Document:

Blueprint

 

Certain
identified information has been excluded from this exhibit because
it is both (i) not material and (ii) would be competitively harmful
if publicly disclosed; and is indicated with brackets where the
information has been omitted from the filed version of this
exhibit.

 

 

 

ASSET PURCHASE AND LICENSE AGREEMENT

 

 

 

by and between

 

 

 

 

BOEHRINGER INGELHEIM INTERNATIONAL GMBH

 

 

and

 

 

MABVAX THERAPEUTICS HOLDINGS, INC.

 

and

 

 

MABVAX THERAPEUTICS, INC.

 

 

 

 

 

 

 

 

 

BII Contract No: [***]

 

 

 

 

 

 

 

 

 

 

 

-1-

 

Table of Contents

Clause

	
 
 

 

	

	
 
 

 

	
 
 

 

	

	
 

Page

 

	
  1. 

	

DEFINITIONS

	
  3 

	
  2. 

	

SALE AND PURCHASE OF THE ACQUIRED ASSETS

	
  13 

	
  3. 

	

LICENSE GRANT

	
  14 

	
  4. 

	

[***] RIGHTS

	
  15 

	
  5. 

	

PAYMENT

	
  15 

	
  6. 

	

CLOSING

	
  19 

	
  7. 

	

REPRESENTATIONS AND WARRANTIES

	
  20 

	
  8. 

	

COVENANTS

	
  24 

	
  9. 

	

TREATMENT OF CONFIDENTIAL INFORMATION

	
  28 

	
  10. 

	

CONDITIONS TO MABVAX’S OBLIGATION TO CLOSE

	
  30 

	
  11. 

	

CONDITIONS TO BII’S OBLIGATION TO CLOSE

	
  30 

	
  12. 

	

INDEMNITY AND LIMITATIONS OF LIABILITY

	
  31 

	
  13. 

	

DISPUTE RESOLUTION

	
  33 

	
  14. 

	

TERM, EXPIRATION, AND TERMINATION

	
  34 

	
  15. 

	

MISCELLANEOUS

	
  38 

 

 

 

 

-2-

 

ASSET PURCHASE AND
LICENSE AGREEMENT

 

This Asset Purchase and License Agreement (the
“Agreement”) is made on July 4, 2018 (the
“Effective
Date”) under the terms
and conditions herein by and between Boehringer Ingelheim
International GmbH having a
principal place of business at Binger Strasse 173, 55216 Ingelheim, Germany, (hereinafter referred to as
“BII”), MabVax Therapeutics Holdings,
Inc., a corporation organized
and existing under the laws of Delaware, USA, having its principal
place of business at 11535 Sorrento Valley Road, Suite 400, San
Diego, California 92121, and MabVax Therapeutics
Inc., a corporation organized
and existing under the laws of Delaware, USA, having its principal
place of business at 11535 Sorrento Valley Road, Suite 400, San
Diego, California 92121 (MabVax Therapeutics Holdings, Inc., and
MabVax Therapeutics Inc. hereinafter referred to as
“MABVAX”).

 

RECITALS

 

WHEREAS, MABVAX owns or controls certain assets relating
to the [***] Program as further
defined herein; and

 

WHEREAS, BII is a pharmaceutical company engaged
in the research, development and commercialization of products
useful in the treatment of human and animal diseases and
conditions; and

 

WHEREAS, MABVAX wishes to sell to BII and BII wishes to
purchase from MABVAX the Acquired Assets as defined
herein.

 

NOW,
THEREFORE, the Parties agree as
follows:

 

1.

DEFINITIONS

 

1.1

Except as expressly
set forth herein, capitalized terms used in this Agreement, whether
used in the singular or plural, shall have the meanings set forth
below:

 

1.1.1

“Accounting Standards”
shall mean the maintenance of records and books of accounts in
accordance with International Financial Reporting Standards (IFRS)
or Generally Accepted Accounting Principles (GAAP) or those
accounting standards used in accordance with the German
Handelsgesetzbuch (HGB), which standards or principles (as
applicable) are currently used at the relevant time, and
consistently applied by the applicable Party.

 

1.1.2

“Acquired Assets” shall
mean all of MABVAX’s right, title and interest in and to all
of the assets owned or controlled by MABVAX relating solely and
exclusively to the [***] Program, consisting of (a) all [***]
Program Patents, (b) all [***] Program Know-How, (c) all [***]
Program Inventory, and (d) all Books and Records and Patent
Files.

 

1.1.3

“Action” shall mean any dispute, controversy,
claim, action, litigation, suit, cause of action, arbitration,
mediation, oppositions,
interferences or any proceeding
by or before any mediator,
arbitration panel or
Governmental Entity, or any investigation, subpoena, or demand
preliminary to any of the forgoing.

 

1.1.4

“Affiliate” means any corporation, firm,
limited liability company, partnership, or other entity that
directly or indirectly controls, or is controlled by, or is under
common control with a Party. For the purpose of this definition
only, “control” means ownership, directly or through
one or more Affiliates, of fifty percent (50%) (or such lesser
percentage which is the maximum allowed to be owned by a foreign
entity in a particular jurisdiction) or more of the shares of stock
entitled to vote

 

 

 

-3-

 

  

 

 

for the election of
directors in the case of a corporation, or fifty percent (50%) (or
such lesser percentage which is the maximum allowed to be owned by
a foreign entity in a particular jurisdiction) or more of the
equity interests in the case of any other type of legal entity, or
status as a general partner in any partnership, or any other
arrangement whereby a Party controls or has the right to control
the board of directors or equivalent governing body of a
corporation or other entity.

   

1.1.5

“Applicable Law” means all
applicable statutes, ordinances, regulations, rules, orders or
guidance of any Regulatory Authority or other Governmental Entity
or court of competent jurisdiction that may be in effect from time
to time.

 

1.1.6

“Assignment and
Assumption Agreement”
shall mean the general assignment and assumption agreement to be
executed by the Parties at
Closing, substantially in the form attached as Exhibit
A.

 

1.1.7

“Assumed Liabilities”
shall have the meaning as defined in Section 2.2.

 

1.1.8

“Authorization” shall mean any legally required consent,
authorization, approval, order, license, certificate or permit of
or from, or declaration or filing with, any Governmental Entity,
including without limitation, any legally required filing with any
Governmental Entity and the subsequent expiration of any legally
required waiting period under any antitrust
laws.

 

1.1.9

“Bill of
Sale” means the bill of
sale to be executed by the
Parties at Closing, substantially in the form of

Exhibit B.

 

1.1.10

“BII
Product” shall mean any
pharmaceutical product developed by or on behalf of BII using the
Acquired Assets.

 

1.1.11

“Books and Records” shall
mean all of MABVAX’s right, title, and interest in all books,
records and other documents used for and solely and exclusively related
to the [***] Program, including, but
not limited to, (a) records, experiments, etc. relating to
the discovery, affinity maturation and humanization of  the
parent antibody to the leads particularly relating to [***], (b)
the preparation of [***], (c) purified [***], (d) research and development files [***] at
the Closing Date. For clarity, Books and Records shall include
original lab notebooks covering the [***] Program.

 

1.1.12

“Business Day” shall mean
any day other than a Saturday, a Sunday, or a day on which
commercial banks in Frankfurt am Main, Germany, or California, USA
are authorized or required by law to remain closed.

 

1.1.13

“Calendar Quarter”
means a period of three calendar months ending on March 31, June
30, September 30 or December 31 in any Calendar
Year.

 

1.1.14

“Calendar Year”
means each successive period of twelve (12) months commencing on
January 1 and ending on December 31.

 

1.1.15

“Claim” shall mean any Action asserted by MABVAX
against BII, or by BII against MABVAX.

 

1.1.16

“Clinical Trial”
means any experiment in which a drug or therapy is administered or
dispensed to, or used involving, one or more human subjects
(including but not limited to a Phase I Clinical Trial, and a
Phase III Clinical Trial).

 

 

 

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1.1.17

“Closing” shall mean the closing of the transactions
contemplated by this Agreement in accordance with the terms and
upon the conditions set forth in this Agreement. The date upon
which Closing occurs shall be July 5, 2018 (the
“Closing
Date”).

 

1.1.18

“Combination Product”
means a pharmaceutical formulation containing as its active
ingredients [***]

 

1.1.19

“Commercially Reasonable
Efforts” shall mean
efforts and resources commonly used for a pharmaceutical product
which is at a similar stage in its research, development or
commercialization as the relevant BII Product [***] The level of
diligence stipulated in the immediately preceding sentence shall in
no event generate a higher level of diligence than BII would devote
to another pharmaceutical product owned by BII that is at a similar
stage in its research, development, commercialization and which is
of similar market potential as a BII Product at a similar stage of
its product life. Commercially Reasonable Efforts shall be
determined on a country-by-country basis for a particular BII
Product, [***]

 

1.1.20

“Confidential Information”
shall mean information and material, which is disclosed or provided
in oral, electronic, written or other tangible or intangible form
by a Party to another Party hereunder who receives it including but
not limited to [***] Program Patents and [***] Program Know-How.
Confidential Information shall not include information or material
that: (a) is already in the lawful possession of the receiving
Party at the time of disclosure by the disclosing Party, as
established by relevant documentary evidence; (b) is already in the
public domain as of the Effective Date or subsequently enters the
public domain through no faulting act or omission of the receiving
Party; (c) is lawfully received by the receiving Party on an
unrestricted basis from a Third Party having a lawful right to
disclose such information or material and is free of any obligation
of confidentiality to the disclosing Party; or (d) is similar in
nature to the purported confidential information or material but
which the receiving Party can demonstrate has been independently
created or invented, as established by relevant documentary
evidence.

 

1.1.21

“Co-Packaged Product”
means a single packaged product containing a [***] and one or more
other [***] components in a co-packaged form.

 

1.1.22

“Effective Date”
shall mean the date first written above.

 

1.1.23

“Encumbrance”
means any security interest, pledge, attachment, easement,
restriction, hypothecation, mortgage, lien (statutory or
otherwise), option, [***] (including any agreement to grant any of
the foregoing), or encumbrance.

 

1.1.24

“Excluded
Assets” shall mean MABVAX’s right title and interest to (a) all
cash and cash equivalents, (b) all trademarks, trade names and
logos, (c) all accounts and notes receivable, and all
claims, causes of action, defenses and rights of offset or
counterclaim (at any time or in any manner arising or existing,
whether choate or inchoate, known or unknown, contingent or
non-contingent) not included in the Acquired Assets.

 

1.1.25

“Excluded Liabilities”
shall have the meaning set forth in Section 2.2.

 

1.1.26

“Executive
Official”
shall mean a senior official of a
Party, identified by each Party in Schedule
1.1.261.1.26, which may be
updated at any time by providing written
notice.

 

1.1.27

“Field” shall mean any and all uses; including
diagnosis, treatment, palliation or prevention of a disease or
medical [***] condition [***].

 

 

 

-5-

 

  

 

 

1.1.28

“First Commercial Sale”
means, in any country within the Territory, the first sale by BII,
its Affiliates or Sublicensees in an arm’s length transaction
of the
first BII Product to a Third Party other than a Sublicensee
in such country in exchange for cash (or some equivalent to which
value can be assigned) after Regulatory Approval for such BII
Product has been granted in such country.

 

1.1.29

“Generic Competition”
means and shall be deemed to exist in a particular country in the
Territory with respect to a particular [***]in a given Calendar
Quarter if in such country during such Calendar Quarter one or more
Generic Products (other than a Generic Product sold by BII or its
Affiliates or by a Sublicensee under a license granted by BII or
its Affiliates) [***] and (b) the aggregate unit sales of such
Generic Product in such country, as measured by IQVIA (formerly IMS
Health) standard units sold based on data provided by IQVIA
(formerly IMS Health) or, if such data is not available, such other
reliable data source as reasonably agreed upon by MABVAX and BII.
If no data is commercially available, then the Parties shall agree
upon a methodology for estimating the percentage unit-based market
share of Generic Products in such country.

 

1.1.30

“Generic Product” means,
with respect to a particular [***] and a particular country, (a)
any pharmaceutical product (other than the [***], as applicable)
that contains the same active ingredient(s) in a comparable quality
and quantity as such [***], as applicable irrespective of its
pharmaceutical form and is approved under an Abbreviated New Drug
Application (ANDA) or under 505(b)(2) of the United States Federal
Food, Drug and Cosmetic Act or any similar abbreviated route of
approval in such country, or (b) any biologic medicinal product
(other than the [***], as applicable) that is a biosimilar of such
[***], and, if the [***] is a component of a Combination Product, a
biosimilar of the Combination Product, and is approved under a
biological product licensure application submitted by any person
under 42 U.S.C. § 262(k) or any similar abbreviated route of
approval in such country.

 

1.1.31

“Governmental Entity”
shall mean any arbitrator, court, judicial, legislative,
administrative, or regulatory agency, commission, department,
board, or bureau or body or other government authority or
instrumentality or any person or entity exercising executive,
legislative, judicial, regulatory, or administrative functions of
or pertaining to government, whether foreign or domestic, whether
federal, state, provincial, municipal, or
other.

 

1.1.32

“Improvement”
shall mean any modifications, enhancements or improvements to a
compound, product,
technology or Intellectual
Property.

 

1.1.33

“Initiation” means, with
respect to a Clinical Trial, the first dosing of the first human
subject in such Clinical Trial.

 

1.1.34

“Intellectual Property”
shall mean all rights in Inventions, Patents, priority
rights, copyrights, design rights, trade names, trademarks, service
marks, trade secrets, Know-How, database rights, domain names and
all other intellectual property rights (whether registered or
unregistered) and all applications and rights to apply for any of
them, anywhere in the world.

 

1.1.35

“Invention” shall mean any
process, method, utility, formulation, composition of matter,
article of manufacture, discovery or finding or improvement that is
conceived and/or reduced to practice, whether patentable or
not.

 

1.1.36

“Inventor” shall mean inventorship as determined by
applicable (e.g., United States, European, or German) patent
statutes, regulations, and supporting case law.

 

1.1.37

“Invoice” means an
original invoice sent by MabVax
Therapeutics Holdings, Inc. to BII with respect to any
payment due hereunder, containing the information and meeting the
requirements as

 

  

 

 

-6-

 

  

 

 

set forth in
Schedule 1.1.37, which shall
be modified in the event of a change in the applicable legal
requirements.

 

1.1.38

“Know-How”
shall mean all technical information,
know-how and data, in any tangible or intangible form and whether
or not patentable, [***]

 

1.1.39

“Knowledge”
means knowledge, information, belief or awareness, after reasonable
investigation or diligence, of any MABVAX individuals, officers,
directors and employees who participate in the management or
operation of the [***] Program, including without limitation [***]
as of the Closing Date.

 

1.1.40

 “Major Market” means each of the USA, Germany, the
United Kingdom, France, Italy, Spain and Japan.

 

1.1.41

“Material Adverse Effect”
means any event, occurrence, fact, condition or change that would
reasonably be expected to be materially adverse to or have a
material adverse effect on (a) the ability of MABVAX to carry out
its obligations under, and to consummate the transactions
contemplated by, this Agreement, or (b) the Assumed Liabilities or
the Acquired Assets, (c) BII’s ability to further exploit the
Acquired Assets, including without limitation the research, development, commercialization or
other exploitation of the Acquired Assets. For purposes of
clarity, none of the following events, changes or effects,
individually or in the aggregate, shall be considered a Material
Adverse Effect: (i) the effect of any change that generally affects
any industry in which BII or MABVAX operates; (ii) the effect of
any changes after the Effective Date in Applicable Law or
accounting rules not uniquely relating to BII or MABVAX; (iii) any
event, change or effect on the business, assets, or operations of
BII’s or MABVAX’s business primarily caused by, related
to or resulting from the announcement of the transactions
contemplated by this Agreement; (iv) the effect of any change in
the United States or foreign economies or securities or financial
markets; (v) the effect of any action taken by BII or BII’s
Affiliate with respect to the transactions contemplated by this
Agreement, other than actions taken pursuant to the provisions of
this Agreement; (vi) the effect of any Regulatory Approval of a
product that could compete with the BII Products; and (vii) the
indirect or consequential effect of any outbreak of hostilities,
acts of war, sabotage or terrorism or military actions or any
escalation or material worsening of any such hostilities, acts of
war, sabotage or terrorism or military actions existing as of the
date hereof.

 

1.1.42

“[***] Rights” shall have
the meaning as defined in Section 4.1.

 

1.1.43

“Net Sales” means, with respect to
a certain time period, the gross invoiced sales charged for BII
Product(s) sold by or for BII, its Affiliates and/or Sublicensees
in arm’s length transactions to Third Parties (but not
including sales relating to transactions between BII, its
Affiliates, and/or their respective Sublicensees) during such time
period, less the total of the following charges or expenses as
determined in accordance with the relevant Accounting Standards,
consistently applied across all products sold by BII, in each case
without duplication:

 

(a)

Sales returns and
allowances [***];

 

(b)

Credits or
allowances [***];

 

(c)

Rebates, chargeback
rebates, compulsory rebates, reimbursements or similar payments
[***];

 

(d)

Retroactive price
reductions applicable to sales of such BII Product;

 

 

 

-7-

 

  

 

 

(e)

Adjustments
actually made in accordance with consumer discount programs
[***];

 

(f)

The actual
acquisition cost of devices used for dispensing or administering
the Product that are shipped with the BII Product
[***];

 

(g)

Non-collectable
receivables related to BII Product;

 

(h)

Customs or excise
duties, sales tax, consumption tax, value added tax, and other
taxes (except income taxes);

 

(i)

Charges for
packing, freight, shipping and insurance (to the extent that BII,
its Affiliates and Sublicensees bear the cost for BII
Products)

 

BII,
its Affiliates and Sublicensees shall not incur discounts,
allowances, credits, rebates or other deductions on the BII Product
in order to advantage other products of BII, its Affiliates and
Sublicensees, such that the BII Product would bear a
disproportionate portion of such deductions. All defined deductions
in this section shall be consistent with BII’s audited
financial statements.

 

For the
sake of clarity and avoidance of doubt, sales by BII, its
Affiliates, or Sublicensees of a BII Product to Recognized Agent of
such BII Product in a given country shall be considered a sale to a
Third Party customer.

 

Any
disposal of BII Products for promotional or advertising purposes,
or use of BII Products in clinical or preclinical trials, given as
free samples, or distributed at no charge to patients unable to
purchase BII Product shall not be included in Net Sales. Donations
for charity reasons shall also not be part of Net
Sales.

 

Upon
any sale or other disposal of any BII Product that should be
included in Net Sales for any consideration other than an
exclusively monetary consideration on bona fide arm’s length
terms, then for purposes of calculating the Net Sales under this
Agreement, such BII Product shall be deemed to be sold exclusively
for money at the average sales price during the applicable
reporting period generally achieved for such BII Product in the
country in which such sale or other disposal occurred when such BII
Product is sold alone and not with other products.

 

In the
event no sales
price is available for the BII Product alone in such country during
the applicable reporting period, then such BII Product shall be
deemed to be sold exclusively for money at the arithmetic mean
sales price during the applicable reporting period generally
achieved for such BII Product in all countries in which such sale
or other disposal occurred when such BII Product is sold alone and
not with other products (provided, however, that if such BII
Product is not sold alone in any country, then BII shall calculate
in good faith a hypothetical market price for the BII Product,
allocating the same proportion of costs, overhead and profit as are
then allocated to all similar substances then being made and
marketed by BII and having an ascertainable market price; provided,
however, that if BII in good faith disputes BII’s
calculation, the Parties shall submit the matter promptly for
resolution in accordance with the dispute resolution procedure
outlined in Article 12).

 

In the
event a BII Product is sold as a Combination Product or a
Co-Packaged Product, Net Sales of such Combination Product or
Co-Packaged Product will be calculated as follows:

 

(i)

In the case of
Combination Product and/or Co-Packaged Product, if the BII Product
and the other products therein are sold separately, Net Sales of
the BII Product

 

 

-8-

 

  

 

 

portion of
Combination Products and/or the Co-Packaged Products will be
calculated by multiplying the total Net Sales of the Combination
Product and/or Co-Packaged Product by the fraction A/(A+B), where A
is the average gross selling price in the applicable country in the
Territory of the BII Product sold separately in the same
formulation and dosage, and B is the sum of the average gross
selling prices in the applicable country in the Territory of all
other therapeutically or prophylactically active ingredients or
products in the Combination Product [***].

 

(ii)

If the Combination
Product and/or the Co-Packaged Product and the BII Product are sold
separately, but the average gross selling price of the other
product(s) cannot be determined, Net Sales of the Combination
Product or the Co-Packaged Product shall be equal to [***]. the Net
Sales of the Combination Product or Co-Packaged Product multiplied
by the fraction A/C wherein A is the average gross selling price of
the BII Product and C is the average gross selling price of the
Combination Product or Co-Packaged Product.

 

(iii)

If the Combination
Product and/or the Co-Packaged Product and the other product(s) are
sold separately, but the average gross selling price of the BII
Product cannot be determined, Net Sales of the Combination Product
and/or Co-Packaged Product shall be equal to the Net Sales of the
Combination Product and/or Co-Packaged Product multiplied by the
following formula: one (1) minus B/C wherein B is the average gross
selling price of the other product(s) and C is the average gross
selling price of the Combination Product and/or Co-Packaged
Product.

 

(iv)

If the Combination
Product or Co-Packaged Product are sold but the average gross
selling price of neither the BII Product nor the other product(s)
can be determined, Net Sales of the Combination Product or
Co-Packaged Product shall be equal to Net Sales of the Combination
Product or Co-Packaged Product multiplied by a mutually agreed
percentage.

 

The
average gross selling price for such other product(s) contained in
the Combination Product or Co-Packaged Product shall be calculated
for each Calendar Year [***]. In the initial Calendar Year during
which a Combination Product or Co-Packaged Product is sold, a
forecasted average gross selling price shall be used for BII
Product, other product(s), or Combination Product and/or
Co-Packaged Product. Any over or underpayment due to a difference
between forecasted and actual average gross selling prices shall be
paid or credited in the second Earn-Out-Payment payment of the
following Calendar Year. In the following Calendar Year the average
gross selling price of the previous Calendar Year shall apply from
the second Earn-Out-Payment payment on.

 

1.1.44

“Oxford Agreement” shall
mean the loan and security agreement between Oxford Finance LLC, a
Delaware limited liability company with an office located at 133
North Fairfax Street, Alexandria, Virginia 22314, (“Oxford
Finance LLC”), certain other lenders, MabVax Therapeutics,
Inc., a Delaware corporation with offices located at 11533 Sorrento
Valley Road, Suite 400, San Diego, CA 92121, and MabVax
Therapeutics Holdings Inc., dated as of January 15, 2016, as
amended, regarding the provision of certain loans to MabVax
Therapeutics Inc. and MabVax Therapeutics Holdings
Inc.

 

1.1.45

 “Patent”
shall mean any and all (a) patents, (b) patent applications,
including all priority applications, provisional and
non-provisional applications, foreign patent application,
patent

 

  

 

-9-

 

  

 

 

cooperation treaty
(PCT) applications, substitutions, continuations,
continuations-in-part, divisions and renewals, and all patents
granted thereon, (c) all patents-of-addition, reissues,
re-examinations and extensions or restorations by existing or
future extension or restoration mechanisms, including supplementary
protection certificates or the equivalent thereof, (d)
inventor’s certificates, letters patent or (e) any other
substantially equivalent form of government-issued right
substantially similar to any of the foregoing described in
subsections (a)-(d) above.

 

1.1.46

“Patent
Files” shall mean any and
all files, books, records, patent application documents, inventor
assignment agreements and/or inventor reports, MABVAX claim(s) of
invention(s), and all other similar or like information that solely
and exclusively relate to the
[***] Program Patents.

 

1.1.47

“Phase I Clinical Trial”
means a human clinical trial conducted in any country that meets
the requirements of 21 CFR §312.21(a). By way of example and
not limitation, a Phase I Clinical Trial is usually performed as a
single or multiple dose Clinical Trial in healthy volunteers or
patients to assess specific administration, distribution,
metabolism, excretion (ADME), safety and tolerability,
bioavailability/bioequivalence or exploratory efficacy (in the
sense of demonstrating “proof-of-principle”) of an
investigational drug, and the emphasis in Phase I is usually on
safety and tolerability and it is typically used to plan patient
dosing in Phase II Clinical Trials. For clarity, a Phase I Clinical
Trial may also represent the initial phase of a combined Phase
Ib/II Clinical Trial.

 

1.1.48

“Phase III Clinical Trial”
means a human clinical trial conducted in any country that meets
the requirements of 21 CFR §312.21(c). By way of example and
not limitation, a Phase III Clinical Trial is a large scale
Clinical Trial (usually several hundreds of patients) performed
after preliminary evidence suggesting effectiveness of the drug has
been obtained in Phase II clinical studies, and it is intended to
gather the pivotal information about effectiveness and safety that
is needed to evaluate the overall benefit-risk relationship of the
drug and, along with other clinical trials, to provide an adequate
basis for Regulatory Approval. For clarity, a Phase III Clinical
Trial may also represent the second part of a combined Phase II/III
Clinical Trial.

 

1.1.49

“Recognized Agent” means
any Third Party who distributes products directly to customers
[***]

 

1.1.50

“Regulatory Approval”
means both: (a) the technical, medical and scientific licenses,
registrations, authorizations and approvals (including approvals of
NDAs and labelling approvals), and (b) any necessary pricing and/or
reimbursement authorizations and approvals, of any Regulatory
Authority necessary for the distribution, marketing, promotion,
offer for sale, use, import, export or sale of such pharmaceutical
product in such country.

 

1.1.51

“Regulatory Authority”
means any (a) governmental authority, notified bodies or other
organization in a country or region that regulates the manufacture
or sale of pharmaceutical or medicinal products or medical devices,
including the US Food and Drug Administration (or any succeeding
entity), Japan Pharmaceutical and Medical Device Agency (or any
succeeding entity) and the European Medicines Agency (or any
succeeding entity), and any successors thereto and (b) any other
relevant bodies authorized by Applicable Law to review or otherwise
exercise oversight over marketing authorization applications, other
regulatory filings or regulatory approvals.

 

1.1.52

“Sublicensees” means a
Third Party, [***] to whom BII (or its Affiliate or another of its
Sublicensees) grants a license or sublicense under any rights
transferred to BII under this Agreement to develop or commercialize
BII Products in the Territory. For the avoidance of doubt, if a
Third Party is solely granted the right to perform distribution
activities of BII Products in a country in the Territory, such
Third Party shall be considered a Third Party distributor in such
country.

 

 

 

-10-

 

  

 

 

1.1.53

“Start of
Development” or “SoD” shall mean with respect to a BII Product,
the formal decision [***].

 

1.1.54

“Taxes”
shall mean all forms of preliminary or finally imposed
taxation, domestic
and foreign, federal, state,
provincial, municipal, or other taxes, fees, levies, duties and
other assessments or charges of whatever kind (including without
limitation, sales, use, excise,
stamp, transfer, property, value added, recording, registration,
intangible, documentary, goods and services, real estate, payroll,
gains, gross receipts, withholding, and franchise taxes) together
with any interest, penalties, or additions payable in connection
with such taxes, fees, levies, duties and other assessments or
charges. 

 

1.1.55

“Tax
Law” shall mean any
applicable law, rule or regulation of any Government Entity, or
judgment, order, writ, decree, permit or license of any Government
Entity of competent jurisdiction that, in each case, relates to
taxes or other similar assessments or charges of any kind
whatsoever (including, but not limited to, withholding on amounts
paid to any person).

 

1.1.56

“Term”
shall mean the period of time beginning on the Effective Date and
continuing until the expiration or termination of this Agreement,
whichever occurs first in time.

 

1.1.57

“Territory”
shall mean all of the countries in the world, and their territories
and possessions.

 

1.1.58

“Third
Party” means a person or entity other than (a) BII or any of
its Affiliates, or (b) MABVAX or any of its
Affiliates.

 

1.1.59

“[***]
Program” shall mean MABVAX’s research and development
program to identify and characterize antibodies that bind the [***]
antigen [***]

 

1.1.60

“[***]
Program Antibodies” shall mean all antibodies generated in
the course of the [***] Program at MABVAX, [***].

 

1.1.61

“[***]
Program Inventory” shall mean all inventory of product,
[***], wherever located, owned or controlled by MABVAX, including
without limitation all [***] Program Antibodies.

 

1.1.62

“[***]
Program Know-How” shall mean all Know-How, owned by MABVAX
that is solely and exclusively related to the [***] Program, [***]
owned by MABVAX and that solely relates to the [***]
Program.

 

1.1.63

“[***]
Program Patents” shall mean all Patents that are set forth in Schedule 1.1.63,
including all reissues, reexaminations, divisions, renewals,
extensions or supplementary protection certificates, provisionals,
continuations and continuations-in-part thereof (only to the extent
that such continuations-in-part claim inventions disclosed as
required by 35 U.S.C. § 112, in the parent application
thereof) and the like, and all patents issuing on the foregoing
patent applications, in all jurisdictions.

 

1.1.64

“[***]
Program Patent Assignment” shall mean the general assignment
of the [***] Program Patents from MABVAX to BII, which will be
substantially in the form attached as Exhibit C.

 

1.1.65

“Transaction
Documents” shall mean collectively: (a) this Agreement; (b)
the [***] Program Patent Assignment; (c) the Bill of Sale; and (iv)
the Assignment and Assumption Agreement. The phrase “the
consummation of the transactions contemplated by this
Agreement” or such similar phrases includes the execution,
delivery, and performance of the Transaction
Documents.

 

 

 

-11-

 

  

 

 

1.1.66

“Valid
Claim” means with respect to a given jurisdiction, (a) a
claim within the a Patents, once issued, that has not expired or
been abandoned or been revoked, been declared invalid or
unenforceable by a court of competent jurisdiction in a final and
non-appealable judgment (or judgment from which no appeal was taken
within the allowable time period) or (b) a claim within a patent
application which application has not been pending for more than
[***] years from the date of its priority filing date and which
claim has not been irretrievably revoked, irretrievably cancelled,
irretrievably withdrawn, held invalid or abandoned by a patent
office, court or other governmental agency of competent
jurisdiction in a final and non-appealable judgment [***] or
finally determined to be unallowable in a decision from which an
appeal cannot or can no longer be taken. For clarity, a claim of an
issued patent that ceased to be a Valid Claim before it issued
because it had been pending too long, but subsequently issues and
is otherwise described by clause (a), shall be considered to be a
Valid Claim once it issues. The same principle shall apply in
similar circumstances such as if, for example (but without
limitation), a final rejection of a claim is overcome.

 

1.1.67

In
this Agreement a reference to:

 

()

a document in the
“agreed form” is a reference to a document in a form
approved and for the purposes of identification signed by or on
behalf of each Party;

 

(a)

a statutory provision includes a reference to the statutory
provision as modified or re-enacted or both from time to time
before the date of this Agreement and any subordinate legislation
made under the statutory provision before the date of this
Agreement;

 

(b)

a person includes a reference to a body corporate body,
association or partnership;

 

(c)

a person includes a reference to that person's
legal personal representatives and successors;

 

(d)

a clause,
paragraph or schedule, unless the context otherwise requires, is a
reference to a clause or paragraph of or schedule to this
Agreement;

 

(e)

MABVAX and BII may be referred to herein as a
“Party” if singular, and as “Parties” if
plural; and

 

(f)

The
headings in this Agreement do not affect its
interpretation.

 

2.

SALE
AND PURCHASE OF THE ACQUIRED ASSETS

 

2.1

Sale and Purchase. In
accordance with the terms and upon the conditions of this
Agreement, at the Closing, MABVAX will sell, convey, assign, and
transfer to BII, MABVAX’s entire right, title, and interest
in and to the Acquired Assets in the Territory free and clear of
Encumbrances, in exchange for payment by BII of the consideration
as described in Sections 5.1 – 5.4, and BII will purchase,
acquire, accept, and assume the Acquired Assets in the Territory.
For the avoidance of doubt, upon transfer of title to BII or its
designee, and subject to the terms and conditions of this
Agreement, BII shall have the sole and exclusive proprietary right,
as against MABVAX, to fully exploit the Acquired Assets worldwide
without restriction, and no rights in the Acquired Assets shall
remain with MABVAX. For the avoidance of doubt,(i) to the extent
books, records and other documents that otherwise correspond to the
definition of Books and Record in accordance with Section 1.1.11,
but do not relate solely and exclusively to the [***] Program but
also to other programs, MABVAX will provide to BII redacted copies
of such books, records and other

 

 

 

-12-

 

  

 

 

documents, and (ii) to the
extent patent files that otherwise correspond to the definition of
Patent Files in accordance with Section 1.1.44, but do not relate solely and
exclusively to the [***] Program but also to other program paying,
performing and discharging when due, and BII shall not assume or
have any responsibility for (a) all liabilities relating to or
arising out of the Excluded Assets, (b) all accounts payable, taxes
and other accrued expenses and/or obligations related to the [***]
Program arising and/or related to any act, omission, fact, and/or
matter prior to the Closing Date, (c) all obligations under the
[***] Agreement and the [***] Agreement, and (d) MABVAX’s
obligations under this Agreement (the “Excluded Liabilities”)s,
MABVAX will provide to BII redacted copies of such patent
files.

 

2.2

Assumption and Exclusion of
Liabilities. Upon the terms and subject to the conditions
set forth in this Agreement, BII shall assume, and agree to pay,
perform and discharge when due, any and all liabilities arising
from BII’s ownership, use or operation of the Acquired Assets
or the exploitation of the BII Products after the Closing Date (the
“Assumed
Liabilities”). MABVAX shall retain, and shall solely
be responsible for paying, performing and discharging when due, and
BII shall not assume or have any responsibility for (a) all
liabilities relating to or arising out of the Excluded Assets, (b)
all accounts payable, taxes and other accrued expenses and/or
obligations related to the [***] Program arising and/or related to
any act, omission, fact, and/or matter prior to the Closing Date,
(c) all obligations under the [***] Agreement and the Oxford
Agreement, and (d) MABVAX’s obligations under this Agreement
(the “Excluded
Liabilities”).

