) the Revocation Right is exercised after the first to occur of the grant of: 

(A) Regulatory Approval; or 
 (B)
Conditional Regulatory Approval of the Licensed Product for the Field in the Territory, and; 
 (iii) the New Medinet Facility has been
completed and is solely dedicated to the Manufacture of Licensed Product. 
 (x) if Medinet then owns the New Medinet Facility accept an
assignment of the New Medinet Facility on terms and conditions to be negotiated in good faith by the Parties; 
 (y) if Medinet leases the
New Medinet Facility from a Third Party, assume Medinet’s obligations under such lease; or 

  
 11 

 (z) purchase its, or cause its Related Party to purchase, the requirements for the Licensed
Product for the Field in the Territory for one year following the exercise of the Revocation Right. 
 5.4 Upon the expiration of the
last Valid Claim of the Argos Patent Rights, Medinet shall have the right under and to such expired Argos Patent Rights for its own purposes even if the Revocation Right is exercised. 

6. THIRD PARTY IP; MEDINET IMPROVEMENTS 

6.1 In-Licenses. All licenses and other rights granted to Medinet under this Agreement are subject to the rights and obligations
of Argos under the Argos In-Licenses. During the Term, Argos shall maintain the Argos In-Licenses in full force and effect with respect to the rights granted to Medinet under this Agreement. Medinet shall comply with all applicable terms and
conditions of the Argos In-Licenses, and shall perform and take such actions as may be required to allow Argos to comply with its obligations thereunder, including but not limited to, obligations relating to sublicensing, patent matters,
confidentiality, reporting, audit rights, indemnification and diligence. Argos agrees to provide Medinet with copies of any Argos In-Licenses that are relevant to the rights granted to Medinet under this Agreement. Confidential Information of Argos
or the counterparty may be redacted from such copies, except to the extent that such information is required in order to enable Medinet to comply with its obligations under this Section 6.1 with respect to such Argos In-License. 

6.2 Licenses of Necessary Third Party IP. During the Term, Medinet shall be responsible for obtaining licenses of any Necessary
Third Party IP for the Territory that it does not Control (other than Necessary Third Party IP for the Territory sublicensed to Medinet pursuant to an Argos In-License), and shall notify Argos in writing and provide Argos with a copy of any license
of Necessary Third Party IP entered into by Medinet after the Effective Date. If, during the Term, Argos obtains a license to Necessary Third Party IP for the Territory that is not already Controlled by Medinet or Argos, then Argos shall notify
Medinet in writing and include in such notification a summary of such Necessary Third Party IP, the commercial and sublicensing terms of the license and any other relevant information together with a copy of the fully executed license. Medinet will
have [**] days thereafter to notify Argos of its desire to obtain a sublicense to such Necessary Third Party IP. Upon receipt of such written notice from Medinet, Argos shall grant to Medinet a sublicense of such Necessary Third Party IP, which
shall include any terms that Argos is required to impose on its Sublicensees pursuant to the relevant in-license, but shall include no incremental compensation to Argos. Upon execution of such supplemental agreement, Argos’ license of such
Necessary Third Party IP will be deemed an Argos In-License and Schedule D will be updated accordingly. 
 6.3 License under
Medinet Improvements. Medinet hereby grants to Argos a royalty-free, sublicensable, transferable, exclusive license under Medinet Improvements to make, have made, use, sell, offer to sell and import (i) Licensed Product for the Field
outside the Territory, (ii) Licensed Product for the Field in the Territory if the Commercialization License is not in effect after the option period, and (iii) Licensed Product anywhere in the world outside of the Field. 

7. EXPANSION OF THE FIELD. The Parties shall from time to time discuss the addition of new indications to the Field. Such discussions would include the
terms upon which an indication would be added, including without limitation, commitment fees, upfront option fees, milestones, royalties and the Development of Licensed Product for such new indications. For clarification, Argos shall have no
obligation to agree to add any new indications to the Field. 

  
 12 

 8. NO OTHER RIGHTS. Except as otherwise expressly provided in this Agreement, under no circumstances shall
a Party hereto, as a result of this Agreement, obtain any ownership interest or other right in any Know-How or Patent Rights of the other Party, including items owned, controlled or developed by the other Party, or provided by the other Party to the
receiving Party at any time pursuant to this Agreement. 
 9. CERTAIN FINANCIAL TERMS 

9.1 Commitment Fee; Loan. In consideration of Argos granting the CMO License to Medinet, Medinet shall pay to Argos One Million
Dollars ($1,000,000) (the “Commitment Fee”) on the Effective Date. In addition, Medinet shall loan to Argos the sum of Nine Million Dollars ($9,000,000) (“Loan”) on the Effective Date. The Commitment Fee and the
Loan proceeds shall be used by Argos for the research and development of the Licensed Product and the Manufacture thereof outside the Territory, for which Medinet shall receive a direct benefit in the form of data sharing and a manufacturing
process. Promptly upon receipt of the proceeds of the Loan, Argos shall execute and deliver to Medinet an interest-bearing promissory note (“Promissory Note”) in the form of Exhibit A to evidence the Loan. 

  
 13 

 9.2 Development and Commercialization Consideration. 

9.2.1 If Medinet exercises the Option, Medinet shall pay to Argos One Million Dollars ($1,000,000) (the “Upfront Option
Fee”) upon exercise. 
 9.2.2 Medinet shall pay to Argos [**] Dollars ($[**]) ([**]) upon receipt of [**]. 

 

	 	9.2.3	Medinet shall pay to Argos [**] Dollars ($[**]) ([**]) upon receipt of [**]. 

  

	 	9.2.4	Medinet shall pay to Argos [**] Dollars ($[**]) ([**]) upon receipt of [**]. 

  

	 	9.2.5	Medinet shall pay to Argos [**] Dollars ($[**]) ([**]) upon receipt of [**]. 

  

	 	9.2.6	Medinet shall pay to Argos [**] Dollars ($[**]) ([**]) upon receipt of [**]. 

 9.2.7
Medinet shall pay Argos a royalty on Net Sales of Licensed Product in the Territory by Medinet or a Related Party at a rate to be negotiated in good faith between the Parties once cost of goods and Net Sales price can be reasonably estimated.

 9.2.8 Medinet shall pay Argos [**]Dollars ($[**]) (the “Milestone Payment”) upon the aggregate of [**] Dollars
($[**]) of Net Sales of the Licensed Product in the Territory by Medinet, its Related Parties, successors and assigns. 
 9.2.9
Royalties on Net Sales of the Licensed Product shall continue to be payable until the later of (a) the expiration of the last Valid Claim of the Argos Patent Rights Covering the Manufacture or the Commercialization of the Licensed Product,
and (b) the twelfth (12th) anniversary of the First Commercial Sale in the Territory (each such period, a “Royalty Term”). Argos shall continue to be required to pay by itself any royalties Argos owes to a Third Party
under an In License without passing such costs to Medinet. 
 9.2.10 Unless otherwise agreed by Argos and Medinet, amounts payable by
Medinet pursuant to 9.2.2-9.2.6 shall be applied first as partial repayment of the principal of the Loan. 
  

	 	9.2.11	 If the Loan has not been repaid in full on or before December 31, 2018, , then Argos shall grant to Medinet a non-exclusive,
royalty-bearing license to make, use and sell Arcelis products in Japan for the treatment of cancer. Royalties under the license under this section 9.2.11 shall be payable until the expiration of the last Valid Claim of the Argos Patent Rights in
the Territory. For the avoidance of doubt, the clinical Data gathered by Medinet using the Argos Technology under the license under this section 9.2.11 shall belong to Medinet. The terms of such license, including the royalty rate, shall be
negotiated in good faith, with the unpaid principal of the Loan and any accrued interest at the time of the license grant constituting prepaid royalties. For clarification, Medinet’s right to offset milestones otherwise payable under
9.2.2-9.2.6., Medinet’s right to offset against future royalties under this Section 9.2.11, and Medinet’s right to elect repayment of all unpaid principal and unpaid interest under the

  
 14 

	 	
Promissory Note on December 31, 2018, all of the foregoing at Medinet’s election, shall constitute the sole sources of repayment of the Loan and Medinet shall not otherwise demand
repayment of or seek to collect the Loan or authorize any third party to do so; provided, however, that upon any default by Argos under the terms of the Promissory Note or this Agreement, Medinet shall have all available legal and
equitable rights and remedies. Any such license shall be treated as a Commercialization License subject to the Revocation Right. 

9.3 Payments upon Exercise of the Revocation Right. 

9.3.1 In the event Argos exercises the Revocation Right with respect to the Commercialization License only, Argos shall pay to Medinet
within [**] days of the exercise of the Revocation Right an amount equal to the Upfront Option Fee, Fees payable under 9.2.2-9.2.6 and Milestone Payment paid by Medinet as of the date that the Revocation Right is exercised and also immediately repay
the then-outstanding balance of the Loan to Medinet to the extent not covered by the Fees payable under 9.2.2-9.2.6. 
 9.3.2 In the
event Argos exercises the Revocation Right with respect to the Commercialization License and the CMO License, then (i) if the Revocation Right is exercised by Argos before the [**] of the first to occur of the grant of (A) Regulatory
Approval or (B) Conditional Regulatory Approval of the Licensed Product for the Field in the Territory, Argos shall pay to Medinet within [**] days of the exercise of the Revocation Right an amount equal to 200% of the Commitment Fee, Upfront
Option Fee, Fees payable under 9.2.2-9.2.6 and Milestone Payment which have been paid by Medinet as of the date that the Revocation Right is exercised, and (ii) if the Revocation Right is exercised by Argos thereafter, Argos shall pay to
Medinet within [**] days of the exercise of the Revocation Right an amount equal to 150% of the Commitment Fee, Upfront Option Fee, Fees payable under 9.2.2-9.2.6 and Milestone Payment which have been already paid by Medinet as of the date that the
Revocation Right is exercised. Argos shall also immediately repay the then-outstanding balance of the Loan to Medinet to the extent not covered by the Fees payable under 9.2.2-9.2.6. 

9.4 Necessary Third Party IP. Subject to the applicable provisions of Section 10.5, during the period beginning on
Medinet’s exercise of the Option and ending upon Argos’ exercise of the Revocation Right with respect to the Commercialization License, (i) any royalties and any fees, milestones or other payments under all Medinet In-Licenses of
Necessary Third Party IP shall be borne exclusively by Medinet, and (ii) any royalties and any fees, milestones or other payments under the Argos In-Licenses shall be borne exclusively by Argos. 

9.5 Royalty Adjustments. The royalties payable to Argos pursuant to Section 9.2.7 may be subject to reduction by a portion
of the amount paid by Medinet in royalties in such period under all Medinet In-Licenses of Necessary Third Party IP that are reasonably allocable to the Development, Manufacture or Commercialization of the Licensed Product in the Field in the
Territory. 
 9.6 Medical Tourism. Medinet shall not promote the use of Licensed Product for the treatment in the Territory of
persons who do not regularly reside in the Territory. For clarification, this shall not prohibit Medinet from supplying Product for use by non-Japanese citizens residing in the Territory, but Medinet shall not, directly or indirectly, encourage or
support any business enterprise that encourages persons from outside the Territory to come to the Territory for treatment with Licensed Product, without Argos’ express written consent. 

  
 15 

 9.7 Reports; Payment of Royalty. Medinet shall furnish to Argos a written report
within [**] days after the end of each Calendar Quarter showing the quantity of Licensed Product sold, the gross sales of Licensed Product, the itemized deductions for Licensed Product included in the calculation of Net Sales, the Net Sales of the
Licensed Product during the reporting period, and the royalties payable under this Agreement. In addition, Medinet shall prepare and deliver to Argos any additional reports as required under the Argos In-Licenses, in each case within a time period
sufficiently in advance to enable Argos to comply with its obligations under such Argos In-Licenses. Royalties shown to have accrued by each report shall be due and payable on the date such report is due. Medinet and its Related Parties shall keep
complete and accurate records in sufficient detail to enable the royalties and other payments payable hereunder . 
 9.8
Audits. 
 9.8.1 Upon the written request of Argos delivered at least [**] days in advance, Medinet and its Related Parties
shall permit an independent certified public accounting firm of internationally-recognized standing selected by Argos and reasonably acceptable to Medinet, at Argos’ expense except as set forth below, to have access during normal business hours
to such of the records of Medinet and its Related Parties as may be reasonably necessary to verify the accuracy of the royalty and other reports hereunder for any year ending not more than [**] years prior to the date of such request for the sole
purpose of verifying the basis and accuracy of payments made under this Agreement. 
 9.8.2 If such accounting firm identifies a
discrepancy made during such period, the appropriate Party shall pay the other Party the amount of the discrepancy, together with interest calculated at [**] percent ([**]%) per month (or such higher rate as may be required pursuant to any
applicable In-License) or the maximum amount permitted by applicable law, from the time of the over-payment or under-payment, within [**] business days of the date Argos delivers to Medinet such accounting firm’s written report so concluding,
or as otherwise agreed by the Parties in writing. Such written report shall be binding upon the Parties. The fees charged by such accounting firm shall be paid by Argos, unless such discrepancy represents an underpayment by Medinet or its Related
Parties of [**] percent ([**]%) of the total amounts due hereunder in the audited period , in which case such fees shall be paid by Medinet. 

9.8.3 Medinet shall comply with all applicable audit requirements in the Argos In-Licenses and shall include in each sublicense granted
by it pursuant to this Agreement a provision requiring the Sublicensee to make reports to Argos, to keep and maintain records of sales made pursuant to such sublicense and to grant access to such records by Argos’ independent accountant to the
same extent required of Medinet under this Agreement. 
 9.8.4 Subject to the audit requirements set forth in Argos In-Licenses,
Argos shall treat all financial information subject to review under this Section 9.8 or under any sublicense agreement in accordance with the confidentiality and non-use provisions of this Agreement, and shall cause its accounting firm to enter
into an acceptable confidentiality agreement with Medinet and/or its Related Parties obligating it to retain all such information in confidence pursuant to such confidentiality agreement. 

  
 16 

 9.9 Payment Exchange Rate. All payments to be made under this Agreement shall be
made in United States dollars and shall be paid by bank wire transfer in immediately available funds to such bank account in the United States as may be designated in writing by Argos from time to time. In the case of Net Sales made by Medinet and
its Related Parties, the rate of exchange to be used in computing the amount of currency equivalent in United States dollars due shall be the closing telegraphic transfer middle (TTM) rate of Bank of Mitsubishi Tokyo UFJ on the last date of the
relevant calculation period of Net Sales. 
 9.10 Registration. Medinet will promptly make all filings with and submissions to
all governmental or regulatory authorities and obtain and maintain all consents, permits, registrations and authorizations that are necessary or required in order for Medinet to make timely payments under this Agreement, including, without
limitation, any foreign exchange approvals or requirements. Medinet will promptly provide Argos with evidence thereof upon Argos’ written request. 

9.11 Income Tax Withholding. If laws, rules or regulations require withholding of income taxes or other taxes imposed upon
payments set forth in this Article 9, Medinet shall make such withholding payments as required and subtract such withholding payments from the payments set forth in this Article 9. Medinet shall submit appropriate proof of payment of the withholding
taxes to Argos within a reasonable period of time. At the request of Argos, Medinet shall, at its cost (within a reasonable amount) give Argos such reasonable assistance, which shall include the provision of appropriate certificates of such
deductions made together with other supporting documentation as may be required by the relevant tax authority, to enable Argos to claim exemption from such withholding or other tax imposed or obtain a repayment, reduction or credit and shall upon
request provide such additional documentation from time to time as is reasonably required to confirm the payment of tax. 
 10. DEVELOPMENT AND
COMMERCIALIZATION RESPONSIBILITIES 
 10.1 Development Responsibilities. Prior to Medinet’s exercise of the Option,
Medinet shall, on behalf of Argos and at Medinet’s sole cost and expense, use Commercially Reasonable Efforts to Develop the Licensed Product for the Field in the Territory. 

10.1.1 Medinet shall be entitled to use and reference Argos’ regulatory filings in North America and associated Data including
without limitation clinical Data associated with the ADAPT study in connection with Medinet’s authorized Development and, if Medinet exercises the Option, the Commercialization of the Licensed Product for the Field in the Territory. 

10.1.2 Notwithstanding the foregoing, if (i) Medinet does not exercise the Option within the Option Period, or (ii) the
Development of the Licensed Product for the Field in the Territory, including without limitation Regulatory Approval of the Licensed Product, is not completed by the time Argos exercises the Revocation Right with respect to the Commercialization
License only, in either case Argos may take over the responsibility for the Development of the Licensed Product by notifying Medinet in writing. 

10.1.3 If the Development of the Licensed Product for the Field in the Territory, including without limitation Regulatory Approval of
the Licensed Product, is not completed by the time Argos exercises the Revocation Right to terminate both the CMO License and Commercialization License, Argos shall take over the responsibility of Medinet for the Development of the Licensed Product
without further notice. 

  
 17 

 10.1.4 Medinet shall share with Argos, on a [**] basis, (a) its available Data with
respect to the Licensed Product generated during the Commercialization of the Licensed Product. Argos shall be entitled to use such Data in its discretion for all uses outside the Territory, for uses in the Territory for the Field when the
Commercialization License is not in effect after the Option Period, and for uses in the Territory outside the Field, including without limitation referencing such Data in any Regulatory Approval submissions by Argos and its Related Parties. For the
avoidance of doubt, Argos shall be entitled to Develop, Manufacture and Commercialize Licensed Product to which such Medinet Data relates without further compensation to or a need for a license from, Medinet. Medinet shall own the Data it generates
and shall be entitled to use such Data for its own internal purposes even if the Revocation Right is exercised. 
 10.2
Commercialization Diligence. Upon Medinet’s exercise of the Option, Medinet will use Commercially Reasonable Efforts to Commercialize the Licensed Product in the Field in the Territory. Without limiting the foregoing, Medinet shall
meet Manufacturing, Development and Commercialization milestones negotiated in good faith between the Parties once the cost of goods and Net Sales price of Licensed Products in the Field in the Territory can be reasonably estimated. . 

10.3 Commercialization Plan. Commencing as of Medinet’s exercise of the Option, Medinet shall prepare and deliver to Argos,
(a) a Commercialization strategy plan for the following [**] year period, which plan would be updated at least annually, and (b) by no later than each [**], a written plan that describes in detail the Commercialization activities to be
undertaken with respect to the Licensed Product in the Territory in the next Calendar Year and the dates by which such activities are targeted to be accomplished (each, a “Commercialization Plan”). 

10.4 Reporting Obligations. Medinet shall prepare and deliver to Argos, by no later than each [**] (for the period ending
December 31 of the prior Calendar Year), written reports summarizing Medinet’s Commercialization activities for the Licensed Product performed to date (or updating such report for activities performed since the last such report submitted
hereunder, as applicable). In addition, Medinet shall provide Argos with written notice of (a) all filings and submissions for Regulatory Approval regarding the Licensed Product in the Territory in a timely manner; (b) all Regulatory
Approvals obtained or denied, the filing of any IND for the Licensed Product, and the First Commercial Sale of the Licensed Product in the Territory, within [**] business days of such event; and (c) the initiation of each clinical study of the
Licensed Product by or on behalf of Medinet within [**] business days of such event; provided, however, that in all circumstances, Medinet shall if possible inform Argos of such event prior to public disclosure of such event by
Medinet. Moreover, Medinet shall use Commercially Reasonable Efforts to prepare and deliver to Argos any additional reports reasonably requested by Argos to enable it to meet its obligations under the Argos In-Licenses, in each case sufficiently in
advance to enable Argos to comply with its obligations under the Argos In-Licenses. Medinet shall also provide such other information to Argos as Argos may reasonably request and shall keep Argos reasonably informed of Medinet’s
Commercialization activities with respect to the Licensed Product. 

  
 18 

 10.5 Sales and Distribution. Medinet and its Related Parties shall be responsible
for booking sales and shall store and distribute the Licensed Product in the Territory. If Medinet receives any orders for the Licensed Product outside the Territory or if Medinet has reason to believe that the Licensed Product is intended to be
administered in the Territory to a Person whose primary domicile is outside the Territory, it shall refer such orders to Argos or its designee. Moreover, Medinet and its Related Parties shall be solely responsible for handling all returns of the
Licensed Product, as well as all aspects of the Licensed Product order processing, invoicing and collection, distribution, inventory and receivables, in the Territory. 

10.6 Advertising and Promotional Materials. Medinet will be responsible for the creation, preparation, production, reproduction
and filing with the applicable Regulatory Authorities, of relevant written sales, promotion and advertising materials relating to the Licensed Product (“Promotional Materials”) for use in the Territory. All such Promotional
Materials will be compliant with all applicable laws, rules and regulations, and consistent with the Commercialization Plan for the Territory. 

10.7 Export Monitoring. Medinet and its Related Parties will use Commercially Reasonable Efforts to monitor and prevent exports
of Licensed Product from the Territory to outside the Territory, using methods commonly used in the industry for such purpose, and shall promptly inform Argos of any such activities, and the actions taken to prevent such activities. Medinet agrees
to take any actions reasonably requested in writing by Argos to prevent such activities to the extent such actions do not breach any applicable law or regulation. 

10.8 Records. Medinet will maintain scientific records, in sufficient detail and in good scientific manner appropriate for
patent and regulatory purposes, which will fully and properly reflect all work done and results achieved in the performance of the Development activities with respect to the Licensed Product. 

