Document:

exv10w60

 

EXHIBIT 10.60

SECOND MODIFICATION AGREEMENT

          This Second Modification Agreement (“Agreement”) is made as of April 28, 2006, by and between
VODAVI COMMUNICATIONS SYSTEMS, INC., an Arizona corporation (“Borrower”) and COMERICA BANK, a
Michigan banking corporation, successor-by-merger to Comerica Bank-California, a California banking
corporation (“Lender”).

RECITALS

               A. Lender has extended to Borrower various credits, from time to time, including without
limitation, a credit on a revolving basis (“Loan”) in the original maximum principal amount of
$5,000,000.00, pursuant to that certain Credit Agreement dated April 10, 2003 (as modified, the
“Loan Agreement”). The Loan is evidenced by that certain Promissory Note (“Note”) dated April 10,
2003, in the original principal sum of $5,000,000.00, executed by Borrower in favor of Lender. The
unpaid principal balance of the Loan as of the date hereof is $0.00. Capitalized terms
not otherwise defined herein shall have the same meaning as set forth in the Loan Agreement.

               B. The Loan is secured by the Collateral pursuant to that certain Security Agreement
(“Security Agreement”) dated April 10, 2003 executed by Borrower in favor of Lender. The Security
Agreement and all other agreements, documents and instruments relating to the Collateral and
otherwise securing the Loan are referred to individually and collectively as the “Security
Documents”.

               C. Lender and Borrower have executed and delivered previously that certain Modification to
Credit Agreement dated February 15, 2005 (“First Modification”), modifying the terms of the Loan,
the Loan Agreement, and/or the Security Documents. The Loan Agreement, the Note, the Security
Documents, and all other agreements, documents, and instruments evidencing, securing, or otherwise
relating to the Loan, as modified in the Modification, are sometimes referred to individually and
collectively as the “Loan Documents”. Hereinafter, “Loan Agreement”, “Note” and “Security
Documents” shall mean such documents as modified in the Modification.

               D. Borrower has requested that Lender further modify the Loan Documents as set forth in this
Agreement. Lender is willing to so modify the Loan Documents, subject to the terms and conditions
contained in this Agreement.

AGREEMENT

For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
Borrower and Lender agree as follows:

1. ACCURACY OF RECITALS.

Borrower acknowledges the accuracy of the Recitals.

 

 

     2. MODIFICATION OF LOAN DOCUMENTS.

          2.1 The Loan Documents are modified as follows:

               2.1.1 The definition of “RLC Maturity Date” (as defined in Section 1.1 of the Loan
Agreement and in the last paragraph of the first page of the Note) is hereby deleted in its
entirety and is hereby replaced by the following: “RLC Maturity Date” means May 31, 2008.” On
the RLC Maturity Date Borrower shall pay to Lender the unpaid principal, accrued and unpaid
interest, and all other amounts payable by Borrower under the Loan Documents as modified
herein.

3. RATIFICATION OF LOAN DOCUMENTS AND COLLATERAL.

The Loan Documents are ratified and affirmed by Borrower and shall remain in full force and effect
as modified herein. Any property or rights to or interests in property granted as security in the
Loan Documents shall remain as security for the Loan and the obligations of Borrower in the Loan
Documents.

4. BORROWER REPRESENTATIONS AND WARRANTIES.

Borrower represents and warrants to Lender:

          4.1 To the best of Borrower’s knowledge, as of the date hereof, no Event of Default under any
of the Loan Documents as modified herein has occurred and is continuing.

          4.2 There has been no material adverse change in the financial condition of Borrower or any
other person whose financial statement has been delivered to Lender pursuant to the Loan Agreement
from the most recent financial statement received by Lender.

          4.3 Each and all representations and warranties of Borrower in the Loan Documents are accurate
on the date hereof.

          4.4 Borrower has no claims, counterclaims, defenses, or set-offs with respect to the Loan or
the Loan Documents as modified herein.

          4.5 The Loan Documents as modified herein are the legal, valid, and binding obligation of
Borrower, enforceable against Borrower in accordance with their terms.

          4.6 Borrower has the requisite power and authority to execute and deliver this Agreement and
to perform the Loan Documents as modified herein. The execution and delivery of this Agreement and
the performance of the Loan Documents as modified herein have been duly authorized by all requisite
action by or on behalf of Borrower. This Agreement has been duly executed and delivered on behalf
of Borrower.

- 2 -

 

5. BORROWER COVENANTS.

Borrower covenants with Lender:

          5.1 Borrower shall execute, deliver, and provide to Lender such additional agreements,
documents, and instruments as reasonably required by Lender to effectuate the intent of this
Agreement.

          5.2 Borrower fully, finally, and forever releases and discharges Lender and its successors,
assigns, directors, officers, employees, agents, and representatives from any and all actions,
causes of action, claims, debts, demands, liabilities, obligations, and suits, of whatever kind or
nature, in law or equity, that Borrower has, whether known or unknown, (i) in respect of the Loan,
the Loan Documents, or the actions or omissions of Lender in respect of the Loan or the Loan
Documents, and (ii) arising from events occurring prior to the date of this Agreement.

          5.3 Contemporaneously with the execution and delivery of this Agreement, Borrower has paid to
Lender:

          5.3.1 All accrued and unpaid interest and any principal amounts due and payable by
Borrower under the Loan Documents as of the date hereof.

          5.3.2 All of the internal and external costs and expenses incurred by Lender in connection
with this Agreement (including, without limitation, outside attorneys’ fees).

6. EXECUTION AND DELIVERY OF AGREEMENT BY LENDER.

Lender shall not be bound by this Agreement until each of the following shall have occurred: (i)
Lender has executed and delivered this Agreement, (ii) Borrower shall have executed all
instruments, documents and financing statements as required by Lender to effectuate the terms and
conditions of this Agreement, and (iii) Borrower has performed all of the obligations of Borrower
under this Agreement to be performed contemporaneously with the execution and delivery of this
Agreement.

7. ENTIRE AGREEMENT, CHANGE, DISCHARGE, TERMINATION, OR WAIVER.

The Loan Documents as modified herein contain the entire understanding and agreement of Borrower
and Lender in respect of the Loan and supersede all prior representations, warranties, agreements,
arrangements, and understandings. No provision of the Loan Documents as modified herein may be
changed, discharged, supplemented, terminated, or waived except in a writing signed by Lender and
Borrower.

8. BINDING EFFECT.

The Loan Documents as modified herein shall be binding upon, and inure to the benefit of, Borrower
and Lender and their respective successors and assigns.

- 3 -

 

9. CHOICE OF LAW.

This Agreement shall be governed by and construed in accordance with the laws of the State of
Arizona, without giving effect to conflicts of law principles.

10. COUNTERPART EXECUTION.

This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original and all of which together shall constitute one and the same document. Signature pages may
be detached from the counterparts and attached to a single copy of this Agreement to physically
form one document.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above
stated.

- 4 -

 

	 	 	 	 	 	 	 	 	 	 	 
	COMERICA BANK	 	 	 	VODAVI COMMUNICATIONS SYSTEMS, INC.,	 	 
	 	 	 	 	 	 	An Arizona corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ David A. Husband
	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	Its:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Its: Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	LENDER	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	BORROWER	 	 

- 5 -

 

GUARANTOR’S CONSENT, RATIFICATION AND REAFFIRMATION

          Vodavi Technology, Inc., a Delaware corporation (“Guarantor”), hereby consents to the terms,
conditions and provisions of the foregoing Second Modification Agreement dated April 28, 2006, and
the transactions contemplated by it.

          Guarantor hereby ratifies and reaffirms the full force and effectiveness of its Continuing
Guarantee dated April 10, 2003, as amended from time to time, with respect to the Loan
(“Guaranty”), as well as its acknowledgment that its obligations under the Guaranty are separate
and distinct from those of Borrower under the Loan.

          Guarantor fully, finally and forever releases and discharges Lender and its successors,
assigns, directors, officers, employees, agents and representatives from any and all actions,
causes of action, claims, debts, demands, liabilities, obligations and suits, of whatever kind or
nature, in law or equity, that Borrower has, whether known or unknown: (i) in respect of the Loan,
the Loan Documents, or the actions or omissions of Lender in respect of the Loan or the Loan
Documents; and (ii) arising from events occurring prior to the date hereof.

          Guarantor represents and warrants that there has been no material adverse change in the
financial condition of Guarantor from the most recent financial statement received by Lender.

          Guarantor represents and warrants that Guarantor has no claims, counterclaims, defenses, or
set-offs with respect to the enforcement against Guarantor of the Guaranty.

          Guarantor represents and warrants that the Loan Documents, as modified, are the legal, valid
and binding obligation of Borrower, enforceable against Borrower in accordance with their terms.

          Dated this 28th day of April, 2006.

VODAVI TECHNOLOGY, INC.,

A Delaware corporation

	 	 	 
	By: /s/ David A. Husband

	 	 
	 
	 	 
	 
	 	 
	Its: Chief Financial Officer
	 	 

- 6 -exv10w2

 

Exhibit 10.2

NOTE: THIS DOCUMENT IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST PURSUANT TO RULE 24B-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934. PORTIONS OF THIS DOCUMENT FOR WHICH CONFIDENTIAL
TREATMENT
HAS BEEN REQUESTED HAVE BEEN REDACTED AND ARE MARKED HEREIN BY “***”. SUCH REDACTED INFORMATION HAS BEEN FILED SEPARATELY WITH THE COMMISSION PURSUANT TO THE CONFIDENTIAL TREATMENT REQUEST.

DEVELOPMENT AND LICENSE AGREEMENT

BY AND BETWEEN

BIOCRYST PHARMACEUTICALS, INC.

AND

MUNDIPHARMA INTERNATIONAL HOLDINGS LIMITED

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	PAGE
	ARTICLE 1 - DEFINITIONS
	 	 	1	 
	ARTICLE 2 - GRANT
	 	 	9	 
	2.1 License Grants
	 	 	9	 
	2.2 BioCryst Retained Rights
	 	 	9	 
	2.3 BCX-4208
	 	 	10	 
	2.4 New Compounds
	 	 	10	 
	2.5 New Indications for the Licensed Products
	 	 	10	 
	ARTICLE 3 - GOVERNANCE
	 	 	10	 
	3.2 Committee Membership
	 	 	12	 
	3.3 Committee Co-Chairs
	 	 	12	 
	3.4 Committee Meetings
	 	 	13	 
	3.5 Decision Making
	 	 	13	 
	ARTICLE 4 - DEVELOPMENT, COMMERCIALIZATION AND COOPERATION
	 	 	13	 
	4.1 BioCryst Trials Plan
	 	 	13	 
	4.2 Mundipharma Trials Plan
	 	 	13	 
	4.3 Development Costs
	 	 	13	 
	4.4 Registration of Licensed Products
	 	 	15	 
	4.5 Sequencing of Registration
	 	 	15	 
	4.6 Out-of-Pocket Development Costs
	 	 	15	 
	4.7 Commercialization
	 	 	16	 
	4.8 Promotion
	 	 	17	 
	4.9 Costs of Commercialization
	 	 	17	 
	4.10 BioCryst’s Rights Outside the Territory
	 	 	17	 
	4.11 Report of Results, Data and Information
	 	 	17	 
	4.12 Interactions with Government Agencies
	 	 	18	 
	4.13 Additional Information
	 	 	20	 
	4.14 Parties’ Rights in Communications
	 	 	20	 
	ARTICLE 5 - UNDERTAKINGS OF BIOCRYST AND MUNDIPHARMA
	 	 	20	 
	5.1 Non-Use and Non-Disclosure
	 	 	20	 
	5.2 Authorized Disclosure
	 	 	20	 
	5.3 Technical Assistance
	 	 	21	 
	5.4 Manufacturing
	 	 	21	 
	5.5 Maintenance of License
	 	 	21	 
	5.6 Guarantees; Opinions
	 	 	21	 
	ARTICLE 6 - SIGNING FEE — PAYMENTS — ROYALTIES
	 	 	21	 
	6.1 Signing Fee
	 	 	21	 
	6.2 Payments
	 	 	22	 
	6.3 Royalties Payable by Mundipharma
	 	 	22	 
	6.4 Royalty Reports
	 	 	23	 
	6.5 Records
	 	 	23	 
	6.6 Audit
	 	 	23	 
	6.7 Foreign Currency Conversion
	 	 	23	 
	6.8 Nature of Payments
	 	 	24	 
	6.9 Payments to Third Parties
	 	 	24	 
	ARTICLE 7 - TRADEMARK AND DOMAIN NAMES
	 	 	24	 
	7.1 Use of Trademark and BioCryst Logo
	 	 	24	 
	7.2 Right to Use Trademark
	 	 	24	 
	7.3 New Territory
	 	 	25	 
	7.4 Secondary Marks
	 	 	25	 
	7.5 Obligation to Enter into Trademark License
	 	 	25	 

