Document:

vstm_Ex10_1

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		
			Exhibit 10.1
		

		
			 
		

		
			 
		

		
			LICENSE AND COLLABORATION AGREEMENT
		

		
			between
		

		
			VERASTEM, INC.
		

		
			and
		

		
			YAKULT HONSHA CO., LTD
		

		
			DATED
		

		
			June 5, 2018
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

		
			TABLE OF CONTENTS
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Page

				
	
					
						 

					
					
						 

				
	
					
						ARTICLE 1 DEFINITIONS

					
1
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE 2 LICENSE

					
13
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						2.1

					
					
						Exclusive License Grant to Licensee

					
13
				
	
					
						2.2

					
					
						Non-Exclusive License Grant to Licensee

					
14
				
	
					
						2.3

					
					
						Right to Sublicense

					
14
				
	
					
						2.4

					
					
						Right to Subcontract.

					
15
				
	
					
						2.5

					
					
						Upstream Licenses

					
16
				
	
					
						2.6

					
					
						Disclosure of the Verastem IP

					
17
				
	
					
						2.7

					
					
						Verastem Retained Rights

					
17
				
	
					
						2.8

					
					
						License Grant to Verastem

					
17
				
	
					
						2.9

					
					
						No Implied Licenses; Negative Covenant

					
17
				
	
					
						2.10

					
					
						Reimbursement for Third Party IP Sublicense

					
17
				
	
					
						2.11

					
					
						Non-Compete

					
18
				
	
					
						2.12

					
					
						[* * *] 

					
18
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE 3 GOVERNANCE

					
18
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						3.1

					
					
						Alliance Managers

					
18
				
	
					
						3.2

					
					
						Joint Steering Committee

					
18
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE 4 DEVELOPMENT

					
21
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						4.1

					
					
						Diligence and Responsibilities

					
21
				
	
					
						4.2

					
					
						Development Plan

					
21
				
	
					
						4.3

					
					
						Development Costs

					
21
				
	
					
						4.4

					
					
						Development Records

					
22
				
	
					
						4.5

					
					
						Clinical Trial Audit Rights

					
22
				
	
					
						4.6

					
					
						Development Reports

					
23
				
	
					
						4.7

					
					
						Data Exchange and Use

					
23
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE 5 REGULATORY

					
24
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						5.1

					
					
						Licensee’s Responsibilities

					
24
				
	
					
						5.2

					
					
						Verastem’s Responsibilities

					
25
				
	
					
						5.3

					
					
						Right of Reference and Use

					
25
				
	
					
						5.4

					
					
						Adverse Events Reporting

					
26
				
	
					
						5.5

					
					
						Safety and Regulatory Audits

					
27
				
	
					
						5.6

					
					
						No Harmful Actions

					
27
				
	
					
						5.7

					
					
						Notice of Regulatory Action

					
28
				

		
			
		

		

		 

		

			i

		

		

			 

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

	
					
						

					
						ARTICLE 6 SUPPLY AND COMMERCIALIZATION

					
28
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						6.1

					
					
						Supply.

					
28
				
	
					
						6.2

					
					
						Commercialization Diligence

					
29
				
	
					
						6.3

					
					
						Commercialization Plan

					
29
				
	
					
						6.4

					
					
						Commercialization Reports

					
29
				
	
					
						6.5

					
					
						Commercial Forecast

					
30
				
	
					
						6.6

					
					
						Coordination of Commercialization Activities

					
30
				
	
					
						6.7

					
					
						Diversion

					
30
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE 7 PAYMENTS

					
31
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						7.1

					
					
						Upfront Payment

					
31
				
	
					
						7.2

					
					
						Development Milestone Payments

					
31
				
	
					
						7.3

					
					
						Sales Milestone Payments

					
32
				
	
					
						7.4

					
					
						Royalty Payments to Verastem

					
32
				
	
					
						7.5

					
					
						Late Payments

					
34
				
	
					
						7.6

					
					
						Financial Records and Audits

					
34
				
	
					
						7.7

					
					
						Taxes

					
35
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE 8 CONFIDENTIALITY; PUBLICATION

					
36
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						8.1

					
					
						Duty of Confidence

					
36
				
	
					
						8.2

					
					
						Exemptions

					
36
				
	
					
						8.3

					
					
						Authorized Disclosures

					
37
				
	
					
						8.4

					
					
						Publications

					
38
				
	
					
						8.5

					
					
						Publication and Listing of Clinical Trials

					
39
				
	
					
						8.6

					
					
						Publicity; Use of Names

					
39
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE 9 REPRESENTATIONS, WARRANTIES, AND COVENANTS

					
41
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						9.1

					
					
						Representations, Warranties of Each Party

					
41
				
	
					
						9.2

					
					
						Representations and Warranties of Verastem

					
41
				
	
					
						9.3

					
					
						[* * *]

					
42
				
	
					
						9.4

					
					
						Representations and Warranties of Licensee

					
42
				
	
					
						9.5

					
					
						Covenant of Verastem

					
42
				
	
					
						9.6

					
					
						Covenants of Licensee

					
42
				
	
					
						9.7

					
					
						Compliance with Anti-Corruption Laws

					
43
				
	
					
						9.8

					
					
						NO OTHER WARRANTIES

					
44
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE 10 INDEMNIFICATION

					
44
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						10.1

					
					
						By Licensee

					
44
				
	
					
						10.2

					
					
						By Verastem

					
45
				
	
					
						10.3

					
					
						Indemnification Procedure

					
45
				
	
					
						10.4

					
					
						Mitigation of Loss

					
46
				
	
					
						10.5

					
					
						Limitation of Liability

					
46
				

		
			
		

		

		 

		

			ii

		

		

			 

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

	
					
						

					
						10.6

					
					
						Insurance

					
46
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE 11 INTELLECTUAL PROPERTY

					
46
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						11.1

					
					
						Ownership

					
46
				
	
					
						11.2

					
					
						Patent Prosecution

					
47
				
	
					
						11.3

					
					
						Patent Enforcement

					
47
				
	
					
						11.4

					
					
						Infringement of Third Party Rights

					
48
				
	
					
						11.5

					
					
						Patents Licensed From Third Parties

					
49
				
	
					
						11.6

					
					
						Product Trademarks

					
49
				
	
					
						11.7

					
					
						Patent Marking

					
50
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE 12 TERMS AND TERMINATION

					
51
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						12.1

					
					
						Term

					
51
				
	
					
						12.2

					
					
						Termination

					
51
				
	
					
						12.3

					
					
						Effect of Termination.

					
52
				
	
					
						12.4

					
					
						Bankruptcy Code §365(n) Election

					
54
				
	
					
						12.5

					
					
						Accrued Rights

					
54
				
	
					
						12.6

					
					
						Survival

					
54
				
	
					
						12.7

					
					
						Termination Not Sole Remedy

					
54
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE 13 DISPUTE RESOLUTION

					
55
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						13.1

					
					
						General

					
55
				
	
					
						13.2

					
					
						Negotiation; Escalation

					
55
				
	
					
						13.3

					
					
						Arbitration

					
55
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE 14 MISCELLANEOUS

					
57
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						14.1

					
					
						Force Majeure

					
57
				
	
					
						14.2

					
					
						Assignment

					
57
				
	
					
						14.3

					
					
						Severability

					
57
				
	
					
						14.4

					
					
						Notices

					
58
				
	
					
						14.5

					
					
						Governing Law

					
59
				
	
					
						14.6

					
					
						Entire Agreement; Amendments

					
59
				
	
					
						14.7

					
					
						Headings

					
59
				
	
					
						14.8

					
					
						Independent Contractors

					
59
				
	
					
						14.9

					
					
						Waiver

					
59
				
	
					
						14.10

					
					
						Waiver of Rule of Construction

					
60
				
	
					
						14.11

					
					
						Cumulative Remedies

					
60
				
	
					
						14.12

					
					
						Business Day Requirements

					
60
				
	
					
						14.13

					
					
						Further Actions

					
60
				
	
					
						14.14

					
					
						Construction

					
60
				
	
					
						14.15

					
					
						Counterparts

					
61
				
	
					
						14.16

					
					
						Language

					
61
				

		
			 
		

		
			 
		

		
			

		 

		

			iii

		

		

			 

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

		
			LICENSE AND COLLABORATION AGREEMENT
		

		
			This License and Collaboration Agreement (this “Agreement”) is made as of June 5, 2018 (the “Effective Date”), by and between Verastem, Inc., a Delaware corporation (“Verastem”), having a place of business at 117 Kendrick Street, #500, Needham, MA 02494, USA, and Yakult Honsha Co., Ltd., a Japanese corporation (“Licensee”), having a place of business at 1-19 Higashi Shimbashi 1-chome, Minato-ku, Tokyo, 105-8660, Japan. Verastem and Licensee are referred to in this Agreement individually as a “Party” and collectively as the “Parties.” 
		

		
			Recitals
		

		
			Whereas, Licensee has extensive experience and expertise in, the research, development and commercialization of pharmaceutical products in Japan;  
		

		
			Whereas, Verastem is a biopharmaceutical company that Controls (as defined below) certain intellectual property rights related to the pharmaceutical compound known as Duvelisib; and
		

		
			Whereas, Licensee is interested in obtaining a license under such intellectual property rights to Develop and Commercialize Licensed Product in the Field in the Territory (each capitalized term as defined below), and Verastem is willing to grant such a license to Licensee, all subject to the terms and conditions set forth herein.  
		

		
			Agreement
		

		
			Now, Therefore, in consideration of the foregoing premises and the covenants contained herein, the receipt and sufficiency of which are acknowledged, the Parties hereby agree as follows:
		

			
	
			
				Article 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, with respect to an Entity, any Entity that controls, is controlled by, or is under common control with such Entity. For the purpose of this definition only, “control” (including, with correlative meaning, the terms “controlled by” and “under the common control”) means the actual power, either directly or indirectly through one (1) or more intermediaries, to direct or cause the direction of the management and policies of an Entity, whether by the ownership of more than fifty percent (50%) of the voting stocking of such Entity, by contract or otherwise.

			
	
			
				 1.2
			“Alliance Manager” has the meaning set forth in Section ‎3.1.   

		
			

		 

		

			1

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

			
	
			
				 1.3
			“Anti-Corruption Laws” has the meaning set forth in Section ‎9.7(a)(i).  

			
	
			
				 1.4
			“Applicable Laws”  means collectively all laws, regulations, ordinances, decrees, judicial and administrative orders (and any license, franchise, permit or similar right granted under any of the foregoing) and any policies and other requirements of any applicable Governmental Authority that govern or otherwise apply to a Party’s activities in connection with this Agreement.

			
	
			
				 1.5
			“Arbitration Notice” has the meaning set forth in Section‎13.3(a).

			
	
			
				 1.6
			“Arbitrators” has the meaning set forth in Section ‎13.3(b).

			
	
			
				 1.7
			“Bankruptcy Code” has the meaning set forth in Section ‎12.4.  

			
	
			
				 1.8
			“[* * *] Clinical Trial” means the Clinical Trial with Protocol No. [* * *].

			
	
			
				 1.9
			“Business Day”  means a day other than a Saturday, Sunday or a day on which banking institutions in New York, New York or Tokyo, Japan are required by Applicable Laws to remain closed.

			
	
			
				 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.

			
	
			
				 1.11
			“Calendar Year” means each twelve (12) month period commencing on January 1.

			
	
			
				 1.12
			“cGMP” means all applicable current Good Manufacturing Practices, including, as applicable, (a) the principles detailed in the U.S. Current Good Manufacturing Practices, 21 C.F.R. Parts 4, 210, 211, 601, 610 and 820, (b) European Directive 2003/94/EC and Eudralex 4, (c) the principles detailed in the ICH Q7 of ICH Guidelines, and (d) the equivalent Applicable Laws in the Territory, each as may be amended and applicable from time to time. 

			
	
			
				 1.13
			“Clinical Trial” means any human clinical trial of a Licensed Product. 

			
	
			
				 1.14
			“CLL” means chronic lymphocytic leukemia. 

			
	
			
				 1.15
			“Change of Control” means, with respect to a Party, any of the following:  (a) the sale or disposition of all or substantially all of the assets of such Party or its direct or indirect controlling Affiliate to a Third Party, other than to an Entity of which more than fifty percent (50%) of the voting capital stock are owned after such sale or disposition by the Persons that were shareholders of such Party or its direct or indirect controlling Affiliate (in either case, whether directly or indirectly through any parent Entity) immediately prior to such transaction; or (b) (i) the acquisition by a Third Party, alone or together with any of its Affiliates, other than an employee benefit plan (or related trust) sponsored or maintained by such Party or any of its Affiliates, of more than fifty percent (50%) of the outstanding shares of voting capital stock of such Party or its direct or indirect controlling Affiliate, or (ii) the acquisition, merger or consolidation of such Party or its direct or indirect controlling Affiliate with or into another Person, other than, in the case of 

		 

		

			2

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

	this clause (b), an acquisition or a merger or consolidation of such Party or its controlling Affiliate in which the holders of shares of voting capital stock of such Party or its controlling Affiliate, as the case may be, immediately prior to such acquisition, merger or consolidation will beneficially own, directly or indirectly, at least fifty percent (50%) of the shares of voting capital stock of the acquiring Third Party or the surviving corporation in such acquisition, merger or consolidation, as the case may be, immediately after such acquisition, merger or consolidation.

			
	
			
				 1.16
			“Combination Product” means any pharmaceutical product which contains two or more active pharmaceutical ingredients, at least one of which is the Licensed Compound.  For the avoidance of doubt, a Licensed Product containing the Licensed Compound as its sole active pharmaceutical ingredient will not constitute a Combination Product, even if it is co-administered with a pharmaceutical product containing one or more active pharmaceutical ingredients that are not the Licensed Compound.

			
	
			
				 1.17
			“Commercialization” or “Commercialize” means all activities directed to marketing, promoting, advertising, exhibiting, distributing (including storage for distribution or inventory), detailing, selling (and offering for sale or contracting to sell) or otherwise commercially exploiting (including pricing and reimbursement activities) a Licensed Product in the Field (including importing and exporting activities in connection therewith). 

			
	
			
				 1.18
			“Commercialization Plan” has the meaning set forth in Section 6.3.  

			
	
			
				 1.19
			“Commercially Reasonable Efforts” means, with respect to a Party’s obligations or activities under this Agreement, [* * *]. Commercially Reasonable Efforts of a Party shall require that such Party (on its own or acting through its Affiliates, Sublicensees or, Subcontractors), at a minimum, and without in any way limiting the foregoing: [* * *].

			
	
			
				 1.20
			“Confidential Information” of a Party means, subject to Section ‎8.2, (a) all Know-How, unpublished patent applications and other non-public information and data of a financial, commercial, business, operational or technical nature of such Party that is disclosed by or on behalf of such Party or any of its Affiliates or otherwise made available to the other Party or any of its Affiliates, in each case in connection with this Agreement or the Confidentiality Agreement, whether made available orally, visually, in writing or in electronic form, and (b) any information that was disclosed by Verastem to Licensee or any Affiliate of Licensee prior to the Effective Date pursuant to the confidentiality agreement between Verastem and Licensee, [* * *] (the “Existing Confidentiality Agreement”), which shall be treated as Verastem’s Confidential Information, with Verastem considered the Disclosing Party and Licensee considered the Receiving Party. For the avoidance of doubt, the terms and conditions of this Agreement shall be deemed the Confidential Information of both Parties.

			
	
			
				 1.21
			“[* * *]” means the [* * *] Study or any other Registrational Trial for a Licensed Product to confirm the safety and efficacy of such Licensed Product [* * *] Study (the details of such Registrational Trial shall be subject to further discussion and agreement with the applicable 

		 

		

			3

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

	Regulatory Authorities). A synopsis of the [* * *] Study proposed as of the Effective Date is attached hereto as Exhibit G.  

			
	
			
				 1.22
			“Control” or “Controlled” means the possession by a Party (whether by ownership, license or otherwise) of, (a) with respect to any tangible Know-How, the legal authority or right to physical possession of such tangible Know-How, with the right to provide such tangible Know-How to the other Party on the terms and conditions set forth herein, or (b) with respect to Patent Rights, intangible Know-How or other intellectual property rights, the legal authority or right to grant a license, sublicense, access or right to use (as applicable) under such Patent Rights, intangible Know-How or other intellectual property rights to the other Party on the terms and conditions set forth herein, in each case of (a) and (b), without breaching the terms of any agreement with a Third Party in existence as of the time such Party or its Affiliates would first be required hereunder to grant the other Party such access, right to use or (sub)license. 

			
	
			
				 1.23
			  “CRO” means a contract research organization.

			
	
			
				 1.24
			“Develop” or “Development” or “Developing”  means all development activities for any Licensed Compound or Licensed Product that are directed to obtaining Regulatory Approval(s) of such Licensed Product and to support appropriate usage for such Licensed Product, including: all research, non-clinical, preclinical and clinical activities, testing and studies of such Licensed Compound or Licensed Product; toxicology, pharmacokinetic, pharmacodynamic, drug-drug interaction, safety, tolerability and pharmacological studies of such Licensed Compound or Licensed Product; sourcing and distribution of such Licensed Product for use in Clinical Trials (including placebos and comparators); statistical analyses; the preparation, filing and prosecution of Regulatory Documents for such Licensed Compound or Licensed Product; with respect to Development conducted by Verastem pursuant to the Global Strategy, or by Licensee under the Development Plan, development activities directed to label expansion (including prescribing information) or obtaining Regulatory Approval for one (1) or more additional Indications following initial Regulatory Approval; development activities conducted after receipt of Regulatory Approval that are required or requested in writing by a Regulatory Authority as a condition of, or in connection with, obtaining or maintaining a Regulatory Approval; and pharmacoeconomic studies relating to the Indication for which the applicable Licensed Product is being developed; in each case above, including investigator- or institution-sponsored studies for which a Party is providing material or assistance or otherwise has written obligations to such investigator or institution; and all regulatory activities related to any of the foregoing; provided,  however, that Development shall exclude Commercialization and Manufacturing (including Manufacturing related to Development).

			
	
			
				 1.25
			"Development Data" shall mean written reports of pre-clinical studies and Clinical Trials primarily containing non-clinical, clinical or CMC data relating to the Licensed Compound or the Licensed Products in the Field, and supporting documentation (e.g., protocols, format of case report forms, analysis plans) for such reports.  Notwithstanding any provision of this Agreement to the contrary, Development Data that Verastem is required to deliver to Licensee under this Agreement shall be limited to Development Data that is Controlled by Verastem and is 

		 

		

			4

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

	necessary or useful to support the Development, Regulatory Approval or Commercialization of a Licensed Product in the Territory. Licensee’s use of such Development Data in connection with applications for Regulatory Approval shall be subject to Licensee’s payment obligations under Section 5.3(b).

			
	
			
				 1.26
			“Development Plan” has the meaning set forth in Section ‎4.2.

			
	
			
				 1.27
			 “Disclosing Party” has the meaning set forth in Section ‎8.1(a).  

			
	
			
				 1.28
			“DLBCL” means diffuse large B-cell lymphoma. 

			
	
			
				 1.29
			“Dollar” or “$”  means the U.S. dollar, and “$” shall be interpreted accordingly.

			
	
			
				 1.30
			“Early Access Program” means any program that provides patients with a Licensed Product prior to Regulatory Approval in the Territory and in which the use of the Licensed Product is not primarily intended to obtain information about the safety or effectiveness of a drug.  “Early Access Programs” shall include treatment INDs / protocols, named patient programs and compassionate use programs. 

			
	
			
				 1.31
			 “Entity” means a partnership, limited partnership, limited liability partnership, corporation, limited liability company, business trust, joint stock company, trust, incorporated association, joint venture or similar entity or organization. 

			
	
			
				 1.32
			“Executive Officers” has the meaning set forth in Section ‎3.2(e).

			
	
			
				 1.33
			“Existing Confidentiality Agreement” has the meaning set forth in Section ‎1.20.

			
	
			
				 1.34
			“Exploit” or “Exploiting” means to (a) Develop, (b) obtain, hold and maintain Regulatory Approvals, and any pricing or reimbursement approvals, as applicable, (c) Manufacture, or (d) Commercialize Licensed Products. 

			
	
			
				 1.35
			“Field”  means the treatment, prevention, palliation or diagnosis of any oncology Indication in humans or animals.

			
	
			
				 1.36
			“First Commercial Sale”  means, with respect to a given Licensed Product in the Territory, the first sale of such Licensed Product by Licensee or its Affiliates or Sublicensees to a Third Party (excluding Sublicensees) in the Territory after the receipt of Regulatory Approval for such Licensed Product in the Territory (to the extent such Regulatory Approval is required for commercial sale of such Licensed Product in the Territory) [* * *].  

			
	
			
				 1.37
			“FL” means follicular lymphoma.

			
	
			
				 1.38
			“[* * *] Study” means the Registrational Trial planned by Verastem for the Licensed Product in FL to [* * *]. 

		
			

		 

		

			5

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

			
	
			
				 1.39
			“FTE” means the equivalent of the work of a full-time individual for a twelve (12) month period.

			
	
			
				 1.40
			“FTE Rate” means a rate of [* * *] per FTE per year, to be pro-rated on an hourly basis of [* * *] per FTE per hour, assuming [* * *] hours per year for an FTE. Verastem may increase the FTE Rate on January 1 of each Calendar Year, provided that any such increase will not exceed the increase in the Consumer Price Index for All Urban Consumers (CPI-U) for the U.S. City Average, 1982-84 = 100, calculated by the Bureau of Labor Statistics during the immediately preceding Calendar Year.  

			
	
			
				 1.41
			“Fully Burdened Manufacturing Cost” means, with respect to any Licensed Product supplied by or on behalf of Verastem to Licensee hereunder: 

			
	
			
				 (a)
			to the extent that such Licensed Product (or any precursor or intermediate thereof) is Manufactured by a Third Party manufacturer, [* * *]; plus

			
	
			
				 (b)
			to the extent that such Licensed Product (or any precursor or intermediate thereof) is Manufactured by Verastem or its Affiliates, [* * *]. Such fully burdened costs shall be calculated in accordance with United States GAAP.    

			
	
			
				 1.42
			“GAAP” means, with respect to Verastem, generally accepted accounting principles in the United States, and with respect to Licensee, generally accepted accounting principles in Japan, in each case, consistently applied.

			
	
			
				 1.43
			“GCP” means all applicable Good Clinical Practice standards for the design, conduct, performance, monitoring, auditing, recording, analyses and reporting of clinical trials, including, as applicable (a) as set forth in the ICH E6 of the ICH Guideline and any other guidelines for good clinical practice for clinical trials on medicinal products in the Territory, (b) the Declaration of Helsinki (2004) as last amended at the 52nd World Medical Association in October 2000 and any further amendments or clarifications thereto, (c) U.S. Code of Federal Regulations Title 21, Parts 50 (Protection of Human Subjects), 56 (Institutional Review Boards) and 312 (Investigational New Drug Application), and (d) the equivalent Applicable Laws in the Territory, each as may be amended and applicable from time to time and in each case, that provide for, among other things, assurance that the clinical data and reported results are credible and accurate and protect the rights, integrity, and confidentiality of trial subjects. 

			
	
			
				 1.44
			“Generic Product” means, with respect to a Licensed Product in the Territory, a pharmaceutical product that (a) contains the same active pharmaceutical ingredients (and no other active pharmaceutical ingredients) as such Licensed Product, (b) is approved by the PMDA based on reference to data contained in an earlier Regulatory Approval for such Licensed Product, and (c) is sold by a Third Party that is not a Sublicensee and did not purchase such product or its active pharmaceutical ingredients from Licensee or its Affiliates or Sublicensees. 

		
			

		 

		

			6

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

			
	
			
				 1.45
			“Global Clinical Trial” means a Clinical Trial conducted by Verastem (or any of its Affiliates, Third Party Licensees or Subcontractors) in cooperation with Licensee both inside and outside the Territory under the Global Strategy, which Global Clinical Trial shall be governed by the following:

			
	
			
				 (a)
			if Verastem plans to conduct a multi-national Clinical Trial, the JSC shall discuss and agree upon whether such multi-national Clinical Trial should include the Territory, [* * *]; and

			
	
			
				 (b)
			in the event that the JSC agrees to include the Territory in such multi-national Clinical Trial, such Clinical Trial shall be regarded as a Global Clinical Trial (and if the JSC determines that such multi-national Clinical Trial will not include the Territory, such multi-national Clinical Trial shall be regarded as a Verastem New Clinical Trial).

			
	
			
				 1.46
			“Global Strategy”  means Verastem’s worldwide Development, regulatory and Commercialization strategy with respect to the Licensed Compound and Licensed Products, including the designation of Indications for which to seek Regulatory Approval and Verastem’s global publication strategy.

			
	
			
				 1.47
			“GLP” means all applicable Good Laboratory Practice standards, including, as applicable, as set forth in the then-current good laboratory practice standards promulgated or endorsed by the U.S. Food and Drug Administration, as defined in 21 C.F.R. Part 58, and the equivalent Applicable Laws in the Territory, each as may be amended and applicable from time to time.

			
	
			
				 1.48
			“Governmental Authority” means any federal, state, national, state, provincial or local government, or political subdivision thereof, or any multinational organization or any authority, agency or commission entitled to exercise any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power, or any court or tribunal (or any department, bureau or division thereof, or any governmental arbitrator or arbitral body).

			
	
			
				 1.49
			“ICH Guidelines” mean the International Conference on Harmonization of Technical Requirements for Registration of Pharmaceuticals for Human Use Harmonized Tripartite Guideline.

			
	
			
				 1.50
			“Indemnified Party” has the meaning set forth in Section ‎10.3.

			
	
			
				 1.51
			“Indemnifying Party” has the meaning set forth in Section ‎10.3.

			
	
			
				 1.52
			“Indication” means a disease, condition, disorder or syndrome. 

			
	
			
				 1.53
			“Infinity” has the meaning set forth in Section ‎2.5(a)(i).

			
	
			
				 1.54
			“Infinity Agreement” has the meaning set forth in Section ‎2.5(a)(i).  

		
			

		 

		

			7

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

			
	
			
				 1.55
			“Infringed Patent Right” has the meaning set forth in Section ‎7.4(c).

			
	
			
				 1.56
			“Initial Tech Transfer” has the meaning set forth in Section ‎2.6.

			
	
			
				 1.57
			“INK”  has the meaning set forth in Section ‎2.5(a)(i). 

			
	
			
				 1.58
			“INK Agreement” has the meaning set forth in Section ‎2.5(a)(i).

			
	
			
				 1.59
			“Invention”  means any information, discovery, improvement, modification, process, method, assay, design, protocol (including any Clinical Trial protocol), formula, data, invention, algorithm, forecast, profile, strategy, plan, result, know-how or trade secret (in each case, whether or not patentable), that is discovered, generated, conceived or reduced to practice by or on behalf a Party (including by its Affiliates, licensees, Sublicensees, Subcontractors or their respective employees, agents), in the course of the performance of this Agreement, including all rights, title and interest in and to the intellectual property rights therein and thereto.  

			
	
			
				 1.60
			“JPT” has the meaning set forth in Section ‎3.2(f).

			
	
			
				 1.61
			“JSC” has the meaning set forth in Section ‎3.2(a).

			
	
			
				 1.62
			“Know-How”  means any information and materials, including discoveries, improvements, modifications, processes, methods, assays, designs, protocols (including Clinical Trial protocols), formulas, data, inventions, algorithms, forecasts, profiles, strategies, plans, results, know-how and trade secrets (in each case, regardless of whether patentable, copyrightable or otherwise), but excluding any Patent Rights and any information that is not Confidential Information. For the avoidance of doubt, “Know-How” shall include the Development Data (subject to Section ‎5.3), the manufacturing data that is necessary to Manufacture the Licensed Compound or Licensed Product (subject to Section ‎2.2,  Section ‎5.3 and Section ‎6.1) and the Regulatory Documents. 

			
	
			
				 1.63
			“License” means the licenses granted by Verastem to Licensee pursuant to Section ‎2.1 and Section 2.2.

			
	
			
				 1.64
			“Licensed Compound” means the compound known by the names INK1197, IPI-145 or duvelisib (INN; International Nonproprietary Names), as described on Exhibit B, or any of its various chemical forms, including acids, bases, salts, metabolites, esters, isomers, enantiomers, pro-drug forms, hydrates, solvates, polymorphs and degradants thereof, in each case that has substantially the same pharmacological effect, in crystal, powder or other form. 

			
	
			
				 1.65
			“Licensed Product” means any pharmaceutical product that contains or comprises the Licensed Compound.  [* * *]. Each Licensed Product shall be distinguished by dosage form, and for the avoidance of doubt, Licensed Product containing the Licensed Compound as its sole active pharmaceutical ingredient and each Combination Product shall constitute separate and distinct Licensed Products under this Agreement.  

		
			

		 

		

			8

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

			
	
			
				 1.66
			“Licensed Trademarks” means the trademarks set forth on Exhibit F, to the extent Controlled by Verastem in the Territory.

			
	
			
				 1.67
			“Licensee Indemnitees” has the meaning set forth in Section ‎10.2.  

			
	
			
				 1.68
			  “Licensee IP” means Licensee Know-How and Licensee Patents. For clarity, Inventions owned by Licensee pursuant to Section ‎11.1(b) shall be included within the Licensee IP. 

			
	
			
				 1.69
			“Licensee Know-How” means all Know-How Controlled by Licensee or its Affiliates as of the Effective Date or at any time during the Term (including any and all data, Clinical Trial data, results, Development Data and Regulatory Documents generated by or on behalf of Licensee, its Affiliates, Sublicensees or Subcontractors) relating to the Licensed Compound or Licensed Product that is necessary or reasonably useful for Exploiting the Licensed Products in the Field. 

			
	
			
				 1.70
			“Licensee Patents” means all Patent Rights Controlled by Licensee or its Affiliates as of the Effective Date or at any time during the Term that cover the Licensed Compound or Licensed Product (including composition of matter and methods of using, making or detecting the Licensed Compound or the Licensed Products).

			
	
			
				 1.71
			  “Manufacture” or “Manufacturing” means any activities directed to producing, manufacturing, scaling up, processing, filling, finishing, packaging, labeling, quality assurance testing and release, shipping, and storage at manufacturing facilities of any Licensed Compound or Licensed Product or component thereof (including production of drug substance and drug product, in bulk form, for Development and Commercialization).

			
	
			
				 1.72
			“Net Sales” means, (i) with respect to a Licensed Product (subject to clause (ii) below, for a Combination Product) in a particular period, the [* * *] by Licensee, its Affiliates or its Sublicensees on sales or other dispositions (excluding sales or dispositions for use in clinical trials or other scientific testing, in either case for which Licensees, its Affiliates or its Sublicensees receive no revenue) of such Licensed Product to unrelated Third Parties during such period, less the following deductions (to the extent included in the gross amount invoiced or otherwise directly paid or incurred by Licensee, its Affiliates or its Sublicensees):

		
			[* * *]
		

		
			Such amounts shall be determined from the books and records of Licensee, its Affiliates and its Sublicensees, in each case maintained in accordance with Japanese GAAP or International Financial Reporting Standards, consistently applied. 
		

			
	
			
				 1.73
			  “Patent Right”  means all issued patents and pending patent applications (including provisional applications), including all divisionals, continuations, substitutions, continuations-in-part, re-examinations, re-issues, additions, renewals, extensions, confirmations, registrations, any 

		 

		

			9

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

	confirmation patent or registration patent or patent of addition based on any such patent, patent term extensions, and supplemental protection certificates or requests for continued examinations, foreign counterparts, and the like of any of the foregoing.

			
	
			
				 1.74
			“Patent Prosecution” means activities directed to (a) preparing, filing and prosecuting applications (of all types) for any Patent Right, (b) managing any interference, opposition, re-issue, reexamination, supplemental examination, invalidation proceedings (including inter partes or post-grant review proceedings), revocation, nullification, or cancellation proceeding relating to the foregoing Patent Rights, (c) maintaining issued Patent Right(s), (d) listing in regulatory publications (as applicable), (e) patent term extension for issued Patent Right(s) and maintenance thereof, and (f) managing, including settling, any interference, opposition, reexamination, invalidation, revocation, nullification or cancellation proceeding relating to issued Patent Right(s).

			
	
			
				 1.75
			“Person” means any individual, unincorporated organization or association, Entity, Governmental Authority or governmental agency. 

			
	
			
				 1.76
			“Pharmacovigilance Agreement” has the meaning set forth in Section ‎5.4.  

			
	
			
				 1.77
			 “PMDA” means the Japanese Pharmaceuticals and Medical Devices Agency, and local counterparts thereto, and any successor agency(ies) or authority thereto having substantially the same function. 

			
	
			
				 1.78
			 “Primary Endpoint” means the main result that is measured at the end of a Clinical Trial to determine whether a given treatment has worked (e.g., the difference in survival between a treatment group and a control group), which shall be predefined in the protocol for such Clinical Trial. 

			
	
			
				 1.79
			“[* * *] Clinical Trial” means the Clinical Trial with Protocol No. [* * *].

			
	
			
				 1.80
			“Product Infringement” has the meaning set forth in Section ‎11.3(a).  

			
	
			
				 1.81
			“Product Marks” has the meaning set forth in Section ‎11.6(b).

			
	
			
				 1.82
			“Product Recall” means any recall or market withdrawal of a Licensed Product in the Territory. 

			
	
			
				 1.83
			“PTCL” means peripheral T-cell lymphoma. 

			
	
			
				 1.84
			“Public Official” has the meaning set forth in Section ‎9.7(d).  

			
	
			
				 1.85
			“Publication” has the meaning set forth in Section ‎8.4.  

			
	
			
				 1.86
			“Quality Agreement” has the meaning set forth in Section ‎6.1(b).

		
			

		 

		

			10

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

			
	
			
				 1.87
			“Receiving Party” has the meaning set forth in Section ‎8.1(a).

			
	
			
				 1.88
			“Registrational Trial” means a controlled or uncontrolled human Clinical Trial of a Licensed Product that is intended (as of the time the first patient is enrolled in the Clinical Trial) to obtain sufficient data and results to support the filing of an application for Regulatory Approval without the requirement for any further Clinical Trial prior to submission of such application to the applicable Regulatory Authority. 

			
	
			
				 1.89
			  “Regulatory Approval” means, with respect to a Licensed Product in a country, all regulatory approvals granted by the applicable Regulatory Authority that are necessary for the Commercialization of such Licensed Product in such country, excluding any pricing and reimbursement approvals in connection therewith. 

			
	
			
				 1.90
			“Regulatory Authority” means any applicable Government Authority responsible for granting approvals for the Manufacture, Development, Commercialization, reimbursement or pricing, as applicable, for the Licensed Compound or the Licensed Product, including the Regulatory Approvals. “Regulatory Authority” includes the USFDA, PMDA and any corresponding national or regional regulatory authorities, and any successor agency of the foregoing. 

			
	
			
				 1.91
			“Regulatory Documents” means any filing, application or submission with any Regulatory Authority, including authorizations, approvals or clearances arising from the foregoing, including Regulatory Approvals and any pricing or reimbursement approvals, as applicable, and all written correspondence or written communication with or from the relevant Regulatory Authority, as well as minutes of any material meetings, telephone conferences or discussions with the relevant Regulatory Authority, in each case, with respect to the Licensed Compound or the Licensed Product. 

			
	
			
				 1.92
			  “Regulatory Exclusivity” means any exclusive marketing rights or data exclusivity rights conferred by any Regulatory Authority with respect to a pharmaceutical product, including any such right that may become available following the Effective Date, including orphan drug exclusivity, new chemical entity exclusivity, data exclusivity, pediatric exclusivity, rights conferred in the United States under the Hatch-Waxman Act or the USFDA Modernization Act of 1997 (but excluding any patent term extension mechanism), or rights similar thereto outside the United States, but in all cases excluding Patent Rights and patent term extensions based on such rights. 

			
	
			
				 1.93
			“Royalty Term” means, with respect to a given Licensed Product in the Territory, the period commencing on the First Commercial Sale of such Licensed Product in the Territory and ending upon the last to occur of (a) the date on which all Verastem Patents containing a Valid Claim [* * *] have expired, (b) the date on which all Verastem Patents containing a Valid Claim [* * *] have expired, (c) the expiration of Regulatory Exclusivity with respect to such Licensed Product in the Territory, or (d) the tenth (10th) anniversary of the First Commercial Sale of such Licensed Product in the Territory.    

		
			

		 

		

			11

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

			
	
			
				 1.94
			“Rules” has the meaning set forth in Section‎13.3(a).

			
	
			
				 1.95
			“Sales Milestone Event” has the meaning set forth in Section ‎7.3.

			
	
			
				 1.96
			“Sales Milestone Payment” has the meaning set forth in Section ‎7.3.  

			
	
			
				 1.97
			“SEC” has the meaning set forth in Section ‎8.6(c).

			
	
			
				 1.98
			“Subcontractor” has the meaning set forth in Section ‎2.4(a).

			
	
			
				 1.99
			“Sublicensee” has the meaning set forth in Section ‎2.3(b).

			
	
			
				 1.100
			“Supply Agreement” has the meaning set forth in Section ‎6.1(a).  

			
	
			
				 1.101
			“Tax”  or “Taxes”  means any present or future taxes, levies, imposts, duties, charges, assessments or fees of any nature (including any interest thereon).  For the avoidance of doubt, Taxes include VAT.  

			
	
			
				 1.102
			“Term” has the meaning set forth in Section ‎12.1.  

			
	
			
				 1.103
			“Territory” means Japan.     

			
	
			
				 1.104
			“Third Party”  means any Person other than a Party or an Affiliate of a Party. 

			
	
			
				 1.105
			"Third Party Licensee" means any Third Party holding a license (whether exclusive or non-exclusive) under the Verastem IP in the Field outside of the Territory.

			
	
			
				 1.106
			“TP-IP Sublicense Payments” has the meaning set forth in Section ‎2.10.

			
	
			
				 1.107
			“United States” means the United States of America.

			
	
			
				 1.108
			“Upstream License Agreement” has the meaning set forth in Section ‎2.5(a)(i).

			
	
			
				 1.109
			“Upstream Licensors” has the meaning set forth in Section ‎2.5(a)(i).

			
	
			
				 1.110
			“Usage Guidelines” has the meaning set forth in Section ‎11.6(c)(i).

			
	
			
				 1.111
			“USFDA”  means the United States Food and Drug Administration or any successor Entity thereto.

			
	
			
				 1.112
			“Valid Claim”  means a claim of any (a) issued, unexpired patent that has not been revoked or held unenforceable or invalid by a decision of a court or governmental agency of competent jurisdiction from which no appeal can be taken, or with respect to which an appeal is not taken within the time allowed for appeal, and that has not been disclaimed or admitted to be invalid or unenforceable through reissue, disclaimer or otherwise or (b) a pending patent 

		 

		

			12

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

	application that has not been finally abandoned, finally rejected or expired (after exhaustion of all appeals); provided,  however, that if a claim of a pending patent application shall not have issued within [* * *] years after the earliest filing date from which such claim takes priority, such claim shall not constitute a Valid Claim for the purposes of this Agreement unless and until a patent issues with such claim.

			
	
			
				 1.113
			  “VAT” means the value added taxes.

			
	
			
				 1.114
			“Verastem New Clinical Trial” means any Clinical Trial in which the first patient is enrolled after the Effective Date and that is conducted by Verastem or any of its Affiliates, Third Party Licensees or Subcontractors solely outside the Territory. Notwithstanding the foregoing, and for the avoidance of doubt, the [* * *] Clinical Trial and the [* * *] Clinical Trial shall be deemed Verastem New Clinical Trials.

			
	
			
				 1.115
			“Verastem Indemnitees” has the meaning set forth in Section ‎10.1.  

			
	
			
				 1.116
			  “Verastem IP” means Verastem Know-How, Verastem Patents, and the Licensed Trademarks. For clarity, Inventions owned by Verastem in accordance with Section ‎11.1(a) shall be included in the Verastem IP.

			
	
			
				 1.117
			“Verastem Know-How” means all Know-How Controlled by Verastem as of the Effective Date or at any time during the Term (subject to the provisions of Section ‎2.11 that is necessary or reasonably useful for the Development, Manufacture or Commercialization of Licensed Products in the Field in the Territory; provided,  however, that Verastem Know-How shall exclude all Know-How that comes into Verastem’s Control as a result of a Change of Control of Verastem. 

			
	
			
				 1.118
			“Verastem Patents” means all Patent Rights Controlled by Verastem as of the Effective Date or at any time during the Term (subject to the provisions of Section ‎2.11) that cover Licensed Compound or Licensed Product in the Territory (including composition of matter and methods of using, making or detecting the Licensed Compound or the Licensed Products); provided,  however, that Verastem Patents shall exclude all Patent Rights that come into Verastem’s Control as a result of a Change of Control of Verastem. Verastem Patents existing in the Territory as of the Effective Date are set forth in Exhibit A.

			
	
			
				 1.119
			“Working Group” has the meaning set forth in Section ‎3.2(g). 

			
	
			
				Article 2
			
LICENSE

			
	
			
				 2.1
			Exclusive License Grant to Licensee. Subject to the terms and conditions of this Agreement, Verastem hereby grants to Licensee an exclusive (subject to Verastem’s retained rights as set forth in Section ‎2.7), royalty-bearing, non-transferable (except in accordance with Section ‎14.2) license, with the right to grant sublicenses (solely in accordance with Section ‎2.3), under the 

		 

		

			13

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

	Verastem IP to (a) Develop (subject to Section ‎4.2) Licensed Compound or Licensed Products and Commercialize Licensed Products in the Field in the Territory, and (b) obtain, hold and maintain the Regulatory Approvals and any pricing or reimbursement approvals for the Licensed Products in the Field in the Territory. 

			
	
			
				 2.2
			Non-Exclusive License Grant to Licensee. Verastem hereby grants to Licensee a non-exclusive, royalty-bearing, non-transferable (except in accordance with Section 14.2) license with the right to grant sublicenses (solely in accordance with Section ‎2.3), under the Verastem IP to (a) conduct Clinical Trials for Licensed Products and certain preclinical studies for Licensed Compound or Licensed Products [* * *] solely for the purpose of supporting an application for Regulatory Approval of Licensed Products in the Territory (such Clinical Trials and preclinical studies shall be regarded as a part of the Development in the Territory under the Development Plan), and (b) subject to the requirements set forth in this Section ‎2.2 and Section ‎6.1,  Manufacture the Licensed Compound and the Licensed Products inside and outside of the Territory, solely for purposes of Exploitation of the Licensed Product in the Field in the Territory. For the avoidance of doubt, Licensee shall have no right to practice the license granted by Verastem in the foregoing Section ‎2.2(b), except to the extent expressly set forth in the Supply Agreement with respect to the limited Manufacturing license granted by Verastem to Licensee to fill, finish, package, and label the Licensed Product (as provided in the Exhibit H), unless and until the occurrence of a Supply Failure by Verastem (as defined in the Supply Agreement). In the event that Licensee desires to conduct a Clinical Trial or preclinical study outside of the Territory in any country or region other than [* * *], Licensee shall be required to obtain Verastem’s prior written consent. 

			
	
			
				 2.3
			Right to Sublicense. 

			
	
			
				 (a)
			Sublicense to its Affiliates. Subject to the terms and conditions of this Agreement, Licensee shall have the right to grant sublicenses of the License to its Affiliates to fulfill any of its obligations under this Agreement, provided that such sublicense shall automatically terminate if such Affiliate ceases to be an Affiliate of Licensee, and Licensee shall notify Verastem in writing of such sublicense. Licensee shall remain directly responsible for all of its obligations under this Agreement, regardless of whether any such obligation is delegated or sublicensed to an Affiliate, and any breach of the terms or conditions of this Agreement by any of such Affiliate of Licensee shall be deemed a direct breach by Licensee of such terms or conditions of this Agreement.

			
	
			
				 (b)
			Sublicense to Third Parties. 

			
	
			
				 (i)
			Licensee shall have the right to grant sublicenses of the License to Third Parties to fulfill any of its obligations under this Agreement (any such Third Party, a “Sublicensee”), and Licensee shall notify Verastem in writing of such sublicense. Notwithstanding the foregoing, Licensee shall obtain Verastem’s prior written consent if Licensee wishes to sublicense all or substantially all of Licensee’s rights or obligations to a Third Party under this Agreement in the Territory. 

		
			

		 

		

			14

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

			
	
			
				 (ii)
			Each sublicense granted pursuant to Section ‎2.3‎(a) shall be subject to a written agreement that is consistent with the terms and conditions of this Agreement, and Licensee shall ensure that Sublicensees comply with the terms and conditions of this Agreement. Licensee will remain directly responsible for all its obligations under this Agreement, regardless of whether any such obligation is delegated or sublicensed to any of Sublicensees, and any breach of the terms or conditions of this Agreement by such Sublicensees shall be deemed a direct breach by Licensee of such terms or conditions of this Agreement.  

