Document:

Manufacturing and Technology Transfer Agreement

 Exhibit 10.24D 
 MANUFACTURING AND TECHNOLOGY TRANSFER AGREEMENT 
 This Manufacturing and Technology Transfer
Agreement (this “Agreement”) is effective as of July 1, 2008 (the “Effective Date”), by and between XOMA (US) LLC, a Delaware limited liability company with offices at 2910 Seventh Street, Berkeley, California
94710 (“XOMA”), and Novartis Vaccines and Diagnostics, Inc., a Delaware corporation with offices at 4650 Horton Street, Emeryville, California 94608 (“NVDI”). XOMA and NVDI are sometimes referred to herein
individually as a “Party” and collectively as “Parties.” 
 RECITALS 
 WHEREAS, the Parties have entered into that certain Amended and Restated Research, Development and Commercialization Agreement effective as of the
Effective Date (the “Collaboration Agreement”); 
 WHEREAS, XOMA has substantial expertise in product development and
manufacturing of its own and its collaborators’ biopharmaceutical products and, in addition, has invested in biopharmaceutical manufacturing facilities; and 
 WHEREAS, NVDI desires to engage XOMA to perform technology transfer and other activities with respect to NVDI’s anti-[*] monoclonal antibody, known as [*] and its anti-CD40 monoclonal antibody, known as
HCD122, and to manufacture and supply two (2) GLP Batches of [*] and XOMA desires to provide such services to NVDI, on the terms and subject to the conditions set forth herein; 
 NOW, THEREFORE, in consideration of the foregoing premises and the mutual promises and covenants set forth below, NVDI and XOMA mutually agree as
follows; 
 ARTICLE 1 
 DEFINITIONS 
 Capitalized terms used but not defined herein shall have the meanings set forth in the Collaboration
Agreement. As used in this Agreement, he following terms will have the following meanings: 
 1.1 “[*]
Scale” means the 2750 liter nominal volume fermentation bioreactor production scale for the [*] Drug Substance manufacturing process that will result from scale-up work carried out by XOMA as part of the Project. 

1.2 “AAA” means the American Arbitration Association or its successor organization. 
 1.3 “Affiliate” means any person or entity that, directly or indirectly, through one or more intermediaries, owns, is
owned by or is under common ownership with, a Party, where “own,” “owned” and “ownership” refer to (a) direct or indirect possession of at least fifty percent (50%) of the outstanding voting securities of a
corporation or a comparable ownership in any other type of entity; or (b) the actual ability of an entity, person or group to control and direct the management of the person or entity, whether by contract or otherwise. 

 1.4 “Batch” means the quantity of [*] Drug Substance that is intended to
have a uniform character and quality, within specified limits, and that is produced according to a single manufacturing order during the same cycle of manufacture. 
 1.5 “Confidential Information” of a Party means all confidential or proprietary information of such Party that the other Party receives or learns under this Agreement. Confidential
Information shall include without limitation the manufacturing processes transferred to, used by or improved by XOMA under this Agreement. Confidential Information shall not include any information to the extent that the receiving Party can
demonstrate by competent evidence: 
 1.5.1. is now, or hereafter becomes, through no act or failure to act on the part
of the receiving Party in breach of Article 9, generally known or available; 
 1.5.2. is known by the receiving Party
at the time of receiving such information, as shown by written records predating such receipt; 
 1.5.3. is furnished
after the Effective Date to the receiving Party by a Third Party, without breach of and not subject to any obligation of confidentiality; or 
 1.5.4. is independently developed by the receiving Party without use of or reference to Confidential Information of the other Party, as shown by independent written records contemporaneous with such
development. 
 1.6 “Control,” “Controls” and “Controlled”
mean, with respect to a particular item of information or Intellectual Property Right, that the applicable Party owns or has a license to such item or right and has the ability to grant to the other Party access to and a license or sublicense (as
applicable) under such item or rights as provided for herein without violating the terms of any agreement or other arrangement with any Third Party. 
 1.7 “CPR” means the CPR Institute for Dispute Resolution or its successor organization. 
 1.8 “Dedicated Equipment” has the meaning set forth in Section 2.9.1. 
 1.9 “Delivery” has the meaning set forth in Section 4.2.1. 
 1.10
“Facility” means XOMA’s appropriate facilities located in Berkeley and Emeryville, California. 
 1.11
“FDA” means the U.S. Food and Drug Administration or any successor agency. 
 1.12 “FD&C
Act” means the U.S. Food, Drug and Cosmetics Act and applicable regulations and guidances promulgated thereunder, as amended from time to time. 
  

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 1.13 “FTE” has the meaning set forth in Section 5.1. 
 1.14 “GLP” means the then current standards for laboratory practice in relation to biologicals, as set forth in the
FD&C Act, and such standards of good laboratory practice as are required by the FDA. 
 1.15 “Governmental
Authority” means any supranational, national, regional, state or local regulatory agency, department, bureau, or other governmental entity. 
 1.16 “Indemnitee” has the meaning set forth in Section 8.3. 
 1.17 “Indemnitor” has the meaning set forth in Section 8.3. 
 1.18
“Innovations” means inventions, discoveries, works of authorship, trade secrets and other know-how or developments. 
 1.19 “Intellectual Property Rights” means Patents, copyrights, trademarks, service marks, trade secrets, mask works and applications for the foregoing, in any country, supra-national organization or territory
of the world. 
 1.20 “[*] Drug Substance” means the anti-[*] monoclonal antibody known as [*] in
purified bulk form that has been manufactured and processed to the stage where it meets the Master Production Records and is suitable for further processing to yield Product. 
 1.21 “Losses” means losses, claims, suits, damages, costs, fees and expenses (including without limitation reasonable
attorneys’ fees). 
 1.22 “Master Production Records” or “MPRs” means the
documentation generated by XOMA that collectively defines the manufacturing methods, test methods, specifications, materials, and other procedures, directions and controls associated with the manufacture and testing of [*] Drug Substance. The Master
Production Records shall also include or incorporate by reference, without limitation, such information as the specifications of raw materials, resins and other consumables to be used in the manufacture of [*] Drug Substance, in process and final
[*] Drug Substance sampling standards, equipment and instrumentation specifications and standard operating procedures, including, without limitation, standard operating procedures for in-process quality control testing and [*] Drug Substance
packaging and aliquoting procedures. 
 1.23 “Monthly Report” means a detailed report which shall set forth
the costs for the Services performed during such calendar month. 
 1.24 “NVDI Indemnitees” means NVDI and its
Affiliates and their respective directors, officers, employees and agents. 
 1.25 “NVDI Innovations” means
all Innovations that NVDI either Controls as of the Effective Date or gains Control of independently of activities under this Agreement, including all Intellectual Property Rights in any of the foregoing. 
  

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 1.26 “NVDI IP” means, to the extent Controlled by NVDI, Intellectual
Property Rights claiming or covering NVDI Innovations or NVDI-owned Project Innovations that, in the absence of a license thereunder, would be infringed or misappropriated by XOMA’s performance of its obligations under this Agreement.

 1.27 “Patents” means (a) United States issued patents, re-examinations, reissues, renewals,
extensions, patent term restorations, and foreign counterparts of each of the foregoing; and (b) pending applications for United States patents and foreign counterparts thereof, whether issued or not. 
 1.28 “Process” means the process and technology used to manufacture and test [*] Drug Substance under this Agreement.

 1.29 “Product” means the finished dosage form of (a) NVDI’s [*] antibody product candidate and/or
(b) NVDI’s HCD122 antibody product candidate, as the context requires. 
 1.30 “Project” means the
product development (including preclinical and production related activities, technology transfer and regulatory and clinical oversight) and manufacturing relationship established by this Agreement. 
 1.31 “Project Innovations” shall mean all Innovations, whether or not patentable, that are conceived in the course and as
a result of the Services. 
 1.32 “Project Team” means a group constituted pursuant to Section 2.4 and
comprised of an appropriate number of representatives of each Party with expertise appropriate to the current stage of the Project. 
 1.33 “Quality Agreement” means that certain Quality Agreement between the Parties dated as of the Effective Date, a copy of which is attached hereto as Appendix B and which is incorporated herein by
this reference. 
 1.34 “Quarterly Invoice” has the meaning set forth in Section 5.2. 

1.35 “Regulatory Approval” means all approvals, product and/or establishment licenses, registrations or authorizations
of all Regulatory Authorities necessary for the manufacture, use, storage, import, export, transport and sale of a biological product in a jurisdiction. 
 1.36 “Regulatory Authority” means a supranational, national or local regulatory agency or other governmental entity with the authority to grant a Regulatory Approval. 
 1.37 “SEC” means the U.S. Securities and Exchange Commission or any successor agency. 
 1.38 “Services” means those services to be performed by XOMA hereunder pursuant to the Work Plan. 
  

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 1.39 “Start Date” means, with respect to a scheduled production run, the
date on which a cell bank vial is scheduled in the Work Plan to be thawed for such production run, provided that such date shall be adjusted to account for any actual delays in the start of such production run. 
 1.40 “Third Party” means any person or entity other than the Parties or their respective Affiliates. 
 1.41 “Third Party Claim” means any Third Party claim, demand, suit, action or proceeding. 
 1.42 “Waste” means any “hazardous substance” and/or “hazardous material” as provided under the
Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), any “hazardous waste” as provided under the Resource Conservation and Recovery Act (RCRA), and/or any other waste material, pollutant and/or contaminant of any
kind including, without limitation, any routine process waste or any by-product arising from any activities conducted pursuant to this Agreement. 
 1.43 “Work Plan” means the Work Plan attached hereto as Appendix A and incorporated herein by this reference (as such Work Plan may be amended from time to time by mutual written agreement of the
Parties). 
 1.44 “XOMA Indemnitees” means XOMA and its Affiliates and their respective directors, officers,
employees and agents. 
 1.45 “XOMA Innovations” means all Innovations that XOMA either Controls as of the
Effective Date or gains Control of independently of activities under this Agreement, including all Intellectual Property Rights in any of the foregoing. 
 1.46 “XOMA IP” means, to the extent Controlled by XOMA, Intellectual Property Rights claiming or covering XOMA Innovations or XOMA-owned Project Innovations that, in the absence of a
license thereunder, would be infringed or misappropriated by the development, manufacture, use or sale of [*] Drug Substance or Product. 
 ARTICLE 2 
 OVERVIEW; GOVERNANCE. 
 2.1 Project; Schedule. XOMA and NVDI are entering into this Agreement with the purpose of having XOMA perform technology transfer and other activities as provided in the Work Plan and produce [*] in
compliance with the Master Production Records at [*] Scale for NVDI. Subject to the terms and conditions of this Agreement, XOMA will carry out the Project in accordance with this Agreement and the Work Plan. XOMA will commit to the Project
appropriate personnel (including without limitation those with expertise in technical development, manufacturing, operations, quality control, quality assurance and regulatory affairs) and conduct the Services at the Facility. NVDI will commit such
of its personnel with appropriate expertise to provide monitoring and, as appropriate, technical consultation for the 

  

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Project. XOMA and NVDI recognize the importance of timely execution of the Project, and accordingly each Party will give priority to the Project, assign
adequate staffing and other resources and use all diligent, commercially reasonable efforts to maximize the potential of achieving successful completion of the Project (including without limitation timely provision of all deliverables in accordance
with the Work Plan), it being understood that the efforts and resources used to date by XOMA satisfy such standard. More specifically: 
 2.1.1. NVDI and XOMA each will give priority to completion, as promptly as reasonably practicable, of the development and implementation of the Work Plan. NVDI has delivered to XOMA certain materials and
information and will deliver to XOMA any further materials and information necessary for XOMA to undertake its responsibilities hereunder, together with relevant details of any hazards and/or characterization relating to the materials delivered or
to be delivered by NVDI to be used, and the storage and use of such materials. With this information, XOMA has initiated and will continue the process development efforts. 
 2.1.2. Upon successful completion of cell banking, process development and preparation for scale-up work, XOMA will produce [*] and
in each case according to the Work Plan. For the avoidance of doubt, the GLP batch under production in November of 2008 shall count as one (1) [*]. In connection with the foregoing, XOMA will also conduct related testing and deliver related
regulatory documentation to NVDI. 
 2.2 Work Plan. 
 2.2.1. Attached hereto as Appendix A is the Work Plan for the technology transfer, manufacturing and other activities as
provided therein in accordance with the terms and conditions of this Agreement. The Parties acknowledge that the initial Work Plan attached hereto at the time of execution of this Agreement is a preliminary version included for guidance but not yet
fully agreed to by the Parties. The Parties agree to use commercially reasonable efforts to finalize such initial Work Plan within [*] following full execution of this Agreement. For the avoidance of doubt, once such initial Work Plan is agreed, it
may be further amended as provided herein. 
 2.2.2. Each Party agrees to perform its obligations under this Agreement
in accordance with the Work Plan and the Quality Agreement. The Project Team members shall review the Work Plan and consult as to its continuing suitability at their meetings pursuant to Section 2.4 and shall propose appropriate revisions
thereto. Any such revised Work Plan or amendment or supplement to the Work Plan shall be in writing and shall become effective only upon execution by both Parties. 
 2.3 Cooperation. Adherence to the schedules set out in the Work Plan is contingent in part on each Party’s reasonably expedient reviews, decisions and approvals of the requisite documents, data and
paths, where such review and approval is necessary, it being understood and agreed that, in order to maintain adherence to the schedules set forth in the Work Plan (taking into consideration the custom and practice of the industry as well as
XOMA’s standard operating procedures), this may require a prompt response from either NVDI or XOMA following a request from the other Party. 
  

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 2.4 Project Team. As of the Effective Date, the Parties have formed a Project Team. Each
Party may replace or supplement its members on the Project Team and will at all times ensure that its current Project Team members have expertise appropriate to the current stage of the Project. Each Party shall use commercially reasonable efforts
to maintain the same Project Team manager throughout the term of this Agreement unless such individual leaves the employ of such Party. The Project Team will be responsible for reviewing progress of the Project under the Work Plan and to discuss and
decide on any potential revisions to the Work Plan. The Project Team shall seek to make decisions by consensus. The Project Team shall hold monthly meetings by teleconference or in person unless otherwise agreed by Project Team members. At each such
meeting, a representative of XOMA shall be responsible for keeping the minutes of such meeting and for circulating a draft of such minutes thereafter for approval by the attendees. 
 2.5 Senior Management Oversight and Dispute Resolution. In the event that the Project Team is unable to reach consensus regarding any
matter, either Party may, by written notice to the other Party, refer such matter to the CEOs of the Parties (or to their respective senior executive designees) for attempted resolution. If a Party refers any matter to the CEOs of the Parties (or
such designees) pursuant to this Section 2.5, then the CEOs of the Parties (or such designees) will attempt in good faith to resolve such matter within [*]. If the matter remains unresolved at the end of such [*] period, the matter may be
submitted for resolution pursuant to Section 11.3. 
 2.6 Master Production Records; Changes to Master Production Records and
Work Plan. 
 2.6.1. NVDI or XOMA may change the Master Production Records or the Work Plan from time to time, with
the review and approval of the other Party in advance as to such changes, and such revised MPRs or Work Plan, as the case may be, shall replace the previous MPRs or Work Plan, as applicable, and shall be deemed to be part of this Agreement. The work
of each Party hereunder will be performed in a professional and workmanlike manner in accordance with the standards of performance in the industry. 
 2.6.2. NVDI shall be responsible for any incremental costs incurred by XOMA as a result of any changes to the MPRs or the Work Plan pursuant to Section 2.6.1. If such changes significantly and adversely
affect the ability of XOMA to manufacture [*] Drug Substance in compliance with the MPRs or require significant modifications to the Facility in order to permit XOMA to manufacture [*] Drug Substance in accordance with the MPRs, then at XOMA’s
election, the Parties will renegotiate the terms of this Agreement so as to permit XOMA to perform its obligations under this Agreement with substantially the same proportional economic benefit for its efforts. 
 2.7 NVDI Representatives. NVDI shall be allowed to have, at its cost, such number of representatives [*] escorted by XOMA personnel, with
reasonable access to the Facility during the manufacture of [*] Drug Substance for the purpose of observing, reporting on, and consulting as to such manufacturing efforts. Prior to receiving such access, NVDI representative(s) will enter into
XOMA’s standard form of confidentiality agreement, which will be commercially reasonable and will permit XOMA personnel to disclose information learned to NVDI. XOMA will reasonably cooperate in enabling (e.g., providing necessary training to
allow for compliance with XOMA procedures) NVDI representatives to carry out their responsibilities and will make adequate temporary desk space and other reasonable resources available to these representatives during the periods they are working at
the Facility. 
  

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 2.8 Other Manufacturing Relationships. The manufacturing relationship set forth in this
Agreement will be non-exclusive. 
 2.9 Additional Equipment. 
 2.9.1. Dedicated Equipment Purchases. The Parties acknowledge that certain equipment has been obtained for the Project and
do not expect that additional equipment will be needed. In the unlikely event that additional equipment is needed, XOMA shall purchase for delivery to the Facility all equipment that is to be dedicated to the Project, as either set forth in the Work
Plan or otherwise approved in writing in advance by NVDI, which approval shall not be unreasonably withheld or delayed (any such additional equipment, the “Dedicated Equipment”). NVDI will reimburse XOMA for the cost of Dedicated
Equipment purchases (including, without limitation, reimbursement for the time and efforts of XOMA personnel, and the costs for delivery, installation and qualification) in accordance with the Work Plan or as otherwise approved in writing in advance
by NVDI and NVDI will have ownership of the Dedicated Equipment. XOMA will operate and maintain the Dedicated Equipment as per approved procedures once such equipment is commissioned and in operation. NVDI shall be liable for repair of all damage
and risk of any loss to Dedicated Equipment unless caused by XOMA’s negligence, willful misconduct or breach of this Agreement. NVDI shall be responsible for any delays to the Work Plan caused in whole or in part by delays in the delivery,
testing, qualification or validation of Dedicated Equipment. If any piece of Dedicated Equipment is not or no longer used for the Project or for other NVDI products, then XOMA at its option will either transfer such Dedicated Equipment to NVDI or
keep such Dedicated Equipment and reimburse NVDI for the depreciated cost thereof. NVDI will pay any costs of the physical transfer of such Dedicated Equipment to NVDI. 
 2.9.2. General Equipment Purchases. It may also be necessary to obtain additional equipment of general utility to XOMA for
the development or scale-up of the Process or the manufacture of [*] Drug Substance. Upon mutual agreement of the Parties that additional equipment is needed for the Project, XOMA will purchase for its own account and for delivery to the Facility
any such additional equipment. XOMA and NVDI will share the cost of purchasing this equipment in a [*] arrangement. However, NVDI’s portion of the purchase cost will be subtracted from future revenues to XOMA for work performed under this
Agreement. XOMA will have ownership of such equipment from the date of purchase. 
 2.10 Handling of Materials; Wastes. At
NVDI’s expense, XOMA or a designated Third Party contractor shall handle, label, package, store, transport and dispose of all Wastes generated through performance of the manufacturing and processing activities hereunder in material compliance
with all federal, state and local laws, rules, and regulations applicable to such handling, labeling, packaging, storage, transport and disposal. Each Party shall promptly notify the other of any health hazards or potential health hazards of which
it is or becomes aware concerning exposure to or handling of the [*] Drug Substance or Wastes. 
  