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	PAGE
	7.6 New Trademarks
	 	 	25	 
	7.7 Property in Trademark and Payment of Fees
	 	 	25	 
	7.8 Domain Names
	 	 	25	 
	7.9 Infringement
	 	 	26	 
	7.10 Step-In
	 	 	26	 
	ARTICLE 8 - LITIGATION, PATENT PROSECUTION AND ROYALTY OFFSET
	 	 	26	 
	8.1 Litigation
	 	 	26	 
	8.2 Patent Prosecution
	 	 	27	 
	8.3 Registration of Patent License
	 	 	28	 
	8.4 Royalty Offset
	 	 	28	 
	ARTICLE 9 - REPRESENTATIONS AND WARRANTIES
	 	 	28	 
	9.1 BioCryst’s Representations and Warranties
	 	 	28	 
	9.2 Mundipharma’s Representations and Warranties
	 	 	30	 
	ARTICLE 10 - INDEMNITY AND PRODUCT LIABILITY
	 	 	31	 
	10.1 Indemnification and Defense by Mundipharma
	 	 	31	 
	10.2 Indemnification and Defense by BioCryst
	 	 	32	 
	10.3 Defense Procedures
	 	 	32	 
	10.4 Insurance
	 	 	32	 
	10.5 Survival
	 	 	32	 
	10.6 Disclaimer of Liability for Consequential Damages
	 	 	32	 
	ARTICLE 11 - TERM AND TERMINATION
	 	 	33	 
	11.1 Term
	 	 	33	 
	11.2 Termination by Parties
	 	 	33	 
	11.3 Rights and Obligations of Parties upon Term Expiration or Termination
	 	 	34	 
	ARTICLE 12 - DISPUTE RESOLUTION AND GOVERNING LAW
	 	 	36	 
	12.1 Disputes
	 	 	36	 
	12.2 Dispute Resolution
	 	 	36	 
	12.3 Governing Law
	 	 	37	 
	ARTICLE 13 - MISCELLANEOUS
	 	 	37	 
	13.1 BioCryst Sublicensees
	 	 	37	 
	13.2 Covenants
	 	 	37	 
	13.3 Non-Compete
	 	 	37	 
	13.4 Delay of payment
	 	 	37	 
	13.5 Assignment
	 	 	37	 
	13.6 Pre-Existing Third Party License
	 	 	37	 
	13.7 Press releases and external communications
	 	 	38	 
	13.8 Use of Name
	 	 	38	 
	13.9 Notices
	 	 	39	 
	13.10 Effect of Waiver
	 	 	39	 
	13.11 Effect of Partial Invalidity
	 	 	39	 
	13.12 Force Majeure
	 	 	40	 
	13.13 Entire Agreement; Amendment
	 	 	40	 
	13.14 Status of Parties
	 	 	40	 
	13.15 Further Assurances
	 	 	40	 
	13.16 Performance by Associates
	 	 	40	 
	13.17 Intellectual Property
	 	 	40	 
	13.18 Counterparts; Facsimile Signature
	 	 	40	 

 

 

LICENSE AND DEVELOPMENT AGREEMENT

     This License and Development Agreement is made as of February 1, 2006 (the “Effective Date”)
by and between BioCryst Pharmaceuticals, Inc., a company organized and existing under the laws of
Delaware having offices at 2190 Parkway Lake Drive, Birmingham, Alabama 35244 (“BioCryst”) and
Mundipharma International Holdings Limited, a Bermudan company, having offices at Mundipharma
House, 14 Par-la-Ville Road, Hamilton, Bermuda HMJX (“Mundipharma”) (hereinafter, each of BioCryst
and Mundipharma a “Party” and, collectively, the “Parties”).

W I T N E S S E T H :

     WHEREAS, BioCryst owns or controls patents and know-how related to a series of proprietary
compounds which act as PNP Inhibitors (as defined below), including the compound known as BCX-1777.

     WHEREAS, Mundipharma has expertise in the discovery, development, manufacture and sale of
pharmaceutical products.

     WHEREAS, Mundipharma wishes to obtain, and BioCryst wishes to grant, in the Territory only,
rights and licenses under certain patents, know-how and trademarks owned or controlled by BioCryst.

     NOW, THEREFORE, in consideration of the mutual promises and covenants contained in this
Agreement, the parties agree as follows:

ARTICLE 1 — DEFINITIONS

     As used in this Agreement, the following terms shall have the following meanings:

     1.1 “Associate” of a Party means any person, firm, trust, corporation or other entity or
combination thereof which directly or indirectly (a) controls said Party, (b) is controlled by said
Party, or (c) is under common control with said Party; the terms “control” and “controlled” meaning
direct or indirect ownership (including pursuant to any option, warrant or other arrangement or
understanding) of fifty percent (50%) or more, including ownership by trusts with substantially the
same beneficial interests, of the voting rights, shares or other equity interests of such person,
firm, trust, corporation or other entity or combination thereof or the power to direct the
management of such person, firm, trust, corporation or other entity or combination thereof.

     1.2 “Autoimmune Indications” means all indications that involve pathogenic consequences,
including tissue injury, produced by autoantibodies or autoreactive T lymphocytes interacting with
self epitopes, i.e. autoantigens. Autoimmune Indications shall include, without limitation,
asthma, psoriasis, rheumatoid arthritis, systemic lupus erythematosus, scleroderma, juvenile
rheumatoid arthritis, polymyositis, ankylosing spondylitis, Type I diabetes, sarcoidosis, Sjogrens
syndrome, chronic active non-pathogenic hepatitis, non-infectious uveitis (Behcet’s), aplastic
anemia, hemolytic anemia, idiopathic thrombocytopenia purpura, vasculitis, Hashimoto’s thyroiditis,
atopic dermatitis, regional non-pathogenic enteritis (including ulcerative colitis, Crohn’s disease
and inflammatory bowel disease), Kawasaki’s disease, post-infectious encephalitis, myasthenia
gravis, multiple sclerosis, alopecia and tropic spastic paraparesis.

     1.3 “B-cell Acute Lymphoblastic Leukemia/lymphoma” or “B-ALL” means a disease in which certain
cells of the B lymphocytes or B-cells are malignant, and have populated the bone marrow.

     1.4 “B-CLL” means B-type chronic lymphocytic leukemia.

     1.5 “B-NHL” means a Non-Hodgkin’s lymphoma in which the malignant cells have characteristics
predominantly of the ‘B’ lineage.

 

 

     1.6 “BCX-4208” means the PNP Inhibitor known as BCX-4208 having the following chemical
structure ***.

     1.7 “BioCryst Know-How” means all knowledge and proprietary information, including know-how,
trade secrets, data, technology and scientific and technical information now or hereafter during
the Term owned, developed or controlled by BioCryst or any of its Associates, which relate to the
Compound or the Licensed Products, including but not limited to: (a) medical, clinical,
toxicological or other scientific data, and (b) processes and analytical methodology useful in the
Development, testing, analysis, manufacture or packaging of the Compound or the Licensed Products,
but specifically excluding all of BioCryst’s or its Associates’ Independent Data.

     1.8 “BioCryst Patents” means those patents and patent applications set forth on Schedule 1.8,
and all patents and patent applications that claim priority to any of the foregoing or which claim
the manufacture, use or sale of the Compound or Licensed Products in the Territory, which patent
applications and patents are owned or controlled by BioCryst or its Associates, or as to which
BioCryst or any of its Associates have a license with rights to sublicense, during the Term, and
any extensions, supplementary protection certificates, continuations, continuations-in-part,
divisions, reissues, re-examinations, additions, substitutions, confirmations, registrations, or
re-validations of or to any of the foregoing.

     1.9 “BioCryst Trials” means, collectively, the following ongoing or planned clinical trials of
the Licensed Products sponsored or to be sponsored and funded by BioCryst (subject to sharing of
Out-of-Pocket Development Costs as provided in Section 4.3.1) with a sufficient number of patients
and designed to demonstrate statistical significance:

	 	•	 	***
	 
	 	•	 	***
	 
	 	•	 	***
	 
	 	•	 	***
	 
	 	•	 	***; and
	 
	 	•	 	***

     1.10 “BioCryst Trials Plan” is defined in Section 4.1.

     1.11 “Business Day” means a day that is not a Saturday, Sunday or a day on which banking
institutions in New York, New York or London, England, are authorized by Legal Requirements to
remain closed.

     1.12 “Cancerous State” means a state in which cells exhibit aberrant and uncontrolled
proliferation that are believed to be malignant.

     1.13 “Claims” means any and all losses, liabilities, costs and expenses (including attorneys’
fees and expenses), debts and other obligations arising out of or resulting from claims, judgments,
damages of any kind whatsoever (including but not limited to compensatory, exemplary and punitive
damages), arbitral awards, and amounts paid in settlement of claims, judgments, legal (including
but not limited to judicial, arbitral and administrative) proceedings and the like, which claims,
judgments, damages, awards, settlements, legal proceedings and the like which arise out of or are
connected or related in any way whatsoever to the design or clinical investigation or research or
testing or labeling or manufacturing or packaging or marketing or sale or distribution of the
Compound or Licensed Products, including (but not limited to) physical injury, death or product
liability and similar Third Party claims.

 

 

     1.14 “Commercialization” means, with respect to the Licensed Products, any and all processes
and activities conducted to permit, establish, promote and maintain sales for the Licensed
Products, including negotiating and obtaining Pricing Approvals, manufacturing, offering for sale,
detailing, commercializing (including launch), promoting, storing, transporting, supporting,
distributing, and importing the Licensed Products, and all Phase IV and post-marketing studies and
tests of such Licensed Products, but in all cases excluding Development. “Commercialize” and
“Commercializing” shall have their correlative meanings.

     1.15 “Commercially Reasonable Efforts” means a level of resources, efforts and urgency to
Develop and/or Commercialize the Licensed Products applied by a Party that is consistent with such
Party’s practices in diligently and actively pursuing the development and/or commercialization of
its other pharmaceutical products at a similar stage of product life, and having similar safety,
efficacy and commercial potential. It is understood that such resources, efforts and urgency may
change from time to time during the Term based upon changing safety, efficacy, scientific, business
and commercial considerations.

     1.16 “Compound” means the PNP Inhibitor known as BCX-1777 as claimed in the BioCryst Patents
having the following chemical structure

and including the salts, esters, metabolites, tautomers, isomers, conjugates and complexes
thereof.

     1.17 “Confidential Information” means any and all information, data or know-how of a
confidential nature (including BioCryst Know-How and Mundipharma Know-How), whether financial,
business, legal, technical or non-technical, oral or written, related to the Compound, any New
Compound or the Licensed Products or otherwise related to a Party or its licensors that is
disclosed by one Party or its Associates (“Disclosing Party”) to the other Party or its Associates
(“Receiving Party”).

     Confidential Information shall not include any information which:

          (i) either before or after disclosure to the Receiving Party, was or becomes published or
generally known to the public through no fault or omission on the part of the Receiving Party; or

          (ii) was known or used by the Receiving Party prior to its disclosure by the Disclosing Party
to the Receiving Party; or

          (iii) either before or after disclosure to the Receiving Party, is provided to the Receiving
Party without restriction by a Third Party having the legal right to do so; or

          (iv) is independently developed by the Receiving Party without access to or use of the
Disclosing Party’s Information; or

          (v) is required to be disclosed by the Receiving Party to comply with applicable laws, to
defend or prosecute litigation or to comply with governmental regulations, provided
that, the Receiving Party provides prior written notice of such disclosure to the
Disclosing Party and, to the extent practicable, takes reasonable and lawful actions to minimize
the degree of such disclosure.

 

 

     1.18 “CTD” means a Common Technical Document providing for a harmonized structure and format
for new pharmaceutical product applications submitted for Regulatory Approvals, as developed by the
ICH.

     1.19 “Cutaneous T-cell Lymphoma” or “CTCL” means a disease in which cells in the lymphoid
system called T-cells (or T lymphocytes) become malignant and includes both Sezary syndrome and
mycosis fungoides.

