Document:

Amended and Restated Collaborative Research and License Agreement

 Exhibit 10.13 
 CONFIDENTIAL TREATMENT REQUESTED 
 Final Execution Version

 AMENDED AND RESTATED 
 COLLABORATIVE RESEARCH AND LICENSE AGREEMENT 
 By and Among

 pSivida Corp. 
 pSivida US, Inc. 
 pSiMedica Limited 

and 

Pfizer Inc. 
 Dated June 14, 2011 

 CONFIDENTIAL TREATMENT REQUESTED 

TABLE OF CONTENTS 
  

									
	 	 	 	  	 	  	Page	 
			
	 1.
	 	 Definitions
	  	 	1	  
			
	 2.
	 	 Management of the Development Program
	  	 	13	  
				
		 	 2.1.
	  	Joint Steering Committee	  	 	13	  
				
		 	 2.2.
	  	Decision-Making	  	 	13	  
				
		 	 2.3.
	  	Dispute Resolution	  	 	14	  
				
		 	 2.4.
	  	Meetings	  	 	14	  
				
		 	 2.5.
	  	Minutes	  	 	14	  
				
		 	 2.6.
	  	JSC Functions and Powers	  	 	15	  
				
		 	 2.7.
	  	Independence	  	 	15	  
			
	 3.
	 	 Development
	  	 	16	  
				
		 	 3.1.
	  	Pre-POC Development Plan	  	 	16	  
				
		 	 3.2.
	  	Development Costs Prior to Proof-of-Concept	  	 	16	  
				
		 	 3.3.
	  	Ceasing Development Prior to Proof of Concept	  	 	16	  
				
		 	 3.4.
	  	Achievement of Proof-of-Concept	  	 	17	  
				
		 	 3.5.
	  	Funding Option Notice	  	 	17	  
				
		 	 3.6.
	  	PFIZER Funding Option	  	 	18	  
				
		 	 3.7.
	  	Cooperation	  	 	20	  
				
		 	 3.8.
	  	Conduct of Development	  	 	20	  
				
		 	 3.9.
	  	Development Plan Records	  	 	20	  
				
		 	 3.10.
	  	Reports	  	 	20	  
				
		 	 3.11.
	  	Termination of Development Plans	  	 	21	  
			
	 4.
	 	 Licenses
	  	 	21	  
				
		 	 4.1.
	  	License to PFIZER	  	 	21	  
				
		 	 4.2.
	  	License to PSIVIDA	  	 	23	  
				
		 	 4.3.
	  	Retained Rights	  	 	24	  
			
	 5.
	 	 Diligence, Regulatory Approvals and Manufacturing/Supply
	  	 	24	  
				
		 	 5.1.
	  	Diligence	  	 	24	  

  
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		 	 5.2.
	  	Regulatory Affairs	  	 	24	  
				
		 	 5.3.
	  	Recalls or Other Corrective Action	  	 	26	  
				
		 	 5.4.
	  	Manufacturing and Supply—General	  	 	26	  
				
		 	 5.5.
	  	Manufacture and Supply—Clinical Supplies	  	 	27	  
				
		 	 5.6.
	  	Commercialization/Pricing	  	 	28	  
				
		 	 5.7.
	  	Disclosure of Technology by PSIVIDA	  	 	28	  
				
		 	 5.8.
	  	Disclosure of Technology by PFIZER	  	 	28	  
			
	 6.
	 	 Fees, Milestones and Royalties
	  	 	28	  
				
		 	 6.1.
	  	Upfront Payment	  	 	28	  
				
		 	 6.2.
	  	Product Milestone Payments	  	 	28	  
				
		 	 6.3.
	  	Milestone Payments Generally	  	 	30	  
				
		 	 6.4.
	  	PFIZER Royalty Payments	  	 	31	  
				
		 	 6.5.
	  	Generic Products	  	 	31	  
				
		 	 6.6.
	  	Duration of Royalty Payments	  	 	31	  
				
		 	 6.7.
	  	Notices of Termination	  	 	31	  
			
	 7.
	 	 Accounting and Procedures for Payment
	  	 	31	  
				
		 	 7.1.
	  	Inter-Company Sales	  	 	31	  
				
		 	 7.2.
	  	Currency	  	 	32	  
				
		 	 7.3.
	  	Royalty Payments	  	 	32	  
				
		 	 7.4.
	  	Method of Payments	  	 	32	  
				
		 	 7.5.
	  	Inspection of Records	  	 	32	  
				
		 	 7.6.
	  	Tax Matters	  	 	33	  
			
	 8.
	 	 Patents and Infringement
	  	 	34	  
				
		 	 8.1.
	  	Disclosure and Ownership of Program Technology and Program Patent Rights	  	 	34	  
				
		 	 8.2.
	  	Prosecution and Maintenance of PSIVIDA Patent Rights and PSIVIDA Program Patent Rights in the Territory	  	 	34	  
				
		 	 8.3.
	  	Enforcement of PSIVIDA Patent Rights and PSIVIDA Program Patent Rights	  	 	36	  
				
		 	 8.4.
	  	Prosecution and Maintenance of PFIZER Program Patent Rights in the Territory	  	 	37	  
				
		 	 8.5.
	  	Enforcement of PFIZER Program Patent Rights	  	 	38	  
				
		 	 8.6.
	  	Patent Term Extension	  	 	40	  
				
		 	 8.7.
	  	Orange Book Listings	  	 	40	  

  
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		 	 8.8.
	  	Patent Invalidity Claim with Respect to PSIVIDA Patent Rights and PSIVIDA Program Patent Rights	  	 	40	  
				
		 	 8.9.
	  	Patent Invalidity Claim with Respect to PFIZER Program Patent Rights	  	 	41	  
				
		 	 8.10.
	  	Notification of Third Party Claim	  	 	41	  
				
		 	 8.11.
	  	Third Party Royalty Obligations	  	 	42	  
			
	 9.
	 	 Confidentiality; Publication
	  	 	43	  
				
		 	 9.1.
	  	Confidential Information	  	 	43	  
				
		 	 9.2.
	  	Disclosure of Agreement Terms	  	 	44	  
				
		 	 9.3.
	  	Other Disclosures	  	 	45	  
				
		 	 9.4.
	  	Filing, Registration or Notification of the Agreement	  	 	46	  
			
	 10.
	 	 Representations and Warranties
	  	 	46	  
				
		 	 10.1.
	  	PSIVIDA Representations and Warranties	  	 	46	  
				
		 	 10.2.
	  	PFIZER Representations and Warranties	  	 	49	  
				
		 	 10.3.
	  	Disclaimer of Warranty	  	 	51	  
			
	 11.
	 	 Additional Covenants
	  	 	51	  
			
	 12.
	 	 Term
	  	 	52	  
			
	 13.
	 	 Termination
	  	 	52	  
				
		 	 13.1.
	  	Termination Rights	  	 	52	  
				
		 	 13.2.
	  	Accrued Obligations	  	 	53	  
				
		 	 13.3.
	  	Effect of Termination	  	 	54	  
				
		 	 13.4.
	  	Bankruptcy	  	 	58	  
				
		 	 13.5.
	  	Change of Control	  	 	58	  
				
		 	 13.6.
	  	Breach Remedy	  	 	59	  
			
	 14.
	 	 Indemnification and Insurance
	  	 	59	  
				
		 	 14.1.
	  	Indemnification	  	 	59	  
				
		 	 14.2.
	  	Losses	  	 	60	  
				
		 	 14.3.
	  	Insurance	  	 	60	  
				
		 	 14.4.
	  	Defense Procedures; Procedures for Third Party Claims	  	 	61	  
				
		 	 14.5.
	  	Disclaimer of Liability for Consequential Damages	  	 	63	  
				
		 	 14.6.
	  	SOLE REMEDY	  	 	63	  
			
	 15.
	 	 Governing Law and Jurisdiction
	  	 	63	  
				
		 	 15.1.
	  	Governing Law	  	 	63	  

  
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		 	 15.2.
	  	Jurisdiction	  	 	63	  
			
	 16.
	 	 Miscellaneous
	  	 	64	  
				
		 	 16.1.
	  	Termination of Prior Agreements	  	 	64	  
				
		 	 16.2.
	  	Force Majeure	  	 	64	  
				
		 	 16.3.
	  	Reserved Rights; Non-Exclusivity	  	 	65	  
				
		 	 16.4.
	  	Severability	  	 	65	  
				
		 	 16.5.
	  	Waivers	  	 	66	  
				
		 	 16.6.
	  	Entire Agreements; Amendments	  	 	66	  
				
		 	 16.7.
	  	Survival	  	 	66	  
				
		 	 16.8.
	  	Assignment	  	 	66	  
				
		 	 16.9.
	  	Independent Contractor	  	 	67	  
				
		 	 16.10.
	  	Notices	  	 	67	  
				
		 	 16.11.
	  	Third Party Beneficiaries	  	 	68	  
				
		 	 16.12.
	  	Binding Effect	  	 	68	  
				
		 	 16.13.
	  	Counterparts	  	 	68	  
				
		 	 16.14.
	  	Headings	  	 	68	  

  
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AMENDED AND RESTATED 
 COLLABORATIVE RESEARCH AND LICENSE AGREEMENT 
 This Amended and
Restated Collaborative Research and License Agreement (the “Agreement”), dated as of June 14, 2011 (the “Effective Date”), is made by and among pSivida Corp., a Delaware corporation with offices located at 400
Pleasant Street, Watertown, Massachusetts, 02472, pSivida US, Inc., a Delaware corporation with offices located at 400 Pleasant Street, Watertown, Massachusetts 02472, pSiMedica Limited, a United Kingdom limited company with offices located at
Malvern Hills Science Park, Geraldine Road, Malvern, Worcestershire, WR14 3SZ (collectively, “PSIVIDA”) and Pfizer Inc., a Delaware corporation with offices located at 235 East 42nd Street, New York, New York, 10017 (“PFIZER”).
PSIVIDA and PFIZER are sometimes referred to herein individually as a “Party” and collectively as the “Parties.” 
 WHEREAS, PSIVIDA owns or otherwise controls certain patents, patent applications, technology, know-how and scientific and technical information relating to formulations for drug delivery and compatible
devices; 
 WHEREAS PFIZER has extensive experience and expertise in the development and commercialization of pharmaceutical products;

 WHEREAS, PFIZER and pSivida Inc. (now pSivida US Inc.) and pSivida Corp. (as successor to pSivida Limited) are currently party to a
Collaborative Research and License Agreement dated April 3, 2007 (the “Prior Agreement”); 
 WHEREAS PFIZER and PSIVIDA
wish to enter into this Agreement to amend and restate the Prior Agreement as of the Effective Date; 
 NOW, THEREFORE, in consideration of the
mutual covenants and agreements provided herein, PSIVIDA and PFIZER hereby agree as follows: 
  

	1.	Definitions. 

 1.1
“Accused Device” shall have the meaning assigned to it in Section 8.3.2. 
 1.2
“Affiliate” means any entity directly or indirectly controlled by, controlling, or under common control with, a Party to this Agreement, but only for so long as such control shall continue. For purposes of this definition,
“control” (including, with correlative meanings, “controlled by”, “controlling” and “under common control with”) means (a) possession, direct or indirect, of the power to direct or cause direction of the
management or policies of an entity (whether through ownership of securities or other ownership interests, by contract or otherwise), or (b) beneficial ownership of at least fifty percent (50%) of the voting securities or other ownership
interest (whether directly or pursuant to any option, warrant or other similar arrangement) or other comparable equity interests of an entity. 
 1.3 “Alimera” means Alimera Sciences, Inc. 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 1.4 “Alimera Agreement” means the Amended and Restated Collaboration
Agreement between pSivida, Inc. (f/k/a Control Delivery Systems, Inc.) and Alimera dated as of March 14, 2008 as in existence and effect as of the Effective Date. 
 1.5 “Antecedent Product” means, with respect to a specific Generic Product, (a) in the United States, the Product referenced as the listed drug for a new drug application that is
submitted pursuant to Section 505(j) of the FDCA and (b) in any country outside the United States, the Product referenced in an analogous manner under an analogous application process. 

1.6 “B&L” means Bausch & Lomb Incorporated. 

1.7 “B&L Agreement” means the Amended and Restated License Agreement between Control Delivery Systems, Inc.
(presently, PSIVIDA) and B&L dated as of December 9, 2003 as in existence and effect on the Effective Date. 
 1.8
“Business Day” means a day other than a Saturday, Sunday, or bank or other public holiday in New York, New York or Boston, Massachusetts. 
 1.9 “Change of Control” means, with respect to a Party or its parent corporation, (a) a merger or consolidation of such Party or such parent corporation with a Third Party which
results in the voting securities of such Party or such parent corporation outstanding immediately prior thereto ceasing to represent at least fifty percent (50%) of the combined voting power of the surviving entity immediately after such merger
or consolidation, or (b) a transaction or series of related transactions in which a Third Party, together with its Affiliates, becomes the beneficial owner of fifty percent (50%) or more of the combined voting power of the outstanding
securities of such Party or such parent corporation, or (c) the sale or other transfer to a Third Party of all or substantially all of such Party’s assets or business or substantially all of such Party’s ophthalmic assets or business.

 1.10 “Clinical IP” means (a) all preclinical and clinical protocols, studies, data, results,
study-related forms, materials (excluding solely the Compound) and reports (e.g., investigator brochures, informed consent forms, data safety monitoring board related documents, patient recruitment related materials, biocompatibility studies, animal
studies, safety studies, and chemistry, manufacturing and control data) resulting from any preclinical or clinical study or trial of the Product or generated in the course of the Development Program, (b) any certificates of any audit of any
such preclinical or clinical study or trial, any record or report of any audit of such preclinical or clinical study or trial containing a finding that involves the absence or failure of a critical process, system or related component, a key
internal control and/or an issue with considerable risk to a Party and which warrants immediate remediation to address, and any other audit record or report of such preclinical or clinical study to the extent necessary to respond to a request,
requirement, or order by a Government Authority, upon the request of the Party that is the subject of the Government Authority’s request, requirement, or order, and (c) all INDs, NDAs, any unfiled applications, components or materials
normally associated with an IND or NDA, regulatory filings or applications comparable to INDs or NDAs in any foreign jurisdictions, drug master files, and other regulatory applications and Regulatory Approvals regarding the Product (excluding any of
the foregoing relating to the Compound apart from the Product). 

  
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 1.11 “Clinical Trials” means all Phase I/II Clinical Trials, Phase II
Clinical Trials and Phase III Clinical Trials, or such analogous studies and trials of a medical device as are intended to establish scientifically valid evidence to be submitted in an application to a Regulatory Authority for the Product.

 1.12 “Clinical Supply Requirements” means the quantities of the Compound or Product that are required for
the conduct of Clinical Trials or Non-NDA Trials. 
 1.13 “Cost of Clinical Supplies” means the out-of-pocket
costs that a Party pays to Third Parties for the manufacture and supply of Clinical Supply Requirements pursuant to this Agreement. 
 1.14 “Commence” or “Commencement” when used with respect to a clinical trial, means the first dosing of the first patient for such trial. 

1.15 “Commercially Reasonable Efforts” means those efforts and resources consistent with the usual practice of a Party
in pursuing the development or commercialization of its own products that are of similar market potential as the Product in the Field, taking into account all relevant factors including resource and workload constraints, product labeling or
anticipated labeling, present and future market potential, past performance of the Product in the Field and such Party’s own products that are of similar market potential, financial return, medical and clinical considerations, present and
future regulatory environment and competitive market conditions, all as measured by the facts and circumstances at the time such efforts are due. 
 1.16 “Compound” means latanoprost, which has the chemical name: isopropyl-(Z)-7[(1R,2R,3R,5S)3,5-dihydroxy-2-[(3R)-3-hydroxy-5-phenylpentyl]cyclopentyl]-5-heptenoate) and is also known as
13, 14-dihydro-17-phenyl-18, 19, 20-trinor PGF2alpha isopropyl ester, and free acid(s) and salt(s) thereof. 
 1.17
“Confidential Information” means either the PFIZER Confidential Information or the PSIVIDA Confidential Information, or both, as the context may require. 
 1.18 “Control” or “Controlled” means, with respect to any intellectual property right, that the Party (i) owns or (ii) has a license to such intellectual
property right and has the ability to grant the other Party access, a license, or a sublicense (as applicable) to such intellectual property right as provided herein, without violating the terms of any agreement or other arrangement with any Third
Party existing at the time such Party would be first required hereunder to grant the other Party such access, license or sublicense (such ability, the “Right to Grant a Sublicense”). 

1.19 “Courts” shall have the meaning assigned to it in Section 15.2. 

1.20 “Development Plans” means the Pre-POC Development Plan and the PFIZER Development Plan. 

1.21 “Development Program” means the clinical, regulatory, development and associated activities for a Product conducted
under this Agreement and the Prior Agreement. 

  
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 1.22 “Development Term” means the period commencing on the Effective
Date and ending on the date of the First Commercial Sale. 
 1.23 “Device” means a bioerodible device for
injection or implantation in or adjacent to the eye that has a core, which core contains a drug, and which core is completely or partially surrounded by a polymer layer or tube. 

1.24 “Excluded PSIVIDA Affiliate IP” shall mean any Patent Rights and Technology Controlled by any Third Party that
becomes an Affiliate of PSIVIDA following a Change of Control of PSIVIDA, to the extent, but only to the extent, that such Patent Rights or Technology: (i) are Controlled by such future Affiliate of PSIVIDA at the time such Affiliate becomes an
Affiliate of PSIVIDA (other than pursuant to any license or other grant of rights by PSIVIDA or any other Affiliate of PSIVIDA to such future Affiliate) or (ii) are subsequently Controlled by such Affiliate but are developed independently of
and without the use of any Patent Rights and Technology Controlled by PSIVIDA as of or prior to the time such Affiliate becomes an Affiliate of PSIVIDA. 
 1.25 “Faber” means Faber Research LLC. 
 1.26 “Faber
Agreement” means the License Agreement by and between Faber Research LLC and pSivida Limited dated January 3, 2007 and as in existence and effect as of the Effective Date. 

1.27 “FDA” means the United States Food and Drug Administration or any successor agency thereto. 

1.28 “FDCA” means the U.S. Federal Food, Drug and Cosmetic Act, as amended, and the regulations promulgated thereunder.

 1.29 “Field” means the treatment, control or prevention of any ophthalmic disease or condition in humans
excluding uveitis. 
 1.30 “Firm Order” has the meaning assigned to it in Section 5.5.2. 

1.31 “Final Report” has the meaning assigned to it in Section 3.4. 

1.32 “Formulation” means a solid, solution or suspension suitable for the ocular delivery of the Compound for use with
the Device. 
 1.33 “First Commercial Sale” means the first shipment of a Product in commercial quantities for
commercial sale by PFIZER, its Affiliates or its sublicensees to a Third Party in an arm’s length transaction in a country in the Territory after receipt by PFIZER of the first Regulatory Approval for such Product in such country. 

1.34 “Funding Option Notice” has the meaning assigned to it in Section 3.5. 

1.35 “Generic Product” means a Device that (i) is sold by a Third Party that is not a licensee or sublicensee of a
Party or its Affiliates, or any of their licensees or sublicensees, under 

  
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a marketing authorization granted by a Regulatory Authority to such Third Party; (ii) contains the Compound as its sole active pharmaceutical ingredient; and (x) for purposes of the
United States, is approved under an abbreviated new drug application that is submitted pursuant to Section 505(j) of the FDCA (or any successor thereto) and that references a Product as its listed drug or (y) for purposes of a country
outside the United States, is approved by the applicable Regulatory Authority under an analogous application process. 
 1.36
“Glaucoma” means any of a group of neuropathies (including without limitation primary open angle glaucoma, angle closure glaucoma and normal tension glaucoma) or conditions where the goal of treatment is to reduce intraocular
pressure. 
 1.37 “Governmental Authority” means any court, agency, department, authority or other
instrumentality of any nation, state, county, city or other political subdivision. 
 1.38 “Government
Official” has the meaning assigned to it in Section 10.1.9. 
 1.39 “HSR Act” shall mean the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations promulgated thereunder. 
 1.40
“HSR Filing” shall mean filings by PFIZER and PSIVIDA with the United States Federal Trade Commission and the Antitrust Division of the United States Department of Justice of a Notification and Report Form for Certain Mergers and
Acquisitions (as that term is defined in the HSR Act) with respect to the matters set forth in this Agreement, together with all required documentary attachments thereto. 
 1.41 “HSR Clearance Date” shall mean the earliest date on which the Parties have actual knowledge that all applicable waiting periods under the HSR Act with respect to the transactions
contemplated hereunder have expired or have been terminated. 
 1.42 “IND” means the Investigational New Drug
Application or, if applicable, the Investigational Device Exemption application, filed with FDA, or a similar application filed with an applicable Regulatory Authority outside of the United States. 

1.43 “Indemnified Party” shall have the meaning assigned to it in Section 14.4. 

1.44 “Indemnifying Party” shall have the meaning assigned to it in Section 14.4. 

1.45 “Infringer” has the meaning assigned to it in Section 8.3.2. 

1.46 “Joint Steering Committee” and “JSC” have the meaning assigned to them in Section 2.1.

 1.47 “Kentucky Study Agreement” means the means the Investigator Initiated Research Agreement dated as of
June 1, 2010 among PFIZER, PSIVIDA and the University of Kentucky Research Foundation. 
 1.48 “Laws”
means all laws, statutes, rules, regulations, orders, judgments and/or ordinances of any Governmental Authority. 

  
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 1.49 “Litigation Condition” shall have the meaning assigned to it in
Section 14.4.1. 
 1.50 “Losses” shall have the meaning assigned to it in Section 14.2. 

1.51 “Major EU Countries” means the United Kingdom, Spain, Italy, France and Germany. 

1.52 “Market Penetration” shall mean, with respect to a Product, on a country-by-country and Product-by-Product basis,
(a) the quantity of all Generic Products for which such Product is the Antecedent Product sold in the applicable country divided by (b) the total quantity of such Antecedent Product and all such Generic Product sold in the applicable
country (quantity of product sold based on data provided by IMS International or, if such data is not available from IMS International, such other reliable data source as reasonably determined by PFIZER and reasonably agreed by PSIVIDA). 

1.53 “NDA” means a New Drug Application or a Biological License Application filed with the FDA in accordance with the
FDCA with respect to a pharmaceutical or biologic product or a similar application filed with an applicable Regulatory Authority outside of the United States (including any supra national agency such as the European Union) for the purpose of
obtaining approval to market and sell a pharmaceutical or biological product in such jurisdiction in the Territory. 
 1.54
“Net Sales” means with respect to a Product, the gross amount invoiced by PFIZER, its Affiliates and its sublicensees of such Product to Third Parties, less, without duplication, the following to the extent actually invoiced, paid,
granted or accrued: sales returns and allowances, trade, quantity and cash discounts and adjustments granted on account of billing errors, rejected goods, damaged or defective goods, recalls, returns, rebates, chargeback rebates, reimbursements or
similar payments granted or given to wholesalers or other distributors, buying groups, health care insurance carriers or other institutions; adjustments arising from consumer discount programs or other similar programs; customs or excise duties,
sales tax, consumption tax, value added tax, and other taxes (except income taxes) or duties relating to sales; any reductions of payment in respect of sales to the United States government, any state government or any foreign government, or to any
other Governmental Authority, or with respect to any government-subsidized program or managed care organization (provided that any reductions, discounts or adjustments that apply collectively to multiple products including the Product shall
be allocated pro rata to the amounts invoiced for Products); and freight and insurance (to the extent that PFIZER bears the cost of freight and insurance for a Product). Net Sales shall be determined from books and records maintained in accordance
with generally acceptable accounting principles in the United States, as consistently applied by PFIZER with respect to sales of all its pharmaceutical or biologic products. 
 If the Product is sold as part of a bundle of distinct products (i.e., one price is charged for a number of distinct products), the Net Sales for the Product shall be, on a country-by-country basis, the
greater of (a) the gross amount invoiced by PFIZER its Affiliates and its sublicensees of such bundle to Third Parties in such country, multiplied by the ratio of the list price for such Product in such country to the sum of the list prices for
each product in such bundle in such country (by way of example, if the list price for such Product when sold separately is $10, and 

  
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the sum of the list prices for each product in such bundle when sold separately is $40, then the Net Sales attributable to the Product when sold as part of the bundle would be twenty five percent
(25%) of the Net Sales of the bundle of products sold) and (b) the number of units of the Product sold by PFIZER, its Affiliates and its sublicensees in such country to Third Parties as part of a bundle, multiplied by the average gross
amount invoiced to Third Parties during the relevant PFIZER Quarter for a unit of the Product sold separately in such country (i.e., on a stand-alone basis solely for monetary consideration), or, in the absence of such transactions, the fair market
value for the Product, in each case less, without duplication, the deductions described above. 
 1.55 “Non-NDA
Trial” means any clinical trial, or part of a clinical trial, for the Product that is not designed or required to procure data necessary for the acceptance of filing an NDA. Non-NDA Trials may be conducted before or after the filing of an
NDA, before Regulatory Approval for the Product or at any time after Regulatory Approval for the Product. 
 1.56
“Non-Sequential Milestone” shall have the meaning assigned to it in Section 6.3.1. 
 1.57 “Patent
Costs” means the fees and costs associated with filing, prosecution and maintenance of Patent Rights in the Territory. 

1.58 “Patent Rights” means all patents and patent applications, whether domestic or foreign, including all
continuations, continuations-in-part, divisionals, provisionals and renewals, and letters of patent granted with respect to any of the foregoing, patents of addition, supplementary protection certificates, registration or confirmation patents and
all reissues, re-examination and extensions thereof. In all cases, inventorship will be determined in accordance with U.S. law. 