			
	
			
				 (iii)
			Licensee shall Control, or shall cause Sublicensees to assign to Licensee, all intellectual property rights with respect to the Licensed Compound or Licensed Products that are made, discovered, developed or otherwise created by such Sublicensees in the course of performing such sublicense agreement. 

			
	
			
				 (iv)
			Licensee shall provide Verastem with a copy of any sublicense agreement pursuant to which the applicable Sublicensee is Commercializing the Licensed Product (except, for the avoidance of doubt, with respect to distributors or wholesalers), and a certified English translation thereof, within [* * *] days after the execution of any such sublicense agreement provided that Licensee may redact financial and confidential portions of such sublicense agreement.  Further, Licensee will provide Verastem with copies of any quality oversight or audit reports from audits that Licensee has conducted on any of its Sublicensees that Licensee engages to fulfill its obligations under this Agreement to the extent such reports are relevant to such Sublicensees’ conduct of such obligations no later than [* * *] days after receiving or preparing, as applicable, any such report. 

			
	
			
				 2.4
			Right to Subcontract. 

			
	
			
				 (a)
			Licensee shall have the right to engage CROs, contract manufacturing organizations, distributors and other Third Parties to perform its activities under this Agreement (each, a “Subcontractor”); provided, that (i) Licensee shall cause its Subcontractors to be bound by written obligations of confidentiality and non-use at least as restrictive as those set forth in this Agreement, (ii) Licensee shall remain directly responsible for any activities that have been subcontracted to its Subcontractor and shall be responsible for the performance of its Subcontractors, and (iii) any breach by a Subcontractor of the terms and conditions of this Agreement shall be deemed a breach by Licensee of such terms and conditions. Licensee shall Control, or shall cause its Subcontractors to assign to Licensee, all intellectual property rights solely relating to the Licensed Compound or Licensed Products (including, for the avoidance of doubt, Development Data resulting from such subcontracted activities) that are made, discovered, developed or otherwise created by such Subcontractors in the course of performing such subcontracted activities.  Further, Licensee shall provide Verastem with copies of any quality oversight or audit reports from audits that Licensee has conducted on any of its Subcontractors that Licensee engages to the extent such reports are relevant to such Subcontractors’ conduct of subcontracted activities no later than [* * *] days after receiving or preparing, as applicable, any such report.

		
			

		 

		

			15

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

			
	
			
				 (b)
			Verastem shall have the right to engage its Subcontractors to perform its activities for which Verastem is assuming obligations under this Agreement, provided, that (i) Verastem shall remain directly responsible for any activities that have been subcontracted to its Subcontractor and shall be responsible for the performance of its Subcontractors, and (ii) any breach by a Subcontractor of the terms and conditions of this Agreement shall be deemed a breach by Verastem of such terms and conditions. Verastem shall Control, or shall cause its Subcontractors to assign to Verastem, all intellectual property rights solely relating to the Licensed Compound or Licensed Product (including, for the avoidance of doubt, Development Data resulting from such subcontracted activities) that are made, discovered, developed or otherwise created by such Subcontractors in the course of performing such subcontracted activities.  

			
	
			
				 2.5
			Upstream Licenses.  

			
	
			
				 (a)
			Licensee acknowledges and agrees that:

			
	
			
				 (i)
			(A) Verastem obtained the rights to certain Verastem IP from Infinity Pharmaceuticals, Inc. (“Infinity”) under that certain Amended and Restated License Agreement, dated November 1, 2016, by and between Infinity and Verastem (the “Infinity Agreement”); (B) Infinity obtained certain of such rights from Intellikine LLC (“INK”) under that certain Amended and Restated Development and License Agreement, dated December 24, 2012, as amended, by and between Infinity and INK (the “INK Agreement”) (each of Infinity and INK, the “Upstream Licensors”, and each of the Infinity Agreement and the INK Agreement, an “Upstream License Agreement”); (C) the License constitutes a sublicense under each applicable Upstream License Agreement; and (D) each such sublicense is subject to the terms and conditions of the applicable Upstream License Agreement; 

			
	
			
				 (ii)
			Licensee shall, and shall cause its Affiliates and Sublicensees to, comply in all material respects with the Upstream License Agreements and take any action reasonably requested by Verastem to prevent any potential material breach by Licensee, its Affiliates or Sublicensees of any applicable term of any Upstream License Agreements; 

			
	
			
				 (iii)
			it has received a redacted copy of the INK Agreement and a copy of the Infinity Agreement existing as of the Effective Date; and

			
	
			
				 (iv)
			notwithstanding any provision of this Agreement to the contrary, (A) Verastem may provide a copy of this Agreement, and any amendment to this Agreement, to any Upstream Licensor, and (B) Verastem may provide to any Upstream Licensor any information required to be provided to such Upstream Licensor in accordance with the applicable Upstream License Agreement. Verastem acknowledges and agrees that Licensee may provide to any Affiliate or Sublicensee a copy of the Upstream License Agreement and this Agreement; provided that such Affiliate or Sublicensee is subject to confidentiality and non-use obligations no less stringent than those set forth in Article 8.

			
	
			
				 (b)
			[* * *]

		
			

		 

		

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			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

			
	
			
				 2.6
			Disclosure of the Verastem IP.  Verastem shall, within [* * *] days after the Effective Date, furnish to Licensee a then-current data/information package that includes existing Regulatory Documents and existing Development Data that are necessary or reasonably useful to Develop and seek Regulatory Approval for the Licensed Compound and Licensed Product in the Territory (the “Initial Tech Transfer”). Verastem shall be responsible for the costs of such Initial Tech Transfer up to [* * *] FTE hours, after which Licensee shall [* * *]. 

			
	
			
				 2.7
			Verastem Retained Rights.  Notwithstanding the exclusive nature of the License, Verastem expressly retains the rights to use the Verastem IP in the Field in the Territory to the extent necessary to perform its obligations under this Agreement and to Develop and Manufacture Licensed Compound and Licensed Products in the Territory (solely for Commercialization of Licensed Products outside the Territory), in each case whether directly or through its Affiliates, Third Party Licensees or Subcontractors. For clarity, and without limiting the foregoing, Verastem retains the exclusive right to practice, license and otherwise exploit the Verastem IP outside the scope of the License (e.g., outside the Field or outside the Territory). 

			
	
			
				 2.8
			License Grant to Verastem.  Licensee hereby grants to Verastem a non-exclusive, fully-paid, royalty-free, perpetual, irrevocable and sublicenseable (through multiple tiers) license under the Licensee IP, to the extent necessary or useful, to Exploit the Licensed Compound and the Licensed Products in the Field outside the Territory, provided that, in the event of a termination of this Agreement pursuant to Section ‎12.2, the foregoing license shall apply on a worldwide basis. 

			
	
			
				 2.9
			No Implied Licenses; Negative Covenant.  Except as expressly set forth herein, neither Party shall acquire any license or other intellectual property interest, by implication or otherwise, under any Patent Rights, Know-How, trademarks, or other intellectual property rights of the other Party. Licensee shall not, and shall not permit any of its Affiliates, Sublicensees or Subcontractors to, practice any Verastem IP outside the scope of the License.    

			
	
			
				 2.10
			Reimbursement for Third Party IP Sublicense.  If, during the Term, Verastem obtains Control of any intellectual property rights from a Third Party (other than as a result of a Change of Control of Verastem), which intellectual property rights are useful for the Development or Commercialization of Licensed Products in the Field in the Territory (excluding, for the avoidance of doubt, Infringed Patent Rights which are subject to the provisions of Section ‎7.4(c)), then Verastem shall so notify Licensee in writing of such intellectual property rights, including a description thereof and any payments that Verastem is obligated to pay in connection with the grant, maintenance or exercise of a sublicense to Licensee in the Territory (the “TP-IP Sublicense Payments”), and Licensee shall have the right to elect to take such a sublicense under such intellectual property rights. If Licensee so elects, then such intellectual property rights shall be included in the Verastem IP and sublicensed to Licensee hereunder, subject to the terms and conditions of this Agreement and the agreement between Verastem and such Third Party (which Third Party shall be deemed an Upstream Licensor hereunder, and any such Agreements shall be deemed Upstream License Agreements), and Licensee shall [* * *]. 

		
			

		 

		

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			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

			
	
			
				 2.11
			Non-Compete.  During the Term, Licensee shall not, and shall ensure that its Affiliates and Sublicensees do not, [* * *], without the prior written consent of Verastem. 

			
	
			
				 2.12
			[* * *]. 

			
	
			
				Article 3
			
GOVERNANCE

			
	
			
				 3.1
			Alliance Managers.  Each Party shall appoint an individual to act as its alliance manager under this Agreement as soon as practicable after the Effective Date (each Party’s appointed individual, its “Alliance Manager”).  Each Alliance Manager shall have the ability to speak English sufficient for purposes of business communication. The Alliance Managers shall: (a) serve as the primary points of contact between the Parties for the purpose of providing the other Party with information on the progress of a Party’s activities under this Agreement; (b) be responsible for facilitating the flow of information and otherwise promoting communication, coordination and collaboration between the Parties, provided that all communications between the Parties shall be in English; (c) facilitate the prompt resolution of any disputes; and (d) attend JSC meetings (as a non-voting participant) and JPT meetings. An Alliance Manager may also bring any matter to the attention of the JSC, JPT or applicable Working Group if such Alliance Manager reasonably believes that such matter warrants such attention. Each Party may replace its Alliance Manager at any time upon [* * *] days prior written notice to the other Party. 

			
	
			
				 3.2
			Joint Steering Committee. 

			
	
			
				 (a)
			Formation.  No later than [* * *] days following the Effective Date, the Parties shall establish a joint steering committee (the “JSC”) to monitor and coordinate the Development and Commercialization of Licensed Products in the Field in the Territory, as set forth in Section ‎3.2‎(b) below. The JSC will be comprised of an equal number of representatives from each Party and a minimum of three (3) representatives of each Party, each with the requisite experience and seniority to enable them to make decisions on behalf of the Parties with respect to the issues falling within the jurisdiction of the JSC.  From time to time, each Party may substitute one or more of its representatives to the JSC upon written notice to the other Party.  

			
	
			
				 (b)
			Role and Purpose.  The JSC shall (i) provide a forum for the discussion of the Parties’ activities under this Agreement and for sharing with Verastem the progress, results and other relevant information with respect to the Development and Commercialization by Licensee in the Field in the Territory; (ii) review, discuss and approve the overall strategy for the Exploitation of Licensed Products in the Field in the Territory; (iii) review, discuss and approve any amendments to the Development Plan in accordance with Section ‎4.2; (iv) review, discuss and approve the Commercialization Plan and amendments thereto; (v) establish and oversee the JPT and Working Groups as necessary or advisable to further the purpose of this Agreement; (vi) serve as a forum for Verastem to share the Global Strategy, the study plans and details for the Global Clinical Trials, and status, results and other relevant information in connection with the Global Clinical Trials and Verastem’s Exploitation of the Licensed Product in the Field outside the 

		 

		

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			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

	Territory; and (vii) perform such other functions as expressly set forth in this Agreement or allocated to the JSC by the Parties’ written agreement.

			
	
			
				 (c)
			Limitation of Authority.  The JSC shall only have the powers expressly assigned to it in this ‎Article 3 and elsewhere in this Agreement and shall not have the authority to: (i) modify or amend the terms and conditions of this Agreement (except for amendments to the Development Plan pursuant to Section 4.2); (ii) waive either Party’s compliance with the terms and conditions of this Agreement; or (iii) determine any issue in a manner that would conflict with the express terms and conditions of this Agreement. 

			
	
			
				 (d)
			Meetings. The JSC shall hold meetings on a regular basis, but no less frequently than [* * *] per Calendar Year, or with such other frequency as the Parties may agree. The JSC may meet in person or by means of teleconference, Internet conference, videoconference or other similar communication method; provided that all such meetings shall be conducted in English; and provided further, that at least [* * *] during the period commencing on the Effective Date and ending on the date the JSC is disbanded pursuant to Section ‎3.2(h), such meetings will be conducted in person at locations selected alternatively by Verastem and Licensee or at such other location as the Parties may agree. Each Party shall bear its own expenses related to participation in and attendance at such meetings by its respective JSC representatives. The Alliance Manager of Verastem shall prepare minutes for each JSC meeting and provide such minutes to the Alliance Manager of Licensee within [* * *] days of each such meeting, and the Alliance Managers shall ensure that such minutes are reviewed and approved by their respective Parties within [* * *] days thereafter. For the avoidance of doubt, the meetings of the JSC and the JPT shall be conducted in English, and any materials provided to the JSC in connection with such discussions shall be provided in English. 

			
	
			
				 (e)
			Decision-Making.  All decisions of the JSC shall be made by unanimous vote, with each Party’s representatives collectively having one (1) vote. If after reasonable discussion and good faith consideration of each Party’s view on a particular matter before the JSC, the JSC cannot reach a unanimous decision as to such matter within [* * *] days after such matter was brought to the JSC for resolution, then such matter shall be referred to the Chief Executive Officer of Verastem (or an executive officer of Verastem designated by the Chief Executive Officer of Verastem who has the power and authority to resolve such matter) and the Head of Pharmaceutical Division of Licensee (collectively, the “Executive Officers”) for resolution. If the Executive Officers cannot resolve such matter within [* * *] days after such matter has been referred to them, then [* * *], provided that Licensee shall not make any decision or take any action that (i) could reasonably be expected to adversely impact the Licensed Product outside of the Territory, including the Licensed Product brand as established under the Global Strategy, (ii) requires Verastem to perform or refrain from reforming any activity except as expressly required under this Agreement, or (iii) requires Verastem to provide any resources or bear any costs except as expressly required under this Agreement, in each case without first obtaining Verastem’s prior written consent, which consent may be withheld in Verastem’s sole discretion. 

		
			

		 

		

			19

		

 

		

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			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

			
	
			
				 (f)
			Joint Project Team.  No later than [* * *] days following the Effective Date, the JSC will form a joint project team (the “JPT”) to coordinate and oversee the day-to-day performance of the activities and obligations of the Parties under this Agreement. The JPT will be composed of representatives from each Party who have direct knowledge and expertise in each of the following functional areas: clinical, clinical operations, pharmaceutical development, regulatory, safety, manufacturing, intellectual property, marketing and commercial, in each case, as such functional areas relate to products similar to the Licensed Compound or the Licensed Products. The JPT shall meet at least once per [* * *], or such other frequency as the JSC may determine. The JPT may meet in person or by means of teleconference, Internet conference, videoconference or other similar communications method. The JPT and its activities shall be subject to the oversight of, and shall report to, the JSC and the JSC shall resolve all disputes that arise within the JPT within [* * *] days after any such matter is brought to the JSC for resolution. In no event shall the authority of the JPT exceed the authority of the JSC. Each Party shall be responsible for all of its own expenses of participating in the JPT.

			
	
			
				 (g)
			Working Groups.  From time to time, the JSC may establish joint working groups (each, a “Working Group”) on an “as-needed” basis to oversee specific functional areas or activities and coordinate the day-to-day performance of such activities under this Agreement, which establishment of Working Groups shall be reflected in the minutes of the meetings of the JSC. Each such Working Group shall be constituted, shall meet as frequently as and shall operate as the JSC may determine. Working Groups may meet in person or by means of teleconference, Internet conference, videoconference or other similar communications method. Each Working Group and its activities shall be subject to the oversight of, and shall report to, the JSC, and the JSC shall resolve all disputes that arise within a Working Group within [* * *] days after any such matter is brought to the JSC for resolution. In no event shall the authority of any Working Group exceed the authority of the JSC. Each Party shall be responsible for all of its own expenses of participating in any Working Group. 

			
	
			
				 (h)
			Discontinuation of JSC.  The JSC shall continue to exist until the Parties’ mutual written agreement to disband the JSC. Once the JSC is disbanded, the JSC shall have no further obligations under this Agreement and, thereafter, the Alliance Managers shall be the points of contact for the exchange of information under this Agreement and decisions formerly decided by the JSC shall be decided between the Parties, subject to the other terms and conditions of this Agreement (including the dispute resolution mechanisms set forth in ‎Article 13).

			
	
			
				 (i)
			Non-Member Attendance.  Each Party may from time to time invite a reasonable number of participants, in addition to its representatives, to attend a meeting of the JSC (in a non-voting capacity), JPT or any Working Group in the event that the planned agenda for such JSC, JPT or Working Group meeting would require such participants’ expertise; provided that if either Party intends to have any Third Party (including any consultant) attend such a meeting, such Party shall provide [* * *] days prior written notice to the other Party and shall ensure that such Third Party is bound by a written confidentiality and non-use agreement consistent with the terms of this Agreement. 

		
			

		 

		

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			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

			
	
			
				Article 4
			
DEVELOPMENT 

			
	
			
				 4.1
			Diligence and Responsibilities. 

			
	
			
				 (a)
			Licensee shall be responsible for and use Commercially Reasonable Efforts to Develop Licensed Products in the Field in the Territory, in a timely manner, including the timely completion of all activities set forth in the Development Plan.  Without limiting the foregoing, Licensee must achieve the specific Development objectives set forth on Exhibit D hereto in accordance with the timeframes set forth therein, as such Exhibit D may be amended from time to time by review, discussion and approval of the JSC.  Licensee shall, and shall cause its Affiliates, Sublicensees and its Subcontractors to, conduct all Development under this Agreement in a professional manner and in compliance with all Applicable Laws in the Territory, including applicable GLP, cGMP and GCP. 

			
	
			
				 (b)
			Without limiting the foregoing, with respect to the Global Clinical Trials, Licensee shall have a right to elect, at its sole discretion, to perform certain Development activities such as monitoring and site management in the Territory by using its internal clinical research associates.  If Licensee elects (i) to perform such Development activities of a Global Clinical Trial in the Territory, Licensee shall, in collaboration with any global CRO engaged by Verastem to conduct such Global Clinical Trial (including any local Affiliate of a global CRO or global service provider), use Commercially Reasonable Efforts to perform the Development activities in the Territory that are assigned to Licensee for purposes of contributing to such Global Clinical Trial, or (ii) not to perform such Development activities of a Global Clinical Trial in the Territory by using its internal clinical research associates, such Development activities shall be performed by a global CRO engaged by Verastem instead.

			
	
			
				 4.2
			Development Plan.  All Development by Licensee in the Field in the Territory under this Agreement shall be conducted pursuant to a written development plan (as amended from time to time in accordance with this Section ‎4.2 and Section ‎3.2, the “Development Plan”) and the Development Plan as of the Effective Date is attached hereto as Exhibit E.  The Development Plan will include a timeline for submission of applicable Regulatory Documents to the PMDA and from time to time following the Effective Date, Licensee shall have the right to propose amendments or modifications to the Development Plan in consultation with Verastem, and shall submit such proposed amended or modified Development Plan to the JSC for review and comment. If such proposed amended or modified Development Plan is approved by the JSC, then such amended or updated Development Plan shall become effective and binding upon the Parties.  Licensee shall only conduct Development to the extent such Development is expressly contemplated by the then-current Development Plan. 

			
	
			
				 4.3
			Development Costs.    

		
			

		 

		

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				 (a)
			Licensee shall bear all costs and expenses of the Development activities conducted solely by Licensee, its Affiliates its Sublicensees or its Subcontractors (whether inside or outside of the Territory) hereunder.

			
	
			
				 (b)
			Notwithstanding Section ‎4.3‎(a) above, with respect to a Global Clinical Trial, Licensee shall bear (i) all costs incurred by Licensee, its Affiliates, its Sublicensees or its Subcontractors to the extent Licensee, its Affiliates, its Sublicensees, or its Subcontractors perform Development activities in connection with such Global Clinical Trial in the Territory, (ii) all costs incurred by Verastem, its Affiliates, its Third Party Licensees or its Subcontractors to the extent Verastem, its Affiliates, its Third Party Licensees or its Subcontractors perform Development activities in connection with such Global Clinical Trial in the Territory, to the extent Licensee does not perform Development activities of such Global Clinical Trial in the Territory; and (iii) a pro rata portion of the common expenses (e.g., study management cost and data management cost) [* * *]. Verastem may invoice Licensee on a [* * *]  basis for the foregoing costs incurred by Verastem with respect to the Global Clinical Trial, and Licensee shall pay the amount invoiced within [* * *] Business Days after the receipt of any such invoice. 

			
	
			
				 4.4
			Development Records.  Licensee shall maintain complete, current and accurate records of all Development activities conducted by or on behalf of Licensee or its Affiliates Sublicensees, or Subcontractors pursuant to this Agreement and all data and other information resulting from such activities consistent with its standard practices in accordance with all Applicable Laws, and in validated computer systems that are compliant with 21 C.F.R. §11 (with respect to Global Clinical Trials). Licensee will obtain Verastem’s written consent prior to destroying any records relating to the Development of Licensed Products. Such records shall fully and properly reflect all work done and results achieved in the performance of the Development activities in good scientific manner appropriate for regulatory and patent purposes. Licensee shall document all non-clinical studies and Clinical Trials in formal written study reports in accordance with Applicable Laws and applicable guidelines (e.g., GCP, GLP and GMP). 

			
	
			
				 4.5
			Clinical Trial Audit Rights.  

			
	
			
				 (a)
			Upon reasonable notification by Verastem and at Verastem’s cost and expense, Verastem or its representatives shall be entitled to conduct an audit of any Clinical Trial sites engaged by Licensee or its Affiliates or Sublicensees to conduct Development activities under the Development Plan, subject to any applicable restrictions contained in Licensee’s contracts with such Clinical Trial sites, to ensure that such Clinical Trials; (i) are conducted in compliance with applicable GCP, and (ii) meet Verastem’s standards for the Global Clinical Trial as well in case of such Clinical Trial sites are engaged in the Global Clinical Trials. No later than [* * *] days following the completion of any such audit, Verastem shall provide Licensee with a written summary of Verastem’s findings, including any potential deficiencies or other areas of remediation that Verastem identifies during such audit, and the Parties shall discuss in good faith such potential deficiencies and other areas of remediation. Licensee will remediate any such deficiencies and any other areas of remediation confirmed by both Parties within [* * *] days following such confirmation, at Licensee’s cost and expense. Notwithstanding the foregoing, if such deficiencies 

		 

		

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	or other areas of remediation are not, by their nature, reasonably capable of remediation within such [* * *] day period (e.g., due to delays of the Clinical Trial site), then such period shall be reasonably extended.

			
	
			
				 (b)
			Licensee will provide Verastem with copies of all quality oversight or audit reports prepared in connection with any audit that Licensee, its Affiliates or Sublicensees conduct of any Clinical Trial site that Licensee, its Affiliates or Sublicensees have engaged, or are evaluating to potentially engage, to fulfill Licensee’s Development obligations under the Development Plan no later than [* * *] days after receiving or finalizing, as applicable, any such report. 

			
	
			
				 4.6
			Development Reports.  No less frequently than [* * *], Licensee shall provide Verastem with written reports summarizing its, its Affiliates’, its Sublicensees’ and its Subcontractors’ Development of Licensed Products, including a summary of the data, timelines and results of such Development, and an overview of future Development activities reasonably contemplated by Licensee, which reports shall be provided in English. Licensee shall also establish a secure link that includes adequate encryption safeguards to provide Verastem with electronic access to such information. Without limiting the foregoing, such reports shall contain sufficient detail to enable Verastem to assess Licensee’s compliance with Licensee’s Development obligations hereunder. [* * *]. Licensee shall promptly respond to Verastem’s reasonable requests for additional information regarding significant Development activities, as Verastem may request from time to time. The Parties shall discuss the status, progress and results of Development activities at JSC meetings. 

			
	
			
				 4.7
			Data Exchange and Use. 

			
	
			
				 (a)
			 In addition to its adverse event and safety data reporting obligations pursuant to Section ‎5.4 each Party shall promptly, but in no event later than [* * *] days, provide the other Party with copies of all Development Data Controlled by such Party that are generated and finalized by or on behalf of such Party or its Affiliates, Third Party Licensees (with respect to Verastem), Sublicensees (with respect to Licensee) or its Subcontractors, if applicable, in the Development in the Field, provided that Verastem’s obligation to provide such Development Data shall be  limited to such Development Data as is necessary or useful for the Development,  Regulatory Approval or Commercialization of Licensed Products in the Territory, and Licensee’s use of such Development Data in applications for Regulatory Approval shall be subject to Licensee’s payment obligations under Section 5.3(b). Such copies of Development Data shall include a written English summary in the event that such Development Data is generated in a language other than English.

			
	
			
				 (b)
			Upon Verastem’s reasonable request, Licensee shall allow Verastem to access, review and copy records relating to the Development activities (including access to relevant databases), to the extent that such records are Controlled by Licensee. Upon Licensee’s reasonable request, Verastem shall allow Licensee to access, review and copy records relating to the Development activities (including access to relevant databases), to the extent that such records 

		 

		

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	are Controlled by Verastem, provided that Licensee’s right to access, review and copy such records shall be limited to such records that are necessary or useful for the Development, Regulatory Approval or Commercialization of Licensed Products in the Territory, and Licensee’s use of such records in connection with applications for Regulatory Approval shall be subject to Licensee’s payment obligations under Section 5.3(b).

			
	
			
				 (c)
			Notwithstanding anything herein to the contrary, Licensee’s use of the Development Data from any Verastem New Clinical Trial shall be subject to Section ‎5.3(b).  

			
	
			
				Article 5
			
REGULATORY

			
	
			
				 5.1
			Licensee’s Responsibilities.  

			
	
			
				 (a)
			Licensee shall use Commercially Reasonable Efforts to seek Regulatory Approval for Licensed Products in the Field in the Territory, and shall be responsible, at its sole cost and expense, for all regulatory activities leading up to and including the obtaining, holding and maintaining of Regulatory Approvals and any pricing or reimbursement approvals, as applicable, for Licensed Products from Regulatory Authorities in the Territory. Without limiting the foregoing, Licensee must achieve the specific Regulatory Approval objectives set forth on Exhibit D hereto in accordance with the timeframes set forth therein, as such Exhibit D may be amended from time to time by review, discussion and approval of the JSC.    Licensee shall keep Verastem informed of regulatory status related to Licensed Products in the Territory and shall promptly notify Verastem in writing of any decision by any Regulatory Authority in the Territory regarding any Licensed Product. 

			
	
			
				 (b)
			Licensee shall provide to Verastem for review and comment drafts of all material Regulatory Documents which Licensee plans to submit to a Regulatory Authority, or any Regulatory Documents that could reasonably be expected to have a material impact on the further Development or Regulatory Approval in the Field in the Territory, together with a written English summary thereof, reasonably (but in no event later than [* * *] Business Days or, if Licensee has fewer than [* * *] Business Days to prepare a submission, as soon as reasonably practicable) prior to submission, and shall incorporate any reasonable comments from Verastem that are provided to Licensee before the date of such submission. In addition, Licensee shall notify Verastem of any Regulatory Documents submitted to or received from any Regulatory Authority in the Territory and shall provide Verastem with copies thereof within [* * *] Business Days after submission or receipt of such Regulatory Documents. 

			
	
			
				 (c)
			Licensee shall provide Verastem with notice no later than [* * *] Business Days after receiving notice of any meeting or discussion with any Regulatory Authority in the Territory related to any the Licensed Compound or the Licensed Product. Licensee shall lead such meeting or discussion,  provided,  however, that Verastem shall have the right, but not the obligation, to attend and participate in such meeting or discussion. If Verastem elects not to attend 

		 

		

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	such meeting or discussion, Licensee shall provide Verastem with a written summary thereof in English promptly, but in no event later than [* * *] days, following such meeting or discussion. 

			
	
			
				 5.2
			Verastem’s Responsibilities.  Verastem shall reasonably cooperate with Licensee in obtaining, holding and maintaining any Regulatory Approvals and any pricing or reimbursement approvals, as applicable, for a Licensed Product in the Territory by providing, to the extent Controlled by Verastem and subject to Section ‎5.3(b), access to Regulatory Approvals, Regulatory Documents and the Development Data (including raw data and records to the extent expressly required by Regulatory Authorities) for the Licensed Compound and Licensed Products inside and outside of the Territory.  [* * *]. 

			
	
			
				 5.3
			Right of Reference and Use.    

			
	
			
				 (a)
			Each Party hereby grants to the other Party the right of reference to all Regulatory Documents pertaining to Licensed Products in the Field submitted by or on behalf of such Party or its Affiliates provided that Licensee’s right of reference to Verastem’s Regulatory Documents shall be (i) subject to Section 5.3(b) and (ii) limited to Regulatory Documents Controlled by Verastem or its Affiliates, and (iii) solely for the purpose of seeking, obtaining and maintaining Regulatory Approval and any pricing or reimbursement approvals, as applicable, of Licensed Products in the Field in the Territory. Each Party shall bear its own costs and expenses associated with providing the other Party with the right of reference pursuant to this Section ‎5.3. 

			
	
			
				 (b)
			If Licensee elects to include any Development Data from a Verastem New Clinical Trial in any application for Regulatory Approval in the Territory for the purpose of supporting efficacy of any Licensed Product (excluding, for the avoidance of doubt, inclusion of Development Data in supplemental documents for purposes that are unrelated to efficacy, such as mandatory inclusion in the Licensed Product’s safety database), then Licensee shall be responsible for a portion of the costs of such Verastem New Clinical Trial as follows:

			
	
			
				 (i)
			In the event that Licensee notifies Verastem in writing before enrollment of the first patient in such Verastem New Clinical Trial, Licensee shall be responsible for [* * *] of the costs incurred by Verastem in the conduct of such Verastem New Clinical Trial.  Verastem shall invoice Licensee on a [* * *]  basis for the amount of foregoing Licensee’s cost burden, and Licensee shall pay the amount invoiced within [* * *] Business Days after the receipt of such invoice.

			
	
			
				 (ii)
			In the event that Licensee notifies Verastem in writing after the enrollment of the first patient in such Verastem New Clinical Trial, but before Verastem’s final data becomes available, Licensee shall be responsible for [* * *] of the costs incurred by Verastem in the conduct of such Verastem New Clinical Trial. Verastem shall invoice Licensee [* * *] of the costs actually incurred by Verastem up to that point and Licensee shall pay the amount invoiced within [* * *] Business Days after the receipt of any such invoice.  Thereafter, Verastem shall invoice Licensee on a [* * *] basis for the amount of foregoing Licensee’s cost burden, and 

		 

		

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	Licensee shall pay the amount invoiced within [* * *] Business Days after the receipt of such invoice.

			
	
			
				 (iii)
			In the event that Licensee notifies Verastem in writing after the final data of such Verastem New Clinical Trial is available, Licensee shall be responsible for [* * *] of the costs incurred by Verastem in the conduct of such Verastem New Clinical Trial.  Verastem shall invoice Licensee for the amount of foregoing Licensee’s cost burden, and Licensee shall pay the amount invoiced within [* * *] Days after the receipt of such invoice. 

			
	
			
				 (c)
			Notwithstanding the foregoing Section ‎5.3‎(b), with respect to the [* * *] Clinical Trial, the [* * *] Clinical Trial and the [* * *], Licensee shall be required to notify Verastem in writing by the later of (i) [* * *] days following the Effective Date or (ii) [* * *] days after [* * *] the [* * *] Clinical Trial, the [* * *] Clinical Trial, or the [* * *], as applicable, if Licensee desires to include any Development Data from any such Clinical Trial in any application for Regulatory Approval in the Territory for the purpose of supporting efficacy of any Licensed Product (excluding, for the avoidance of doubt, inclusion of Development Data in supplemental documents for purposes that are unrelated to efficacy, such as mandatory inclusion in the Licensed Product’s safety database).  If Licensee so notifies Verastem, then Licensee shall be responsible for [* * *] of the costs incurred by Verastem in the conduct of the [* * *]. Verastem shall invoice Licensee [* * *] of the costs actually incurred by Verastem up to that point and Licensee shall pay the amount invoiced within [* * *] Business Days after the receipt of any such invoice.  Thereafter, Verastem shall invoice Licensee on a [* * *] basis for the amount of Licensee’s cost burden, and Licensee shall pay the amount invoiced within [* * *] Business Days after the receipt of such invoice.  If Licensee elects to use the Development Data from the [* * *] Clinical Trial, the [* * *] Clinical Trial or the [* * *] after such period, then Sections 5.3(b)(ii) and 5.3(b)(iii) shall apply accordingly.

			
	
			
				 5.4
			Adverse Events Reporting.

			
	
			
				 (a)
			Promptly following the Effective Date, but in no event later than [* * *] days thereafter, Licensee and Verastem shall develop and agree in a written agreement to worldwide safety and pharmacovigilance procedures for the Parties with respect to Licensed Products, such as safety data sharing and exchange, adverse events reporting and prescription events monitoring (the “Pharmacovigilance Agreement”). Such Pharmacovigilance Agreement shall describe the obligations of both Parties with respect to the coordination of collection, investigation, reporting and exchange of information between the Parties concerning adverse events or any other safety issue of any significance and product quality and product complaints involving adverse events, in each case with respect to Licensed Products and sufficient to permit each Party and its Affiliates, Third Party Licensees and Sublicensees to comply with its legal obligations with respect thereto. The Pharmacovigilance Agreement shall be promptly updated if required by changes in Applicable Law. Each Party hereby agrees to comply with its respective obligations under the Pharmacovigilance Agreement and to cause its Affiliates, Third Party Licensees and Sublicensees to comply with such obligations.

		
			

		 

		

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				 (b)
			Licensee shall maintain an adverse event database for Clinical Trials conducted in the Territory under the Development Plan, at its sole cost and expense. Licensee shall be responsible for reporting to the applicable Regulatory Authorities in the Territory all quality complaints, adverse events and safety data related to Licensed Products for all Clinical Trials conducted in the Territory under the Development Plan, as well as responding to safety issues and to all requests of Regulatory Authorities related to Licensed Products in the Territory. Verastem shall maintain a global adverse event database for the completed Clinical Trials and any future Global Clinical Trials or Verastem New Clinical Trials at Verastem’s cost and expense, except for any costs allocated to Licensee pursuant to Section ‎4.3.  

			
	
			
				 5.5
			Safety and Regulatory Audits.  

			
	
			
				 (a)
			If a Regulatory Authority desires to conduct an inspection or audit of Licensee, its Affiliates, Sublicensees or Subcontractors (including Clinical Trial sites) relating to the Licensed Compound or the Licensed Products, Licensee shall promptly notify Verastem thereof. Verastem shall have the right, but not the obligation, to be present at any such inspection. Licensee shall permit Regulatory Authorities to conduct inspections or audit of Licensee, its Affiliates, Sublicenses or Subcontractors (including Clinical Trial sites) relating to the Licensed Compound or the Licensed Products, and shall ensure that such Affiliates, Sublicensees and Subcontractors permit such inspections or audit. Licensee will provide Verastem with a written summary in English of any findings of a Regulatory Authority following a regulatory audit within [* * *] days following any such inspection or audit, and will provide Verastem with an unredacted copy of any report issued by such Regulatory Authority following such audit.

			
	
			
				 (b)
			If a Regulatory Authority desires to conduct an inspection or audit of Verastem, its Affiliates, Third Party Licensees or Subcontractors  (including Clinical Trial sites) relating to the Licensed Compound or the Licensed Products for the Territory, Verastem shall promptly notify Licensee thereof. Licensee shall have the right to request to be present at any such inspection, and Verastem shall consider Licensee’s request in good faith. Verastem shall permit Regulatory Authorities to conduct inspections or audit of Verastem, its Affiliates, Third Party Licensees or Subcontractors  (including Clinical Trial sites) relating to the Licensed Compound and/or the Licensed Products, and shall ensure that such Affiliates, Third Party Licensees and Subcontractors permit such inspections or audit. Verastem will provide Licensee with a written summary in English of any findings of a Regulatory Authority following a regulatory audit within [* * *] days following any such inspection or audit, and will provide Licensee with an unredacted copy of any report issued by such Regulatory Authority following such audit.

			
	
			
				 5.6
			No Harmful Actions.  Each Party shall not, and shall use Commercially Reasonable Efforts to cause its Affiliates, Sublicensees (with respect to Licensee), Third Party Licensees (with respect to Verastem) or its Subcontractors not to, take any action with respect to a Licensed Product that could reasonably be expected to have an adverse impact upon the other Party’s regulatory status of any Licensed Product.  If a Party believes that the other Party is (or any of its Affiliates, Sublicensees (with respect to Licensee), Third Party Licensees (with respect to Verastem) or its Subcontractors are) taking or intends to take any action with respect to a 

		 

		

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			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

	Licensed Product that could have an adverse impact upon other Party’s regulatory status of any Licensed Product, then such Party shall have the right to bring the matter to the attention of the JSC and the Parties shall discuss in good faith a resolution of such concern. Without limiting the foregoing, unless the Parties otherwise agree: (a) Licensee shall not, and shall not permit its Affiliates, Sublicensees or Subcontractors to, communicate with any Regulatory Authority having jurisdiction outside the Territory with respect to any Licensed Product, unless so ordered by such Regulatory Authority, in which case Licensee shall immediately, but in any event within [* * *], notify Verastem of such order; and (b) Licensee shall not, and shall not permit its Affiliates, Sublicensees or Subcontractors to, submit any Regulatory Documents or seek Regulatory Approvals outside the Territory.

			
	
			
				 5.7
			Notice of Regulatory Action.  If any Regulatory Authority takes or gives notice of its intent to take any regulatory action with respect to any activity of Licensee or its Affiliates, Sublicensees or Subcontractors relating to any Licensed Compound or Licensed Product, then Licensee shall notify Verastem of such contact, inspection or notice or action within [* * *] hours after receipt of any such notice or conduct of any such action. Verastem shall have the right to review and comment on any responses to Regulatory Authorities that pertain to a Licensed Compound or Licensed Product and Licensee shall incorporate any reasonable comments received from Verastem. The costs and expenses of any regulatory action in the Territory shall be borne solely by Licensee. Licensee shall, and shall ensure that its Affiliates, Sublicensees and Subcontractors, maintain adequate records to permit the Parties to trace the distribution, sale and use of Licensed Products in the Territory. In addition, each Party shall promptly, but in any event within [* * *], notify the other Party of any information it receives regarding any threatened or pending action, inspection or communication by or from a Third Party, including a Regulatory Authority, that would reasonably be expected to materially adversely affect the Exploitation of the Licensed Compounds or Licensed Products in the Territory. 

			
	
			
				Article 6
			
Supply and Commercialization 

			
	
			
				 6.1
			Supply. 

			
	
			
				 (a)
			Supply by Verastem. Subject to Section ‎2.2, Section ‎6.1(a), and the terms and conditions of the Supply Agreement, Verastem shall supply to Licensee, and Licensee hereby agrees to purchase from Verastem, any and all requirements of (i) Licensed Compound for Development and (ii) Licensed Product for Development and Commercialization in the Territory during the Term, in each case ((i) and (ii)), limited solely to Licensed Compound in the same bulk drug substance form, and the formulation of Licensed Product, in each case that Verastem or its Affiliates is at the applicable time of such supply, Manufacturing or having Manufactured for Development and Commercialization purposes by Verastem, its Affiliates or Third Party Licensees (as applicable). Subject to the foregoing, Verastem shall supply Licensed Compound or Licensed Product [* * *], at a transfer price equal to Verastem’s Fully Burdened Manufacturing Costs plus a fixed handling amount of [* * *]. Within [* * *] months] following the Effective Date, the Parties will execute a separate supply agreement containing supply and quality terms and 

		 

		

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	conditions consistent with the principles set forth on Exhibit H hereto (Supply Agreement Key Terms) and typical for such agreements (the “Supply Agreement”). Verastem shall invoice Licensee for the Licensed Compound and Licensed Product upon delivery and Licensee shall pay the amount invoiced within [* * *] Business Days after its receipt of the invoice. 

			
	
			
				 (b)
			Responsibilities of each Party.  Within [* * *] months following the Effective Date, the Parties shall enter into a separate quality agreement that describes the responsibilities of each Party in the area of technical cooperation and quality assurance with respect to the supply of the Licensed Product in the Territory and containing terms and conditions consistent with the principles set forth on Exhibit H hereto and typical for such agreements (the “Quality Agreement”).

			
	
			
				 (c)
			Technology Transfer and Cooperation.  In the event of a Supply Failure (as such term is defined in the Supply Agreement), Verastem shall, and shall cause its Affiliate(s) or Subcontractor(s) to, as applicable, provide Licensee with reasonable support and cooperation, at Verastem’s expense, to complete a technology transfer of the Verastem Know-How related to the Manufacture of the Licensed Product to Licensee or its designee in accordance with a technology transfer plan to be agreed upon by the Parties. 

			
	
			
				 6.2
			Commercialization Diligence.   Licensee shall be responsible for, and shall use Commercially Reasonable Efforts to Commercialize each Licensed Product in the Field in the Territory, including the timely performance of all activities set forth in the Commercialization Plan for such Licensed Product, at its sole cost and expense.

			
	
			
				 6.3
			Commercialization Plan.  The Commercialization activities with respect to a Licensed Product shall be set forth in a written plan that contains, in reasonable detail, the major Commercialization activities, including revenue targets and unit forecasts, planned for such Licensed Product in the Territory and the timelines for achieving such activities (the “Commercialization Plan”). Licensee shall deliver an initial draft of the Commercialization Plan to Verastem for Verastem’s review no later than [* * *] months prior to the anticipated date of the First Commercial Sale of Licensed Product in the Territory. Verastem shall have the right to review and comment on such Commercialization Plan and Licensee shall incorporate any reasonable comments received from Verastem prior to finalizing such Commercialization Plan. Thereafter, from time to time, but at least every [* * *] months, Licensee shall propose updates or amendments to the Commercialization Plan in consultation with Verastem to reflect changes in such plans, including those in response to changes in the marketplace, relative commercial success of such Licensed Product, and other relevant factors that may influence such plan and activities. Licensee shall submit a draft of updated or amended Commercialization Plan to Verastem for review and comment during Verastem’s brand planning process in the [* * *] of each Calendar Year (and at such other times during the Calendar Year as the Parties may agree), and Licensee shall incorporate any reasonable comments received from Verastem into such update or amendment.    

			
	
			
				 6.4
			Commercialization Reports.  For each Calendar Year following the first Regulatory Approval for any Licensed Product in the Territory, Licensee shall provide to Verastem 

		 

		

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	annually within [* * *] days after the end of such Calendar Year a written report that summarizes the Commercialization activities on a Licensed Product-by-Licensed Product basis performed by or on behalf of Licensee, its Affiliates and Sublicensees in the Territory during such Calendar Year. Such report shall contain sufficient detail to enable Verastem to assess Licensee’s compliance with its Commercialization obligations in Section ‎6.2.  [* * *]. Licensee shall provide updates to any such report at each meeting of the JSC, JPT and any Working Group established by the JSC to oversee Commercialization-related activities under this Agreement. 

			
	
			
				 6.5
			Commercial Forecast. Within [* * *] Business Days after the First Commercial Sale of  a Licensed Product by Licensee or any of its Affiliates or Sublicensees, and on a [* * *] basis thereafter, Licensee shall provide to Verastem a forward-looking, non-binding forecast, for the then-current Calendar Year (or, with respect to the first such forecast, the remainder of the current Calendar Year), of anticipated annual Net Sales of Licensed Products in the Territory; provided,  however, that if the First Commercial Sale of the Licensed Product by Licensee or any of its Affiliates or Sublicensees occurs [* * *], the first such forecast shall cover the remainder of the current Calendar Year (if applicable) and the next Calendar Year, and no forecast shall be due by [* * *] in such next Calendar Year. 

			
	
			
				 6.6
			Coordination of Commercialization Activities.  

			
	
			
				 (a)
			The Parties recognize that they may benefit from the coordination of certain activities in support of the Commercialization of Licensed Products in and outside the Territory in furtherance of the Global Strategy. As such, the Parties shall coordinate such activities where appropriate, which may include scientific and medical communication and Licensed Product positioning. 

			
	
			
				 (b)
			Licensee shall keep Verastem informed on the status of any application for pricing or reimbursement approval for Licensed Products in the Territory, including any discussion with Regulatory Authorities with respect thereto, and shall notify Verastem within [* * *] Business Days of any such status update or discussion. Each Party shall have the right to determine the price of Licensed Products sold in its territory and neither Party shall have the right to direct, control or approve the pricing of Licensed Products in the other Party’s territory. 