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 ARTICLE 3 
 TECHNOLOGY TRANSFER AND OTHER ACTIVITIES; PRODUCTION. 
 3.1 Technology Transfer to
XOMA. To the extent not already completed, the Parties will complete as quickly as practicable the transfer from NVDI to XOMA of all relevant materials and information related to the Project. NVDI shall be responsible for obtaining all relevant
technology, other necessary information and assistance from relevant Third Parties, if needed. Throughout the course of the Project, NVDI will make scientific and technical staff available as necessary and reasonably useful to assist XOMA’s
efforts. 
 3.2 Technology Transfer to NVDI; Manufacture. In accordance with the provisions and timelines in the Work Plan,
XOMA will perform technology transfer and other activities as provided therein and manufacturing at [*] and will take such actions and generate such data and documentation as are necessary to meet the MPRs. 
 ARTICLE 4 
 TESTING, DELIVERY AND
REGULATORY MATTERS. 
 4.1 Raw Materials Services; In-Process Testing. XOMA has provided and will continue to provide in
accordance with the Work Plan the ordering, testing, inventorying and releasing services for raw materials used in the manufacture of [*] Drug Substance under this Agreement and in-process testing for continued manufacture of [*] Drug Substance
under this Agreement. XOMA shall obtain raw materials, resins, buffers, consumables and other like materials for manufacture of [*] Drug Substance under this Article 4. XOMA shall not be responsible for delays in the purchase and/or delivery of any
such materials that occur outside of the reasonable control of XOMA and despite XOMA using commercially reasonable efforts to avoid such delays. All such materials shall be invoiced to NVDI by XOMA at one hundred percent (100%) of XOMA’s
cost. 
 4.2 Delivery; Risk of Loss; Storage Fees. 
 4.2.1. On or prior to the applicable date of delivery of [*] Drug Substance to NVDI or its designee, XOMA will deliver such [*]
Drug Substance to NVDI or its designee F.O.B. the Facility, along with samples and copies of Batch production records. XOMA will test each Batch of [*] Drug Substance pursuant to the Master Production Records and will include with each Batch of [*]
Drug Substance a certificate of analysis confirming that such Batch has been tested according to the MPRs. XOMA shall package for shipment each Batch of [*] Drug Substance in accordance with NVDI’s written instructions, and NVDI shall bear all
packaging, shipping and insurance charges. Delivery of [*] Drug Substance by XOMA shall be deemed to have taken place upon the earlier to occur of (i) delivery to a carrier at the Facility or (ii) [*] after release by XOMA
(“Delivery”). [Draft note to XOMA: Has this been resolved?] Title and risk of loss shall transfer to NVDI upon Delivery. XOMA shall accept no liability or responsibility and risk associated with the loss of any Batch of [*]
Drug Substance once this transfer has occurred. XOMA shall retain representative samples of [*] Drug Substance for record keeping, testing and regulatory purposes, including in accordance with applicable laws, rules and regulations. 

  

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XOMA shall bear the risk of loss prior to Delivery, except to the extent such loss is due to circumstances beyond its reasonable control, including without
limitation earthquakes, governmental regulation, fire, flood, labor difficulties, interruption of supply of key raw materials, civil disorder, and acts of God. XOMA shall provide for the storage of any Batch, upon release of such Batch at the
Facility in accordance with guidelines to be agreed to by the Parties at the Facility for up to [*]; provided, that any additional storage beyond such [*] period will be charged to NVDI at XOMA’s customary rates. Unless otherwise agreed
in writing by the Parties, XOMA shall not be required to store any Batch for more than [*] after release of such Batch pursuant to this Section 4.2; provided that, XOMA will notify NVDI in writing before disposing of any Batch, and shall
continue storage of the affected Batch for a reasonable period of time (not to exceed [*]) sufficient to allow NVDI to arrange for alternate disposition of the Batch. NVDI shall pay applicable storage costs for any portion of the Batch remaining.
XOMA shall not be required to deliver any Batch to the carrier until the carrier informs XOMA that it has obtained all appropriate approvals and consents of any Governmental Authority necessary for the transportation or shipment of such Batch.

 4.2.2. XOMA hereby agrees to obtain and carry general liability insurance with coverage in an amount equal to or
greater than the aggregate amount of expected payments under this Agreement. Upon written request, XOMA shall provide NVDI a certificate evidencing such insurance. 
 4.3 Regulatory Matters. Upon NVDI’s decision to file regulatory documentation for Drug Substance or Product with the FDA or other Regulatory Authorities in accordance with the Collaboration
Agreement, and upon NVDI’s request and at NVDI’s expense, XOMA will, in accordance with the applicable regulatory requirements, provide the necessary documentation according to the Work Plan. 
 ARTICLE 5 
 PRICES AND PAYMENT. 

 5.1 Price for Services, Batches and Technology Transfer. In consideration for XOMA’s performance of its obligations
under this Agreement and the Work Plan, and subject to the terms and conditions of this Agreement, NVDI shall pay to XOMA an amount equal to the sum of (a) XOMA’s fully burdened costs, measured, where applicable, by its standard full-time
equivalent (“FTE”) rates as set forth in the Work Plan for the functions providing the Services plus (b) [*] with respect to Services provided on or after the Effective Date and prior to November 1, 2008, ten percent
(10%) or (ii) with respect to Services provided on or after November 1, 2008, twenty percent (20%). The Parties expressly acknowledge that the dollar amounts for expected time and materials set forth in the Work Plan are estimates.
NVDI must approve in writing any deviations of [*] or more from either the aggregate amount in the Work Plan for manufacturing Services or the aggregate amount in the Work Plan for technology transfer Services. 
 5.2 Quarterly Invoices. Upon execution of this Agreement in full, and on a calendar quarterly basis thereafter, XOMA shall send to NVDI an
invoice in an amount equal to the sum of (a) (in case of the first invoice only) XOMA’s fees for (i) the work undertaken on or after the 

  

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Effective Date through such date of full execution, (ii) the actual costs of materials, other than materials procured under the Original Agreement as
such term is defined in the Collaboration Agreement, procured before the Effective Date but used or to be used in connection with the Project after the Effective Date and (iii) the actual costs of materials procured on or after the Effective
Date through such date of full execution and (b) (in the case of the first invoice and every invoice thereafter) the projected fees and expenses of XOMA set forth in the Work Plan with respect to the Services to be performed and Batches to be
Delivered by XOMA in such quarter as adjusted pursuant to Section 5.7 (each a “Quarterly Invoice”). 
 5.3
Equipment Reimbursement. NVDI will reimburse XOMA one hundred percent (100%) of the cost of Dedicated Equipment purchased pursuant to Section 2.9.1 after receipt of each invoice and applicable documentation for such costs.

 5.4 Third Party Costs. Charges for Third Party raw materials, goods and services directly related to work performed under
this Agreement, including the costs of obtaining raw materials, will be reimbursed by NVDI at one hundred percent (100%) of XOMA’s cost. 
 5.5 [*] 
 5.6 Agreed Changes. From time to time, either Party may propose certain changes to the Work Plan
and/or the Process by which [*] Drug Substance is manufactured and tested under this Agreement. Upon receipt of any such request, the Parties will enter into good faith negotiations regarding the assessment of the implications and costs arising from
a change to the Work Plan or Process. Any such changes mutually agreed by the Parties will be set forth in an amendment to the Work Plan attached hereto. No change to the Work Plan and/or the Process will be effective unless and until mutually
agreed in such an amendment. 
 5.7 Monthly Reports and True-Up. Within twenty (20) days from the start of each calendar
month starting with the first full month after the execution of this Agreement in full, XOMA shall send to NVDI a Monthly Report for the previous calendar month. The amounts set forth in each Monthly Report shall be compared to the sums paid to XOMA
under the then most recent Quarterly Invoice. The sum of any differences between XOMA’s actual costs as reflected in the three most recent Monthly Reports and the amount paid by NVDI under the most recent Quarterly Invoice shall be added to the
next Quarterly Invoice. 
 5.8 Payment. NVDI will pay undisputed amounts due XOMA under this Article 5 within [*] after receipt of
each invoice from XOMA; provided, however, that payment pursuant to the first invoice referenced in Section 5.2(a) shall be due within ten (10) days after receipt thereof. All payments to be made under this Agreement shall be made
in United States dollars in the United States to a bank account designated by XOMA. All properly invoiced and undisputed amounts not paid within [*] after receipt of the invoice shall accrue interest at a rate equal to the lesser of [*] or the
highest interest rate permitted under applicable law. 
 5.9 Financial Records. XOMA will keep reasonably complete and accurate
books and accounts of record in connection with the manufacture and use by it of [*] Drug Substance hereunder in sufficient detail to permit accurate determination of whether XOMA has properly invoiced amounts under this Article 5. Such records
shall be maintained for a period of [*] from 

  

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the end of each year in which sales occurred or expenses were incurred. NVDI, at its expense, through a certified public accountant, shall have the right to
access such books and records for the sole purpose of verifying the reports regarding amounts due; such access shall be conducted after reasonable prior notice by NVDI during XOMA’s normal business hours and shall not be more frequent than once
during each calendar year. Such accountant shall execute a reasonable confidentiality agreement with XOMA which shall require such accountant not disclose to NVDI or any other party any confidential information of XOMA (subject to customary
exclusions) except as necessary to determine amounts properly invoiced under this Agreement. If such accountant determines that XOMA’s error resulted in NVDI paying more than properly due in respect of any Batch or calendar quarter, then XOMA
will promptly reimburse such amount. 
 ARTICLE 6 
 TECHNOLOGY AND INFORMATION. 
 6.1 Technology Transfer. 
 6.1.1. Use of Transferred Technology. NVDI shall be entitled to maintain and use any documents delivered to it by XOMA
hereunder within the scope of its license(s) in Section 6.3 for itself, its Affiliates or Third Parties. 
 6.1.2.
Transfer of Process. Upon NVDI’s request and at NVDI’s expense, XOMA will transfer the Process and the Dedicated Equipment (if any) to NVDI in accordance with the Work Plan. If this Agreement is terminated for reason other than
NVDI’s uncured material breach prior to XOMA’s Delivery of [*] then upon NVDI’s request and at NVDI’s expense, XOMA will provide any undelivered [*] Drug Substance and cell line materials to NVDI along with Process specific
documentation generated up until the date of termination. Without limiting the generality of the foregoing, when transferring the Process and Dedicated Equipment, XOMA shall promptly transfer and/or deliver to NVDI (i) any [*] Drug Substance
developed by XOMA, (ii) any raw materials and resins purchased specifically in connection with performance of the Services, (iii) any necessary documentation reasonably related to the Process, (iv) any assays used in connection with
the development of the Process, and (v) any master or working cell bank and cell materials related to the [*] Drug Substance, including documentation requested by Novartis QA for release of those cell banks. Furthermore, XOMA shall provide to
NVDI all reasonably useful data and information in its possession regarding work performed by it pursuant to this Agreement [*]. For purposes of clarity, in the event of termination of this Agreement for reason other than NVDI’s uncured
material breach, it is the intention of the Parties that NVDI be able to recommence the development of the Process itself with as little interruption as reasonably possible, and therefore, that pursuant to this paragraph, NVDI shall have access to
and the right to use any and all information, processes, intellectual property and materials developed by XOMA in the course of the Services reasonably required to do so. In connection with such technology transfer, upon reasonable notice, XOMA will
permit reasonable access to the Facility during normal business hours to employees of NVDI to learn about the relevant process and technology. Prior to obtaining access, such employees will enter into XOMA’s standard form of confidentiality
agreement, which will be commercially reasonable and will permit such employees to disclose information learned to NVDI. While at the Facility such employees shall follow 

  

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XOMA’s policies and procedures and shall use commercially reasonable efforts to avoid interrupting or interfering with the work of other XOMA personnel.
NVDI will pay XOMA for such technology transfer work as provided in Sections 5.1, 5.3 and 5.4. If reasonably requested by NVDI, XOMA personnel will visit Novartis facilities to consult and advise on technology transfer matters at NVDI’s expense
at XOMA’s applicable FTE rates. 
 6.2 Information. 
 6.2.1. Access. NVDI shall have reasonable access during normal business hours to copies of Batch records and any other
documentation relating to manufacture of [*] Drug Substance by XOMA under this Agreement and shall be free, subject to Article 9, to copy and use such documentation as reasonably required for any normal regulatory or business use relating to
[*] Drug Substance or Product. 
 6.2.2. Regulatory Authorities. If XOMA receives notice of any visit or
inspection by any Regulatory Authority of any part of the Facility solely engaged in the manufacture of [*] Drug Substance or otherwise relating solely to the manufacture of [*] Drug Substance, XOMA will promptly notify NVDI of such visit or
inspection and will permit an employee of NVDI to be present and participate in such visit or inspection. XOMA shall provide to NVDI a copy of any report and other written communications received from such Regulatory Authority in connection with
such visit or inspection, and any written communications received from any Regulatory Authority, or sent to any Regulatory Authority by XOMA, relating to [*] Drug Substance or the production of [*] Drug Substance, as soon as practicable and in any
event within [*] after receipt and will to the extent practicable consult with NVDI concerning the response to each such communication. Any additional costs incurred by XOMA as a result of such visit or inspection shall be charged to NVDI at
XOMA’s applicable FTE rates. 
 6.3 Licenses. 
 6.3.1. Development and Manufacturing License to XOMA. Subject to the terms and conditions of this Agreement, NVDI hereby
grants to XOMA a non-exclusive, royalty-free, paid-up, non-transferable (except pursuant to Section 11.7), non-sublicensable license under all NVDI IP to practice NVDI Innovations and NVDI-owned Project Innovations solely to the extent
necessary or useful for performance of XOMA’s obligations under this Agreement. 
 6.3.2. Project Innovations
License to XOMA. Subject to the terms and conditions of this Agreement, NVDI hereby grants to XOMA a non-exclusive, royalty-free, paid-up, non-transferable (except pursuant to Section 11.7), non-sublicensable license under NVDI IP to
practice NVDI-owned Project Innovations at the Facility solely for the purpose of manufacturing products that do not contain any [*] Drug Substance. 
 6.3.3. XOMA Innovations License to NVDI. Subject to the terms and conditions of this Agreement, XOMA hereby grants to NVDI a non-exclusive, worldwide, royalty-free, paid-up, non-transferable (except
pursuant to Section 11.7), non-sublicensable license under XOMA IP to practice XOMA Innovations and XOMA-owned Project Innovations solely to the extent necessary to make, have made, use, import, offer for sale, sell and have sold [*] Drug
Substance or Product. 
  

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 6.4 Ownership of Innovations and Intellectual Property. 
 6.4.1. NVDI Innovations. Subject only to the licenses in Section 6.3, NVDI shall retain all right, title and interest
in and to all NVDI Innovations. 
 6.4.2. XOMA Innovations. Subject only to the licenses in Section 6.3,
XOMA shall retain all right, title and interest in and to all XOMA Innovations. 
 6.4.3. Project Innovations.

 (a) Inventorship of discoveries or inventions included within Project Innovations and authorship of works of authorship
included within Project Innovations shall be determined in accordance with the patent and copyright laws of the United States of America, respectively. 
 (b) Without further payment to XOMA, NVDI shall own all right, title and interest in and to all Project Innovations in and to [*] Drug Substance or Product (other than Intellectual Property Rights in those methods and
processes generally applied to the scale-up, development and/or manufacturing of immunoglobulins, the ownership of which shall follow inventorship determined pursuant to Section 6.4.3(a) above, whether made, conceived, reduced to practice,
authored, or otherwise generated or developed solely by XOMA personnel, solely by NVDI personnel, or jointly by XOMA and NVDI personnel, and all Intellectual Property Rights arising therefrom. XOMA will provide to NVDI a non-exclusive license to use
all Project Innovations owned by XOMA and Intellectual Property Rights arising therefrom for the purpose of manufacturing [*] Drug Substance or Product. 
 6.5 Patenting of Project Innovations. NVDI will have first right, but not the obligation, to control the preparation, filing and prosecution of Patents claiming Project Innovations, other than those
owned solely by XOMA, and of maintenance of Patents issuing thereon. XOMA shall reasonably cooperate with NVDI at NVDI’s cost and shall provide to NVDI whatever assignments and other documents that may be needed in connection therewith. NVDI
will be fully responsible for the costs and expenses of such actions. 
 6.6 Infringement of Patents. 
 6.6.1. Each Party shall promptly notify the other Party of any infringement, misappropriation or other unauthorized use of an
Intellectual Property Right licensed under this Agreement in the field of the development, manufacture, use and/or sale of [*] Drug Substance or Product that comes to such Party’s attention. The notice shall set forth the facts of such
infringement, misappropriation or use in reasonable detail. 
 6.6.2. NVDI shall have the sole right, but not the
obligation, to institute, prosecute, and control, at its expense, any action or proceeding against the Third Party infringer of a Patent claiming a Project Innovation other than those owned solely by XOMA. If NVDI institutes an action against such
infringer, XOMA will give NVDI, at NVDI’s expense, reasonable assistance and authority to control, file, and prosecute the suit as necessary at NVDI’s expense. NVDI shall retain any damages or other monetary awards that it recovers in
pursuing any action under this Section 6.6.2. 
  