1.59 “Patient Outcomes Tool” means a method for identifying clinical trial subjects, which method meets the following
criteria: (a) such method is intended to be used in both a clinical trial and clinical use setting; (b) such method does not require the performance of significant additional activities besides completion of a brief questionnaire and
clinical status observations; (c) such method is actually used in a Phase II Clinical Trial of the Product except as otherwise provided in this Section 1.59; and (d) if such method is used in a Phase II Clinical Trial, the use of such
method in such Phase II Clinical Trial is intended to (i) demonstrate the utility of such method and (ii) provide evidence of the validity of such method and its appropriateness for use in a Phase III Clinical Trial. Notwithstanding
anything to the contrary in this Agreement, the foregoing requirements shall not apply if (x) compliance with applicable Law renders compliance with such requirement impracticable or impossible; (y) compliance with such requirement is not
authorized by any Governmental Authority or Regulatory Authority or is not consistent with a Regulatory Approval; or (z) compliance with such requirement is prohibited by, or would impede, delay or adversely impact the approval of the Product
by, any Governmental Authority or Regulatory Authority. 
 1.60 “Person” means an individual, corporation,
partnership, company, joint venture, unincorporated organization, limited liability company or partnership, sole proprietorship, 

  
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association, bank, trust company or trust, whether or not legal entities, or any Governmental Authority. 
 1.61 “PFIZER Confidential Information” means all information relating to PFIZER Technology or PFIZER Program Technology, as well as any other information regarding the technology,
business and operations of PFIZER of any of its Affiliates, that is or has been disclosed (whether orally or in writing) by PFIZER or its Affiliates to PSIVIDA or its Affiliates to the extent that such information is not (i) as of the date of
disclosure known to PSIVIDA or its Affiliates; or (ii) disclosed in published literature, or otherwise generally known to the public through no breach by PSIVIDA of this Agreement; or (iii) obtained by PSIVIDA or its Affiliates from a
Third Party free from any obligation of confidentiality to PFIZER; or (iv) independently developed by PSIVIDA or its Affiliates without use of the PFIZER Confidential Information; or (v) required to be disclosed under Law; provided that,
in the case of (v), PSIVIDA provides PFIZER prior notice (to the extent practicable) of such disclosure and agrees to cooperate, at the request and sole expense of PFIZER, with PFIZER’s efforts to preserve the confidentiality of such
information. 
 1.62 “PFIZER Controlled Intellectual Property” means the Patent Rights and Technology
Controlled by PFIZER or any of its Affiliates as of the date of a termination described in Section 13.3.2 that are necessary to develop, make, sell, offer for sale, use and import the Product in substantially the form the Product exists on such
date of termination, but not including PFIZER Technology, the PFIZER Program Technology, the PFIZER Program Patent Rights, the PFIZER Patent Rights, and Clinical IP Controlled by PFIZER or any of its Affiliates. 

1.63 “PFIZER Development Plan” means, with respect to the Product, a strategy and planning document for all research and
development activities to be conducted pursuant to this Agreement up to and including filing an NDA, which document shall describe in reasonable detail the Commercially Reasonable Efforts activities to be undertaken by PFIZER (including Clinical
Trials, seeking Regulatory Approvals and manufacturing activities) and the expected timing of each activity. 
 1.64
“PFIZER Option Date” shall have the meaning assigned to it in Section 3.6.1. 
 1.65 “PFIZER
Patent Rights” means the Patent Rights set forth on Schedule 1.65 and any Patent Rights that may issue from or claim priority to or through the Patent Rights set forth on Schedule 1.65. 

1.66 “PFIZER Program Patent Rights” means Program Patent Rights (other than PSIVIDA Program Patents Rights) that are
determined by United States law to be owned by PFIZER or any of its Affiliates, including without limitation the Program Patent Rights set forth on Schedule 1.66 and any Program Patent Rights that may issue from or claim priority to or
through the Program Patent Rights set forth on Schedule 1.66. 
 1.67 “PFIZER Program Technology” means
Program Technology (other than PSIVIDA Program Technology) that is determined by United States law to be owned by PFIZER or any of its Affiliates and includes relevant PFIZER Confidential Information. 

  
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 1.68 “PFIZER Quarter” means (A) for the first
three (3) quarters in any calendar year, the three (3) successive thirteen (13) week periods (i) with respect to the United States, commencing on January 1 of any calendar year, and (ii) with respect to any country in
the Territory other than the United States, commencing on December 1 of any calendar year, and (B) for the fourth (4th) quarter in any calendar year, the period commencing on the day after the end of the third successive thirteen
(13) week period in (A) above and (i) with respect to the United States, ending on December 31 of any calendar year, and (ii) with respect to any country in the Territory other than the United States, ending on
November 30 of any calendar year. 
 1.69 “PFIZER Technology” means any Technology and know-how (including
Pfizer Confidential Information) owned, licensed or otherwise Controlled by PFIZER or any of its Affiliates as of the Effective Date. 
 1.70 “PFIZER Year” means the twelve (12) month period (i) with respect to the United States, commencing on January 1 of any calendar year, and (ii) with respect to any
country in the Territory other than the United States, commencing on December 1 of any calendar year. 
 1.71
“Phase I/II Clinical Trial” means a first in human clinical trial that is primarily intended to test the safety of the Product for a specific indication in patients with the disease or condition under study, or an analogous study or
trial of a medical device intended to evaluate scientifically valid evidence to be submitted in an application to a Regulatory Authority for the applicable Product. 
 1.72 “Phase II Clinical Trial” means a Phase II Clinical Trial that is primarily intended to evaluate the effectiveness and dosing regimen for use in a Phase III Clinical Trial of a
Product for a specific indication or an analogous study or trial of a medical device intended to establish scientifically valid evidence to be submitted in an application to a Regulatory Authority for the applicable Product. 

1.73 “Phase III Clinical Trial” means a clinical trial intended to meet the requirements for approval of an NDA for the
Product, or an analogous study or trial of a medical device intended to establish scientifically valid evidence to be submitted in an application to a Regulatory Authority for the Product. 

1.74 “Pre-POC Development Plan” means the plan prepared by PSIVIDA setting forth research and development activities to
be conducted prior to and including Proof-of-Concept. Such plan will include details regarding the development activities for the Phase II Clinical Trials for the Product and the development of the Patient Outcomes Tool, which activities will
include those summarized on Schedule 1.74. 
 1.75 “Price Approval” means, in any country where a Governmental
Authority authorizes reimbursement for, or approves or determines pricing for, pharmaceutical products, receipt (or, if required to make such authorization, approval or determination effective, publication) of such reimbursement authorization or
pricing approval or determination (as the case may be). 
 1.76 “Product” means a Device that meets all of the
following criteria: (A) it has a core within a polymer tube, which core contains the Compound and no other active ingredient, (B) it 

  
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receives Regulatory Approval or is designed to receive Regulatory Approval to deliver the Compound and no other active ingredient by subconjunctival injection and no other delivery method,
(C) it is bioerodible, and (D) [*]. For the avoidance of doubt, Product shall not include the following: (i) the “First Generation Exclusive Licensed Product” and the “Vitrasert Licensed Product,” each as defined
under the B&L Agreement, and (ii) the “First Product,” “Product,” “Excluded Product,” or “Option Product” (to the extent PSIVIDA has granted a license covering such Option Product pursuant to
Section 5.8 of the Alimera Agreement), each as defined under the Alimera Agreement. 
 1.77 “Program Patent
Rights” means all Patent Rights that cover Program Technology and includes PSIVIDA Program Patent Rights and PFIZER Program Patent Rights. For the avoidance of doubt, Program Patent Rights shall not include CDS Improvements (as defined in
the Alimera Agreement). 
 1.78 “Program Technology” means Technology relating to the Product that is or was
(a) invented, created or developed by officers, employees or agents of, or consultants to, PSIVIDA or any of its Affiliates, alone or jointly with Third Parties, in the course of conducting activities under the Development Program,
(b) jointly invented, created or developed by officers, employees or agents of, or consultants to, both PSIVIDA and PFIZER or any of their respective Affiliates or sublicensees, in each case, alone or jointly with Third Parties, in the course
of conducting activities under the Development Program, (c) invented, created or developed by officers, employees or agents of, or consultants to, PFIZER or any of its Affiliates or sublicensees, alone or jointly with Third Parties, in the
course of conducting activities under the Development Program, or (d) acquired by purchase, license, assignment or other means from Third Parties by PSIVIDA or any of its Affiliates, by PSIVIDA and PFIZER or any of their respective Affiliates
or by PFIZER or any of its Affiliates, in each case, alone or jointly with Third Parties, in order for such Party (or Parties) to perform obligations under the Development Program. For the avoidance of doubt, Program Technology shall not include CDS
Improvements (as defined in the Alimera Agreement). 
 1.79 “Proof-of-Concept” means the time when a Phase II
Clinical Trial for the Product that includes the activities set forth in Schedule 1.74 has been completed. 
 1.80
“PSIVIDA Confidential Information” means all information relating to PSIVIDA Technology or PSIVIDA Program Technology, as well as any other information regarding the technology, business and operations of PSIVIDA or any of its
Affiliates, that is or has been disclosed (whether orally or in writing) by PSIVIDA or any of its Affiliates to PFIZER or its Affiliates to the extent that such information is not (i) as of the date of disclosure to PFIZER, known to PFIZER or
its Affiliates; or (ii) disclosed in published literature, or otherwise generally known to the public through no breach by PFIZER of this Agreement; or (iii) obtained by PFIZER or its Affiliates from a Third Party free from any obligation
of confidentiality to PSIVIDA; or (iv) independently developed by PFIZER or its Affiliates without use of the PSIVIDA Confidential Information; or (v) required to be disclosed under Law; provided that, in the case of (v), PFIZER
provides PSIVIDA prior notice (to the extent practicable) of such disclosure and agrees to cooperate, at the request and sole expense of PSIVIDA, with PSIVIDA’s efforts to preserve the confidentiality of such information. 

 
  

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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 1.81 “PSIVIDA Controlled Intellectual Property” means the Patent Rights
and Technology Controlled by PSIVIDA or any of its Affiliates as of the PFIZER Option Date that are necessary to develop, make, sell, offer for sale, use and import the Product in substantially the form the Product exists on the PFIZER Option Date,
but not including the Excluded PSIVIDA Affiliate IP, PSIVIDA Technology, the PSIVIDA Program Technology, the PSIVIDA Program Patent Rights, the PSIVIDA Patent Rights, Clinical IP Controlled by PSIVIDA or any of its Affiliates and the PSIVIDA
Confidential Information. 
 1.82 “PSIVIDA Patent Rights” means the Patent Rights set forth on Schedule
1.82 and any Patent Rights that may issue from or claim priority to or through the Patent Rights listed on Schedule 1.82. 
 1.83 “PSIVIDA Program Patent Rights” means (a) all Program Patent Rights to the extent that that they claim (i) modifications, improvements and advancements to the Device (but
not including Program Patent Rights that solely and specifically claim improvements to the Device with the Compound), (ii) methods of manufacture or monitoring the Device (but not including Program Patent Rights that solely and specifically
claim methods of manufacturing or monitoring the Device with the Compound); (iii) the Device with any composition of matter (but not including Program Patent Rights that solely and specifically claim the Device with the Compound); and
(iv) method of use claims except for method of use claims that solely and specifically claim (A) the Device with the Compound or (B) Formulations with respect to the Compound, in each case (i)-(iv) regardless of the identity of
the inventors; and (b) Program Patent Rights that are determined by United States law to be owned by PSIVIDA or any of its Affiliates, and including without limitation the Program Patent Rights set forth on Schedule 1.83. 

1.84 “PSIVIDA Program Technology” means (a) all Program Technology to the extent that it relates to
(i) modifications, improvements and advancements to the Device (but not including Program Technology that solely and specifically relates to improvements to the Device with the Compound), (ii) methods of manufacture or monitoring the
Device (but not including Program Technology that solely and specifically relates to methods of manufacturing or monitoring the Device with the Compound); (iii) the Device with any composition of matter (but not including Program Technology
that solely and specifically relates to the Device with the Compound); and (iv) method of use claims except for method of use claims that solely and specifically claim (A) the Device with the Compound or (B) Formulations with respect
to the Compound, in each case (i)-(iv) regardless of the identity of the inventors; and (b) Program Technology that is determined by United States law to be owned by PSIVIDA or any of its Affiliates. 

1.85 “PSIVIDA Reserved Interests” shall have the meaning assigned to it in Section 16.3.1. 

1.86 “PSIVIDA Technology” means any Technology owned or otherwise Controlled by PSIVIDA or any of its Affiliates as of
the Effective Date. 
 1.87 “PSIVIDA Valid Claim” means any claim from (a) an issued and unexpired patent
included within the PSIVIDA Patent Rights or PSIVIDA Program Patent Rights that has not been revoked or held unenforceable or invalid by a final decision of a court or other 

  
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Governmental Authority of competent jurisdiction, unappealable or unappealed within the time allowed for appeal or that has not been disclaimed, denied or admitted to be invalid or unenforceable
through reissue or disclaimer or otherwise; or (b) a patent application included within the PSIVIDA Patent Rights or PSIVIDA Program Patent Rights; provided however, that such a claim from a patent application has not been canceled, withdrawn,
or abandoned [*]. If a claim of a patent application ceases to be a PSIVIDA Valid Claim under item (b) because of the passage of time and later issues as part of a patent within item (a), then it shall again be considered to be a PSIVIDA Valid
Claim effective as of the earlier of the grant, allowance or issuance of such patent. 
 1.88 “Regulatory
Approval” means any and all approvals, with respect to any jurisdiction, or authorizations (other than Price Approvals) of a Regulatory Authority, that are necessary for the commercial manufacture, distribution, use, marketing or sale of a
pharmaceutical product in such jurisdiction. 
 1.89 “Regulatory Authority” means, in respect of a particular
country or jurisdiction, the Governmental Authority having responsibility for granting Regulatory Approvals in such country or jurisdiction. 
 1.90 “Representatives” shall have the meaning assigned to it in Section 14.1.1. 
 1.91 “Right of Reference” means the right of a Party and its licensees or designees to reference or cross-reference Clinical IP in any regulatory applications or filings. 

1.92 “Right to Grant a Sublicense” shall have the meaning assigned to it in Section 1.18. 

1.93 “Royalty Term” means, on a country-by-country and Product-by-Product basis, the period commencing upon First
Commercial Sale of a Product in a country and ending upon the later to occur of: (i) the date on which such Product is no longer covered by a PSIVIDA Valid Claim in such country; and (ii) ten (10) years from the date of First Commercial
Sale of such Product in such country. 
 1.94 “Technology” means all inventions, materials, technology, data,
technical and scientific information, know-how, expertise and trade secrets, and intellectual property rights embodying any of the foregoing, but excluding any Patent Rights. 
 1.95 “Term” means the period of time commencing on the Effective Date and ending on the earlier of (a) the last to expire Royalty Term or (b) the effective date of termination
of this Agreement pursuant to the terms hereof. 
 1.96 “Territory” means the entire world. 

1.97 “Third Party” means any person or entity other than PFIZER, PSIVIDA, or any of their respective Affiliates.

 1.98 “Third Party Claim” shall have the meaning assigned to it in Section 14.4. 

 
  

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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 1.99 Construction. Except where expressly stated otherwise in this Agreement, the
following rules of interpretation apply to this Agreement: (i) “include”, “includes” and “including” are not limiting and mean include, includes and including, without limitation; (ii) definitions contained in
this Agreement are applicable to the singular as well as the plural forms of such terms; (iii) references to an agreement, statute or instrument mean such agreement, statute or instrument as from time to time amended, modified or supplemented;
(iv) references to a person are also to its permitted successors and assigns; (v) references to an “Article”, “Section”, “Exhibit” or “Schedule” refer to an Article or Section of, or any Exhibit or
Schedule to, this Agreement unless otherwise indicated; (vi) the word “will” shall be construed to have the same meaning and effect as the word “shall”; (vii) the word “any” shall mean “any and all”
unless otherwise indicated by context and (viii) references to “dollars” or “$” shall refer to United States Dollars. 
  

	2.	Management of the Development Program. 

  

	 	2.1.	Joint Steering Committee. The research and development activities conducted under this Agreement shall be overseen by a joint research committee composed of two
(2) (or such larger number mutually agreed to by the Parties) representatives from each Party (the “Joint Steering Committee” or “JSC”). An alternate member designated by a Party may serve temporarily in the
absence of a permanent member of the JSC for such Party. Each Party shall designate one of its representatives as a co-chair of the JSC. The co-chairs of the JSC shall be jointly responsible for setting the agenda for each meeting, and each co-chair
will be responsible for chairing alternating JSC meeting. From time to time, the JSC may establish subcommittees or subordinate committees (that may or may not include members of the JSC itself) to oversee particular projects or activities, and such
subcommittees or subordinate committee shall be constituted and shall operate as the JSC agrees. After the First Commercial Sale of the Product the JSC shall be disbanded. The initial members of the JSC shall be designated by each Party promptly
after the Effective Date. For the avoidance of doubt, following the PFIZER Option Date, the Parties agree that PSIVIDA’s participation in the JSC is not an obligation, and PSIVIDA may, in its discretion, participate or not participate from time
to time. 

  

	 	2.2.	Decision-Making. Except as otherwise set forth in this Agreement, all decisions of the JSC made pursuant to this Agreement shall be made by consensus;
provided, however, that: 

  

	 	2.2.1.	PSIVIDA shall have final decision-making authority (if unresolved after escalation to members of senior management as set forth in Section 2.3) with respect to
research and development activities for the Product at any time prior to the PFIZER Option Date. 

  
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	 	2.2.2.	Following the PFIZER Option Date, PFIZER shall have final decision-making authority (if unresolved after escalation to members of senior management as set forth in
Section 2.3) with respect to research and development activities for the Product. 

  

	 	2.3.	Dispute Resolution. The representatives of each Party on the JSC shall each have one vote and no vote shall be taken at a meeting of the JSC unless all members
of the JSC are present and participating in the vote. In the event a matter is not resolved by unanimous consent of the JSC, or in the event the Parties are unable to agree upon matters relating to a Development Plan, the matter shall be referred to
senior management of the Parties for resolution. In the event such members of senior management are unable to resolve the dispute within fifteen (15) days of such referral, the Party having final decision-making authority pursuant to
Section 2.2 shall make the final decision on such matter. 

  

	 	2.4.	Meetings. The JSC shall hold meetings at such times and places as shall be determined by the co-chairs of the JSC (it being expected that any in-person meetings
will alternate between the appropriate offices of each Party), but in no event shall such meetings be held less frequently than once every calendar quarter during the Development Term. The JSC may: 

 

	 	2.4.1.	conduct meetings in person, by videoconference or by telephone conference; and 

 

	 	2.4.2.	invite other personnel of the Parties to attend meetings of the JSC as appropriate to the agenda for such meeting, after giving advance notice to the other Party.

  

	 	2.5.	Minutes. At each meeting, the JSC shall elect a secretary who will prepare minutes after each meeting, reporting in reasonable detail the actions taken by the
JSC during such meeting, issues requiring resolution, and resolutions of previously reported issues. Such minutes are to be reviewed and, if reasonably complete and accurate, signed by one JSC member from each Party. The secretary shall revise such
minutes as necessary to obtain such signatures. 

  
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	 	2.6.	JSC Functions and Powers. The research and development activities of the Parties performed in accordance with this Agreement shall be managed only to the extent
set forth herein, unless otherwise agreed to by the Parties in writing. The JSC shall foster the collaborative relationship between the Parties in order to assist each Party in fulfilling its obligations under the Development Plans, and shall in
particular have the functions and powers set forth below. 

  

	 	2.6.1.	With respect to the Product, the JSC shall: 

  

	 	(a)	encourage and facilitate ongoing cooperation and information exchange between the Parties; 

 

	 	(b)	monitor the progress of the Development Plans and the Parties’ diligence in carrying out their responsibilities thereunder; provided, however, that
the JSC shall not have the authority to make any determination that either Party is in breach of its obligations under a Development Plan or this Agreement; 

 

	 	(c)	review and comment on the Development Plans; and 

  

	 	(d)	perform such other functions as appropriate to further the purposes of this Agreement as mutually determined by the Parties. 

 

	 	2.6.2.	For the avoidance of doubt, the JSC shall have no power to amend this Agreement or a Development Plan and shall have only such powers as are specifically delegated to
it in this Agreement. 

  

	 	2.7.	Independence. Subject to the terms of this Agreement, the activities and resources of each Party shall be managed by such Party, acting independently and in its
individual capacity. The relationship between PSIVIDA and PFIZER is that of independent contractors and neither Party shall have the power to bind or obligate the other Party in any manner, other than as is expressly set forth in this Agreement.
PSIVIDA and PFIZER are not joint venturers, partners, principal and agent, employer and employee, and have no other relationship other than independent contracting parties. 

  
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	3.	Development. 

  

	 	3.1.	Pre-POC Development Plan. Commencing on the first anniversary of the Effective Date and on or prior to each anniversary thereafter until the PFIZER Option Date,
and at such additional times as PSIVIDA in its sole discretion may choose, PSIVIDA shall update the Pre-POC Development Plan. 

  

	 	3.2.	Development Costs Prior to Proof-of-Concept. PSIVIDA shall use Commercially Reasonable Efforts to conduct, directly or through its agents and contractors, the
activities set forth in the Pre-POC Development Plan at PSIVIDA’s sole expense, unless PSIVIDA elects to cease development under Section 3.3. 

  

	 	3.3.	Ceasing Development Prior to Proof of Concept. PSIVIDA may elect to cease development at any time after the first anniversary of the Effective Date but prior to
Proof-of-Concept. PSIVIDA shall notify PFIZER of such election. After providing such notice, PSIVIDA shall have no further obligations with respect to the Product under this Agreement. PFIZER shall have the right to elect to solely fund further
development and commercialization of the Product, provided that PFIZER makes such election and notifies PSIVIDA no later than sixty (60) days after receiving notice from PSIVIDA pursuant to this Section 3.3, such notice by PFIZER to
be deemed a Funding Option Notice. In the event PFIZER submits a Funding Option Notice as set forth in the preceding sentence, the terms of Section 3.6 shall apply, including the obligation to make the payments pursuant to Section 3.6.1,
as well as all other terms of this Agreement that apply to the Product; provided, however, that if PSIVIDA elects to cease development prior to achieving Proof-of-Concept for the Product and PFIZER submits such Funding Option Notice,
all amounts otherwise payable by PFIZER under Section 3.6.1 or Section 6 shall be reduced by [*]. In the event PFIZER does not submit a Funding Option Notice with respect to the Product, neither Party shall have any further rights or
obligations under this Agreement and the Agreement shall automatically terminate at the end of the sixty-day election period, after which termination nothing in this Agreement shall be construed as limiting PSIVIDA’s right, alone or with or
through other Persons, to develop, manufacture and commercialize the Product, which development, manufacturing and commercialization activities shall not be subject to this Agreement; provided, however, that if PSIVIDA provides the
notice referred to 

  
  

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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in this Section 3.3 but does not actually cease all development activities with respect to the Product for at least one year, this Agreement shall not terminate as set forth above and all
rights of PFIZER under this Agreement shall remain in effect notwithstanding the foregoing. 

  

	 	3.4.	Achievement of Proof-of-Concept. Promptly after PSIVIDA determines that the Product has reached Proof-of-Concept, PSIVIDA shall provide to PFIZER a written
report (a “Final Report”) setting forth the following information for such Product: 

  

	 	(a)	A statement that the Product has achieved Proof-of-Concept; 

  

	 	(b)	A summary of relevant Clinical IP for the Product in PSIVIDA’s possession and Control (including Clinical IP generated by Third Parties under any services
arrangement with PSIVIDA); 

  

	 	(c)	Copies of any correspondence and official meeting minutes with Regulatory Authorities with respect to the Product; 

 

	 	(d)	All pre-specified safety and efficacy analyses as outlined in the Clinical Trial protocols and statistical analysis plans; and 

 

	 	(e)	A summary of any research or development programs in Glaucoma then being conducted by PSIVIDA itself or through a contract service provider or consultant, but excluding
programs being conducted by PSIVIDA with a Third Party to which PSIVIDA has granted development and commercialization rights or licenses. 

 Notwithstanding any other provisions of this Agreement, in the event the Parties disagree whether the Product has achieved Proof-of-Concept, PSIVIDA may elect to continue developing the Product, and, if
PSIVIDA so elects and Commences a Phase III Clinical Trial, then the Product will be deemed to have achieved Proof-of-Concept for purposes of this Section 3.4 and PSIVIDA will deliver another or an updated Final Report to PFIZER, in which case
Section 3.5 shall apply, and if PFIZER subsequently submits a Funding Option Notice, PFIZER shall pay to PSIVIDA both the Event Milestone payment of [*] for Commencement of the first Phase III Clinical Trial for the Product described in
Section 6.2.1 and the payment of $20 million described in Section 3.6.1, both at such time as the payment under Section 3.6.1 is due. 
  

	 	3.5.	Funding Option Notice. Within ninety (90) days following 

 
  

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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PFIZER’s receipt of a Final Report, PFIZER shall notify PSIVIDA in writing of (a) PFIZER’s election to solely fund further development and commercialization of the Product as
further set forth in this Agreement (the “Funding Option Notice”); or (b) PFIZER’s determination that it will not solely fund such further development and commercialization of the Product. From the Effective Date until the
earlier of the end of such ninety (90) day time period (the “Option Notice Period”) or PFIZER providing notification pursuant to Section 3.5(a) or 3.5(b), PSIVIDA shall not (x) disclose the Final Report or any of its
contents to any Third Party except as may be required by applicable Law or (y) enter into any agreement with a Third Party pursuant to which PSIVIDA grants or conveys to such Third Party licenses, rights, options or other legal interests to
develop and or commercialize the Product in the Field or uveitis or engage in any discussions with any Third Party with respect to any such agreement. In the event PFIZER fails to submit a Funding Option Notice during the Option Notice Period, this
Agreement shall automatically terminate at the end of the Option Notice Period, after which time nothing in this Agreement shall be construed as limiting PSIVIDA’s right, alone or with or through other Persons, to develop, manufacture and
commercialize the Product, which development, manufacturing and commercialization activities shall not be subject to this Agreement. 

  

	 	3.6.	PFIZER Funding Option. The terms of this Section 3.6 shall apply if PFIZER submits to PSIVIDA a Funding Option Notice. 

 

	 	3.6.1.	Within forty-five (45) days of PFIZER submitting to PSIVIDA a Funding Option Notice, PFIZER shall pay to PSIVIDA Twenty Million Dollars ($20,000,000),
provided, however, that if PFIZER determines that an HSR Filing with respect to this Agreement is required to be made under the HSR Act, it shall so notify PSIVIDA and in such case PFIZER shall make such payment within forty-five
(45) days after the HSR Clearance Date. The date on which PFIZER makes such payment in full shall be the “PFIZER Option Date.” 

  

	 	3.6.2.	Following the submission of the Funding Option Notice, PFIZER shall have sole authority and discretion with respect to developing and commercializing the Product at
PFIZER’s sole expense, subject to Section 5.1. 