 

2.3

MABVAX Data Room. Within ten
(10) days of the Effective Date, MABVAX shall make available to BII
via the MABVAX Data Room (to the extent not already made available
to BII in the MABVAX Data Room as of the Effective Date) copies of
all: (a) [***]patent filing documents including employment
agreements providing IP assignment, assignment documents for all
relevant patent applications, lab notebook records, unpublished
patent applications, unpublished patent wrappers/prosecution
histories, agreements relating to the subject matter, publications
and public disclosures, and patents and legal related matters, and
(b) [***]program files, including without limitation publications,
manuscripts, and abstracts, meeting minutes, research plans and
program summaries, reports and presentations, the [***] Agreement,
and inventory lists, in each case (a) and (b), existing as of the
Effective Date. In addition, MABVAX shall provide an external
independent Third Party designated by BII and approved by MABVAX
(such approval not to be unreasonably withheld, delayed or
conditioned and provided that such external independent Third Party
shall be subject to customary obligations to keep MABVAX’s
Confidential Information received by it confidential) with one
complete version of the MABVAX Data Room content as of the
Effective Date, using an appropriate storage media (e.g., CD or
USB-stick), solely for the purpose to serve as evidence of the
information provided by MABVAX to BII prior to the Effective
Date.

 

3.

LICENSE
GRANT

 

3.1

[***] Program Related
Know-How and IP. MABVAX hereby grants BII [***]the Know-How
owned or otherwise controlled by MABVAX that is not [***] Program
Know-How, but is otherwise disclosed,
provided and/or made available in writing, visually, orally or in
electronic medium to BII and/or any of its Affiliates, whether
prior or after the Effective Date in connection with this
Agreement, and/or that is necessary to exploit the Acquired Assets
within the Field in the Territory, including but not limited to
further research, develop, make, have made, use, sell, offer for
sale, import, or otherwise commercialize the Acquired Assets and/or
any BII Product, as applicable, in the Field in the Territory (the
“[***] Program
License”). For clarity,
the Parties agree

 

 

 

-13-

 

  

 

that the [***] Program License under this
Section 3.1 shall be [***] as far as the scope of the [***]
Program is concerned.

 

3.2

No Implied Right or License.
Except as explicitly provided herein, this Agreement does not
convey any property rights in or imply any license to the use of
any Intellectual Property and/or assets from MABVAX to
BII.

 

4.

[***] RIGHTS

 

4.1

[***] Agreement. Pursuant to the terms of the research and license
agreement between [***] and MabVax Therapeutics, Inc., dated [***],
as amended (the “[***]
Agreement”), [***], inter
alia, licensed certain of its biologic materials, intellectual
property and know-how relating to the [***] Program
(“[***]
Rights”) to MabVax
Therapeutics, Inc. as further described
therein.

 

4.2

S[***] Agreement. Prior to the
Closing, the Parties and [***] will execute an agreement (a)
confirming that during the term of the [***] Agreement, MABVAX will
continue to be solely responsible for all of its obligations
therein, including but not limited to any and all payment
obligations due by MABVAX to [***] and (b)
whereby BII and [***] will agree that [***] will not assert against
BII, its Affiliates, Sublicensees or its or their distributors or
independent contractors, any claims for infringement of such [***]
Rights based on the research, development, manufacture, use, sale,
offer for sale or license, or import of the Acquired Assets, and/or
any BII Product in the Field in the Territory (the
“S{***]
Agreement”).

 

5.

PAYMENT

 

5.1

Upfront Purchase Price. The
up-front purchase price for the Acquired Assets shall be
US dollars Four Million (US$ 4,000,000) (“Upfront Purchase Price”).
Subject to Section 14.4.2 (i)(d), the
Upfront Purchase Price shall be non-refundable and
non-creditable.

 

5.2

Payment of Purchase
Price. The Upfront Purchase
Price shall be due and payable upon Closing by BII to MabVax Therapeutics
Holdings Inc. BII will make such payment due hereunder by wire
transfer of immediately available funds within [***] Business Days
of the Closing Date and after
the receipt by BII of an original Invoice and of a duly signed
original of this Agreement.

 

5.3

Milestone Payments.
As further consideration for the sale
and transfer of the Acquired Assets, BII shall pay to MabVax
Therapeutics Holdings Inc. the following one-time, milestone
payments (each a “Milestone
Payment”) set forth below
upon the first occurrence of the applicable milestone event with
respect to the first BII Product, provided that each such Milestone
Payment shall be due only once. Each Milestone Payment shall be due
and payable to MabVax Therapeutics Holdings Inc. within [***]
Business Days after receipt of an Invoice from MabVax Therapeutics
Holdings Inc., which shall be provided to BII as soon as
practicable after BII has notified MabVax Therapeutics Holdings
Inc. that the particular milestone event has been achieved (whether
achieved by or on behalf of BII or any of its Affiliates or
Sublicensees). BII will notify MabVax Therapeutics Holdings Inc.
within [***] Business Days after it becomes aware of the
achievement of any milestone event for which a payment to MabVax
Therapeutics Holdings Inc. is required under this Section
5.3. It is hereby understood
that each Milestone Payment shall be paid
[***].

 

 

 

 

-14-

 

  

 

 

	

Milestone Event

 

	

Milestone
Payment

 

	

Start
of Development of the first BII Product

	

[***]

 

	

Initiation
of first Phase I Clinical Trial [***]

	

[***]

 

	

Initiation
of first Phase III Clinical Trial [***]

	

[***]

 

	

First
Commercial Sale [***]in a Major Market

	

[***]

 

The Milestone Payment for the First Commercial
Sale [***] in a Major Market shall be payable [***], for the first
Calendar Year in which the First Commercial Sale milestone
event is achieved [***].
[***].

 

The First Commercial Sale Milestone Payment shall
be paid together with the Earn-Out-Payment of the Calendar Quarter
during which the First Commercial Sale milestone event
has been achieved.

 

5.4

Earn-Out-Payment. 

 

5.4.1

BII shall pay
to MabVax Therapeutics Holdings Inc. an earn-out-payment in the
amount of [***]% of the annual
worldwide Net Sales in the Territory of each BII Product in
a Calendar Year (the “Earn-Out-Payment”).

 

5.4.2

Earn-Out
Period. BII’s
obligation to pay to MabVax Therapeutics Holdings Inc. the Earn-Out
Payment in the Territory shall begin, on a country-by-country and
BII Product-by-BII Product basis, with the First Commercial Sale of
such BII Product in such country and shall expire, the later of (a)
the expiration of the last to expire Valid Claim of a [***] Program
Patent covering the
composition of matter of such a BII Product or (b) [***]
years from the date of First Commercial Sale of such BII Product in such
country (the “Earn-Out
Period”).

 

5.4.3

No Multiple
Earn-Out-Payments. No multiple
Earn-Out Payments shall be payable because a BII Product, its
manufacture, use or sale is or shall be covered by more than one
Valid Claim included in the [***] Program Patents or more than one
patent under the [***] Program Patents.

 

5.4.4

Earn-Our-Payment
Adjustments. 

 

(a)

Non-Patented Product. During
the applicable Earn-Out Period, if a BII Product sold in a country
in the Territory is not covered by a Valid Claim in such country at
the time of its sale, then the Earn-Out Payment for such BII
Product in such country shall be reduced by [***] percent ([***]%)
as determined pursuant to Section 5.4.1.

 

(b)

Third Party
Offset. During the Earn-Out
Period, if BII is required to (i) obtain a license grant from one
or more Third Parties under such Third Party’s patent rights
or other intellectual property in the absence of which a BII
Product could not legally be developed, have developed, made, have
made, used, offered for sale, sold or imported in a country in the
Territory and (ii) pay a royalty payment or other consideration
under such license grant 

 

 

-15-

 

  

 

 

(including in connection with the settlement of a
patent infringement claim), then the Earn-Out Payment for
such BII Product in such country as
determined pursuant to Section 5.4.1 shall be reduced by
[***]percent ([***]%) of the amount
actually paid to the Third Party in such country in the same
Calendar Year.

(c)

Generic
Competition. The Earn-Out
Payment otherwise due under Section 5.4.1 shall be reduced, on a country-by-country
and BII Product-by-BII Product basis,
in the event of Generic Competition in a particular country of the
Territory to [***]per cent ([***]%) in any Calendar Quarter
in which there is Generic Competition for so long as the Generic Competition
exists.

 

(d)

Limits on
Deductions. Notwithstanding
anything to the contrary herein, in no event shall any deduction,
reduction or set off, individually or in the aggregate, as a result
of Sections 5.4.4(a), (b) and/or (c)
(each, a “Deduction”
and collectively, “Deductions”)
exceed [***]percent ([***]%) of the Earn-Out Payment determined
pursuant to Section 5.4.1
on a country-by-country and BII
Product-by-BII Product basis. On a
country-by-country and BII Product-by-BII Product
basis, BII shall be entitled to set
off any accrued but un-deducted Deductions from the previous
Calendar Years in the subsequent Calendar
Years.

 

5.4.5

Reports and Payments. Within
[***] days following the end of each Calendar Quarter, BII shall
submit to MabVax Therapeutics
Holdings, Inc. a written report of Net Sales of BII Products
sold by or on behalf of BII, its Affiliates and Sublicensees during
a Calendar Quarter in each country of the Territory in sufficient
detail to permit confirmation of the accuracy of the Earn-Out
Payment paid, and BII shall pay to MabVax Therapeutics Holdings, Inc., within
[***] days thereafter, all Earn-Out Payment payable by BII. If
applicable, by separate notice, BII will provide a confirmation
including gross sales and Net Sales of any and all BII Product on a
country-by-country basis (including calculation of Net Sales of
Combination Products or Co-Packaged Products ) in the currency for
which such BII Product was sold, and, if the currency of sale was
not US dollars, also in US dollars; an accounting of deductions
taken in the calculation of Net Sales; details of any royalty
credits taken on a Third Party licence-by-Third Party licence
basis; on a country-by-country basis, any reduction, including the
relevant market share data on the basis of which such reduction was
taken and the source of such data; the applicable exchange rate to
convert from each country’s currency to US dollars. BII shall
use the monthly average exchange rates used by BII throughout its
regular accounting system for the Calendar Quarter in which such
BII Products are sold.

 

5.4.6

Financial Audit. BII shall keep
(and shall cause its Affiliates and Sub-Licensees to keep) complete
and accurate records pertaining to the sale or other disposition of
BII Products in sufficient detail to permit BII to confirm the
accuracy of all Earn-Out Payment payments reported, for at least
[***] full Calendar Years following the end of the Calendar Year to
which they pertain. MabVax Therapeutics Holdings Inc. shall have
the right to cause an independent, certified public accountant
reasonably acceptable to BII (the “Auditor”) to audit
such records solely to confirm Net Sales, Milestone Payments and
Earn-Out Payments for a period
covering not more than the preceding [***] full Calendar Years,
provided that such audits may not be performed more than [***] a
year and only [***] per audited period. Such audits may be
exercised during normal business hours upon reasonable prior
written notice to BII. The Auditor will execute a reasonable
written confidentiality agreement with BII and will disclose to
MabVax Therapeutics Holdings Inc. only such information as is
reasonably necessary to provide MabVax Therapeutics Holdings Inc.
with information regarding any actual or potential discrepancies
between amounts reported and actually paid and amounts payable
under this Agreement. The report of the Auditor will include the
methodology and calculations used to determine the results, will be
delivered to BII and MabVax Therapeutics Holdings Inc. at the same
time, and will be final [***] Business Days after delivery to both
Parties,

 

 

 

-16-

 

  

 

 

it being understood
that BII will have the right during such [***] Business Day period
to discuss the report with the Auditor. In the event the Parties
are not in alignment after such [***] Business Day period, either
Party may refer this matter for resolution in accordance with the
defined dispute resolution procedure set forth in Article 13 within
[***] Business Days. MabVax Therapeutics Holdings Inc. shall bear
the full cost of such audit unless the report of the Auditor
discloses an underpayment by BII of more than [***] percent
([***]%) of the amount due for any Calendar Year, in which case BII
shall bear the full cost of such audit. BII shall pay the amount of
any underpayment disclosed in the undisputed Auditor’s
report, together with interest thereon to MabVax Therapeutics
Holdings Inc. within [***] days after delivery to the Parties of
the final Auditor’s report. If such final Auditor’s
report discloses an overpayment by BII of the amounts payable
hereunder, BII shall have the right to offset the overpayment
against the actual Earn-Out
Payment following the audit in question. Upon the expiration
of [***] full Calendar Years following the end of any Calendar
Year, the calculation of Earn-Out
Payment payments with respect to such Calendar Year shall be
binding and BII shall be released from any liability and obligation
with respect to payments for such year except in the case of fraud
or willful deceit.

 

5.4.7

Currency Conversion. All
Earn-Out Payments shall be payable in full in US dollars. Any sales
of BII Products incurred in a currency other than US dollars shall
be converted to the US dollars equivalent using a rate of exchange
that corresponds to the rate used by BII or any of its Affiliates
or Sublicensees recording such receipt or expenditure, for the
respective reporting period, related to recording such Net Sales or
expenses in its books and records that are maintained in accordance
with the applicable Accounting Standards consistently used by BII,
its Affiliates or their respective Sublicensees. If such party is
not required to perform such currency conversion for its respective
Accounting Standards reporting with respect to the applicable
period, then for such period such party shall convert its amounts
received and expenses incurred into US dollars using exchange rates
published by the European Central Bank (ECB), Frankfurt, Germany.
For exchange rates not published by ECB an alternative source will
be agreed between the Parties. Any Earn-Out-Payment shall be
calculated based upon the US dollars equivalent calculated in
accordance with the foregoing.

 

5.5

Payment Terms. BII shall pay
all amounts payable under this Agreement as stated in the
respective sections, upon delivery to BII of an Invoice for such
amounts by MabVax Therapeutics
Holdings Inc.. All payments to be made by BII to
MabVax Therapeutics Holdings
Inc. under this Agreement shall be made in US dollars and may be paid by bank wire
transfer in immediately available funds to such bank account as may
be designated by MabVax Therapeutics
Holdings Inc. from time to time.

 

5.6

Taxes in general. Subject to
Section 5.7, all payments under or in connection with this
Agreement shall be inclusive of any Taxes and each Party shall be
responsible for and shall bear, pay or set-off its own Taxes
assessed by a tax or other authority except as otherwise set forth
in this Agreement.

 

5.7

VAT. All payments due to the
terms of this Agreement are expressed to be exclusive of value
added tax (VAT) or similar indirect taxes (e.g. goods and service
tax). VAT/indirect taxes shall be added to the payments due to the
terms if legally applicable.

 

5.8

Withholding Tax. If Applicable
Laws or regulations require withholding by BII and/or its
Affiliates of any taxes imposed upon MabVax Therapeutics Holdings Inc. on
account of any Earn-Out Payments and other payments paid under this
Agreement to benefit of MABVAX,
such taxes have to be retained by BII and/or its Affiliates as
required by local law from such remittable royalty and other
payment and shall be paid by BII and/or its Affiliates to the
proper tax authorities on account

 

 

 

-17-

 

  

 

 

of MabVax Therapeutics Holdings Inc. Official
receipts of payment of any retained local withholding tax shall be
secured and sent by BII and/or its Affiliates to MabVax Therapeutics Holdings Inc. as
evidence of such payment only on MabVax Therapeutics Holdings Inc.’s
request. The Parties shall cooperate and exercise their best
efforts to ensure that any withholding taxes imposed on
MabVax Therapeutics Holdings
Inc. are reduced as far as possible under the provisions of
any relevant double tax treaty. Withholding taxes retained by BII
and/or its Affiliates and paid to the proper German/local tax
authorities as well as a possible refund of retained and paid local
withholding taxes from the German/local tax authorities in favor of
MabVax Therapeutics Holdings
Inc. are paid in local/German currency (Local currency/EUR).
Any effect by currency conversion is benefit or burden of
MabVax Therapeutics Holdings
Inc. as tax-payer and are not refundable or taken by BII
and/or its Affiliates.

 

5.9

Interest on Late Payments. If
BII fails to pay any payment due under this Agreement as provided
herein on or before the date such payment is due, then such late
payment will bear interest, to the extent permitted by Applicable
Law, at an annual rate of [***] percent ([***]%) above the 1 month
EUR LIBOR rate which applied on the due date effective for the
first date on which payment was delinquent and calculated for the
exact number of days in the interest period based on a year of
three hundred sixty (360) days (actual/360). If the LIBOR is no
longer published, the Parties will agree upon another
internationally recognized rate which has historically been
substantially equivalent to the 1 month EUR LIBOR rate and utilize
such rate retroactively to such time as the rate was no longer
available.

 

5.10

Loss or Damage to the Acquired
Assets. Prior to the Closing, any loss or damage to the
Acquired Assets shall be the sole responsibility of
MABVAX.

 

5.11

Commercially Reasonable
Efforts. BII shall use Commercially Reasonable Efforts to
advance the development of at least one (1) BII Product into a
Phase I Clinical Trial. BII shall endeavour to achieve (a) Start of
Development of a BII Product within approximately [***] months
after the Effective Date, and (b) Initiation of the first Phase I
Clinical Trial of a BII Product approximately [***] months after
the effective date of the Agreement, it being understood by the
Parties these timelines are anticipated timelines only and are
neither binding nor enforceable under this Agreement. For the
avoidance of doubt, BII is permitted to suspend or stop the
development of a BII Product for a period that does not exceed
[***] months even as such suspension or stoppage would be a breach
of BII’s obligation to use Commercially Reasonable
Efforts.

 

5.12

S[***]Agreement.
Notwithstanding anything to contrary in this Agreement, the Parties
agree, that in the event BII makes any payments that are due under
this Article 5 to [***] and not to MabVax Therapeutics Holdings Inc. pursuant
to the [***] Agreement, such payments shall not be made by BII to
MabVax Therapeutics Holdings Inc.,
(or, for the avoidance of doubt, to MabVax Therapeutics
Inc.) under this Agreement.

 

6.

CLOSING
ACTIONS
TO BE TAKEN PRIOR TO OR AT CLOSING. ON OR AFTER THE EFFECTIVE DATE AND
PRIOR TO OR AT CLOSING, MABVAX SHALL DELIVER TO BII, DULY
EXECUTED:

 

6.1

The (a) Bill of
Sale; (b) Assignment and Assumption Agreement, (c) [***] Program
Patent Assignment, and (d) written confirmation by [***] that the
Acquired Assets have been released, all lenders under the [***]
Agreement have expressed their consent to the transactions under
this Agreement, and that any of MABVAX’s obligations under
the [***] Agreement relating to the

 

 

 

-18-

 

  

 

 

[***] Program
and/or the Acquired Assets have been fully satisfied and the
Acquired Assets are not and will not be Encumbered by the [***]
Agreement.

 

6.2

Certified
copies of any necessary corporate actions of MABVAX authorizing the
execution and performance of this Agreement and the consummation of
the transaction contemplated herein; and

 

6.3

Such
other documents as are necessary or desirable for MABVAX and BII to
transfer the Acquired Assets from MABVAX to BII and as far as
applicable the assignment of such documents.

 

6.4

Interdependence. The transfers
and deliveries described in this Article 6 are mutually
interdependent and are to be regarded as occurring simultaneously
as of the Closing Date. Unless agreed otherwise in writing by
MABVAX and BII, no such transfer or delivery shall become effective
until all other transfers and deliveries provided for in this
Article 6 have also become effective. The parties agree that the
failure of MABVAX to transfer and deliver to BII the [***] Program
Inventory upon Closing in accordance with Section 8.2.2 shall have no effect on the
effectiveness and validity of the other transfers and deliveries
provided for in this Article 6.

 

6.5

Time and Place of Closing. Subject to
the satisfaction or waiver of all of the conditions set
forth in Articles
10
and 11, the
Closing shall take place on July 5, 2018. The Parties shall confirm
Closing in writing.

 

7.

REPRESENTATIONS
AND WARRANTIES

 

7.1

MABVAX
represents and warrants to BII as of the Effective Date and as of
the Closing Date, except as disclosed in a disclosure schedule (the
“Disclosure
Schedules”), that

 

7.1.1

Authority. MABVAX has the power
and authority to execute and deliver this Agreement and to
consummate the transactions contemplated hereby. All corporate
proceedings on the part of MABVAX that are necessary to approve and
authorize the execution and delivery of this Agreement and the
consummation of the transaction contemplated hereby have occurred,
and assuming proper execution and delivery by BII, this Agreement
is enforceable against MABVAX in accordance with its terms. Each
Transaction Document will be enforceable in accordance with each of
its terms upon execution and delivery to BII, in each case, subject
to (a) applicable bankruptcy, insolvency, reorganization,
moratorium and similar laws affecting creditors rights and remedies
generally, and (b) the remedy of specific performance and
injunctive and other forms of equitable relief. There are no other
MABVAX Third Party consents or approvals necessary for MABVAX to
sell and transfer to BII the Acquired Assets as contemplated
hereby.

 

7.1.2

Finder’s Fees. Except for
those listed in Schedule
7.1.2, MABVAX has no liabilities or obligations to pay any
fees or commissions to any broker, finder, or other agent with
respect to the transactions contemplated by this Agreement for
which BII could become liable or obligated. For clarity, the
finder’s fee listed in Schedule 7.1.2 is borne by
MABVAX.

 

7.1.3

Authorizations. No
Authorization is needed by MABVAX for the execution, delivery, or
performance of this Agreement and the consummation of the
transactions contemplated hereby, except where the failure to
obtain such Authorization will not have a Material Adverse Effect
on this Agreement or the consummation of the transactions
contemplated hereby.

 

7.1.4

Litigation and Claims. In the
Territory, there is no Action pending or involving MABVAX, or to
the Knowledge of MABVAX, threatened against MABVAX related to the
Acquired Assets before any Governmental Entity. MABVAX has settled or will settle any claims of
inventors relating to the Acquired Assets and no remuneration is
due or otherwise payable to the inventor(s) of
the

 

 

-19-

 

  

 

 

Acquired Assets, including any compounds, whether
or not such compounds are subject to existing patents, patent
filings, or patent applications that may be filed by BII subsequent
to the Effective Date.

 

7.1.5

Organization and Good Standing.
MABVAX is a corporation duly organized, validly existing, and in
good standing under the laws of the
United States of America and is duly authorized to do business
therein.

 

7.1.6

Title to Acquired
Assets. MABVAX
is the sole owner of the Acquired
Assets and has and will convey
to BII good and marketable title to all of the Acquired Assets free
and clear of Encumbrances. Except for Excluded Assets, the Acquired
Assets include all of the tangible properties, Patents and Know-How
and other assets owned by MABVAX that are solely and exclusively
related to the [***] Program.

 

7.1.7

Sufficiency. To the knowledge of MABVAX, the Acquired Assets
and the rights licensed pursuant to Section 3.1
are all of the assets and rights owned
or controlled by MABVAX which are necessary for BII to conduct the
[***] Program in substantially the manner conducted by MABVAX as of
the date hereof, other than (a) personnel, (b) items generally
categorized as corporate overhead, [***], and (c) the Excluded
Assets.

 

7.1.8

Books and
Records. To the Knowledge of
MABVAX the Books and Records are reasonably conceived in a manner as appropriate in
the international pharmaceutical industry. None of the Books and
Records are recorded, stored,
maintained, operated or otherwise wholly or partly dependent on or
held or accessible by any means (including without limitation, an
electronic, mechanical or photographic process computerized or not)
which are not under the exclusive ownership and direct control of
MABVAX. 

 

7.1.9

Patent
Files. To the Knowledge of MabVax, the Patent Files
include all of the material
information necessary for BII to fully exploit the Acquired Assets
and are conceived in a reasonable manner as appropriate in the good
international pharmaceutical industry. To the Knowledge of MABVAX, none of the material
Patent Files is recorded, stored, maintained, operated or otherwise
wholly or partly dependent on or held or accessible by any means
(including without limitation, an electronic, mechanical or
photographic process computerized or not) which are not under the
exclusive ownership and direct control of
MABVAX. 

 

7.1.10

Violations/Breaches.
To the Knowledge of MABVAX, the
execution and delivery of this Agreement and the consummation of
the transactions contemplated hereby do not or will not (a) violate
any Applicable Law, (b) result in a breach of any term of the
certificate of incorporation, by-laws or governing document of
MABVAX or (c) result in a breach of any contract, agreement, or
other instrument to which MABVAX is a party, except, in the
case of clause (c), as would not have a Material Adverse
Effect.

 

7.1.11

[***] Program
Patents and [***] Program Know-How

 

(a)

[***] Program
Patents. To the knowledge of MABVAX, each of the
[***] Program
Patents is valid
and enforceable, and nothing has been done or omitted to be done by
which it may cease to be valid and enforceable or which may
restrict the scope of protection afforded by such [***] Program Patents, and/or would justify
cancellation, rectification or other modification of a registration
of any of the [***] Program Patents. All [***] Program Patents are
legally and beneficially owned solely by MABVAX free and clear of
Encumbrances.

 

 

 

 

-20-

 

  

 

 

(b)

[***]
Program Know-How.
All of the [***] Program Know-How is legally and beneficially owned
solely by MABVAX free and clear of Encumbrances.

 

(c)

MABVAX has not
received any written notice of any claim, legal action, proceeding,
judgment or settlement, and to the Knowledge of MABVAX’s
there is no threatened claim, relating to any of the [***] Program
Patents and/or [***] Program Know-How, including but not limited to
any claim or opposition as to title, validity, scope of protection,
enforceability, entitlement or otherwise.

 

(d)

All fees that have
become due and payable, including but not limited to renewal fees,
in respect to any [***] Program Patents have been paid and all
documents, recordations and certificates in connection with all
[***] Program Patents currently required to be filed have been
filed with the relevant patent office or other authorities in the
United States or foreign jurisdictions, as the case may be, for the
purposes of prosecuting, maintaining and perfecting all [***]
Program Patents.

 

(e)

There are no Third
Party challenges against the [***] Program Patents in oppositions,
nullity proceedings, re-examination proceedings or any other
proceedings that are pending. No supplier of any products or
services to MABVAX is a party to or to the best knowledge of MABVAX
has threatened with any civil, criminal, arbitration,
administrative or other claim or proceeding.

 

(f)

MABVAX has
granted no licenses under and has not assigned [***] Program
Patents and/or [***] Program Know-How to Third Parties and no
security interests or any other interests of Third Parties remain
in any [***] Program Patents and/or [***] Program
Know-How.

 

(g)

To the Knowledge of
MABVAX, there currently is, and has not been, no infringement of
any or the [***] Program Patents.

 

7.1.12

Compliance
with Applicable
Laws. The [***] Program is being conducted in compliance
with all Applicable Laws, and has not received any written
communication from any Governmental Entity within the Territory
that alleges the [***] Program is not in such
compliance.

 

7.1.13

Permits.
MABVAX possesses all licenses, permits, and other approvals from
Governmental Entities necessary to enable them to carry on the
[***] Program as it is currently conducted (collectively,
“Government
Permits”),

 

7.1.14

Third Party
Rights. To the
knowledge of MABVAX, the exploitation of the Acquired Assets does
not infringe any Patent or other Intellectual Property Right of
MABVAX or a Third Party and there are no existing or threatened
claims from third parties regarding the exploitation of the
Acquired Assets nor any contractual obligations or governmental
directions, orders or other regulations from any Governmental
Entity restricting the exploitation of the Acquired
Assets.

 

7.1.15

To the Knowledge of
MABVAX, all material Confidential Information owned or
used by MABVAX that is related
to the Acquired Assets are accurately recorded and accessible by and comprehensible to a
reasonable person experienced in the development, manufacture and
marketing of pharmaceutical or medicinal products. To the Knowledge
of MABVAX, it is not a party to a confidentiality or other
agreement that restricts the use or disclosure of information
solely and exclusively relates to the Acquired Assets. MABVAX has
not disclosed, except under appropriate confidentiality and non-use
obligations, any Confidential Information that relates to the
Acquired Assets to Third Parties.

 

 

 

-21-

 

  

 

 

7.1.16

Complete Information.
To the Knowledge of MABVAX, all material information given by, or
on behalf of, MABVAX or to BII, its advisers or agents before
and/or during the negotiations leading to this Agreement and
including all information set out in this Agreement and any of the
Schedules attached to this Agreement, is true, complete, accurate
and not misleading. To the Knowledge of MABVAX, all information
about the Acquired Assets that might be material for disclosure to
a purchaser of the Acquired Assets have been disclosed to BII. As
far as MABVAX is aware, no information which it reasonably believes
to be material regarding the Acquired Assets (in particular its
financial condition, developments, prospects and liabilities) has
not been disclosed to BII. 

 

7.1.17

Effects of Sale. Neither the execution nor performance of this
Agreement or a document to be executed at or before Closing
will:

 

(a)

result in MABVAX losing the benefit of a permit or
an asset, license, grant, subsidy, right or privilege which it
enjoys at the Effective Date in any jurisdiction relating to the
Acquired Assets; or

 

(b)

conflict with, or
result in a breach of, or give rise to an event of default under,
or require the consent of a person under, or enable a person to
terminate, or relieve a person from an obligation under, an
agreement, arrangement or obligation relating to the Acquired
Assets to which MABVAX is a party or a legal or administrative
requirement in any jurisdiction.

 

7.2

BII
represents and warrants to MABVAX as of the Effective Date and as
of the Closing Date that:

 

7.2.1

Authority. BII has the power
and authority to execute and deliver this Agreement and to
consummate the transactions contemplated hereby. All corporate
proceedings on the part of BII that are necessary to approve and
authorize the execution and delivery of this Agreement and the
consummation of the transaction contemplated hereby have occurred,
and assuming proper execution and delivery by MABVAX, this
Agreement is enforceable against BII in accordance with its terms,
and the other Transaction Documents will be enforceable in
accordance with their terms upon execution and delivery to MABVAX,
in each case, subject to (a) applicable bankruptcy, insolvency,
reorganization, moratorium and similar laws affecting creditors
rights and remedies generally, and (b) the remedy of specific
performance and injunctive and other forms of equitable
relief.

 

7.2.2

Authorizations. No
Authorization is needed by BII for the execution, delivery, or
performance of this Agreement and the consummation of the
transactions contemplated hereby, except where the failure to
obtain such Authorization will not have a Material Adverse Effect
on this Agreement or the consummation of the transactions
contemplated hereby.

 

7.2.3

Organization and Good
Standing. BII is a corporation
duly organized, validity existing, and in good standing under the
laws of Germany, and is duly authorized to do business
therein.

 

7.2.4

Violations/Breaches.
To the Knowledge of BII, the execution and delivery of
this Agreement and the consummation of the transactions
contemplated hereby do not violate any law, rule or regulation or
order, judgment, or decree within the Territory binding on BII, and
will not result in a breach of any term of the certificate of
incorporation, code of regulation or by-laws of BII or of any
contract, agreement, or other instrument to which any of BII is a
party.

 

7.3

If not otherwise
set forth herein the warranty shall be in line with Applicable
Law.

 

 

-22-

 

 

 

8.

COVENANTS

 

8.1

Operation of the [***] Program Prior
to Closing. Except for actions taken pursuant to the prior
consent of BII, MABVAX from the Effective Date until Closing
will:

 

8.1.1

Conduct the [***]
Program in the ordinary course; and

 

8.1.2

Not transfer or Encumber any of the Acquired Assets;
and

 

8.1.3

Maintain all [***] Program Patents and [***] Program Know-How, including but
not limited to the maintenance and prosecution of [***]
Program Patents;
and

 

8.1.4

Continue
to meet the contractual obligations
of, and pay obligations relating to the Acquired Assets;
and

 

8.1.5

Not start litigation or arbitration proceedings relating to the [***]
Program; and

 

8.1.6

Notify BII immediately if it becomes aware of a
fact or circumstance which constitutes a breach of Section 8.1 or
has caused, or will or might cause, a warranty to become untrue,
inaccurate, incomplete or misleading at any time before
Closing;
and

 

8.1.7

Non-Impairment. MABVAX
will not act to impair the value of, or BII’s interest in,
the Acquired Assets, and will not use or infringe any Acquired
Assets in conducting its businesses in
the Territory. In particular, MABVAX will not abandon any of
the [***] Program Patents, cancel or narrow claims in any [***]
Program Patent, oppose any [***] Program Patents, challenge any
[***] Program Patents in nullity proceedings, re-examination
proceedings or otherwise challenge the validity or enforceability
of any of the [***] Program Patents. 

 

8.1.8

Efforts to Close. With respect
to efforts to close, MABVAX and BII agree the following: MABVAX and
BII will cause all of the conditions, as specified in Articles 10
and 11 of this Agreement, to the obligations of the others to
consummate the transactions contemplated hereby, within [***] days
of the Effective Date of the Agreement.

 

8.1.9

MABVAX and BII
will comply fully with all applicable notification, reporting, and
other requirements of any applicable antitrust
laws.

 

8.1.10

MABVAX
and BII will each use all reasonable efforts to obtain, as soon as
practicable, the Authorizations that may be or become necessary for
the performance of their obligations under this Agreement and the
consummation of the transactions contemplated hereby, if any, and
will cooperate fully with each other in promptly seeking to obtain
such Authorizations.

 

8.2

Transfer of Acquired
Assets.

 

8.2.1

Within [***] Business Days
after the Effective Date, and in all cases by the Closing Date
should the Closing Date fall within the above [***] Business Days,
MABVAX shall make available to BII, or a party designated by BII,
all Books and Records and Patent Files. To the extent books,
records and other documents that otherwise correspond to the
definition of Books and Record in accordance with Section 1.1.11,
but do not relate solely and exclusively to the [***] Program but
also to other programs, MABVAX will provide to BII redacted copies
of such books, records and other documents, and to the extent
patent files that otherwise correspond to the definition of Patent
Files in accordance with Section 1.1.44, but do not relate solely
and exclusively to the [***] Program but also to other programs,
MABVAX will provide to BII redacted copies of such
patent

 

 

 

-23-

 

 

 

files. . MABVAX
will store the originals of the Books and Records, including but
not limited to original lab notebooks, for access by both Parties
at a qualified storage facility located on San Diego, CA at
MABVAX’s cost and expense. Any copies of the Books and
Records and Patent Files shall be shipped to the address of BII
at:

 

Books and Records:

[***]

Boehringer
Ingelheim [***]

Tel:
[***]

 

Patent Files:

[***]

Boehringer
Ingelheim [***]

Tel:
[***]

 

8.2.2

Within [***]
Business Days after the Effective Date, and in all cases by the
Closing Date should the Closing Date fall within the above [***]
Business Days, MABVAX shall make available to BII, or a party
designated by BII, all [***] Program
Inventory, provided, at BII’s sole option, MABVAX may destroy
any such [***] Program Inventory in lieu of transferring such [***]
Program Inventory to BII in accordance with this Section
8.2.2.