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 6.6.3. XOMA shall have the sole right, but not the obligation, to institute,
prosecute, and control, at its expense, any action or proceeding against a Third Party infringer of a Patent claiming a Project Innovation owned solely by XOMA. If XOMA institutes an action against such infringer, NVDI will give XOMA, at XOMA’s
expense, reasonable assistance in connection therewith. XOMA shall retain any damages or other monetary awards that it recovers in pursuing any action under this Section 6.6.3, except that any portion of such damages or awards that are
attributable to lost sales, lost profits or a reasonable royalty with respect to [*] Drug Substance or Product shall belong to NVDI. 
 6.6.4. Each Party has the sole right to enforce any Intellectual Property Rights owned solely by such Party. 
 ARTICLE 7

 REPRESENTATIONS AND WARRANTIES; DISCLAIMER. 
 7.1 [*] Drug Substance Warranties and Remedy. XOMA warrants that for each Batch of [*] Drug Substance delivered pursuant to Section 4.2: (i) each Batch was manufactured and analyzed in
conformance with the Master Production Records; and (ii) XOMA will provide title to such Batch to NVDI free and clear of any encumbrances. NVDI’s sole remedies and XOMA’s entire liability with respect to this warranty are set forth in
Sections 8.2 and 8.6. The warranties in this Section 7.1 are the only warranties made by XOMA with respect to Batches delivered under this Agreement and may only be modified or amended by a written instrument signed by a duly authorized officer
of XOMA and accepted by NVDI. 
 7.2 General Representations and Warranties. Each Party hereby represents and warrants to the
other Party that: 
 7.2.1. Existence and Power. It is a corporation (in the case of NVDI) or a limited
liability company (in the case of XOMA) duly organized, validly existing and in good standing under the laws of the state or country in which it is incorporated or organized, as applicable, and has full corporate or company power and authority and
the legal right to own and operate its property and assets and to carry on its business as it is now being conducted and as contemplated to be conducted in this Agreement, including, without limitation, the right to grant the licenses granted
hereunder. 
 7.2.2. Authority and Binding Agreement. As of the Effective Date, (i) it has the corporate or
company power and authority and the legal right to enter into this Agreement and perform its obligations hereunder; (ii) it has taken all necessary corporate or company action on its part required to authorize the execution and delivery of the
Agreement and the performance of its obligations hereunder; and (iii) the Agreement has been duly executed and delivered on behalf of such Party, and constitutes a legal, valid and binding obligation of such Party and is enforceable against it
in accordance with its terms. 
 7.2.3. Title. As of the Effective Date, it has sufficient legal and/or
beneficial title under its Intellectual Property Rights necessary to perform activities contemplated under this Agreement and to grant the licenses that it is obligated to grant under this Agreement. 
  

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 7.3 Disclaimer. THE REPRESENTATIONS AND WARRANTIES IN SECTION 7.1 AND 7.2 ARE IN LIEU OF
ALL OTHER WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AND EACH PARTY EXPRESSLY DISCLAIMS ANY AND ALL OTHER WARRANTIES, INCLUDING WITHOUT LIMITATION ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT, TITLE, CUSTOM
OR TRADE. 
 ARTICLE 8 
 INDEMNIFICATION; LIMITATION OF LIABILITY. 
 8.1 NVDI Indemnity. NVDI will indemnify, hold harmless and defend
the XOMA Indemnitees from and against any and all Losses resulting from any Third Party Claim, to the extent arising out of (a) any breach of NVDI’s representations, warranties, covenants or other obligations under this Agreement, the
Collaboration Agreement or the Quality Agreement; (b) the use (including, without limitation, in human clinical trials), further manufacture or modification, transport, storage, handling, possession, distribution, marketing, or disposal of the
[*] Drug Substance after delivery by XOMA; (c) any infringement or misappropriation of Third Party Intellectual Property Rights; or (d) any willful misconduct by any NVDI Indemnitee with respect to NVDI’s activities under this
Agreement. 
 8.2 XOMA Indemnity. XOMA agrees to indemnify, hold harmless and defend the NVDI Indemnitees from and against any
and all Losses resulting from any Third Party Claim to the extent arising out of (a) any breach of XOMA’s representations, warranties, covenants or other obligations under this Agreement, the Collaboration Agreement or the Quality
Agreement; (b) XOMA’s transportation, storage, use, handling or disposal of hazardous materials used in or generated by XOMA’s activities under this Agreement (excluding the [*] Drug Substance); (c) any personal injury arising
from performance of this Agreement by XOMA; or (d) any willful misconduct by any XOMA Indemnitee with respect to XOMA’s activities under this Agreement. 
 8.3 Procedure. A Party that intends to claim indemnification under this Article 8 (the “Indemnitee”) shall promptly notify the other Party (the “Indemnitor”) of any
claim, demand, action or other proceeding for which the Indemnitee intends to claim such indemnification. The Indemnitor shall have the right to participate in, and to the extent the Indemnitor so desires, to assume the defense thereof with counsel
selected by the Indemnitor; provided, however, that the Indemnitee shall have the right to retain its own counsel, with the fees and expenses to be paid by the Indemnitor, if representation of the Indemnitee by the counsel retained by the
Indemnitor would be inappropriate due to actual or potential differing interests between the Indemnitee and any other Party represented by such counsel in such proceeding. The indemnity obligations under this Article 8 shall not apply to amounts
paid in settlement of any claim, demand, action or other proceeding if such settlement is effected without the prior express written consent of the Indemnitor, which consent shall not be unreasonably withheld, conditioned or delayed. The failure to
deliver notice to the Indemnitor within a reasonable time after notice of any such claim or demand, or the commencement of any such action or other proceeding, if prejudicial to its ability to defend such claim, demand, action or other proceeding,
shall relieve such Indemnitor of any liability to the Indemnitee under this Article 8 solely to the extent of such 

  

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prejudice, but the omission so to deliver notice to the Indemnitor shall not relieve it of any liability that it may have to the Indemnitee otherwise than
under this Article 8. The Indemnitor may not settle or otherwise consent to an adverse judgment in any such claim, demand, action or other proceeding that imposes any obligation or burden on the Indemnitee without the prior express written consent
of the Indemnitee, which consent shall not be unreasonably withheld, conditioned or delayed. The Indemnitee, its employees and agents shall reasonably cooperate with the Indemnitor and its legal representatives in the investigation and defense of
any claim, demand, action or other proceeding covered by this Article 8. 
 8.4 Separate Defenses. If the Parties cannot agree
as to the application of Sections 8.1 and 8.2 to a particular Loss or Third Party Claim, the Parties may conduct separate defenses of the relevant Third Party Claim. Each Party further reserves the right to claim indemnity from the other Party in
accordance with Sections 8.1 and 8.2 upon resolution of the underlying Third Party Claim, notwithstanding the provisions of Section 8.3 requiring the indemnified Party to tender to the indemnifying Party the ability to defend such Third Party
Claim. 
 8.5 Expenses. Neither Party shall be required to pay over to the other Party amounts called for under this Article 8
until the resolution of the Third Party Claim from which the right to such payment arose, except that litigation costs, fees, and expenses will be paid in arrears on a calendar quarterly basis, subject to reimbursement upon the agreement of the
Parties or a final determination by a court of competent jurisdiction that the indemnity under this Article 8 did not apply to the Third Party Claim giving rise to such costs, fees and expenses. 
 8.6 Limitation of Liability. 
 8.6.1. IN NO EVENT SHALL EITHER PARTY OR ITS RESPECTIVE AFFILIATES BE LIABLE TO THE OTHER PARTY FOR SPECIAL, EXEMPLARY, CONSEQUENTIAL, PUNITIVE, OR OTHER INDIRECT DAMAGES, WHETHER IN CONTRACT, WARRANTY, TORT,
STRICT LIABILITY OR OTHERWISE, EXCEPT FOR A WILLFUL FAILURE BY A PARTY OR ITS SUCCESSOR TO PERFORM IN ACCORDANCE WITH THIS AGREEMENT, INCLUDING WITHOUT LIMITATION FOLLOWING A CHANGE IN CONTROL OF SUCH PARTY. 
 8.6.2. THE LIMITATIONS OF LIABILITY IN SECTION 8.6.1 ARE INTENDED TO LIMIT THE LIABILITY OF THE APPLICABLE PARTY OR PARTIES AND
SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY OR WARRANTY. THE PARTIES HERETO ACKNOWLEDGE THAT THE TERMS OF THIS SECTION 8.6 REFLECT THE ALLOCATION OF RISK SET FORTH IN THIS AGREEMENT AND THAT THE PARTIES WOULD
NOT ENTER INTO THIS AGREEMENT WITHOUT THESE LIMITATIONS OF LIABILITY. THE LIMITATIONS OF LIABILITY OF THIS SECTION 8.6 SHALL NOT APPLY TO THE EXTENT PROHIBITED BY APPLICABLE LAW. 
 8.6.3. Without limiting the foregoing, the Parties acknowledge the risks inherent in biologics manufacturing, and XOMA expressly
disclaims responsibility or liability for such inherent risks. Notwithstanding any other provisions of this Agreement to the contrary, NVDI hereby assumes all liability for failed production lots, except to the extent that, as supported by a
subsequent failed lot investigation, it is finally determined that the failure was a direct result of XOMA’s gross negligence or willful misconduct in its performance of the production run yielding such failed production lot. 
  

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 ARTICLE 9 
 CONFIDENTIALITY. 
 9.1 Confidential Information; Exceptions. Each Party will, and will
use commercially reasonable efforts to ensure that its employees will: (a) maintain all Confidential Information of the other Party in trust and confidence; (b) not disclose any Confidential Information of the other Party to any Third
Party (except that a Party may disclose such Confidential Information to those of its employees, agents, independent contractors, Affiliates, or sublicensees who require such information in order to perform under this Agreement and who are subject
to binding obligations of confidentiality and limited use at least as restrictive as those of this Article 9); (c) not disclose or use any Confidential Information of the other Party for any purposes other than those necessary or permitted for
performance under this Agreement; (d) not use any Confidential Information of the other Party for any purpose or in any manner that would constitute a violation of any applicable governmental laws, rules, regulations, or orders, including
without limitation the export control laws of the United States; and (e) not reproduce any Confidential Information of the other Party in any form except as required to perform in accordance with this Agreement. Each Party will use at least the
same standard of care as it uses to protect its own Confidential Information of a similar nature to prevent unauthorized disclosures or uses of Confidential Information of the other Party, but in any event each Party will use no less than
commercially reasonable care to achieve such objectives. Each Party will promptly notify the other Party upon discovery of any unauthorized use or disclosure of the Confidential Information of the other Party. 
 The Parties agree that the material financial, commercial, scientific and technical terms of the Agreement will be considered Confidential Information of
both Parties. Notwithstanding the foregoing, either Party may disclose such terms to bona fide potential corporate partners, potential investors or merger or acquisition partners, and to commercial lenders, financial underwriters, investment bankers
and legal and financial advisors, provided that all such disclosures shall be made only to such Parties under commercially reasonable obligations of confidentiality no less protective than the obligations set forth in this Article 9.

 9.2 Authorized Disclosure. Notwithstanding any other provision of this Agreement, each Party may disclose Confidential
Information of the other Party: 
 9.2.1. to the extent and to the persons and entities required by an applicable
governmental law, rule, regulation or order; provided, however, that the receiving Party shall first have given prompt notice to the other Party hereto as soon as reasonably practicable to enable it to seek any available exemptions
from or limitations on such disclosure requirement and shall reasonably cooperate, at the other Party’s expense, in such efforts by the other Party; 
 9.2.2. to the extent and to the persons and entities required by rules of the National Association of Securities Dealers; 
  

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 9.2.3. as necessary to file or prosecute patent applications relating to Project
Innovations, prosecute or defend litigation or otherwise establish rights or enforce obligations under this Agreement, but only to the extent that any such disclosure is necessary; 
 9.2.4. to permitted sublicensees, successors and assigns under this Agreement; 
 9.2.5. in the case of NVDI, to Regulatory Authorities, for the purpose of obtaining Regulatory Approval for Product and to Third
Parties for the purpose of contract manufacturing of Product; and 
 9.2.6. to identified Third Parties with the prior,
express, specific, written permission of the disclosing Party. 
 9.3 Publicity. Neither Party will issue any publicity release
or announcement containing information about this Agreement without the advance written consent of the other Party (which consent shall not be unreasonably withheld or delayed), except as such release or announcement may be required by law, in which
case the Party making the release or announcement shall, before making any such release or announcement, afford the other Party a reasonable opportunity to review and comment upon such release or announcement to the extent practicable. 

9.4 Requests for Confidential Treatment. The Parties acknowledge that the rules and regulations promulgated by the SEC may require that
a Party disclose the non-confidential material terms of this Agreement and file a copy hereof with the SEC. The Parties will use commercially reasonable efforts to secure confidential treatment under applicable laws, rules and regulations for
financial, commercial and scientific and technical terms that are trade secrets of either Party, will agree, prior to submission to the SEC of a confidential treatment request (without delaying the timeliness of such submission), upon the terms for
which each Party will seek confidential treatment, and will coordinate in good faith with respect to any such requests and any responses to any SEC comments on or responses to such requests, provided, however, that after using such
efforts each Party will be free to make disclosures that it reasonably believes, based on the advice of outside counsel, are required by applicable law, rule or regulation or that the SEC will otherwise require. 
 9.5 Return of Confidential Information. Upon any expiration or termination of this Agreement, each Party will, upon request of the other
Party, use diligent efforts (including without limitation a diligent search of files and computer storage devices) to return or destroy all Confidential Information of the other Party and all copies, summaries, compilations, extracts or other
derivatives thereof, except to the extent such Confidential Information is necessary to exercise any license or other right surviving termination of this Agreement. Additionally, each Party will be allowed to keep one archival copy, or a required
quantity, of any Confidential Information of the other Party for record keeping purposes only or as required by applicable law, rule or regulation. 
 9.6 Injunctive Relief. The Parties expressly acknowledge and agree that any breach or threatened breach of this Article 9 may cause immediate and irreparable harm to the Party whose Confidential Information is at issue, which
harm may not be adequately compensated by 

  

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damages. Each Party therefore agrees that in the event of such breach or threatened breach and in addition to any remedies available at law, the Party whose
Confidential Information is at issue shall have the right to seek equitable and injunctive relief, without bond, in connection with such a breach or threatened breach. 
 9.7 Survival. The terms of this Article 9 shall survive for [*]. 
 9.8 Collaboration
Agreement. For the avoidance of doubt, all Confidential Information of NVDI received by XOMA after full execution of this Agreement will be deemed governed by the provisions of this Article 9 as opposed to Article 6 of the Collaboration
Agreement. 
 ARTICLE 10 
 TERM AND TERMINATION. 
 10.1 Term. The initial term of this Agreement will commence on the Effective Date and
unless sooner terminated under Sections 10.2 or 10.3 shall expire upon the second anniversary thereof. 
 10.2 Termination by Either Party for Breach. If a Party materially breaches this Agreement, and (i) such breach is of a payment obligation hereunder, then the other Party may terminate this
Agreement upon [*] prior written notice to the first Party specifying such breach if the breaching Party fails to cure the breach within such [*],
(ii) such breach is of an obligation hereunder other than a payment obligation and is reasonably curable within [*], then the other Party may terminate this Agreement upon [*] prior written notice to the first Party specifying such breach if
the breaching Party fails to cure the breach within such [*], or (iii) such breach is of an obligation hereunder other than a payment obligation and is not reasonably curable within [*], the other Party may give the breaching Party written
notice specifying such breach and may then terminate this Agreement upon an additional [*] written notice if the breaching Party either fails to provide by the end of the initial [*] period a reasonable written plan to cure such breach as promptly
as reasonably practicable or fails to carry out such plan diligently and cure such breach. 
 10.3 Termination by NVDI. NVDI
may terminate this Agreement [*]. 
 If NVDI terminates this Agreement pursuant to this Section 10.3, NVDI will reimburse
XOMA within [*] of termination of this Agreement for all appropriate costs under this Agreement (as set forth in Article 5) incurred by XOMA to the date of notice of termination by NVDI for Services performed and for commitments made in accordance
with this Agreement that cannot be canceled, for resources that cannot be reallocated, and for all other costs that 
  

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XOMA incurs in transferring the technology to NVDI at NVDI’s request pursuant to Section 6.1.2. For the avoidance of doubt and without limiting the
foregoing, XOMA’s reimbursable costs referred to in the immediately preceding sentence of this Section 10.3 shall include, without limitation, its fully burdened costs of completing the [*] run. Except as set forth above in this
Section 10.3, XOMA shall refund to NVDI within [*] of termination of this Agreement, any prepaid amounts (including, without limitation, any or all of the amount paid under the most recent Quarterly Invoice) not earned by XOMA prior to the date
of such termination. 
 10.4 Surviving Obligations. Termination or expiration of this Agreement shall not affect any rights or
obligations of either Party which may have accrued up to the effective date of such termination or expiration. The provisions of Sections 5.8, 5.9, 6.1, 6.2.2, 6.3.2, 6.3.3, 6.4, 6.5, 6.6.2, 6.6.3, 6.6.4, 10.3 and 10.4 and Articles 1, 7, 8, 9 and 11
shall survive the termination or expiration of this Agreement. 
 ARTICLE 11 
 MISCELLANEOUS. 
 11.1 Notice. All notices hereunder shall be in
writing and shall be deemed given upon (a) personal delivery, (b) facsimile transmission with electronic confirmation of transmission, if sent during the recipient’s normal business hours, or otherwise on the recipient’s next
normal business day, (c) receipt after delivery by nationally-recognized bonded courier when sent for next business day delivery, or (d) receipt after sending by certified or registered mail, postage prepaid and return receipt requested
personally, to the following addresses or fax numbers of the respective Parties: 
 If to XOMA: 
 XOMA (US) LLC 
 2910 Seventh Street 
 Berkeley, California 94710 
 Attention: Legal Department 
 Fax No.: (510) 649-7571 
 If to NVDI: 
 Novartis Vaccines and Diagnostics, Inc. 
 4650 Horton Street 
 Emeryville, CA 94608 
 Attention: Company Secretary 
 Telephone: (510) 655-8730 
 Fax No.: (510) 654-5366 
 A Party may change its address or fax number for notice by giving notice under this Section 11.1. 
  