10.9 Regulatory Matters. 

10.9.1 Regulatory Filings and Interactions. Subject to Sections 5.2 and 14.2.3(a), as between the Parties, Argos will own any
regulatory documents and applications submitted to the applicable Regulatory Authorities in the Territory with respect to the Licensed Product in the Field unless and until Medinet exercises the Option, in which case, Medinet will own such documents
and applications. Without limiting the foregoing, Medinet shall during any period in which it is responsible for the Commercialization of the Licensed Product in the Territory (i) oversee, monitor and coordinate all regulatory actions,
communications and filings with, and submissions to, each Regulatory Authority, (ii) be responsible for interfacing, corresponding and meeting with each Regulatory Authority, (iii) be responsible for maintaining all regulatory filings, and
(iv) apprise the other Party of all material communications from Regulatory Authorities as soon as reasonably possible but in any event within [**] business days. Argos will have the right to reference Medinet’s and its Related
Parties’ INDs and other filings with and submissions to Regulatory Authorities with respect to the Licensed Product for the purpose of conducting its Development activities and to otherwise obtain Regulatory Approval of the Licensed Product
outside the Territory. In addition, during any period in which the Commercialization License is not in effect, Medinet shall deliver to Argos copies of all filings and submissions to Regulatory Authorities, including without limitation Regulatory
Approvals, no less than [**] days prior to submission to the Regulatory Authorities. Medinet shall include in such filings and submissions any comments made by Argos within [**] days of Argos’ receipt of such submissions and filings, except to
the extent such comments would cause such submissions or filings to be in violation of applicable laws. 

  
 19 

 10.9.2 Complaints; Adverse Event Reporting Procedures; Notice of Adverse Events Affecting
the Licensed Product. Each Party will maintain a record of any and all complaints it or its Related Parties receive with respect to the Licensed Product. Each Party will notify the other Party in reasonable detail of any such complaints
within sufficient time to allow the other Party and its Related Parties to comply with any and all regulatory and other requirements imposed upon them in any jurisdiction in which the Licensed Product is being marketed or tested in clinical studies.
Each Party will maintain at its own expense an adverse event database for the Licensed Product, and the other Party will have access to all data in such adverse event database. Notwithstanding the foregoing, each Party will report to the other Party
the details around any adverse events and serious adverse events relating to the Licensed Product in its Control within the time periods for such reporting as specified in the Pharmacovigilance Agreement (defined below). Each Party shall be
responsible, at its own expense, for obtaining all adverse event information and safety data relating to the Licensed Product from its Related Parties in a timely manner, and for submitting adverse event reports with respect to the Licensed Product
to the applicable Regulatory Authorities, with Medinet having the responsibility for the Territory during the term of the Commercial Licenses and Argos having the responsibility otherwise. Within [**] months after the Effective Date, the Parties
will develop and agree in writing upon a pharmacovigilance agreement (“Pharmacovigilance Agreement”) that will include safety data exchange procedures governing the coordination of collection, investigation, reporting, and exchange
of information concerning any adverse experiences, and any product quality and product complaints involving adverse experiences, related to the Licensed Product, sufficient to enable each Party to comply with its legal and regulatory obligations. In
addition, each Party shall promptly notify the other if such Party becomes aware of any information or circumstance that is likely to have a material adverse effect on the Development, Manufacture or Commercialization of the Licensed Product. 

10.9.3 Recalls, Market Withdrawals or Corrective Actions. In the event that any Regulatory Authority issues or requests a recall
or takes a similar action in connection with the Licensed Product, or in the event either Party determines that an event, incident or circumstance has occurred that may result in the need for a recall or market withdrawal, the Party notified of such
recall or similar action, or the Party that desires such recall or similar action, shall within [**] advise the other Party thereof by telephone, or by email or facsimile together with telephone confirmation. Medinet or its Related Party, in
consultation with Argos, shall decide whether to conduct a recall in the Territory and the manner in which any such recall shall be conducted. Argos or its Related Party shall decide whether to conduct a recall outside of the Territory and the
manner in which any such recall shall be conducted. Each Party shall bear the expense of any such recall in its own Territory. Each Party will make available to the other Party all of its pertinent records that may be reasonably requested in order
to implement a recall by the other Party. 
  

	10.10	Third Parties. Medinet shall be entitled to utilize the services of Third Party contract research organizations to perform its Development and Manufacturing activities under this Agreement;
provided, that (a) Medinet shall ensure that such Third Party operates in a manner consistent with the terms of this Agreement and (b) Medinet shall remain at all times fully liable for its respective responsibilities. Medinet shall
ensure that any such Third Party agreement shall include confidentiality, non-disclosure and non-use provisions that are substantially similar to those set forth in Article 11 of this Agreement. Medinet shall provide Argos with a copy of the fully
executed agreement and any amendment thereto with any contract research organization together with a relevant extract of English translation, in each case within [**] days of effectiveness. 

  
 20 

 11. CONFIDENTIALITY AND PUBLICATION 

11.1 Nondisclosure Obligation. (a) All Confidential Information disclosed by one Party to the other Party hereunder shall be
maintained in confidence by the receiving Party and shall not be disclosed to a Third Party or used for any purpose except as set forth herein without the prior written consent of the disclosing Party, except to the extent that such Confidential
Information: 
  

	 	(i)	is known by the receiving Party at the time of its receipt, and not through a prior disclosure, directly or indirectly, by the disclosing Party, as documented by the receiving Party’s business records;

  

	 	(ii)	is in the public domain by use and/or publication before its receipt from the disclosing Party, or thereafter enters the public domain through no fault of the receiving Party or its Related Parties; 

 

	 	(iii)	is subsequently disclosed to the receiving Party by a Third Party who may lawfully do so and is not under an obligation of confidentiality to the disclosing Party; or 

 

	 	(iv)	is developed by the receiving Party independently of Confidential Information received from the disclosing Party, as documented by the receiving Party’s business records. 

(b) Notwithstanding the obligations of confidentiality, non-disclosure and non-use set forth above and in Section 11.2 below, a receiving
Party may provide Confidential Information disclosed to it, and disclose the existence and terms of this Agreement as may be reasonably required in order to perform its obligations and to exploit its rights under this Agreement, and specifically to
(i) Related Parties, and their employees, directors, agents, consultants, advisors and/or other Third Parties for the performance of its obligations hereunder (or for such entities to determine their interest in performing such activities) in
accordance with this Agreement in each case who are bound by confidentiality, non-disclosure and non-use obligations substantially similar to those set forth herein; (ii) governmental or other Regulatory Authorities in order to obtain patents
or perform its obligations or exploit its rights under this Agreement; provided, that such Confidential Information shall be disclosed only to the extent reasonably necessary to do so, (iii) the extent required by applicable law,
including without limitation by the rules or regulations of the United States Securities and Exchange Commission or similar regulatory agency in a country other than the United States or of any stock exchange or listing entity, (iv) any bona
fide actual or prospective underwriters, investors, lenders or other financing sources and any bona fide actual or prospective collaborators or strategic partners and to consultants and advisors of such Party, in each case who are bound by
confidentiality, non-disclosure and non-use obligations substantially similar to those set forth herein, and (v) to Third Parties to the extent a Party is required to do so pursuant to the terms of an In-License. 

If a Party is required by judicial or administrative process to disclose Confidential Information that is subject to the non-disclosure provisions of this
Section 11.1 or Section 11.2, such Party shall promptly inform the other Party of the disclosure that is being sought in order to provide the other Party an opportunity to challenge or limit the disclosure obligations. Confidential
Information that is disclosed by judicial or administrative process shall remain otherwise subject to the confidentiality, non-disclosure and non-use provisions of this Section 11.1 and Section 11.2, and the Party disclosing

  
 21 

 
Confidential Information pursuant to law or court order shall, at the other Party’s expense, take all steps reasonably practical, including without limitation seeking an order of
confidentiality, to ensure the continued confidential treatment of such Confidential Information. In addition to the foregoing restrictions on public disclosure, if either Party concludes that a copy of this Agreement must be filed with the United
States Securities and Exchange Commission or similar regulatory agency in a country other than the United States, such Party shall provide the other Party with a copy of this Agreement showing any sections as to which the Party proposes to request
confidential treatment, will provide the other Party with an opportunity to comment on any such proposal and to suggest additional portions of the Agreement for confidential treatment, and will take such Party’s reasonable comments into
consideration before filing the Agreement. 
 11.2 Publicity. (a) Except as set forth in Section 11.1 above and
clause (b) below, the terms of this Agreement may not be disclosed by either Party, and no Party shall use the name, trademark, trade name or logo of the other Party or its employees in any publicity, news release or disclosure relating to this
Agreement or its subject matter, without the prior express written permission of the other Party, except as may be required by law or expressly permitted by the terms hereof. 

(b) As soon as practicable after the execution of this Agreement by both Parties, the Parties shall use good faith efforts to agree in writing
upon a press release to be issued jointly by the Parties publicizing the execution of this Agreement. After such initial press release, neither Party shall issue a press release or public announcement relating to this Agreement without the prior
written approval of the other Party, which approval shall not be unreasonably withheld or delayed, except that a Party may (i) once a press release or other written statement is approved in writing by both Parties, make subsequent public
disclosure of the information contained in such press release or other written statement without the further approval of the other Party, and (ii) issue a press release or public announcement as required, in the reasonable judgment of such
Party, by applicable law, including without limitation by the rules or regulations of the United States Securities and Exchange Commission or similar regulatory agency in a country other than the United States or of any stock exchange or listing
entity. 
 12. REPRESENTATIONS, WARRANTIES AND COVENANTS; INDEMNIFICATION 

12.1 Mutual Representations and Warranties. Each Party represents and warrants to the other Party that as of the Effective Date
of this Agreement: 
 12.1.1 It is duly organized and validly existing under the laws of its jurisdiction of incorporation or
formation, and has full corporate or other power and authority to enter into this Agreement, and to carry out the provisions hereof. 

12.1.2 It is duly authorized to execute and deliver this Agreement, and to perform its obligations hereunder, and the person or persons
executing this Agreement on its behalf has been duly authorized to do so by all requisite corporate action. 
 12.1.3 This Agreement
is legally binding upon it and enforceable in accordance with its terms. The execution, delivery and performance of this Agreement by it does not conflict with any agreement, instrument or understanding, oral or written, to which it is a party and
by which it may be bound, or with its charter or by-laws. 

  
 22 

 12.1.4 It has not granted, and will not grant, during the Term, any right to any Third
Party that would conflict with the rights granted to the other Party hereunder. 
 12.1.5 Neither Party nor any of its Affiliates has
been debarred or is subject to debarment and neither Party nor any of its Affiliates will use in any capacity, in connection with the exercise of its rights and the performance of its obligations under this Agreement, any person or entity that has
been debarred pursuant to Section 306 of the United States Federal Food, Drug, and Cosmetic Act or any similar law in any foreign jurisdiction, or that is the subject of a conviction described in such section or similar law in any foreign
jurisdiction. Each Party agrees to inform the other Party in writing immediately if it or any person or entity that is performing activities under this Agreement, is debarred or is the subject of a conviction described in Section 306 or similar
law in any foreign jurisdiction, or if any action, suit, claim, investigation or legal or administrative proceeding is pending or, to the best of the notifying Party’s Knowledge, is threatened, relating to the debarment or conviction of the
notifying Party or any person or entity used in any capacity by such Party or any of its Affiliates in connection with the performance of its obligations under this Agreement. 

12.2 Additional Representations and Warranties of the Parties.  

12.2.1 Additional Representations and Warranties of Argos. Argos represents and warrants to Medinet that:  

(a) As of the Effective Date, except for any Argos Patent Rights or Argos Know-How Controlled by Argos under an Argos In-License and
sublicensed to Medinet, Argos is the sole and exclusive owner of all right, title and interest in and to the Argos Technology in existence as of the Effective Date in the Territory. As of the Effective Date, to Argos’ Knowledge there are no
claims challenging Argos’ Control of the Argos Technology in existence as of the Effective Date in the Territory or making any adverse claim of ownership of the Argos Technology in existence as of the Effective Date in the Territory. 

(b) Listed on Schedule D are all the Argos In-Licenses applicable to the Territory existing as of the Effective Date. 

(c) As of the Effective Date, (i) each Argos In-License is valid, binding and in full force and effect, (ii) Argos is in compliance
in all material respects with its material obligations under each Argos In-License, (iii) to Argos’s Knowledge, each Third Party is in compliance in all materials respects with its material obligations under each Argos In-License and
(iv) no party has claimed a breach of, or initiated any dispute resolution proceedings under, any Argos In-License. 
 (d) As of the
Effective Date Argos has not received any written notice from any Third Party asserting or alleging that any Development or Manufacture of the Licensed Product by Argos prior to the Effective Date infringed or misappropriated the Patent Rights or
other intellectual property rights of such Third Party. 

  
 23 

 (e) As of the Effective Date to Argos’ Knowledge, there are no Third Party rights that
could interfere with or materially conflict with the grant of rights by Argos to Medinet under this Agreement. 
 12.2.2 Additional
Representations and Warranties of Medinet. Medinet represents, warrants and covenants to Argos that: 
 (a) It has or has the
ability to obtain and will maintain as and when necessary the financial and other capabilities reasonably necessary to discharge its obligations under this Agreement. 

(b) All Data delivered by Medinet will have been collected in compliance with all applicable laws, and, to Medinet’s Knowledge, will be
true and accurate in all material respects. 
 (c) It will comply with all laws in the Territory applicable to the exercise of its rights
and performance of its obligations hereunder. 
 12.3 Warranty Disclaimer. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS
AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATION OR EXTENDS ANY WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, TO THE OTHER PARTY, AND HEREBY DISCLAIMS ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE AND
NONINFRINGEMENT. ARGOS HEREBY DISCLAIMS ANY REPRESENTATION OR WARRANTY THAT THE DEVELOPMENT, MANUFACTURE OR COMMERCIALIZATION OF THE LICENSED PRODUCT PURSUANT TO THIS AGREEMENT WILL BE SUCCESSFUL OR THAT ANY PARTICULAR SALES LEVEL WITH RESPECT TO
THE LICENSED PRODUCT WILL BE ACHIEVED. 
 12.4 Certain Covenants. 

12.4.1 Exclusivity. Except as expressly provided in this Agreement, neither Medinet nor its Affiliates will,
alone or with or through a Third Party, during the Term, research, develop, manufacture or commercialize any cell therapy using Argos Technology outside of the scope of this Agreement. For the avoidance of doubt, Medinet shall not be prohibited from
generally engaging in the research, development, manufacture or commercialization of the cell therapy (in particular using dendritic cell) as it has been doing for more than 10 years which does not use Argos Technology. 

12.4.2 Compliance. Medinet and its Related Parties shall conduct the Development, Manufacture and Commercialization of the
Licensed Product in accordance with all applicable laws, rules and regulations, including without limitation current governmental regulations concerning good laboratory practices, good clinical practices and good manufacturing practices (including
but not limited the guidelines of the International Conference on Harmonisation of Technical Requirements for Registration of Pharmaceuticals for Human Use (ICH)). 

12.4.3 Employee Inventions. Prior to performing any activities in connection with this Agreement, Medinet shall ensure that its
and its Affiliates’ employees, agents and consultants have executed valid and binding agreements with it that assign and otherwise effectively vest in them any and all rights that such employees, agents and/or consultants might otherwise have
in any invention including but not limited to Medinet Improvements made by such employees, agents and/or consultants. Should any royalties or other consideration become payable to such employees, agents and/or consultants, Medinet shall remain
solely responsible for making such payments. 

  
 24 

 12.5 Indemnification.  

12.5.1 General Indemnification by Medinet. Medinet shall indemnify, hold harmless, and defend Argos, its Affiliates, its Related
Parties and the other parties to the Argos In-Licenses, and their respective directors, officers, employees and agents (“Argos Indemnitees”) from and against any and all Third Party claims, suits, losses, liabilities, damages,
costs, fees and expenses (including reasonable attorneys’ fees) (collectively, “Losses”) to the extent arising out of or resulting from, directly or indirectly, (a) any breach of this Agreement by Medinet, or (b) the
negligence or willful misconduct by or of Medinet, its Related Parties, and their respective directors, officers, employees, contractors and agents. 

12.5.2 General Indemnification by Argos. Argos shall indemnify, hold harmless, and defend Medinet, its Affiliates, and their
respective directors, officers, employees and agents (“Medinet Indemnitees”) from and against any and all Losses to the extent arising out of or resulting from, directly or indirectly, (a) any breach of this Agreement by Argos,
or (b) the negligence or willful misconduct by or of Argos, its Related Parties, and their respective directors, officers, employees, contractors and agents. 

12.5.3 Product Liability. Medinet shall indemnify, defend and hold harmless the Argos Indemnitees from, against and in respect
of any and all Losses arising out of Third Party product liability claims incurred or suffered by the Argos Indemnitees, or any of them, directly relating to Licensed Product to the extent such Losses are attributable to technologies of Medinet or
improper manufacture of Licensed Product by Medinet. Argos shall indemnify, defend and hold harmless the Medinet Indemnitees from, against and in respect of any and all Losses arising out of Third Party product liability claims incurred or suffered
by the Medinet Indemnitees, or any of them, directly relating to Licensed Product to the extent such Losses are attributable to Licensed Product properly manufactured and supplied by Medinet for sale by Argos or an Argos licensee. If Medinet
exercises the Option, then any product liability losses arising from the Development or Commercialization of Licensed Product in the Territory by Medinet which losses are not attributable to the breach or negligence of either party shall be shared
equally by the Parties. 
 12.5.4 Indemnification Procedure. In the event of any such claim against any Medinet Indemnitee or
Argos Indemnitee (individually, an “Indemnitee”), the indemnified Party shall promptly notify the other Party in writing of the claim and the indemnifying Party shall manage and control, at its sole expense, the defense of the claim
and its settlement. The Indemnitee shall cooperate with the indemnifying Party and may, at its option and expense, be represented in any such action or proceeding. The indemnifying Party shall not be liable for any settlements, litigation costs or
expenses incurred by any Indemnitee without the indemnifying Party’s written authorization. 
 12.6 Limitation of
Liability. NEITHER PARTY HERETO WILL BE LIABLE FOR SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES ARISING OUT OF THIS AGREEMENT OR THE EXERCISE OF ITS RIGHTS HEREUNDER, INCLUDING LOST PROFITS, REGARDLESS OF ANY NOTICE OF SUCH
DAMAGES, EXCEPT AS A RESULT OF A PARTY’S WILLFUL MISCONDUCT OR GROSSLY NEGLIGENT BREACH OF THE CONFIDENTIALITY AND NON-USE OBLIGATIONS IN ARTICLE 11. 

  
 25 

 12.7 Insurance. Medinet shall obtain and/or maintain insurance during the Term and
for a period of at least [**] years after the last commercial sale of the Licensed Product under this Agreement, with a reputable, solvent insurer in an amount appropriate for its business and products of the type that are the subject of this
Agreement, and for its obligations under this Agreement. Without limiting the foregoing, such insurance coverage shall include product liability insurance coverage limits of no less than $[**] per occurrence and in the aggregate. 

13. INTELLECTUAL PROPERTY OWNERSHIP, PROTECTION AND RELATED MATTERS 

13.1 Inventorship. Inventorship for patentable inventions conceived or reduced to practice during the course of the performance
of activities pursuant to this Agreement shall be determined in accordance with the principles that are used to determine inventorship under the patent laws of the United States. 

13.2 Ownership. Subject to the licenses granted by Argos pursuant to this Agreement, Argos shall own the entire right, title and
interest in and to all inventions and discoveries (and Patent Rights claiming patentable inventions therein) first made or discovered solely by employees or consultants of Argos or acquired solely by Argos. Subject to the licenses granted by Medinet
pursuant to this Agreement, Medinet shall own the entire right, title and interest in and to all inventions and discoveries (and Patent Rights claiming patentable inventions therein) first made or discovered solely by employees or consultants of
Medinet or acquired solely by Medinet. The Parties shall jointly own any inventions and discoveries (and Patent Rights claiming patentable inventions therein) first made or discovered jointly during the Term (“Joint IP”). 

13.3 Prosecution and Maintenance of Patent Rights.  

13.3.1 Argos Technology. Argos shall file, conduct prosecution, and maintain (including without limitation the defense of any
interference or opposition proceedings), all Argos Patent Rights in the Territory, and Argos agrees to use Commercially Reasonable Efforts to prosecute and maintain such Argos Patent Rights in the Territory, in each case for which Argos controls the
prosecution. 
 13.3.2 Medinet Technology. Medinet shall file, conduct prosecution, and maintain (including without limitation
the defense of any interference or opposition proceedings), all Patent Rights comprising Medinet Improvements in the Territory. Medinet agrees to use Commercially Reasonable Efforts to prosecute and maintain the Medinet Improvements in the Territory

 13.3.3 Joint IP. Argos and Medinet shall, subject to mutual agreement by both parties, file, conduct prosecution, and
maintain (including without limitation the defense of any interference or opposition proceedings), all relevant Patent Rights comprising Joint IP, in the names of both Argos and Medinet. Both Argos and Medinet shall reasonably cooperate and use
Commercially Reasonable Efforts to prosecute and maintain the said Joint IP in the Territory. The cost to prosecute and maintain the said Joint IP shall be shared between the parties equally. 

  
 26 

 13.3.4 Cooperation. Each Party hereby agrees to cooperate, if necessary and
appropriate, with the other Party in gaining patent term extensions wherever applicable to Patent Rights. 
 13.3.5 Patent
Expenses. The patent filing, prosecution and maintenance expenses incurred after the Effective Date with respect to Patent Rights (“Patent Expenses”) shall be borne by each Party filing, prosecuting and maintaining such
Patent Rights under this Section 13.3; provided, however, that both Argos and Medinet shall share the costs to prosecute and maintain the relevant Joint IP equally pursuant to Section 13.3.3. 