 

8.2.3

On
the Closing Date, MABVAX shall make all other Acquired Assets,
including but not limited to copies of file wrappers for the [***]
Program Patents and written or tangible embodiments of the [***]
Program Know-How, available to BII, and will provide copies of
technical information used by MABVAX or Third Parties acting on
MABVAX’s behalf in the research work related to the [***]
Program, to the extent assigned by MABVAX to BII pursuant to this
Agreement. Such other documentation shall be provided in the format
as used by MABVAX or available and existing as of the Closing Date
and shall be shipped to the address of BII at:

 

[***]

Tel:
[***]

 

8.2.4

In
the event certain assets solely and exclusively related to the
[***] Program and existing as of the Closing Date have not been
specified as Acquired Assets and consequently have not been
assigned and transferred to BII at Closing, MABVAX shall promptly
assign and transfer such other assets once so identified, to BII
after Closing and such other assets so assigned and transferred
shall be treated as Acquired Assets for purposes of this
Agreement.

 

8.2.5

For the assignment
of the [***] Program Patents, MABVAX shall do all acts necessary to
vest in BII or its designated parties full and unrestricted
ownership in the [***] Program Patents, including those actions as
further described in Section 8.6.2.

 

8.2.6

Wrong Pockets; Further
Assurances. After the Closing,
in the event that MABVAX
receives or discovers that it is in possession of any asset that is
an Acquired Asset or is otherwise properly due and owing to BII in
accordance with the terms of this Agreement, MABVAX promptly shall
transfer such asset to BII. MABVAX shall provide (at no cost to
BII) reasonable and appropriate scientific expertise to support the
transfer of the technical aspects and Know How related to the
Acquired Assets to BII, for up to [***] weeks or a total of [***]
hours, whichever is first reached. The time can be spread across
appropriate MABVAX employees, to begin at a time mutually agreed to
by the Parties, and in all cases, to begin within [***] Business
Days after the Effective Date.

 

 

 

-24-

 

 

8.3

Publicity. Any press releases,
financial filings, public announcements or similar publicity with
respect to this Agreement or the transaction contemplated hereby
shall be made upon the mutual consent of the Parties in advance of
publication. Exhibit
D attached
herein sets forth the final press release related to the execution
of this Agreement by both Parties, as approved by each Party for
public announcement on or after the Effective Date.

 

8.4

Cooperation in
Litigation. For a period of
five (5) years after Closing,
MABVAX and BII will, in the defense of any Third Party Action
relating to the Acquired Assets, communicate to the other Party any
facts of which such Party has knowledge with respect to the
Acquired Assets, testify in any legal proceedings, sign all
documents, make all rightful oaths and declarations, and make
available records to the extent reasonably necessary to permit the
effective defense or investigation of such Action at such other
Party’s sole cost and expense. If information other than that
pertaining to the Acquired Assets is contained in such records
and/or other communication, MABVAX and BII will either agree that
such information may be omitted or redacted by the producing party,
or will enter into appropriate secrecy commitments to protect such
information. For the avoidance of doubt, in the event of MABVAX
bankruptcy and/or liquidation, MABVAX’s Chief Executive
Officer and/or Chief Scientific Officer shall remain available for
the period of time indicated above as reasonably necessary to
permit the effective defense or investigation of any Third Party
Action relating to the Acquired Assets.

 

8.5

Expenses. Except as otherwise expressly provided in this
Agreement, whether or not the transactions contemplated by this
Agreement are consummated, each of MABVAX and BII shall bear its
own costs and expenses. 

 

8.6

Assignment of
Patents.

 

8.6.1

Inventor Compensation. Each of
MABVAX and BII shall compensate each of its own Inventors according
to each of its own internal policy. No Party shall in any way be
responsible or liable for compensating the Inventors of another
Party.

 

8.6.2

Assignment and
Recordation. At BII’s
sole cost and expense, MABVAX will submit the appropriate
assignment documents to the relevant Governmental Entity, by
country, requesting that MABVAX’s entire right, title and
interest in the [***] Program Patents is transferred and assigned
solely to BII or a party designated by BII. MABVAX shall inform BII
in writing of these above submissions, including, without
limitation providing a copy of all communication sent to and
received from the Governmental Entities, within two (2) weeks of
their submission or receipt, and MABVAX shall on the Closing Date
provide BII with a signed and notarized [***] Program Patent
Assignment. MABVAX, at BII’s sole cost and expense, shall
promptly execute and deliver further documents and take such
further steps as may reasonably be required to vest in BII the
[***] Program Patents. Upon BII’s reasonable request and at
BII’s sole cost and expense, MABVAX shall execute and supply
documents necessary for BII’s prosecution and maintenance of
the [***] Program Patents that BII is unable to obtain without the
assistance of MABVAX, including, but not limited to declarations,
affidavits and inventor assignments, notarization and legalization
of documents, if necessary consularization of a respective country,
depose to or procure the deposing to or swearing of such documents
and do any act or thing and provide any information which may be
useful and necessary for the assignment of the [***] Program
Patents to BII.

 

8.6.3

BII shall be responsible for, and will pay all
out-of-pockets expenses (whether incurred before or after the
Closing Date) involved in notarization, authentication,
legalization, and/or consularization of the signatures of
BII’s representatives on the [***] Program Patent Assignment
and other [***] Program Patent assignment documents, by country,
and recording such assignment documents with the appropriate
Governmental Entities. BII will also be responsible for, and will
pay all expenses

 

 

 

-25-

 

 

 

(whether incurred before or after the Closing
Date) involved in notarization, authentication, legalization,
and/or consultation of the signatures of MABVAX’s
representatives on the [***] Program Patent Assignment
documents.

 

8.6.4

Local
Patent Representatives.
MABVAX shall have responsibility, at
its own cost to:

 

(a)

With respect to the
[***] Program Patents: notify each in writing each of its local
patent representatives in the Territory within [***] Business Days
of the Closing Date that: (i) the [***] Program Patents have been
assigned to BII; and (ii) all future correspondence regarding the
[***] Program Patents should be sent to:

 

[***]

Tel:
[***]

 

(b)

Forward copies of any correspondence it receives
from its local patent representative or any Governmental Entities
regarding the [***] Program Patents to BII that it receives before or after the Closing
Date.

 

8.6.5

Maintenance of [***] Program
Patents. MABVAX will timely pay all out-of-pocket expenses
related to the maintenance of [***] Program Patents due between the
Effective Date and the Closing Date. After the Closing Date, BII
will be solely responsible for the maintenance of the [***] Program
Patents. If MABVAX receives any bills or invoices for expenses
related to the maintenance of [***] Program Patents after the
Closing Date, then MABVAX will forward to BII any such bills or
original invoices for payment by BII and MABVAX shall have no
liability for BII’s failure to timely pay such bills or
invoices.

 

8.6.6

Prosecution of [***]
Program Patents. MABVAX will
pay all bills and invoices for
[***] Program Patent prosecution expenses for activities or work
completed prior to the Closing Date and which relate to work
performed for the benefit of MABVAX. For clarity, work, whether
performed before or after the Closing Date, which relates to the
transfer of the [***] Program Patents to BII pursuant to this
Agreement shall not be “work performed for the benefit of
MABVAX”. Upon BII’s written request and at BII’s
expense, MABVAX will be responsible for Prosecuting the [***]
Program Patents for up to [***] days after the Closing Date;
provided, however, that “Prosecuting”
solely for the purposes of this Section 8.6.6
shall mean filing such documents as
may be reasonably necessary to continue the pendency of a patent
application for at least [***] days after the filing of such
document. Otherwise, BII will be responsible for Prosecuting the
[***] Program Patents as of the Closing Date. For a period of [***]
years after the Closing Date, MABVAX will further cooperate with
and reasonably assist and provide support to BII in relation to the
prosecution and maintenance of [***] Program Patents, at
BII’s request and expense. In the event that BII does not
have legal status in a [***] Program Patent because the recordation
process has not been completed, MABVAX shall upon instruction from
BII, act on BII’s behalf and at BII’s
expense.

 

8.6.7

Covenant Not to Sue. MABVAX
hereby agrees that with respect to any Patent or other Intellectual
Property that, on the date of Closing, they own or under which they
have the right to grant licenses, they will not assert against BII,
its Affiliates, Sublicensees or its or their distributors or
independent contractors, any claims for infringement of such Patent
or Intellectual Property based on the research, development,
manufacture, use, sale, offer for sale or license, or import of the
Acquired Assets, and/or any BII Product in the Field in the
Territory.

 

8.6.8

Non-Compete. After the Closing
Date until the [***] anniversary of the Closing Date, MABVAX
undertakes to BII that it shall not, and shall procure that its
Affiliates shall not, directly or indirectly conduct any activity
involving the research, development, commercialization or other
exploitation

 

  

 

-26-

 

 

 

of a [***] Program
and/or any product competing with a BII Product, or fund, authorize
or assist any such activity.

 

8.6.9

Conditional No Challenge. To
the extent legally enforceable, MABVAX hereby agrees, so long as a
[***] Program Patent is pending or in force, neither to file any
Action that challenges the validity, enforceability or
patentability of such [***] Program Patent, nor to support any
Third Party to file such an Action; provided however, that none of
the foregoing shall apply to any Action (including counter-claims)
filed by MABVAX in the defense of an Action brought by BII or its
licensees against MABVAX alleging patent infringement. MABVAX shall
bind any of its assignees to this obligation.

 

8.7

Additional Records. Within a
reasonable time but no later than [***] days after Closing, MABVAX
will provide to BII copies of books, records, or other documents,
if any, which are not Books and Records, but which are necessary
for the operation of the [***] Program. MABVAX may redact from such
copies any information that does not relate to the [***] Program
and BII will have the right to use such copies only in connection
with its operation and ownership of the [***] Program.

 

8.8

Removal of Assets. All tangible
Acquired Assets will be moved by MABVAX within [***] Business Days
after Closing from MABVAX’s to
BII’s premises, as listed in Sections 8.2.1
and 8.2.2, at
MABVAX’s expense.

 

 

 

9.

TREATMENT
OF CONFIDENTIAL INFORMATION

 

9.1

Confidential
Information of a Party disclosed by that Party to another Party
under this Agreement shall be received and held in confidence by
the receiving Party and, except with the consent of the disclosing
Party or as otherwise permitted under this Agreement, shall neither
be used by the receiving Party nor disclosed by the receiving Party
to others. For clarity, the terms and the existence of this
Agreement and the Transaction Documents shall be considered
Confidential Information of both Parties. MABVAX shall neither use
nor disclose to Third Parties any Confidential Information related
to the Acquired Assets.

 

9.2

A receiving Party
may disclose and authorize the use of the disclosing Party’s
Confidential Information (a) to and by its Affiliates, consultants,
advisors, and agents only to the extent necessary to carry out the
Party’s rights and responsibilities under this Agreement, (b)
in the course of the consummation of the transactions contemplated
hereby, or (c) to actual or potential investors, acquirors,
licensees or sublicensees, as applicable, provided however, that
the receiving Party will ensure that said Affiliates, consultants,
advisors, agents, actual or potential investors, acquirors,
licensees or sublicensees, as applicable, are bound to such Party
by obligations of confidentiality and limited use at least as
restrictive as the obligations of such Party under this
Agreement.

 

9.3

The Parties agree
to take or cause action to be taken to preserve the confidentiality
of Confidential Information received from another Party as it would
customarily take to preserve the confidentiality of its own
Confidential Information, using in all such circumstances, not less
than reasonable care.

 

9.4

Except
as required by law and subject to Sections 8.3 and 9.2 above,
neither Party will disclose the terms of this Agreement without the
written consent of the other Party.

 

9.5

In the event disclosure of Confidential
Information is required by Applicable Law or rules of a security
exchange, then the disclosing Party will provide reasonable advance
written notice to the other Party of the timing, nature, and
content, of the anticipated disclosure, and shall use its
reasonable efforts to assist the disclosing Party in objecting to such request. If
the receiving Party is compelled to disclose any of the
Confidential Information pursuant to such legal or governmental
proceeding or Applicable Law or rules, receiving Party shall use
its

 

 

-27-

 

 

 

reasonable efforts to assist disclosing Party in
obtaining confidential treatment for such disclosed Confidential
Information. Any Confidential Information so disclosed shall still
be subject to the terms of this Agreement.

 

9.6

If this Agreement is, for any reason, terminated
prior to Closing, then BII agrees to promptly return to MABVAX, or
will promptly destroy, any tangible written, printed, visual or
digital media, or any other materials or substances, containing
Confidential Information,
including all copies and excerpts thereof except for one archival
copy, to be retained by BII in a secure manner for archival
purposes only. The return of such media or materials shall not
affect the obligations of BII as to confidentiality or non-use as
set forth herein.

 

9.7

For the sake of clarity, any and all of
MABVAX’s Confidential Information included in the Acquired
Assets transferred to BII at Closing, with the exception only of
Books and Records which are stored in accordance with
Section 8.2.1 above, which constitute Confidential Information
of both Parties, will no longer be considered MABVAX’s Confidential Information after
Closing, but will thereupon be BII’s Confidential Information
that MABVAX will be obligated to protect in accordance with the
provisions of this Article 8.

 

9.8

The Parties
undertake to protect Confidential Information (including but not
limited to patent-relevant, scientific or technical information)
against unauthorized access by Third Parties. If Confidential
Information is communicated via internet mail, use of internet mail
encryption technology is compulsory (for direct communication
between the Parties, BII provides for a suitable technology at
http://guides.boehringer-ingelheim.com/.
free of charge).

 

9.9

Survival. This Article 9
shall survive the expiry or termination of this Agreement and shall
remain in full force and effect for [***] years after the expiry or
termination of this Agreement, except that any the obligations with
respect to Confidential Information that is a trade secret under
Applicable Law shall continue to survive thereafter.

 

10.

CONDITIONS TO MABVAX’S
OBLIGATION TO CLOSE

 

All obligations of MABVAX to sell and transfer to
BII the Acquired Assets, to grant the rights under Section
3.1, and
to perform any other action at the Closing are subject to the
fulfilment, prior to or at the Closing, of each of the following
conditions, of which Sections 10.2 and 10.3 may be waived by
MABVAX, in whole or in part, without notice of such waiver to
BII.

10.1

No Injunction/Order. No
preliminary or permanent injunction or other order will have been
issued that would make unlawful the consummation of the
transactions contemplated by this Agreement.

 

10.2

Performance of
BII’s Obligations. BII
will have fully performed all commitments required by this
Agreement to be performed prior to Closing (except for those which,
in the aggregate, will not have a Material Adverse Effect on this
Agreement or the consummation of the transactions contemplated
hereby).

 

10.3

BII’s
Representations
and
Warranties True. All
representations and warranties of BII contained in this Agreement
will be true and correct as of the Closing, except for those which,
individually or in the aggregate, will not have a Material Adverse
Effect on this Agreement or the consummation of the transactions
contemplated hereby.

 

 

-28-

 

 

 

11.

CONDITIONS TO BII’S
OBLIGATION TO CLOSE

 

All obligations of BII to purchase the Acquired
Assets, to assume the Assumed Liabilities, to obtain the rights
under Section 3.1, and
to perform any other action at the Closing, are subject to the
fulfilment, prior to or at the Closing, of each of the following
conditions, of which Sections 11.2 and 11.3 may be waived by BII,
in whole or in part, without notice of such waiver to
MABVAX.

 

11.1

No Injunction/Order. No
preliminary or permanent injunction or other order will have been
issued that would make unlawful the consummation of the
transactions contemplated by this Agreement.

 

11.2

Performance of
MABVAX’s Obligations. MABVAX will have fully performed all commitments
required by this Agreement to be performed prior to Closing (except
for those which, in the aggregate, will not have a material adverse
effect on this Agreement or the consummation of the transactions
contemplated hereby) and will have tendered at the Closing, the
documents required in Section 6.1.

 

11.3

MABVAX’s Representations and
Warranties. All representations
and warranties of MABVAX contained in this Agreement will be true
and correct as of the Closing, except for those which, individually
or in the aggregate, will not have a Material Adverse Effect on
this Agreement or the consummation of the transactions contemplated
hereby.

 

11.4

[***] Agreement. [***], MABVAX
and BII shall have executed the [***] Agreement in the form set
forth in Schedule
11.4.

 

11.5

[***] Agreement. MABVAX will
have provided BII with the written confirmation by [***] that the
Acquired Assets have been released, all lenders under the [***]
Agreement have expressed their consent to the transactions under
this Agreement, any of MABVAX’s obligations under the [***]
Agreement relating to the [***] Program and/or the Acquired Assets
have been fully satisfied, and the Acquired Assets are not and will
not be Encumbered by the [***] Agreement.

 

12.

INDEMNITY
AND LIMITATIONS OF LIABILITY

 

12.1

Survival of Representations and
Warranties. The representations and warranties of MABVAX
contained in Article 7 of this Agreement and the other Transaction
Agreements shall survive the Closing and MABVAX shall remain liable
in that regard until the date which is twenty-four (24) months
after the Closing with the exception of the representation and
warranties contained in Sections 7.1.6, 7.1.7,
7.1.11(a), 7.1.11(b), and 7.1.11(f), which shall survive the termination
and expiration of this Agreement. The representations and
warranties of BII contained in this Agreement and the other
Transaction Agreements shall survive the termination and expiration
of this Agreement.

 

12.2

Indemnification by
MABVAX.

 

12.2.1

Subject to the
terms and conditions of this Agreement, MABVAX will defend and hold
BII harmless from and against all claims, losses, liabilities,
damages, costs, and expenses (including without limitation
reasonable fees and expenses of attorneys incurred in investigation
or defense of any third party Action) as a result of a Third Party
claim arising out of or related to an Excluded Liability or
material breach of an obligation, representation and warranty or
covenant of MABVAX in this Agreement.

 

12.2.2

Promptly, but no later than [***] days, after
receipt by BII of notice of any third party Action in respect of
which indemnity may be sought against MABVAX hereunder (for
purposes of this

 

 

-29-

 

 

 

 

 

Section 12.2.2, a “BII’s
Assertion”), BII will
notify MABVAX in writing of the BII’s Assertion, but the
failure to so notify MABVAX will not relieve MABVAX of any
liability they may have to BII, except to the extent MABVAX have
suffered actual prejudice thereby. MABVAX will be entitled to
participate in and, to the extent MABVAX elects by written notice
to BII within [***] days after receipt by MABVAX of notice of such
BII’s Assertion, to assume the defense of such BII’s
Assertion, at MABVAX’s own expense, with counsel chosen by it
which will be reasonably satisfactory to BII. With respect to any
such BII’s Assertion, BII will promptly provide MABVAX with:
(i) notice and copies of any documents served upon BII; and (ii)
all reasonable cooperation which MABVAX deem necessary to defend
such BII’s Assertion, including without limitation, providing
MABVAX and their outside attorneys access to any potentially
relevant documents, information, or individuals within the control
of BII, other than any privileged documents. If business
information of BII other than that pertaining to the [***] Program
is contained in such documents or information, MABVAX and BII will
enter into appropriate secrecy commitments to protect such
documents or information. Notwithstanding that MABVAX may have
elected by written notice to assume the defense of any BII’s
Assertion, BII will have the right to participate in the
investigation and defense thereof, with separate counsel chosen by
BII, but in such event the fees and expenses of BII (above those
which would otherwise have been incurred) and such separate counsel
will be paid by BII.

 

12.2.3

Notwithstanding
anything in this Section
12.2 to
the contrary:

 

()

MABVAX will have no
obligation with respect to any BII’s Assertion if, in
connection therewith, BII, without the written consent of MABVAX,
settles or compromises any Action or consents to the entry of any
judgment; and

 

(a)

MABVAX will not, without the written consent of
BII with respect to any BII’s Assertion:

 

()

Settle or
compromise any Action or consent to the entry of any judgment which
does not include as an unconditional term thereof the delivery by
the claimant or plaintiff to BII of a duly executed written release
of BII from all liability in respect of such Action, which release
will be reasonably satisfactory in form and substance to counsel
for BII; and

 

(i)

Settle or compromise any Action in any manner
that, in the reasonable judgment of BII or its counsel, will materially
adversely affect BII other than as a result of money damages or
other money payments.

 

(b)

Upon the payment of any settlement or judgment
pursuant to this Section 12.2, with
respect to any BII’s Assertion, MABVAX will be subrogated to
all rights and remedies of BII,
against any Third Party in respect of such BII’s Assertion,
to the extent of the amount so paid by MABVAX.

 

(c)

The indemnity provided for in this Section 12.2
will be BII’s exclusive source
of recovery against MABVAX with respect to matters covered by this
Section 12.2.

 

12.3

Indemnification by
BII.

 

12.3.1

Subject to the
terms and conditions of this Agreement, BII will defend and hold
MABVAX harmless from and against all claims, losses, liabilities,
damages, costs, and expenses (including without limitation
reasonable fees and expenses of attorneys incurred in investigation
or defense of any third party Action) as a result of a Third Party
claim arising out of the Assumed Liabilities,

 

 

-30-

 

 

 

 

and/or a material
breach of an obligation, representation and warranty or covenant of
BII in this Agreement.

 

12.3.2

Promptly, but no later than [***] days, after
receipt by MABVAX of notice of any third party Action in respect of
which indemnity may be sought against BII hereunder (for purposes
of this Section 12.3, a
“MABVAX’s
Assertion”), MABVAX will
notify BII in writing of the MABVAX’s Assertion, but the
failure to so notify BII will not relieve BII of any liability they
may have to MABVAX, except to the extent BII has suffered actual
prejudice thereby. BII will be entitled to participate in and, to
the extent BII elects by written notice to MABVAX within
[***] days after receipt by BII
of notice of such MABVAX’s Assertion, to assume the defense
of such MABVAX’s Assertion, at BII’s own expense, with
counsel chosen by it which will be reasonably satisfactory to
MABVAX. With respect to any such MABVAX’s Assertion, MABVAX
will promptly provide BII with: (a) notice and copies of any
documents served upon MABVAX; and (b) all reasonable cooperation
which BII deems necessary to defend such MABVAX’s Assertion,
including without limitation, providing BII and their outside
attorneys access to any potentially relevant documents,
information, or individuals within the control of MABVAX, other
than any privileged documents. If business information of MABVAX
other than that pertaining to the [***] Program is contained in
such documents or information, MABVAX and BII will enter into
appropriate secrecy commitments to protect such documents or
information. Notwithstanding that BII may have elected by written
notice to assume the defense of any MABVAX’s Assertion,
MABVAX will have the right to participate in the investigation and
defense thereof, with separate counsel chosen by MABVAX, but in
such event the fees and expenses of MABVAX (above those which would
otherwise have been incurred) and such separate counsel will be
paid by MABVAX.

 

 

 

 

 

12.3.3

Notwithstanding
anything in this Section
12.3 to
the contrary:

 

()

BII will have no
obligation with respect to any MABVAX’s Assertion if, in
connection therewith, MABVAX, without the written consent of BII,
settles or compromises any Action or consents to the entry of any
judgment; and

 

(a)

BII will not,
without the written consent of MABVAX with respect to any
MABVAX’s Assertion:

 

()

Settle or
compromise any Action or consent to the entry of any judgment which
does not include as an unconditional term thereof the delivery by
the claimant or plaintiff to MABVAX of a duly executed written
release of MABVAX from all liability in respect of such Action,
which release will be reasonably satisfactory in form and substance
to counsel for MABVAX; and

 

(i)

Settle or
compromise any Action in any manner that, in the reasonable
judgment of MABVAX or their counsel, will materially adversely
affect MABVAX other than as a result of money damages or other
money payments.

 

(b)

Upon the payment of
any settlement or judgment pursuant to this Section12.3 , with respect to any MABVAX’s
Assertion, BII will be subrogated to all rights and remedies of
MABVAX, against any third party in respect of such MABVAX’s
Assertion, to the extent of the amount so paid by BII.

 

(c)

The indemnity
provided for in this Section 12.3 will be MABVAX’s exclusive
source of recovery against BII with respect to matters covered by
this Section 12.3.

 

 

-31-

 

 

 

12.4

Indemnification
Limitations. The total aggregate amount in respect of which the
Parties shall be liable for indemnification under any provision of
Section 12.2 or 12.3 respectively shall not exceed, in the
aggregate three (3) times the amount actually received by MabVax
Therapeutics Holdings Inc. from BII under this Agreement except for
liabilities arising from or related to acts or omissions of gross
negligence or wilful misconduct by a Party.

 

12.5

Damage Limitations. In the
event any Claim or Action hereunder results in a Tax benefit or is
an insured loss to the indemnified Party, the indemnifying Party
will be entitled to take a credit against any liability thereunder
in the amount by which any Taxes of the indemnified Party will be
reduced by reason of any deduction or adjustment allowed the
indemnified Party for any payment, settlement, satisfaction of such
claim, as well as in the amount of and to the extent of any
insurance proceeds to which the indemnified Party is entitled. For
purposes hereof, it will be presumed that the maximum possible Tax
benefit is derived in the shortest time period
possible.

 

 

 

13.

DISPUTE
RESOLUTION

 

13.1

Any Claim arising
out of or related to this Agreement, and/or the Transaction
Documents, including without limitation, any Claim for
indemnification pursuant to Article 12 hereof will be resolved
pursuant to the procedures set forth in this Article
13.

 

13.2

Should any Claim
arise, MABVAX and BII will first attempt to resolve such Claim
amicably by entering into good faith negotiations by or among their
appropriate employees or officers. Such negotiations will commence
as soon as practicable after MABVAX and BII have each received
written notice of such Claim, but no later than [***] Business Days
after such receipt, and will terminate [***] days after such
commencement.

 

13.3

Any
Claim which is not resolved by the procedure set forth in Section
13.2 herein, will be referred to the Executive Official (or their
successor or designee) of MABVAX and BII. Such negotiations will
commence as soon as practicable after termination of the
negotiations described in Section 13.2, but not later than [***]
Business Days after any Party provides written notice to the others
that such Claim is not resolved and that they wish to invoke the
procedures set forth in this Section 13.3, and such negotiations
will terminate [***] days after commenced.

 

13.4

Any Claim which has not been resolved by the
procedures set forth in Sections 13.3 shall be finally resolved by binding arbitration in accordance with
the ICC arbitration rules by three (3) arbitrators. No arbitrator
shall be an employee, director or shareholder of either Party or
any of their Affiliates but each shall have substantial experience
in commercial disputes in the pharmaceutical industry. The
chairperson shall be a lawyer and not be a national of the country
of one of the Parties. Each Party shall name one arbitrator, and
such named arbitrators shall select the third arbitrator. Place of
such arbitration shall be [***]. The language of the arbitration
proceeding shall be English. The Parties acknowledge that they
desire for any arbitration to be conducted in an efficient, speedy
and economical manner.

 

13.5

The award for arbitration shall be final and
binding and may be enforced in any court of competent jurisdiction
against either Party. Notwithstanding the foregoing, the Parties
shall each be entitled
either prior to or during arbitration to seek and obtain
injunctive or other equitable relief in any

 

 

-32-

 

 

 

court of competent
jurisdiction to preserve the status quo pending arbitration or to
prevent the breach of this Agreement.

 

13.6

Except to the
extent necessary to confirm or obtain judgment on an award or
decision or as may be required by Applicable Law, neither Party
may, and the Parties shall instruct the arbitrators not to,
disclose the existence, content, or results of a dispute without
the prior written consent of the other Party.

 

 

 

14.

TERM, EXPIRATION, AND
TERMINATION

 

14.1

Term. This Agreement shall
become effective as of the Effective Date and shall remain in full
force and effect unless terminated earlier in accordance with this
Article 14.

 

14.2

Termination prior to
Closing.

 

14.2.1

Termination for Breach. Either
Party shall be entitled to terminate this Agreement at any time
prior to Closing upon written notice if the other Party is in
material breach of its obligations under this
Agreement.

 

14.2.2

Termination for Delay in
Closing. This Agreement may be
terminated at any time by either Party, if the Closing has not
occurred within [***] days after the Effective Date. In case either
Party seeks to terminate this Agreement pursuant to this Section
14.2.2, such Party shall provide [***] days written notice to the
other Party, such notice not to be dated prior to the [***] day
after the Effective Date.

 

14.2.3

Termination in view of
Governmental Ruling. This
Agreement may be terminated at any time prior to Closing by any
Party not in default, if any Governmental Entity has issued a
final, non-appealable order, decree, or ruling permanently
enjoining or prohibiting the consummation of the transactions
contemplated by this Agreement. A Party seeking to terminate this
Agreement pursuant to this Section 14.2.3 shall provide [***]
Business Days written notice to the other Party which shall include
a copy of the writing evidencing such order, decree or
ruling.

 

14.3

Termination after
Closing.

 

14.3.1

Termination by BII for
Discontinuation. BII shall have
the right, at any time,
to terminate this Agreement if BII, or
its Affiliates decide, at their sole discretion, to discontinue
BII’s or its Affiliates’ activities with regard to the
[***] Program, including without limitation the discontinuation of
research, development or commercialization of the Acquired Assets
and/or BII Products, upon [***] days prior written notice to
MABVAX.

 

14.3.2

Termination for Breach
of Covenants. BII shall be
entitled to terminate this Agreement at any time, if MABVAX does
not fulfill its contractual obligations under Article 8 after
Closing, and provided MABVAX does not cure such non-fulfillment of
its contractual obligations within [***] Business Days after
receipt of written notice from BII regarding such nonfulfillment.
However, such cure is not possible in case of MABVAX’s non fulfillment of the contractual
obligations has caused an impairment of the Acquired Assets as
solely determined by BII.

 

14.3.3

Termination for Breach
of Representations and Warranties. Subject to Section 12.1, BII
shall be entitled to terminate the Agreement, if MABVAX is in
breach of any of the representations and warranties given in
Section 7.1, in
case of Section 7.1.12 and 7.1.13 only if such breach would have

 

 

-33-

 

 

 

 

a Material Adverse
Effect, and provided MABVAX does not
cure the alleged breach of such warranty within [***] Business Days
after receipt of written notice from BII regarding such breach of
warranty. However, such cure is not possible in case
of MABVAX’s breach of warranty has caused an
impairment of the Acquired Assets as solely determined by
BII.

 

14.3.4

Termination for Breach
at any Time. This Agreement may
be terminated at any time after Closing by any Party, if the other
Party (the “Defaulting
Party”) is in default of
any of its material obligations under this Agreement,
including without limitation a breach
of the confidentiality and non-use obligations set forth under
Article 9 of this Agreement (“Default”)
which Default remains uncured for [***] days, each measured from
the date written notice of such Default is provided to the
Defaulting Party. The Party terminating the Agreement based on this
Section 14.3.4 (the “Non-Defaulting
Party”) shall provide
written notice to the Defaulting Party, which notice shall identify
the Default, the intent to so terminate and the actions or conduct
that it considers would be an acceptable cure of such Default. In
case the Defaulting Party disputes the Default under this
Section 14.3.4,
then the issue of whether the Non-Defaulting Party may properly
terminate this Agreement on expiration of the applicable cure
period shall be resolved in accordance with Article 13 of this
Agreement. If, as a result of such dispute resolution process, it
is determined that the alleged Defaulting Party committed a Default
and that the Default has not been cured prior to such
determination, then the Agreement, subject to the limitation in
this Section 14.3.4,
shall be terminated effective as of the determination unless the
arbitration tribunal as set forth in Article 13 of this Agreement
determines that the Default is of a nature that can be cured within
[***] days after the date of such judgment and indicates what
minimal actions need to be completed with such time period (the
“Additional Cure
Period”) to cure the
Default. In this latter case, the termination shall be effective as
of the expiration of the Additional Cure Period unless the
Defaulting Party completes the required actions on or prior to such
date. If the Parties dispute whether such Default was so cured,
either Party alone may request the same court to determine whether
it was so cured, and the Parties shall cooperate to allow such
determination to be made within [***] Business Days after such
request by either Party. The dispute resolution proceeding
contemplated above in this Section 14.3.4
does not suspend any obligations of
either Party hereunder, and each Party shall use reasonable efforts
to mitigate any damages resulting from a Default. If as a result of
such dispute resolution proceeding it is determined that the
alleged Defaulting Party did not commit the alleged Default (or
such Default was cured in accordance with this Section
14.3.4 prior to or during the Additional Cure Period),
then no termination shall be effective, and this Agreement shall
continue in full force and effect.

 

Notwithstanding
the foregoing, MABVAX shall not have the right to terminate this
Agreement for BII’s Default following [***], provided that
BII pays MABVAX the amount of such damages that have been awarded
by a dispute resolution proceeding pursuant to Article 13 and
without prejudice to any other remedies MABVAX may have under
Applicable Law.

 

14.4

Effects of Termination.

 

14.4.1

Effects of Termination
by MABVAX for Cause or by BII for
Discontinuation. In the event
of termination of this Agreement by (i) MABVAX pursuant to
Section 14.3.4, or
(ii) BII pursuant to Section 14.3.1, in
each case (i) and (ii):

 

(a)

This Agreement
shall become void and have no effect, and no Party hereto shall
have any liability to the other party hereto or their respective
Affiliates, directors, officers or employees;

 

 

-34-

 

 

(b)

All licenses
granted by a Party to the other Party under this Agreement shall
immediately terminate;

 

(c)

BII
shall return the original Acquired Assets to MABVAX as transferred
under this Agreement. [***]

 

(d)

Upon either Party’s request the other Party shall
promptly (i) return to the requesting Party any and all
Confidential Information of such requesting Party; or (ii) destroy
such Confidential Information of such requesting Party and certify
the destruction to such requesting Party within [***] calendar days
upon such requesting Party’s request according to this
Section (d), save
that each Party may retain one copy of the other Party’s
Confidential Information for the sole purpose of monitoring its
legal compliance with this Agreement, provided that the obligations
of confidentiality and non-use under Article 9 shall continue to
apply to such copies.