  

	 	3.6.3.	 Within fifteen (15) days after the PFIZER Option Date, PSIVIDA shall (i) use Commercially Reasonable Efforts to transfer ownership of all
regulatory filings and Regulatory Approvals that relate solely to the Product to PFIZER; (ii) deliver to PFIZER a copy of all Clinical IP in PSIVIDA’s (or any of its Affiliates’) possession and Control (including Clinical IP generated
by Third Parties under any services arrangement) related to the Product, if any, in the same form in which PSIVIDA (or such Affiliate) maintains such data; (iii) provide PFIZER

  
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with copies of any then-existing documentation and technical information, in the form and format in which such materials are maintained by PSIVIDA or any of its Affiliates in the ordinary course
of its business, that are necessary for the manufacture of the Product, which documentation and technical information shall include (A) copies of flow charts of the manufacturing procedures and work instructions related to manufacturing the
Product, (B) a list of all equipment, including the source of the equipment, utilized in the production of the Product, (C) copies of all current specifications for the Product, (D) copies of all standard operating procedures for the
manufacturing procedures to be transferred, (E) all environmental conditions necessary to manufacture the Product and copies of any existing external environmental impact studies based on the materials or methods employed in the manufacturing
method to be transferred, and (F) such other documentation as the Parties may mutually agree, in each case of the foregoing subsections (iii) and (A) through (F), that are in PSIVIDA’s or any of its Affiliates’ possession
and Control (including any of the foregoing that are generated by Third Parties under any services arrangement) and are necessary to manufacture Products; and (iv) deliver to PFIZER, in the same form in which PSIVIDA or any of its Affiliates
maintains such items, copies of all regulatory reports, records, correspondence and other regulatory materials in PSIVIDA’s or any of its Affiliates’ possession and Control related solely to such Product and any Regulatory Approval
therefor (including any of the foregoing that are generated by Third Parties under any services arrangement), including, if applicable, any information contained in the global safety database established and maintained by PSIVIDA or any of its
Affiliates. 

  

	 	3.6.4.	Within sixty (60) days after the PFIZER Option Date, PFIZER shall prepare and deliver to PSIVIDA the PFIZER Development Plan. PFIZER shall update the PFIZER
Development Plan and deliver such updated PFIZER Development Plan to PSIVIDA on each anniversary date of the PFIZER Option Date up to the date of the First Commercial Sale of the Product if PFIZER has made any material changes to such plan during
the prior year. PFIZER shall also deliver a copy of the then-current PFIZER Development Plan to PSIVIDA promptly after PSIVIDA’s request. In the event of an inconsistency or discrepancy between the PFIZER Development Plan and this Agreement,
the terms of this Agreement shall prevail. 

  

	 	3.6.5.	 If PFIZER notifies PSIVIDA pursuant to Section 3.6.1 that an HSR Filing is required, each of PFIZER and PSIVIDA shall, within fifteen
(15) Business Days after such notice from PFIZER (or such later time as may be agreed to in writing by the Parties), file with the United States Federal Trade Commission and the Antitrust Division of the United States Department of Justice, any
HSR Filing required of it 

  
 -19-

 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	
with respect to the transactions contemplated hereby. The Parties shall cooperate with one another to the extent necessary in the preparation of any such HSR Filing. Each Party shall be
responsible for its own costs and expenses (other than filing fees, which shall be paid by PFIZER) associated with any HSR Filing. 

  

	 	3.7.	Cooperation. Each Party shall use Commercially Reasonable Efforts to cooperate with the other Party in connection with all activities to be performed pursuant to
this Section 3. PFIZER will provide reasonable support to PSIVIDA with respect to the development of the Patient Outcomes Tool, including by making available (through telephonic or electronic means) to PSIVIDA a PFIZER employee who is expert in
the development of patient outcomes tools for consultation and review of documents for up to one hundred hours prior to the delivery of a Funding Option Notice by PSIVIDA. 

 

	 	3.8.	Conduct of Development. The Parties shall perform all activities under this Agreement and the Development Plans in compliance in all material respects with the
requirements of applicable Laws and each Party will use Commercially Reasonably Efforts to achieve the objectives of the Development Plans efficiently and expeditiously. For the avoidance of doubt, a Party, unless it agrees otherwise, shall have no
obligation to undertake any development activity allocated to it in any Development Plan prepared by the other Party. 

  

	 	3.9.	Development Plan Records. Each Party shall maintain complete and accurate records of all work conducted under the Development Plans and all results, data and
developments made pursuant to its efforts under the Development Plans. Such records shall reflect work done and results achieved in the performance of the Development Plans in sufficient detail and in a manner appropriate for patent and regulatory
purposes. Subject to bona fide confidentiality obligations to a Third Party, the other Party shall have the right to request copies of such records at reasonable times and upon reasonable notice to the extent necessary or useful for such Party to
perform its other obligations under this Agreement, or to secure or enforce patents licensed under this Agreement as permitted under this Agreement. 

  

	 	3.10.	 Reports. Each Party shall report to the JSC no less than once per calendar quarter, and such reports shall consist of a written progress report
summarizing the work performed under the Development Plans, data obtained in connection with the Product and other material information regarding the Product since the previous report. The JSC shall define the format and the nature of the content of
such quarterly reports, which format and nature shall be reasonably acceptable to both Parties. Beginning six months after the date 

  
 -20-

 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	
of the First Commercial Sale of the Product and once per year thereafter, PFIZER shall provide PSIVIDA with a written report describing development and regulatory activities for the Product
undertaken during the previous year, if any, and such activities planned for the next year, if any, including any planned and actual submissions for Regulatory Approval. 

 

	 	3.11.	Termination of Development Plans. The Development Plans shall automatically terminate on the effective date of any termination of this Agreement. Additionally,
the Pre-POC Development Plan may terminate as specifically set forth in this Section 3. 

  

	4.	Licenses. 

  

	 	4.1.	License to PFIZER. Subject to the terms of this Agreement and except to the extent rights granted hereunder were granted under Sections 2.1.1 or 2.1.2 of the
B&L Agreement, or under Sections 4.1, 5.1, 5.4 and 5.8 of the Alimera Agreement, or include rights that PSIVIDA is otherwise obligated not to convey to a Third Party under Sections 2.3, 2.4 and 2.5 of the B&L Agreement, or under Sections
4.1, 5.1, 5.4 and 5.8 of the Alimera Agreement, PSIVIDA hereby grants, and shall cause its Affiliates to grant, to PFIZER, and PFIZER hereby accepts: 

  

	 	4.1.1.	subject to PSIVIDA’s retained rights pursuant to Section 4.3, an exclusive (even as to PSIVIDA and its Affiliates), royalty-bearing license, with the right to
sublicense, under the PSIVIDA Technology, the PSIVIDA Program Technology, the PSIVIDA Program Patent Rights, the PSIVIDA Patent Rights, the Clinical IP Controlled by PSIVIDA or any of its Affiliates and the PSIVIDA Confidential Information, to
research, develop, make, have made, use, sell, import or otherwise exploit the Product only in the Field in the Territory following the PFIZER Option Date; and 

 

	 	4.1.2.	a non-exclusive, royalty-free, worldwide license, with the right to sublicense, under the PSIVIDA Technology, the PSIVIDA Program Technology, the PSIVIDA Program Patent
Rights, the PSIVIDA Patent Rights, the Clinical IP Controlled by PSIVIDA or any of its Affiliates and the PSIVIDA Confidential Information, solely for PFIZER to perform its obligations hereunder that are required to be performed prior to the PFIZER
Option Date. 

  

	 	4.1.3.	 following the PFIZER Option Date, a non-exclusive, royalty-free (except as set forth below), world-wide license, with the right to sublicense, under
and to all PSIVIDA Controlled Intellectual Property, solely to develop, make, have made, sell, offer for sale, use and import the Product; provided that such license shall continue only so long as

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	
(a) PFIZER elects to accept such license, and (b) if any such PSIVIDA Controlled Intellectual Property is licensed to PSIVIDA from a Third Party (“Third Party Licensor”),
PFIZER agrees in writing to comply with, and thereafter fulfills, all non-financial obligations of PSIVIDA to such Third Party Licensors applicable to sublicensees under the applicable license agreements and all royalties and other payments payable
to such Third Party Licensors under the applicable Third Party license arising solely from the sublicense grant under this Section or from activities conducted by PFIZER or its Affiliates or its sublicensees pursuant to such
sublicenses. Without limiting the foregoing, PSIVIDA shall disclose such obligations, royalties and other payments to PFIZER in advance of PFIZER taking such sublicense and, if PFIZER elects to take such sublicense, PFIZER shall pay such
disclosed royalties and other payments that become payable on and after the PFIZER Option Date either, at PSIVIDA’s option and direction, to PSIVIDA reasonably before the amounts are due so that PSIVIDA can make timely payment to the Third
Party Licensor, or to the Third Party Licensor in a timely fashion, provided if PFIZER fails at any time to make timely payment of such disclosed royalties and other payments to PSIVIDA or the Third Party Licensor, PFIZER’s license rights
hereunder shall terminate upon thirty (30) days notice from PSIVIDA unless PFIZER cures such non-payment during such period. PFIZER’s payment of such disclosed royalties and other payments under this Section 4.1.3 shall be limited to
only those attributable to the development, making, having made, selling, offering for sale, using and importing the Product. In addition, PFIZER shall be responsible for the payment of such disclosed royalties and other payments under this
Section 4.1.3 on a pro-rata basis as may be appropriate in the case where PSIVIDA has granted sublicenses to additional Third Party sublicensees. To the extent certain rights would be PSIVIDA Controlled Intellectual Property but for the fact
that PSIVIDA does not have a Right to Grant a Sublicense with respect to such rights, PSIVIDA shall not bring (and shall not authorize or directly assist an Affiliate of PSIVIDA or a Third Party to bring, except as may be required under any
contractual obligation of PSIVIDA) any action against PFIZER or any of its Affiliates, or a sublicensee of PFIZER’s rights related to the Product, alleging misappropriation, misuse, or infringement of such rights arising from PFIZER or such
Affiliate or sublicensee researching, developing, making, having made, using, selling, importing or otherwise exploiting the Product. For the purpose of clarity, PSIVIDA has no obligation to maintain Control of any rights for the purposes of this
Section. 

 Notwithstanding anything to the contrary in this Agreement, (i) the Parties agree and acknowledge
that, under the B&L Agreement and the Alimera Agreement, PSIVIDA has granted certain rights to B&L and Alimera, respectively, both exclusively and nonexclusively, and has agreed not to grant

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

 
certain licenses or other rights to Third Parties; and (ii) to the extent any rights granted hereunder have been granted under the B&L Agreement or the Alimera Agreement or are
restricted pursuant to a covenant not to convey under the B&L Agreement or Alimera Agreement, such rights shall not be and are not granted to PFIZER under this Agreement. 

 

	 	4.2.	 License to PSIVIDA. Subject to the terms of this Agreement, PFIZER hereby grants, and shall cause its Affiliates to grant, to PSIVIDA, and
PSIVIDA hereby accepts a non-exclusive, royalty-free (except as set forth below), worldwide license, with the right to sublicense, under and to (a) the Clinical IP Controlled by PFIZER or any of its Affiliates, PFIZER Technology, the PFIZER
Program Technology, the PFIZER Program Patent Rights, the PFIZER Patent Rights and the PFIZER Confidential Information, solely for PSIVIDA to perform or have others perform activities and exercise its rights under the Development Plans, and
(b) the Clinical IP Controlled by PFIZER or any of its Affiliates (i) to research, develop, make, have made, use, sell, import or otherwise exploit any product in any country in the world (other than a product prohibited under
Section 11.3), and (ii) to incorporate, disclose, use or exercise a Right of Reference to such Clinical IP for any research, development or commercial purpose (other than for a product prohibited under Section 11.3); provided that in
the case of (i) and (ii) such license shall not grant any rights under or to the Product in the Territory in the Field or for uveitis for so long as PFIZER has an exclusive license to the Product in the Field in the Territory under this
Agreement; provided further that, if PSIVIDA exercises its right under this Section to sublicense such Clinical IP to a Third Party, the rights granted under such sublicense may include only such Clinical IP as existed on the first effective date of
such sublicense between PSIVIDA and such Third Party and PSIVIDA shall not provide or disclose to such Third Party or use for the benefit or on behalf of such Third Party, directly or indirectly, any Clinical IP arising or created after such date.
With respect to the license granted under clause (b) above, if any of the foregoing Clinical IP is licensed to Pfizer from a Third Party (“Third Party Licensor”), PSIVIDA must agree in writing to comply with, and thereafter must
fulfill, all non-financial obligations of PFIZER to such Third Party Licensors applicable to sublicensees under the applicable license agreements and all royalties and other payments payable to such Third Party Licensors under the applicable Third
Party license arising solely from the sublicense grant under this Section or from activities conducted by PSIVIDA or its Affiliates or its sublicensees pursuant to such sublicenses. Without limiting the foregoing, PFIZER shall disclose such
obligations, royalties and other payments to PSIVIDA in advance of PSIVIDA taking such sublicense and, if PSIVIDA elects to take such sublicense, PSIVIDA shall pay such disclosed royalties and other payments that become payable on and after the
PFIZER Option Date either, at PFIZER’s option and direction, to PFIZER reasonably before the amounts are due so that PFIZER can make timely payment to the Third Party Licensor, or to the Third Party Licensor in a timely fashion, provided if
PSIVIDA fails at any time to make 

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	
timely payment of such disclosed royalties and other payments to PFIZER or the Third Party Licensor, PSIVIDA’s license rights hereunder shall terminate upon thirty (30) days notice from
PFIZER unless PSIVIDA cures such non-payment during such period. PSIVIDA’s payment of such disclosed royalties and other payments under this Section 4.2 shall be limited to only those attributable to the development, making, having made,
selling, offering for sale, using and importing the Product. In addition, PSIVIDA shall be responsible for the payment of such disclosed royalties and other payments under this Section 4.2 on a pro-rata basis as may be appropriate in the case
where PFIZER has granted sublicenses to additional Third Party sublicensees. From time to time upon PSIVIDA’s request, PFIZER shall deliver to PSIVIDA a copy of all Clinical IP in PFIZER’s or any of its Affiliates’ possession and
Control (including Clinical IP generated by Third Parties under any services arrangement) covered by the foregoing grant but not previously provided to PSIVIDA, if any, in the same form in which PFIZER or such Affiliate maintains such data.

  

	 	4.3.	Retained Rights. Notwithstanding anything to the contrary in this Section 4, each Party shall retain such rights as are necessary for such Party to perform
its obligations under this Agreement, including the Development Plans. 

  

	5.	Diligence, Regulatory Approvals and Manufacturing/Supply. 

  

	 	5.1.	Diligence. 

  

	 	5.1.1.	After the PFIZER Option Date, PFIZER shall use Commercially Reasonable Efforts to develop the Product in accordance with the PFIZER Development Plan for the Product,
and to seek Regulatory Approval for and commercialize the Product in the United States and the Major EU Countries. 

  

	 	5.2.	Regulatory Affairs. 

  

	 	5.2.1.	 Until the PFIZER Option Date, PSIVIDA shall determine all regulatory plans and strategies for the Product and will own and be responsible for
preparing, seeking, submitting and maintaining all regulatory filings and Regulatory Approvals for the Product, including preparing all reports necessary as part of a regulatory filing or Regulatory Approval. Without limiting the generality of the
foregoing, PSIVIDA shall have the right, consistent with applicable law, to amend the protocol for any Phase I/II Clinical Trial or Phase II 

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	
Clinical Trial conducted in connection with the Pre-POC Development Plan. Notwithstanding the foregoing, in addition to or in lieu of Clinical Trials sponsored by PSIVIDA, PSIVIDA may, in its
sole discretion, authorize a Third Party to sponsor Clinical Trials and to prepare and submit an IND to the FDA for the Product. 

  

	 	5.2.2.	Following the PFIZER Option Date, PFIZER shall determine all regulatory plans and strategies for the Product in the Territory and will own and be responsible for
preparing, seeking, submitting and maintaining all regulatory filings and Regulatory Approvals for the Product, including preparing all reports necessary as part of a regulatory filing or Regulatory Approval. 

 

	 	5.2.3.	During the Term of this Agreement, the Party responsible for submitting regulatory filings (the “Regulatory Submission Party”) shall provide the other
Party (the “Regulatory Non-Submission Party”) with drafts of substantive submissions it plans to make to FDA or other Regulatory Authority with respect to the Product. The Regulatory Non-Submission Party may provide comments
regarding such submission prior to its submission, and the Regulatory Submission Party shall consider in good faith incorporating such comments into the submission. The Regulatory Submission Party shall provide the Regulatory Non-Submission Party
with copies of all substantive submissions it makes to, and all correspondence it receives from, FDA or other Regulatory Authority with respect to the Product. The Regulatory Submission Party shall provide the Regulatory Non-Submission Party with
reasonable advance notice of all meetings, conferences, and discussions, whether in person or by teleconference (including, but not limited to, advisory committee meetings and any other meeting of experts convened by FDA or other regulatory
authorities concerning any topic relevant to such Product), scheduled with FDA or such other regulatory authorities concerning any regulatory matters relating to such Product, and the Regulatory Non-Submission Party shall have the right to
participate in such meetings, conferences or discussions and to confer with the Regulatory Submission Party in advance on the scheduling of, the objectives to be accomplished at, and the agenda and strategy for, such meetings, conferences, and
discussions with FDA or other regulatory authorities; provided, however, that, in the event that the Parties have disagreement relating to such meetings, conferences and discussions, the Regulatory Submission Party shall have the final
decision-making authority. 

  

	 	5.2.4.	 The Regulatory Submission Party shall provide the Regulatory Non-Submission Party with a summary of any such meeting, conference or discussion the
Regulatory Non-Submission Party does not attend, or of any other material verbal communication with a Regulatory Authority 

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	
with respect to the Product, promptly (and in any case within three (3) Business Days) after it occurs, and generally shall keep the Regulatory Non-Submission Party reasonably informed about
the progress of the regulatory approval process for the Product. 

  

	 	5.3.	Recalls or Other Corrective Action. After the PFIZER Option Date, PFIZER shall promptly notify PSIVIDA of any material actions to be taken by PFIZER in the
Territory with respect to any recall or market withdrawal or other corrective action related to the Product prior to such action, and, if reasonably practicable under the circumstances, to permit PSIVIDA a reasonable opportunity to consult with
PFIZER with respect thereto. After the PFIZER Option Date all costs and expenses with respect to a recall, market withdrawal or other corrective action shall be borne by PFIZER. 

 

	 	5.4.	Manufacturing and Supply—General. The terms of this Section 5.4 shall apply to the Party manufacturing or supplying Clinical Supply Requirements
pursuant to Section 5.5 (the “Manufacturing Party”). 

  

	 	5.4.1.	Capacity. The Manufacturing Party’s obligations to supply Products or Compounds pursuant to Section 5.5 shall be limited to the supply of Clinical
Supply Requirements as specified in Section 5.5.1 or 5.5.2 and in each case shall be subject to such Party’s actual capacity for the manufacture and supply of such Products or Compounds. The Manufacturing Party shall use Commercially
Reasonable Efforts to notify the other Party in the event the forecasted or ordered amount of Product or Compound is likely to exceed the Manufacturing Party’s then-existing capacity for manufacturing such Product or Compound.

  

	 	5.4.2.	Conforming Product. Upon delivery to the other Party, all Products and Compounds supplied by the Manufacturing Party shall meet the reasonable specifications
provided in advance (in writing) by the other Party. For purposes of this Section 5.4.2, “reasonable specifications” shall mean specifications that may be met with the Manufacturing Party’s then-existing manufacturing
capabilities. In the event the Manufacturing Party is unable to provide Products or Compounds meeting the reasonable specifications provided in advance in writing by the other Party, the Manufacturing Party shall have the right to obtain Compounds
or Products, as applicable, from a Third Party supplier. The non-Manufacturing Party shall provide reasonable cooperation, information and assistance necessary in order for the Manufacturing Party to do so. 

 

	 	5.4.3.	 Title and Delivery. All Products and Compounds to be supplied pursuant to Section 5.5 shall be delivered FCA (Manufacturing Party’s
loading dock). The receiving Party shall have the right to designate 

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	
the common carrier for shipments of Products and Compounds. Title, possession and risk of loss for Products and Compounds shall pass to the receiving Party upon delivery of Products and Compounds
to the receiving Party’s designated carrier. 

  

	 	5.5.	Manufacture and Supply—Clinical Supplies. 

  

	 	5.5.1.	Supply for Pre-POC Activities. PFIZER shall supply to PSIVIDA, at PFIZER’s sole expense, [*] of Compound with a remaining shelf life expiring no earlier
than [*], for conducting activities under the Pre-POC Development Plan. Such supply of Compound shall be shipped to PSIVIDA at a time and to a destination that are mutually acceptable to the Parties. 

 

	 	5.5.2.	Supply of Product. After the PFIZER Option Date, PSIVIDA shall supply to PFIZER, at PSIVIDA’s Cost of Clinical Supplies, all or a portion of PFIZER’s
Clinical Supply Requirements for the Product, in accordance with the PFIZER Development Plan. For the avoidance of doubt, and subject to PFIZER’s obligation to purchase such Clinical Supply Requirements as are set forth in the binding portion
of the rolling forecast for such Clinical Supply Requirements, PFIZER shall have the right to procure all or any portion of its Clinical Supply Requirements at its sole expense for the Product from a Third Party. On the first Business Day of the
second calendar month after the PFIZER Option Date and thereafter on a monthly basis on the first Business Day of each calendar month until PFIZER completes clinical trials for the Product (or such earlier date that PFIZER notifies PSIVIDA that it
no longer requires PSIVIDA to supply PFIZER with Clinical Supply Requirements), PFIZER shall provide to PSIVIDA a twelve (12) month rolling forecast for such Clinical Supply Requirements, the first three (3) months of each forecast shall
be binding. Along with each forecast PFIZER shall deliver to PSIVIDA a purchase order in a form to be agreed by the parties for the third (3rd) month of the forecast (each a “Firm Order”) (for clarity, the first and second months of
each forecast will be covered by earlier submitted Firm Orders) this Section 5.5.2. provided however the quantity in each Firm Order shall not be less than eighty percent (80%) nor more than one hundred twenty percent (120%) of the
quantity for any calendar month as most recently updated in the Firm Order period of the most recent forecast, and, that PSIVIDA’s obligations under this Section 5.5.2 are conditioned on PFIZER’s timely supply of Compound to

  
  

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	
PSIVIDA at PFIZER’s sole expense. PFIZER may terminate the supply arrangement described in this Section 5.5.2 upon ninety (90) days prior written notice 

 

	 	5.6.	Commercialization/Pricing. After the PFIZER Option Date, PFIZER shall be solely responsible for commercial manufacturing, marketing, promoting, selling,
distributing and determining pricing and other terms of sale for the Product. 

  

	 	5.7.	Disclosure of Technology by PSIVIDA. During the Term at PFIZER’s reasonable request, but in no event later than ten business (10) days following such
request, PSIVIDA will disclose to PFIZER or its designated Affiliates, all documentation, manuals, tangible materials, protocols or standard operating procedures or Clinical IP embodying PSIVIDA Technology relating to the Product and PSIVIDA Program
Technology relating to the Product that is reasonably necessary for PFIZER to practice the licenses under this Agreement, including such information from Third Parties to the extent permitted under any applicable agreements.

  

	 	5.8.	Disclosure of Technology by PFIZER. During the Term at PSIVIDA’s reasonable request, but in no event later than ten business (10) days following such
request, PFIZER will disclose to PSIVIDA or its designated Affiliates, all documentation, manuals, tangible materials, protocols, standard operating procedures or Clinical IP embodying PFIZER Technology relating to the Product and PFIZER Program
Technology relating to the Product that is reasonably necessary for PSIVIDA to practice the licenses under this Agreement, including such information from Third Parties to the extent permitted under any applicable agreements.

  

	6.	Fees, Milestones and Royalties. 

  

	 	6.1.	Upfront Payment. Within fifteen (15) days after the Effective Date, PFIZER shall pay to PSIVIDA $2,300,000, which constitutes a payment for rights granted
with respect to the Product pursuant to this Agreement. 

  

	 	6.2.	Product Milestone Payments. 

  

	 	6.2.1.	 Event Milestone Payments. In consideration of the rights granted hereunder with respect to the Product, and subject to the terms and conditions
of this Agreement, PFIZER shall pay to PSIVIDA 

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	
the amount set forth in the table below opposite the corresponding event milestone (each an “Event Milestone”) within forty-five (45) days after the occurrence of such Event
Milestone under this Agreement (each amount payable one time only): 

  

					
	 Event Milestone
	  	Event 
Milestone
Payment	 
	Commencement of the first Phase III Clinical Trial for the Product	  	$	[*] million	  
	First date of acceptance by FDA of the first NDA for the Product (the “FDA Filing Milestone”)	  	$	[*] million	  
	Receipt of the first Regulatory Approval from the FDA for the Product (the “FDA First Indication Approval Milestone”)	  	$	[*] million	  
	Receipt of the first Regulatory Approval from the FDA for the Product for the first indication that (a) is different from any indication included in the Regulatory Approval from the
FDA with respect to which the FDA First Indication Approval Milestone became payable and (b) is not Glaucoma	  	$	[*] million	  
	Receipt of the first Regulatory Approval and Price Approval, where applicable, for the Product in the first Major EU Country (the “EU First Indication
Approval”)	  	$	[*] million	  
	Receipt of the first Regulatory Approval and Price Approval, where applicable, for the Product in the first Major EU Country for the first indication that (a) is different from any
indication included in the Regulatory Approval in the Major EU Country with respect to which the EU First Indication Approval Milestone became payable and (b) is not Glaucoma	  	$	[*] million	  

  

	 	6.2.2.	Sales Milestones. In addition to the Event Milestone Payments for the Product, in consideration of the rights granted hereunder, and subject to the terms and
conditions of this Agreement, PFIZER shall pay to PSIVIDA the following one-time payments within forty-five (45) days 

  

 

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	
after the end of the calendar year that most nearly coincides with the applicable PFIZER Year in which aggregate Net Sales of the Product for all indications in the Territory first reach the
respective thresholds (each, a “Sales Milestone”) indicated below: 

  

					
	 Product Annual Net Sales in the Territory
	  	Sales Milestone Payment	 
	Net Sales in a PFIZER Year exceed $[*] million	  	$	[*] million	  
	Net Sales in a PFIZER Year exceed $[*] billion	  	$	[*] million	  
	Net Sales in a PFIZER Year exceed $[*] billion	  	$	[*] million	  
	Net Sales in a PFIZER Year exceed $[*] billion	  	$	[*] million	  

  

	 	6.3.	Milestone Payments Generally. 

  

	 	6.3.1.	The milestone payments set forth in this Section 6 shall be cumulative rather than mutually exclusive. For the avoidance of doubt, if at any time the FDA Filing
Milestone or the FDA First Indication Approval Milestone (each a “Non-Sequential Milestone”) for the Product occurs prior to the occurrence of all Event Milestones set forth in the rows preceding such Non-Sequential Milestone for
the Product in the tables set forth above, PFIZER shall pay to PSIVIDA the sum of (a) all Event Milestone Payments associated with Event Milestones in rows preceding the Non-Sequential Event Milestone which have not otherwise been paid by
PFIZER, and (b) the FDA Filing Milestone or the FDA First Indication Approval Milestone associated with the Non-Sequential Milestone. 