			
	
			
				 6.7
			Diversion.  Each Party covenants and agrees that it shall not, and shall ensure that its Affiliates, Third Party Licensees (with respect to Verastem) and Sublicensees (with respect to Licensee)  shall not, either directly or indirectly, promote, market, distribute, import, sell or have sold any Licensed Products, including via the Internet or mail order, to any Third Party or to any address or Internet Protocol address or the like in the other Party’s territory; provided that each Party shall have the right to attend conferences and meetings of congresses in the other Party’s territory and to promote and market, for their respective territory, Licensed Products to Third Party attendees at such conferences and meetings, subject to this Section ‎6.7. Neither Party shall engage, nor permit its Affiliates, Third Party Licensees (with respect to Verastem) or Sublicensees (with respect to Licensee) to engage, in any advertising or promotional activities relating to any Licensed Products for use directed primarily to customers or other buyers or users of Licensed Products 

		 

		

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	located in any country, jurisdiction or region in the other Party’s territory, or solicit orders from any prospective purchaser located in any country, jurisdiction or region in the other Party’s territory. If a Party, its Affiliates, Third Party Licensees (with respect to Verastem) or Sublicensees (with respect to Licensee) receive any order for Licensed Products for use from a prospective purchaser located in a country, jurisdiction or region in the other Party’s territory, then such Party shall immediately, but in any event within [* * *] hours, refer that order to such other Party and shall not accept any such orders. Neither Party shall, nor permit its Affiliates, Third Party Licensees (with respect to Verastem) or Sublicensees (with respect to Licensee) to, deliver or tender (or cause to be delivered or tendered) any Licensed Products for use in the other Party’s territory. 

			
	
			
				Article 7
			
PAYMENTS

			
	
			
				 7.1
			Upfront Payment.    Licensee shall pay to Verastem a one-time, non-refundable, non-creditable upfront payment of Ten Million Dollars ($10,000,000) within [* * *] Business Days after receipt of the invoice therefor, which invoice shall be issued by Verastem on or following the Effective Date. 

			
	
			
				 7.2
			Development Milestone Payments.  Licensee shall pay to Verastem the non-refundable, non-creditable milestone payments as set forth in this Section 7.2.  Licensee shall notify Verastem in writing of the achievement by or on behalf of Licensee, its Affiliates or Sublicensees of  any and each milestone event set forth  in the table below promptly following the occurrence thereof, but in no event later than [* * *] Business Days following the occurrence thereof.  Verastem shall issue an invoice to Licensee for the amount of the milestone payment corresponding to such achieved milestone event, and Licensee shall pay to Verastem such invoiced amount within [* * *] Business Days after receipt of the invoice therefor from Verastem. 

		
			 
		

			
					
						Development Milestone Event

					
					
						Milestone Payment

				
	
					
						[* * *]

					
					
						[* * *]

				
	
					
						[* * *]

					
					
						[* * *]

				
	
					
						[* * *]

					
					
						[* * *]

				
	
					
						[* * *]

					
					
						[* * *]

				
	
					
						[* * *]

					
					
						[* * *]

				
	
					
						[* * *]

					
					
						[* * *]

				
	
					
						[* * *]

					
					
						[* * *]

				

		
			 
		

		
			[* * *]
		

		
			

		 

		

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			Each milestone payment set forth above shall be payable only once for the Licensed Products. If any milestone event occurs for the Licensed Products for the [* * *] without one or more of the prior milestone events for the [* * *] occurring for Licensed Products, then Licensee shall make the milestone payment(s) for all such prior, unpaid milestone events for the [* * *] at the same time it is required to pay Verastem for the milestone event that has occurred. 
		

			
	
			
				 7.3
			Sales Milestone Payments. Subject to the terms and conditions of this Agreement, Licensee shall pay to Verastem the following non-refundable, non-creditable one-time sales milestone payments (each, a “Sales Milestone Payment”) following [* * *] (each a “Sales Milestone Event”). Licensee shall notify Verastem in writing of the achievement of each Sales Milestone Event within [* * *] Business Days following the end of the Calendar Year in which such Sales Milestone Event is achieved, and Verastem shall promptly issue an invoice to Licensee for the amount of the corresponding Sales Milestone Payment. Licensee shall pay to Verastem such invoiced amount within [* * *] Business Days after receipt of the invoice thereof from Verastem. 

		
			 
		

			
					
						Sales Milestone Threshold

					
					
						Milestone Payment

				
	
					
						[* * *]

					
					
						[* * *]

				
	
					
						[* * *]

					
					
						[* * *]

				
	
					
						[* * *]

					
					
						[* * *]

				
	
					
						[* * *]

					
					
						[* * *]

				

		
			 
		

		
			Each Sales Milestone Payment will be payable only one-time and only upon the first achievement of the applicable Sales Milestone Event in the Territory, and no amounts would be due for subsequent or repeated achievements.  If a Sales Milestone Event is achieved prior to the achievement of the preceding Sales Milestone Event set forth in the relevant chart (i.e., if a lower-listed Sales Milestone Event is achieved before a Sales Milestone Event that is listed higher up in the relevant chart), then upon achievement of the relevant Sales Milestone Event, payments for all preceding Sales Milestone Events set forth in the relevant chart shall become due and payable.
		

			
	
			
				 7.4
			Royalty Payments to Verastem. 

			
	
			
				 (a)
			Royalty Payments and Rates.  Licensee shall, on a Licensed Product-by-Licensed Product basis during the applicable Royalty Term, make non-refundable, non-creditable royalty payments to Verastem [* * *]. 

			
	
			
				 (b)
			Royalty Termination Date.  Following expiration of the Royalty Term for a given Licensed Product in the Territory (i) no further royalties shall be payable in respect of sales of such Licensed Product in the Territory and (ii) the License granted to Licensee hereunder with respect to such Licensed Product in the Territory shall automatically become fully paid-up, 

		 

		

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	perpetual, irrevocable and royalty-free, in each case only to the extent that (A) the License with respect to such Licensed Product in the Territory has not been terminated prior to expiration of the applicable Royalty Term and (B) Licensee has paid Verastem all royalties payable with respect to such Licensed Product in the Territory throughout the applicable Royalty Term.

			
	
			
				 (c)
			Royalty Reductions

			
	
			
				 (i)
			Third Party Payments.  If Licensee (i) reasonably determines in good faith that it is required to obtain a license from a Third Party to any intellectual property right that, in the absence of such license, would be infringed by the Commercialization in the Territory of the Licensed Product, which intellectual property right (A) is not licensed or sublicensed hereunder, (B) claims the composition of matter of the Licensed Compound or Licensed Product, or the method of use of such composition of matter in the Field, and (C) is necessary (and not just useful) to Commercialize the Licensed Product (the relevant “Infringed Patent Right”), or (ii) shall be subject to a final court or other binding order or ruling that such Commercialization of the Licensed Product infringed an Infringed Patent Right requiring any payments, including a payment of a royalty to the applicable Third Party intellectual property right holder in respect of future sales of the Licensed Product in the Territory, then the amount of Licensee’s royalty payments to Verastem under Section ‎7.4‎(a) shall be reduced by [* * *] of the amount paid by Licensee to such Third Party with respect to such Infringed Patent Right in each applicable [* * *] that is reasonably and appropriately allocable to the Licensed Product in the Territory in each [* * *], subject to Section ‎7.4‎(c)‎(iii).  The royalty reductions set forth in this Section ‎7.4‎(c)‎(i) shall not apply to any amounts payable by Licensee under Section ‎2.10.    

			
	
			
				 (ii)
			Generic Entry. If, in the Territory during the Royalty Term for a Licensed Product, the sales of all Generic Products in a [* * *] exceed (i) [* * *], then the amount of Licensee’s royalty payments to Verastem under Section ‎7.4‎(a) with respect to such [* * *] shall be reduced to [* * *], and (ii) [* * *], then the amount of Licensee’s royalty payments to Verastem under Section 7.4(a) with respect to such [* * *] shall be reduced to [* * *]. 

			
	
			
				 (iii)
			Cumulative Deductions. With respect to a Licensed Product in the Territory, in no event shall a deduction or deductions under Section ‎7.4‎(c)‎(i) and Section ‎7.4‎(c)‎(ii) reduce the royalty payment made by Licensee in respect of Net Sales of such Licensed Product in the Territory in any [* * *] by more than [* * *] of the royalties otherwise payable by Licensee to Verastem under Section ‎7.4‎(a) with respect to such Licensed Product.

			
	
			
				 (d)
			Payments to Third Parties. Each Party shall be solely responsible for making all payments owed by it to Third Parties, including, with respect to Verastem, the Upstream Licensors (in accordance with the terms of the Upstream License Agreements), and neither Party shall have any obligation to make any such payments on behalf of the other Party. 

			
	
			
				 (e)
			Royalty Reports and Payments.   Within [* * *], commencing with [* * *], Licensee shall provide Verastem with a report that contains the following information for the applicable [* * *], on a Licensed Product-by-Licensed Product basis: (i) gross sales and Net Sales 

		 

		

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	(including reasonable detail for deductions from gross sales to Net Sales) on Licensed Product-by-Licensed Product basis, and (ii) the royalties payable under this Section ‎7.4 (including reasonable detail for any deductions to such royalties taken pursuant to Section ‎7.4‎(c)) for such [* * *].  Concurrent with the delivery of the applicable [* * *] report, Licensee shall, but in no event later than [* * *] Business Days following [* * *], pay in Dollars all royalties due to Verastem with respect to Net Sales by Licensee, its Affiliates and their respective Sublicensees for such [* * *]. 

			
	
			
				 (f)
			Payment Method, Currency, and Exchange Rate.  All payments to be made by Licensee to Verastem under this Agreement shall be made in Dollars by electronic funds transfer in immediately available funds to a bank account designated in writing by Verastem. For the purposes of calculating any sums due under this Agreement, Licensee shall convert any amount expressed in a foreign currency into Dollar equivalents, calculated using the applicable currency conversion rate as published in [* * *], (a) for sales, on [* * *] in which the relevant sales were made or (b) for calculations of all other payments payable under this Agreement, [* * *].  In the event that the “applicable currency conversion rate” set forth in [* * *, is discontinued or no longer available, then the Parties shall mutually agree upon an alternate currency conversion index to be used for purposes of this Section ‎7.4.

			
	
			
				 7.5
			Late Payments.  Without limiting any other rights or remedies available to Verastem hereunder, interest shall be payable by Licensee on any amounts payable to Verastem under this Agreement which are not paid by the due date for payment.  All interest shall accrue and be calculated on a daily basis (both before and after any judgment) at a rate per annum equal to [* * *] percentage points above the then current “prime rate” in effect published in [* * *] (but in no event in excess of the maximum rate permissible under applicable Law), for the period from the due date for payment until the date of actual payment. In the event that the “prime rate” set forth in [* * *], is discontinued or no longer available, then the Parties shall mutually agree upon an alternate prime rate index to be used for purposes of this Section ‎7.5. 

			
	
			
				 7.6
			Financial Records and Audits.    

			
	
			
				 (a)
			Licensee shall maintain, and shall cause its Affiliates and Sublicensees to maintain, complete and accurate records in sufficient detail to permit Verastem to confirm the accuracy of the amount of royalty payments and other amounts payable under this Agreement, in accordance with Japanese GAAP or International Financial Reporting Standards, consistently applied. Upon reasonable prior notice, such records shall be open during regular business hours for a period of [* * *] years from the creation of individual records for examination by an independent certified public accountant selected by Verastem and reasonably acceptable to Licensee for the purpose of verifying for Verastem the accuracy of the financial reports furnished by Licensee pursuant to this Agreement or of any payments made, or required to be made by Licensee, pursuant to this Agreement. Such audits shall not occur more often than [* * *]. Such accountant shall execute a suitable confidentiality agreement reasonably acceptable to Licensee prior to conducting such audit, and shall not disclose Licensee’s Confidential Information to Verastem, except to the extent such disclosure is necessary to verify the accuracy of the financial reports furnished by Licensee or the amount of payments by Licensee under this Agreement. 

		 

		

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			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

	Licensee will pay any amounts shown to be owed to Verastem but unpaid within [* * *] days after the accountant’s report, plus interest (as set forth in Section ‎7.5) from the original due date. Verastem shall bear the full cost of such audit unless such audit reveals an underpayment by Licensee of more than [* * *] of the amount actually due for the time period being audited, in which case Licensee shall [* * *]. 

			
	
			
				 (b)
			Upstream Licensor Audit Right. For the purpose of verifying amounts payable by Verastem under the Upstream License Agreements, Infinity shall have the right, no more than [* * *], at Infinity’s expense (except as set forth below), to retain an independent certified public accountant selected by Infinity, to review the records set forth in Section ‎7.6 above in the location(s) where such records are maintained by Licensee upon reasonable notice and during regular business hours.  Such representatives shall execute a suitable confidentiality agreement reasonably acceptable to Licensee prior to conducting such audit. Such representatives shall disclose to each of Infinity, Verastem and Licensee only their conclusions regarding the accuracy of payments hereunder and of records related thereto.  The right to audit any records underlying any royalty report shall extend for [* * *] years from the end of the Calendar Year in which a royalty report was delivered. 

			
	
			
				 7.7
			Taxes. 

			
	
			
				 (a)
			 Responsibility. Any taxes imposed on Licensee or with respect to Licensee’s business operations or activities hereunder, including any VAT, consumption, transfer, sales, use or other such taxes relating to the transactions contemplated herein, shall be borne by Licensee (excluding national, state or local taxes based on income to Verastem), and Licensee shall timely pay, and indemnify and hold harmless, Verastem from and against all such taxes, including any penalties or interest associated therewith. 

			
	
			
				 (b)
			Withholding Tax.  The Parties hereby acknowledge and agree that (i) under the Applicable Laws as of the Effective Date no withholding or similar Taxes will be imposed or levied on account of any payment made under this Agreement, and (ii) to the extent that there is a change in Applicable Law at any time during the Term such that withholding or other additional potential Taxes may be imposed or levied on account of the payment of any amounts owed under this Agreement, then the Parties shall use Commercially Reasonable Efforts to mitigate the amount of such Taxes that would be required to be withheld or paid, or to mitigate the effect of such change in Applicable Law.  Notwithstanding the foregoing, if Licensee is so required by Applicable Law to deduct and withhold Taxes from a payment due and payable to Verastem hereunder, Licensee shall: (a) promptly notify Verastem of such requirement; (b) make such required deduction and withholding from the corresponding payment; (c) pay to the relevant Governmental Authority (e.g., the applicable taxing authority) the full amount required to be so deducted and withheld; and (d) promptly forward to Verastem an official receipt (or certified copy) or other documentation reasonably acceptable to Verastem evidencing such payment to such Governmental Authority(ies). [* * *]. 

		
			

		 

		

			35

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

			
	
			
				 (c)
			Cooperation.  The Parties acknowledge and agree that it is mutual objective and intent to minimize, to the extent feasible under the Applicable Laws, any Taxes payable in connection with this Agreement, and shall reasonably cooperate each other in good faith in accordance with Applicable Laws to minimize any Taxes in connection with this Agreement.

			
	
			
				Article 8
			
CONFIDENTIALITY; PUBLICATION

			
	
			
				 8.1
			Duty of Confidence.  Subject to the other provisions of this ‎Article 8:

			
	
			
				 (a)
			Except to the extent expressly authorized by this Agreement, all Confidential Information of a Party (the “Disclosing Party”) shall be maintained in confidence and otherwise safeguarded, and not published or otherwise disclosed, by the other Party (the “Receiving Party”) and its Affiliates for the Term and [* * *] years thereafter;

			
	
			
				 (b)
			the Receiving Party may only use any Confidential Information of the Disclosing Party for the purposes of performing its obligations or exercising its rights under this Agreement; and

			
	
			
				 (c)
			a Receiving Party may disclose Confidential Information of the Disclosing Party to: (i) such Receiving Party’s Affiliates, Third Party Licensees (with respect to Verastem)  or Sublicensees (with respect to Licensee); and (ii) employees, directors, agents, contractors, consultants and advisors of the Receiving Party and its Affiliates, Third Party Licensees (with respect to Verastem) or Sublicensees (with respect to Licensee), in each case to the extent reasonably necessary for the purposes of, and for those matters undertaken pursuant to, this Agreement; provided that such Persons are bound by legally enforceable obligations to maintain the confidentiality of the Disclosing Party’s Confidential Information in a manner consistent with the confidentiality provisions of this Agreement; and provided further that each Party shall remain responsible for any failure by its Affiliates, Third Party Licensees (with respect to Verastem) or Sublicensees (with respect to Licensee), and its and its Affiliates’, Third Party Licensees’ (with respect to Verastem)  or Sublicensees’ (with respect to Licensee) respective employees, directors, agents, consultants, advisors, and contractors, to treat such Confidential Information as required under this Section ‎8.1 as if such Affiliates, Third Party Licensees (with respect to Verastem) or Sublicensees (with respect to Licensee) employees, directors, agents, consultants, advisors and contractors were Parties directly bound to the requirements of this Section ‎8.1.  

			
	
			
				 8.2
			Exemptions.  Information of a Disclosing Party will not be deemed to be Confidential Information of such Disclosing Party to the extent that the Receiving Party can demonstrate through competent evidence that such information:

			
	
			
				 (a)
			is known by the Receiving Party or any of its Affiliates without an obligation of confidentiality at the time of its receipt from the Disclosing Party, and not through a prior disclosure by or on behalf of the Disclosing Party, as documented by the Receiving Party’s business records;

		
			

		 

		

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			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

			
	
			
				 (b)
			is generally available to the public before its receipt from the Disclosing Party;

			
	
			
				 (c)
			became generally available to the public or otherwise part of the public domain after its disclosure by the Disclosing Party and other than through any act or omission of the Receiving Party (or any Person to whom the Receiving Party disclosed such Confidential Information) in breach of this Agreement;

			
	
			
				 (d)
			is subsequently disclosed to the Receiving Party or any of its Affiliates without obligation of confidentiality by a Third Party who may rightfully do so and is not under a conflicting obligation of confidentiality to the Disclosing Party; or

			
	
			
				 (e)
			is developed by the Receiving Party or any of its Affiliates independently and without use of or reference to any Confidential Information received from the Disclosing Party, as documented by the Receiving Party’s business records.

		
			No combination of features or disclosures shall be deemed to fall within the foregoing exclusions merely because individual features are published or available to the general public or in the rightful possession of the Receiving Party, unless the combination itself and principle of operation are published or available to the general public or in the rightful possession of the Receiving Party. 
		

			
	
			
				 8.3
			Authorized Disclosures.  Notwithstanding the obligations set forth in Sections ‎8.1 and ‎8.4, a Party may disclose the other Party’s Confidential Information (including this Agreement and the terms herein) to the extent such disclosure is reasonably necessary in the following situations:

			
	
			
				 (a)
			(i) regulatory filings and other filings with Governmental Authorities (including Regulatory Authorities), as necessary for the Development and Commercialization (and, subject to Section ‎2.2(b), Manufacturing) of the Licensed Compound or Licensed Product; or (ii) subject to Section ‎8.6, complying with Applicable Laws, including regulations promulgated by securities exchanges;  

			
	
			
				 (b)
			disclosure of this Agreement, its terms and the status and results of Development or Commercialization activities to actual or bona fide potential investors, acquirors, (sub)licensees, lenders and other financial or commercial partners solely for the purpose of evaluating or carrying out an actual or potential investment, acquisition, (sub)license, debt transaction or collaboration; provided that in each such case on the condition that such Persons are bound by written, binding obligations of confidentiality and non-use  consistent with this Agreement;

			
	
			
				 (c)
			such disclosure is required by judicial or administrative process, provided that in such event such Party shall promptly notify the other Party in writing of such required disclosure and provide the other Party an opportunity to challenge or limit the disclosure obligations. Confidential Information that is disclosed by judicial or administrative process shall 

		 

		

			37

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

	remain otherwise subject to the confidentiality and non-use provisions of this ‎Article 8, and the Party disclosing Confidential Information pursuant to Applicable Laws or court order shall (i) take all steps reasonably necessary, including seeking of confidential treatment or a protective order, to ensure the continued confidential treatment of such Confidential Information (ii) limit disclosure of such Confidential Information only to that which is required to be disclosed by the applicable Governmental Authority; 

			
	
			
				 (d)
			such disclosure is by Verastem and is required to comply with its obligations to one or more Upstream Licensors; or 

			
	
			
				 (e)
			disclosure pursuant to Sections ‎8.4 and ‎8.6.

		
			Notwithstanding the foregoing, in the event a Party is required or permitted to make a disclosure of the other Party’s Confidential Information pursuant to Section ‎8.3(a), it will, except where impracticable, give reasonable advance notice to the other Party of such disclosure and use Commercially Reasonable Efforts to secure confidential treatment of such information. In any event, each Party agrees to take all reasonable action to avoid disclosure of Confidential Information of the other Party hereunder.
		

		
			Nothing in Sections ‎8.1 or ‎8.3 shall limit either Party in any way from disclosing to any Third Party such Party’s U.S. or foreign income tax treatment and the U.S. or foreign income tax structure of the transactions relating to such Party that are based on or derived from this Agreement, as well as all materials of any kind (including opinions or other tax analyses) relating to such tax treatment or tax structure, except to the extent that nondisclosure of such matters is reasonably necessary in order to comply with applicable securities laws.
		

			
	
			
				 8.4
			Publications.   Verastem shall have the right to publicly present or publish any Clinical Trial data, non-clinical data or any associated results or conclusions generated pursuant to this Agreement (each such presentation or publication, a “Publication”), provided that such presentation or publication shall not include any Confidential Information of Licensee without Licensee’s prior written consent. Licensee shall not have the right to issue any Publication except with the prior written approval of Verastem and in accordance with Verastem's Global Strategy. If Licensee desires to publicly present or publish a Publication in accordance with the foregoing sentence, then Licensee shall provide Verastem (including the Alliance Manager and all Verastem members of the JSC) with a copy of such proposed Publication at least [* * *] days prior to the earlier of its presentation or intended submission for publication, or if Licensee has fewer than [* * *] days before submitting such proposed Publication for the reasons of authors, Licensee shall provide Verastem (including the Alliance Manager and all Verastem members of the JSC) with a copy of such proposed Publication as soon as reasonably practicable. Licensee agrees that it will not submit or present any Publication until Verastem has approved such Publication in writing. Licensee shall incorporate any reasonable written comments received from Verastem, including (i) the deletion of any Confidential Information of Verastem that Verastem identifies for deletion in Verastem’s written comments, and (ii) the deletion of any Clinical Trial data, results, conclusions or other related information which Verastem determines, in its sole discretion, to 

		 

		

			38

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

	conflict with Verastem’s Global Strategy with respect to the Licensed Product. If permitted to publish or present any Publication pursuant to this Section ‎8.4 Licensee shall provide Verastem a copy of the Publication at the time of the submission for publication or presentation. Licensee agrees to acknowledge the contributions of Verastem, and the employees of Verastem, in all Publications as scientifically appropriate.  Licensee shall require its Affiliates, Sublicensees and Subcontractors to comply with the obligations of this Section ‎8.4 as if they were Licensee, and shall be liable for their non-compliance.

			
	
			
				 8.5
			Publication and Listing of Clinical Trials.   Each Party agrees to comply, with respect to the listing of Clinical Trials or the publication of Clinical Trial results with respect to Licensed Products and to the extent applicable to its activities conducted under this Agreement, with (a) the Pharmaceutical Research and Manufacturers of America (PhRMA) Guidelines on the listing of Clinical Trials and the Publication of Clinical Trial results, and (b) any Applicable Law or applicable court order, stipulations, consent agreements and settlements entered into by such Party; provided that any listings or publications made pursuant to this Section ‎8.5 shall be considered a Publication hereunder and shall be subject to Section ‎8.4. 

			
	
			
				 8.6
			Publicity; Use of Names.

			
	
			
				 (a)
			The Parties agree that the terms and conditions of this Agreement are the Confidential Information of both Parties, subject to the special authorized disclosure provisions set forth in Section ‎8.3 and this Section ‎8.6. The Parties have agreed on a press release announcing this Agreement, which is attached hereto as Exhibit C, to be issued by the Parties on such date and time as may be agreed by the Parties. No other disclosure of the existence or the terms of this Agreement may be made by either Party or its Affiliates except as provided in Section ‎8.3 and this Section ‎8.6. Licensee shall not use the name, trademark, trade name or logo of Verastem, its Affiliates or their respective employees in any publicity, promotion, news release or disclosure relating to this Agreement or its subject matter, except as provided in this Section ‎8.6 or with the prior express written permission of Verastem, except as may be required by Applicable Laws. Licensee shall use Verastem’s corporate name in all publicity relating to this Agreement, including the initial press release and all subsequent press releases, and accompanied explanatory text such as “Licensed from Verastem, Inc.”; provided that Licensee will use Verastem’s corporate name only in such manner that the distinctiveness, reputation, and validity of any trademarks and corporate or trade names of Verastem shall not be impaired, in a manner consistent with best practices used by Licensee with respect to its other collaborators, and in a manner consistent with Verastem’s brand usage policies. Additionally, Verastem shall not use the name, trademark, trade name or logo of Licensee, its Affiliates or their respective employees in any publicity, promotion, news release or disclosure relating to this Agreement or its subject matter, except as provided in this Section 8.6 or with the prior express written permission of Licensee, except as may be required by Applicable Laws. Verastem shall use Licensee’s corporate name in all publicity relating to this Agreement, including the initial press release and all subsequent press releases, and accompanied explanatory text such as “Licensed  to Yakult Honsha Co., Ltd.”; provided that Verastem will use License’s corporate name only in such manner that the distinctiveness, reputation, and validity of 

		 

		

			39

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

	any trademarks and corporate or trade names of Licensee shall not be impaired, in a manner consistent with best practices used by Verastem with respect to its other collaborators, and in a manner consistent with Licensee’s brand usage policies.     

			
	
			
				 (b)
			Notwithstanding any provision of this Agreement to the contrary, Verastem has the right to publicly disclose (i) the achievement of milestones under this Agreement; (ii) the amount of related milestone payments if and to the extent required by Applicable Laws (including the rules and regulations promulgated by any applicable securities  exchange, the U.S. Securities and Exchange Commission, or any foreign counterparts thereto); and (iii) the commencement, completion, material data and key results of Clinical Trials conducted by Verastem under this Agreement. After a Publication has been made available to the public, each Party may post such Publication or a link to it on its corporate web site without the prior written consent of the other Party. 

			
	
			
				 (c)
			A Party may disclose this Agreement in securities filings with the Securities and Exchange Commission (the “SEC”) or equivalent foreign agency to the extent required by Applicable Laws. In such event, the Party seeking such disclosure shall prepare a draft confidential treatment request and proposed redacted version of this Agreement to request confidential treatment for this Agreement, and the other Party agrees to promptly (and in any event, no more than [* * *] Business Days after receipt of such confidential treatment request and proposed redactions) give its input in a reasonable manner in order to allow the Party seeking disclosure to file its request within the time lines prescribed by Applicable Laws. The Party seeking such disclosure shall reasonably consider any comments thereto provided by the other Party within such [* * *] Business-Day period. 

			
	
			
				 (d)
			Each Party acknowledges that the other Party may be legally required to make public disclosures (including in filings with Governmental Authorities) of certain terms of or material developments or material information generated under this Agreement and agrees that each Party may make such disclosures as required by Applicable Laws, provided that the Party seeking such disclosure (i) receives advice from counsel that it is legally required to make such public disclosure and (ii) if practicable and permitted by Applicable Laws, first provides the other Party a copy of the proposed disclosure, and reasonably considers any comments thereto provided by the other Party within [* * *] Business Days after the receipt of such proposed disclosure. 

			
	
			
				 (e)
			Other than the press release set forth in Exhibit C and the public disclosures permitted by Section ‎8.6(b), the Parties agree that the portions of any other news release or other public announcement relating to this Agreement or the performance hereunder that would disclose information other than that already in the public domain, shall first be reviewed and approved by both Parties (with such approval not to be unreasonably withheld or delayed), except as required by Applicable Laws. 

			
	
			
				 (f)
			The Parties agree that after a disclosure pursuant to Section ‎8.6(d) or issuance of a press release (including the initial press release) or other public announcement pursuant to Section ‎8.6(a) or Section ‎8.6‎(b) that has been reviewed and approved by the other 

		 

		

			40

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

	Party, the disclosing Party may make subsequent public disclosures reiterating such information without having to obtain the other Party’s prior consent and approval.

			
	
			
				 (g)
			Each Party shall have the right to use the other Party’s name and logo in presentations, its website, collateral materials and corporate overviews to describe the collaboration relationship, as well as in taglines of press releases issued pursuant to this Section ‎8.6;  provided that each Party will use the other Party’s corporate name only in such manner that the distinctiveness, reputation, and validity of any trademarks and corporate or trade names of the other Party shall not be impaired,  in a manner consistent with best practices used by the Party for its other collaborators, and in a manner consistent with the other Party’s brand usage policies.

			
	
			
				Article 9
			
REPRESENTATIONS, WARRANTIES, AND COVENANTS

			
	
			
				 9.1
			Representations, Warranties of Each Party.  Each Party represents and warrants to the other Party as of the Effective Date that: 

			
	
			
				 (a)
			it has the full right, power and authority to enter into this Agreement and to perform its obligations hereunder; 

			
	
			
				 (b)
			this Agreement has been duly executed by it and is legally binding upon it, enforceable in accordance with its terms, and does not conflict with any agreement, instrument or understanding, oral or written, to which it is a party or by which it may be bound, nor violate any material Applicable Laws or regulation of any court, governmental body or administrative or other agency having jurisdiction over it; and 

			
	
			
				 (c)
			there are no legal claims, judgments or settlements against or owed by it or any of its Affiliates, or pending or, to its present knowledge, threatened, legal claims or litigation, in each case, relating to antitrust, anti-competition, anti-bribery or corruption violations.

			
	
			
				 9.2
			Representations and Warranties of Verastem.  Verastem represents and warrants to Licensee that as of the Effective Date: 

			
	
			
				 (a)
			subject to Section ‎2.5, it has the right under the Verastem IP to grant the License to Licensee, and it has not granted any license or other right under the Verastem IP that is inconsistent with the License; 

			
	
			
				 (b)
			it has not received any written notice from any Third Party asserting or alleging that the Development of the Licensed Compound or Licensed Product prior to the Effective Date infringed or misappropriated the intellectual property rights of such Third Party;

			
	
			
				 (c)
			there is no pending or, to Verastem’s knowledge, no threatened (in writing), adverse actions, suits or proceedings against Verastem involving the Verastem IP or the Licensed Compound or Licensed Product; and

		
			

		 

		

			41

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

			
	
			
				 (d)
			to Verastem’s knowledge, there are no material safety issues with respect to the Licensed Compound or Licensed Product in the Field. 

			
	
			
				 9.3
			[* * *]. 

			
	
			
				 9.4
			Representations and Warranties of Licensee.    Licensee represents and warrants to Verastem that as of the Effective Date:

			
	
			
				 (a)
			Licensee and its Affiliates are not, and has not been, debarred or disqualified by any Regulatory Authority;

			
	
			
				 (b)
			Licensee has sufficient financial wherewithal to (i) perform all of its obligations pursuant to this Agreement, and (ii) meet all of its obligations that come due in the ordinary course of business; 

			
	
			
				 (c)
			Licensee has, or can readily obtain, sufficient technical, clinical, and regulatory expertise to perform all of its obligations pursuant to this Agreement, including its obligations relating to the Exploitation of Licensed Products in the Field in the Territory; and

			
	
			
				 (d)
			Licensee has, and has caused its Affiliates to have, implemented and maintained inventor reward and remuneration policies or agreements compliant with Applicable Law sufficient to supersede any inventor claim that such inventor is entitled to any reward or remuneration (outside of the reward or remuneration set in such policies or agreement) for any Inventions made solely by Licensee.

			
	
			
				 9.5
			Covenant of Verastem. Verastem covenants to Licensee that:

			
	
			
				 (a)
			in the course of performing its obligations and exercising its rights under this Agreement, Verastem shall comply with all Applicable Laws, including, as applicable, cGMP, GCP and GLP standards, and shall not knowingly employ or engage any Person who has been debarred by any Regulatory Authority, or, to Verastem’s knowledge, is the subject of debarment proceedings by a Regulatory Authority;

			
	
			
				 (b)
			Verastem will conduct the Global Clinical Trial in the Territory in strict adherence with the study design set forth in the protocol for such Global Clinical Trial; and

			
	
			
				 (c)
			Verastem will only engage Clinical Trial sites that conduct all Clinical Trials in compliance with all Applicable Laws in the relevant jurisdiction, including GCP and the ICH Guidelines as applicable. 

			
	
			
				 9.6
			Covenants of Licensee.  Licensee covenants to Verastem that:

			
	
			
				 (a)
			in the course of performing its obligations and exercising its rights under this Agreement, Licensee shall comply with all Applicable Laws, including, as applicable, cGMP, GCP, and GLP standards, and shall not knowingly employ or engage any Person who has been 

		 

		

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			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

	debarred by any Regulatory Authority, or, to Licensee’s knowledge, is the subject of debarment proceedings by a Regulatory Authority; 

			
	
			
				 (b)
			Licensee will conduct its Clinical Trials under the Development Plan in strict adherence with the study design set forth in the protocol for such Clinical Trial, as may be amended from time to time, and will comply with the statistical analysis plan implemented in connection therewith; and

			
	
			
				 (c)
			Licensee will only engage Clinical Trial sites that conduct all Clinical Trials in compliance with Applicable Laws in the relevant jurisdiction, including GCP and the ICH Guidelines as applicable. 

			
	
			
				 9.7
			Compliance with Anti-Corruption Laws. 

			
	
			
				 (a)
			Notwithstanding anything to the contrary in this Agreement, Licensee agrees that:

			
	
			
				 (i)
			it shall not, in the performance of this Agreement, perform any actions, or permit its Affiliates, Sublicensees or Subcontractors to perform any actions, that are prohibited by local and other anti-corruption laws (including the provisions of the United States Foreign Corrupt Practices Act, collectively “Anti-Corruption Laws”) that may be applicable to one or both Parties;

			
	
			
				 (ii)
			it shall not, in the performance of this Agreement, directly or indirectly, make any payment, or offer or transfer anything of value, or agree or promise to make any payment or offer or transfer anything of value, to a government official or government employee, to any political party or any candidate for political office or to any other Third Party with the purpose of influencing decisions related to either Party or its business in a manner that would violate Anti-Corruption Laws; 

			
	
			
				 (b)
			Licensee represents and warrants that, to its knowledge, neither Licensee nor any of its Affiliates, or its or their respective directors, officers, employees, distributors, agents, representatives, sales intermediaries or other Third Parties (including any Subcontractors) acting on behalf of Licensee or any of its Affiliates:

			
	
			
				 (i)
			has taken any action in violation of any applicable Anti-Corruption Laws; or

			
	
			
				 (ii)
			has corruptly offered, paid, given, promised to pay or give, or authorized the payment or gift of anything of value, directly or indirectly, to any Public Official (as defined in Section ‎9.7(d)), for the purposes of:

			
	
			
				 (1)
			influencing any act or decision of any Public Official in his or her official capacity;

		
			

		 

		

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			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

			
	
			
				 (2)
			inducing such Public Official to do or omit to do any act in violation of his or her lawful duty;

			
	
			
				 (3)
			securing any improper advantage; or

			
	
			
				 (4)
			inducing such Public Official to use his or her influence with a government, Governmental Authority, or commercial enterprise owned or controlled by any government (including state-owned or controlled veterinary, laboratory or medical facilities) in obtaining or retaining any business whatsoever.

			
	
			
				 (c)
			Licensee further represents and warrants that, as of the Effective Date, none of the officers, directors or employees of Licensee or of any of its Affiliates or agents acting on behalf of Licensee or any of its Affiliates, in each case that are employed or reside outside the United States, is a Public Official.

			
	
			
				 (d)
			For purposes of this Section ‎9.7, “Public Official” means (i) any officer, employee or representative of any regional, federal, state, provincial, county or municipal government or government department, agency or other division; (ii) any officer, employee or representative of any commercial enterprise that is owned or controlled by a government, including any state-owned or controlled veterinary, laboratory or medical facility; (iii) any officer, employee or representative of any public international organization, such as the African Union, the International Monetary Fund, the United Nations or the World Bank; and (iv) any person acting in an official capacity for any government or Governmental Authority, enterprise or organization identified above.

			
	
			
				 9.8
			NO OTHER WARRANTIES.  EXCEPT AS EXPRESSLY STATED IN THIS ‎ARTICLE 9, (A) NO REPRESENTATION, CONDITION OR WARRANTY WHATSOEVER IS MADE OR GIVEN BY OR ON BEHALF OF VERASTEM OR LICENSEE; AND (B) ALL OTHER CONDITIONS AND WARRANTIES WHETHER ARISING BY OPERATION OF LAW OR OTHERWISE ARE EXPRESSLY EXCLUDED (INCLUDING TO THE MAXIMUM EXTENT PERMITTED UNDER APPLICABLE LAW, ANY WARRANTY THAT THE VERASTEM IP, LICENSED COMPOUND OR ANY LICENSE PRODUCT IS COMPLETE OR CAPABLE OF ACHIEVING A SPECIFIED GOAL OR VERASTEM OBLIGATION TO BE RESPONSIBLE FOR ANY INFRINGEMENT OF THIRD PARTY INTELLECTUAL PROPERTY RIGHTS), INCLUDING ANY CONDITIONS AND WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT.

			
	
			
				Article 10
			
INDEMNIFICATION

			
	
			
				 10.1
			By Licensee.  Licensee shall indemnify and hold harmless Verastem, its Affiliates, and their directors, officers, employees and agents (individually and collectively, the “Verastem Indemnitee(s)”) from and against all losses, liabilities, damages and expenses (including 

		 

		

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	reasonable attorneys’ fees and costs) incurred in connection with any claims, demands, actions or other proceedings by any Third Party (individually and collectively, “Losses”) to the extent arising from (a) the Exploitation of the Licensed Compound or Licensed Products by or on behalf of Licensee or any of its Affiliates, Sublicensees or Subcontractors, including product liability claims (other than product liability claims resulting from Verastem’s breach of its obligations under the Supply Agreement), (b) the gross negligence or willful misconduct of Licensee or its Affiliates, Sublicensees or Subcontractors, (c) Licensee’s breach of any of its representations or warranties made in or pursuant to this Agreement or any Licensee covenants or obligations set forth in or entered into pursuant to this Agreement, or (d) failure of Licensee or its Affiliates, Sublicensees or Subcontractors to abide by any Applicable Laws, in each case of clauses (a) through (d) above, except to the extent such Losses arise out of a Verastem Indemnitee’s gross negligence or willful misconduct or material failure to abide by any Applicable Laws.

			
	
			
				 10.2
			By Verastem.  Verastem shall indemnify and hold harmless Licensee, its Affiliates, and their directors, officers, employees and agents (individually and collectively, the “Licensee Indemnitee(s)”) from and against all Losses to the extent arising from (a) the Exploitation of the Licensed Compound or Licensed Products by or on behalf of Verastem or any of its Affiliates, Third Party Licensees or Subcontractors (other than the Manufacture or Commercialization of Licensed Compound or Licensed Products supplied to Licensee or its designees under the Supply Agreement), (b) the gross negligence or willful misconduct of Verastem or its Affiliates, Third Party Licensees or Subcontractors, (c) Verastem’s breach of any of its representations or warranties made in or pursuant to this Agreement or any Verastem covenants or obligations set forth in or entered into pursuant to this Agreement, or (d) failure of Verastem or its Affiliates, Third Party Licensees or Subcontractors to abide by any Applicable Laws, in each case of clauses (a) through (d) above, except to the extent such Losses arise out of any of a Licensee Indemnitee’s gross negligence or willful misconduct or material failure to abide by any Applicable Laws. 

			
	
			
				 10.3
			Indemnification Procedure.  If either Party is seeking indemnification under Sections ‎10.1 or ‎10.2 (the “Indemnified Party”), it shall inform in writing the other Party (the “Indemnifying Party”) of the claim giving rise to the obligation to indemnify pursuant to such Section within [* * *] Business Days after receiving written notice of the claim (it being understood and agreed, however, that the failure or delay by an Indemnified Party to give such notice of a claim shall not affect the indemnification provided hereunder except to the extent the Indemnifying Party shall have been actually and materially prejudiced as a result of such failure or delay to give notice). The Indemnifying Party shall have the right to assume the defense of any such claim for which it is obligated to indemnify the Indemnified Party. The Indemnified Party shall cooperate with the Indemnifying Party and the Indemnifying Party’s insurer as the Indemnifying Party may reasonably request, and at the Indemnifying Party’s cost and expense. The Indemnified Party shall have the right to participate, at its own expense and with counsel of its choice, in the defense of any claim that has been assumed by the Indemnifying Party. Neither Party shall have the obligation to indemnify the other Party in connection with any settlement made without the Indemnifying Party’s written consent, which consent shall not be unreasonably withheld, conditioned or delayed. If the Parties cannot agree as to the application of Sections ‎10.1 or ‎10.2 as to any claim, pending 

		 

		

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	resolution of the dispute pursuant to ‎Article 13, the Parties may conduct separate defenses of such claims, with each Party retaining the right to claim indemnification from the other Party in accordance with Sections ‎10.1 or ‎10.2 upon resolution of the underlying claim. 

			
	
			
				 10.4
			Mitigation of Loss.  Each Indemnified Party shall take and shall procure that its Affiliates take all such reasonable steps and action as are reasonably necessary or as the Indemnifying Party may reasonably require in order to mitigate any claims (or potential losses or damages) under this ‎Article 10. Nothing in this Agreement shall or shall be deemed to relieve any Party of any common law or other duty to mitigate any losses incurred by it.

			
	
			
				 10.5
			Limitation of Liability.  NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL, PUNITIVE, OR INDIRECT DAMAGES ARISING FROM OR RELATING TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH DAMAGES. NOTWITHSTANDING THE FOREGOING, NOTHING IN THIS SECTION ‎10.5 IS INTENDED TO OR SHALL LIMIT OR RESTRICT THE INDEMNIFICATION RIGHTS OR OBLIGATIONS OF ANY PARTY UNDER [* * *].

			
	
			
				 10.6
			Insurance.  Each Party shall procure and maintain insurance, including product liability insurance, with respect to its activities hereunder [* * *]. Licensee shall provide Verastem with evidence of such insurance upon request and shall provide Verastem with written notice at least [* * *] days prior to the cancellation, non-renewal or material changes in such insurance. Such insurance shall not be construed to create a limit of Each Party’s liability with respect to its indemnification obligations under this ‎Article 10.

			
	
			
				Article 11
			
INTELLECTUAL PROPERTY

			
	
			
				 11.1
			Ownership. 

			
	
			
				 (a)
			Verastem. As between the Parties, Verastem shall retain ownership of (i) all Verastem IP, (ii) all Inventions made solely by employees or representatives of Verastem, and (iii) all Inventions made jointly by the employees or representatives of both Parties. Further, Verastem shall retain ownership of all Inventions generated in connection with any Global Clinical Trial. For clarity, all Inventions under the foregoing subsections (ii) and (iii) of this Section ‎11.1‎(a) are part of the Verastem IP and licensed to Licensee in the Field in the Territory under Section ‎2.1.  

			
	
			
				 (b)
			Licensee. As between the Parties, Licensee shall retain ownership of (i) all Licensee IP, and (ii) all Inventions made solely by the employees or representatives of Licensee. For clarity, all Inventions under the foregoing subsection (ii) of this Section ‎11.1‎(b) are part of the Licensee IP and licensed to Verastem in the Field outside of the Territory under Section ‎2.8.

			
	
			
				 (c)
			 Assignment. Licensee shall and hereby does assign to Verastem all right, title and interest in and to any Inventions developed jointly by the Parties pursuant to Section 

		 

		

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	‎11.1‎(a)(iii) above. Licensee shall take (and cause its Affiliates, Sublicensees, and Subcontractors, including their respective employees, agents, and contractors to take) such further actions reasonably requested by Verastem to evidence such assignment and to assist Verastem in obtaining patent and other intellectual property rights protection for such Inventions. Licensee shall obligate its Affiliates, Sublicensees and Subcontractors to assign all such jointly-invented Inventions to Licensee (or directly to Verastem) so that Licensee can comply with its obligations under this Section ‎11.1‎(c), and Licensee shall promptly obtain such assignment. 

			
	
			
				 11.2
			Patent Prosecution. 

			
	
			
				 (a)
			Verastem Patents. 

			
	
			
				 (i)
			As between the Parties, Verastem shall have the right to control the Patent Prosecution of all Verastem Patents (including Patent Rights within the Inventions that are solely owned by Verastem pursuant to Section ‎11.1(a)) in the Territory, [* * *].   Verastem shall have the sole right to control the Patent Prosecution of all of Verastem’s patents outside the Territory, at Verastem’s own cost and expense.

			
	
			
				 (ii)
			Verastem shall consult with Licensee and keep Licensee reasonably informed of the Patent Prosecution of the Verastem Patents in the Territory and shall provide Licensee with copies of all material correspondence received from any patent authority in the Territory in connection therewith. In addition, Verastem shall provide Licensee with drafts of all proposed material filings and correspondence to any patent authority in the Territory in connection with the Patent Prosecution of the Verastem Patents for Licensee’s review and comment prior to the submission of such proposed filings and correspondence. 