 

14.4.2

Termination of this
Agreement by BII for Cause. In
the event of termination of this Agreement by BII pursuant to
Sections 14.3.2– 14.3.4, in
addition to any other remedies available to BII at law or in
equity, BII may in its discretion

 

(i)
Terminate the Agreement in which case the following effects shall
apply:

 

(a)

This Agreement
shall become void and have no effect, and no Party hereto shall
have any liability to the other party hereto or their respective
Affiliates, directors, officers or employees;

 

(b)

All licenses granted by a Party to the other Party
under this Agreement shall immediately
terminate;

 

(c)

BII
shall return the original Acquired Assets to MABVAX as transferred
under this Agreement. [***]

 

(d)

MABVAX will refund to BII the Upfront Purchase
Price previously paid by BII to MABVAX under Section
5.1,
solely in the event that BII terminates this Agreement pursuant to
Section 14.3.2– 14.3.4,
(i) for MABVAX’s breach of its obligation to transfer to BII
the [***] Program Inventory pursuant to Section 8.2.2. and
this breach is not cured within [***] Business Days after the
Effective Date, or (ii) for MABVAX’s failure to sell,
convey, transfer, assign and deliver to BII MABVAX’s entire
right, title and interest in, to and under the Acquired Assets free
and clear of Encumbrances;
and

 

(e)

Upon either Party’s request the other Party shall
promptly (i) return to the requesting Party any and all
Confidential Information of such requesting Party; or (ii) destroy
such Confidential Information of such requesting Party and certify
the destruction to such requesting Party within [***] calendar days
upon such requesting Party’s request according to this
Section 14.4.1(d),
save that each Party may retain one copy of the other Party’s
Confidential Information for the sole purpose of monitoring its
legal compliance with this Agreement, provided that the obligations
of confidentiality and non-use under Article 9 shall continue to
apply to such copies.

 

,
or

 

(ii) apply as
an alternative remedy to the termination right pursuant to
Section 14.4.2(i)
and without consideration (except as otherwise stated below) in
lieu of termination of this Agreement:

 

 

-35-

 

 

 

(a)

BII may retain all
of its licenses and other rights granted under this Agreement,
subject to all of its payment and other obligations; except that
the applicable Milestone Payments and the applicable Earn-Out
Payment rate payable thereafter under this Agreement shall be
reduced by [***] percent [***] and

 

(b)

Any BII Confidential Information provided to MABVAX pursuant to this
Agreement will be promptly returned to BII or destroyed, as
requested by BII.

 

For the avoidance of doubt, except as set forth in
this Section 14.4.2, in
the event BII exercises the alternative remedy set forth below in
this Section 14.4.2(ii), all rights and obligations of BII under this
Agreement shall continue unaffected upon Default by MABVAX, unless
this Agreement is subsequently terminated by either Party pursuant
to another termination right under this Article 14, as applicable,
after BII exercises its rights pursuant to this Section
14.4.2(ii).

 

14.4.3

Rights Accruing Prior
to Expiration or Termination. Termination of this Agreement shall not relieve
the Parties of any obligation accruing prior to such termination.
Any termination of this Agreement shall be without prejudice to the
rights of either Party against the other accrued or accruing under
this Agreement or otherwise under Applicable Law prior to
termination, including the obligation to pay for any amounts that
accrued prior to the effective date of such termination. The
damages recoverable by the Non-Defaulting Party shall include all
attorneys’ fees reasonably incurred by such
party.

 

15.

MISCELLANEOUS

 

15.1

Applicability. The obligations
and restrictions contained in the provisions of this Agreement
shall apply to any and all consultants, subcontractors, agents,
independent contractors, or other individuals employed by a Party
to achieve performance under this Agreement.

 

15.2

Assignment. Neither this Agreement nor any right or
obligation hereunder may be assigned or otherwise transferred, in
whole or in part, by any Party without the prior express written
consent of the other Party, such consent not to be unreasonably
withheld or delayed; provided, however, that a Party may, without
the written consent of the others, assign this Agreement and its
rights and obligations hereunder (a) to an Affiliate provided that
the assigning Party shall remain liable for the performance of such
Affiliate, or (b) in connection with a merger or sale of all or
substantially all of the assets of the assigning Party to which the
subject matter of this Agreement relates, provided that the
assignee assumes all of the assigning Party’s obligations
under this Agreement. The terms and conditions of this Agreement
shall be binding upon and inure to the benefit of the permitted
successors and assigns of the Parties.

 

15.3

Counterparts. This Agreement may be executed simultaneously in
one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the
same instrument.

 

15.4

Covenants and
Agreements. All covenants and
agreements of the Parties are subject to all applicable statutes of
limitation, statutes of repose, and other similar defenses provided
by law or equity.

 

15.5

Entire
Agreement. This is the entire
Agreement, including all exhibits and schedules hereto, between the
Parties with respect to the subject matter hereof and supersedes
all prior representations, understanding and agreements between the
Parties with respect to the subject matter
hereof. This Agreement supersedes the Mutual Confidential
Disclosure Agreement between the Parties dated as of February 23,
2018 (the “CDA”). All confidential information
exchanged

 

 

-36-

 

 

 

 

between the Parties under the CDA shall be deemed
Confidential Information and shall be subject to the terms of
Article 9. No amendments, modifications, or supplements of this
Agreement or any of the other Transaction Documents shall be valid
or effective unless in writing and executed by duly authorized
representatives of the Parties thereto.

 

15.6

Schedules; Exhibits. All Schedules and Exhibits referred to in this
Agreement are hereby incorporated herein and made a part of this
Agreement. The fact that any document, asset, item, action, entity,
event, condition, claim, agreement, or other matter (collectively
“Matters”) is set forth or described or referred to in
any one or more Schedule or Exhibit will not be construed as a
representation, warranty, acknowledgement, or admission by any
Party or as evidence that such Matter is, or may at any time be, or
have been, material or in any way significant to the transactions
contemplated by this Agreement.

 

15.7

Force
Majeure. Neither Party shall be
liable for failure of or delay in performing obligations
set forth in this Agreement, nor shall
be deemed in breach of its obligations to the extent such failure
or delay is caused by or results from causes beyond the reasonable
control of the affected Party, including but not limited to fire,
flood, embargo, war, acts of war (whether war is declared or not),
acts of terrorism, insurrection, riot, civil commotion, acts of
God, or intervening acts, omissions or delays perpetrated by
governmental authority; provided however, that the Party failing or
delayed shall use all reasonable efforts to avoid or remove such causes of failure
or delay, and shall continue to perform hereunder with reasonable
dispatch whenever such causes are removed. Either Party shall
promptly provide the other Party with written notice of any failure
or delay to perform believed to be attributable to force
majeure.

 

15.8

Survival. Expiration
or termination of this Agreement for
any reason shall not relieve a Party from obligations and
duties which (i) by their nature extend beyond the
expiration or termination of this Agreement and (ii) that are expressly indicated to survive
the termination or expiration
of this Agreement. Without limiting the foregoing, the following
provisions shall expressly survive any such expiration or
termination: Articles [***] and Sections [***]

 

15.9

Further
Assurances. Each Party agrees
to execute, acknowledge and deliver such further instructions, and
to do all such other acts, as may be necessary or appropriate to
carry out the purposes and intent of this
Agreement.

 

15.10

Governing Law. This Agreement shall be construed, interpreted
and applied in accordance with the laws of the State New York,
excluding its choice of law and conflict of law
provisions.

 

15.11

Language. This Agreement has been prepared in the language
of English and such language
shall control its interpretation.

 

15.12

Notice. Any notices, requests, consent, and
Invoices given under this Agreement shall be in writing and shall
be deemed given (i) upon
the date of personal delivery or by facsimile transmission (receipt
verified), provided that such date is a Business Day and if
confirmed by delivery of the hardcopy original by overnight courier
or registered mail; or (ii)
[***] Business Day after dispatch by overnight courier; or
(iii) [***] Business Days
after dispatch of registered or certified mail (return receipt
requested), postage prepaid, in each of subsection (i), (ii) or (iii), above, to the Parties at the
following addresses (or at such other address for a Party as shall
be specified by like notice, provided, however, that notices of a
change of address shall be effective only upon receipt
thereof):

 

If to
MABVAX:

 

11535
Sorrento Valley Road Suite 400

 

 

-37-

 

 

 

San
Diego, California 92121

USA

[***]

 

With a copy to:

 

[***]

 

 

If to
BI:

 

Boehringer
Ingelheim International GmbH

[***]

Fax:
[***]

 

With a copy to:

 

[***]

 

15.13

Relationship of the
Parties. Nothing in this
Agreement is intended or shall be deemed to constitute a partner,
agency, employer-employee, or joint venture relationship between
the Parties. Except as expressly provided in this Agreement,
neither Party shall be deemed as authorized or empowered to act on
behalf of the other Party, nor to bind or commit the other Party in
any manner whatsoever, including but not limited to incurring
expenses, liabilities or obligations.

 

15.14

Severability.
If any provision of this Agreement is or becomes invalid, is
declared illegal by a court of
competent jurisdiction or is deemed unenforceable under then
Applicable Law during the Term, it is the intention of the Parties
that the remainder of this Agreement shall not be affected thereby,
provided that a Party’s rights under this Agreement are not
materially affected negatively. The Parties agree to renegotiate
any such provision or the application thereof in good faith in
order to provide a reasonably acceptable alternative to the
provision or application thereof that is invalid, illegal, or
unenforceable, it being the intent of the Parties that the basic
purposes of this Agreement are to be
effectuated.

 

15.15

Time for Taking
Action. Whenever periods of
time are referred to in this Agreement in days, calendar days are
intended unless stated otherwise. When the day or last day for
taking any action is not indicated by a specific date, but is
instead stated as, e.g. “[***] days after...”, and
the day or last day falls on a day other than a Business Day, then
the action may be timely taken on the next Business Day without
prejudice to the Party taking action.

 

15.16

Use of
Name. Neither Party shall
employ or use the name, trademarks and logo of the other Party in
any promotional materials or advertising without obtaining the
prior, express written consent of the other
Party.

 

15.17

Waiver. The terms and conditions of the Transaction
Documents may be waived only by a written instrument executed by
duly authorized representatives of the Party waiving compliance.
The failure of either Party at any time to require performance of
any provision hereof shall in no manner affect its rights at a
later time to enforce the same. No waiver by either Party of any
condition or term shall be deemed as a continuing waiver of such
condition or term or as a waiver of another condition or
term.

 

 

 

[Remainder of the Page Intentionally Left Blank]

 

 

-38-

 

IN WITNESS WHEREOF, THE PARTIES CAUSE THIS AGREEMENT TO BE EXECUTED
BY THEIR DULY AUTHORIZED REPRESENTATIVES:

 

	
 MabVax Therapeutics Holdings,
Inc.: 

	
 

	
 MabVax Therapeutics,
Inc.:

	
 

	
 

	
 

	
 By:__________________________________________

	
 

	
 By: 
_________________________________________

	
 

	
 

	
 

	
 Name:
_______________________________________

	
 

	
 Name: 
______________________________________

	
 

	
 

	
 

	
 Title:
________________________________________

	
 

	
 Title:
________________________________________

	
 

	
 

	
 

	
 Date:
________________________________________

	
 

	
 Date:
________________________________________

 

 

 

	

Boehringer Ingelheim International
GmbH:  

	
 

	

Boehringer Ingelheim International
GmbH: 

	
 

	
 

	
 

	
 ppa

 

 
By:__________________________________________

	
 

	
 ppa

 

  By: 
_________________________________________

	
 

	
 

	
 

	
 Name: [***]

	
 

	
  Name: [***] 

	
 

	
 

	(Authorized
Signatory)  
	
 Title: (Authorized
Signatory)  

	
 

	

	
 

	
 

	
 

	
 Date: July 04,
2018     

	
 

	
 Date: July 04,
2018     

 

 

 

 

 

Exhibits

Exhibit
A:

Form of Assignment
and Assumption Agreement

Exhibit
B:

Form of Bill of
Sale

Exhibit
C:

[***] Program
Patent Assignment

Exhibit
D:

Press
Release

 

Schedules:

 

Schedule 1.1.26:

Executive
Officials

Schedule 1.1.37:

Invoice
Requirements

Schedule 1.1.63:

[***] Program
Patents

Schedule 7.1.2:

Finder’s
Fee

 

 

 

 

-39-

 

Exhibit A

 

Assignment and Assumption Agreement

 

 

 

ASSIGNMENT AND ASSUMPTION AGREEMENT

 

 

This ASSIGNMENT AND ASSUMPTION AGREEMENT
(this “Assignment
Agreement”) is made as of July 5, 2018, by and between
MabVax Therapeutics Holdings,
Inc., a corporation organized and existing under the laws of
Delaware, USA, having its principal place of business at 11535
Sorrento Valley Road, Suite 400, San Diego, California 92121,
MabVax Therapeutics, Inc., a
corporation organized and existing under the laws of Delaware, USA,
having its principal place of business at 11535 Sorrento Valley
Road, Suite 400, San Diego, California 92121, (MabVax Therapeutics
Holdings, Inc., and MabVax Therapeutics, Inc. collectively referred
to as “Seller”) and Boehringer Ingelheim International
GmbH, having a
principal place of business at Binger Strasse 173, 55216 Ingelheim,
Germany, (“Buyer”).

 

WHEREAS, Seller and Buyer entered into
that certain Asset Purchase and License Agreement, dated as of July
4, 2018 (the “Asset
Purchase and License Agreement”); and

 

WHEREAS, pursuant to the Asset Purchase and License
Agreement, Seller has agreed to sell, convey, transfer, assign and
deliver to Buyer all of Seller’s right, title and interest
in, to and under the Acquired Assets, and Buyer has agreed to assume, timely perform and
discharge in accordance with their respective terms, the Assumed
Liabilities.

 

NOW THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, and intending to be legally bound hereby, it is
hereby agreed that:

 

1. Definitions. Unless otherwise
defined herein, all capitalized terms used in this Assignment
Agreement shall have the meanings set forth in the Asset Purchase
and License Agreement.

 

2. Assignment of Acquired Assets.
Effective as of the Closing Date, Seller hereby sells, conveys,
transfers, assigns and delivers to Buyer all of Seller’s
right, title and interest in, to and under the Acquired Assets free
and clear of Encumbrances, and Buyer hereby accepts such sale,
conveyance, transfer, assignment and delivery from Seller;
provided, however, that the
tangible Acquired Assets are being specifically assigned and
transferred pursuant to the Bill of Sale and any other Acquired
Assets that are specifically assigned or transferred pursuant to
any other Transaction Document are being specifically assigned and
transferred pursuant to such other Transaction Documents and, in
each case, shall not be assigned or transferred pursuant to this
Section
2.

 

3. Assumption of Assumed
Liabilities. Effective as of the Closing Date, Buyer hereby
assumes, accepts and agrees to timely perform and discharge in
accordance with their respective terms any and all of the Assumed
Liabilities; provided,
however, that any Assumed Liabilities that are specifically
assumed by Buyer pursuant to any other Transaction Document shall
not be assumed pursuant to this Section 3.

 

4. Subject to the Asset Purchase and
License Agreement. This Assignment Agreement is subject in
all respects to the terms and conditions of the Asset Purchase and
License Agreement, and all of the representations, warranties,
covenants and agreements of the Seller and Buyer contained therein,
all of which shall survive the execution and delivery of this
Assignment Agreement in accordance with the terms of the Asset
Purchase and License Agreement. Nothing in this Assignment
Agreement shall supersede, amend, alter or modify (nor shall it be
deemed or construed to supersede, amend, alter or modify) any of
the terms or conditions of the Asset Purchase and License Agreement
in any manner whatsoever. In the event of any conflict between the
provisions of this Assignment Agreement and the provisions of the
Asset Purchase and License Agreement, the provisions of the Asset
Purchase and License Agreement shall control and
prevail.

 

5. Representations and Warranties.
Except as set forth in the Asset Purchase and License Agreement,
the Seller makes no representations or warranties, express or
implied, with respect to the Acquired Assets or the Assumed
Liabilities, and the Seller expressly disclaims any implied
warranties.

 

6. Successors and Assigns. Except
as otherwise set forth in Section 15.2 of the Asset Purchase and
License Agreement, no assignment of this Assignment Agreement or of
any rights or obligations hereunder may be made by Seller or Buyer,
directly or indirectly (by operation of law or otherwise), without
the prior written consent of the other party hereto and any
attempted assignment without the required consents shall be null
and void and without any legal effect This Assignment Agreement
shall be binding upon and inure to the benefit of the parties and
their respective permitted successors and assigns.

 

7. Counterparts. This Assignment
Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

 

8. Amendments; Waiver. This
Assignment Agreement may be amended, supplemented or modified in
whole or in part if, but only if, such amendment, supplement or
modification is in writing and is signed by each party and specific
reference to this Assignment Agreement is made. Any provision of
this Assignment Agreement may be waived if, but only if, such
waiver is in writing and is signed by the party or parties against
whom enforcement of any such waiver is sought and specific
reference to this Assignment Agreement is made. The waiver by any
party hereto of a breach of any provision of this Assignment
Agreement shall not operate or be construed as a further or
continuing waiver of such breach or as a waiver of any other or
subsequent breach. No failure on the part of any party to exercise,
and no delay in exercising, any right, power or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial
exercise of such right, power or remedy by such party preclude any
other or further exercise thereof or the exercise of any other
right, power or remedy.

 

9. Severability. If any provision
of this Assignment Agreement is held invalid or unenforceable by
any court of competent jurisdiction, the other provisions of this
Assignment Agreement shall remain in full force and effect. The
parties further agree that if any provision contained herein is, to
any extent, held invalid or unenforceable in any respect under the
Applicable Laws governing this Assignment Agreement, they shall
take any actions necessary to render the remaining provisions of
this Assignment Agreement valid and enforceable to the fullest
extent permitted by Applicable Law and, to the extent necessary,
shall amend or otherwise modify this Assignment Agreement to
replace any provision contained herein that is held invalid or
unenforceable with a valid and enforceable provision giving effect
to the intent of the parties to the greatest extent legally
permissible.

 

10. Governing Law; Jurisdiction.
This Agreement shall be construed, interpreted and applied in
accordance with the laws of the State New York, excluding its
choice of law and conflict of law provisions.

 

SIGNATURE PAGES FOLLOW

 

 

IN WITNESS WHEREOF, the parties hereto
have caused this Assignment Agreement to be executed by their
respective officers thereunto duly authorized as of the date first
above written.

 

 

	
 

	

Seller: 

 

 

 

 

	
 

	
 

	

 

MabVax Therapeutics Holdings, Inc.

 

	
 

	
 

	

By:

	
 

	
 

	

 

Name:

	
 

	
 

	

 

Title:

	
 

	
 

	

 

Date:

	
 

	
 

	
 

 

 

	

MabVax
Therapeutics, Inc.

 

	
 

	
 

	

By:

	
 

	
 

	
 

	

 

Name:

	
 

	
 

	
 

	

 

Title:

	
 

	
 

	
 

	

 

Date:

	
 

	
 

 

 

 

 

-40-

 

 

	
 

	

Buyer:

 

 

 

	
 

	
 

	

 

Boehringer Ingelheim International GmbH

 

ppa.

 

	
 

	
 

	

By:

	
 

	
 

	

 

Name:

	
 

	
 

	

 

Title:

	

 

(Authorized
Signatory)

	
 

	

 

Date:

	
 

	
 

 

 

	
 

	
 

	
 

	
 

	

Boehringer Ingelheim International GmbH

 

ppa.

 

	
 

	
 

	

By:

	
 

	
 

	

 

Name:

	
 

	
 

	

 

Title:

	

(Authorized
Signatory)

	
 

	

 

Date:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

[Signature Page Exhibit A to Asset Purchase and License Agreement
between MabVax Therapeutics Holdings Inc., MabVax Therapeutics
Inc., and Boehringer Ingelheim International GmbH, dated July 4,
2018]

 

 

 

-41-

 

 

 

Exhibit B

 

Bill of Sale

 

BILL OF SALE

 

This BILL OF SALE (this
“Bill of
Sale”) is made as of July 5, 2018, by and between
MabVax Therapeutics Holdings,
Inc., a corporation organized and existing under the laws of
Delaware, USA, having its principal place of business at 11535
Sorrento Valley Road, Suite 400, San Diego, California 92121,
MabVax Therapeutics, Inc., a
corporation organized and existing under the laws of Delaware, USA,
having its principal place of business at 11535 Sorrento Valley
Road, Suite 400, San Diego, California 92121, (MabVax Therapeutics
Holdings, Inc., and MabVax Therapeutics, Inc. collectively referred
to as “Seller”) and Boehringer
Ingelheim International GmbH, having a principal place of business
at Binger Strasse 173, 55216 Ingelheim, Germany,
(“Buyer”).

 

WHEREAS, Seller and Buyer entered into
that certain Asset Purchase and License Agreement, dated as of July
4, 2018 (the “Asset
Purchase and License Agreement”); and

 

WHEREAS, pursuant to the Asset Purchase
and License Agreement, Seller has agreed to sell, convey, transfer,
assign and deliver to Buyer all of the Acquired Assets, and Buyer
has agreed to purchase the Acquired Assets from
Seller.

 

NOW THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, and intending to be legally bound hereby, it is
hereby agreed that:

 

1. Definitions. Unless otherwise
defined herein, all capitalized terms used in this Bill of Sale
shall have the meanings set forth in the Asset Purchase and License
Agreement.

 

2. Transfer of Assets. Effective
as of the Closing Date, Seller hereby sells, conveys, transfers,
assigns and delivers to Buyer all of Seller’s right, title
and interest in, to and under the tangible Acquired Assets free and
clear of Encumbrances, and Buyer hereby purchases such tangible
Acquired Assets and accepts such conveyance, transfer, assignment
and delivery; provided,
however, that any Acquired Assets that are specifically
assigned or transferred pursuant to any other Transaction Document
shall not be assigned or transferred pursuant to this Section 2.

 

3. Subject to the Asset Purchase and
License Agreement. This Bill of Sale is subject in all
respects to the terms and conditions of the Asset Purchase and
License Agreement, and all of the representations, warranties,
covenants and agreements of the Seller and Buyer contained therein,
all of which shall survive the execution and delivery of this Bill
of Sale in accordance with the terms of the Asset Purchase and
License Agreement. The Acquired Assets are being delivered for good
and valuable consideration, pursuant to the terms and conditions
contained in the Asset Purchase and License Agreement. Nothing
contained herein shall supersede, amend, alter or modify (nor shall
it be deemed or construed to supersede, amend, alter or modify) any
of the terms or conditions of the Asset Purchase and License
Agreement in any manner whatsoever. In the event of any conflict
between the provisions of this Bill of Sale and the provisions of
the Asset Purchase and License Agreement, the provisions of the
Asset Purchase and License Agreement shall control and
prevail.

 

4. Representations
and Warranties. Except as set forth in the Asset Purchase
and License Agreement, Seller makes no representations or
warranties, express or implied, with respect to the Acquired
Assets, and Seller expressly disclaims any implied
warranties.

 

5. Successors and Assigns. Except
as otherwise set forth in Section 15.2 of the Asset Purchase and
License Agreement, no assignment of this Bill of Sale or of any
rights or obligations hereunder may be made by Seller or Buyer,
directly or indirectly (by operation of law or otherwise), without
the prior written consent of the other party hereto and any
attempted assignment without the required consents shall be null
and void and without any legal effect This Bill of Sale shall be
binding upon and inure to the benefit of the parties and their
respective permitted successors and assigns.

 

6. Counterparts. This Bill of Sale
may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one
and the same instrument.

 

7. Amendments; Waiver. This Bill
of Sale may be amended, supplemented or modified in whole or in
part if, but only if, such amendment, supplement or modification is
in writing and is signed by each party and specific reference to
this Bill of Sale is made. Any provision of this Bill of Sale may
be waived if, but only if, such waiver is in writing and is signed
by the party or parties against whom enforcement of any such waiver
is sought and specific reference to this Bill of Sale is made. The
waiver by any party hereto of a breach of any provision of this
Bill of Sale shall not operate or be construed as a further or
continuing waiver of such breach or as a waiver of any other or
subsequent breach. No failure on the part of any party to exercise,
and no delay in exercising, any right, power or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial
exercise of such right, power or remedy by such party preclude any
other or further exercise thereof or the exercise of any other
right, power or remedy.

 

8. Severability. If any provision
of this Bill of Sale is held invalid or unenforceable by any court
of competent jurisdiction, the other provisions of this Bill of
Sale shall remain in full force and effect. The parties further
agree that if any provision contained herein is, to any extent,
held invalid or unenforceable in any respect under the Applicable
Laws governing this Bill of Sale, they shall take any actions
necessary to render the remaining provisions of this Bill of Sale
valid and enforceable to the fullest extent permitted by Applicable
Law and, to the extent necessary, shall amend or otherwise modify
this Bill of Sale to replace any provision contained herein that is
held invalid or unenforceable with a valid and enforceable
provision giving effect to the intent of the parties to the
greatest extent legally permissible.

 

9. Governing Law; Jurisdiction.
This Agreement shall be construed, interpreted and applied in
accordance with the laws of the State New York, excluding its
choice of law and conflict of law provisions.

 

 

 

SIGNATURE PAGES FOLLOW

 

 

 

 

-42-

 

  

 

 
STRICTLY
CONFIDENTIAL

  

 

 

IN WITNESS WHEREOF, the parties hereto
have caused this Bill of Sale to be executed by their respective
officers thereunto duly authorized as of the date first above
written.

 

 

	
 

	
Seller:

 

 

 

	
 

	
 

 

 

 

	

 

 

MabVax Therapeutics Holdings, Inc.

 

	
 

	
 

	

By:

	
 

	
 

	

 

Name:

	
 

	
 

	

 

Title:

	
 

	
 

	

 

Date:

	
 

	
 

	
 

	

 

 

MabVax
Therapeutics, Inc. 

 

	
 

	
 

	

By:

	
 

	
 

	
 

	

 

Name:

	
 

	
 

	
 

	

 

Title:

	
 

	
 

	
 

	

 

Date:

	
 

	
 

 

 

 

 

 

 

-43-

 

 

  

 

 
  STRICTLY
CONFIDENTIAL

  

 

 

	
 

	

Buyer: 

 

 

	
 

	
 

	

 

 

Boehringer Ingelheim International GmbH

ppa.

 

	
 

	
 

	

By:

	
 

	
 

	

 

Name:

	
 

	
 

	

 

Title:

	

 

(Authorized
Signatory)

	
 

	

 

Date:

	
 

	
 

 

 

	
 

	
 

	
 

	
 

	

Boehringer Ingelheim International GmbH

ppa.

 

	
 

	
 

 

	

By:

	
 

	
 

	

 

Name:

	
 

	
 

	

 

Title:

	

 

(Authorized
Signatory)

	
 

	

 

Date:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

[Signature Page Exhibit B to Asset Purchase and License Agreement
between MabVax Therapeutics Holdings Inc., MabVax Therapeutics
Inc., and Boehringer Ingelheim International GmbH, dated July 4,
2018]

 

 

 

 

 

-44-

                                                                                                                                 

 

 

STRICTLY CONFIDENTIAL   

Exhibit C

 

 

[***] Program Patent Assignment

 

 

 

Pursuant
to the Asset Purchase and License Agreement by and between
Boehringer Ingelheim International
GmbH, Binger Strasse 173, 55216 Ingelheim, Germany
(“BII”),
MabVax Therapeutics Holdings,
Inc., a corporation organized
and existing under the laws of Delaware, USA, having its principal
place of business at 11535 Sorrento Valley Road, Suite 400, San
Diego, California 92121, MabVax
Therapeutics Inc., a corporation organized and existing
under the laws of Delaware, USA, having its principal place of
business at 11535 Sorrento Valley Road, Suite 400, San Diego,
California 92121 (MabVax
Therapeutics Holdings, Inc. and MabVax Therapeutics Inc.
collectively referred to as “MABVAX”), and regarding
MABVAX ́s assets relating to the [***] Program, effective July
4, 2018 (the “Agreement”), for good and valuable
consideration to them paid by BII, invoiced as of this Closing
Date, MABVAX hereby assigns as of the Closing Date to BII the full
and entire property, right and title in the [***] Program Patents
listed in Schedule 1.1.63 of the Agreement free and clear of
Encumbrances, a copy of which is attached hereto for reference, so
that BII may enjoy the full benefits and all the rights resulting
therefrom without restriction.

 

Subject
to the Agreement, MABVAX hereby authorizes BII to take any and all
actions in connection with the Patents, in BII ́s own name and
at BII ́s sole expense.

 

 

MABVAX Therapeutics Holdings, Inc.

 

By:              

_____________________________

 

Name:

_____________________________

 

Title:              

_____________________________

 

Date:              

_____________________________

 

MABVAX Therapeutics, Inc.

 

By:              

_____________________________

 

Name:

_____________________________

 

Title:              

_____________________________

 

Date:              

_____________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-45-

 

Boehringer Ingelheim International GmbH

 

ppa.

 

By:              

_____________________________

 

Name:

 

Title:              

(Authorized
Signatory)

 

Date:

 

 

 

Boehringer Ingelheim International GmbH

 

ppa.

 

By:              

_____________________________

 

Name:

 

Title:              

(Authorized
Signatory)

 

Date:

 

 

 

 

 

[Signature Page Exhibit C to Asset Purchase and License Agreement
between MabVax Therapeutics Holdings Inc., MabVax Therapeutics
Inc., and Boehringer Ingelheim International GmbH, dated July 4,
2018]

 

 

 

-46-

 

 

 

Exhibit D

 

Press Release

 

MabVax Therapeutics and Boehringer Ingelheim Sign Asset Purchase
and License Agreement and Related Agreements for an Antibody
Development Program Targeting Multiple Solid Tumor
Cancers

 

 

SAN
DIEGO, CA – July
9, 2018 – MabVax
Therapeutics Holdings, Inc. (Nasdaq: MBVX), a clinical-stage
oncology drug development company and Boehringer Ingelheim today
announced they have signed an asset acquisition and related
agreements centered on MabVax’s program targeting a glycan
commonly overexpressed on multiple solid tumor cancers. Boehringer
Ingelheim has acquired all
rights in and to the program.

 

MabVax
will receive a total of US $11 million in upfront and near term
milestones as well as downstream regulatory milestone payments plus
further earn-out payments. The asset acquisition is separate and
distinct from other programs under development at MabVax, enabling
MabVax to retain all rights to its lead HuMab-5B1antibody program
which is in Phase 1 clinical trials as a therapeutic product and as
a diagnostic product, as well as other antibody discovery programs
from the Company’s rich antibody discovery portfolio
targeting other cancer antigens.

 

MabVax
discovered the antibody series at the center of this transaction
from biological samples, originally from patients who were
vaccinated against their solid tumors with a glycan
antigen-containing vaccine. The discovery of fully human antibodies
directly from vaccinated cancer patients has potential advantages
which include greater specificity and reduced toxicities. MabVax
completed and has reported on early preclinical development
activities to establish the utility of the program.

 

“We
are very pleased to have Boehringer Ingelheim as a major industry
partner to further develop one of our preclinical antibody assets
based on our proprietary HuMab technology,” said David
Hansen, President and CEO of MabVax Therapeutics. “This agreement with Boehringer
Ingelheim recognizes the value of our innovative approach to
discovering novel antibodies to diagnose and treat cancer.
We have been committed since the founding of the Company to
discovering and developing unique fully human antibodies to
diagnose and treat patients with cancers where there remain
significant unmet medical needs.”

 

About MabVax:

 

MabVax Therapeutics Holdings, Inc. is a clinical-stage
biotechnology company with a fully human antibody discovery
platform focused on the rapid translation into clinical development
of products to address unmet medical needs in the treatment of
cancer. Our antibody MVT-5873, is a fully human IgG1 monoclonal
antibody (mAb) that targets sialyl Lewis A (sLea), an epitope on
CA19-9, and is currently in Phase 1 clinical trials as a
therapeutic agent for patients with pancreatic cancer and other
CA19-9 positive tumors. CA19-9 is expressed in over 90% of
pancreatic cancers and in other diseases including small cell lung
and GI cancers. CA19-9 plays an important role in tumor adhesion
and metastasis, and is a marker of an aggressive cancer phenotype.
CA19-9 serum levels are considered a valuable adjunct in the
diagnosis, prognosis and treatment monitoring of pancreatic cancer.
With our collaborators including Memorial Sloan Kettering Cancer
Center, Sarah Cannon Research Institute, Honor Health and Imaging
Endpoints, we have treated over 56 patients with either our
therapeutic antibody designated as MVT-5873 or our PET imaging
diagnostic product designated as MVT-2163 in Phase 1 clinical
studies, and demonstrated early safety and specificity for the
target. Patient dosing is continuing in Phase 1 clinical studies of
MVT-5873 in combination with nab-paclitaxel and gemcitabine to
patients newly diagnosed with CA19-9 positive pancreatic cancer,
and for the Company's radioimmunotherapy product MVT-1075. Other
discovery programs at MabVax are in preclinical development. For
additional information, please visit the Company's website,
www.mabvax.com.

 

Forward Looking Statements

 

This
press release contains “forward-looking statements”
regarding matters that are not historical facts, including
statements relating to the asset acquisition and related agreements
centered on the undisclosed program, and what programs remain at
MabVax that continue to be under development in the Company’s
development pipeline. We have no assurance that all of the product
development pipeline will be fully developed by the Company.
Because such statements are subject to risks and uncertainties,
actual results may differ materially from those expressed or
implied by such forward-looking statements. Words such as
"anticipates," "plans," "expects," "intends," "will," "potential,"
“hope” and similar expressions are intended to identify
forward-looking statements. These forward-looking statements are
based upon current expectations of the Company and involve
assumptions that may never materialize or may prove to be
incorrect. Actual results and the timing of events could differ
materially from those anticipated in such forward-looking
statements as a result of various risks and uncertainties. Detailed
information regarding factors that may cause actual results to
differ materially from the results expressed or implied by
statements in this press release relating to the Company may be
found in the Company’s periodic filings with the Securities
and Exchange Commission, including the factors described in the
section entitled “Risk Factors” in its annual report on
Form 10-K for the fiscal year ended December 31, 2017, as amended
and supplemented from time to time and the Company's Quarter Reports on Form
10-Q and other filings submitted by the Company to the SEC, copies
of which may be obtained from the SEC's website at
www.sec.gov. The parties do not undertake
any obligation to update forward-looking statements contained in
this press release.

 

Investor Contact:

Email: MabVaxIR@mabvax.com

 

Media Contact:

Russo
Partners LLC

Phone:
212-845-4272

Email:
travis.kruse@russopartnersllc.com

 

 

-47-

 

 

Schedule 1.1.26

 

Executive Official

 

 

 

1.            

For MABVAX:
[***]

 

 

 

 

 

2.            

For BII:
[***]

 

  

 

 

 

 

-48-

 

 

Schedule
1.1.37

Invoice Requirements

 

Invoices
to be sent to:

 

Boehringer
Ingelheim International GmbH

[***]

 

 

The
invoice must be in accordance to the actual Tax Law.