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 11.2 Use of Names. Neither Party shall use the name, trade name, trademark, or other
designation of the other Party (including contraction, abbreviation or simulation of any of the foregoing) in advertising, publicity or other promotional activities. Under no circumstances shall either Party state or imply in any promotional
material, publication or other published announcement that the other Party has tested or approved any product. 
 11.3 Formal
Dispute Resolution. 
 11.3.1. Mediation. Solely with respect to any dispute between the Parties (other than
any dispute which arises out of or relates to validity, enforceability, infringement and/or misappropriation of any Intellectual Property Rights), the Parties shall negotiate in good faith and use reasonable efforts to resolve any such dispute. In
the event that the Parties do not fully resolve any such dispute within [*] then either Party may declare an impasse and initiate mediation administered by the CPR in accordance with its mediation procedure. The mediation proceeding shall be
conducted at the location of the Party not originally requesting the resolution of the dispute. The Parties agree that they shall share equally the cost of the mediation filing and hearing fees and the cost of the mediator. Each Party must bear its
own attorney’s fees and associated costs and expenses. For the avoidance of doubt, nothing in connection with such mediation shall be binding on either Party, except for the provisions regarding sharing of costs set forth in this
Section 11.3.1. 
 11.3.2. Arbitration. For disputes not resolved pursuant to Section 11.3.1 within
the time period provided, except (a) disputes relating to intellectual property owned in whole or in part by XOMA or NVDI, or (b) claims for equitable relief, upon [*] written notice, either Party may initiate arbitration by giving notice
to that effect to the other Party and by filing the notice with the AAA in accordance with its Commercial Arbitration Rules. Such dispute shall then be settled by arbitration in California in accordance with the Commercial Arbitration Rules of the
AAA or other rules agreed to by the Parties, by a panel of three (3) neutral arbitrators, who shall be selected by the Parties using the procedures for arbitrator selection of the AAA. 
 (a) The Parties acknowledge that this Agreement evidences a transaction involving interstate commerce. Insofar as it applies, the
United States Arbitration Act shall govern the interpretation of, enforcement of, and proceedings pursuant to the arbitration clause in this Agreement. Except insofar as the United States Arbitration Act applies to such matters, the agreement to
arbitrate set forth in this Section 11.3.2 shall be construed, and the legal relations among the Parties shall be determined in accordance with, the substantive laws of California. 
 (b) The panel shall render its decision and award, including a statement of reasons upon which such award is based, within [*]
after the arbitration hearing. The decision of the panel shall be determined by majority vote among the arbitrators, shall be in writing and shall be binding upon the Parties, final and non-appealable. Judgment upon the award rendered by the panel
may be entered in any court having jurisdiction thereof in accordance with Section 11.4. 
 (c) Except as provided
under the United States Arbitration Act and with respect to the infringement, validity and/or enforceability of patent rights, no action at law or in equity based upon any dispute that is subject to arbitration under this Section 11.3.2 shall
be instituted. 
  

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 (d) All expenses of any arbitration pursuant to this Section 11.3.2,
including fees and expenses of the Parties’ attorneys, fees and expenses of the arbitrators, and fees and expenses of any witness or the cost of any proof produced at the request of the arbitrators, shall be paid by the non-prevailing Party.

 (e) For the purposes of this Section 11.3.2, the Parties agree to accept the jurisdiction of the federal courts
located in the Northern District of California for the purposes of enforcing the agreements reflected in this Section 11.3.2 
 11.3.3. Intellectual Property Disputes. The Parties will submit any dispute arising out of or relating to the validity, enforceability, infringement and/or misappropriation of any Intellectual Property Right that has not been
resolved pursuant to Section 2.5 to a court of competent jurisdiction. 
 11.4 Jurisdiction and Governing Law. For any
disputes not subject to arbitration or resolved by mediation, California law (excluding conflict of laws principles) governs and the Parties are free to institute litigation or seek any other remedy available to them. For the purposes of any
litigation instituted by the parties under this Article 11, the Parties accept the jurisdiction of the state courts geographically located in the Northern District of California or the federal courts within the Northern District of California.

 11.5 Rights in Bankruptcy. All rights and licenses granted under or pursuant to this Agreement are, and shall otherwise be
deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code, licenses of rights to “intellectual property” as defined under Section 101 of the U.S. Bankruptcy Code. The Parties agree that NVDI, as a licensee under
Section 6.3.3 and a transferee under Sections 6.1 and 6.4.3 of such Intellectual Property Rights under this Agreement, and XOMA, as a licensee under Section 6.3.2, each shall retain and may fully exercise all of its rights and elections
under the U.S. Bankruptcy Code. The Parties further agree that, in the event of the commencement of a bankruptcy proceeding by or against a Party under the U.S. Bankruptcy Code, the other Party shall be entitled to a complete duplicate of (or
complete access to, as appropriate) any such intellectual property as to which it is a licensee or transferee and all embodiments of such intellectual property, and same, if not already in its possession, shall be promptly delivered to such other
Party (a) upon any such commencement of a bankruptcy proceeding upon such other Party’s written request therefore, unless the first Party elects to continue to perform all of its obligations under this Agreement, or (b) if not
delivered under (a) above, upon rejection of this Agreement by or on behalf of the first Party upon written request therefor by the other Party. 
 11.6 Waiver. The failure on the part of NVDI or XOMA to exercise or enforce any rights conferred upon it hereunder shall not be deemed to be a waiver of any such rights nor operate to bar the exercise or
enforcement thereof at any time or times hereafter. 
 11.7 Assignment; Binding Effect. Neither Party will assign its rights or
duties under this Agreement to another without the prior express written consent of the other Party, which shall not be unreasonably withheld; provided, however, that either Party may assign this Agreement to (a) its Affiliates,
or (b) a successor by merger, acquisition, or sale of all or substantially all of such Party’s business assets in the field to which this Agreement relates, without the other Party’s consent, provided that such successor will
expressly assume in writing the obligation to perform in accordance with the terms and conditions of this Agreement. 
  

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 Any purported assignment not in compliance with this Section 11.7 shall be void.
This Agreement shall be binding upon each Party’s successors and permitted assignees. 
 11.8 Independent Parties. Neither
Party is an employee or a legal representative of the other Party for any purpose. Neither Party shall have the authority to enter into any contracts in the name of or on behalf of the other Party. 
 11.9 Force Majeure. Neither Party shall be liable to the other for its failure to perform any of its obligations under this Agreement
during any period in which such performance is delayed because rendered impracticable or impossible due to circumstances beyond its reasonable control, including without limitation earthquakes, governmental regulation, fire, flood, labor
difficulties, interruption of supply of key raw materials, civil disorder, and acts of God, provided that the Party experiencing the delay promptly notifies the other Party of the delay and uses and continues to use commercially reasonable
efforts to overcome such delay. 
 11.10 Severability. If any item or provision of this Agreement shall to any extent be
invalid or unenforceable, it shall be severed from this Agreement, and the remainder of this Agreement shall not be affected thereby, and each term and provision of this Agreement shall be valid and shall be enforced to the fullest extent permitted
by law. 
 11.11 Governing Law. This Agreement shall be construed in accordance with the laws of the State of California and/or
the United States of America which are applicable to contracts negotiated, executed and performed within the State of California in the United States of America. In addition, the Parties agree to comply with all applicable laws, rules and
regulations of the State of California and the United States of America, including all export and import laws, and to do nothing to cause XOMA or NVDI to violate any such laws, rules and/or regulations. 
 11.12 Entire Agreement; Modification. This Agreement, including all Appendices referenced herein (including, without limitation, the
Quality Agreement), constitutes the entire agreement and understanding of the Parties and supersedes any prior agreements or understandings relating to the subject matter hereof. Any modification of this Agreement shall be effective only to the
extent it is reduced to writing and signed by both Parties. 
  

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 IN WITNESS WHEREOF, each Party hereto has caused this Agreement to be signed and delivered by its
duly authorized officer or representative as of the Effective Date. 
  

									
	NOVARTIS VACCINES AND DIAGNOSTICS, INC.	 		 	XOMA (US) LLC
					
	By:	 	 	 		 	By:	 	 
		 	Name:	 		 		 	Name: Robert S. Tenerowicz
		 	Title:	 		 		 	Title: Vice President, Operations

 Appendix A 
 [*] 

 Appendix B 
 [*]Second Amendment to Collaboration Agreement

 Exhibit 10.31B 
 SECOND AMENDMENT TO COLLABORATION AGREEMENT 
 This Second Amendment to Collaboration Agreement (this
“Second Amendment”) is effective as of February 9, 2009 (the “Amendment Effective Date”) and is made by and among Takeda Pharmaceutical Company Limited, a Japanese corporation having offices at 1-1, Doshomachi
4-chome, Chuo-ku, Osaka 540-8645, Japan (hereinafter “Takeda”); XOMA (US) LLC, a Delaware limited liability company having offices at 2910 Seventh Street, Berkeley, California 94710, USA (hereinafter “XOMA”) [*]

 BACKGROUND 
 A. XOMA and
Takeda entered into a certain Collaboration Agreement dated as of November 1, 2006 (as amended, including by the First Amendment and, unless otherwise noted after giving effect to this Second Amendment, the “Agreement”).

 B. As part of the Collaboration, Takeda has expressed a desire to obtain (i) expanded rights to XOMA-Controlled intellectual property
rights and (ii) certain materials and related information, hereinafter identified as, inter alia [*] the Discovery Know-How and the Systems. 
 C. XOMA and Takeda wish to amend the Agreement and expand the Collaboration, and to further enable Takeda to work with XOMA, the XOMA Companies wish to license, sublicense, and otherwise make available certain items
of intellectual property and deliver to Takeda and, where specified herein, assign to Takeda (and its Affiliates) all right, title and interest in, the Transferred Materials as specified herein. 
 D. Takeda, on its own behalf and on behalf of its Affiliates, agrees to accept the Transferred Materials under the terms and conditions of this Second
Amendment and, as applicable, the Agreement. 
 E. The XOMA Companies will benefit from the transactions contemplated by this Second
Amendment and the Agreement, and are willing to (i) grant Takeda the expanded rights and licenses contained in this Second Amendment [*] and Takeda agrees to accept such grants [*] 
 F. Terms which are defined in the Agreement shall have the same meanings when used in this Second Amendment, unless a different definition is given
herein. 
 NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements contained herein, each of the XOMA
Companies and Takeda agree as follows: 
 Section 1. Amendments. Pursuant to Section 14.9 of the Agreement, 
 (a) Article 1 (Definitions) of the Agreement is hereby supplemented, amended and modified with the following definitions: 
 1.3 “Affiliate” means, as of the Amendment Effective Date, as to a particular person or entity, any corporation, company,
partnership, joint venture and/or firm that controls, is controlled by or is under common control with such person or entity. For purposes hereof, “control” means (a) in the case of a corporate entity, direct or indirect ownership of
more than fifty percent 

 
(50%) of the stock or shares entitled to vote for the election of directors; (b) in the case of a non-corporate entity, direct or indirect ownership of
more than fifty percent (50%) of the equity interests with the power to direct the management and policies of such non-corporate entity; or (c) possession, directly or indirectly, of the power to direct or cause the direction of the
management or policies of the entity in question (whether through ownership of securities or other ownership interests, by contract or otherwise). 
 1.8A “Applicable Specifications” means (a) with respect to [*] the [*] Materials Specifications, (b) with respect to [*] the specifications determined to be applicable thereto in accordance
with Section 3A.4(a), and (c) with respect to each of the Systems, the specifications corresponding to such System set forth in Schedule 1.8A. 
 1.8B “Article 3A Know-How” means, collectively, the Discovery Know-How, HETM Know-How [*] TES Know-How, and Systems Know-How. 
 1.8C “Article 3A Patent Rights” means, collectively, the Discovery Patent Rights, HETM Patent Rights [*] TES Patent
Rights, and Systems Patent Rights. 
 1.8D “Bacterial Cell Expression Technology” or “BCE
Technology” means (a) the Patent Rights listed on Schedule 1.8D (the “BCE Patent Rights”) [*] BCE Patent Rights shall be deemed to exclude any and all Article 3A Patent Rights, except that the Patent Rights titled [*]
and more particularly described on Schedule 1.29C as of the Amendment Effective Date shall be deemed to be both BCE Patent Rights and Discovery Patent Rights. 
 1.11A “BCE 6A.2 License Term” means that duration of time beginning on the Amendment Effective Date and ending upon the
termination of the license granted under Section 6A.2 pursuant to Section 13.5A. 
 1.11B “BCE 6A.6 License
Term” means that duration of time beginning on the Amendment Effective Date and ending upon the termination of the license granted under Section 6A.6 pursuant to Section 13.5A. 
 1.11C “BCE Patent Rights” has the meaning specified in Section 1.8D hereof. 
 1.17A “Claims” has the meaning specified in Section 12.4A hereof. 
 1.20 “Collaboration Product”, as of the Amendment Effective Date, is amended to add the following sentence: “No
Discovery Product shall be considered a Collaboration Product.” 
 1.24 “Confidential Information”, as
of the Amendment Effective Date, is amended to add the following sentence: “[*] shall not be considered to be Confidential Information of XOMA.” 
 1.27 “Control” or “Controlled” means, as of the Amendment Effective Date, with respect to any (a) material, document, item of information, method, data or other Know-How or
(b) Patent Right or other intellectual property right, the possession (whether by ownership, license, covenant not to sue or otherwise, other than by a license granted pursuant to this Agreement) by a Party or its Affiliates of the ability to
grant to the other Party access, ownership, a license, a sublicense and/or a covenant not to sue or otherwise (as provided herein) under such item or right without violating the terms of any agreement or other arrangement with any Third Party as of
the time such Party would first be required hereunder to grant the other Party such access, ownership, license or sublicense. 
  

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 1.28A “CRO” means any contract research organization [*] engaged in
contract research on behalf of Takeda or a Designated Takeda Affiliate using Transferred Materials and any provider of storage services to Takeda or a Designated Takeda Affiliate with respect to [*] 
 1.28B [*] 
 1.28C [*] 
 1.28D “Designated Takeda Affiliate” means Takeda SF or any other Takeda Affiliate
designated by Takeda to XOMA in accordance with Section 3A.5(a). 
 1.29A “Discovery Know-How” means the
Know-How required to be transferred to Takeda or its Affiliates pursuant to Sections 3A.1 and 3A.4. 
 1.29B [*] 

1.29C “Discovery Patent Rights” means the Patent Rights described on Schedule 1.29C, [*]. Discovery Patent Rights
shall be deemed to exclude any and all BCE Patent Rights, except that the Patent Rights titled [*] and more particularly described on Schedule 1.29C as of the Amendment Effective Date shall be deemed to be both BCE Patent Rights and Discovery Patent
Rights. 
 1.29D [*] 
 1.29E “Discovery Product” means an Antibody, Antibody Product or other therapeutic, prophylactic or diagnostic compound or product [*] and/or the practice of the Discovery Patent Rights or other
exercise of its rights under this Second Amendment. 
 1.29F “Discovery Product Royalty Period” has the
meaning specified in Section 7A.1(d) hereof. 
 1.45 “GAAP” means, as of the Amendment Effective Date,
for each applicable country or territory, the generally accepted accounting principles for such country or territory, as they exist from time to time, consistently applied. 
 1.45A “HETM Know-How” has the meaning specified in Section 1.46 hereof. 
 1.45B “HETM License Term” means that duration of time beginning on the Amendment Effective Date and ending upon the
termination of the license granted under Section 6A.5 pursuant to Section 13.5A. 
 1.45C “HETM Patent
Rights” has the meaning specified in Section 1.46 hereof. 
 1.46 “Human EngineeringTM
Technology”, as of the Amendment Effective Date, is amended to read in its entirety as follows: “‘Human EngineeringTM Technology’ or ‘HETM Technology’ means (a) the materials and Know-How
(the “HETM Know-How”) and Patent Rights (the “HETM Patent Rights”) listed on Schedule 1.46 [*]” 
  

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 1.49A [*] 
 1.57A “Licensed Technology” means the BCE Technology, HETM Technology [*] TES Technology, and Systems. 
 1.61A [*] 
 1.71 “Program Antibody”, as of the Amendment Effective Date, is amended to insert the number “(1)” after the words “provided, however, that” and add the following clause to the end of the last sentence:
“and (2) in no event shall the term “Program Antibody” include any Discovery Product.” 
 1.75
“Program Technology”, as of the Amendment Effective Date, is amended to insert the words “, Licensed Technology and [*]” at the end of the last sentence. 
 1.87A “Royalty-Bearing Discovery Product” means a Royalty-Bearing Discovery Product A or Royalty Bearing Discovery
Product B. 
 1.87B “Royalty-Bearing Discovery Product A” means [*] provided, however, an Antibody Product
that is both a Royalty-Bearing Discovery Product A and Royalty-Bearing Discovery Product B shall be deemed only to be a Royalty Bearing Discovery Product A. 
 1.87C “Royalty-Bearing Discovery Product B” means [*] 
 1.87D “Second Amendment Indemnitee” has the meaning specified in Section 12.4D(b) hereof. 
 1.87E “Second Amendment Indemnitor” has the meaning specified in Section 12.4D(b) hereof. 
 1.87F “Second Amendment Milestone Payment” has the meaning specified in Section 7A.1(c) hereof. 
 1.87G “Software” has the meaning specified in Schedule 6A.3 to the Second Amendment. 
 1.87H “Source Code” has the meaning specified in Schedule 6A.3 to the Second Amendment. 
 1.87I [*] 
 1.88A [*] 
 1.88B [*]. 
 1.89A “Systems” means the informatics and other materials handling systems, associated software applications, related data systems, Patent Rights related to the foregoing (the “Systems Patent
Rights”) and related Know-How (the “Systems Know-How”), each as more particularly described on Schedule 1.89A. For the purposes of the Agreement, Systems shall not include any Third Party software, operating system, data
device or other materials not part of, or actually integrated into, the Systems as delivered to Takeda. 
  