			
	
			
				 (iii)
			[* * *].

			
	
			
				 (b)
			Licensee Patents.  As between the Parties, Licensee shall have the sole right to control the Patent Prosecution of all Licensee Patents throughout the world, at Licensee’s own cost and expense.

			
	
			
				 (c)
			Cooperation.  Each Party shall provide the other Party all reasonable assistance and cooperation in the Patent Prosecution efforts under this Section ‎11.2, including providing any necessary powers of attorney and executing any other required documents or instruments for such prosecution.

			
	
			
				 11.3
			Patent Enforcement. 

			
	
			
				 (a)
			Notice.  Each Party shall notify the other within [* * *] Business Days of becoming aware of any alleged or threatened infringement by a Third Party of (i) any of the Verastem Patents in the Territory or (ii) any of the Licensee Patents in the Territory, which infringement of such Licensee Patents adversely affects or is expected to adversely affect any Licensed Product in the Territory, and, in each case, any related declaratory judgment or equivalent 

		 

		

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	action alleging the invalidity, unenforceability or non-infringement of any Verastem Patents and Licensee Patents (collectively “Product Infringement”). For clarity, Product Infringement excludes any adversarial Patent Prosecution proceedings.

			
	
			
				 (b)
			Enforcement Right.   

			
	
			
				 (i)
			Verastem shall have the first right, in its sole discretion, to bring and control any legal action to enforce Verastem Patents against any Product Infringement in the Territory at its own expense as it determines appropriate, provided that Verastem notifies Licensee of any such legal action reasonably in advance, and reasonably considers Licensee’s comments with respect thereto. In the event Verastem is unable or unwilling to bring or control such legal action against such Product Infringement in the Territory within [* * *] after the date of notice of such Patent Infringement, Licensee, subject to any applicable restrictions under the Upstream License Agreements, shall have the right, but not the obligation to, take any legal action, at Licensee’s own cost and expense, as Licensee deems appropriate to prevent or enjoin such Product Infringement in the Territory. 

			
	
			
				 (ii)
			Licensee shall have the first right to bring and control any legal action to enforce Licensee Patents against any Product Infringement in the Territory at its own expense as it reasonably determines appropriate, and in the event Licensee is unable or unwilling to bring or control the legal action against such Product Infringement in the Territory within [* * *] after the date of notice of such Patent Infringement, Verastem may, but not be obligated to, take any legal action, at Verastem’s own expense, as Verastem deems appropriate to prevent or enjoin such Product Infringement in the Territory.

			
	
			
				 (c)
			Cooperation.  At the request of the Party bringing an action related to Product Infringement, the other Party shall provide reasonable assistance in connection therewith, including by executing reasonably appropriate documents, cooperating in discovery and joining as a party to the action if required by Applicable Law to pursue such action, at each such Party’s sole cost and expense. 

			
	
			
				 (d)
			Recoveries.  Any recoveries resulting from enforcement action relating to a claim of Product Infringement in the Territory shall be first applied against payment of each Party’s costs and expenses in connection therewith. [* * *].  

			
	
			
				 11.4
			Infringement of Third Party Rights.  

			
	
			
				 (a)
			Notice.  If any Licensed Compound or Licensed Product used or sold by Licensee, its Affiliates or Sublicensees in the Territory becomes the subject of a Third Party’s claim or assertion of infringement of a Patent Right or other rights in the Territory that are owned or controlled by such Third Party, then the Party becoming aware of such claim or assertion shall promptly notify the other Party within [* * *] days after receipt of such claim or assertion and such notice shall include a copy of any summons or complaint (or the equivalent thereof) received regarding the foregoing. Thereafter, the Parties shall promptly meet to consider the claim or 

		 

		

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	assertion and the appropriate course of action and may, if appropriate, agree on and enter into a “common interest agreement” wherein the Parties agree to their shared, mutual interest in the outcome of such potential dispute. The Parties shall assert and not waive the joint defense privilege with respect to any communications between the Parties in connection with the defense of such claim or assertion. 

			
	
			
				 (b)
			Defense.  Licensee shall be solely responsible for the defense of any such infringement claims brought against Licensee, at Licensee’s cost and expense and Verastem shall provide reasonable assistance to Licensee at Verastem’s cost and expense; provided that Licensee shall not agree to any settlement, consent to judgment or other voluntary final disposition in connection with such defense action without Verastem’s consent (such consent not to be unreasonably withheld, conditioned or delayed) if such settlement, consent to judgment or other voluntary final disposition would (1) result in the admission of any liability or fault on behalf of Verastem, (2) result in or impose any payment obligations upon Verastem, or (3) subject Verastem to an injunction or otherwise limit Verastem’s ability to take any actions or refrain from taking any actions under this Agreement or with respect to any Licensed Compound or Licensed Product. Licensee shall keep Verastem informed on the status of such defense action, and Verastem shall, at its own expense, (i) provide reasonable support to Licensee upon Licensee’s reasonable request; and (ii) have the right, but not the obligation, to participate or be separately represented in such defense action at its sole option.

			
	
			
				 11.5
			Patents Licensed From Third Parties.  Notwithstanding any provision of this Agreement to the contrary, each Party’s rights under this ‎Article 11 with respect to the prosecution and enforcement of any Verastem Patent that is licensed from an Upstream Licensor to Verastem shall be subject to the prosecution and enforcement rights of such Upstream Licensor under the corresponding Upstream License Agreement. 

			
	
			
				 11.6
			Product Trademarks.    

			
	
			
				 (a)
			Ownership of the Licensed Trademarks.  Licensee acknowledges that, as between the Parties, Verastem is the sole and exclusive owner of all rights, title, and interests in and to the Licensed Trademarks, including all goodwill associated therewith, throughout the world.  Licensee shall not, and shall cause its Affiliates and Sublicensees not to, register or seek to register any trademark that is substantially the same as or deceptively or confusingly similar to any Licensed Trademark.

			
	
			
				 (b)
			Product Marks. Subject to Section ‎11.6(a), Licensee shall have the right to brand Licensed Products in the Territory using trademarks, logos, and trade names it determines appropriate for such Licensed Products, including the Licensed Trademarks (the “Product Marks”); provided,  however, that Licensee shall (i) provide Verastem with a reasonable opportunity to review and provide comments on each proposed Product Mark and use thereof, (ii) give due consideration to Verastem’s comments before selecting any Product Mark or using any Product Mark in commerce, and (iii) not use any trademark Controlled by Verastem or its Affiliates (including Verastem’s corporate name) without Verastem’s prior written consent. Subject to 

		 

		

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	Section ‎11.6(a), Licensee shall own all rights in the Product Marks (other than the Licensed Trademarks) in the Territory and shall register and maintain such Product Marks in the Territory that it determines reasonably necessary, at Licensee’s cost and expense.

			
	
			
				 (c)
			Trademark Usage Guidelines and Requirements for the Licensed Trademark. 

			
	
			
				 (i)
			Licensee shall, and shall cause its Affiliates, Sublicensees and Subcontractors to comply with all quality standards, quality control requirements, and style or usage guidelines (collectively, the “Usage Guidelines”) provided by Verastem to Licensee with respect to use of the Licensed Trademarks stipulated in this Section 11.6(c)(i). Licensee acknowledges and agrees that no ownership rights are vested or created by the trademark license granted pursuant to Section ‎2.1, and that all goodwill developed by virtue of the use of the Licensed Trademarks in accordance with this Section ‎11.6(c)(i) inures to the benefit of Verastem. Upon Verastem’s request, Licensee shall submit to Verastem representative samples of materials bearing the License Trademarks for Verastem’s review. Licensee shall not change, modify, alter, create, combine with other trademarks or use the Licensed Trademarks in any manner that would reasonably be expected to result in, or does result in (i) a material adverse impact on such Licensed Trademarks or the goodwill associated therewith in any country, or (ii) a material negative reputational impact on Verastem’s or any of its Affiliates’ business in any country, or (iii) the creation of material adverse publicity in any country for Verastem or any of its Affiliates. Licensee shall, and shall cause its Affiliates, Sublicensees and Subcontractors to, use the Licensed Trademarks in accordance with (A) sound trademark usage principles, (B) all Applicable Laws, and (C) all Usage Guidelines. Upon receipt by Licensee of any notice from Verastem that Licensee or its Affiliates, Sublicensees or Subcontractors have failed to comply with any of the terms or conditions of this Section ‎11.6, Licensee shall, and shall cause its Affiliates, Sublicensees and Subcontractors to, immediately remedy such failure. 

			
	
			
				 (ii)
			Licensee shall execute any documents required in the reasonable opinion of Verastem to be entered as a “registered user” or recorded licensee of Verastem’s Licensed Trademarks or to be removed as registered user or licensee thereof. 

			
	
			
				 (iii)
			Licensee agrees to indemnify and to hold Verastem harmless in the event that Verastem incurs liability as a result of Licensee’s use of the Licensed Trademarks in the Territory, unless such liability is due to the fault of Verastem.

			
	
			
				 11.7
			Patent Marking.  Licensee shall mark all Licensed Products in accordance with the applicable patent marking laws, and shall require all of its Affiliates and Sublicensees to do the same. To the extent permitted by Applicable Laws and deemed to be standard in the pharmaceutical industry in the Territory, Licensee shall indicate on the product packaging, advertisement and promotional materials that such Licensed Product is in-licensed from Verastem.

		
			

		 

		

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				Article 12
			
TERMS AND TERMINATION

			
	
			
				 12.1
			Term.    This Agreement shall be effective as of the Effective Date, and shall continue unless terminated earlier in accordance with this Article 12, until expiration of the last Royalty Term for the last Licensed Product in the Territory (the “Term”). 

			
	
			
				 12.2
			Termination

			
	
			
				 (a)
			Termination by Licensee for Convenience.   At any time, Licensee may terminate this Agreement by providing written notice of termination to Verastem, which notice includes an effective date of termination at least one hundred and eighty (180) days after the date of the notice. 

			
	
			
				 (b)
			Termination for Material Breach.    

			
	
			
				 (i)
			If either Party believes in good faith that the other is in material breach of its obligations hereunder, then the non-breaching Party may deliver written notice of such breach to the other Party, and the allegedly breaching Party shall have [* * *] Business Days from receipt of such notice to dispute the validity of such breach. For all breaches of this Agreement, the allegedly breaching Party shall have sixty (60) days [* * *] from the receipt of the initial notice to cure such breach. If the Party receiving notice of breach fails to cure the breach within such sixty (60) [* * *] day period, then the non-breaching Party may terminate this Agreement in its entirety effective on written notice of termination to the other Party. Notwithstanding the foregoing, (a) if such material breach (other than a payment breach), by its nature, is curable, but is not reasonably curable within the sixty (60) day, then such period shall be extended if the breaching Party provides a written plan for curing such breach to the non-breaching Party and uses Commercially Reasonable Efforts to cure such breach in accordance with such written plan; provided, that no such extension shall exceed [* * *] days without the consent of the non-breaching Party.

			
	
			
				 (ii)
			Without limiting the provisions of Section ‎12.2‎(b)(i) and subject to the provisions of this Section ‎12.2‎(b)‎(ii), Verastem shall have the right to terminate this Agreement in its entirety if Licensee is in material breach of its obligations under Section ‎2.11,  Section ‎4.1,  Section ‎5.1(a),  Section 6.2 or Exhibit D; provided, however, this Agreement shall not so terminate unless (i) Verastem provides Licensee with written notice of Verastem’s intent to terminate, stating the reasons and justification for such termination and recommending steps which Verastem believes Licensee should take to cure such alleged breach, and (ii) Licensee, or its Affiliates or Sublicensee, has not (A) during the [* * *] day period immediately following such notice, provided Verastem with a plan for curing such breach and (B) during the sixty (60) day period immediately following such notice carried out such plan and cured such  breach.    

			
	
			
				 (c)
			Termination for Patent Challenge.  [* * *] Verastem may immediately terminate this Agreement in its entirety if Licensee or its Affiliates or Sublicensees, individually 

		 

		

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	or in association with any other Person, commences a legal action challenging the validity, enforceability or scope of any Verastem Patent that is or was included in the License at any time during the Term anywhere in the world. 

			
	
			
				 (d)
			Termination for Insolvency.  Each Party shall have the right to terminate this Agreement upon delivery of written notice to the other Party in the event that (i) such other Party files in any court or agency pursuant to any statute or regulation of any jurisdiction a petition in bankruptcy or insolvency or for reorganization or similar arrangement for the benefit of creditors or for the appointment of a receiver or trustee of such other Party or its assets, (ii) such other Party is served with an involuntary petition against it in any insolvency proceeding and such involuntary petition has not been stayed or dismissed within [* * *] days of its filing, or (iii) such other Party makes an assignment of substantially all of its assets for the benefit of its creditors. 

			
	
			
				 (e)
			Full Force and Effect During Notice Period.  This Agreement shall remain in full force and effect until the expiration of the applicable termination notice period. For clarity, if any milestone event is achieved during the termination notice period, then the corresponding milestone payment is accrued and Licensee shall remain responsible for the payment of such milestone payment even if the due date of such milestone payment may come after the effective date of the termination.

			
	
			
				 12.3
			Effect of Termination.    Upon the termination of this Agreement, the following provisions shall apply (except with respect to a termination by Licensee pursuant to Section ‎12.2(d), in which case only Section ‎12.3‎(a) below shall apply): 

			
	
			
				 (a)
			License.  The License and all other rights granted by Verastem to Licensee under this Agreement shall terminate and all sublicenses granted by Licensee shall also terminate except as otherwise expressly set forth herein; provided that, in the event of a termination by Licensee pursuant to Section ‎12.2(d), the License, and Licensee’s obligation to pay Verastem all amounts payable thereunder shall survive subject to the provisions of Section 12.4. 

			
	
			
				 (b)
			Regulatory Approval. Licensee shall assign to Verastem or a Third Party designated by Verastem all Regulatory Approvals for the Licensed Products in the Territory, at Licensee’s cost and expense. In addition, upon Verastem’s written request, Licensee shall, at its cost and expense, provide to Verastem copies of all tangible Development Data and Regulatory Documents Controlled by Licensee. The Parties shall discuss and establish appropriate arrangements with respect to safety data exchange, provided that Verastem will assume all safety and safety database activities no later than [* * *] after the termination hereof. 

			
	
			
				 (c)
			Product Marks.  Except with respect to the Licensed Trademarks, which, for the avoidance of doubt, shall remain solely owned by Verastem during and following the Term, Licensee shall transfer and assign, and shall ensure that its Affiliates and Sublicensees transfer and assign, to Verastem, at no cost to Verastem, all Product Marks relating to any Licensed Product and any applications therefor (excluding any such marks that include, in whole or part, any corporate name or logos of Licensee or its Affiliates or Sublicensees). Verastem and its Affiliates 

		 

		

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	and licensees shall have the right to use other identifiers specific to any Licensed Product (e.g., Licensee compound identifiers). Licensee shall also transfer to Verastem any in-process applications for trademarks for any Licensed Product.

			
	
			
				 (d)
			Inventory.  At Verastem’s election and request, Licensee shall transfer to Verastem or a Third Party designated by Verastem some or all inventory of the Licensed Compound and the Licensed Products [* * *] then in the possession or control of Licensee, its Affiliates or Sublicensees; provided that Verastem shall [* * *]. 

			
	
			
				 (e)
			Wind Down and Transition.  Licensee shall be responsible, at its own cost and expense, for the wind-down of Licensee’s, its Affiliates’ and its Sublicensees’ Development and Commercialization activities for the Licensed Compound and Licensed Products. Licensee shall, and shall cause its Affiliates and Sublicensees to, reasonably cooperate with Verastem to facilitate orderly transition of the Development and Commercialization of the Licensed Compound and Licensed Products to Verastem or its designee, including (i) assigning or amending as appropriate, upon request of Verastem, any agreements or arrangements with Third Party vendors (including distributors) to Develop, promote, distribute, sell or otherwise Commercialize the Licensed Compound or Licensed Products or, to the extent any such Third Party agreement or arrangement is not assignable to Verastem, reasonably cooperating with Verastem to arrange to continue to provide such services for a reasonable time after termination; and (ii) to the extent that Licensee or its Affiliate is performing any activities described above in (i), reasonably cooperating with Verastem to transfer such activities to Verastem or its designee and continuing to perform such activities on Verastem’s behalf for a reasonable time after termination until such transfer is completed.

			
	
			
				 (f)
			Ongoing Clinical Trial.  If, at the time of such termination, Licensee or its Affiliates are conducting any Clinical Trials, then, on a Clinical Trial-by-Clinical Trial basis, and in Verastem’s sole discretion: 

			
	
			
				 (i)
			If Verastem elects to have such Clinical Trial transferred to Verastem, then Licensee shall fully cooperate, and shall ensure that its Affiliates fully cooperate, with Verastem to transfer the conduct of such Clinical Trial to Verastem or its designees effective as of [* * *] after the termination effective date, and Verastem shall assume responsibility for the conduct of such transferred Clinical Trial after the effective date of such transfer, provided that Licensee shall bear the cost and expense of such Clinical Trial until the effective date of such transfer; or 

			
	
			
				 (ii)
			If Verastem elects not to have such Clinical Trial transferred to Verastem, then Licensee shall, at its sole cost and expense, orderly wind-down the conduct of any such Clinical Trial that is not assumed by Verastem under clause (i) above.

			
	
			
				 (g)
			Return of Confidential Information. At Verastem’s election, Licensee shall return (at Verastem’s expense) or destroy all tangible materials comprising, bearing or containing any Confidential Information of Verastem that are in Licensee’s or its Affiliates’ or 

		 

		

			53

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

	Sublicensees’ possession or control and provide written certification of such destruction except to the extent that Licensee is required to retain such materials by Applicable Laws; provided that Licensee may retain one (1) copy of such Confidential Information for its legal archives, and provided further, that Licensee shall not be required to destroy electronic files containing such Confidential Information that are made in the ordinary course of its business information back-up procedures pursuant to its electronic record retention and destruction practices that apply to its own general electronic files and information.    Any Confidential Information retained by Licensee pursuant to this Section 12.3(g) shall remain subject to Licensee’s confidentiality obligations in accordance with ‎Article 8.

			
	
			
				 12.4
			Bankruptcy Code § 365(n) Election.  All rights and licenses now or hereafter granted by Verastem to Licensee under or pursuant to this Agreement, are rights to “intellectual property” (as defined in Section 101(35A) of Title 11 of the United States Code, as amended (such Title 11, the “Bankruptcy Code”)).  Licensee will retain and may fully exercise all of its rights under the United States Bankruptcy Code. In the event of the commencement of a bankruptcy or insolvency proceeding (including similar proceedings) by or against Verastem under the Bankruptcy Code, Licensee will be entitled to a complete duplicate of (or complete access to, as appropriate) any intellectual property licensed to it under this Agreement (including rights of reference with respect to Regulatory Approvals), if not already in its possession, unless Verastem continues to perform all of its obligations under this Agreement.    

			
	
			
				 12.5
			Accrued Rights. Expiration or termination of this Agreement for any reason shall be without prejudice to any right which shall have accrued to the benefit of either Party prior to such termination, including damages arising from any breach under this Agreement. Expiration or termination of this Agreement shall not relieve either Party from any obligation which is expressly indicated to survive such expiration or termination.

			
	
			
				 12.6
			Survival.    The provisions of Articles 1,  7 (except with respect to Section ‎7.6, and solely with respect to any amounts that have accrued prior to the effective date of expiration or termination of this Agreement), 8,  13 (with respect to any disputes arising during the Term), 10 (solely with respect to indemnifiable events that occur prior to the effective date of expiration or termination of this Agreement), and 14 (as applicable), and Sections ‎2.7,  ‎2.8,  ‎2.9,  ‎2.10 (solely with respect to amounts that accrue prior to the effective date of expiration or termination of this Agreement), ‎4.4 (as required by Licensee’s standard practices and in accordance with Applicable Laws), ‎5.3(a) (solely with respect to rights of reference granted by Licensee to Verastem), ‎5.4,  ‎9.8,  ‎11.1,  ‎11.2(b),  ‎11.6(a),  ‎12.3,  ‎12.4,  ‎12.5,  ‎12.6, and ‎12.7, shall survive the expiration or termination of this Agreement. 

			
	
			
				 12.7
			Termination Not Sole Remedy.  Termination shall not be the sole remedy under this Agreement and, whether or not termination is effected and notwithstanding anything contained in this Agreement to the contrary, all other remedies shall remain available except as otherwise expressly agreed herein.

		
			

		 

		

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			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

			
	
			
				 12.8
			Termination of Upstream License Agreements.  Upon any termination of a given Upstream License Agreement, whether with respect to the Territory or in its entirety (except as caused by Licensee’s, its Affiliates’, or its Sublicensees’ breach of this Agreement or the applicable Upstream License Agreement), Verastem shall use Commercially Reasonable Efforts to put Licensee in contact with the Upstream Licensor for purposes of Licensee negotiating a direct license with such Upstream Licensor in the Territory, provided that Verastem shall not be required to incur any costs or pay any amounts in connection therewith. 

			
	
			
				Article 13
			 
DISPUTE RESOLUTION

			
	
			
				 13.1
			General.  The Parties recognize that a dispute may arise relating to this Agreement (a “Dispute”). Any Dispute, including Disputes that may involve the Affiliates of any Party, shall be resolved in accordance with this ‎Article 13.

			
	
			
				 13.2
			Negotiation; Escalation.  The Parties shall negotiate in good faith and use Commercially Reasonable Efforts to settle any Dispute under this Agreement. Any Dispute as to the breach, enforcement, interpretation or validity of this Agreement shall be referred to the Executive Officers for attempted resolution. In the event the Executive Officers are unable to resolve such Dispute within [* * *] days of such Dispute being referred to them, then, upon the written request of either Party to the other Party, the Dispute shall be subject to arbitration in accordance with Section ‎13.3.

			
	
			
				 13.3
			Arbitration.

			
	
			
				 (a)
			In the event of a Dispute that cannot be resolved between the Parties or the Executive Officers as set forth in Section ‎13.2, either Party shall be free to institute binding arbitration with respect to such dispute in accordance with this Section ‎13.3 upon written notice to the other Party (an “Arbitration Notice”) and seek any and all remedies available under Applicable Law. Subject to the provisions of Section 13.3(h), any Dispute to be resolved under this Section ‎13.3 shall be settled by binding arbitration administered by JAMS (or any successor Entity thereto) and in accordance with the Comprehensive Arbitration Rules and Procedures then in effect and the Expedited Procedures contained therein, as modified in this Section ‎13.3 (the “Rules”), except to the extent such rules are inconsistent with this Section ‎13.3, in which case this Section ‎13.3 shall control. The proceedings and decisions of the arbitrators shall be confidential, final and binding on the Parties, and judgment upon the award of such arbitrators may be entered in any court having jurisdiction thereof. 

			
	
			
				 (b)
			Upon receipt of an Arbitration Notice by a Party, the applicable dispute shall be resolved by final and binding arbitration before a panel of three (3) arbitrators (the “Arbitrators”), with each arbitrator having not less than fifteen (15) years of experience in the biotechnology or pharmaceutical industry and subject matter expertise with respect to the matter subject to arbitration. Any Arbitrator chosen hereunder shall have educational training and industry experience sufficient to demonstrate a reasonable level of scientific, financial, medical and 

		 

		

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			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

	industry knowledge relevant to the particular dispute. Each Party shall promptly select one (1) Arbitrator each, which selections shall in no event be made later than [* * *] days after receipt of the Arbitration Notice. The third Arbitrator shall be chosen promptly by mutual agreement of the Arbitrators chosen by the Parties, but in no event later than [* * *] days after the date that the last of such Arbitrators was appointed. 

			
	
			
				 (c)
			The Arbitrators’ decision and award shall be made within [* * *] days of the filing of the arbitration demand, and the Arbitrators shall agree to comply with this schedule before accepting appointment. However, this time limit may be extended by agreement of the Parties or by the Arbitrators. The Arbitrators shall be authorized to award compensatory damages, but shall not be authorized to reform, modify or materially change this Agreement. The Arbitrators shall, within [* * *] days after the conclusion of the hearing, issue a written award and statement of decision describing the material facts and the grounds for the conclusions on which the award is based, including the calculation of any damages awarded. The decision of the Arbitrators shall be final, conclusive and binding on the Parties and enforceable by any court of competent jurisdiction. 

			
	
			
				 (d)
			Each Party shall bear its own costs and expenses (including legal fees and expenses) relating to the arbitration proceeding, except that the fees of the Arbitrators and other related costs of the arbitration shall be shared equally by the Parties, unless the Arbitrators determine that a Party has incurred unreasonable expenses due to vexatious or bad faith positions taken by the other Party, in which event the Arbitrators may make an award of all or any portion of such expenses (including legal fees and expenses) so incurred. 

			
	
			
				 (e)
			The Arbitrators shall be required to render the decision in writing and to comply with, and the award shall be limited by, any express provisions of this Agreement relating to damages or the limitation thereof. No Arbitrator shall have the power to award punitive damages under this Agreement regardless of whether any such damages are contained in a proposal, and such award is expressly prohibited. 

			
	
			
				 (f)
			Unless the Parties otherwise agree in writing, during the period of time that any arbitration proceeding is pending under this Agreement, the Parties shall continue to comply with all those terms and provisions of this Agreement that are not the subject of the pending arbitration proceeding. 

			
	
			
				 (g)
			All arbitration proceedings and decisions of the Arbitrators under this Section ‎13.3 shall be deemed Confidential Information of both Parties under ‎Article 8. The arbitration proceedings shall take place in [* * *].  The language of the arbitration proceeding shall be in English.

			
	
			
				 (h)
			Notwithstanding the foregoing, any dispute, controversy or claim relating to the scope, validity, enforceability or infringement of any Patent Rights or trademark rights shall be submitted to a court of competent jurisdiction in the country in which such Patent Rights or trademark rights were granted or arose. Nothing in this Section ‎13.3 will preclude either Party 

		 

		

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			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

	from seeking equitable relief or interim or provisional relief from a court of competent jurisdiction, including a temporary restraining order, preliminary injunction or other interim equitable relief, concerning a dispute either prior to or during any arbitration if necessary to protect the interests of such Party or to preserve the status quo pending the arbitration proceeding.

			
	
			
				Article 14
			
MISCELLANEOUS

			
	
			
				 14.1
			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 such failure or delay is caused by or results from causes beyond the reasonable control of the affected Party, including embargoes, war, acts of war (whether war be declared or not), acts of terrorism, insurrections, riots, civil commotions, strikes, lockouts or other labor disturbances (except for a strike, lockout or labor disturbance with respect to the non-performing Party’s respective employees or agents), fire, floods, earthquakes or other acts of God, or any generally applicable action or inaction by any governmental authority (but excluding any government action or inaction that is specific to such Party, its Affiliates or sublicensees, such as revocation or non-renewal of such Party’s license to conduct business), or omissions or delays in acting by the other Party. The affected Party shall notify the other Party in writing of such force majeure circumstances as soon as reasonably practical, and shall promptly undertake and continue diligently all reasonable efforts necessary to cure such force majeure circumstances or to perform its obligations despite the ongoing circumstances.

			
	
			
				 14.2
			Assignment.    This Agreement may not be assigned or otherwise transferred by a Party, nor may any right or obligation hereunder be assigned or transferred by a Party (except as expressly permitted under this Agreement), without the prior written consent of the other Party, such consent not to be unreasonably withheld, conditioned or delayed. Notwithstanding the foregoing, either Party may assign this Agreement to a purchaser of all or substantially all of its assets to which this Agreement relates (whether by merger, stock purchase, consolidation, asset purchase, or otherwise) or to any successor Entity resulting from any such merger or consolidation of such Party without the consent of the other Party, provided that (a) such purchaser or successor Entity agrees in writing to be bound by the terms and conditions of this Agreement, and (b) a copy of such writing is provided to the non-assigning Party within [* * *] days of such assignment. Any attempted assignment not in accordance with this Section ‎14.2 shall be null and void and of no legal effect. Any permitted assignee shall assume all assigned obligations of its assignor under this Agreement. The terms and conditions of this Agreement shall be binding upon, and shall inure to the benefit of, the Parties and their respected successors and permitted assigns. 

			
	
			
				 14.3
			Severability.  If any one (1) or more of the provisions contained in this Agreement is held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby, unless the absence of the invalidated provision(s) adversely affects the substantive rights of the Parties. The Parties shall in such an instance use their best efforts to replace the invalid, illegal or 

		 

		

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			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

	unenforceable provision(s) with valid, legal and enforceable provision(s) that, insofar as practical, implement the purposes of this Agreement.

			
	
			
				 14.4
			Notices.  All notices that are required or permitted hereunder shall be in writing and sufficient if delivered personally, sent by facsimile or electronic mail (and promptly confirmed by personal delivery, registered or certified mail or overnight courier), sent by nationally-recognized overnight courier or sent by registered or certified mail, postage prepaid, return receipt requested, addressed as follows:

		
			If to Verastem:
		

		
			Verastem, Inc. 
117 Kendrick Street, #500, 
		

		
			Needham, MA 02494
USA
Attn: President and CEO
		

		
			 
		

		
			with a copy to:
		

		
			Verastem, Inc. 
117 Kendrick Street, #500, 
		

		
			Needham, MA 02494
USA
Attn: COO
		

		
			 
		

		
			If to Licensee:
		

		
			Yakult Honsha Co., Ltd.
		

		
			6F Ginza-Kobiki Bldg. 
		

		
			16-21, Ginza 7-Chome
		

		
			Chuo-Ku, Tokyo, 104-0061
		

		
			Japan
Attn: Head of Pharmaceutical Division
		

		
			 
		

		
			with a copy to:
		

		
			Yakult Honsha Co., Ltd.
		

		
			3F Ginza-Kobiki Bldg. 
		

		
			16-21, Ginza 7-Chome
		

		
			Chuo-Ku, Tokyo, 104-0061
		

		
			Japan
Attn: Head of Pharmaceutical Business Management & Licensing Department
		

		
			 
		

		
			 
		

		
			

		 

		

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			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

		
			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 electronic mail or facsimile on a Business Day (or if delivered or sent on a non-Business Day, then on the next Business Day); (b) on the Business Day after dispatch if sent by nationally-recognized overnight courier; or (c) on the fifth Business Day following the date of mailing if sent by mail.
		

			
	
			
				 14.5
			Governing Law.    This Agreement, and all claims or causes of action (whether in contract, tort or statute) that may be based upon, arise out of or relate to this Agreement, or the negotiation, execution or performance of this Agreement or the breach thereof (including any claim or cause of action based upon, arising out of or related to any representation or warranty made in or in connection with this Agreement or as an inducement to enter into this Agreement), shall be governed by, and enforced in accordance with, the internal laws of the State of New York, including its statutes of limitations. 

			
	
			
				 14.6
			Entire Agreement; Amendments.  This Agreement, together with the Exhibits hereto, contains the entire understanding of the Parties with respect to the collaboration and the licenses granted hereunder. Any other express or implied agreements and understandings, negotiations, writings and commitments, either oral or written, in respect to the collaboration and the licenses granted hereunder are superseded by the terms of this Agreement. The Exhibits to this Agreement are incorporated herein by reference and shall be deemed a part of this Agreement. This Agreement may be amended, or any term hereof modified, only by a written instrument duly executed by authorized representative(s) of both Parties. The Parties agree that, effective as of the Effective Date, that the Existing Confidentiality Agreement shall be superseded by this Agreement, and that disclosures made prior to the Effective Date pursuant to the Confidentiality Agreement shall be subject to the confidentiality and non-use provisions of this Agreement. The foregoing shall not be interpreted as a waiver of any remedies available to either Party or its Affiliates as a result of any breach, prior to the Effective Date, by the other Party or its Affiliates of such Party’s or its Affiliate’s obligations pursuant to the Confidentiality Agreement. 

			
	
			
				 14.7
			Headings.  The captions to the several Articles, Sections and subsections hereof are not a part of this Agreement, but are merely for convenience to assist in locating and reading the several Articles and Sections of this Agreement.

			
	
			
				 14.8
			Independent Contractors.  It is expressly agreed that Verastem and Licensee shall be independent contractors and that the relationship between the two (2) Parties shall not constitute a partnership, joint venture or agency. Neither Verastem nor Licensee shall have the authority to make any statements, representations or commitments of any kind, or to take any action that is binding on the other Party without the prior written consent of the other Party.

			
	
			
				 14.9
			Waiver.  Any waiver of any provision of this Agreement shall be effective only if in writing and signed by Verastem and Licensee. No express or implied waiver by a Party of any default under this Agreement will be a waiver of a future or subsequent default. The failure or delay of any Party in exercising any rights under this Agreement will not constitute a waiver of 

		 

		

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			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

	any such right, and any single or partial exercise of any particular right by any Party will not exhaust the same or constitute a waiver of any other right provided in this Agreement. 

			
	
			
				 14.10
			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.

			
	
			
				 14.11
			Cumulative Remedies.  No remedy referred to in this Agreement is intended to be exclusive, but each shall be cumulative and in addition to any other remedy referred to in this Agreement or otherwise available under Applicable Laws.

			
	
			
				 14.12
			Business Day Requirements.  In the event that any notice or other action or omission is required to be taken by a Party under this Agreement on a day that is not a Business Day then such notice or other action or omission shall be deemed to be required to be taken on the next occurring Business Day.

			
	
			
				 14.13
			Further Actions.  Each Party agrees to execute, acknowledge and deliver such further instruments, and to do all such other acts, as necessary or appropriate in order to carry out the purposes and intent of this Agreement.

			
	
			
				 14.14
			Construction.  Except where the context expressly requires otherwise, (a) the use of any gender herein shall be deemed to encompass references to either or both genders, and the use of the singular shall be deemed to include the plural (and vice versa), (b) the words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”, (c) the word “will” shall be construed to have the same meaning and effect as the word “shall”, (d) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (e) any reference herein to any person shall be construed to include the person’s successors and assigns, (f) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (g) all references herein to Sections, Schedules, or Exhibits shall be construed to refer to Sections, Schedules or Exhibits of this Agreement, and references to this Agreement include all Schedules and Exhibits hereto, (h) the word “notice” means notice in writing (whether or not specifically stated) and shall include notices, consents, approvals and other written communications contemplated under this Agreement, (i) provisions that require that a Party, the Parties or any committee hereunder “agree”, “consent” or “approve” or the like shall require that such agreement, consent or approval be specific and in writing, whether by written agreement, letter, approved minutes or otherwise (but excluding e-mail and instant messaging), (j) references to any specific law, rule or regulation, or Section, section or other division thereof, shall be deemed to include the then-current amendments thereto or any replacement or successor law, rule or regulation thereof, and (k) the term “or” shall be interpreted in the inclusive sense commonly associated with the term “and/or.”

		
			

		 

		

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			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

			
	
			
				 14.15
			Counterparts.  This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Each Party shall be entitled to rely on the delivery of executed facsimile copies of counterpart execution pages of this Agreement and such facsimile copies shall be legally effective to create a valid and binding agreement among the Parties.

			
	
			
				 14.16
			Language.  This Agreement is in the English language only, which language shall be controlling in all respects, and all versions hereof in any other language shall be for accommodation only and shall not be binding upon the Parties. All communications and notices to be made or given pursuant to this Agreement, and any dispute proceeding related to or arising hereunder, shall be in the English language. If there is a discrepancy between any translation of this Agreement and this Agreement, this Agreement shall prevail.

		
			{Signature Page Follows}
		

		
			 
		

		
			

		 

		

			61

		

 

		

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			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

		
			In Witness Whereof, the Parties intending to be bound have caused this License and Collaboration Agreement to be executed by their duly authorized representatives as of the Effective Date.
		

		
			Verastem, Inc.Yakult Honsha Co., Ltd.
		

		
			By: /s/ Robert ForresterBy:/s/ Takashige Negishi
		

		
			Name: Robert ForresterName: Takashige Negishi                              
		

		
			Title: President & CEOTitle: President and Representative Director
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			62

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

		
			List of Exhibits
		

		
			 
		

		
			Exhibit A:Verastem Patents
		

		
			Exhibit B:Structure of Licensed Compound
		

		
			Exhibit C:Joint Press Release
		

		
			Exhibit D: Diligence Obligations
		

		
			Exhibit E:Development Plan
		

		
			Exhibit F:Licensed Trademarks
		

		
			Exhibit G:Synopsis of the [* * *]
		

		
			Exhibit HSupply Agreement Key Terms 
		

		
			 
		

		
			
		

		
			

		 

		

			1.

		

		

			70095309_5

		

		

			 

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

		
			Exhibit A
		

		
			Verastem Patents
		

		
			 
		

		
			 
		

			
					
						Attorney Docket

					
					
						Application #

					
					
						Filing Date

					
					
						Patent #

					
					
						Issue Date

				
	
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

				
	
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

				
	
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

				
	
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

				
	
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

				
	
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

				
	
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

				
	
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

				
	
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

				

		
			 
		

		
			
		

		
			

		 

		

			2.

		

		

			70095309_5

		

		

			 

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

		
			Exhibit B
		

		
			Structure of Licensed Compound
		

		
			 
		

		
			[* * *]
		

		
			

		 

		

			3.

		

		

			70095309_5

		

		

			 

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

		
			Exhibit C
		

		
			Joint Press Release
		

		
			 
		

		
			Verastem Oncology and Yakult Honsha Co., Ltd. Sign Exclusive License Agreement for the Development and Commercialization of Duvelisib in Japan
		

		
			 
		

		
			̶  Verastem to Receive Upfront Payment of $10 Million USD,Then Eligible to Receive Up To $90 Million USD in Future Milestones, Plus Royalties  ̶
		

		
			 
		

		
			̶  Yakult Obtains Rights to First-in-class Oral Dual Inhibitor of Phosphoinositide-3-kinase (PI3K)-delta and PI3K-gamma (PI3K-δ,γ), Duvelisib for Oncology Indications in Japan  ̶
		

		
			 
		

		
			 
		

		
			BOSTON, MA, USA and TOKYO, JAPAN – May [XX], 2018 – Verastem, Inc. (President and CEO: Robert Forrester, NASDAQ: VSTM) and Yakult Honsha Co., Ltd. (President: Takashige Negishi, Tokyo: 2267), today announced their entry into an exclusive licensing agreement for Yakult to develop and commercialize Verastem’s duvelisib, a first-in-class oral dual inhibitor of phosphoinositide 3-kinase (PI3K)-delta and PI3K-gamma, for the treatment, prevention or diagnosis of all oncology indications in Japan.  Verastem’s New Drug Application (NDA) for duvelisib is currently under review with the U.S. Food and Drug Administration (FDA) and is seeking full approval for the treatment of relapsed or refractory chronic lymphocytic leukemia/small lymphocytic lymphoma (CLL/SLL) and accelerated approval for the treatment of relapsed or refractory follicular lymphoma (FL).  On April 9, 2018, Verastem announced that the FDA had accepted the NDA for filing with Priority Review.
		

		
			 
		

		
			Under the terms of the agreement, Verastem will receive a one-time upfront payment of $10 million from Yakult.  Verastem is eligible to receive up to an additional $90 million if certain future pre-specified development and commercialization milestones are successfully achieved by Yakult, plus  double-digit royalties based on future net sales of duvelisib in Japan.  In exchange, Yakult will receive exclusive rights to develop and commercialize duvelisib in Japan, at its own cost and expense.  Yakult will also fund certain global development costs on a pro-rata basis.  Verastem will retain all rights to duvelisib outside of Japan.
		

		
			 
		

		
			“In Japan, current therapies to treat CLL/SLL and FL are extremely limited and duvelisib has robust clinical data supporting its efficacy and safety in both indications, which we can build upon,” said Masanori Ito, Head of Pharmaceutical Business Division/Managing Executive Officer, Member of the Board of Yakult.  “We are eager to collaborate with Verastem to develop duvelisib in these initial hematologic malignancies, and then plan to later expand development to include the additional indications of PTCL and DLBCL.  We believe this collaboration underscores our commitment to innovation, growing our oncology franchise, and commercializing medicines that positively impact the lives of patients in Japan.”
		

		
			 
		

		
			“Following extensive due diligence, we have chosen Yakult as our duvelisib development and commercialization partner in Japan,” said Robert Forrester, President and Chief Executive Officer of Verastem.  “Yakult is an established oncology leader in Japan that successfully markets several branded anti-cancer therapies, including Elplat® and Campto®.  This agreement is an important, validating 

		 

		

			4.

		

		

			70095309_5

		

		

			 

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

achievement for both duvelisib and Verastem Oncology and speaks to the significant global potential of this novel therapeutic for a broad range of hematologic malignancies.  We look forward to working with the world-class development, regulatory and commercial teams at Yakult as they advance oral duvelisib toward commercialization in Japan.”
		

		
			 
		

		
			About Duvelisib
		

		
			 
		

		
			Duvelisib is a first-in-class investigational oral, dual inhibitor of phosphoinositide 3-kinase (PI3K)-delta and PI3K-gamma, two enzymes known to help support the growth and survival of malignant B-cells and T-cells. PI3K signaling may lead to the proliferation of malignant B- and T-cells and is thought to play a role in the formation and maintenance of the supportive tumor microenvironment.1,2,3 Duvelisib was evaluated in late- and mid-stage extension trials, including DUOTM, a randomized, Phase 3 monotherapy study in patients with relapsed or refractory chronic lymphocytic leukemia/small lymphocytic lymphoma (CLL/SLL),4 and DYNAMOTM, a single-arm, Phase 2 monotherapy study in patients with refractory indolent non-Hodgkin lymphoma (iNHL).5 Both DUO and DYNAMO achieved their primary endpoints. Verastem Oncology’s New Drug Application (NDA) requesting the full approval of duvelisib for the treatment of patients with relapsed or refractory CLL/SLL, and accelerated approval for the treatment of patients with relapsed or refractory follicular lymphoma (FL) was accepted for filing by the U.S. Food and Drug Administration (FDA), granted Priority Review and assigned a target action date of October 5, 2018. Duvelisib is also being developed by Verastem Oncology for the treatment of peripheral T-cell lymphoma (PTCL), and is being investigated in combination with other agents through investigator-sponsored studies.6 Information about duvelisib clinical trials can be found on www.clinicaltrials.gov.
		

		
			 
		

		
			About Verastem Oncology
		

		
			 
		

		
			Verastem, Inc. (Nasdaq:VSTM), operating as Verastem Oncology, is a biopharmaceutical company focused on developing and commercializing medicines to improve the survival and quality of life of cancer patients. Verastem Oncology is currently developing duvelisib, a dual inhibitor of PI3K-delta and PI3K-gamma, which has successfully met its primary endpoint in a Phase 2 study in indolent Non-Hodgkin Lymphoma (iNHL) and a Phase 3 clinical trial in patients with chronic lymphocytic leukemia/small lymphocytic lymphoma (CLL/SLL). Verastem Oncology’s New Drug Application (NDA) requesting the full approval of duvelisib for the treatment of patients with relapsed or refractory CLL/SLL, and accelerated approval for the treatment of patients with relapsed or refractory follicular lymphoma (FL) was accepted for filing by the U.S. Food and Drug Administration (FDA), granted Priority Review and assigned a target action date of October 5, 2018. In addition, Verastem Oncology is developing the FAK inhibitor defactinib, which is currently being evaluated in three separate clinical collaborations in combination with immunotherapeutic agents for the treatment of several different cancer types, including pancreatic cancer, ovarian cancer, non-small-cell lung cancer (NSCLC), and mesothelioma. Verastem Oncology’s product candidates seek to treat cancer by modulating the local tumor microenvironment and enhancing anti-tumor immunity. For more information, please visit www.verastem.com.
		

		
			 
		

		
			About Yakult Honsha Co., Ltd.
		

		
			 
		

		
			

		 

		

			5.

		

		

			70095309_5

		

		

			 

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

		
			Yakult is a leading Japanese company focused on the development and marketing of pharmaceuticals, foods, beverages, and cosmetics. With respect to its pharmaceutical business, Yakult has a strong presence in development and commercialization of the therapeutic products in the field of oncology. The company, led by Takashige Negishi, in 2017 recorded ¥378.3 Billion Revenues.
		