     1.20 “Develop” means

          (i) with respect to Mundipharma, for the Licensed Product, (a) any and all processes and
activities required to be conducted to complete the Mundipharma Trials in accordance with the
Mundipharma Trials Plan; (b) the submission of the CTD dossier for the Licensed Products in T-ALL
to the EMEA to seek Regulatory Approval in such indication; (c) subject to Section 4.5, the
submission of the CTD dossier for the Licensed Products in T-ALL to the Regulatory Authorities in
other countries of the Territory to seek Regulatory Approval of such indication; (d) the provision
of non-financial support in the Territory to accelerate the recruitment of patients for the
BioCryst Trials; and (e) such further Development activities, including Joint Trials and seeking of
Regulatory Approvals, as are agreed with the JDC to Develop the additional indications of CTCL,
B-CLL, T-NHL and/or B-NHL for the Licensed Products in the Territory.

          (ii) with respect to BioCryst, for the Licensed Product, (a) any and all processes and
activities required to be conducted to complete the BioCryst Trials in accordance with the BioCryst
Trials Plan; (b) subject to the provisions of Section 4.3.4.4, the preparation of a regulatory
dossier for the Licensed Products in relapsed/refractory T-ALL and to provide the complete data
generated under the clinical trial BCX-1777-Tio-05-202 as agreed with the FDA that is intended to
support an NDA,; (c) the delivery to Mundipharma of the full data package and complete regulatory
dossier for T-ALL, including the complete data for chemistry, manufacture and control (CMC) on both
the Compound and the Licensed Products and pre-clinical pharmacology and toxicology data all
generated to ICH standards of Good Laboratory Practice (GLP), Good Manufacturing Practice (GMP) and
Good Clinical Practice (GCP), with all data presented in CTD format; (d) the development, at
BioCryst’s cost, of any subsequent data required by the FDA regarding the Compound or the Licensed
Products and the provision of such subsequent data to Mundipharma; (e) the provision to
Mundipharma, at BioCryst’s cost, of information within BioCryst’s control at the date of the
request to answer questions raised by the EMEA or other Regulatory Authority and the provision of
reasonable technical assistance on any questions raised by the EMEA or other Regulatory Authority
in respect of the preclinical and CMC data; (f) the delivery to Mundipharma of the full data
package and final study reports for the BioCryst Trials; and (g) such further Development
activities, including Joint Trials, as are agreed with the JDC to Develop the additional
indications of CTCL, B-CLL, T-NHL and/or B-NHL for the Licensed Products in the Territory.

and in each case, “Develop”, “Development” and “Developing” shall have their correlative meanings.

     1.21 “U.S. Dollars”, or “$” means dollars constituting legal tender for the payment of public
and private debts in the United States of America.

     1.22 “Effective Date” is defined in the preamble.

     1.23 “EMEA” means the European Agency for the Evaluation of Medicinal Products.

     1.24 “Field” means the treatment of all Cancerous and/or Pre-Cancerous States in humans.

     1.25 “First Commercial Sale” means the first shipment for commercial sale of a Licensed
Product in the Territory by Mundipharma or its Associates to a Third Party.

     1.26 “Force Majeure Event” is defined in Section 13.12.

 

 

     1.27 “Generic Compounds” means any pharmaceutical products, other than the Licensed Products,
that (i) are marketed for sale by a Third Party, ***, or (ii) ***.

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

     1.29 “Gross Price” means, with respect to a Licensed Product, the unit price, without
deduction, actually invoiced by Mundipharma, its sublicensees or its Associates for the sale of
such Licensed Product.

     1.30 “ICH” means the International Conference on Harmonisation (“ICH”).

     1.31 “IND” means an Investigational New Drug Application under the U.S. Federal Food, Drug and
Cosmetic Act, as amended, and the regulations promulgated thereunder, or equivalent in another
jurisdiction.

     1.32 “Independent Data” means, with respect to the Licensed Products, all data, including
without limitation, toxicological, pharmaceutical, clinical, non-clinical and medical data, health
registration data and marketing data, developed by a Sponsoring Party or its Associates in an
Independent Trial in respect of which the Non-Sponsoring Party has not shared the Out-of-Pocket
Development Costs.

     1.33 “Independent Trial” is defined in Section 4.3.3.2 hereof.

     1.34 “Initial Royalty Rate” is defined in Section 6.3.1.1.

     1.35 “JCC” is defined in Section 3.1.6.

     1.36 “JDC” is defined in Section 3.1.4.

     1.37 “Joint Trials” is defined in Section 4.3.3.1.

     1.38 “JSC” is defined in Section 3.1.1.

     1.39 “Legal Requirements” means all laws, statutes, rules, regulations, orders, decrees,
judgments and/or ordinances of any Governmental Authority and any present and future
supra-national, national, state and local laws (including rules and regulations having the force of
law); requirements under permits; orders, decrees, judgments and directives; requirements of the
Regulatory Authorities, including without limitation cGMPs, Council Regulation (EEC) No 2309/93,
requirements imposed under the Federal Food, Drug and Cosmetic Act and the Public Health Service
Act, each as amended from time to time, requirements in 21 C.F.R. Part 312, applicable requirements
in 21 C.F.R. Parts 600-680 and similar requirements of Regulatory Authorities in jurisdictions
outside the United States.

     1.40 “Licensed Products” means all pharmaceutical preparations in all dosage strengths,
formulations and methods of administration that contain the Compound as its active ingredient,
alone or in combination with another active ingredient.

     1.41 “Licensed Products Sold” means sales of the Licensed Products by Mundipharma or its
Associates or its permitted Third Party sublicensees to Third Parties in the Territory.

     1.42 “Marketing Authorization” means the product license or marketing authorization necessary
as a prerequisite for marketing and selling the Licensed Products in each country of the Territory.

     1.43 “Material Default” means, with respect to each Party:

 

 

          (i) any default by any Party hereto of its covenants, representations, agreements or other
performance obligations under this Agreement (other than a payment obligation) (a) that is a
material breach or (b) that when aggregated with any other such uncured defaults by such Party,
constitutes a material breach and, in the case of either clause (a) or (b), if such default is
capable of being cured, shall have continued for *** (***) days after written notice thereof was
provided to the alleged defaulting Party by the non-defaulting Party (or, if such default cannot be
cured within such ***-day period, if the alleged defaulting Party does not promptly commence and
diligently continue all reasonable actions to cure such defaults during such ***-day period); or

          (ii) any default by any Party hereto of its payment obligations hereunder that shall have
continued for *** (***) days after written notice thereof was provided to the alleged defaulting
Party by the non-defaulting Party.

     1.44 “Minor Market” means ***.

     1.45 “Mundipharma German Counsel” shall mean ***.

     1.46 “Mundipharma Know-How” means all know-how, trade secrets, data, technology and scientific
and technical information, now or hereafter during the Term owned, developed or acquired by
Mundipharma or any of its Associates, which relate to the Compound or the Licensed Products,
including but not limited to: (a) medical, clinical, toxicological or other scientific data, and
(b) processes and analytical methodology useful in the Development, testing, analysis, manufacture
or packaging of the Compound or the Licensed Products, but specifically excluding all of
Mundipharma’s or its Associates’ Independent Data.

     1.47 “Mundipharma New York Counsel” shall mean ***.

     1.48 “Mundipharma Patents” means all patent applications and patents which claim improvements
upon or modifications to the inventions and discoveries disclosed or claimed in any of the BioCryst
Patents or which claim the manufacture, use or sale of Compound or Licensed Products, which patent
applications and patents are owned or controlled by Mundipharma or its Associates, or as to which
Mundipharma or any of its Associates have a license with rights to sublicense, during the Term, and
any extensions, supplementary protection certificates, continuations, continuations-in-part,
divisions, reissues, re-examinations, additions, substitutions, confirmations, registrations, or
re-validations of or to any of the foregoing.

     1.49 “Mundipharma Trials” is defined in Section 4.2.

     1.50 “Mundipharma Trials Plan” is defined in Section 4.2.

     1.51 “Mundipharma UK Counsel” shall mean ***.

     1.52 “NDA” means a New Drug Application, including all supplements and amendments thereto, for
the approval of a Licensed Product as a new drug under the U.S. Federal Food, Drug and Cosmetic
Act, as amended, or equivalent in another jurisdiction, and the regulations promulgated thereunder
filed with a Regulatory Authority.

     1.53 “Net Sales” means (a) the Gross Price of Licensed Products multiplied by the quantity of
Licensed Products Sold LESS, only as specifically applicable to Licensed Products Sold, (b) the sum
of ***.

     1.54 ”New Compound” means ***.

     1.55 “New Compound Agreement” is defined in Section 2.4.

 

 

     1.56 “New Indications” means any indication outside the Field (excluding Autoimmune
Indications, Stem Cell Transplantation and Transplantation Indications).

     1.57 “Non-Hodgkin’s Lymphoma” or “NHL” means a disease in which malignant tumors arise in the
lymphatic system, but that lack the characteristic Hodgkin’s histology. (See also “T-NHL” and
“B-NHL”).

     1.58 “Non-Sponsoring Party” has the meaning defined in Section 4.3.4.3.

     1.59 “Out-of-Pocket Development Costs” shall mean any out-of-pocket payment made by either
Party or its Associates to a Third Party, but only to the extent such payment relates to costs of
Developing the Licensed Products, which costs are incurred by such Party or its Associates after
the Effective Date.

     1.60 “Payments” is defined in Section 6.2.

     1.61 “Phase II” means a human clinical trial performed to evaluate the efficacy of a Licensed
Product for a particular indication or indications in patients with the disease or condition under
study and/or to determine the common short-term side effects and risks associated with the drug, as
described in 21 C.F.R. Part 312, as it may be amended.

     1.62 “Phase IIb” means a placebo or active drug controlled, randomized human clinical trial
performed to gain evidence of the efficacy of a pharmaceutical product in a target population,
and/or to establish the optimal dosing regimen for such product.

     1.63 “Phase III” means a human clinical trial required by the FDA or other equivalent
Regulatory Authority to gain evidence of efficacy in the target population and obtain expanded
evidence of safety for Licensed Product, as described in 21 C.F.R. Part 312, as it may be amended.

     1.64 “PNP Inhibitor” means ***.

     1.65 “Pre-Cancerous State” means any abnormal proliferation of cells exhibiting features
characteristic of cancer that are of genetic or iatrogenic origin, including without limitation
actinic keratosis, Barrett’s oesophagus, cervical intraepithelial neoplasia, colonic polyposis,
lymphomatoid papulosis, lymphomatoid granulomatosis, oral leukoplakia, other lymphoproliferative
disorders, Putz-Jeghers Syndrome, Purtilo Syndrome and Xeroderma Pigmentosum.

     1.66 “Pre-Existing Third Party License” means the agreement dated June 27, 2000 by and
between, on the one hand, Albert Einstein College of Medicine of Yeshiva University, a division of
Yeshiva University and Industrial Research Ltd., and on the other hand BioCryst, as amended on July
26, 2002 and on April 15, 2005, and as may be amended after the Effective Date.

     1.67 “Pre-Existing Third Party License Payments” is defined in Section 5.5.

     1.68 “Pricing Approval” means, in a country of the Territory where a Governmental Authority or
non-governmental body with relevant statutory authority approves or, thereafter, determines pricing
for pharmaceutical products for reimbursement or otherwise, such approval or determination.

     1.69 “Product Materials” is defined in Section 13.8.

     1.70 “Promotional Literature” means, with respect to any Party, all promotional and other
literature and information, in all media, prepared by or on behalf of such Party and distributed by
or on behalf of such Party in connection with the marketing of the Licensed Products, including but
not limited to package inserts, web sites, Product Materials and any other place where a Trademark
appears.

 

 

     1.71 “Publishing Party” is defined in Section 13.9.2.

     1.72 “Regulatory Approval” with respect to a particular jurisdiction in the Territory and
Licensed Product means the receipt of all regulatory approvals (including, without limitation,
through mutual recognition of regulatory approval by another country) necessary for sale of the
Licensed Product in that jurisdiction, but excluding Pricing Approval.

     1.73 “Regulatory Authority” means the FDA, or in the case of a jurisdiction outside of the
United States, such corollary or other appropriate Regulatory Authority with similar
responsibilities, including, without limitation, the EMEA.

     1.74 “Secondary Marks” is defined in Section 7.2.

     1.75 “Signing Fee” is defined in Section 6.1.

     1.76 “SPA” means the Special Protocol Assessment procedures for clinical trial protocol
assessment and agreement with the U.S. Food and Drug Administration (FDA).