 

 

 

 

-49-

 

 

 

Schedule 1.1.63

 

[***] Program Patents

 

 

	

COUNTRY

	

SERIAL NO.

	

Attorney Docket NO.

	

ASSIGNEE

	

INVENTORS

	

PRIORITY FILING DATE

	

[***]

	

[***]

	

[***]

	

[***]

	

[***]

	

[***]

	

[***]

	

[***]

	

[***]

	

[***]

	

[***]

	

[***]

	

[***]

	

[***]

	

[***]

	

[***]

	

[***]

	

[***]

 

 

 

 

 

-50-

 

 

Schedule 7.1.2

 

Finder’s Fee

 

 

[***]

 

 

-51-

 

 

 

Schedule 11.4

 

S[***] Agreement

 

 

 

AGREEMENT

 

 

 

by and between

 

 

 

 

BOEHRINGER INGELHEIM INTERNATIONAL GMBH

 

 

and

 

 

[***]

 

 

and

 

 

MABVAX THERAPEUTICS HOLDINGS, INC.

 

and

 

 

MABVAX THERAPEUTICS, INC.

 

 

 

 

 

 

 

BII Contract No:[***]

 

 

-52-

 

 

 

This Agreement (the “Agreement”) is made on July 4, 2018 (the
“Effective
Date”) under the terms
and conditions herein by and between Boehringer Ingelheim
International GmbH having a
principal place of business at Binger Strasse 173, 55216 Ingelheim,
Germany, (hereinafter referred to as “BII[***] MabVax Therapeutics Holdings,
Inc., a corporation organized
and existing under the laws of Delaware, USA, having its principal
place of business at 11535 Sorrento Valley Road, Suite 400, San
Diego, California 92121, and MabVax Therapeutics,
Inc., a corporation organized
and existing under the laws of Delaware, USA, having its principal
place of business at 11535 Sorrento Valley Road, Suite 400, San
Diego, California 92121, (MabVax Therapeutics Holdings, Inc. and
MabVax Therapeutics, Inc. hereinafter collectively referred to as
“MabVax”). BII, [***] and MabVax are
referred to individually as a "Party" and collectively as the
"Parties."

 

 

WHEREAS, BII and MabVax have entered into an Asset Purchase
and License Agreement on July 4, 2018 (the “BII/MabVax
Agreement”), attached hereto in Appendix 1.

 

WHEREAS, all terms defined in this
Agreement are used with those meanings in this Agreement.
Capitalized terms not defined in this Agreement are used with the
meanings as defined in the BII/MabVax Agreement.
 

WHEREAS, under the BII/MabVax Agreement, MabVax sells,
conveys, assigns and transfers to BII, and BII acquires from
MabVax, certain of MabVax’s assets solely and exclusively
related to MabVax’s [***] Program, as further defined in the
BII/MabVax Agreement as Acquired Assets.

 

WHEREAS, MabVax Therapeutics Inc. and [***] have entered into [***] agreement dated [***] (the “[***] Agreement”).
[***]

 

NOW, THEREFORE, the Parties
hereby agree as follows:

 

1.

MabVax agrees and acknowledges that during the
term of the [***] Agreement, as amended, MabVax shall
continue to be responsible for all of its obligations therein,
including but not limited to any and all payment obligations due by
MabVax to [***]
(“[***]
Payments”).

 

2.

BII agrees that in the event that the [***]
Agreement expires or is terminated for any reason, including but
not limited to bankruptcy or liquidation of MabVax and subject to
Section 3 below, BII’s obligations to MabVax Therapeutics
Holdings Inc. under the following Sections of the BII/MabVax
Agreement shall be
[***]:

 

a.

Section
5.3: All Milestone Payments (as
defined in the BII/MabVax Agreement) which would otherwise have been owed to
MabVax Therapeutics Holdings Inc., had the [***] Agreement not been
terminated, shall be paid directly to [***] in accordance with
Sections 5.3 of the BII/MabVax Agreement;

 

 

b.

Section
5.4: All Earn-Out
Payments (as defined in
the BII/MabVax Agreement) which
would otherwise have been owed to MabVax Therapeutics Holdings
Inc., had the [***] Agreement not been terminated, shall be paid
directly to [***] in accordance with Section 5.4 of the BII/MabVax Agreement during the term of the Earn-Out Period (as defined
in the BII/MabVax Agreement).

 

c.

Section
5.4.5: BII shall provide [***]
with the written reports as described in Section 5.4.5 of
the BII/MabVax Agreement.

 

 

d.

Sections 5.5 –
5.9: All payment obligations
from BII to [***] in subsections (a) and (b) hereinabove shall be
made in accordance with Sections 5.5-5.9 of the BII/MabVax
Agreement.

 

3.

Notwithstanding anything to the contrary, BII,
[***] and MabVax agree that the payments by BII to [***] under
Section 2 above shall not be due if such payment (i) is prohibited
by Applicable Law, including without limitation insolvency law,
(ii) has already been made to MabVax Therapeutics Holdings Inc. in
accordance with the BII/MabVax Agreement, and/or (iii) will have to be made to
MabVax Therapeutics Holdings Inc. in accordance with Applicable
Law, it being understood that in case of (i) or (iii) BII shall
make the payments due under the BII/MabVax Agreement to MabVax Therapeutics Holdings Inc., or
a trustee, if applicable, in accordance with the terms and
conditions of the BII/MabVax Agreement and Applicable Law.

 

4.

For avoidance of doubt, [***] is not party to
the BII/MabVax Agreement and
shall have no liabilities to BII.

 

5.

[***]
agrees that [***] will not assert against BII, its Affiliates,
Sublicensees or its or their distributors or independent
contractors any claims for infringement of those [***] Rights
[***], based on the research, development, manufacture, use, sale,
offer for sale or license, or import of any BII Product [***], so
long as BII pays the Milestone Payments and the Earn-Out Payments
in accordance with the above Section 2.

 

6.

This Agreement shall be construed, interpreted and applied in
accordance with the laws of the State New York, excluding its
choice of law and conflict of law provisions. Any dispute which has
not been resolved amicably by BII, MabVax and [***], as applicable,
shall be escalated to the applicable executive official level
employee of each BII, [***], and/or MabVax. Said employees shall
use further good faith efforts to reach resolution on such dispute
within [***] days.

 

7.

If
BII, MabVax and/or [***], as applicable do not reach resolution on
such dispute within such [***] days period, then BII, MabVax and/or
[***], as applicable, agree to first try, in good faith, to settle
the dispute by mediation, administered by the American Arbitration
Association (the “AAA”) under its Commercial Mediation
Procedures, before resorting to the arbitration procedure set forth
in Section 8 below. BII, MabVax and/or [***], as applicable, may
initiate mediation upon written notice to the other party(ies) and
the AAA ("Mediation Notice Date"), whereupon the respective parties
shall be obligated to engage in a mediation proceeding. The
mediation shall commence within [***] days of the Mediation Notice
Date. The mediation shall be conducted by a single mediator in New
York, New York. The party requesting mediation shall designate two
(2) or more nominees for mediator in its notice. The other
party(ies) may accept one of the nominees or may designate its own
nominees by notice addressed to the AAA and to the requesting
party. If within [***] days following the Mediation Notice Date,
the parties to the dispute have not selected a mutually acceptable
mediator, a mediator shall be appointed by the AAA according to the
Commercial Mediation Rules. The mediator shall attempt to
facilitate a negotiated settlement of the dispute, but shall have
no authority to impose any settlement terms on the parties to the
dispute. The expenses of the mediation shall be borne equally by
the parties to such mediation, but each party shall be responsible
for its own counsel fees and expenses. BII, MabVax and [***]
acknowledge that the existence, content, or results of a dispute
under such mediation shall not be disclosed without the prior
written consent of BII, MabVax, and/[***], as
applicable.

 

8.

Any dispute which has not been resolved by the
procedures set forth in Sections 6 or 7 above shall be finally
resolved by binding arbitration in accordance with the ICC
arbitration rules by three (3) arbitrators. Place of such arbitration shall be New York, New
York. The language of the arbitration proceeding shall be English.
Except to the extent necessary to confirm or obtain judgment on an
award or decision or as may be required by Applicable Law, neither
BII, MabVax and/or [***], as applicable, may, and BII, MabVax
and/or [***] shall instruct the arbitrators not to, disclose the
existence, content, or results of a dispute without the prior
written consent of the parties to such
arbitration.

 

9.

[***]. No
disclosure of the existence, and/or the terms, of this Agreement
may be made by either Party, and no Party shall use the name,
trademark, trade name or logo of the other Party, its affiliates or
their respective employees in any publicity, promotion, news
release or disclosure relating to this Agreement or its subject
matter, without the prior express written permission of the other
Party, except as may be required by applicable law or securities
exchange regulations.

 

10.

This is the entire
Agreement, including all exhibits and schedules hereto, between the
Parties with respect to the subject matter hereof and supersedes
all prior representations, understanding and agreements between the
Parties with respect to the subject matter hereof.

 

11.

If any provision of
this Agreement is or becomes invalid, is declared illegal by a
court of competent jurisdiction or is deemed unenforceable under
then applicable law during the Term, it is the intention of the
parties that the remainder of this Agreement shall not be affected
thereby, provided that a party’s rights under this Agreement
are not materially affected negatively. The Parties agree to
renegotiate any such provision or the application thereof in good
faith in order to provide a reasonably acceptable alternative to
the provision or application thereof that is invalid, illegal, or
unenforceable, it being the intent of the parties that the basic
purposes of this Agreement are to be effectuated.

 

12.

This Agreement may
be executed simultaneously in one or more counterparts, each of
which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

 

 

 

[Remainder of the Page Intentionally Left Blank]

 

 

-53-

 

 

IN WITNESS WHEREOF, THE PARTIES CAUSE THIS AGREEMENT TO BE EXECUTED
BY THEIR DULY AUTHORIZED REPRESENTATIVES:

 

 

 

 

Ingelheim,__________________________

 

(date)

 

 

 

Boehringer Ingelheim International GmbH

 

 

 

ppa.                                                      

ppa.

 

   

 

_______________________                 
_______________________

 

Name:                                                    
Name: 

Authorized
Signatory                             
Authorized Signatory

 

 

 

Date:
__________________                  
Date: __________________

 

 

 

 

 

 

	
 

 

[Place],__________________________

(date)

 

 

MabVax Therapeutics Holdings Inc.

  

 

 

_______________________

Name:

Authorized
Signatory

 

 

 

 

 

[Place],__________________________

(date)

 

 

MabVax Therapeutics Inc.

 

 

 

_______________________

Name:

Authorized
Signatory

	
 

 

[Place],
______________________

(date)

 

 

[***]

 

   

 

 

_______________________

Name:

Authorized
Signatory

 

 

 

 

-54-

 

 

 

Appendix 1

Asset Purchase and License Agreement

 

 

 

 

-55-Exhibit

Certain identified information in this Exhibit, indicated by the mark “[***],” has been excluded because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

Exhibit 10.22
 
EXECUTION COPY

PRIVATE LABEL BANKING PROGRAM AGREEMENT

This PRIVATE LABEL BANKING PROGRAM AGREEMENT (together with any exhibits, schedules, and attachments, collectively, this “Agreement” or the “Agreement”) is dated this 24th day of February , 2017 (the “Effective Date”) and is by and between T- MOBILE USA, INC., a corporation organized and existing under the laws of Delaware, with offices located at 12920 SE 38th Street, Bellevue, Washington 98006-1250 (“Company”), and CUSTOMERS BANK, a Pennsylvania state-chartered banking institution with a mailing address of 99 Bridge Street, Phoenixville, Pennsylvania 19460 (“Bank”). Company and Bank are collectively referred to as the “Parties” and are individually referred to as a “Party.”

RECITALS

		
	(a)
	Bank is a Pennsylvania chartered, FDIC-insured banking institution and member of the Federal Reserve System that, among other things, offers a variety of banking services to consumers.

		
	(b)
	Company is a wireless telecommunications company, which provides communications and other services and products to consumers.

		
	(c)
	Bank and Company desire to collaborate in developing, marketing, and offering the T- Mobile Financial Services to Company’s customers, and Bank desires to provide the T- Mobile Financial Services to Company’s customers (collectively, the“Program”).

TERMS OF AGREEMENT

NOW, THEREFORE, in consideration of the mutual covenants and conditions hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto, intending to be legally bound, agree as follows:

1.CERTAIN DEFINITIONS. Capitalized terms used herein shall have the meanings ascribed to such terms in this Section 1 or in the body of this Agreement and such meanings shall be applicable to both the singular and the plural forms of such terms.

(a)    “Account Agreement” means, collectively, the agreement(s) between Bank and a Customer governing the terms and use of a T-Mobile Customer Account or a Card and all related disclosures as may be required by Applicable Law or deemed necessary by Bank.

(b)    “Account Terms and Conditions” has the meaning ascribed to such term in Section 3.1(a).

(c)    “Active T-Mobile Customer” means (1) a T-Mobile Customer that has made a deposit or withdrawal to a T-Mobile Customer Account in the previous three (3) months; or (2) has an open account with a balance.

		
	(d)
	“Advisory Board” has the meaning ascribed to such term in Section 15.4(c).

1

Certain identified information in this Exhibit, indicated by the mark “[***],” has been excluded because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

EXECUTION COPY

		
	(e)
	“AML Program” has the meaning ascribed to such term in Section 3.2.

(f)    “Applicable Law” means, as and to the extent applicable to a Party, (i) any international, federal, state, or local law, (ii) any regulation, rule, supervisory guidance, guideline, directive, or interpretation promulgated or published by any Regulatory Authority, or (iii) any order issued by a court having jurisdiction over a Party related to the issuance, sale, authorization or usage of the Cards or services to be provided under this Agreement.

		
	(g)
	“Approval Rate” has the meaning ascribed to such term in Section 2(a) of Exhibit

D.

		
	(h)
	“ATM” means automated teller machine.

		
	(i)
	“Auditing Party” has the meaning ascribed to such term in Section 5.1(e).

		
	(j)
	“Bank FinTech” has the meaning ascribed to such term in Section 14.1.

		
	(k)
	“Bank Indemnified Party” has the meaning ascribed to such term in Section

15.1(a).

(l)    “Bank Marks” means the Bank’s Marks set forth in Exhibit 14.7, as such Marks may be modified or updated from time to time by Bank.

		
	(m)
	“Bank User Interface” has the meaning ascribed to such term in Section 14.1.

		
	(n)
	“Behavior Data” has the meaning ascribed to such term in Section 11.3.

		
	(o)
	“Beta Launch Date” has the meaning ascribed to such term in Section 6.1.

		
	(p)
	“Beta Program” has the meaning ascribed to such term in Section 10(e) of Exhibit

D.

		
	(q)
	“Beta Version” has the meaning ascribed to such term in Section 10(e) of Exhibit

D.

		
	(r)
	"Brokered Deposits" has the meaning ascribed to such term in Section 8.1(m).

		
	(s)
	“Card” shall mean a debit card, physical or virtual, or other access device issued

by Bank to a T-Mobile Customer to allow the T-Mobile Customer to access the T-Mobile Customer Account.

(t)    “Charges” means any and all charges related to services assessed against the T- Mobile Customer Accounts that are set by T-Mobile and administered by Bank.

		
	(u)
	“Claim” has the meaning ascribed to such term in Section 15.1(a).

(v)    “Company Indemnified Party” has the meaning ascribed to such term in Section 15.1(b).

2

Certain identified information in this Exhibit, indicated by the mark “[***],” has been excluded because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

EXECUTION COPY

(w)    “Company Marks” means the Marks of Company set forth in Exhibit 0 and the Marks of Company for the Program, in each case, as such Marks may be modified or updated from time to time by Company.

(x)    “Company Specific User Interface” has the meaning ascribed to such term in Section 14.2.

		
	(y)
	“Confidential Information” has the meaning ascribed to such term in Section 11.1.

(z)    “Control” means the occurrence of one or more of the following events: (i) a purchase, lease, or other acquisition of all or substantially all of the assets of a party; (ii) a purchase or other acquisition (including by way of merger, consolidation, share exchange, or otherwise) of securities representing fifty percent (50%) or more of the voting power of a party; or (iii) possession, directly or indirectly, of power to direct or cause the direction of management or policies (whether through ownership of securities or partnership or other ownership interests, by contract, or otherwise) of a party.

(aa)   “Customer Activation Process” has the meaning ascribed to such term in Section 10(d) of Exhibit D.

(bb)   “Deposit Account” shall have the meaning set forth in Section 3(1) of the Federal Deposit Insurance Act, 12 U.S.C. § 1813(1), including, without limitation, demand deposit accounts, certificates of deposit, savings accounts, NOW accounts, individual retirement accounts and, to the extent applicable, omnibus deposit accounts and their subaccounts (as described in Federal Deposit Insurance Corporation General Counsel’s Opinion No. 8 – Insurability of Funds Underlying Stored Value Cards and Other Nontraditional Access Mechanisms).

(cc)   “Digital Banking Platform” has the meaning ascribed to such term in Section 10 of Exhibit D.
(dd)    “Discloser” has the meaning ascribed to such term in Section 11.1.
(ee)    “Dispute” has the meaning ascribed to such term in Section 15.17(a).
(ff)    “DT” means Deutsche Telekom AG.
(gg)   “DT Marks” means the Marks of DT set forth in Exhibit 14.6, as such Marks may be modified or updated from time to time by Company.
(hh)    “Durbin-Exempt Bank” has the meaning ascribed to such term in Section 8.1(l).
(ii)    “Durbin Exemption” has the meaning ascribed to such term in Section 7.1(g).
(jj)    “FDIC” means the Federal Deposit Insurance Corporation.
(kk)    “Fee Audit” has the meaning ascribed to such term in Section 9.3.

3

Certain identified information in this Exhibit, indicated by the mark “[***],” has been excluded because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

EXECUTION COPY

(ll)    “Fee Auditor” has the meaning ascribed to such term in Section 9.3. 
(mm) “Fee Audit Report” has the meaning ascribed to such term in Section 9.3.
(nn)    “Fees” means all banking revenue generated from the use of the T-Mobile Customer Accounts, including any Card usage, interchange and miscellaneous fees.
(oo)    “Force Majeure Event” has the meaning ascribed to such term in Section 15.9.
(pp)    “GLBA” has the meaning ascribed to such term in Section 11.1.
(qq)    “Implementation Fee” has the meaning ascribed to such term in Section 9.2.
(rr)    “Indemnified Party” means Bank or Company, as applicable.
(ss)    “Indemnifying Party” means Bank or Company, as applicable.
(tt)     “Initial Card Credentials” has the meaning ascribed to such term in Section 10(c) of Exhibit D.
(uu)    “Initial Term” has the meaning ascribed to such term in Section 10.1.
(vv)    “Interchange Fee Limits” has the meaning ascribed to such term in Section 7.1(g). 
(ww) “Invoice Receipt Date” has the meaning ascribed to such term in Section 9.4.
(xx)  “Issuer Network Assessment” means domestic assessments, cross-border volume fees, transaction processing fees, and other related fees, net of rebates and incentives, assessed by the payment card or ATM networks (or any similar entities) on Bank for providing transaction processing and other payment-related products and services.
(yy)  “Joint Governance Committee” has the meaning ascribed to such term in Section 15.4(a).
(zz)    “Joint Roadmap” has the meaning ascribed to such term in Section 15.4(b).
(aaa)  “Launch Date” has the meaning ascribed to such term in Section 6.1.
(bbb)  “Losses” has the meaning ascribed to such term in Section 13.3.
(ccc)  “Marks” means the trademarks, service marks, trade names, trade dress, designs, domain names, color combination, insignia, and logos (including graphic and color configurations) of a Party.
(ddd)  “Marketing Data” has the meaning ascribed to such term in Section 11.3.
(eee)  “Material Subcontractor” has the meaning ascribed to such term in Section 5.1(d).
(fff)    “Minimum Service Approval Rating” has the meaning ascribed to such term in

4

Certain identified information in this Exhibit, indicated by the mark “[***],” has been excluded because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

EXECUTION COPY

Section 10.2(a)(iv).

(ggg) “Mobile Application” has the meaning ascribed to such term in Section 10(c) of Exhibit D.

(hhh) “Mobile Network Operator” means any providers of wireless services, wireless carriers, cellular companies, or mobile network carriers, including, but not limited to, Verizon, AT&T, and Sprint, in each case, including any affiliates and subsidiaries.

(iii)       “Mobile Offering” has the meaning ascribed to such term in Section 10(a) of Exhibit D.

(jjj)    “Mobile Wallets” has the meaning ascribed to such term in Section 10(c) of Exhibit
D.

(kkk) “Modified Transition Assistance Period” has the meaning ascribed to such term in
Section 10.2(b).
(lll)    “NACHA” has the meaning ascribed to such term in Section 7(a)(i) of Exhibit D. 

(mmm)“Net Interchange Fees” means the total of all interchange revenue (net of any Issuer Network Assessments) received from payment card networks in connection with the use of Cards.

(nnn) “Online Offering” has the meaning ascribed to such term in Section 10(a) of Exhibit D.
(ooo) “PINs” has the meaning ascribed to such term in Section 7(c)(iii) of Exhibit D. (ppp)  “Product and Feature Set” has the meaning ascribed to such term in Section 10(a)
of Exhibit D.

(qqq)  “Program” has the meaning ascribed to such term in the Recitals.
(rrr)    “Program Manager” has the meaning ascribed to such term in Section 15.4(a).
(sss)   “Program Team” has the meaning ascribed to such term in Section 15.4(a). (ttt)    “Recipient” has the meaning ascribed to such term in Section 11.1.
(uuu)  “Recipient Third Parties” has the meaning ascribed to such term in Section 11.2.
(vvv) “Regulatory Audit” has the meaning ascribed to such term in Section 3.4(c). 
(www) “Regulatory Authority” means, as the context requires, the Office of the Comptroller of the Currency; the FDIC; the Federal Reserve Board; the Consumer Financial Protection Bureau; the Federal Trade Commission; the Financial Crimes Enforcement Network; and any other international, foreign, federal or state regulator or agency having jurisdiction over Bank or Company.

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(xxx) “Rejection Notice” has the meaning ascribed to such term in Section 10(e) of Exhibit D.
(yyy)    “Renewal Term” has the meaning ascribed to such term in Section 10.1.
(zzz)    “Sale Option” has the meaning ascribed to such term in Section 10.5(a).
(aaaa)  “Sale Option Notice” has the meaning ascribed to such term in Section 10.5(a).

(bbbb) “Sensitive Customer Information” has the meaning ascribed to such term in Section 11.1.

(cccc) “Service Level” has the meaning ascribed to such term in Exhibit C.

(dddd) “Solicitation Materials” means any advertising, promotional, marketing, and other similar materials describing the Program.
(eeee) “Successor Institution” has the meaning ascribed to such term in Section 10.5(a). 
(ffff)  “Supervisory Objection” means (i) an objection, verbally or in writing, raised by a Regulatory Authority having supervisory authority over Bank that expresses the Regulatory Authority’s opinion that one or more provisions of this Agreement constitute a violation of Applicable Law or is unsafe or unsound, (ii) any cease-and-desist or other similar formal written order of a Regulatory Authority, or (iii) a written directive by a Regulatory Authority to cease or materially limit performance of the obligations under this Agreement; provided, that, notwithstanding anything to the contrary, a determination by the FDIC that the T-Mobile Customer Accounts constitute Broker Deposits shall not be considered to be a Supervisory Objection for purposes of the Agreement.

(gggg) “Supervisory Objection Notice” has the meaning ascribed to such term in Section
8.1(n).

(hhhh) “T-Mobile Customer” means a customer of Company that uses the T-Mobile
Financial Services.

(iiii) “T-Mobile Customer Account” means the Deposit Account(s) of a T-Mobile Customer in connection with the T-Mobile Customer’s participation in the Program and receipt and use of the T-Mobile Financial Services that is held at Bank and that is subject to an Account Agreement between Bank and the T-Mobile Customer.

(jjjj) “T-Mobile Financial Services” means the products, services, features, and functionality set forth on Exhibit F.

(kkkk) “T-Mobile Retailer” means any Company-owned T-Mobile location and/or any T- Mobile dealer location, as determined by Company from time to time.

(llll)    “Term” has the meaning ascribed to such term in Section 10.1.

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(mmmm) “Transition Assistance Period” has the meaning ascribed to such term in Section 10.4(a).

(nnnn) “Transition Assistance Services” has the meaning ascribed to such term in Section 10.4(a).

(oooo) “Wind-Down Costs” has the meaning ascribed to such term in Section 10.3.

		
	2.
	GENERAL DESCRIPTION OF PROGRAM

2.1    Purpose. The Program established pursuant to this Agreement will allow customers of Company, through Bank’s standard and customized technology and financial products and services (including the establishment of T-Mobile Customer Accounts, the issuance of Cards and other financial products and services, as further described herein), to receive and use the T-Mobile Financial Services.

2.2    Development and Implementation of Program. Bank shall develop and implement the Program in accordance with this Agreement, including Exhibits A, B, C, D, E, F, G, H, I, and J, which exhibits are hereby incorporated into and made a part of this Agreement.

		
	3.
	MARKETING; DUTIES OF COMPANY; JOINT RESPONSIBILITIES

3.1    Marketing. Bank acknowledges that Company may promote and market the Program to prospective T-Mobile Customers from time to time. Company agrees that it will promote and market the Program in accordance with Applicable Law and this Agreement.

(a)    [***]. The terms and conditions applicable to each T-Mobile Customer Account offered pursuant to the Program shall be mutually agreed upon by Bank and Company prior to the implementation of the Program and shall be set forth in an Account Agreement between Bank and each T-Mobile Customer (as updated from time to time in accordance with this Agreement, the “Account Terms and Conditions”).  [***].  Notwithstanding the foregoing, Company acknowledges that Bank is subject to certain regulatory obligations under Applicable Law and, as such, Bank shall have final authority on certain components of the Account Terms and Conditions that implicate Applicable Law. Bank agrees that, during the Term, Bank will provide Company with the Account Terms and Conditions and with any updates or modifications to the Account Terms and Conditions promptly; provided, that, prior to implementing any updated or modified Account Terms and Conditions, Bank shall obtain Company’s approval so long as such updates or modifications are not required by Applicable Law, in which case Bank shall not be required to obtain Company’s approval.  Bank shall enter

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into an Account Agreement with each T-Mobile Customer that elects to participate in the Program, subject to Bank’s usual and customary account opening procedures. Bank represents, warrants, and covenants that the account opening procedures for T-Mobile Customers in connection with the Program will be substantially similar to the account opening procedures Bank uses for all other prospective consumer checking - and savings - account customers of Bank.

(b)    Company will submit all proposed Solicitation Materials (and ongoing changes to same) to Bank for review and written approval prior to the release or use of such Solicitation Materials in the marketplace for the purpose of allowing Bank to review such Solicitation Materials to ensure that they comply with Applicable Law with respect to financial services under this Agreement. Bank shall review any Solicitation Materials and notify Company of its decision with respect to such Solicitation Materials within a commercially reasonable period of time; provided, that for Solicitation Material less than [***], Bank will reply within [***] following Bank’s receipt of such Solicitation Materials. Bank may only reject the use of Solicitation Materials if Bank reasonably determines that such Solicitation Materials are likely to cause Bank or Company to violate Applicable Law. Company agrees that it will make any changes, on a prospective basis, in such terms, manner and conditions that the Bank deems reasonably necessary to comply with Applicable Law and Regulatory Authority guidance. In addition, Bank shall have the right to object to any Solicitation Materials that Bank believes will negatively affect Bank’s reputation, and Company agrees to consider such objection in good faith and to add a mutually agreed upon disclosure to address Bank’s specific reputational concerns. Notwithstanding the foregoing, it is expressly understood that Bank’s review and approval or rejection of the Solicitation Materials shall be for Bank’s own independent purposes and Bank’s approval of Solicitation Materials shall not constitute a certification to Company of any kind, other than to grant Company permission to use such Solicitation Materials pursuant to this Section 3.1(b). It is further understood that Bank shall have the right to withdraw approval of any previously approved Solicitation Material in the event of a change in Applicable Law or court decision related to the Solicitation Materials that adversely reflects on the Solicitation Materials or upon written or verbal direction of any Regulatory Authority with supervisory authority over Bank or the Solicitation Materials. Bank and Company shall cooperate to ensure that all Solicitation Materials comply with all applicable payment card network (e.g., Visa, Mastercard, etc.) guidelines, policies and rules.

3.2    Bank Secrecy Act Compliance.  Company will reasonably cooperate with Bank,  as mutually agreed by the Parties, in the implementation of Bank’s anti-money laundering and anti-terrorism financing compliance program (as modified from time to time, the “AML Program”) in accordance with Applicable Law, including in connection with Bank’s implementation of such commercially reasonable policies and procedures, and modifications to the Program, that may be required by Applicable Law. Company will reasonably cooperate with Bank, as mutually agreed by the Parties, in the implementation of measures to allow Bank to verify the identity of all T-Mobile Customers and prospective T-Mobile Customers consistent with Applicable Law.

3.3    Program and Compliance Training. Company shall, or shall permit Bank to, train representatives of Company that will be involved in the marketing, promotion, or implementation of the Program.  The Parties agree that the training shall be conducted

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periodically as mutually agreed by the Parties, [***].

		
	3.4
	Recordkeeping; Reporting; and Audit Rights.

(a)Bank will keep and maintain complete records reflecting the identity of each T- Mobile Customer and the steps taken to verify the identity of each T-Mobile Customer, if verification is required under Applicable Law or this Agreement. With respect to each T- Mobile Customer Account, Bank shall retain all required records for the time period required by Applicable Law and shall retain records for no less than five (5) years after the closure of a T- Mobile Customer Account or the termination of this Agreement, whichever is earlier.

(b)[***]

(ii)    Each Party reserves the right, at its own expense to inspect, copy and audit the other Party, including any records of the other Party directly relating to the other Party’s performance hereunder, including Company’s right to perform technology assessments on Bank’s technology architecture and to provide input to Bank in connection therewith. Any such audit will be conducted at mutually agreed upon times, upon reasonable prior written notice (but in no event on, less than thirty (30) business days’ written notice), and in a manner designed to minimize any disruption to the other Party’s normal business activities; provided, however, that in agreeing to times for the audit, the other Party shall be reasonable in scheduling the audit. The Parties shall reasonably cooperate and accommodate each other in connection with audit requests. The Parties agree that the audit rights hereunder will be exercised during normal business hours and no more than once in any twelve (12) month period, except that a Party shall be entitled to additional audits (but in no event more frequently than quarterly) if: (i) critical issues were identified in a previous audit (including any non-compliance with this Agreement); (ii) there is a material change to the business or financial condition of either Party; or (iii) there is a material increase in regulatory scrutiny of Bank or the Program. The Parties agree that upon the occurrence of (i), (ii) or (iii), the Parties will provide reasonable updates in connection with such issues. If a Party is entitled to conduct such additional audits pursuant to (i), (ii) or (iii) and such additional audits relate solely to a contractual issue between the Parties, the reasonable cost of such additional audits shall be borne by Bank; provided, that, Company shall not conduct an additional audit if (w) the additional audit relates to regulatory issues at Bank, (x) a Regulatory Authority is auditing Bank in connection with such regulatory issues for which Company is entitled to conduct the additional audit (such audit, a “Regulatory Audit”), (y) Bank is permitted to and does provide Company with information in connection with the Regulatory Audit, and (z) Bank keeps Company reasonably apprised of the developments in connection with the Regulatory Audit through the conclusion of such Regulatory Audit. Each Party may engage a third party to conduct an audit of the other Party in accordance with this Section 3.4(c); provided, that the Party electing to engage a third party to conduct such an audit shall

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ensure that an audit report is prepared by the third party and a copy of the audit report is made available to the audited Party.

		
	3.5
	Account Marketing Locations.

(a)Accounts may be marketed by Company [***].

(b)[***]

3.6    Company will work with Bank to develop and refine certain financial products and services, as well as technology enhancements, in connection with the Program.

3.7    [***]

3.8    [***]

3.9    Company agrees that any branding, notices or statements that are required by Applicable Law shall include the name or trademark of the Bank.

3.10    [***]

		
	4.
	REPRESENTATIONS AND WARRANTIES OF COMPANY

4.1    Representations and Warranties. Company represents and warrants to Bank as follows:

(a)    This Agreement is valid, binding and enforceable against Company in accordance with its terms, except as such enforceability may be limited by laws governing creditors’ rights and general principles of equity.

(b)    Company is a corporation duly formed, validly existing and in good standing under the laws of the State of Delaware and is duly qualified and is properly licensed to do business in each jurisdiction in which the nature of Company’s activities makes such authorization or licensure necessary. Neither the execution of this Agreement nor Company’s performance of its obligations hereunder requires any consent, authorization, approval, notice to, license, or other action by or in respect of, or filing with, any third party or any Regulatory Authority.

(c)    Company has the full power and authority to execute and deliver this Agreement and to perform all of its obligations under this Agreement.  The provisions of this Agreement

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and the performance by Company of its obligations under this Agreement are not in conflict with Company’s documents of formation or operation, or any other agreement, contract, lease or obligation to which Company is a party or by which it is bound.

(d)    Company has not been subject to the following, in each case, that would  materially adversely affect Company’s ability to exercise its rights or perform its obligations hereunder:
		
	(i)
	any criminal conviction (except minor traffic offenses and other petty offenses) in the United States of America or in any foreign country;

		
	(ii)
	any federal or state tax lien, or any foreign tax lien;

		
	(iii)
	any administrative or enforcement proceedings commenced by the Securities and Exchange Commission, any state securities regulatory authority, the Federal Trade Commission, federal or state bank regulator, or any other state or federal regulatory agency in the United States or in any other country; or

		
	(iv)
	any restraining order, decree, injunction, or judgment in any proceeding or lawsuit, alleging fraud or deceptive practice on the part of Company.

(e)    There is not pending or threatened against Company any litigation or proceeding, judicial, tax or administrative, the outcome of which might materially adversely affect the ability of the Company to perform its obligations hereunder.

		
	5.
	COVENANTS OF COMPANY

5.1    Covenants.  Company covenants and agrees with Bank as follows:

(a)Company will perform its obligations under this Agreement in accordance with Applicable Law.

(b)Subject to Section 8.1(b), Company will obtain and maintain appropriate licenses with respect to any trademarks and copyrights required for Company in connection with this Agreement.

(c)[***].