13.4 Third Party Infringement. 

13.4.1 Notices. Each Party shall promptly report in writing to the other Party during the Term any (a) known or suspected
infringement of any Argos Technology, Medinet Improvements or Joint IP or (b) unauthorized use or misappropriation of any Confidential Information, Argos Technology, Medinet Improvements or Joint IP by a Third Party of which it becomes aware,
and shall provide the other Party with all available evidence supporting such infringement, or unauthorized use or misappropriation. 

13.4.2 Rights to Enforce. 

(a) Medinet’s First Right. Medinet shall have the sole and exclusive right (but not obligation) to initiate an infringement
or other appropriate suit anywhere in the world against any Third Party who at any time has infringed, or is suspected of infringing, any Medinet Improvements, or Medinet Know-How. Notwithstanding the foregoing, in the event such infringement,
suspected infringement, or unauthorized use is by an Argos Related Party, the Parties shall discuss in good faith a resolution to the foregoing prior to engaging in litigation. Medinet will consider in good faith any request from Argos to initiate
an infringement or other appropriate suit against any Third Party with respect to matters described in this Section 13.4.2(a) occurring outside the Territory and in the Territory during the term of the Commercial License; provided,
however, that Medinet shall not be required to initiate any such suit. Argos shall not be entitled to initiate any such suit without the prior written consent of Medinet. 

(b) Argos’s First Right. Argos shall have the sole and exclusive right (but not obligation) to initiate an infringement or
other appropriate suit anywhere in the world against any Third Party who at any time has infringed, or is suspected of infringing, any Argos Patent Rights, or of using without proper authorization any Know-How comprising Argos Patent Rights, or
Argos Know-How. Notwithstanding the foregoing, in the event such infringement, suspected infringement, or unauthorized use is by an Medinet Related Party, the Parties shall discuss in good faith a resolution to the foregoing prior to engaging in
litigation. Argos will consider in good faith any request from Medinet to initiate an infringement or other appropriate suit against any Third Party with respect to matters described in this Section 13.4.2(b) occurring outside the Territory and
in the Territory during the term of the Commercial License; provided, however, that Argos shall not be required to initiate any such suit. Medinet shall not be entitled to initiate any such suit without the prior written consent of
Argos. 
 (c) Procedures; Expenses and Recoveries. The Party having the right to initiate any infringement suit under
Section 13.4.2(a) or (b) above shall have the sole and exclusive right to select counsel for any such suit and shall pay all expenses of the suit, including but not limited to attorneys’

  
 27 

 
fees and court costs and reimbursement of the other Party’s reasonable out-of-pocket expense in rendering assistance requested by the initiating Party. If required under applicable law in
order for the initiating Party to initiate and/or maintain such suit, or if either Party is unable to initiate or prosecute such suit solely in its own name or it is otherwise advisable to obtain an effective legal remedy, in each case, the other
Party shall join as a party to the suit and will execute and cause its Affiliates to execute all documents necessary for the initiating Party to initiate litigation to prosecute and maintain such action. In addition, at the initiating Party’s
request, the other Party shall provide reasonable assistance to the initiating Party in connection with an infringement suit at no charge to the initiating Party except for reimbursement by the initiating Party of reasonable out-of-pocket expenses
incurred in rendering such assistance. The non-initiating Party shall have the right to participate and be represented in any such suit by its own counsel at its own expense. If the Parties obtain from a Third Party, in connection with such suit,
any damages, license fees, royalties or other compensation (including but not limited to any amount received in settlement of such litigation) (“Recoveries”), such amounts shall be allocated in all cases as follows regardless of
which Party brings the enforcement action: 
  

	 	(a)	first, to reimburse each Party for all expenses of the suit incurred by such Party, including but not limited to attorneys’ fees and disbursements, travel costs, court costs and other litigation expenses;

  

	 	(b)	second, (i) if such suit is related to the Argos Technology in the Territory and is attributable to a time period in which the Commercial License is in effect, then Medinet shall be entitled to receive that portion
of the remaining Recoveries reasonably attributable to Net Sales of the Licensed Product in the Territory in the Field (as determined by a court of competent jurisdiction in a final, non-appealable decision); provided, that the Recoveries reasonably
attributable to Net Sales of Licensed Product to which Medinet is entitled after reimbursement of expenses shall be treated as Net Sales for purposes of this Agreement and Argos shall be entitled to receive royalties on such constructive Net Sales
pursuant to the terms of Section 9.2.2 as if such Net Sales had occurred during the time period of the infringement, and (ii) if such suit is related to Medinet Improvements in the Territory for any period in which the Commercial License
is not in effect, then Argos shall be entitled to receive that portion of the remaining Recoveries reasonably attributable to Net Sales of the Licensed Product in the Territory (as determined by a court of competent jurisdiction in a final,
non-appealable decision); and 

  

	 	(c)	the Party initiating the suit shall be entitled to [**] percent ([**]%), and the non-initiating Party shall be entitled to [**] percent ([**]%), of the balance of the Recoveries. 

13.5 Claimed Infringement. 

13.5.1 Notice. In the event that after the Effective Date a Third Party at any time provides written notice of a claim to, or
brings an action, suit or proceeding against, any Party, or any of their respective Affiliates or Sublicensees, claiming infringement of its patent rights or unauthorized use or misappropriation of its know-how, based upon an assertion or claim
arising out of the Development, Manufacture or Commercialization of the Licensed Product d (“Infringement Claim”) in the Field, such Party shall promptly notify the other Party of the claim or the commencement of such action, suit

  
 28 

 
or proceeding, enclosing a copy of the claim and all papers served. Each Party agrees to make available to the other Party its advice and counsel regarding the technical merits of any such claim
at no cost to the other Party and to offer reasonable assistance to the other Party at no cost to the other Party. 
 13.5.2
Responsibility. Medinet shall assume full responsibility for any Infringement Claims brought against either Party or its Affiliates or Sublicensees arising out of the Development or Commercialization of the Licensed Product in, or
Manufacture of Licensed Product for, the Territory in the Field by Medinet or its Related Parties. All liabilities, damages, costs and expenses arising out of such Third Party Infringement Claims shall be borne by Medinet. Argos shall assume full
responsibility for any Infringement Claims brought against either Party or its Affiliates or Sublicensees arising out of the Commercialization of the Licensed Product, or Manufacture of Licensed Product for, outside the Territory or outside the
Field in the Territory by Argos or its Related Parties. All liabilities, damages, costs and expenses arising out of such Third Party Infringement Claims shall be borne by Argos. 

13.5.3 Procedure. Each Party shall have the sole and exclusive right to select counsel for any Infringement Claim that it
defends; provided, that it shall consult with the other Party with respect to selection of counsel for such defense. Each Party will keep the other Party informed, and shall from time to time consult with the other Party regarding the status
of any such claims and shall provide the other Party with copies of all documents filed in any suit brought in connection with such claims. The other Party shall also have the right to participate and be represented in any such claim or related
suit, at its own expense. No Party shall settle any claims or suits involving rights of another Party without obtaining the prior written consent of such other Party, which consent shall not be unreasonably withheld or delayed. 

13.5.4 Other Infringement Resolutions. In the event of a dispute or potential dispute that has not ripened into a demand, claim
or suit of the types described in Sections 13.4 and 13.5 of this Agreement (e.g., actions seeking declaratory judgments and revocation proceedings), the same principles governing control of the resolution of the dispute, consent to settlements of
the dispute, and implementation of the settlement of the dispute (including but not limited to the sharing in and allocating the payment or receipt of damages, license fees, royalties and other compensation) shall apply. 

13.6 Patent Certification. To the extent required by law or permitted by law, the Parties shall use Commercially Reasonable
Efforts to maintain with the applicable Regulatory Authorities during the Term correct and complete listings of applicable Patent Rights for the Licensed Product. 

13.7 Trademarks. 

13.8.1 Each Party and its Affiliates shall retain all right, title and interest in and to its and their respective corporate names and
logos. To the extent permitted by local law, upon Argos’ request, Medinet and its Related Parties shall include Argos’ (or its designee’s) name with equal prominence, or as close thereto as permitted by local law, on all Licensed
Product promotional materials related to the Licensed Product in the Territory. 

  
 29 

 13.8.2 Medinet will develop and propose, and Argos shall review and comment on for
approval by Medinet, one or more trademarks for the Licensed Product (the “Licensed Product Trademarks”) for use by Medinet and its Related Parties throughout the Territory. Any Licensed Product Trademark(s) (other than the Argos
Trademarks) that are used by Medinet to promote and sell the Licensed Product in the Territory are hereinafter referred to as the “Medinet Trademarks”. Argos (or its Related Parties, as appropriate) shall own all rights to the
trademarks developed and/or used by Argos with respect to the Commercialization of the Licensed Product outside the Territory (the “Argos Trademarks”), and all goodwill associated therewith. Medinet (or its Related Parties, as
appropriate) shall own all rights to Medinet Trademarks and all goodwill associated therewith. Argos shall also own rights to any Internet domain names incorporating the applicable Argos Trademarks or any variation or part of such Argos Trademarks
used as its URL address or any part of such address; and Medinet shall also own rights to any Internet domain names incorporating the applicable Medinet Trademarks or any variation or part of such Medinet Trademarks used as its URL address or any
part of such address. 
 13.8.3 If Medinet Trademarks are used to promote and sell the Licensed Product in the Territory then Medinet
will use Commercially Reasonable Efforts to establish, maintain and enforce the Medinet Trademarks in the Territory during the Term, at its expense. If Medinet requests a license to Argos Trademarks in writing to promote and sell the Licensed
Product in the Territory, then Argos shall grant Medinet an exclusive license to use such Argos Trademarks to Commercialize the Licensed Product in the Territory in the Field on terms and conditions to be negotiated by the Parties in good faith.
Argos shall be entitled to no additional compensation for the grant of such license other than the reimbursement in full of Argos’ costs and expenses of establishing, maintaining and enforcing such Argos Trademarks in the Territory. If Medinet
Trademarks are used to promote and sell the Licensed Product outside the Territory, then Medinet shall grant Argos an exclusive license to use such Medinet Trademarks to Commercialize the Licensed Product outside the Territory on terms and
conditions to be negotiated by the Parties in good faith. Medinet shall be entitled to no additional compensation for the grant of such license other than the reimbursement in full of Medinet’s costs and expenses of establishing, maintaining
and enforcing such Medinet Trademarks outside the Territory. 
 13.8.4 In the event either Party becomes aware of any infringement of
any Licensed Product Trademark or Argos Trademark by a Third Party, such Party shall promptly notify the other Party and the Parties shall consult with each other and jointly determine the best way to prevent such infringement, including, without
limitation, by the institution of legal proceedings against such Third Party. 
 14. TERM AND TERMINATION 

14.1 Term. This Agreement shall be effective as of the Effective Date and, unless terminated earlier pursuant to
Section 14.2 below, this Agreement shall continue in effect until Argos exercise of the Revocation Right with respect to the Commercialization License and CMO License, or, to the extent Argos does not exercise such Revocation Right with respect
to the Commercialization License and CMO License, the later of (i) the expiration of the Royalty Term, if applicable, and (ii) the expiration or earlier termination of the Supply Agreement (“Term”). 

  
 30 

 14.2 Termination Rights. 

14.2.1 Termination for Cause. This Agreement may be terminated at any time during the Term: 

(a) upon written notice by either Party if the other Party is in breach of its material obligations hereunder and has not cured such breach
within [**] business days in the case of a payment breach, or [**] days in the case of all other breaches, after written notice requesting cure of the breach; or 

(b) by either Party upon the filing or institution of bankruptcy, reorganization, liquidation or receivership proceedings of the other Party,
or upon an assignment of a substantial portion of the assets for the benefit of creditors by the other Party; provided, however, that in the event of any involuntary bankruptcy or receivership proceeding such right to terminate shall
only become effective if the Party consents to the involuntary bankruptcy or receivership or such proceeding is not dismissed within sixty (60) days after the filing thereof. 

14.2.2 Challenges of Patent Rights. In the event that Medinet or any of its Related Parties (a) commences or participates
in any action or proceeding (including, without limitation, any patent opposition or re-examination proceeding), or otherwise asserts any claim, challenging or denying the validity or enforceability of any of the Argos Patent Rights licensed Medinet
under this Agreement, or any claim thereof or (b) actively assists any other person or entity in bringing or prosecuting any action or proceeding (including, without limitation, any patent opposition or re-examination proceeding) challenging or
denying the validity or enforceability of any of such Argos Patent Rights or any claim thereof, then (i) Medinet shall give notice thereof to Argos within [**] days of taking such action and (ii) Argos will have the right, in its sole
discretion, to give notice to Medinet that either (A) the licenses granted to Medinet with respect to all or any portion of the Argos Technology under this Agreement will terminate in [**] days following such notice (or such longer period as
Argos may designate in such notice), and, unless Medinet ceases all participation with respect to all such challenge(s) (including withdrawing any challenge within its control) within such [**] period, such licenses will so terminate, or
(B) the royalty rate determined in accordance with Section 9.2.2 shall be doubled until such time as Medinet ceases all participation with respect to all such challenge(s) (including withdrawing any challenge within its control). In the
event that Argos elects to terminate the licenses but is not permitted to do so under applicable law, then the Parties agree to construe this provision as to permit Argos to terminate the licenses to that portion of such Argos Technology with
respect to which Argos has the legal right to do so. 
 14.2.3 Effect of Termination.  

(a) Termination by Argos. Without limiting any other legal or equitable remedies that Argos may have, if Argos terminates this
Agreement in accordance with Section 14.2.1 or 14.2.2, then (i) notwithstanding anything in Section 12.4.1 to the contrary, Medinet’s obligations under Section 12.4.1 shall survive for a period of [**] years after the
effective date of termination, (ii) the license grant to Argos in Section 6.3 shall, solely with respect to licensable subject matter in existence on the effective date of termination, survive and shall become non-exclusive and be
fully-paid, perpetual and include an unrestricted right to grant sublicenses, (iii) Medinet shall as promptly as practicable, and to the extent not prohibited by law or practically not impossible, transfer and assign to Argos or Argos’
designee at Argos’ cost (A) possession and ownership of all governmental or regulatory correspondence, conversation logs, filings and approvals (including without limitation all Regulatory 

  
 31 

 
Approvals and pricing and reimbursement approvals) relating to the Development, Manufacture or Commercialization of the Licensed Product and all Licensed Product Trademarks and execute any and
all documents and carry out any other actions as may be requested by Argos to assist Argos with all regulatory filings with the applicable Regulatory Authorities required in connection with the termination of this Agreement to ensure that all
Regulatory Approvals in the Territory can be transferred or issued to Argos or Argos’ designee, (B) copies of all data, reports, records and materials in Medinet’s possession or Control relating to the Development, Manufacture or
Commercialization of the Licensed Product, including without limitation all non-clinical and clinical data relating to the Licensed Product, including without limitation customer lists and customer contact information and all adverse event data in
Medinet’s possession or Control, and (C) all records and materials in Medinet’s possession or Control containing Confidential Information of Argos, (iv) as promptly as practicable appoint Argos or Argos’ designee as
Medinet’s and/or Medinet’s Related Parties’ agent for all Licensed Product-related matters involving Regulatory Authorities in the Territory until all Regulatory Approvals and other regulatory filings have been transferred to Argos or
its designee, to the extent not prohibited by law or practically not impossible, (v) if the effective date of termination is after First Commercial Sale, then Medinet shall as promptly as practicable appoint Argos as its exclusive distributor
of the Licensed Product in the Territory and grant Argos the right to appoint sub-distributors, until such time as all Regulatory Approvals in the Territory have been transferred to Argos or its designee, (vi) if Medinet or its Related Parties
are Manufacturing Licensed Product and the Supply Agreement is not then in effect, at Argos’ option, to the extent not prohibited by law or practically not impossible, supply the Licensed Product to Argos in the Territory on commercially
reasonable terms (but any event, no less favorable than those on which Medinet supplied the Licensed Product prior to such termination to the applicable distributor(s) in the Territory) until such time as all Regulatory Approvals in the Territory
have been transferred to Argos or its designee, Argos has obtained all necessary manufacturing approvals and Argos has procured or developed its own source of Licensed Product supply, (vii) if Argos so requests, Medinet shall transfer to Argos
any Third Party agreements relating to the Development, Manufacture or Commercialization of the Licensed Product to which Medinet is a party, subject to any required consents of such Third Party, which Medinet shall use Commercially Reasonable
Efforts to obtain promptly, and (viii) unless otherwise agreed by Argos in writing, all Sublicense Agreements shall automatically terminate. The license granted and other transfers to be effected pursuant to this Section 14.2.3(a) shall be
royalty-free, fully paid and perpetual. Medinet shall execute all documents and take all such further actions as may be reasonably requested by Argos in order to give effect to the foregoing clauses (i) through (viii) . 

(b) Termination by Medinet for Cause. Without limiting any other legal or equitable remedies that Medinet may have (including a
claim for damages), if Medinet terminates this Agreement in accordance with Section 14.2.1(a) or (b), then the licenses granted to Argos under this Agreement shall terminate and, provided that Argos has not exercised the Revocation Right with
respect to the Commercialization License and Medinet has made the First Commercial Sale of Licensed Product in the Territory, Medinet shall have an option to continue the business by sending a written notice to Argos and if Medinet exercises its
option then the licenses granted to Medinet under this Agreement with respect to the Licensed Product shall continue in full force and effect; provided, that Medinet continues to use Commercially Reasonable Efforts to Manufacture,
Commercialize the Licensed Product and comply with its obligations under Sections 10.1 and 10.2, pay all amounts that become due to Argos pursuant to Article 9 as a result of such Commercialization and comply in all respects with the requirements of
each Argos In-License. 

  
 32 

 (c) Termination upon Bankruptcy of a Party. If this Agreement is terminated by
either Party (the “Non-Bankrupt Party”) pursuant to Section 14.2.1(b) due to the rejection of this Agreement by or on behalf of the other Party (the “Bankrupt Party”) under Section 365 of the United States
Bankruptcy Code (the “Code”) or an equivalent type of provision under a relevant law applicable to the Party in question, all licenses and rights to licenses granted under or pursuant to this Agreement by the Bankrupt Party to the
Non-Bankrupt Party are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the Code, licenses of rights to “intellectual property” as defined under Section 101(35A) of the Code. The Parties agree that the
Non-Bankrupt Party, as a licensee of such rights under this Agreement, shall retain and may fully exercise all of its rights and elections under the Code, and that upon commencement of a bankruptcy proceeding by or against the Bankrupt Party under
the Code, the Non-Bankrupt Party shall be entitled to a complete duplicate of, or complete access to (as the Non-Bankrupt Party deems appropriate), any such intellectual property and all embodiments of such intellectual property. Such intellectual
property and all embodiments thereof shall be promptly delivered to the Non-Bankrupt Party (i) upon any such commencement of a bankruptcy proceeding upon written request therefor by the Non-Bankrupt Party, unless the Bankrupt Party elects to
continue to perform all of its obligations under this Agreement or (ii) if not delivered under (i) above, upon the rejection of this Agreement by or on behalf of the Bankrupt Party upon written request therefor by the Non-Bankrupt Party.
The foregoing provisions are without prejudice to any rights the Non-Bankrupt Party may have arising under the Code or other applicable law. The parties intend for the substance of this Section 14.2(c) to apply worldwide, even if the Code does
not expressly apply to the Bankrupt Party or to the Non-Bankrupt Party. 
 14.3 Effect of Expiration or Termination; Survival.
Expiration or termination of this Agreement shall not relieve the Parties of any obligation accruing prior to such expiration or termination. Any expiration or termination of this Agreement shall be without prejudice to the rights of either Party
against the other accrued or accruing under this Agreement prior to expiration or termination, including without limitation the obligation to pay royalties for the Licensed Product sold prior to such expiration or termination. The provisions of
Articles 11, 14 and 15, and Sections 9.7, 9.8, 10.4, 10.9.2, 10.9.3, 12.3, 12.5, 12.6, 12.7, 13.4, 13.5 and 13.6 shall survive any expiration or termination of this Agreement. Except as set forth in this Article 14, upon termination or expiration of
this Agreement all other rights and obligations of the Parties under this Agreement cease. 
 15. MISCELLANEOUS  

15.1 Assignment. Except as provided in this Section 15.1, this Agreement may not be assigned or otherwise transferred, nor
may any right or obligation hereunder be assigned or transferred, by either Party without the consent of the other Party. However, either Party may, without the other Party’s consent, assign this Agreement and its rights and obligations
hereunder in whole or in part to an Affiliate or to a party that acquires, by merger, sale of assets or otherwise, all or substantially all of the business of the assigning Party to which the subject matter of this Agreement relates. The assigning
Party shall remain responsible for the performance by its assignee of this Agreement or any obligations hereunder so assigned. An assignment to an Affiliate shall terminate, and all rights so assigned shall revert to the assigning Party, if and when
such Affiliate ceases to be an Affiliate of the assigning Party. 
 15.2 Governing Law. This Agreement shall be construed and
the respective rights of the Parties determined in accordance with the substantive laws of the State of New York, notwithstanding any provisions of New York law governing conflicts of laws to the contrary, and the patent laws of the

  
 33 

 
relevant jurisdiction without reference to any rules of conflict of laws. SUBJECT TO SECTION 15.11, THE PARTIES HEREBY IRREVOCABLY CONSENTS TO THE NONEXCLUSIVE JURISDICTION AND VENUE OF ANY STATE
OR FEDERAL COURT SITTING IN NEW YORK COUNTY OVER ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, AND THE PARTIES HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN
SUCH STATE OR FEDERAL COURT. 
 15.3 Entire Agreement; Amendments. This Agreement contains the entire understanding of the
Parties with respect to the subject matter hereof, and supersedes all previous arrangements with respect to the subject matter hereof, whether written or oral. This Agreement (including the Schedules hereto) may be amended, or any term hereof
modified, only by a written instrument duly-executed by authorized representatives of both Parties hereto. 
 15.4
Severability. If any provision hereof should be held invalid, illegal or unenforceable in any respect in any jurisdiction, the Parties hereto shall substitute, by mutual consent, valid provisions for such invalid, illegal or unenforceable
provisions, which valid provisions in their economic effect are sufficiently similar to the invalid, illegal or unenforceable provisions that it can be reasonably assumed that the Parties would have entered into this Agreement with such valid
provisions. In case such valid provisions cannot be agreed upon, the invalid, illegal or unenforceable of one or several provisions of this Agreement shall not affect the validity of this Agreement as a whole, unless the invalid, illegal or
unenforceable provisions are of such essential importance to this Agreement that it is to be reasonably assumed that the Parties would not have entered into this Agreement without the invalid, illegal or unenforceable provisions. 