     1.77 “SLT” or “Second-Line Treatment” means the treatment of patients that have been
previously treated for cancer, but have had a refraction or relapse of cancer.

     1.78 “Sponsoring Party” has the meaning defined in Section 4.3.4.3.

     1.79 “Stem-Cell Transplantation” means a procedure in which healthy stem cells are infused to
help restore normal bone marrow function.

     1.80 “Subsequent Royalty Rate” is defined in Section 6.3.1.2.

     1.81 “T-ALL” or “T-cell Acute Lymphoblastic Leukemia/lymphoma” is a disease in which certain
cells of the lymphoid system called T lymphocytes or T-cells are malignant, and have populated the
bone marrow.

     1.82 “Term” has the meaning defined in Section 11.1.1.

     1.83 “Territory” means the countries, and only the countries, listed on Exhibit A attached
hereto.

     1.84 “Third Party(ies)” shall mean any party other than BioCryst, Mundipharma and their
respective Associates from time to time.

     1.85 “T-NHL” means Non-Hodgkin’s lymphoma in which the malignant cells have characteristics
predominantly of the ‘T’ lineage.

     1.86 “Trademark” means the trademark “Fodosine” or such other trademark approved by the JDC
for use in connection with the Licensed Products, but excluding the Secondary Marks.

     1.87 “Transplantation Indications” means all indications that involve the suppression of
rejection of transplanted organs, bone marrow or other tissue, including, without limitation, solid
organ transplantation (including tolerance induction and xenotransplantation), bone marrow
transplantation, graft versus host disease and cell transplantation.

     1.88 “Valid Claim” means any claim in an issued and unexpired patent included within the
BioCryst Patents which has not been revoked or held unenforceable or invalid by a final,
nonappealable decision of a court of other Governmental Authority of competent jurisdiction.

 

 

     1.89 Interpretations. The definitions of the terms herein apply equally to the singular and
plural forms of the terms defined. Whenever the context may require, any pronoun will include the
corresponding masculine, feminine and neuter forms. The words “include”, “includes” and
“including” will be deemed to be followed by the phrase “without limitation.” Unless the context
requires otherwise, (A) any definition of or reference to any agreement, instrument or other
document herein will be construed as referring to such agreement, instrument or other document as
from time to time amended, supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein or therein), (B) any reference to any
laws herein will be construed as referring to such laws as from time to time enacted, repealed or
amended, (C) any reference herein to any person will be construed to include the person’s permitted
successors and assigns, (D) the words “herein”, “hereof” and “hereunder”, and words of similar
import, will be construed to refer to this Agreement in its entirety and not to any particular
provision hereof, (E) any reference herein to the words “mutually agree” or “mutual written
agreement” will not impose any obligation on either Party to agree to any terms relating thereto,
and (F) all references herein to Articles, Sections, Exhibits or Schedules will be construed to
refer to Articles, Sections, Exhibits and Schedules of this Agreement. The table of contents,
captions and Section headings appearing in this Agreement are inserted only as a matter of
convenience and in no way define, limit, construe or describe the scope or intent of such Sections
or of this Agreement, nor in any way affect this Agreement.

ARTICLE 2 — GRANT

     2.1 License Grants.

          2.1.1 By BioCryst. Subject to the rights retained by BioCryst and its licensors as set forth
in Section 2.2, BioCryst grants to Mundipharma an exclusive, royalty-bearing, right and license in
the Territory, with the right to sublicense to ***.

          2.1.2 By Mundipharma. Mundipharma hereby grants to BioCryst a co-exclusive (with Mundipharma
and its Associates), royalty-free, fully-paid worldwide right and license, with the right to
sublicense ***.

     2.2 BioCryst Retained Rights. BioCryst retains all of the following rights:

          2.2.1 all rights under the BioCryst Patents, the BioCryst Know-How and the Trademark outside
of the Field, subject to Section 2.5;

          2.2.2 all rights under the BioCryst Patents, the BioCryst Know-How and the Trademark outside
of the Territory;

          2.2.3 the rights reserved to the licensors and the governments under the Pre-Existing Third
Party License;

          2.2.4 the right to conduct or continue further non-commercial research into the Licensed
Products and/or the Compound, but not to conduct pre-clinical trials into the Licensed Products
and/or the Compound in the Territory or to conduct clinical trials into the Licensed Products
and/or the Compound in the Territory, other than the BioCryst Trials and any Joint Trials to be
performed in the Territory with the agreement of the JDC;

          2.2.5 all rights with respect to New Compounds, including the right to conduct or continue
further research and development of New Compounds and pharmaceutical preparations containing such
New Compounds, both within and outside the Territory and within and outside the Field, subject only
to Section 2.4.

 

 

Notwithstanding any of the foregoing, BioCryst shall not, directly or indirectly through an
Associate or Third Party, sell or deliver any Licensed Products to customers outside the Territory
where it believes that such party will resell the Licensed Products to countries in the Territory.

     2.3 BCX-4208. In further consideration of the payments made and to be made under this
Agreement, BioCryst agrees that during the Term it shall not, and shall not grant rights to an
Associate or a Third Party to, develop, make, use, sell or commercialize pharmaceutical products
containing BCX-4208 within the Field. Notwithstanding the foregoing and for the purposes of
clarity, it is understood and agreed that (i) no rights related to BCX-4208 are granted to
Mundipharma in this Agreement and (ii) the Field does not include Autoimmune Indications, Stem-Cell
Transplantation and Transplantation Indications.

     2.4 New Compounds. ***.

     2.5 New Indications for the Licensed Products. BioCryst confirms that as of the Effective
Date neither it nor any of its Associates has commenced human clinical trials for the Compound or
the Licensed Products in any New Indications. Notwithstanding anything to the contrary contained
herein, and irrespective of the JDC’s view, BioCryst shall have complete and full authority over
all rights for New Indications for the Licensed Products outside of the Territory.

          2.5.1 Development Proposal by Mundipharma. ***.

          2.5.2 Development Proposal by BioCryst. ***.

          2.5.3 No Independent Data. For the purposes of Sections 2.5.1 and 2.5.2, any data developed
by Mundipharma or its Associates relating to a New Indication shall not constitute Mundipharma
Independent Data. For purposes of clarity, there shall be no funding requirement on the part of
BioCryst in order to receive data relating to a New Indication developed by Mundipharma or its
Associates pursuant to Sections 2.5.1 and 2.5.2.

ARTICLE 3 — GOVERNANCE

          3.1.1 Joint Steering Committee. Promptly after the Effective Date, BioCryst and Mundipharma
shall jointly establish a joint steering committee (the “Joint Steering Committee” or “JSC”). All
other committees and teams established under this Agreement shall be subordinate to the JSC.

          3.1.2 Responsibilities of JSC. The JSC shall be responsible for:

3.1.2.1 overseeing, managing and providing strategic direction to any and
all of the activities performed by or on behalf of the Parties with respect
to the Licensed Product;

3.1.2.2 annually reviewing and approving all strategic plans made by the
Parties with respect to the Licensed Products including Development and
Commercialization;

3.1.2.3 reviewing and approving substantive amendments and updates to any of
the strategic plans referred to in the immediately preceding subsection;

3.1.2.4 reviewing and monitoring the activities and progress of all other
committees and teams established under this Agreement and ensuring that such
activities and progress are generally consistent with similar activities
undertaken by BioCryst or its licensees outside the Territory in respect of
the Licensed Products;

 

 

3.1.2.5 resolving disputes, disagreements and deadlocks that are not
resolved by the other committees and teams established under this Agreement;

3.1.2.6 overseeing the integration and coordination of the Development and
Commercialization of the Licensed Products in the Territory in a manner
generally consistent with BioCryst’s or its licensees’ Development and
Commercialization of the Licensed Products outside the Territory;

3.1.2.7 assessing the commercial, medical and scientific viability of any
proposals made by BioCryst for development of a New Compound in accordance
with Section 2.4 hereof; and

3.1.2.8 undertaking and/or approving such other matters as are specifically
provided for the JSC under this Agreement.

          3.1.3 Reporting to the JSC. Each Party shall keep the JSC informed of progress and
results of activities for which it is responsible through its members on the JSC and as otherwise
provided herein.

          3.1.4 Joint Development Committee. Promptly after the Effective Date, the Parties shall
establish a joint Development committee (the “Joint Development Committee” or “JDC”).

          3.1.5 Responsibilities of JDC. The JDC shall be responsible for:

3.1.5.1 Developing and proposing to the JSC the strategy and plans for the
Development of the Licensed Products, including regulatory strategies in the
Territory;

3.1.5.2 assessing the medical and scientific viability of any proposals made
by the Parties for Development of a New Indication for the Licensed Products
in accordance with Section 2.5 hereof;

3.1.5.3 reviewing and approving the BioCryst Trials Plan and the Mundipharma
Trials Plan on a regular basis (not less frequently than every *** (***)
months), and presenting from time to time to the JSC for review and approval
of substantive amendments to the Mundipharma Trials Plan and the BioCryst
Trials Plan;

3.1.5.4 reviewing and approving clinical study endpoints, clinical
methodology and monitoring requirements for the clinical studies;

3.1.5.5 undertaking and/or approving such other matters as are specifically
provided for the JDC under this Agreement; and

3.1.5.6 facilitating and approving the reconciliation and reimbursement of
Out of Pocket Development Costs in accordance with Section 4.6.2, below.

          3.1.6 Joint Commercialization Committee. Promptly after the Effective Date, the Parties shall
establish a joint Commercialization committee (the “Joint Commercialization Committee” or “JCC”).

          3.1.7 Responsibilities of JCC. The JCC shall be responsible for:

 

 

3.1.7.1 developing an annual Commercialization plan which shall detail the
plans for Commercialization of Licensed Products in the Territory and which
shall be reviewed and approved by the JSC (the “Commercialization Plan”).

3.1.7.2 monitoring and reporting on the competitive landscape for the
Licensed Products within and outside the Territory;

3.1.7.3 monitoring Mundipharma’s use of the Trademark or any Secondary Mark
as approved by BioCryst;

3.1.7.4 reviewing Mundipharma’s plans and activities with regard to launch
of the Licensed Products in the Territory and reporting on the same to the
JSC;

3.1.7.5 annually reviewing and updating the Commercialization Plan, and
presenting from time to time to the JSC for review and approval substantive
amendments to such plan;

3.1.7.6 reviewing, and approving the conduct of, any Phase IV or
post-marketing studies of the Licensed Products in the Territory; and

3.1.7.7 reviewing and approving Mundipharma’s decision not to pursue
Regulatory Approvals or Pricing Approvals in any Minor Markets in accordance
with Section 4.5.

          3.1.8 Joint Committee Report Responsibilities. On or prior to each *** during the Term of this
Agreement, Mundipharma shall cause its representatives on each committee to issue a written report
to BioCryst (for provision to BioCryst’s licensors under the Pre-Existing Third Party License)
detailing all Mundipharma Development and Commercialization developments, plans and results.

     3.2 Committee Membership. The JSC, JDC and JCC (each, including subcommittees thereof, a
“Committee”) shall each be comprised of an equal number of appropriately qualified representatives
from each of BioCryst and Mundipharma. The exact number of such representatives on the JSC shall
be two (2) for each of BioCryst and Mundipharma, or such other number as the Parties may agree.
The initial members of the JSC, the JDC and the JCC shall be notified by each Party to the other
Party in writing within thirty (30) days after the Effective Date. Either Party may replace any of
its respective Committee representatives with an appropriately qualified representative at any time
with prior written notice to the other Party. Unless otherwise agreed, each Committee shall have
at least one representative with relevant decision-making authority from each Party such that the
applicable Committee is able to effectuate all of its decisions within the scope of such
Committee’s responsibilities. In the event a Committee member from either Party is unable to
attend or participate in a meeting of its Committee, the Party who designated such representative
may designate an appropriately qualified substitute representative for the meeting, in its sole
discretion.

     3.3 Committee Co-Chairs. For each Committee, each Party shall appoint one of its members to
such Committee to co-chair the meetings for such Committee (each, a “Co-Chair”). The Co-Chairs for
each Committee shall (i) coordinate and prepare the agenda and ensure the orderly conduct of such
Committee’s meetings, (ii) attend each meeting of such Committee, and (iii) prepare and issue
minutes of each meeting within thirty (30) days thereafter accurately reflecting the discussions
and decisions of such Committee. Such minutes from each Committee’s meeting shall not be finalized
until each Co-Chair from each Party has reviewed and confirmed the accuracy of such minutes in
writing. The Co-Chairs shall solicit agenda items from its Committee members and provide an agenda
along with appropriate information for such agenda reasonably in advance of any meeting. It is
understood that such agenda will include all items requested by either Co-Chair for inclusion
therein. In the event the Co-Chair from either Party is unable to attend or participate in its
Committee’s meeting, the Party who designated such Co-Chair may designate a substitute Co-Chair for
the meeting in its sole direction.