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 1.89B “Systems Know-How” has the meaning specified in Section 1.89A
hereof. 
 1.89C “Systems License Term” means that duration of time beginning on the Amendment Effective Date
and ending upon the termination of the license granted under Section 6A.3 pursuant to Section 13.5A. 
 1.89D
“Systems Patent Rights” has the meaning specified in Section 1.89A hereof. 
 1.89E [*] 
 1.89F [*] 
 1.89G [*] 
 1.90A “Takeda Discovery Patent Rights” means Patent Rights to the extent Controlled by
Takeda that arise out of Takeda’s or a Designated Takeda Affiliate’s use or practice of the Discovery Patent Rights or Licensed Technology. 
 1.90B “Takeda Licensee” means, solely with respect to Discovery Products, any Third Party to whom Takeda or a Designated Takeda Affiliate licenses or grants rights, as part of a bona fide
collaboration, development, commercialization or marketing arrangement, to develop, commercialize, market or distribute any Discovery Product; provided, however, no Third Party shall be a Takeda Licensee if (a) such Third Party is
known by Takeda to be, at the time of determination, either misappropriating the Article 3A Know-How or infringing any of the Article 3A Patent Rights or (b) such Takeda Licensee does not take material economic risk with respect to the
discovery, identification, development or commercialization of such Discovery Product that is the subject of the applicable arrangement; and provided, further, that the foregoing clause (b) shall not prevent Takeda from using any
Third Party as a distributor or selling agent of such Discovery Products. All arrangements with a Takeda Licensee related to Discovery Products shall be pursuant to a written agreement, which will incorporate the applicable provisions of the
Agreement (including without limitation Article 3A) and, where applicable, provide that XOMA and its Affiliates shall be third party beneficiaries thereof. 
 1.90C “Takeda San Francisco” or “Takeda SF” means Takeda San Francisco, Inc., a Delaware corporation having offices at 285 East Grand Avenue, South San Francisco, California 94080,
USA, as of the Amendment Effective Date. 
 1.91A [*] 
 1.92A “TES Know-How” has the meaning specified in Section 1.93C hereof. 
 1.92B “TES License Term” means that duration of time beginning on the Amendment Effective Date and ending upon the
termination of the license granted under Section 6A.4 pursuant to Section 13.5A. 
 1.92C “TES Patent
Rights” has the meaning specified in Section 1.93C hereof. 
 1.93A [*] 
 1.93B “Transferred Materials” means, collectively [*] the Article 3A Know-How, the Systems and any materials actually
transferred to Takeda pursuant to Article 3A. 
  

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 1.93C “Transient Expression System Technology” or “TES
Technology” means (a) the materials and Know-How (the “TES Know-How”) and the Patent Rights (the “TES Patent Rights”), listed on Schedule 1.93C [*] 
 1.95A “XOMA Collaboration Partner” means, solely with respect to a Third Party with whom XOMA licenses or grants rights,
as part of a bona fide collaboration, development, commercialization or marketing arrangement, to develop, commercialize, market or distribute any compound or product; provided, however, no Third Party shall be a Collaboration Partner if
(a) such Third Party is known by XOMA to be, at the time of determination, either misappropriating any Takeda Know-How or infringing any Takeda Discovery Patent Rights or (b) such Collaboration Partner does not take material economic risk
with respect to the discovery, identification, development or commercialization of such compound or product that is the subject of the applicable arrangement; and provided, further, that the foregoing clause (b) shall not prevent
XOMA from using any Third Party as a distributor or selling agent of such compounds or products. 
 1.95B [*] 
 1.95C “[*] Materials Specifications” means the specifications listed on Schedule 1.95B. 
 (b) The Agreement is hereby supplemented by adding the following Article 3A following existing Article 3: 
 ARTICLE 3A 
 XOMA TO TAKEDA
TRANSFERS 
 3A.1 Assignments and Deliverables. 
 (a) XOMA shall on behalf of itself and each XOMA Company, and as evidenced by a Bill of Sale in the form attached as Exhibit A, assign and transfer to Takeda all right, title and interest, free and clear of all
liens, security interests and statutory encumbrances, (i) upon satisfaction by XOMA or waiver by Takeda of the conditions to payment set forth in Section 4 of this Second Amendment, to [*] and (ii) upon satisfaction of either
condition under Sections 3A.4(c)(ii)(x) or (y), to [*] 
 (b) On or before [*] after the Amendment Effective Date, XOMA shall deliver to
Takeda (i) [*] the Discovery Know-How relating thereto, including all materials listed on Schedule 3A.1(a), the HETM Know-How [*] the TES Know-How and the Systems as evidenced by the Delivery and Receipt Acknowledgement in the form
attached as Exhibit B [*] 
 (c) [*] 
 (d) In connection with [*] and Licensed Technology other than BCE Technology, XOMA shall provide Takeda with the corresponding services described in and under the terms of Schedule 3A.1(d). 
 (e) Risk of loss or degradation to and of Transferred Materials shall shift to Takeda upon Takeda’s signed confirmation of receipt of such
materials. 
 (f) [*] 
 3A.2
Grants of Rights in Discovery Know-How and Patent Rights [*] 
  

 -6- 

 (a) [*] XOMA on behalf of itself and each XOMA Company does hereby grant to Takeda, a sole and exclusive,
irrevocable, perpetual and, subject to the applicable restrictions and limitations in this Second Amendment, assignable license and right throughout the Territory to use [*] for any and all purposes including to [*] modify and develop Discovery
Products; and 
 (b) Without limiting the licenses granted under Article 6A, XOMA on behalf of itself and each XOMA Company does hereby grant
to Takeda a non-exclusive, non-transferable, license and right throughout the Territory, without the right to grant sublicenses to: 
 (x) use the Discovery Know-How, and practice the Discovery Patent Rights, in each case at a Takeda or Designated Takeda Affiliate to [*] modify and develop Discovery Products; 
 (y) use the BCE Technology in connection with the use of [*] for any and all purposes including to [*] modify and develop Discovery
Products, but not to [*] any quantities of any compound or product, including an Antibody, in a prokaryote except as reasonably necessary to conduct non-clinical research and development activities using [*] including in vitro and small animal in
vivo research and development, and not for clinical development or for the manufacture for sale of any compound or product, including an Antibody; and 
 (z) to the extent required (if any), use the Discovery Know-How, and practice the Discovery Patent Rights to [*] use, sell, offer to sell, import or export any Discovery Product. 
 Notwithstanding any provision of this Second Amendment to the contrary, the rights and licenses provided for in this Section 3A.2 include, to the extent required, a
right and license to Takeda and its Affiliates, [*] to develop, commercialize, market or distribute [*] or the practice of the other Article 3A Patent Rights. 
 [*] the rights and licenses granted under Articles 3A and 6A in this Second Amendment shall be subject to those limitations, restrictions and obligations of any license or grant of rights from or other agreement with
a Third Party which Third Party limitations, restrictions and obligations are disclosed to Takeda on, or were disclosed to Takeda prior to, the Amendment Effective Date. 
 (c) Each of the XOMA Companies hereby covenants that it shall not initiate or permit any of its Affiliates or any Third Party over whom it has control to initiate or knowingly assist in any way in the initiation or
prosecution of, any action against Takeda, any Takeda Affiliates, its and their employees, directors, officers or agents, any Takeda Licensee or CRO authorized hereunder, including Takeda’s distributors and selling agents, for the
misappropriation, infringement or other violation of any Patent Rights, Know-How or other intellectual property rights directly or indirectly owned or controlled by such XOMA Company at any time that, if owned or controlled by XOMA as of the
Amendment Effective Date [*] would have been within the scope of the licenses granted to Takeda under Section 3A.2(b) or Article 6A. 
 (d) In the event that XOMA is or becomes unable to grant Takeda, or any Designated Takeda Affiliate, any of the rights described under subsections 3A.2(a) or (b), and to the extent that a XOMA Affiliate, including [*] has the necessary
right, power and authority to grant Takeda, or any Designated Takeda Affiliate, such rights, the applicable XOMA Affiliate hereby grants to Takeda, or a Designated Takeda Affiliate, such rights to the extent and under the terms contained herein.

 (e) [*] 
  

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 (f) [*] If as part of the Collaboration, Takeda submits a Proposed Target and specifically requests that
XOMA use [*] to [*] an Antibody and XOMA agrees to do so, then such Proposed Target shall be subject to the XOMA gate-keeping process under Section 2.2.3. 
 (g) None of XOMA or its Affiliates shall (except for the sole benefit of Takeda and its Affiliates) (i) [*] (ii) [*] or (iii) without Takeda’s prior written consent, transfer [*] to any person or
entity (other than Takeda or a Designated Takeda Affiliate), except in conjunction with an assignment of this Agreement under Section 14.2. Notwithstanding the foregoing, XOMA may retain a sufficient quantity of [*] in storage solely for the
purposes of [*] 
 (h) The Parties agree that XOMA may use “blinded” validation and qualification data regarding [*] (so long as
such use does not jeopardize the patentability of any invention claimed by a patent or patent application filed by Takeda) for purposes of demonstrating, presenting or otherwise promoting its technologies, expertise, capabilities and/or applications
of any thereof. XOMA shall submit such blinded data to Takeda for approval at least [*] prior to disclosure, such approval not to be unreasonably withheld or delayed. Once the presentation of such data in a particular form has been approved by
Takeda, no further approval shall be required for subsequent uses of the same data in the same form. 
 (i) If and to the extent that XOMA
owns or has the right to use, sell, license, transfer or otherwise exploit copies of the Article 3A Know-How and the Systems, the Source Code, the Software, the Know-How used by XOMA to construct [*] the Article 3A Patent Rights and/or any other
Patent Right, copyright or other item of intellectual property that covers or claims the Transferred Materials and/or their creation, construction or use, except as expressly set forth in Section 3A.2(g) and elsewhere herein, nothing in this
Second Amendment is intended to limit or prevent XOMA from exercising such ownership or rights. 
 (j) [*] 
 3A.3 Takeda Inventions/Unblocking Covenant Not to Sue. Without limiting or expanding the results under applicable patent law, the parties
acknowledge that Takeda shall be free to seek and obtain patent protection for any inventions of Takeda [*] provided, however, that: 
 (a) Takeda covenants not to sue any XOMA Company under the Takeda Discovery Patent Rights if any XOMA Company uses, for itself or on behalf of a XOMA Collaboration Partner, the Licensed Technology and Discovery Patent
Rights, as such technology and patent rights exist as of the Amendment Effective Date [*] (regardless of location). Takeda covenants not to sue any XOMA Collaboration Partner under the Takeda Discovery Patent Rights if such XOMA Collaboration
Partner, or XOMA on behalf of such XOMA Collaboration Partner, uses the Licensed Technology and Discovery Patent Rights, as such technology and patent rights exist as of the Amendment Effective Date [*] within the scope of XOMA and such XOMA
Collaboration Partner’s collaboration (regardless of location). 
 (b) Takeda covenants not to sue XOMA under the Takeda
Discovery Patent Rights if XOMA uses the Licensed Technology and Discovery Patent Rights, as such technology and patent rights may be improved after the Amendment Effective Date by XOMA [*] 
 (c) Takeda covenants not to sue any XOMA Collaboration Partner under the Takeda Discovery Patent Rights if such XOMA Collaboration
Partner, or XOMA on behalf of such XOMA Collaboration Partner, uses the Licensed Technology and Discovery Patent Rights, as such technology and patent rights may be improved after the Amendment Effective Date by XOMA [*] within the scope of XOMA and
such XOMA Collaboration Partner’s collaboration. 
  

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 None of the foregoing covenants shall extend to any Takeda Discovery Patent Rights to the extent they claim Discovery
Products. 
 3A.4 [*] (a) Takeda may, in its discretion at any time or times on or before [*] order up to [*] of [*]. Prior to placing
such an order, Takeda shall initiate technical discussions with XOMA pursuant to which the Parties will set forth in writing Takeda’s specifications [*] for [*] to be ordered. Such specifications shall identify whether such [*] are to be [*]
and include other elements such as [*]. Upon agreement between the Parties on the technical capability of XOMA or its Affiliates to deliver [*] embodying the specifications [*] Takeda will place a firm purchase order and provide [*] for the
construction of such [*] 
 (b) Once (i) the Parties have agreed on the technical capability of XOMA or its Affiliates to deliver [*]
embodying the specifications (including design elements) referred to in Section 3A.4(a), (ii) XOMA has received [*] and provided written confirmation that they are [*] (iii) Takeda or, as applicable, a Designated Takeda Affiliate has
placed a firm purchase order therefor, and (iv) Takeda has paid the requisite fee pursuant to Section 7A.1(b)(i) or (ii), as applicable, XOMA shall design, construct and have available for delivery to Takeda such [*] meeting the Applicable
Specifications not later than [*] from the last to occur of clauses (i) through (iv). 
 (c) Once a particular set of [*] has been
validated by XOMA but prior to delivery thereof to Takeda or, as applicable, a Designated Takeda Affiliate, XOMA shall provide to Takeda or such Designated Takeda Affiliate such data as is reasonably necessary to determine whether such [*] are in
accordance with the specifications referred to in Section 3A.4(a). Takeda or, as applicable, such Designated Takeda Affiliate shall have [*] following receipt of such data by Takeda or such Designated Takeda Affiliate to determine whether it
agrees that such [*] are in accordance with such specifications and to notify XOMA of such determination, or it shall be deemed to have agreed that the [*] meet the applicable specifications. 
 (i) If, within such [*] day period, Takeda or, as applicable, such Designated Takeda Affiliate notifies XOMA that it does not agree that
such [*] are in accordance with such specifications, XOMA shall promptly provide such data to a mutually acceptable independent Third Party, which shall review such data, under confidentiality, for the sole purpose of making a final and binding
determination as to whether such [*] are in accordance with such specifications. If, following its review, such Third Party determines that such [*] are not in accordance with such specifications, then the third sentence of Section 7A.1(b)
shall apply and XOMA shall promptly destroy such [*]. The [*] period referred to in Section 3A.4(b) shall be tolled for the period between XOMA’s provision of data to the Third Party reviewer and the reviewer’s determination. The
Party against which the Third Party reviewer rules shall bear all costs of the Third Party review. 
 (ii) If either
(x) Takeda or, as applicable, the Designated Takeda Affiliate agrees based on its review of the data that such [*] are in accordance with such specifications or (y) the Third Party reviewer determines that such [*] are in accordance with
such specifications, then XOMA shall, under the same conditions as the transfer and delivery of [*] and the Discovery Know-How relating thereto, assign all right, title and interest in, and deliver [*] and the Discovery Know-How relating thereto, to
Takeda or at Takeda’s election, to a Designated Takeda Affiliate. 
 3A.5 Designation of Additional Affiliates, Transfers to
Additional Sites and Limitations on Use and Modification. 
  

 -9- 

 (a) Takeda shall be permitted to designate to XOMA in writing up to, at any one time, [*] additional
Takeda Affiliates to which the Transferred Materials may be transferred and delivered or through which Takeda wishes to exercise rights or perform obligations under this Agreement; provided, however, that Takeda shall obtain, prior to any such
transfer and delivery, a written acknowledgement, separately enforceable by XOMA as a third-party beneficiary, by such Designated Takeda Affiliate that it shall abide by any and all requirements of the Agreement applicable to the transfer and use of
the Transferred Materials. Upon receipt by XOMA of such written designation and acknowledgement, the Agreement shall be deemed amended to the extent necessary to include such Designated Takeda Affiliate as being entitled to the rights and subject to
the obligations applicable to Takeda hereunder. Takeda shall be free to change such designation to any Takeda Affiliate. Takeda hereby guarantees, without any requirement of written demand by XOMA, the performance of and compliance with the
Agreement by Takeda SF and any other Designated Takeda Affiliate. 
 (b) Subject to Section 3A.5(a), (i) Takeda may move the
Transferred Materials to any other Takeda site (including its Affiliates’) of its selection that is and will remain under its control and has reasonable safeguards designed to protect the Transferred Materials from theft, vandalism or
unauthorized use, and (ii) Takeda may transfer to any CRO that, to Takeda’s knowledge, has reasonable safeguards designed to protect such materials from theft, vandalism, unauthorized use, alteration or modification, the following
materials solely for the corresponding purposes: (x) [*]or (y) [*] and TES Technology specific to such research program and data outputs for the performance of such research program. 
 (c) The parties agree that the transfers provided for by this Article 3A arise out of and are part of the existing collaboration and that the use of the
Transferred Materials and the practice of the Article 3A Patent Rights and any other Patent Rights to which rights are assigned or granted pursuant to this Article 3A may, subject to the applicable provisions of the Agreement, be used by Takeda or,
as applicable, a Designated Takeda Affiliate for any other purpose including the [*] development and subsequent commercial sale of any composition of matter in the Field. Nothing in this subsection shall restrict Takeda from being able to [*].
Notwithstanding the foregoing, the following restrictions shall apply to the Transferred Materials: 
 (i) Takeda shall not,
and shall not permit its Affiliates and CROs to, alter or modify [*]. The Transferred Materials may not be further transferred or disposed of by Takeda to a Third Party (other than to a CRO as provided in Section 3A.5(b)); provided, however,
that [*] 
 (ii) Neither Takeda nor, as applicable, any Designated Takeda Affiliate shall use the Transferred Materials or
practice the Article 3A Patent Rights and any other Patent Rights to which rights are assigned or granted by a XOMA Company pursuant to this Article 3A on behalf of any Third Party [*] or otherwise engage in activities not directly associated with
Takeda’s or Takeda Affiliate’s own internal [*] research and development programs; provided, however, that, so long as the other limitations of this Article 3A are satisfied, Takeda or, as applicable, a Designated Takeda
Affiliate may use the Transferred Materials or practice the Article 3A Patent Rights and any other Patent Rights assigned or granted by a XOMA Company pursuant to this Article 3A with respect to any Discovery Product, Antibody or Antibody Product as
to which Takeda or a Designated Takeda Affiliate has either in-licensed or acquired rights from a Third Party where such in-license or grant of rights is for the exclusive development of such Discovery Product, Antibody or Antibody Product or
variants thereof by Takeda, either alone or in collaboration with such Third Party. 
 3A.6 [*] 
  

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 (c) The Agreement is hereby supplemented by adding the following Article 6A following existing
Article 6: 
 ARTICLE 6A 
 ADDITIONAL LICENSES 
 6A.1 [*] 
 6A.2 [*] 
 6A.3 Informatics Systems License. Subject to the terms of this Second Amendment and
Schedule 6A.3, XOMA hereby grants to Takeda, in the Field in the Territory during the Systems License Term, a non-exclusive right and license, without the right to sublicense, under the Systems to make, have made, use, sell, offer to sell, import
and export any products and (solely to the extent required for exercising the foregoing rights) to reproduce (but not for commercial distribution purposes), modify, publicly perform, and publicly display the Systems and all copyrights therein.
Notwithstanding the foregoing, in no event shall Takeda publicly disseminate without XOMA’s prior written consent non-public Systems source code or created work based on Systems source code, such as screen shots, flow charts, object code and/or
algorithms, with the exception of data produced by execution of the source code. 
 6A.4 TES Technology License. Subject to the terms
of this Second Amendment, XOMA hereby grants to Takeda, in the Field in the Territory during the TES License Term, a perpetual, non-exclusive right and license, without the right to sublicense, under the TES Technology to make, have made, use, sell,
offer to sell, import and export any Antibody Products. 
 6A.5 HETM Technology License. Subject to the terms of this Second
Amendment, XOMA hereby grants to Takeda, in the Field in the Territory during the HETM License Term, a perpetual, non-exclusive right and license, without the right to sublicense, under the HETM Technology to make, have made, use, sell,
offer to sell, import and export any Antibody Products, and (solely to the extent required for exercising the foregoing rights) as to software included therein, to reproduce for Takeda’s purposes, modify, publicly perform, and publicly display
such software and all copyrights therein. Notwithstanding the foregoing, in no event shall Takeda publicly disseminate without XOMA’s prior written consent non-public software source code or created work based on software source code, such as
screen shots, flow charts, object code and/or algorithms, with the exception of data produced by execution of the source code. 
 6A.6 BCE
Technology License for HETM. Subject to the terms of this Second Amendment, XOMA hereby grants to Takeda a non-exclusive right and license during the BCE 6A.6 License Term, without the right to sublicense, to use the BCE Technology solely to
conduct activities related to selection of a lead product candidate from among a group of variant sequences derived using the HETM Technology as provided in, and as limited by, the scope of the license grants in Section 6A.5 but not to make
or have made any quantities of any compound or product, including an Antibody, in a prokaryote except as reasonably necessary to conduct non-clinical research and development activities using [*] including in vitro and small animal in vivo
research and development, and not for clinical development or for the manufacture for sale of any compound or product, including an Antibody. 
 The
grants provided for in this Section 6A include, to the extent required, a right and license to [*] use, sell, offer to sell, import or export any (1) Discovery Product and (2) any Antibody or Antibody Product derived from or arising
out of, directly or indirectly, the use of the other Transferred Materials or the practice of the other Article 3A Patent Rights. 
  