15.5 Headings. The captions to the Articles and Sections hereof are not a part of this Agreement, but are merely for convenience
to assist in locating and reading the several Articles and Sections hereof. 
 15.6 Waiver of Rule of Construction. Each Party
has had the opportunity to consult with counsel in connection with the review, drafting and negotiation of this Agreement. Accordingly, the rule of construction that any ambiguity in this Agreement shall be construed against the drafting Party shall
not apply. 
 15.7 No Implied Waivers; Rights Cumulative. No failure on the part of Argos or Medinet to exercise, and no delay
in exercising, any right, power, remedy or privilege under this Agreement, or provided by statute or at law or in equity or otherwise, shall impair, prejudice or constitute a waiver of any such right, power, remedy or privilege or be construed as a
waiver of any breach of this Agreement or as an acquiescence therein, nor shall any single or partial exercise of any such right, power, remedy or privilege preclude any other or further exercise thereof or the exercise of any other right, power,
remedy or privilege. 

  
 34 

 15.8 Notices. All notices which are required or permitted hereunder shall be in
writing and sufficient if delivered personally, sent by facsimile, sent by email, sent by nationally-recognized overnight courier or sent by registered or certified mail, postage prepaid, return receipt requested, addressed as follows: 

 

			
	If to Argos, to:	  	Argos Therapeutics, Inc.
		  	4233 Technology Drive
		  	Durham, NC 27704
		  	Attention: President
		  	Facsimile: 919 287-6336
		  	Email:jabbey@argostherapeutics.com
		
	 With a copy to:
	  	Hutchison PLLC
		  	3110 Edwards Mill Road, Suite 300
		  	Raleigh, NC 27612
		  	Attention: William N. Wofford
		  	Facsimile No.: (866) 479-7550
		  	Email: bwofford@hutchlaw.com
		
	If to Medinet, to:	  	Medinet Co., Ltd.
		  	Shin-Yokohama Square Bldg.
		  	 14F, 2-3-12 Shin-Yokohama,
 Kohoku-ku,
Yokohama, Kanagawa, 222-0033 JAPAN

 or to such other address as the Party to whom notice is to be given may have furnished to the other Party in writing in
accordance herewith. Any such notice shall be deemed to have been given: (a) when delivered if personally delivered or sent by facsimile or email on a business day (or if delivered or sent on a non-business day, then on the next business day);
(b) on receipt if sent by overnight courier; and/or (c) on receipt if sent by mail. 
 15.9 Compliance with Export
Regulations. Neither Party shall export any technology licensed to it by the other Party under this Agreement except in compliance with all applicable export laws and regulations. 

15.10 Force Majeure. Neither Party shall be held liable to the other Party nor be deemed to have defaulted under
or breached this Agreement for failure or delay in performing any obligation under this Agreement to the extent that such failure or delay is caused by or results from causes beyond the reasonable control of the affected Party, potentially including
without limitation embargoes, war, acts of war (whether war be declared or not), insurrections, terrorism, riots, civil commotions, strikes, lockouts or other labor disturbances, fire, floods, or other acts of God, or acts, omissions or delays in
acting by any governmental authority or the other Party. The affected Party shall notify the other Party of such force majeure circumstances as soon as reasonably practical, and shall promptly undertake all reasonable efforts necessary to
cure such force majeure circumstances. 
 15.11 Dispute Resolution.  

15.11.1 Disputes. The Parties shall negotiate in good faith and use reasonable efforts to settle any dispute, controversy or
claim arising from, or related to, this Agreement or to the breach hereof (collectively, “Dispute”). In particular, the Chief Executive Officers of the Parties shall attempt to resolve all Disputes. In the event that the Chief
Executive Officers cannot reach an agreement regarding a Dispute, and a Party wishes to pursue the matter, each such Dispute that is not an “Excluded Claim” shall be finally resolved by binding arbitration under the then-current Rules of

  
 35 

 
Arbitration of the International Chamber of Commerce (“ICC”) by three (3) arbitrators appointed in accordance with the said Rules and Section 15.11.2 below, and
judgment on the arbitration award may be entered in any court having jurisdiction thereof. As used in this Section 15.11, the term “Excluded Claim” shall mean a dispute that concerns the validity or infringement of a patent,
trademark or copyright. 
 15.11.2 Arbitration. The arbitration shall be conducted by a panel of three (3) persons
experienced in the pharmaceutical business who are independent of both Parties and neutral with respect to the Dispute presented for arbitration. Within [**] days after initiation of arbitration, each Party shall select one person to act as
arbitrator and the two Party-selected arbitrators shall select a third arbitrator within [**] days of their appointment. If the arbitrators selected by the Parties are unable or fail to agree upon the third arbitrator, the third arbitrator shall be
appointed by the ICC International Court of Arbitration. The place of arbitration shall be New York, New York, and all proceedings and communications shall be in English. 

Either Party may apply to the arbitrators for interim injunctive relief until the arbitration award is rendered or the controversy is
otherwise resolved. Either Party also may, without waiving any remedy under this Agreement, seek from any court having jurisdiction any injunctive or provisional relief necessary to protect the rights or property of that Party pending the
arbitration award. The arbitrators shall have no authority to award punitive or any other type of damages not measured by a Party’s compensatory damages. Each Party shall bear its own costs and expenses and attorneys’ fees, and the Party
that does not prevail in the arbitration proceeding shall pay the arbitrators’ and any administrative fees of arbitration. Except to the extent necessary to confirm an award or as may be required by law, neither a Party nor an arbitrator may
disclose the existence, content, or results of an arbitration without the prior written consent of both Parties. In no event shall an arbitration be initiated after the date when commencement of a legal or equitable proceeding based on the dispute,
controversy or claim would be barred by the applicable New York statute of limitations. 
 (a) The Parties agree that any payments made
pursuant to this Agreement pending resolution of the Dispute shall be refunded promptly if an arbitrator or court determines that such payments are not due. 

(b) The Parties hereby agree that any disputed performance or suspended performances pending the resolution of the arbitration that the
arbitrators determine to be required to be performed by a Party must be completed within a reasonable time period following the final decision of the arbitrator. 

(c) The Parties hereby agree that any monetary payment to be made by a Party pursuant to a decision of the arbitrators shall be made in United
States dollars, free of any tax or other deduction. The Parties further agree that the decision of the arbitrators shall be the sole, exclusive and binding remedy between them regarding determination of the matters presented to the arbitrator. 

15.12 Independent Contractors. It is expressly agreed that Argos and Medinet shall be independent contractors and that the
relationship between Argos and Medinet shall not constitute a partnership, joint venture or agency. Argos shall not have the authority to make any statements, representations or commitments of any kind, or to take any action, which shall be binding
on Medinet, without the prior written consent of Medinet, and Medinet shall not have the authority to make any statements, representations or commitments of any kind, or to take any action, which shall be binding on Argos without the prior written
consent of Argos. 

  
 36 

 15.13 Counterparts. The Agreement may be executed in two or more counterparts, each
of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 15.14 Binding Effect;
No Third Party Beneficiaries. As of the Effective Date, this Agreement shall be binding upon and inure to the benefit of the Parties and their respective permitted successors and permitted assigns. Except as expressly set forth in this
Agreement, no person or entity other than the Parties and their respective Affiliates and permitted assignees hereunder shall be deemed an intended beneficiary hereunder or have any right to enforce any obligation of this Agreement. 

[THE REMAINDER OF THIS PAGE HAS BEEN LEFT INTENTIONALLY BLANK] 

  
 37 

 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first set forth
above. 
  

									
	MEDINET CO., LTD.	 		 	ARGOS THERAPEUTICS, INC.
					
	BY:	 	 /s/ Ryuji Maekawa, Ph. D.
	 		 	BY:	 	/s/ Jeffrey D. Abbey
	NAME:	 	 Ryuji Maekawa, Ph. D.
	 		 	NAME:	 	Jeffrey D. Abbey
					
	TITLE:	 	 Senior Executive Officer
	 		 	TITLE:	 	President and CEO

  
 38 

 SCHEDULE A 

ARCELIS PERSONALIZED IMMUNOTHERAPY PLATFORM 

Arcelis is Argos’ proprietary active immunotherapy technology platform for generating fully personalized RNA-loaded dendritic cell
immunotherapies. Argos uses the Arcelis platform to manufacture AGS-003, which is initially being developed for the treatment of mRCC, and AGS-004, which is being developed for the treatment of HIV. 

The Arcelis platform is focused on dendritic cells that present antigens to the attention of the immune system and are critical to the human
immune system’s recognition of the presence of proteins derived from cancer cells or virus-infected cells. Dendritic cells are capable of internalizing cancer protein antigens or virus protein antigens and displaying fragments of these protein
antigens on their surface as small peptides. The dendritic cells then present these peptide antigens to T-cells capable of binding to these peptide antigens and producing a large complement of molecular factors that, in the case of cancer, lead to
direct cancer cell death and, in the case of infectious disease, kill virus-infected cells to control the spread of infectious pathogens. 

The following graphic illustrates the processes comprising our Arcelis platform: 

 
 

 
 As shown in the graphic above, the Arcelis platform requires two components derived from the particular
patient to be treated, specifically: 
  

	 	•	 	a disease sample from the patient — tumor cells in the case of cancer or a blood sample containing virus in the case of infectious disease — which is generally collected at the time of diagnosis or initial
treatment, and 

  

	 	•	 	dendritic cells derived from the patient’s monocytes, a particular type of white blood cell, which are obtained from the patient through a laboratory procedure called leukapheresis that occurs after diagnosis and
at least four weeks prior to the initiation of our immunotherapy. 

  
 39 

 The tumor cells, or the blood sample containing the virus, and the leukapheresis product are
shipped separately following collection from the clinical site to a centralized manufacturing facility where we use standard methods to isolate the patient’s mRNA, which is a key component of the genetic code, from the disease sample and
amplify the mRNA. In parallel, we take the monocytes from the leukapheresis product and culture them using a proprietary process to create matured dendritic cells. Argos then immerses the matured dendritic cells in a solution of the patient’s
isolated mRNA and a synthetic RNA that encodes a protein known as CD40 ligand, or CD40L, and apply a brief electric pulse to the solution, in a process referred to as electroporation. This process enables the patient’s isolated mRNA and the
CD40L protein to pass into, or load, the dendritic cells. Argos then further cultures the mRNA-loaded dendritic cells so that these cells allow for antigen expression from the patient’s mRNA and presentation in the form of peptides on the
surface of the dendritic cells. These mature, loaded dendritic cells are formulated into the patient’s plasma that was collected during the leukapheresis to become the Arcelis-based drug product. Argos then vials, freezes and ships the drug
product to the clinic, which thaws the drug product and administers it to the patient by intradermal injection. 
 Upon injection into the
skin of the patient, the antigen-loaded dendritic cells in the drug product migrate to the lymph nodes near the site of the injection. It is at these lymph nodes that the drug product comes into contact with T-cells. Argos believes that through this
interaction the loaded dendritic cells orchestrate the differentiation, expansion and education, of antigen-specific T-cells. A unique property of the dendritic cells is that they result in the generation of CD8+ central and effector memory T-cells.
Once activated and expanded, these T-cells are able to seek out and kill cancer or virus-infected cells that express the identical antigens as those displayed on the surface of the dendritic cells. Because the generation of these T-cells is
dependent on secretion of IL-12 from the dendritic cells, measurement of IL-12 is a marker for potency of AGS-003 and potentially other Arcelis-based products. 

  
 40 

 SCHEDULE B 

ARGOS PATENT RIGHTS 
 [**] 

  
 41 

 [**] 

  
 42 

 SCHEUDULE C 

AUTOMATED SYSTEMS 
 Argos Automated
Systems were designed as works for hire by Invetech in collaboration with Argos. 
 The Automated Nucleic Acid Processing System includes systems, devices
and components thereof, as well as related methods for automated processing of samples in a closed container, including automated isolation, purification, amplification, processing and packaging of nucleic acids. Examples of the Argos Automated
Nucleic Acid Processing System are described in PCT Publication [**]. Uses of this System include isolation of RNA from tumor lysates, RT-PCR, in vitro transcription and related nucleic acid purification and packaging steps. 

The Automated Cell Processing Systems are held as trade secret, with the exception of a centrifuge bowl described in International Patent Application [**] and
medicament devices described in International Patent Application [**]. These System and components thereof automate many aspects of cell processing, differentiation, electroporation, and packaging. Uses of these System include automated
differentiation of monocytes into mature RNA-loaded dendritic cells. 

  
 43 

 SCHEDULE D 

ARGOS IN-LICENSES 
 1.
Collaboration Termination Agreement between Argos and Kyowa Hakko Kirin Co., Ltd dated December 31, 2009. 
 2. License Agreement between University of
Antwerp, Gerold Shuler and Argos dated April 1, 2012. 
 3. Patent Assignment Agreement between Argos (f/k/a Merix Bioscience, Inc.) and Gerold Schuler
dated August 1, 2002. 
 4. License Agreement between Argos (f/k/a Merix Bioscience, Inc.) and Duke University dated January 10, 2000, as amended.

  
 44Unassociated Document

 

EXECUTION VERSION

 

Stock Purchase Agreement

 

 

by and among

 

Retrophin, Inc.

as Buyer,

 

Kyalin Biosciences, Inc.,

As the Company,

 

and

 

the Sellers party hereto

 

 

Dated: December 23, 2013

 

  

 

  

 

TABLE OF CONTENTS

 

Page

 

	
ARTICLE 1 SALE AND PURCHASE

	
1

	
1.1.

	
Sale and Purchase of Kyalin Stock.

	
1

	
1.2.

	
Purchase Price.

	
2

	
1.3.

	
Closing

	
4

	 	 
	
ARTICLE 2 OTHER AGREEMENTS

	
5

	
2.1.

	
Agent.

	
5

	
2.2.

	
Tax Matters.

	
6

	
2.3.

	
Public Announcements.

	
7

	 	 
	
ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF THE COMPANY

	
7

	
3.1.

	
Organization, Good Standing and Qualification.

	
7

	
3.2.

	
Capitalization and Ownership.

	
7

	
3.3.

	
No Subsidiaries or Other Ownership Interests.

	
8

	
3.4.

	
Authority of the Company.

	
8

	
3.5.

	
No Conflicts.

	
8

	
3.6.

	
Consents and Approvals.

	
9

	
3.7.

	
Assets, Title and Condition, Absence of Undisclosed Liabilities.

	
9

	
3.8.

	
Compliance with Laws.

	
10

	
3.9.

	
Tax Returns and Reports.

	
10

	
3.10.

	
Litigation.

	
11

	
3.11.

	
Employee Benefit Plans.

	
11

	
3.12.

	
Contracts and Commitments.

	
12

	
3.13.

	
Bank and Brokerage Accounts; Powers of Attorney.

	
13

	
3.14.

	
Intellectual Property.

	
13

	
3.15.

	
Insurance.

	
15

	
3.16.

	
Employees

	
15

	
3.17.

	
Labor and Employee Relations

	
15

	
3.19.

	
Permits and Regulatory Filings

	
16

	
3.20.

	
Real Property

	
17

	
3.21.

	
Environmental

	
17

	
3.22.

	
Transactions with Affiliates

	
17

	
3.23.

	
No Trading in the Buyer Securities

	
17

	
3.24.

	
Financial Advisors

	
18

	
3.25.

	
Disclosure

	
18

	 	 
	
ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF THE SELLERS

	
18

	
4.1.

	
Ownership of Kyalin Stock.

	
18

	
4.2.

	
Existence and Authorization.

	
18

	
4.3.

	
No Conflicts.

	
19

	
4.4.

	
Investment.

	
19

	
4.5.

	
Brokers’ or Finders’ Fees.

	
19

 

  

 

  

 

TABLE OF CONTENTS

(Continued)

 

 Page

	 	 
	
ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF THE BUYER

	
19

	
5.1.

	
Organization.

	
20

	
5.2.

	
Authorization of Transaction.

	
20

	
5.3.

	
Noncontravention.

	
20

	
5.4.

	
Compliance with Laws; Permits.

	
21

	
5.5.

	
Retrophin Common Stock.

	
21

	
5.6.

	
SEC Documents.

	
21

	
5.7.

	
Absence of Changes.

	
21

	
5.8.

	
Sufficient Funds.

	
21

	
5.9.

	
Brokers’ Fees.

	
22

	 	 
	
ARTICLE 6 SURVIVAL OF REPRESENTATIONS AND WARRANTIES

	
22

	 	 
	
ARTICLE 7 CLOSING DELIVERABLES

	
22

	
7.1.

	
Sellers’ Deliverables.

	
22

	
7.2.

	
Buyer Deliverables.

	
23

	 	 
	
ARTICLE 8 INDEMNIFICATION

	
23

	
8.1.

	
Indemnification of the Buyer Indemnitees.

	
23

	
8.2.

	
Indemnification of Sellers Indemnitees.

	
24

	
8.3.

	
Limitations.

	
24

	
8.4.

	
Method of Asserting Claims, etc.

	
25

	
8.5.

	
Payment of Indemnity Claim; Set Off.

	
28

	
8.6.

	
Knowledge of Breach.

	
28

	
8.7.

	
Adverse Consequences.

	
28

	
8.8.

	
Exclusivity.

	
28

	
8.9.

	
No Implied Representations.

	
29

	 	 
	
ARTICLE 9 NOTICES

	
29

	 	 
	
ARTICLE 10 GENERAL

	
30

	
10.1.

	
Usage of Terms.

	
30

	
10.2.

	
Legal Representation of the Parties.

	
31

	
10.3.

	
Incorporation of Schedules and Exhibits; Entire Agreement.

	
31

	
10.4.

	
Waiver.

	
31

	
10.5.

	
Amendment.

	
31

	
10.6.

	
Counterparts.

	
32

	
10.7.

	
Headings

	
32

	
10.8.

	
Governing law.

	
32

	
10.9.

	
WAIVER OF JURY TRIAL.

	
32

	
10.10.

	
CONSENT TO JURISDICTION.

	
32

	
10.11.

	
Binding Effect.

	
32

	
10.12.

	
Expenses.

	
33

	
10.13.

	
Further Assurances.

	
33

 

  

iii

  

 

TABLE OF CONTENTS

(Continued)

 

 Page

 

	
10.14.

	
No Third Party Beneficiary.

	
33

	
10.15.

	
Assignment.

	
33

	
10.16.

	
Character of Payments.

	
33

	
10.17.

	
Limitation of Liability.

	
34

	
10.18.

	
Trustee Capacity of Wilmington Trust.

	
34

Exhibits

Exhibit A  Non-Competition, Non-Solicitation and Non-Disclosure Agreement

Exhibit B   General Release

 

  

iv

  

INDEX OF DEFINED TERMS

 

	
Acquisition

	
1

	
Adverse Consequences

	
28

	
Agent

	
5

	
Agreement

	
1

	
Asset Transfer

	
4

	
Assets

	
9

	
Business Day

	
2

	
Buyer

	
1

	
Buyer Indemnitees

	
25

	
Change in Control

	
3

	
Claim Notice

	
26

	
Closing

	
4

	
Closing Cash Consideration

	
2

	
Closing Date

	
4

	
Closing Tax Periods

	
6

	
COBRA

	
12

	
Common Stock

	
7

	
Company

	
1

	
Completion

	
2

	
Compound

	
2

	
Contractual Obligations

	
12

	
Environmental Laws

	
17

	
ERISA

	
10

	
ERISA Affiliate

	
11

	
Exchange Act

	
7

	
First Payment Transaction Expenses

	
2

	
Fundamental Representations

	
22

	
Governmental Body

	
9

	
Indemnified Party

	
25

	
Indemnifying Party

	
25

	
Indemnity Notice

	
27

	
Intellectual Property

	
14

	
Intellectual Property Licenses

	
14

	
IRS

	
10

	
Kyalin Stock

	
1

	
Law

	
8

	
Letter

	
1

	
Lien

	
1

	
Liens

	
1

	
Material

	
12

	
Non-Competition Agreement

	
22

	
Notice Period

	
26

	
Order

	
9

	
Owned Intellectual Property

	
13

	
Permits

	
16

 

  

v

  

 

	
Permitted Liens

	
9

	
Person

	
8

	
Persons

	
8

	
Plan

	
11

	
Post-Closing Cash Consideration

	
2

	
Pro Rata Share

	
4

	
Purchase Price

	
2

	
Purchaser Shares

	
2

	
Retrophin Common Stock

	
2

	
RPIFT

	
34

	
RPSFT

	
34

	
Sale

	
4

	
SEC

	
21

	
SEC Documents

	
21

	
Second Payment Transaction Expenses

	
2

	
Securities Act

	
19

	
Seller

	
1

	
Sellers

	
1

	
Sellers Indemnitees

	
25

	
Tax

	
11

	
Taxes

	
11

	
Third Party Claim

	
26

	
Time-based Payments

	
3

	
Transaction Documents

	
18

	
Transaction Expenses

	
33

	
Transfer Tax

	
6

	
 

	  

 

  

vi

  

 

STOCK PURCHASE AGREEMENT

 

This STOCK PURCHASE AGREEMENT, dated as of December 23, 2013 (the “Agreement”), is by and among Retrophin, Inc., a Delaware corporation (“Buyer”), Kyalin Biosciences Inc., a Delaware corporation (the “Company”), and the parties set forth on the signature pages hereto (each a “Seller,” and collectively the “Sellers”).

