Document:

crsp-ex1030_515.htm

Exhibit 10.30

 

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

This Retirement Agreement (this “Agreement”) is made and entered into as of December 13, 2019, by and among Casebia Therapeutics Limited Liability Partnership, a limited liability partnership incorporated in England and Wales (“Casebia”), Bayer HealthCare LLC, a limited liability company formed in Delaware (“Bayer”), CRISPR Therapeutics AG, a stock corporation organized under the laws of Switzerland (“CRISPR AG”), and CRISPR Therapeutics, Inc., a corporation organized under the laws of the state of Delaware (“CRISPR Inc., and together with CRISPR AG, “CRISPR”).

RECITALS

A.Bayer and CRISPR AG entered into the Joint Venture Agreement on December 19, 2015 (as amended, restated and/or otherwise modified from time to time, the “JV Agreement”);

B.Bayer, CRISPR AG and Casebia entered into the Limited Liability Partnership Agreement on March 16, 2016 (as amended, restated and/or otherwise modified from time to time, the “LLP Agreement”);

C.Pursuant to the JV Agreement, Bayer purchased the Bayer LLP Interest (as defined below);

D.Bayer remains the sole owner of the Bayer LLP Interest; and

E.Subject to the terms and conditions set forth in this Agreement, Bayer and CRISPR AG desire to terminate the JV Agreement, and in connection therewith, (a) Bayer wishes to cease to be a member of Casebia with effect from Closing, (b) Casebia and CRISPR consent to Bayer ceasing to be a member of Casebia, (c) Casebia, Bayer and CRISPR desire to amend the terms of the LLP Agreement accordingly to reflect Bayer ceasing to be a member and (d) CRISPR AG and Bayer desire to enter into the 2019 Option Agreement (as defined below) which will become effective as of the Closing (as defined below).

NOW, THEREFORE, in consideration of the mutual agreements, covenants and other premises set forth herein, the mutual benefits to be gained by the performance thereof, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and accepted, the Parties (as defined below) hereby agree as follows:

Article I

DEFINITIONS

For all purposes of this Agreement, the following terms will have the following respective meanings:

“2019 Option Agreement” means the Option Agreement between CRISPR AG and Bayer in substantially the form attached hereto as Exhibit A.

“Act” means the Limited Liability Partnerships Act 2000, as amended.

“Adjustment Amount” means the Final Expense Deduction minus the Initial Expense Deduction. 

“Affiliate” or “Affiliates” means, with respect to any entity, any Person that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with such entity; and for the purposes of this definition, “control” (and the terms “controlled by” and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such entity, directly or indirectly, whether through the ownership of voting securities or by contract or otherwise. Without limiting the generality of the foregoing, a Person shall be deemed to control another Person if any of the following conditions is met: (a) in the case of corporate 

 

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

entities, direct or indirect ownership of at least fifty percent (50%) of the stock or shares having the right to vote for the election of directors, and (b) in the case of non-corporate entities, direct or indirect ownership of at least fifty percent (50%) of the equity interest with the power to direct the management and policies of such non-corporate entities. The Parties acknowledge that in the case of certain entities organized under the laws of certain countries outside of the United  States, the maximum percentage ownership permitted by law for a foreign investor may be less than fifty percent (50%), and that in such case such lower percentage shall be substituted in the preceding sentence, provided that such foreign investor has the power to direct the management and policies of such entity.  As of the Closing, Casebia and Casebia Therapeutics LLC will each be deemed an Affiliate of CRISPR.

“Amended and Restated Intellectual Property Management Agreement” means the Amended and Restated Intellectual Property Management Agreement between Bayer, CRISPR and certain CRISPR Affiliates dated as of December 13, 2019.

“Ancillary Agreements” means the JV Termination Agreement, the Amended and Restated Intellectual Property Management Agreement, the Deed of Amendment and Restatement, the 2019 Option Agreement, the Master Confidentiality Agreement, and the Resignation Letters.

“Bayer Indemnified Parties” means Bayer, its Affiliates and its and their respective officers, directors, managers, partners, employees, agents and representatives. 

“Bayer LLP Interest” means 50% of the LLP Interests.

“Business” means the business carried on by Casebia and its Subsidiaries as of the date hereof. 

“Business Day” means any day other than a Saturday, a Sunday or a day on which banks in New York City, United States of America or Frankfurt-Main, Germany or Leverkusen, Germany are authorized or obligated by applicable law or executive order to close.

“Casebia Employee Plan” means: (a) an employee benefit plan within the meaning of Section 3(3) of ERISA whether or not subject to ERISA; (b) option plans, equity purchase plans, bonus or incentive award plans, severance pay plans, programs or arrangements, deferred compensation arrangements or agreements, employment agreements, executive compensation plans, programs, agreements or arrangements, change in control plans, programs or arrangements, supplemental income arrangements, vacation plans, and all other employee benefit plans, agreements, and arrangements, not described in (a) above; and (c) plans or arrangements providing compensation to employee and non-employee directors, in each case in which Casebia or any ERISA Affiliate sponsors, contributes to, or provides benefits under or through such plan, or has any obligation to contribute to or provide benefits under or through such plan, or if such plan provides benefits to or otherwise covers any current or former employee, officer, manager, partner or director of Casebia or any ERISA Affiliate (or their spouses, dependents, or beneficiaries).

“Code” means the Internal Revenue Code of 1986, as amended.

“Contract” means any mortgage, indenture, lease, contract, license, covenant, plan, insurance policy, purchase order (including any related terms and conditions), work order or other agreement, instrument, arrangement, obligation, understanding or commitment, permit, concession or franchise, whether oral or written and including any amendment, waiver or modification made thereto.

“CRISPR Indemnified Parties” means CRISPR, its Affiliates (including Casebia and its Subsidiaries following the Closing) and its and their respective officers, directors, managers, partners, employees, agents and representatives. 

“Deed of Amendment and Restatement” means the Deed of Amendment and Restatement entered into between Casebia, Bayer and CRISPR in substantially the form attached hereto as Exhibit B.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

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[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

“ERISA Affiliate” means any entity that would have ever been considered a single employer with Casebia under Section 4001(b) of ERISA or part of the same “controlled group” as Casebia for purposes of Section 302(d)(3) of ERISA.

“Final Expense Deduction” means the lesser of (a) [***] of the Final Interim Period Expenses and (b) [***]. 

“GAAP” means United States generally accepted accounting principles, consistently applied, as in effect from time to time.

“Goodwill” means the value of the goodwill of Casebia immediately preceding the Closing Date.

“Governmental Authority” means any court, agency, authority, department, regulatory body or other instrumentality of any government or country or of any national, federal, state, provincial, regional, county, city or other political subdivision of any such government or any supranational organization of which any such country is a member.

“HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations promulgated thereunder, as the same may be amended from time to time.

“Indemnifying Party” means CRISPR or Bayer, as applicable.

“Initial Expense Deduction” means the lesser of (a) [***] of the Estimated Interim Period Expenses and (b) [***].

“Interim Period” means the period beginning and including [***] and ending at 11:59 pm Boston time on the Closing Date. 

“Interim Period Expenses” means specific costs and expenses incurred by Casebia and its Subsidiaries during the Interim Period (calculated in accordance with GAAP), including [***], as set forth on Schedule I hereto.

“IRS” means the United States Internal Revenue Service. 

“JV Termination Agreement” means the Joint Venture Termination Agreement between Bayer and CRISPR and certain of Bayer and CRISPR Affiliates in substantially the form attached hereto as Exhibit C.

“Knowledge” means (i) with respect to Bayer, [***], and (ii) with respect to CRISPR [***].

“Law” or “Laws” means all applicable laws, statutes, rules, regulations and other pronouncements having the effect of law of any federal, national, multinational, state, provincial, county, city or other political subdivision, agency or other body, domestic or foreign, including any applicable rules, regulations, guidelines, or other requirements of any Governmental Authority that may be in effect from time to time.

“Liability” or “Liabilities” means debts, liabilities, commitments, losses, deficiencies, duties, charges, claims, damages, demands, costs, fees, Taxes, expenses and obligations (including guarantees, endorsements and other forms of credit support), whether accrued or fixed, absolute or contingent, matured or unmatured, known or unknown, on- or off-balance sheet, including those arising under any Contract, Law, statute, ordinance, regulation, rule, code, common law or other requirement or rule enacted or promulgated by any Governmental Authority or any litigation, court action or proceeding, lawsuit, originating application to an employment tribunal, or binding arbitration.

“Lien” means any lien, pledge, charge, claim, mortgage, security interest, defect in title, preemptive right, vesting limitation, community or marital property interest, right of first offer, notice, negotiation or refusal, transfer restriction of any kind or other encumbrance of any sort.

“LLP Interest” means a limited liability partnership interest in Casebia.

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[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

“Loss” means any claim, action, proceeding, loss, damage (excluding punitive damages except in the case of a third-party claim), cost, interest, award, judgment, penalty, Tax, and expense, including reasonable attorneys’ and consultants’ fees and expenses and including any such reasonable out-of-pocket expenses incurred in connection with investigating, defending against or settling any of the foregoing, in each case, whether arising from a third-party or a direct claim.

“Management Board” means the Management Board of Casebia.

“Master Confidentiality Agreement” means the Master Confidentiality Agreement among the Parties in substantially the form attached hereto as Exhibit D.

“Party” means Bayer, Casebia or CRISPR. 

“Permit” means all consents, licenses, permits, grants, agreements and authorizations required by any Governmental Authority to lawfully operate the Business (including any pending applications for such all consents, licenses, permits, grants, agreements and authorizations). 

“Person” means any individual, partnership, limited partnership, limited liability company, joint venture, syndicate, sole proprietorship, company or corporation with or without share capital, unincorporated association, trust, trustee, executor, administrator or other legal personal representative or governmental body.

“Resignation Letter” means an executed letter of resignation in substantially the form attached hereto as Exhibit E from each member of the Management Board appointed by Bayer, effective as of the Closing, in his or her capacity as a member of the Management Board, a member of the governing body of any Subsidiary of Casebia and/or as an officer of Casebia and/or any Subsidiary of Casebia.

“Retirement Amount” means (a) $22,000,000 minus (b) the Initial Expense Deduction.

“Straddle Period” means any taxable period that includes (but does not end on) the Closing Date. 

“Subsidiary” of any Person means any corporation, partnership, limited liability company, cooperative, association or other organization (including any branch), whether incorporated or unincorporated, which is directly or indirectly controlled by such Person, whether through ownership of securities or otherwise.

“Tax” or “Taxes” means any and all U.S. federal, state, local and non-U.S. taxes, assessments and other governmental charges, duties (including stamp duty), fees, impositions of any kind whatsoever including taxes based upon or measured by gross receipts, income, profits, gains, sales, use and occupation, and value added, ad valorem, transfer, franchise, withholding, payroll, recapture, environmental, employment, unclaimed property, escheat, excise and property taxes as well as public imposts, and social security charges (including health, unemployment, workers’ compensation and pension insurance), together with all interest, penalties, and additions imposed with respect to such amounts.

“Tax Returns” means any return, declaration, report, statement, information statement or other document filed or required to be filed with respect to Taxes, including any claims for refunds of Taxes, any information returns and any amendments, schedules or supplements of any of the foregoing.

“Transactions” means the Retirement and the other transactions contemplated hereby or by any Ancillary Agreement.

“Transaction Documents” has the meaning set forth in the JV Termination Agreement.

“Willful Breach” means (a) a breach of a representation or warranty contained in Article III or Article IV of this Agreement that the breaching Person knows is a misrepresentation of such representation or warranty or (b) a breach of a covenant contained in this Agreement that the breaching Person knows is a breach of such covenant. 

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[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

Article II

RETIREMENT

2.1Retirement.  

(a)Retirement of Bayer. Bayer will cease to be a member of Casebia with effect from Closing (the “Retirement”). 

(b)Notification of retirement. CRISPR will notify the registrar of companies of the change in membership of Casebia within 14 days after the Closing Date.

(c)Capital and Goodwill. With effect from Closing, all of the interest of Bayer in Casebia, the Goodwill and the assets of Casebia will be transferred to and accrued to CRISPR. 

(d)Payments to Bayer.  Casebia will pay to Bayer the Retirement Amount and the payment thereof will be made on the Closing Date by wire transfer of immediately available funds in accordance with wire instructions delivered by Bayer to Casebia at least [***] Business Days prior to the Closing. The Retirement Amount will be paid in full consideration for the Retirement and Bayer will not be entitled to any further payment(s), nor will have any further liability other than as expressly contemplated hereunder, in respect of any capital credited to its Capital Account (as defined in the LLP Agreement), any undrawn balance of its profit share as of Closing credited to its Current Account (as defined in the LLP Agreement) or otherwise pursuant to the terms of the LLP Agreement.

(e)Withholding.  Casebia (or any of its agents or Affiliates, as the case may be) will be entitled to deduct and withhold from any payment pursuant to this Agreement such amounts as are required to be deducted or withheld under the Code or any other applicable Tax Law. To the extent amounts are so withheld and remitted to the applicable Governmental Authority, such withheld amounts will be treated for all purposes of this Agreement as having been paid to the Person in respect of whom the withholding was made. 

2.2Closing.  The Retirement (the “Closing”) will take place remotely on the date hereof (the “Closing Date”) via the exchange of documents and signature pages or at such location as Bayer and CRISPR agree.  

2.3Interim Period Expenses.  

(a)On or before the Closing Date, Casebia will have prepared in good faith and delivered to CRISPR and Bayer its good faith estimate of the Interim Period Expenses (the “Estimated Interim Period Expenses”).  The Interim Period Expenses will be prepared in accordance with GAAP. Casebia will also provide reasonable detail supporting such calculation.   Following receipt of the Estimated Interim Period Expenses, Casebia will permit CRISPR and Bayer and their respective representatives at all reasonable times and upon reasonable notice to review Casebia’s books and records relating to the determination of the Estimated Interim Period Expenses, and Casebia will make reasonably available its representatives responsible for the preparation of the Estimated Interim Period Expenses in order to respond to the reasonable inquiries of CRISPR or Bayer.  Prior to Closing, the Parties will discuss in good faith the computation of the Estimated Interim Period Expenses and make any alterations thereto as mutually agreed by CRISPR and Bayer (and otherwise, the Estimated Interim Period Expenses will be estimate for such amount as provided by Casebia).

(b)As promptly as practicable, but no later than [***] days after the Closing Date, CRISPR will prepare and deliver to Bayer its calculation of the Interim Period Expenses (the “Adjusted Interim Period Expenses”).  Unless Bayer delivers the Dispute Notice within [***] days after receipt of the Adjusted Interim Period Expenses, the Adjusted Interim Period Expenses will be deemed the “Final Interim Period Expenses”, which will be binding upon CRISPR and Bayer and will not be subject to dispute or review. If Bayer disagrees with the calculation of the Adjusted Interim Period Expenses, Bayer 

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[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

may, within [***] days after receipt thereof, notify CRISPR in writing (the “Dispute Notice”), which Dispute Notice will provide reasonable detail of the nature of each disputed item in the calculation of the Adjusted Interim Period Expenses, and Bayer will be deemed to have agreed with all other items and amounts contained in the calculation of the Adjusted Interim Period Expenses delivered pursuant to this Section 2.3(b).  If Bayer timely delivers a Dispute Notice to CRISPR, CRISPR and Bayer will first use commercially reasonable efforts to resolve such dispute between themselves and, if CRISPR and Bayer are able to resolve such dispute, the Adjusted Interim Period Expenses will be revised to the extent necessary to reflect such resolution and will be deemed the “Final Interim Period Expenses”, which will be conclusive and binding upon Bayer and CRISPR and will not be subject to dispute or review.  If CRISPR and Bayer are unable to resolve the dispute within [***] days after receipt by CRISPR of the Dispute Notice, CRISPR and Bayer will submit the dispute to a nationally recognized independent accounting firm selected by CRISPR and Bayer which will not have been engaged for any material matter, directly or indirectly, by any Party within the preceding two years (the “Accountant”).  The Accountant will be directed to act as an expert and not an arbiter and will be directed to determine only those items that remain in dispute on the calculation of the Interim Period Expenses.  Each of CRISPR and Bayer will furnish to the Accountant such workpapers and other documents and information relating to such objections as the Accountant may reasonably request and are available to that Party or its Affiliates (or its independent public accountants) and will be afforded the opportunity to present to the Accountant any material relating to the determination of the matters in dispute and to discuss such determination with the Accountant.  Each of CRISPR and Bayer will assign a value to each disputed item and the Accountant will determine each disputed item separately (based on the determination that most closely complies with the terms of this Agreement), but will not assign a value to any disputed item that is greater than the greatest value for such disputed item assigned to it by Bayer or CRISPR or less than the smallest value for such disputed item assigned to it by Bayer or CRISPR.  Promptly, but no later than [***] days after engagement, the Accountant will deliver a written report to CRISPR and Bayer in English as to the resolution of the disputed items and the resulting calculation of the Interim Period Expenses.  The calculations of the Interim Period Expenses, to the extent disputed, as determined by the Accountant will be deemed the final calculation thereof and the “Final Interim Period Expenses”, which will be conclusive and binding upon Bayer and CRISPR and will not be subject to dispute or review.  The fees and expenses of the Accountant in connection with the resolution of disputes pursuant to this Section 2.3(b) will be shared by the parties in inverse proportion to the relative amounts of the disputed amount determined to be for the account of Bayer and CRISPR.  CRISPR and Bayer agree that they will, and agree to cause their respective representatives and independent accountants to, cooperate and assist in the preparation of the Final Interim Period Expenses and in the conduct of the reviews referred to in this Section 2.3(b), including the making promptly available to the extent necessary of books, records, work papers and personnel.