 -11- 

 6A.7 Third Party Licenses. 
 (a) For the avoidance of doubt, the license grants in this Second Amendment are intended to include all Third Party licenses and covenants not to sue
relating to the Licensed Technology or [*] directly or indirectly owned or controlled by XOMA, to the extent such Third Party licenses and covenants not to sue are permitted by their terms to be so included. [*] In the event that XOMA is or becomes
unable to grant Takeda, or any Designated Takeda Affiliate, any of the rights described under this Article 6A, and to the extent that a XOMA Affiliate [*] has the necessary right, power and authority to grant Takeda, or any Designated Takeda
Affiliate, such rights, the applicable XOMA Affiliate hereby grants to Takeda, or a Designated Takeda Affiliate, such rights to the extent and under the terms contained herein. 
 (b) [*] 
 (c) The first sentence of
Section 6.3 of the Agreement is hereby amended to add the words “or Discovery Product” after the words “Collaboration Product.” 
 (d) [*] 
 (d) The Agreement is hereby supplemented by adding the following Article 7A following
existing Article 7: 
 ARTICLE 7A 
 ADDITIONAL FINANCIAL TERMS 
 7A.1 Second Amendment Financial Terms. In further consideration for XOMA’s full and
timely performance under the Agreement, including the transfers and deliveries required, and licenses granted under this Second Amendment: 
 (a) Second Amendment Fee. Subject to satisfaction by XOMA or waiver by Takeda of the conditions to payment set forth in Section 4 of this Second Amendment, Takeda shall have up to [*] after the later of
(i) [*] and (ii) receipt of the materials by Takeda SF pursuant to Section 3A.1 to [*] pay to XOMA a one-time fee equal to $29,000,000. 
 (b) [*] 
 (c) Second Amendment Milestones. 
 (x) Subject to Section 7A.1(c)(y) below, for each Royalty-Bearing Discovery Product and irrespective of the country or other
jurisdiction in which the event described hereafter occurs, Takeda shall pay XOMA a one time payment of (i) [*] (ii) [*] and (iii) [*]. For the avoidance of doubt, in no event shall more than $3,250,000 in Second Amendment Milestone
Payments be owed with respect to any Royalty-Bearing Discovery Product. For the purposes of this Section 7A.1(c) and Sections 1.87B and 1.87C, the references to a “Collaboration Product” in the defined terms “Phase 1 Trial,”
“Phase 3 Trial” and “BLA,” in the Agreement shall be refer to “Royalty-Bearing Discovery Product” instead. 
 (y) [*] 
 (d) Royalty Payments. Subject to the next two sentences and
Section 7A.1(f) below, (a) Takeda shall pay XOMA a royalty of (i) for each Royalty-Bearing Discovery Product A, [*] 

  

 -12- 

 
of Net Sales of such Royalty-Bearing Discovery Product A, and (ii) for each Royalty-Bearing Discovery Product B [*] of Net Sales of such Royalty-Bearing
Discovery Product B; in each case of clause (i) and (ii) on a country-by-country basis until [*]. After expiration of royalty obligations hereunder, the licenses granted hereunder shall be fully paid-up. For the purposes of this
Section 7A.1(d), the references to “Collaboration Product” in the defined terms “First Commercial Sale” and “Net Sales” in the Agreement shall be refer to “Royalty-Bearing Discovery Product” instead. For
the avoidance of doubt, if Takeda sells, assigns or transfers any Royalty-Bearing Discovery Product as part of a larger corporate transaction, or grants the right to sell such Royalty-Bearing Discovery Product, to any person or entity, the purchase
price and any upfront license fees paid by such person or entity for such Royalty-Bearing Discovery Product shall not be included for purposes of calculating Net Sales on such Royalty-Bearing Discovery Product. 
 (e) Royalty and Milestone [*] for Diagnostic Products. For any Royalty-Bearing Discovery Products that are used for diagnostic
purposes, each of the milestones under Section 7A.1(c) and royalties payable under Section 7A.1(d) shall be [*] 
 (f) [*] 
 (g) [*] 
 7A.2 Relation to Collaboration Product Fees. For avoidance of doubt, no amounts shall be owed under Article 7 of this Agreement on any Antibody or Antibody Product that is a Discovery Product; nor shall any
amounts be owed under this Article 7A on any Collaboration Product. Notwithstanding the foregoing, if after submission by Takeda and acceptance by XOMA any Discovery Product shall enter the Collaboration as a Collaboration Product, only the amounts
owed under Article 7 shall be due on such product after such product becomes a Collaboration Product. 
 7A.3 Additional Reporting and
Record-Keeping Obligations. Section 7.5.1 of the Agreement is amended so as to insert the words “or Section 7A.1(c)” after the reference to Section 7.3 in the second line. Section 7.5.2 of the Agreement shall be
amended so as to insert the words “or Section 7A.1(d)” after each reference to Section 7.4 and the words “or Royalty-Bearing Discovery Products, as applicable,” after each reference to “Collaboration
Products.” Takeda shall keep accurate books and accounts in sufficient detail to permit XOMA to verify the accuracy of amounts owed and payable under this Second Amendment. 
 7A.4 Second Amendment Withholding Taxes. For clarity, Section 7.10 shall apply to any payments due under this Article 7A. The Parties further
agree that, as of the Amendment Effective Date, Takeda may be required and, if so, shall withhold a withholding tax, as determined under Law, on the amount due to XOMA under Section 7A.1(a). 
 (e) Section 9.4 is amended by adding to such Section the following sentence: “This Section 9.4 shall apply only to the
Collaboration Agreement without giving effect to the Second Amendment.” 
 (f) Section 9.6 is amended to insert the words
“or any Patent Rights in respect of or arising out of the use of the Transferred Materials” after “Controlled by either Party”. 
 (g) Section 10.1.2 is amended to insert the words “or, in the case of a disclosure by Takeda, Discovery Product” after the words “Collaboration Product” in the penultimate sentence. 
 (h) [*] 
  

 -13- 

 (i) In Article 12 (Indemnity): 
 (i) Section 12.1 is hereby amended to change the title to “Takeda Original Collaboration Agreement Indemnity Obligations”
and add the following after the last sentence: “The indemnification obligation under this Section 12.1 shall apply only to the Collaboration Agreement without giving effect to the Second Amendment.”; 
 (ii) Section 12.2 is hereby amended to change the title to “XOMA Original Collaboration Agreement Indemnity
Obligations” and add the following after the last sentence: “The indemnification obligation under this Section 12.2 shall apply only to the Collaboration Agreement without giving effect to the Second Amendment.”; 

(iii) Section 12.3 is hereby amended to read in its entirety as follows: 
 “12.3 Limitation on Indemnity Obligations. None of the parties, their Affiliates or their respective employees and agents
shall be entitled to the indemnities set forth in Article 12, to the comparative extent the claim, loss, damage or expense for which indemnification is sought was caused by grossly negligent, reckless or fraudulent acts, misrepresentations or acts
of willful misconduct of such party, Affiliate, employee or agent; provided, however, that each of the XOMA Companies agrees, represents and warrants that the use by Takeda or a Designated Takeda Affiliate of [*] in accordance with this
Second Amendment to [*] modify and develop Discovery Products on its own behalf shall not in and of itself constitute a grossly negligent, reckless or fraudulent act, misrepresentation or act of misconduct of Takeda or such Designated
Affiliate.” 
 (iv) Section 12.4 is hereby amended to replace all references to “Article 12” with
“Sections 12.1 or 12.2”. 
 (v) The following new Sections 12.4A through D are added to the Agreement: 

12.4A Takeda Second Amendment Indemnity Obligations. Subject to Section 12.3 hereof, Takeda agrees to defend, indemnify and hold XOMA, its
Affiliates and its and their respective employees, directors, officers and agents harmless from any and all actions, claims, losses, liabilities, damages or expenses (including reasonable experts’ and attorneys’ fees and costs)
(“Claims”) of Third Parties if and to the extent arising as a result of: (a) actual or asserted violations of any applicable law or regulation by Takeda, its sublicensees and their respective Affiliates by virtue of which any
Discovery Products manufactured, distributed or sold by Takeda, its sublicensees or their respective Affiliates pursuant to this Agreement shall be alleged or determined to be adulterated, misbranded, mislabeled or otherwise not in compliance with
any applicable law or regulation; (b) claims for bodily injury, death or tangible property damage attributable to the manufacture, distribution, sale or use of any Discovery Products by Takeda, its sublicensees or their respective Affiliates;
(c) a recall of a Discovery Product manufactured, distributed or sold by Takeda, its sublicensees or their respective Affiliates ordered by a governmental agency; or (d) Takeda’s breach of any of its representations, warranties or
covenants hereunder. 
 12.4B XOMA Second Amendment Indemnity Obligations. Subject to Section 12.3 hereof, each XOMA Company
jointly and severally agrees to defend, indemnify and hold Takeda, its Affiliates and its and their respective employees, directors, officers and agents harmless from all Claims of Third Parties if and to the extent arising as a result of:
(a) actual or asserted violations of any applicable law or regulation by any XOMA Company, its sublicensees and their respective Affiliates by virtue of which any Discovery Products manufactured, distributed or sold by any XOMA Company, its
sublicensees or their respective Affiliates pursuant to this Agreement shall be alleged or determined to be adulterated, misbranded, mislabeled or otherwise not in compliance with any applicable law or regulation; (b) claims for bodily 

  

 -14- 

 
injury, death or tangible property damage attributable to the manufacture, distribution, sale or use of any Discovery Products by any XOMA Company, its or
their sublicensees or their respective Affiliates; (c) a recall of a Discovery Product manufactured, distributed or sold by a XOMA Company, its sublicensees or their respective Affiliates ordered by a governmental agency; or (d) any XOMA
Company’s breach of any of its representations, warranties or covenants hereunder. 
 12.4C [*] 
 12.4D Procedure. 
 (a)
Each party agrees to promptly notify the other party of any [*] received or known by it or its Affiliates. 
 (b) If a Party
or any of its Affiliates or their respective employees, directors, officers, or agents (collectively, the “Second Amendment Indemnitee”) intends to claim indemnification under Sections 12A through D, the Second Amendment Indemnitee
shall promptly notify the other party (the “Second Amendment Indemnitor”) of any Claims, [*] or discovery of fact in respect of which the Second Amendment Indemnitee intends to claim such indemnification. 
 (c) The Second Amendment Indemnitor shall assume the defense of any such Claim, at the sole cost of the Second Amendment Indemnitor, so
long as the Second Amendment Indemnitor diligently pursues the defense of the Claim. 
 (d) If the Second Amendment
Indemnitor assumes defense of a Claim, the Second Amendment Indemnitor shall use counsel selected by the Second Amendment Indemnitor and reasonably acceptable to the Second Amendment Indemnitee; provided, however, that an Second
Amendment Indemnitee shall have the right to retain its own counsel, with the fees and expenses to be paid by the Second Amendment Indemnitor, if representation of such Second Amendment Indemnitee by the counsel retained by the Second Amendment
Indemnitor would be inappropriate due to actual or potential differing interests between such Second Amendment Indemnitee and any other party represented by such counsel in such proceedings. 
 (e) If the Second Amendment Indemnitor assumes defense of a Claim, the Second Amendment Indemnitor shall have the right to settle or
compromise any claims for which it is providing indemnification under this Article 12, provided that the consent of the Second Amendment Indemnitee (which shall not be unreasonably withheld or delayed) shall be required in the event any
such settlement or compromise would adversely affect the interests of the Second Amendment Indemnitee. 
 (f) If the Second
Amendment Indemnitor does not so assume the defense of such Claim, the Second Amendment Indemnitee may conduct such defense with counsel of the Second Amendment Indemnitee’s choice, at Second Amendment Indemnitor’s expense, but may not
settle such Claim without the written consent of the Second Amendment Indemnitor (which shall not be unreasonably withheld or delayed). 
 (g) A Second Amendment Indemnitee’s omission to deliver notice to the Second Amendment Indemnitor will not relieve the Second Amendment Indemnitor of any liability that it may have to any Second Amendment
Indemnitee under this Article 12. If Second Amendment Indemnitor denies that it has an indemnification obligation with respect to any Claim, then the Second Amendment Indemnitee shall be entitled to defend such claim using counsel of its own
selection at Second Amendment Indemnitor’s expense. 
  

 -15- 

 (h) The Second Amendment Indemnitee under this Article 12, its employees and agents,
shall cooperate fully with the Second Amendment Indemnitor and its legal representatives in the investigation of any action, claim or liability covered by this indemnification. The Second Amendment Indemnitor under this Article 12, its
employees and agents, shall cooperate fully with the Second Amendment Indemnitee and its legal representatives in the investigation of any action, claim or liability covered by this indemnification.” 
 (j) Article 13 (Expiration and Termination) of the Agreement is hereby amended to add or modify, as applicable, the following Sections:

 13.1 Term of Agreement is amended to read in its entirety as follows: “Term of Agreement. The term of this Agreement
shall commence on the Effective Date and shall continue until the later of (a) the payment by Takeda and receipt by XOMA of the last amount to be paid by Takeda to XOMA pursuant to the terms hereof, (b) the cessation of all Research and
Development activities with respect to all Program Antibodies, Collaboration Targets and/or Collaboration Products, as applicable, pursuant to the terms hereof, or (c) the termination of all rights and licenses granted under Articles 3A and 6A,
pursuant to the terms hereof.” 
 13.3 Change of Control is amended to add the following sentence at the end: “In the event
of a Change of Control of XOMA, Takeda shall have the right, but not the obligation, to terminate Section 3A.3.” 
 13.5 Effect
of an Event of Default is amended to read in its entirety as follows: “Effect of an Event of Default Not Relating to Second Amendment. In the event of an Event of Default based upon either Party’s material breach of the
provisions of Articles 2 through 10 (to the extent such material breach does not relate to rights or obligations granted by or arising from Articles 3A, 6A or 7A), 11, or Sections 12.1, 12.2 or 12.4 (but not including Articles 3A, 6A, 7A, Sections
12.4A through 12.4D, or Sections 2 through 4 of the Second Amendment), the non-defaulting Party shall have the right, at its option exercisable in its sole discretion, in addition to any other rights or remedies available to it at law or in equity
and subject to the limitations set forth in Sections 3.8, 11.4 and 14.8 hereof, to (a) if the Event of Default directly relates to less than all Collaboration Targets, Program Antibodies and Collaboration Products, by written notice to the
other Party, deem that such Party has abandoned work on the Collaboration Target(s), Program Antibodies and Collaboration Product(s) to which such Event of Default directly relates, or (b) if the Event of Default directly relates to all
Collaboration Targets, Program Antibodies and Collaboration Products, by written notice to the other Party, deem that such Party has terminated Articles 2 through 8 of the Agreement (but not including Articles 3A, 6A or 7A and the Sections
referenced therein and necessary to give effect thereto).” 
 13.5A Effect of an Event of Default Relating to Second Amendment.
(a) If there is an Event of Default based upon Takeda’s material breach of any of the provisions of Articles 3A, 6A, 7A, 9 or 10 (to the extent such material breach relates to rights or obligations granted by or arising from Articles 3A,
6A or 7A), Sections 12.4A through 12.4D, or Sections 2 through 4 of the Second Amendment, then: 
 (i) if the Event of Default
directly relates to less than all [*] and Licensed Technologies, then XOMA shall be entitled to terminate the licenses and rights granted, and XOMA’s executory obligations under, Section 3A.2(b) (but not Section 3A.1 and, to the
extent it relates to Article 3A Know-How delivered to Takeda, Section 3A.2(c)) and/or Article 6A, as applicable, as to those and only as to those [*] or Licensed Technologies, as the case may be, to which such Event of Default directly relates;
provided, (A) that the licenses to the BCE Technology in Sections 3A.2(b)(y), 6A.2 and 6A.6 shall be terminable only in the event and to the extent the licenses in Sections 3A.2(b)(x) (Discovery), 6A.1 (TAE) and 6A.5 (HE), respectively,
are terminable 

  