		
			For more information on Yakult, visit: http://www.yakult.co.jp/english/index.html or view the
		

		
			following company profile:
		

		
			http://www.yakult.co.jp/english/pdf/profile2017-2018_en.pdf
		

		
			 
		

		
			Verastem, Inc. forward-looking statements notice: 
		

		
			 
		

		
			This press release includes forward-looking statements about Verastem Oncology’s strategy, future plans and prospects, including statements regarding the development and activity of Verastem Oncology’s investigational product candidates, including duvelisib and defactinib, and Verastem Oncology’s PI3K and FAK programs generally, the potential to receive milestone and royalty payments under the agreement with Yakult, the structure of our planned and pending clinical trials, Verastem Oncology’s financial guidance and the timeline and indications for clinical development and regulatory submissions. The words "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "target," "potential," "will," "would," "could," "should," "continue," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Each forward-looking statement is subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statement. Applicable risks and uncertainties include the risks that approval of Verastem Oncology’s New Drug Application for duvelisib in any jurisdiction will not occur on the expected timeframe or at all, including by the U.S. Food and Drug Administration’s target action date; that a filing of a European Marketing Application may not be achieved in fiscal year 2019 or at all; that partnerships or collaborations for the development of duvelisib outside of the United States may not be successful; that even if data from clinical trials is positive, regulatory authorities may require additional studies for approval or may approve for indications or patient populations that are not as broad as intended and the product may not prove to be safe and effective or may require labeling with use or distribution restrictions; that the preclinical testing of Verastem Oncology’s product candidates and preliminary or interim data from clinical trials may not be predictive of the results or success of ongoing or later clinical trials; that the full data from the DUO study will not be consistent with the previously presented results of the study; that data may not be available when expected, including for the Phase 3 DUO study; that the degree of market acceptance of product candidates, if approved, may be lower than expected; that the timing, scope and rate of reimbursement for our product candidates is uncertain; that there may be competitive developments affecting our product candidates; that data may not be available when expected; that enrollment of clinical trials may take longer than expected; that our product candidates will cause unexpected safety events or result in an unmanageable safety profile as compared to their level of efficacy; that duvelisib will be ineffective at treating patients with lymphoid malignancies; that Verastem Oncology will be unable to successfully initiate or complete the clinical development and eventual commercialization of its product candidates; that the development and commercialization of Verastem Oncology’s product candidates will take longer or cost more than planned; that Verastem Oncology may not have sufficient cash to fund its contemplated operations; that Verastem Oncology or Infinity 

		 

		

			6.

		

		

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			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

Pharmaceuticals, Inc. will fail to fully perform under the duvelisib license agreement; that Verastem Oncology may be unable to make additional draws under its debt facility or obtain adequate financing in the future through product licensing, co-promotional arrangements, public or private equity, debt financing or otherwise; that Verastem Oncology will not pursue or submit regulatory filings for its product candidates, including for duvelisib in patients with CLL/SLL or iNHL; and that Verastem Oncology’s product candidates will not receive regulatory approval, become commercially successful products, or result in new treatment options being offered to patients. Other risks and uncertainties include those identified under the heading "Risk Factors" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 as filed with the Securities and Exchange Commission (SEC) on March 13, 2018 and in any subsequent filings with the SEC. The forward-looking statements contained in this press release reflect Verastem Oncology’s views as of the date hereof, and the Company does not assume and specifically disclaims any obligation to update any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
		

		
			 
		

		
			Contact:
		

		
			 
		

		
			Verastem Oncology, Inc.
		

		
			Marianne M. Lambertson
		

		
			Vice President, Corporate Communications
		

		
			Investor Relations/Public Relations
		

		
			+1 781-292-4273
		

		
			mlambertson@verastem.com 
		

		
			 
		

		
			References
		

		
			1  Winkler D.G., Faia K.L., DiNitto J.P. et al. PI3K-delta and PI3K-gamma inhibition by IPI-145 abrogates immune responses and suppresses activity in autoimmune and inflammatory disease models. Chem Biol 2013; 20:1-11.
		

		
			2  Reif K et al. Cutting Edge: Differential Roles for Phosphoinositide 3 kinases, p110-gamma and p110-delta, in lymphocyte chemotaxis and homing. J Immunol 2004:173:2236-2240.
		

		
			3  Schmid M et al. Receptor Tyrosine Kinases and TLR/IL1Rs Unexpectedly activate myeloid cell PI3K, a single convergent point promoting tumor inflammation and progression. Cancer Cell 2011;19:715-727.
		

		
			4 www.clinicaltrials.gov, NCT02004522
		

		
			5 www.clinicaltrials.gov, NCT01882803
		

		
			6 www.clinicaltrials.gov, NCT02783625, NCT02158091
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			7.

		

		

			70095309_5

		

		

			 

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

		
			Exhibit D
		

		
			Diligence Obligations
		

		
			 
		

		
			 
		

			
					
						Type

					
					
						Description of obligation

					
					
						Date required by Licensee to meet obligation

				
	
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

				
	
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

				
	
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

				
	
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			8.

		

		

			70095309_5

		

		

			 

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

		
			Exhibit E
		

		
			Development Plan
		

		
			 
		

		
			[* * *]
		

		
			 
		

		
			

		 

		

			9.

		

		

			70095309_5

		

		

			 

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

Exhibit F
		

		
			Licensed Trademarks
		

		
			 
		

		
			 
		

			
					
						Mark

					
					
						Country

					
					
						App. No.

					
					
						App. Date

					
					
						Reg. No.

					
					
						Reg. Date

				
	
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

					
					
						[* * *]

				

		
			 
		

		
			 
		

		
			

		 

		

			10.

		

		

			70095309_5

		

		

			 

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

Exhibit G
		

		
			Synopsis of the [* * *] Study
		

		
			 
		

		
			 
		

		
			[* * *]
		

		
			

		 

		

			11.

		

		

			70095309_5

		

		

			 

		

 

		

			THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”).  REDACTED MATERIAL IS MARKED 

		

		

			WITH [* * *] AND HAS BEEN FILED SEPARATELY WITH THE SEC.

		

		

			 

		

		

			 

		

		

		
			Exhibit H
		

		
			Supply Agreement Key Terms
		

		
			[* * *]
		

		 

		

			12.

		

		

			70095309_5EX-10.1

 Exhibit 10.1 

Confidential 
 EXECUTION

 CONFIDENTIAL TREATMENT REQUESTED 

CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. INFORMATION THAT WAS
OMITTED IN THE EDGAR VERSION HAS BEEN NOTED IN THIS DOCUMENT WITH A PLACEHOLDER IDENTIFIED BY THE MARK “[***]. 
 DEVELOPMENT AND
LICENSE AGREEMENT 
 by and between 

PFENEX INC. 
 and

 CHINA NT PHARMA GROUP COMPANY LTD. 

April 18, 2018 
 [***] Certain
information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 Table of Contents 

 

							
	 	    	 	  	Page	 
	 Article I. Definitions
	  	 	1	 
			
	 Section 1.1
	    	 Defined Terms
	  	 	1	 
		
	 Article II. Grant of License
	  	 	11	 
			
	 Section 2.1
	    	 Product License
	  	 	11	 
	 Section 2.2
	    	 Sublicenses
	  	 	12	 
	 Section 2.3
	    	 No Implied Licenses
	  	 	12	 
		
	 Article III. Product Development
	  	 	13	 
			
	 Section 3.1
	    	 Development Efforts
	  	 	13	 
	 Section 3.2
	    	 Subcontracting
	  	 	14	 
	 Section 3.3
	    	 Records; Audit Rights
	  	 	15	 
	 Section 3.4
	    	 Regulatory Affairs
	  	 	15	 
	 Section 3.5
	    	 Commitment Activities
	  	 	17	 
	 Section 3.6
	    	 Medical Affairs
	  	 	18	 
	 Section 3.7
	    	 Non-Competition
	  	 	18	 
	 Section 3.8
	    	 Divestment of Assets by Pfenex
	  	 	19	 
		
	 Article IV. Payments
	  	 	20	 
			
	 Section 4.1
	    	 Upfront License Payment
	  	 	20	 
	 Section 4.2
	    	 Development Milestone Payment
	  	 	20	 
	 Section 4.3
	    	 Sales Milestone Payment
	  	 	20	 
	 Section 4.4
	    	 Royalties
	  	 	20	 
	 Section 4.5
	    	 Reports
	  	 	20	 
	 Section 4.6
	    	 Payment Terms
	  	 	21	 
	 Section 4.7
	    	 Records; Audit Rights
	  	 	21	 
		
	 Article V. Manufacture of Product; Pharmacovigilance; Sales and Marketing
	  	 	21	 
			
	 Section 5.1
	    	 Manufacturing Responsibility
	  	 	21	 
	 Section 5.2
	    	 Product Packaging and Labeling
	  	 	22	 
	 Section 5.3
	    	 Product Documentation
	  	 	22	 
	 Section 5.4
	    	 Non-Medical Product Complaints
	  	 	22	 
	 Section 5.5
	    	 Product Recalls
	  	 	22	 
	 Section 5.6
	    	 Registrations
	  	 	22	 
	 Section 5.7
	    	 Regulatory Inspections
	  	 	22	 
	 Section 5.8
	    	 Product Pricing and Promotion; Agency Contacts
	  	 	23	 
	 Section 5.9
	    	 Reporting; Adverse Drug Reactions
	  	 	23	 
	 Section 5.10
	    	 Sales and Marketing
	  	 	23	 
	 Section 5.11
	    	 Ex-Territory Sales; Export Monitoring
	  	 	23	 
		
	 Article VI. Territory Product Trademark; Intellectual Property Litigation
	  	 	24	 
			
	 Section 6.1
	    	 Territory Product Trademarks
	  	 	24	 
	 Section 6.2
	    	 Ownership of Inventions
	  	 	25	 
	 Section 6.3
	    	 Patent Prosecution and Maintenance of Inventions
	  	 	25	 
	 Section 6.4
	    	 Manufacturing Process
	  	 	26	 
	 Section 6.5
	    	 Enforcement Actions
	  	 	26	 
	 Section 6.6
	    	 Reimbursement Requirements
	  	 	28	 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 Table of Contents 

(continued) 
  

							
	 	    	 	  	Page	 
	 Section 6.7
	    	 Recovered Amounts
	  	 	28	 
	 Section 6.8
	    	 Common Interest Agreement
	  	 	28	 
	 Section 6.9
	    	 Patent Marking
	  	 	28	 
	 Section 6.10
	    	 Article XI Not Applicable
	  	 	28	 
		
	 Article VII. Executive Steering Committee
	  	 	28	 
			
	 Section 7.1
	    	 Formation and Purpose
	  	 	28	 
	 Section 7.2
	    	 Membership
	  	 	29	 
	 Section 7.3
	    	 Meeting Requirements
	  	 	29	 
	 Section 7.4
	    	 Decision-Making; Dispute Resolution
	  	 	29	 
	 Section 7.5
	    	 Meeting Minutes
	  	 	31	 
	 Section 7.6
	    	 Expenses
	  	 	31	 
	 Section 7.7
	    	 Working Committees
	  	 	31	 
	 Section 7.8
	    	 Committee Authority; Withdrawal
	  	 	31	 
	 Section 7.9
	    	 Day-to-Day
Responsibilities
	  	 	32	 
	 Section 7.10
	    	 Cooperation
	  	 	32	 
		
	 Article VIII. Confidentiality; Taxes; Nonsolicitation; publications
	  	 	33	 
			
	 Section 8.1
	    	 Confidentiality
	  	 	33	 
	 Section 8.2
	    	 Agents
	  	 	34	 
	 Section 8.3
	    	 Restrictions on Sharing Information
	  	 	34	 
	 Section 8.4
	    	 Taxes
	  	 	34	 
	 Section 8.5
	    	 Nonsolicitation
	  	 	35	 
	 Section 8.6
	    	 Publications
	  	 	36	 
		
	 Article IX. Representations, Warranties and Covenants
	  	 	36	 
			
	 Section 9.1
	    	 Representations and Warranties of Pfenex
	  	 	36	 
	 Section 9.2
	    	 Representations and Warranties of NT Pharma
	  	 	39	 
	 Section 9.3
	    	 Covenants
	  	 	40	 
	 Section 9.4
	    	 Disclaimer of Warranties
	  	 	41	 
	 Section 9.5
	    	 Public Announcements
	  	 	41	 
	 Section 9.6
	    	 Insurance
	  	 	42	 
		
	 Article X. Term; Termination
	  	 	42	 
			
	 Section 10.1
	    	 Term
	  	 	42	 
	 Section 10.2
	    	 Termination
	  	 	42	 
	 Section 10.3
	    	 General Effects of Termination
	  	 	43	 
	 Section 10.4
	    	 Additional Effects of Termination
	  	 	43	 
		
	 Article XI. Indemnification and Liability Limits
	  	 	45	 
			
	 Section 11.1
	    	 Indemnification by Pfenex
	  	 	45	 
	 Section 11.2
	    	 Indemnification by NT Pharma
	  	 	45	 
	 Section 11.3
	    	 Indemnification Procedure
	  	 	46	 
	 Section 11.4
	    	 Limitations on Liability
	  	 	47	 
	 Section 11.5
	    	 Unavailability of Indemnification
	  	 	47	 
		
	 Article XII. Miscellaneous
	  	 	47	 
			
	 Section 12.1
	    	 Force Majeure
	  	 	47	 
	 Section 12.2
	    	 Notices
	  	 	48	 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

ii 

 Table of Contents 

(continued) 
  

					
	 	    	 	  	Page

							
	 Section 12.3
	 	 Governing Law
	  	 	49	 
	 Section 12.4
	 	 Internal Dispute Resolution
	  	 	49	 
	 Section 12.5
	 	 Arbitration
	  	 	49	 
	 Section 12.6
	 	 Relationship of the Parties
	  	 	49	 
	 Section 12.7
	 	 Assignment
	  	 	50	 
	 Section 12.8
	 	 Binding Effect
	  	 	50	 
	 Section 12.9
	 	 Entire Agreement; Amendments
	  	 	50	 
	 Section 12.10
	 	 Severability
	  	 	50	 
	 Section 12.11
	 	 Rules of Construction
	  	 	50	 
	 Section 12.12
	 	 Waiver
	  	 	51	 
	 Section 12.13
	 	 English Language
	  	 	51	 
	 Section 12.14
	 	 Counterparts
	  	 	51	 
	 Section 12.15
	 	 Electronic Execution and Delivery
	  	 	51	 
	 Section 12.16
	 	 License Protection
	  	 	52	 
	 Section 12.17
	 	 Further Assurances
	  	 	52	 
	 Section 12.18
	 	 Compliance with Applicable Laws
	  	 	52	 
	 Section 12.19
	 	 Expenses
	  	 	52	 
	 Section 12.20
	 	 Third Party Beneficiaries
	  	 	52	 
	 Section 12.21
	 	 Equitable Remedies
	  	 	52	 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

iii 

 DEVELOPMENT AND LICENSE AGREEMENT 

This Development and License Agreement (this “Agreement”) is entered into as of April 18, 2018 (the “Effective
Date”) by and between Pfenex Inc., a Delaware corporation (“Pfenex”), and China NT Pharma Group Company Ltd., a company incorporated in Cayman Islands (“NT Pharma”). 

WITNESSETH 

WHEREAS, Pfenex is a clinical stage biotechnology company engaged in the development of difficult to manufacture and high-value
proteins, focusing on biosimilar therapeutics, including Product (as defined below); 
 WHEREAS, NT Pharma has expertise in the
development, distribution, marketing and commercialization of pharmaceutical products for human use in the Territory (as defined below); and 

WHEREAS, NT Pharma wishes to obtain from Pfenex, and Pfenex wishes to grant to NT Pharma, an exclusive license to develop,
commercialize, promote, market, offer for sale, sell and distribute Product in the Territory, subject to the terms and conditions set forth herein. 

NOW, THEREFORE, in consideration of the mutual promises, covenants and agreements set forth herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Pfenex and NT Pharma agree as follows: 
 ARTICLE I. 

DEFINITIONS 

Section 1.1    Defined Terms. The following words and phrases, when used herein with initial capital letters,
shall have the meaning set forth or referenced below: 
 “Acquiring Entity” means a Third Party (including the parent
company of such Third Party, as applicable) that merges or consolidates with or acquires Pfenex, or to which Pfenex transfers all or substantially all its assets to which this Agreement pertains (the “Acquisition Transaction”). 

“Action” means any proceeding, action, claim (formal or informal, including by way of a letter), arbitration, administrative
or regulatory action or other type of legal action, whether taken as a plaintiff or an initiating party (including through a request for declaratory judgment) or by way of counter-claim or defense. 

“Adverse Drug Responses” shall be defined in more detail in the PV Agreement to include any “Adverse Drug
Responses” as defined in the then-current guidelines and regulations promulgated by the ICH (International Conference on Harmonization of Technical Requirements for Registration of Pharmaceuticals for Human Use) and “Adverse Drug
Experience” as defined in the then-current 21 CFR Section 314.80. 
 “Affiliate” means any corporation or other
business entity controlled by, controlling or under common control with a Party. For purposes of this definition, “control” means (a) direct or indirect beneficial ownership of fifty percent (50%) or more (or, if less than fifty

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

1 

 
percent (50%), the maximum ownership interest permitted by Applicable Law) of the voting stock in such corporation or other business entity or (b) the possession, directly or indirectly, of
any other power to direct or cause the direction of the management and policies of such corporation or other business entity, whether through ownership of voting securities, by contract or otherwise. 

“Agents” has the meaning set forth in Section 8.2. 

“Agreement” has the meaning set forth in the preamble to this Agreement. 

“Annual Net Sales” means, for a given Annual Period, the aggregate Net Sales for Product during such Annual Period. 

“Annual Period” means (a) for 2018, the period commencing on the Effective Date and ending on December 31, 2018 (or
the date this Agreement is terminated if such termination occurs prior to December 31, 2018), (b) for each successive calendar year during the Term (other than the calendar year in which the Term expires or this Agreement is terminated)
the period beginning on January 1st of such year and ending on December 31st of such year, and (c) for the calendar year (other
than 2018) in which the Term expires or this Agreement is terminated, the period beginning on January 1st of such calendar year and ending on the effective date of the termination of this
Agreement. 
 “Applicable Law” means each applicable federal, state, local or foreign constitution, treaty, law, statute,
ordinance, rule, regulation, interpretation, directive, policy, order, writ, award, decree, injunction, judgment, stay or restraining order of any Governmental Authority or Regulatory Agency, the terms of any Regulatory Approval, and any other
ruling or decision of, agreement with or by, or requirement of any Governmental Authority, including the United States Foreign Corrupt Practices Act, 15 U.S.C. §§ 78dd-1, et. seq. and any other
applicable United States or non-United States anti-corruption laws. 
 “Assignee”
means any Person (other than Pfenex and NT Pharma) that is assigned or transferred, or succeeds to, any rights under this Agreement. 

“Average Sale Price” means, with respect to a particular country and particular period, the weighted average sale price of
Product, Bundled Product or other product or service included in a Bundled Product, as applicable, such weighted average price determined by dividing (a) the total gross amounts invoiced on commercial sales of Product, Bundled Product or other
product or service included in a Bundled Product in arms-length transactions in the applicable country during the applicable period, by (b) the units of Product, Bundled Product or other products or services included in a Bundled Product
commercially sold in arms-length transactions in such country during such period. When determining the gross amounts invoiced for Product included in a Bundled Product, the methodology used to allocate a portion of the gross amounts invoiced for the
Bundled Product to Product, as set forth in the definition of Net Sales, shall be used to allocate gross amounts invoiced for Product. 

“Bundled Product” means Product sold together with any other product(s) or service(s) at a single unit price, whether
packaged together or separately, and which other product(s) or service(s) have material independent value from Product itself. 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

2 

 “Business” means the research, development, manufacture and
commercialization of Product by Pfenex, NT Pharma and their respective Affiliates and subcontractors, either individually or jointly. 

“Business Day” means any day other than a Saturday, Sunday or a holiday on which banks in Shanghai, China or the State of
California are authorized by Applicable Law to be closed. 
 “cGxP” means then-current good manufacturing, clinical or
laboratory practices and quality system regulations, as applicable, promulgated by any Regulatory Agency. 
 “China Clinical
Study” means a human clinical study with respect to Product in Mainland China that is required by the SFDA in order to obtain Regulatory Approval for Product in Mainland China. 

“CMC Section” means the “Chemistry, Manufacturing and Controls” section of a NDA, or the comparable section of an
MAA for any other jurisdiction, with respect to Product. 
 “Commercial Territory” has the meaning set forth in
Section 5.11(a). 
 “Commercially Reasonable Efforts” means, with respect to the activities to be conducted by a Party
with respect to any objective, the reasonable, diligent, good faith efforts and resources (financial and otherwise) to accomplish such objective as such Party would normally use to accomplish a similar objective under similar circumstances, it being
understood and agreed that, with respect to the development and commercialization of Product, such efforts shall be substantially equivalent to those efforts and resources it commonly expends with respect to a product with similar commercial
potential. Without limiting the foregoing, such efforts shall include: (i) promptly assigning responsibilities for activities for which such Party is responsible to specific employee(s) who are held accountable for the progress, monitoring and
completion of such activities, (ii) setting and consistently seeking to achieve meaningful objectives for carrying out such activities, and (iii) consistently making and implementing decisions and allocating resources necessary or
appropriate to advance progress with respect to and complete such objectives in an expeditious manner. For clarity, it is understood that Commercially Reasonable Efforts shall be evaluated both on a Territory-wide basis and on a country-by-country basis based on factors relevant to such country (including size of market, availability, pricing strategies, likelihood of gray-market goods, Applicable
Law, and likelihood of Regulatory Approval) and are expected to change over time. 
 “Commitment Activities” has the
meaning set forth in Section 3.5(a). 
 “Common Interest Agreement” has the meaning set forth in Section 6.8.

 “Competing Activities” has the meaning set forth in Section 3.7(b). 

“Competing Product” means any product (other than Product) that is the Reference Product or a Generic Product or that
contains the active pharmaceutical ingredient of the Reference Product (or a modified or derivative version thereof) as its sole active pharmaceutical ingredient. 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

3 

 “Competing Product Enforcement Action” has the meaning set forth in
Section 6.5(b). 
 “Components” means all Drug Substance, raw materials, components/component parts, labeling,
packaging (both primary and secondary), ancillary goods, shipping materials and other items used to manufacture and supply Product hereunder in accordance with the applicable Product Specifications and Packaging Specifications. 

“Confidential Information” has the meaning set forth in Section 8.1. 

“Confidentiality Exceptions” has the meaning set forth in Section 8.1. 

“Control” means, with respect to particular Know-How or a particular Patent,
possession by the Party granting the applicable right, license or sublicense to the other Party as provided herein of the power and authority, whether arising by ownership, license, or other authorization, to disclose and deliver the particular Know-How to the other Party, or to grant and authorize under such Know-How or Patent the right, license or sublicense, as applicable, of the scope granted to such other Party
in this Agreement without giving rise to a violation of the terms of any agreement or other arrangement with, or the rights of, any Third Party. Notwithstanding anything to the contrary in this Agreement, the following shall not be deemed to be
Controlled by Pfenex: (a) any Know-How or Patent owned by or licensed to any Acquiring Entity immediately prior to the effective date of the Acquisition Transaction, and (b) any Know-How or Patent that any Acquiring Entity subsequently develops without accessing or practicing any Know-How or Patent owned by or licensed to Pfenex immediately prior to
the effective date of the Acquisition Transaction. “Controlled” and “Controlling” shall have their correlative meanings. 

“Cooperating Party” has the meaning set forth in Section 6.5(d). 

“Debarred Entity” means a Person (other than an individual) that has been debarred by the FDA pursuant to 21 U.S.C.
§ 335a (a) or (b), or by another Regulatory Agency pursuant to a comparable statute, from submitting or assisting in the submission of any application for any abbreviated or other drug application or generation or preparation of any
data with respect thereto, or any affiliate of such Person. 
 “Debarred Individual” means an individual who has been
debarred by the FDA pursuant to 21 U.S.C. § 335a (a) or (b), or by another Regulatory Agency pursuant to a comparable statute, from providing services in any capacity (including generation or preparation of data) to a Person that has
an approved or pending drug application. 
 “Dispute” has the meaning set forth in Section 12.4. 

“Divest” has the meaning set forth in Section 3.7(b)(iii). 

“Divestible Asset” has the meaning set forth in Section 3.7(b)(iii). 

“Dow Technology Assignment Agreement” means that certain Technology Assignment Agreement, dated as of November 30, 2009,
by and between Dow Global Technologies Inc., The Dow Chemical Company and Pfenex. 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

4 

 “Dow Technology Licensing Agreement” means that certain Technology
Licensing Agreement, dated as of November 30, 2009, by and between Dow Global Technologies Inc., The Dow Chemical Company and Pfenex. 

“Drug Substance” means that certain peptide as described in more detail in that certain memorandum exchanged between the
Parties before the Effective Date and referencing this Agreement. 
 “Effective Date” has the meaning set forth in the
preamble to this Agreement. 
 “EMA” means the European Medicines Agency. 

“Enforcement Actions” has the meaning set forth in Section 6.5(b). 

“Enforcing Party” has the meaning set forth in Section 6.5(d). 

“Executive Steering Committee” has the meaning set forth in Section 7.1. 

“Existing Trademark” means the trademark set forth in Exhibit C. 

“FATCA” means Sections 1471 through 1474 of 26 U.S.C., as of the Effective Date (or any amended or successor version that is
substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreement entered into pursuant to Section 1471(b)(1) of 26 U.S.C. 

“FDA” means the United States Food and Drug Administration. 

“First Commercial Sale” means the first commercial sale of Product to a Third Party by or under authority of NT Pharma or any
of its Affiliates or sublicensees in a given jurisdiction after receiving Regulatory Approval for Product in such jurisdiction. 

“Force Majeure” has the meaning set forth in Section 12.1. 

“GAAP” means, with respect to a Person, United States generally accepted accounting principles, consistently applied by such
Person across its operations. 
 “Generic Product” means, with respect to the Reference Product, a pharmaceutical product
that (a) is therapeutically equivalent to the Reference Product, applying the definition of “therapeutically equivalent” set forth in the Preface to the current edition of the FDA publication “Approved Drug Products with
Therapeutic Equivalence Evaluations,” as such definition may be amended in the future, or applying a similar standard under the Applicable Law of such other applicable jurisdiction, and (b) has been approved by a Regulatory Agency based
upon an application that contains scientific evidence establishing, through in vitro or in vivo studies, the bioequivalence of such product to the Reference Product, such that such pharmaceutical product would be substitutable by a pharmacist for
the Reference Product when filling a prescription written for the Reference Product without having to seek authorization to do so from the physician writing such prescription. 

“Governmental Authority” means any supranational, national, regional, state, provincial, local or other government, or other
court of competent jurisdiction, legislature, governmental, administrative or regulatory agency, department, body, bureau, council or commission or any other supranational, national, regional, state, provincial, local or other

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

5 

 
governmental authority or instrumentality, including Regulatory Agencies, in each case having jurisdiction in any country or other jurisdiction. 

“Indemnification Notice” has the meaning set forth in Section 11.3(a). 

“Indemnification Objection” has the meaning set forth in Section 11.3(b). 

“Indemnified Party” has the meaning set forth in Section 11.3(a). 

“Indemnified Taxes” means Taxes imposed as a result of any assignment or transfer of any rights under this Agreement by any
Party to any Assignee (including by merger, liquidation or reorganization) on the other Party (the “Non-Assigning Party”), or on any payment under this Agreement to the Non-Assigning Party, other than Taxes imposed on or with respect to the Non-Assigning Party or required to be withheld or deducted from a payment to the Non-Assigning Party that are (a) imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case (i) imposed as a result of the Non-Assigning Party being organized under the laws of, or having its principal office in, the jurisdiction imposing such Taxes (or any political subdivision thereof) or (ii) that are imposed as a result of a
present or former connection between the Non-Assigning Party and the jurisdiction imposing such Tax (other than connections arising from the Non-Assigning Party having
executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced this Agreement), (b) attributable to the Non-Assigning Party’s failure to comply with Section 8.4(a) and (c) any U.S. federal withholding Taxes imposed under FATCA. The term Indemnified Taxes includes penalties, fines and other additional
statutory charges incidental or related to the imposition thereof, only to the extent not caused by the acts or omissions of the Non-Assigning Party. 

“Indemnify” has the meaning set forth in Section 11.1. 

“Indemnifying Party” has the meaning set forth in Section 11.3(a). 

“Infringement Notice” has the meaning set forth in Section 6.5(a). 

“Infringing Activity” has the meaning set forth in Section 6.5(a). 

“Intellectual Property” means all intellectual property or intangible rights anywhere in the world, including
(a) Patents, (b) trademarks, service marks, trade dress, trade names, Internet domain names, assumed names and entity names, together with the goodwill of the business associated with and symbolized by such trademarks, service marks, trade
dress, trade names and entity names, in each case whether or not registered, (c) published and unpublished works of authorship, whether copyrightable or not, including all statutory and common law copyrights associated therewith, (d) trade
secrets, and (e) Know-How. 
 “Inventions” has the meaning set forth in
Section 6.2. 
 “Inventory Sell Down Period” has the meaning set forth in Section 10.4(c). 

“IP Strategy” has the meaning set forth in Section 7.1. 

“Know-How” means technical information and materials, in any tangible or intangible
form whatsoever, including technology, reports, databases, data, results, analytical 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

6 

 
models, chemicals, inventions (patentable or otherwise), practices, methods, knowledge, techniques, specifications, formulations, formulae, know-how,
skill, experience, test data, including pharmacological, biological, chemical, biochemical, toxicological and clinical test data, analytical and quality control data, stability data, studies and procedures and patent and other legal information or
descriptions; provided, however, that Know-How shall exclude any Patents. 
 “Lien”
means any liens, claims, charges, pledges, security interests or other encumbrances of any nature whatsoever. 
 “Losses”
has the meaning set forth in Section 11.1. 
 “MAA” means a NDA or similar application to a Regulatory Agency to
obtain Regulatory Approval for Product in any jurisdiction outside the United States. 
 “Manufacturing Action” has the
meaning set forth in Section 6.4(a). 
 “Manufacturing Cost” means all internal and Third Party costs and expenses
incurred or accrued by Pfenex or its Affiliates allocable to the manufacture of Product, as calculated by Pfenex in accordance with its internal accounting practices applied on a consistent basis, including the allocation of direct and indirect
depreciation and overhead attributable to Product. 
 “NDA” means a New Drug Application filed with the FDA pursuant to 21
U.S.C. § 505(b) to obtain Regulatory Approval for Product in the United States. 
 “Net Sales” means, for a specified
period, the gross amounts invoiced by NT Pharma or its Affiliates or sublicensees for the sale or transfer of Product by NT Pharma or any of its Affiliates or sublicensees to Third Parties during such period, less the following deductions to the
extent charged as part of the invoiced price, or separately stated on the invoice or calculated as a function of the invoice price (without duplication, and to the extent not reimbursed by a Third Party): 

(a)    [***]; 

(b)    [***]; and 

(c)    [***]. 

For clarity, any Product that is provided for use as promotional samples or in connection with a compassionate use program, in each case at a
price at or below cost, is not subject to the definition of Net Sales, is not a “commercial sale” for purposes of this Agreement and shall not be taken into account in determining Average Sale Price. 

In the case of any sale or transfer of a Product to a non-Affiliate other than in a transaction
exclusively for cash, the Net Sales amount per unit shall be deemed to be the Average Sale Price for the calendar quarter in which such sale or transfer took place. 

With respect to a Bundled Product, the Net Sales of such Bundled Product shall first be calculated in accordance with the definition of Net
Sales above, and then the Net Sales of Product included in such Bundled Product shall be determined by multiplying the Net Sales of such Bundled Product by the fraction A/B where “A” is the Average Sale Price of the

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

7 

 
Product included as part of such Bundled Product as sold alone (i.e., without any other product(s) or service(s)) and “B” is the Average Sale Price of the Bundled Product. 

“Neutral” has the meaning set forth in Exhibit B. 

“NT Pharma” has the meaning set forth in the preamble to this Agreement. 

“NT Pharma Indemnitees” has the meaning set forth in Section 11.1. 

“NT Pharma’s Knowledge” means the actual knowledge of NT Pharma’s Chief Executive Officer, Chief Financial Officer,
Senior Director of Global Business, and Legal Head, in each case after reasonable inquiry and investigation, which shall include review of NT Pharma’s or each such person’s own records and inquiry of those employees who have primary
responsibility for the specific matter at issue. 
 “Other Business” has the meaning set forth in Section 3.7(b). 

“Packaging Specifications” means the packaging, labeling and branding specifications for Product. 

“Parties” means NT Pharma and Pfenex. 

“Party” means either NT Pharma or Pfenex. 

“Patent” means (a) any issued patent, including any inventor’s certificate, substitution, extension, confirmation,
reissue, reexamination, renewal or any like governmental grant for protection of inventions, and (b) any pending application for any of the foregoing, including any continuation, divisional, substitution, continuation-in-part, provisional and converted provisional application. 

“Person” means an individual, a partnership, a limited liability company, a corporation, an association, a joint stock
company, a trust, a joint venture, an unincorporated organization, a Governmental Authority or other entity of any kind. 

“Pfenex” has the meaning set forth in the preamble to this Agreement. 

“Pfenex Expression Technology” means Pfenex’s proprietary Pseudomonas fluorescens expression
platform technology used in the manufacture of biologic and other pharmaceutical products, including the development and production of strains used to manufacture such biologic and other pharmaceutical products, including through the optimization of
a nucleic acid sequence, together with all Intellectual Property related thereto. The Pfenex Expression Technology includes all Intellectual Property (including Patents) transferred or licensed to Pfenex under the Dow Technology Assignment Agreement
or the Dow Technology Licensing Agreement. 
 “Pfenex Housemark” has the meaning set forth in Section 6.1(c). 

“Pfenex Indemnitees” has the meaning set forth in Section 11.2. 

“Pfenex Know-How” means Know-How
Controlled by Pfenex or its Affiliates at any time during the Term that is useful for the operation of the Business in the Territory. 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

8 

 “Pfenex Patents” means Patents in the Territory Controlled by Pfenex
or its Affiliates at any time during the Term (a) claiming the composition of the Drug Substance (and Product) or (b) claiming methods of use, administration or formulation of the Drug Substance (and Product). A list of current Pfenex
Patents is set forth in that certain memorandum exchanged between the Parties before the Effective Date and referencing this Agreement. 

“Pfenex Technology” means, collectively, the Pfenex Know-How, the Pfenex Patents and
the Inventions, but excluding the Pfenex Expression Technology. 
 “Pfenex’s Knowledge” means the
actual knowledge of Pfenex’s Chief Executive Officer, Chief Financial Officer, Chief Business Officer, and Pfenex’s Senior Director of Upstream Processing and Intellectual Property (which is Diane Retallack on the Effective Date), in each
case after reasonable inquiry and investigation, which shall include review of Pfenex’s or each such person’s own records and inquiry of those employees who have primary responsibility for the specific matter at issue.  

“Prior Agreement” has the meaning set forth in Section 8.3. 

“Product” means any pharmaceutical product in final packaged form consisting of the Drug Substance as the sole active
pharmaceutical ingredient. 
 “Product Complaint” has the meaning set forth in Section 5.4. 

“Product Documentation” means all marketing and promotional literature, packaging inserts (including patient information
leaflets) and customer documentation applicable to Product. 
 “Product Financial Records” has the meaning set forth in
Section 4.7. 
 “Product License” has the meaning set forth in Section 2.1. 

“Product Records” has the meaning set forth in Section 3.3. 

“Product Specifications” means the product and performance specifications for Product, including Product formulae and
materials required for the manufacture of Product. 
 “Prosecution and Maintenance” means, with regard to a Patent, the
preparation, filing, prosecution and maintenance of such Patent, as well as re-examinations, reissues, requests for Patent term extensions and the like with respect to such Patent, together with the conduct of
interferences and inter partes actions, the defense of oppositions and other similar proceedings with respect to the particular Patent; and “Prosecute and Maintain” has its correlative meaning. 

“PV Agreement” has the meaning set forth in Section 5.9(a). 

“Quarterly Period” means a three (3) month period of each calendar year ending on March 31, June 30,
September 30 or December 31, except that the first Quarterly Period shall be a period commencing on the Effective Date and ending on June 30, 2018. 

“Reference Product” means Forsteo® and Forteo® (teriparatide), as branded and approved in the applicable jurisdiction. 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

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 “Registrations” means all permits, licenses, approvals and authorizations
granted by any Regulatory Agency with respect to Product (including the manufacture, handling, use, storage, import, transport, distribution, marketing, promotion or sale thereof). 

“Regulatory Agency” means any federal, state or local regulatory agency, department, bureau or other Governmental Authority
in the United States, the European Union or any other country, as applicable, including the FDA, the EMA and the SFDA, in each case that is responsible for Registrations necessary for, or otherwise governs, the manufacture, handling, use, storage,
import, transport, distribution or sale of Product. 
 “Regulatory Approval” means, with respect to Product in a given
country, all necessary Registrations from the applicable Regulatory Agency in such country to distribute, market, promote, sell and place on the market Product in such country. 

“Regulatory Commitment Activities” means any study of Product required by a Regulatory Agency to be conducted as a condition
of Regulatory Approval by such Regulatory Agency. 
 “Regulatory Materials” means regulatory applications (including
MAAs), submissions, notifications, communications, correspondence, Registrations or other filings made to, received from or otherwise conducted with any Regulatory Agency (including minutes of meetings with any Regulatory Agency) that are necessary
for or otherwise relate to the development, manufacture or commercialization of Product. 
 “Rolling Forecast” has the
meaning set forth in Section 5.1. 
 “Safety Reasons” means it is a Party’s reasonable belief that there is an
unacceptable risk for harm in humans based upon (a) preclinical safety data, including data from animal toxicology studies or (b) the observation of serious adverse effects in humans after Product has been administered to humans, such as
during a clinical study or after the First Commercial Sale of Product. 
 “SEC” has the meaning set forth in
Section 9.5. 
 “SFDA” means the State Food and Drug Administration of China, or any successor agency with a similar
scope of responsibility regarding the regulation of human pharmaceutical products in Mainland China. 
 “Solicitation
Action” has the meaning set forth in Section 8.5. 
 “Soliciting Party” has the meaning set forth in
Section 8.5. 
 “Subcontractor” has the meaning set forth in Section 3.2. 

“Subject Transaction” has the meaning set forth in Section 3.7(b). 

“Tax” or “Taxes” means any and all taxes, duties, imposts, charges, withholdings, rates, levies and other
governmental impositions and other taxes of any kind whatsoever imposed, assessed or charged. 
 “Taxed Party” has the
meaning set forth in Section 8.4(c). 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

10 

 “Taxing Authority” means any Governmental Authority responsible for the
imposition, assessment or collection of any Tax. 
 “Term” has the meaning set forth in Section 10.1. 

“Territory” means Mainland China, Hong Kong, Singapore, Malaysia and Thailand. 

“Territory Manufacturing Obligations” has the meaning set forth in Section 12.7. 

“Territory Medical Affairs Strategy” has the meaning set forth in Section 3.6(a). 

“Territory Product Trademark” has the meaning set forth in Section 6.1(a). 

“Third Party” means any Person other than a Party and such Party’s Affiliates. 

“Third Party Claim” has the meaning set forth in Section 11.1. 

“Timeline” has the meaning set forth in Section 3.1(a)(i). 

“Trademark License” has the meaning set forth in Section 6.1(a). 

“Transfer Taxes” has the meaning set forth in Section 8.4(d). 

“United States” means the United States of America, including the District of Columbia, Puerto Rico and all other territories
and possessions of the United States of America. 
 “Upfront Payment” has the meaning set forth in Section 4.1. 

“U.S. Collaborator” has the meaning set forth in Section 12.7. 

“Working Committee” has the meaning set forth in Section 7.1. 

ARTICLE II. 
 GRANT OF
LICENSE 
 Section 2.1    Product License.    Subject to the terms and conditions of this
Agreement, Pfenex hereby grants to NT Pharma (a) an exclusive license under the Pfenex Technology to commercialize, promote, market, offer for sale, sell and distribute Product in the Territory during the Term and (b) a non-exclusive license under
the Pfenex Technology to conduct development activities in the Territory with respect to Product during the Term (collectively, the “Product License”). The Product License shall be transferable solely in accordance with Section 12.7
and sublicensable solely in accordance with Section 2.2. For clarity, the Parties agree and acknowledge that the Product License does not include any right to make or have made Drug Substance or Product or to access or use the Pfenex Expression
Technology, except that NT Pharma shall have the right to use information related to the Pfenex Expression Technology provided pursuant to Section 3.1(b) to the extent necessary for NT Pharma to deal with regulatory affairs and medical affairs,
promote and market the Product, and perform its other obligations and exercise its other rights provided under this Agreement in the Territory. Upon the request by either Party, the Parties shall discuss in good faith the necessary amendments to
this Agreement to expand the scope of the Product License to Product in bulk form and to the supply agreement and quality agreement referenced in 

  
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document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

11 

 
Section 5.1. Pfenex confirms that irrespective of whether or not the Parties have expanded the Product License to Product in bulk form, during the Term it will not, nor will it license,
authorize or assist any Affiliate or Third Party to import, commercialize, promote, market, offer for sale, sell or distribute Product in bulk form in the Territory. 

Section 2.2    Sublicenses. The Product License includes the right to sublicense within the scope thereof in
accordance with this Section 2.2. If NT Pharma intends to grant a candidate a sublicense with respect to a portion of the Product License that is related to the application or maintenance of the Regulatory Approval in a jurisdiction within the
Territory, it shall serve Pfenex a 30-day prior notice setting out the identity of such sublicensee, and (a) if the contemplated sublicense is with respect to Regulatory Approval in Mainland China, NT
Pharma shall not grant such sublicense without Pfenex’s prior written consent, which is not to be unreasonably withheld, delayed or conditioned, and (b) if the contemplated sublicense is with respect to any jurisdiction outside Mainland
China, NT Pharma shall give due consideration to any objection that may be raised by Pfenex within 30 days, but NT Pharma shall have the right to make a final decision as to whether to grant the sublicense at issue except that if Pfenex raises an
objection for reason that the contemplated sublicense is likely to render Pfenex not compliant with Applicable Law, in which situation NT Pharma shall not grant the sublicense without Pfenex’s prior written consent. For clarity, it is
understood and agreed that NT Pharma may choose and use distributors in the Territory at its discretion, provided that (A) NT Pharma remains primarily responsible for the activities of any such distributors, (B) NT Pharma (or its
Affiliate) (I) books sales of Product in each country in the Territory in accordance with NT Pharma’s ordinary course of business, and (II) remains primarily responsible for the marketing and promotion of Product in the Territory,
which will be under the Existing Trademark or other trademarks Controlled by NT Pharma or its Affiliates, and (C) any distributor that is granted the right to apply for or maintain the Regulatory Approval in a jurisdiction of the Territory
shall be subject to the restrictions on sublicensing in this Section 2.2. With respect to any sublicense granted by NT Pharma in accordance with this Section 2.2: 

(a)    NT Pharma shall promptly notify Pfenex of the grant of each sublicense and provide Pfenex a copy of the final
executed sublicense agreement, which copy may be redacted with respect to information not pertinent to this Agreement; 

(b)    NT Pharma shall be responsible for the failure by its sublicensees to comply with all relevant restrictions,
limitations and obligations in this Agreement; and 
 (c)    NT Pharma shall also have the right to sublicense the
Trademark License granted pursuant to Section 6.1(a), provided that such sublicense shall be (i) granted to the applicable sublicensee in conjunction with a sublicense under the Product License granted pursuant to this Section 2.2 and
(ii) subject to the terms and conditions of this Section 2.2. 
 Section 2.3    No Implied
Licenses; Retained Rights. Each Party acknowledges that the rights and licenses granted under this Article II and elsewhere in this Agreement are limited to the scope expressly granted. Accordingly, except for the rights expressly granted
under this Agreement, no right, title, or interest of any nature whatsoever is granted whether by implication, estoppel, reliance or otherwise, by either Party to the other Party. Without limiting the obligations hereunder (including the exclusivity
set forth in Section 3.7), all rights with respect to Know-How, Patents or other Intellectual Property that are not specifically granted herein are reserved to the owner thereof, and specifically, Pfenex retains

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

12 

 
all rights under the Pfenex Technology to (a) commercialize, promote, market, offer for sale, sell and distribute Product outside the Territory, (b) conduct development activities with
respect to Product worldwide, to support development and commercialization of Product outside the Territory, and (c) to make and have made Drug Substance and Product. NT Pharma agrees that it will not, and it will ensure that its Affiliates
will not, and it will not grant any sublicensee the right to, use or otherwise exploit the Pfenex Technology, except as expressly licensed and permitted in this Agreement. 

ARTICLE III. 
 PRODUCT
DEVELOPMENT 
 Section 3.1    Development Efforts. 

(a)    NT Pharma Responsibilities. 