(c)The Retirement Amount will be adjusted, dollar for dollar, upwards to the extent that the Adjustment Amount is negative and downwards to the extent the Adjustment Amount is positive. Within [***] Business Days following the determination of the Final Interim Period Expenses, (A) if the Adjustment Amount is positive, Bayer will promptly pay Casebia in cash an amount equal to the Adjustment Amount by wire transfer of immediately available funds to a bank account designated in writing by Casebia, and (B) if the Adjustment Amount is negative, Casebia will promptly pay Bayer in cash an amount equal to the Adjustment Amount by wire transfer of immediately available funds to a bank account designated in writing by Bayer.

2.4Closing Deliveries.  

(a)Closing Deliveries of CRISPR AG.  At the Closing, CRISPR AG will have delivered or caused to be delivered to Bayer:

(i)executed counterparts to each Ancillary Agreement to which CRISPR or any of its pre-Closing Affiliates is a party.

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[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

(b)Closing Deliveries of Bayer.  At the Closing, Bayer will have delivered or caused to be delivered to CRISPR: 

(i)executed counterparts to each Ancillary Agreement to which Bayer or any of its pre-Closing Affiliates is a party;

(ii)a properly executed copy of IRS Form W-9 from Bayer certifying that Bayer is a U.S. person and is exempt from backup withholding; 

(iii)an executed Resignation Letter from each member of the Management Board appointed by Bayer; and

(iv)if applicable, evidence of a release of any and all Liens against the Bayer LLP Interest in form and substance reasonably acceptable to CRISPR.

(c)Closing Deliveries of Casebia.  At the Closing, Casebia will have delivered or caused to be delivered to Bayer and CRISPR: 

(i)the Retirement Amount to Bayer;

(ii)executed counterparts to each Ancillary Agreement to which Casebia or any of its pre-Closing Affiliates is a party; and

(iii)certificates of good standing for Casebia and each of its Subsidiaries dated as of a reasonable date prior to the Closing Date by the applicable Governmental Authority in the jurisdiction of organization of each such Person. 

2.5Variation of the LLP Agreement.  The LLP Agreement will be amended as set out in the Deed of Amendment and Restatement.

Article III

REPRESENTATIONS AND WARRANTIES OF BAYER

Bayer hereby represents and warrants to CRISPR as of the date hereof:

3.1Authority and Enforceability.  Each of Bayer and its Affiliates has all requisite power and authority to enter into this Agreement and any Ancillary Agreements to which it is a party and to consummate the Transactions.  The execution and delivery by Bayer or any such Affiliate of this Agreement and any Ancillary Agreements to which it is a party and the consummation of the Transactions have been duly and validly authorized by all necessary corporate action on the part of Bayer or such Affiliate.  This Agreement and any Ancillary Agreements to which Bayer or any such Affiliate is a party have been duly and validly authorized, executed and delivered by Bayer or such Affiliate and the obligations of Bayer or such Affiliate hereunder and thereunder are or will be, upon such execution and delivery (and assuming due authorization, execution and delivery by the other parties hereto and thereto), valid, legally binding and enforceable against Bayer or such Affiliate in accordance with their respective terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors’ rights generally and by general equitable principles (regardless of whether enforcement is sought in a proceeding at law or in equity).

3.2No Conflict.

(a)The execution, delivery and performance by Bayer or any its Affiliates of this Agreement and any Ancillary Agreements to which Bayer or any of its Affiliates is a party, and the consummation of the Retirement or any other Transactions will not conflict with or result in any violation of or default under (with or without notice or lapse of time, or both), or give rise to a right of notice or termination, cancellation, modification or acceleration of any right or obligation or loss of any benefit under, or require any consent, approval or waiver from any Person pursuant to, or result in the creation of 

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any Lien upon the Bayer LLP Interest pursuant to, (i) any Contract or order to which Bayer or any of its Affiliates is subject or (ii) any Laws applicable to Bayer, its Affiliates or the Bayer LLP Interest, in each case, other than where such conflict, violation, default, right, acceleration, consent, approval or waiver would not be reasonably likely to, individually or in the aggregate, prevent, hinder or delay the consummation of any Transaction or otherwise prevent, hinder or delay performance by Bayer or any of its Affiliates of any of its material obligations under this Agreement or any Ancillary Agreement.

(b)No consent, notice, waiver, approval, order or authorization of, or registration, declaration or filing with, any Governmental Authority is required by, or with respect to, Bayer or any of its Affiliates in connection with the execution and delivery of this Agreement or the Ancillary Agreements to which Bayer or any of its Affiliates is a party, or the consummation of the Retirement and the other Transactions except for such filings and notifications as may be required under the HSR Act, or any other applicable federal, state or foreign Laws or other legal restraint designed to govern competition or prohibit, restrict or regulate actions with the purpose or effect of monopolization or restraint of trade (collectively, “Antitrust Laws”), to be made by Bayer or any such Affiliate, and the expiration or early termination of any applicable waiting periods under the HSR Act or applicable foreign Antitrust Laws.

3.3Title to Shares.  Bayer owns of record and beneficially all of the Bayer LLP Interest, and has good and valid title to the Bayer LLP Interest, free and clear of all Liens and, at Closing, will deliver to Casebia good and valid title to the Bayer LLP Interest, free and clear of all Liens.  Bayer and its Affiliates do not own, and do not have the right to acquire, directly or indirectly, any equity in Casebia or any of its Subsidiaries except as expressly provided for in the JV Agreement (which rights will terminate upon the execution and delivery of the JV Termination Agreement).  Bayer and its Affiliates are not a party to any option, warrant, purchase right, or other Contract or commitment that could require Bayer or such Affiliate to sell, transfer, or otherwise dispose of any LLP Interest (other than this Agreement).  Bayer and its Affiliates are not a party to any voting trust, proxy, or other agreement or understanding with respect to the voting of any equity in Casebia or any Subsidiary thereof.

3.4Brokers.  No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with the Transactions based upon arrangements made by or on behalf of Bayer or any of its Affiliates.

3.5Liabilities.  Bayer or any of its Affiliates have [***] of (i) any Liabilities that did not arise in bona fide arm’s length transactions in the ordinary course of Business or (ii) any fraud, or any Willful Breach of any provision of this Agreement, by Casebia, any of its Affiliates or any representatives thereof.

3.6No Other Representation and Warranties.  Except for the representations and warranties contained in this Article III, neither Bayer nor any representative thereof has made or makes any other express or implied representation or warranty, either written or oral, on behalf of Bayer, or any representation or warranty arising from statute or otherwise at Law with respect to Bayer.

Article IV

REPRESENTATIONS AND WARRANTIES OF CRISPR AG

CRISPR AG hereby represents and warrants to Bayer as of the date hereof:

4.1Authority and Enforceability.  Each of CRISPR AG and its Affiliates has all requisite power and authority to enter into this Agreement and any Ancillary Agreements to which it is a party and to consummate the Transactions.  The execution and delivery by CRISPR AG or any such Affiliate of this Agreement and any Ancillary Agreements to which it is a party and the consummation of the Transactions have been duly and validly authorized by all necessary corporate action on the part of CRISPR AG or such Affiliate.  This Agreement and any Ancillary Agreements to which CRISPR AG or any such Affiliate is a party have been duly and validly authorized, executed and delivered by CRISPR AG or such Affiliate and the obligations of CRISPR AG or such Affiliate hereunder and thereunder are or will be, upon such 

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execution and delivery (and assuming due authorization, execution and delivery by the other parties hereto and thereto), valid, legally binding and enforceable against CRISPR AG or such Affiliate in accordance with their respective terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors’ rights generally and by general equitable principles (regardless of whether enforcement is sought in a proceeding at law or in equity).

4.2No Conflict.  

(a)The execution, delivery and performance by CRISPR AG or any its Affiliates of this Agreement and any Ancillary Agreements to which CRISPR AG or any of its Affiliates is a party, and the consummation of the Retirement or any other Transactions will not conflict with or result in any violation of or default under (with or without notice or lapse of time, or both), or give rise to a right of notice or termination, cancellation, modification or acceleration of any right or obligation or loss of any benefit under, or require any consent, approval or waiver from any Person pursuant to, (i) any Contract or order to which CRISPR AG or any of its Affiliates is subject or (ii) any Laws applicable to CRISPR AG or its Affiliates, in each case, other than where such conflict, violation, default, right, acceleration, consent, approval or waiver would not be reasonably likely to, individually or in the aggregate, prevent, hinder or delay the consummation of any Transaction or otherwise prevent, hinder or delay performance by CRISPR AG or any of its Affiliates of any of its material obligations under this Agreement or any Ancillary Agreement.

(b)No consent, notice, waiver, approval, order or authorization of, or registration, declaration or filing with, any Governmental Authority is required by, or with respect to, CRISPR AG or any of its Affiliates in connection with the execution and delivery of this Agreement or the Ancillary Agreements to which CRISPR AG or any of its Affiliates is a party, or the consummation of the Retirement and the other Transactions except for such filings and notifications as may be required under the HSR Act or any other Antitrust Laws, to be made by CRISPR AG or any such Affiliate, and the expiration or early termination of any applicable waiting periods under the HSR Act or applicable foreign Antitrust Laws.

4.3Brokers.  No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with the Transactions based upon arrangements made by or on behalf of CRISPR AG or any of its Affiliates.

4.4Liabilities.  CRISPR AG or any of its Affiliates have [***] of (i) any Liabilities that did not arise in bona fide arm’s length transactions in the ordinary course of Business or (ii) any fraud, or any Willful Breach of any provision of this Agreement, by Casebia, any of its Affiliates or any representatives thereof.

4.5No Other Representation and Warranties.  Except for the representations and warranties contained in this Article IV, neither CRISPR AG nor any representative thereof has made or makes any other express or implied representation or warranty, either written or oral, on behalf of CRISPR AG, or any representation or warranty arising from statute or otherwise at Law with respect to CRISPR AG. 

Article V

COVENANTS

5.1Confidentiality.  Each of the Parties hereby agrees that the disclosure of this Agreement, any Ancillary Agreement and the terms of this Agreement or any such Ancillary Agreement and the information obtained hereunder or pursuant to the negotiation and execution of this Agreement or any Ancillary Agreement or the consummation of the Transactions will be governed by the Master Confidentiality Agreement. 

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5.2Public Disclosure.  Except as expressly contemplated herein or in any Ancillary Agreement, the Parties will not (and will not authorize any of its representatives to), directly or indirectly, issue any press release or make any other public announcement regarding the existence or subject matter of this Agreement or the Ancillary Agreements or the Transactions without the consent of CRISPR (in the case of Bayer or Casebia) or Bayer (in the case of CRISPR or Casebia); provided, however, that notwithstanding anything to the contrary set forth herein or therein, neither CRISPR nor Bayer will be restricted from making disclosures required by applicable securities Laws or under applicable stock exchange rules if such Party makes available to the other any such disclosure (solely to the extent it would have otherwise been restricted by Section 5.1) and considers in good faith the inclusion of any reasonable and timely comments provided by the nondisclosing party.

5.3Indemnification of Officers and Directors. 

(a)Prior to the Closing Date, Casebia will have purchased and fully paid the premium (or include the premium payable as a Transaction Expense if not paid prior to the Closing) for directors’ and officers’ fiduciary liability run-off insurance (i.e. Casebia’s executive risk policy) which will provide run-off coverage for [***] years following the Closing Date, which will by its terms survive the Closing, having limits, terms and conditions no less favorable than the terms of such insurance policy currently maintained by Casebia and Casebia will to cause such insurance to be bound not later than the Closing Date. 

(b)The indemnification provisions applicable to directors and managers of Casebia as set forth in the organizational documents of Casebia as of the date hereof are incorporated herein by reference as if set forth herein in full. CRISPR agrees that all rights to indemnification or exculpation existing in favor of, and all limitations on the personal liability of, each present and former director and manager of Casebia (the “D&O Indemnified Parties”) provided for therein will continue for the full duration of the statute of limitations or [***] years, whichever is shorter (or during the continuation of any claim which was asserted during such time period). Nothing set forth herein will require the maintenance or continuation of any provision of the organizational documents of Casebia by CRISPR or any of its successors, and it is intended that this Section 5.3(b) is a full and complete alternative in lieu thereof.

(c)The obligations under this Section 5.3 will not be terminated or modified in such a manner as to adversely affect Bayer without the prior written consent of Bayer (it being expressly agreed that the D&O Indemnified Parties to whom this Section 5.3 applies will be third party beneficiaries of this Section 5.3 and will be entitled to enforce the covenants contained herein).

5.4Release.

(a)Effective for all purposes as of the Closing, Bayer acknowledges and agrees, on behalf of itself and each of its Affiliates, representatives, heirs, successors, assigns and agents (each, a “Bayer Releasor”), that Bayer, on behalf of itself and the other Bayer Releasors, hereby irrevocably and unconditionally releases CRISPR and its Affiliates (including Casebia and its Subsidiaries), and their respective Affiliates, successors and assigns, present or former directors, managers, partners officers, employees, and agents, from any and all charges, complaints, claims, liabilities, obligations, promises, agreements, controversies, damages or causes of action, suits, rights, demands, costs, losses, debts and expenses (including attorneys’ fees and costs incurred) of any nature whatsoever, known or unknown, suspected or unsuspected, existing or prospective, relating to CRISPR’s investment in, ownership of any securities in, any rights to proceeds upon the sale of, any rights or assets of, Casebia or any of its Subsidiaries or any Contract entered into in connection with the JV Agreement, other than claims arising from rights of Bayer under this Agreement and the Ancillary Agreements (collectively, “Bayer Claims”).  Bayer represents and acknowledges that it has read this release and understands its terms and has been given an opportunity to ask questions of Casebia’s and CRISPR’s representatives, and to consult with independent legal counsel of its own choosing.  Bayer further represents that in signing this release it does not rely, and has not relied, on any representation or statement not set forth in this release made by any representative of CRISPR or anyone else with regard to the subject matter, basis or effect of this release or otherwise.  Bayer 

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hereby acknowledges and agrees that neither the release provided hereunder nor the furnishing of the consideration for the release given hereunder will be deemed or construed at any time to be an admission by any released party or Bayer Releasor of any improper or unlawful conduct.  Bayer, on behalf of itself and the other Bayer Releasors, hereby irrevocably covenants to refrain from, directly or indirectly, asserting any claim, or commencing, instituting or causing to be commenced, any action, proceeding, charge, complaint, or investigation of any kind against any of the released parties, in any forum whatsoever (including any administrative agency), that is based upon any claim purported to be released hereunder. This release may be pleaded by any released party as a full and complete defense regarding any matter purported to be released hereby and may be used as the basis for an injunction against any action at law or equity instituted or maintained against them regarding such matter in violation of this Agreement.  In the event any claim is brought or maintained by a  Bayer Releasor against any released party in violation of this Agreement, Bayer will be responsible for all costs and expenses, including reasonable attorneys’ fees, incurred by the released parties in defending same. Bayer expressly acknowledges that the release contained herein applies to all Bayer Claims, regardless of whether such Bayer Claims are known or unknown, suspected or unsuspected, existing or prospective, and include claims which, if known by the releasing party, might materially affect its decision to enter into this Section 5.4(a).  Bayer has considered and taken into account the possible existence of such Bayer Claims in determining to execute and deliver this Agreement.

(b)Effective for all purposes as of the Closing, each of CRISPR and Casebia acknowledges and agrees, on behalf of itself and each of its Affiliates, representatives, heirs, successors, assigns and agents (each, a “CRISPR Releasor”), that it, on behalf of itself and the other CRISPR Releasors, hereby irrevocably and unconditionally releases Bayer and its Affiliates, and their respective Affiliates, successors and assigns, present or former directors, managers, partners officers, employees, and agents, from any and all charges, complaints, claims, liabilities, obligations, promises, agreements, controversies, damages or causes of action, suits, rights, demands, costs, losses, debts and expenses (including attorneys’ fees and costs incurred) of any nature whatsoever, known or unknown, suspected or unsuspected, existing or prospective, relating to Bayer’s investment in, ownership of any securities in, any rights to proceeds upon the sale of, any rights or assets of, Casebia or any of its Subsidiaries or any Contract entered into in connection with the JV Agreement, other than claims arising from rights of CRISPR or Casebia under this Agreement and the Ancillary Agreements (collectively, “CRISPR Claims”).  Each of CRISPR and Casebia represents and acknowledges that it has read this release and understands its terms and has been given an opportunity to ask questions of Bayer’s representatives, and to consult with independent legal counsel of its own choosing.  Each of CRISPR and Casebia further represents that in signing this release it does not rely, and has not relied, on any representation or statement not set forth in this release made by any representative of Bayer or anyone else with regard to the subject matter, basis or effect of this release or otherwise.  Each of CRISPR and Casebia hereby acknowledges and agrees that neither the release provided hereunder nor the furnishing of the consideration for the release given hereunder will be deemed or construed at any time to be an admission by any released party or CRISPR Releasor of any improper or unlawful conduct.  Each of CRISPR and Casebia, on behalf of itself and the other CRISPR Releasors, hereby irrevocably covenants to refrain from, directly or indirectly, asserting any claim, or commencing, instituting or causing to be commenced, any action, proceeding, charge, complaint, or investigation of any kind against any of the released parties, in any forum whatsoever (including any administrative agency), that is based upon any claim purported to be released hereunder. This release may be pleaded by any released party as a full and complete defense regarding any matter purported to be released hereby and may be used as the basis for an injunction against any action at law or equity instituted or maintained against them regarding such matter in violation of this Agreement.  In the event any claim is brought or maintained by a CRISPR Releasor against any released party in violation of this Agreement, CRISPR will be responsible for all costs and expenses, including reasonable attorneys’ fees, incurred by the released parties in defending same.  Each of CRISPR and Casebia expressly acknowledges that the release contained herein applies to all CRISPR Claims, regardless of whether such CRISPR Claims are known or unknown, suspected or unsuspected, existing or prospective, and include claims which, if known by the releasing party, might materially affect its decision to enter into this Section 5.4(b).  Each of CRISPR and Casebia has considered and taken into account the possible existence of such CRISPR Claims in determining to execute and deliver this Agreement.