 -16- 

 
as provided in this Section 13.5A, (B) that Takeda’s covenants under Section 3A.3 as to such licenses and rights, and as to Takeda
Discovery Patent Rights arising from such licenses and rights, shall be terminated concurrently with XOMA’s termination of such licenses and rights, and (C) with respect to any [*] to which such Event of Default directly relates,
XOMA’s termination of Takeda’s rights (including any license under Section 3A.2(a)) to such [*] shall enjoin Takeda from further use of such [*] but shall not require Takeda to destroy or surrender possession of such [*]; or

 (ii) if the Event of Default directly relates to all [*] and Licensed Technologies, then XOMA shall have the right to
terminate the licenses and rights granted, and XOMA’s executory obligations under, Articles 3A (but not Section 3A.1 and, to the extent it relates to Article 3A Know-How delivered to Takeda, Section 3A.2(c)) and 6A in their entirety,
provided, (A) Takeda’s covenants under Section 3A.3 shall be terminated concurrently with XOMA’s termination of such licenses and rights, and (B) with respect to [*] XOMA’s termination of Takeda’s rights
(including any license under Section 3A.2(a)) to [*] shall enjoin Takeda from further use of [*] but shall not require Takeda to destroy or surrender possession of [*]; 
 provided further, that Takeda’s right to [*] use and sell any Discovery Products (and its corresponding payment obligations under Article 7A with respect thereto, subject to the offset and payment
reduction provisions therein), shall survive any termination by XOMA under this Section 13.5A. 
 (b) In the event of an Event of
Default based upon any of the XOMA Company’s material breach of any of the provisions of Articles 3A, 6A, 7A, 9 or 10 (to the extent such material breach relates to rights or obligations granted by or arising from Articles 3A, 6A or 7A),
Sections 12.4A through 12.4D, or Sections 2 through 4 of the Second Amendment, Takeda shall be entitled to [*] terminate any part or all of the provisions of Articles 3A, 6A, 7A, 9 or 10 (to the extent such material breach relates to rights or
obligations granted by or arising from Articles 3A, 6A or 7A), Sections 12.4A through 12.4D, or Sections 2 through 4 of the Second Amendment. 
 (c) Without limiting the other provisions of this Section 13.5A, in the event of an Event of Default based upon Section 13.4(b), Takeda (in the event one of the XOMA Companies is the defaulting Party) or the XOMA Companies (in the
event Takeda is the defaulting Party), as the case may be, shall have the right, at its option exercisable in its sole discretion but subject to Section 5 of this Second Amendment, in addition to any other rights or remedies available to it at
law or in equity, to terminate Section 3A.2(b), and Articles 6A and 7A (and the Sections referenced therein and necessary to give effect thereto). 
 13.7 Takeda’s Rights After Termination for an Event of Default by XOMA is amended so that (i) the words “this Agreement is” in the first sentence are replaced by the words “Articles 2
through 8 of the Agreement (but not including Articles 3A, 6A or 7A and the Sections referenced therein and necessary to give effect thereto) are”, and (ii) any reference to an “Event of Default by XOMA” therein shall be replaced
with “Event of Default by XOMA based upon XOMA’s material breach of Articles 2 through 10 (to the extent such material breach does not relate to rights or obligations granted by or arising from Articles 3A, 6A or 7A), 11, or Sections 12.1,
12.2 or 12.4 (but not including Articles 3A, 6A, 7A, Sections 12.4A through 12.4D, or Sections 2 through 4 of the Second Amendment)”. 
 13.8 Effect of Expiration or Termination of Agreement is amended to read in its entirety as follows: “Effect of Termination Under Section 13.5. The termination of a given R&D Program or Articles 2 through 8 of
the Agreement (but not including Articles 3A, 6A or 7A and the Sections referenced therein and necessary to give effect thereto), as provided in Section 13.5 shall not relieve the Parties of any obligation accruing under such R&D Program or
Articles prior to such termination. In no way limiting 

  

 -17- 

 
the generality of the foregoing, (a) Sections 2.1.3.1, 2.4, 2.6, 4.3, 5.1.2, 6.1.1, and 7.8-7.13 shall survive the termination of Articles 2 through 8
(but not including Articles 3A, 6A or 7A and the Sections referenced therein and necessary to give effect thereto), and (b) in the event of any termination to which either Section 13.6 or 13.7 applies, the provisions of Sections 7.4 and
7.5.2 shall survive such termination.” 
 13.8A Effect of Termination Under Section 13.5A. The termination of Articles 3A,
6A, 7A, 9 or 10 (to the extent such material breach relates to rights or obligations granted by or arising from Articles 3A, 6A or 7A), Sections 12.4A through 12.4D, or Sections 2 through 4 of the Second Amendment, as provided in Section 13.5A
shall not relieve the Parties of any payment obligation accruing under such Articles or Sections prior to such termination. Following termination of the licenses and rights granted and executory obligations under Article 3A or 6A as provided under
Section 13.5A, the recipient of such rights shall thereafter cease using such rights; provided, however, that Takeda’s right to [*] use and sell any Discovery Products (and its corresponding payment obligations under Article
7A with respect thereto, [*] and Sections 3A.2(g), 3A.2(i), 3A.2(j) and 6A.7(b) shall survive any such expiration or termination. 
 13.8B
Effect of Expiration of Agreement. Articles 1 and 9 through 14, Sections 2.4, 2.6, 3A.2(g), 3A.2(i), 3A.2(j), 4.3, 5.1.2, 6.1.1, 6A.7(b) and 7.8-7.13, and Sections 2 and 3 of the Second Amendment shall survive the expiration of this
Agreement. 
 (k) Sections 14.7 (Consent to Jurisdiction) and 14.8 (Dispute Resolution) of the Agreement are hereby amended to add the
XOMA Companies to each reference to “XOMA” or “the Parties” therein. 
 (l) Section 14.8 (Dispute
Resolution) of the Agreement is hereby amended to add Section 14.8.4 as follows: 
 “14.8.4 The application of the
United Nations Convention on Contracts for the International Sale of Goods is expressly excluded.” 
 (m) The Agreement is hereby
amended to replace Schedule 1.46 (Human EngineeringTM Patent Rights) with Schedule 1.46 attached hereto. 
 Section 2.
[*] 
 Section 3. Representations and Warranties; Covenants. 
 (a) As of the Amendment Effective Date and only as to this Second Amendment, Takeda makes the representations and warranties set forth in Sections
11.1.1 through 11.1.6 and 11.1.8 of the Agreement. 
 (b) As of the Amendment Effective Date and only as to this Second Amendment,
each XOMA Company represents and warrants to and covenants with Takeda that: 
  

	(i)	it is duly organized, validly existing and in good standing under the laws of its jurisdiction of formation or incorporation; 

  

	(ii)	it has the corporate and full legal right, authority and power to enter into this Second Amendment, and, as applicable, to extend the rights and licenses granted to Takeda in this
Second Amendment; 

  

 -18- 

	(iii)	it has taken all necessary corporate action to authorize the execution, delivery and performance of this Second Amendment; 

  

	(iv)	upon the execution and delivery of this Second Amendment, this Second Amendment shall constitute a valid and binding obligation of such XOMA Company enforceable in accordance with
its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ and contracting Parties’ rights generally and except as enforceability may be subject
to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law); 

  

	(v)	the execution of this Second Amendment and performance of its obligations under this Second Amendment will not conflict with such XOMA Company’s charter documents or result in
a breach of any agreements, contracts or other arrangements to which it is a party or violate any court or administrative order by which it is bound; 

  

	(vi)	neither it nor any of its employees or consultants working on the collaboration with Takeda have been debarred pursuant to the FDC Act or are currently excluded, debarred, suspended
or otherwise ineligible to participate in Federal health care program and such XOMA Company shall promptly notify Takeda of any change in this warranty and representation; 

  

	(vii)	all license agreements, covenants not to sue and other arrangements that such XOMA Company has with Third Parties relating to intellectual property that XOMA will utilize or
reasonably anticipates utilizing to perform its obligations under this Second Amendment have been disclosed to Takeda in writing; 

  

	(viii)	[*] 

  

	(ix)	[*] 

  

	(x)	[*] 

  

	(xi)	to its reasonable knowledge, during the course of Takeda’s due diligence investigation in connection with entering into this Second Amendment conducted prior to the Amendment
Effective Date, such XOMA Company neither (a) disclosed to Takeda any written material that contained a material misstatement regarding (i) any agreement between such XOMA Company and a Third Party relating to Relevant Second Amendment
Third Party IP, or (ii) such XOMA Company’s ability to perform its obligations under this Second Amendment; nor (b) failed to disclose to Takeda any written material in such XOMA Company’s possession that would reasonably be
expected to be material to (i) any agreement between such XOMA Company and a Third Party relating to Relevant Second Amendment Third Party IP, or (ii) any Relevant Second Amendment Third Party IP; 

  

	(xii)	[*] 

  

	(xiii)	[*] 

  

	(xiv)	[*] 

  

	(xv)	[*] 

  

	(xvi)	[*] 

  

 -19- 

	(xvii)	[*] 

  

	(xviii)	[*] 

  

	(xix)	it is and shall remain in compliance in all material respects with any and all applicable laws and regulations relating to this Second Amendment and its ability to perform its
obligations hereunder; and 

  

	(xx)	[*] 

 Section 4. Conditions to Payment
Obligation. The obligations of Takeda to consummate the transaction contemplated by this Second Amendment and to make any payments to XOMA under this Second Amendment are subject to the satisfaction of the following conditions: 
  

	(i)	as of the Amendment Effective Date, XOMA executing and providing copies to Takeda of any and all executed agreements between a XOMA Company and XOMA granting to XOMA any and all
rights necessary for XOMA to grant its respective rights and licenses contained herein to Takeda; and 

  

	(ii)	as of the Amendment Effective Date, XOMA and Takeda executing a services agreement substantially in the form annexed hereto as Exhibit C. 

 Section 5. Bankruptcy. All rights and licenses granted under this Second Amendment by XOMA to Takeda are, and shall otherwise be deemed to
be, for purposes of Section 365(n) of Title XI of the United States Code (the “Bankruptcy Code”), licenses of rights to “intellectual property” as defined under Section 101(35A) of the Bankruptcy Code. The
Parties further agree that in the event of the commencement of a bankruptcy proceeding by or against one Party under the Bankruptcy Code, Takeda (if such proceeding is commenced against a XOMA Company) or XOMA (if such proceeding is commenced
against Takeda), to the extent permitted under applicable Laws, shall be entitled to complete access to any such intellectual property pertaining to the rights granted in the licenses hereunder of the Party by or against whom a bankruptcy proceeding
has been commenced and all embodiments of such intellectual property. [*] 
 Section 6. Press Release. The Parties hereby agree
to the release of a press release in the form attached hereto as Exhibit D upon full execution of this Second Amendment, and the fact of the execution of this Second Amendment, as well as the terms that are expressly described in such press
release, shall be deemed to be in the public domain. In all other respects, Section 10.4 of the Agreement shall apply to the terms and conditions of this Second Amendment. 
 Section 7. Effect of Amendment. Together with the Agreement (including all Schedules thereto), this Second Amendment constitutes the entire
agreement between the Parties in connection with the subject matter hereof and thereof and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written, of the Parties. Except as
expressly provided for herein, all terms and conditions of the Agreement shall remain in full force and effect. To the extent that the terms of this Second Amendment conflict or are inconsistent with the terms of the Agreement, the terms of this
Second Amendment shall control. 
 Section 8. Governing Law. This Second Amendment shall be governed by and construed in
accordance with the laws of the State of California, without reference to the conflicts of law principles thereof. 
  

 -20- 

 Section 9. Counterparts. This Second Amendment may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 [THE BALANCE OF THIS
PAGE IS INTENTIONALLY LEFT BLANK.] 
  

 -21- 

 IN WITNESS WHEREOF, the undersigned parties have agreed to the foregoing as of the date first written
above. 
 TAKEDA PHARMACEUTICAL COMPANY LIMITED 

					
		
	By:	 	 
		 	Name:	 	Dr. Shigenori Ohkawa
		 	Title:	 	 Member of the Board, General Manager
 of
Pharmaceutical Research Division

  

					
	XOMA (US) LLC
		
	By:	 	 
		 	Name:	 	Fred Kurland
		 	Title:	 	Vice President, Finance and Chief Financial Officer

 [*] 
  

 -22- 

 Schedule 1.8A 
 Systems Specifications 
 [*] 

 Schedule 1.8D 
 XOMA Patent Rights – Bacterial Expression 
  

	A.	Title: Modular Assembly of Antibody Genes, Antibodies Prepared Thereby and Use 

 Inventors:     Robinson, Liu, Horwitz, Wall, Better 
  

	1)	Based on PCT/US86/02269, which is a continuation-in-part of U.S. Application No. 06/793,980 filed November 1, 1985 (abandoned). 

  

					
	 COUNTRY
	  	 APPLICATION NO.
	  	 PATENT NO.

	 Australia
	  	65981/86	  	AU 606,320
	 Denmark
	  	3385/87	  	DK 175680
	 Canada
	  	521,909	  	Abandoned
	 Europe
	  	86906676.1	  	0247091 Abandoned
	 Europe
	  	92115754.1	  	Abandoned
	 Japan
	  	505887/1986	  	Abandoned
	 Taiwan
	  	75105650	  	51922
	 *United States
	  	06/793,980	  	Abandoned
	 *United States
	  	U.S. National Phase of PCT/US86/02269	  	Abandoned

  

	*	Cases abandoned in favor of a continuing application. 

  

	2)	Based on PCT/US88/02514, which corresponds to U.S. Application No. 07/077,528, which is a continuation-in-part PCT/US86/02269 (abandoned), which is a continuation-in-part of
U.S. Application No. 06/793,980 (abandoned). 

  

					
	 COUNTRY
	  	 APPLICATION NO.
	  	 PATENT NO.

	 Australia
	  	23244/88	  	AU 632,462
	 Canada
	  	572,398	  	CA 1,341,235
	 Denmark
	  	192/90	  	DK 174824
	 Denmark
	  	200301155	  	DK 175654
	 Denmark
	  	200301156	  	DK 175581
	 Europe
	  	EP 88907510.7	  	EP 0371998
	 Austria
	  	EP 88907510.7	  	AT 0102249
	 Belgium
	  	EP 88907510.7	  	BE 0371998
	 France
	  	EP 88907510.7	  	FR 0371998
	 Germany
	  	EP 88907510.7	  	DE 3888186.1
	 Italy
	  	EP 88907510.7	  	IT 0371998
	 Luxembourg
	  	EP 88907510.7	  	LU 0371998
	 Netherlands
	  	EP 88907510.7	  	NL 0371998
	 Sweden
	  	EP 88907510.7	  	SE 0371998
	 Switzerland/Liechtenstein
	  	EP 88907510.7	  	CH 0371998
	 United Kingdom
	  	EP 88907510.7	  	GB 0371998
	 Europe
	  	EP 93100041.8	  	EP 0550400
	 Austria
	  	EP 93100041.8	  	AT0140266E
	 Belgium
	  	EP 93100041.8	  	BE 0550400

					
	 COUNTRY
	  	 APPLICATION NO.
	  	 PATENT NO.

	 France
	  	EP 93100041.8	  	FR 0550400
	 Germany
	  	EP 93100041.8	  	DE 3855421.6
	 Italy
	  	EP 93100041.8	  	IT 0550400
	 Luxembourg
	  	EP 93100041.8	  	LU 0550400
	 Netherlands
	  	EP 93100041.8	  	NL 0550400
	 Sweden
	  	EP 93100041.8	  	SE 0550400
	 Switzerland/Liechtenstein
	  	EP 93100041.8	  	CH 0550400
	 United Kingdom
	  	EP 93100041.8	  	GB 0550400
	 Europe
	  	EP 95119798.7	  	EP 0731167
	 Austria
	  	EP 95119798.7	  	AT 0197315
	 Belgium
	  	EP 95119798.7	  	BE 0731167
	 France
	  	EP 95119798.7	  	FR 0731167
	 Germany
	  	EP 95119798.7	  	DE 3856440.8
	 Italy
	  	EP 95119798.7	  	IT 0731167
	 Luxembourg
	  	EP 95119798.7	  	LU 0731167
	 Netherlands
	  	EP 95119798.7	  	NL 0731167
	 Sweden
	  	EP 95119798.7	  	SE 0731167
	 Switzerland/Liechtenstein
	  	EP 95119798.7	  	CH 0731167
	 United Kingdom
	  	EP 95119798.7	  	GB 0731167
	 Japan
	  	506481/88	  	JP 2991720
	 *United States
	  	07/077,528	  	

  

	*	Cases abandoned in favor of a continuing application. 

  

	3)	Based on U.S. Application No. 07/501,092 filed March 29, 1990, which is a continuation-in-part of U.S. Application No. 07/077,528 (Modular Assembly of Antibody Genes,
Antibodies Prepared Thereby and Use; Robinson, Liu, Horwitz, Wall, Better) and of U.S. Application No. 07/142,039 (Novel Plasmid Vector with Pectate Lyase Signal Sequence; Lei, Wilcox). 

  

					
	 COUNTRY
	  	 APPLICATION NO.
	  	 PATENT NO.

	 *United States
	  	07/501,092	  	Abandoned
	 *United States
	  	07/870,404	  	Abandoned
	 *United States
	  	07/987,555	  	Abandoned
	 *United States
	  	08/020,671	  	Abandoned
	 United States
	  	08/235,225	  	US 5,618,920
	 United States
	  	08/299,085	  	US 5,595,898
	 United States
	  	08/450,731	  	US 5,693,493
	 United States
	  	08/466,203	  	US 5,698,417
	 United States
	  	08/467,140	  	US 5,698,435
	 United States
	  	08/472,691	  	US 6,204,023
	 *United States
	  	09/722,315	  	Abandoned
	 *United States
	  	09/722,425	  	Abandoned
	 *United States
	  	10/040,945	  	Abandoned
	 United States
	  	11/582,563	  	Abandoned

  

	*	Cases abandoned in favor of a continuing application. 

  

 -2- 

	B.	Title: Novel Plasmid Vector with Pectate Lyase Signal Sequence (PelB) 

 Inventors:     Lei, Wilcox 
 Based on U.S. Application No. 07/142,039 filed
January 11, 1988 and PCT/US89/00077. 
  

					
	 COUNTRY
	  	 APPLICATION NO.
	  	 PATENT NO.