 

 

     3.4 Committee Meetings. The JDC and JCC shall meet once every three (3) months until two
years after First Commercial Sale and thereafter once every six (6) months, or more often as
otherwise agreed by the Parties, and such meetings may be conducted by telephone, videoconference
or in person as determined by the applicable Committee; provided that, at least once every six (6)
months, a meeting shall be held in person. All in-person Committee meetings shall be held on an
alternating basis between Mundipharma’s and BioCryst’s facilities, unless otherwise agreed by the
Parties. Each Party shall be responsible for its own expenses relating to such meetings. As
appropriate, other employee representatives of the Parties may attend Committee meetings as
nonvoting observers, if agreed by the Parties. Each Party may also call for special meetings of a
Committee to resolve particular matters requested by such Party and within the areas of
responsibility of such Committee. Each Committee’s Co-Chairs shall provide its Committee members
with no less than fifteen (15) business days’ notice of each regularly scheduled meeting, and no
less than ten (10) business days’ notice of any special meetings called by either Party.

     3.5 Decision Making. Decisions of each Committee shall be made by consensus of the members
present in person or by other means (e.g., teleconference) at any meeting, with each Committee
member having one vote. In order to make any decision, any Committee or team established under
this Agreement must have present (in person or telephonically) at least one representative of each
Party, and each Party shall cause its appropriate representatives to attend all meetings, unless
agreed to by the parties in writing. All decisions of each Committee shall be consistent with
BioCryst’s vision of fostering and maintaining a unified profile of the Licensed Products within
and outside the Territory. Unless otherwise specified by the JSC, in the event that the JDC or JCC
does not reach consensus with respect to a particular matter after endeavoring in good faith for
*** (***) days to do so, then the parties shall refer the issue to the JSC for resolution. In the
event that the JSC does not reach consensus with respect to a particular matter after endeavoring
in good faith for *** (***) days to do so, then the parties shall refer the issue to each Party’s
CEO (or equivalent position) to jointly reach consensus. In the event that the Parties’ CEOs (or
equivalent positions) do not reach consensus with respect to a particular matter after endeavoring
in good faith for *** (***) days to do so, then ***. Notwithstanding anything herein to the
contrary, no Committee shall have any authority to amend, modify or waive compliance with this
Agreement.

ARTICLE 4 —  DEVELOPMENT, COMMERCIALIZATION AND COOPERATION

     4.1 BioCryst Trials Plan. BioCryst shall maintain a trials plan setting forth the details and
protocols of the BioCryst Trials and their anticipated dates of completion (the “BioCryst Trials
Plan”). The BioCryst Trials Plan may be revised at any time by BioCryst, provided that all
revisions shall be communicated to the JDC, and any material revisions shall be approved by the JDC
and shall be communicated to Mundipharma prior to their implementation. BioCryst will use
Commercially Reasonable Efforts to Develop the Licensed Products pursuant to the BioCryst Trials
Plan in compliance with Legal Requirements.

     4.2 Mundipharma Trials Plan. Mundipharma shall maintain a trials plan setting forth the
details and protocols of the exploratory, clinical and non-clinical trials in the Licensed Products
currently anticipated to be undertaken by Mundipharma (the “Mundipharma Trials”) and their proposed
dates of commencement (the “Mundipharma Trials Plan”). The draft protocols of the Mundipharma
Trials shall be submitted to the JDC for review and comment, and to the JSC for approval. On or
prior to the three month anniversary of the Effective Date, the Parties shall meet to confer and
agree upon, Mundipharma’s plans for conducting the exploratory, clinical and non-clinical trials of
the Licensed Products for the specified indications. The Mundipharma Trials Plan may be revised by
Mundipharma at any time, provided that all revisions shall be communicated to the JDC and any
material revisions shall be approved by the JDC and shall be communicated to BioCryst prior to
their implementation. Mundipharma will use Commercially Reasonable Efforts to Develop the Licensed
Products in the Territory pursuant to the Mundipharma Trials Plan in compliance with Legal
Requirements.

     4.3 Development Costs.

 

 

          4.3.1 BioCryst Trials. Each Party shall pay fifty percent (50%) of the documented
Out-of-Pocket Development Costs incurred by BioCryst in respect of the BioCryst Trials conducted on
or after the Effective Date, provided that Mundipharma’s maximum aggregate contribution to the
BioCryst Trials shall be ten million U.S. Dollars ($10,000,000). Such payments shall be made in
accordance with Section 4.6. BioCryst shall be responsible for all other costs associated with the
BioCryst Trials and for Developing and Commercializing the Licensed Products (with such
Commercialization to be undertaken by BioCryst in its sole discretion, and BioCryst’s sole
obligations to conduct such Development being in accordance with the BioCryst Trials Plan and this
Agreement) outside the Territory.

          4.3.2 Mundipharma Trials. Mundipharma shall be responsible for all costs incurred in respect
of the Mundipharma Trials, up to a maximum aggregate of Out-of-Pocket Development Costs of fifteen
million U.S. Dollars ($15,000,000). ***.

          4.3.3 Further Development. Within *** (***) months after receipt of the final study report
for each of the BioCryst Trials and the Mundipharma Trials, the JDC shall review such report and
recommend to the Parties an appropriate course of action and timetable for further Development,
which determination shall (unless otherwise agreed upon in writing by the Parties) result in one of
the following courses of action:

4.3.3.1 the Parties agreeing to design and jointly fund further Development
(“Joint Trials”), with the Out-of-Pocket Development Costs and the ownership
of the resulting data and results to be shared in equal proportion and the
Parties’ respective responsibilities to be set out in a mutually agreeable
Joint Trials plan, which shall be made a part of this Agreement; or

4.3.3.2 one Party deciding to undertake and fund further Development of the
Licensed Products in which the other Party does not elect to share its
proportion of the Out-of-Pocket Development Costs (an “Independent Trial”),
subject to confirmation of the JDC that such Independent Trial is unlikely
to have an adverse effect on the other Party’s interest in the Licensed
Products, which confirmation shall not be unreasonably withheld or delayed;
or

4.3.3.3 the Parties agreeing that no further Development is necessary at
that time.

          4.3.4 Ownership and Sharing of Data.

4.3.4.1 BioCryst Trials. Upon receipt of the Signing Fee, BioCryst shall
deliver to Mundipharma all BioCryst Know-How in existence on such date. In
addition, BioCryst shall provide free of charge to Mundipharma all results
and data generated from time to time in the BioCryst Trials on a timely
basis, including a copy of the final study report issued in each BioCryst
Trial within fifteen (15) days of such report’s completion.

4.3.4.2 Mundipharma Trials. Mundipharma shall provide free of charge to
BioCryst all results and data generated from time to time in the Mundipharma
Trials on a timely basis, including a copy of the final study report issued
in each Mundipharma Trial within fifteen (15) days of such report’s
completion.

4.3.4.3 Independent Trials. The Independent Data generated from time to
time in any Independent Trials conducted by a Party (the “Sponsoring
Party”), including final study reports issued in such Independent Trials,
shall be owned by the Sponsoring Party and shall not be provided to the
other Party (the “Non-Sponsoring Party”) unless such Non-Sponsoring Party
makes a cash payment equal to fifty percent (50%) of the documented
Out-of-Pocket Development Costs

 

 

incurred by the Sponsoring Party. Within fifteen (15) days of the
Sponsoring Party’s receipt of the Non-Sponsoring Party’s payment, the
Independent Data generated in such Independent Trial, including the final
study report, shall be provided to the Non-Sponsoring Party.

4.3.4.4 BCX-1777-Tio-05-202. ***.

4.3.4.5 Exclusion from Know-How. For the avoidance of doubt and other than
as set forth in Section 11.3, (i) if BioCryst conducts an Independent Trial
in respect of which Mundipharma does not elect to share the Out-of-Pocket
Development Costs pursuant to Section 4.3.4.3, the Independent Data arising
from such trial shall not be deemed to be included in the BioCryst Know-How
or BioCryst Patents licensed to Mundipharma hereunder, (ii) if Mundipharma
conducts an Independent Trial in respect of which BioCryst does not elect to
share the Out-of-Pocket Development Costs pursuant to Section 4.3.4.3, the
Independent Data arising from such trial shall not be deemed to be included
in the Mundipharma Know-How or Mundipharma Patents licensed to BioCryst
hereunder and shall not be transferred to BioCryst on expiry or termination
of this Agreement except as provided under Section 11.3.4, and (iii) each
Party is free to use or not to use its Independent Data in any manner it
sees fit, provided that with respect to the Development and/or
Commercialization of the Licensed Products it shall be used solely in
Territory (in the case of Mundipharma) or outside the Territory (in the case
of BioCryst).

          4.3.5 Clinical Supplies. Provided that Mundipharma or its service providers are not able to
manufacture or procure the Licensed Products, BioCryst agrees to supply reasonable quantities of
the same formulations of the Licensed Products as BioCryst is using in the BioCryst Trials to
Mundipharma at BioCryst’s Third Party cost plus a margin of *** percent (***%) for clinical
Development in the Territory.

     4.4 Registration of Licensed Products. Subject to Section 4.5, Mundipharma shall use
Commercially Reasonable Efforts to obtain, at its sole expense and in the name of Mundipharma or
its Associate, in accordance with Legal Requirements, Regulatory Approvals and Pricing Approvals
for at least one Licensed Product in each country in the Territory in each of T-ALL, CTCL, B-CLL,
T-NHL and B-NHL, provided that in Mundipharma’s reasonable discretion, the results of the BioCryst
Trials, the Mundipharma Trials, any Joint Trials and, in Mundipharma’s reasonable discretion, any
Independent Trials conducted by Mundipharma or its Associates, and any other relevant data, would
support registration in each such indication.

     4.5 Sequencing of Registration. The Parties acknowledge and agree that Mundipharma’s
obligation to exercise the Commercially Reasonable Efforts required by Section 4.4 does not require
Mundipharma to pursue Regulatory Approvals of the Licensed Products in each of T-ALL, CTCL, B-CLL,
T-NHL and B-NHL in all countries of the Territory simultaneously and, consistent with such
obligation, Mundipharma may pursue a reasonable sequencing of the prosecution of Regulatory
Approvals throughout the Territory over time, consistent with the BioCryst Trials Plan and the
Mundipharma Trials Plan. Notwithstanding the foregoing, Mundipharma shall not be obliged to
pursue Regulatory Approvals or Pricing Approvals in any Minor Markets in respect of which
Mundipharma can demonstrate to the reasonable satisfaction of the JCC that Commercialization of the
Licensed Products in such Minor Market will not be commercially viable due to the likelihood of an
unfavorable Pricing Approval in such Minor Market or where such Regulatory Approvals or Pricing
Approvals are likely to have a material adverse effect on registration or Commercialization of the
Licensed Products elsewhere in the Territory. In such event, Mundipharma’s decision not to pursue
Regulatory Approvals or Pricing Approvals in such Minor Market shall not be deemed a breach of
Mundipharma’s obligation to use Commercially Reasonable Efforts required by Section 4.4.

     4.6 Out-of-Pocket Development Costs

 

 

          4.6.1 Out-of-Pocket Development Costs incurred by either Party and in respect of which the
other Party has an obligation of reimbursement under this Agreement shall be shared by the other
Party in accordance with the reconciliation process as set forth in Section 4.6.2.

          4.6.2 Reconciliation of Out-of-Pocket Development Costs

4.6.2.1 Within thirty (30) days after the end of each calendar year, (i)
BioCryst shall provide both Mundipharma and the JDC with a statement setting
forth in reasonable detail the Out-of-Pocket Development Costs incurred by
BioCryst in the BioCryst Trials during the preceding calendar year, (ii)
Mundipharma shall provide both BioCryst and the JDC with a statement setting
forth in reasonable detail the Out-of-Pocket Development Costs incurred by
Mundipharma in the Mundipharma Trials during the preceding calendar year for
information purposes only and not reconciliation under Section 4.6.2.2,
(iii) each Party shall provide the other Party and the JDC a statement
setting forth in reasonable detail the Out-of-Pocket Development Costs
incurred by such Party in any Joint Trials during the preceding calendar
year; and (iv) the Sponsoring Party of any Independent Trial which the
Non-Sponsoring Party subsequently has elected to participate in shall
provide the JDC and the Non-Sponsoring Party with a statement setting forth
in reasonable detail the Out-of-Pocket Development Costs incurred by the
Sponsoring Party in such Independent Trial during the preceding calendar
year.