(i)    Within ninety (90) days after the Effective Date, the Executive Steering Committee (by consensus of the
Parties and without regard to any final decision-making authority of either Party as set forth in Section 7.4(b)(i) and Section 7.4(b)(ii)) shall determine and set forth in writing a timeline listing the key activities of, and the
milestones to be achieved by Pfenex and NT Pharma, respectively, with respect to the development of and Regulatory Approval for Product in Mainland China and the targeted completion date for each such activity and milestone (the
“Timeline”); however, it is understood that such activities and milestones for which Pfenex is responsible under the Timeline shall be limited to delivery of appropriate sections of the NDA pursuant to Section 3.1(b), the
manufacture of Product for clinical development (if applicable) pursuant to Section 5.1, and the other activities or obligations of Pfenex as expressly provided in this Agreement. The Parties acknowledge that one Party’s commencement or
completion of certain activities or milestones may be conditioned on the other Party’s completion of certain activities or provision of certain items, as may be specified in the Timeline. NT Pharma shall use Commercially Reasonable Efforts to
develop Product as necessary to obtain and maintain, at its own cost, Regulatory Approvals for Product in each country within the Territory, in accordance with the Timeline in the case of Mainland China. 

(ii)    NT Pharma shall develop the Product in the Territory (including the conduct of the China Clinical Study, if
required) in a good scientific manner and in accordance with cGxP of the applicable jurisdiction to the extent cGxP is applicable to such activities, to achieve such objectives efficiently and expeditiously, in compliance with all Applicable Laws.
NT Pharma shall keep Pfenex reasonably informed as to NT Pharma’s (and its Affiliates’) planned activities (including written development plans with estimated timelines) and progress with respect to the development and regulatory affairs
relating to Product through quarterly updates to the Executive Steering Committee. 
 (iii)    Pfenex will have the
right to terminate this Agreement and receive a termination fee in the amount of [***] in accordance with Section 10.2(a)(iii), should NT Pharma fail to comply with the Timeline, unless such failure is due to circumstances outside of NT
Pharma’s reasonable control or due to Pfenex’s breach of this Agreement. 
 (iv)    NT Pharma shall cooperate
and provide Pfenex with reasonable assistance in connection with the performance by Pfenex of its obligations under Section 3.1(b). 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

13 

 (b)    Pfenex Responsibilities. Pfenex shall, promptly but
no later than ten (10) days following submission to the FDA, which Pfenex anticipates will be no later than [***], provide NT Pharma with appropriate sections of the NDA for Product and, upon the request of NT Pharma, provide NT Pharma with
such additional records, documents, data and other information in its possession or control related to the development of Product, as may be reasonably requested by NT Pharma to perform its obligations or exercise its rights under this Agreement,
provided, however, that Pfenex shall not be required to provide any manufacturing records or laboratory notebooks unless that information is necessary for NT Pharma to obtain Regulatory Approval in the Territory. Such records, documents, data and
other information provided by Pfenex shall remain the sole property of Pfenex, shall be deemed to be the Confidential Information of Pfenex, shall not be used by NT Pharma for any purpose other than the development and commercialization of Product
in the Territory in accordance with this Agreement and shall be provided to NT Pharma in such form as maintained by or on behalf of Pfenex in the ordinary course of business, and Pfenex shall not be obligated to provide any translations. Pfenex
shall also provide necessary training and advice to NT Pharma to enable it to understand the records, documents, data and other information so provided by Pfenex, including providing necessary on-site
technical guidance and support, provided that NT Pharma shall reimburse Pfenex for its reasonable out-of-pocket costs incurred in providing such training and advice.
Until such time as NT Pharma submits a MAA to the SFDA for Product in Mainland China, if Pfenex fails to provide in a timely fashion any material information or documentation in its possession or control that is reasonably requested in writing by NT
Pharma, NT Pharma reserves the right to terminate the Agreement and receive a payment in the amount of Two Million Five Hundred Thousand Dollars ($2,500,000.00) in accordance with Section 10.2(b)(v). Pfenex shall keep NT Pharma reasonably
informed as to Pfenex’s progress with respect to its development activities relating to Product through quarterly updates to the Executive Steering Committee at its meetings. Pfenex shall cooperate and provide NT Pharma with reasonable
assistance in connection with the performance by NT Pharma of its obligations under Section 3.1(a). 

Section 3.2    Subcontracting. NT Pharma may subcontract to Affiliates or Third Parties (each, a
“Subcontractor”) any portion of its responsibilities with respect to development of Product in the Territory. Each Subcontractor shall enter into a written agreement with NT Pharma pursuant to which such Subcontractor shall
(a) be bound by obligations of confidentiality and non-use with respect to the Confidential Information of Pfenex or otherwise relating to Product at least as protective as the obligations set forth in
Section 8.1 through Section 8.3, (b) be bound by obligations with respect to Intellectual Property sufficient to enable NT Pharma to comply with the terms and conditions of this Agreement as if NT Pharma completed any such
subcontracted activity itself, (c) be required to make representations and warranties with respect to debarment comparable to the representations and warranties made by NT Pharma under Section 9.2(g), (d) be obligated to provide notice to
NT Pharma upon becoming the subject of any investigation or debarment proceeding that could lead to such Subcontractor becoming a Debarred Entity or Debarred Individual and (e) be required to comply with all Applicable Laws, including, if
applicable, cGxP. NT Pharma shall supervise and be responsible under this Agreement for the work of any such Subcontractor. No subcontracting of any obligation or activity under this Agreement shall relieve NT Pharma of any of its obligations or
responsibilities under this Agreement. 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

14 

 Section 3.3    Records; Audit Rights. NT Pharma shall, and
shall cause each Subcontractor engaged pursuant to Section 3.2 to, maintain complete and accurate books and records, in sufficient detail (and in good scientific manner appropriate for patent and regulatory purposes, when applicable) and for
purposes of demonstrating compliance with the terms hereof, that fully and properly reflect all work done and results achieved with respect to development of Product (the completion of which is evidenced by the obtaining of Regulatory Approval) and
maintenance of Regulatory Approval in each country within the Territory (the “Product Records”). NT Pharma shall retain all Product Records that it possesses or obtains through any arrangement with Subcontractors for a period of at
least three (3) years or for such longer period to the extent required by Applicable Law. During such period, upon the written request of Pfenex, the Product Records possessed by NT Pharma or obtained by NT Pharma through arrangements with
Subcontractors shall be subject to inspection and audit by and at the expense of Pfenex no more than once in any Annual Period (or more frequently upon demonstration of reasonable cause). Such audits shall occur upon reasonable notice and during
normal business hours by an independent auditor selected by Pfenex and confirmed by NT Pharma in advance, which confirmation shall not be unreasonably withheld or delayed. Pfenex shall treat all information received or subject to review under this
Section 3.3 as Confidential Information of NT Pharma in accordance with the provisions of Article VIII. Pfenex shall cause its independent auditor to enter into, before the commencement of the audit, a confidentiality agreement, in form and
substance reasonably acceptable to NT Pharma, to maintain such records and information of NT Pharma in confidence in accordance with Article VIII and not use such records or information except to the extent permitted by this Agreement, including any
enforcement of the provisions hereof. 
 Section 3.4    Regulatory Affairs. 

(a)    Filing for Regulatory Approvals. NT Pharma shall use Commercially Reasonable Efforts to obtain and maintain,
solely in its own name (or the name of one of its Affiliates or Third Party designees) in all countries in the Territory other than Mainland China and in the name of Pfenex Inc. in Mainland China, and at NT Pharma’s own cost, all Regulatory
Approvals for Product in each country within the Territory. Pfenex, as the registered holder of the Regulatory Approval of the Product in Mainland China, shall take all actions and execute all documents as necessary to enable NT Pharma to submit the
filing to the SFDA and obtain the Regulatory Approval in Mainland China in the name of Pfenex Inc. If at any time NT Pharma is allowed by Applicable Law to register itself or one of its Affiliates or a Third Party designee as the holder of the
Regulatory Approval for the Product in Mainland China, then upon the request by NT Pharma and approval by Pfenex, such approval not to be unreasonably withheld, delayed or conditioned, Pfenex shall take all actions and execute all documents as
reasonably necessary to register NT Pharma or its designated Affiliate or Third Party as holder of Regulatory Approval for the Product in Mainland China, at NT Pharma’s expense.  

(b)    Ownership of Regulatory Approvals; Regulatory Cooperation. NT Pharma (or its Affiliates or Third Party
designees) shall solely own all Regulatory Approvals with respect to Product in the Territory (except that the Regulatory Approval registered in the name of Pfenex Inc. with respect to Product in Mainland China shall be owned by Pfenex pursuant to
Section 3.4(a)), and shall have the right to control filing or submission of Regulatory Materials in order to obtain and maintain such Regulatory Approvals, subject to Section 5.6 and the oversight of and in consultation with the

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

15 

 
Executive Steering Committee. Accordingly, prior to the filing of any Regulatory Materials (including any MAA) for Product with any Regulatory Agency in the Territory, NT Pharma shall provide a
copy thereof to Pfenex (through the Executive Steering Committee) for its review and comment. Pfenex shall have fifteen (15) Business Days from the date Pfenex receives a copy of any Regulatory Materials to provide NT Pharma with comments
regarding such Regulatory Materials and NT Pharma shall consider all such comments in good faith. NT Pharma shall be responsible for managing all communications and interactions with Regulatory Agencies with respect to Product in the Territory;
provided that NT Pharma shall, to the extent permitted by Applicable Law, provide Pfenex with (i) reasonable advanced notice (and in no event less than fifteen (15) Business Days’ advance notice whenever feasible) of substantive
meetings with any Regulatory Agency in the Territory that are either scheduled with or initiated by or on behalf of NT Pharma or its Affiliates; (ii) an opportunity to have a reasonable number (but at least one (1)) representative participate
in all substantive meetings with any such Regulatory Agency, and in any case keep Pfenex informed as to all material interactions with any such Regulatory Agency; and (iii) a copy of any material documents, information and correspondence
submitted to any Regulatory Agency as soon as reasonably practicable. 
 (c)    Use of Regulatory Materials. 

(i)    To the extent permitted by Applicable Law and necessary or useful to obtain or maintain any Regulatory Approval for
Product in the Territory, NT Pharma shall have a right to refer to and use in filing for Regulatory Approval with Regulatory Agencies in the Territory, all (i) regulatory filings, (ii) regulatory approvals and (iii) documents,
information and data contained in such filings or approvals, which Pfenex has used or filed with or produced to a Regulatory Agency with respect to Product or the Pfenex Technology. Pfenex shall submit and file with the applicable Regulatory Agency
all documents necessary or advisable to grant to NT Pharma such rights to such filings, approvals, documents, information or data, subject in each case to the requirements and restrictions of the applicable Regulatory Agency. NT Pharma may
sublicense the right of reference set forth in this Section 3.4(c)(i) to its sublicensees in the Territory in accordance with Section 2.2. 

(ii)    To the extent permitted by Applicable Law and necessary or useful to obtain or maintain any Regulatory Approval
for Product outside the Territory, Pfenex shall have a right to refer to and use in filing for Regulatory Approval with Regulatory Agencies outside the Territory, all (i) regulatory filings, (ii) regulatory approvals and
(iii) documents, information and data contained in such filings or approvals, which NT Pharma has used or filed with or produced to a Regulatory Agency in the Territory with respect to Product or the Pfenex Technology. If any of the documents,
information and data provided in the preceding sentence are submitted directly to any Regulatory Agency outside the Territory by Pfenex or any of its other licensees or enable Pfenex or any of its other licensees to apply for Regulatory Approval in
any jurisdiction outside the Territory without the need to conduct human clinical studies, Pfenex shall reimburse NT Pharma for a portion of the out-of-pocket expenses
incurred by NT Pharma during the Product development process for developing such documents, information or data, and the specific amount will be discussed and agreed by the Parties in good faith. All documents, data and information provided by NT
Pharma under this Section 3.4(c)(ii), except in the case of information originally provided to NT Pharma by or on behalf of Pfenex, shall remain the sole property of 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

16 

 
NT Pharma, shall be deemed to be the Confidential Information of NT Pharma, and shall not be used by Pfenex for any purpose other than the development and commercialization of Product outside the
Territory, and NT Pharma shall not be obligated to provide any translations. NT Pharma shall submit and file with the applicable Regulatory Agency all documents necessary or advisable to grant to Pfenex such rights to such filings, approvals,
documents, information or data, subject in each case to the requirements and restrictions of the applicable Regulatory Agency. Pfenex may sublicense the right of reference set forth in this Section 3.4(c)(ii) to a licensee solely for use in
connection with the development, manufacture or commercialization of Product outside the Territory provided that Pfenex has obtained from that licensee, for the benefit of NT Pharma, a right of reference of comparable scope as set forth in
Section 3.4(c)(i), mutatis mutandis, to the extent permitted by Applicable Law. 
 (iii)    Each Party
disclaims any representation or warranty that any filings, approvals, documents, information or data provided as set forth in this Section 3.4(c) shall meet the requirements of any particular country, or that such filings, approvals, documents,
information or data shall be adequate or usable by the other Party in connection with seeking any Regulatory Approval in any particular country. 

(d)    Regulatory Assistance. 

(i)    Pfenex shall cooperate and provide NT Pharma with reasonable assistance in connection with the exercise by NT
Pharma of its rights and performance by NT Pharma of its obligations under this Section 3.4 and, in connection therewith, Pfenex shall provide to NT Pharma all Product dossiers and other information that are in Pfenex’s possession or
control (in such form as maintained by or on behalf of Pfenex in the ordinary course of business, and without obligation to provide any translations) and reasonably requested by NT Pharma for purposes of applying for and obtaining Regulatory
Approvals for Product in the Territory, and NT Pharma shall be entitled to use such dossiers and other information for such purpose. 

(ii)    NT Pharma shall cooperate and provide Pfenex with reasonable assistance in connection with the exercise by Pfenex
of its rights and performance by Pfenex of its obligations under this Section 3.4 and, in connection therewith, NT Pharma shall provide to Pfenex all Product dossiers and other information that are in NT Pharma’s possession or control (in
such form as maintained by or on behalf of NT Pharma in the ordinary course of business, and without obligation to provide any translations) and reasonably requested by Pfenex for purposes of applying for and obtaining Regulatory Approvals for
Product outside the Territory, and Pfenex shall, subject to the payment requirement provided in Section 3.4(c)(ii) (if applicable), be entitled to use such dossiers and other information for such purpose. 

Section 3.5    Commitment Activities. 

(a)    NT Pharma Responsibilities.    NT Pharma shall have the exclusive right to control and
shall be responsible for (i) all Regulatory Commitment Activities and post-marketing surveillance studies and data collection and analysis with respect to Product in the Territory; (ii) all pharmacovigilance activities with respect
to Product in the Territory (subject to the PV Agreement); and (iii) all medical investigations and evaluations and the reporting of adverse events related to Product in the Territory, in each case (clauses (i) – (iii)) as
required under Applicable Law or by any Regulatory Agency in 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

17 

 
the applicable jurisdictions (collectively, the “Commitment Activities”). NT Pharma shall bear the expense of all Commitment Activities. 

(b)    Pfenex Assistance. Pfenex shall cooperate and provide NT Pharma with reasonable assistance in
connection with the performance by NT Pharma of its obligations under this Section 3.5, including providing NT Pharma with access to manufacturing and or clinical study sites, records, documents, data and other information related to any
manufacturing batch, or preclinical or clinical study conducted by or on behalf of Pfenex hereunder to the extent reasonably necessary in connection with the Commitment Activities, including batch records, protocols, statistical analysis plans,
final clinical study reports and clinical study enrollment information, progress, results and data generated in scientific studies or memorialized in laboratory notebooks with respect to Product. 

Section 3.6    Medical Affairs. 

(a)    Medical Affairs Strategy. NT Pharma shall have the exclusive right to control, and shall use Commercially
Reasonable Efforts to conduct, a comprehensive strategy of all medical affairs matters relating to Product in the Territory (the “Territory Medical Affairs Strategy”), including with respect to (i) the preparation of any
publication based on data and other information relating to any trial or study with respect to Product in the Territory, or (ii) the planning and implementation of congress participations, medical education programs and key opinion leader or
advisory board meetings with respect to Product in the Territory. NT Pharma shall bear the expense with respect to conducting the Territory Medical Affairs Strategy. 

(b)    Pfenex Assistance. Pfenex shall cooperate and provide NT Pharma with reasonable assistance in
connection with the performance by NT Pharma of its obligations under this Section 3.6. 
 Section 3.7    Non-Competition.  
 (a)     Competing Products.
Notwithstanding anything contained herein to the contrary, neither NT Pharma nor its Affiliates shall, directly or indirectly, itself, through an Affiliate or otherwise, (i) research, develop, obtain Regulatory Approval for (or take any actions
directed thereto), manufacture, market, import, offer for sale, sell or otherwise commercialize (including through a distributor or other Third Party) any Competing Product during the Term or (ii) authorize or assist (including by
investing in or otherwise providing funding to) any Third Party to do any of the foregoing. 
 (b)    Post
Effective-Date Affiliates. In the event that, after the Effective Date, NT Pharma enters into any transaction (a “Subject Transaction”) whereby a Third Party that is engaged in activities that would otherwise be prohibited by
Section 3.7(a) (the “Competing Activities”) becomes an Affiliate of NT Pharma or merges with NT Pharma (such Affiliate or, in the event of a merger, the portion of the business which is not NT Pharma’s business immediately
prior to the Subject Transaction, the “Other Business”), NT Pharma shall provide notice to Pfenex within five (5) Business Days of the closing of the Subject Transaction, specifying the identity of the Other Business and
describing in reasonable detail, to the extent permitted by Applicable Law and without disclosing any proprietary information, the Competing Activities and their focus. Such notice shall also state whether NT Pharma elects to: (A) Divest the
Competing Activities; (B) assign all of 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

18 

 
its rights and obligations under this Agreement to a Third Party (and such assignment shall not require the prior written consent of Pfenex pursuant to Section 12.7, provided that such Third
Party has capabilities to fulfill all of the obligations of NT Pharma under this Agreement; (C) keep separate all of the Competing Activities not so included within the activities under this Agreement; or (D) cease engaging in the
Competing Activities within ninety (90) days following the consummation of the Subject Transaction; provided that: 

(i)    NT Pharma shall not have the right to make the election described under clause (C) above if [***] of the
Other Business’ business immediately prior to the Subject Transaction consists of the Competing Activities (as measured by the percentage of both research and development expenditures and revenue with respect to the Competing Activities when
compared to the research and development expenditures or revenue, as applicable, of the Other Business in total for the trailing twelve month period ending upon the consummation of the Subject Transaction). 

(ii)    In the event NT Pharma elects the option described in clause (C) above, then (I) NT Pharma shall not
have the right to exercise any of its rights or fulfill any of its obligations under this Agreement through such Other Business, (II) such Other Business shall not receive any license or other right under any Pfenex Technology for any Competing
Activities, (III) Pfenex shall not have any license under any Patents or Know-How Controlled by the Other Business that was not licensed to Pfenex prior to the Subject Transaction, (IV) NT Pharma
shall maintain capacity and resources that are reasonably necessary to fulfill its obligations under this Agreement, to the extent NT Pharma was required to maintain such capacity and resources had the Subject Transaction not occurred, and
(V) NT Pharma shall use its Commercially Reasonable Efforts to put procedures and mechanisms in place to separate its activities under this Agreement and the Competing Activities, including preventing any disclosure of the Confidential
Information of Pfenex to the Other Business and to prevent receipt or use for activities under this Agreement of any technology or proprietary information of the Other Business. 

(iii)    In the event NT Pharma elects the option described in clause (A) or (B) above, then NT Pharma shall Divest
the Competing Activities or all of its rights and obligations under this Agreement (as applicable, the “Divestible Asset”) as soon as reasonably practicable following the Subject Transaction. For purposes of this
Section 3.7(b), “Divest” means, with respect to the Divestible Asset, (I) the sale, exclusive license or other transfer of all of the right, title and interest in and to such Divestible Asset, including all Intellectual
Property and other assets relating solely thereto, to a Third Party (other than the Other Business), without the retention or reservation of any rights, license or interest (other than solely an economic and other customary termination interests) by
NT Pharma or Other Business in such Divestible Asset, and (II) the complete shutdown of the Divestible Asset such that no Intellectual Property or other asset solely relating thereto is used by NT Pharma or its Affiliates and delivery of
written confirmation from NT Pharma to Pfenex that NT Pharma and its Affiliates covenant not to use any Intellectual Property and assets solely relating to such Divestible Asset. 

Section 3.8    Divestment of Assets by Pfenex.    Pfenex shall not transfer any of its
assets or rights to a Third Party or engage in any other kind of transaction with a Third Party that may render Pfenex unable to fully perform its obligations under this Agreement (except for the situation described in Section 12.7), unless
approved in writing by NT Pharma. 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

19 

 ARTICLE IV. 

PAYMENTS 

Section 4.1    Upfront License Payment. NT Pharma shall pay to Pfenex a
one-time, non-refundable (except as provided in Section 10.2(b)(v)) upfront license payment in the amount of Two Million Five Hundred Thousand Dollars ($2,500,000)
(the “Upfront Payment”), such amount to be paid on the Effective Date. 

Section 4.2    Development Milestone Payment. In further consideration of NT Pharma’s rights under this
Agreement, NT Pharma shall pay to Pfenex a one-time, non-refundable milestone payment in the amount of [***] within five (5) Business Days following [***]. 

Section 4.3    Sales Milestone Payment. In further consideration of NT Pharma’s rights under this
Agreement, NT Pharma shall pay to Pfenex a one-time, non-refundable milestone payment in the amount of [***] following [***]. 

Section 4.4    Royalties. 

(a)    Commencing on the date on which the First Commercial Sale with respect to Product occurs in the Territory and
continuing so long as there are Net Sales, NT Pharma shall pay to Pfenex a royalty for each Quarterly Period in a given Annual Period in an amount equal [***] of Annual Net Sales of Product in the Territory during such Annual Period. 

(b)    Within forty-five (45) days following the end of each Quarterly Period, NT Pharma shall pay to Pfenex all
amounts payable pursuant to this Section 4.4 by wire transfer of immediately available funds to the account designated by Pfenex. 

Section 4.5    Reports. 

(a)    With respect to every Quarterly Period for which NT Pharma is obligated to make any payments under Section 4.4,
NT Pharma shall furnish to Pfenex a written report for such Quarterly Period within thirty (30) days after the end of such Quarterly Period showing in reasonably specific detail: 

(i)    the total gross amounts invoiced for Product sold by NT Pharma or its Affiliates or sublicenses and the
calculation of Net Sales for Product during such Quarterly Period, including amounts deducted by category from gross amounts invoiced to arrive at Net Sales; 

(ii)    the exchange rates used in determining any payment amount in Dollars; and 

(iii)    the total amounts due to Pfenex under Section 4.4. 

(b)    With respect to sales of Product invoiced in Dollars, the gross sales, Net Sales (including all deductions
permitted to be made hereunder in calculating the same) shall be expressed in Dollars. With respect to any sale of Product invoiced in a currency other than Dollars, the gross sales, Net Sales (including all deductions permitted to be made hereunder
in calculating the same) shall be expressed in their Dollar equivalent, calculated using the foreign currency exchange rate for the applicable currency 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

20 

 
used by NT Pharma in the ordinary course of business to publicly report its financial results. 

Section 4.6    Payment Terms. All payments under this Agreement shall be made in Dollars and, unless otherwise
provided herein, shall be (a) due within forty-five (45) days from the date of invoice and (b) non-refundable and non-creditable. Any payments or portions
thereof due hereunder which are not paid when due shall bear interest equal to the lesser of the rate equal to the thirty (30) day U.S. dollar LIBOR rate effective for the date that payment was due, as published by The Wall Street
Journal, Internet Edition at www.wsj.com in the “Money Rates” column, plus an additional annual interest rate of two percent (2%), or the maximum rate permitted by Applicable Law, calculated on the number of days such payment is
delinquent. This Section 4.6 shall in no way limit any other non-monetary remedies available to either Party. 

Section 4.7    Records; Audit Rights. NT Pharma shall, and shall cause its Affiliates and sublicensees (as
applicable) to, maintain complete and accurate books and records, in sufficient detail to confirm the accuracy of payments with respect to royalties under this Agreement (the “Product Financial Records”). NT Pharma shall retain all
Product Financial Records for a period of at least three (3) years or for such longer period to the extent required by Applicable Law. During such period, upon the written request of Pfenex, the Product Financial Records possessed by, or
reasonably available to, NT Pharma shall be subject to inspection and audit by and at the expense of Pfenex no more than once in any Annual Period (or more frequently upon demonstration of reasonable cause). Such audits shall occur upon reasonable
notice and during normal business hours by an independent auditor selected by Pfenex and confirmed in advance by NT Pharma, which confirmation shall not be unreasonably withheld or delayed. Pfenex shall treat all information received or subject to
review under this Section 4.7 as Confidential Information of NT Pharma in accordance with the provisions of Article VIII. Pfenex shall cause its independent auditor to enter into, before the commencement of such audit, a confidentiality
agreement, in form and substance reasonably acceptable to NT Pharma, to maintain such records and information of NT Pharma in confidence in accordance with Article VIII and not use such records or information except to the extent permitted by this
Agreement, including any enforcement of the provisions hereof. If any such audit reveals that NT Pharma has failed to accurately make any payment required under this Agreement, then NT Pharma shall promptly pay to Pfenex any underpaid amounts due
under this Agreement, together with interest calculated as set forth in Section 4.6, or Pfenex shall promptly pay to NT Pharma any overpaid amounts paid under this Agreement, as the case may be. If any such audit reveals an underpayment of
amounts due under this Agreement greater than five percent (5%) of the amounts actually due for any Annual Period, then NT Pharma shall pay the reasonable out-of-pocket
costs incurred in conducting such audit. 
 ARTICLE V. 

MANUFACTURE OF PRODUCT; PHARMACOVIGILANCE; SALES AND 

MARKETING 
 Section 5.1
    Manufacturing Responsibility. Pfenex shall be responsible for and control the manufacturing of Product (including Drug Substance) for development and commercialization in the Territory and shall control the
procurement, manufacture, and qualification of the Components required for the manufacture of such Product, for supply to NT Pharma in accordance with this Agreement. In connection therewith, Pfenex may elect to manufacture, fill and package Product
itself or engage one or more Third Parties to 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

21 

 manufacture, fill or package Product on its behalf. The transfer price of Product supplied by Pfenex to NT
Pharma shall be [***]. [***], which amounts shall be adjusted annually based on the percentage increase or decrease in the most recent calendar year Producer Price Index, Industry: Pharmaceutical Preparations, Series ID: PCU2834# (N), as published
by the U.S. Department of Labor, Bureau of Labor Statistics. [***]. Not later than nine (9) months prior to the estimated date of obtaining Regulatory Approval for Product in Mainland China, the Parties shall in good faith negotiate and enter
into a supply agreement and a quality agreement with respect to the supply of Product by Pfenex to NT Pharma, containing provisions for the transfer price as set forth in this Section 5.1 and other terms and conditions typical in such
agreements and consistent with the terms of this Agreement. 
 Section 5.2    Product Packaging and
Labeling. Subject to Section 6.1, NT Pharma shall control the content and type of all Packaging Specifications (and any changes or supplements thereto) for Product in the Territory, and shall be responsible, at its own expense, for
performing any repackaging with respect to the secondary packaging of the Product as necessary to comply with Applicable Law or commercial requirements in the Territory. 

Section 5.3    Product Documentation. Subject to Section 6.1, NT Pharma shall control the content and
type of, and procurement of, at its own expense, all Product Documentation (and any changes or supplements thereto) for Product in the Territory. 

Section 5.4    Non-Medical Product Complaints. Pfenex, shall have the
exclusive right to control, and shall be responsible for, the management of (including the preparation of all responses with respect to) all Product complaints received from a Third Party (each, a “Product Complaint”) related
to manufacturing or packaging of Product for development or commercialization in the Territory and, in connection therewith, NT Pharma shall provide all reasonable assistance requested by Pfenex in connection with its preparation of the response to
such Product Complaints at Pfenex’s cost and expense. 
 Section 5.5    Product Recalls. NT Pharma
shall, at its sole expense, have the exclusive right to control, and shall be responsible for, any recall of Product in the Territory, with the cooperation and assistance of Pfenex. Notwithstanding the foregoing, if the recall is caused by a defect
in the Product (a) for which Pfenex is responsible under the supply agreement or the quality agreement as provided above in Section 5.1, or (b) due to a breach of Applicable Law, negligent act or willful misconduct of Pfenex or its
Affiliates (including their subcontractors, if applicable), then all the costs and expenses for the recall and any related fines and penalties shall be borne by Pfenex. 

Section 5.6    Registrations. Pfenex shall, at its sole expense, obtain and maintain all Registrations with
respect to the manufacture of the Product for development and commercialization in the Territory. Pfenex hereby represents and warrants that, to Pfenex’s Knowledge, as of the Effective Date, it is not aware of any such Registrations specific to
any portion of the Territory. NT Pharma (a) hereby represents and warrants that, to NT Pharma’s Knowledge, as of the Effective Date, it is not aware of any such Registrations specific to any portion of the Territory and (b) agrees
that, in the event that Pfenex is required by Applicable Law to obtain any such Registration(s) specific to any portion of the Territory, NT Pharma shall pay for the costs of obtaining and maintaining such Registration(s). 

Section 5.7    Regulatory Inspections. Except as otherwise provided herein, Pfenex shall be responsible, at
its sole expense, for handling and responding to all Regulatory 

  
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Agency inspections with respect to Pfenex’s manufacture of Product. To the extent that Pfenex requires the assistance of NT Pharma in order to fulfill its obligations pursuant to this
Section 5.7, NT Pharma shall reasonably cooperate with and assist Pfenex in connection therewith. 

Section 5.8    Product Pricing and Promotion; Agency Contacts. 

(a)    Subject to Section 6.1, NT Pharma shall, at its sole expense, have the exclusive right to control, and shall be
responsible for, the advertising, marketing, promotion (including preparing and distributing Product Documentation), sales prices and pricing, promotional and marketing strategies and terms of sale for Product in the Territory. NT Pharma shall be
the contact for review and discussion of all Product Documentation for Product with the applicable Governmental Authorities in the Territory. 

(b)    If NT Pharma or any of its Affiliates sells Product to a Third Party to whom it also sells or otherwise provides
other products or services (which are not Bundled Products), NT Pharma and its Affiliates shall not shift, allocate, price, discount or otherwise weigh payments received in any such transaction or any combination of transactions, with the purpose of
reducing or disadvantaging the Net Sales of Product in favor of any other product, service or consideration in order to reduce the payments owed by NT Pharma to Pfenex hereunder. 

Section 5.9    Reporting; Adverse Drug Reactions. 

(a)    Pharmacovigilance Agreement. Not later than the first delivery of Product by or on behalf of Pfenex to NT
Pharma or its designee pursuant to Section 5.1, the Parties shall enter into a pharmacovigilance agreement (the “PV Agreement”) on reasonable and customary terms, which agreement shall (i) contain detailed procedures
regarding the maintenance of core safety information and the exchange of safety data relating to Product (including Adverse Drug Response reporting) on a worldwide basis, (ii) provided that, as between the Parties, Pfenex shall be responsible
for establishing and maintaining the worldwide safety database relating to Product, and (iii) ensure compliance with the reporting requirements of all applicable Regulatory Agencies (including the FDA) on a worldwide basis with respect to
Product. 
 (b)    Adverse Event Reporting. Without limiting Section 5.9(a), each Party shall within one
(1) Business Day (after becoming aware of such information) report all customer complaints and Adverse Drug Responses in English to the other Party (or its designee for such purpose). As between the Parties, NT Pharma shall be responsible for
the timely reporting of all Adverse Drug Responses, complaints and safety data relating to Product to each applicable Regulatory Agency in the Territory in accordance with Applicable Law. Pfenex shall also inform NT Pharma as soon as practicable
under the circumstances of any compliance or safety issues of which Pfenex becomes aware and which have led to a regulatory action with respect to Product. 

Section 5.10    Sales and Marketing. NT Pharma shall use Commercially Reasonable Efforts to market, promote,
sell and distribute Product in the Territory and, as between the Parties, shall bear all costs to market, promote, sell and distribute Product in the Territory. 

Section 5.11    Ex-Territory Sales; Export Monitoring. 

  
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 (a)    Ex-Territory
Sales. Subject to applicable laws, neither Party shall engage in any advertising or promotional activities relating to Product directed primarily to customers or other buyers or users of Product located outside the Territory in the case of NT
Pharma or inside the Territory in the case of Pfenex (such territory with respect to such Party, the “Commercial Territory”) or accept orders for Product from or sell Product into the other Party’s Commercial Territory for its
own account, and if a Party receives any order for Product in the other Party’s Commercial Territory, it shall refer such orders to the other Party. Pfenex shall use Commercially Reasonable Efforts to impose comparable obligations as set forth
in this Section 5.11(a) upon its Affiliates, other licensees or distributors operating within Pfenex’s Commercial Territory. For avoidance of any doubt, nothing contained in this paragraph shall affect Pfenex’s obligation to indemnify
NT Pharma Indemnitees as provided in Section 11.1. 
 (b)     Export Monitoring. Each Party shall use
Commercially Reasonable Efforts to monitor and prevent exports of Product from its own Commercial Territory for commercialization in the other Party’s Commercial Territory using methods permitted under Applicable Law that are commonly used in
the industry for such purpose, and shall promptly notify the other Party of any such exports of Product from its Commercial Territory, and any actions taken to prevent such exports. Each Party agrees to take reasonable actions requested in writing
by the other Party that are consistent with Applicable Law to prevent exports of Product from its Commercial Territory for commercialization in the other Party’s Commercial Territory. 

ARTICLE VI. 
 TERRITORY
PRODUCT TRADEMARK; INTELLECTUAL PROPERTY 
 LITIGATION 

Section 6.1    Territory Product Trademarks. 

(a)    Subject to the terms and conditions of this Agreement (including the performance by Pfenex of its manufacturing
obligations under this Agreement), Pfenex hereby grants to NT Pharma an exclusive, transferable (solely in accordance with Section 12.7), sublicenseable (subject to the provisions of Section 2.2) license to use the Existing Trademark
solely in connection with commercialization of Product in the Territory during the Term (the “Trademark License”). Pfenex shall use Commercially Reasonable Efforts to (i) complete registration of the Existing Trademark in each
jurisdiction within the Territory as soon as practically possible, and (ii) maintain the registration of such trademark during the Term. 

(b)    NT Pharma shall commercialize Product in the Territory solely under the Existing Trademark, provided that NT Pharma
shall otherwise have the sole right to select the trade dress, style of packaging, labeling and the like used in connection with the commercialization of Product in the Territory, including promotional or advertising taglines. The commercialization
of Product in the Territory under any trademark other than the Existing Trademark shall be subject to the prior written consent of Pfenex except that NT Pharma shall have the sole right to select and register in its own name a Chinese trademark the
pronunciation of which shall be similar to that of the Existing Trademark to the extent feasible for use in connection with the commercialization of Product in Mainland China. Any such other trademark under which Product is commercialized in the
Territory, including all goodwill associated therewith, and all applications, registrations, extensions, renewals and other rights relating thereto, shall be collectively referred to as a 

  
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“Territory Product Trademark.” NT Pharma shall be the exclusive owner of each Territory Product Trademark, excluding, for the avoidance of doubt, the Existing Trademark
which is owned by Pfenex and licensed to NT Pharma pursuant to Section 6.1(a). NT Pharma shall have the sole right to register and renew, at its expense, each such Territory Product Trademark in any country or jurisdiction of NT Pharma’s
choosing, provided that the Existing Trademark shall be registered and renewed by Pfenex. 
 (c)    NT Pharma shall
fully comply with all reasonable guidelines, if any, communicated by Pfenex concerning the use of the Existing Trademark. NT Pharma acknowledges the validity of the Existing Trademark, and shall not challenge or assist others to challenge the
Existing Trademark (except to the extent such restriction is expressly prohibited by Applicable Law) or the registration thereof or attempt to register any trademarks, marks or trade names confusingly similar to those of Pfenex. NT Pharma shall not
engage in any activity that would adversely affect the name, reputation or goodwill of Pfenex or the Product. Except as set forth in this Section 6.1, nothing contained in this Agreement shall grant or shall be deemed to grant to NT Pharma any
right, title or interest in or to the Existing Trademark. Upon termination of this Agreement, NT Pharma shall immediately cease to use the Existing Trademark, subject to NT Pharma’s rights during the Inventory Sell Down Period pursuant to
Section 10.4(c). 
 (d)    To the extent permitted by Applicable Law, at Pfenex’s election, the Product
Documentation, including labels (subject to space limitations) shall include the Pfenex tradename and associated mark (as may be updated from time to time, the “Pfenex Housemark”) to be placed in a size (but not less
than thirty percent (30%) of that of NT Pharma or its Affiliate) and location reasonably agreed to by the Parties and consistent with the standards of the pharmaceutical industry. Subject to the foregoing, Pfenex hereby grants to NT Pharma, its
Affiliates and Third Party distributors a limited right to use the Pfenex Housemark solely in connection with the sale and marketing of Product in the Territory in accordance with this Agreement. The Pfenex Housemark and all goodwill associated
therewith, and all applications, registrations, extensions and renewals and other rights relating thereto, shall be the sole property of Pfenex. Pfenex shall have the sole right to register and renew, at its expense, the Pfenex Housemark, or any
portion thereof, in any country or jurisdiction of Pfenex’s choosing. 
 Section 6.2    Ownership of
Inventions. All right, title and interest in and to all inventions and Know-How, including all Intellectual Property rights in the foregoing, made, conceived, reduced to practice or otherwise
generated by or on behalf of a Party or its Affiliates, or jointly by or on behalf of the Parties or their Affiliates, in connection with this Agreement (collectively, “Inventions”) shall be solely owned by Pfenex. NT Pharma hereby
assigns to Pfenex all of its right, title and interest in and to all Inventions (including related Patents and Know-How) and agrees to execute and deliver all documents and instruments reasonably requested by
Pfenex to effect, evidence or record the foregoing assignment. NT Pharma shall promptly disclose to Pfenex all Inventions made, conceived, reduced to practice or otherwise generated by or on behalf of a NT Pharma or its Affiliates, solely or
jointly, and shall promptly respond to reasonable requests from Pfenex for additional information relating to such Inventions. 

Section 6.3    Patent Prosecution and Maintenance of Inventions. Pfenex shall have the first right to
Prosecute and Maintain all Patents claiming Inventions, at its own cost and expense. Pfenex shall consult with NT Pharma and keep NT Pharma reasonably informed of the status of such Patents in the Territory and shall promptly provide NT Pharma with
all 

  
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25 

 
material correspondence received from any patent authority in the Territory in connection therewith. In addition, Pfenex shall promptly provide NT Pharma with drafts of all proposed material
filings and correspondence to any patent authority in the Territory with respect to such Patents for NT Pharma’s review and comment prior to the submission of such proposed filings and correspondence. Pfenex shall consider in good faith any
comments provided by NT Pharma in a timely manner, prior to submitting such filings and correspondence to the applicable patent authority in the Territory. If Pfenex decides to discontinue the Prosecution or Maintenance of any such Patent in any
jurisdiction in the Territory, it shall notify NT Pharma of such decision. Thereafter, NT Pharma shall have the right, but not the obligation, to Prosecute and Maintain such Patent in such jurisdiction in the Territory at its own cost and expense,
if doing so does not, in Pfenex’s reasonable, good faith determination, cause a material adverse effect on Pfenex’s Intellectual Property rights covering products other than Product. 

(a)    Disclosures. Each Party acknowledges the highly proprietary and confidential nature of unpublished patent
applications and related information and without limiting the provisions of Article VIII agrees to limit the access to any such applications and information received from the other Party hereunder to those who need such access for the purposes of
this Section 6.3 and limit the use thereof solely to the purposes of this Section 6.3. Without limiting the foregoing, any disclosures made pursuant to this Section 6.3 will be structured in a manner so as provide reasonable access to
the applicable information while limiting the risk of adversely affecting the patentability of the subject matter disclosed. 

Section 6.4    Manufacturing Process. 

(a)    In the event that any Third Party commences any Action against either Party or any of such Party’s Affiliates
alleging that the manufacture of Product (including the use of any Pfenex Technology in the manufacture of Product) infringes any Intellectual Property of such Third Party (a “Manufacturing Action”), the Party against whom such
Action is commenced shall provide the other Party prompt written notice thereof, and Pfenex shall have the sole right to control the defense of such Manufacturing Action (including any settlement, compromise or consent to any judgment with respect
thereto). If Pfenex elects to assume control over the defense of any such Manufacturing Action where NT Pharma or its Affiliate is a defendant, then NT Pharma or its Affiliate shall have the right to participate with counsel of its selection (at NT
Pharma’s sole cost and expense) and Pfenex shall, subject to Section 6.4(b), continue to control and defend NT Pharma or its Affiliate until final judgment in such Manufacturing Action. 

(b)    NT Pharma shall provide, at the cost and expense of Pfenex, all cooperation and assistance reasonably requested by
Pfenex in connection with any Manufacturing Action, including (i) providing Pfenex with detailed responses to its inquiries, and (ii) identifying and providing witnesses in the Territory who will assist in the preparation of evidence,
provide written evidence, appear as witnesses in court and assist in other ways that Pfenex reasonably requests. 

Section 6.5    Enforcement Actions. 

(a)    Each Party shall promptly give the other Party written notice (each, an “Infringement Notice”) of
any actual or suspected infringement, misappropriation or other violation by a Third Party of the Pfenex Technology in the Territory (“Infringing  

  
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Activity”) that come to such Party’s or any of its Affiliates’ attention, as well as the identity of such Third Party and any evidence of such Infringing Activity within
such Party’s or any of its Affiliates’ custody or control that such Party or any of its Affiliates is reasonably able to provide. 

(b)    Pfenex shall have the first right, but not the obligation, at Pfenex’s cost and expense, to take any action in
response to such Infringing Activity and to enter into or permit the settlement of any litigation or other enforcement action (collectively, “Enforcement Actions”); provided that Pfenex shall provide prompt written notice of any
Enforcement Action to NT Pharma arising from the development, manufacture, launch, marketing, commercialization and sale of a Competing Product in the Territory (each, a “Competing Product Enforcement Action”), permit NT Pharma
(subject to the Common Interest Agreement) to review and comment on such Competing Product Enforcement Action and give reasonable consideration to any comments made by NT Pharma in relation to such Competing Product Enforcement Action. If required
by Applicable Law and to the extent Pfenex does not have standing, NT Pharma shall permit, and shall take all actions reasonably necessary to enable, an Enforcement Action to be brought in its name, including being joined as a necessary party, at
Pfenex’s sole cost and expense. Pfenex may settle, compromise or consent to any judgment with respect to any Enforcement Action without the prior written consent of NT Pharma, on fifteen (15) Business Days’ notice to NT Pharma;
provided, that if, prior to the expiration of such fifteen (15) Business Day period, NT Pharma determines, and advises Pfenex of such determination in writing, that a settlement, compromise or consent to judgment with respect to a Competing
Product Enforcement Action would likely have a material adverse impact on NT Pharma in the Territory, then Pfenex shall not settle, compromise or consent to any judgment with respect to such Competing Product Enforcement Action without the prior
written consent of NT Pharma (which consent shall not be unreasonably withheld, delayed or conditioned). 
 (c)    If
Pfenex does not institute a Competing Product Enforcement Action against the Infringing Activity involving the Pfenex Technology within one (1) month from the date of the Infringement Notice and Pfenex has not provided notice to NT Pharma
specifying that (i) the initiation of such Competing Product Enforcement Action is likely to invalidate or narrow the claims of any Pfenex Patent and (ii) such invalidation or narrowing would likely have a material adverse impact on Pfenex
or its Affiliates, or the Pfenex Technology, NT Pharma shall have the right, but not the obligation, at NT Pharma’s sole cost and expense, to bring the Competing Product Enforcement Action; provided that NT Pharma shall provide prompt written
notice of any such Competing Product Enforcement Action to Pfenex, permit Pfenex (subject to the Common Interest Agreement) to review and comment on strategic decisions and material pleadings and communications regarding such Competing Product
Enforcement Action and give reasonable consideration to any comments made by Pfenex in relation to such Competing Product Enforcement Action. In such case and if required by Applicable Law and to the extent NT Pharma does not have standing, Pfenex
shall permit, and shall take all actions reasonably necessary to enable, a Competing Product Enforcement Action to be brought in its name, including being joined as a necessary party, at NT Pharma’s sole cost and expense. NT Pharma may not
enter into any settlement or consent to any judgment with respect to any such Competing Product Enforcement Action without the prior written consent of Pfenex (not to be unreasonably withheld, delayed or conditioned). 