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5.5Post-Retirement Restriction.

(a)Bayer and its Affiliates will not, nor will it permit any of its Affiliates to, directly or indirectly, for a period of [***] after the Closing Date, contact, solicit or approach for the purpose of offering employment to, or hire (whether as an employee, consultant, agent, independent contractor or otherwise), the individuals set forth on Schedule II hereto; provided, however, that the foregoing clause will not prohibit Bayer or its Affiliates from making a general solicitation not targeting any such employee or consultant.

(b)Bayer, for itself and on behalf of its Affiliates, agrees that the scope of the restrictive provisions set forth in this Section 5.5 are reasonable with respect to subject matter, time and scope and that the provisions contained in this Section 5.5 are a material inducement to CRISPR’s and Casebia’s entering into this Agreement and but for the provisions contained in this Section 5.5, CRISPR and Casebia would not have entered into this Agreement.  In the event that any court determines that the subject matter, duration or geographic scope, or all of the foregoing, is unreasonable and that such provision is to that extent unenforceable, CRISPR and Bayer, for itself and on behalf of each of its Affiliates, agree that the provision will remain in full force and effect for the greatest time period and for the broadest subject matter and in the greatest area, as the case may be, that would not render it unenforceable.  It is specifically understood and agreed that any breach of the provisions of this Section 5.5 by Bayer or any of its Affiliates will result in irreparable injury to CRISPR, that the remedy at law alone will be an inadequate remedy for such breach and that, in addition to any other remedy it may have, CRISPR will be entitled to enforce the specific performance of this Section 5.5 by Bayer and its Affiliates through both temporary and permanent injunctive relief without the necessity of proving actual damages and without posting a bond, but without limitation of CRISPR’s right to damages and any and all other remedies available to CRISPR, it being understood that injunctive relief is in addition to, and not in lieu of, such other remedies.  Should Bayer or any of its Affiliates breach Section 5.5(a), the term of the restrictions set forth in Section 5.5(a) will be tolled by the duration of such breach.  Bayer acknowledges and agrees that it has received, or is receiving, substantial consideration in connection with the Transactions. No breach by CRISPR or any of its Affiliates of any contractual or other obligations it or they have to Bayer will constitute a defense, or a limitation of, the enforcement of this Section 5.5 against Bayer. If Bayer violates this Section 5.5, in addition to all other remedies available to CRISPR at law, in equity, and under contract, Bayer agrees that Bayer will pay CRISPR’s costs of enforcement of this Section 5.5, including reasonable attorneys’ fees and expenses.

Article VI

CONDITIONS TO RETIREMENT

6.1Conditions to Closing.  The respective obligations of CRISPR, Casebia and Bayer to effect the Retirement and the other Transactions that are contingent on the occurrence of the Retirement will be subject to the satisfaction or written waiver, at or prior to the Closing, of the following conditions:

(a)No Order.  No Governmental Authority will have enacted, issued, promulgated, enforced or entered any statute, rule, regulation, executive order, decree, injunction, order or other legal restraint (whether temporary, preliminary or permanent) which is in effect and which has the effect of making the Retirement, this Agreement, any of the Ancillary Agreements or any of the Transactions illegal or otherwise prohibiting or preventing the consummation of the Retirement, this Agreement, any of the Ancillary Agreements or any of the Transactions.

(b)No Injunctions; Restraints; Illegality.  No temporary restraining order, preliminary or permanent injunction or other order issued by any court of competent jurisdiction or other legal restraint or prohibition preventing the consummation of the Retirement, this Agreement, any of the Ancillary Agreements or any of the Transactions will be in effect.

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(c)Litigation.  There will be no action, suit, claim, order, injunction or proceeding of any nature pending, or threatened, against any Party, their respective properties or assets or any of their respective Affiliates, officers, partners, managers or directors arising out of, or in any way connected with, the Retirement, this Agreement, any Ancillary Agreements or the other Transactions or otherwise, in each case seeking any of the results set forth in Section 6.1(a) or Section 6.1(b).

6.2Conditions to Obligations of CRISPR.  The obligation of CRISPR to effect the Retirement and the other Transactions that are contingent on the occurrence of the Retirement will be subject to the satisfaction at or prior to the Closing of each of the following conditions, any of which may be waived, in writing, exclusively by CRISPR:

(a)Representations, Warranties and Covenants.  (i) Each of the representations and warranties contained in Article III of this Agreement are true and correct as of the date hereof, except for those representations and warranties that refer to facts existing at a specific date, which will be true, correct and complete in all material respects (without giving effect to “material” or any other materiality qualifications in such representations and warranties) as of such date; and (ii) Bayer and each of its Affiliates have performed and complied in all material respects with all covenants and obligations under this Agreement and any Ancillary Agreement to which such Person is a party that are required to be performed and complied with by such Person as of or prior to the Closing.

(b)Estimated Interim Period Expenses.  CRISPR will have received from Casebia the Estimated Interim Period Expenses pursuant to and in accordance with Section 2.3(a).

(c)Closing Deliveries. Each of the deliverables to CRISPR contemplated by Section 2.4 will have been delivered to CRISPR.

6.3Conditions to Obligations of Bayer.  The obligation of Bayer to effect the Retirement and the other Transactions that are contingent on the occurrence of the Retirement will be subject to the satisfaction at or prior to the Closing of each of the following conditions, any of which may be waived, in writing, exclusively by Casebia:

(a)Representations, Warranties and Covenants.  (i) Each of the representations and warranties contained in Article IVIV of this Agreement are true and correct as of the date hereof, except for those representations and warranties that refer to facts existing at a specific date, which will be true, correct and complete in all material respects (without giving effect to “material” or any other materiality qualifications in such representations and warranties) as of such date; and (ii) CRISPR and each of its Affiliates have performed and complied in all material respects with all covenants and obligations under this Agreement and the Ancillary Agreements to which such Person is a party that are required to be performed and complied with by such Person as of or prior to the Closing.

(b)Closing Deliveries. Each of the deliverables to Bayer contemplated by Section 2.4 will have been delivered to Bayer.

(c)Estimated Interim Period Expense.  Bayer will have received from Casebia the calculation of the Estimated Interim Period Expenses pursuant to and in accordance with Section 2.3(a).

Article VII

TAX MATTERS

7.1Tax Returns.  CRISPR will prepare or cause to be prepared, and CRISPR will file or cause to be filed, all Tax Returns of Casebia and any Subsidiary of Casebia for any taxable period ending on or before the Closing Date and any Straddle Period. All such Tax Returns will be prepared in accordance with existing procedures, practices and accounting methods of Casebia and its Subsidiaries unless otherwise required by applicable Law. Any such Tax Returns for a taxable period of Casebia that ends on or before the Closing Date or a Straddle Period and for which items of income, deduction, credit, gain or loss are passed through to Bayer and CRISPR will be provided to Bayer for its review and comment, at [***] days prior to the due date (with extension) for such Tax Return. 

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7.2Tax Contests.  CRISPR will notify Bayer within [***] days upon the receipt of any notice, or becoming aware, of any material audit or other similar examination with respect to Taxes relating to Casebia and/or Subsidiaries of Casebia for which Bayer would reasonably be expected to be liable pursuant to this Agreement or that relates to a Tax Return of Casebia and/or Subsidiaries of Casebia for which items of income, deduction, credit, gain or loss are passed through to Bayer and CRISPR (a “Tax Contest”); provided, however, that no failure or delay of CRISPR in providing such notice will reduce or otherwise affect the obligations of Bayer pursuant to this Agreement, except to the extent that Bayer is materially and adversely prejudiced as a result of such failure or delay.  CRISPR will control, and cause the applicable Subsidiary of Casebia to control, the conduct of any Tax Contest; provided, however, that (x) Bayer, at its own cost and expense, will have the right to participate in any such Tax Contest and (y) CRISPR will not settle any such Tax Contest without Bayer’s prior written consent, not to be unreasonably withheld, conditioned or delayed. Notwithstanding anything in this Agreement to the contrary, (i) the parties will not be permitted to make any election pursuant to Section 1101(g)(4) of P.L. 144-74 (2015) or Treasury Regulations Section 301.9100-22 (or, in each case, any corresponding or similar provision of state or local applicable Law or any Treasury Regulations promulgated with respect thereto) in connection with any Tax Contest or other filing or amendment of any Tax Return of Casebia or any Subsidiary of Casebia, in each case, with respect to any taxable period ending on or before December 31, 2017, (ii) with respect to any U.S. federal and state and local income Tax Returns for Casebia or any Subsidiary of Casebia for any taxable period beginning after December 31, 2017 and ending on or before the Closing Date or any Straddle Period, CRISPR will be permitted to make, to the maximum extent permitted under applicable Law, the election described in Code Section 6221(b) on such Tax Returns (and any similar or corresponding election for any such Tax Returns for state and local jurisdictions) (collectively, the “Audit Opt Out Election”) and (iii) if the Audit Opt Out Election is not available, CRISPR will be permitted to cause Casebia and/or Subsidiaries of Casebia to make a Code Section 6226 “push out” election with respect to any “imputed underpayment” relating to any settlement or compromise in connection with any Tax Contest.    

7.3Straddle Periods. In the case of any Straddle Period, the amount of any Taxes of Casebia and any Subsidiary of Casebia (a) based on or measured by income or receipts, sales or use, employment or withholding for the portion of any Straddle Period ending on the Closing Date will be determined based on an interim closing of the books as of the close of business on the Closing Date (and for such purpose, the taxable period of any partnership or other pass-through entity or “controlled foreign corporation” within the meaning of the Code in which the Casebia or any Subsidiary of Casebia holds a beneficial interest will be deemed to terminate at such time) and (b) the amount of other Taxes of the Companies for the portion of any Straddle Period ending on the Closing Date will be deemed to be the amount of such Tax for the entire taxable period multiplied by a fraction, the numerator of which is the number of days in the Straddle Period prior to and including the Closing Date and the denominator of which is the number of days in such Straddle Period; provided, however, that for purposes of the above calculation, the amount of such Tax for the entire period shall exclude any amount of Tax attributable to a transaction outside the ordinary course of business and occurring after the Closing.

7.4Tax Cooperation.  Bayer, CRISPR, Casebia and any Subsidiary of Casebia will (and will cause their respective Affiliates to) (a) assist in the preparation and timely filing of any Tax Return of Casebia and any Subsidiary of Casebia, (b) assist in any audit, examination or other action with respect to Taxes or Tax Returns of Casebia and any Subsidiary of Casebia, (c) make available any information, records or other documents relating to any Taxes or Tax Returns of Casebia and any Subsidiary of Casebia, and (d) provide any information necessary or reasonably requested to allow Casebia and any Subsidiary of Casebia to comply with any information reporting or withholding requirements contained in the Code or other applicable Law.

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7.5Transfer Taxes.  All sales, use, transfer, value added, goods and services, gross receipts, excise, conveyance and documentary, stamp, recording, registration, conveyance and similar Taxes incurred in connection with the Retirement, including penalties and interest (“Transfer Taxes”), will be deemed an Interim Period Expense. Bayer will timely file all necessary Tax Returns and other documentation with respect to all such Transfer Taxes and CRISPR will join in the execution of any such Tax Returns to the extent required by applicable Law.

7.6Retirement Price Allocation. As soon as reasonably practicable following the Closing Date, CRISPR will deliver a schedule to Bayer allocating the Retirement Amount (together with any assumed liabilities and other relevant items) amongst the assets of Casebia and its Subsidiaries (the “Retirement Price Allocation Schedule”). The Retirement Price Allocation Schedule will be prepared in accordance with the rules under Code Sections 741, 755 and 1060 and the Treasury Regulations promulgated thereunder.  CRISPR will prepare and deliver to Bayer, from time to time, revised or supplemental copies of the Retirement Price Allocation Schedule (the “Revised Retirement Price Allocation Schedule”) so as to report any matters on the Retirement Price Allocation Schedule that need updating or as may be required by applicable Law.  All Parties will file all Tax Returns, including any forms or reports required to be filed pursuant to applicable Law and will take all Tax positions consistent with the Retirement Price Allocation Schedule and any Revised Retirement Price Allocation Schedule.

7.7Tax Treatment. For all U.S. federal, and applicable state, income Tax purposes, Bayer, CRISPR and Casebia will treat (i) Casebia’s purchase of the Bayer LLP Interest as a distribution by Casebia to Bayer pursuant to Code Section 731 following which Bayer has no continuing partnership interest in Casebia and (ii) a termination of Casebia pursuant to Code Section 708(b)(1), and, in each case, will not take any Tax position to the contrary on any Tax Return, in any proceeding or audit, or otherwise.

Article VIII

SURVIVAL OF REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION

8.1Survival of Representations and Warranties.  The representations and warranties of Bayer and CRISPR AG contained in Article III and Article IV, respectively, and in any certificate delivered in connection herewith, will survive the execution hereof until [***] days following the expiration of the statute of limitations applicable to the subject matter thereof (the “Survival Date”); provided, however, that in the event of any fraud or Willful Breach, any claim relating thereto will survive without limitation. The covenants and indemnities (other than for breach of representation and warranties as provided for in the prior sentence) of a Party will survive until [***] days following the expiration of the statute of limitations applicable to the subject matter thereof (or such longer period as specified in the applicable covenant).  If an Officer’s Certificate asserting a claim for indemnification hereunder, (i) in the case of representations and warranties that survive until the Survival Date, on or before the Survival Date, (ii) in the case of any representation or warranty, before the date on which such representation or warranty ceases to survive, or (iii) in the case of the covenants and indemnities (other than for breach of representation and warranties as provided for in the clauses (i) and (ii)), before the date on which such covenant or indemnity ceases to survive, then the claims arising in connection with such Officer’s Certificate will survive for the benefit of all Indemnified Parties beyond the expiration of the applicable survival period for such representation, warranty, covenant or indemnity until such claims are fully and finally resolved.  The Parties further acknowledge that the time periods set forth in this Section 8.1 for the assertion of claims under this Agreement are the result of arms’ length negotiation among the parties and that they intend for the time periods to be enforced as agreed by the Parties.

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8.2Indemnification. 

(a)Subject to the provisions of this Article VIII, from and after the Closing, Bayer agrees to indemnify and hold harmless each CRISPR Indemnified Party from and against, and will compensate and reimburse each CRISPR Indemnified Party for, all Losses incurred or sustained by the CRISPR Indemnified Parties, or any of them, directly or indirectly, arising under, in connection with or as a result of any of the following: 

(i)any breach (or an allegation that would amount to a breach in the case of a third party claim) of a representation or warranty in (A) Article III as of the date of this Agreement (or, for any such representation or warranty made as of a specified date, any failure to be true and correct as of such date) or (B) any certificate delivered by Bayer pursuant to this Agreement;

(ii)any failure (or an allegation that would amount to a failure in the case of a third party claim) by Bayer, any of its Affiliates or any representative thereof to perform or comply with any covenant or agreement applicable to Bayer, such Affiliate or such representative contained in this Agreement;

(iii)any fraud, or any Willful Breach of any provision of this Agreement, by Bayer, any of its Affiliates or any representative thereof;

(iv)any claims or threatened claims by or purportedly on behalf of any holder or former holder of any portion of the Bayer LLP Interests, or in respect of any rights to acquire the Bayer LLP Interests, or any claims or threatened claims by any Person claiming to have rights to any portion of the consideration payable to Bayer hereunder; and

(v)any amounts owing to Casebia pursuant to Section 2.3(c).

(b)Subject to the provisions of this Article VIII, from and after the Closing, CRISPR AG agrees to indemnify and hold harmless each Bayer Indemnified Party from and against, and will compensate and reimburse each Bayer Indemnified Party for, all Losses incurred or sustained by the Bayer Indemnified Parties, or any of them, directly or indirectly, arising under, in connection with or as a result of any of the following: 

(i)any breach (or an allegation that would amount to a breach in the case of a third party claim) of a representation or warranty in (A) Article IV as of the date of this Agreement or, for any such representation or warranty made as of a specified date, any failure to be true and correct as of such date) or (B) any certificate delivered by CRISPR AG or Casebia pursuant to this Agreement;

(ii)any failure (or an allegation that would amount to a failure in the case of a third party claim) by CRISPR AG, any of its Affiliates (including Casebia and its Subsidiaries solely for failures that occur following the Closing) or any representative thereof to perform or comply with any covenant or agreement applicable to CRISPR AG, such Affiliate or such representative contained in this Agreement;

(iii)any fraud, or any Willful Breach of any provision of this Agreement, by CRISPR AG, any of its Affiliates (including Casebia and its Subsidiaries solely for fraud or Willful Breaches that occur following the Closing) or any representative thereof; and

(iv)any amounts owing to Bayer pursuant to Section 2.3(c).

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(c)For the purpose of this Article VIII only, when determining the amount of Losses suffered by an Indemnified Party as a result of any breach or inaccuracy of any representation or warranty set forth in this Agreement that is qualified or limited in scope as to material or any other materiality qualifications or limitations, such representation or warranty will be deemed to be made or given without such qualification or limitation. 

(d)Bayer will not have any right of contribution, indemnification or right of advancement from CRISPR, Casebia or any of their respective Affiliates with respect to any Loss claimed by a CRISPR Indemnified Party.

(e)The Parties have agreed that the Indemnified Parties’ rights to indemnification, compensation and reimbursement contained in this Article VIII relating to the representations, warranties, covenants, indemnities and obligations of the Parties are part of the basis of the bargain contemplated by this Agreement; and such representations, warranties, covenants, indemnities and obligations, and the rights and remedies that may be exercised by the Indemnified Parties with respect thereto, will not be waived, limited or otherwise affected by or as a result of (and the Indemnified Parties will be deemed to have relied upon such representations, warranties, covenants or obligations notwithstanding) any knowledge on the part of any of the Indemnified Parties or any of their representatives (regardless of whether obtained through any investigation by any Indemnified Party or any representative of any Indemnified Party or through disclosure by any Person, and regardless of whether such knowledge was obtained before or after the execution and delivery of this Agreement) or by reason of the fact that a an Indemnified Party or any of its representatives knew or should have known that any representation or warranty is or might be inaccurate or untrue. 