  

	 	6.3.2.	PFIZER’s payment of any Sales Milestone payment shall be accompanied by a report identifying the Net Sales of the Product and the amount payable to PSIVIDA. All
such reports shall be kept confidential by PSIVIDA and not disclosed to any other party, other than PSIVIDA’s accountants which shall be obligated to keep such information confidential, and such information and reports shall only be used for
purposes of this Agreement. 

  
  

 

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	6.4.	PFIZER Royalty Payments. In addition to the payments under Sections 6.1-6.3, in consideration of the rights granted hereunder, and subject to the terms and
conditions of this Agreement, on a country-by-country basis during the Royalty Term for each country in the Territory, PFIZER shall pay to PSIVIDA an amount equal to [*] of Net Sales of the Product in a PFIZER Quarter in such country. The Parties
agree and acknowledge that the payment of royalties by PFIZER to PSIVIDA for sales when there is no PSIVIDA Valid Claim covering the Product shall represent consideration for the license granted to PFIZER for PSIVIDA Technology pursuant to this
Agreement. 

  

	 	6.5.	Generic Products. Any payments owed with respect to sales of a Product pursuant to Section 6.4 shall be reduced by [*] for so long as one or more Generic
Products for which the Product is the Antecedent Product together maintain [*] or greater Market Penetration in the Territory; with any such reduction to be prorated appropriately for the then-current PFIZER Quarter. 

 

	 	6.6.	Duration of Royalty Payments. Payments under Section 6.4 shall continue until the expiration of the Royalty Term. Thereafter PFIZER shall have a
non-exclusive, royalty-free, perpetual, irrevocable, worldwide license, with the right to sublicense, under the PSIVIDA Technology and PSIVIDA Program Technology to research, develop, make, have made, use, sell, import or otherwise exploit the
Product only in the Field in the Territory. 

  

	 	6.7.	Notices of Termination. In the event that this Agreement has been terminated as permitted under Section 3 or Section 13, no further payments that have
not yet accrued under Section 6 shall become due following the effective date of such termination. 

  

	7.	Accounting and Procedures for Payment. 

  

	 	7.1.	Inter-Company Sales. Sales between or among PFIZER, its Affiliates or sublicensees shall not be subject to royalties under Section 6.4. PFIZER shall be
responsible for the payment of royalties on Net Sales by or on behalf of its Affiliates or sublicensees to Third Parties. 

  

 

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	7.2.	Currency. All royalty payments shall be computed and paid in United States dollars. For the purposes of determining the amount of any Sales Milestone Payments or
royalties due for the relevant PFIZER Quarter, the amount of Net Sales in any foreign currency shall be converted into United States dollars in a manner consistent with the paying Party’s customary practices used to prepare its audited
financial reports; provided that such practices use a widely accepted source of published exchange rates. 

  

	 	7.3.	Royalty Payments. PFIZER shall make royalty payments to PSIVIDA with respect to each PFIZER Quarter within forty-five (45) days after the end of the
calendar quarter that most nearly coincides with such PFIZER Quarter, and each payment shall be accompanied by a report identifying Net Sales and the amount payable, as well as the computation thereof and the basis of any reductions allowable under
Section 6. Said reports shall be kept confidential by the Parties and not disclosed to Third Parties, other than the Parties’ certified public accountants which shall be obligated to keep such information confidential, and such information
and reports shall only be used for purposes of this Agreement. 

  

	 	7.4.	Method of Payments. Each payment hereunder shall be made by electronic transfer in immediately available funds via either a bank wire transfer, an ACH (automated
clearing house) mechanism, or any other means of electronic funds transfer, at the paying Party’s election, to such bank account as the receiving Party shall designate in a notice at least five (5) Business Days before the payment is due.
All payments under this Agreement shall bear interest from the fifteenth (15th) day after the date due until paid at a rate equal to the thirty (30)-day United States dollar LIBOR rate in effect on the date that payment was due, as published by
The Financial Times. 

  

	 	7.5.	Inspection of Records. PFIZER shall, and shall cause its Affiliates and sublicensees to, keep accurate books and records setting forth gross sales of the
Product, Net Sales of the Product, and amounts payable hereunder to PSIVIDA for the Product. Each Party shall, and shall cause its Affiliates and sublicensees to, keep accurate books and records setting forth all other payments and reimbursements
due hereunder by one Party to the other. Each Party shall permit, and shall cause its Affiliates and sublicensees to permit, the other Party and independent certified public accountants employed by the other Party (reasonably acceptable to the Party
providing access to records) to examine such books and records at any reasonable time, upon reasonable notice, but not later than [*] years following the rendering date the 

  
  

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	
applicable payment under this Agreement is due. The foregoing right of examination may be exercised only once during each twelve (12)-month period of the Term. The Party being examined may
require such accountants to enter into a reasonably acceptable confidentiality agreement and such accountants shall disclose to the examining Party only information that relates to the accuracy of the payments due under this Agreement. The opinion
of said independent accountants regarding such reports and related payments shall be binding on the Parties, other than in the case of manifest error. The examining Party shall bear the cost of any such examination and review; provided that
if the examination shows an underpayment of royalties or other payments due under this Agreement or an overstatement of amounts invoiced of more than ten percent (10%) of the amount due for the applicable period, then the Party being examined
shall promptly reimburse the examining Party for all costs incurred in connection with such examination. If any such examination reveals an underpayment, the underpaying Party shall promptly pay the other Party the amount of such underpayment. Any
overpayment of royalties or other payments due under this Agreement revealed by an examination shall be fully-creditable against future payments due under this Agreement or if no future payments will become due, the Party that received such
overpayment shall promptly refund such overpayment to the paying Party. 

  

	 	7.6.	Tax Matters. 

  

	 	7.6.1.	VAT. It is understood and agreed between the Parties that any payments made under this Agreement are inclusive of any value added or similar tax imposed upon
such payments. 

  

	 	7.6.2.	Tax Cooperation. The Parties agree to cooperate and produce on a timely basis any tax forms or reports, including an IRS Form W-8BEN, reasonably requested by the
other Party in connection with any payment made under this Agreement. Each Party further agrees to provide reasonable cooperation to the other Party, at the other Party’s expense, in connection with any official or unofficial tax audit or
contest relating to payments made under this Agreement. 

  

	 	7.6.3.	 Withholding Tax Matters. In addition, in the event any of the payments made by PFIZER pursuant to Section 6 become subject to withholding
taxes under the Laws of any jurisdiction, PFIZER shall deduct and withhold the amount of such taxes for the account of PSIVIDA to the extent required by Law, such payment shall be reduced by the amount of taxes deducted and withheld, and PFIZER
shall pay the amount of such taxes to the proper Governmental Authority in a timely manner and promptly transmit to PSIVIDA an official tax certificate or other evidence of such tax obligations, together with proof of payment from the relevant
Governmental Authority of all amounts deducted and withheld sufficient to enable 

  
 -33-

 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	
PSIVIDA to claim such payment of taxes. PFIZER shall act in good faith to withhold taxes at the lowest rate allowed by the tax treaties applicable to the payments made by PFIZER. PSIVIDA shall
act in good faith to provide PFIZER with any required documentation to enable PFIZER to withhold taxes at such rate. Any such withholding taxes required under applicable Law to be paid or withheld shall be an expense of, and borne solely by,
PSIVIDA. Each Party will provide the other Party with reasonable assistance, at such Party’s expense, to enable a Party to recover such taxes as permitted by Law. 

 

	8.	Patents and Infringement. 

  

	 	8.1.	Disclosure and Ownership of Program Technology and Program Patent Rights. Each Party shall (and shall cause its Affiliates to) disclose to the other Party all
Program Technology or Program Patent Rights in writing promptly after they are invented, created or developed or their significance is first appreciated, and in any event no later than sixty (60) days prior to any public disclosure or filing of
a United States or international provisional or non-provisional patent application disclosing or claiming such Program Technology or Program Patent Rights. PSIVIDA shall have sole ownership of, and PFIZER shall and hereby does assign to PSIVIDA, all
rights, title and interest in any PSIVIDA Program Technology and PSIVIDA Program Patent Rights, regardless of the identity of the inventors. Inventorship and ownership of Program Technology and Program Patent Rights other than PSIVIDA Program
Technology and PSIVIDA Program Patent Rights shall be determined by United States law. The Parties shall provide each other with reasonable assistance to evidence, perfect or defend ownership of Program Technology or Program Patent Rights as set
forth in this Agreement, including (i) executing any assignments and other documents requested by the other Party, (ii) providing good faith testimony by affidavit, declaration or in person, and (iii) assisting with filing or
maintaining patents. 

  

	 	8.2.	Prosecution and Maintenance of PSIVIDA Patent Rights and PSIVIDA Program Patent Rights in the Territory. 

 

	 	8.2.1.	 Filing, Prosecution, and Maintenance of PSIVIDA Patent Rights. PSIVIDA shall have primary responsibility for and control over the preparation,
filing, prosecution, and maintenance of PSIVIDA Patent Rights and PSIVIDA Program Patent Rights in the Territory. PSIVIDA shall have the authority to select patent counsel, and to determine the form and content of such prosecution documents and to
make all decisions regarding whether to file, prosecute and maintain 

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	
patents and patent applications, and in which countries to do so. PSIVIDA shall be [*] of the Patent Costs associated with the PSIVIDA Patent Rights and PSIVIDA Program Patent Rights. PSIVIDA
shall keep PFIZER reasonably informed regarding the status of each patent or patent application included within PSIVIDA Patent Rights and PSIVIDA Program Patent Rights in the Territory and shall provide PFIZER with copies of all official
correspondence (including, but not limited to, applications, office actions, responses, etc.) relating to prosecution and maintenance of these Patent Rights. PFIZER shall have the right to review pending patent applications and other proceedings
for, and to make recommendations to PSIVIDA regarding, the prosecution of PSIVIDA Patent Rights and PSIVIDA Program Patent Rights in the Territory relating to the Product; provided that all final decisions regarding the prosecution and
maintenance of PSIVIDA Patent Rights and PSIVIDA Program Patent Rights shall be made by PSIVIDA. Notwithstanding the foregoing, with respect to the PSIVIDA Program Patent Rights, on and after the date that PFIZER submits a Funding Option Notice,
PSIVIDA agrees to act in good faith to cooperate and coordinate with PFIZER, as reasonably requested, on the prosecution and maintenance of such PSIVIDA Program Patent Rights. 

 

	 	8.2.2.	Abandonment of PSIVIDA Patent Rights or PSIVIDA Program Patent Rights. PSIVIDA may, at its sole discretion, abandon any patent or pending patent application, on
a patent-by-patent or application-by-application basis, within the PSIVIDA Patent Rights and PSIVIDA Program Patent Rights. PSIVIDA shall not abandon prosecution or maintenance of any PSIVIDA Patent Rights or PSIVIDA Program Patent Rights relating
to the Product in the Territory without notifying PFIZER in a timely manner of PSIVIDA’s intention and reason therefor and providing PFIZER with reasonable opportunity to comment upon such abandonment and to assume responsibility for
prosecution or maintenance in the Territory of such PSIVIDA Patent Rights and/or PSIVIDA Program Patent Rights at PFIZER’s sole expense, provided, however, that such abandoned PSIVIDA Patent Rights or PSIVIDA Program Patent Rights shall be
excluded from the definition of PSIVIDA Valid Claim for the purposes of the Royalty Term. The cancellation or amendment of a claim or claims during the prosecution of a patent application, or during a reissue or reexamination proceeding with respect
to an issued patent, within the PSIVIDA Patent Rights or PSIVIDA Program Patent Rights shall not in and of itself constitute a discontinuance or abandonment under this Section. Notwithstanding the foregoing, PFIZER’s rights under this

  
  

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	
Section 8.2.2 with respect to PSIVIDA Patent Rights and PSIVIDA Program Patent Rights shall be subject to rights granted to Faber under the Faber Agreement, including Section 4.1
thereof, to Alimera under the Alimera Agreement, including the rights set forth in Section 7.1 and 7.2 thereof, and to B&L under the B&L Agreement, including the rights set forth in Article 9 thereof. 

 

	 	8.2.3.	Information Disclosure; Cooperation. Subject to any limitations imposed by the confidentiality obligations set forth in the Faber Agreement, Alimera Agreement
and the B&L Agreement, upon PFIZER’s request PSIVIDA shall disclose and make available to PFIZER all material information controlled by PSIVIDA or any of its Affiliates that is reasonably necessary for PFIZER to perform its obligations and
to exercise its rights under this Section 8. PSIVIDA agrees to cooperate with PFIZER with respect to the preparation, filing, prosecution and maintenance of patents and patent applications pursuant to this Section 8.

  

	 	8.3.	Enforcement of PSIVIDA Patent Rights and PSIVIDA Program Patent Rights. 

 

	 	8.3.1.	Notification. During the Term, each of the Parties shall promptly notify the other in the event they learn of any known infringement or suspected infringement of
any of the PSIVIDA Patent Rights or PSIVIDA Program Patent Rights that cover the Product and shall provide the other Party with all available evidence supporting said infringement or suspected infringement. 

 

	 	8.3.2.	Enforcement. [*], but not the obligation, to initiate or prosecute an infringement or other appropriate suit or action against any Third Party who at any time
has infringed or is suspected of infringing (an “Infringer”) any of the PSIVIDA Patent Rights or PSIVIDA Program Patent Rights. [*] shall give [*] advance notice of its intent to file a suit against an Infringer of PSIVIDA Patent
Rights or PSIVIDA Program Patent Rights relating to the Product in the Territory and the reasons therefor, and shall provide [*] with an opportunity to make suggestions and comments regarding such filing; provided, however, that [*]
shall provide any such comments sufficiently in advance of any filing dates to allow for consideration by [*], and further provided that it shall be within [*] sole discretion whether to incorporate such suggestions or comments. [*] shall keep [*]
reasonably informed of the status and progress of such litigation. [*] shall have the sole and exclusive right to select counsel for any such suit and action and shall pay all expenses of 

 
  

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	
the suit, including, but not limited to, attorneys’ fees and court costs. With respect to PSIVIDA Patent Rights and PSIVIDA Program Patent Rights relating to the Product in the Territory, if
[*] has not taken legal action or been successful in obtaining cessation of the infringement within (a) ninety (90) days from the date of notice by either Party under Section 8.3.1; or (b) thirty (30) days after [*] notifies
[*] that [*] would like to move for injunctive relief; or (c) ten (10) days before the expiration of a period of time set by applicable Law in which action must be taken with respect to the alleged infringement (e.g., as may be required
under the Hatch-Waxman Act and 35 USC §271), then, subject to the rights with respect to the PSIVIDA Patent Rights granted to Faber under the Faber Agreement, including 4.2 thereof, to Alimera under the Alimera Agreement, including
Section 7.6 thereof, and to B&L under the B&L Agreement, including Article 10 thereof, [*] shall have the right to bring suit against an Infringer at [*] own expense. [*] 

 

	 	    	[*] 

  

	 	8.3.3.	Upon request of the other Party, either Party shall join as a party to or shall commence the suit on behalf of the other Party if required for standing, at the other
Party’s expense, and shall offer reasonable assistance to the other Party in connection therewith at its own expense. Any damages, royalties, settlement fees or other consideration for infringement resulting from the suit shall be distributed
as follows: (i) first, each Party shall be reimbursed for its reasonable out-of-pocket costs paid in connection with the proceeding; and (ii) thereafter, PFIZER will receive [*] and PSIVIDA will receive [*] of any damages, royalties,
settlement fees or other consideration. Neither Party shall settle any such suit or otherwise consent to an adverse judgment in any such suit that adversely affects the rights or interests of the other Party under this Agreement, including, issues
of validity of the PSIVIDA Patent Rights or PSIVIDA Program Patent Rights, without the prior written consent of the other Party. 

  

	 	8.4.	Prosecution and Maintenance of PFIZER Program Patent Rights in the Territory. 

 

	 	8.4.1.	Filing, Prosecution, and Maintenance of PFIZER Program Patent Rights. PFIZER shall have primary responsibility for and control over the preparation, filing,
prosecution, and maintenance of PFIZER Program Patent Rights. PFIZER shall have the authority to select patent counsel, and to determine the form and content of such prosecution documents 

 
  

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	
and to make all decisions regarding whether to file, prosecute and maintain patents and patent applications, and in which countries to do so. PFIZER shall be [*] of the Patent Costs associated
with the PFIZER Program Patent Rights. PFIZER shall keep PSIVIDA reasonably informed regarding the status of each patent or patent application included within the PFIZER Program Patent Rights and shall provide PSIVIDA with copies of all official
correspondence (including, but not limited to, applications, office actions, responses, etc.) relating to prosecution and maintenance of these Patent Rights. PSIVIDA shall have the right to review pending patent applications and other proceedings
for, and to make recommendations to PFIZER regarding the prosecution of PFIZER Program Patent Rights; provided that all final decisions regarding the prosecution and maintenance of PFIZER Program Patent Rights shall be made by PFIZER.

  

	 	8.4.2.	Abandonment of PFIZER Program Patent Rights. PFIZER may, at its sole discretion, abandon any patent or pending patent application, on a patent-by-patent or
application-by-application basis, within the PFIZER Program Patent Rights. PFIZER shall not abandon prosecution or maintenance of any PFIZER Program Patent Rights without notifying PSIVIDA in a timely manner of PFIZER’s intention and reason
therefor and providing PSIVIDA with reasonable opportunity to comment upon such abandonment and to assume responsibility for prosecution or maintenance of PFIZER Program Patent Rights at PSIVIDA’s sole expense. The cancellation or amendment of
a claim or claims during the prosecution of a patent application, or during a reissue or reexamination proceeding with respect to an issued patent, within the PFIZER Program Patent Rights shall not in and of itself constitute a discontinuance or
abandonment under this Section. 

  

	 	8.4.3.	Information Disclosure; Cooperation. Upon PSIVIDA’s request, PFIZER shall disclose and make available to PSIVIDA all material information controlled by
PFIZER or any of its Affiliates that is reasonably necessary for PSIVIDA to perform its obligations and to exercise its rights under this Section 8. PFIZER agrees to cooperate with PSIVIDA with respect to the preparation, filing, prosecution
and maintenance of patents and patent applications pursuant to this Section 8. 

  

	 	8.5.	Enforcement of PFIZER Program Patent Rights. 

  

	 	8.5.1.	Notification. During the Term, each of the Parties shall promptly notify the other in the event they learn of any known infringement or suspected infringement of
any of the PFIZER Program Patent Rights that cover the 

  

 

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	
Product and shall provide the other Party with all available evidence supporting said infringement or suspected infringement. 

 

	 	8.5.2.	Enforcement. PFIZER shall have the initial right, but not the obligation, to initiate or prosecute an infringement or other appropriate suit or action against an
Infringer of any of the PFIZER Program Patent Rights. PFIZER shall give PSIVIDA advance notice of its intent to file a suit against an Infringer of PFIZER Program Patent Rights relating to the Product, and shall provide PSIVIDA with an opportunity
to make suggestions and comments regarding such filing; provided, however, that PSIVIDA shall provide any such comments sufficiently in advance of any filing dates to allow for consideration by PFIZER, and further provided that it
shall be within PFIZER’s sole discretion whether to incorporatesuch suggestions or comments. PFIZER shall keep PSIVIDA reasonably informed of the status and progress of such litigation. PFIZER shall have the sole and exclusive right to select
counsel for any such suit and action and shall pay all expenses of the suit, including, but not limited to, attorneys’ fees and court costs. With respect to PFIZER Program Patent Rights relating to the Product, if PFIZER has not taken legal
action or been successful in obtaining cessation of the infringement within (a) ninety (90) days from the date of notice by either Party under Section 8.5.1; or (b) thirty (30) days after PSIVIDA notifies PFIZER that PSIVIDA
would like to move for injunctive relief; or (c) ten (10) days before the expiration of a period of time set by applicable Law in which action must be taken with respect to the alleged infringement (e.g., as may be required under the
Hatch-Waxman Act and 35 USC §271), then, PSIVIDA shall have the right to bring suit against an Infringer at PSIVIDA’s own expense. This right of PSIVIDA to bring suit, as well as to continue an existing suit, is also conditioned on all of
the following requirements: 

  

	 	    	[*] 

  

	 	8.5.3.	Upon request of the other Party, either Party shall join as a party to or shall commence the suit on behalf of the other Party if required for standing, at the other
Party’s expense, and shall offer reasonable assistance to the other Party in connection therewith at its own expense. Any damages, royalties, settlement fees or other consideration for infringement resulting from the suit shall be distributed
as follows: (i) first, each Party shall be reimbursed for its reasonable out-of-pocket costs paid in connection with the proceeding; and (ii) thereafter, PSIVIDA will receive [*] and PFIZER will receive [*] of any damages, royalties,
settlement fees or other consideration. 

  

 

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	
Neither Party shall settle any such suit or otherwise consent to an adverse judgment in any such suit that adversely affects the rights or interests of the other Party under this Agreement,
including, issues of validity of the PFIZER Program Patent Rights, without the prior written consent of the other Party 

  

	 	8.6.	Patent Term Extension. PFIZER shall have the exclusive right to seek, at PFIZER’s expense, patent term extensions or supplemental patent protection,
including supplementary protection certificates, in the Territory in relation to the Product under any of the PFIZER Patent Rights and PFIZER Program Patent Rights. PFIZER and PSIVIDA shall cooperate in connection with all such activities, and
PFIZER, its agents and attorneys will give due consideration to all timely suggestions and comments of PSIVIDA regarding any such activities; provided that all final decisions shall be made by PFIZER. 

 

	 	8.7.	Orange Book Listings. With respect to filings of patent information with FDA on Form 3542a or Form 3542 (and foreign equivalents) for issued patents for the
Product for which PFIZER applies for or holds an NDA, PFIZER shall have the exclusive right and shall be solely responsible at its expense for fulfilling its obligations under applicable Laws to list any applicable PSIVIDA Patent Rights and PSIVIDA
Program Patent Rights. PFIZER will be solely responsible for any such filings and listings, and for any and all decisions with respect to such filings and listings. Notwithstanding the foregoing, with respect to any such form to be filed concerning
any PSIVIDA Patent Rights, PFIZER shall provide PSIVIDA with the opportunity to comment on the filing of such form by providing a draft of such form to PSIVIDA at least five Business Days in advance of filing such form with FDA and by making a good
faith effort to incorporate any comments received from PSIVIDA prior to filing such form with FDA. 

  

	 	8.8.	Patent Invalidity Claim with Respect to PSIVIDA Patent Rights and PSIVIDA Program Patent Rights. During the Term, each of the Parties shall promptly notify the
other in the event of any legal or administrative action by any Third Party against a PSIVIDA Patent Right or a PSIVIDA Program Patent Right of which it becomes aware, including any nullity, revocation, reexamination or compulsory license
proceeding. [*] shall have the first right, but not the obligation, to defend against any such action involving a PSIVIDA Patent Right or a PSIVIDA Program Patent Right, [*]. 

  
  

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	8.9.	Patent Invalidity Claim with Respect to PFIZER Program Patent Rights. During the Term, each of the Parties shall promptly notify the other in the event of any
legal or administrative action by any Third Party against a PFIZER Program Patent Right of which it becomes aware, including any nullity, revocation, reexamination or compulsory license proceeding. PFIZER shall have the first right, but not the
obligation, to defend against any such action involving PFIZER Program Patent Right, in its own name, and the costs of any such defense shall be at PFIZER’s expense. PSIVIDA, upon request of PFIZER, agrees to join in any such action and to
cooperate reasonably with PFIZER; provided that PFIZER shall promptly reimburse all out-of-pocket expenses (including reasonable counsel fees and expenses) actually incurred by PSIVIDA in connection with such cooperation. [*] PFIZER, upon
request of PSIVIDA, agrees to join in any such action and to cooperate reasonably with PSIVIDA; provided that PSIVIDA shall promptly reimburse all out-of-pocket expenses (including reasonable counsel fees and expenses) actually incurred by PFIZER in
connection with such cooperation. 

  

	 	8.10.	Notification of Third Party Claim. Each Party shall promptly report in writing to the other Party during the Term of this Agreement any claim or allegation by
any Third Party that the development or commercialization of the Product infringes the intellectual property rights of any Third Party and shall provide the other Party with all available evidence supporting said infringement or suspected
infringement. 

  

	 	(a)	PFIZER shall have the initial right, but not the obligation, to defend any suit or action initiated by any Third Party alleging solely that the Product has infringed,
or is suspected of infringing any Third Party intellectual property rights in the Territory. Upon PFIZER’s request, PSIVIDA shall join such suit or action and shall offer reasonable assistance to PFIZER in connection therewith at PFIZER’s
expense. PFIZER shall give PSIVIDA advance notice of its intent to defend any said suit and shall provide PSIVIDA with an opportunity to make suggestions and comments regarding such defense; provided, however, that PSIVIDA shall
provide any such comments sufficiently in advance of any filing dates to allow for consideration by PFIZER, and further provided that it shall be within PFIZER’s sole discretion whether to incorporate such suggestions or comments. PFIZER shall
keep PSIVIDA reasonably informed of the status and progress of the litigation. PFIZER shall have the sole and exclusive right to select counsel for any such suit and action and shall pay all expenses of the suit, including, but not limited to,
attorneys’ fees and court costs. PFIZER shall have the right to settle any such litigation and shall specifically have the 

  

 

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	
right, whether or not litigation commences, to negotiate a license or other rights from any Third Party authorizing the use of Third Party intellectual property rights in connection with the
Product; provided, however, that PFIZER shall not settle any such action, or otherwise consent to an adverse judgment in any such action, or make any admission in any such license and negotiation that adversely affects the rights or
interests of PSIVIDA under this Agreement, including, issues of validity of the PSIVIDA Patent Rights or PSIVIDA Program Patent Rights, without the prior written consent of PSIVIDA. Any such license shall be at arm’s length and otherwise on
terms and conditions as may be deemed appropriate in the reasonable business judgment of PFIZER. PFIZER shall provide PSIVIDA with a copy of any such license promptly after its execution. 