 

RECITALS:

 

WHEREAS, the Company has executed and delivered a letter of intent dated September 6, 2013 (the “Letter”), setting for the terms and conditions of the proposed acquisition by Buyer of all of the issued and outstanding capital stock (“Kyalin Stock”), of the Company (the “Acquisition”);

 

WHEREAS, the Sellers collectively own 100% of the issued and outstanding Kyalin Stock; and

 

WHEREAS, the Letter contemplates the negotiation and execution of a legally binding, written agreement setting forth the definitive terms and conditions of the Acquisition, and the parties hereto intend that this Agreement shall constitute the definitive agreement.

 

AGREEMENT:

 

NOW, THEREFORE, in consideration of the mutual premises, covenants and agreements set forth herein and in reliance upon the representations and warranties contained herein, the parties hereto covenant and agree as follows:

 

ARTICLE 1

SALE AND PURCHASE

 

1.1. Sale and Purchase of Kyalin Stock.

 

On the terms and subject to the conditions contained in this Agreement, at the Closing, (i) the Sellers shall sell, transfer, convey, assign and deliver to the Buyer, and the Buyer shall purchase from the Sellers, free and clear of all liens, encumbrances, mortgages, pledges, charges, options, rights, security interests, agreements or claims of any nature whatsoever, recorded or unrecorded (individually a “Lien” and collectively the “Liens”), other than Permitted Liens, all of the Sellers’ right, title and interest in and to the Kyalin Stock owned of record and beneficially by the Sellers and (ii) in consideration of the sale of the Kyalin Stock, Buyer shall deliver, or cause to be delivered, to the Sellers the consideration specified in Section 1.2.

 

  

  

  

 

1.2. Purchase Price.

 

(a) The aggregate purchase price for all of the Kyalin Stock shall be (1) cash in an amount equal to (A) ########* less (B) the aggregate Transaction Expenses set forth on Schedule 1.2(a) hereto and designated as “First Payment Transaction Expenses”, to be delivered to Sellers at Closing according to each Seller’s Pro Rata Share (the “Closing Cash Consideration”); (2) cash in the amount of the aggregate Transaction Expenses set forth on Schedule 1.2(a) hereto and designated as “First Payment Transaction Expenses”, to be delivered to the recipients set forth thereon at Closing; (3) cash in the amount of (x) ########* less (y) the aggregate Transaction Expenses set forth on Schedule 1.2(a) hereto and designated as “Second Payment Transaction Expenses”, to be delivered to Sellers on ########* (or on the next day other than Saturday, Sunday or a public holiday on which banks are closed under the laws of the State of New York (a “Business Day”) if such date is not a Business Day) according to each Seller’s Pro Rata Share (the “Post-Closing Cash Consideration”); (4) cash in the amount of the aggregate Transaction Expenses set forth on Schedule 1.2(a) hereto and designated as “Second Payment Transaction Expenses”, to be delivered to the recipients set forth thereon on ########* and (5) ########* of shares (the “Purchaser Shares”) of Buyer’s common stock, par value $0.0001 per share (“Retrophin Common Stock”), at such times and in amounts determined in such manner as set forth below:

 

(i) ########*;

 

(ii) ########*;

 

(iii) ########*;

 

(iv) ########*; and

 

(v) ########*.

 

The Closing Cash Consideration, the Post-Closing Cash Consideration and the Purchaser Shares shall be referred to herein collectively as the “Purchase Price.”

 

(b) The following definitions shall apply to this Section 1.2:

 

(i) ########*.

 

(ii) “Completion” with respect to a human clinical trial means the database lock.

 

(iii) “Compound” shall mean any drug compound that includes either of carbetocin or oxytocin.

 

(iv) ########*.

 

(v) ########*.

 

____________________

*  ########  =   Material omitted pursuant to a request for Confidential Treatment and submitted separately to the Commission on the date of submission of this Current Report on Form 8-K.

 

  

2

  

 

(vi) ########*.

 

(vii) ########*.

 

(c) If, pursuant to Section 1.2(a), the number of shares of Retrophin Common Stock a Seller would be entitled to receive results in receipt of fractional shares, the aggregate number of shares of Retrophin Common Stock the Seller is entitled to purchase will be rounded up to the nearest whole number.

 

(d) If, at any time that Purchaser Shares are issuable to the Sellers hereunder, (i) adequate current public information with respect to Buyer is not available (as determined by Rule 144(c), promulgated under the Securities Act, or any successor rule thereto) and does not become so available within thirty days after the date such Purchaser Shares first become issuable, or (ii) Buyer is not then subject to the reporting requirements of section 13 or 15(d) of the Exchange Act, Buyer shall, instead of issuing such Purchaser Shares, issue to each Seller one half (1/2) of the number of Purchaser Shares required to be issued under this Agreement and pay each Seller, in cash, the other one half (1/2) of the dollar amount that would otherwise be issued in Purchaser Shares.  By way of an example, if on the date that issuance of Purchaser Shares is due under Section 1(a)(iii) hereof, either of the conditions set forth in the first sentence of this Section 1(a)(d) is met, then (1) Buyer shall issue to each Seller his, her or its Pro Rata Share of a number of shares of Retrophin Common Stock determined by dividing ########* by ########* and (2) Buyer shall pay the Sellers cash in the amount of ########* according to each Seller’s Pro Rata Share.

 

(e) In the event of changes in the outstanding Common Stock of the Buyer by reason of stock dividends, split-ups, recapitalizations, reclassifications, combinations, mergers or exchanges of shares, separations, reorganizations, liquidations, or the like, the number, class, and kind of shares to be issued to the Sellers pursuant to this Section 1.2 shall be proportionately adjusted to give the Sellers, on the applicable issuance date, the total number, class, and kind of shares as the Seller would have owned had the shares been issued prior to the event and had the Seller continued to hold such shares until after the event requiring such adjustment.  Buyer shall provide prompt written notice to each Seller of any such adjustment, including the total number, class, and kind of shares issuable and showing in reasonable detail the facts on which that adjustment is based.  All adjustments under this Section 1.2(e) shall be made cumulatively and successively whenever an event requiring any such adjustment occurs.

 

(f) Notwithstanding anything to the contrary herein, in the event of any Sale or Asset Transfer of Buyer following the Closing Date (any such transaction a “Change in Control”), payment of the Closing Cash Consideration and Post-Closing Cash Consideration, to the extent not already paid to the Sellers, the issuances of Retrophin Common Stock issuable pursuant to ########*, to the extent not already issued hereunder, and the payment of any cash consideration required under Section 1(a)(i) and Section 1(a)(ii), after giving effect to the adjustments required by Section 1(d) and to the extent not already paid (collectively the “Time-based Payments”), shall be accelerated and shall be due and payable or issuable, as the case may be, to the Sellers as of immediately prior to the effective date of such Change in Control.  For the purposes of this Section 1.2(f), “Sale” shall mean (A) any consolidation or merger of Buyer with or into any other corporation or other entity or person (other than the Company), or any other corporate reorganization, other than any such consolidation, merger or reorganization in which the stockholders of Buyer immediately prior to such consolidation, merger or reorganization, continue to hold at least a majority of the voting power of the surviving entity in substantially the same proportions (or, if the surviving entity is a wholly owned subsidiary, its parent) immediately after such consolidation, merger or reorganization; and “Asset Transfer” shall mean the sale, lease, exclusive license or other disposition (except pursuant to this agreement) of all or substantially all of the Assets of the Company as of the Closing Date, unless the acquirer of such assets expressly undertakes to perform the obligations of the Buyer hereunder.   Notwithstanding anything to the contrary herein, in no event shall any Sale or Asset Transfer in which Martin Shkreli serves as principal executive officer of the acquiring or surviving entity immediately after the consummation thereof constitute a Change of Control.

 

____________________ 

* ########  =   Material omitted pursuant to a request for Confidential Treatment and submitted separately to the Commission on the date of submission of this Current Report on Form 8-K.

 

  

3

  

 

1.3. Closing

 

(a) Closing. Assuming the proper execution and delivery of all of the documents set forth in this Section 1.3, the closing of the transactions contemplated hereby (the “Closing”) shall take place simultaneously with the execution and delivery of this Agreement, and the date and time of the completion of the foregoing shall be deemed the “Closing Date.”  The Closing shall take place via the electronic exchange of documents and signatures.  The parties acknowledge and agree that (i) all proceedings at the Closing shall be deemed to be taken and all documents to be executed and delivered by all parties at the Closing shall be deemed to have been taken and executed simultaneously, and no proceedings shall be deemed taken nor any documents executed or delivered until all have been taken, executed or delivered, and (ii) that the Closing shall be deemed to have taken place at the offices of Olshan Frome Wolosky LLP, located at Park Avenue Tower, 65 East 55th Street, New York, New York 10022, at 12:01 a.m., prevailing Eastern time, on the Closing Date.

 

(b) Closing Transactions.  On the terms and subject to the conditions set forth in this Agreement, the parties shall consummate the following closing transactions at the Closing:

 

(i) The Company shall deliver or cause to be delivered to Buyer the documents referred to in Section 7.1;

 

(ii) the Buyer shall deliver to Agent the documents referred to in Section 7.2;

 

(iii) The Buyer shall deliver to each Seller by wire transfer of immediately available funds to the account designated by such Seller the proportionate share of the Closing Cash Consideration determined based on the number of shares of Kyalin Stock owned by such Seller to the aggregate number of shares of Kyalin Stocked owned by all Sellers (the “Pro Rata Share”); and

 

(iv) The Buyer shall pay the Transaction Expenses set forth on Schedule 1.2(a) and designated as “First Payment Transaction Expenses” according to the wire transfer or check delivery instructions provided by the Company.

 

  

4

  

 

ARTICLE 2

OTHER AGREEMENTS

 

2.1. Agent.

 

(a) Each of the Sellers hereby authorizes, directs and appoints Dr. Srinivas Rao (the “Agent”) to act as sole and exclusive agent, attorney-in-fact and representative of each Seller with respect to all matters arising under, in connection with or relating to this Agreement, including, without limitation, (i) determining, giving and receiving notices and processes under this Agreement, (ii) performing the rights and duties expressly assigned to the Agent hereunder, and (iii) taking all actions and incurring all expenses as the Agent shall reasonably deem necessary or prudent in connection with any of the foregoing, all on such terms and in such manner as he deems appropriate in Agent’s sole and absolute discretion. Any such actions taken, exercises of rights, power or authority, and any decision, determination, waiver, amendment or agreement made by the Agent consistent herewith, shall be absolutely and irrevocably binding on each Seller as if such Seller personally had taken such action, exercised such rights, power or authority or made such decision, determination, waiver, amendment or agreement in such Seller’s individual capacity, and no Seller shall have the right to object, dissent, protest or otherwise contest the same.  Any action required to be taken by a Seller hereunder or any such action which a Seller, at his, her or its election, has the right to take hereunder, shall be taken only and exclusively by the Agent and no Seller acting on his own shall be entitled to take any such action; provided that Agent shall not have the authority to: (1) change the obligations of any Seller under Article 8 of this Agreement; (2) change the definition of Pro Rata Share or the manner in which it is calculated; (3) amend or terminate this Agreement (including pursuant to Sections 10.4 and 10.5) if the effect of such amendment or termination affects a Seller (other than Agent) adversely; or (4) waive this Agreement (including pursuant to Sections 10.4 and 10.5), unless the affect of such waiver affects each Seller proportionately and in the same manner.

 

(b) The appointment of the Agent as each Seller’s attorney-in-fact revokes any power of attorney heretofore granted that authorized any other Person or Persons to represent such Seller with regard to the Agreement. The appointment of the Agent as attorney-in-fact pursuant hereto is coupled with an interest and is irrevocable.

 

(c) The Agent hereby accepts the foregoing appointment and agrees to serve in such capacity, subject to the provisions hereof, for the period of time from and after the date hereof without compensation except for the reimbursement from the Sellers of reasonable out-of-pocket expenses incurred by the Agent in his capacity as such. Each Seller hereby waives all actual or potential conflicts of interest arising out of the Agent’s activities or authority as Agent and his relationships with the Companies, Buyer or any of their respective affiliates (whether before or after the Closing), whether as an employee, consultant, agent, director, officer, manager, equity Seller or other representative.

 

(d) Notwithstanding anything to the contrary contained in this Agreement, the Agent shall have no liabilities, duties or responsibilities to the Sellers except those expressly set forth herein, and no implied covenants, functions, responsibilities, duties, obligations or liabilities on behalf of any Seller shall otherwise exist against the Agent.  The Agent shall not be liable to any of the Sellers for any decisions made or actions taken or omitted to be taken by the Agent in good faith and believed by Agent to be authorized by, or within the rights or powers conferred upon it by, this Agreement (except for Agent’s gross negligence or willful misconduct),  The Sellers shall severally indemnify and hold harmless the Agent against any and all Adverse Consequences arising out of actions taken or omitted to be taken pursuant to the provisions of this Section 2.1 and such other provisions of this Agreement as may be applicable (except in the case of the gross negligence or willful misconduct by such Agent), including the reasonable fees of attorneys, accountants and other advisors and all costs and expenses of investigation and defense of claims.  The several liability of each Seller under this Section 2.1(d) will be pro rata in accordance with the Pro Rata Share.

 

  

5

  

 

(e) Each of Buyer, the Company and their respective affiliates (i) shall be fully protected in relying upon and shall be entitled to rely upon, and shall have no liability to the Sellers with respect to, agreements, actions, decisions and determinations of the Agent in connection with this Agreement, and (ii) shall be entitled to assume that all agreements, actions, decisions and determinations of the Agent in connection with this Agreement are fully authorized by and binding upon all of the Sellers.

 

2.2. Tax Matters.

 

(a) The Company’s tax year will end on the Closing Date for federal income tax purposes.  The Buyer shall prepare and file, or cause to be prepared and filed, all federal income Tax Returns relating to the Company for all Tax periods ending on, before or after the Closing Date, and the Buyer shall pay all Taxes (including state and federal income and franchise taxes) of the Company when due from and after the Closing Date.  All Tax Returns of the Company for all periods ending on or prior to the Closing Date (the “Pre-Closing Tax Periods”) shall be prepared consistently with the past practice of the Company, unless otherwise required by applicable law.  Buyer shall permit the Agent to review and comment on each Tax Return for any Pre-Closing Tax Periods prior to filing and shall accept all comments that are reasonable and to the extent such comments are consistent with the standard set forth in the prior sentence.

 

(b) After the Closing Date, the Agent and the Buyer shall cooperate fully, as and to the extent reasonably requested by the other party, in connection with the preparation and filing of Tax Returns pursuant to this Agreement and any audit, litigation or other proceeding with respect to Taxes.  Agent and Buyer will each make available to the other, as reasonably requested, all information, records or documents relating to liability for Taxes for all periods before or including the Closing Date and will preserve such information, records or documents until the expiration of any applicable statute of limitations or extensions thereof.

 

(c) Any tax refunds and credits of the Company, whether attributable to the Pre-Closing Tax Period or any period ending on or after the Closing Date, shall be for the account of the Buyer.

 

(d) All transfer, documentary, sales, use, stamp, registration and other such Taxes and fees (including any penalties and interest) (“Transfer Tax”) incurred in connection with this Agreement shall be paid by Buyer when due, and Buyer will, at its own expense, file all necessary Tax Returns and other documentation with respect to all such Transfer Taxes and related fees, provided, however, that Buyer shall be entitled to indemnification for one-half of the amount of any such Transfer Tax in accordance with the terms of Article VIII hereof.

 

  

6

  

 

2.3. Public Announcements.

 

The Sellers acknowledges that Parent may be required by the rules of the Securities Exchange Act of 1934 (the “Exchange Act”) to disclose the Acquisition in one or more reports to be filed with the Securities and Exchange Commission, containing such information regarding the Transactions as Buyer may, in its sole and absolute discretion, determine to be necessary and appropriate in order to comply with the requirements of the Exchange Act.  Except for the reports described above and any other notice which is required pursuant to the requirements of Law, each of Buyer and the Sellers hereby agrees that neither it nor any of its affiliates will issue any press release or other public announcement related to the Acquisition without the prior written consent of the other party. Except as set forth above or otherwise agreed in writing by the Buyer, the Sellers shall maintain as confidential the terms and conditions of this Agreement and the Acquisition; provided, however, that the Sellers may disclose such information (a) to its professional advisors, (b) to regulatory officers having jurisdiction over the Sellers or the transactions contemplated by this Agreement and (c) as may be required by applicable Law or legal process or in connection with any legal proceeding to which such Sellers are a party or is otherwise subject.

 

ARTICLE 3

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The Company hereby represents and warrants to Buyer as of the Closing Date that the statements contained in this Article 3 are true and correct except as set forth in the Schedules delivered in connection herewith (provided that any fact or item disclosed in the Schedules with respect to one representation or warranty shall be deemed to be disclosed with respect to each other representation or warranty in this Agreement to which its applicability is readily apparent from the face of the disclosure).

 

3.1. Organization, Good Standing and Qualification.

 

The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to own, hold, use and lease its properties and assets and to conduct its business as it is now being conducted.  The Company is duly registered or qualified as a foreign corporation and is in good standing in all jurisdictions in which the character of the properties and assets now owned or leased by it or the nature of the business now conducted by it requires it to be so registered or qualified, except where the failure to be so registered or qualified and in good standing would not reasonably be expected to have a material adverse effect on the business or assets of the Company.  The Company has delivered to the Buyer true, complete and correct copies of its articles of incorporation and bylaws, as amended to the date of this Agreement.

 

3.2. Capitalization and Ownership.

 

(a) The authorized capital stock of the Company consists of 900 shares of common stock, $0.01 par value per share (the “Common Stock”), 100 shares of which are issued and outstanding as of the date hereof, and 100 shares of preferred stock, $0.01 par value per share, no shares of which are issued and outstanding as of the date hereof.  The Company has no shares of treasury stock.  All of the issued and outstanding shares have been validly issued, are fully paid and non-assessable and were offered, issued, sold and delivered by the Company in compliance with all applicable Law, including any Law concerning the issuance of securities.  None of such shares were issued in violation of any preemptive rights.  There is no individual, firm, corporation, partnership, trust, incorporated or unincorporated association, joint venture, joint stock company, limited liability company, Governmental Body or other entity of any kind, and shall include any successor (by merger or otherwise) of such entity (individually each a “Person” and collectively “Persons”) who by reason of any past or present relationship with the Company, including prior or existing marital relationships, or otherwise, may have any rights or claims with respect to the capital stock of the Company.  There are no outstanding subscriptions, options, rights, warrants, convertible or exchangeable securities, calls or other agreements or commitments with respect to the capital stock of the Company.

 

  

7

  

 

(b) As of immediately prior to the Closing, Sellers hold of record and own beneficially all of the Kyalin Stock.

 

3.3. No Subsidiaries or Other Ownership Interests.

 

The Company does not own, of record or beneficially, or control, directly or indirectly, any capital stock or securities convertible into or exchangeable for capital stock or debt instruments of or any other equity or debt interests in any Person.

 

3.4. Authority of the Company.

 

The Company has all requisite corporate power and authority to enter into, execute and deliver this Agreement and the documents contemplated hereby to be executed by the Company and to perform the obligations to be performed by the Company hereunder and thereunder, respectively.  The execution, delivery and compliance by the Company with the terms of this Agreement and the documents contemplated hereby to be executed by the Company, and the consummation by the Company of the transactions contemplated hereby and thereby, have been duly authorized by all necessary corporate action of the Company.  This Agreement has been duly executed and delivered by the Company and this Agreement constitutes, and the documents contemplated hereby to be executed by the Company upon their execution and delivery as herein provided will constitute, the legal, valid and binding obligations of the Company enforceable against the Company in accordance with their respective terms, subject to (i) the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights and remedies generally, (ii) to the extent the indemnification provisions contained herein may further be limited by applicable laws and principles of public policy, and (iii) as to enforceability, the effect of general principles of equity (regardless of whether enforcement is considered in a proceeding at law or in equity).

 

3.5. No Conflicts.

 

The execution and delivery of this Agreement and the documents contemplated hereby to be executed by the Company do not, and compliance by the Company with the terms hereof and thereof and consummation by the Company of the transactions contemplated hereby and thereby will not, (a) to the Company’s knowledge, violate or conflict with any existing term or provision of any national, federal, state, county, municipal or local law, treaty, statute, code, ordinance, rule or regulation (“Law”) applicable to the Company or any order, writ, judgment, injunction, determination, decision, ruling, assessment, award or decree (“Order”) of any Governmental Body applicable to the Company; (b) conflict with or result in a breach of or default under any of the terms, conditions or provisions of the Amended and Restated Certificate of Incorporation, bylaws or any other organizational documents of the Company or any Contractual Obligation to which the Company, or by which the Company or any of the Assets of the Company may be bound; (c) result in the creation or imposition of any Lien upon any of the Assets or Kyalin Stock; (d) give to others any right of termination, cancellation, acceleration or modification in or with respect to any Contractual Obligation to which the Company is a party or otherwise subject, or by which the Company, the Assets or Kyalin Stock may be bound or subject; or (e) breach any fiduciary duty owed by the Company to any Person.  For purposes of this Agreement, the term “Governmental Body” means any (i) nation, state, county, parish, city, borough, village, district or other jurisdiction, (ii) federal, state, local, municipal, foreign or other government or instrumentality, (iii) governmental or quasi-governmental authority of any nature, including any agency, branch, department, board, commission, court, tribunal or other entity exercising governmental or quasi-governmental powers, (iv) multinational organization or body, (v) body exercising or entitled or purporting to exercise any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power or (vi) official of any of the foregoing, in their capacity as such.