(f)This Article VIII will constitute the exclusive remedy after the Closing for recovery of Losses by the Indemnified Parties as a result of the indemnifiable matters specified in Section 8.2(a) and Section 8.2(b), provided, that notwithstanding anything herein to the contrary, nothing in this Agreement will limit the rights or remedies of an Indemnified Party (i) in the case of fraud or Willful Breach; (ii) against a signatory to an Ancillary Agreement for matters relating to such Ancillary Agreement (other than the certificates delivery by a Party in connection with the Closing); or (iii) with respect to specific performance, injunctive and other equitable relief.  

8.3Maximum Payments; Remedy.  

(a)The CRISPR Indemnified Parties will not be entitled to any recovery resulting from Section 8.2(a) (except as provided for below) until such time (if at all) as the total amount of all Losses that have been suffered or incurred by any one or more of such CRISPR Indemnified Parties with respect to such matters exceeds [***] in the aggregate; and in such event, the CRISPR Indemnified Parties will be entitled to be indemnified against and compensated and reimbursed to the extent all Losses from the first Dollar thereof; provided, that the limitations set forth in this Section 8.3(a) will not apply to any indemnification claims relating to any breach (or an allegation that would amount to a breach in the case of a third party claim) of any representation or warranty that involves fraud or Willful Breach. 

(b)The maximum amount that the CRISPR Indemnified Parties may recover from Bayer under Section 8.2(a), except for the matters contemplated to be excluded from the limitations of this Article VIII as set forth under Section 8.2(f) (for which no cap on recovery will apply), will be limited to an amount equal to [***]. The maximum amount that the Bayer Indemnified Parties may recover from CRISPR AG under Section 8.2(b), except for the matters contemplated to be excluded from the limitations of this Article VIII as set forth under Section 8.2(f) (for which no cap on recovery will apply), will be limited to an amount equal to [***].

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8.4Claims for Indemnification; Resolution of Conflicts.

(a)Making a Claim for Indemnification; Officer’s Certificate.  An Indemnified Party may seek recovery of Losses pursuant to this Article VIII by delivering to CRISPR AG or Bayer, as applicable, an Officer’s Certificate in respect of such claim.  The date of such delivery of an Officer’s Certificate is referred to herein as the “Claim Date” of such Officer’s Certificate (and the claims for indemnification contained therein).  For purposes hereof, “Officer’s Certificate” means a certificate signed by any authorized representative of an Indemnified Party (or, in the case of an Indemnified Party who is an individual, signed by such individual) stating that an Indemnified Party has paid, sustained, incurred, or accrued, or reasonably anticipates that it will have to pay, sustain, incur or accrue Losses and including, to the extent reasonably practicable, a non-binding, preliminary estimate of the amounts of such Losses; provided, that the Officer’s Certificate need only specify such information to the knowledge of such officer or such Indemnified Party as of the Claim Date, will not limit any of the rights or remedies of any Indemnified Party, and may be updated and amended from time to time by the Indemnified Party by delivering an updated or amended Officer’s Certificate to Bayer or CRISPR AG, as applicable.

(b)Objecting to a Claim for Indemnification.

(i)Bayer or CRISPR AG, as applicable, may object, in whole or in part, to a claim for indemnification set forth in an Officer’s Certificate by delivering to the Indemnified Party seeking indemnification a written statement of objection to the claim made in the Officer’s Certificate (an “Objection Notice”); provided, however, that, to be effective, such Objection Notice must (A) be delivered to the Indemnified Party pursuant to Section 10.1 prior to 5:00 p.m. Boston time on the [***] day following the Claim Date of the Officer’s Certificate (such deadline, the “Objection Deadline” for such Officer’s Certificate and the claims for indemnification contained therein) and (B) set forth in reasonable detail the nature of the objections to the claim in respect of which the objection is made.  

(ii)To the extent Bayer or CRISPR AG, as applicable, does not object in writing (as provided in Section 8.4(b)(i)) to the claims contained in an Officer’s Certificate prior to the Objection Deadline for such Officer’s Certificate, such failure to so object will be an irrevocable acknowledgment by Bayer or CRISPR AG, as applicable, that the Indemnified Party is entitled to the full amount of the claims for Losses set forth in such Officer’s Certificate (and such entitlement will be conclusively and irrefutably established) with respect to the applicable Indemnifying Parties (any such claim, an “Unobjected Claim”), subject to the limitations on recovery set forth herein.  Within [***] days of a claim becoming an Unobjected Claim, the Indemnifying Parties will make the applicable payment to such Indemnified Party.

(c)Resolution of Conflicts; Recovery of Losses.  In case Bayer or CRISPR AG, as applicable, timely delivers an Objection Notice in accordance with Section 8.4(b) hereof, Bayer or CRISPR AG, as applicable, and the applicable Indemnified Parties will attempt in good faith to agree upon the rights of the respective parties with respect to each of such claims.  If Bayer or CRISPR AG, as applicable, and the Indemnified Parties reach an agreement, a memorandum setting forth such agreement will be prepared and signed by all applicable parties (any claims covered by such an agreement, “Settled Claims”).  Any amounts required to be paid as a result of a Settled Claim will be paid by the Indemnifying Party to the Indemnified Parties pursuant to the Settled Claim within [***] days of the applicable claim becoming a Settled Claim.  If Bayer or CRISPR AG, as applicable, and the Indemnified Parties are unable to reach an agreement, the matter specified in the Objection Notice will be resolved pursuant to Section 10.8 (any claims resolved pursuant thereto, “Resolved Claims”).  Any claim under this Article VIII will be paid within [***] days of any claim becoming a Payable Claim. Subject to the limitations set forth in this Article VIII, an Indemnified Party may offset any indemnifiable Losses for a Payable Claim under this Agreement against any amounts payable to an Indemnified Party (or any of its Affiliates) under any Ancillary Agreement. For the purposes hereof, a “Payable Claim” means a claim for indemnification of Losses under this Article VIII, to the extent that such claim has not yet been satisfied, that is (i) a Resolved Claim, (ii) a Settled Claim, or (iii) an Unobjected Claim.  

18

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8.5Third Party Claims.  If CRISPR or Bayer becomes aware of a third party claim (a “Third Party Claim”) which CRISPR or Bayer reasonably believes may result in a claim for indemnification by an Indemnified Party pursuant to this Article VIII, such Party will notify the other Party promptly of such claim, and the other Party will be entitled, at its expense, to participate in, but not to determine or conduct, the defense of such Third Party Claim.  CRISPR AG will have the right in its sole discretion to conduct the defense of, and to settle, any such claim and Bayer will not have a right of approval or consent with respect to any such Third Party Claim; provided, however, that except with the consent of Bayer (such consent not to be unreasonably withheld, conditioned or delayed), no settlement of any such Third Party Claim with third party claimants will be determinative of the amount of Losses relating to such matter or otherwise admissible in any proceeding or used in any way to resolve any dispute with respect to the amount of Losses.  The Parties and any other Indemnified Parties will cooperate in all reasonable respects with any Third Party Claim.

8.6Tax Treatment of Indemnification Payments.  Any indemnification payments pursuant to this Article VIII will be treated as an adjustment to the Retirement Amount by the Parties and its Affiliates for Tax purposes, unless otherwise required by Law.

Article IX

AMENDMENT AND WAIVER

9.1Amendment.  This Agreement may not be amended, except by an instrument in writing signed by Bayer, Casebia and CRISPR.   

9.2Extension; Waiver.  Any Party may, to the extent legally allowed, (a) extend the time for the performance of any of the obligations of any other Party, (b) waive any inaccuracies in the representations and warranties made to such party contained herein or in any document delivered pursuant hereto, and (c) waive compliance with any of the covenants, agreements or conditions for the benefit of such party contained herein.  Any agreement on the part of a Party to any such extension or waiver will be valid only if set forth in an instrument in writing signed on behalf of such party.  Any waiver of any term or condition will not be construed as a waiver of any subsequent breach or a subsequent waiver of the same term or condition, or a waiver of any other term or condition of this Agreement.  No delay or failure by any party to assert any of its rights or remedies will constitute a waiver of such rights or remedies.

19

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

Article X

GENERAL PROVISIONS

10.1Notices.  All notices and other communications hereunder will be in writing and will be deemed delivered, given and received (a) when delivered in person, (b) when transmitted by email or facsimile (with written confirmation of completed transmission), (c) on the third Business Day following the mailing thereof by certified or registered mail (return receipt requested) or (d) when delivered by an express courier (with written confirmation of delivery) to the Parties at the following addresses (or to such other address or facsimile number as such party may have specified in a written notice given to the other Parties):

(a)if to CRISPR or, following the Closing, Casebia, to:

 

	
 
	
CRISPR Therapeutics AG

	
 
	
Baarerstrasse 14

	
 
	
6300 Zug

	
 
	
Switzerland

	
 
	
Attn:  Each of Chief Executive Officer and General Counsel

	
 
	
E-mail: [***]

	
 
	
 

	
 
	
with a copy (which will not constitute notice) to:

	
 
	
 

	
 
	
Goodwin Procter LLP

	
 
	
100 Northern Avenue

	
 
	
Boston, MA 02210

	
 
	
Attention: [***]

	
 
	
Facsimile No.:  617-321-4362

	
 
	
Email:  [***]

(b)if to Bayer, to:

 

	
 
	
Bayer HealthCare LLC

	
 
	
610 Main Street

	
 
	
Cambridge, MA

	
 
	
Attention: [***]

	
 
	
 

	
 
	
with a copy (which will not constitute notice) to:

	
 
	
 

	
 
	
Orrick, Herrington & Sutcliffe LLP

	
 
	
1000 Marsh Road

	
 
	
Menlo Park, CA 94025

	
 
	
Attention:  [***]

	
 
	
Email: [***]

 

10.2Expenses.  Except as otherwise specified in this Agreement, all costs and expenses, including fees and disbursements of counsel, financial advisors and accountants, incurred in connection with this Agreement and the Transactions will be borne by the party incurring such costs and expenses.  

10.3Interpretation.  Unless a clear contrary intention appears: (a) the singular number will include the plural, and vice versa; (b) reference to any gender includes each other gender; (c) reference to any agreement, document or instrument means such agreement, document or instrument as amended or modified and in effect from time to time in accordance with the terms thereof; (d) “include” and “including,” and variations thereof, will not be deemed to be terms of limitation, but rather will be deemed to be followed by the words “without limitation”; (e) all references in this Agreement to “Schedules,” “Sections” and 

20

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

“Exhibits” are intended to refer to Schedules, Sections and Exhibits to this Agreement, except as otherwise indicated; (f) the table of contents and headings in this Agreement are for convenience of reference only, will not be deemed to be a part of this Agreement, and will not be referred to in connection with the construction or interpretation of this Agreement; (g) “or” is used in the inclusive sense of “and/or”; (h) with respect to the determination of any period of time, “from” means “from and including” and “to” means “to but excluding”; (i) “hereunder,” “hereof,” “hereto,” and words of similar import will be deemed references to this Agreement as a whole and not to any particular Article, Section or other provision hereof; and (j) “shall” and “will” will have the same meaning hereunder.  References to sums of money will be expressed in United States Dollars.

10.4Counterparts.  This Agreement may be executed in one or more counterparts, all of which will be considered one and the same agreement and will become effective when one or more counterparts have been signed by each of the Parties and delivered to the other Parties, it being understood that all parties need not sign the same counterpart.  Until and unless each Party has received a counterpart hereof signed by the other Parties, this Agreement will have no effect and no Party will have any right or obligation hereunder (whether by virtue of any other oral or written agreement or other communication).  Any signature page delivered electronically or by facsimile (including transmission by Portable Document Format or other fixed image form) will be binding to the same extent as an original signature page.

10.5Entire Agreement; Assignment.  This Agreement, the exhibits and annexes hereto, the other schedules and the Ancillary Agreements, and any provision of any Transaction Document terminated under the JV Termination Agreement which by its terms survives such termination: (a) constitute the entire agreement among the parties with respect to the subject matter hereof and supersede all prior agreements and understandings both written and oral (including any letter of intent, term sheet or related discussions), among the parties with respect to the subject matter hereof, and (b) will not be assigned by operation of law or otherwise, except that each Party may assign its rights and delegate its obligations hereunder (i) after the Closing, in connection with a sale of such Party or a sale of all or substantially all of its assets and (ii) to one or more of its Affiliates as long as such Party remains ultimately liable for all of such Party’s obligations hereunder. 

10.6Severability.  If any provision of this Agreement or the application thereof, becomes or is declared by a court of competent jurisdiction to be illegal, void or unenforceable, the remainder of this Agreement will continue in full force and effect and the application of such provision to other Persons or circumstances will be interpreted so as reasonably to effect the intent of the Parties.  The Parties further agree to replace such void or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent possible, the economic, business and other purposes of such void or unenforceable provision.

10.7Other Remedies.  Except as otherwise set forth herein, any and all remedies herein expressly conferred upon a party will be deemed cumulative with and not exclusive of any other remedy conferred hereby, or by law or equity upon such party, and the exercise by a party of any one remedy will not preclude the exercise of any other remedy.  Without prejudice to remedies at law, the parties will be entitled to specific performance or other equitable relief, including injunctive relief, in the event of a breach or threatened breach of this Agreement. 

10.8Arbitration; Submission to Jurisdiction; Consent to Service of Process.

(a)Except for a determination of the Final Interim Period Expenses, which will be resolved exclusively by the Accountant pursuant to Section 2.3, all disputes, claims, or controversies arising out of or relating to the Agreement, the Ancillary Agreements (other than as expressly set forth therein) or any other agreement or document executed and delivered pursuant to the Agreement (other than as expressly set forth therein) or the negotiation, breach, validity or performance hereof and thereof or the Transactions, including claims of fraud and including as well the determination of the scope or applicability of this agreement to arbitrate, will be resolved solely and exclusively by binding arbitration administered 

21

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

by JAMS in New York, New York, before a single arbitrator (the “Arbitrator”).  Except as modified in this Section 10.8, the arbitration will be administered pursuant to JAMS’ Comprehensive Rules and Procedures.  The parties further agree that this arbitration will apply equally to requests for temporary, preliminary or permanent injunctive relief, except that in the case of temporary or preliminary injunctive relief any party may proceed in court without prior arbitration for the purpose of avoiding immediate and irreparable harm or to enforce its rights under Section 5.4 or Section 5.5.

(b)The parties covenant and agree that the arbitration hearing will commence within [***] days of the date on which a written demand for arbitration is filed by any Party (the “Filing Date”).  The hearing will be no more than [***] Business Days.  In connection with the arbitration, the Arbitrator will have the power to order the production of documents by each party and any third-party witnesses.  In addition, each party may take up to three depositions as of right, with each deposition limited to eight hours, excluding breaks, and the Arbitrator may grant additional depositions upon good cause shown.  For purposes of determining the number of depositions as of right, multiple petitioners or multiple respondents will each respectively be deemed one party.  The Arbitrator will not have the power to order the answering of interrogatories or the response to requests for admission.  The Arbitrator’s award will be made and delivered within [***] days of the closing of the evidentiary hearing on the merits (the “Hearing”) or within [***] days of service of post-Hearing briefs, if the arbitrator directs service of such briefs, will be binding and final as between the parties, and a judgment may be entered upon the award in any court having jurisdiction thereof.  The Arbitrator’s decision will set forth a reasoned basis for any award of damages or finding of liability.  The parties covenant and agree that the arbitration will conclude within [***] months of the Filing Date, and the Arbitrator will be provided notice of such [***]-month limit (and agreed to abide by it) prior to his or her appointment as Arbitrator.

(c)The parties will maintain the confidential nature of the arbitration proceeding and any award thereunder, including the Hearing, except as may be necessary to prepare for or conduct the arbitration hearing on the merits, or except as may be necessary in connection with a court application for a preliminary remedy, a judicial challenge to an award or its enforcement, or unless otherwise required by Law, judicial decision or applicable securities laws or under applicable stock exchange rules.

(d)The parties will (i) bear their own attorneys’ fees, costs and expenses in connection with the arbitration, and (ii) share equally in the fees and expenses charged by the Arbitrator; provided, however, that the prevailing party will be awarded its share of the Arbitrator’s fees and expenses and all other costs and expenses, including attorneys’, consultants’ and experts’ fees; provided, further, that any party unsuccessfully refusing to comply with the award or an order of the Arbitrator will be liable for costs and expenses, including attorneys’, consultants’ and experts’ fees, incurred by the other party in enforcing the award or order.  If the Arbitrator determines a party to be the prevailing party under circumstances where the prevailing party obtained relief on some but not all of the claims and counterclaims, the Arbitrator may award the prevailing party an appropriate percentage of the costs and expenses incurred by the prevailing party.

(e)Subject in all cases to the foregoing, each of the Parties irrevocably consents to the exclusive jurisdiction and venue of the state or federal courts located within New York, New York, in connection with any matter based upon, arising out of or relating to this Agreement or the matters contemplated herein, agrees that process may be served upon them in any manner authorized by the laws of the State of New York for such Persons and waives and covenants not to assert or plead any objection which they might otherwise have to such jurisdiction, venue and such process.  Each party agrees not to commence any legal proceedings related hereto except in such courts.

10.9Governing Law. The Parties agree that this Agreement will be governed by, and construed in accordance with, the laws of the State of New York.  Notwithstanding that the laws of the State of New York will apply to and govern this Agreement, any choice of law specified in any of the documents and agreements referred to herein and made a part hereof will be respected by the Parties and will take precedence over the choice of law provision specified in this Section 10.9.