  
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 (d)    In any Enforcement Action instituted by either Pfenex or NT
Pharma to enforce the Pfenex Technology as provided herein above, the other Party (the “Cooperating Party”) shall, at the reasonable request of the Party initiating such Enforcement Action (the “Enforcing Party”),
cooperate and provide reasonable assistance to the Enforcing Party, including (i) providing the Enforcing Party with documents (whether in written, electronic or other form) related to the Pfenex Technology in the Territory,
(ii) identifying and describing any Intellectual Property that has been incorporated into the Pfenex Technology in the Territory by the Cooperating Party, and (iii) identifying and providing witnesses who will assist in the preparation of
evidence, provide written evidence, appear as witnesses in court and assist in other ways that the Enforcing Party reasonably requests. To the extent that the cooperation or assistance requested results in costs being incurred by the Cooperating
Party, then the Enforcing Party shall be responsible for the payment of all reasonably incurred out-of-pocket expenses. 

Section 6.6    Reimbursement Requirements. To the extent that any Party would be required pursuant to this
Article VI to reimburse or pay the other Party for any costs or expenses incurred by such other Party, such obligation shall be subject to submission by such other Party of reasonable documentation with respect thereto. To the extent that either
Party would be entitled to be reimbursed for, or otherwise have paid, any costs or expenses incurred by such Party, such costs and expenses shall only be reimbursed or paid to the extent reasonably incurred by such Party and submitted for
reimbursement or payment pursuant to an invoice, which shall be payable in accordance with Section 4.6. 

Section 6.7    Recovered Amounts. Any monetary damages, court-ordered Third Party costs, settlements,
royalties or other recovery received from any Third Party resulting from, arising out of or relating to any Competing Product Enforcement Action, after reimbursement of the Cooperating Party’s expenses pursuant to Section 6.6 and the
Enforcing Party’s expenses, shall be distributed (a) if Pfenex is the Enforcing Party, [***] to Pfenex and [***] to NT Pharma and (b) if NT Pharma is the Enforcing Party, [***] to NT Pharma and [***] to Pfenex. 

Section 6.8    Common Interest Agreement. At the request of either Party, the Parties shall enter into a
common interest agreement in a reasonable and customary form acceptable to both Parties (the “Common Interest Agreement”) to protect each Party’s privilege to the extent possible under Applicable Law. 

Section 6.9    Patent Marking. Pfenex, in its discretion, shall mark (or cause to be marked) Product supplied
to NT Pharma hereunder for sale in the Territory with appropriate Pfenex Patent numbers or indicia to the extent permitted by Applicable Law, for those countries in the Territory in which such notices impact recoveries of damages or remedies
available with respect to infringement of Patents. 
 Section 6.10    Article XI Not Applicable. Article XI
shall not apply to the extent its application would be inconsistent with this Article VI. 
 ARTICLE VII. 

EXECUTIVE STEERING COMMITTEE 

Section 7.1    Formation and Purpose. In order to oversee, review and coordinate the activities of the Parties
under this Agreement, Pfenex and NT Pharma will form an executive 

  
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steering committee upon the Effective Date (the “Executive Steering Committee”), whose initial members are listed in that certain memorandum exchanged between the Parties before
the Effective Date and referencing this Agreement. The Executive Steering Committee shall, in accordance with the procedures set forth in Section 7.4, (a) review and comment on the development and commercialization of Product in the
Territory, (b) consult with NT Pharma regarding NT Pharma’s plans for seeking Regulatory Approval in the Territory, (c) review and comment on the creation and implementation of strategies related to the Patents of Third Parties, in
each case with respect to the development, manufacture, launch (including obtaining Regulatory Approval), marketing, commercialization and sale of Product in the Territory (collectively, “IP Strategy”), (d) serve as a forum for
discussion of matters relating to the development and commercialization of Product in the Territory, (e) establish one or more working committees and subcommittees as may be established by mutual consent of Pfenex and NT Pharma (each, a
“Working Committee”), and (f) perform such other duties as are specifically assigned to the Executive Steering Committee in this Agreement. The Executive Steering Committee shall be the primary forum for Pfenex and NT Pharma to
communicate with one another regarding the plans for, and progress of, the development and commercialization of Product in the Territory. 

Section 7.2    Membership. The Executive Steering Committee shall consist of three (3) individuals
appointed by NT Pharma and three (3) individuals appointed by Pfenex. If either Pfenex or NT Pharma seeks to appoint any individual who is not listed in that certain memorandum exchanged between the Parties before the Effective Date and
referencing this Agreement (which shall include not only the initial members of the Executive Steering Committee, but also other pre-approved potential appointees of Pfenex and NT Pharma), then the appointing
Party shall notify the non-appointing Party and the non-appointing Party shall have the right to comment on each such appointee, which comments the appointing Party
shall consider in good faith. Unless otherwise agreed by the Parties, the Executive Steering Committee and each Working Committee shall have at least one (1) representative with relevant decision-making authority from each Party such that such
committee is able to effectuate all of its decisions within the scope of its responsibilities. Each member of the Executive Steering Committee shall be subject to the obligations of non-use and non-disclosure of Confidential Information set forth in Article VIII. 

Section 7.3    Meeting Requirements. The Executive Steering Committee shall meet on a quarterly basis (or less
frequently if Pfenex and NT Pharma mutually agree) during the Term, and shall hold its first meeting within (30) days after the Effective Date for purposes of discussing the Timeline. The Executive Steering Committee may meet by phone,
videoconference or in person. Each meeting shall be held on a date to be agreed upon by Pfenex and NT Pharma. Notwithstanding the foregoing, meetings may be called at any time if requested by either Party by prior written notice, including the
proposed agenda of the meeting, sent to the other Party at least two (2) weeks in advance; provided that if a meeting is requested to be convened urgently pursuant to this Agreement, Pfenex and NT Pharma shall exercise Commercially Reasonable
Efforts to convene such meeting as promptly as is practicable. Meetings shall only be effective if at least one (1) representative designated by NT Pharma and one (1) representative designated by Pfenex are present or participating in the
meeting. 
 Section 7.4    Decision-Making; Dispute Resolution. 

(a)    The Executive Steering Committee shall have a single chairperson who shall (i) solicit agenda items from the
other Executive Steering Committee members, 

  
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coordinate and prepare the agenda (which shall include any agenda items reasonably proposed by Executive Steering Committee members from the other Party), provide the agenda along with
appropriate information for such agenda reasonably in advance (to the extent possible) of any meeting and ensure the orderly conduct of the Executive Steering Committee’s meetings, (ii) attend (subject to the below) each meeting of the
Executive Steering Committee, and (iii) prepare and issue minutes of each meeting (which shall accurately reflect the discussions and decisions of the Executive Steering Committee at such meeting) in accordance with Section 7.5. Such
minutes from each Executive Steering Committee meeting shall not be finalized until the Executive Steering Committee members from the other Party have reviewed and confirmed the accuracy of such minutes as described in Section 7.5 and if not
previously confirmed, such matter shall be the first order of business at the next Executive Steering Committee meeting. The Party appointing the chairperson shall alternate between Pfenex and NT Pharma every calendar year, and shall initially be
designated by Pfenex. In the event the chairperson or another representative of the Executive Steering Committee from either Party is unable to attend or participate in any meeting of the Executive Steering Committee, the Party who appointed such
Executive Steering Committee chairperson or representative may appoint a substitute chairperson or other representative for that meeting. All decisions of the Executive Steering Committee and any Working Committee shall be made by consensus, with
each Party having one (1) vote. Each Party shall work in good faith to reach consensus on matters and in no event shall either Party unreasonably withhold, condition or delay any approval or other decision of the Executive Steering Committee or
a Working Committee hereunder. In the event a Working Committee fails to reach consensus with respect to a particular matter within its authority, then upon request by either Party such matter shall be referred to the Executive Steering Committee
for resolution. 
 (b)    If the Executive Steering Committee is unable to reach a decision as to any matter within its
authority (including any matter expressly required to be resolved by the Executive Steering Committee pursuant to this Agreement) after a period of ten (10) Business Days, then either Pfenex or NT Pharma may provide written notice of such
dispute to the Chief Executive Officer of the other Party and such matter shall be resolved as set forth below. The Chief Executive Officers (or their respective designees, who shall be senior officer of Pfenex and NT Pharma, but shall not be
members of the Executive Steering Committee) of each of Pfenex and NT Pharma shall discuss the dispute in person or telephonically and use their good faith efforts to resolve the dispute within thirty (30) days after submission of such dispute
to such officers. If any such dispute is not resolved by the Chief Executive Officers or their designees within thirty (30) days after submission of such dispute to such officers, then: 

(i)    the Chief Executive Officer of Pfenex shall have authority to finally resolve, in such officer’s reasonable
discretion exercised in good faith, all matters related to (A) the Pfenex Technology, the Pfenex Expression Technology and the Prosecution and Maintenance of Patents claiming Inventions and the enforcement thereof (except for matters that NT
Pharma has the right to control pursuant to Section 6.5(c)), (B) information supporting or referenced in the CMC Section with respect to Product, (C) the manufacture of Product for development or commercialization purposes, (D) the
content of proposed publications or presentations under Section 8.6 and (E) the existence of Safety Reasons under Section 10.2(a)(iv) and Section 10.2(b)(iii). 

  
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 (ii)    the Chief Executive Officer of NT Pharma shall have
authority to finally resolve, in such officer’s reasonable discretion exercised in good faith, all matters related to (A) IP Strategy (other than as referenced in Section 7.4(b)(i)(A)), (B) regulatory affairs with respect to
Product in the Territory (including communications with Regulatory Agencies in the Territory), (C) the marketing, promotion, sale and distribution of Product in the Territory, and (D) the protocol for any preclinical or human clinical study
with respect to Product in the Territory. 
 Notwithstanding the foregoing, neither Party shall have any final decision-making authority with respect to
matters described in Section 7.1, other than IP Strategy. 
 Section 7.5    Meeting Minutes. The
Parties shall reasonably cooperate to finalize the definitive minutes of the Executive Steering Committee no later than thirty (30) days after the meeting to which the minutes pertain, as follows: (i) the chairperson of the Executive
Steering Committee shall be responsible for preparing and sending a draft of the minutes to the other Party’s representatives, and shall furnish such draft within ten (10) days of such meeting, (ii) the other Party’s
representatives shall have ten (10) days after receiving the draft minutes to collect comments and to discuss any modifications thereof and (iii) within the following ten (10) days any disputes as to the minutes shall be resolved
between the Parties and the final version of the minutes shall be issued by the Party appointing the chairperson which shall be subject to approval by NT Pharma and Pfenex by signing and dating the minutes or unanimous approval of the Executive
Steering Committee at its next meeting. The minutes shall include a list of any actions, decisions or determinations approved by the Executive Steering Committee and a list of any issues yet to be resolved. In addition, the minutes shall set forth
the place and date where the next meeting shall be held. 
 Section 7.6    Expenses. Each of Pfenex and NT
Pharma shall be responsible for the expenses of the participation of its representatives in the Executive Steering Committee and any Working Committees, including travel costs. 

Section 7.7    Working Committees. Each Working Committee shall (a) be comprised as the Executive
Steering Committee determines is necessary to fulfill its responsibilities (it being understood that a particular Working Committee may not necessarily have the same number of representatives from each Party) and (b) report into and be
subordinate to the Executive Steering Committee. A Working Committee shall only have the authority expressly delegated to such Working Committee by the Executive Steering Committee. Each Working Committee shall keep the Executive Steering Committee
regularly informed of the activities that it is tasked with overseeing or otherwise carrying out, both through in-person and written reporting as reasonably necessary for the Executive Steering Committee to fulfill its responsibilities with respect
thereto. 
 Section 7.8    Committee Authority; Withdrawal. 

(a)    General. Notwithstanding the creation of the Executive Steering Committee and any Working Committee, each
Party shall retain the rights, powers and discretion granted to it under this Agreement, and no committee shall be delegated or vested with rights, powers or discretion unless such delegation or vesting is expressly provided herein, or the Parties
expressly so agree. Neither the Executive Steering Committee nor any Working Committee shall have the power to (a) amend, modify or waive compliance with this Agreement, (b) to determine whether or not a Party has met its diligence or
other obligations under the Agreement, or (c) to determine whether or not a 

  
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document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

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breach of this Agreement has occurred, and no decision of the Executive Steering Committee or any such Working Committee, as applicable, shall be in contravention of any terms and conditions of
this Agreement. It is understood and agreed that issues to be formally decided by the Executive Steering Committee and any Working Committee, as applicable, are only those specific issues that are expressly provided in this Agreement to be decided
by the Executive Steering Committee and any such Working Committee, as applicable. 
 (b)    Withdrawal. At any
time after receipt of Regulatory Approval in Mainland China with respect to Product, and for any reason, Pfenex shall have the right to withdraw from participation in the Executive Steering Committee or any or all of the Working Committees upon
notice to NT Pharma referencing this Section 7.8(b), which notice shall be effective immediately upon receipt. Thereafter, (i) any information, documents or reports that a Party is otherwise required to provide to the Executive Steering
Committee pursuant to this Agreement shall be provided directly to the other Party, and (ii) any matters delegated to the Executive Steering Committee pursuant to this Agreement shall be made by mutual written agreement of the Parties, subject
to the dispute resolution and final decision-making provisions of Section 7.4(b). For purposes of clarification, Pfenex’s withdrawal from the Executive Steering Committee or any Working Committee shall not affect any other obligation or
responsibility of Pfenex set forth in this Agreement. 
 Section 7.9    Day-to-Day Responsibilities. Each Party shall be responsible for day-to-day implementation and operation of the activities
under this Agreement for which it has or is otherwise assigned responsibility under this Agreement, provided that such implementation is not inconsistent with the express terms and conditions of this Agreement, the decisions of the Executive
Steering Committee or any Working Committee within the scope of its authority specified herein or Applicable Law. Notwithstanding the preceding sentence, if Pfenex reasonably believes that a decision of NT Pharma relating to its development
activities with respect to Product is likely to have a material adverse impact on the profile, safety, efficacy or commercial value of Product outside the Territory, it shall provide NT Pharma with written notice indicating Pfenex’s
disagreement with NT Pharma’s decision together with a description, in reasonable detail, of Pfenex’s reasoning in support of such disagreement. After receipt of such notice from Pfenex, the Parties shall discuss in good faith (for a
period not to exceed thirty (30) days or such longer period as may be agreed by the Parties in writing) to agree on the development activities in question, failing which the decision made by Pfenex shall be binding. Notwithstanding anything to
the contrary under this Agreement, Pfenex shall not object to an activity that is required by a Regulatory Agency in the Territory. 

Section 7.10    Cooperation. A Party that is obligated to cooperate with the other Party hereunder
(a) may consider all relevant factors including its other then-current obligations and resource commitments when determining whether the cooperation activities are reasonable, and (b) shall not be obligated to obtain any additional
resources (including hire any personnel) to accomplish its cooperation hereunder. Such Party’s obligation to cooperate in a particular activity shall not alleviate the other Party’s obligation to perform the underlying activity. 

  
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document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

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 ARTICLE VIII. 

CONFIDENTIALITY; TAXES; NONSOLICITATION; PUBLICATIONS 

Section 8.1    Confidentiality. Each of Pfenex and NT Pharma acknowledges that, in the course of discussions and
negotiations and performing its obligations hereunder, (a) it has received or may receive information from the other Party and (b) the other Party may disclose to it information, data and processes that such other Party wishes to protect from use by
and disclosure to Third Parties (all information described in clauses (a) and (b), unless subject to the Confidentiality Exceptions, “Confidential Information”). Each Party shall retain in confidence all Confidential Information of
the other Party and (except as expressly provided herein) shall not use Confidential Information of such other Party for any purpose other than the purposes indicated herein and in connection with the performance of this Agreement or disclose such
Confidential Information to a Third Party other than its Agents without the written consent of such other Party. Confidential Information shall not include information that: (i) is or becomes public knowledge (through no fault of the receiving Party
or its Agents); (ii) is made lawfully available to the receiving Party, other than under an obligation of confidentiality, by a Third Party that, to the knowledge of the receiving Party, is under no duty of confidentiality to the disclosing Party;
(iii) is already in the receiving Party’s possession at the time of receipt from the disclosing Party (and such prior possession can be reasonably demonstrated by competent evidence by the receiving Party) other than as a result of disclosure
by a Third Party that, to the actual knowledge of the receiving Party, was under a duty of confidentiality to the disclosing Party with respect to such information; or (iv) is independently developed by the receiving Party or its Affiliates without
the use of or reference to Confidential Information of the other Party (and such independent development can be reasonably demonstrated by competent evidence prepared by the receiving Party) (collectively, the “Confidentiality
Exceptions”). Notwithstanding the foregoing, a receiving Party may use and disclose Confidential Information of the other Party (A) to the extent required by Applicable Law; provided, however, that if legally permissible, the receiving
Party shall give the disclosing Party advance written notice as promptly as is practicable to permit it to seek a protective order or other similar order, at the disclosing Party’s sole cost, with respect to the disclosure of such Confidential
Information, and, thereafter, the receiving Party shall disclose only the minimum Confidential Information that it is advised by counsel is required to be disclosed in order to comply; (B) to the extent such disclosure is reasonably necessary for
the Prosecution and Maintenance of Patents (including applications therefor) in accordance with Section 6.3, complying with the terms of the Dow Technology Assignment Agreement and Dow Technology Licensing Agreement (provided that Pfenex shall
provide NT Pharma with prior written notice of any such disclosure, including a copy of any such disclosure), prosecuting or defending litigation, conducting preclinical or clinical studies, or obtaining and maintaining regulatory approvals
(including Regulatory Approvals); (C) in communication with consultants and advisors (including financial advisors, lawyers and accountants) on a need to know basis, in each case, under appropriate non-disclosure and non-use obligations
substantially equivalent to those of this Agreement (provided that the disclosing Party shall be responsible for any breach of this Section 8.1 by those parties to which it discloses Confidential Information); or (D) to the extent mutually agreed to
by the Parties in writing. Either Party shall have the right to disclose this Agreement to actual and potential licensees and collaborators with respect to Product, investors and acquirers of a majority of the business or assets of such Party
related to this Agreement in connection with negotiations of definitive agreements, under reasonable conditions of confidentiality. 

  
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document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

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 Section 8.2    Agents. Each of Pfenex and NT Pharma shall
limit disclosure of the other Party’s Confidential Information to only those of their respective Affiliates, directors, managers, officers, employees and contractors (collectively “Agents”) who are concerned with the
performance of this Agreement, have a legitimate need to know such Confidential Information in the performance of their duties and are bound by written obligations of non-disclosure and non-use at least as protective of the disclosing Party and its Confidential Information as the terms hereof. Each Party shall be responsible for any breach of Section 8.1 by its Agents and advisors (including
financial advisors, lawyers and accountants) and shall take all reasonably necessary measures to restrain its Agents and advisors (including financial advisors, lawyers and accountants) from unauthorized disclosure or use of the Confidential
Information. 
 Section 8.3    Restrictions on Sharing Information. Notwithstanding anything to the
contrary, neither Party shall be obligated pursuant to this Agreement to provide, or grant access to, any information (a) that is Confidential Information it is prevented from disclosing to the other Party by an enforceable confidentiality
agreement with a Third Party and that such Party used Commercially Reasonable Efforts to obtain the consent of such Third Party to provide or grant access to the other Party, (b) the disclosure of which would adversely affect the
attorney-client privilege between such Party and its counsel, based upon the advice of such Party’s outside legal counsel, or (c) the disclosure of which is not permitted pursuant to any Applicable Law or requirement of a Governmental
Authority; provided in each case where information was not provided or access was not granted as would otherwise be required under this Agreement, such Party shall inform the other Party of the reason it was not provided or granted and a description
of the specific nature of the applicable information. Following the Effective Date and during the Term, in connection with entering into any material agreement (or material amendment thereof) with any Third Party related to the Business, each Party
agrees to use Commercially Reasonable Efforts to negotiate with such Third Party to include provisions in such agreement (or such amendment) sufficient to allow the other Party to receive relevant Confidential Information of such Third Party. 

This Agreement supersedes the Mutual Confidentiality Agreement between the Parties dated November 15, 2017 (the “Prior
Agreement”) with respect to information disclosed thereunder. All information exchanged between the Parties under the Prior Agreement shall be deemed Confidential Information of the disclosing Party and shall be subject to the terms of
Sections 8.1, 8.2 and 8.3. 
 Section 8.4    Taxes. 

(a)    The Parties agree that for U.S. federal income tax purposes they will treat the transaction under this Agreement,
unless otherwise required by Applicable Law, as a collaboration agreement that does not constitute a partnership or a joint venture, and agree to not take (or cause any Person to take), any position on any Tax return or in the course of any audit,
examination or other proceeding inconsistent with such treatment, unless otherwise required by Applicable Law and except upon a final determination of the applicable Taxing Authority. 

(b)    Any and all payments by or on account of any obligation of any Party under this Agreement shall be made without
deduction or withholding for any Taxes, except as required by Applicable Law. If any Applicable Law (as determined in the good faith discretion of the applicable withholding Party) requires the deduction or withholding of any Tax from any such
payment by any Party, then such Party shall be entitled to make 

  
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document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

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such deduction or withholding, any amount so deducted or withheld shall be deemed paid to the other Party that was entitled to the payment subject to withholding, such Party shall timely pay the
full amount deducted or withheld to the relevant Governmental Authority in accordance with Applicable Law, and if such Tax is an Indemnified Tax, then the sum payable by the applicable Assignee shall be increased as necessary so that after such
deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section 8.4) the applicable recipient receives an amount equal to the sum it would have received had no such
deduction or withholding been made. Upon request by the other Party, such withholding Party shall deliver to the other Party that was entitled to the payment subject to withholding, the original or a certified copy of a receipt issued by such
Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the other Party. 

(c)    Any Assignee shall indemnify the Non-Assigning Party, within ten
(10) days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section 8.4) payable or paid by such Non-Assigning Party or required to be withheld or deducted from a payment to such Non-Assigning Party and any reasonable expenses arising therefrom or with respect thereto,
whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. Notwithstanding anything to the contrary in this Agreement, if a Party (the “Taxed Party”) obtains a credit
from any Governmental Authority for any portion of any Indemnified Tax paid by the other Party, then the Taxed Party shall promptly reimburse the other Party the amount of such credit, and the Taxed Party shall use Commercially Reasonable Efforts to
obtain available credits with respect to any such Indemnified Taxes. 
 (d)    All transfer, documentary, sales, use,
excise, customs, charges, duties, ad valorem, value added, stamp, registration, recording, property and other such similar Taxes (other than, for the avoidance of doubt, Taxes assessed against income), and all conveyance fees, recording charges and
other fees and charges (including any penalties and interest) lawfully assessed or charged in connection with any of the transactions contemplated under this Agreement (collectively, “Transfer Taxes”) shall be paid and borne by the
paying Party when due, and the Party responsible under such Applicable Law for paying such Transfer Taxes shall, at its own expense, file all necessary Tax returns and other documentation with respect to all such Transfer Taxes, and, if required by
Applicable Law, the Parties will, and will cause their Affiliates to, join in the execution of any such Tax returns and other documentation. 

Section 8.5    Nonsolicitation. Each Party (for purposes of this Section 8.5, a “Soliciting
Party”) agrees that, during the Term, such Soliciting Party will not solicit for employment or consultancy, employ or engage as a consultant or solicit the termination of employment or consultancy with the other Party (a
“Solicitation Action”), any individual that at the time of such Solicitation Action (a) is an officer or employee of the other Party or a consultant that is devoting a majority of such individual’s time to the business of
the other Party and (b) is or was actively involved in the other Party’s performance of its obligations hereunder; provided, however, that the foregoing shall not prohibit (i) any advertisement or general solicitation (or hiring or
engagement as an employee or consultant as a result thereof) for employment or consultancy not specifically directed at any such individual; (ii) the hiring or engagement as an employee or consultant of any such individual who initiates
employment 

  
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document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

35 

 
or consultancy discussions with such Soliciting Party, provided that such initial discussions are not encouraged or solicited by such Soliciting Party; or (iii) any Solicitation Action with
respect to any individual following the cessation of such individual’s employment with (or service as a consultant that is devoting a majority of such person’s time to the business of) the other Party without any solicitation or
encouragement by such Soliciting Party. 
 Section 8.6    Publications. NT Pharma may publish or present
data or results relating to Product in scientific journals with primary circulation in the Territory or at scientific conferences in the Territory, subject to the prior review, comment and approval by Pfenex as set forth in this Section 8.6,
such approval not to be unreasonably withheld, delayed or conditioned. NT Pharma shall provide Pfenex with the opportunity to review any proposed abstract, manuscript or presentation which discloses information relating to Product by delivering a
copy thereof to Pfenex no less than sixty (60) days (for publication in scientific journals) or thirty (30) days (for presentation at scientific conferences) before its intended submission for publication or presentation. Pfenex shall have
thirty (30) days (for publication in scientific journals) or ten (10) days (for presentation at scientific conferences) from its receipt of any such abstract, manuscript or presentation in which to notify NT Pharma in writing of its
approval or any specific objections to the disclosure. In the event that Pfenex objects to the disclosure in writing within such thirty (30) or ten (10) day period, NT Pharma agrees not to submit the publication or abstract or make the
presentation containing the objected-to information until the Parties have agreed to the content of the proposed disclosure, and if the Parties are unable to agree, the matter shall be referred to the
Executive Steering Committee. NT Pharma shall delete from the proposed disclosure any Confidential Information of Pfenex upon the request of Pfenex. NT Pharma shall delay any proposed disclosure to allow Pfenex sufficient time for the drafting and
filing of a patent application directed to any patentable subject matter identified by Pfenex in such proposed disclosure. Once any such abstract or manuscript is accepted for publication, NT Pharma shall provide Pfenex with a copy of the final
version of the manuscript or abstract. The Parties further agree that for the presentation at scientific conferences, if the abstract, manuscript or presentation intended for a forthcoming scientific conference does not go beyond that previously
approved by Pfenex, then it shall be exempted from further approval by Pfenex as provided under this paragraph. NT Pharma shall not be obligated to prepare any translations under this Section 8.6 but shall provide to Pfenex any translations
prepared by NT Pharma. 
 ARTICLE IX. 

REPRESENTATIONS, WARRANTIES AND COVENANTS 

Section 9.1    Representations and Warranties of Pfenex. Pfenex hereby represents and warrants to NT Pharma as
of the Effective Date as follows: 
 (a)    Organization and Good Standing. Pfenex is duly incorporated, validly
existing and in good standing under the laws of Delaware, with all requisite corporate power and authority required to conduct its business as presently conducted. 

(b)    Authority. Pfenex has all requisite corporate power and authority to execute and deliver this Agreement and
to perform all of its obligations hereunder. The execution and delivery by Pfenex of this Agreement and the performance by Pfenex of its obligations hereunder have been duly authorized by all requisite corporate action of Pfenex and no other action
on the part of Pfenex or its stockholders or board of directors is 

  
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document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

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necessary to authorize the execution, delivery or performance by Pfenex of this Agreement. 

(c)    Valid and Binding Agreement. This Agreement has been duly executed and delivered by Pfenex and constitutes
the legal, valid and binding obligation of Pfenex, enforceable against Pfenex in accordance with its terms, except to the extent that the enforceability thereof may be limited by (i) applicable bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium or similar laws from time to time in effect affecting generally the enforcement of creditors’ rights and (ii) general principles of equity. 

(d)    Non-Contravention. The execution and delivery of this Agreement by
Pfenex and the performance by Pfenex of its obligations hereunder, including the grant of the Product License pursuant to Article II, does not and will not (i) violate any provision of the organizational documents of Pfenex, (ii) conflict
with or violate any Applicable Law applicable to Pfenex or any of its assets or properties, (iii) require any permit, authorization, consent, approval, exemption or other action by, notice to or filing with any entity or Governmental Authority
(other than as expressly contemplated hereby), (iv) violate, conflict with, result in a material breach of, or constitute (with or without notice or lapse of time or both) a material default under, or an event which would give rise to any right
of notice, modification, acceleration, payment, cancellation or termination under, or in any manner release any party thereto from any obligation under, any permit or contract to which Pfenex is a party or by which any of its properties or assets
are bound, in each case that are necessary for Pfenex’s performance of its obligations or grant of rights to NT Pharma hereunder, or (v) result in the creation or imposition of any Lien on any part of the properties or assets of Pfenex.

 (e)    No Commissions. Pfenex is not under any obligation to pay any commission or similar fee in connection
with the transactions contemplated by this Agreement for which NT Pharma shall be made responsible or shall become obligated to pay for any reason. 

(f)    No Litigation. There is no Action against Pfenex or any of its Affiliates or that has been brought by Pfenex
or any of its Affiliates which is pending or, to Pfenex’s Knowledge, threatened in writing, and, to Pfenex’s Knowledge, there is no investigation of Pfenex or its Affiliates pending before any Governmental Authority, in each case
(i) that would reasonably be expected to prevent the consummation of the transactions contemplated by this Agreement, (ii) that would reasonably be expected to materially adversely affect the Product in the Territory or the conduct of the
Business in the Territory or (iii) that would reasonably be expected to materially adversely affect reimbursement for Product under any program funded by a Governmental Authority in the Territory. 

(g)    Regulatory Matters; Compliance with Law. Pfenex and its Affiliates are, and have been at all times, in
compliance in all respects with Applicable Laws that are or were applicable to its conduct of the Business in the Territory or its ownership or use of Product in the Territory, except where any non-compliance
with Applicable Law would not reasonably be expected to have, individually or in the aggregate, a material adverse effect on Product in the Territory, the conduct of the Business in the Territory or Pfenex’s ability to perform its obligations
hereunder. No Governmental Authority has notified Pfenex or any of its Affiliates or, to Pfenex’s Knowledge, subcontractors in writing that 

  
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document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

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any activities in its conduct of the Business in the Territory are in violation of any Applicable Law or the subject of any Action or investigation. 

(h)    No Competing Products. Neither Pfenex nor its Affiliates currently owns or
in-licenses a Competing Product in any stage of development or commercialization or has any currently ongoing program to develop or acquire such a Competing Product. 

(i)    Pfenex Technology. 

(i)    Pfenex Controls the Pfenex Patents listed in that certain memorandum exchanged between the Parties before the
Effective Date and referencing this Agreement, and Pfenex has not granted any rights to any Third Party under the Pfenex Technology that conflicts with the rights granted to NT Pharma hereunder. None of the Pfenex Patents is or, to Pfenex’s
Knowledge, has been the subject of any pending Action with respect to inventorship challenges, interferences, reissues, reexaminations, inter partes review, post grant review, supplemental review, invalidation, opposition,
cancellation, abandonment or any order or decree of any Governmental Authority restricting the use of such Pfenex Patent in connection with Product. To Pfenex’s Knowledge, none of the Pfenex Patents is or has been the subject any threatened
Action of the types described in the immediately prior sentence. 
 (ii)    To Pfenex’s Knowledge, neither the
practice of the Pfenex Technology in the Territory, the conduct of the Business in the Territory, nor the development, making, using, sale, offer for sale, or import of Product in the Territory, infringes any Intellectual Property of any Third Party
or misappropriates or makes any unauthorized use of any Intellectual Property of any Third Party. Neither Pfenex nor any of Pfenex’s Affiliates has received written notice from any Third Party claiming that the practice of the Pfenex Technology
in the Territory, its conduct of the Business in the Territory, or development, making, using, sale, offer for sale, or import of Product in the Territory infringes any Intellectual Property of any Third Party or misappropriates or makes any
unauthorized use of any Intellectual Property of any Third Party. 
 (iii)    To Pfenex’s Knowledge, no Third
Party is infringing, misappropriating or making any unauthorized use of any Pfenex Technology in the Territory, and there is no Action or investigation in contemplation of an Action by Pfenex pending or threatened against any Third Party related to
the Pfenex Technology in the Territory. 
 (iv)    None of the Pfenex Technology is subject to any outstanding decree,
order, judgment or stipulation of a Governmental Authority against Pfenex, its Affiliates or, to Pfenex’s Knowledge, any other Person restricting in any manner the conduct of the Business in the Territory or the development, making, use, sale,
offer for sale or import of Product in the Territory. 
 (v)    Other than the Dow Technology Licensing Agreement and
Dow Technology Assignment Agreement, there are no contracts pursuant to which Pfenex in-licenses or otherwise has rights under any Intellectual Property of any Third Party that is material to the Business in
the Territory or the Pfenex Technology. Pfenex has not out-licensed or otherwise granted rights to any Third Party under any Pfenex Technology with respect to Product or the Reference Product in the Territory.

  
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document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

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 (vi)    To Pfenex’s Knowledge, Pfenex owns or has received all
licenses or otherwise has sufficient rights with respect to the Pfenex Technology necessary for Pfenex to comply with the terms of this Agreement. 

(j)    Existing Trademark.    The Existing Trademark is identical to the trademark used by
Pfenex in connection with the Product in the United States. The status of the Existing Trademark in the Territory is set out in Exhibit C. No one has challenged, and to Pfenex’s Knowledge, there exists no threatened challenge of, the validity
or the registration of the Existing Trademark. 
 (k)    Manufacturing Process. To Pfenex’s Knowledge, the
current processes used to manufacture and produce Product, including any Pfenex Technology contained or used therein or therewith, do not infringe the Intellectual Property of any Third Party. 

(l)    Debarment. Neither Pfenex nor any of its Affiliates, nor, to Pfenex’s Knowledge, any of its
subcontractors, employees or agents has ever been, is currently, or is the subject of a debarment proceeding that could lead to that party becoming, as applicable, a Debarred Entity or Debarred Individual. 

Section 9.2    Representations and Warranties of NT Pharma. NT Pharma hereby represents and warrants to Pfenex
as of the Effective Date as follows: 
 (a)    Organization and Good Standing. NT Pharma is duly incorporated,
validly existing and in good standing under the laws of Cayman Islands, with all requisite corporate power and authority required to conduct its business as presently conducted. 

(b)    Authority. NT Pharma has all requisite corporate power and authority to execute and deliver this Agreement
and to perform all of its obligations hereunder. The execution and delivery by NT Pharma of this Agreement and the performance by NT Pharma of its obligations hereunder have been duly authorized by all requisite corporate action of NT Pharma and no
other action on the part of NT Pharma or its stockholders or board of directors is necessary to authorize the execution, delivery or performance by NT Pharma of this Agreement. 

(c)    Valid and Binding Agreement. This Agreement has been duly executed and delivered by NT Pharma and
constitutes the legal, valid and binding obligation of NT Pharma, enforceable against NT Pharma in accordance with its terms, except to the extent that the enforceability thereof may be limited by (i) applicable bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium or similar laws from time to time in effect affecting generally the enforcement of creditors’ rights and (ii) general principles of equity. 

(d)    Non-Contravention. The execution and delivery of this Agreement by
NT Pharma and the performance by NT Pharma of its obligations hereunder does not and will not (i) violate any provision of the organizational documents of NT Pharma, (ii) conflict with or violate any Applicable Law applicable to NT Pharma
or its assets or properties, (iii) require any permit, authorization, consent, approval, exemption or other action by, notice to or filing with any entity or Governmental Authority (other than as expressly contemplated hereby),
(iv) violate, conflict with, result in a material breach of, or constitute (with or without notice or lapse of time or both) a material default under, or an event which would give rise to any right of notice, modification, acceleration,
payment, 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

39 

 
cancellation or termination under, or in any manner release any party thereto from any obligation under, any permit or contract to which NT Pharma is a party or by which any of its properties or
assets are bound, in each case that are necessary for NT Pharma’s performance of its obligations or grant of rights to Pfenex hereunder or (v) result in the creation or imposition of any Lien on any part of the properties or assets of NT
Pharma. 
 (e)    No Commissions. NT Pharma is not under any obligation to pay any commission or similar fee in
connection with the transactions contemplated by this Agreement for which Pfenex shall be made responsible or shall become obligated to pay for any reason. 

(f)    No Litigation. There is no Action against NT Pharma or any of its Affiliates or that has been brought by NT
Pharma or any of its Affiliates which is pending or, to NT Pharma’s Knowledge, threatened in writing, and, to NT Pharma’s Knowledge, there is no investigation of NT Pharma or its Affiliates pending before any Governmental Authority, in
each case (i) that would reasonably be expected to prevent the consummation of the transactions contemplated by this Agreement, (ii) that would reasonably be expected to materially adversely affect the Product or the conduct of the
Business or (iii) that would reasonably be expected to materially adversely affect reimbursement for Product under any program funded by a Governmental Authority. 

(g)    Debarment. NT Pharma represents and warrants that neither it nor any of its Affiliates, Subcontractors,
employees or agents has ever been, is currently, or is the subject of a debarment proceeding that could lead to that party becoming, as applicable, a Debarred Entity or Debarred Individual. 

(h)    No Competing Products. Neither NT Pharma nor its Affiliates currently owns or
in-licenses a Competing Product in any stage of development or commercialization or has any currently ongoing program to develop or acquire such a Competing Product. 

Section 9.3    Covenants. 

(a)    Debarment by Pfenex. If, during the Term, Pfenex or any of its Affiliates, subcontractors, employees
or agents becomes or is the subject of any Regulatory Agency investigation or debarment proceeding that could lead to Pfenex or such Affiliate, subcontractor, employee or agent, as applicable, becoming a Debarred Entity or Debarred Individual,
Pfenex shall immediately notify NT Pharma, and, if such occurrence materially and adversely affects Pfenex’s ability to perform its obligations hereunder or NT Pharma’s ability to develop, obtain Regulatory Approval for, manufacture,
commercialize, promote, market, offer for sale, sell or distribute Product in the Territory, then such occurrence shall be deemed a material breach of this Agreement and NT Pharma shall have the right to terminate this Agreement pursuant to
Section 10.2(b)(i). 
 (b)    Debarment by NT Pharma. If, during the Term, NT Pharma or any of its
Affiliates, Subcontractors, employees or agents becomes or is the subject of any Regulatory Agency investigation or debarment proceeding that could lead to NT Pharma or such Affiliate, Subcontractor, employee or agent, as applicable, becoming a
Debarred Entity or Debarred Individual, NT Pharma shall immediately notify Pfenex, and if such occurrence materially and adversely affects NT Pharma’s ability to perform its obligations 

  
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document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

40 

 
hereunder, then such occurrence shall be deemed a material breach of this Agreement and Pfenex shall have the right to terminate this Agreement pursuant to Section 10.2(a)(i). 

(c)    Assignment of Inventions. Each Party shall maintain valid and enforceable agreements with all persons and
entities acting by or on behalf of such Party or its Affiliates under this Agreement which require such persons and entities to assign to such Party their entire right, title and interest in and to all Inventions made by such persons and entities in
connection with their activities under this Agreement. 
 (d)    Anti-corruption Laws. Neither NT Pharma,
nor any of its Affiliates or sublicensees, in performing any of its obligations or activities under this Agreement, shall engage in any activities (such as offering a bribe to any government official), directly or indirectly (e.g., through use of an
agent), that would subject Pfenex to liability under the United States Foreign Corrupt Practices Act or any other applicable anti-corruption laws. 

(e)    Maintenance of Regulatory Approval. Pfenex shall use Commercially Reasonable Efforts to obtain and maintain
the Regulatory Approval for the Product in the United States during the Term in compliance with the Applicable Law. If any change to the Product or the Regulatory Approval in the United States or any procedure performed with the Regulatory Agency in
the United States may, to Pfenex’s Knowledge, result in a change to the Regulatory Approval in a jurisdiction within the Territory or result in a procedure needing to be performed with the Regulatory Agency within the Territory, Pfenex shall
serve NT Pharma an appropriate prior notice about the intended change before implementation and shall give reasonable consideration to the suggestion or objection raised by NT Pharma. 

Section 9.4    Disclaimer of Warranties. EXCEPT AS SET FORTH IN SECTION 9.1, SECTION 9.2, AND SECTION 5.6,
PFENEX AND NT PHARMA EXPRESSLY DISCLAIM ANY IMPLIED WARRANTIES WITH RESPECT TO THE SUBJECT MATTER OF THIS AGREEMENT (INCLUDING THE PRODUCT AND PFENEX TECHNOLOGY), INCLUDING ANY WARRANTY OF MERCHANTABILITY, NONINFRINGEMENT, OR FITNESS FOR A
PARTICULAR PURPOSE. 
 Section 9.5 Public Announcements. Neither Party nor their respective Affiliates shall make any public
announcement regarding this Agreement or disclose the terms and conditions of this Agreement to any Third Party without the prior written consent of the other Party (not to be unreasonably withheld, delayed or conditioned), except (a) to
advisors (including consultants, financial advisors, attorneys and accountants) on a need to know basis, in each case, under circumstances that reasonably protect the confidentiality thereof, or (b) to the extent such disclosure is required by
Applicable Law (including securities laws). Notwithstanding the foregoing, (i) without the prior written consent of the other Party, (A) Pfenex may (I) file with the Securities and Exchange Commission (the “SEC”) a
Current Report on Form 8-K describing this Agreement and the transactions contemplated hereby and (II) file a copy of this Agreement with the SEC as an exhibit to such Current Report on Form 8-K or a subsequent periodic report, and (B) NT Pharma may make an announcement and issue a circular with respect to the execution of this Agreement and the transactions contemplated hereunder pursuant to the
rules of the Stock Exchange of Hong Kong (the “Circular”); provided that Pfenex or NT Pharma, as the case may be, shall consult with the other Party so as to minimize the necessary disclosure and shall seek confidential treatment of
such portions of this Agreement or the terms and conditions thereof as permitted under Applicable Laws; and (ii) the Parties agree to issue a joint press release announcing the 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

41 

 
execution of this Agreement, which is attached hereto as Exhibit A. Thereafter, Pfenex and NT Pharma may each disclose to Third Parties the information contained in such
Current Report on Form 8-K, such Circular, or such press release without the need for further approval by the other Party. 

Section 9.6    Insurance. Each Party shall insure with reputable insurers against risks usually insured
against by companies carrying on the same or similar business to that Party. The types of coverage, value and terms of insurance of one Party shall be determined in accordance with the Applicable Law, industry practice and the business needs of that
Party. The supply agreement to be negotiated by the Parties in accordance with Section 5.1 shall set forth specific insurance minimum coverage levels that are mutually agreed by the Parties. 

ARTICLE X. 
 TERM;
TERMINATION 
 Section 10.1    Term. This Agreement shall become effective on the Effective Date and
continue in full force and effect unless and until this Agreement is terminated in accordance with Section 10.2 (the “Term”). 

Section 10.2     Termination. 

(a)    Notwithstanding anything contained herein to the contrary, Pfenex may terminate this Agreement in its entirety: 

(i)    upon sixty (60) days’ prior written notice to NT Pharma if NT Pharma has committed a material breach of
this Agreement (with the specific nature of such breach being identified in such notice) and NT Pharma fails to cure such breach within such sixty (60) day period; 

(ii)    immediately upon written notice to NT Pharma following, in the case of insolvency, the appointment of a receiver
by a court of competent jurisdiction with respect to the assets of NT Pharma, the assignment for the benefit of creditors of the assets of NT Pharma or the entry of an order for relief (or similar ruling or proceeding) under applicable bankruptcy or
insolvency laws against NT Pharma; 
 (iii)    upon sixty (60) days’ prior written notice to NT Pharma if NT
Pharma shall fail to comply with the Timeline as set forth in Section 3.1(a)(i) and fails to cure such breach within such sixty (60) day period, in which case NT Pharma shall pay to Pfenex a termination fee in the amount of Two Million
Five Hundred Thousand Dollars ($2,500,000) within five (5) Business Days following the effective date of such termination; provided, however, that such termination right shall not apply if such failure to comply with the Timeline is due to
circumstances outside of NT Pharma’s reasonable control or due to Pfenex’s breach of this Agreement; or 

(iv)    upon written notice to NT Pharma based upon Safety Reasons. If NT Pharma disputes the existence of such Safety
Reasons, such dispute shall be referred to the Executive Steering Committee and Pfenex’s right to terminate this Agreement shall be stayed during the pendency of such dispute resolution process. 

(b)    Notwithstanding anything contained herein to the contrary, NT Pharma may terminate this Agreement in its entirety:

  
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document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

42 

 (i)    upon sixty (60) days’ prior written notice to Pfenex
if Pfenex has committed a material breach of this Agreement (with the specific nature of such breach being identified in such notice) and Pfenex fails to cure such breach within such sixty (60) day period; 

(ii)    immediately upon written notice to Pfenex following, in the case of insolvency, the appointment of a receiver by
a court of competent jurisdiction with respect to the assets of Pfenex, the assignment for the benefit of creditors of the assets of Pfenex or the entry of an Order for Relief under Title 11 of the United States Code against Pfenex; 

(iii)    upon written notice to Pfenex based upon Safety Reasons. If Pfenex disputes the existence of such Safety
Reasons, such dispute shall be referred to the Executive Steering Committee and NT Pharma’s right to terminate this Agreement shall be stayed during the pendency of such dispute resolution process; 

(iv)    upon ninety (90) days’ prior written notice to Pfenex, without cause; or 

(v)    prior to the submission by NT Pharma of a MAA to the SFDA for Product in Mainland China, upon sixty
(60) days’ prior written notice to Pfenex if Pfenex fails to provide in a timely fashion any material information or documentation in its possession or control that is reasonably requested in writing by NT Pharma pursuant to
Section 3.1(b) and fails to cure such breach within such sixty (60) day period, or fails to submit the NDA to the FDA by [***] (unless such failure is due to circumstances outside of Pfenex’s reasonable control), in which case Pfenex
shall pay NT Pharma a payment in the amount of Two Million Five Hundred Thousand Dollars ($2,500,000.00) within five (5) Business Days following the effective date of such termination. 