4.6.2.2 Within sixty (60) days after each calendar year, the JDC shall
deliver to both Parties a true accounting for the applicable year of all
Out-of-Pocket Development Costs incurred by BioCryst and Mundipharma
respectively in the BioCryst Trials, any Joint Trials conducted by the
Parties, and any Independent Trials in which the Non-Sponsoring Party has
elected to participate, and a reconciliation of any amounts owed by one
Party to the other, pursuant to Section 4.3.1, up to a maximum of
$10,000,000 (ten million U.S. Dollars) in the case of Mundipharma in respect
of the BioCryst Trials. Any amount payable by a Party shall be paid within
thirty (30) days following receipt of such reconciliation.

4.6.2.3 Monetary conversions from the currency of a foreign country in which
an Out-of-Pocket Development Cost is incurred, into U.S. Dollars shall be
calculated in accordance with Mundipharma’s standard accounting procedures,
consistently applied, which as of the Effective Date are calculated at the
quarterly average of the daily exchange mid-range rates as quoted on the
Bloomberg Financial Network. Mundipharma shall promptly notify BioCryst of
any change in writing.

4.6.2.4 For the purpose of determining any cost or expense which is shared
by the parties or otherwise invoiced by one Party to another under this
Agreement, any cost or expense allocated by either Party to a particular
cost category shall be consistent with the terms of this Agreement and any
plans developed under this Agreement, and shall not also be allocated to
another category.

     4.7 Commercialization.

          4.7.1 Mundipharma undertakes that it will Commercialize the Licensed Products in the Territory
and carry out its obligations hereunder in compliance with all applicable Legal Requirements and in
accordance with the Commercialization Plan.

          4.7.2 Subject to Section 4.7.4, within *** (***) months after the date on which the first
Regulatory Approval and Pricing Approval are received in a country of the Territory other than a
Minor Market, Mundipharma shall thereafter and continuously during the Term use Commercially
Reasonable Efforts to Commercialize the Licensed Products in the Field in such country within the
Territory. Subject to Section 4.7.4, within *** (***) months after the date on which the first
Regulatory Approval and Pricing

 

 

Approval are received in a Minor Market, Mundipharma shall use Commercially Reasonable Efforts
to Commercialize the Licensed Products in the Field in such Minor Market country. Mundipharma
shall notify BioCryst within *** (***) days of the date of the First Commercial Sale of a Licensed
Product in each country within the Territory.

          4.7.3 Mundipharma is entitled to engage contract sales organizations to supplement or
complement Mundipharma’s sales force in the Territory, provided that Mundipharma shall at all times
remain primarily responsible and liable for all such activities as if such activities had been
undertaken by Mundipharma, and provided that BioCryst is notified in writing in advance of such
engagement.

          4.7.4 ***.

     4.8 Promotion. No later than *** (***) days prior to the anticipated date of the First
Commercial Sale, Mundipharma shall provide BioCryst with a representative example of its proposed
Promotional Literature, and BioCryst shall have the right to make comments or observations thereon
within *** (***) days of its receipt thereof. Thereafter, Mundipharma shall provide BioCryst with
a representative example of its Promotional Literature as soon as practicable after BioCryst’s
written request, such a request shall not be made more than once each calendar year, and BioCryst
shall have the right to make comments or observations thereon within *** (***) days of its receipt
thereof. Notwithstanding BioCryst’s right to make comments or observations, all decisions with
respect to Mundipharma’s Promotional Literature shall be made by Mundipharma in its sole discretion
after in good faith taking into consideration BioCryst’s comments and observations.

     4.9 Costs of Commercialization. BioCryst shall be responsible for all costs associated with
the Commercialization of Licensed Products outside of the Territory. Mundipharma or its Associates
shall be responsible for all costs associated with the Commercialization of Licensed Products
within the Territory.

     4.10 BioCryst’s Rights Outside the Territory.

          4.10.1 BioCryst shall control and conduct at its own expense the Development and
Commercialization of the Licensed Products outside the Territory. BioCryst shall inform
Mundipharma within *** (***) days before making any submissions to the FDA and will provide to
Mundipharma within *** (***) days of Mundipharma’s written request an electronic or hard copy of
BioCryst’s FDA submissions.

          4.10.2 ***.

     4.11 Report of Results, Data and Information.

          4.11.1 All preclinical and clinical data generated by or on behalf of a Party shall be owned
by such Party and shall constitute a part of such Party’s know-how.

          4.11.2 Each Party shall provide to the other Party, within *** (***) days of the completion of
each draft study report, copies of all material pre-clinical and clinical data relating to the
Compound or the Licensed Products relating to any of the BioCryst Trials, the Mundipharma Trials,
any Joint Trials conducted by the Parties and any Independent Trials in which the Non-Sponsoring
Party has shared the Out-of-Pocket Development Costs in accordance with Section 4.3.4.3. For
purposes of this Section, data shall be considered material if it (i) is intended for use in any
submission to any Regulatory Authority or any other Governmental Authority, or (ii) could have any
significant effect, whether positive or negative, on the marketing of the Compound or the Licensed
Products. For avoidance of doubt, this Section includes, but is not limited to, the exchange of
electronic databases in a mutually agreeable format.

          4.11.3 Each Party shall provide to the other Party, within *** (***) days of submission,
copies of all material submissions to a Regulatory Authority relating to the Licensed Products or
the Compound. Each Party shall provide the other party with copies of draft submissions upon
request and

 

 

shall allow the other Party a reasonable time period (which in no event shall be less than ten
days) to review and comment on the same. All comments shall be considered in good faith. In
addition, each Party shall provide to the other Party, within *** (***) days of its receipt or
submission, all material correspondence (including e-mail communications, summaries of telephone
calls and other forms of correspondence) with a Regulatory Authority or any other Governmental
Authority, relating to the Licensed Products or the Compound.

          4.11.4 Information disclosed under this Section 4.11 shall be treated as information that is
the subject of the confidentiality provisions set forth below.

     4.12 Interactions with Government Agencies.

          4.12.1 Exchange of Safety Information.

4.12.1.1 The Parties will cooperate in the collection, review, assessment,
tracking and filing with appropriate Regulatory Authorities of information
related to adverse events associated with the Licensed Products in
accordance with applicable FDA regulations, including without limitation 21
CFR §§ 312.32, 314.80, and with comparable Legal Requirements in countries
within the Territory. As soon as reasonably practicable after the Effective
Date, but in no event later than ninety (90) days after the Effective Date,
the pharmacovigilance departments of both Parties shall meet (such meeting
may occur in person, via videoconference or via conference call) and
determine the approach to be taken for the collection, review, assessment,
tracking and filing of information related to adverse events associated with
the Licensed Products, which shall be documented in a mutually acceptable
agreement (the “Safety Data Exchange Agreement”) between the Parties
(provided, however, that this Agreement shall control in the event of any
conflict between the terms of this Agreement and such Safety Data Exchange
Agreement).

4.12.1.2 Until such time as the Parties have entered into the Safety Data
Exchange Agreement, the Parties will exchange adverse event information,
regardless of causality, involving or associated with the use of the
Licensed Products, on the following schedule:

	 	•	 	Fatal or life-threatening serious adverse event information will
be exchanged within 48 (forty-eight) hours after the receipt of such
information by a Party or by any of the Party’s Associates or
agents.
	 
	 	•	 	All other serious adverse event information will be exchanged
within seven (7) days after the receipt of the information by a
Party or by any of a Party’s Associates or agents.
	 
	 	•	 	Non-serious adverse event information will be exchanged on either
Party’s reasonable request.

4.12.1.3 Serious adverse event information shall be exchanged in a Council
for International Organizations of Medical Sciences (“CIOMS”) I report
format or a substantially similar report format. Non-serious adverse event
information shall be exchanged in a CIOMS II report format or a
substantially similar line-listing format.

4.12.1.4 Absent an express agreement to the contrary, and provided that
Mundipharma timely provides all relevant information to BioCryst, BioCryst
shall be responsible for maintaining a global safety database for the
Licensed

 

 

Products consistent with pharmaceutical industry practice and all applicable
Legal Requirements. Mundipharma shall be responsible for all safety, adverse
events and recalls (including all costs and expenses thereof) within the
Territory and BioCryst shall be responsible for all safety, adverse events
and recalls (including all costs and expenses thereof) outside of the
Territory. Unless otherwise set forth in the Safety Data Exchange Agreement,
BioCryst shall be responsible for reporting serious adverse events to the
FDA and Mundipharma shall be responsible for reporting serious adverse
events to Regulatory Authorities in the Territory.

          4.12.2 Review of Regulatory Submissions.

4.12.2.1 Copies of all material submissions (including NDAs and applications
for marketing approval) to the FDA, EMEA and other Regulatory Authorities in
seeking Regulatory Approval of the Licensed Products for the Field and
replies thereto, and, to the extent reasonably practicable, all other
material correspondence with a Regulatory Authority, EMEA and other
Governmental Authorities covering the Compound and the Licensed Products
shall be provided by the submitting Party to the other Party promptly upon
draft completion, but in no event less than *** (***) days before being
submitted or sent, during which time such other Party shall have a
reasonable opportunity to review such submissions or correspondence and
consult with the submitting Party with respect thereto. Information
provided under this provision shall include, but not be limited to:

	 	•	 	Clinical reports of pivotal studies;
	 
	 	•	 	Overviews;
	 
	 	•	 	Pre-clinical and clinical summaries;
	 
	 	•	 	CMC Module 3 files of the NDA;
	 
	 	•	 	Quality overview Module 2 of the NDA; and
	 
	 	•	 	Draft labeling.

4.12.2.2 After any such consultation, and taking into consideration any
comments of the other Party, the submitting Party shall determine the final
form of all material submissions and correspondence in its sole discretion.
Final copies of all material submissions and correspondence shall be
provided by the submitting Party to the other Party. Mundipharma or its
Associates shall own and control all Regulatory Approvals for the Licensed
Products in the Territory. BioCryst or its Associates shall own and control
all Regulatory Approvals for the Licensed Products outside the Territory.

4.12.2.3 Notwithstanding the foregoing Section 4.12.2.2, the submitting
Party shall communicate to the other Party as soon as practicable all
material draft correspondence with a Regulatory Authority, EMEA or other
Governmental Authority pertaining to the labeling of the Compound and the
Licensed Products in the Field and, to the extent reasonably practicable,
the other Party shall have ten (10) Business Days to make comments and
observations thereon. After the receipt of any such comments and
observations, and taking into consideration such comments or observations,
the submitting Party shall determine the final form of all such
correspondence in its sole discretion. Each Party shall provide to

 

 

the other Party a copy of any final labeling. BioCryst and Mundipharma shall
mutually agree upon the final labeling for the Licensed Products within the
Territory which in all events shall refer to BioCryst and the fact that the
Compound is licensed from BioCryst to Mundipharma.

4.12.2.4 Notwithstanding the foregoing, Mundipharma shall provide BioCryst
(within *** (***) days of submission), all summaries and annual reports or
similar which are provided to any Regulatory Authority.

          4.12.3 Governmental Authority Inquiries. Each Party shall notify the other Party within two
(2) Business Days after it receives information about the initiation of any investigation, review
or inquiry by the FDA, EMEA or other Governmental Authority concerning (i) non-clinical or clinical
research relating to the Compound or the Licensed Product; or (ii) the Commercialization of the
Licensed Products.

     4.13 Additional Information. The parties acknowledge that while they have endeavored to
provide for the comprehensive sharing of specific information related to regulatory submissions or
Governmental Authorities under Sections 4.11 and 4.12, there may be additional information related
to the Regulatory Approval of Licensed Products which is not explicitly required to be exchanged
hereunder but which would be helpful or necessary to the Party who does not control such
information. In light of the foregoing, neither party shall unreasonably refuse any request for
such information, and, if and when requested, shall provide such information to the other Party.