22

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

10.10WAIVER OF JURY TRIAL.  EACH OF THE PARTIES HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY ACTION OR LIABILITY DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.  EACH OF THE PARTIES HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF ANY SUCH ACTION OR LIABILITY, SEEK TO ENFORCE THE FOREGOING WAIVER; AND (B) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 11.10.

10.11Rules of Construction.  The Parties agree that they have been represented by counsel during the negotiation and execution of this Agreement and, therefore, waive the application of any Law, regulation, holding or rule of construction providing that ambiguities in an agreement or other document will be construed against the party drafting such agreement or document.

10.12No Third Party Beneficiary.  Notwithstanding anything contained in this Agreement to the contrary, nothing in this Agreement, expressed or implied, is intended to confer on any Person other than the Parties or their respective successors and assigns any rights, remedies, or Liabilities under or by reason of this Agreement except that (i) Article VIII will also be for the benefit of the Indemnified Parties, (ii) Section 5.3, from and after (and subject to the occurrence of) the Closing, will be for the benefit of the D&O Indemnified Parties and (iii) Section 5.4 will also be for the benefit of the Affiliates of CRISPR (which will include, from and after the Closing, Casebia). 

10.13Tax Advice.  No party to this Agreement makes any representations or warranties to any other party regarding the Tax treatment of the Transactions pursuant to this Agreement or any of the Tax consequences to any other party of this Agreement or the Transactions. Each party to this Agreement acknowledges that it is relying solely on its own Tax advisors in connection with this Agreement and the Transactions.

10.14Translations.  This Agreement is in the English language only, which language will be controlling in all respects, and all versions hereof in any other language will be for accommodation only and will not be binding upon the Parties. All communications and notices to be made or given pursuant to this Agreement, and any dispute proceeding related to or arising hereunder, will be in the English language.  If there is a discrepancy between any translation of this Agreement and this Agreement, this Agreement will prevail.

10.15Further Assurances.  From and after the Closing, each of the Parties will use commercially reasonable efforts to take promptly, or cause to be taken promptly, all actions, and to do promptly, or cause to be done promptly, all things necessary, proper or advisable under applicable Laws to consummate and make effective the Transactions, to obtain all necessary waivers, consents, approvals and other documents required to be delivered hereunder and to effect all necessary registrations and filings and to remove any injunctions or other impediments or delays, legal or otherwise, in order to consummate and make effective the Transactions for the purpose of securing to the Parties the benefits contemplated by this Agreement and the Ancillary Agreements.

 

[Remainder of page intentionally left blank]

 

23

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

IN WITNESS WHEREOF, CRISPR, Casebia and Bayer have caused this Agreement to be signed, all as of the date first written above.

 

	
CRISPR Therapeutics AG

	
 
	
 

	
By:
	
/s/ Rodger Novak

	
 
	
Name: Rodger Novak

	
 
	
Title: President

	
 
	
 

	
 
	
 

	
CRISPR Therapeutics, Inc.

	
 
	
 

	
By:
	
/s/ Michael Tomsicek

	
 
	
Name: Michael Tomsicek

	
 
	
Title: Chief Financial Officer

 

 

 

[Signature Page – Retirement Agreement]

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

IN WITNESS WHEREOF, CRISPR, Casebia and Bayer have caused this Agreement to be signed, all as of the date first written above.

 

	
Bayer HealthCare LLC

	
 
	
 

	
By:
	
/s/ Kelly Gast

	
 
	
Name: Kelly Gast

	
 
	
Title:   President

 

 

 

[Signature Page – Retirement Agreement]

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

IN WITNESS WHEREOF, CRISPR, Casebia and Bayer have caused this Agreement to be signed, all as of the date first written above.

 

	
Casebia Therapeutics Limited Liability Partnership

	
 
	
 

	
By:
	
/s/ Samarth Kulkarni

	
 
	
Name: Samarth Kulkarni, Ph.D.

	
 
	
Title:   Authorized Representative

 

 

 

[Signature Page – Retirement Agreement]

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

Schedule I

Interim Period Expenses

[***]

 

 

 

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

Schedule II

Casebia Employees

[***]

 

 

 

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

Exhibit A

Form of 2019 Option Agreement

[***]

 

 

 

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

Exhibit B

Form of Deed of Amendment and Restatement

[***]

 

 

 

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

Exhibit C

Form of JV Termination Agreement

[***]

 

 

 

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

Exhibit D

Form of Master Confidentiality Agreement

[***]

 

 

 

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

Exhibit E

Form of Resignation Letter

[***]crsp-ex1031_516.htm

Exhibit 10.31 

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

OPTION AGREEMENT

 

BETWEEN

 

BAYER HEALTHCARE LLC

 

AND

 

CRISPR THERAPEUTICS AG

 

December 13, 2019

 

 

 

 

 

 

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

Option AGREEMENT

This OPTION AGREEMENT (this “Agreement”) is entered into as of December 13, 2019 (the “Effective Date”) by and between Bayer Healthcare LLC (“Bayer”) and CRISPR Therapeutics AG (“CRISPR”).  Bayer and CRISPR each may be referred to herein individually as a “Party” or collectively as the “Parties.”  

RECITALS

WHEREAS, 

A.Bayer and CRISPR entered into the Joint Venture Agreement on December 19, 2015 (as amended, restated and/or otherwise modified from time to time, the “JV Agreement”);

B.Bayer, CRISPR, CRISPR Therapeutics, Inc. and Casebia Therapeutics Limited Liability Partnership entered into a Retirement Agreement on December 13, 2019 (as amended, restated and/or otherwise modified from time to time, the “Retirement Agreement”);

C.In connection with the Retirement (as defined in the Retirement Agreement), Bayer and CRISPR have agreed to terminate the JV Agreement (as permitted by Section 16.1(a) of the JV Agreement), which termination will also result in termination or amendment to the terms of the Transaction Documents as set forth therein;

D.In connection with entering the Retirement Agreement, Bayer and CRISPR will enter into other Ancillary Agreements (as defined in the Retirement Agreement);

E.Bayer and CRISPR desire for CRISPR to Research and Develop certain Products (each as defined below);

F.Bayer wishes to have an option to co-commercialize and a right of first negotiation to license (with CRISPR) certain Products under the terms and conditions set forth herein;

G.As contemplated by the Retirement Agreement, entering into this Agreement is a condition to Closing (as defined in the Retirement Agreement).

NOW, THEREFORE, in consideration of the respective covenants, representations, warranties and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and accepted, the Parties hereto agree as follows:

ARTICLE 1.

DEFINITIONS

For purposes of this Agreement, the following capitalized terms will have the following meanings:

	
 
	
1.1.
	
“Affiliate” means, with respect to any entity, any Person that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common  control with such entity; and for the purposes of this definition, “control” (and the terms “controlled by” and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such entity, directly or indirectly, whether through the ownership of voting securities or by contract or otherwise. Without limiting the generality of the foregoing, a Person shall be deemed to control another 

 

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

	
 
		
Person if any of the following conditions is met: (a) in the case of corporate entities, direct or indirect ownership of at least fifty percent (50%) of the stock or shares having the right to vote for the election of directors, and (b) in the case of non-corporate entities, direct or indirect ownership of at least fifty percent (50%) of the equity interest with the power to direct the management and policies of such non-corporate entities. The Parties acknowledge that in the case of certain entities organized under the laws of certain countries outside of the United States, the maximum percentage ownership permitted by law for a foreign investor may be less than fifty percent (50%), and that in such case such lower percentage shall be substituted in the preceding sentence, provided that such foreign investor has the power to direct the management and policies of such entity.

	
 
	
1.2.
	
“Agreement” has the meaning set forth in the Preamble.

	
 
	
1.3.
	
“Agreement Term” means the period commencing on the Effective Date and ending on the expiration of this Agreement pursuant to Section 7.1, unless terminated earlier as provided herein.

	
 
	
1.4.
	
“Applicable Law” means all applicable laws, statutes, rules, regulations and other pronouncements having the effect of law of any federal, national, multinational, state, provincial, county, city or other political subdivision, agency or other body, domestic or foreign, including any applicable rules, regulations, guidelines, or other requirements of the Regulatory Authorities that may be in effect from time to time.

	
 
	
1.5.
	
“Approval Application” means, with respect to a Product in a particular jurisdiction, an application for approval, license, registration or authorization necessary for the Commercialization of such Product in such jurisdiction, including, with respect to the United States, an application for approval for such Product by the FDA, and with respect to the European Union, an application for approval for such Product by the European Commission.

	
 
	
1.6.
	
“Autoimmune Field” means any field under the heading “Autoimmune Focus Area” set forth on Schedule A.

	
 
	
1.7.
	
“Available” has the meaning set forth in Section 1.22.

	
 
	
1.8.
	
“[***] Arbitration” means the arbitration process set forth in Schedule B.

	
 
	
1.9.
	
“[***] Expert” has the meaning set forth in Schedule B.

	
 
	
1.10.
	
“Bayer” has the meaning set forth in the Preamble.

	
 
	
1.11.
	
“Breaching Party” has the meaning set forth in Section 7.2.2.

	
 
	
1.12.
	
“Business Day” means any day other than a Saturday, a Sunday or a day on which banks in New York City, United States of America or Frankfurt-Main, Germany or Leverkusen, Germany are authorized or obligated by Applicable Law to close. 

	
 
	
1.13.
	
“cGCP” means the Good Clinical Practice regulations as defined by the FDA or foreign equivalent Regulatory Authority.  

	
 
	
1.14.
	
“cGLP” means the Good Laboratory Practice regulations as defined by the FDA or foreign equivalent Regulatory Authority.

3

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

	
 
	
1.15.
	
“cGMP” means the Current Good Manufacturing Practice regulations as defined by the FDA or foreign equivalent Regulatory Authority.

	
 
	
1.16.
	
“Change of Control” means (a) a merger or consolidation of CRISPR with a Third Party that results in the voting securities of CRISPR outstanding immediately prior thereto, or any securities into which such voting securities have been converted or exchanged, ceasing to represent more than 50% of the combined voting power of the surviving entity or the parent of the surviving entity immediately after such merger or consolidation, or (b) a transaction or series of related transactions in which a Third Party, together with its Affiliates, becomes the beneficial owner of more than 50% of the combined voting power of the outstanding securities of CRISPR, or (c) the sale or other transfer to a Third Party of all or substantially all of CRISPR’s business to which the subject matter of this Agreement relates.  Notwithstanding the foregoing, the term “Change of Control” will not include any sale of shares of capital stock of CRISPR, in a single transaction or series of related transactions in which CRISPR issues new securities solely to institutional investors for cash or the cancellation or conversion of indebtedness or a combination thereof where such transaction(s) are conducted primarily for bona fide equity financing purposes.  

	
 
	
1.17.
	
“Clinical Trial” means a study in humans that is conducted in accordance with cGCP and is designed to generate data in support of an Approval Application. 

	
 
	
1.18.
	
“CMC Information” means all chemistry, manufacturing, and controls information and data relating to a Product, including information and data that would be found in Module 2.3 or Module 3 of an IND.  

	
 
	
1.19.
	
“Co-Commercialization Agreement” has the meaning set forth in Section 2.6.1.

	
 
	
1.20.
	
“Commercialize” or “Commercializing” means to market, promote, distribute, offer for sale, sell, have sold, import, export or otherwise commercialize a product, to conduct activities, other than Research, Development and Manufacturing, in preparation for the foregoing activities, including obtaining Price Approval, and to conduct post-Marketing Approval studies (including Clinical Trials).  When used as a noun, “Commercialization” means any and all activities involved in Commercializing.

	
 
	
1.21.
	
“Commercially Reasonable Efforts” means with respect to the efforts to be expended by any Person, with respect to any objective, reasonable, diligent and good faith efforts to accomplish such objective.  With respect to any objective relating to the Research, Development or Commercialization of a Product, “Commercially Reasonable Efforts” means [***] taking into account, without limitation, with respect to each Product [***].  “Commercially Reasonable Efforts” will be [***].

	
 
	
1.22.
	
“Confidential Information” means, with respect to a Party (the “Disclosing Party”), all Know-How or other information of the Disclosing Party, including proprietary information (whether or not patentable) regarding or embodying the Disclosing Party’s corporate information, technology (including Intellectual Property), products, business information or objectives, whether disclosed prior to, on or after the Effective Date.  The terms and conditions of this Agreement will be considered Confidential Information of both Parties, with both Parties deemed to be the Receiving Party of such Confidential Information.  Notwithstanding any provision of this Section 1.22 to the contrary, Confidential Information does not include any Know-How or information that: (a) was already known by the Receiving Party (other than under an obligation of confidentiality to the Disclosing Party) at the time of 

4

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

	
 
		
disclosure by or on behalf of the Disclosing Party; (b) was generally available to the public or otherwise part of the public domain at the time of its disclosure to the Receiving Party; (c) became generally available to the public or otherwise part of the public domain after its disclosure to the Receiving Party, other than through any act or omission of the Receiving Party in breach of its obligations under this Agreement; (d) was disclosed to the Receiving Party, other than under an obligation of confidentiality, by a Third Party who had no obligation to the Disclosing Party not to disclose such information to the Receiving Party; or (e) was independently discovered or developed by or on behalf of the Receiving Party without the use of any Confidential Information belonging to the Disclosing Party; provided, in connection with the foregoing exclusions from protection, that specific Confidential Information will not be deemed to be known, generally available, in the public domain, disclosed, independently discovered or developed (individually and collectively “Available”), merely because broader or related information is Available, nor will combinations of elements or principles be considered to be Available merely because individual elements thereof are Available. 

	
 
	
1.23.
	
“Control” or “Controlled” means with respect to any Know-How or Patent or other data, information or Materials, possession of the ability by CRISPR or its Affiliate(s) (whether by sole or joint ownership, license or otherwise, other than pursuant to this Agreement) to grant, without violating the terms of any agreement with a Third Party, a license, access or other right in, to or under such Know-How or Patent or other data, information or Materials.  Notwithstanding anything in this Agreement to the contrary, CRISPR will be deemed to not Control any Patents or Know-How that are owned or controlled by a Third Party described in the definition of “Change of Control,” or such Third Party’s Affiliates (other than an Affiliate of CRISPR prior to the Change of Control), (a) prior to the closing of such Change of Control, except to the extent that any such Patents or Know-How were developed prior to such Change of Control through the use of CRISPR’s technology, or (b) after such Change of Control to the extent that such Patents or Know-How are developed or conceived by such Third Party or its Affiliates (other than CRISPR) after such Change of Control without using or incorporating CRISPR’s technology. 

	
 
	
1.24.
	
“CRISPR” has the meaning set forth in the Preamble.

	
 
	
1.25.
	
“CRISPR Indemnified Party” has the meaning set forth in Section 6.1.

	
 
	
1.26.
	
“CRISPR Know-How” means any Know-How that (a) [***] and (b) [***].  

	
 
	
1.27.
	
“CRISPR Patents” means any Patent that (a) [***] and (b) [***].  

	
 
	
1.28.
	
“CRISPR/Cas Technology” means a clustered regularly interspaced short palindromic repeats (CRISPR)/CRISPR-associated (Cas) protein system that comprises (a) [***] and (b) [***].

	
 
	
1.29.
	
“Data Package” means a data package containing (a) all information that would be required to be included in any IND submission for a Product in the applicable Field to the extent such information exists at the time the written notice of the [***] IND submission is provided to Bayer; and (b) all material preclinical data relating to such Product, to the extent not already included in the information described in clause (a), in each case ((a) and (b)), to the extent that such information is in the possession or Control of CRISPR or any of its Affiliates. CRISPR may redact CMC Information from a Data Package subject to Section 2.6.5.

5

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

	
 
	
1.30.
	
“Development” means all clinical and non-clinical research and development activities conducted after filing of an IND for a product, including toxicology, pharmacology test method development and stability testing, process development, formulation development, delivery system development, quality assurance and quality control development, statistical analysis, Clinical Trials (other than post-Marketing Approval Clinical Trials), regulatory affairs, pharmacovigilance, Clinical Trial regulatory activities and obtaining and maintaining Regulatory Approval.  When used as a verb, “Develop” or “Developing” means to engage in Development. 

	
 
	
1.31.
	
“Disclosing Party” means (a) with respect to CRISPR, CRISPR and its Affiliates (including Casebia Therapeutics Limited Liability Partnership and its Affiliates) and (b) with respect to Bayer, Bayer and its Affiliates.

	
 
	
1.32.
	
“Eligible Product” has the meaning set forth in Section 2.6.1.

	
 
	
1.33.
	
“EMA” means the European Medicines Agency and any successor entity thereto.

	
 
	
1.34.
	
“European Commission” means the European Commission or any successor entity that is responsible for granting Marketing Approvals authorizing the sale of pharmaceuticals in the European Union.  

	
 
	
1.35.
	
“European Union” or “EU” means (a) the economic, scientific and political organization of member states as it may be constituted from time to time, which as of the Effective Date consists of Austria, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, The Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom of Great Britain and Northern Ireland and that certain portion of Cyprus included in such organization, (b) any member country of the European Economic Area that is not otherwise a member of the European Union, and (c) any country not otherwise included in clauses (a) or (b) that participates in the unified filing system under the auspices of the EMA.  For clarity, European Union will at all times be deemed to include each of Italy, Germany, France, the United Kingdom and Spain. 

	
 
	
1.36.
	
“Executive Officers” means the Chief Executive Officer of CRISPR, initially Samarth Kulkarni, and the Head of R&D of Bayer’s Pharmaceuticals Division, initially Dr. Joerg Moeller. 

	
 
	
1.37.
	
“FDA” means the United States Food and Drug Administration and any successor entity thereto.

	
 
	
1.38.
	
“FD&C Act” means the United States Federal Food, Drug, and Cosmetic Act, as amended, and the rules and regulations promulgated thereunder.

	
 
	
1.39.
	