(d)Company will not, without Bank’s prior written consent, outsource or otherwise subcontract with third parties for the provision of any of its material obligations (each, a “Material Subcontractor”) in connection with the delivery of the T-Mobile Financial Services. Bank shall have the right to conduct due diligence on a Material Subcontractor at Bank’s reasonable discretion.  Bank’s review and approval of a Material Subcontractor shall not be

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unreasonably withheld, conditioned or delayed; provided, that, in any case, Bank shall review and approve or reject a Material Subcontractor within fourteen (14) days. However, any such consent of assignment of Company’s obligations hereunder shall not release Company of its obligations to Bank under this Agreement, and Company shall remain fully liable to Bank for any breach of this Agreement caused by a subcontractor or third party retained by Company. [***]. If a dispute arises in connection with the designation of a third- party service provider as a Material Subcontractor, the Parties agree that the dispute shall be referred to the Joint Governance Committee for resolution and, if the Joint Governance Committee is unable to resolve the issue, the dispute shall be referred to the Advisory Board for resolution in accordance with Section 15.4(c); provided, that, Company may use the third-party service provider during the Joint Governance Committee’s and Advisory Board’s consideration of the issue. At Bank’s request, Company shall provide, at least once annually, a list of all Material Subcontractors utilized by Company in connection with this Agreement.

(e)Company agrees that any Regulatory Authority with supervisory authority over Bank (an “Auditing Party”) shall have the right, consistent with the Regulatory Authority’s customary practices and procedures for the review of third-party relationships, [***]. Such audit, inspection or examination shall be at Bank’s sole expense (including any costs and expenses incurred by Company in connection with such audit, inspection or examination), during regular business hours of Company, on reasonable notice, and conducted in a manner so as to not interfere with Company’s normal business operations.

(f)Bank and Company will reasonably cooperate in the implementation of commercially reasonable measures designed to meet the objectives of the security and confidentiality guidelines published by various Regulatory Authorities that are applicable to Bank and the Program including, but not limited to, the implementation of appropriate policies, procedures, and other measures designed to protect against unauthorized access to or use of customer information maintained by Company in connection with the Program that could result in substantial harm or inconvenience to any T-Mobile Customer and the proper disposal of T- Mobile Customer information in connection with the Program. Company shall further  cooperate with Bank in implementing a response program in connection with the Program which may require Company to take commercially reasonable actions to address incidents of unauthorized access to T-Mobile Customer Accounts or other information, including notification to Bank and T-Mobile Customers as soon as possible following any such incident. Company shall ensure that, to the extent any third-party service provider engaged by Company has access to T-Mobile Customer Account information, such third-party service provider shall

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be obligated to safeguard such information to the same extent as Company.

(g)[***]

		
	6.
	DUTIES OF BANK

6.1    Bank shall administer the Program and provide the T-Mobile Financial Services in accordance with this Agreement (including Exhibit D). Bank shall use commercially reasonable efforts to [***]. The Parties acknowledge that the offering of the Program in [***] is subject to regulatory approval, provided, that Bank shall use best efforts to obtain such regulatory approval. The Launch Date shall be adjusted to the extent Company requests changes to the Program which result in implementation delays. For purposes of clarity, Exhibit D hereto sets forth the financial products and services that Bank must provide in connection with the Program and the terms and conditions applicable to the provision of such products and services.

6.2    In addition to Bank’s other duties and obligations under this Agreement, Bank shall be responsible for developing and maintaining the technology and operations in connection with the Program and for delivering the T-Mobile Financial Services and Cards, and shall bear all responsibility for and pay all normal expenses of the operations, except as otherwise described in this Agreement.

		
	7.
	REPRESENTATIONS AND WARRANTIES OF BANK

7.1    Representations and Warranties. Bank represents and warrants to Company as follows:

(a)    This Agreement is valid, binding and enforceable against Bank in accordance with its terms, except as such enforceability may be limited by laws governing creditors’ rights and general principles of equity.

(b)    Bank is a state bank, validly chartered and in good standing under the laws of the Commonwealth of Pennsylvania, and is duly qualified and is properly licensed to do business in each jurisdiction in which the nature of Bank’s activities, including in connection with this Program, makes such authorization or licensure necessary. Neither the execution of this Agreement nor Bank’s performance of its obligations hereunder requires any consent, authorization, approval, notice to, license, or other action by or in respect of, or filing with, any third party or any Regulatory Authority.

(c)    Bank has the full power and authority to execute and deliver this Agreement and to perform all its obligations under this Agreement.  The provisions of this Agreement and the

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performance by Bank of its obligations under this Agreement are not in conflict with Bank’s charter, bylaws or any other agreement, contract, lease or obligation to which Bank is a party or by which it is bound.

(d)    Bank is not subject to any order, judgment, decree, or any other legal or regulatory action that could impede, impair, or prevent Bank from fulfilling all of its obligations under this Agreement.

		
	(e)
	Neither Bank nor any principal of Bank has been subject to the following:

		
	(i)
	any criminal conviction (except minor traffic offenses and other petty offenses} in the United States of America or in any foreign country;

		
	(ii)
	any federal or state tax lien, or any foreign tax lien;

		
	(iii)
	any administrative or enforcement proceedings commenced by the Securities and Exchange Commission, any state securities regulatory authority, the Federal Trade Commission, federal or state bank regulator, or any other state or federal regulatory agency in the United States or in any other country; or

		
	(iv)
	any restraining order, decree, injunction, or judgment in any proceeding or lawsuit, alleging fraud or deceptive practice on the part of Bank or any principal thereof.

(f)    There is not pending or threatened against Bank any litigation or proceeding, judicial, tax or administrative, the outcome of which might materially adversely affect the continuing operations of Bank.

(g)    As of the date of this Agreement, Bank qualifies for the small issuer exemption pursuant to 12 C.F.R. § 235.5(a) (as modified or amended from time to time, the “Durbin Exemption”) and Card activity in connection with the Program is not subject to the cap on interchange fees pursuant to 12 C.F.R. § 235.3, (as modified or amended from time to time, the “Interchange Fee Limits”).

		
	8.
	COVENANTS OF BANK

8.1    Covenants. Bank covenants and agrees with Company as follows:

(a)Bank will perform its obligations under this Agreement in accordance with Applicable Law.

(b)[***].

		
	(c)
	Bank will obtain and maintain appropriate licenses with respect to any

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trademarks, copyrights and patents required or reasonably necessary for Bank in connection with this Agreement.

(d)To the extent permitted by Applicable Law, Bank will promptly give written notice to Company of any material change in the business operations (including Bank’s compliance programs) or condition, financial or otherwise, of Bank if such material change is reasonably likely to affect Bank’s ability to perform its obligations hereunder.

(e)In the event Bank receives notice of a complaint regarding the Program from any third party, including any state or federal regulator, consumer protection or advocacy agency, or other similar party, Bank shall, subject to any restrictions or provisions of Applicable Law and any obligation to maintain the confidentiality of such complaint or communication, promptly forward such complaint to Company and shall review, investigate, and resolve such complaint.

(f)Bank will, to the extent permitted by Applicable Law, promptly notify Company upon becoming aware of (i) any formal regulatory investigation, regulatory inquiry, enforcement action, or the like involving Bank or in connection with the Program (provided that the foregoing shall not apply to any informal regulatory discussions or informal audits conducted in the ordinary course of Bank’s business), or (ii) any order, judgment, decree, or any other legal or regulatory action that could affect the Program, and Bank will provide, to the extent permitted by Applicable Law and upon Company’s reasonable request, any information and materials requested by Company in connection therewith.

(g)Bank will make available, at least once annually, a reasonable summary of the Bank’s risk assessments in connection with the Program and will give Company the option, at least once annually, to review the risk assessments in their entirety at the Bank’s offices.

(h)Bank will not, without providing at least ninety (90) days’ prior written notice to Company, outsource or otherwise subcontract with third parties for the provision of any of its obligations under this Agreement. Company shall have the right to conduct due diligence on all new third-party service providers at its reasonable discretion prior to Bank’s use of any third- party service provider in connection with this Agreement. Notwithstanding anything to the contrary, Bank’s use of any third party-service provider to perform any of Bank’s obligations under this Agreement shall not release Bank of its obligations to Company under this Agreement, and Bank shall remain fully liable to Company for any breach of this Agreement caused by any third-party service provider retained by Bank. Notwithstanding anything to the contrary, Company hereby approves the third-party service providers set forth on Schedule 8.1(i)(h).

(i)Bank will implement commercially reasonable measures designed to meet the objectives of the security and confidentiality guidelines published by various Regulatory Authorities relevant to the Program, including, but not limited to, the implementation of appropriate policies, procedures, and other measures designed to protect against unauthorized access to or use of customer information maintained by Bank in connection with the Program that could result in substantial harm or inconvenience to any T-Mobile Customer and the proper disposal of T-Mobile Customer information in connection with the Program. Bank shall further implement a response program in connection with the Program consistent with the requirements

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of its Regulatory Authority, including, without limitation, notification to Company and affected T-Mobile Customers as soon as reasonably possible following any such incident. Bank shall ensure that any third-party service provider having access to T-Mobile Customer information is obligated to cooperate in the implementation of similar security measures and response programs.

(j)Bank will, at all times, comply with the obligations set forth in Exhibit J [Security Safeguards, Company Information, and Cardholder Information] hereto. In the event of any conflict between the terms and conditions of this Agreement and the terms and conditions of Exhibit J with respect to the subject matter thereof, the terms and conditions set forth in Exhibit J shall control.

(k)Bank shall, while this Agreement is in effect, prepare and maintain disaster recovery, business resumption, and contingency plans in connection with the Program consistent with the requirements of its Regulatory Authority. Bank shall periodically test such disaster recovery, business resumption, and contingency plans as may be appropriate and prudent in light of the nature and scope of the activities and operations of Bank and its obligations hereunder and shall promptly provide Company with a summary of the results of any such tests.

(l)If, at any time during the Term, Bank no longer qualifies for the Durbin Exemption, Bank will use best efforts to consummate a transaction pursuant to which a financial institution that qualifies for the Durbin Exemption (the “Durbin-Exempt Bank”) will become the holder of the T-Mobile Customer Accounts and the issuer of Cards in connection with the Program; provided, that (i) the Durbin-Exempt Bank shall be reasonably acceptable to Company, (ii) the transition of the T-Mobile Customer Accounts to the Durbin-Exempt Bank shall not have any adverse impact on T-Mobile Customers, as determined by Company in its reasonable discretion; and (iii) Bank shall ensure that all of Bank’s obligations under this Agreement will continue to be honored in accordance with the terms of this Agreement without modification hereof. Notwithstanding the foregoing, any transaction with, or assignment to, a Durbin-Exempt Bank that is announced prior to the Beta Launch Date shall not require Company’s approval or consent as described in this Section 8.1(l)(i)-(ii). If Bank is unable to consummate such a transaction, then, notwithstanding anything to the contrary in this Agreement: (i) Bank will continue to operate and administer the Program and satisfy all of its obligations under this Agreement in accordance with the terms of this Agreement; and (ii) Bank will pay to Company, on a monthly basis, one-hundred percent (100%) of Net Interchange Fees for Card activity in connection with the Program during the period in which Bank is not eligible for the Durbin Exemption.

(m)Subject to Company’s input and approval with respect to (i) the structure of the Program and the Sale Option, (ii) the financial institution that will hold the T-Mobile Customer Accounts and any deposits received by Bank for T-Mobile Customer Accounts, and (iii) any other term or condition Company deems relevant, [***].

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(n)In the event of any Supervisory Objection, Bank will promptly notify Company in writing of such Supervisory Objection (the “Supervisory Objection Notice”) and such Supervisory Objection Notice will describe, in sufficient detail, the nature of the Supervisory Objection and the extent to which the Supervisory Objection could affect the Program. In the case of a written Supervisory Objection, Bank shall provide the Supervisory Objection Notice along with a copy of the written Supervisory Objection, except as prohibited by Applicable Law. Prior to implementing any change to the Program in connection with any Supervisory Objection, Bank shall use best efforts to meet and work with Company to resolve the Supervisory Objection by way of a mutually agreed-upon solution. Except as prohibited by Applicable Law, Bank shall provide Company with any information reasonably requested by Company in connection with any Supervisory Objection. In the event any Supervisory Objection directing Bank to terminate this Agreement is not in writing, Bank agrees to request, and use reasonable efforts to obtain, a written Supervisory Objection and to provide such written Supervisory Objection to Company. If Bank is unable to obtain a written Supervisory Objection directing Bank to terminate this Agreement, then Bank will use best efforts to facilitate a meeting among the Regulatory Authority and Bank to discuss the oral Supervisory Objection directing Bank to terminate this Agreement. If Bank is unable to (i) obtain a written Supervisory Objection and to provide such Supervisory Objection to Company or (ii) facilitate a meeting among the Regulatory Authority and Bank, then Bank shall provide an official letter from Bank’s board of directors that represents and warrants that Bank is subject to a Supervisory Objection that requires Bank to terminate this Agreement and that describes such Supervisory Objection in sufficient detail. Notwithstanding the foregoing, in no event shall Bank be required to provide documentation or information to the extent prohibited by Applicable Law.

(o)Within thirty (30) days following the execution of this Agreement, Bank will complete Company’s information technology risk assessment. Bank will remediate any issue(s) identified in the information technology risk assessment to Company’s satisfaction prior to the Beta Launch Date; provided, that if Bank fails to remediate any such issue(s) to Company’s satisfaction prior to the Beta Launch Date, Company may terminate this Agreement.

		
	9.
	PROGRAM REVENUES AND COMPENSATION

9.1    Program Revenues. Each Party will be entitled to and responsible for those fees and charges as set forth in Exhibit B hereto [Fee Schedule]. Except for those fees expressly set forth in this Agreement (including Exhibit B), Bank shall not impose any other fees on Company in connection with this Agreement. The Parties acknowledge and agree that the [***]. At any time, if Bank and Company agree upon additional services from Bank, the Parties will negotiate in good faith to determine the pricing for such additional services.  Company shall be entitled to compensation as set forth on Exhibit

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A hereto.

9.2    Implementation Fee. Company agrees to pay a fee in the amount of [***] to Bank for the development, design, and creation of the Program (the “Implementation Fee”). The Implementation Fee shall be paid in increments according to the following schedule: [***].

9.3    Program Fees. Bank shall maintain fees for the Program that are, in the aggregate, at or below industry standards relative to private-label banking programs administered by other banks. Bank agrees that, at all times, the fees imposed on Company in connection with the Program (including, without limitation, the fees set forth on Exhibit B), shall, in the aggregate, be at least as favorable to Company as the fees charged by Bank in connection with any other private-label banking program administered by Bank. Bank shall, at least once annually at the expense of Bank, engage a qualified, mutually agreed upon third party (the “Fee Auditor”) to review and compare the fees charged by Bank in connection with the Program (including, without limitation, the fees set forth on Exhibit B) with the fees imposed by banks, generally, in connection with administering private-label banking programs (the “Fee Audit”). Bank shall cause the Fee Auditor to prepare a report that details the Fee Auditor’s findings (the “Fee Audit Report”) and to provide a copy of the Fee Audit Report to Company within thirty (30) days of completing the Fee Audit. If the Fee Audit Report indicates that Bank is imposing fees on Company in connection with the Program in the aggregate in excess of fees imposed by other banks in connection with private-label banking programs, then Bank shall formulate a plan for Bank to satisfy its obligations under this Section 9.3, which plan shall be subject to Company’s approval.

9.4    Fees Payable to Bank.  Company will remit all undisputed fees to Bank within sixty (60) days after an invoice is uploaded into Company’s accounts payable system (the “Invoice Receipt Date”).  Bank agrees that Bank waives any rights to any Charges payable under this Agreement that are not invoiced by Bank to Company within one-hundred eighty (180) days after the provision of services.

(a)    Company will notify Bank of any disputed fees in writing.  Bank and Company will attempt in good faith to resolve any disputed amounts. If Company agrees to pay all or a portion of a disputed amount, Bank will re-invoice that amount. Company will pay all such re- invoiced amounts to Bank within sixty (60) days after the reissued invoice is uploaded into Company’s accounts payable system. For the avoidance of doubt, the date on which any re- issued invoice uploaded into Company’s accounts payable system will be deemed to be the Invoice Receipt Date.

(b)    All invoices will follow Company’s invoicing standards. At a minimum, each invoice issued by Bank to Company must be in a form and content reasonably acceptable to Company and meet the requirements in this Agreement. Each invoice must contain details describing the basis for the requested payment, including a description of the services performed and such other details as may be reasonably necessary to explain the charges in the

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invoice. Bank will furnish such receipts, documents and other supporting materials as Company reasonably may request to verify the charges set forth in any invoice. Bank agrees that any terms or conditions included on the invoice that are in conflict with this Agreement are null and void.

(c)    Electronic Payments.  Company will issue all payments to Bank via ACH through Company’s electronic payment system. Bank will enroll in Company’s electronic payment system in order to receive payments. Bank will provide a point of contact and follow enrollment instructions provided by Company to enroll in the electronic payment system.

9.5    Fees Payable to T-Mobile. Bank will remit all amounts to Company via ACH on a monthly basis as described in Exhibit A within fifteen (15) days of issuing the monthly report.

		
	10.
	TERM OF AGREEMENT; TERMINATION; TRANSITION OF T-MOBILE CUSTOMERS; EXCLUSIVITY

10.1    Initial Term and Renewal Terms. The term of this Agreement shall commence as of the Effective Date, and shall continue for a period of three (3) years (the “Initial Term”), unless terminated earlier in accordance with this Agreement. Company may extend this Agreement for an additional two-year (2-year) period (the “Renewal Term”) by providing written notice to Bank prior to the end of the Initial Term. The Initial Term and the Renewal Term may be referred to herein as the “Term.”

		
	10.2
	Termination of Agreement.

(a)Generally. In addition to any other termination rights under this Agreement, this Agreement may be terminated as follows:

		
	(i)
	At any time, upon the mutual written consent of the Parties;

		
	(ii)
	By either Party, upon written notice, in the event of a material breach of this Agreement by the other Party if the breaching Party fails to cure such material breach within thirty (30) days following written notice from the non-breaching Party that specifies the nature and circumstances of the material breach;

		
	(iii)
	By Bank, upon one-hundred eighty (180) days’ prior written notice (or such shorter period as required by a Regulatory Authority) and subject to Section 8.1(n), in the event of a Supervisory Objection that requires Bank to terminate this Agreement;

		
	(iv)
	By Company, upon written notice, if Bank fails to use best efforts to maintain a product approval (net of service-related commitments not tied to product) and/or review ratings [***] in the various application stores [***] (the “Minimum Service Approval Rating”) during the Term;

		
	(v)
	By Company, upon written notice, if Bank fails to maintain the Minimum

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Service Approval Rating of [***] in any application store [***] during the Term;

		
	(vi)
	By Company, upon written notice, if Bank fails to deliver the agreed-upon products, services, features, and functionality outlined in Exhibit F within the timeline established therein;

		
	(vii)
	By Company, upon written notice, if Company does not approve the acceptance testing of the Beta Version due to any disagreement between the Parties in connection with the products and features in the Program and Bank fails, within sixty (60) days after receiving the Rejection Notice from Company rejecting the acceptance testing of the Beta Version due to such disagreement, to remedy any issues identified in Company’s Rejection Notice to Bank; and

		
	(viii)
	By Company, upon written notice, if the Program is or becomes unprofitable for Company, based on sufficient documentation provided by Company, during [***]; provided, that Company may not exercise this termination right until [***] of this Agreement.

(b)Brokered Deposits Durbin Exemption.  In addition to any other termination right under this Agreement, either of Company or Bank may terminate this Agreement in accordance with this Section 10.2(b) if the FDIC determines that the T-Mobile Customer Accounts constitute Brokered Deposits or if Bank, at any time during the Term, no longer qualifies for the Durbin Exemption and fails to consummate a transaction as contemplated by and in accordance with Section 8.1(l) or assign this Agreement to a Durbin-Exempt Bank subject to and in accordance with Section 15.12 and Section 8.1(l), respectively; provided, that (i) neither Party may exercise its right to terminate this Agreement pursuant to this Section 10.2(b) before July 1, 2018, and (ii) if either Party exercises its right to terminate this Agreement pursuant to this Section 10.2(b), then, notwithstanding anything to the contrary in this Agreement, Bank shall perform its obligations under this Agreement in accordance with the terms of this Agreement through June 30, 2019 (the “Modified Transition Assistance Period”). In the case of either of the foregoing, Company shall have the right to the Sale Option.

10.3    The Parties agree that, notwithstanding anything to the contrary in this Agreement, any wind-down and/or de-conversion costs (collectively, the “Wind-Down Costs”) in connection with any termination of this Agreement shall be borne by [***].

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	10.4
	Obligations upon Termination.

(a)Transition Period and Assistance. Upon expiration or termination of this Agreement for any reason, [***], Bank shall continue to perform its obligations under this Agreement for a period not to exceed twelve (12) months (or 18 months in the event of a termination by Company pursuant to Section 10.2(a)(ii)) of the expiration or termination date (the “Transition Assistance Period”); provided, that, Company may elect, in its sole discretion, to end the Transition Assistance Period at any time after one-hundred eighty (180) days. Notwithstanding anything to the contrary, if Bank is directed, pursuant to a Supervisory Objection, to terminate this Agreement, Bank shall use commercially reasonable efforts and work in good faith with Company and with the Regulatory Authority that issued the Supervisory Objection that directed Bank to terminate this Agreement to provide Transition Assistance Services (as defined below) as mutually agreed by the Parties and as permitted by the Regulatory Authority. During the Transition Assistance Period, Bank shall continue to perform its obligations under this Agreement in accordance with the terms and conditions specified herein and shall provide any and all assistance reasonably requested by Company to transition the Program to a Successor Institution pursuant to the Sale Option without degrading or interfering with (i) the Program, (ii) any of the services provided by Bank hereunder, or (iii) the business, operations, or systems of Company, including, without limitation: (1) any data migration to Company or Successor Institution with Regulatory Authority approval at Company’s option; and (2) any other commercially reasonable transition assistance services as are reasonably requested by Company (collectively, the “Transition Assistance Services”). For the avoidance of doubt, Bank shall provide the Transition Assistance Services in accordance with this paragraph without regard to the reason for the termination of this Agreement and the Term of this Agreement shall not be deemed to have expired or terminated until the Transition Assistance Services have been completed; provided, that, Company shall not be subject to any minimum fees or similar financial obligations during any Transition Assistance Period. The Transition Assistance Services shall be provided as part of the Program at the rates specified herein; [***].

		
	(b)
	Upon termination of this Agreement:

		
	(i)
	any undisputed amounts due and owing from one Party to the other Party shall be promptly paid in full; and

		
	(ii)
	each Party shall return, upon the other Party’s request, any and all property of the other Party (including, without limitation, any Confidential Information, software, and other property of the other Party; and

		
	(iii)
	any T-Mobile Customer Accounts opened during the Term shall remain with Bank, unless Company exercises the Sale Option.

		
	(c)
	Bank shall retain all records and documentation related to the Program (including

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T-Mobile Customers) in a form that is reasonably retrievable for a period of five (5) years after the closure of any T-Mobile Customer Account, or the termination of this Agreement (whichever is earlier). The Parties agree to cooperate with one another to make such records  and documentation available as may be required to comply with Applicable Law, or to respond to customer inquiries, legal requests (such as a subpoena), audits, or regulatory examination requests.

		
	10.5
	Transition of T-Mobile Customers.

(a)Upon review and discussion, the Parties acknowledge and agree that it is in the best interest of T-Mobile Customers to ensure that the T-Mobile Financial Services offered in connection with the Program maintain the value proposition offered to T-Mobile Customers in the event of the expiration or termination of this Agreement. Bank, as the financial institution  that will hold the T-Mobile Customer Accounts during the Term, hereby expresses its desire to transition such T-Mobile Customer Accounts upon the expiration or termination of this Agreement and hereby agrees [***] T-Mobile Customer Accounts upon such expiration or termination; provided, that, [***] after such expiration or termination, Bank will offer Company the right of first refusal to purchase the T-Mobile Customer Accounts or to facilitate the purchase of the T-Mobile Customer Accounts to a qualified successor financial institution designated by Company (the “Successor Institution”), in each case, for [***] of such T-Mobile Customer Accounts, which shall be determined in accordance with Section 10.5(b) (the “Sale Option”). If Company does not accept the Sale Option, Bank may sell the T-Mobile Customer Accounts to any financial institution. If Company accepts the Sale Option, Company shall: (1) provide written notice to Bank [***] following receipt of the Sale Option (the “Sale Option Notice”); (2) execute, or facilitate the execution of, an agreement for the purchase of the T-Mobile Customer Accounts [***] following the delivery of the Sale Option Notice to Bank; and (3) provide, or cause the Successor Institution to provide, Bank with a detailed outline of its intentions in connection with the T-Mobile Customer Accounts, including, as applicable, the identity of the Successor Institution, the procedures for the transition of the T-Mobile Customer Accounts, and any other information reasonably requested by Bank that is necessary to facilitate the Sale Option. The Parties agree that the Sale Option shall be contingent upon the execution of an agreement that sets forth the mutually agreed to terms and conditions of the Sale Option.

(b)The sale price will be equal to [***]

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[***]. Subject to the receipt of all necessary approvals from any Regulatory Authority, Bank agrees to transition the T-Mobile Customer Accounts to Company or the Successor Institution, as applicable, within [***] after closing of the Sale Option.

(c)If Company elects to accept the Sale Option and the T-Mobile Customer Accounts are transitioned to Company or the Successor Institution, as applicable, [***]. If Company accepts the Sale Option within the time period provided under Paragraph 10.5(a), the Term of this Agreement shall be extended and the Parties shall remain in compliance with all provisions of this Agreement, including the timely payment of all other fees and sums called for under this Agreement, through the date that the T-Mobile Customer Accounts are transitioned to Company or the Successor Institution, as applicable; provided, that Company shall not be subject to any minimum fee or similar commitments following the effective date of any expiration or termination of this Agreement. Company or the Successor Institution will be responsible for obtaining any necessary approvals from any Regulatory Authority.

10.6    Exclusivity and Cross-Marketing.  Bank agrees that, for the duration of the Term, (i) Bank shall not offer any financial products or services that are substantially similar to the T- Mobile Financial Services to any other Mobile Network Operator in the United States, and (ii) Bank shall not target any T-Mobile Customers using any T-Mobile Customer or Company customer list(s) or any data from or about the Program for the purpose of  marketing or selling any financial product or service, other than the T-Mobile Financial Services, to any such T-Mobile Customer. Company agrees that, for the duration of the Term, Company shall not offer a consumer-facing demand deposit account with any other financial institution. The provisions of this Section 10.6 shall not apply during any Termination Assistance Period.

		
	11.
	CONFIDENTIALITY

11.1    Confidential Information. The term “Confidential Information” shall mean this Agreement and any and all proprietary information, data, trade secrets, business information and other information of any kind whatsoever which (a) a Party discloses in writing, orally, or visually (the “Discloser”) to the other Party (the “Recipient”) or to which the Recipient obtains access in connection with the negotiation of this Agreement or the exercise of its rights or performance of its obligations hereunder, and which (b) relates to (i) the Discloser’s business or business practices, (ii) the Discloser’s customers and/or associates, or (iii) consumers who have made Sensitive Customer Information available to Bank and/or Company. “Sensitive Customer

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Information” means “non-public personal information,” as defined in the Gramm-Leach-Bliley Act and its implementing regulations (the “GLBA”). Except as otherwise provided in Section 11 of this Agreement, Confidential Information may only be accessed, used, and disclosed by the Parties for the business purpose contained herein.

11.2    Sensitive Customer Information. Each Party acknowledges and agrees that it will protect, maintain, use, and disclose Sensitive Customer Information in accordance with this Agreement and in a manner that is not prohibited by Applicable Law. In addition to the other requirements set forth in Section 11 regarding Confidential Information, Sensitive Customer Information shall be subject to the additional restrictions set forth in this Section 11.2. The Recipient shall access, use, and disclose Sensitive Customer Information only for the purpose of exercising its rights and performing its obligations hereunder and shall disclose such Sensitive Customer Information only to its affiliates, employees, officers, agents, subcontractors, and third-party vendors (collectively, “Recipient Third Parties”) on a “need to know” basis and only to the extent such Recipient Third Parties are subject to obligations with respect to such Sensitive Customer Information that are no less restrictive than the obligations imposed on Recipient hereunder. The restrictions set forth herein shall apply during the Term and after the termination of this Agreement.

11.3    Marketing Data. Bank acknowledges and agrees that it will provide to Company, and Company may securely maintain, [***]. Bank agrees that it will make any and all disclosures and obtain any and all consents, authorizations, and approvals from T-Mobile Customers required under Applicable Law for Company to exercise its rights and for Bank to perform its obligations hereunder.

11.4    Compliance with Applicable Law. The Parties shall comply with Applicable Law with respect to the use and disclosure of Sensitive Customer Information.

11.5    Disclosure to Employees, Agents and Third Parties. Each of the Parties, as a Recipient, hereby agrees on behalf of itself and Recipient Third Parties that Confidential Information will only be disclosed or made available to Recipient Third Parties on a “need to know basis” for a Party to exercise its rights and perform its obligations hereunder and only if such Recipient Third Parties are subject to confidentiality obligations with respect to such Confidential Information that are no less restrictive than the obligations imposed on the Recipient hereunder. Each of the Parties, as a Recipient, also may disclose Confidential Information as required by law; provided, that, prior to any disclosure of Confidential

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Information as required by law, the Recipient shall (i) notify the Discloser of any actual or threatened legal compulsion of disclosure and any actual legal obligation of disclosure immediately upon becoming so obligated, and (ii) cooperate with the Discloser’s reasonable, lawful efforts to resist, limit or delay disclosure.

11.6    Return/Destruction of Materials. Upon the termination of this Agreement, or at any time upon the request of a Party, the other Party shall return or, at the requesting Party’s election, destroy all Confidential Information, including Sensitive Customer Information, in the possession of such Party or in the possession of any third party over which such Party has or may exercise control, except as otherwise provided in this Agreement or as required to meet record-retention requirements under Applicable Law; provided, that, Company shall be under no obligation to return or destroy Behavior Data.

11.7    Exceptions. The obligations of confidentiality in this Section 11 shall not apply to any information which a Party rightfully has in its possession when disclosed to it by the other Party, information which a Party independently develops, information which is or becomes known to the public other than by breach of this Section 11 or information rightfully received by a Party from a third party without the obligation of confidentiality.

11.8    The Parties acknowledge and agree that the same or similar information, including Confidential Information, may constitute Company data and Bank data and, to the extent such information is both Company data and Bank data, (i) Company shall retain its ownership and use rights in such Company data without restriction hereunder as to elements of Company data that are also elements of Bank data, and (ii) Bank shall retain its ownership and use rights in such Bank data without restriction hereunder as to elements of Bank data that are also elements of Company data; provided, that, notwithstanding anything to the contrary in this Agreement, Bank shall not use any data accessed, disclosed, obtained, or received in connection with the Program to market any financial products or services to T-Mobile Customers.

11.9    Media Releases. All media releases by either Party regarding the Program shall be coordinated with and, subject to requirements of Applicable Law, approved by the other Party in writing prior to the release thereof, which approval will not be unreasonably withheld or delayed.

11.10    Injunctive Relief. The Parties acknowledge that, in the event either Party breaches the terms of Section 11, the non-breaching Party shall be entitled to injunctive relief, in addition to any other remedies that may be available to it at law or under the terms of the Agreement.

		
	12.
	INSURANCE

12.1    Required Insurance Coverage. Except as otherwise provided in Section 12.1(e), each Party shall, at its own cost and expense, obtain and maintain in full force and effect, with financially sound and reputable insurers having A.M. Best ratings of [***] or better, insurance to cover such Party’s obligations under this Agreement. Upon execution of this Agreement and before the commencement of any services contemplated under the Agreement, each Party shall provide the other Party with a certificate of insurance or declaration page

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evidencing the following coverages and amounts with such insurers and naming the other Party as an additional insured:

(a)    Commercial General Liability. Including products, completed operations liability and personal injury, contractual liability and broad form property damage liability coverage for damages to any property with a minimum combined single limit of [***] per occurrence and [***] general aggregate per location for bodily injury, death, property damage and personal injury.

(b)    Business Automobile Coverage. Covering use of any owned, non-owned, and hired automobiles with a minimum combined single limit of [***] per occurrence for bodily injury and property damage liability.

(c)    Workers’ Compensation Coverage. Including occupational illness or disease coverage, or other similar social insurance in accordance with the laws of each State in which services are performed; and Employer’s Liability Insurance with a minimum limit of [***] per occurrence.

(d)    Umbrella/Excess Liability. Coverage with a minimum limit of [***] to cover claims in excess of the coverage limits for Commercial General Liability, Employer’s Liability and Automobile Liability.

(e)    Professional Liability/Errors and Omissions Insurance. Bank shall maintain professional liability/errors and omissions liability insurance applicable to Bank’s obligations hereunder for minimum limits of [***] per claim and [***].  If such coverage is written on a claims-made basis, then (i) the retroactive date must precede the obligations performed under this Agreement, and (ii) the coverage must continue through the purchase of an extended reporting period (or continuation of the existing coverage) for [***] after termination of this Agreement.

(f)    Bank’s Obligation to Maintain Cybersecurity Insurance Coverage. Bank, at all times, shall obtain and maintain cybersecurity and technology coverage for any liability arising from or related to the theft, dissemination, and/or use of Confidential Information and personal data stored or transmitted in electronic form and for any liability arising from or related to the introduction of a computer virus into, or otherwise causing damage to, any Company’s or any third party’s (including any T-Mobile Customer’s), computer systems, networks or similar computer-related property and the data, software, and programs stored thereon. The amount of coverage maintained by Bank, at all times, shall be [***] in accordance with the table below:

	
			
	[***]
	[***]
	[***]

	Tier 1
	[***]
	[***]

	Tier 2
	[***]
	[***]

	Tier 3
	[***]
	[***]

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	Tier 4
	[***]
	[***]

[***]. For the avoidance of doubt, Bank’s failure to maintain coverage, at all times, in the amount required under this Section 12.1(f) shall be deemed to be a material breach of this Agreement.

If the coverage required under this Section 12.1(f) is written on a claims-made basis, then (i) the retroactive date must precede the obligations performed under this Agreement, and (ii) the coverage must continue through the purchase of an extended reporting period (or continuation of the existing coverage) for [***] after termination of this Agreement.