 

	 	(b)	If PFIZER does not defend a claim, suit or proceeding as set forth above within ninety (90) days of the date PFIZER was reasonably aware or notified of the Third
Party claim alleging infringement (or within such shorter period as may be necessary for submitting or filing a response), then PSIVIDA may, in its sole discretion, elect to defend such claim, suit or proceeding, using counsel of its own choice and
the provisions of Section 8.10(a) shall apply as if the term “PSIVIDA” were changed to “PFIZER” and the term “PFIZER” were changed to “PSIVIDA”. 

 

	 	8.11.	Third Party Royalty Obligations. If PFIZER reasonably determines in good faith that, in order to exercise the license granted by PSIVIDA in this Agreement
without infringing the Patent Rights of a Third Party, it is necessary to obtain a license of Patent Rights from such Third Party (excluding any license that is required to make, use, sell, offer for sale, supply, cause to be supplied, or import the
Compound in such country or to practice PFIZER Technology or PFIZER Patent Rights), then the amount of PFIZER’s royalty payments under Section 6.4 with respect to Net Sales for the Product in such country shall be reduced by [*] of the
amount of royalties on Net Sales payable by PFIZER to such Third Party [*]. 

  

 

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

	9.	Confidentiality; Publication. 

  

	 	9.1.	Confidential Information. 

  

	 	9.1.1.	PFIZER and PSIVIDA each agree that, except as permitted in this Agreement, during the Term and for five (5) years after the Term, it will keep confidential, and
will cause its Affiliates to keep confidential, all of the other Party’s Confidential Information that is disclosed to it, or to any of its Affiliates. PFIZER and PSIVIDA each agree to take such action, and to cause its Affiliates to take such
action, to preserve the confidentiality of PSIVIDA Confidential Information and PFIZER Confidential Information, respectively, as it would customarily take to preserve the confidentiality of its own similar types of confidential information.

  

	 	9.1.2.	Each of PFIZER and PSIVIDA, agree, and agree to cause their respective Affiliates, (i) to use PSIVIDA Confidential Information and PFIZER Confidential Information,
respectively, only as expressly permitted in this Agreement and (ii) not to disclose PSIVIDA Confidential Information and PFIZER Confidential Information, respectively, to any Third Parties under any circumstance without the prior consent of
the other Party, except as expressly permitted in this Agreement. 

  

	 	9.1.3.	 Notwithstanding anything to the contrary in this Section 9, each Party or any of its Affiliates may disclose the other Party’s Confidential
Information (i) to Governmental Authorities (a) to the extent desirable to obtain or maintain INDs or Regulatory Approvals, and (b) in order to respond to inquiries, requests or investigations relating to this Agreement; (ii) to
such Party’s attorneys and accountants; (iii) to other outside consultants, contractors, advisory boards, managed care or other health care providers or organizations, and non-clinical and clinical investigators, in each case to the extent
desirable to develop, register or market any Compound or Product pursuant to this Agreement or in connection with the exercise of rights or performance of obligations under this Agreement, provided that such Party shall obtain the same
confidentiality obligations from such Third Parties as it obtains with respect to its own similar types of confidential information; (iv) in connection with filing or prosecuting Patent Rights or trademark rights as permitted by this Agreement,
(v) in connection with prosecuting or defending litigation as permitted by this Agreement, (vi) in connection with or included in scientific presentations and publications relating to Compounds or Products, including abstracts, posters,
journal articles and the like, and (vii) to the extent necessary or desirable in order to enforce its rights under 

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	
this Agreement. 

  

	 	9.2.	Disclosure of Agreement Terms. PSIVIDA or any of its Affiliates may issue mutually acceptable press releases in connection with the execution of this Agreement.
Disclosure of the financial terms of this Agreement shall be made in the form of a mutually acceptable press release on the Effective Date. Neither Party nor any of its Affiliates shall disclose or describe the financial terms of this Agreement in
any way that is contrary to or inconsistent with the substance of such press release or the Agreement, and neither Party nor any of its Affiliates shall otherwise publically disclose any other terms of this Agreement except as expressly set forth
herein. Notwithstanding the foregoing and notwithstanding Section 9.1, each Party or any of its Affiliates may disclose this Agreement or its terms (a) to the extent required by Law, provided that the disclosing Party provides the other
Party notice (to the extent practicable) of such disclosure and agrees to cooperate, at the request and sole expense of the other Party, with the other Party’s efforts to preserve the confidentiality of such information and (b) to any
investors or potential investors, lenders, and other potential financing sources, or to a Third Party in connection with an investment or proposed investment, financing or proposed financing, merger or acquisition, proposed merger or acquisition, a
license or proposed license of the technology or intellectual property licensed hereunder and not prohibited hereunder, sale of assets or other similar transaction, and to Affiliates, attorneys, accountants, stockholders, investment bankers,
advisers or other consultants in connection with the foregoing permitted disclosures, in each case provided that the Person to which such disclosure is made agrees to keep such information confidential on essentially the same terms as set forth
herein and to use such Confidential Information solely to evaluate such investment, financing, acquisition, merger, license, sale or other transaction, (c) to any stock exchange on which its stock is then listed to the extent required by such
exchange, provided that the disclosing Party shall notify the other Party in advance of such disclosure to the extent reasonably possible and otherwise complies with the provisions of Section 9.4, (d) to its attorneys and accountants, and
(e) to its consultants, advisors, contractors and agents in connection with any of the foregoing permitted purposes, provided that the Person to which such disclosure is made agrees, or is otherwise bound by professional standards of conduct,
to keep such information confidential on essentially the same terms as set forth herein. 

  
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	 	9.3.	 Other Disclosures. Notwithstanding anything else herein but subject to Section 3.5, both Parties and their respective Affiliates shall be
entitled to publicly disclose significant Product achievements of the type and by the means customary for similarly situated companies. For the purpose of clarity, such public disclosures with respect to a Product by PSIVIDA or any of its Affiliates
may include, (i) prior to the Pfizer Option Date, Commencement of Clinical Trials, significant factual information with respect to Clinical Trials including numbers of patients, centers, investigators, descriptions of protocols, completion of
enrollment and of treatment under Clinical Trials, safety and efficacy data and other results of Clinical Trials, and filings with and actions by Regulatory Authorities, and (ii) following the Pfizer Option Date, Commencement of Clinical
Trials, significant factual information with respect to Clinical Trials including numbers of patients, number of centers, number of investigators, high level descriptions of study design, completion of enrollment and of treatment under Clinical
Trials, top line safety and efficacy data, and significant actions by Regulatory Authorities. For the purpose of clarity, such public disclosures described in the first sentence of this Section with respect to a Product by PFIZER or any of its
Affiliates following the PFIZER Option Date may include any of the disclosures described in the preceding sentence. Prior to making public disclosure of the achievement of any such event relating to a Product, including any results of Clinical
Trials, the disclosing Party will provide the other Party with a copy of such disclosure five (5) Business Days in advance, or if such advance notice is not practicable under the circumstances, as much advance notice as the disclosing Party
practicably can provide and shall take into account the good faith and reasonable comments made by the other Party within such five (5) day period. Subject to the foregoing provisions of this Section 9.3, and without limiting any rights
under Sections 9.2 and 9.4, each Party shall submit to the other Party for review and approval (such approval not to be unreasonably be withheld or delayed) any proposed academic, scientific or medical publication or public presentation (for the
purpose of clarity, not including public disclosures as described in the first three sentences of this Section or filings with a Governmental Authority) which contains the other Party’s Confidential Information. Such review and approval will be
conducted for the purposes of preserving the value of intellectual property rights and determining whether any portion of the proposed publication or presentation containing the other Party’s Confidential Information should be modified or
deleted for such purpose. Written copies of such proposed publication or presentation required to be submitted hereunder shall be submitted to the other Party no later than twenty (20) days before submission for publication or presentation. The
non-disclosing Party shall provide its comments with respect to such publications and presentations within fifteen (15) days of its receipt of such written copy. The review period may be extended for an additional fifteen (15) days in the
event the non-disclosing Party can demonstrate reasonable need for such extension including for the preparation and filing of patent applications. PSIVIDA and PFIZER will each comply with standard academic practice regarding authorship of

  
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scientific publications and recognition of contribution of other parties in any publication. 

  

	 	9.4.	Filing, Registration or Notification of the Agreement. If a Party or any of its Affiliates determines that it is required by Law to publicly file, register or
notify this Agreement with a Governmental Authority (it being agreed that PSIVIDA or any of its Affiliates may file this Agreement with the Securities & Exchange Commission), such Party or such Affiliate shall (i) initially file a copy
of this Agreement in form redacting the financial terms and such other terms as are reasonably requested by the other Party (the “Redacted Agreement”), (ii) request, and use Commercially Reasonable Efforts to obtain,
confidential treatment of all terms redacted from this Agreement, as reflected in the Redacted Agreement, for a period of at least ten (10) years, (iii) permit the other Party to review and comment upon such request for confidential
treatment and any subsequent correspondence with respect thereto at least five (5) Business Days prior to its submission to such Governmental Authority, provided that any comments shall be made within three (3) Business Days of receipt,
(iv) promptly deliver to the other Party any written correspondence received by it or its representatives from such Governmental Authority with respect to such confidential treatment request and promptly advise the other Party of any other
communications between it or its representatives with such Governmental Authority with respect to such confidential treatment request, (v) upon the written request of the other Party, request an appropriate extension of the term of the
confidential treatment period, and (vi) if such Governmental Authority requests any changes to the redactions set forth in the Redacted Agreement, use Commercially Reasonable Efforts to support the redactions in the Redacted Agreement as
originally filed and shall not agree to any changes to the Redacted Agreement without first discussing such changes with the other Party and taking the other Party’s comments into consideration when deciding whether to agree to such changes.
Each Party and its Affiliates shall be responsible for its own legal and other external costs in connection with any such filing, registration or notification. 

 

	10.	Representations and Warranties. 

  

	 	10.1.	PSIVIDA Representations and Warranties. As of the Effective Date, PSIVIDA hereby represents and warrants to PFIZER as follows: 

 

	 	10.1.1.	 PSIVIDA has the corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder, and the execution,
delivery and performance of this Agreement by PSIVIDA have been duly and validly authorized and approved by proper 

  
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corporate action on the part of PSIVIDA, and PSIVIDA has taken all other action required by Law, its certificate of incorporation, by-laws or other organizational documents or any agreement to
which it is a party or to which it may be subject required to authorize such execution, delivery and performance. Assuming due authorization, execution and delivery on the part of PFIZER, this Agreement constitutes a legal, valid and binding
obligation of PSIVIDA, enforceable against PSIVIDA in accordance with its terms. 

  

	 	10.1.2.	The execution and delivery of this Agreement by PSIVIDA and the performance by PSIVIDA contemplated hereunder does not and will not violate any Laws or any order of any
court or Governmental Authority. 

  

	 	10.1.3.	Neither the execution and delivery of this Agreement nor the performance hereof by PSIVIDA requires PSIVIDA to obtain any permits, authorizations or consents from any
Governmental Authority (other than any Regulatory Approvals relating to performance of the Development Plan or the manufacture, use, importation or sale of the Product) or from any other person, firm or corporation, and such execution, delivery and
performance will not result in the breach of or give rise to any right of termination under any agreement or contract to which PSIVIDA or any of its Affiliates is a party or to which it may be subject, except for those breaches or rights that would
not adversely affect the ability of PSIVIDA to perform its obligations under this Agreement. 

  

	 	10.1.4.	[*], the patents encompassed within the PSIVIDA Patent Rights and the PSIVIDA Program Patent Rights as of the Effective Date, are, or, upon issuance, will be, valid and
enforceable patents and no Third Party is (i) infringing any such Patent Rights relating to the Device as of the Effective Date or (ii) has challenged the extent, validity or enforceability of such Patent Rights (including by way of
example through the institution or written threat of institution of interference, nullity or similar invalidity proceedings before the United States Patent and Trademark Office or any analogous foreign entity). 

 

	 	10.1.5.	Schedule 10.1.5 contains a complete and correct list of all patents and patent applications owned by or otherwise Controlled by PSIVIDA or any of its Affiliates
(and indicating which entity owns or Controls each patent and patent application and which are owned and which are Controlled) that are included within PSIVIDA Patent Rights and PSIVIDA Program Patent Rights. 

 
  

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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	 	10.1.6.	To the knowledge of PSIVIDA, PSIVIDA or its relevant Affiliate is the sole legal and beneficial owner of all the PSIVIDA Patent Rights and PSIVIDA Technology, free of
any lien, encumbrance, charge, security interest, mortgage or other similar restriction, and no person, firm, corporation, governmental agency, or other entity (including any Affiliate of PSIVIDA) has any right, interest or claim in or to, and
neither PSIVIDA nor any of its Affiliates has entered into any agreement granting to any Third Party (including any academic, governmental organization or agency) any right, interest or claim in or to, any PSIVIDA Patent Rights or PSIVIDA
Technology, which would conflict with the licenses and rights granted to Pfizer hereunder. 

  

	 	10.1.7.	Neither PSIVIDA nor any of its respective employees nor, to the best knowledge of PSIVIDA, its agents, in their capacity as such, have been debarred by the FDA,
pursuant to 21 U.S.C. §§ 335(a) or (b), or been charged with or convicted under United States law for conduct relating to the development or approval, or otherwise relating to the regulation of Product under the Generic Drug Enforcement
Act of 1992, disqualified from receiving investigational new drugs or devices under 21 CFR 312.70 or 812.119, or debarred, disqualified, or convicted under or for any equivalent or similar applicable foreign law, rule, or regulation.

  

	 	10.1.8.	There is no action, claim, demand, suit, proceeding, arbitration, grievance, citation, summons, subpoena, inquiry or investigation of any nature, civil, criminal,
regulatory or otherwise, in law or in equity, pending or, to the knowledge of PSIVIDA, threatened against PSIVIDA or any of its Affiliates in connection with the PSIVIDA Patent Rights, PSIVIDA Technology, PSIVIDA Program Patent Rights or PSIVIDA
Program Technology or relating to the transactions contemplated by this Agreement. 

  

	 	10.1.9.	 PSIVIDA has not and will not directly or indirectly offer or pay, or authorize such offer or payment, of any money or anything of value to improperly
seek, or corruptly seek to influence any Government Official, and, if PSIVIDA is itself a Government Official, has not accepted, and will not accept in the future, such a payment. Further, PSIVIDA undertakes to update the representations and
warranties herein if (during the term of this Agreement) PSIVIDA, or any of the employees, individuals, or subcontractors who will be primarily responsible for performing under this Agreement, or a relative of such an employee or individual or
subcontractor, becomes a Government Official. PSIVIDA will comply with Pfizer Inc.’s Anti-Bribery and Anti-Corruption Principles as set out in Exhibit A attached hereto in connection with its activities pursuant to this Agreement. For purposes
of this Agreement, a “Government Official” is defined as: (i) any elected or appointed Government Official (e.g., a member of a 

  
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ministry of health); (ii) any employee or person acting for or on behalf of a government official, agency, or enterprise performing a governmental function; (iii) any political party,
officer, employee, or person acting for or on behalf of a political party or candidate for public office; or (iv) an employee or person acting for or on behalf of a public international organization; where “government” is meant to
include all levels and subdivisions of non-US governments (i.e., local, regional, or national and administrative, legislative, or executive). 

  

	 	10.1.10.	PSIVIDA is not a healthcare professional and is not an appointed agent or expert of any public authority. 

 

	 	10.2.	PFIZER Representations and Warranties. As of the Effective Date, PFIZER hereby represents and warrants to PSIVIDA as follows: 

 

	 	10.2.1.	PFIZER has the corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder, and the execution, delivery and performance
of this Agreement by PFIZER have been duly and validly authorized and approved by proper corporate action on the part of PFIZER, and PFIZER has taken all other action required by Law, its certificate of incorporation or by-laws, or any agreement to
which it is a party or to which it may be subject, required to authorize such execution, delivery and performance. Assuming due authorization, execution and delivery on the part of PSIVIDA, this Agreement constitutes a legal, valid and binding
obligation of PFIZER, enforceable against PFIZER in accordance with its terms. 

  

	 	10.2.2.	The execution and delivery of this Agreement by PFIZER and the performance by PFIZER contemplated hereunder does not and will not violate any Laws or any order of any
court or Governmental Authority. 

  

	 	10.2.3.	Neither the execution and delivery of this Agreement nor the performance hereof by PFIZER requires PFIZER to obtain any permits, authorizations or consents from any
Governmental Authority (other than any Regulatory Approvals relating to the manufacture, use, importation or sale of the Product) or from any other person, firm or corporation, and such execution, delivery and performance will not result in the
breach of or give rise to any right of termination under any agreement or contract to which PFIZER or any of its Affiliates is a party or to which it may be subject, except for those breaches or rights that would not adversely affect the ability of
PFIZER to perform its obligations under this Agreement. 

  
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	 	10.2.4.	[*], the patents encompassed within the PFIZER Program Patent Rights are, or upon issuance will be, valid and enforceable patents and no Third Party (i) is
infringing any such Patent Rights relating to the Device as of the Effective Date or (ii) has challenged the extent, validity or enforceability of such Patent Rights (including by way of example through the institution or written threat of
institution of interference, nullity or similar invalidity proceedings before the United States Patent and Trademark Office or any analogous or foreign entity). 

 

	 	10.2.5.	To the knowledge of PFIZER, PFIZER or its relevant Affiliate is the sole legal and beneficial owner of all the PFIZER Patent Rights and PFIZER Technology, free of any
lien, encumbrance, charge, security interest, mortgage or other similar restriction, and no person, firm, corporation, governmental agency, or other entity (including any Affiliate of PFIZER) has any ownership right, interest or claim in or to, any
PFIZER Patent Rights or PFIZER Technology. 

  

	 	10.2.6.	Neither PFIZER nor any of its respective employees nor, to the best knowledge of PFIZER, its agents, in their capacity as such, have been debarred by the FDA, pursuant
to 21 U.S.C. §§ 335(a) or (b), or been charged with or convicted under United States law for conduct relating to the development or approval, or otherwise relating to the regulation of Product under the Generic Drug Enforcement Act of
1992, disqualified from receiving investigational new drugs or devices under 21 CFR 312.70 or 812.119, or debarred, disqualified, or convicted under or for any equivalent or similar applicable foreign law, rule, or regulation.

  

	 	10.2.7.	There is no action, claim, demand, suit, proceeding, arbitration, grievance, citation, summons, subpoena, inquiry or investigation of any nature, civil, criminal,
regulatory or otherwise, in law or in equity, pending or, to the knowledge of PFIZER threatened against PFIZER or any of its Affiliates (except to the extent disclosed pursuant to Section 10.2.4) relating to the PFIZER Program Patent Rights,
PFIZER Program Technology, PFIZER Technology or transactions contemplated by this Agreement. 

  

	 	10.2.8.	PFIZER has not and will not directly or indirectly offer or pay, or authorize such offer or payment, of any money or anything of value to improperly seek, or corruptly
seek to influence any Government Official, and, if PFIZER is itself a Government Official, has not accepted, and will not accept in the future, such a payment. Further, PFIZER undertakes to update the representations and warranties herein

  
  

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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if (during the term of this Agreement) PFIZER, or any of the employees, individuals, or subcontractors who will be primarily responsible for performing under this Agreement, or a relative of such
an employee or individual or subcontractor, becomes a Government Official. PFIZER will comply with its Anti-Bribery and Anti-Corruption Principles as set out in Exhibit A attached hereto in connection with its activities pursuant to this Agreement.

  

	 	10.3.	Disclaimer of Warranty. EXCEPT AS OTHERWISE EXPRESSLY STATED IN THIS AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATION OR WARRANTY OF ANY KIND WITH RESPECT TO
COMPOUNDS, DEVICES, FORMULATIONS, PRODUCTS, PATENT RIGHTS, OR TECHNOLOGY. EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION 10, EACH PARTY EXPRESSLY DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE AND NONINFRINGEMENT. 

  

	11.	Additional Covenants. 

  

	 	11.1.	Each of PSIVIDA and PFIZER shall conduct, and shall use Commercially Reasonable Efforts to cause its Affiliates to conduct, all its activities contemplated under this
Agreement in accordance with all applicable Laws of the country in which such activities are conducted. 

  

	 	11.2.	[*] 

  

	 	11.3.	Non-Compete. Subject to the BMP Agreement, the B&L Agreement, the Alimera Agreement, and Section 13.5, during the Royalty Term in any country, PSIVIDA
shall not, and shall cause its Affiliates not to, alone or in collaboration with any Third Party, promote, sell, distribute or otherwise commercialize in such country (a) any bioerodible Device delivering by subconjunctival implant or injection
the Compound, alone or together with another active ingredient, in humans, (b) any bioerodible Device for the treatment of Glaucoma in humans by a subconjunctival implant or injection that contains a prostaglandin, or (c) any Product for
uveitis, or grant any Third Party the right to do any of the foregoing; provided, however, that the foregoing shall not apply to prevent a Person that first becomes an Affiliate of PSIVIDA after the Effective Date from developing, promoting,
selling, distributing or otherwise commercializing such a Device as long as such developing, promoting, selling, distributing or otherwise commercializing does not infringe PSIVIDA Patent Rights or PSIVIDA Program Patent Rights.

  
  

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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	 	11.4.	Kentucky Study Agreement. As soon as practicable after the Effective Date, (a) PFIZER shall assign to PSIVIDA and PSIVIDA shall accept and assume all of the
rights and obligations of PFIZER under the Kentucky Study Agreement with effect from and after the Effective Date and (b) the Parties shall take such actions and execute such documents as are necessary to carry out such assignment and
assumption. 

  

	12.	Term. This Agreement shall be effective as of the Effective Date and shall, unless earlier terminated in accordance with Section 13, remain in effect
until the expiration of the Royalty Term. 

  

	13.	Termination. 

  

	 	13.1.	Termination Rights. This Agreement may be terminated as follows: 

  

	 	13.1.1.	If either PFIZER or PSIVIDA materially breaches or materially defaults in the performance or observance of any of its respective obligations under this Agreement, and
such breach or default is not cured within (a) in the event of a failure of a Party to make a required payment under this Agreement, thirty (30) days and (b) for all other breaches or defaults, sixty (60) days after the giving of
written notice by the other Party specifying such breach or default, then such other Party shall have the right to terminate this Agreement by providing the breaching Party written notice within thirty (30) days following the expiration of such
period (such termination to be effective upon receipt of such termination notice). For the purpose of this Section 13.1.1, a material breach or material default shall include a material inaccuracy in any warranty or representation contained
herein. In addition, PSIVIDA may terminate this Agreement pursuant to Section 11.2. 

  

	 	13.1.2.	PFIZER may terminate this Agreement effective immediately upon notice to PSIVIDA, if PSIVIDA breaches any of the representations and warranties set forth in
Section 10.1.9 or if PFIZER learns that improper payments are being or have been made to Government Officials (as defined in Section 10.1.9) by PSIVIDA with respect to services performed or activities undertaken either on behalf of PSIVIDA
or in connection with PSIVIDA’s provision of services to any other party. Further, in the event of any termination referred to in the preceding sentence, PSIVIDA shall not be entitled to any further payment, regardless of any activities
undertaken or agreements with additional Third Parties entered into prior to termination, and PSIVIDA shall be liable for damages or remedies as provided by law. 

  
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	 	13.1.3.	PSIVIDA may terminate this Agreement effective immediately upon notice to PFIZER, if PFIZER breaches any of the representations and warranties set forth in
Section 10.2.8 or if PSIVIDA learns that improper payments are being or have been made to Government Officials (as defined in Section 10.2.8) by PFIZER with respect to services performed or activities undertaken either on behalf of PFIZER
or in connection with PFIZER’s provision of services to any other party. Further, in the event of any termination referred to in the preceding sentence, PFIZER shall not be entitled to any further payment, regardless of any activities
undertaken or agreements with additional Third Parties entered into prior to termination, and PFIZER shall be liable for damages or remedies as provided by law. 

 

	 	13.1.4.	If either Party is generally unable to meet its debts when due, or makes a general assignment for the benefit of its creditors, or there shall have been appointed a
receiver, trustee or other custodian for such Party for all or a substantial part of its assets, or any case or proceeding shall have been commenced or other action taken by or against such Party in bankruptcy or seeking the reorganization,
liquidation, dissolution or winding-up of such Party or any other relief under any bankruptcy, insolvency, reorganization or other similar act or Law, and any such event shall have continued for sixty (60) days undismissed, unstayed, unbonded
and undischarged, then the other Party may, upon notice to such Party, terminate this Agreement, such termination to be effective upon such Party’s receipt of such notice. 

 

	 	13.1.5.	PFIZER, upon sixty (60) days’ written notice to PSIVIDA, shall have the right, at PFIZER’s sole discretion, to terminate this Agreement.

  

	 	13.1.6.	This Agreement shall terminate under the circumstances set forth in Section 3.3 or Section 3.5 

 

	 	13.1.7.	In the event that the Parties make an HSR Filing under Section 3.6.5 hereof, this Agreement shall terminate (a) at the election of either Party immediately
upon notice to the other Party, in the event that the United States Federal Trade Commission and/or the United States Department of Justice shall seek or threaten or shall obtain a preliminary injunction under the HSR Act against PFIZER and PSIVIDA
to enjoin the transactions contemplated by this Agreement, or (b) at the election of either Party, immediately upon notice to the other Party, in the event that the HSR Clearance Date shall not have occurred on or prior to ninety (90) days
after the effective date of the HSR Filing. Notwithstanding the foregoing, this Section 13.1.7 shall not apply in the event that an HSR Filing is not required. 

 

	 	13.2.	 Accrued Obligations. Expiration or termination of this 

  
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Agreement for any reason (x) shall be without prejudice to a Party’s right to receive all royalties accrued under Section 6 prior to the effective date of such termination and to
any other remedies that either Party may otherwise have and (y) shall not release a Party hereto from any indebtedness, liability or other obligation incurred hereunder by such Party prior to the date of termination or expiration.

  

	 	13.3.	Effect of Termination. 

  

	 	13.3.1.	Upon any termination of this Agreement pursuant to Section 13.1.1, 13.1.3, 13.1.4, 13.1.5, 13.1.6 or 13.1.7, all licenses granted herein to PFIZER shall terminate.
Upon any termination of this Agreement by PFIZER pursuant to Section 13.1.1, 13.1.2 or 13.1.4 or upon any termination of this Agreement pursuant to Section 13.1.6 or 13.1.7, all licenses granted herein to PSIVIDA shall terminate, except
for such licenses that survive as provided by Section 16.7, and except as expressly set forth in Section 13.3.2. 