	 Australia
	  	29377/89	  	AU 627443
	 Canada
	  	587,885	  	CA 1,338,807
	 Europe
	  	EP 89901763.6	  	EP 0396612
	 Austria
	  	EP 89901763.6	  	AT 0140731
	 Belgium
	  	EP 89901763.6	  	BE 0396612
	 France
	  	EP 89901763.6	  	FR 0396612
	 Germany
	  	EP 89901763.6	  	DE 689 26 882
	 Italy
	  	EP 89901763.6	  	IT 0396612
	 Luxembourg
	  	EP 89901763.6	  	LU 0396612
	 Netherlands
	  	EP 89901763.6	  	NL 0396612
	 Sweden
	  	EP 89901763.6	  	SE 0396612
	 Switzerland/Liechtenstein
	  	EP 89901763.6	  	CH 0396612
	 United Kingdom
	  	EP 89901763.6	  	GB 0396612
	 Japan
	  	501661/89	  	JP 2980626
	 *United States
	  	07/142,039	  	Abandoned
	 United States
	  	08/472,696	  	US 5,846,818
	 United States
	  	08/357,234	  	US 5,576,195

  

	*	Cases abandoned in favor of a continuing application. 

  

	C.	Title: Methods and Cells for Expression of Recombinant Protein Products (Ara) 

 Inventor:     Better 
 Based on PCT/US01/08754, which claims priority to U.S.
Provisional Application Nos. 60/192,129 filed March 24, 2000 and 60/192,238 filed March 27, 2000 
  

					
	 COUNTRY
	  	 APPLICATION NO.
	  	 PATENT NO.

	 Australia
	  	2001249265	  	AU 2001249265
	 Canada
	  	2,404,046	  	2,404,046
	 Europe
	  	01922467.4	  	EP 1268823
	 Austria
	  	01922467.4	  	AT 1268823
	 Belgium
	  	01922467.4	  	BE 1268823
	 Cyprus
	  	01922467.4	  	CY 1268823
	 Denmark
	  	01922467.4	  	DK 1268823
	 Finland
	  	01922467.4	  	FI 1268823
	 France
	  	01922467.4	  	FR 1268823
	 Germany
	  	01922467.4	  	DE 60131261.9-08
	 Greece
	  	01922467.4	  	GR 1268823
	 Ireland
	  	01922467.4	  	IE 1268823
	 Italy
	  	01922467.4	  	IT 1268823
	 Luxembourg
	  	01922467.4	  	LU 1268823
	 Monaco
	  	01922467.4	  	MC 1268823

  

 -3- 

					
	 COUNTRY
	  	 APPLICATION NO.
	  	 PATENT NO.

	 Netherlands
	  	01922467.4	  	NL 1268823
	 Portugal
	  	01922467.4	  	PT 1268823
	 Spain
	  	01922467.4	  	ES 1268823
	 Sweden
	  	01922467.4	  	SE 1268823
	 Switzerland
	  	01922467.4	  	CH 1268823
	 Turkey
	  	01922467.4	  	TR 1268823
	 United Kingdom
	  	01922467.4	  	GB 1268823
	 [*]
	  		  	
	 *United States
	  	60/192,129	  	Abandoned
	 *United States
	  	60/192,238	  	Abandoned
	 United States
	  	09/811,933	  	US 6,803,210
	 United States
	  	10/963,414	  	Abandoned

  

	*	Cases abandoned in favor of a continuing application. 

  

	[*]	

  

 -4- 

 Schedule 1.29C 
 Discovery Patent Rights 
 [*] 

 Schedule 1.46 
 Human EngineeringTM Technology 
  

	A.	Materials/Know-How 

 [*] 
  

	B.	Patent Rights 

 Title: Methods and
Materials for Preparation of Modified Antibody Variable Domains and Therapeutic Uses Thereof 
 Inventors:
    Studnicka 
 Based on PCT/US92/10906 [WO 93/11794 filed 12/14/92], which is a continuation-in-part of U.S. Serial
No. 07/808,464 filed December 13, 1991 (abandoned). 
  

					
	 COUNTRY
	  	 SERIAL NO.
	  	 PATENT NO.

	 *United States
	  	07/808,464	  	Abandoned
	 United States
	  	08/107,669	  	5,766,886
	 United States
	  	08/472,788	  	5,770,196
	 United States
	  	08/477,531	  	5,821,123
	 United States
	  	08/082,842	  	5,869,619
	 United States
	  	09/097,980	  	Abandoned
	 United States
	  	09/245,202	  	Abandoned
	 United States
	  	10/325,696	  	Abandoned
	 United States
	  	10/340,189	  	Abandoned
	 United States
	  	11/133,775	  	Abandoned
	 Canada
	  	2,103,887	  	2,103,887
	 [*]
	  		  	
	 Europe
	  	EP 93901238.1	  	EP0571613
	 Austria
	  	EP 93901238.1	  	Abandoned
	 Belgium
	  	EP 93901238.1	  	BE 0571613
	 France
	  	EP 93901238.1	  	FR 0571613
	 Germany
	  	EP 93901238.1	  	DE 69233204
	 Ireland
	  	EP 93901238.1	  	IE 0571613
	 Italy
	  	EP 93901238.1	  	IT 0571613
	 Netherlands
	  	EP 93901238.1	  	NL 0571613
	 Spain
	  	EP 93901238.1	  	ES 2202310
	 Switzerland/Liechtenstein
	  	EP 93901238.1	  	CH 0571613
	 United Kingdom
	  	EP 93901238.1	  	GB 0571613
	 Europe (Divisional)
	  	02021775.8	  	Abandoned
	 Japan
	  	5-511171	  	4,157,160
	 Japan*
	  	2005-6625	  	Abandoned
	 [*]
	  		  	

  

	*	Cases abandoned in favor of a continuing application. 

  

	[*]	

 Schedule 1.89A 
 Systems 
  

	A.	Materials/Know-How 

 [*] 
  

	B.	Patent Rights 

 [*] 
 [*] 

 Schedule 1.93C 
 Transient Expression System Technology 
  

	A.	Materials/Know-How 

 [*] 
  

	B.	Patent Rights 

 Title: Methods and
materials for transient expression of a recombinant protein  
 Inventor: Masahisa Handa, Arnold H. Horwitz, Robyn
Cotter, Eddie Bautista 
 Based on PCT/US2005/043922 (WO 2006/060769 A2) filed 5 December 2005 which corresponds to U.S. Provisional
Application No. 60/633,056 filed 3 December 2004 
  

							
	 Country
	  	 Application #
	  	 Filed
	  	 Status

	 US Prov
	  	60/633,056	  	12/3/2004	  	expired
	 US
	  	11/295,006	  	12/5/2005	  	Abandoned
	 [*]
	  		  		  	

 Schedule 1.95B 
 [*] Materials Specifications 
 [*] 

 Schedule 3A.1(a) 
 [*] Quantities and Additional Information 
 [*] 

 Schedule 3A.1(d) 
 Services Relating to 
 [*] Systems, TES Technology and HETM Technology 
 (i) Services: Upon the request of Takeda, XOMA agrees to perform the services described in Exhibit A to this Schedule 3A.1(d)
(“Services”). XOMA warrants that it has and/or will retain employees and/or consultants with the skills, ability and training necessary to, and that it shall, render the Services in a timely and professional manner consistent with
industry standards in accordance with the terms of this Schedule 3A.1(d) including Exhibit A. Subject to the foregoing, the manner and means by which XOMA chooses to complete the Services are in XOMA’s sole discretion and control. 

(ii) Compensation: In consideration of the Services to be rendered hereunder, Takeda agrees to pay XOMA the compensation set forth in Exhibit A
to this Schedule 3A.1(d). 
 (iii) Expenses: Takeda will reimburse XOMA for all reasonable travel, lodging and other expenses of
XOMA’s employees and consultants rendering the Services documented to the reasonable satisfaction of Takeda. 
 (iv) Other
Services: XOMA (including its employees rendering the Services) may conduct activities with and provide services to, and its consultants rendering the Services may perform services for or be employed by, Third Parties so long as doing so does
not cause XOMA to breach its obligations under this Schedule 3A.1(d) or the Agreement. 
 (v) Term: The Parties shall have no further
rights or obligations with respect to this Schedule 3A.1(d) (other than those accrued prior to such termination) upon the earliest of (i) termination of Article 3A of the Agreement in accordance with its terms, (ii) termination of this
Schedule 3A.1(d) by either Party upon a material breach by the other Party that is not cured within thirty (30) days of such other Party becoming aware of such breach, effective immediately upon written notice to the breaching Party, or
(iii) termination by Takeda of this Schedule 3A.1(d), at its discretion, upon prior written notice to XOMA. 
 (vi) Confidential
Information: Article 10 of the Agreement shall apply to any Confidential Information disclosed, received or created by either party in connection with this Schedule 3A.1(d). 

 EXHIBIT A TO SCHEDULE 3A.1(d) 
 Statement of Work 
  

	I.	DESCRIPTION OF THE SERVICES TO BE PERFORMED: 

  

	 	1.	[*] 

  

	 	2.	[*] 

  

	 	3.	Technical support for the Systems 

  

	 	4.	Technical support for the TES Technology 

  

	 	5.	Technical support for the HETM Technology 

  

	II.	COMPENSATION: 

 [*] 

 Schedule 6A.3 
 Additional Provisions Relating to Software License 
 1. Definitions. For purposes of this Schedule
6A.3, the following terms shall have the respective meanings indicated below: 
 1.1 “Applicable Patent
Rights” shall mean (a) in the case where XOMA is the grantor of rights, claims of patents that (i) are now or hereafter acquired, owned by or assigned to XOMA and (ii) cover subject matter contained in the Source Code or the
Software, and (b) in the case where Takeda is the grantor of rights, claims of patents that (i) are now or hereafter acquired, owned by or assigned to Takeda and (ii) cover subject matter contained in the Covered Code or the Covered
Software. 
 1.2 “Covered Code” shall mean the Source Code and any Modifications to the Source Code made by
Takeda or any person or entity acting on Takeda’s behalf. 
 1.3 “Covered Software” shall mean the
Software and any Modifications to the Software made by Takeda or any person or entity acting on Takeda’s behalf. 
 1.4
“Larger Work” shall mean a work which combines the Covered Code or the Covered Software or portions thereof with code not governed by the terms of this Schedule 6A.3. 
 1.5 “Modifications” shall mean any addition to, deletion from and/or other change to the substance and/or structure of
the Source Code or the Software. When code is released as a series of files, a Modification is (a) any addition to or deletion from the contents of a file containing the Covered Code or the Covered Software and/or (b) any new file or other
representation of computer program statements that contains any part of the Covered Code or the Covered Software. 
 1.6
“Software” shall mean the software, programs and/or computer instruction sets, other than the Source Code, consisting of the versions thereof existing and deployed at XOMA as of the Amendment Effective Date and more fully described
in item A.1 of Schedule 1.46 and item A.1 of Schedule 1.89A and any changed or modified versions thereof that correct significant defects contained in the Software as of the Amendment Effective Date (“Corrected
Software”). Expressly excluded from the definition of Software are (a) other programs, software and/or computer instructions that XOMA derives from such programs, software and/or computer instructions or develops, acquires or obtains
the right to sublicense during the term of this Schedule 6A.3, as well as (b) any changed, modified or enhanced versions of the Software (other than Corrected Software). 
 1.7 “Source Code” shall mean the human readable form of the Software that is suitable for modification, including all
modules it contains, plus any associated data files, interface definition files, scripts used to control compilation and installation of an executable computer instruction. 
 2. Corrected Software; Terms and Conditions. 
 2.1 Corrected Software. If, within the first [*] following the Amendment Effective Date, XOMA develops, licenses or acquires any Corrected Software, XOMA shall promptly provide Takeda with a copy thereof. All
Corrected Software shall be deemed, in accordance with the terms and conditions of this Schedule 6A.3 and without payment of additional consideration, to be included in the definition of Software. 

 2.2 Terms and Conditions. (a) Any reproduction, use or dissemination of any
Covered Code or Covered Software, including without limitation, any Modifications thereof, shall be limited to activities undertaken by Takeda and Designated Takeda Affiliates’ employees who are subject to the confidentiality and intellectual
property provisions of the Agreement. Notwithstanding the foregoing sentence, Takeda and Designated Takeda Affiliates may employ or use Third Parties to make Modifications or use the Covered Code or the Covered Software for purposes reasonably
related to Takeda’s legitimate use as provided for by the Agreement, including this Schedule 6A.3. Takeda shall not grant any such Third Party the right to access the Software or the Source Code unless and until such Third Party executes a
written confidentiality agreement that provides, in addition to the other terms and conditions of such agreement, that (a) the Third Party will abide, for XOMA’s and Takeda’s benefit, by the limitations provided for in this Schedule
6A.3 and the Agreement, (b) all work will be undertaken by such Third Party in a manner so as to establish that any such work is done as a “work made for hire” and (c) such Third Party will assign any patent rights to Takeda such
that they become Applicable Patent Rights. 
 (b) Takeda shall retain and reproduce in all copies of the Covered Code and the Covered
Software (i) the copyright and other proprietary notices and disclaimers of XOMA as they appear in the Source Code and the Software, respectively, (ii) all notices in the Source Code and/or the Software that refer to this Schedule 6A.3,
and (iii) to the extent it does not already exist, the notice provided for below: 
 “Portions Copyright (c) 2005-2009 XOMA
Ltd. All Rights Reserved. 
 “This file contains Source Code or Software or Modifications thereof as defined in and that are subject to a
software license and related terms between Takeda Pharmaceutical Company Limited and XOMA (US) LLC. You may not use this file except in compliance with that license and those terms. Please obtain a copy of the software license and related terms
between Takeda and XOMA by contacting Research Information & Alliances, Strategic Research Planning Department, Pharmaceutical Research Division, of Takeda Pharmaceutical Company Limited, and read it before using this file. 
 “Unless otherwise stated, these materials are distributed on an ‘AS IS’ basis, WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, AND
XOMA HEREBY DISCLAIMS ALL SUCH WARRANTIES, INCLUDING WITHOUT LIMITATION, ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, QUIET ENJOYMENT OR NON-INFRINGEMENT. Please see the software license and related terms between Takeda and
XOMA for the specific language governing rights and limitations under that license and those terms.” 
 (c) For any Modifications,
Takeda must cause the modified files to carry notices stating that Takeda changed the files and the date of such change. 
 (d) Takeda will
use commercially reasonable and diligent efforts to protect XOMA’s proprietary interests in and to the Software, the Source Code and XOMA’s Applicable Patent Rights, including, as appropriate, ensuring that there is password protection of
any computer or network containing any copies of the Covered Code or the Covered Software. In addition, Takeda will prohibit its employees from disclosing to unauthorized Third Parties the Covered Code or the Covered Software except under the
conditions required by this Schedule 6A.3 and the acknowledgement that the Software and the Source Code constitute Confidential Information of XOMA under the Agreement. 
  

 -2- 

 3. Takeda Exclusive Rights. Takeda shall own all Modifications to the Source Code or the Software
created by Takeda pursuant to this Schedule 6A.3 and shall have no obligation to share or provide copies or updates thereof to XOMA. 
 4.
Representations and Warranties Regarding Software and Source Code. 
 4.1 Representations and Warranties. XOMA
represents and warrants that the Source Code and the Software were made by XOMA employees and constitute a “work made for hire,” and were not authored or distributed to Takeda in violation of any agreements between XOMA and any Third
Party, including any “open source” licenses. 
 4.2 Limitations on Warranties and Support. The Covered Code
or the Covered Software may contain in whole or in part pre-release, untested or not fully tested works, may contain errors that could cause failures or loss of data, and may be incomplete or contain inaccuracies. Takeda expressly acknowledges and
agrees that use of the Covered Code or the Covered Software, or any portion thereof, is at Takeda’s sole and entire risk. UNLESS OTHERWISE STATED, THE SOURCE CODE AND THE SOFTWARE ARE PROVIDED “AS IS” AND WITHOUT WARRANTY, UPGRADES OR
SUPPORT OF ANY KIND. UNLESS OTHERWISE STATED, XOMA, ITS LICENSOR(S) AND CONTRIBUTORS (COLLECTIVELY REFERRED TO AS “XOMA” FOR THE PURPOSES OF SECTIONS 4 AND 5) EXPRESSLY DISCLAIM ALL WARRANTIES AND/OR CONDITIONS, EXPRESS OR IMPLIED,
INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES AND/OR CONDITIONS OF MERCHANTABILITY, OF SATISFACTORY QUALITY, OF FITNESS FOR A PARTICULAR PURPOSE, OF ACCURACY, OF QUIET ENJOYMENT AND OF NONINFRINGEMENT OF THIRD PARTY RIGHTS. XOMA DOES NOT
WARRANT AGAINST INTERFERENCE WITH TAKEDA’S ENJOYMENT OF THE COVERED CODE AND THE COVERED SOFTWARE, THAT THE FUNCTIONS CONTAINED IN THE COVERED CODE OR THE COVERED SOFTWARE WILL MEET TAKEDA’S REQUIREMENTS, THAT THE OPERATION OF THE COVERED
CODE OR THE COVERED SOFTWARE WILL BE UNINTERRUPTED OR ERROR-FREE, OR THAT DEFECTS IN THE COVERED CODE OR THE COVERED SOFTWARE WILL BE CORRECTED. NO ORAL OR WRITTEN INFORMATION OR ADVICE GIVEN BY XOMA OR ANY XOMA REPRESENTATIVE SHALL CREATE A
WARRANTY. Takeda acknowledges that neither the Covered Code nor the Covered Software is intended for use in the operation of nuclear facilities, aircraft navigation, communication systems or air traffic control machines, in which case the failure of
the Covered Code or the Covered Software could lead to death, personal injury or severe physical or environmental damage. 
 5.
Termination. The rights granted under this Schedule will terminate upon termination of the Systems License Term. 
 6. Government
End Users. Each of the Covered Code and the Covered Software is a “commercial item” as defined in FAR 2.101. Government software and technical data rights in the Covered Code or the Covered Software include only those rights
customarily provided to the public as defined in this Schedule 6A.3. This customary commercial license in technical data and software is provided in accordance with FAR 12.211 (Technical Data) and 12.212 (Computer Software) and, for Department of
Defense purchases, DFAR 252.227-7015 (Technical Data — Commercial Items) and 227.7202-3 (Rights in Commercial Computer Software or Computer Software Documentation). Accordingly, all U.S. Government End Users acquire the Covered Code or the
Covered Software with only those rights set forth herein. 
  

 -3-

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