		
	12.2
	Additional Insurance Requirements.

(a)Each Party shall cause its insurers or its representatives to issue certificates of insurance evidencing that the coverages under this Agreement are maintained in force, and each Party will provide not less than thirty (30) days written notice to the other Party prior to any cancellation of any of the policies.

(b)Each Party shall provide evidence of such policies of insurance to the other Party upon request.

(c)Nothing in this Section 12 will be construed as limiting either Party’s liability to the other Party or to any third party.

(d)Each Party shall be named additional insured under the General Liability and Umbrella Liability.

12.3    No Warranty. No warranty is provided that the coverages and limits listed in this Section 12 are adequate to cover and protect the interests of either Party. These are solely minimums that have been set to protect the interests of the Parties. Each Party will be fully responsible for risk of loss of, and damage to, any building, equipment, software or other materials owned or leased by it and used in providing the services in the Agreement.

		
	13.
	LIMITATION OF LIABILITY

13.1    No Special Damages. EXCEPT TO THE EXTENT SUCH DAMAGES ARISE OUT OF OR RELATE TO A PARTY’S (A) BREACH OF SECTIONS [***], (B) A PARTY’S [***], OR (C) A PARTY’S FRAUD, WILLFUL MISCONDUCT, OR GROSS NEGLIGENCE, IN NO EVENT SHALL EITHER PARTY BE

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LIABLE TO THE OTHER PARTY, WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE, FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES, INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, EVEN IF SUCH PARTY HAS KNOWLEDGE OF THE POSSIBILITY OF SUCH DAMAGES ARISING FROM OR RELATED TO THIS AGREEMENT.

13.2    Disclaimers of Warranties. EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT, THE PARTIES SPECIFICALLY DISCLAIM ALL WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, ARISING OUT OF OR RELATED TO THIS AGREEMENT, INCLUDING WITHOUT LIMITATION, ANY WARRANTY OF MARKETABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT, AND IMPLIED WARRANTIES ARISING FROM COURSE OF DEALING OR COURSE OF PERFORMANCE, EACH OF WHICH IS HEREBY EXCLUDED BY AGREEMENT OF THE PARTIES.

13.3    Liabilities of Parties for Regulatory Claims.  Each Party shall be liable to the  ther Party for any and all costs, expenses, liabilities, and losses, including, without limitation, the cost of investigation, the cost of litigation, and reasonable attorneys’ fees (collectively, “Losses”), in connection with any (a) claim, demand, or cause of action brought by or on behalf of any T-Mobile Customer as a result of the other Party’s failure to comply with Applicable Law, or (b) regulatory investigation conducted by any Regulatory Authority.

		
	14.
	INTELLECTUAL PROPERTY

14.1    Each Party shall be the sole owner of all right, title, and interest in and to all such intellectual property owned by it immediately preceding the Effective Date and any intellectual property acquired, created, or developed by such Party independently of this Agreement after the Effective Date. For the purposes of clarity, Bank is the owner of all right, title, and interest in and to all intellectual property and proprietary rights in and to its banking system and related technology, including, but not limited to, its mobile and web-based applications, user interface (“Bank User Interface”), data systems, databases, financial and banking processes, and related systems and processes used and operated by Bank in connection with its online banking system for retail and commercial banking and financial services (collectively, “Bank FinTech”). Company shall not, nor assist any third party’s efforts to, modify, reverse engineer, disassemble, decrypt, decompile, make derivative works of, or attempt to discover or modify in any way the underlying source code or object code relating to Bank FinTech.

14.2    As between the Parties, each Party, respectively, will be the sole and exclusive owner of all right, title, and interest in and to all intellectual property acquired from a third party or developed by or on behalf of such Party in connection with such Party exercising its rights or performing its obligations hereunder. Without limiting the foregoing, Company shall own all respective rights, title, and interest in and to any modification or customization of Bank’s User Interface, and any component thereof, created or developed by or on behalf of Company (including by Bank or any affiliate of Bank) with Bank’s authorization (the “Company Specific User Interface”), including, without limitation, any information architecture of the Company Specific User Interface, wireframes, and flows of the Company Specific User Interface, as well as the design (including the look and feel) of the Company Specific User Interface.  For the

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purposes of clarity, Company acknowledges and agrees that it is acquiring ownership rights solely in and to the modifications and customizations made to the Bank User Interface that are embodied in the Company Specific User Interface, but not any ownership rights in the Bank User Interface. The Company Specific User Interface shall constitute a “work made for hire” under the U.S. Copyright Act of 1976 (17 U.S.C. §101 et seq. and any successor statute thereto), and the ownership of the Company Specific User Interface shall vest in Company at the time it is created. To the extent any rights, title, or interest in or to the Company Specific User Interface, including any intellectual property rights, may not vest automatically in Company, whether by operation of law or otherwise, Bank hereby irrevocably assigns and transfers to Company all right, title, and interest in and to the Company Specific User Interface, including any intellectual property rights therein. For the avoidance of doubt, Customer Specific User Interface shall not be considered to be jointly-owned intellectual property.

14.3    Bank hereby grants to Company and its third-party service providers a revocable, non-transferable, non-sublicenseable, non-exclusive, worldwide, royalty-free license, during the Term and any Transition Assistance Period or Modified Transition Assistance Period, to all intellectual property it provides to Company, or to which it provides Company with access, solely for the purpose of using such intellectual property in connection with the Program and as necessary to exercise its rights and perform its obligations hereunder during the Term and any Transition Assistance Period or Modified Transition Assistance Period. Notwithstanding anything to the contrary, to the extent that the Company Specific User Interface relies on Bank intellectual property owned by Bank preceding the Effective Date or any intellectual property acquired, created, or developed by Bank independently of this Agreement after the Effective Date, Bank hereby grants to Company, under intellectual property rights owned or controlled by Bank or any Bank affiliate, an irrevocable, sublicensable, exclusive, royalty-free, perpetual, worldwide right and license to such intellectual property, including to make use the Company Specific User Interface.

14.4    The Parties shall not develop any intellectual property that will be deemed jointly- owned unless they have agreed, in advance and in writing, that such intellectual property writing will be jointly-owned. If, notwithstanding the foregoing, a “joint work of authorship” (as defined under the U.S. Copyright Act) or a “joint invention” (as defined under the U.S. Patent Act) arises in any jurisdiction in the absence of such a separate agreement, then each Party will have the right to use, license, and otherwise exploit such jointly-owned intellectual property without any restriction or obligation to account to the other Party; provided, however, that the foregoing shall not be construed as granting or conveying any right or licenses under any other intellectual property of the other Party even if necessary to use or otherwise exploit such jointly-owned intellectual property.

14.5    Bank hereby grants to Company, its parents and affiliates, and its third-party service providers a revocable, non-transferrable, non-sublicenseable, non-exclusive, worldwide, royalty-free license, during the Term and any Transition Assistance Period or Modified Transition Assistance Period, to use, host, display, reproduce, and transmit the Bank Marks for the purpose of exercising its rights and performing its obligations hereunder solely in connection with the Program.

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14.6    Company hereby grants to Bank (i) a limited, personal, revocable, non-exclusive, non-transferrable, non-sublicenseable, royalty-free sublicense, to use the DT Marks, and (ii) a limited, personal, revocable, non-exclusive, non-transferable, non-sublicenseable, royalty-free license to use the Company Marks, during the Term and any Transition Assistance Period or Modified Transition Assistance Period, in the United States, for the purpose of exercising its rights and performing its obligations hereunder solely in connection with the Program.

14.7    Bank, Company, and DT shall retain all right, title, interest and ownership in and to their respective Marks.  Neither Bank nor Company will challenge, nor assist any third party in challenging, any right, title or interest of the other Party or such Party’s licensors in their respective Marks, claim any right, title or interest in or to the other Party’s or such Party’s licensor’s Marks, or assert any interest in, or attempt to register or apply for registration of, any of the other Party’s or such Party’s licensor’s Marks or any confusingly similar variation of such Marks. Any use of Bank Marks by Company will inure to the benefit of Bank, and any use of Company Marks and DT Marks by Bank shall inure to the benefit of Company and DT, respectively. Except as provided herein, neither Party shall use the other Party’s Marks or such other Party’s licensor’s Marks, or any adaptation or variation of such Marks, in any manner whatsoever (including, without limitation, in any press releases, advertising, promotion or sales literature), without the prior written consent of the other Party. Neither Party will use the other Party’s Marks or such Party’s licensor’s Marks, or incorporate any such Marks, including any confusingly similar variation of such Marks, into any company or trade names, other marks, email addresses, gTLDs, domain names or URL strings, telephone numbers, Google AdWords (or other online paid search advertising tool), or social networking user names, “handles,” or hashtags. Each Party acknowledges that it is familiar with the high standards, quality, style and image of the other Party’s Marks or such other Party’s licensor’s Marks, and will use such Marks in a manner consistent with such uses. Neither Party will use the other Party’s Marks or such Party’s licensor’s Marks in any way that causes, or may cause, damage to the reputation, business or goodwill of the other Party or its licensors. Neither Party will do anything itself, or aid or assist any other person or entity to do anything that would, or could reasonably be expected to infringe, violate, tarnish, dilute, cause a loss of distinctiveness, harm, disparage, misuse or bring into disrepute the other Party’s Marks or such other Party’s licensor’s Marks, and/or do anything that would, or could reasonably be expected to damage the goodwill associated therewith. Each Party will meet and comply with all of the specifications and standards prescribed by the other Party or its licensors, including but not limited to (a) Bank’s standards (as set forth in Exhibit 14.7), and (b) Company’s Marks Rules (available at http://www.t-mobile.com/marksrules/) and brand guidelines. On ten (10) days written notice, either Party may require the other Party to provide a sampling of goods and media bearing the such other Party’s Marks or such Party’s licensor’s Marks to determine the manner in which such Marks are used and the nature and quality of the goods and services with which such Marks are used. To the extent a Party determines that any use of its Marks by the other Party is inconsistent with the terms and conditions of this Section 14.7, then such Party may provide written notice of such inconsistency to the other Party and the Parties will work in good faith to address the issue giving rise to such written notice within a commercially reasonable period of time. Notwithstanding anything to the contrary, Company shall maintain all right and title to, and ownership in and of, all branding used in connection with the Program (except for Banks Marks).

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14.8    Notwithstanding anything to the contrary, Company shall maintain all right and title to, and ownership in and of, all branding used in connection with the Program (except for Bank Marks).

14.9    All rights not expressly granted hereunder are reserved by the owner of such rights, and the reserved rights shall remain the exclusive property of such owner.

		
	15.
	GENERAL PROVISIONS

15.1    Indemnification.

(a)Company shall indemnify and hold harmless Bank, its parent, subsidiaries and affiliates and their respective officers, directors, employees and permitted assigns (as applicable, the “Bank Indemnified Party”), from and against any direct damages, costs, expenses, or liabilities arising from or related to any legal action, claim, demand, proceeding, order, suit, or cause of action (collectively, any “Claim”) brought against any Bank Indemnified Party by any third party in connection with: (i) Company’s breach of any representation, warranty, or covenant of this Agreement or any agreement between Company and a T-Mobile Customer in connection with the Program; (ii) Company’s breach of any of its obligations under this Agreement; (iii) Company’s negligence, willful misconduct, or bad faith; or (iv) [***].

(b)Bank shall indemnify and hold harmless Company and its parent, subsidiaries and affiliates, and their respective officers, directors, employees, and permitted assigns (as applicable, a “Company Indemnified Party”), from and against any direct damages, costs, expenses, or liabilities incurred by a Company Indemnified Party arising from or related to any Claim brought against any Company Indemnified Party by any third party in connection with Program, including, without limitation: (i) Bank’s breach of any representation, warranty, or covenant of this Agreement, (ii) Bank’s breach of any of its obligations under this Agreement or under any agreement between Bank and a T-Mobile Customer; (iiii) Bank’s negligence, willful misconduct, or bad faith, or (iv) Bank’s infringement of any third party intellectual property rights caused by Company’s use of Bank’s FinTech, the Company Specific User Interface, Bank Marks, or other similar rights licensed to a Company Indemnified Party, provided that Bank shall not be required to indemnify the Company under this subsection (iv) if Bank’s FinTech, Bank Marks, or other similar licensed rights were modified or changed by Company without Bank’s written authorization.

(c)If any Claim is asserted against an Indemnified Party by any third party in respect of which the Indemnified Party may be entitled to indemnification under the provisions of

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subsections (a) or (b) above, the Indemnified Party shall promptly provide written notice of such Claim to the Indemnifying Party from which indemnification may be sought. The Indemnifying Party shall have the right, by notifying the Indemnified Party within thirty (30) days of its receipt of the notice of the Claim, to assume the entire control of the defense of the Claim, including the right to settle the Claim at the sole discretion of the Indemnifying Party, provided that such settlement: (i) does not impose any obligation on the Indemnified Party, (ii) does not include an admission of liability by the Indemnified Party, (iii) grants the Indemnified Party a full and unconditional release from all liability with respect to the Claim, and (iv) does not otherwise adversely affect the Indemnified Party. The Indemnifying Party may not consent to the entry of any judgment with respect to a Claim without the written consent of the Indemnified Party. Any counsel retained by the Indemnifying Party for such purposes shall be reasonably acceptable to the Indemnified Party. The Indemnifying Party shall institute and maintain any such defense diligently and reasonably and shall keep the Indemnified Party fully advised as to the status thereof. The Indemnified Party shall have the right to participate in the defense of any Claim, including through employing its own counsel, but the fees and expense of such counsel shall be at the Indemnified Party’s expense, unless otherwise authorized in writing by the Indemnifying Party.

(d)The provisions of this Section 15.1 and of Section 15.2 shall survive termination or expiration of this Agreement.

		
	15.2
	Disclosure.

(a)Each Party shall promptly notify the other of any action, suit, proceeding which might give rise to any indemnification hereunder or which might materially and adversely affect either Party’s ability to perform this Agreement.

(b)Each Party represents and warrants to the other Party that it has no knowledge of any pending or threatened suit, action, arbitration or other proceedings of a legal, administrative or regulatory nature, or any governmental investigation, against it or any of its affiliates or any officer, director, or employee, which has not been previously disclosed in writing and which would materially and adversely affect its financial condition or its ability to perform this Agreement.

15.3    Legal Compliance. Each Party represents and warrants to the other Party that it is familiar with the requirements of Applicable Law and agrees that it will use commercially reasonably efforts to maintain familiarity with Applicable Law relating to its activities under this Agreement, now and in the future. The provisions of this Section 15.3 shall not alter the responsibilities of the Parties to ensure compliance as otherwise required by separate sections of this Agreement.

15.4    Program Governance. The Parties agree to adhere to the joint governance  structure for oversight and management of the Program as described in this Section 15.4.

(a)    Program Managers and Program Teams. Within thirty (30) days after the  Effective Date, each Party shall appoint one Program relationship manager (“Program Manager”).  Each Program Manager shall serve as the other Party’s principal point of contact on

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Program-related issues and shall lead the Program Manager’s respective team (“Program Team”) in executing its Party’s obligations hereunder. Each Party shall endeavor to provide stability and continuity in the Program Manager positions and each Party’s other Program personnel. Bank’s Program Team and Company’s Program Team collectively will constitute the “Joint Governance Committee.”

(b)    Joint Governance Committee. The Joint Governance Committee shall be responsible for monitoring all aspects of the Program to ensure that the Parties are exercising their rights and performing their obligations in accordance with this Agreement; provided, however, that the Joint Governance Committee shall not be authorized to amend this Agreement or modify either Party’s obligations hereunder. The Joint Governance Committee, at a minimum, shall meet in person, by phone, or by videoconference on a quarterly basis. The Joint Governance Committee shall: [***].

(c)    Within thirty (30) days after the Effective Date, each Party shall appoint two (2) senior executives to serve on an advisory board (the “Advisory Board”).  If the Joint

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Governance Committee is unable to resolve any matter of material significance, then the Joint Governance Committee shall refer the matter to the Advisory Board and the Advisory Board shall endeavor, within a reasonable period of time, to resolve such matter.

(d)    Fraud Losses. Both Parties recognize that managing losses on the Program is an essential element. Bank will implement a loss prevention program designed to detect, prevent, and mitigate losses in connection with the Program. Company shall reasonably cooperate with Bank in the implementation of loss prevention activities throughout the term of the Agreement. [***]. The Parties will meet annually to discuss Bank’s Fraud Prevention Policy.

(e)    Risk Management. The Parties will reasonably cooperate to identify the legal, financial, and reputational risks associated with the Program (including, without limitation, any information technology risks) and will manage and regularly review a transparent and accessible risk matrix that identifies such risks, including the probability and impact of such risks, as well as mitigations and contingencies to address and respond to such risks. Bank promptly shall notify Company of any material changes to Bank’s technology architecture.

15.5    Relationship of Parties. Bank and Company intend for their relationship to be that of independent contractors in performing their respective obligations hereunder. Nothing in this Agreement or in the working relationship established and developed hereunder shall be deemed to be, nor shall it cause, Bank and Company to be treated as partners, joint venturers, employees or joint associates for profit.

15.6    Regulatory Examinations and Financial Information. Company agrees to submit to any examination which may be required by any Regulatory Authority with audit and examination authority over Bank, to the fullest extent of such Regulatory Authority. Company shall also provide to Bank any information, which may be required by any Regulatory Authority in connection with their audit or review of Bank or the Program, and shall reasonably cooperate with such Regulatory Authority in connection with any audit or review of Bank. Nothing in this Agreement shall limit the right of any Party to this Agreement to seek injunctive relief, to the extent available, with respect to breaches of this Agreement.

15.7    Governing Law. This Agreement shall be governed by the internal laws, and not by the laws regarding conflicts of laws, of the State of New York. Each Party hereby submits to the jurisdiction of the courts of the State of New York, and hereby waives any objection to venue with respect to actions brought in any court in the State of New York.

15.8    Severability. If any provision of this Agreement is deemed by a court, Regulatory Authority, or other public or private tribunal of competent jurisdiction to be invalid or otherwise unenforceable, then such provision shall be deemed to have been omitted from this Agreement.  In the case of the foregoing, the remaining provisions of this Agreement shall remain in full force and effect.

		
	15.9
	Force Majeure.

(a)Neither Party is liable for the failure of such Party to perform its obligations hereunder if such failure is the result of an act of God (including fire, flood, earthquake, storm,

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hurricane or other natural disaster), war, invasion, act of foreign enemies, hostilities (regardless of whether war is declared), civil war, rebellion, revolution, insurrection, military or usurped power or confiscation, terrorist activities, government sanction, blockage, embargo, labor dispute, strike, lockout or interruption or failure of electricity or telephone service (each, a “Force Majeure Event”).

(b)If either Party asserts this Section 15.9 as an excuse for the failure to perform its obligations hereunder, then the non-performing Party must prove that the Party took commercially reasonable steps to minimize any delay or damages caused by foreseeable events, that the Party substantially fulfilled all non-excused obligations, and that the other Party was timely notified of the likelihood or actual occurrence of a Force Majeure Event.

15.10    Survival. Any rights and obligations of Bank and Company which, by their nature, should extend beyond the termination of this Agreement shall survive the termination of this Agreement, including any representations and warranties made by each Party, the indemnification obligations of each Party, and the liability provisions hereof.

15.11    Successors and Third Parties. Except as limited by Section 15.12, this Agreement and the rights and obligations hereunder shall bind and inure to the benefit of the Parties and their successors and permitted assigns.

15.12    Assignments. Except as otherwise provided in this Section 15.12, neither Party may assign this Agreement, or any rights hereunder, without the other Party’s prior written consent; provided, that (i) Company may assign this Agreement, or any of its rights hereunder, to any affiliate of Company, and (ii) Bank may assign this Agreement, or any of its rights hereunder, to a Durbin-Exempt Bank as contemplated by and subject to Section 8.1(l). If a Party attempts to assign this Agreement, or any rights hereunder, without the other Party’s consent, then the other Party may terminate this Agreement, without penalty, immediately upon written notice to the other Party. Notwithstanding anything to the contrary, Company may assign this Agreement in the event of a change of Control of Company. If Bank assigns this Agreement subject to and in accordance with Section 8.1(l) or this Section 15.12, then, notwithstanding anything to the contrary, Bank shall be bound by and comply with Bank’s confidentiality obligations and the exclusivity provisions of this Agreement as if Bank were still a party to this Agreement.

15.13    Notices. All notices, requests, and approvals required by this Agreement shall be in writing addressed and directed to the other Party at the mailing address, electronic mail address, or facsimile set forth below or at such other mailing address, electronic mail address, or facsimile as the Parties may designate in writing from time to time subject to and in accordance with this Section 15.13. Notices, requests, and approvals shall be deemed to have been given upon the earlier of (i) the receipt of an electronic mail or facsimile transmission during normal business hours or (ii) the actual receipt thereof. Notices, requests and approvals shall be addressed to the attention of:
Bank to:    Customers Bank
ATTN: [***] 
115 Munson Street
New Haven, Connecticut 06511

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With a copy to:    Customers Bank
ATTN: [***]
1015 Penn Avenue
Wyomissing, Pennsylvania 19610

Company to:    T-Mobile USA, Inc.
ATTN: [***]
12920 SE 38th Street
Bellevue, Washington 98006-1250

With a copy to:    T-Mobile USA, Inc.
ATTN: General Counsel 12920 SE 38th Street
Bellevue, Washington 98006-1250

15.14    Waivers. Neither Party shall be deemed to have waived any of its rights, power, or remedies hereunder, except in a writing signed by an authorized agent or representative of the Party to be charged. Either Party may, by an instrument in writing, waive compliance by the other Party with any term or provision of this Agreement. The waiver by either Party of a breach of any term or provision of this Agreement shall not be construed as a waiver of any subsequent breach.

15.15    Entire Agreement: Amendments. This Agreement, including any exhibits, schedules, and attachments, constitutes the entire Agreement between the Parties and supersedes all prior agreements, understandings, and arrangements, oral or written, between the Parties with respect to the subject matter hereof. This Agreement may not be modified or amended except by an instrument or instruments in writing signed by the Party against which enforcement of any such modification or amendment is sought.

15.16    Counterparts. This Agreement may be executed and delivered by the Parties in counterparts, each of which shall be deemed an original and both of which, together, shall constitute one and the same instrument. Facsimile or other electronically delivered copies of signature pages to this Agreement shall be treated between the Parties as original signatures for all purposes.

		
	15.17
	Disputes.

(a)    Duty to Notify. In the event of any dispute, controversy, or claim arising out of or relating to this Agreement or the construction, interpretation, performance, breach, termination, enforceability or validity thereof (hereinafter, a “Dispute”), the Party raising such Dispute shall notify the other Party promptly and no later than one-hundred eighty (180) days from the date of its discovery of the Dispute. If a Party fails to notify the other Party of a Dispute relating to a T- Mobile Customer Account, transaction statements or any other similar matter within one- hundred eighty (180) days of the date of the discovery of the Dispute, then the matter shall be deemed to be undisputed and accepted by the Party attempting to raise the Dispute.

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(b)    Cooperation to Resolve Disputes. The Parties shall cooperate and attempt in good faith to resolve any Dispute promptly by negotiating between persons who have authority to settle the Dispute and who are at a higher level of management than the persons with direct responsibility for administration and performance of the provisions or obligations of this Agreement that are the subject of the Dispute.

(c)    Arbitration. Any Dispute which cannot otherwise be resolved as provided in paragraph (b) above shall be resolved by arbitration conducted in accordance with the commercial arbitration rules of the American Arbitration Association, and judgment upon the award rendered by the arbitral tribunal may be entered in any court having jurisdiction thereof. The arbitration tribunal shall consist of a single arbitrator mutually agreed upon by the Parties, or in the absence of such agreement within thirty (30) days from the first referral of the dispute to the American Arbitration Association, designated by the American Arbitration Association. The place of arbitration shall be New York, NY, unless the Parties shall have agreed to another location within fifteen (15) days from the first referral of the dispute to the American Arbitration Association. The arbitral award shall be final and binding. The Parties waive any right to appeal the arbitral award, to the extent a right to appeal may be lawfully waived. Each Party retains the right to seek judicial assistance: (i) to compel arbitration, (ii) to obtain interim measures of protection prior to or pending arbitration, (iii) to seek injunctive relief in the courts of any jurisdiction as may be necessary and appropriate to protect the unauthorized disclosure of its proprietary or confidential information, and (iv) to enforce any decision of the arbitrator, including the final award. In no event shall either Party be entitled to punitive, exemplary or similar damages.

(d)    Confidentiality of Proceedings. The arbitration proceedings contemplated by this Section 15.17 shall be as confidential and private as permitted by law; provided, however, that either Party is permitted to disclose the proceedings to accountants, legal counsel and professional advisors. To that end, the Parties shall not disclose the existence, content or results of any proceedings conducted in accordance with this Section 15.17, and materials submitted in connection with such proceedings shall not be admissible in any other proceeding, provided, however, that this confidentiality provision shall not prevent a petition to vacate or enforce an arbitral award, and shall not bar disclosures required by any laws or regulations.

15.18    Headings and Construction. The various captions and section headings in this Agreement are included for convenience only and shall not affect the meaning or interpretation of any provision of this Agreement. Notwithstanding anything to the contrary, in all cases, the use of the term “including” shall be construed as being inclusive and shall be deemed to mean “including, without limitation,”.

[Signature Page Follows]

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IN WITNESS WHEREOF, this Agreement is executed by the Parties’ authorized officers or representatives and shall be effective as of the date first above-written.
	
					
	T-MOBILE USA, INC. (COMPANY)
	 
	CUSTOMERS BANK (CUBI)

	By:
	/s/ [***]
	 
	By:
	/s/ [***]

	Name:
	[***]
	 
	Name:
	[***]

	Title:
	[***]
	 
	Title:
	[***]

	Date:
	2/23/2017  |  7:48 PM PST
	 
	Date:
	February 24, 2017

APPROVED AS TO FORM
/s/  [***]                               
T-MOBILE LEGAL

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EXHIBIT A COMPANY REVENUE

On a monthly basis, Bank shall prepare a compilation of revenue and expense items associated with the Program as set forth in this Exhibit A and shall provide detailed reports to the Company by the fifteenth (15th) day following the month in which the Program was operated and the T-Mobile Financial Services were provided.  Amounts due to Bank will be paid in accordance with Section 9.4 of the Agreement.  Amounts due to Company will be paid in accordance with Section 9.5 of the Agreement.

Company shall be compensated by Bank as follows:

[***]

[***]

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EXHIBIT B

FEE SCHEDULE

	
				
	 
	 
	 
	 

	Card Production

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	Transaction Fees

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

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	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	 
	[***]

	[***]
	[***]
	[***]
	[***]

	Alerts

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

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	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	[***]

	[***]
	[***]
	[***]
	 

	[***]
	[***]
	[***]
	[***]

-    [***]

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EXHIBIT C

SERVICE LEVEL AGREEMENTS

Service Level Implementation: The provisions in this Exhibit C shall be measured on a going-forward basis beginning [***] after the Launch Date. Bank, at all times during the Term, shall comply with the service levels set forth in the table below (each, a “Service Level”).

Service Level Assumptions:

1.Each Service Level set forth in the table below is expressed as a simple average and is measured on a monthly basis.

2.Response time for electronic authorizations shall exclude any authorizations requiring manual intervention and shall exclude transaction transmission time.

3.T-Mobile Customer Account applications that Bank is reviewing under special circumstances requiring manual intervention, such as a fraudulent T-Mobile Customer Account application, shall not be included in the measurement of performance.

4.Any Service Level failure that is the result of a Force Majeure Event shall be excluded from consideration in measuring compliance with this Exhibit C.

5.If a single event causes more than one Service Level failure during a month, such event shall be deemed a single failure for purposes of this Exhibit C.

6.If Company does not provide Bank with sufficient advance notice of changes in its systems and such changes cause Bank to miss a Service Level for the period, the Service Level will not be deemed to have been failed.

7.Both Parties acknowledge and agree that Company-driven changes to [***] could potentially alter [***]. If such changes occur, the Parties agree [***].

Bank shall report to Company, on a monthly basis and in a mutually agreed format, Bank’s performance under each of the Service Levels set forth in this Exhibit C.

Service Failure Payments:

If Bank fails to meet any Critical Service Level in any [***], then no later than the [***] of the following month, Bank shall deliver to Company a report detailing the reason(s) for such failure and a corrective action plan. Bank shall implement such corrective action plan as soon as practicable but no later than [***].  Bank shall deliver to Company a second report, [***], assessing the preliminary results of the plan.  During any twelve (12)

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month period, the month immediately following Bank’s initial failure to meet any Service Level shall be a cure month (“Cure Month”) [***]. If Bank fails to meet the same Service Level more than once during any twelve (12) month period [***], Company will be eligible for a Performance Credit in the amount corresponding to the magnitude of the failure to meet the Service Level for the second and each subsequent time during such twelve (12) month period.

By way of illustration, if Bank’s Critical Service Level is [***], the difference between the target Service Level of [***] and the actual Service Level would be [***] and Bank would pay a Performance Credit in the amount of [***] for the Service Level failure of the Non- Critical Service Level. [***]; provided, that in the event of the foregoing, Company shall have the right to terminate the Agreement.

Table of Payments for Service Level Failures

	
				
	 
	Difference in Target Service Levels from Actual Service Levels Achieved in
Basis Points

	 
	[***]
	[***]
	[***]

	Critical Service Level Contact Center
	[***]
	[***]
	[***]

	Critical Service Level Non-Contact Center
	[***]
	[***]
	[***]

	Non-Critical Service Level
	[***]
	[***]
	[***]

Determination of Bank Events of Default Due to Service Level Failures

		
	•
	The following failures shall each constitute a “Service Level Termination Event”: A failure to meet the same Critical Service Level being more than [***] below the target for [***]; or

		
	•
	A failure to meet any combination of one or more Critical Service Levels [***].

Company may only exercise its termination rights in respect of any Service Level Termination Event if the applicable Service Level failure(s) has a material adverse effect on the Program or on Company in Company’s reasonable judgment. [***].

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Service Levels:

	
			
	KEY PERFORMANCE METRIC
	SERVICE LEVEL REQUIREMENT/GOAL/TARGET
	CATEGORY

	Average speed of calls answered
	[***]
	[***]

	Abandoned call rate
	[***]
	[***]

	Call blockage
	[***]
	[***]

	Application response turnaround
	[***]
	[***]

	Initial Card or Card replacement turnaround time (this does not include expired cards which will be mailed in batch, 3 weeks in advance of the expiration date)
	[***]
	[***]

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	 	KEY PERFORMANCE METRIC
	SERVICE LEVEL REQUIREMENT/GOAL/TARGET
	CATEGORY

	 	T-Mobile Customer inquiry turnaround time (paper/email)
	[***]
	[***]

	 
	 
	 	Card authorization times
	[***]
	[***]

	 	Card authorization availability
	[***]
	[***]

	 	Website and application uptime
	[***]
	[***]

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	KEY PERFORMANCE METRIC
	SERVICE LEVEL REQUIREMENT/GOAL/TARGET
	CATEGORY

	Dispute resolution
	[***]
	[***]

	Transaction posting
	[***]
	[***]

	Statement production
	[***]
	[***]

	Statement accuracy
	[***]
	[***]

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EXHIBIT D
BANK DUTIES
1.Bank shall administer the Program and provide the T-Mobile Financial Services subject to and in accordance with the Agreement and Applicable Law.

2.Approval of Prospective T-Mobile Customers.  Bank shall use best efforts, based on mutually agreed upon criteria, to approve prospective T-Mobile Customers that are existing customers of Company to participate in the Program.

(a)    Applications. Bank shall process all complete T-Mobile Customer Account applications from prospective T-Mobile Customers. Bank shall be responsible for making all decisions regarding the approval of T-Mobile Customer Account applications; provided, that, Bank shall use standards that are at least as favorable to the approval of applications submitted in connection with the Program as the standards used by Bank in connection with prospective Bank customers and with other programs administered or operated by Bank in determining whether to approve T-Mobile Customer Account applications in connection with the Program.  Company acknowledges that Bank has the authority to approve applications and establish T-Mobile Customer Accounts; provided, however, that if Bank’s approval rate for all completed T-Mobile Customer Account applications is below [***] (the “Approval Rate”) for any calendar quarter and does not meet or exceed the Approval Rate in the following calendar quarter, then the Parties shall meet promptly to discuss, in good faith, reasonable adjustments that can be made to meet or exceed the Approval Rate.  If the Parties do not agree upon reasonable adjustments, then Company may terminate the Agreement without penalty. In the event of the foregoing, Bank shall be obligated to provide Transition Assistance Services in accordance with the Agreement.

(b)    Service Lines.  Bank shall use standards in connection with the Program that are at least as favorable as the standards used by Bank in connection with Bank’s customers and with other programs administered or operated by Bank with respect to establishing available products and services and, to the extent applicable, the amount of such products and services, for prospective T-Mobile Customers.

3.Service Level Agreements.  Bank shall provide and administer the Program and the T-Mobile Financial Services in accordance with the Service Levels in Exhibit C. Bank represents and warrants that such Service Levels are at least as favorable as the service level agreements by which Bank abides in connection with Bank’s customers and to which Bank agrees in connection with other programs administered or operated by Bank.

4.Bank Reporting Requirements.  Bank shall track the metrics set forth in Exhibit I and such other metrics as may be requested by Company from time to time and shall provide to Company the reports set forth in Exhibit I, including any raw data (except for personally identifiable information) requested by Company, in a form acceptable to Company and at the frequency specified in Exhibit I.

5.Risk and Fraud Management.  Bank shall be responsible for establishing a program to monitor and reduce risk and fraud in connection with the Program.

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6.Inactive Account Closures. Bank will implement an account closure process that is consistent with Applicable Law and industry best practices to manage fraud losses.  Each of Bank and Company acknowledge and agree that this process may change from time to time upon mutual agreement of the Parties. As of the Effective Date, the Parties agree that the current process will be as follows:

(a)    T-Mobile Customer Accounts that have had no balance and no activity for [***] or more will be closed. After [***] of no balance and no activity, the T-Mobile Customer will be notified by Bank that the T-Mobile Customer Account has had no balance and no activity for [***], and that the T-Mobile Customer Account will be closed if the zero balance and inactivity persists for another [***]. After [***] of no balance and no activity, the T-Mobile Customer will be notified by Bank that, as a result of the T-Mobile Customer Account having no balance and no activity for a period of [***], the T-Mobile Customer Account has been closed.  Bank shall establish a simple reinstatement process that will allow T-Mobile Customers to reinstate their T-Mobile Customer Accounts and deposit any amounts, within the established limits of the Program, in their T-Mobile Customer Accounts through the Mobile Application.