  

	 	13.3.2.	If PFIZER terminates this Agreement pursuant to Section 13.1.5 (other than in the event (A) of any safety issue that would reasonably be expected to have a
material adverse effect on PFIZER’s ability to develop, manufacture or commercialize the Product, as determined in good faith in the reasonable judgment of PFIZER’s internal safety committee in accordance with PFIZER’s standard
internal procedures for evaluating such safety issues or (B) that a Regulatory Authority or data monitoring review board has required termination or suspension of a Clinical Trial for the Product or withdrawal of the Product from any market on
account of a safety issue), or this Agreement terminates pursuant Section 13.1.6 or 13.1.7, or PSIVIDA terminates this Agreement pursuant to Section 13.1.1 or 13.1.3 (but in no event if (x) any such termination results, arises from or
relates to, or is deemed to result, arise from or relate to, by operation of law or otherwise, any termination or deemed termination hereof that occurs during the course of any bankruptcy or other insolvency proceeding involving PSIVIDA or
(y) PSIVIDA rejects this Agreement pursuant to Sections 363, 365 or 1123 of Title 11 of the United States Code, as amended): 

  

	 	(a)	 PFIZER shall at PSIVIDA’s request, (i) use Commercially Reasonable Efforts to transfer ownership of all regulatory filings and Regulatory
Approvals that relate solely to the Product to PSIVIDA or its designee; (ii) deliver to PSIVIDA a copy of all Clinical IP in PFIZER’s or any of its Affiliates’ possession and Control (including Clinical IP generated by Third Parties
under any services arrangement) related to the Product (and that does not relate solely to the Compound), if any, in the same form in which PFIZER or such Affiliate maintains such data; (iii) provide

  
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PSIVIDA with copies of any then-existing documentation and technical information, in the form and format in which such materials are maintained by PFIZER or any of its Affiliates in the ordinary
course of its business, that are necessary for the manufacture of the Product, which documentation and technical information shall include (A) [*], (B) [*], (C) [*], (D) [*], (E) [*] and (F) such other documentation as the Parties may
mutually agree, in each case of the foregoing subsections (iii) and (A) through (F), that are in PFIZER’s or any of its Affiliates’ possession and Control (including any of the foregoing that are generated by Third Parties under
any services arrangement) and are necessary to manufacture Products; and (iv) deliver to PSIVIDA, in the same form in which PFIZER or any of its Affiliates maintains such items, copies of all regulatory reports, records, correspondence and
other regulatory materials in PFIZER’s or any of its Affiliates’ possession and Control related solely to such Product (and not related solely to the Compound) and any Regulatory Approval therefor (including any of the foregoing that are
generated by Third Parties under any services arrangement), including, if applicable, any information contained in the global safety database established and maintained by PFIZER or any of its Affiliates (provided that any good faith failure by
PFIZER to provide immaterial data, information, reports, records, correspondence or other materials to PSIVIDA shall not be a breach of PFIZER’s obligations under this Section 13.3.2). 

 

	 	(b)	PFIZER shall and hereby does grant to PSIVIDA (i) a non-exclusive, royalty-free (except as set forth below in this paragraph), perpetual, irrevocable, world-wide
license, with the right to sublicense, under and to the Clinical IP Controlled by PFIZER or any of its Affiliates, the PFIZER Patent Rights, the PFIZER Technology, the PFIZER Program Technology and the PFIZER Program Patent Rights, and (ii) the
non-exclusive right to [*], in the case of (i) and (ii) solely to develop, make, have made, sell, offer for sale, use and import the Product. It is understood that 

  
  

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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upon any termination, PSIVIDA will not obtain any rights to PFIZER Compounds, PFIZER Patent Rights, PFIZER Technology, PFIZER Program Patent Rights or PFIZER Program Technology except as
expressly set forth in this Agreement. If any of the foregoing are licensed to Pfizer from a Third Party (“Third Party Licensor”), [*]. Without limiting the foregoing [*]. 

 

	 	(c)	PFIZER shall and hereby does grant to PSIVIDA a non-exclusive, royalty-free (except as set forth below in this paragraph), perpetual, irrevocable, world-wide license,
with the right to sublicense, under and to all PFIZER Controlled Intellectual Property, solely to develop, make, have made, sell, offer for sale, use and import the Product; provided that such license shall continue only so long as (a) PSIVIDA
elects to accept such license, and (b) [*]

  

 

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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[*]. Without limiting the foregoing, [*]. 

  

	 	13.3.3.	Following any termination of this Agreement but subject to the foregoing provisions of Section 13.3.2 each Party shall, upon request of the other Party, return or
destroy all Confidential Information 

  

 

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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disclosed to it by the other Party pursuant to this Agreement or the Prior Agreement, including all copies and extracts of documents, as promptly as practicable following receipt of such request,
except that one (1) copy may be kept for the purpose of complying with continuing obligations under this Agreement. 

  

	 	13.3.4.	In order to ensure the smooth transition of the development and/or commercialization of the Product from PFIZER to PSIVIDA or a Third Party designated by PSIVIDA, at
PSIVIDA’s request, representatives of PFIZER and PSIVIDA will meet to discuss in good faith a transition plan with respect to all then-current as well as planned activities relating to the Product, consistent with Section 13.3.2.

  

	 	13.4.	Bankruptcy. All rights and licenses granted under or pursuant to this Agreement by PSIVIDA are, and shall otherwise be deemed to be, for purposes of Article
365(n) of the U.S. Bankruptcy Code, licenses of rights to “intellectual property” as defined under Article 101 of the U.S. Bankruptcy Code. The Parties agree that PFIZER, as licensee of such rights under this Agreement, shall retain and
may fully exercise all of its rights and elections under the U.S. Bankruptcy Code. The Parties further agree that, in the event of the commencement of any proceeding by or against PSIVIDA or any of its Affiliates under the U.S. Bankruptcy Code,
PFIZER shall be entitled to a complete duplicate of (or complete access to, as appropriate) any such intellectual property and all embodiments of such intellectual property, and, if not already in its possession, PSIVIDA shall promptly deliver to
PFIZER all such intellectual property and all embodiments of such intellectual property (a) upon PFIZER’s request any time following commencement of any such proceeding, unless PSIVIDA elects to continue to perform all of its obligations
under this Agreement or (b) if not delivered under (a) above, upon PFIZER’s request any time following the rejection of this Agreement by or on behalf of PSIVIDA. 

 

	 	13.5.	 Change of Control. PSIVIDA shall notify PFIZER promptly, but in no event later than five (5) Business Days, following approval by
PSIVIDA’s (or its parent corporation’s) board of directors of any transaction that constitutes a Change of Control; provided, however, that in the event such disclosure is prohibited by applicable Law or PSIVIDA’s contractual
obligations to a Third Party, PSIVIDA shall have the right to delay such notification until five (5) Business Days following the consummation of the applicable Change of Control. Effective upon the consummation of such Change of Control,
Section 3.4(e) shall be automatically deleted from this Agreement and shall cease to be of any further force or effect. PFIZER shall have the right upon sixty (60) days’ notice following any such Change of Control, to elect that any
one or more of the following shall be deleted, in 

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	
whole or in part, from this Agreement: Sections 2.1 through 2.6 and 3.6.4, and PFIZER’s obligations under Sections 3.9, 3.10, 5.2.3, 5.2.4, and 5.5.1. If PFIZER makes any election as
provided in this Section 13.5 to delete any Section, each of the Parties hereto will enter into an appropriate and customary written amendment and no Party shall have any further obligations with respect to any such deleted Section. In the
event that a transaction that constitutes a Change of Control is approved by PSIVIDA’s board of directors but is not consummated, any Section deleted by PFIZER pursuant to the foregoing shall immediately and automatically be reinstated upon
notice thereof by PSIVIDA to PFIZER. For the avoidance of doubt, PFIZER shall be entitled, in its sole discretion, to make the elections provided for in this Section 13.5 upon each occurrence of a Change of Control. 

 

	 	13.6.	Breach Remedy. If an event occurs that gives rise to a right of termination by PFIZER under Section 13.1.1 (as a result of an uncured breach by PSIVIDA) and
if PFIZER elects not to terminate this Agreement, any amounts payable by PFIZER to PSIVIDA pursuant to Section 3.6.1 or Section 6 shall be reduced to seventy percent (70%) (i.e., a thirty percent (30%) reduction) of the amount
that would otherwise have been payable under the terms of the Agreement during the Term and PFIZER may elect that any one or more of the following shall be deleted, in whole or in part, from this Agreement: Sections 2.1 through 2.6, 3.6.3 and 3.10,
and PFIZER’s obligations under Sections 3.9, 5.2.3, 5.2.4 and 5.5.1. If PFIZER makes any election as provided in this Section 13.6 to delete any Section, each of the Parties hereto will enter into an appropriate and customary written
amendment and no Party shall have any further obligations with respect to any such deleted Section. 

  

	14.	Indemnification and Insurance. 

  

	 	14.1.	Indemnification. 

  

	 	14.1.1.	PSIVIDA will indemnify, defend and hold PFIZER and PFIZER’s Affiliates, and their respective directors, officers and employees (collectively,
“Representatives”), harmless from any and all Losses (as defined below) incurred by any of them and which are not covered by an insurance policy that result from: 

 

	 	(a)	the breach of any covenant, warranty or representation made by PSIVIDA under this Agreement; 

 

	 	(b)	the negligence, recklessness, or willful misconduct of PSIVIDA or any of its Affiliates; or 

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	(c)	any acts or omissions of PSIVIDA or any of its Affiliates, agents or licensees in connection with the research, development or commercialization of the Product.

 PSIVIDA shall only be obligated to so indemnify, defend and hold PFIZER harmless to the extent that such Losses
do not result from the negligence, recklessness or willful misconduct of PFIZER or its Affiliates, agents or licensees. 
  

	 	14.1.2.	PFIZER will indemnify, defend and hold PSIVIDA and PSIVIDA’s Representatives, harmless from any and all Losses incurred by any of them and which are not covered by
an insurance policy that result from: 

  

	 	(a)	the breach of any covenant, warranty or representation made by PFIZER under this Agreement; 

 

	 	(b)	the negligence, recklessness, or willful misconduct of PFIZER or any of its Affiliates; 

 

	 	(c)	any acts or omissions of PFIZER or any of its Affiliates, agents or licensees in connection with the research, development or commercialization of the Product.

 PFIZER shall only be obligated to so indemnify, defend and hold PSIVIDA harmless to the extent that such Losses
do not result from the negligence, recklessness or willful misconduct of PSIVIDA or its Affiliates, agents or licensees. 
  

	 	14.2.	Losses. For purposes of this Agreement, “Losses” means any and all costs, expenses, claims, losses, liabilities, damages, fines, royalties,
governmental penalties or punitive damages, deficiencies, interest, settlement amounts, awards, and judgments, including any and all reasonable, out-of-pocket costs and expenses properly incurred, as a result of a Third Party claim (including
reasonable, out-of-pocket attorneys’ fees and all other expenses reasonably incurred in investigating, preparing or defending any litigation or proceeding, commenced or threatened), in each case, net of any insurance recovery received as a
result of such Loss. 

  

	 	14.3.	 Insurance. Each Party shall maintain, and shall cause its Affiliates and each sublicensee conducting activities under this Agreement to
maintain, at such Party’s, an Affiliate’s, or sublicensee’s sole expense, appropriate product liability insurance coverage in amounts reasonably determined by the Party from time to time but at least sufficient to insure against
claims which may arise from the performance of obligations or exercise of rights granted under this Agreement or from indemnification obligations under this Section 14, but

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	
in no event shall a Party’s insurance coverage be in an amount less than $5,000,000 per occurrence and $10,000,000 annual aggregate (provided that (i) in the case of PFIZER such
coverage may be pursuant to a program of self-insurance and (ii) in the case of an Affiliate that becomes an Affiliate of PSIVIDA following the Effective Date, such Affiliate may (a) continue to operate under a self-insurance plan that was
in place at the time it became an Affiliate or (b) adopt a self-insurance plan to the extent such plan is reasonable in light of industry practices of Persons similarly situated to such Affiliate). The policy of insurance shall contain a
provision of non-cancellation except upon the provision of thirty (30) days notice to the other Party. Each Party shall maintain such insurance commencing on the Effective Date and for so long as it continues to research, produce, develop,
manufacture, distribute, sell or use the Products, and thereafter for so long as each Party maintains insurance for itself covering such manufacture or sales. 

 

	 	14.4.	Defense Procedures; Procedures for Third Party Claims. In the event that any Third Party (in no event to include any Affiliate of any of the Parties) asserts a
claim with respect to any matter for which a Party (the “Indemnified Party”) is entitled to indemnification hereunder (a “Third Party Claim”), then the Indemnified Party shall promptly notify the Party obligated to
indemnify the Indemnified Party (the “Indemnifying Party”) thereof; provided, however, that no delay on the part of the Indemnified Party in notifying the Indemnifying Party shall relieve the Indemnifying Party from
any obligation hereunder unless (and then only to the extent that) the Indemnifying Party is prejudiced thereby. 

  

	 	14.4.1.	The Indemnifying Party shall have the right, exercisable by notice to the Indemnified Party within ten (10) Business Days after receipt of notice from the
Indemnified Party of the commencement of or assertion of any Third Party Claim, to assume direction and control of the defense, litigation, settlement, appeal or other disposition of the Third Party Claim (including the right to settle the claim
solely for monetary consideration) with counsel selected by the Indemnifying Party and reasonably acceptable to the Indemnified Party; provided that (i) the Indemnifying Party has sufficient financial resources, in the reasonable judgment of
the Indemnified Party, to satisfy the amount of any adverse monetary judgment that is sought, (ii) the Third Party Claim seeks solely monetary damages and (iii) the Indemnifying Party expressly agrees in writing that as between the
Indemnifying Party and the Indemnified Party, the Indemnifying Party shall be solely obligated to satisfy and discharge the Third Party Claim in full (the conditions set forth in clauses (i), (ii) and (iii) above are collectively referred
to as the “Litigation Conditions”). 

  

	 	14.4.2.	 Within ten (10) Business Days after the Indemnifying Party has given notice to the Indemnified Party of its exercise of its right to defend a

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	
Third Party Claim, the Indemnified Party shall give notice to the Indemnifying Party of any objection thereto based upon the Litigation Conditions. If the Indemnified Party reasonably so objects,
the Indemnified Party shall continue to defend the Third Party Claim, at the expense of the Indemnifying Party, until such time as such objection is withdrawn. If no such notice is given, or if any such objection is withdrawn, the Indemnifying Party
shall be entitled, at its sole cost and expense, to assume direction and control of such defense, with counsel selected by the Indemnifying Party and reasonably acceptable to the Indemnified Party. During such time as the Indemnifying Party is
controlling the defense of such Third Party Claim, the Indemnified Party shall cooperate, and shall cause its Affiliates and agents to cooperate upon request of the Indemnifying Party, in the defense or prosecution of the Third Party Claim,
including by furnishing such records, information and testimony and attending such conferences, discovery proceedings, hearings, trials or appeals as may reasonably be requested by the Indemnifying Party. In the event that the Indemnifying Party
does not satisfy the Litigation Conditions or does not notify the Indemnified Party of the Indemnifying Party’s intent to defend any Third Party Claim within ten (10) Business Days after notice thereof, the Indemnified Party may (without
further notice to the Indemnifying Party) undertake the defense thereof with counsel of its choice and at the Indemnifying Party’s expense (including reasonable, out-of-pocket attorneys’ fees and costs and expenses of enforcement or
defense). The Indemnifying Party or the Indemnified Party, as the case may be, shall have the right to join in (including the right to conduct discovery, interview and examine witnesses and participate in all settlement conferences), but not
control, at its own expense, the defense of any Third Party Claim that the other Party is defending as provided in this Agreement. 

  

	 	14.4.3.	 The Indemnifying Party shall not, without the prior written consent of the Indemnified Party, enter into any compromise or settlement or consent to the
entry of any judgment with respect to any claim or Loss (a) that does not release Indemnified Party from all liability with respect to such claim or Loss or (b) which may materially adversely affect Indemnified Party or under which
Indemnified Party would incur any obligation, commitment to act or forbear from taking any action, or liability, other than one as to which Indemnifying Party has an indemnity obligation hereunder. The Indemnified Party shall have the sole and
exclusive right to settle any Third Party Claim, on such terms and conditions as it deems reasonably appropriate, to the extent such Third Party Claim involves equitable or other non-monetary relief, but shall not have the right to settle such Third
Party Claim to the extent such Third Party Claim involves monetary damages without the prior written consent of the Indemnifying Party. Each of the Indemnifying Party and the Indemnified Party shall not make any

  
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admission of liability in respect of any Third Party Claim without the prior consent of the other Party, and the Indemnified Party shall use Commercially Reasonable Efforts to mitigate losses
arising from the Third Party Claim. 

  

	 	14.5.	Disclaimer of Liability for Consequential Damages. IN NO EVENT SHALL ANY PARTY OR ANY OF ITS RESPECTIVE AFFILIATES BE LIABLE UNDER THIS AGREEMENT FOR SPECIAL,
INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES, WHETHER IN CONTRACT, WARRANTY, TORT, NEGLIGENCE, STRICT LIABILITY OR OTHERWISE, INCLUDING LOSS OF PROFITS OR REVENUE, SUFFERED BY PFIZER, PSIVIDA OR ANY OF THEIR RESPECTIVE REPRESENTATIVES, EXCEPT TO
THE EXTENT OF ANY SUCH DAMAGES PAID TO A THIRD PARTY IN CONNECTION WITH A THIRD PARTY CLAIM; PROVIDED THAT THIS SECTION SHALL NOT RELIEVE EITHER PARTY FROM ITS PAYMENT OBLIGATIONS UNDER THIS AGREEMENT. 

 

	 	14.6.	SOLE REMEDY. EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT AND EXCEPT FOR ANY EQUITABLE REMEDIES THAT MAY BE AVAILABLE TO A PARTY, INDEMNIFICATION PURSUANT TO
THIS SECTION 14 SHALL BE THE SOLE AND EXCLUSIVE REMEDY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER LEGAL THEORY) AVAILABLE TO PSIVIDA OR PFIZER FOR THE MATTERS COVERED THEREIN. 

 

	15.	Governing Law and Jurisdiction. 

  

	 	15.1.	Governing Law. This Agreement shall be governed by and construed in accordance with the substantive laws of the State of New York, without regard to conflicts of
law rules. 

  

	 	15.2.	 Jurisdiction. With the exception of those matters referred for resolution by independent accountants under Section 7.5, in the event of any
controversy, claim or counterclaim arising out of or relating to this Agreement, the Parties shall first attempt to resolve such controversy or claim through good faith negotiations for a period of not less than thirty (30) days following
notification of such controversy or claim to the other Party. If such controversy or claim cannot be resolved by means of such negotiations during such period, then such controversy or claim shall be resolved by the United States District Court for
the Southern District of New York or a local court sitting in New York, New York (collectively, the “Courts”). Each Party (a) irrevocably submits to 

  
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the exclusive jurisdiction in the Courts for purposes of any action, suit or other proceeding relating to or arising out of this Agreement and (b) agrees not to raise any objection at any
time to the laying or maintaining of the venue of any such action, suit or proceeding in any of the Courts, irrevocably waives any claim that such action, suit or other proceeding has been brought in an inconvenient forum and further irrevocably
waives the right to object, with respect to such action, suit or other proceeding, that such Court does not have any jurisdiction over such party. In the event of any action, suit or other proceeding pursuant to this Section 15.2, either Party
may effect service of process by providing a complaint and/or summons or other court filing to the other Party pursuant to Section 16.10. Any defenses based on adequacy of service of process, other than breach of Section 16.10 are waived.

  

	16.	Miscellaneous. 

  

	 	16.1.	Termination of Prior Agreements. The Parties agree that: (a) this Agreement shall supersede the Prior Agreement, which shall be and hereby is terminated as
of the Effective Date; (b) notwithstanding any provisions of the Prior Agreement to the contrary, no rights, obligations or liabilities of the Parties under the Prior Agreement shall survive this termination except for rights, obligations and
liabilities of both Parties under Section 9 (Confidentiality), Section 14 (Indemnification), and other sections, exhibits, or definitions referenced therein; and (c) as of the Effective Date, all payment and performance obligations,
except for the assignment of rights from PSIVIDA to PFIZER related to United States Provisional Patent Application [*], owed by each Party under the Prior Agreement (including any payments that were due and payable prior to the Effective Date) to
the other Party are hereby deemed fully paid and performed by such owing Party. 

  

	 	16.2.	Force Majeure. Neither Party hereto shall be liable to the other Party (except for payment obligations set forth in this Agreement, each of which shall remain in
effect) for any losses or damages attributable to a default in or breach of this Agreement that is the result of war (whether declared or undeclared), acts of God, revolution, acts of terror, fire, earthquake, flood, pestilence, riot, enactment or
change of Law (following the Effective Date), accident(s), labor trouble, or shortage of or inability to obtain material equipment or transport or any other cause beyond the reasonable control of such Party; provided that if such a cause
occurs, then the Party affected will promptly notify the other Party of the nature and likely result and duration (if known) of such cause and use Commercially Reasonable Efforts to reduce the 

 
  

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	
effect. If the event lasts for a period of longer than three (3) months, the Parties shall meet and discuss appropriate remedial measures. 

 

	 	16.3.	Reserved Rights; Non-Exclusivity. 

  

	 	16.3.1.	All rights and interests not expressly granted to PFIZER are reserved by PSIVIDA (the “PSIVIDA Reserved Interests”) for itself, its Affiliates and
partners (other than PFIZER) and other licensees and sublicensees, including, but not limited to, the rights to use, enter into agreements or grant licenses under the PSIVIDA Patent Rights, PSIVIDA Program Patent Rights, PSIVIDA Technology, PSIVIDA
Program Technology or any other technology owned, licensed or controlled by PSIVIDA or any of its Affiliates to make, have made, use, offer to sell, sell, have sold and import products (other than the Product in the Territory in the Field or for
uveitis for so long as PFIZER has an exclusive license to the Product in the Field in the Territory under this Agreement). It shall not be a breach of this Agreement for PSIVIDA, acting directly or indirectly, to exploit the PSIVIDA Reserved
Interests in any manner anywhere in or outside of the Territory, whether or not such activity is competitive with the activities of PFIZER, including the research, development and commercialization or licensing to others to research, develop and
commercialize products (other than the Product in the Territory in the Field or for uveitis in the Territory for so long as PFIZER has an exclusive license to the Product in the Field in the Territory under this Agreement). 

 

	 	16.3.2.	Subject to Section 13.3.3, except as otherwise expressly provided in this Agreement, for the avoidance of doubt, PFIZER shall be free to use, enter into an
agreement with and grant licenses to any Third Party or Third Parties under the PFIZER Patent Rights, the PFIZER Program Patent Rights, the PFIZER Technology or the PFIZER Program Technology or any other technology owned, licensed or Controlled by
PFIZER or any of its Affiliates to research, develop and commercialize any and all products, and it shall not be a breach of this Agreement for PFIZER, acting directly or indirectly, to engage in any activities competitive with the activities of
PSIVIDA, including the research, development and commercialization of products and other drug delivery devices. 

  

	 	16.4.	 Severability. If and solely to the extent that any provision of this Agreement shall be invalid or unenforceable, or shall render this entire
Agreement to be unenforceable or invalid, such offending provision shall be of no effect and shall not affect the validity of the remainder of this Agreement or any of its provisions; provided, however, the Parties shall use their
respective 

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	
Commercially Reasonable Efforts to replace the invalid provisions in a manner that best accomplishes the original intentions of the Parties. 

 

	 	16.5.	Waivers. Any term or condition of this Agreement may be waived at any time by the Party that is entitled to the benefit thereof, but no such waiver shall be
effective unless set forth in a written instrument duly executed by or on behalf of the Party or Parties waiving such term or condition. Neither the waiver by any Party of any term or condition of this Agreement nor the failure on the part of any
Party, in one or more instances, to enforce any of the provisions of this Agreement or to exercise any right or privilege, shall be deemed or construed to be a waiver of such term or condition for any similar instance in the future or of any
subsequent breach hereof. All rights, remedies, undertakings, obligations and agreements contained in this Agreement shall be cumulative and none of them shall be a limitation of any other remedy, right, undertaking, obligation or agreement.

  

	 	16.6.	Entire Agreements; Amendments. This Agreement sets forth the entire agreement and understanding between the Parties as to the subject matter hereof and
supersedes all agreements or understandings, verbal or written, made between PSIVIDA and PFIZER before the date hereof with respect to the subject matter hereof, including the Confidentiality Agreement between the Parties, dated February 2,
2007, the Feasibility Study Agreement dated December 22, 2006 and the Collaborative Research and License Agreement dated April 3, 2007. All Confidential Information disclosed prior to the Effective Date will be deemed to have been
disclosed pursuant to this Agreement. None of the terms of this Agreement shall be amended, supplemented or modified except in writing signed by the Parties. 

 

	 	16.7.	Survival. The provisions of Section 1 (Definitions), 4.2(b), 5.2 (Regulatory Affairs), 7.5 (Inspection of Records), 8.1 (Disclosure and Ownership of Program
Technology and Program Patent Rights), 9.1 (Confidential Information), 9.2 (Disclosure of Agreement Terms), 9.4 (Filing, Registration or Notification of the Agreement), 13 (Termination), 14 (Indemnification and Insurance), 15 (Governing Law and
Jurisdiction) and 16 (Miscellaneous), as well as any other Sections or defined terms referred to in such Sections or necessary to give them effect shall survive termination or expiration of this Agreement and remain in force until discharged in
full. Furthermore, any other provisions required to interpret and enforce the Parties’ rights and obligations or to wind up their outstanding obligations under this Agreement shall survive to the extent required. 

 

	 	16.8.	 Assignment. Neither this Agreement nor any rights or obligations of 

  
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either Party to this Agreement may be assigned or otherwise transferred by either Party without the consent of the other Party; provided, however, either Party may, without such
consent, assign this Agreement, in whole or in part: (i) to any of its respective Affiliates; (ii) to any transferee of all or substantially all of such Party’s assets or business or all or substantially all of such Party’s
ophthalmic assets or business, or (iii) in connection with a Change of Control of such Party; provided that such assigning Party shall remain jointly and severally liable with such assignee or transferee in respect of all obligations so
assigned. Any purported assignment in violation of this Section 16.8 shall be void. Any permitted assignee shall assume all obligations of its assignor under this Agreement. 

 

	 	16.9.	Independent Contractor. The relationship between PSIVIDA and PFIZER is that of independent contractors. PSIVIDA and PFIZER are not joint venturers, partners,
principal and agent, employer and employee, and have no other relationship other than independent contracting parties. 