 

  

8

  

 

3.6. Consents and Approvals.

 

The execution and delivery by the Company of this Agreement and the documents contemplated hereby to be executed by the Company, compliance by the Company with the terms hereof and thereof and consummation by the Company of the transactions contemplated hereby and thereby do not require the Company to make any declaration or give any notice to, make any filing or registration with or obtain any authorization, consent, approval or action of any Governmental Body or any other Person.

 

3.7. Assets, Title and Condition, Absence of Undisclosed Liabilities.

 

(a) Schedule 3.7(a) sets forth an accurate list of all personal property and all other tangible assets with a book value equal to or greater than $50,000 owned by the Company as of the Business Day immediately preceding the date of this Agreement.  The Company has good and marketable title to all of its personal properties and assets (the “Assets”), free and clear of any Liens, except for Permitted Liens.  For purposes of this Agreement, the term “Permitted Liens” means:  (a) inchoate mechanics’, materialmens’, carriers’, workmens’, repairmens’, contractors’ Liens and other inchoate Liens arising or incurred in the ordinary course of business and for amounts which are not delinquent and which would not be reasonably expected to be material in nature or amount, and (b) Liens for ad valorem, personal or real property Taxes not yet due and payable or for Taxes that the taxpayer is contesting in good faith.

 

(b) The Assets are suitable for the purposes for which they have been and are being employed in the operation of the business of the Company and are in good operating condition and repair, reasonable wear and tear excepted.  All material Assets used by the Company in its business are either owned by the Company or leased or licensed under the Contractual Obligations identified in Schedule 3.7(b).  There are no actual, pending, or to the knowledge of the Company threatened, claims against any of the Assets that could give rise to a Lien on any of the Assets, or acts or incidents which would reasonably be expected to give rise to any such claims, relating to or arising out of the Assets or the operation of the business of the Company.  The Assets constitute all assets, properties and rights necessary, used or useful in or to the business of the Company as presently operated by the Company.

 

  

9

  

 

(c) The Company has no liabilities that would be required to be set forth on a balance sheet prepared in accordance with U.S. generally accepted accounting principles arising out of transactions entered into on or prior to the date hereof, or any transaction occurring on or prior to the date hereof, including liabilities on account of Taxes or “employee benefit plans” as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder (“ERISA”), except (i) liabilities that do not, in the aggregate, exceed $25,000, (ii) liabilities for trade or business obligations incurred in the ordinary course of business consistent with past practice (none of which is a liability for breach of contract, breach of warranty, product liability, or an environmental liability), (iii) such liabilities as were incurred under any contracts that were not required to be listed on the Schedules attached hereto, if any (none of which is a liability for breach of contract, breach of warranty, product liability, or an environmental liability), (iv) such liabilities of the Company arising under or pursuant to this Agreement and under any Transaction Documents to which the Company is a party, if any, and/or (v) such liabilities of the Company set forth on Schedule 3.7(c),

 

3.8. Compliance with Laws.

 

There has been no failure by the Company or, to the Company’s knowledge, any employee, officer, director or agent of the Company to comply with any Law or Order of any Governmental Body that would reasonably be expected to, individually or in the aggregate, have a material adverse effect on the Buyer’s ability to conduct normal operations of the Company’s business with the Assets after the Closing, subject the Company to any material damage or penalty in any civil, criminal or governmental litigation or proceeding, or could reasonably be expected to be used as the basis for termination or modification of any Contractual Obligation to which the Company is a party or establish a Lien against any of the Assets.

 

3.9. Tax Returns and Reports.

 

The Company has duly and timely filed, or caused to be timely filed, all national, federal, state, local and foreign Tax reports and Tax Returns (including pursuant to extensions) with the appropriate Governmental Bodies in all jurisdictions in which such returns and reports are required to be filed, and all such returns and reports were materially correct as filed.  The Company has duly and timely paid, or caused to be duly and timely paid, all Taxes shown thereon or otherwise claimed to be due.  The Company has duly withheld and, if payable, paid all Taxes which the Company is required to withhold from, and pay relating to, compensation paid to employees of the Company.  The Company has not received any notice of assessment or proposed assessment by the Internal Revenue Service (“IRS”) or any other taxing authority in connection with any Tax Returns and there are no pending Tax examinations by any Governmental Body of any Tax Returns of or Tax claims in respect of the Tax Returns asserted against the Company or its properties.  There are no Tax liens on the Company, the Kyalin Stock or the Assets except for Liens on Assets for current taxes not yet due and payable.  The Company has not waived any Law fixing, or consented to the extension of, any period of time for assessment of any Taxes which waiver or consent is currently in effect.  As used in this Agreement, “Tax” or “Taxes” means all income, gross receipts, sales, use, employment, franchise, profits, ad valorem, personal and real property, excise or other taxes, fees, stamp taxes and duties, assessments or charges of any kind whatsoever (whether payable directly or by withholding), together with all interest and all penalties, additions to tax or additional amounts imposed by any taxing or other authority with respect thereto in any way relating to or arising out of the business of the Company or its Assets, and “Tax Return” means all Tax returns and forms required to be filed or furnished with respect to the Company, its business or Assets.

 

  

10

  

 

3.10. Litigation.

 

There are no actions, claims, suits, investigations, inquiries or proceedings pending against the Company or in rem against any of the Assets, or to the knowledge of the Company threatened against the Company or in rem against any of the Assets, at law or in equity, in any court, or before or by any Governmental Body.

 

3.11. Employee Benefit Plans.

 

(a) The Company does not have, nor has it ever had, any “employee benefit plan” as defined in Section 3(3) of ERISA, whether or not subject to ERISA, or other profit-sharing, incentive, deferred compensation, welfare, pension, retirement, severance, group insurance, stock option, stock purchase, stock incentive, bonus and other benefit plan, arrangement, agreement and practice that relates to benefits sponsored, maintained or contributed to by the Company or any other corporation or trade or business which is (or within the six years ending on the Closing Date was) a member of a “controlled group of corporations” with, under “common control” with, or a member of an “Affiliated service group” with the Company (“ERISA Affiliate”) as determined under Sections 414(b), (c), (m) or (o) of the Code, or with respect to which the Company or any ERISA Affiliate has any current or future obligation or liability with respect to a present or former director, officer, employee, agent or consultant of the Company or any ERISA Affiliate or under which any present or former director, officer, employee, agent or consultant of the Company or any ERISA Affiliate, or dependent or beneficiary thereof, have any current or future right to benefits (each such plan and arrangement being a “Plan”).  Since January 1, 2013, the Company has not communicated to any director, officer, employee, agent or consultant of the Company or any ERISA Affiliate any intention or commitment to modify any Plan or to establish or implement any other benefit plan, program or arrangement.

 

(b) Neither the Company nor any ERISA Affiliate has ever had an obligation to contribute to a “defined benefit plan,” as defined in Section 3(35) of ERISA, a pension plan subject to the minimum funding standards of Section 302 of ERISA or Section 412 of the Code, or a “multiemployer plan,” as defined in Section 3(37) of ERISA.

 

(c) Neither the Company nor any ERISA Affiliate maintains, has established or has ever participated in a multiple employer welfare benefit arrangement as described in Section 3(40)(A) of ERISA.

 

(d) Neither the Company nor any ERISA Affiliate has any current or future obligation or liability with respect to a Plan pursuant to the provisions of a collective bargaining agreement.

 

  

11

  

 

(e) Except as required by Sections 601-608 of ERISA (“COBRA”) or comparable state law, neither the Company nor any ERISA Affiliate maintains or contributes to any welfare benefit plan that provides coverage or benefits for either or both retired and active employees and/or their beneficiaries.

 

(f) No termination, retention, severance or similar benefit will become payable, and no director, officer, employee, agent or consultant of the Company or any ERISA Affiliate will be entitled to any additional benefits or any acceleration of the time of payment or vesting of any benefits under any Plan or other contract, as a result of the transactions contemplated by this Agreement.  There is no contract, agreement, plan or arrangement covering any current or former director, officer, employee, agent or consultant of the Company or any ERISA Affiliate that, individually or collectively, could give rise to the payment of any amount that would not be deductible pursuant to the terms of Section 162(a)(1), 162(m) and/or 280G of the Code or would require the payment of an excise tax imposed under Section 4999 of the Code or any “gross up” of any such excise tax.

 

(g) Neither the Company nor any ERISA Affiliate has any liability with respect to any Plan that is funded directly or indirectly by an insurance contract or pursuant to which any portion of the Company’s benefit obligations are reimbursed through an insurance contract, including any retroactive rate or premium adjustments, and the levels of insurance reserves and accrued liabilities with regard to each such Plan are reasonable and are sufficient to provide for all incurred but unreported claims.

 

(h) No person or entity that was engaged by the Company or an ERISA Affiliate as an independent contractor within the last five years reasonably can be characterized or deemed to be an employee of the Company or an ERISA Affiliate under applicable Laws for purposes of federal, state and local income taxation, workers’ compensation and unemployment insurance and Plan eligibility.

 

(i) Neither the Company nor any ERISA Affiliate (i) has established, maintained, or has any liability with respect to any deferred compensation plan, program or arrangement, other than a tax-qualified plan or restricted stock awards subject to a vesting schedule, including any “nonqualified deferred compensation plan” as defined under Section 409A(d)(1) of the Code or (ii) made any legally binding commitment to provide deferred compensation to its employees or former employees.

 

3.12. Contracts and Commitments.

 

(a) For purposes of this Section 3.12(a) only, the term “Material” refers to a Contractual Obligation that involves payments or receipts by the Company in excess of $50,000 in any year or that otherwise has a significant and substantial effect on the financial condition, business, results of operations, liabilities or operations of the Company.   Schedule 3.12(a) contains a true and complete list (and the Company has previously delivered to the Buyer true, correct and complete copies thereof, as amended) of all written Material Contractual Obligations or summaries of oral Material Contractual Obligations.  For purposes of this Agreement, “Contractual Obligations” shall mean, as to any Person, any provision of any security issued by such Person or of any agreement, lease, undertaking, contract, indenture, mortgage, deed of trust, license, or other instrument, whether written or oral, to which such Person is a party or by which it or any of its property is bound.

 

  

12

  

 

(b) Except as set forth on Schedule 3.12(b):  (i) each Contractual Obligation identified or required to be identified in Schedule 3.12(a) is in full force and effect and is valid and enforceable in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar Laws affecting creditors’ rights generally and general principles of equity (regardless of whether considered in a proceeding at law or in equity); (ii) the Company is in compliance with all material terms and requirements of each Contractual Obligation identified or required to be identified in Schedule 3.12(a); (iii) to the Company’s knowledge, each other Person that has or had any obligation or liability under any Contractual Obligation identified or required to be identified in Schedule 3.12(a) is in compliance with all material terms and requirements of such Contractual Obligation; (iv) to the Company’s knowledge, no event has occurred or circumstance exists that, with notice or lapse of time, or both, would result in a violation or breach of, or give the Company or any other Person the right to declare a default or exercise any remedy under, or to accelerate the maturity or performance of, or to cancel, terminate or modify, any Contractual Obligation identified or required to be identified in Schedule 3.12(a); and (v)  the Company has not given to or received from any other Person, at any time since the Company’s inception, any written or, to the knowledge of the Company, other notice or communication regarding any actual, alleged, possible or potential violation or breach of, or default under, any Contractual Obligation identified or required to be identified in Schedule 3.12(a).  There are no renegotiations of, attempts to renegotiate, or outstanding rights to renegotiate any material amounts paid or payable to the Company under current or completed Contractual Obligations with any Person and no such Person has made written demand or request for such renegotiation.

 

3.13. Bank and Brokerage Accounts; Powers of Attorney.

 

Schedule 3.13 sets forth a true, complete and correct list, as of the date of this Agreement, of (a) the name of each financial institution or brokerage firm in which the Company has accounts or safe deposit boxes, (b) the names in which the accounts or boxes are held, (c) the type of account and the cash, cash equivalents and securities held in such account as of the date of this Agreement, none of which assets have been withdrawn from such accounts since such date except for bona fide business purposes in the ordinary course of the business of the Company consistent with past practice; and (d) the name of each Person authorized to draw thereon or have access thereto.  There shall be no transactions on such accounts after the date of the reconciliation required by the preceding sentence.  No Person holds a general or special power of attorney from the Company.

 

3.14. Intellectual Property.

 

(a) The Company owns, free and clear from all liens or otherwise possesses legally enforceable rights to use all of the Intellectual Property (as defined below) necessary to conduct its business as currently conducted or proposed to be conducted.

 

(b) Schedule 3.14(b)(i) sets forth a true, complete and correct list of the Intellectual Property owned by the Company (“Owned Intellectual Property”) for which a registration or application has been filed with a Governmental Body, including patents, trademarks, service marks and copyrights, issued by or registered with, or for which any application for issuance or registration thereof has been filed with, any Governmental Body.  Schedule 3.14(b)(ii) sets forth a complete and correct list of all trademarks, service marks and other trade designations that are Owned Intellectual Property and not otherwise identified in Schedule 3.14(b)(i).  Schedule 3.14(b)(iii) also sets forth a complete and correct list of all written or oral licenses and arrangements (other than ordinary course licenses of commercially available software), (A) pursuant to which the use by any Person of Intellectual Property is permitted by the Company or (B) pursuant to which the use by the Company of Intellectual Property is permitted by any Person (collectively, the “Intellectual Property Licenses”).  The Intellectual Property Licenses are in full force and effect.

 

  

13

  

 

(c) To the Company’s knowledge, nothing will interfere with, infringe upon, misappropriate, or otherwise come into conflict with, any Intellectual Property rights of third parties as a result of the continued operation of the Company’s business as presently conducted.

 

(d) To the Company’s knowledge, no Intellectual Property that is Owned Intellectual Property or subject to any Intellectual Property License is being infringed by third parties.  There is no claim or demand of any Person pertaining to, or any proceeding which is pending or, to the Company’s knowledge, threatened, that challenges the rights of the Company in respect of any Owned Intellectual Property, or claims that any default exists under any Intellectual Property License.

 

(e) The Company has no liability relating to (i) the creation by the Company or an employee or independent contractor of the Company of Intellectual Property in connection with the performance of services for a customer of the Company or (ii) any failure of the Company or any such employee or independent contractor to assign rights therein to such customer.

 

(f) The Company does not own, use or license any computer programs or software, including source code, object code or databases, that are material to the Company’s business or the use or development of the Company’s assets.

 

(g)  “Intellectual Property” means (a) all inventions (whether patentable or unpatentable and whether or not reduced to practice), all improvements thereto, and all patents, patent applications, and patent disclosures, together with all reissuances, continuations, continuations-in-part, revisions, extensions, and reexaminations thereof, (b) all trademarks, service marks, trade dress, logos, trade names, and corporate names, together with all translations, adaptations, derivations, and combinations thereof and including all goodwill associated therewith, and all applications, registrations and renewals in connection therewith, (c) all copyrightable works, all copyrights, and all applications, registrations and renewals in connection therewith, (d) all mask works and all applications, registrations and renewals in connection therewith, (e) all trade secrets and confidential information (including ideas, research and development, know-how, formulas, compositions, manufacturing and production processes and techniques, technical data, designs, drawings, specifications, customer and supplier lists, pricing and cost information, and business and marketing plans and proposals), (f) all computer software (including data and related documentation), (g) all other proprietary rights, and (h) all copies and tangible embodiments thereof (in whatever form or medium).

 

  

14

  

 

3.15. Insurance.

 

(a) Schedule 3.15 sets forth a true, complete and correct list of all insurance policies of the Company for the current policy year, all of which are in full force and effect, and true, complete and correct copies of such insurance policies have been provided to the Buyer.  Schedule 3.15 sets forth an accurate list of all claims or losses currently outstanding, with a valuation of such claims and losses provided by each applicable insurance company showing all fire, theft, employee fidelity, worker’s compensation, property and other casualty and liability claims relating to any event or occurrence that took place or was discovered at any time during the past three policy years.  None of these insurance policies contain self-insured retention or retrospective loss limit provisions, nor are such insurance policies subject to retroactive premium adjustments.  Except as set forth in Schedule 3.15, none of such policies are “claims made” policies.  Any open claims or losses as of the Closing Date are recoverable under such policies.

 

(b) All of the insurance policies to which the Company is a party or that provide coverage to the Company or any of its directors or officers (or persons performing similar functions) (i) are issued by an insurer that is financially sound and reputable; (ii) are sufficient for compliance with all Laws and the Contractual Obligations to which the Company is a party or by which it is bound; and (iii) will continue in full force and effect following the Closing Date.  The Company has not received any refusal of coverage or any notice that a defense will be afforded with reservation of rights, or any notice of cancellation or any other indication that any such insurance policy is no longer in full force or effect or will not be renewed or any other notification that the issuer of any policy is not willing or able to perform its obligations thereunder.  The Company has paid all premiums due through the Closing Date, and has otherwise performed all of its obligations, under each policy and has given notice to the insurers of all claims that may be insured thereby.

 

3.16. Employees

 

The Company does not have, nor has it ever had, employees (including management employees) or independent contractors who render services on a regular basis to the Company whose annual compensation is or was in excess of $25,000. The Company is not a party to any Contractual Obligation with an employee of the Company or any of its affiliates containing a “golden parachute” or other similar provisions relating to the payment of severance benefits.  The Company does not currently have any employees on an authorized leave of absence under the Uniformed Services Employment and Reemployment Rights Act of 1994, the Family Medical Leave Act of 1993 or similar laws or pursuant to any other form of authorized leave of absence with reemployment rights which is sponsored by the Company.  The Company is not and will not be liable to any of its employees or consultants (or those of its affiliates) as of the Closing Date for any severance payment or benefit due such employee or consultants as a result of the consummation of the transactions contemplated by this Agreement.

 

3.17. Labor and Employee Relations

 

(a) The Company is not party to and has no obligation under any collective bargaining agreement or other labor union contract, white paper or side agreement with any labor union or organization, nor any obligation to recognize or deal with any labor union or organization.  There are no pending or overtly threatened representation campaigns, elections or proceedings or questions concerning union representation involving any employees of the Company.  There are no overt or to the knowledge of the Company pending activities or efforts of any labor union or organization (or representatives thereof) to organize any employees of the Company, nor of any demands for recognition or collective bargaining relating to any strikes, demands, slowdowns, work stoppages or lock-outs of any kind, or overt threats thereof, by or with respect to any of its employees, or any actual or claimed representatives thereof, and no such activities, efforts, demands, strikes, slowdowns, work stoppages or lock-outs occurred during the three-year period preceding the date hereof.

 

  

15

  

 

(b) There are no charges or complaints involving any federal, state or local civil rights enforcement agency or court; letters from attorneys representing employees or former employees claiming any form of discrimination, wrongful discharge, tort or contract violation, complaints or citations under the Occupational Safety and Health Act or any state or local occupational safety act or regulation; unfair labor practice charges or complaints with the National Labor Relations Board; or other claims, charges, actions or controversies pending, or to the knowledge of the Company threatened or proposed, involving the Company and any employee, former employee or any labor union or other organization representing or claiming to represent such employees’ interests.

 

(c) The Company has not taken any action that would constitute a “Mass Layoff” or “Plant Closing” within the meaning of the Worker Adjustment and Retraining Notification Act or would otherwise trigger notice requirements or liability under any state or local plant closing notice law.  No agreement, arbitration or Order of any Governmental Body in any way limits or restricts the Company from relocating or closing any of the operations of the Company.

 

3.18. The Company is not engaged in any violation of any Law related to employment, including unfair labor practices or acts of employment discrimination.

 

3.19. Permits and Regulatory Filings

 

(a) Schedule 3.19 contains a true, complete and correct list of all licenses, franchises, permits, operating authorizations and other authorizations of Governmental Bodies (“Permits”) owned or held by the Company that are material to the operation of the Company’s business or ownership of the Company’s assets.  The Permits are valid, and the Company has not received any written notice that any Governmental Body intends to cancel, terminate or not renew any such Permit.  The Permits constitute all permits or authorizations required by Law for the operation of the business of the Company as currently conducted and the ownership of the Assets.  The Company has conducted and is conducting its business in substantial compliance with the requirements, standards, criteria and conditions set forth in the Permits and applicable orders, approvals and variances related thereto, and is not in violation of any of the foregoing.  The transactions contemplated by this Agreement will not result in a default under or a breach or violation of any Permits.

 

(b) The Company has filed all reports, statements, documents, registrations, filings or submissions required, in connection with the operation of the business of the Company or the Assets, to be filed by the Company with any Governmental Body, except where the failure to do so would not reasonably be expected to have a material adverse effect on the business or assets of the Company.  All such filings complied with applicable Laws when filed and no deficiencies have been asserted to the Company in writing by any such Governmental Body with respect to such filings or submissions.

 

  

16

  

 

3.20. Real Property

 

The Company does not own or lease, nor has the Company ever owned or leased, real property.

 

3.21. Environmental

 

(a) To Company’s knowledge, the Company is in material compliance with all Environmental Laws, except for any failures to so comply as would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the business or assets of the Company.  “Environmental Laws” means all federal, state, provincial, foreign or local laws relating to health, safety or the environment, including the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. § 9601 et seq.), the Hazardous Material Transportation Act (49 U.S.C. § 1801 et seq.), the Resource Conservation and Recovery Act (42 U.S.C. § 6901 et seq.), the Clean Air Act (42 U.S.C. § 7401 et seq.), the Clean Water Act (33 U.S.C. § 1251 et seq.), the Toxic Substances Control Act, as amended (15 U.S.C. § 2601 et seq.), the National Environmental Policy Act (42 U.S.C. § 4321 et seq.), the Oil Pollution Act (33 U.S.C. § 2701 et seq.), and the Occupational Safety and Health Act (29 U.S.C. § 651 et seq.), as these laws have been amended or supplemented, and any analogous state or local statutes, rules or ordinances and the regulations promulgated pursuant thereto.