“Field” means the diagnosis, treatment, or prevention of disease in humans in an indication included in the Autoimmune Field, the Hematology A Field, or the Ophthalmology Field, as applicable.

	
 
	
1.40.
	
“Force Majeure” means a condition, the occurrence and continuation of which is beyond the reasonable control of a Party, including an act of God, voluntary or involuntary compliance with any regulation, law or order of any government, war, civil commotion, labor strike or lock-out, epidemic, flood, failure or default of public utilities or common carriers, destruction of production facilities or materials by fire, earthquake, storm or like catastrophe.

6

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

	
 
	
1.41.
	
“[***]” means [***]. 

	
 
	
1.42.
	
“Governmental Authority” means any court, agency, department, authority or other instrumentality of any national, state, county, city or other political subdivision.

	
 
	
1.43.
	
“Hematology A Field” means any field under the heading “Hematology A Focus Area” set forth on Schedule A.

	
 
	
1.44.
	
“IND” means any Investigational New Drug application, filed with the FDA pursuant to Part 312 of Title 21 of the U.S. Code of Federal Regulations, including any supplements or amendments thereto.  References herein to IND will include, to the extent applicable, any comparable filings outside the United States.

	
 
	
1.45.
	
“Indemnified Party” has the meaning set forth in Section 6.3.

	
 
	
1.46.
	
“Indemnifying Party” has the meaning set forth in Section 6.3.

	
 
	
1.47.
	
“Ineligible Field” has the meaning set forth in Section 2.6.1.

	
 
	
1.48.
	
“Intellectual Property” means (i) patents (including utility, design, plant, utility model, reissues, re-examination, and patents of addition), patent applications (filed, unfiled or being prepared), records of invention, (ii) trademarks (registered or unregistered), trademark applications, trade names, copyrights (registered or unregistered), copyright applications, mask works, service marks (registered or unregistered), service mark applications, database rights (registered or unregistered), all together with the goodwill associated with such marks or names, (iii) trade secrets, technology, inventions, know-how, processes and confidential and proprietary information, including any being developed (including but not limited to designs, manufacturing data, design data, test data, operational data, and formulae), whether or not recorded in tangible form through drawings, software, reports, manuals or other tangible expressions, whether or not subject to statutory registration, anywhere, and all rights to any of the foregoing.

	
 
	
1.49.
	
“Know-How” means Intellectual Property, data, results, pre-clinical and clinical protocols and data from studies and clinical trials, chemical structures, chemical sequences, information, inventions, know-how, formulas, trade secrets, techniques, methods, processes, procedures and developments, whether or not patentable; provided that Know-How does not include Patents claiming any of the foregoing.

	
 
	
1.50.
	
“Knowledge” means (i) with respect to CRISPR [***] and (ii) with respect to Bayer [***].

	
 
	
1.51.
	
“Liability” has the meaning set forth in Section 6.1.

	
 
	
1.52.
	
“License Agreement” has the meaning set forth in Section 2.6.1.

	
 
	
1.53.
	
“Manufacture” or “Manufactured” or “Manufacturing” means activities directed to making, having made, producing, manufacturing, processing, filling, finishing, packaging, labeling, quality control testing and quality assurance release, shipping or storage of a product.

	
 
	
1.54.
	
“Marketing Approval” means, with respect to a Product in a particular jurisdiction, all approvals, licenses, registrations or authorizations necessary for the Commercialization of such Product in such jurisdiction, including, with respect to the United States, approval of an Approval Application for such Product by the FDA and with respect to the European Union, approval of an Approval Application for such Product by the European Commission.

7

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

	
 
	
1.55.
	
“Materials” means all biological materials or chemical compounds arising out of a Party’s activities under this Agreement or otherwise provided by a Party for use by the other Party to conduct activities pursuant to this Agreement, including Clinical Trial samples, cell lines, assays, viruses and vectors.  

	
 
	
1.56.
	
“Non-Breaching Party” has the meaning set forth in Section 7.2.2.

	
 
	
1.57.
	
“Ophthalmology Field” means any field under the heading “Ophthalmology Focus Area” set forth on Schedule A.

	
 
	
1.58.
	
“Optioned Product” has the meaning set forth in Section 2.6.2.

	
 
	
1.59.
	
“Party” or “Parties” has the meaning set forth in the Preamble.

	
 
	
1.60.
	
“Patent Challenge” has the meaning set forth in Section 7.2.3.

	
 
	
1.61.
	
“Patent” or “Patents” means the rights and interests in and to issued patents and pending patent applications and similar government-issued rights (e.g., utility models) protecting inventions in any country, jurisdiction or region (including inventor’s certificates and utility models), including all priority applications, international applications, provisionals, non-provisionals, substitutions, continuations, continuations-in-part, divisionals, renewals and all patents granted thereon, and all reissues, reexaminations, extensions, confirmations, revalidations, registrations and patents of addition thereof, including patent term extensions and supplementary protection certificates, international patent applications filed under the Patent Cooperation Treaty (PCT) and any foreign equivalents to any of the foregoing.

	
 
	
1.62.
	
“Person” means any individual, partnership, limited partnership, limited liability company, joint venture, syndicate, sole proprietorship, company or corporation with or without share capital, unincorporated association, trust, trustee, executor, administrator or other legal personal representative or governmental body. 

	
 
	
1.63.
	
“Price Approval” means, in any country where a Governmental Authority authorizes reimbursement for, or approves or determines pricing for, pharmaceutical products, receipt (or, if required to make such authorization, approval or determination effective, publication) of such reimbursement authorization or pricing approval or determination.

	
 
	
1.64.
	
“Product” means any pharmaceutical product, medical therapy, preparation, substance, or formulation for use in the Field (a) that is Researched, Developed or Commercialized by or on behalf of CRISPR or any of its Affiliates or licensees and (b) comprising or employing, in whole or in part, (i) components of a [***], or (ii) the resulting modified human cells or tissue, or another cell- or tissue-based product, or any other therapeutic product [***].  

	
 
	
1.65.
	
“Receiving Party” means (a) with respect to CRISPR or its Affiliates as the Disclosing Party, Bayer and its Affiliates and (b) with respect to Bayer or its Affiliates as the Disclosing Party, CRISPR and its Affiliates (including Casebia Therapeutics Limited Liability Partnership and its Affiliates).

	
 
	
1.66.
	
“Regulatory Approval” means the technical, medical and scientific licenses, registrations, authorizations and approvals (including approvals of Approval Applications, supplements and amendments, pre- and post- approvals, and labeling approvals) of any Regulatory Authority, necessary for the Research, Development, clinical testing, commercial manufacture, distribution, marketing, promotion, offer for sale, use, import, export or sale of a pharmaceutical product in a regulatory jurisdiction, including Marketing Approval.

8

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

	
 
	
1.67.
	
“Regulatory Authority” means, with respect to a country in the Territory, any national (e.g., the FDA), supra-national (e.g., the European Commission, the Council of the European Union, or the EMA), regional, state or local regulatory agency, department, bureau, commission, council or other Governmental Authority involved in the granting of Regulatory Approvals or Price Approvals for pharmaceutical products in such country or countries.

	
 
	
1.68.
	
“Regulatory Filings” means, collectively: (a) all INDs, Approval Applications, establishment license applications, Drug Master Files, applications for designation as an “Orphan Licensed Product(s)” under the Orphan Drug Act, for “Fast Track” status under Section 506 of the FD&C Act (21 U.S.C. § 356) or for a Special Protocol Assessment under Section 505(b)(4)(B) and (C) of the FD&C Act (21 U.S.C. § 355(b)(4)(B)) and all other similar filings (including counterparts of any of the foregoing in any country or region in the Territory); (b) any applications for Regulatory Approval or Price Approval and other applications, filings, dossiers or similar documents submitted to a Regulatory Authority in any country for the purpose of obtaining Regulatory Approval or Price Approval from that Regulatory Authority; (c) all supplements and amendments to any of the foregoing; and (d) any correspondence with Regulatory Authorities in connection with any of the foregoing.

	
 
	
1.69.
	
“Research” means conducting research activities to discover and advance products, including pre-clinical studies and optimization, but specifically excluding Development and Commercialization.  When used as a verb, “Researching” means to engage in Research.

	
 
	
1.70.
	
“Research and Development Period” has the meaning set forth in Section 2.1.

	
 
	
1.71.
	
“ROFN Exercise Fee” has the meaning set forth in Section 3.1.

	
 
	
1.72.
	
“Subcontractor” means a consultant, subcontractor or other vendor engaged by CRISPR or its Affiliates to perform activities under this Agreement.

	
 
	
1.73.
	
“Territory” means all countries of the world.

	
 
	
1.74.
	
“Third Party” means any Person other than a Person that is a Party.

	
 
	
1.75.
	
“United States” or “U.S.” means the fifty states of the United States of America and all of its territories and possessions and the District of Columbia.

ARTICLE 2.

RESEARCH, DEVELOPMENT, MANUFACTURING

AND COMMERCIALIZATION OF PRODUCTS

 

	
 
	
2.1.
	
Research and Development.  The following terms will govern Research and Development of Products from the Effective Date until (a) with respect to an Eligible Product, the date on which Bayer exercises its Option for such Eligible Product pursuant to Section 2.6.1 and the Parties enter into a Co-Commercialization Agreement with respect to such Eligible Product or (b) the date on which Bayer has exercised its second Option for an Eligible Product (the “Research and Development Period”).

	
 
	
2.1.1.
	
Responsibility.  Except as otherwise provided in this Agreement, as between the Parties, CRISPR will be solely responsible for, and will have sole and exclusive control over, the Research and Development of Products, at CRISPR’s sole cost and expense.  Notwithstanding the foregoing, CRISPR 

9

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

	
 
		
will conduct the Research and Development of Products in accordance with a mutually agreed research plan focused specifically on the Research and Development of Products in the Field (the “Research Plan”). Such Research Plan will include a summary budget, and be provided to Bayer within [***] days following the Effective Date and will be automatically attached as Appendix A to this Agreement.  

	
 
	
2.1.2.
	
Subcontractors.  CRISPR may engage one or more Subcontractors to perform its Research or Development activities contemplated by this Agreement with respect to Products.  Each contract between CRISPR and a Subcontractor will be consistent with the provisions of this Agreement (including ARTICLE 8).  CRISPR will be responsible for the effective and timely management of and payment of its Subcontractors.  The engagement of any Subcontractor in compliance with this Section 2.1.2 will not relieve CRISPR of its obligations under this Agreement.  CRISPR will be solely responsible for any taxes, including income, withholding, payroll, VAT, sales tax or the like, that arise from the use of a Subcontractor.  

	
 
	
2.1.3.
	
Research and Development Diligence.  For a period of [***] following the Effective Date, CRISPR (acting directly or through one or more Affiliates, or its successors or assigns) will use Commercially Reasonable Efforts to advance the Research, Development and Manufacturing of two or more Products that are primarily intended to treat a disease or condition in the Ophthalmology Field, Autoimmune Field, or the Hematology A Field. In furtherance of the foregoing, CRISPR will invest [***] across the following areas: (i) Research, Development and Manufacturing of two or more Products that are primarily intended to treat a disease or condition in the Ophthalmology Field, Autoimmune Field, or the Hematology A Field; and (ii) [***] delivery technologies that may be utilized in the Field.

	
 
	
2.2.
	
Regulatory Matters. 

	
 
	
2.2.1.
	
Responsibilities.  During the Research and Development Period, as between the Parties, CRISPR will have the sole authority to prepare and file Regulatory Filings and applications for Regulatory Approval for any and all Products, and will have the sole responsibility for communicating with any Regulatory Authority both prior to and following Regulatory Approval, including all communications and decisions with respect to (a) pricing of Products and (b) the negotiation of Product pricing with Regulatory Authorities and other Third Parties, in each case, at CRISPR’s sole cost and expense.  Prior to any [***] meeting regarding an Eligible Product in a Field that is not an Ineligible Field, CRISPR will (i) share with Bayer any relevant materials reasonably in advance; (ii) use good faith efforts to consider and incorporate any feedback provided by Bayer regarding such meeting materials; and (iii) promptly provide Bayer with copies of any material communications and correspondence resulting from such [***] meeting; provided, however, that, in the case of (i) and (iii) above, CRISPR may redact any CMC Information contained therein.  

	
 
	
2.2.2.
	
Ownership.  During the Research and Development Period, ownership of all right, title and interest in and to any and all Regulatory Filings directed to any Product in each country of the Territory will be held in the name of CRISPR or its designee.

10

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

	
 
	
2.3.
	
Commercialization.  During the Research and Development Period, CRISPR will have sole and exclusive control over all matters relating to the Commercialization of Products, at CRISPR’s sole cost and expense.

	
 
	
2.4.
	
Manufacturing.  During the Research and Development Period, CRISPR will have the exclusive right to Manufacture and supply Products either itself or through one or more Affiliates or Third Parties selected by CRISPR in its sole discretion, at CRISPR’s sole cost and expense.  

	
 
	
2.5.
	
Applicable Laws. During the Research and Development Period, CRISPR will, and will require its Affiliates and Subcontractors to, comply with all Applicable Law in its and their Research, Development, Manufacture and Commercialization of Products, including where appropriate, cGMP, cGCP and cGLP (or similar standards). 

	
 
	
2.6.
	
Bayer Option; Right of First Negotiation.  

     

	
 
	
2.6.1.
	
Co-Commercialization Option.  During the Agreement Term, Bayer will have an option (each, an “Option”) to enter into a worldwide, co-exclusive (with CRISPR), co-development, and co-commercialization agreement (the “Co-Commercialization Agreement”) for two of the following: (i) [***] Products that is Developed that is primarily intended to treat a disease or condition in the Ophthalmology Field, (ii) [***] Products that is Developed that is primarily intended to treat a disease or condition in the Autoimmune Field, and/or (iii) [***] Products that is Developed that is primarily intended to treat a disease or condition in the Hematology A Field (each of the [***] Products described in Section 2.6.1(i), Section 2.6.1(ii) and Section 2.6.1(iii) are an “Eligible Product” and are collectively referred to as the “Eligible Products”), which Option may be exercised by Bayer providing written notice of such exercise to CRISPR as described in Section 2.6.5 and, if such exercise is the first exercise, payment of the amount due under Section 3.1 in connection with such first exercise. For clarity, once Bayer has exercised an Option with respect to an Eligible Product in a particular Field, Bayer may not subsequently exercise its remaining Option for an Eligible Product in the same Field (an “Ineligible Field”). For example, if Bayer exercises an Option for an Eligible Product in the Ophthalmology Field, then Bayer will have one remaining Option that Bayer may exercise for an Eligible Product in the Autoimmune Field or the Hematology A Field, and the Ophthalmology Field will be an Ineligible Field. For the avoidance of doubt, (A) Bayer may only exercise an Option with respect to an Eligible Product and (B) each Eligible Product for which Bayer has exercised its Option may be subject to a separate Co-Commercialization Agreement.

	
 
	
2.6.2.
	
Negotiation of Co-Commercialization Agreement.  In the event that Bayer exercises an Option with respect to an Eligible Product (once optioned, an “Optioned Product”), the Parties will negotiate in good faith the terms and conditions of the Co-Commercialization Agreement for such Optioned Product for a period of up to ninety (90) days following the exercise of such Option (the “Option Negotiation Period”), which terms and conditions will be reasonable and customary for agreements of that type and will include: (i) a requirement that the Parties share equally all Development, Manufacturing 

11

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

	
 
		
and Commercialization costs and all future profits with respect to the Optioned Products (with each Party bearing fifty percent (50%) of such costs, and receiving fifty percent (50%) of such profits (on terms to be specified in the Co-Commercialization Agreement)); (ii) a requirement that decisions with respect to all matters governed by the Co-Commercialization Agreement (including annual plans and budgets for the Development, Manufacture and Commercialization of Optioned Products) would be subject to the mutual agreement of the Parties; provided that if the Parties are unable to reach mutual agreement on any such matters, such matters will be subject to escalation and [***] Arbitration on terms consistent with Section 2.6.6 and Schedule B; (iii) a co-exclusive license (with CRISPR) grant to Bayer under the CRISPR Know-How and CRISPR Patents, to Research, Develop, use, keep, sell, offer for sale, import, export, and Commercialize Optioned Products in the Field in the Territory in accordance with the terms of the Co-Commercialization Agreement; and (iv) other reasonable and customary provisions for transactions of this type as the Parties may agree. For clarity, CRISPR will continue to conduct and will be solely responsible for, and continue to have sole and exclusive control over, the Research, Development and Manufacture of an Eligible Product during the Option Negotiation Period and during pendency of any matters referred for resolution pursuant to Section 2.6.6, up and until the Parties enter into a Co-Commercialization Agreement with respect to such Eligible Product, or, in the event Bayer exercises a ROFN during the Option Negotiation Period pursuant to Section 2.6.3 prior to the Parties entering into a Co-Commercialization Agreement with respect to such Optioned Product, during the ROFN Negotiation Period and during pendency of any matters referred for resolution pursuant to Section 2.6.6, up and until the Parties enter into a License Agreement with respect to such Eligible Product. 

	
 
	
2.6.3.
	
Right of First Negotiation.  On an Optioned Product-by-Optioned Product basis, Bayer will have the right of first negotiation for a license agreement (with CRISPR) (each, a “License Agreement”) for such Optioned Product (such right, a “ROFN”), which ROFN may be exercised by Bayer providing written notice of such exercise to CRISPR during (i) the period beginning on the effective date of a Co-Commercialization Agreement and ending on the three (3) month anniversary of such effective date, or (ii) the Option Negotiation Period and prior to entering into a Co-Commercialization Agreement. For the avoidance of doubt, (A) Bayer may only exercise a ROFN with respect to an Optioned Product and (B) each Optioned Product for which Bayer has exercised its ROFN may be subject to a separate License Agreement.

	
 
	
2.6.4.
	