(b)    T-Mobile Customer Accounts that have had a balance of less than [***] and no activity for [***] or more will be closed and a check in the amount of the remaining balance in the T-Mobile Customer Account will be mailed to the T- Mobile Customer’s last known address. After [***] of a balance of less than [***] and no activity, the T-Mobile Customer will be notified by Bank that the T-Mobile Customer Account will be closed if the balance remains below [***] and the inactivity persists for another [***].  After [***] of a balance of less than [***] and no activity, the T-Mobile Customer will be notified by Bank that the T-Mobile Customer Account will be closed if the balance remains below [***] and the inactivity persists for another [***].  After [***] of a balance of less than [***] and no activity, the T-Mobile Customer will be notified by Bank that, as a result of the T-Mobile Customer Account having a balance of less than [***] and no activity for a period of [***], the T-Mobile Customer Account has been closed and a check for the remaining balance will be mailed to the T-Mobile Customer’s last known address. Bank shall establish a simple reinstatement process that will allow T-Mobile Customers to reinstate their T-Mobile Customer Accounts and deposit the check received by the T-Mobile Customer or any other amounts, within the established limits of the Program, in their T-Mobile Customer Accounts through the Mobile Application.

7.Core Account Management and Services. Bank shall provide core T-Mobile Customer Account management and services as further described in this Section 7.

		
	(a)
	General.

(i)    Bank shall obtain any and all information and data from T-Mobile Customers necessary to provide the T-Mobile Financial Services in a manner that is secure and that will enable [***]

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[***]. Bank shall be responsible for proper accounting of all transactional activity through the T-Mobile Customer Accounts, including: (i) [***].

(ii)    Bank shall provide or otherwise facilitate [***] functionality in connection with the Program.

(iii)    Bank shall provide or otherwise facilitate [***] in connection with the Program.

(iv)    Bank shall provide or otherwise facilitate [***], as mutually agreed by Company and Bank.

(v)    Bank shall provide [***] in accordance with industry standards.

(vi)    Bank may provide access to other financial products and services, [***] as may be requested and mutually agreed by the Parties from time to time.

(vii)    Bank shall service T-Mobile Customer Accounts and Cards and shall provide any and all related services in connection therewith, including, without limitation, direct and indirect T-Mobile Customer support related to T-Mobile Financial Services in accordance with the Service Levels in Exhibit C.

(viii)    At Company’s request and expense, Bank shall provide [***] any other reasonable activity as may be requested and mutually agreed by the Parties from time to time.

		
	(b)
	FDIC Insurance.

(i)    Bank shall create and maintain Deposit Accounts with certain features [***], as determined by Company from time to time, and offer such Deposit Accounts to T-Mobile Customers in connection with the Program. Bank shall hold T-Mobile Customers’ funds in T-Mobile Customer Accounts in a manner that complies with Applicable Law [***].

(ii)    [***]

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	(c)
	Payment Card Networks.

(i)    Bank shall maintain, at all times, its status as a participant and member in the payment card networks as necessary and appropriate to properly administer the Program and provide the T-Mobile Financial Services, [***].

(ii)    Bank shall issue Cards enabled on the payment card networks selected by Company to T-Mobile Customers in accordance with the rules of the payment card networks. Bank shall produce all Cards issued to T-Mobile Customers in connection with any T-Mobile Customer Account, subject to Company’s approval and in accordance with the payment card network rules and requirements.

(iii)    Bank shall be responsible for: (1) decisioning all Card authorizations initiated by T-Mobile Customers based on the funds available in such T-Mobile Customer Account; (2) maintaining and managing all Cards, both prior to and after the issuance of, such Cards; and (3) managing all aspects of security in connection with such Cards, including allowing T-Mobile Customers to select and change their password identification numbers (“PINs”) from time to time; in each case, in accordance with the payment card network rules and requirements.

(iv)    Bank shall be responsible for managing any and all aspects of Card  activity in connection with any T-Mobile Customer Account, including for authorizing, clearing, and settling transactions in connection with the Program and for compliance with the payment card network rules and requirements.

8.Bank Provision of Back Office Support. Bank shall provide [***] in connection with the Program in accordance with commercially reasonable standards or as otherwise agreed by the Parties.

9.Bank shall be responsible for maintaining procedures for the identification of each new T-Mobile Customer upon the establishment of a T-Mobile Customer Account within a reasonable time thereafter as required by Applicable Law. Such procedures shall be designed to comply with the requirements of the federal Bank Secrecy Act, the federal USA PATRIOT Act, any regulations adopted pursuant to such acts, as well as applicable regulations of the Office of Foreign Assets Control.

10.Digital Services. Bank shall develop and maintain a digital banking platform (the “Digital Banking Platform”) in accordance with the technical specifications (as mutually agreed by the Parties in connection with the Program, and in accordance with Exhibit F.

(a)    The Digital Banking Platform shall be developed and maintained to function across multiple digital and mobile platforms and shall include, at a minimum, (i) an online banking offering (the “Online Offering”) and (ii) a mobile banking offering (the “Mobile Offering”). Company reserves the right, in its sole discretion, to select the set of products and features offered by the Bank (the “Product and Feature Set”) that shall be developed and maintained in connection with the Digital Banking Platform and to change, from time to time,

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the Product and Feature Set described in Exhibit F offered to T-Mobile Customers.  Company may integrate third-party services into the Digital Banking Platform; provided, that, such integration is permitted by Applicable Law and is consistent with commercially reasonable security standards.

(b)    Bank agrees that, in connection with the Online Offering and the Mobile Offering, Bank shall make available, on a non-discriminatory basis, and implement any and all software, applications, specification standards, software development kits, application programming interfaces, and any related documentation to Company and/or to any third-party service providers designated by Company.  Bank shall be responsible for managing and implementing any and all aspects of the interfaces in connection with the Online Offering and the Mobile Offering and the payment card networks.  Bank shall be obligated to provide the information and materials required pursuant to this Subsection (b) regardless of whether Company’s Product and Feature Set could compete with any of Bank’s then-current Product and Feature Sets or future Product and Feature Sets. For the avoidance of doubt, Bank shall be under no obligation to provide Company with Bank’s source code.

(c)    Bank agrees that, in connection with the Online Offering and the Mobile Offering, Bank shall develop and maintain a mobile application to be used in connection with the Program (the “Mobile Application”) in accordance with the design specifications provided by Company. Bank further agrees that the Mobile Application shall be made available to T-Mobile Customers through multiple mobile application stores, [***]. Bank shall develop and maintain the capabilities necessary to provision Cards to any and all mobile wallets designated by Company from time to time, [***] (collectively, the “Mobile Wallets”). Bank shall develop and maintain integration into the Mobile Wallets, as agreed upon by all parties, to enable a T-Mobile Customer to use the Mobile Wallets [***] upon activating and funding a T-Mobile Customer Account. Bank shall deliver to T-Mobile Customers the [***].

(d)    The Parties shall develop, implement and maintain the customer activation process (the “Customer Activation Process”) for new T-Mobile Customers. The Customer Activation Process may be updated or amended from time to time upon mutual agreement by the Parties. The Parties further agree that they will jointly work to develop a method by which they may leverage existing data, in a secure manner, held by Company to pre-qualify prospective T-Mobile Customers for participation in the Program.

(e)    Program Testing.  The Parties agree that they will launch a beta version of the Program (the “Beta Version”) [***] of the Effective Date (the “Beta Program”), the purpose of which is to ensure that the Digital Banking Platform is commercially ready and operationally functional in accordance with the Agreement.  The Parties

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agree that, as a condition precedent to launching the Beta Program, the Beta Version must be delivered to and accepted by Company. Upon delivery of the Beta Version to Company, Company shall accept or reject the Beta Version within [***].  If Company accepts the Beta Version, the Parties will launch the Beta Version to designated employees of Company and Bank, as mutually agreed by the Parties. If Company rejects the Beta Version, Company shall notify Bank of such rejection and shall describe, in reasonable detail, Company’s reason(s) for rejecting the Beta Version (the “Rejection Notice”).  Upon receiving the Rejection Notice, Bank shall make any modifications necessary to address Company’s concerns and shall deliver the updated Beta Version to Company within [***] and Company shall approve or reject the updated Beta Version within [***] after receiving the updated Beta Version.  The Parties shall repeat this process until Company has accepted the Beta Version.  If Bank fails to deliver the agreed upon features and functionality set forth in Exhibit F in the Beta Version, or if Company rejects the Beta Version, and Bank fails to remedy any issue(s) identified in the Rejection Notice within [***], then Company may terminate the Agreement immediately without penalty. Bank shall operate the Beta Program for a period of [***] or for such longer period as may be mutually agreed by the Parties. The Parties shall agree on a process for monitoring the Beta Program and for identifying and correcting any issues with the Beta Version; provided, that, Bank shall be required to correct any issue(s) with the Beta Version (including by implementing any fixes) within [***] of identifying such issue(s). Bank shall be responsible for monitoring the Beta Program and for identifying any issues uncovered through the operation of the Beta Program within [***] of identifying any such issues.

11.Bank will annually obtain and deliver to Company, at Bank’s sole expense, a Statement on Standards Attestation Engagement (SSAE) No. 16 Service Organization Controls (SOC) No.1 Type II, the international equivalent (ISAE 3204 Type II report), or an industry equivalent report agreed to by Company for any services performed or outsourced by Bank that are financially relevant to Company (including, without limitation, transaction processing or data-center management). The scope of any report will include control testing of both Bank’s and any third party’s information technology systems and any material reports provided to Company and will cover [***]. A full copy of the annual SSAE 16 SOC1 Type II or industry equivalent report will be provided to Company no later than [***]. In response to an inquiry from Company [***], a representative from Bank will provide a bridge letter indicating that there have not been any material changes in the internal controls described in the most recent SOC1 Type II report since it was issued or any significant deficiencies in the design or effectiveness of Bank’s internal controls and procedures that would require any corrective action.

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EXHIBIT E
ACCOUNT LOSS [***]
	
					
	Account Loss [***]
	Account Losses in 
Percentages [***]
	[***]
	[***]

	Tier 1
	[***]
	[***]
	[***]
	[***]

	Tier 2
	[***]
	[***]
	[***]
	[***]

	Tier 3
	[***]
	[***]
	[***]
	[***]

For purposes of this Exhibit E, “Account Loss” or “Account Losses” means “losses, net of recovery, from fraud, disputed items, return deposits, forced card transactions, and reclamations in connection with Card and T-Mobile Customer Account activity.

[***]

[***]

Notwithstanding anything to the contrary, the measurement period for Account Losses will be the [***] thereafter (each, a “Measurement Period”).  At the end of a Measurement Period, the Parties will review the Account Losses [***].

The Parties agree to meet [***] to review performance of the Account Losses [***].

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EXHIBIT F

FEATURES AND FUNCTIONALITY

	
				
	Timeframe
	Table Stakes
	Mobile-First
	[***]

	Launch (see above)
	 Availability:
 Bank’s mobile application will available to be delivered within various mobile App stores 
 Account Management:
•    [***]
•    View balance
•    View transaction history
•    Search for transactions
•    [***]
•    View statements
•    View basic account info [***]
Money In/Money Out:
•    Debit card
•    [***]

•    [***]

•    [***]

•    [***]

•    [***]

•    [***]

•    [***]

•    [***]
	 Account Access:
•    [***]
•    [***]
•    [***]
•    [***]

 Activation/Enrollment:
•    Streamlined [***] enrollment [***] for checking and savings accounts
•    [***]
•    [***]
•    [***]
•    [***]

Money In/Out:
•    Mobile wallet provisioning (virtual or physical card)
•    [***]
•    [***]
•    [***]
•    [***]
•    [***]
•    [***]

 Alerts:
•    [***]
•    [***]
•    [***]
•    [***]
	[***]

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	•    [***]
•    [***]
•    [***]
•    [***]
•    Access & security alerts
•    [***]
•    [***]
Self Service:
•    Activate debit card
•    [***]
•    [***]
•    Secure messaging center
•    Contact us (with preloaded contact information)
•    Update name, address, phone, email
•    Add account nicknames
•    [***]
•    Suppress paper statements
•    [***]
•    Privacy policy
•    Disclosures
•    Other legal agreements
•    FAQs
•
	 

	Launch + 4 months
	[***]
	[***]
	[***]

                                                                
1     Bank will use best efforts to provide this functionality prior to its scheduled launch.

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	[***]
	[***]

	Launch +8 months
	 
	Self-Service:
•    [***]
	[***]

2  These features are excluded from the exclusivity requirements in Section 15.4(b).

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EXHIBIT G

DESCRIPTION OF [***] CUSHION

The basic outline of the feature would be as follows:

[***]

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EXHIBIT H INTENTIONALLY BLANK

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EXHIBIT I 

REPORTING

		
	(a)
	Bank shall provide the following daily reports or digital information:

		
	(i)
	Bank shall provide reports with respect to the amount of deposits, the number of transactions conducted by a T-Mobile Customer, and any other relevant metrics.

		
	(ii)
	Bank shall provide reports that detail the number and nature of complaints and customer service calls that Bank receives in connection with any Account.

		
	(iii)
	Bank shall provide reports that detail any unusual, unauthorized, or suspicious activity or transactions involving Accounts.

		
	(iv)
	Bank shall provide reports to monitor Program performance, key operating and risk metrics, service levels, and marketing effectiveness.

		
	(v)
	Bank shall provide reports that detail the number of Account applications submitted, the number of Account applications approved, the number of Account applications denied, and the number of new Accounts generated by channel.

		
	(vi)
	Bank shall provide reports that detail the total number of open accounts, the total number of closed accounts, and the total number of active accounts and such reports shall provide a breakdown of this information by Company subscribers and non-subscribers (i.e., a separate report for subscribers and a separate report for non-subscribers).

		
	(vii)
	Bank shall provide any other management reports, as mutually agreed by the Parties.

		
	(viii)
	Bank shall provide reports related to the Digital Banking Platform and application reporting, including, without limitation, with respect to performance, usage, and other relevant metrics.

		
	(ix)
	Bank shall provide reports related to the support provided to T-Mobile Customers, including, without limitation, the number of open and closed trouble tickets, any relevant open issues, and other support issues.

		
	(x)
	Bank shall provide reports in connection with revenue and expense performance, business performance, compliance performance, and any other relevant performance measures.

		
	(b)
	In addition to the reports required under Section (a) of this Exhibit I, Bank shall

(i) create and deliver separate weekly statistical information about volumes related to the

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program, (ii) provide, by the third (3rd) business day of the following month, end of month reports to enable Company to accrue for activity occurring in the then-current month, and (iii) provide by the seventh (7th) business day a prior month revenue and expense reports to Company (“Revenue and Expense Reports”).  The Revenue and Expense Reports: (1) shall report gross amounts; (2) shall not net any line items; (3) shall support funds received (i.e., grossed-up reporting should match ACH amounts); (4) shall not include any customer-level information; and (5) shall separate revenue and expenses by Company subscribers and non-subscribers.  Each revenue item or fee identified in the Revenue and Expense Reports shall be a separate line item with the amount of the revenue or fee, as applicable, and the method for calculating the amount (i.e., per unit amount, counts, rates, number of days, etc.).

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EXHIBIT J

SECURITY SAFEGUARDS, COMPANY INFORMATION, AND CARDHOLDER INFORMATION

Capitalized terms used but not defined in this Exhibit J shall have the meanings ascribed to such terms in the Agreement.

“Applicable Privacy and Data Security Laws” means all privacy, security, data protection, direct marketing, consumer protection, and workplace privacy laws, rules, and regulations and all then-current industry standards, guidelines, and practices with respect to privacy, security, data protection, direct marketing, consumer protection, or workplace privacy, including the collection, processing, storage, protection, and disclosure of personal information.

“Company Information” means any information [***].

1.Handling of Company Information.

1.1.    Bank: (a) [***]; (b) will, without limiting any other obligations applicable to Company Information, treat and protect all Company Information as Confidential Information owned (as between Bank and Company) by Company and the Agreement regardless of whether Bank receives it directly from Company, Company affiliates, or any of its or their customers, designees, intermediaries, or other third parties; and (c) will ensure that all persons who have access to Company Information [***].

1.2.    Bank will comply with all Applicable Privacy and Data Security Laws and will not cause Company to be in violation of any Applicable Privacy and Data Security Laws.

1.3.    Bank will comply with all written privacy and security policies of Company upon execution of the Agreement or, in the case of future or updated policies, [***], subject to Section 2.4 below.

1.4.    If Bank has access to or possesses (including as a result of de-identification of Company Information by Bank) any De-Identified Data (as defined below), Bank covenants that

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[***].  “De-Identified Data” means Company Information that has been scrubbed, hashed, encrypted, or otherwise obscured to remove any personally identifiable information.

1.5.    [***].

1.6.    For clarity, Bank’s compliance with any particular provision of this Exhibit J will not relieve Bank’s obligation to protect Company Information and other Confidential Information of Company under all provisions of the Agreement, including this Exhibit J.

		
	2.
	Security Safeguards.

2.1.    Bank shall be fully responsible for any authorized or unauthorized collection, storage, disclosure, use of, and access to Company Information under its control or made available to Bank under the Agreement.  Bank will prevent any collection, storage, disclosure, use of, or access to Company Information not expressly authorized by the Agreement. Without limiting Bank’s other obligations under this Exhibit J, Bank will implement and maintain a comprehensive and effective written information security program appropriate to the nature of the Company Information that: (a) [***] (“Safeguards”), (b) meets industry best practices for such Safeguards, and (c) complies with all Applicable Privacy and Data Security Laws.  Bank will (i) [***], (ii) [***], and (iii) [***]. Company reserves the right to review, upon request, Bank’s policies, procedures, and practices used to maintain the privacy, security, and confidentiality of Company Information.

2.2.    Bank shall, while this Agreement is in effect, prepare and maintain an information and physical security program in connection with the Program in accordance with the requirements of its Regulatory Authority and Applicable Law. [***]. Bank shall periodically test such information security infrastructure as required by Applicable Law and its Regulatory Authority and as appropriate and prudent in light of the nature and scope of the

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activities and operations of Bank and its obligations hereunder.

2.3.    Bank will: (a) [***]; (b) [***]; (c) [***]; (d) [***]; (e) [***]; (f) [***]; (g) [***]; and (h) [***].

2.4 Changes to Security Program.  Bank will, [***] update its security program and operations (including network and business systems and software) as necessary for ongoing compliance with the Agreement. Such updates will include updates to: (a) [***], (b) [***], (c) maintain current compliance with Applicable Privacy and Data Security Laws, and (d) meet new legal or regulatory requirements under other Applicable Law. To the extent a change in Bank practices is required [***], any changes to Bank’s security program or other operations in connection with the Program will be made in accordance with the requirements of Bank’s Regulatory Authority. To the extent additional controls or mitigation plans are required to correct a security vulnerability within Bank Systems (as defined below), identified by a security audit or are required by Applicable Law (including changes in Company policies adopted to comply with Applicable Law), such steps will [***].

		
	3.
	Security Breaches.

3.1.    Bank represents and warrants that: (a) [***] (each, a “Security Breach”); and (b) if the Bank Systems have suffered [***] Security Breaches, that Bank has disclosed each Security Breach to Company in writing. Bank represents and warrants that [***].

3.2.    Bank will notify Company [***] if Bank learns that there has been any actual Security Breach that may impact Company Information.  In any notification

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to Company required under this Section 3.2, Bank will [***]. Bank will: (a) [***]; and (b) [***]. Bank will [***]. Unless prohibited by Applicable Law or court order, Bank will [***].  Except as required by Applicable Law, (x) [***], and (y) [***] (e.g., [***]) [***].

4.Bank Risk Management Review, Annual Security Audits & Visitation and Inspection Rights.

4.1.    Bank Risk Management Review.  Company reserves the right to require Bank to complete Company’s Bank Risk Management Review (“SRMR”) process [***].

4.2.    Previous Security Audits.  Bank hereby represents and warrants that Bank Systems have been the subject of [***] information security audits conducted by internal employees that report directly to the Bank’s Board of Directors or, if externally prepared, by a qualified, independent and nationally recognized third party. Bank further represents and warrants that it will share with Company the non-confidential results of the most recent audit and will communicate any steps taken to remedy potential or actual vulnerabilities.  Bank hereby represents and warrants that either: (a) [***]

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[***]; or (b) [***].

4.3.    Future Security Audits. [***], Bank will procure, [***], security audits of the Bank Systems, control activities, and processes established and maintained by Bank, including any third-party data centers utilized by Bank. Each such audit will be carried out by an independent registered public accounting firm nationally recognized in the United States and reasonably acceptable to Company, and will conform to the requirements for a SOC2 Type II audit, as set forth in the Statement on Standards for Attestation Engagements No. 16 published by the American Institute of Certified Public Accountants (a “Security Audit”).  Bank will provide Company with the results of each Security Audit within thirty (30) days of completion (or upon request), including: (a) whether the Security Audit revealed any material findings in the Bank Systems, and (b) if so, the nature of each finding discovered.  If the Security Audit reveals [***], Bank will [***]. Bank will complete all critical corrections within a reasonable timeframe of completion of the Security Audit. Notwithstanding anything in the Agreement to the contrary, Company may terminate the Agreement [***] if Company determines that any material deficiency identified in any Security Audit creates an unacceptable level of risk for Company, its employees, or its customers. In such event, [***]. Bank will give Company a full copy of the reports on which the Security Audit is based and such reports will be treated as Confidential Information of Bank. Bank will also give Company a management representation letter stating that, to the knowledge of Bank management after reasonable investigation, there have been no changes to the control environment between the date of the management representation letter and the date of the Security Audit. [***] between the period covered by the tests of controls and the delivery of the Security Audit. Bank’s failure to procure the Security Audit or to complete corrections in a timely manner will  be a material breach of the Agreement.

4.4.    Visitation and Inspection Rights. Company or its authorized representatives, which may not be a competitor of the Bank, may, at any time upon reasonable notice to Bank, visit any or all locations of the Bank to inspect the Bank’s due diligence for Bank Systems and to assess Bank’s performance of its obligations under this Exhibit J, and Bank will share with Company any information reasonably requested by Company in connection with due diligence of Bank’s third party service providers involved with Bank Systems. For purposes of such an inspection, Bank will grant to Company and its representatives reasonable access, during normal business hours, to the Bank and to Program-related books, records, procedures, and information that relate to Bank’s performance under this Exhibit J, including any Program information Company deems reasonably necessary to ascertain any facts that relate to Bank’s performance hereunder. If: (a) Company determines in connection with any such inspection that Bank has failed to perform any of its material obligations under this Exhibit J, and (b) Company notifies Bank in writing of Bank’s breach of this Exhibit J, then Bank will, [***], develop a corrective action plan in cooperation with Company. The corrective action plan will not limit Company’s rights to terminate this Agreement in accordance with its terms.  Bank will then have

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[***]. Failure to rectify a material failure will be considered a material breach. In addition, Bank’s obligation to develop a corrective action plan and remediate any failure to perform its obligations under this Exhibit J will survive termination or expiration of this Agreement until such corrective action is deemed complete by Company. Such plan will include timeframes for completion and will be subject to Company’s reasonable approval and Bank will promptly implement such plan [***]. These inspection and corrective action rights supplement, and in no way limit, Company’s other rights under the Agreement.

4.5.    Application Security Testing. The Bank will, [***]. Bank will [***], Company may hire a mutually agreed-upon, independent third party to conduct additional testing in which Bank will submit the software or any applications with access to Company Information to security testing by the independent third party provider. Bank will cooperate with such application security testing, including by making appropriate arrangements for secure access to the application’s functional software (not source code) if reasonably required. If security testing reveals a vulnerability in the software (or any portion thereof), Bank will correct such vulnerability within the agreed upon reasonable timeframes. The mutually agreed upon independent third party provider or Bank will determine the vulnerability level for purposes of this Section 4. Bank’s failure to correct a vulnerability will be considered a material breach of the Agreement.

		
	5.
	Access to Company Information.

5.1.    Promptly upon Company’s request, Bank will provide Company with access to or delivery of Company Information, or any portion thereof identified by Company, being stored, processed, or transmitted or otherwise in Bank’s possession or control or that of its agent or subcontractor, in a form and format requested by Company.

5.2.    Bank will [***] notify Company in writing of (a) any inquiry received by Bank or its subcontractor from any individual relating to, among other things, the individual’s right to access, modify, or correct Company Information and (b) any complaint received by Bank or its subcontractor relating to the processing of Company Information. Bank will [***] comply and fully cooperate with all instructions of Company with respect to any action taken with respect to such inquiry or complaint.

5.3.    Before allowing or enabling a subcontractor or agent to have access to Company Information, Bank must evaluate and validate the subcontractor’s or agent’s capabilities to maintain the security of Company Information in accordance with the Agreement.

		
	6.
	Security of Cardholder Information.

6.1.    For purposes of this Section 6, “Cardholder Information” means “any individual numbers used to identify credit or debit card or other similar card accounts or other personally identifiable information relating to the use of Cards, including the full primary account number, cardholder name, expiration date, service code, track data (from the magnetic stripe or equivalent

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on a chip), PINs, or PIN blocks.

6.2.    PCI Standards.  Bank represents, warrants, and covenants that Bank is presently in compliance with and will remain, at all times during and after the Term during which Bank stores, processes, or transmits Cardholder Information, in compliance with the most recent effective versions of all rules, regulations, standards, and guidelines adopted or required (a) by any entity offering or supporting payment card networks whose Cardholder Information is handled by Bank, and (b) by the Payment Card Industry Security Standards Council (the “Council”), in each case, relating to privacy, data security, or the safeguarding, disclosure, or handling of Cardholder Information, including the Payment Card Industry Data Security Standards, the Payment Card Industry’s Payment Application Data Security Standard, the Payment Card Industry’s PIN Transaction Security requirements, Visa’s Cardholder Information Security Program and Payment Application Best Practices, American Express’s Data Security Operating Policy, MasterCard’s Site Data Protection Program and POS Terminal Security program, and the analogous security programs implemented by other payment card networks, in each case, as amended, updated, replaced, or augmented from time to time (the standards described in this clause (c) being collectively referred to as the “PCI Standards”). Bank will, [***], perform all tasks, assessments, reviews, penetration tests, scans, and other activities required under the PCI Standards (including any compliance guidance related to the PCI Standards issued by the Council, its subordinate bodies, or any successors thereto) and otherwise to validate Bank’s compliance during the Term with the PCI Standards. To the extent that Bank is hosting a system or application which is Internet facing, its PCI attestation of compliance must be performed by a qualified security assessor. Bank will deliver to Company copies of all documentation necessary to verify compliance with these requirements (“Verification Documentation”). In the event Company reasonably determines that additional Verification Documentation is required under the PCI Standards or likely to be so required to verify such compliance, including a “Report on Compliance,” and an associated unqualified “Attestation of Compliance,” then, upon Company's request [***], Bank will provide such additional Verification Documentation to Company [***] from Company's request, or the timeframe required for Company to remain compliant, whichever is less. [***], Bank will deliver to Company a copy of the Verification Documentation, applicable to the Cardholder Information environment [***]. [***], Bank will deliver to Company, [***], evidence of a passing vulnerability scan applicable to the Cardholder Information environment conducted within [***]. Bank will [***] notify Company in writing of any exception in a Report on Compliance, Attestation of Compliance, or [***] vulnerability scan if Bank learns that it is no longer PCI Standards compliant or if it reasonably anticipates that it is or will be non-compliant. Such notification will include, in detail, the steps being taken by Bank to remediate such exception or non-compliance.

6.3.    Bank will not commit any act or omission that causes Company to violate the PCI Standards or to be fined, sanctioned, or penalized for the failure to properly protect, secure, maintain, use, or store Cardholder Information, including by any payment card network, the Council, merchant banks, or any other third party.

		
	6.4.
	Bank is solely responsible for the security of Cardholder Information that Bank or

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its personnel or subcontractors stores, possesses, transmits or controls.

6.5.    Bank will access, use, and disclose Cardholder Information only as and to the extent necessary to: (a) process and otherwise facilitate credit and debit transactions on Company's behalf; (b) comply with Applicable Laws, PCI Standards, payment card network rules and requirements, and written Company policies; and (c) as otherwise instructed in writing by an authorized by an officer of Company.

6.6.    If there is a known Security Breach of Cardholder Information within the Bank’s Systems, Bank will notify its Regulatory Authority and then Company, and then, as quickly as reasonably possible, provide to Company a list of the compromised T-Mobile Accounts as well as any other information reasonably requested by Company. Bank will work with payment card networks, merchant banks, and any of their respective agents and designees to remediate the situation to minimize financial loss and Bank will cooperate fully with any investigation, verification, testing, and review of Bank’s compliance with the PCI Standards. This Section 6.6 does not limit Section 3 of this Exhibit.

7.Cybersecurity Cooperation. Each Party acknowledges the importance of cooperating with the other Party with respect to issues related to cybersecurity and agrees to work with the other Party to establish a cybersecurity partnership team to share insight and best practices, as appropriate, for the mutual benefit of the Parties and for the benefit of the Program. The Parties agree that the cybersecurity partnership team will meet [***].

8.Entire Exhibit. If there is any conflict or inconsistency between this Exhibit J and any provision of the Agreement, such conflict or inconsistency will be resolved by giving precedence to this Exhibit J.

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EXHIBIT 14.6

DT MARKS AND COMPANY MARKS

DT MARKS

T

T-Mobile

<color magenta>

<Telekom acoustic mark>

T-Mobile (logos)

COMPANY MARKS

El [***]

The [***]

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EXHIBIT 14.7 STANDARDS

	
			
	#
	MARK
	GOODS/SERVICES

	IDENTIFICATION OF GOODS/SERVICES

	General Banking Services (IC36):  Banking and financial services; digital banking services; online banking services; retail banking services; commercial banking services; ATM banking services; banking consultation; savings and deposits; loans and lending; bill pay services; credit card and debit card services; lines of credit; consulting and technological services in the field of financial technology (FinTech), FinTech innovation, banking and financial services, digital banking, and mobile and online payment platforms; providing information in the fields of banking and financial services; administering electronic disbursement of funds for others; and related services

	FinTech/White Label (IC42):  Software as a service (SaaS) featuring software to allow users to perform electronic banking and financial exchange transactions via a global computer network; providing temporary use of online non-downloadable software to allow users to perform electronic banking and financial exchange transactions via a global computer network; providing temporary use of on-line non-downloadable white label software to allow users to perform electronic financial exchange transactions via a global computer network; software design, development, and customization, and development of white-label software for others, all in the field of financial technology (FinTech); cloud computing and software services, namely, providing white label cloud solutions to others in the field of financial technology (FinTech); [cloud computing and software services, namely, designing, developing, implementing and maintaining backup and disaster recovery plans for others in the field of FinTech NOTE: Do you want to include this service?]; and related services

	Software (IC9): Computer application software for the provision of banking and financial services; and related goods

	1
	BankMobile (logo)
	General Banking Services (IC36), FinTech/White Label (IC42); AND Software (IC9)

	2
	BANKMOBILE
	General Banking Services (IC36), FinTech/White Label (IC42); AND Software (IC9)

	3
	BankMobile (logo)
	General Banking Services (IC36), FinTech/White Label (IC42); AND Software (IC9)

	4
	BankMobile (logo)
	General Banking Services (IC36), FinTech/White Label (IC42); AND Software (IC9)

	5
	BANKMOBILE TECHNOLOGIES
	General Banking Services (IC36), FinTech/White Label (IC42); AND Software (IC9)

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	#
	MARK
	GOODS/SERVICES

	6
	BANKMOBILE LABS
	General Banking Services (IC36), FinTech/White Label (IC42); AND Software (IC9)

	7
	BankMobile LABS (logo)
	General Banking Services (IC36), FinTech/White Label (IC42); AND Software (IC9)

	8
	BANKMOBILE VIBE
	General Banking Services (IC36)

	9
	BankMobile VIBE (logo)
	General Banking Services (IC36)

	10
	BankMobile VIBE (logo)
	General Banking Services (IC36)

	11
	BankMobile VIBE (logo)
	General Banking Services (IC36)

	12
	BankMobile VIBE (logo)
	General Banking Services (IC36)

	13
	Bankmobile Bold
	General Banking Services (IC36)

	14
	Bankmobile Bold (logo)
	General Banking Services (IC36)

	15
	Bankmobile Bold (logo)
	General Banking Services (IC36)

	16
	BANKMOBILE DISBURSEMENTS
	General Banking Services (IC36), FinTech/White Label (IC42); and Software (IC9)

	17
	BankMobile Disbursements (logo)
	General Banking Services (IC36), FinTech/White Label (IC42); and Software (IC9)

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	#
	MARK
	GOODS/SERVICES

	18
	CurrentCash
	General Banking Services (IC36)

	19
	POWERED BY BANKMOBILE
	General Banking Services (IC36), FinTech/White Label (IC42); and Software (IC9)

	20
	POWERED BY BANKMOBILE (logo)
	General Banking Services (IC36), FinTech/White Label (IC42); and Software (IC9)

	21
	BankMobile (logo)
	General Banking Services (IC36)

	22
	BankMobile (logo)
	General Banking Services (IC36), FinTech/White Label (IC42); and Software (IC9)

	23
	BankMobile (logo)
	General Banking Services (IC36), FinTech/White Label (IC42); and Software (IC9)

	24
	BankMobile (logo)
	General Banking Services (IC36), FinTech/White Label (IC42); and Software (IC9)

	25
	BMPowered University (logo)
	General Banking Services (IC36)

	26
	BMPowered University (logo)

	27
	BMPowered University (logo)

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SCHEDULE 8.1(h)

APPROVED THIRD PARTY SERVICE PROVIDERS

	
		
	Relationship: Relationship Name
	Brief Description

	[***]

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	[***]

	[***]
	[***]

	[***]
	[***]

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	Relationship: Relationship Name
	Brief Description

	[***]
	[***]

	[***]
	[***]

	[***]
	[***]

	[***]
	[***]

	[***]
	[***]

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	[***]
	[***]

	[***]
	[***]

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	Relationship: Relationship Name
	Brief Description

	[***]
	[***]

	[***]
	[***]

	[***]
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	[***]
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	[***]
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