  

	 	16.10.	Notices. Each communication and document made or delivered by one Party to another under this Agreement shall be made in the English language. All notices,
consents, approvals, requests or other communications required hereunder given by one Party to the other hereunder shall be in writing and made by registered or certified air mail, facsimile, express overnight courier or delivered personally to the
following addresses of the respective Parties: 

  

	If to PSIVIDA:	PSIVIDA Inc. 

	    	400 Pleasant Street 

	    	Watertown, MA 02472 

	    	Attention: President 

	    	Fax: (617) 926-5050 

  

	with a copy to:	PSIVIDA Inc. 

	    	400 Pleasant Street 

	    	Watertown, MA 02472 

	    	Attention: General Counsel 

	    	Fax: (617) 926-5050 

  

	with a copy to:	Ropes & Gray LLP 

	    	800 Boylston Street 

	    	Boston, MA 02199 

	    	Attention: Susan Galli, Esq. 

  

	    	Invoices should be sent to PSIVIDA as directed by PSIVIDA. 

  
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	If to PFIZER:	Pfizer Inc. 

	    	235 East 42nd Street 

	    	New York, New York 10017-5755 

	    	U.S.A. 

	    	Attention: Senior Vice President Worldwide Business Development 

  

	with a copy to:	Pfizer Inc. 

	    	235 East 42nd Street 

	    	New York, New York 10017-5755 

	    	U.S.A. 

	    	Attention: General Counsel 

  

	    	Invoices should be sent to PFIZER as directed by PFIZER. 

 Notices hereunder shall be deemed to be effective (a) upon receipt if personally delivered, (b) on the tenth (10th) Business Day following the date of mailing if sent by registered or
certified air mail; (c) on the second (2nd) Business Day following the date of transmission or delivery to the overnight courier if sent by facsimile or overnight courier. A Party may change its address listed above by sending notice to
the other Party in accordance with this Section 16.10. 
  

	 	16.11.	Third Party Beneficiaries. None of the provisions of this Agreement shall be for the benefit of or enforceable by any Third Party, including any creditor of
either Party. No Third Party shall obtain any right under any provision of this Agreement or shall by reason of any such provision make any claim in respect of any debt, liability or obligation (or otherwise) against either Party.

  

	 	16.12.	Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective heirs, successors and permitted assigns.

  

	 	16.13.	Counterparts. This Agreement may be executed in any two or more counterparts, including by facsimile or by electronic scan copies delivered by email, each of
which, when executed, shall be deemed to be an original and all of which together shall constitute one and the same document. 

  

	 	16.14.	Headings. Headings in this Agreement are included herein for ease of reference only and shall have no legal effect. References to the parties, Sections,
Schedules, and Exhibits are to the parties, Sections, Schedules and Exhibits to and of this Agreement unless otherwise specified. 

 [Signature page follows.] 

  
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 IN WITNESS WHEREOF the Parties hereto have caused this Agreement to be executed by their
duly authorized officers upon the date set out above. 
  

									
	PSIVIDA CORP.	 		 	PFIZER INC.
			
	For itself and as successor to pSivida Limited	 		 	
					
	By:	 	/s/ Paul Ashton	 		 	By:	 	/s/ Adam Woodrow
	Name:	 	Paul Ashton	 		 	Name:	 	Adam Woodrow
	Title:	 	President and CEO	 		 	Title:	 	VP Commercial Development
			
	PSIVIDA US, INC.	 		 	
			
	Formerly known as pSivida, Inc.	 		 	
					
	By:	 	/s/ Paul Ashton	 		 		 	
	Name:	 	Paul Ashton	 		 		 	
	Title:	 	President and CEO	 		 		 	
			
	PSIMEDICA LIMITED	 		 	
					
	By:	 	/s/ Paul Ashton	 		 		 	
	Name:	 	Paul Ashton	 		 		 	
	Title:	 	Director	 		 		 	

  

 CONFIDENTIAL TREATMENT REQUESTED 

 

 Schedule 1.65 

PFIZER Patent Rights 

[*] 
  

 

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  

 CONFIDENTIAL TREATMENT REQUESTED 

 

 Schedule 1.66 

PFIZER Program Patent Rights 
 All right, title and interest to [*]. 
  

 

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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 Schedule 1.74 

Phase II Activities 
 [*]

  
  

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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 Schedule 1.82 

PSIVIDA Patent Rights 

[*] 
  

 

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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 Schedule 1.83 

PSIVIDA Program Patent Rights 
 All right, title and interest to [*]. 
  

 

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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 Schedule 10.1.5 

Scheduled PSIVIDA Patent Rights 
 [*] 
 pSivida US, Inc., owns all right, title and interest to [*]. 

 
  

	*	Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  
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 Exhibit A 
 FCPA 
 PFIZER ANTI-BRIBERY AND ANTI-CORRUPTION PRINCIPLES 

Pfizer Corporate Policy # 201 (Lawful and Ethical Behavior) provides that Pfizer colleagues must conduct all Pfizer business in a lawful and ethical
manner, in accordance with applicable laws and regulations, including the U.S. Foreign Corrupt Practices Act of 1977 (the “FCPA”). The FCPA prohibits making, promising, or authorizing the making of a corrupt payment or providing anything
of value to a government official to induce that official to make any governmental act or decision to assist a company in obtaining or retaining business. The FCPA also prohibits a company or person from using another company or individual to engage
in any of the foregoing activities. As a U.S. company, Pfizer must comply with the FCPA and could be held liable as a result of acts committed anywhere in the world by a Pfizer consultant, agent, or representative, or even by a company acting on
behalf of Pfizer (“Business Associates”). Therefore, Pfizer requires all of its Business Associates to conduct their Pfizer-related work in accordance with these principles. 
 Definition of a Government Official 
 Under Pfizer’s policies, “government official”
is broadly interpreted and includes: (i) any elected or appointed government official (e.g., a member of a ministry of health); (ii) any employee or person acting for or on behalf of a government official, agency, or enterprise performing
a governmental function; (iii) any political party, officer, employee, or person acting for or on behalf of a political party or candidate for public office; or (iv) an employee or person acting for or on behalf of a public international
organization (e.g., the United Nations). “Government” is meant to include all levels and subdivisions of governments (i.e., local, regional, or national and administrative, legislative, or executive). Because this definition of
“government official” is so broad, it is likely that Business Associates will interact with a government official in the ordinary course of their business on behalf of Pfizer. For example, doctors employed by state-owned hospitals could be
considered “government officials” under Pfizer’s policies. 
 FCPA, Anti-Corruption and Anti-Bribery Principles 

Business Associates may not directly or indirectly make, promise, or authorize the making of a corrupt payment or provide anything of value to any
government official to induce that government official to make any governmental act or decision to help Pfizer obtain or retain business. Business Associates may never make a payment to or offer a government official any item or benefit, regardless
of value, as an improper inducement for such government official to 

  
 -4-

 CONFIDENTIAL TREATMENT REQUESTED 

 

 
approve, reimburse, prescribe, or purchase a Pfizer product, to influence the outcome of a clinical trial, or otherwise improperly to benefit Pfizer’s business activities. 

Understand and Follow Local Laws 
 Business
Associates need to understand whether local laws, regulations, or operating procedures (including requirements imposed by government entities such as state-owned hospitals or research institutions) impose any limits, restrictions, or disclosure
requirements on compensation, financial support, donations, or gifts that may be provided to government officials. Business Associates must take into account and comply with any applicable restrictions in conducting their Pfizer-related activities.
If a Business Associate is uncertain as to the meaning or applicability of any identified limits, restrictions, or disclosure requirements with respect to interactions with government officials, that Business Associate should consult with his or her
primary Pfizer contact before undertaking their activities. 

  
 -5-Employment  Agreement between SandRidge Energy, Inc. and Tom L. Ward

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 THIS AGREEMENT is made effective December 20,
2011 (the “Effective Date”), between SANDRIDGE ENERGY, INC., a Delaware corporation (the “Company”), and TOM L. WARD, an individual (the “Executive”). 

WITNESSETH: 
 WHEREAS, the Company and the Executive desire to set forth the terms of their agreements relating to the employment of the Executive by the Company; and 

NOW, THEREFORE, in consideration of the mutual promises herein contained, the Company and the Executive agree as follows: 

1. Employment. The Company hereby employs the Executive and the Executive hereby accepts such employment subject to the
terms and conditions contained in this Agreement. The Executive is engaged as an employee of the Company, and the Executive and the Company do not intend to create a joint venture, partnership or other relationship that might impose a fiduciary
obligation on the Executive or the Company in the performance of this Agreement, other than as an officer and director of the Company. 
 2. Executive’s Duties. The Executive is employed on a full-time basis. Throughout the term of this Agreement, the Executive will use his best efforts and due diligence to assist the
Company in the objective of achieving the most profitable operation of the Company and the Company’s affiliated entities consistent with developing and maintaining a quality business operation and complying with applicable law. Except as
provided in paragraph 3, the Executive shall devote his entire business skill, time and effort diligently to the affairs of the Company in accordance with the duties assigned to the Executive, and the Executive shall perform all such duties, and
otherwise conduct himself, in a manner reasonably calculated in good faith by him to promote the best interests of the Company. 
 2.1 Specific Duties. During the term of this Agreement, the Executive: (a) will serve as Chief Executive Officer of the Company; (b) will be nominated for election or appointed to
serve as a director of the Company and will be nominated as Chairman of the Company’s Board of Directors (the “Board”); (c) will be appointed as an officer or manager of such of the Company’s subsidiaries as the
Executive deems necessary to execute his duties fully; and (d) will be nominated for election or appointed to serve as a director of such of the Company’s subsidiaries as the Executive deems necessary to execute his duties fully. The
Executive will perform all of the services required to fully and faithfully execute the position to which the Executive is appointed and such other services as may be assigned by the Board in its sole discretion. In addition, the precise duties to
be performed by the Executive may be changed or curtailed in the sole discretion of the Board. 

 2.2 Rules and Regulations. From time to time, the Company may
issue policies and procedures applicable to employees and the Executive. The Executive agrees to comply with such policies and procedures, which may be supplemented, modified, changed or adopted without notice in the sole discretion of the Company
at any time. In the event of a conflict between such policies and procedures and this Agreement, this Agreement will control unless compliance with this Agreement will violate any law or regulation applicable to the Company or its affiliated
entities. 
 2.3 Stock Investment. During the term of this Agreement, the Executive agrees to hold
shares of the Company’s common stock having an aggregate Investment Value (as defined below) greater than 500% of the compensation paid to the Executive under paragraphs 4.1 and 4.2 of this Agreement during such calendar year. Any shares of
common stock acquired by the Executive prior to the date of this Agreement and still owned by the Executive during the term of this Agreement may be used to satisfy the requirement to own common stock. For purposes of this paragraph, the
“Investment Value” of each share of stock will be as follows: (a) for shares purchased after the date of this Agreement, the price paid by the Executive for such shares; (b) for shares acquired after the date of this
Agreement through the exercise of stock options, the grant of restricted stock, the conversion of preferred stock or other than through open market purchases, the fair market value of the common stock on the date the option was exercised, the
restrictions lapsed, the stock was issued, or the stock was acquired through the conversion of preferred stock, or the date such stock was otherwise acquired; and (c) for shares acquired on or prior to the date of this Agreement, the price paid
by the Executive. The Company has no obligation to sell or to purchase from the Executive any of the Company’s stock in connection with this paragraph 2.3 and has made no representations or warranties regarding the Company’s stock,
operations or financial condition. 
 3. Other Activities. The Executive shall not engage in any business activity
that, in the judgment of the Board, conflicts with the Executive’s duties hereunder, whether or not such activity is pursued for gain, profit or other pecuniary advantage. In addition, except for the activities permitted under paragraph 3.1 of
this Agreement or approved by the Board in writing, the Executive will not: (a) engage in activities that require such substantial services on the part of the Executive that the Executive is unable to perform the duties assigned to the
Executive in accordance with this Agreement; (b) serve as an officer or director of any publicly held entity; or (c) directly or indirectly invest in, participate in or acquire an interest in any oil and gas business, including, without
limitation, businesses (i) producing oil and gas, (ii) drilling, owning or operating oil and gas leases or wells, (iii) providing services or materials to the oil and gas industry, or (iv) marketing or refining oil or gas. The
limitations in this paragraph 3 will not prohibit an investment by the Executive in publicly traded securities or the maintenance of investment interests owned prior to the Effective Date. Notwithstanding the foregoing, the Executive is not
restricted from maintaining or making investments, or engaging in other businesses, enterprises or civic, charitable or public service functions if such activities, investments, businesses or enterprises do not result in a violation of

  
 2 

 
clauses (a) through (c) of this paragraph 3, and the Executive is permitted to participate in the activities set forth in paragraph 3.1, if such activities are undertaken in strict
compliance with this Agreement. 
 3.1 Royalty Interests and Gifts, Outside Oil and Gas Drilling, and
Certain Other Drilling Units. The foregoing restriction in clause (c) will not prohibit, in areas not being pursued by the Company: (a) the ownership of royalty interests where the Executive owns, previously owned or acquires the
surface of the land covered by the royalty interest and the ownership of the royalty interest is incidental to the ownership of the surface estate, or the ownership of royalty, overriding royalty or working interests that are received by gift or
inheritance subject to disclosure by the Executive to the Company in writing; (b) the Executive’s participation in outside operated oil and gas drilling; or (c) the Executive’s participation as a working interest owner in
properties operated by the Company where wells are proposed in drilling units with respect to which the surface or royalty ownership rights are held by TLW Holdings, L.L.C., an Oklahoma limited liability company, 192 Investments, L.L.C., an Oklahoma
limited liability company, and entities owned or controlled by the Executive. 
 4. Executive’s Compensation.
The Company agrees to compensate the Executive as follows: 
 4.1 Base Salary. Effective
December 26, 2011, the Executive will be paid a base salary (the “Base Salary”) at an annual rate of not less than 1,545,000 dollars, which will be paid to the Executive in accordance with the Company’s customary payroll
practices during the term of this Agreement. 
 4.2 Bonus. The Company may periodically pay bonus
compensation to the Executive in the absolute discretion of the Company and in such amounts and at such times as the Company may determine. The Executive recognizes and acknowledges that the award of bonus compensation is not guaranteed or promised
in any way. 
 4.3 Equity Compensation. The Executive may periodically be granted awards of
Company restricted stock or other forms of equity compensation under and subject to the Company’s equity compensation plans (the “Equity Compensation Plans”). The terms and provisions of the Equity Compensation Plans shall
govern the award of Company restricted stock or any other form of equity compensation. Except as provided in paragraph 7, the Executive recognizes and acknowledges that the award of equity compensation is not guaranteed or promised in any way.

 4.4 Benefits. The Company sponsors a number of employee benefit plans, programs and
arrangements for the benefit of its employees, including retirement, medical, life and disability benefits. The Executive shall have the opportunity to participate in such plans, programs and arrangements to the same extent as other
similarly-situated Company employees; however, any 

  
 3 

 
participation in Company employee benefit plans, programs or arrangements is subject to the terms and conditions of the particular plan, program or arrangement, including any eligibility
requirements, as they may exist from time to time. The Executive recognizes and acknowledges that the Company has the right to amend, modify or terminate its employee benefit plans, programs and arrangements at any time. 

4.5 Paid Time Off (“PTO”). The Executive shall be eligible for 35 days of PTO each continuous
year of employment during the term of this Agreement under the Company’s PTO policy. Except as otherwise provided in this Agreement, no additional compensation will be paid for failure to take PTO, and no PTO may be carried forward from one
twelve month period to another. 
 4.6 Membership Dues. The Company will reimburse the Executive
for: (a) the monthly dues necessary to maintain a full membership in a club in the Oklahoma City area selected by the Executive; and (b) the reasonable cost of any approved business entertainment at such club. All other costs, including,
without implied limitation, any initiation costs, initial membership costs, personal use and business entertainment unrelated to the Company will be the sole obligation of the Executive, and the Company will have no liability with respect to such
amounts. 
 4.7 Travel. For safety, security and efficiency, the Executive will be required to
utilize aircraft owned or leased by the Company for business and reasonable personal use in the Western Hemisphere (including North America, South America and the surrounding oceans) and will not be required to reimburse the Company for any cost
related to such use. In addition, the Executive’s immediate family members may use such Company aircraft for their personal use to the same extent. The Executive will not owe any additional amounts to the Company for guests or family members
traveling with the Executive, provided that the Executive will pay all personal income taxes accruing as a result of the personal use of the Company’s aircraft by the Executive, his family or guests or from other taxable travel expenses
incurred in connection with the Executive’s business travel. The amount of reasonable personal, family and guest aircraft use and travel expenses shall be subject to annual review by the compensation committee of the Board. 

4.8 Accounting Support. The Executive will be reasonably permitted to utilize the Company’s office
space, computer facilities and personnel to provide accounting services, records maintenance, tax advice and tax return preparation for the Executive’s (and his family’s) personal business investments and activities. The Executive agrees
to reimburse the Company an amount equal to 50% of the salaries and bonuses paid by the Company to employees primarily engaged in providing such support services to the Executive. Such amounts will be billed monthly on an estimated basis, reconciled
at least once annually and paid by the Executive on receipt of an invoice from the Company. The cost of secretarial or general administrative support for the Executive will not be required to be reimbursed in whole or part by the Executive. The
amount of reasonable use of the services available under this paragraph 4.8 shall be subject to annual review by the compensation committee of the Board 

  
 4 

 4.9 Gross-Up Payment. If it is determined that any payment or
distribution by the Company or the Company’s subsidiaries or affiliates to or for the benefit of the Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise) (a
“Payment”) is subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), or any interest or penalties related to such excise tax (collectively, the
“Excise Tax”), the Executive will be entitled to receive an additional payment (a “Gross-Up Payment”) from the Company. The Gross-Up Payment will equal the amount such that, after payment by the Executive of all
taxes (including the Excise Tax, income taxes, interest and penalties imposed with respect to such taxes) on the Gross-Up Payment, the Executive will retain an amount of the Gross-Up Payment equal to the Excise Tax imposed on the Payment.

 4.9.1 Determination. Subject to the provisions of paragraph 4.9.2, all determinations required
to be made under this paragraph 4.9 (including whether and when a Gross-Up Payment is required, the amount of such Gross-Up Payment and the assumptions to be utilized) will be made by a nationally recognized certified public accounting firm
designated by the Company (the “Accounting Firm”). The Accounting Firm will provide detailed supporting calculations both to the Company and the Executive within fifteen business days of the receipt of notice from the
Executive that there has been a Payment, or such earlier time as is reasonably requested by the Company. In the event that the Accounting Firm is serving as accountant or auditor for the individual, entity or group effecting a Change in Control (as
hereinafter defined), the Company will be entitled to appoint another nationally recognized accounting firm to make the determinations required under this paragraph (which accounting firm will then be referred to as the Accounting Firm hereunder).
All fees and expenses of the Accounting Firm will be paid by the Company. Any Gross-Up Payment required to be paid under this paragraph 4.9 will be paid by the Company to the Executive within five days of the receipt of the Accounting Firm’s
determination. Any determination by the Accounting Firm will be binding on the Company and the Executive. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting
Firm, the Gross-Up Payment made by the Company may be less than actually required to be made hereunder (an “Underpayment”). If the Company exhausts its remedies pursuant to paragraph 4.9.2 below and the Executive thereafter is
required to make a payment of any Excise Tax, the Accounting Firm will determine the amount of the Underpayment that has occurred and any such Underpayment will be promptly (and in no event later than the date determined under Treasury Regulation
section 1.409A-3(i)(1)(v)) paid by 

  
 5 

 
the Company to or for the benefit of the Executive. If it is established pursuant to a written opinion of independent counsel selected by the Company, that the Excise Tax is less than the amount
previously taken into account hereunder, the Executive shall repay the Company, within 30 days of the Executive’s receipt of notice of such opinion, the portion of the Gross-Up Payment attributable to such reduction (plus the portion of the
Gross-Up Payment attributable to the Excise Tax and federal, state, and local income tax imposed on the Gross-Up Payment being repaid by the Executive if such repayment results in a reduction in Excise Tax or a federal, state and local income tax
deduction) plus any interest received by the Executive on the amount of such repayment. 
 4.9.2
Contest of Claims. The Executive will notify the Company in writing of any claim by the Internal Revenue Service (the “IRS”) that, if successful, would require the payment by the Company of a Gross-Up Payment. Such
notification will be given as soon as practicable but no later than ten business days after the Executive is informed in writing of such claim and will apprise the Company of the nature of such claim and the date on which such claim is requested to
be paid. The Executive will not pay such claim prior to the expiration of the 30-day period following the date on which the Executive notifies the Company (or such shorter period ending on the date that any payment of taxes with respect to such
claim is due). If the Company notifies the Executive in writing prior to the expiration of such 30-day period that the Company desires to contest such claim, the Executive will: (a) provide to the Company any information reasonably requested by
the Company relating to such claim; (b) take such action in connection with contesting such claim as the Company reasonably requests in writing including, without limitation, accepting legal representation with respect to such claim by an
attorney reasonably selected by the Company; (c) cooperate with the Company in good faith as necessary to effectively contest such claim; and (d) permit the Company to participate in any proceedings relating to such claim. The Company will
bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with the contest of the claim and agrees to indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or
income tax (including interest and penalties with respect thereto) imposed as a result of such protest (including payment of costs and expenses as provided hereunder). Without limitation on the foregoing provisions, the Company will control all
proceedings related to such contested claim, may at its sole option pursue or forgo any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may at its sole option either direct
the Executive to pay the tax claimed and sue for a refund or contest the claim in any permissible manner. The Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in
one or more appellate courts, as the Company reasonably determines. If the Company 

  
 6 

 
directs the Executive to pay a claim and sue for a refund, the Company will be required to advance the amount of such payment to the Executive on an interest-free basis and agrees to indemnify
and hold the Executive harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance,
provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of the Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore,
the Company’s control of the contested claim will be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and the Executive will be entitled to settle or contest, as the case may be, any other issue raised by
the IRS or any other taxing authority. 
 4.9.3 Refunds. If, after the receipt by the Executive of
an amount advanced by the Company pursuant to paragraph 4.9.2, the Executive becomes entitled to receive any refund with respect to such claim the Executive will (subject to the Company’s complying with the requirements of paragraph 4.9.2)
promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by the Company pursuant to paragraph 4.9.2, a
determination is made that the Executive will not be entitled to any refund with respect to such claim and the Company does not notify the Executive in writing of its intent to contest such denial of refund prior to the expiration of 30 days after
such determination, then the advance will be forgiven and will not be required to be repaid and the amount of such advance will offset, to the extent thereof, the amount of Gross-Up Payment required to be paid. 

5. Term. The employment relationship evidenced by this Agreement is an “at will” employment relationship, and the
Company reserves the right to terminate the Executive at any time with or without Cause (as defined below). In the absence of termination as set forth in paragraph 6 below, this Agreement will extend for a term commencing on the Effective Date and
ending at the close of business on the day before the third anniversary of the Effective Date (the “Expiration Date”), as extended from time to time. Unless the Company provides 30 days prior written notice of non-extension to the
Executive, on or before the Expiration Date, the term and the Expiration Date will be automatically extended for one additional year so that the remaining term on this Agreement will not be less than two (2) and not more than three
(3) years. 
 6. Termination. This Agreement will continue in effect until the expiration of the term stated
in paragraph 5 of this Agreement unless earlier terminated pursuant to this paragraph 6. 