Exercise of ROFN.  In the event that Bayer exercises its ROFN with respect to an Optioned Product, the Parties will enter into a License Agreement for such Optioned Product substantially in the form of the template attached as Appendix B hereto and on the financial terms set forth therein. For the period commencing upon the date Bayer exercises the ROFN and expiring [***] days thereafter (the “ROFN Negotiation Period”) the Parties will negotiate the financial terms, including the milestone payments and royalty rates, for the License Agreement [***].  If the Parties are unable to reach mutual agreement on such financial terms, the disagreement will be subject to escalation and 

12

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

	
 
		
[***] Arbitration on terms consistent with Section 2.6.6 and Schedule B. If the Parties enter into a License Agreement with respect to an Optioned Product, then any rights thereunder will extend to any successor Product(s) Developed under the same IND.  The rights to any such successor Product(s) described in the preceding sentence will continue so long as any License Agreement with respect to such Optioned Product remains in effect. For clarity, if a Co-Commercialization Agreement is in effect with respect to such Optioned Product, the terms of the applicable Co-Commercialization Agreement with respect to such Optioned Product will continue to govern the Parties rights and obligations with respect to the Research, Development and Manufacture of such Optioned Product during the ROFN Negotiation Period and during pendency of any matters referred for resolution pursuant to Section 2.6.6, up and until the Parties enter into a License Agreement with respect to such Optioned Product. For clarity, in the event Bayer exercises a ROFN during the Option Negotiation Period pursuant to Section 2.6.3, CRISPR will continue to conduct and will be solely responsible for, and continue to have sole and exclusive control over, the Research, Development and Manufacture of an Eligible Product during the ROFN Negotiation Period and during pendency of any matters referred for resolution pursuant to Section 2.6.6, up and until the Parties enter into a License Agreement with respect to such Eligible Product

	
 
	
2.6.5.
	
Data Package.  Until the earlier of the date on which (i) Bayer exercises its second Option for an Eligible Product or (ii) subject to Sections 2.6.1(i), (ii) and (iii) hereto, CRISPR has delivered to Bayer up to [***] Data Packages for the Eligible Products in the Field (up to [***] Data Packages in each of the Ophthalmology, Autoimmune, and Hematology A Fields for so long as such Field is not an Ineligible Field), CRISPR will give Bayer at least [***] days’ prior written notice of the intended submission date for its [***] IND submission for an Eligible Product in a Field.  Such written notice will include a Data Package provided that CRISPR may redact CMC Information from such Data Package (the “Section 2.6.5 Redacted CMC Information”).  Bayer may request to receive any Section 2.6.5 Redacted CMC Information by providing written notice to CRISPR within [***] of receipt of the Data Package (a “CMC Request”). Upon receipt of a CMC Request from Bayer, CRISPR will provide the Section 2.6.5 Redacted CMC Information to Bayer on the following conditions:  (i) [***]; (ii) [***]; (iii) [***]; and (iv) [***].  Following Bayer’s receipt of such written notice and Data Package, or, if CMC Information was excluded from the Data Package, following Bayer’s receipt of the Section 2.6.5 Redacted CMC Information provided by CRISPR pursuant to a CMC Request, Bayer will have until [***] days after the submission date of such IND to exercise its Option by providing written notice to CRISPR (the “Expiration”). Within [***] Business Days after the [***] IND submission for an Eligible Product, if Bayer has exercised an Option for such Eligible Product, CRISPR will provide to Bayer a copy of such IND submission. Bayer must exercise the Option prior to the Expiration, or Bayer will be deemed to have irrevocably waived its rights with respect to the Option and ROFN for such Eligible Product.  All information provided by CRISPR pursuant to this Section 2.6.5 will constitute CRISPR’s Confidential Information.  For clarity, CRISPR will not be required to notify Bayer of any IND submission or provide a Data Package for an Eligible Product in an Ineligible Field or a Product that is not an Eligible Product. 

13

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

	
 
	
2.6.6.
	
Escalation Procedure.  In the event the Parties, despite their good faith negotiations, are unable to agree on the terms and conditions (including the milestone payments and royalty rates in the License Agreement for an Optioned Product) before the end of the Option Negotiation Period or ROFN Negotiation Period, as applicable, the Parties will refer those terms and conditions to which they have not mutually agreed to the Executive Officers, who will use reasonable efforts to reach agreement on such terms and conditions.  If such Executive Officers are unable to reach consensus with respect to such terms and conditions within [***] days after such referral, the matter will be referred for resolution in accordance with Schedule B, provided, that Bayer will have the right at any time after such [***]-day period to withdraw its notice of exercise of the Option or ROFN upon written notice to CRISPR, in which case the Parties will have no further obligations with respect to the negotiation of such Co-Commercialization Agreement or License Agreement.        

	
 
	
2.6.7.
	
Effect of No Exercise.  In the event that Bayer does not exercise an Option with respect to an Eligible Product, then CRISPR will remain solely responsible for all Development, Manufacturing and Commercialization activities of such Eligible Product, and Bayer shall have no rights or interest in such Eligible Product.  

ARTICLE 3.
FINANCIAL PROVISIONS 

	
 
	
3.1.
	
Option Exercise Fee.  Upon the exercise by Bayer of the first Option for an Eligible Product, Bayer will make a one-time payment to CRISPR in an amount equal to Twenty Million US Dollars (US$20,000,000) (the “Option Exercise Fee”).  Such payment will be due and payable within [***] Business Days of Bayer providing the relevant notice of exercise as described in Section 2.6.5 and will be held in an escrow account established by CRISPR pending the Parties’ efforts to enter into a Co-Commercialization Agreement with respect to such Eligible Product.  If Bayer subsequently exercises a ROFN for either or both Optioned Products, such amount will be creditable toward any upfront fee or other financial terms as set forth in a License Agreement for either or both Optioned Products for which Bayer exercised its ROFN.  Subsequent to the payment of the Option Exercise Fee for the first Option for an Eligible Product, no payment or fee will be required upon the exercise by Bayer of the second Option for an Eligible Product or either ROFN for an Optioned Product. 

	
 
	
3.2.
	
Payment Method; Currency.  

	
 
	
3.2.1.
	
All payments under this Agreement will be paid in U.S. Dollars, by wire transfer or ACH transfer to an account designated by CRISPR (which account CRISPR may update from time to time in writing). 

	
 
	
3.2.2.
	
If any amounts that are relevant to the determination of amounts to be paid under this Agreement or any calculations to be performed under this Agreement are denoted in a currency other than U.S. Dollars, then such amounts will be converted to their U.S. Dollar equivalent using CRISPR’s then-current standard procedures and methodology, including its then-current standard exchange rate methodology for the translation of foreign currency expenses into U.S. Dollars, consistently applied.

14

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

	
 
	
3.3.
	
Withholding Tax.  Where any sum due to be paid to CRISPR hereunder is subject to any withholding or similar tax, Bayer will pay such withholding or similar tax to the appropriate Governmental Authority and deduct the amount paid from the amount then due CRISPR, in a timely manner and promptly transmit to CRISPR an official tax certificate or other evidence of such withholding sufficient to enable CRISPR to claim such payment of taxes.  The Parties agree to cooperate with one another and use reasonable efforts to reduce or eliminate tax withholding or similar obligations in respect of payments made by Bayer to CRISPR under this Agreement.  CRISPR will provide Bayer any tax forms that may be reasonably necessary in order for Bayer not to withhold tax or to withhold tax at a reduced rate under an applicable bilateral income tax treaty.  Each Party will provide the other with reasonable assistance to enable the recovery, as permitted by Applicable Laws, of withholding taxes, value added taxes, or similar obligations resulting from payments made under this Agreement, such recovery to be for the benefit of the Party bearing such withholding tax or value added tax.

	
 
	
3.4.
	
Late Payment.  Any payments or portions thereof due hereunder that are not paid when due will accrue interest from the date due until paid at an annual rate equal [***] (or the maximum allowed by Applicable Law, if less).

ARTICLE 4.
INTELLECTUAL PROPERTY

	
 
	
4.1.
	
No Implied Licenses.  Except as expressly provided in this Agreement, no Party will be deemed by estoppel or implication to have granted the other Party any licenses or other right with respect to any Intellectual Property. 

ARTICLE 5.
REPRESENTATIONS AND WARRANTIES

	
 
	
5.1.
	
Representations and Warranties of Bayer.  Bayer hereby represents and warrants to CRISPR, as of the Effective Date, that:

	
 
	
5.1.1.
	
Bayer is duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization and has full corporate power and authority to enter into this Agreement and to carry out the provisions hereof;

	
 
	
5.1.2.
	
Bayer (a) has the requisite power and authority and the legal right to enter into this Agreement and to perform its obligations hereunder and (b) has taken all requisite action on its part to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder;  

	
 
	
5.1.3.
	
this Agreement has been duly executed and delivered on behalf of each of Bayer, and constitutes a legal, valid and binding obligation, enforceable against each of Bayer in accordance with the terms hereof;

	
 
	
5.1.4.
	
the execution, delivery and performance of this Agreement by Bayer will not constitute a default under or conflict with any agreement, instrument or understanding, oral or written, to which Bayer is a party or by which Bayer is bound, or violate any law or regulation of any court, governmental body or administrative or other agency having jurisdiction over Bayer; 

15

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

	
 
	
5.1.5.
	
Bayer has obtained all necessary consents, approvals and authorizations of all Governmental Authorities and other Persons or entities required to be obtained by it in connection with the execution and delivery of this Agreement; and

	
 
	
5.1.6.
	
there is no action, claim, demand, suit, proceeding, arbitration, grievance, citation, summons, subpoena, inquiry or investigation of any nature, civil, criminal, regulatory or otherwise, in law or in equity, pending or, to Bayer’s Knowledge, threatened against Bayer, any of its Affiliates or any Third Party, in each case relating to the transactions contemplated by this Agreement.

	
 
	
5.2.
	
Representations and Warranties of CRISPR.  CRISPR hereby represents and warrants to Bayer, as of the Effective Date, that, except as otherwise set forth on Schedule C: 

	
 
	
5.2.1.
	
CRISPR is duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization and has full corporate power and authority to enter into this Agreement and to carry out the provisions hereof;

	
 
	
5.2.2.
	
CRISPR (a) has the requisite power and authority and the legal right to enter into this Agreement and to perform its obligations hereunder and (b) has taken all requisite action on its part to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder;  

	
 
	
5.2.3.
	
this Agreement has been duly executed and delivered on behalf of CRISPR, and constitutes a legal, valid and binding obligation, enforceable against it in accordance with the terms hereof;

	
 
	
5.2.4.
	
the execution, delivery and performance of this Agreement by CRISPR will not constitute a default under or conflict with any agreement, instrument or understanding, oral or written, to which it is a party or by which it is bound, or violate any law or regulation of any court, governmental body or administrative or other agency having jurisdiction over it; 

	
 
	
5.2.5.
	
CRISPR has obtained all necessary consents, approvals and authorizations of all Governmental Authorities and other Persons or entities required to be obtained by CRISPR in connection with the execution and delivery of this Agreement;

	
 
	
5.2.6.
	
there is no action, claim, demand, suit, proceeding, arbitration, grievance, citation, summons, subpoena, inquiry or investigation of any nature, civil, criminal, regulatory or otherwise, in law or in equity, pending or, to CRISPR’s Knowledge, threatened against CRISPR, any of its Affiliates or any Third Party, in each case relating to the transactions contemplated by this Agreement.

	
 
	
5.3.
	
CRISPR Covenants.  CRISPR hereby covenants to Bayer that, except as expressly permitted under this Agreement:  

	
 
	
5.3.1.
	
it will not enter into any new agreement or other obligation with any Third Party, or amend an existing agreement with a Third Party, in each case that materially and adversely restricts, limits or encumbers the rights granted to Bayer under this Agreement or to be granted to Bayer upon exercise of the ROFN;

16

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

	
 
	
5.3.2.
	
it will not engage, in any capacity in connection with this Agreement any Person who either has been debarred by the FDA, is the subject of a conviction described in Section 306 of the FD&C Act or is subject to any such similar sanction; and

	
 
	
5.3.3.
	
CRISPR will inform Bayer in writing promptly if it or any Person engaged by CRISPR or any of its Affiliates who is performing services under this Agreement or any ancillary agreements is debarred or is the subject of a conviction described in Section 306 of the FD&C Act, or if any action, suit, claim, investigation or legal or administrative proceeding is pending or, to CRISPR’s Knowledge, is threatened, relating to the debarment or conviction of CRISPR, any of its Affiliates or any such Person performing services hereunder or thereunder.

	
 
	
5.4.
	
Disclaimer.  Except as otherwise expressly set forth in this Agreement, neither Party nor its Affiliates makes any representation or extends any warranty of any kind, either express or implied, including any warranty of merchantability or fitness for a particular purpose.  Bayer and CRISPR understand that a Product is the subject of ongoing Research and Development and that neither Party can assure the safety, usefulness or commercial or technical viability of any Product.

ARTICLE 6.
INDEMNIFICATION; INSURANCE

	
 
	
6.1.
	
Indemnification by Bayer.  Bayer will indemnify, defend and hold harmless CRISPR, each of its Affiliates, and each of its and its Affiliates’ employees, officers, directors and agents (each, a “CRISPR Indemnified Party”) from and against any and all liability, loss, damage, expense (including reasonable attorneys’ fees and expenses) and cost (collectively, a “Liability”) that the CRISPR Indemnified Party may be required to pay to one or more Third Parties to the extent resulting from or arising out of the material breach by Bayer of any of its representations, warranties or covenants set forth in this Agreement, except to the extent caused by the negligence or intentional acts of CRISPR or any CRISPR Indemnified Party. 

	
 
	
6.2.
	
Indemnification by CRISPR.  CRISPR will indemnify, defend and hold harmless Bayer, each of its Affiliates, and each of its and its Affiliates’ respective employees, officers, directors and agents (each, a “Bayer Indemnified Party”) from and against any and all Liabilities that the Bayer Indemnified Party may be required to pay to one or more Third Parties to the extent resulting from or arising out of:

	
 
	
6.2.1.
	
the material breach by CRISPR of any of its representations, warranties or covenants set forth in this Agreement, except to the extent caused by the negligence or intentional acts of Bayer or any Bayer Indemnified Party; or

	
 
	
6.2.2.
	
any claims of any nature arising out of the Research, Development, Manufacture, Commercialization or use of any Eligible Product by, on behalf of, or under the authority of, CRISPR (other than by any Bayer Indemnified Party).

17

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

	
 
	
6.3.
	
Procedure.  Each Party will notify the other Party in writing if it becomes aware of a claim for which indemnification may be sought hereunder.  In case any proceeding (including any governmental investigation) will be instituted involving any Party in respect of which indemnity may be sought pursuant to this ARTICLE 6, such Party (the “Indemnified Party”) will give prompt written notice of the indemnity claim to the other Party (the “Indemnifying Party”) and provide a copy to the Indemnifying Party of any complaint, summons or other written or verbal notice that the Indemnified Party receives in connection with any such claim.  An Indemnified Party’s failure to deliver written notice will relieve the Indemnifying Party of liability to the Indemnified Party under this ARTICLE 6 only to the extent such delay is prejudicial to the Indemnifying Party’s ability to defend such claim.  Provided that the Indemnifying Party is not contesting the indemnity obligation, the Indemnified Party will permit the Indemnifying Party to control any litigation relating to such claim and the disposition of such claim by negotiated settlement or otherwise and any failure to contest prior to assuming control will be deemed to be an admission of the obligation to indemnify.  The Indemnifying Party will act reasonably and in good faith with respect to all matters relating to such claim and will not settle or otherwise resolve such claim without the Indemnified Party’s prior written consent which will not be withheld, delayed or conditioned unreasonably other than settlements only involving the payment of monetary awards for which the Indemnifying Party will be fully-responsible.  The Indemnified Party will cooperate with the Indemnifying Party in such Party’s defense of any claim for which indemnity is sought under this Agreement, at the Indemnifying Party’s sole cost and expense.

	
 
	
6.4.
	
Insurance.  Each Party will maintain, at its cost, reasonable insurance against liability and other risks associated with its activities contemplated by this Agreement and will furnish to the other Party evidence of such insurance upon request.  Notwithstanding the foregoing, Bayer may self-insure to the extent that it self-insures for its other activities.

	
 
	
6.5.
	
Limitation of Consequential Damages.  Except for (a) claims of a Third Party that are subject to indemnification under this ARTICLE 6, (b) claims arising out of a Party’s willful misconduct or (c)  a Party’s breach of ARTICLE 8, neither Party nor any of its Affiliates will be liable to the other Party or its Affiliates for any incidental, consequential, special, punitive or other indirect damages or lost or imputed profits or royalties, lost data or cost of procurement of substitute goods or services, whether liability is asserted in contract, tort (including negligence and strict product liability), indemnity or contribution, and irrespective of whether that Party or any representative of that Party has been advised of, or otherwise might have anticipated the possibility of, any such loss or damage. 

ARTICLE 7.
TERM; TERMINATION

	
 
	
7.1.
	
Agreement Term; Expiration.  This Agreement is effective as of the Effective Date and, unless earlier terminated pursuant to the other provisions of this ARTICLE 7, will continue in full force and effect until the earlier of (i) five (5) years from the Effective Date, (ii) on an Optioned Product-by-Optioned Product basis, exercise of the ROFN and execution of a License Agreement by the Parties, or (iii) the Expiration, with respect to the second Eligible Product for which Bayer has exercised its Option.

18

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

	
 
	
7.2.
	
Termination of the Agreement.

	
 
	
7.2.1.
	
Bayer’s Termination for Convenience.  Bayer will be entitled to terminate this Agreement for convenience by providing CRISPR [***] written notice of such termination.

	
 
	
7.2.2.
	