Section 10.3    General Effects of Termination. Upon the termination of this Agreement, Article I,
Section 3.3 (for the period set forth therein), Section 3.4(c)(ii), Article IV (with respect to payments that accrued prior to termination of this Agreement and Section 4.7), Section 5.9(b), Section 6.2, Sections 8.1 –
8.4, Article IX (with respect to breaches thereof as of the Effective Date), Section 9.4, Section 9.5, Section 9.6 (for a period of three (3) years after the expiration or termination of this Agreement), this Article X, Article
XI and Article XII shall survive and remain in effect. Notwithstanding anything contained in this Agreement to the contrary, in no event shall the termination of this Agreement affect any Party’s obligation to pay any amounts owed to any other
Party as of the time of such termination or release either Party of any other obligation or liability which, at the time of such termination, has already accrued to the other Party or which is attributable to a period prior to such termination.
Except as otherwise expressly provided in this Article X, all rights and obligations of the Parties under this Agreement shall terminate upon termination of this Agreement for any reason. 

Section 10.4    Additional Effects of Termination. If this Agreement is terminated pursuant to
Section 10.2(a) or Section 10.2(b) (excluding Section 10.2(a)(iv) and Section 10.2(b)(iii)), then: 

(a)    Transition Assistance. During the Inventory Sell Down Period, (i) NT Pharma shall cooperate with Pfenex
or its designee(s) to facilitate the transition of the development and commercialization of Product in the Territory to Pfenex or its designee(s) 

  
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document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

43 

 
after the termination of this Agreement, (ii) upon request by Pfenex, NT Pharma shall transfer to Pfenex some or all quantities of any unlabeled Product in its or its Affiliates’
possession or control, within thirty (30) days of NT Pharma’s receipt of such request; provided, however, that Pfenex shall pay NT Pharma the actual cost that NT Pharma incurred to acquire the quantities so provided to
Pfenex, and (iii) upon Pfenex’s request, the Executive Steering Committee shall promptly (but in any event not more than thirty (30) days after such request) meet and establish a transition plan to implement the transition of the
development and commercialization of Product in the Territory to Pfenex or its designee(s), including any clinical studies. Accordingly, NT Pharma shall take all actions reasonably necessary, and cooperate with Pfenex or its designee(s), to
facilitate a smooth, orderly and prompt transition so that Pfenex or its applicable designee is fully enabled and has control over any ongoing development and commercialization of Product in the Territory. 

(b)    Regulatory Materials. Promptly following the Inventory Sell Down Period: 

(i)    NT Pharma shall promptly assign and transfer to Pfenex all Regulatory Materials for Product in the Territory that
are held or controlled by or under authority of NT Pharma or its Affiliates, and shall take such actions and execute such other instruments, assignments and documents as may be necessary to effect the transfer of rights under such Regulatory
Materials to Pfenex and Pfenex shall assume all obligations, including pharmacovigilance obligations, under all Applicable Laws with regard to such Regulatory Materials. 

(ii)    NT Pharma shall cause each of its Affiliates to transfer any such Regulatory Materials to Pfenex. 

(iii)    If Applicable Law prevents or delays the transfer of ownership or possession of Regulatory Materials to Pfenex,
NT Pharma shall grant, and does hereby grant, to Pfenex an exclusive (except as to NT Pharma to the extent necessary to comply with Applicable Laws) and irrevocable right of access and reference to such Regulatory Materials, and shall cooperate
fully to make the benefits of such Regulatory Materials available to Pfenex or its designee(s). 
 (iv)    NT Pharma
shall provide to Pfenex copies of all such Regulatory Materials that are held or controlled by NT Pharma. 

(v)    Except for the parts constituting Confidential Information of NT Pharma, Pfenex shall be free to use and disclose
such Regulatory Materials and other items in connection with the exercise of its rights and licenses under this Section 10.4(b). 

(c)    Inventory Sale. Until one hundred and eighty (180) days following the effective date of such
termination of this Agreement (or, on a jurisdiction-by-jurisdiction basis in the Territory, such earlier date upon which Pfenex or its designee commences the
distribution and sale of Product in such jurisdiction, if applicable, provided that Pfenex or its designee shall have purchased from NT Pharma, before its commencement of the distribution and sale of Product, all remaining Product inventory in that
jurisdiction with at least one (1) year of shelf-life remaining at the time of purchase and at a price agreed by the relevant parties, such price not to exceed the transfer price paid by NT Pharma to Pfenex for such Product) (the
“Inventory Sell Down Period”), NT Pharma and its Affiliates may continue to distribute and sell in the Territory any labeled Product remaining in NT Pharma’s inventory 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

44 

 
as of the effective date of such termination of this Agreement, and Pfenex hereby grants NT Pharma a non-exclusive license to sell and distribute such
remaining labeled Product inventory in the Territory. For clarity, Product sold by NT Pharma or its Affiliates pursuant to this Section 10.4(c) shall be subject to the payments under Article IV with respect thereto. 

(d)    Territory Product Trademarks. Promptly following Pfenex’s request, NT Pharma shall assign and transfer
to Pfenex or its designee(s) any Territory Product Trademarks designated by Pfenex and the goodwill associated therewith at a price agreed by the Parties, excluding NT Pharma’s tradename and associated mark. 

(e)    Costs and Expenses. Except as expressly provided herein, the costs incurred by the Parties under
Section 10.4(a) and Section 10.4(b) shall be equally borne by the Parties. Notwithstanding the foregoing, the costs incurred by the Parties under Section 10.4(a) and Section 10.4(b) shall be borne (i) by the breaching Party
if this Agreement is terminated pursuant to Section 10.2(a)(i), Section 10.2(a)(iii), Section 10.2(b)(i) or Section 10.2(b)(v), (ii) by the insolvent Party if this Agreement is terminated pursuant to Section 10.2(a)(ii) or
Section 10.2(b)(ii) or (iii) by NT Pharma if this Agreement is terminated pursuant to Section 10.2(b)(iv). 
 ARTICLE XI.

 INDEMNIFICATION AND LIABILITY LIMITS 

Section 11.1    Indemnification by Pfenex. Pfenex shall indemnify, defend and hold harmless (collectively,
“Indemnify”) NT Pharma, its Affiliates and its and their respective directors, officers, employees, agents and representatives (the “NT Pharma Indemnitees”) from and against any and all losses, damages, liabilities,
penalties, costs and expenses (including reasonable attorneys’ fees and court costs) (collectively, “Losses”), resulting from suits, claims, actions and demands, in each case, brought by a Third Party (each, a “Third
Party Claim”) against any NT Pharma Indemnitee arising out of (i) any breach by Pfenex of any of its obligations or representations and warranties or covenants hereunder, (ii) the negligence, recklessness or willful
misconduct by Pfenex or any of its Affiliates or any of their respective officers, directors, employees, agents or representatives in connection with the performance of this Agreement, (iii) any violation by Pfenex or any of its Affiliates or
any of their respective officers, directors, employees, agents or representatives of any Applicable Law applicable to the performance of Pfenex’s obligations under this Agreement, or (iv) the development, handling, use, storage, import,
manufacture, transport, promotion, marketing, advertising, distribution or sale of Product by Pfenex or any of its employees, agents, Affiliates or licensees, including claims based upon product liability, bodily injury, death or property damage.
Pfenex’s obligation to Indemnify the NT Pharma Indemnitees pursuant to this Section 11.1 shall not apply to the extent such Losses are attributable to a cause or event described in clause (i), (ii), (iii) or (iv) of
Section 11.2.  
 Section 11.2    Indemnification by
NT Pharma. NT Pharma shall Indemnify Pfenex, its Affiliates and its and their respective directors, officers, employees, agents and representatives (the “Pfenex Indemnitees”) from and against any and all Losses resulting
from Third Party Claims against any Pfenex Indemnitee arising out of (i) any breach by NT Pharma of any of its obligations or representations and warranties or covenants hereunder, (ii) the negligence, recklessness or willful misconduct by
NT Pharma or any of its Affiliates or any of their respective officers, directors, employees, agents or representatives in connection with the performance of this Agreement, (iii) any violation by NT Pharma or any of its Affiliates and any of
their respective officers, directors, employees, agents or 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

45 

 
representatives of any Applicable Laws applicable to the performance of NT Pharma’s obligations under this Agreement, or (iv) the development, handling, use, storage, import, transport,
promotion, marketing, advertising, distribution or sale of Product by NT Pharma or any of its employees, agents, Affiliates or sublicensees, including claims based upon product liability, bodily injury, death or property damage. NT Pharma’s
obligation to Indemnify the Pfenex Indemnitees pursuant to this Section 11.2 shall not apply to the extent such Losses are attributable to a cause or event described in clause (i), (ii), (iii) or (iv) of Section 11.1. 

Section 11.3    Indemnification Procedure. 

(a)    The Party seeking indemnification under this Article XI (the “Indemnified Party”) agrees to give
prompt written notice (the “Indemnification Notice”) to the Party against whom indemnity is sought (the “Indemnifying Party”) of the assertion of any Third Party Claim, or the commencement of any proceeding in
respect of which indemnity may be sought under this Article XI; provided that the failure of an Indemnified Party to promptly notify the Indemnifying Party on a timely basis will not relieve the Indemnifying Party of any liability that it may have
to the Indemnified Party unless and to the extent the Indemnifying Party demonstrates that it is materially prejudiced by the Indemnified Party’s failure to give timely notice. 

(b)    If the Indemnifying Party does not object to any claim or claims made in the Indemnification Notice in a written
objection (the “Indemnification Objection”) prior to the expiration of twenty (20) Business Days from the Indemnifying Party’s receipt of the Indemnification Notice, the Indemnifying Party shall be deemed not to object to
the information contained within the Indemnification Notice. If the Indemnifying Party delivers an Indemnification Objection within such twenty (20) Business Day period, the Indemnifying Party and the Indemnified Party shall attempt in good
faith to resolve the dispute for twenty (20) Business Days after the Indemnifying Party’s receipt of such Indemnification Objection. If no resolution is reached, the dispute shall be resolved in accordance with the provisions of
Section 12.4 and Section 12.5. 
 (c)    The Indemnifying Party, if it so elects, may assume and control the
defense of a Third Party Claim at the Indemnifying Party’s expense and shall consult with the Indemnified Party with respect thereto, including the employment of counsel reasonably satisfactory to the Indemnified Party; provided, however, that
the Indemnifying Party shall not have the right to assume control of such defense if the claim that the Indemnifying Party seeks to assume control of (i) seeks material non-monetary relief or
(ii) involves criminal or quasi-criminal allegations. If the Indemnifying Party is permitted to assume and control the defense of a Third Party Claim and elects to do so, the Indemnified Party shall have the right to employ counsel separate
from counsel employed by the Indemnifying Party in any such action and to participate in the defense thereof, but the fees and expenses of such counsel employed by the Indemnified Party shall be at the expense of the Indemnified Party unless
(x) the Indemnifying Party has specifically agreed in writing otherwise, (y) the Indemnified Party has been advised by outside counsel that a reasonable likelihood exists of a material legal conflict of interest between the Indemnifying
Party and the Indemnified Party or (z) the Indemnifying Party has failed to assume the defense and employ counsel (in which case the fees and expenses of the Indemnified Party’s counsel shall be paid by the Indemnifying Party if the
Indemnifying Party otherwise has an obligation to indemnify the Indemnified Party for the related Third Party Claim). If the Indemnifying Party has assumed the defense of a Third Party Claim in accordance with the terms hereof, the Indemnifying
Party may not enter into a settlement 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

46 

 
or consent to any judgment without the prior written consent of the Indemnified Party unless (A) such settlement or judgment involves monetary damages only, all of which will be paid,
without limitation, by the Indemnifying Party, and no admission of fault or culpability on behalf of any Indemnified Party, and (B) a term of the settlement or judgment is that the Person or Persons asserting such claim unconditionally and
irrevocably release all Indemnified Parties from all liability with respect to such claim; otherwise, the consent of the Indemnified Party shall be required in order to enter into any settlement of, or consent to the entry of a judgment with respect
to, any claim (which consent shall not be unreasonably withhold, delayed or conditioned). If the Indemnifying Party does not assume or is not controlling the defense of a Third Party Claim for any reason, then the Indemnified Party may retain
counsel of its own choosing, at the expense of the Indemnifying Party, and assume and control the defense of such Third Party Claim, and the Indemnifying Party shall have the right to employ counsel separate from counsel employed by the Indemnified
Party in any such action and to participate in the defense thereof, but the fees and expenses of such counsel employed by the Indemnifying Party shall be at the expense of the Indemnifying Party. The Indemnifying Party shall have no obligations with
respect to any Losses resulting from the Indemnified Party’s admission, settlement or other communication without the prior written consent of the Indemnifying Party (which shall not be unreasonably withheld, delayed or conditioned). 

Section 11.4    Limitations on Liability. EXCEPT AS ARISING AS THE RESULT OF THE FRAUD OR WILLFUL MISCONDUCT
BY A PARTY, OR ARISING FROM BREACH OF A PARTY’S CONFIDENTIALITY OBLIGATIONS IN SECTIONS 8.1-8.3 OR OBLIGATIONS UNDER SECTION 3.7 AND EXCEPT WITH RESPECT TO OBLIGATIONS TO INDEMNIFY A PARTY UNDER SECTION
11.1 OR SECTION 11.2, NEITHER PARTY, NOR ANY OF THEIR RESPECTIVE AFFILIATES, DIRECTORS, MEMBERS, OFFICERS, EMPLOYEES, SUBCONTRACTORS OR AGENTS, SHALL HAVE, UNDER ANY LEGAL THEORY (INCLUDING CONTRACT, NEGLIGENCE AND TORT LIABILITY), ANY LIABILITY TO
ANY OTHER PARTY FOR ANY CONSEQUENTIAL, SPECIAL, INDIRECT, INCIDENTAL OR PUNITIVE DAMAGES ARISING OUT OF OR RELATED TO BREACH OF THIS AGREEMENT. 

Section 11.5    Unavailability of Indemnification. If the indemnification provided for in this Article XI is
held by a court of competent jurisdiction to be unavailable to an Indemnified Party with respect to any Loss, then the Indemnifying Party shall, in lieu of indemnifying such Indemnified Party hereunder, contribute to the amount paid or payable by
such Indemnified Party as a result of such Loss in such proportion as is appropriate to reflect the relative fault of, and relative benefit enjoyed by, the Indemnifying Party, on the one hand, and the relative fault of, and relative benefit enjoyed
by, the Indemnified Party, on the other hand, in connection with the actions or omissions that resulted in such Loss as well as any other relevant equitable considerations. 

ARTICLE XII. 

MISCELLANEOUS 

Section 12.1    Force Majeure. Neither Party shall be held liable or responsible to the other Party nor be
deemed to have defaulted under or breached this Agreement for failure or delay in fulfilling or performing any term of this Agreement when such failure or delay is caused by or results from the causes beyond the reasonable control of the affected
Party, including: fire, floods, earthquake, tsunami, ice, tornado, hurricane, windstorm, eruption, explosion, sabotage or vandalism, embargoes, war, acts of war (whether war be declared or 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

47 

 not), invasion, domestic or foreign terrorist act, act of a public enemy, insurrections, riots, civil
commotions, strikes, lockouts or other labor disturbances, shortages of materials, failure of utilities, acts of God or acts, omissions or delays in acting by any Governmental Authority (each, an event of “Force Majeure”); provided
that such affected Party shall provide the other Party with prompt written notice of the circumstances surrounding such a material failure or delay and will use Commercially Reasonable Efforts to overcome the difficulties created thereby and to
resume performance of its obligations as soon as practicable. If the performance of any such obligation under this Agreement is delayed owing to such a Force Majeure for any continuous period of more than one hundred eighty (180) days, the
Parties will consult with respect to an equitable solution, including the possibility of the mutual termination of this Agreement. For the avoidance of doubt, the occurrence of an event of Force Majeure shall not relieve any Party from fulfilling
any obligation required hereunder; rather, the period for performance of such obligation shall be tolled during the occurrence of such Force Majeure. 

Section 12.2    Notices. Any notice, request, approval or consent required or permitted to be given by any
Party shall be in writing and shall be to the Parties at the addresses or facsimile number listed below, or such other address or facsimile number as such Party will have last given by notice to the other Party, and shall be deemed to have been
sufficiently given when delivered in person, transmitted by facsimile (receipt verified) or by express courier service (signature required) or five (5) days after it was sent by registered mail, return receipt requested (or its equivalent),
provided that no postal strike or other disruption is then in effect or comes into effect within two (2) days after such mailing. 
  

			
	If to Pfenex, to:	  	Pfenex Inc.
		  	10790 Roselle Street
		  	San Diego, CA 92121
		  	Facsimile: 858-224-7303
		  	Attention: Patrick Lucy, Chief Business Officer
		
	With a copy to:	  	Wilson Sonsini Goodrich & Rosati
		  	650 Page Mill Road
		  	Palo Alto, CA 94304
		  	Facsimile: 650-493-6811
		  	Attention: Ian B. Edvalson
		
	If to NT Pharma, to:	  	China NT Pharma Group Company Ltd.
		  	Room 2305 – 2306, 23/F, China Resources
		  	Building
		  	26 Habour Road
		  	Wanchai, Hong Kong
		  	Facsimile: +852 2508 9459
		  	Attention: Senior Director of Global Business
		
	With a copy to:	  	China NT Pharma Group Company Ltd.
		  	11/F, S2, The Bund Finance Center
		  	No. 600 Zhongshan East 2nd Road
		  	Huangpu District, Shanghai, P.R.C.
		  	Facsimile: +86 21 2315 9900
		  	Attention: Head of Legal

  
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document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

48 

 Section 12.3    Governing Law. This Agreement shall be
construed, governed, interpreted and applied in accordance with the laws of the State of New York, without giving effect to any conflicts of laws principles. The United Nations Convention on Contracts for the International Sale of Goods shall not
apply to this Agreement. 
 Section 12.4    Internal Dispute Resolution. In the event that a dispute,
difference or question arises pertaining to any matters which are the subject of this Agreement not otherwise resolved in accordance with Section 7.4(b) (a “Dispute”), prior to the initiation of arbitration as described in
Section 12.5, the Dispute shall be submitted to the Chief Executive Officers (or their respective designees) of NT Pharma and Pfenex, who shall use their good faith efforts to resolve the Dispute within fourteen (14) days after notice is
provided pursuant to Section 12.2. If any such Dispute is not resolved by the Chief Executive Officers or their designees within fourteen (14) days after submission of such Dispute to such officers, then the Dispute shall be resolved in
accordance with the arbitration procedure set forth in Section 12.5. For clarity, Disputes include disagreements regarding (a) the interpretation of this Agreement and (b) the breach or alleged breach by a Party of its obligations
under this Agreement and associated remedies and damages of a Party in the event of a breach of the Agreement by the other Party (and the structure and payment of any such damages). 

Section 12.5    Arbitration. 

(a)    If the Parties are unable to resolve a Dispute under Section 12.4, then the Parties agree that all Disputes of
any kind or nature (except those described in Section 12.5(c)) shall be resolved exclusively pursuant to the arbitration clauses set forth in Exhibit B; provided that judgment upon any arbitral award may be confirmed and entered by any
court having competent jurisdiction over the Parties or their assets. The determination resulting from such arbitration shall be final, binding and non-appealable for purposes of this Agreement. Nothing in
Section 12.4 or this Section 12.5 shall limit any Party’s right to seek and obtain in any such arbitration any equitable relief to which such Party is entitled hereunder. 

(b)    Notwithstanding Section 12.4 and Section 12.5(a), an application for emergency or temporary injunctive
relief by any Party shall not be subject to internal dispute resolution under Section 12.4 or arbitration under Section 12.5(a); provided, however, that the remainder of any such Dispute (beyond the application for emergency or temporary
injunctive relief) shall be subject to internal dispute resolution under Section 12.4 and arbitration under Section 12.5(a), as applicable. 

(c)    Any Dispute relating to the ownership, scope, validity, enforceability or infringement of any Patent covering the
manufacture, use or sale of Product or of any trademark rights relating to any Product shall be submitted to the Governmental Authority of competent jurisdiction in the country where such Patent or trademark exists. 

Section 12.6    Relationship of the Parties. The relationship of the Parties under this Agreement is that of
independent contractors. Nothing contained in this Agreement, nor the performance of any obligations under this Agreement, shall create an association, partnership, joint venture or relationship of principal and agent, master and servant, or
employer and employee between the Parties. No Party has any express or implied right or authority under this Agreement to assume or create any obligations or make any representations or warranties on behalf of or in the name of the other Party or
such other Party’s Affiliates. 

  
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document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

49 

 Section 12.7    Assignment. Neither Party may assign,
transfer or sublicense any of its rights or obligations under this Agreement without the prior written consent of the other Party, except that (a) any Party may assign this Agreement, without such consent, (i) in whole or in part to an
Affiliate of such Party, upon written notice to the other Party of such assignment, provided that such Party hereby guarantees the performance of any such Affiliate, or (ii) in whole to any Third Party successor by merger, acquisition or sale
of all or substantially all of such Party’s assets to which this Agreement relates, upon written notice to the other Party of any such assignment, provided that such Third Party shall assume the obligations and covenants of the assigning Party
under this Agreement, and (b) Pfenex may assign its rights and obligations with respect to the manufacture and supply of Product for the Territory as set forth in Section 5.1 through Section 5.7, including Pfenex’s rights and
obligations under the supply agreement and quality agreement referenced in Section 5.1 (collectively, the “Territory Manufacturing Obligations”), without such consent, to a U.S. Collaborator (as defined below), provided that
such U.S. Collaborator shall (I) assume the Territory Manufacturing Obligations, and (II) agree in writing, as may be reasonably requested by NT Pharma, to provide NT Pharma with necessary documentation or information to enable NT Pharma
to complete the relevant procedures with Regulatory Agencies with respect to such change. For purposes of this Agreement, “U.S. Collaborator” means a Third Party to which Pfenex grants the right to commercialize Product in a
territory that includes the United States. Except as expressly provided in this Section 12.7, any attempted assignment or transfer of this Agreement shall be null and void. 

Section 12.8    Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of the
Parties and their respective permitted successors and assigns; and by their signatures hereto, each Party intends to, and does hereby, become bound. 

Section 12.9    Entire Agreement; Amendments. This Agreement, the Common Interest Agreement (when executed),
that certain memorandum exchanged between the Parties before the Effective Date and referencing this Agreement, and the schedules and exhibits hereto and thereto, contain the entire understanding of the Parties with respect to the subject matter
herein, and cancel all previous agreements (oral and written), negotiations and discussions, dealing with the same subject matter. The Parties, from time to time during the Term, may modify any of the provisions hereof only by an instrument in
writing duly executed by the Parties. 
 Section 12.10    Severability. If any part or parts of this
Agreement are held to be illegal, void or ineffective, the remaining portions of this Agreement shall remain in full force and effect. If any of the terms or provisions are in conflict with any Applicable Law, then such term(s) or provision(s) shall
be deemed inoperative to the extent that they may conflict therewith, and shall be deemed to be modified so as to conform with such Applicable Law. In the event of any ambiguity respecting any term or terms hereof, the Parties agree to construe and
interpret such ambiguity in good faith in such a way as is appropriate to ensure its enforceability and viability. If any exclusive remedy provided hereunder is determined to be unenforceable, then the Party entitled to such remedy shall in lieu
thereof be entitled to such other remedies as are available to such Party under this Agreement or in law or equity under Applicable Law, subject in any case to the limitations imposed by, and other terms of, this Agreement. 

Section 12.11    Rules of Construction. Interpretation of this Agreement shall be governed by the following
rules of construction: (a) words in the singular shall be held to include the plural and vice versa, and words of one gender shall be held to include the other 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

50 

 
gender as the context requires; (b) references to the terms article, section, paragraph and exhibit are references to the articles, sections, paragraphs and exhibits to this Agreement unless
otherwise specified; (c) references to “$” and “Dollars” mean United States dollars; (d) the word “including” and words of similar import mean “including without limitation,” unless otherwise
specified; (e) the word “or” shall have the meaning associated with the phrase “and/or” and not be exclusive unless otherwise specified; (f) provisions shall apply, when appropriate, to successive events and
transactions; (g) a reference to any Person includes such Person’s successors and permitted assigns; (h) this Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the
Party drafting or causing any instrument to be drafted; (i) the word “day” means a calendar day unless otherwise specified; (j) the word “notice” means notice in writing (whether or not specifically stated) and shall
include notices, consents, approvals and other communications contemplated under this Agreement; (k) each accounting term not otherwise defined in this Agreement has the meaning assigned to it in accordance with GAAP; (l) the words
“hereof,” “herein,” “hereby,” “hereunder” and derivative or similar words refer to this Agreement (including any Exhibits); (m) provisions that require that a Party, the Parties or the Executive Steering
Committee “agree,” “consent” or “approve” or the like shall require that such agreement, consent or approval be specific and in writing, whether by written agreement, letter, approved minutes or otherwise;
(n) references to any specific law, rule or regulation, or article, section or other division thereof, shall be deemed to include the then-current amendments thereto or any replacement law, rule or regulation thereof; and (o) neither Party
or its Affiliates shall be deemed to be acting “on behalf of” the other Party hereunder. All Exhibits referred to herein are hereby incorporated by reference. The headings contained in this Agreement are used only as a matter of
convenience, and in no way define, limit, construe or describe the scope or intent of any section of this Agreement. 

Section 12.12    Waiver. No failure or delay on the part of any Party in either exercising or enforcing any
right under this Agreement shall operate as a waiver of, or impair, any such right. No single or partial exercise or enforcement of any such right shall preclude any other or further exercise or enforcement thereof or the exercise or enforcement of
any other right. No waiver of any such right shall have effect unless given in a signed writing. No waiver of any such right shall be deemed a waiver of any other right. 

Section 12.13    English Language. This Agreement shall be written and executed in the English language. Any
translation into any other language shall not be an official version hereof, and in the event of any conflict in interpretation between the English version and such translation, the English version shall control. 

Section 12.14    Counterparts. This Agreement may be executed in multiple counterparts, and all such executed
counterparts shall constitute the same agreement. 
 Section 12.15    Electronic Execution and Delivery. A
facsimile, PDF or other reproduction of this Agreement may be executed by one or more Parties, and an executed copy of this Agreement may be delivered by one or more Parties by facsimile, e-mail or other
electronic transmission device pursuant to which the signature of or on behalf of such Party can be seen, and such execution and delivery shall be considered valid, binding and effective for all purposes. At the request of any Party, all Parties
agree to execute an original of this Agreement as well as any facsimile or reproduction thereof. The Parties hereby agree that no Party shall raise the execution of a facsimile, PDF or other reproduction of this Agreement, or the fact that any
signature or document was transmitted or communicated by facsimile, e-mail or other electronic transmission device, as a defense to the formation of this Agreement. 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

51 

 Section 12.16    License Protection. The Parties
acknowledge and agree that each of Pfenex and NT Pharma shall be entitled to all of the rights and protections set forth in Section 365(n) of Title 11 of the United States Code with respect to all licenses contained herein. 

Section 12.17    Further Assurances. Each Party agrees to execute, acknowledge and deliver such further
instruments, and to do all such other acts, as may reasonably be necessary or appropriate in order to carry out the purposes and intent of this Agreement. 

Section 12.18    Compliance with Applicable Laws. Each Party shall comply with all Applicable Laws governing
its performance of the terms of this Agreement. 
 Section 12.19    Expenses. Except as otherwise expressly
set forth herein, each Party shall pay all costs and expenses incident to its negotiation and preparation of this Agreement and to its performance and compliance with all obligations contained herein on its part to be performed or complied with,
including the fees, expenses and disbursements of its counsel and other advisors. 

Section 12.20    Third Party Beneficiaries. Nothing herein expressed or implied is intended or shall be
construed to confer upon or give to any Person, other than the Parties and their respective permitted successors and assigns, any rights or remedies under or by reason of this Agreement, except as contemplated by the terms of Article XI. 

Section 12.21    Equitable Remedies. Each Party acknowledges that a breach or threatened breach by such Party of any
of its obligations under this Agreement may give rise to irreparable harm to the other Party for which monetary damages may not be an adequate remedy and hereby agrees that, in the event of such breach or a threatened breach by any Party of any such
obligations, the other Party suffering such harm shall, in addition to any and all other rights and remedies that may be available to it in respect of such breach, be entitled to seek equitable relief, including a temporary restraining order, an
injunction or specific performance, subject in any case to Section 12.4 and Section 12.5, without the obligation to post any bond. 

(The remainder of this page is intentionally left blank. The signature page follows.) 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

52 

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

			
	PFENEX INC.
		
	By:	 	 /s/ Eef Schimmelpennink

	Name:	 	Eef Schimmelpennink
	Title:	 	CEO
	
	CHINA NT PHARMA GROUP COMPANY LTD.
		
	By:	 	 /s/ NG Tit

	Name:	 	NG Tit
	Title:	 	Chairman & CEO

 [Signature Page to Development and License Agreement] 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

53 

 Exhibit A 

Press Release (for US) 
  

 
 Pfenex and NT Pharma Enter into a Development and License Agreement for Pfenex’s PF708 Therapeutic
Equivalent Candidate to Forteo® 
 SAN DIEGO and HONG KONG April 18, 2018—Pfenex Inc.
(NYSE AMERICAN: PFNX) and China NT Pharma Group Company Limited (NT Pharma) (HKG:1011) today announced an agreement under which Pfenex granted NT Pharma non-exclusive development and exclusive
commercialization rights to PF708, a teriparatide therapeutic equivalent candidate to Eli Lilly & Company’s Forteo®, in Mainland China, Hong Kong, Singapore, Malaysia and
Thailand. 
 In accordance with the agreement, Pfenex received a payment of $2.5 million upon signing of the agreement and may be eligible to receive
additional payments of up to $22.5 million based on the achievement of certain development, regulatory, and sales-related milestones. Pfenex may also be eligible to receive double-digit royalties on net product sales. NT Pharma will be
responsible for any further development required to achieve regulatory approval as well as commercialization activities in the territory. 
 “This
agreement will expand NT Pharma’s orthopedic product portfolio which currently includes Miacalcic franchise acquired from Novartis. The collaboration with Pfenex will leverage the strengths and resources of both companies to accelerate the
development and commercialization of the product,” said Mr. Ng Tit, NT Pharma Chairman and Chief Executive Officer. “This partnership will open further discussion on potential partnering for other Pfenex pipeline product
candidates.” 
 “We are pleased to announce our collaboration with NT Pharma, a recognized pharmaceutical leader in China and the Asia Pacific
region. Upon receipt of the relevant marketing approvals, we believe this collaboration will allow us to drive sales of PF708 in key pharmaceutical markets,” said Eef Schimmelpennink, Chief Executive Officer of Pfenex. “NT Pharma is well
positioned to complete the development and commercialization of the product in the territory given its demonstrated experience in the orthopedic space.” 

About Pfenex Inc. 
 We are a clinical-stage
development and licensing biotechnology company focused on leveraging our Pfenex Expression Technology® to improve protein therapies for unmet patient needs. Using the patented Pfenex
Expression Technology platform, we have created an advanced pipeline of therapeutic equivalents, vaccines, biologics and biosimilars. Our lead product candidates are PF708, a therapeutic equivalent candidate to Forteo® (teriparatide) for the treatment of osteoporosis, and our novel anthrax vaccine candidates, Px563L and RPA563, funded through an advanced development contract with the U.S. government. In
addition, we are developing hematology/oncology products, including PF743, a recombinant crisantaspase, and PF745, a recombinant crisantaspase with half-life extension technology, in collaboration with Jazz Pharmaceuticals. Furthermore, our pipeline
includes biosimilar candidates to Lucentis® and 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 Neulasta®. 

About China NT Pharma Group Company Limited (NT Pharma) 

NT Pharma is a technology-based pharmaceutical company which is principally engaged in the investment, research and development (“R&D”),
manufacturing and sales of pharmaceutical products in the People’s Republic of China (“China” or “PRC”) and countries overseas, with its products covering therapeutic areas of severe illness such as oncology, orthopedics,
Central Nervous System (“CNS”), hepatology and respiratory system. NT Pharma owns two new Class 1 drugs in China, one well-known international brand-name drug, and a number of generic drugs, and the Group conducts its production
through three of its subsidiaries, namely Suzhou First Pharmaceutical Co., Ltd. (“Suzhou First”), Jiangsu NT Biopharma Co., Ltd. (“Jiangsu Biopharma”) and NT Pharma Changsha Pharmaceutical Co., Ltd. (“Changsha Pharma”)
and overseas partnered CMO. The Group also owns several sales and distribution companies with around 1,000 sales professionals and R&D specialists. The Group has an extensive promotion network in China, covering nearly 10,000 hospitals. 

Pfenex Cautionary Note Regarding Forward-Looking Statements 

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can
identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,”
“target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these words or other similar terms or expressions
that concern Pfenex’s expectations, strategy, plans or intentions. Forward-looking statements in this press release include, but are not limited to, statements regarding the future potential of PF708, including development and commercialization
PF708; the potential to receive future milestone and royalty payments under Pfenex’s agreement with NT Pharma; the expectation for PF708 to obtain marketing approval in key pharmaceutical markets; the belief that this agreement will accelerate
development and commercialization of PF708; the potential for the collaboration to drive sales of PF708 in key pharmaceutical markets; the belief that NT Pharma is well positioned to complete the development and commercialization of PF708; and the
potential for future collaborations with Pfenex and NT Pharma. Actual results may differ materially from those indicated by these forward-looking statements as a result of the uncertainties inherent in the clinical drug development process,
including, without limitation, challenges in successfully demonstrating the efficacy and safety of product candidates; the pre-clinical and clinical results for product candidates, which may not support
further development of product candidates or may require additional clinical trials or modifications of ongoing clinical trials or regulatory pathways; challenges related to commencement, patient enrollment, completion, and analysis of clinical
trials; Pfenex’s ability to obtain additional funding to support its business activities and establish and maintain strategic business alliances and new business initiatives; Pfenex’s dependence on third parties for development,
manufacture, marketing, sales and distribution of products; unexpected expenditures; and difficulties in obtaining and maintaining intellectual property protection for product candidates. Information on these and additional risks, uncertainties, and
other information affecting Pfenex’s business and operating results is contained in Pfenex’s Annual Report on Form 10-K for the year ended December 31, 2017 and in Pfenex’s subsequent
reports filed with the 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 Securities and Exchange Commission. The forward-looking statements in this press release are based on
information available to Pfenex as of the date hereof, and Pfenex disclaims any obligation to update any forward-looking statements, except as required by law. 

Pfenex investors and others should note that we announce material information to the public about the Company through a variety of means, including our
website (http://www.pfenex.com/), our investor relations website (http://pfenex.investorroom.com/), press releases, SEC filings, public conference calls, corporate Twitter account (https://twitter.com/pfenex), Facebook page (https://www.facebook.com/Pfenex-Inc-105908276167776/timeline/), and LinkedIn page (https://www.linkedin.com/company/pfenex-inc) in
order to achieve broad, non-exclusionary distribution of information to the public and to comply with our disclosure obligations under Regulation FD. We encourage our investors and others to monitor and review
the information we make public in these locations as such information could be deemed to be material information. Please note that this list may be updated from time to time. 

Pfenex Contact 
 Susan A. Knudson 

Chief Financial Officer 
 (858)
352-4324 
 SKnudson@pfenex.com 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 Press Release (for Hong Kong) 

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no
representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. 

 
 

 
 DISCLOSEABLE TRANSACTION 

IN RELATION TO 
 DEVELOPMENT AND
LICENSE AGREEMENT 
 THE LICENSE AGREEMENT 
 On 18 April 2018,
China NT Pharma Group Company Limited (the “Company”, as the “licensee”), entered into the development and license agreement (the “License Agreement”) with Pfenex Inc., a Delaware corporation, as the licensor (the
“Licensor”) (“Pfenex” and the Company will be collectively referred to as the “Parties” or individually as a “Party”), under which the Company will have the exclusive right to commercialize a therapeutic
equivalent/biosimilar teriparatide injection to the reference drug product Forteo® (the “Product”) in Mainland China, Hong Kong, Singapore, Malaysia and Thailand (the
“Territories” and each a “Territory”) and the Company will have the non-exclusive right to conduct development of the Product for commercialization in the Territory. The Product has been
undergoing a robust development program in the United States. 
 LISTING RULES IMPLICATIONS 

As some of the applicable percentage ratios calculated in accordance with Rule 14.07 of the Listing Rules in respect of the aggregate estimated amount of the
consideration payable by the Group to Pfenex pursuant to the License Agreement exceed 5% but all of the applicable percentage ratios are less than 25%, the License Agreement is only subject to the reporting and announcement requirements but arc
exempt from the shareholders’ approval requirement under Chapter 14 of the Listing Rules. 
 The major terms of the License Agreement are as follows:

 THE LICENSE AGREEMENT 
  

					
	Date:	  	18 April 2018	 	
			
	Parties:	  	 (i) the Licensor:
	 	Pfenex
			
		  	 (ii)  the Licensee:
	 	the Company

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 To the best of the Directors’ knowledge, information and belief and having made all
reasonable enquiry, the Licensor and its ultimate beneficial owner(s) are third parties independent of the Company and connected persons (as defined in the Listing Rules) of the Company. 

 

			
	Subject matter:	  	establish a partnership providing the Company with the right to develop and exclusively commercialize the Product in the Territories
		
	Commencement date:	  	the date of signing of the License Agreement
		
	Consideration:	  	The consideration has been agreed by Parties based on the analysis of the Product future commercial potential with reference to the existing revenue generated from the branded original product - Forteo.
		
		  	The Company will pay a one-time and non-refundable upfront payment of US$2,500,000 upon signing the License Agreement to acquire exclusive rights of the Product in the Territories and may
incur additional payments of up to US$22,500,000 based on the achievement of certain development, regulatory and sales-related milestones. The Company may also be required to pay double-digit royalties on net product sales.
		
	Terms:	  	Pursuant to the License Agreement, the Company’s rights will continue on an ongoing basis in the Territories, as long as the Company continues to pursue development and commercialisation of the Product in the Territories,
unless and until either Party exercises specified termination rights.

 REASONS FOR AND BENEFITS OF ENTERING INTO THE LICENSE AGREEMENT 

The Group is principally engaged in the investment, research and development, manufacturing and sales of pharmaceutical products in the People’s Republic
of China and overseas countries. The Board is of the view that entering into the License Agreement will expand the orthopaedics product portfolio and biologics therapy of the Group, which is expected to benefit the Company and its shareholders as a
whole. The collaboration of the Parties will utilize the strengths and resources of both companies to accelerate the development and commercialisation of biosimilars in which the Group has been highly interested. This cooperation will bring further
discussion on the strategic cooperation for other Pfenex’s pipeline research and development candidates. 
 INFORMATION OF THE PARTIES 

The Group 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 The Company is an investment holding company. The Group is principally engaged in research and development,
manufacturing, sales and distribution of pharmaceutical products, as well as the provision of pharmaceutical marketing and promotion services in China with its proprietary core products covering such therapeutic areas as oncology, central nervous
system, hepatopathy and respiratory system. The Group has an extensive promotion network in China, covering over nearly 10,000 hospitals. The Group conducts its production through three of its subsidiaries, namely Suzhou First Pharmaceutical Co.,
Ltd. (“Suzhou First”), Jiangsu NT Biopharma Co., Ltd. (“Jiangsu Biopharma”) and NT Pharma Changsha Pharmaceutical Co., Ltd. (“Changsha Pharma”), Suzhou First has been certified by the new GMP, and has obtained approvals
from the State Food and Drug Administration of China for over 100 types of drug registration licenses. Jaingsu Biopharma mainly manufactures anti-tumor drug and Changsha Pharma mainly manufactures traditional Chinese medicine for treatment of
hepatopathy. During 2017, the Group substantially dedicated its focus on improving its operating profit margins, expanding its proprietary product portfolio and developing its own research and development capabilities. For the year ended 31 December
2017, the overall revenue of the Group was RMB604.9 million and operating profit improved significantly to RMB269.6 million. 
 Pfenex 

Pfenex Inc. is a company incorporated in United States of America and listed on the NYSE American Stock Exchange. Pfenex is a clinical-stage development and
licensing biotechnology company focused on leveraging its Pfenex Expression Technology® to improve protein therapies for unmet patient needs. Using the patented Pfenex Expression Technology
platform, Pfenex has created an advanced pipeline of therapeutic equivalents, vaccines, biologics and biosimilars. Pfenex lead product candidates are PF708, a therapeutic equivalent candidate to
Forteo® (teriparatide) for the treatment of osteoporosis, and its novel anthrax vaccine candidates, Px563L and RPA563, funded through an advanced development contract with the U.S. government.
In addition, Pfenex is developing hematology oncology products, including PF743, a recombinant crisantaspase, and PF745, a recombinant crisantaspase with half-life extension technology, in collaboration with Jazz Pharmaceuticals. Furthermore, Pfenex
pipeline includes biosimilar candidates to Lucentis® and Neulasta®. 

GENERAL 
 All the terms and conditions of the License Agreement
are negotiations between the Parties at arm’s length basis. The Directors believe that the terms of the License Agreement are fair and reasonable and in the interests of the shareholders and the Company as a whole. 

To the best of the knowledge, information and belief of the Directors and having made all reasonable enquiries, Pfenex and their ultimate beneficial owncr(s)
(where applicable) are third parties independent of the Company and its connected persons (as defined in the Listing Rules) as at the date of this announcement. 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 LISTING RULES IMPLICATIONS 

As some of the applicable percentage ratios calculated in accordance with Rule 14.07 of the Listing Rules in respect of the aggregate estimated amount of the
consideration payable by the Group to the Pfenex pursuant to the License Agreement exceed 5% but all of the applicable percentage ratios arc less than 25%, the License Agreements are only subject to the reporting and announcement requirements but
are exempt from the shareholders’ approval requirement under Chapter 14 of the Listing Rules. 
 DEFINITIONS 

 

			
	 “Board”
	  	 the board of Directors

	“Company” or “NT Pharma”	  	China NT Pharma Group Company Limited, a company incorporated in the Cayman Islands with limited liability, the shares of which are listed on the Main Board of the Stock Exchange
		
	“Commencement Date”	  	means the date of signing of this agreement
		
	“Director (s)”	  	the director(s) of the Company
		
	“DNA”	  	Deoxyribonucleic acid
		
	“FDA”	  	Food and Drug Administration, the United States of America
		
	“GMP”	  	Good Manufacturing Practice
		
	“Group”	  	the Company and its subsidiaries
		
	“Listing Rules”	  	the Rules Governing the Listing of Securities on the Stock
		
		  	Exchange
		
	“Shareholders”	  	holders of the Shares
		
	“Stock Exchange”	  	The Stock Exchange of Hong Kong Limited
		
	“USS”	  	United States dollars, the lawful currency of the US
		
	“%”	  	percent

  

	
	By Order of the Board
	China NT Pharma Group Company Limited
	Ng Tit
	Chairman

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 Hong Kong, 18 April 2018 

As at the date of this announcement, the executive Directors are Mr. Ng Tit, Ms. Chin Yu and Mr. Wu Weizhong; the
non-executive Directors are Dr. Qian Wei and Ms. Lou Jianying; and independent non-executive Directors are Mr. Tze Shan Hailson Yu, Mr. Patrick Sun,
and Dr. Lap-Chee Tsui. 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 Exhibit B 

Arbitration 
 Any Dispute
that has not been resolved in accordance with such Section 12.4 shall be referred to and finally resolved by arbitration administered by the Hong Kong International Arbitration Centre (HKIAC) under the HKIAC Administered Arbitration Rules in
force when the notice of arbitration is submitted. 
 The seat of arbitration shall be Hong Kong. 

The number of arbitrators shall be three (3). The arbitration proceedings shall be conducted in English. 

Pending the selection of the arbitration panel or pending the arbitration panel’s determination of the merits of any Dispute, either
Party may seek interim or provisional relief from a court of competent jurisdiction as necessary to protect the interests of such Party. 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 Exhibit C 

Existing Trademark 
  

																	
	 Jurisdiction
	  	Trademark Name	  	Status	  	Classes	 	  	Filing Date	 	  	Appl. No.	 
	 Mainland China
	  	BONSITY	  	Pending	  	 	5	 	  	 	June 30, 2017	 	  	 	25083070	 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

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