  
 7 

 6.1 Termination by Company. 

6.1.1 Termination without Cause. The Company may terminate the Executive’s employment without Cause at
any time by the service of written notice of termination to the Executive specifying an effective date of such termination not sooner than ten days after the date of such notice (the “Termination Date”). If the Executive is
terminated without Cause (other than a CC Termination under paragraph 6.3.2 of this Agreement or on account of the Executive’s incapacity or death under paragraphs 6.4 and 6.5 of this Agreement), the Executive will receive as termination
compensation: (a) his Base Salary as in effect on the Termination Date (without regard to any reductions constituting a breach of this Agreement) for a period of thirty-six months; (b) an amount equal to three times the “Average
Bonus” (defined as the average annual bonus compensation paid pursuant to paragraph 4.2 over the three years preceding the Termination Date), payable in a lump sum, in cash; and (c) any PTO accrued through his Termination Date, payable
in a lump sum, in cash. The payment of the amounts set forth in foregoing clauses (b) and (c) shall be made within 60 days of the Termination Date, and the payment set forth in foregoing clause (a) shall begin within 60 days of the
Termination Date and shall be made in installments consistent with the Company’s normal payroll practices, but if, on the Termination Date, the Executive is a “specified employee” as defined in regulations under Section 409A of
the Code and the termination compensation is “nonqualified deferred compensation” that is subject to Section 409A, such payments will be made or will begin, as applicable, on the first payroll payment date that is more than six months
following the Termination Date. The right to the termination compensation described above is subject to the Executive’s execution and nonrevocation of the Company’s Separation Agreement and General Release, substantially in the form
attached to this Agreement, which will operate as a release of all legally waivable claims against the Company and its affiliates, employees and directors. The termination payment is further conditioned upon the Executive’s compliance with all
of the provisions of this Agreement, including all post-employment obligations. 
 6.1.2 Termination
for Cause. The Company may terminate the employment of the Executive hereunder at any time for Cause (as hereinafter defined) (such a termination being referred to in this Agreement as a “Termination For Cause”) by giving the
Executive written notice of such termination, which shall take effect immediately upon the giving of such notice to the Executive. As used in this Agreement, “Cause” means (a) the Executive’s material breach or threatened
breach of this Agreement; (b) the Executive’s failure to substantially perform the Executive’s duties hereunder; (c) the misappropriation or fraudulent conduct by the Executive with respect to the assets or operations of the
Company or any of its subsidiaries or 

  
 8 

 
affiliated companies; (d) the Executive’s willful disregard of the instructions of the Board or the Executive’s material neglect of duties or failure to act, other than by reason
of disability or death; (e) the Executive’s personal misconduct which, in the judgment of the Company, could reasonably be expected to substantially injure the Company or its reputation; or (f) the conviction of the Executive for, or
a plea of guilty or no contest to, a felony or any crime involving fraud, theft, dishonesty, or moral turpitude. If the Executive’s employment is terminated for Cause, the Company will not have any obligation to provide any further payments or
benefits to the Executive after the effective date of such termination other than to the extent required by law. 
 6.2 Termination by Executive. The Executive may voluntarily terminate his employment by the service of written notice of such termination to the Company specifying an effective date of such
termination 90 days after the date of such notice, during which time the Executive may use remaining accrued PTO, or, at the Company’s option, be paid for such days. The Company may, in its sole discretion, elect to waive all or any part of the
90-day notice period with no further obligations being owed to the Executive by the Company. If the Executive terminates his employment, neither the Company nor the Executive will have any further obligations hereunder, except as provided in
paragraph 16. 
 6.3 Termination after Change in Control. If, during the term of this Agreement,
there is a “Change in Control” and within two years thereafter there is a CC Termination (as defined below), then the Executive will be entitled to a severance payment (in addition to any other rights and other amounts payable to
the Executive under paragraph 6.7 or under Company plans in which the Executive is a participant) payable in a lump sum in cash in an amount equal to: (a) three times the sum of the Executive’s Base Salary as in effect on the Termination
Date (or, if greater, the highest Base Salary in effect during the three year period ending on the Termination Date) and the Average Bonus; plus (b) any applicable Gross-Up Payment. Such amount shall be paid within 60 days following the CC
Termination. If the foregoing amount is not paid within 60 days after the CC Termination, the unpaid amount will bear interest at the per annum rate of twelve percent beginning on the 61st day after the CC Termination. However, if, on the date of
the CC Termination, the Executive is a “specified employee” as defined in regulations under Section 409A of the Code and the severance payment is “nonqualified deferred compensation” that is subject to Section 409A, the
payment will be made on the first payroll payment date that is more than six months following the date of the CC Termination. If a severance payment subject to Section 409A is not paid on the first payroll payment date that is more than six
months following the date of the CC Termination, the unpaid amount will bear interest at the per annum rate of twelve percent beginning on the day after the first payroll payment date that is more than six months following the date of the CC
Termination. The right to the termination compensation described above is subject to the Executive’s execution and nonrevocation of the Company’s Separation Agreement and General Release, substantially in the

  
 9 

 
form attached to this Agreement, which will operate as a release of all legally waivable claims against the Company and its affiliates, employees and directors. Such payment is further
conditioned upon the Executive’s compliance with all of the provisions of this Agreement, including all post-employment obligations. 
 6.3.1 Change in Control. For the purpose of this Agreement, a “Change in Control” shall mean that any one of the following applies: 

(a) The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”), other than the Executive or his affiliates (the “Exempt Persons”), of beneficial ownership (within the meaning of Rule
13d-3 promulgated under the Exchange Act) of 40% or more of either (i) the then-outstanding shares of the Company’s common stock (the “Outstanding Company Common Stock”) or (ii) the combined voting power of the
then-outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”). For purposes of this paragraph (a) the following acquisitions by a Person
will not constitute a Change in Control: (i) any acquisition directly from the Company; (ii) any acquisition by the Company; or (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the
Company or any entity controlled by the Company. 
 (b) The individuals who, as of the Effective Date,
constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board. Any individual becoming a director subsequent to the Effective Date whose election, or nomination for election by the
Company’s stockholders, is approved by a vote of at least a majority of the directors then comprising the Incumbent Board will be considered a member of the Incumbent Board as of the Effective Date, but any such individual whose initial
assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the
Incumbent Board will not be deemed a member of the Incumbent Board as of the Effective Date. 
 (c) The
consummation of a reorganization, merger, consolidation or sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), unless following such Business Combination: (i) the
individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more
than 60% of, respectively, the then-outstanding shares of common stock and the combined voting power of the then-outstanding voting securities 

  
 10 

 
entitled to vote generally in the election of directors, as the case may be, of the entity resulting from such Business Combination (including, without limitation, a corporation that as a result
of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions to one another as their ownership, immediately prior to such
Business Combination of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (ii) no Person (excluding any entity resulting from such Business Combination or any employee benefit plan (or related
trust) of the Company or such entity resulting from such Business Combination) other than one or more of the Exempt Persons beneficially owns, directly or indirectly, 40% or more of, respectively, the then-outstanding shares of common stock of the
entity resulting from such Business Combination or the combined voting power of the then-outstanding voting securities of such entity except to the extent that such ownership existed prior to the Business Combination and (iii) at least a
majority of the members of the Board of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business
Combination; or 
 (d) The approval by the stockholders of the Company of a complete liquidation or dissolution
of the Company. 
 6.3.2 CC Termination. The term “CC Termination” means any of
the following: (a) the Executive’s employment is terminated by the Company other than under paragraph 6.1.2, 6.4 or 6.5; (b) the Executive resigns as a result of a material diminution in the Executive’s authority, duties, or
responsibilities, a material reduction in the Executive’s then current Base Salary or a material reduction in the Executive’s then current benefits as provided in paragraph 4, a relocation of more than 50 miles from the Executive’s
then current place of employment being required by the Board, a material breach by the Company under this Agreement, or, unless the Executive’s services to the Company are terminated for Cause as described under paragraph 6.1.2, the failure of
the Executive to be elected, be reelected or serve as a director of the Company during the term of this Agreement, the removal of the Executive as a member of the Board, the failure to reelect or reappoint the Executive as Chairman of the Board and
Chief Executive Officer of the Company, or the assignment of the performance of duties incumbent on the foregoing offices to other persons without the prior written consent of the Executive; or (c) the Executive resigns in connection with a
Change in Control as a result of the Company’s failure to obtain the assumption of this Agreement, without limitation or reduction, by any successor to the Company or any parent corporation of the Company. 

  
 11 

 6.4 Incapacity of Executive. If the Executive suffers from a
physical or mental condition that qualifies the Executive for benefits under the Company’s Long Term Disability policy (or would qualify the Executive for benefits if the Executive was covered by the Long Term Disability policy), the
Executive’s employment may be terminated by the Company, in which event the Executive shall be deemed to have incurred a Termination without Cause, with the consequences and requirements described in paragraph 6.1.1 and subject to paragraph 16,
except that the Executive shall not be entitled to the payment described in paragraph 6.1.1(b). Notwithstanding the foregoing, the amount payable under this paragraph 6.4 shall be reduced by any benefits payable under any disability plans provided
by the Company under paragraph 4.4 of this Agreement. 
 6.5 Death of Executive. If the Executive
dies during the term of this Agreement, the Executive shall be deemed to have incurred a Termination without Cause, with the consequences and requirements described in paragraph 6.1.1 and subject to paragraph 16, except that (a) the Base Salary
payment described in paragraph 6.1.1(a) shall equal one times the Base Salary and shall be paid in a lump sum at the same time as the payment described in paragraph 6.1.1(b); (b) the payment described in paragraph 6.1.1(b) shall equal one times
the Average Bonus; (c) any payments shall be made to the Executive’s estate; (d) the Company’s Separation Agreement and General Release shall be signed on the Executive’s behalf by his executor; and (e) the six-month
delay that applies to payments to “specified employees” will not apply to any payments made under this Agreement following the Executive’s death. Notwithstanding the foregoing, the amount payable under this paragraph 6.5 shall be
reduced by any benefits payable under any life insurance plans provided by the Company under paragraph 4.4 of this Agreement. 
 6.6 Effect of Termination. Subject to paragraph 16, the termination of the Executive’s employment will terminate all obligations of the Executive to render services on behalf of the
Company. All keys, entry cards, credit cards, files, records, financial information, furniture, furnishings, computers, cellular phones, Blackberry devices, equipment, supplies and other items relating to the Company will remain the property of the
Company. The Executive will have the right to retain and remove all personal property and effects that are owned by the Executive and located in the offices of the Company. All such personal items will be removed from such offices no later than 14
days after the effective date of termination, and the Company is hereby authorized to discard any items remaining and to reassign the Executive’s office space after such date. Prior to the effective date of termination, the Executive will
cooperate with the Company to provide for the orderly separation of the Executive’s employment. 

6.7 Equity Compensation Provisions. Notwithstanding any provision to the contrary in any option agreement,
restricted stock agreement, plan or other agreement relating to equity based compensation, in the event of a termination under paragraph 6.1.1, 6.3, 6.4 or 6.5 of this Agreement: (a) all units, stock

  
 12 

 
options, incentive stock options, performance shares, stock appreciation rights and restricted stock granted and held by the Executive immediately prior to such termination will immediately
become 100% vested; and (b) the Executive’s right to exercise any previously unexercised options will not terminate until the latest date on which such option would expire but for the Executive’s termination of employment. To the
extent the Company is unable to provide for one or both of the foregoing rights, the Company will provide in lieu thereof a lump-sum cash payment equal to the difference between the total value of such units, stock options, incentive stock options,
performance shares, stock appreciation rights and shares of restricted stock (the “Equity Compensation Rights”) with the foregoing rights as of the date of the Executive’s termination of employment and the total value of the
Equity Compensation Rights without the foregoing rights as of the date of the Executive’s termination of employment. The foregoing amounts will be determined by the Board in good faith based on a valuation performed by an independent consultant
selected by the Board and the cash payment, if any, will be paid in a lump sum within 60 days of the Termination Date or, if required by Section 409A of the Code, on the first payroll payment that is more than six months following the
Termination Date. The right to the foregoing termination compensation under clauses (a) and (b) above is subject to the Executive’s (or, if applicable, the executor’s) execution and nonrevocation of the Company’s Separation
Agreement and General Release, substantially in the form attached to this Agreement, which will operate as a release of all legally waivable claims against the Company and its affiliates, employees and directors. Such payment is further conditioned
upon the Executive’s compliance with all of the provisions of this Agreement, including all post-employment obligations. 
 6.8 Sole Source of Severance Benefits. This paragraph 6 is intended to be the Executive’s sole source of severance benefits from the Company. If the Executive is or becomes eligible to receive
severance under another plan, program or policy with the Company or other agreement with the Company, the amount paid under paragraph 6 will be reduced by the severance amount paid under another plan, program or policy of the Company or other
agreement with the Company. 
 7. Long-Term Retention Incentive. Because the Company recognizes that the Executive’s
value to the Company and its shareholders is enhanced by a long-term retention incentive, the Executive shall be granted restricted shares of the Company’s stock throughout the term of this Agreement. These grants shall occur in January each
calendar year, as determined by the compensation committee of the Board. To determine the number of shares to be awarded during the calendar year, the Company shall divide the grant date fair market value of the award, which shall be no less than
16,250,000 dollars, by the closing price of a share of the Company’s stock on the grant date. These awards shall be made under the Company’s Equity Compensation Plans, which shall govern the vesting and other terms and provisions of the
awards, except that, if the Executive’s employment is terminated under circumstances that entitle him to benefits under paragraph 6.1.1 or 6.3, the Executive shall be entitled to receive cash or shares (in the Company’s discretion) equal
in value to the long-term retention incentive 

  
 13 

 
shares that the Executive would have received under this paragraph 7 on the three grants dates following his termination date had his employment not been terminated and this Agreement remained in
effect, provided that, if the Company elects to provide the termination payment in shares, the number of shares shall be determined using the closing price of a share of the Company’s stock on the Executive’s termination date. Any payment
required under the preceding sentence shall be made within 60 days of the Termination Date (without any reduction to reflect the early payment), but if, on the Termination Date, the Executive is a “specified employee” as defined in
regulations under Section 409A of the Code and the payment is “nonqualified deferred compensation” that is subject to Section 409A, such payment will be made on the first administratively feasible payment date that is more than
six months following the Termination Date. The right to the retention payment described above is subject to the Executive’s execution and nonrevocation of the Company’s Separation Agreement and General Release, substantially in the form
attached to this Agreement, which will operate as a release of all legally waivable claims against the Company and its affiliates, employees and directors. The retention payment is further conditioned upon the Executive’s compliance with all of
the provisions of this Agreement, including all post-employment obligations. 
 8. Confidentiality. The Executive
recognizes that the nature of the Executive’s services are such that the Executive will have access to information that constitutes trade secrets, is of a confidential nature, is of great value to the Company or is the foundation on which the
success of the Company is predicated. The Executive agrees not to disclose to any person other than the Company’s employees or the Company’s legal counsel or other parties authorized by the Company to receive confidential information
(“Confidential Information”) nor use for any purpose, other than the performance of this Agreement, any Confidential Information. Confidential Information includes data or material (regardless of form) that is: (a) a trade
secret; (b) provided, disclosed or delivered to the Executive by the Company, any officer, director, employee, agent, attorney, accountant, consultant, or other person or entity employed by the Company in any capacity, any customer, borrower or
business associate of the Company or any public authority having jurisdiction over the Company of any business activity conducted by the Company; or (c) produced, developed, obtained or prepared by or on behalf of the Executive or the Company
(whether or not such information was developed in the performance of this Agreement) with respect to the Company or any assets, oil and gas prospects, business activities, officers, directors, employees, borrowers or customers of the foregoing.
However, Confidential Information will not include any information, data or material that at the time of disclosure or use was generally available to the public other than by a breach of this Agreement, was available to the party to whom disclosed
on a non-confidential basis by disclosure or access provided by the Company or a third party, or was otherwise developed or obtained independently by the person to whom disclosed without a breach of this Agreement. On request by the Company, the
Company will be entitled to a copy of any Confidential Information in the possession of the Executive. The provisions of this paragraph 8 will survive the termination, expiration or cancellation of the Executive’s employment for a period of one
year after the date of termination. The Executive will deliver to the Company all originals and copies of the documents or materials containing Confidential Information by the 14th day following his termination. For purposes of paragraphs 8, 9, 10,
and 11 of this Agreement, the Company expressly includes any of the Company’s subsidiaries or affiliates. 

  
 14 

 9. Non-Competition. During the period of the Executive’s employment and
for a period ending one year after the Executive’s termination of employment for any reason other than pursuant to paragraph 6.1.1 or 6.3, the Executive will not acquire, attempt to acquire or aid another in the acquisition or attempted
acquisition of an interest in oil and gas assets, oil and gas production, oil and gas leases, minerals interests, oil and gas wells or other such oil and gas exploration, development or production activities within any spacing unit in which the
Company owns an oil and gas interest on the date of termination of employment of the Executive. The Executive will not circumvent or attempt to circumvent the foregoing agreement by any future arrangement or through the actions of a third party. The
foregoing will not prohibit the activities which are expressly permitted under paragraph 3 of this Agreement. 
 10.
Non-Solicitation. The Executive agrees that during the Non-Solicitation Period (as defined below), the Executive will not directly, either personally or by or through his agent, on behalf of himself or on behalf of any other individual,
association or entity, (i) use any of the Confidential Information for the purposes of calling on any established customer of the Company or soliciting or inducing any of such customers to acquire, or providing to any of such customers, any
product or service provided by the Company or any affiliate or subsidiary of the Company; (ii) solicit, influence or encourage any established customer of the Company to divert or direct such customer’s business to the Executive or any
person or entity by which or with which the Executive is employed, associated, affiliated or otherwise related; or (iii) solicit, divert or attempt to solicit or divert any person or entity who has been identified and contacted by the Company,
either directly or through such entity’s agent(s), with respect to a possible acquisition by, or transaction with, the Company. For the purposes hereof, the term “Non-Solicitation Period” shall mean a period of six months after
the Executive’s employment ceases for any reason. 
 11. Non-Interference. The Executive agrees that, except
with respect to the Executive’s administrative staff, during the Non-Interference Period (as defined below) he will not, directly or indirectly, either personally or by or through his agent, on behalf of himself or on behalf of any other
individual, association or entity, hire, solicit or seek to hire any employee of the Company or any affiliate or subsidiary of the Company, or any individual who was an employee of the Company or any affiliate or subsidiary of the Company during the
twelve-month period prior to the Termination Date, or in any other manner attempt, directly or indirectly, to persuade any such employee to discontinue his status of employment with the Company or any affiliate or subsidiary of the Company or to
become employed in a business or activities likely to be competitive with the business of the Company or any affiliate or subsidiary of the Company. For the purposes hereof, the term “Non-Interference Period” shall mean a period of
six months after the Executive’s employment ceases for any reason. 

  
 15 

 12. Severability. It is the desire and intent of the parties hereto that the
provisions of this Agreement be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, if any particular provision of this Agreement shall be
adjudicated by a court of competent jurisdiction to be invalid, prohibited or unenforceable for any reason, such provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining provisions of this Agreement or affecting
the validity or enforceability of such provision in any other jurisdiction. Notwithstanding the foregoing, if such provision could be more narrowly drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such
jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction. 

13. Remedies. The Executive acknowledges and understands that the provisions of this Agreement are of a special and unique
nature, the loss of which cannot be adequately compensated for in damages by an action at law, and that the breach or threatened breach of the provisions of this Agreement would cause the Company or any of its subsidiaries irreparable harm. In the
event of a breach or threatened breach by the Executive of the provisions of this Agreement, the Company or any of its subsidiaries or affiliates shall be entitled to an injunction restraining the Executive from such breach. In addition to the
foregoing and not in any way in limitation thereof, or in limitation of any right or remedy otherwise available, if the Executive violates any provision of paragraph 8, 9, 10 or 11 hereof, any compensation or severance payments then or thereafter
due from the Company to the Executive shall be terminated forthwith and the Company’s obligation to pay and the Executive’s right to receive such compensation as severance payments shall terminate and be of no further force or effect, in
each case without limiting or affecting the Executive’s obligations under such paragraphs 8, 9, 10 and 11 or the Company’s or its subsidiaries’ or affiliates’ other rights and remedies available at law or equity. Nothing
contained in this Agreement shall be construed as prohibiting the Company or any of its subsidiaries or affiliates from pursuing, or limiting the Company’s or any of its subsidiaries’ or affiliates’ ability to pursue, any other
remedies available for any breach or threatened breach of this Agreement by the Executive. 
 14. Proprietary
Matters. 
 14.1 The Executive acknowledges and agrees that the Company owns all right, title and
interest (including patent rights, copyrights, trade secret rights, trademark rights and all other intellectual and industrial property rights) relating to any and all inventions (whether or not patentable), works of authorship, design, know-how,
ideas and information made or conceived or reduced to practice, in whole or in part, by the Executive during the term of this Agreement which are useful in, or directly or indirectly related to, the business of the Company or any Confidential
Information (collectively, the “Proprietary Rights”). The Executive further acknowledges and agrees that all such Proprietary Rights are “works made for hire” of which the Company is the author. The Executive agrees to
promptly disclose and provide all Proprietary Rights to the Company; provided, in 

  
 16 

 
the event the Proprietary Rights shall not be deemed to constitute “works made for hire,” or in the event the Executive should, by operation of law or otherwise, be deemed to retain any
rights in the Proprietary Rights, the Executive agrees to assign to the Company, without further consideration, the Executive’s entire right, title and interest in and to each and every such Proprietary Right. 

14.2 The Executive hereby agrees to assist the Company in obtaining and enforcing United States and/or foreign
letters patent and copyright registrations covering the Proprietary Rights and further agrees that the Executive’s obligation to assist the Company shall continue beyond the termination of the Executive’s employment hereunder. If the
Company is unable because of the Executive’s mental or physical incapacity or for any other reason to secure the Executive’s signature to apply for or to pursue any application for any United States or foreign letters patent or copyright
registrations covering inventions assigned to the Company, then the Executive hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as the Executive’s agent and attorney-in-fact to act for and on the
Executive’s behalf to execute and file any such applications and to do all other lawfully permitted acts to further the prosecution and issuance of letters patent or copyright registrations thereon with the same legal force and effect as if
executed by the Executive. The Executive hereby waives and quitclaims to the Company any and all claims of any nature whatsoever which the Executive now or hereafter may have for infringement of any patent or copyright resulting from any such
application for letters patent or copyright registrations assigned hereunder to the Company. The Executive will further assist the Company in every lawful way to enforce any copyrights or patents obtained, including without limitation, testifying in
any suit or proceeding involving any of the copyrights or patents or executing any documents deemed necessary by the Company, all without further consideration except as contemplated by the immediately following sentence but at the expense of the
Company. If the Executive is called upon to render such assistance after termination of the Executive’s employment hereunder, then the Executive shall be entitled to a fair and reasonable per diem fee (which shall not be less than the
Executive’s equivalent daily Base Salary as in effect on the Termination Date) in addition to reimbursement of any expenses incurred at the request of the Company. 
 15. Governing Law and Venue. To the extent not preempted by federal law, and except as otherwise provided in this Agreement, the provisions of this Agreement shall be construed and enforced
in accordance with the laws of the State of Oklahoma, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this provision to the substantive law of another jurisdiction. Each party
hereby agrees that Oklahoma City, Oklahoma is the proper venue for any litigation seeking to enforce any provision of this Agreement, and each party hereby waives any right it otherwise might have to defend, oppose, or object to, on the basis of
jurisdiction, venue, or forum nonconveniens, a suit filed by the other party in any federal or state court in Oklahoma City, Oklahoma to enforce any provision of this Agreement. 

  
 17 

 16. Survival. In the event of termination of employment, neither the Company
nor the Executive will have any further obligations hereunder, except for any obligations that expressly survive termination of employment including paragraphs 6, 7, 8, 9, 10, 11, 12, 13, 14 and 15. 

17. Miscellaneous. The parties further agree as follows: 

17.1 Time. Time is of the essence of each provision of this Agreement. 

17.2 Notices. Any notice, payment, demand or communication required or permitted to be given by any
provision of this Agreement will be in writing and will be deemed to have been given when received by personal delivery, by facsimile, by overnight courier, or by certified mail, postage and charges prepaid, directed to the following address or to
such other or additional addresses as any party might designate by written notice to the other party: 
  

			
	 To the Company:
	  	 SandRidge Energy, Inc.
 123
Robert S. Kerr Ave.
 Oklahoma City, OK 73102
 Attn: Mary L. Whitson

		  	
	 To the Executive:
	  	 Tom L. Ward
 c/o SandRidge
Energy, Inc.
 123 Robert S. Kerr Ave.

Oklahoma City, OK 73102

  
  
  

17.3 Assignment. The Company may assign its rights and obligations under this Agreement to any subsidiary or
affiliate, and any entity to which this Agreement is assigned shall be treated as the Company for purposes of this Agreement. The Executive may not transfer or assign this Agreement or any of his rights or interests herein, in whole or in part, to
any other person or entity without the prior written consent of the Company. 
 17.4 Construction.
If any provision of this Agreement or the application thereof to any person or circumstances is determined, to any extent, to be invalid or unenforceable, the remainder of this Agreement, or the application of such provision to persons or
circumstances other than those as to which the same is held invalid or unenforceable, will not be affected thereby, and each term and provision of this Agreement will be valid and enforceable to the fullest extent permitted by law. 

17.5 Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto with
respect to the subject matter herein contained, and no modification hereof will be effective unless made by a supplemental written agreement executed by all of the parties hereto. 

17.6 Binding Effect and Third Party Beneficiary. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their 

  
 18 

 
respective affiliates, officers, employees, agents, successors and assigns (including, in the case of the Company or any of its subsidiaries or affiliated companies, the successor to the business
of the Company as a result of the transfer of all or substantially all of the assets or capital stock of the Company or any of its subsidiaries or affiliates). 
 17.7 Attorneys’ Fees. If any party institutes an action, proceeding or arbitration against any other party relating to the provisions of this Agreement or any default hereunder, the
Company will be responsible for paying the Company’s legal fees and expenses and the Company will be required to reimburse the Executive for reasonable expenses and legal fees incurred by the Executive in connection with the resolution of such
action or proceeding, including any costs of appeal. 
 17.8 Supercession. This Agreement is the
final, complete and exclusive expression of the agreement between the Company and the Executive and supersedes and replaces in all respects any prior oral or written employment agreements. On execution of this Agreement by the Company and the
Executive, the relationship between the Company and the Executive after the Effective Date of this Agreement will be governed by the terms of this Agreement and not by any other agreements, oral or otherwise. 

17.9 Non-Contravention. The Executive represents and warrants to the Company that the execution and
performance of this Agreement will not violate, constitute a default under, or otherwise give rights to any third party, pursuant to the terms of any Agreement to which the Executive is a party. 

17.10 Indemnity. THE EXECUTIVE AGREES TO INDEMNIFY AND HOLD HARMLESS THE COMPANY, ITS DIRECTORS, OFFICERS
AND EMPLOYEES AND AGENTS (THE “INDEMNIFIED PARTIES”) AGAINST ANY LOSS, CLAIM, DAMAGE, LIABILITY OR EXPENSE, AS INCURRED, (“LOSS”) TO WHICH THE INDEMNIFIED PARTIES MAY BECOME SUBJECT OR INCUR, INSOFAR AS SUCH LOSS
ARISES OUT OF OR IS BASED UPON ANY INACCURACY IN ANY REPRESENTATION OR WARRANTY GIVEN BY THE EXECUTIVE IN THIS AGREEMENT INCLUDING REPRESENTATIONS AND WARRANTIES MADE IN PARAGRAPH 17.9 AND TO REIMBURSE THE INDEMNIFIED PARTIES FOR ANY AND ALL
EXPENSES (INCLUDING THE FEES AND DISBURSEMENTS OF COUNSEL CHOSEN BY THE INDEMNIFIED PARTIES) AS SUCH EXPENSES ARE REASONABLY INCURRED BY THE INDEMNIFIED PARTIES IN CONNECTION WITH INVESTIGATING, DEFENDING, SETTLING, COMPROMISING OR PAYING ANY SUCH
LOSS. 
 17.11 Compliance with Section 409A of the Code. This Agreement is intended to comply
with Section 409A of the Code and shall be construed and interpreted in accordance with such intent. To the extent any benefit paid under this Agreement shall be subject to Section 409A of the Code, such benefit shall be paid in a manner
that will comply with Section 409A, including any IRS 

  
 19 

 
guidance. Any provision of this Agreement that would cause the payment of any benefit to fail to satisfy Section 409A of the Code shall have no force and effect until amended to comply with
Section 409A (which amendment may be retroactive to the extent permitted by the IRS guidance). 

17.12 Withholding of Taxes. The Company may withhold from any amounts payable under this Agreement all
taxes that the Company reasonably determines to be required to be withheld pursuant to any law, regulation, or ruling. However, it is the Executive’s obligation to pay all required taxes on any amounts paid under this Agreement, regardless of
the extent to which amounts are withheld. 
 17.13 Nonduplication of Benefits. No provision of
this Agreement shall require the Company to provide the Executive with any payment, benefit or grant that duplicates any payment, benefit or grant that the Executive is entitled to receive under another plan, program or policy with the Company or
other agreement with the Company. 
 IN WITNESS WHEREOF, the undersigned have executed this Agreement this
20th day of December, 2011, effective the date first above
written. 
 [SIGNATURES ON FOLLOWING PAGE] 

  
 20 

 
			
	SANDRIDGE ENERGY, INC.
		
	By:	 	 
		 	 Mary L. Whitson, Senior Vice President – Corporate and Human Resources

 
 (the “Company”)

  

			
	
		
	By:	 	 
		 	 Tom L. Ward, individually
  

(the “Executive”)

  
 21

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