 

(b) To Company’s knowledge, during the two (2) years prior to the date hereof, the Company has not received any written notice from any Governmental Body regarding any actual or alleged material violation of Environmental Laws, or any material liabilities or potential liabilities for personal injury, property damage, natural resource damages, or investigatory or cleanup obligations arising under Environmental Laws, in either case the subject of which, individually or in the aggregate, would reasonably be expected to have a material adverse effect on the Company’s business or assets.

 

3.22. Transactions with Affiliates

 

Except as set forth on Schedule 3.22, neither any Seller nor any employee, affiliate, director or officer of the Company has any interest in any property, real or personal, tangible or intangible, used in or pertaining to the business or operations of the Company.  Except as set forth on Schedule 3.22, there are no Contractual Obligations (formal or informal, written or oral) related directly or indirectly to the Company or the Assets between the Company and the Sellers or any affiliate of any Seller.

 

3.23. No Trading in the Buyer Securities

 

Neither the Company nor any of its affiliates having knowledge of the Acquisition, has at any time in the six-month period before the Closing, purchased, sold or in any way traded in the securities (including common stock, options or other derivatives) of the Buyer.

 

  

17

  

 

3.24. Financial Advisors

 

The Company has no liability or obligation to pay any fees or commissions to any broker, finder or agent with respect to the transactions contemplated by this Agreement for which Buyer or Parent shall have any Liability.

 

3.25. Disclosure

 

None of the representations or warranties made by the Company herein or in any ancillary agreements to which the Company is a party (as qualified and modified by the Schedules), when all such documents are read together in their entirety, contains or will contain at the Closing Date any untrue statement of a material fact, or omits or will omit at the Closing Date to state any material fact necessary in order to make the statements contained herein or therein, in the light of the circumstances under which made, not misleading.

 

ARTICLE 4

REPRESENTATIONS AND WARRANTIES OF THE SELLERS

 

Each Seller hereby represents and warrants to Buyer, severally and not jointly, that the statements contained in this Article 4 are true and correct as of the Closing Date.

 

4.1. Ownership of Kyalin Stock.

 

Each Seller is the record and beneficial holder shares of the Company’s capital stock in the amount set forth on Schedule 4.1 attached hereto free and clear of all Liens, other than Permitted Liens.

 

4.2. Existence and Authorization.

 

Each Seller is a natural person or entity duly organized, validly existing and in good standing under the laws of its jurisdiction of formation.  Sellers have all necessary right, power, capacity and authority, as applicable, to execute and deliver this Agreement and each of the Non-Competition Agreement and the other certificates and instruments being delivered pursuant to this Agreement (together with this Agreement, the “Transaction Documents”) to be executed and delivered by such Seller to consummate the transactions contemplated hereby and thereby and to comply with the terms, conditions and provisions hereof and thereof.  In the case of any Seller that is an entity, the execution, delivery and performance by such Seller of this Agreement and each of the Transaction Documents have been duly authorized by all requisite action in accordance with applicable Law and with the organizational documents of such Seller.  Each of this Agreement and the other Transaction Documents have been duly executed and delivered by each Seller and, assuming the due execution and delivery of this Agreement by the other parties, constitutes the legal, valid and binding obligations of each Seller, enforceable against such Seller, in accordance with its terms, subject to (i) the effect of any applicable Law of general application relating to bankruptcy, reorganization, insolvency, moratorium or similar Laws affecting creditors’ rights and relief of debtors generally and (ii) the effect of rules of law and general principles of equity, including rules of law and general principles of equity governing specific performance, injunctive relief and other equitable remedies (regardless of whether such enforceability is considered in an action in equity or at law).

 

  

18

  

 

4.3. No Conflicts.

 

Neither the execution and delivery by each Seller of this Agreement and the Transaction Documents to which such Seller is party, nor the performance by such Seller of the transactions contemplated hereby or thereby will: (a) in the event that Seller is an entity, violate or conflict with or result in a breach of any of the terms, conditions or provisions of the organizational documents of such Seller; (b) to such Seller’s knowledge, violate or conflict with or result in a breach of any Law  or Order applicable to the Seller; (c) result in the creation or imposition of any Lien upon the Kyalin Stock or affect the ability of such Seller to enter into this Agreement or consummate the transactions contemplated hereby; in each case, except as would not reasonably be expected to prohibit such Seller from transferring the Kyalin Stock as contemplated by this Agreement.   There are no voting trusts or other contracts to which the any Seller is a party or by which either of such Seller is bound with respect to the voting, transfer or other disposition of the Kyalin Stock.

 

4.4. Investment.

 

 

Each Seller is acquiring the Purchaser Shares for its own account, for investment purposes only and not with a view toward, or for sale in connection with, any distribution thereof, nor with any present intention of distributing or selling the Purchaser Shares, in violation of the federal securities Laws or any applicable state securities Laws.  Each Seller qualifies as an “accredited investor,” as such term is defined in Rule 501(a) promulgated pursuant to the Securities Act of 1933, as amended (the “Securities Act”).  Each Seller understands that the acquisition of the Purchaser Shares to be acquired by him pursuant to the terms of this Agreement involves substantial risk.  Each Seller, or its representatives, have experience as an investor in securities and equity interests of companies such as the ones being transferred pursuant to this Agreement, and such Seller can bear the economic risk of his investment (which may be for an indefinite period) and has such knowledge and experience in financial or business matters that such Seller is capable of evaluating the merits and risks of his investment in the Purchaser Shares to be acquired by him pursuant to the transactions contemplated hereby.  Each Seller understands that the Purchaser Shares to be acquired by him, her or it pursuant to this Agreement have not been registered under the Securities Act. Seller acknowledges that such securities may not be transferred, sold, offered for sale, pledged, hypothecated or otherwise disposed of without registration under the Securities Act and applicable state securities Laws or pursuant to an applicable exemption therefrom.

 

4.5. Brokers’ or Finders’ Fees.

 

No agent, broker, investment banker, Person or firm acting on behalf of Seller is or will be entitled to any brokers’ or finders’ fee or any other commission from any of the Parties in connection with any of the transactions contemplated hereby.

 

ARTICLE 5

REPRESENTATIONS AND WARRANTIES OF THE BUYER

 

Buyer hereby represents and warrants to the Company and the Sellers that, as of the Closing Date:

 

  

19

  

 

5.1. Organization.

 

Buyer is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to own, hold, use and lease its properties and assets and to conduct its business as it is now being conducted.  Buyer is duly registered or qualified as a foreign corporation and is in good standing in all jurisdictions in which the character of the properties and assets now owned or leased by it or the nature of the business now conducted by it requires it to be so registered or qualified, except where the failure to be so registered or qualified and in good standing would not reasonably be expected to have a material adverse effect on the business or assets of Buyer.

 

5.2. Authorization of Transaction.

 

Buyer has all requisite corporate power and authority to enter into, execute and deliver this Agreement and the documents contemplated hereby to be executed by Buyer and to perform the obligations to be performed by Buyer hereunder and thereunder, respectively.  The execution, delivery and compliance by Buyer with the terms of this Agreement and the documents contemplated hereby to be executed by Buyer, and the consummation by Buyer of the transactions contemplated hereby and thereby, have been duly authorized by all necessary corporate action of Buyer.  This Agreement has been duly executed and delivered by Buyer and this Agreement constitutes, and the documents contemplated hereby to be executed by Buyer upon their execution and delivery as herein provided will constitute, the legal, valid and binding obligations of Buyer enforceable against Buyer in accordance with their respective terms, subject to (i) the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights and remedies generally, (ii) to the extent the indemnification provisions contained herein may further be limited by applicable laws and principles of public policy, and (iii) as to enforceability, the effect of general principles of equity (regardless of whether enforcement is considered in a proceeding at law or in equity).  Buyer is not required to give any notice to, make any filing with, or obtain any authorization, consent, or approval of any Governmental Body in order to consummate the transactions contemplated by this Agreement and the documents contemplated to be executed by this Agreement to which it is a party.

 

5.3. Noncontravention.

 

The execution and delivery of this Agreement and the documents contemplated hereby to be executed by Buyer do not, and compliance by Buyer with the terms hereof and thereof and consummation by Buyer of the transactions contemplated hereby and thereby will not, (a) to Buyer’s knowledge, violate or conflict with any existing term or provision of any Law applicable to Buyer or any Order of any Governmental Body applicable to Buyer; (b) conflict with or result in a breach of or default under any of the terms, conditions or provisions of the certificate of incorporation, bylaws or any other organizational documents of Buyer or any Contractual Obligation to which Buyer, or by which Buyer or any of the Assets of Buyer may be bound; (c) result in the creation or imposition of any Lien upon any of the Buyer’s Assets or Retrophin Common Stock; (d) give to others any right of termination, cancellation, acceleration or modification in or with respect to any Contractual Obligation to which Buyer is a party or otherwise subject, or by which Buyer, the Buyer’s Assets or Retrophin Common Stock may be bound or subject; or (e) breach any fiduciary duty owed by Buyer to any Person.  The execution and delivery by Buyer of this Agreement and the documents contemplated hereby to be executed by Buyer, compliance by Buyer with the terms hereof and thereof and consummation by Buyer of the transactions contemplated hereby and thereby do not require Buyer to make any declaration or give any notice to, make any filing or registration with or obtain any authorization, consent, approval or action of any Governmental Body or any other Person.

 

  

20

  

 

5.4. Compliance with Laws; Permits.

 

The Buyer is in material compliance with all Laws applicable to it or to the conduct of the business or operations of the Buyer, except such non-compliance as would not be expected to have a material adverse effect on Buyer.  The Buyer has all Permits from Governmental Bodies which are required for the Buyer to operate its business, except as would not have a material adverse effect on Buyer.

 

5.5. Retrophin Common Stock.

 

All of the Retrophin Common Stock when issued in accordance with Article 1 hereof will be duly authorized, validly issued, fully paid and nonassessable.

 

5.6. SEC Documents.

 

Buyer has filed all required reports, schedules, forms, statements and other documents (including exhibits as either filed or deemed filed by incorporation by reference and any other information incorporated by reference) required to be filed by it with the Securities and Exchange Commission (the “SEC”).  As of their respective filing dates, Buyer’s Annual Report on Form 10-K for its fiscal year ended December 31, 2012 and each statement or report subsequently filed by Buyer pursuant to Sections 13 or 15(d) of the Exchange Act, other than any documents, portions of documents, exhibits or other information that is deemed to have been furnished to, rather than filed with, the SEC (collectively, the “SEC Documents”), complied in all material respects with the requirements of the Exchange Act and the published rules and regulations of the SEC, and none of the SEC Documents contained (at the time they were filed or if amended or superseded by a filing then on the date of such filing) any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances in which they were made, not misleading, except to the extent corrected or amended by a subsequently filed SEC Document.

 

5.7. Absence of Changes.

 

Since the filing with the SEC of the Buyer’s last Quarterly Report on Form 10-Q, and except as otherwise disclosed in a periodic filing on Form 8-K since such date, there has not been any event, violation, circumstance or other matter that has had, or could reasonably be expected to result in a material adverse effect on the business or assets of Buyer.

 

5.8. Sufficient Funds.

 

Buyer has and will have, (a) sufficient funds on hand or available through existing liquidity facilities (without restrictions on drawdown that would delay payment of the Post-Closing Cash Consideration in accordance with Article 1 of this Agreement) and (b) sufficient authorized and unissued shares of Retrophin Common Stock, to consummate the transactions contemplated hereby.

 

  

21

  

 

5.9. Brokers’ Fees.

 

Buyer has no Liability or obligation to pay any fees or commissions to any broker, finder or agent with respect to the transactions contemplated by this Agreement for which Sellers shall have any Liability.

 

ARTICLE 6

SURVIVAL OF REPRESENTATIONS AND WARRANTIES

 

All representations and warranties in this Agreement or in any certificate or document executed and delivered by either party to the other party pursuant to this Agreement shall survive the Closing Date and the consummation of the transactions contemplated hereby for a period of ########* following the Closing Date, except that the representations and warranties set forth in Sections 3.1 (but solely with respect to the first sentence thereof), 3.2, 3.4, 3.7(a), 3.24, 4.1, 4.2, 4.5, 5.2, 5.5 and 5.9 (the “Fundamental Representations”) shall survive ########*.  Unless a specified period is set forth in this Agreement or in a Transaction Document (in which event such specified period will control), all agreements and covenants contained in this Agreement and in any Transaction Documents will survive the Closing and remain in effect  (i) until fully performed or fulfilled, unless non-compliance with such covenants, agreements or obligations is waived in writing by the party or parties entitled to such performance or (ii) if not fully performed or fulfilled, until ########*.

 

ARTICLE 7

CLOSING DELIVERABLES

 

7.1. Sellers’ Deliverables.

 

On the Closing Date, each of the following documents shall have been delivered to the Buyer and, if applicable, be dated as of the Closing Date (unless otherwise indicated):

 

(a) a certificate executed by the Secretary of Company attaching and certifying as true and correct copies of (A) the Company’s current certificate of incorporation, certified by the Secretary of State of the State of Delaware as of a date not more than fifteen (15) calendar days prior to the Closing Date, and bylaws, and (B) the resolutions of the Company’s board of directors approving and adopting this Agreement and the transactions relating hereto;

 

(b) Non-Competition, Non-Solicitation and Non-Disclosure Agreement, in the form attached hereto as Exhibit B, duly executed by Dr. Rao (the “Non-Competition Agreement”);

 

(c) certificates representing the Kyalin Stock, duly endorsed (or accompanied by duly executed stock powers), for transfer to Buyer;

 

(d) releases in the form of Exhibit C executed by each Seller;

 

____________________

* ########  =   Material omitted pursuant to a request for Confidential Treatment and submitted separately to the Commission on the date of submission of this Current Report on Form 8-K.

 

  

22

  

 

(e) a certification duly executed by each Seller certifying in accordance with Section 1445 of the Code that such Seller is not a “foreign person” as defined in Section 1445(f)(3) of the Code and that such Seller is therefore exempt from the withholding requirements of said section;

 

(f) resignations of all of the directors and officers of the Company, effective on the Closing Date;

 

(g) a properly completed and duly executed IRS Form W-9 or W-8 (as applicable) from each Seller; and

 

(h) such other documents and instruments as the Buyer may reasonably request to effect the Closing.

 

7.2. Buyer Deliverables.

 

On the Closing Date, each of the following documents shall have been delivered to Agent and, if applicable, be dated as of the Closing Date:

 

(a) a copy of the resolutions of the Board of Directors of the Buyer, certified by the secretary thereof as having been duly and validly adopted and in full force and effect, authorizing the execution and delivery of this Agreement and the Transaction Documents to which the Buyer is a party and the performance of the transactions contemplated hereby and thereby; and

 

(b) such other documents and instruments as Sellers may reasonably request to effect the Closing.

 

ARTICLE 8

INDEMNIFICATION

 

8.1. Indemnification of the Buyer Indemnitees.

 

Subject to Section 8.3 hereof, the Sellers hereby agree to severally, but not jointly, indemnify and hold the Buyer Indemnitees harmless from and against all Adverse Consequences arising out of, based upon or resulting from:

 

(a) any misrepresentation in or breach of representation or warranty, when made, on the part of the Sellers or the Company under the terms of this Agreement or in any schedules or certificates delivered in connection herewith;

 

(b) any breach or non-fulfillment of any covenant or agreement on the part of the Sellers or the Company under the terms of this Agreement;

 

(c) the conduct of the operations and business of the Company or the ownership of the Assets on or before the Closing Date to the extent not incurred in the ordinary course of business and not disclosed to the Buyer;

 

(d) any amount(s)  of Transaction Expenses not included on Schedule 1.2(a); and

 

  

23

  

 

(e) any liability for Taxes imposed on the Company, or for which the Company is liable, with respect to the Pre-Closing Tax Period and one-half of any Transfer Taxes paid by the Company or Buyer.

 

The several liability of each Seller under this Section 8.1 will be pro rata in accordance with his, her or its Pro Rata Share.

 

8.2. Indemnification of Sellers Indemnitees.

 

Subject to Section 8.3 hereof, the Buyer hereby agrees to indemnify and hold the Sellers Indemnitees harmless from and against all Adverse Consequences arising out of, based upon or resulting from:

 

(a) any misrepresentation or breach of representation or warranty, when made, on the part of Parent or the Buyer under the terms of this Agreement or in any schedules or certificates delivered in connection herewith;

 

(b) any breach or non-fulfillment of any covenant or agreement on the part of Parent or the Buyer under the terms of this Agreement;

 

(c) the conduct of the operations and business of the Company or the ownership of the Assets after the Closing Date;

 

(d) Transaction Expenses in the amounts set forth on Schedule 1.2(a); and

 

(e) any liability for Taxes imposed on any Seller with respect to the any period that begins after the Closing Date and one-half of any Transfer Tax paid by any Seller.

 

8.3. Limitations.

 

(a) The rights of the Buyer Indemnitees to indemnification pursuant to the provisions of Section 8.1 are subject to the following limitations:

 

(i) The Buyer Indemnitees shall not be entitled to recover for any Adverse Consequences pursuant to Section 8.1 unless and until the aggregate amount of all Adverse Consequences for which the Buyer Indemnitees are entitled to indemnification under Section 8.1 exceeds the amount that is ########1, at which time the Buyer Indemnitees shall be entitled to seek and obtain indemnification for all Adverse Consequences for which the Buyer Indemnitees are entitled to seek and obtain indemnification pursuant to Section 8.1.

 

(ii) The aggregate Adverse Consequences for which the Buyer Indemnitees shall be entitled to seek and obtain indemnification pursuant to Section 8.1 shall not exceed the amount that is ########* (other than with respect to claims for any breach or inaccuracy of any representation or warranty that is fraudulent).

 

____________________

* ########  =   Material omitted pursuant to a request for Confidential Treatment and submitted separately to the Commission on the date of submission of this Current Report on Form 8-K.

 

  

24

  

 

(b) The limit set forth in Section 8.3(a)(ii) hereof, shall not apply to any breach by any of Seller of any of the Fundamental Representations or any Adverse Consequences arising out of or relating to fraud or willful misrepresentation, or willful breach.  For the sole purpose of determining the amount of Adverse Consequences (and not for determining whether or not any breaches of representations or warranties have occurred), the representations and warranties of the Company and Sellers shall not be deemed qualified by any references to materiality, knowledge or material adverse effect.

 

(c) The indemnification obligations in Section 8.1(a), (b) and Section 8.2(a) and (b) shall terminate when the respective representation and warranty or covenant expires, as set forth in Article 6 above.  With respect to any Claim Notice or Indemnity Notice delivered within the survival periods set forth in Article 6 above, the representations and warranties that are the subject of such indemnification claim shall survive with respect to such claim until such claim is finally resolved.  

 

(d) Notwithstanding the foregoing, the total amount of the payments that Sellers can be required to make under or in connection with this Agreement (including all indemnification payments required to be made to Buyer and all expenses incurred by the Agent in accordance with Article 2) shall be limited in the aggregate to a maximum of ########*, and the Sellers’ cumulative liability shall in no event exceed such amount.

 

(e) Without limiting the foregoing, any indemnification payments required to be made by any Seller hereunder, other than indemnification payments with respect to Adverse Consequences arising out of any breach by the Company or Sellers of a Fundamental Representation, shall be made exclusively from the portion of the Purchase Price not yet paid to Sellers hereunder, pursuant to the set off provisions set forth in Section 8.5 and Buyer shall have no recourse against any Seller or any of Seller’s affiliates, or against any of the assets of the Sellers or any of the Seller’s affiliates, in connection with any indemnification claim or any other claim of any nature.

 

8.4. Method of Asserting Claims, etc.

 

Adverse Consequences shall include the respective damages from and against which the Buyer, the Company and their subsidiaries and affiliates and their respective officers, directors, shareholders, representatives, agents and attorneys (the “Buyer Indemnitees”) or the Sellers and his representatives, agents and attorneys (the “Sellers Indemnitees”), as the case may be, are indemnified as the context requires.  The Person claiming indemnification hereunder, whether a Buyer Indemnitee or Sellers Indemnitee, is sometimes referred to as the “Indemnified Party” and the party against whom such claims are asserted hereunder is sometimes referred to as the “Indemnifying Party”.  All claims for indemnification by an Indemnified Party under Section 8.1 or Section 8.2 hereof, as the case may be, shall be asserted and resolved as follows:

 

____________________

* ########  =   Material omitted pursuant to a request for Confidential Treatment and submitted separately to the Commission on the date of submission of this Current Report on Form 8-K.