     4.14 Parties’ Rights in Communications. Each Party shall have the right to use, either on its
own behalf or that of its other licensees, the communications provided by the other Party under
this Article 4. Each Party shall take all reasonable actions necessary to enable the other Party’s
use of such communications. Each Party shall inform the other of all material communications with
Governmental Authorities or Regulatory Authorities regarding the Development or Commercialization
of the Licensed Product and shall take all reasonable actions necessary to enable the other Party’s
use.

ARTICLE 5 —  UNDERTAKINGS OF BIOCRYST AND MUNDIPHARMA

     5.1 Non-Use and Non-Disclosure. During the Term and thereafter, a Receiving Party shall (i)
treat Confidential Information provided by Disclosing Party as it would treat its own information
of a similar nature, (ii) take all reasonable precautions not to disclose such Confidential
Information to Third Parties without the Disclosing Party’s prior written consent, and (iii) not
use such Confidential Information other than for fulfilling its obligations under this Agreement.
All information related to BioCryst’s licensors and the Pre-Existing Third Party License shall be
deemed to be BioCryst Confidential Information. In the event this Agreement is terminated, all
Confidential Information relating to the Licensed Product and/or the Compound assigned by
Mundipharma to BioCryst shall be deemed to be BioCryst Confidential Information.

     5.2 Authorized Disclosure. Nothing in this Agreement shall prevent either Party or their
respective Associates from disclosing Confidential Information to (i) Governmental Authorities of
any country to the extent required or desirable to secure government approval for the Development,
manufacture or Commercialization of Licensed Products, (ii) Third Parties acting on behalf of such
Party or its Associates, to the extent reasonably necessary for the Development, manufacture or
Commercialization of Licensed Products (and provided that such Party has a written confidentiality
agreement with such Third Party which is as protective of such Confidential Information as the
terms of this Agreement), or (iii) Third Parties to the extent reasonably necessary to market
Licensed Products (and provided that such Party has a written confidentiality agreement with such
Third Party which is as protective of such Confidential Information as the terms of this
Agreement). Each Party shall be ultimately responsible for compliance with the terms of this
Article 5 by its Associates, or any Third Party who receives Confidential Information as a result
of a disclosure of such Confidential Information initially made by such Party.

 

 

     5.3 Technical Assistance.

          5.3.1 BioCryst will provide the assistance and support set forth in Section 5.3.2 to
facilitate Mundipharma’s ability to transfer the technology and the BioCryst Know-How (including,
all information, data, manufacturing formulae, processing specifications and other technical
information) relating to the manufacture and packaging of the Licensed Products, including
analytical methods, to a suitable and qualified Third Party supplier, which will either be an
Associate of Mundipharma or a Third Party reasonably acceptable to BioCryst, under appropriate
intellectual property protection and technology transfer protocols in order to enable Mundipharma’s
designee to validate the manufacturing process for the Licensed Products at the new manufacturing
site and to manufacture the Licensed Products in accordance with the Licensed Product
specifications and the Licensed Product packaging specifications.

          5.3.2 In fulfillment of BioCryst’s obligations under Section 5.3.1, at Mundipharma’s request
upon reasonable notice and during normal business hours, BioCryst will provide an appropriate
employee, who is in BioCryst’s reasonable determination fully qualified with respect to and
familiar with the procedures and processes used in the manufacture of the Licensed Products,
including analytical methods, to provide to Mundipharma’s designee the assistance and technology
required pursuant to this Section 5.3 to enable such designee to commence manufacturing the
Licensed Products, and to observe and assist in the manufacture by such designee, of one validation
batch of the Licensed Products. ***.

     5.4 Manufacturing.

          5.4.1 Mundipharma shall have sole responsibility (including complete decision making authority
and discretion) to manufacture or have manufactured the Licensed Products for Commercialization by
Mundipharma or its Associates in the Field and in the Territory. Manufacturing of the Licensed
Product shall be conducted in accordance with cGMP.

          5.4.2 BioCryst shall introduce Mundipharma or its Associate to BioCryst’s Third Party
manufacturer Sigma-Aldrich Corporation, so that Mundipharma may negotiate with Sigma-Aldrich
Corporation the supply of the active pharmaceutical ingredient (API) for the Licensed Products.

     5.5 Maintenance of License. ***.

     5.6 Guarantees; Opinions.

          5.6.1 ***.

          5.6.2 ***:

5.6.2.1 ***;

5.6.2.2 ***; and

5.6.2.3 ***.

ARTICLE 6 — SIGNING FEE  — PAYMENTS — ROYALTIES 

     6.1 Signing Fee. On or before the *** after the Effective Date, in partial consideration for
the licenses granted to Mundipharma herein, Mundipharma shall pay or cause to be paid a
non-refundable, non-creditable payment of ten million U.S. Dollars ($10,000,000) to BioCryst as a
signing fee (the “Signing Fee”).

 

 

     6.2 Payments. As additional partial consideration for the licenses granted by BioCryst to
Mundipharma, Mundipharma shall pay to BioCryst the following one-time payment amounts (each a
“Payment” and collectively the “Payments”) in U.S. Dollars listed in the table
below.

	 	 	 	 	 
	 	 	Payment
	Event	 	Amount
	First dosing of a patient in the study ***
	 	$	*	**
	EMEA Regulatory Approval for ***.
	 	$	*	**
	EMEA Regulatory Approval for ***.
	 	$	*	**
	EMEA Regulatory Approval for ***.
	 	$	*	**
	EMEA Regulatory Approval for ***.
	 	$	*	**
	EMEA Regulatory Approval for ***.
	 	$	*	**
	EMEA Regulatory Approval for ***.
	 	$	*	**
	EMEA Regulatory Approval for ***.
	 	$	*	**
	Upon the first achievement of annual aggregate Net Sales of
$***
	 	$	*	**
	Upon the first achievement of annual aggregate Net Sales of
$***
	 	$	*	**
	Upon the first achievement of annual aggregate Net Sales of
$***
	 	$	*	**

          6.2.1 Each such Payment shall be deemed earned as of the achievement of the corresponding
event set forth above and shall be paid by Mundipharma within *** (***) days after achievement of
such event.

          6.2.2 It is understood and agreed between the Parties that the above Payments shall be
non-refundable and non-creditable against the Signing Fee or against any royalties whatsoever.

     6.3 Royalties Payable by Mundipharma.

          6.3.1 Royalty Payments. In partial consideration for the licenses granted to Mundipharma,
Mundipharma shall pay to BioCryst:

6.3.1.1 a royalty equal to ***.

6.3.1.2 ***.

          6.3.2 Remittance of Royalties. Payments due under Section 6.3 shall be due quarterly on a
calendar basis, in arrears, and shall be payable no later than *** (***) days after the last
Business Day of each such quarter. The payments due and payable under Section 6.3 shall be
computed for each quarter with sales that occur in a currency other than U.S. Dollars (“Foreign
Currency Sales”) to be converted in accordance with Section 6.6. All payments made by Mundipharma
pursuant to this Section shall be made in immediately available funds by wire transfer to such bank
and account of BioCryst as may be designated from time to time by BioCryst.

     6.3.3 Deductions From Royalties. Mundipharma shall pay or procure the payment of the
Royalties and other monies payable to BioCryst under this Agreement from Bermuda. As of the
Effective

 

 

Date, there is no Legal Requirement in Bermuda for Mundipharma to pay or withhold of any
income or other taxes on behalf of BioCryst with respect to Royalties and any other monies payable
to BioCryst under this Agreement. In the event that after the Effective Date, the payor of such
Royalties and other monies payable to BioCryst under this Agreement shall change to an Associate of
Mundipharma located in a jurisdiction with respect to which such payment or withholding is required
by applicable Legal Requirements, then such income or other taxes shall be deducted from the amount
of such payments, royalties and other monies due to BioCryst and paid to the relevant competent
taxing authority; provided
that (i) Mundipharma shall promptly notify BioCryst of such Legal Requirements in advance of
the payment requiring the withholding; (ii) the sum payable shall be increased as necessary so that
after making all required deductions, BioCryst receives an amount equal to the sum it would have
received had no withholding been made; and (iii) Mundipharma shall furnish BioCryst with proof of
such payments. Mundipharma shall promptly provide BioCryst with any available certificate or other
documentary evidence that might enable BioCryst to support a claim for a refund or a foreign tax
credit with respect to any such tax so withheld or deducted by Mundipharma, and BioCryst shall
promptly (a) file a claim for refund with the relevant taxing authority and (b) pay to Mundipharma
the actual amount of any refund received. Mundipharma and BioCryst will reasonably cooperate in
completing and filing documents required under the provisions of any applicable tax treaty or under
any other applicable law and to take any other reasonable actions, in order to enable Mundipharma
to make such payments to BioCryst without any deduction or withholding, if possible consistent with
Legal Requirements (including by maintaining or changing, as reasonably necessary, the payor of
amounts under this Agreement).

     6.4 Royalty Reports. Each payment made to BioCryst under Section 6.3 shall be accompanied by
a written report, showing Gross Price and Net Sales and the calculation of the same (including all
deductions taken to arrive at Net Sales) together with the calculation of the royalties due for the
quarter for which payment is being made. The report shall detail the amount of Licensed Products
Sold, identified on a country-by-country basis.

     6.5 Records. Each Party shall, and shall cause its Associates to, keep and maintain for ***
(***) years after payment of royalties pursuant to Section 6.3 or Out-of-Pocket Development Costs
pursuant to Section 4.6 complete and accurate books and records in sufficient detail so that Net
Sales and royalties payable hereunder and Out-of-Pocket Development Costs to be reconciled
hereunder can be properly verified.

     6.6 Audit. No more frequently than once during each calendar year during the Term and for ***
(***) years thereafter, each Party shall permit independent auditors appointed by the other Party,
to whom the Party being audited has no reasonable objection and with reasonable notice at any time
during normal business hours, to inspect, audit and copy relevant accounts and records of such
Party for the purpose of verifying the accuracy of the calculation of (i) royalty payments to
BioCryst and the reports which accompanied them, in the case of Mundipharma, or (ii) Out-of-Pocket
Development Costs, reconciliation payments pursuant to Section 4.4 and the reports associated with
them, in respect of both Parties. The independent auditors shall not disclose to the appointing
Party any information other than information relating solely to the accuracy of the accounting and
payments made by the other Party. If such audit determines that payments are due to the appointing
Party, the audited Party shall pay to the other Party any such additional amounts within *** (***)
days of the date on which such auditor’s written report is delivered to the audited Party, unless
such audit report is disputed, in which case the dispute shall be resolved in accordance with
Article 12. If the auditor determines that the audited Party’s payments are in excess of those
required under this Agreement, the appointing Party shall remit the difference to the audited Party
of such amount within *** (***) days of the date on which such auditor’s report is delivered,
unless such audit report is disputed, in which case the dispute shall be resolved in accordance
with Article 12. Any such inspection of records shall be at the appointing Party’s expense unless
such audit discloses an underpayment of any payment of more than *** percent (***%), in which case
the audited Party shall bear the cost of such audit. All payments due shall bear interest
calculated as set forth in Section 13.4 below.

     6.7 Foreign Currency Conversion. Payments made under this Agreement shall be payable in U.S.
Dollars. The payments due and payable under Section 6.3 of this Agreement shall be computed

 

 

for
each calendar quarter with Foreign Currency Sales converted into U.S. Dollars using Mundipharma’s
standard accounting procedures, consistently applied, which as of the Effective Date is calculated
at the average of the daily foreign exchange mid-range rates, as quoted in the Bloomberg Financial
Network (or another publication as notified by Mundipharma to BioCryst in writing), for such
calendar quarter.

     6.8 Nature of Payments. All payments made hereunder shall be nonrefundable and noncreditable.

     6.9 Payments to Third Parties. BioCryst shall maintain the Pre-Existing Third Party License
at its own cost. In the event that a final court order or other binding order or ruling requires
the payment of a royalty or other payment to a Third Party patent holder in respect of sales of the
Licensed Products in the Territory (other than pursuant to the Pre-Existing Third Party License),
Mundipharma shall pay such royalty or other payments in exchange for a grant of all licenses from
such Third Party necessary to make, have made, use, offer for sale, sell or import Licensed
Products in the Territory, with such royalty or other payment to be shared with BioCryst in
accordance with Section 8.4.

 ARTICLE 7 —  TRADEMARK AND DOMAIN NAMES

     7.1 Use of Trademark and BioCryst Logo.

          7.1.1 Trademark. Unless otherwise set forth herein, the Licensed Products shall be
advertised, marketed, distributed and sold by Mundipharma or its Associates only under the
Trademark and the company logos of Mundipharma and its Associates. The Trademark shall appear on
all Promotional Literature in a form and manner to be agreed by the Parties, but in all events
shall be prominently displayed.