Termination for Material Breach.  If a Party (the “Breaching Party”) is in material breach of this Agreement, then the other Party (the “Non-Breaching Party”) may deliver notice of such material breach to such first Party.  If the breach is curable, the Breaching Party will have [***] days from the receipt of such notice to cure such breach (except to the extent such breach involves the failure to make a payment when due, which breach must be cured within [***] Business Days following receipt of such notice).  If either the Breaching Party fails to cure such breach within such [***]-day or [***]-Business Day period, as applicable, or the breach is not subject to cure, the Non-Breaching Party in its sole discretion may terminate this Agreement in its entirety, by providing written notice to the Breaching Party. 

	
 
	
7.2.3.
	
Patent Challenge.  If Bayer (a) commences or actively and voluntarily participates in any action or proceeding (including any patent opposition or re-examination proceeding), or otherwise asserts any claim, challenging or denying the validity or enforceability of any claim of any CRISPR Patent or (b) actively and voluntarily assists any other Person in bringing or prosecuting any action or proceeding (including any patent opposition or re-examination proceeding) challenging or denying the validity or enforceability of any claim of any CRISPR Patent (each of (a) and (b), a “Patent Challenge”), then, to the extent permitted by Applicable Law, CRISPR shall have the right, in its sole discretion, to give notice to Bayer that CRISPR may terminate this Agreement [***] days following such notice, and, unless Bayer withdraws or causes to be withdrawn all such challenge(s) within such [***]-day period, CRISPR shall have the right to terminate this Agreement by providing written notice thereof to Bayer.  The foregoing right to terminate shall not apply with respect to any Patent Challenge where the Patent Challenge is made in defense of an assertion of the relevant Patent that is first brought by CRISPR against Bayer.  For the avoidance of doubt, (i) any participation by Bayer or its employees in any claim, challenge or proceeding in response to a subpoena or as required under a pre-existing agreement between Bayer’s employee(s) or consultant(s) and their prior employer(s), or (ii) any Patent Challenge brought or prosecuted by a Person in which Bayer or its Affiliates has a non-controlling financial investment and/or non-controlling representation on the governing body of such Person (provided that the individuals representing Bayer and/or its Affiliates on the governing body of such Person do not participate in discussions, communications or deliberations regarding a Patent Challenge and otherwise abstain from any vote pertaining to a Patent Challenge), shall not, in and of itself, constitute active and voluntary participation or assistance and shall not give rise to CRISPR’s right to terminate this Agreement.

	
 
	
7.2.4.
	
Termination for Insolvency.  If a Party makes an assignment for the benefit of creditors, appoints or suffers appointment of a receiver or trustee over all or substantially all of its property, files a petition under any bankruptcy or insolvency act or has any such petition filed against it that is not discharged within [***] days of the filing thereof, then the other Party may terminate this Agreement in its entirety effective immediately upon written notice to such Party.

19

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

	
 
	
7.2.5.
	
Change of Control.  For the avoidance of doubt, a Change of Control of CRISPR will not terminate this Agreement or otherwise change or affect the rights and obligations of the Parties under this Agreement.  

	
 
	
7.3.
	
Consequences of Expiration or Termination of the Agreement.  If this Agreement expires or is terminated by a Party in accordance with this ARTICLE 7 at any time and for any reason, the following terms will apply: 

	
 
	
7.3.1.
	
Solely in the event of a termination of this Agreement, the Parties will return (or destroy, as directed by the other Party) all data, files, records and other materials containing or comprising the other Party’s Confidential Information, except to the extent such Confidential Information is Confidential Information under the Retirement Agreement or another Ancillary Agreement and such agreement has not been terminated at the time of termination of this Agreement.  Notwithstanding the foregoing, the Parties will be permitted to retain one copy of such data, files, records, and other materials for archival and legal compliance purposes.  

	
 
	
7.3.2.
	
Termination or expiration of this Agreement for any reason will be without prejudice to any rights or financial compensation that will have accrued to the benefit of a Party prior to such termination or expiration.  Such termination or expiration will not relieve a Party from obligations that are expressly indicated to survive the termination or expiration of this Agreement. 

	
 
	
7.3.3.
	
The following provisions of this Agreement will survive any expiration or termination of this Agreement:  Article 1, Article 6, Article 8, and Article 9 and Section 7.3. 

ARTICLE 8.
CONFIDENTIALITY 

	
 
	
8.1.
	
Confidentiality.  Except to the extent expressly authorized by this Agreement or otherwise agreed in writing, the Parties agree that, during the Agreement Term and for [***] years thereafter, each Receiving Party hereto will, and will cause its Affiliates to: (a) keep the Disclosing Party’s Confidential Information confidential; (b) not publish, or allow to be published, and will not otherwise disclose, or permit the disclosure of, the Disclosing Party’s Confidential Information in any manner not expressly authorized pursuant to the terms of this Agreement or, to the extent Confidential Information under this Agreement is also Confidential Information under the Retirement Agreement or another Ancillary Agreement, such agreement; and (c) not use, or permit to be used, the Disclosing Party’s Confidential Information for any purpose other than as expressly authorized pursuant to the terms of this Agreement or, to the extent Confidential Information under this Agreement is also Confidential Information under the Retirement Agreement or another Ancillary Agreement, the terms of such agreement.  Without limiting the generality of the foregoing, to the extent that a Party or any of its Affiliates provides to the other Party or any of its Affiliates any Confidential Information owned by any Third Party, the Receiving Party will, and will cause its Affiliates to, handle such Confidential Information in accordance with the terms and conditions of this ARTICLE 8 applicable to a Receiving Party. 

20

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

	
 
	
8.2.
	
Authorized Disclosure.  Notwithstanding the foregoing provisions of Section 8.1, each Party may disclose Confidential Information belonging to the other Party (or such Party’s Affiliate) to the extent such disclosure is reasonably necessary to:

	
 
	
8.2.1.
	
file or prosecute patent applications as contemplated by this Agreement or, to the extent Confidential Information under this Agreement is also Confidential Information under the Retirement Agreement or another Ancillary Agreement, such agreement; 

	
 
	
8.2.2.
	
prosecute or defend litigation in accordance with this Agreement or, to the extent Confidential Information under this Agreement is also Confidential Information under the Retirement Agreement or another Ancillary Agreement, such agreement;

	
 
	
8.2.3.
	
exercise its rights and perform its obligations hereunder or, to the extent Confidential Information under this Agreement is also Confidential Information under the Retirement Agreement or another Ancillary Agreement, under such agreement; or

	
 
	
8.2.4.
	
comply with Applicable Law.

If a Party deems it reasonably necessary to disclose Confidential Information belonging to the other Party (or such Party’s Affiliate) pursuant to this Section 8.2, the Disclosing Party will to the extent possible give reasonable advance written notice of such disclosure to the other Party and take reasonable measures to ensure confidential treatment of such information.  

Notwithstanding anything to the contrary contained herein, in no event may [***] disclose [***] Confidential Information regarding any Product, other than the terms and conditions of this Agreement, to any Third Party (including any of [***] investors, collaborators or licensees, including in reports and meetings) that [***] as its primary business. 

	
 
	
8.3.
	
SEC Filings and Other Disclosures.  Either Party may disclose the terms of this Agreement (i) to the extent required to comply with Applicable Law, including the rules and regulations promulgated by the United States Securities and Exchange Commission or any equivalent governmental agency in any country in the Territory; provided that such Party will reasonably consider the comments of the other Party regarding confidential treatment sought for such disclosure to the extent permitted by Applicable Law and (ii) to its advisors (including financial advisors, attorneys and accountants), actual or potential acquisition partners, strategic partners, collaborators, services providers, actual or potential financing sources or investors and actual or potential underwriters on a need to know basis; provided that such disclosure is covered by terms of confidentiality similar to those set forth herein (which may include professional ethical obligations or may be of a shorter duration).  

	
 
	
8.4.
	
Public Announcements; Publications.

	
 
	
8.4.1.
	
Coordination.  CRISPR will have no obligation to consult with Bayer with respect to any scientific publication or public announcement concerning CRISPR’s Research, Development, Manufacture, Commercialization or use of any Product.

21

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

	
 
	
8.4.2.
	
Announcements.  Except as may be expressly permitted under Section 8.3 or as required to comply with Applicable Law (including the rules and regulations promulgated by the United States Securities and Exchange Commission or any equivalent governmental agency in any country in the Territory), neither Party will make any public announcement regarding this Agreement without the prior written approval of the other Party.    

	
 
	
8.4.3.
	
Publications.  CRISPR will have the sole right to make publications and public presentations with respect to the Products.  

ARTICLE 9.
MISCELLANEOUS

	
 
	
9.1.
	
Assignment.  Neither this Agreement nor any interest hereunder will be assignable by either Party without the prior written consent of the other Party, except as follows: (a) either Party may, subject to the terms of this Agreement, assign its rights and obligations under this Agreement by way of sale of itself or the sale of the portion of such Party’s business to which this Agreement relates, through merger, sale of assets or sale of stock or ownership interest including any Change of Control; provided that such sale is not primarily for the benefit of its creditors; and (b) either Party may assign, in whole or in part, its rights and/or obligations under this Agreement to any of its Affiliates; provided that such Party will remain liable for all of its rights and obligations under this Agreement.  An assigning Party will promptly notify the other Party of any assignment or transfer under the provisions of this Section 9.1.  This Agreement will be binding upon the successors and permitted assigns of the Parties and the name of a Party appearing herein will be deemed to include the names of such Party’s successors and permitted assigns to the extent necessary to carry out the intent of this Agreement.  Any assignment not in accordance with this Section 9.1 will be void.

	
 
	
9.2.
	
Force Majeure.  Each Party will be excused from the performance of its obligations under this Agreement to the extent that such performance is prevented by Force Majeure and the nonperforming Party promptly provides notice of the prevention to the other Party.  Such excuse will be continued so long as the condition constituting Force Majeure continues and the nonperforming Party uses Commercially Reasonable Efforts to remove the condition.  

	
 
	
9.3.
	
Representation by Legal Counsel.  Each Party hereto represents that it has been represented by legal counsel in connection with this Agreement and acknowledges that it has participated in the drafting hereof.  In interpreting and applying the terms and provisions of this Agreement, the Parties agree that no presumption will exist or be implied against the Party that drafted such terms and provisions.

	
 
	
9.4.
	
Notices.  All notices which are required or permitted hereunder will be in writing and sufficient if delivered personally, sent by nationally-recognized overnight courier or sent by electronic mail, confirmation of receipt requested, addressed as follows: 

If to Bayer:

 

Bayer Healthcare LLC

610 Main Street

Cambridge, MA 02139

Attention:  [***]

Email: [***]

22

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

 

with a copy to:

 

Orrick, Herrington & Sutcliffe LLP

1000 Marsh Rd

Menlo Park, CA 94025

Attention:  [***]

Email:  [***]

 

If to CRISPR:

 

CRISPR Therapeutics AG
Attn: Chief Executive Officer
Baarerstrasse 14

6300 Zug

Switzerland

E-mail: [***]

 

with a copy to:

 

CRISPR Therapeutics AG
Attn: General Counsel
Baarerstrasse 14

6300 Zug

Switzerland

E-mail: [***]

 

and:

 

Goodwin Procter LLP

Attn: [***]

100 Northern Avenue

Boston, Massachusetts 02210

E-mail: [***] 

or to such other address as the Party to whom notice is to be given may have furnished to the other Party in writing in accordance herewith.  Any such notice will be deemed to have been given: (a) when delivered if personally delivered on a Business Day (or, if delivered or sent on a non-Business Day, then on the next Business Day); (b) on receipt if sent by overnight courier; or (c) when confirmation of receipt is sent, if sent by electronic mail.  

	
 
	
9.5.
	
Amendment.  No amendment, modification or supplement of any provision of this Agreement will be valid or effective unless made in writing and signed by a duly authorized officer of each of Bayer and CRISPR.

	
 
	
9.6.
	
Waiver.  No provision of this Agreement will be waived by any act, omission or knowledge of a Party or its agents or employees except by an instrument in writing expressly waiving such provision and signed by a duly authorized officer of the waiving Party.  The waiver by either of Bayer or CRISPR of any breach of any provision hereof by the other Party will not be construed to be a waiver of any succeeding breach of such provision or a waiver of the provision itself.    

23

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

	
 
	
9.7.
	
Severability.  If any clause or portion thereof in this Agreement is for any reason held to be invalid, illegal or unenforceable, the same will not affect any other portion of this Agreement, as it is the intent of the Parties that this Agreement will be construed in such fashion as to maintain its existence, validity and enforceability to the greatest extent possible.  In any such event, this Agreement will be construed as if such clause of portion thereof had never been contained in this Agreement, and there will be deemed substituted therefor such provision as will most nearly carry out the intent of the Parties as expressed in this Agreement to the fullest extent permitted by Applicable Law.

	
 
	
9.8.
	
Descriptive Headings.  The descriptive headings of this Agreement are for convenience only and will be of no force or effect in construing or interpreting any of the provisions of this Agreement.

	
 
	
9.9.
	
Export Control.  This Agreement is made subject to any restrictions concerning the export of products or technical information from the United States of America or other countries that may be imposed upon or related to CRISPR or Bayer from time to time.  Each Party agrees that it will not export, directly or indirectly, any technical information acquired from the other Party under this Agreement or any products using such technical information to a location or in a manner that at the time of export requires an export license or other governmental approval, without first obtaining the written consent to do so from the appropriate Governmental Authority.

	
 
	
9.10.
	
Governing Law.  This Agreement, and all claims arising under or in connection therewith, will be governed by and interpreted in accordance with the substantive laws of The State of New York, without regard to conflict of law principles thereof.  

	
 
	
9.11.
	
Entire Agreement.  This Agreement, together with the Retirement Agreement and other Ancillary Agreements, constitutes and contains the complete, final and exclusive understanding and agreement of the Parties and cancels and supersedes any and all prior negotiations, correspondence, understandings and agreements, whether oral or written, between the Parties respecting the subject matter hereof and thereof and any Confidential Information disclosed by the Parties under such agreements will be treated in accordance with the provisions of ARTICLE 8.  

	
 
	
9.12.
	
Independent Contractors.  Both Parties are independent contractors under this Agreement.  Nothing herein contained will be deemed to create an employment, agency, joint venture or partnership relationship between the Parties hereto or any of their agents or employees, or any other legal arrangement that would impose liability upon one Party for the act or failure to act of the other Party.  Neither Party will have any express or implied power to enter into any contracts or commitments or to incur any liabilities in the name of, or on behalf of, the other Party, or to bind the other Party in any respect whatsoever.

	
 
	
9.13.
	
Interpretation.  Except where the context expressly requires otherwise, (a) the use of any gender herein will be deemed to encompass references to either or both genders, and the use of the singular will be deemed to include the plural (and vice versa), (b) the words “include,” “includes” and “including” will be deemed to be followed by the phrase “without limitation,” (c) the word “will” will be construed to have the same meaning and effect as the word “shall,” (d) any definition of or reference to any agreement, instrument or other document herein will be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (e) any reference herein to any 

24

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

	
 
		
Person will be construed to include the Person’s successors and assigns, (f) the words “herein,” “hereof” and “hereunder,” and words of similar import, will be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (g) all references herein to Sections, Schedules or Exhibits will be construed to refer to Sections, Schedules or Exhibits of this Agreement, and references to this Agreement include all Schedules and Exhibits hereto, (h) the word “notice” will mean notice in writing (whether or not specifically stated) and will include notices, consents, approvals and other written communications contemplated under this Agreement, (i) provisions that require that a Party, the Parties or any committee hereunder “agree,” “consent” or “approve” or the like will require that such agreement, consent or approval be specific and in writing, whether by written agreement, letter, approved minutes or otherwise (but excluding e-mail and instant messaging), (j) references to any specific law, rule or regulation, or article, section or other division thereof, will be deemed to include the then-current amendments thereto or any replacement or successor law, rule or regulation thereof, and (k)  the term “or” will be interpreted in the inclusive sense commonly associated with the term “and/or.”

	
 
	
9.14.
	
Translations.  This Agreement is in the English language only, which language will be controlling in all respects, and all versions hereof in any other language will be for accommodation only and will not be binding upon the Parties. All communications and notices to be made or given pursuant to this Agreement, and any dispute proceeding related to or arising hereunder, will be in the English language.  If there is a discrepancy between any translation of this Agreement and this Agreement, this Agreement will prevail.

	
 
	
9.15.
	
No Third Party Rights or Obligations.  No provision of this Agreement will be deemed or construed in any way to result in the creation of any rights or obligations in any Person not a Party to this Agreement.

	
 
	
9.16.
	
Further Actions.  Each Party agrees to execute, acknowledge and deliver such further instruments, and to do all such other acts, as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement.

	
 
	
9.17.
	
Counterparts.  This Agreement may be executed in two counterparts, each of which will be an original and both of which will constitute together the same document.  Counterparts may be signed and delivered by facsimile or digital transmission (.pdf), each of which will be binding when received by the applicable Party.

[SIGNATURE PAGE FOLLOWS]

* - * - * - *

 

25

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their representatives thereunto duly authorized as of the date first set forth above.

 

	
BAYER  HEALTHCARE LLC
	
 
	
CRISPR THERAPEUTICS AG

	
 
	
 
	
 
	
 
	
 

	
By:
	
/s/ Kelly Gast
	
 
	
By:
	
/s/ Rodger Novak

	
 
	
 
	
 
	
 
	
 

	
Name:
	
Kelly Gast
	
 
	
Name:
	
Rodger Novak

	
 
	
 
	
 
	
 
	
 

	
Title:
	
President
	
 
	
Title:
	
President

 

 

 

[Signature Page to Option Agreement]

 

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

Schedule A

Autoimmune Focus Area

[***]

 

Ophthalmology Focus Area

[***]

Hematology A Focus Area

[***]

 

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

Schedule B

[***] Arbitration Procedures

[***]

 

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

Schedule C

Disclosure Schedule

[***]

 

 

 

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

Appendix A

Research Plan

 

[***]

 

[***] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

Appendix B

Form of License Agreement

[***]

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