 

  

25

  

 

(a) If any claim or demand for which an Indemnifying Party would be liable for Adverse Consequence to an Indemnified Party hereunder is overtly asserted against or sought to be collected from such Indemnified Party by a third party (a “Third Party Claim”), such Indemnified Party shall with reasonable promptness (but in no event later than five days after the Third Party Claim is so asserted or sought against the Indemnified Party) notify in writing the Indemnifying Party of such Third Party Claim enclosing a copy of all papers served, if any, and specifying the nature of and specific basis for such Third Party Claim and the amount or the estimated amount thereof to the extent then feasible, which estimate shall not be conclusive of the final amount of such Third Party Claim (the “Claim Notice”).  For this purpose the commencement of any audit or other investigation respecting Taxes shall constitute a Third Party Claim.  Notwithstanding the foregoing, failure to so provide a Claim Notice as provided above shall not relieve the Indemnifying Party from its obligation to indemnify the Indemnified Party with respect to any such Third Party Claim except to the extent that a failure to so notify the Indemnifying Party in reasonably sufficient time prejudices the Indemnifying Party’s ability to defend against the Third Party Claim.  The Indemnifying Party shall have thirty days from delivery of the Claim Notice (the “Notice Period”) to notify the Indemnified Party (i) whether or not the Indemnifying Party disputes the liability of the Indemnifying Party to the Indemnified Party hereunder with respect to such Third Party Claim and (ii) whether or not the Indemnifying Party desires, at the sole cost and expense of the Indemnifying Party, to defend the Indemnified Party against such Third Party Claim.

 

(b) If the Indemnifying Party notifies the Indemnified Party within the Notice Period that the Indemnifying Party does not dispute its liability to the Indemnified Party and that the Indemnifying Party desires to defend the Indemnified Party with respect to the Third Party Claim pursuant to this Article 7, then the Indemnifying Party shall have the right to defend, at its sole cost and expense, such Third Party Claim by all appropriate proceedings, which proceedings shall be diligently prosecuted by the Indemnifying Party to a final conclusion or settled at the discretion of the Indemnifying Party (but only if the Indemnifying Party is liable hereunder to the Indemnified Party for the full amount of, and all obligations under, such settlement; otherwise, no such settlement shall be agreed to without the prior written consent of the Indemnified Party, which consent will not be unreasonably withheld).  If the Indemnifying Party is liable hereunder to the Indemnified Party for the full amount of such Third Party Claim, the Indemnifying Party shall have full control of such defense and proceedings, including any compromise or settlement thereof; provided, however, that the Indemnified Party is hereby authorized, at the sole cost and expense of the Indemnifying Party (but only if the Indemnified Party is actually entitled to indemnification hereunder or if the Indemnifying Party assumes the defense with respect to the Third Party Claim as permitted hereunder), to file during the Notice Period any motion, answer or other pleadings which the Indemnified Party shall deem necessary or appropriate to protect its interests or those of the Indemnifying Party and not prejudicial to the Indemnifying Party (it being understood and agreed that if an Indemnified Party takes any such action which is prejudicial and conclusively causes a final adjudication which is adverse to the Indemnifying Party, the Indemnifying Party shall be relieved of its obligations hereunder with respect to such Third Party Claim); and provided further that if requested by the Indemnifying Party, the Indemnified Party agrees, at the sole cost and expense of the Indemnifying Party, to cooperate with the Indemnifying Party and its counsel in contesting any Third Party Claim which the Indemnifying Party elects to contest, or, if appropriate and related to the Third Party Claim in question, in making any counterclaim against the Person asserting the Third Party Claim, or any cross-complaint against any Person.  The Indemnified Party may participate in, but not control (except if the Indemnifying Party is not allegedly liable hereunder to the Indemnified Party for the full amount of such Third Party Claim, in which case whichever of the Indemnifying Party or the Indemnified Party is allegedly liable for the largest amount of Adverse Consequence with respect to the Third Party Claim shall control), any defense or settlement of any Third Party Claim with respect to which the Indemnifying Party is participating pursuant to this Section 8.4(b), and except as provided in the preceding sentence, the Indemnified Party shall bear its own costs and expenses with respect to such participation.

 

  

26

  

 

(c) If the Indemnifying Party fails to notify the Indemnified Party within the Notice Period that the Indemnifying Party does not dispute its liability to the Indemnified Party and that the Indemnifying Party desires to defend the Indemnified Party pursuant to this Article 7, then the Indemnified Party shall have the right to defend, at the sole cost and expense of the Indemnifying Party, the Third Party Claim by all appropriate proceedings, which proceedings shall be promptly and vigorously prosecuted by the Indemnified Party to a final conclusion or settled.  The Indemnified Party shall have full control of such defense and proceedings, including any compromise or settlement thereof; provided, however, that if requested by the Indemnified Party, the Indemnifying Party agrees, at the sole cost and expense of the Indemnifying Party, to cooperate with the Indemnified Party and its counsel in contesting any Third Party Claim which the Indemnified Party is contesting, or, if appropriate and related to the Third Party Claim in question, in making any counterclaim against the Person asserting the Third Party Claim, or any cross-complaint against any Person.  Notwithstanding the foregoing provisions of this Section 8.4(c), if the Indemnifying Party has timely notified the Indemnified Party that the Indemnifying Party disputes its liability to the Indemnified Party and if such dispute is resolved in favor of the Indemnifying Party by final, non-appealable order of a court of competent jurisdiction, the Indemnifying Party shall not be required to bear the costs and expenses of the Indemnified Party’s defense pursuant to this Section 8.4(c) or of the Indemnifying Party’s participation therein at the Indemnified Party’s request and the Indemnified Party shall reimburse the Indemnifying Party in full for all costs and expenses of such litigation.  The Indemnifying Party may participate in, but not control, any defense or settlement controlled by the Indemnified Party pursuant to this Section 8.4(c) (other than a dispute as to the Indemnifying Party’s liability to the Indemnified Party) and the Indemnifying Party shall bear its own costs and expenses with respect to such participation.

 

(d) If any Indemnified Party should have a claim against any Indemnifying Party hereunder which does not involve a Third Party Claim, the Indemnified Party shall notify the Indemnifying Party of such claim by the Indemnified Party, specifying the nature of and specific basis for such claim and the amount of the estimated amount of such claim (the “Indemnity Notice”).  If the Indemnifying Party does not notify the Indemnified Party within thirty days from delivery of the Indemnity Notice that the Indemnifying Party disputes such claim, the amount or estimated amount of such claim as specified by the Indemnified Party shall be conclusively deemed a liability of the Indemnifying Party.  If the Indemnifying Party has timely disputed such claim, as provided above, such dispute shall be resolved by litigation in an appropriate court of competent jurisdiction or as the parties otherwise at such time agree.

 

  

27

  

 

8.5. Payment of Indemnity Claim; Set Off.

 

Any indemnity claims shall be paid in cash by the Buyer to or on behalf of any Seller Indemnitee.  If any Buyer Indemnitee is entitled to indemnification as a result of a this Article 8, Buyer shall have the right to offset the amount of the Adverse Consequences or Third Party Claim against any future payment of the Purchaser Price yet to be paid to Sellers (but not those payments previously paid unless such Adverse Consequences arose out of any breach by the Company or Sellers of a Fundamental Representation) pursuant to Article 1, subject to the provisions of this Section 8.5.  If, at any time that a payment is due to Sellers as a result of the achievement of any of the events set forth in Section 1(a), and any Buyer Indemnitee is entitled to indemnification as a result of a claim for which such Indemnitee would, if such claim is successful, be entitled to offset, but such claim has not yet been resolved, then, (i) Buyer shall pay the amount equal to the amount of such payment less the maximum amount of such unresolved claim for indemnification to Sellers.  Upon final resolution of such claim for indemnification, to the extent applicable, Buyer shall promptly make the payments to Seller that are due, less the amount of indemnification due, pursuant to such final resolution.

 

8.6. Knowledge of Breach.

 

For purposes of this Article 8, Sellers shall not be deemed to have breached any representation or warranty if a prudent individual would be expected to discover or otherwise become aware of the breach of, or of any facts or circumstances constituting or resulting in a breach of, such representation or warranty in the course of conducting a reasonably comprehensive investigation of the documents and information posted at least ten (10) business days prior to the date of this Agreement, and remaining so posted as of the date of this Agreement, to the virtual data room hosted by the Company via Google Drive and utilized in providing due diligence information and materials to Buyer and its representatives in connection with the transactions contemplated hereby.

 

8.7. Adverse Consequences.

 

As used in this Agreement, the term “Adverse Consequences” shall mean liabilities, losses, claims, damages, actions, suits, proceedings, demands, assessments, adjustments, obligations, costs, deficiencies, penalties, fines, expenses and other judgments (at equity or in law) and damages whenever arising or incurred, including amounts paid in settlement and reasonable attorney’s fees, costs and expenses of investigations.

 

8.8. Exclusivity.

 

The right of each party hereto to assert indemnification claims and receive indemnification payments pursuant to this Section 8 shall be the sole and exclusive right and remedy exercisable by such party with respect to any breach by the other parties hereto of any representation or warranty.  Nothing in this Section 8.8 shall limit or restrict the ability or right of any Party hereto to seek injunctive or other equitable relief for any breach or alleged breach of this agreement or any provision hereof.

 

  

28

  

 

8.9. No Implied Representations.

 

Purchaser and Sellers acknowledge that, except as expressly provided herein, neither party hereto, and none of the affiliates of any party hereto, has made or is making any representations or warranties whatsoever, implied or otherwise.

 

ARTICLE 9

NOTICES

 

Whenever any notice, request, claim, demand or other communication is required or permitted under this Agreement, such notice, request, claim, demand or other communication shall be in writing and shall be given (and shall be deemed to have been duly received, if so given and no notice of failure of delivery is received) by (a) personal delivery, (b) electronic transmission (email, facsimile or other generally recognized electronic means of delivery), (c) nationally recognized commercial courier for next Business Day delivery or (d) registered or certified mail, postage prepaid, return receipt requested, to the parties at the addresses set forth below or at such other addresses as such parties may designate by notice to the other parties.  No such notice specifying a new address shall be deemed to have been given until it is actually received by the party sought to be charged with the contents.

 

	
  

	
If to the Agent, to:

 

	
  

	
Dr. Srinivas Rao

	
  

	
1477 Paseo de las Flores

	
  

	
Encinitas, California 92024

 

	
  

	
With a copy (which shall not constitute notice) to:

	
  

	
Cooley LLP

	
  

	
ATTN: Karen E. Deschaine

	
  

	
4401 Eastgate Mall

	
  

	
San Diego, California 92212

	
  

	
Fax: (858) 550-6420

 

	
  

	
If to Buyer, to:

 

	
  

	
Retrophin, Inc.

	
  

	
777 Third Avenue, Suite 22

	
  

	
New York, New York 10017

	
  

	
Attention:  Chief Executive Officer

 

  

29

  

 

	
  

	
With a copy (which shall not constitute notice) to:

 

	
  

	
Olshan Frome Wolosky LLP

	
  

	
Park Avenue Tower

	
  

	
65 East 55th Street

	
  

	
New York, NY 10022

	
  

	
Attention: Erik Syvertsen

 

All notices, requests, claims, demands or other communications personally delivered will be deemed given on the date delivered.  Any notice, request, claim, demand or other communication by electronic transmission will be deemed delivered to the party to whom addressed on the earlier of actual delivery or the first Business Day after such transmission was sent if such transmission was electronically confirmed or no notice that it was undeliverable was received.  Any notice, request, claim, demand or other communication delivered by courier will be deemed given on the earlier of actual delivery or the first Business Day after deposit with an overnight courier.  Any notice, request, claim, demand or other communication delivered by mail will be deemed given on the third Business Day after deposit in the United States mail.

 

ARTICLE 10

GENERAL

 

10.1. Usage of Terms.

 

In this Agreement, unless a clear intention to the contrary appears:

 

(a) the singular number includes the plural and vice versa;

 

(b) reference to any Person includes such Person’s successors and assigns, to the extent such successors and assigns are not prohibited by this Agreement, and reference to a Person in a particular capacity excludes such Person in any other capacity or individually;

 

(c) reference to any gender includes each other gender;

 

(d) reference to any agreement, document or instrument means such agreement, document or instrument as amended or modified and in effect from time to time in accordance with the terms thereof;

 

(e) reference to any Law means such Law as amended, modified, codified, replaced or reenacted, in whole or in part, and in effect from time to time, including rules and regulations promulgated thereunder, and reference to any section or other provision of any Law means that provision of such Law from time to time in effect and constituting the substantive amendment, modification, codification, replacement or reenactment of such section or other provision;

 

(f) reference to the knowledge of a party means (i) as to an individual, actual knowledge of a particular fact or other matter without independent investigation (and shall in no event encompass constructive, imputed or similar concepts of knowledge) and (ii) as to parties other than individuals, the actual knowledge of such party or such party’s executive officers and directors without independent investigation (and shall in no event encompass constructive, imputed or similar concepts of knowledge).

 

  

30

  

 

(g) “hereunder,” “hereof,” “hereto” and words of similar import shall be deemed references to this Agreement as a whole and not to any particular article, section or other provision hereof;

 

(h) “including” means including without limiting the generality of any description preceding such term;

 

(i) “or” is used in the inclusive sense of “and/or”;

 

(j) with respect to any determination of any period of time, “from” means “from and including” and “to” means “to but excluding”;

 

(k) references to documents, instruments or agreements shall be deemed to refer as well to all addenda, exhibits, schedules or amendments thereto; and

 

(l) unless otherwise specified herein, all accounting terms used herein shall be interpreted and all accounting determinations hereunder shall be made in accordance with generally accepted accounting principles for financial reporting in the United States of America.

 

10.2. Legal Representation of the Parties.

 

This Agreement was negotiated by the parties with the benefit of legal representation, and any rule of construction or interpretation otherwise requiring this Agreement to be construed or interpreted against any party shall not apply to any construction or interpretation hereof.

 

10.3. Incorporation of Schedules and Exhibits; Entire Agreement.

 

The exhibits and schedules attached hereto are an integral part of this Agreement and are incorporated herein by this reference and the specific references thereto contained herein.  This Agreement supersedes all prior discussions and agreements (including the Letter) among the parties with respect to the subject matter of this Agreement, and this Agreement, including the exhibits and schedules hereto to be delivered in connection herewith, contains the sole and entire agreement among the parties hereto with respect to the subject matter hereof.

 

10.4. Waiver.

 

Any term or condition of this Agreement may be waived at any time by the party which is entitled to the benefit thereof; such waiver shall be in writing and shall be executed by each party hereto (in the case of non-natural Persons, by the chairman, president or a vice president thereof).  A waiver on one occasion shall not be deemed to be a waiver of the same or any other matter on a future occasion.

 

10.5. Amendment.

 

This Agreement may be modified or amended only by a writing duly executed by or on behalf of all the parties hereto.

 

  

31

  

 

10.6. Counterparts.

 

This Agreement may be executed simultaneously in any number of counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. This Agreement may be executed by facsimile signature or by other electronic means, such as portable document format (.pdf) or tagged image file format (TIFF), which shall constitute a legal and valid signature for purposes hereof and shall have the same force and effect as original signatures.

 

10.7. Headings

 

The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

 

10.8. Governing law.

 

Except as otherwise provided herein, this agreement and all rights and obligations hereunder, including matters of construction, validity and performance shall be governed by the laws of the state of Delaware without giving effect to the principles of conflicts of laws thereof.

 

10.9. WAIVER OF JURY TRIAL.

 

EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS OR EVENTS CONTEMPLATED HEREBY OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY HERETO.  THE PARTIES HERETO EACH AGREE THAT ANY AND ALL SUCH CLAIMS AND CAUSES OF ACTION SHALL BE TRIED BY THE COURT WITHOUT A JURY.

 

10.10. CONSENT TO JURISDICTION.

 

EACH OF THE PARTIES HEREBY IRREVOCABLY AGREE THAT ANY ACTION AGAINST IT ARISING OUT OF OR IN ANY WAY RELATING TO THIS AGREEMENT OR THE TRANSACTION DOCUMENTS, OR ANY JUDGMENT ENTERED BY ANY COURT IN RESPECT THEREOF, SHALL BE BROUGHT OR ENFORCED IN THE STATE OR FEDERAL COURTS LOCATED IN NEW YORK, NEW YORK AND EACH PARTY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOT OR HEREAFTER HAVE TO THE VENUE OF ANY PROCEEDING BROUGHT IN NEW YORK, NEW YORK AND FURTHER IRREVOCABLY WAIVES ANY CLAIMS THAT ANY SUCH PROCEEDING HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

10.11. Binding Effect.

 

This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns; provided, however, that this Agreement or any right or part hereunder shall not be voluntarily assigned by any party hereto without the prior written consent of the other parties hereto, except that the Buyer may assign its rights and obligations hereunder to a wholly owned, direct or indirect, subsidiary of the Buyer.

 

  

32

  

 

10.12. Expenses.

 

Except as otherwise expressly provided in this Agreement, each party to this Agreement will bear its respective expenses incurred in connection with the preparation, execution, and performance of this Agreement and the other Transaction Documents, including all legal, accounting, investment banking/brokerage and other professional expenses incurred at any time by the Company and the Sellers in connection with therewith (“Transaction Expenses”).

 

10.13. Further Assurances.

 

The Sellers, on the one hand, and the Buyer, on the other hand, at any time after the Closing Date, will promptly execute, acknowledge and deliver any further deeds, assignments, conveyances and other assurances, documents and instruments of transfer, reasonably requested by the other parties and necessary to comply with the representations, warranties and covenants contained herein and will take any action consistent with the terms of this Agreement that may reasonably be requested by the other parties to accomplish the purposes of and the transactions contemplated by this Agreement and the documents executed in connection therewith.

 

10.14. No Third Party Beneficiary.

 

Any agreement to perform any obligation or pay any amount and any assumption of any obligation herein contained, express or implied, shall be only for the benefit of the parties hereto and their respective successors and permitted assigns as expressly permitted in this Agreement, and such agreements and assumptions shall not inure to the benefit of any obligee, whomever, it being the intention of the undersigned that no one shall be or be deemed to be a third party beneficiary of this Agreement other than parties that may have a right to indemnification under this Agreement.

 

10.15. Assignment.

 

No party hereto may assign any of its rights or delegate any of its obligations under this Agreement to any other Person without the prior written consent of the other parties hereto; provided, however, that any Seller may assign to any Person its right to receive all or any portion of the amount payable to Seller under Section 1(a) by providing written notice of such assignment to Buyer, with a copy to the Agent.

 

10.16. Character of Payments.

 

Notwithstanding anything in this Agreement to the contrary, amounts received or credited by the Buyer pursuant to Article 8 shall represent and be characterized as adjustments to the Purchase Price.  No such amounts shall be characterized as income to Parent, the Buyer, the Company or any of their affiliates.

 

  

33

  

 

10.17. Limitation of Liability.

 

The parties hereto expressly acknowledge and agree that no party hereto shall have any liability under any provision of this Agreement for any punitive, incidental, consequential, special or indirect damages, including business interruption, diminution in value, loss of future revenue, profits or income, or loss of business reputation or opportunity relating to the breach or alleged breach of this Agreement.

 

10.18. Trustee Capacity of Wilmington Trust.

 

Notwithstanding anything contained herein to the contrary, it is expressly understood and agreed by the parties hereto that (i) this Agreement is executed and delivered by Wilmington Trust Company, not individually or personally but solely in its trustee capacity, in the exercise of the powers and authority conferred and vested in it under (x) in the case of RPI Finance Trust, a Delaware statutory trust (“RPIFT”), the Amended and Restated Trust Agreement dated as of August 9, 2011, among State Street Custodial Services (Ireland) Limited, as Trustee of Royalty Pharma Investments, an Irish Unit Trust, and Wilmington Trust Company, as owner trustee of RPIFT and (y) in the case of RP SELECT FINANCE TRUST, a Delaware statutory trust (“RPSFT”), the Amended and Restated Trust Agreement dated as of August 9, 2011, among State Street Custodial Services (Ireland) Limited, as Trustee of Royalty Pharma Select, an Irish Unit Trust, and Wilmington Trust Company, as owner trustee of RPSFT, (ii) each of the representations, undertakings and agreements herein made on the part of RPIFT and/or RPSFT is made and intended not as a personal representation, undertaking and agreement by Wilmington Trust Company but is made and intended for the purpose of binding only RPIFT and/or RPSFT, as the case may be and (iii) under no circumstances shall Wilmington Trust Company be personally liable for the payment of any indebtedness or expenses of RPIFT or RPSFT or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by RPIFT or RPSFT under this Agreement or any related documents.

 

[SIGNATURE PAGE FOLLOWS]

 

 

  

34

  

 

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

 

	 	
BUYER:

 

RETROPHIN, INC.

 

 

By: /s/ Martin Shkreli

       Name: Martin Shkreli

       Title: Chief Executive Officer

 

 

COMPANY:

 

KYALIN BIOSCIENCES INC.

 

By: /s/ Srinivas G. Rao

       Name: Srinivas G. Rao

       Title: President

 

 

SELLERS:

 

/s/ Srinivas G. Rao

Dr. Srinivas Rao

 

Capital Stock Ownership: 74 Kyalin Shares

 

RPI Finance Trust

By:  Wilmington Trust Company, not in its individual capacity but solely in its capacity as owner trustee

By: /s/ Yvette C. Howell

       Name: Yvette C. Howell

       Title: Assistant Vice President

Capital Stock Ownership: 16 Kyalin Shares

 

 

[Signature Page to Stock Purchase Agreement]

 

  

  

  

 

	 	

RP Select Finance Trust

By:  Wilmington Trust Company, not in its individual capacity but solely in its capacity as owner trustee

 

By: /s/ Yvette C. Howell

       Name: Yvette C. Howell

       Title: Assistant Vice President

 

 

Capital Stock Ownership: 4 Kyalin Shares

 

/s/ Sabrina Johnson

Sabrina Johnson

 

 

Capital Stock Ownership: 4 Kyalin Shares

 

/s/ Jeff Anderson

Jeff Anderson

 

Capital Stock Ownership: 1 Kyalin Share

 

 

Cooley LLP

 

 

By: /s/ Frederick T. Muto

       Name: Frederick T. Muto

       Title: Partner

 

Capital Stock Ownership: 1 Kyalin Share

 

[Signature Page to Stock Purchase Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00225-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00225-of-00352.parquet"}]]