          7.1.2 BioCryst Logo. BioCryst’s company logo (the “BioCryst Logo”) shall appear on all
Promotional Literature in a form and manner to be agreed upon by the Parties. The BioCryst Logo is
and shall remain the sole property of BioCryst or its Associates, and BioCryst hereby grants to
Mundipharma during the Term of this Agreement a limited non-exclusive, royalty-free right to use
the BioCryst Logo on Promotional Literature in the Field in the Territory. BioCryst shall be
responsible, at its sole cost, for registration, maintenance, renewal and defense of the BioCryst
Logo in the Territory in its sole discretion.

     7.2 Right to Use Trademark. In performing its obligations pursuant to this Agreement,
Mundipharma shall have the exclusive right to use the Trademark in connection with the Development
and Commercialization of the Licensed Products in the Territory. Mundipharma acknowledges that (i)
BioCryst is the sole and exclusive owner of the Trademark and the BioCryst Logo and all
combinations, forms and derivatives thereof that may hereafter be approved by BioCryst for use by
Mundipharma or its Associates hereunder, (ii) Mundipharma’s right to use the Trademark shall be
governed exclusively by this Agreement, and (iii) all goodwill from use of the Trademark and the
BioCryst Logo by Mundipharma or its Associates shall inure solely to the benefit of BioCryst.
Mundipharma further acknowledges the value of the goodwill associated with the Trademark and
acknowledges that the Trademark, the BioCryst Logo, and all the rights therein, and goodwill
attached thereto, belong exclusively to BioCryst. Mundipharma shall cooperate reasonably and in
good faith with BioCryst, at BioCryst’s cost, for the purpose of securing, preserving and
protecting BioCryst’s rights in and to the Trademark in those jurisdictions set out in Schedule
7.2 hereto which are part of Mundipharma’s Territory, but for purposes clarity, Mundipharma shall
have no obligations with respect to those jurisdictions set out in Schedule 7.2 that are not part
of Mundipharma’s Territory. Mundipharma shall not use the Trademark except on the Promotional
Literature in accordance with this Agreement, and shall use the Trademark strictly in compliance
with all applicable laws. Mundipharma shall duly display all other notices with respect to the
Trademark on the Promotional Literature, as are or may be required by the trademark laws and
regulations applicable in each applicable jurisdiction. BioCryst shall be responsible for paying
the costs for prosecuting the Trademark in those jurisdictions set forth on Schedule 7.2 hereto.

 

 

     7.3 New Territory. Before launching the Licensed Products in any jurisdiction of the
Territory not listed on Schedule 7.2 hereto (“New Territory”), Mundipharma will notify BioCryst of
Mundipharma’s intention to launch the Licensed Products in such New Territory in sufficient time
for BioCryst to make any and all necessary or appropriate filings for trademark or other protection
in the New Territory. BioCryst will make such filings as BioCryst, in its sole discretion, deems
appropriate. Mundipharma will fully cooperate with BioCryst as BioCryst may request in furtherance
of BioCryst’s application, prosecution, registration, or maintenance of any such filings. If
BioCryst notifies Mundipharma that BioCryst declines to file, maintain, or renew an application or
registration in any New Territory (such notice to be given by BioCryst to Mundipharma within 30
days of receipt of Mundipharma’s notice), Mundipharma will be
entitled to file, maintain, and/or renew such applications or registrations at Mundipharma’s
expense, in its own name. Upon expiration or termination of this Agreement, the provisions of
Section 11.3.5 shall apply to the assignment of Mundipharma’s right, title and interest in and to
such Trademarks to BioCryst.

     7.4 Secondary Marks. Should Mundipharma discover that the laws or regulations of any country
of the Territory prohibit the use of the Trademark in that country, or if the JCC reasonably
determines that such use of the Trademark would be commercially unattractive in any country of the
Territory (e.g. due to the meaning of the Trademark in another language), Mundipharma will choose a
new trademark, which shall be reasonably acceptable to BioCryst (each such new trademark a
"Secondary Mark”, and collectively the “Secondary Marks”) under which to Develop and Commercialize
the Licensed Products. Mundipharma will be entitled to and obligated to file, maintain, and/or
renew an application or registrations for such Secondary Marks at Mundipharma’s expense, in its own
name in such country(ies) of the Territory. Upon expiration or termination of this Agreement, the
provisions of Section 11.3.5 shall apply to the assignment of Mundipharma’s right, title and
interest in and to such Secondary Marks to BioCryst. Unless otherwise specified in this Agreement,
the parties agree that all rights of BioCryst and all obligations of Mundipharma under this
Agreement with respect to the Trademark shall be extended to also apply to all Secondary Marks.

     7.5 Obligation to Enter into Trademark License. If required by BioCryst, Mundipharma or its
Associates shall enter into an appropriate Trademark license mutually agreed by the Parties to
permit and regulate the use of the Trademarks by Mundipharma in the Territory in accordance with
Section 7.2.

     7.6 New Trademarks. In the event that BioCryst applies for the registration of or has
available an additional or alternative trademark for use in connection with the Licensed Products
in the Territory, BioCryst shall promptly offer to Mundipharma such additional or alternative
trademark for use in connection with the Licensed Products, provided that the JSC agrees that such
additional or alternative trademark should be used in connection with the Licensed Products in the
Territory. If the JSC so agrees, such additional or alternative trademark shall be included within
the meaning of the term “Trademarks”. Mundipharma will upon request and at BioCryst’s cost render
to BioCryst all reasonable assistance, in the obtaining of such registration in the Territory and
shall do all acts and execute all documents necessary for obtaining or vesting registration in the
name of BioCryst or its designee.

     7.7 Property in Trademark and Payment of Fees. The Trademark is and shall remain the sole
property of BioCryst or its Associates. BioCryst or its Associates shall pay all fees falling due
on the renewal of the Trademark in the jurisdictions of the Territory set out on Schedule 7.2
hereto and in any New Territory in which BioCryst registers the Trademark pursuant to Section 7.3.
Each Party will fully cooperate with the other Party as the other Party may request in furtherance
of such other Party’s application, prosecution, registration, or maintenance of any filings for the
Trademark and all Secondary Marks throughout the Territory.

     7.8 Domain Names. Mundipharma may and upon written agreement by BioCryst (which shall not be
unreasonably withheld), at its expense, apply for, acquire, register, maintain and use in the
Territory any domain names specific to countries in the Territory that incorporate the Trademark or
are used primarily in connection with the Licensed Products, provided that Mundipharma shall
transfer ownership of any such domain name registrations to BioCryst upon expiration or termination
of this Agreement under Sections 11.2.1 or 11.2.3.3 at Mundipharma’s reasonable, documented cost of

 

 

acquiring and maintaining such domain name registrations and transferring such domain names to
BioCryst, except in the event of termination under Sections 11.2.3.2 or 11.2.3.3, in which case
Mundipharma shall make such transfer free of charge to BioCryst. For the avoidance of doubt, any
domain name registrations for Mundipharma corporate websites that include as part of the website
content the Trademark shall not be transferred to BioCryst on expiration or termination, but
Mundipharma shall promptly remove all references to the Trademark and the Licensed Products from
such Mundipharma websites on expiration or termination of this Agreement.

     7.9 Infringement. With regard to all jurisdictions listed on Schedule 7.2 including any New
Territory in which an application is filed or registration is obtained in BioCryst’s name,
Mundipharma
agrees to notify BioCryst of any conduct on the part of Third Parties that it deems to be a
potential infringement, violation, or an act of unfair competition or dilution of the Trademark.
For all territories in which BioCryst is the owner of the Trademark, BioCryst will have the first
right, in its sole discretion and at its expense, to take whatever action it deems commercially
appropriate to stop such infringement, including the bringing of an action for infringement or
dilution of the Trademark or for unfair competition with respect thereto. BioCryst will
exclusively control the prosecution or settlement of any such action and will bring such action in
the name of BioCryst only or in the name of both BioCryst and Mundipharma, as it deems appropriate.
Mundipharma agrees, at BioCryst’s expense, to cooperate with BioCryst in any action and to provide
BioCryst with all information and materials reasonably requested by BioCryst. BioCryst will have
the right to retain any monetary proceeds, damages, and other relief awarded in any such action or
settlement thereof.

     7.10 Step-In. If BioCryst notifies Mundipharma in writing that it is not taking any such
action (such notice to be provided within 30 days of BioCryst’s receipt of Mundipharma’s notice) or
if BioCryst fails to commence to take appropriate action to stop such infringement within 30 days
of BioCryst’s receipt of Mundipharma’s notice, then and only then will Mundipharma have the right,
at its expense, following prior written notice to BioCryst, to take whatever action is necessary to
stop such infringement, including the bringing of an action for infringement or dilution of the
Trademark or for unfair competition with respect thereto. Mundipharma will exclusively control the
prosecution or settlement of any such action and will bring such action in the name of both
BioCryst and Mundipharma. BioCryst agrees, at Mundipharma’s expense, to cooperate with Mundipharma
in any such action and provide Mundipharma with all information and materials reasonably requested
by Mundipharma. Mundipharma will have the right to retain any monetary proceeds, damages, and
other relief awarded in any such action or settlement thereof.

ARTICLE 8 — LITIGATION, PATENT PROSECUTION AND ROYALTY OFFSET

     8.1 Litigation.

          8.1.1 Each Party shall promptly notify the other in writing (i) of any suspected or threatened
infringement of a BioCryst Patent or a Mundipharma Patent by a Third Party in the Territory and in
the Field, (ii) of any known or suspected unauthorized use or misappropriation by a Third Party of
any BioCryst Know-How or any Mundipharma Know-How in the Territory and in the Field; and (iii) of
any assertion or claim of alleged patent infringement by Mundipharma or its Associates with respect
to the Development, Commercialization, manufacture, use, sale, offer for sale or importation of the
Compound or the Licensed Products in the Territory, and shall provide the other Party with all
evidence in its possession that tends to prove the Third Party infringement or unauthorized use or
misappropriation described in clauses (i) or (ii); or that tends to negate the alleged infringement
described in clause (iii); in the case of each of clauses (i), (ii) and (iii), to the extent such
Party becomes aware of it.

          8.1.2 BioCryst shall promptly advise Mundipharma of any events in the United States or Canada
of which BioCryst becomes aware that may have a material bearing on the validity or enforceability
of the BioCryst Patents in the Field and in the Territory and shall inform Mundipharma of
BioCryst’s plan, if any, to commence proceedings or to take other appropriate action in response to
such events. BioCryst shall consider Mundipharma’s advice and comments in good faith.

 

 

          8.1.3 If Mundipharma or any of its Associates becomes a party to a suit by a Third Party in
any country of the Territory and it is alleged in the suit that Mundipharma’s or its Associate’s
actions in the Territory with regard to Licensed Products infringe the Third Party’s intellectual
property rights, then until such litigation is concluded, ***% of the royalties from said country
that may accrue after the institution of such suit shall be paid to BioCryst, and the other ***% of
such royalties shall be placed in a separate fund hereinafter referred to as a “Defense Fund”.
Mundipharma may draw against such Defense Fund to satisfy therefrom all of the reasonable expenses
of defending such suit as well as any damages that might be awarded or agreed upon. Any monies
that accrue in the Defense Fund that are not required to satisfy such expenses and/or damages
and/or agreed settlement in such litigation shall be paid to BioCryst within *** (***) days after
the non-appealable conclusion of such litigation.

          8.1.4 Within a period of *** (***) days after Mundipharma provides or receives written notice
under 8.1.1 (“Decision Period”), Mundipharma, in its sole discretion, shall decide whether or not
to initiate a suit or take other appropriate action in the Field and in the Territory and shall
notify BioCryst in writing of its decision (“Suit Notice”). The Suit Notice shall provide a
description of the suit or action contemplated by Mundipharma and shall provide details concerning
the causes of action and grounds therefore.

          8.1.5 ***.

          8.1.6 Upon written request, the Party bringing suit or taking action in the Territory and in
the Field (“Initiating Party”) shall keep the other Party informed of the status of any such suit
or action and shall provide the other Party with copies of all substantive documents and
communications filed in such suit or action. The Initiating Party shall have the sole and
exclusive right to select counsel for any such suit or action.

          8.1.7 The Initiating Party shall, except as provided below, pay all expenses of the suit or
action, including, without limitation, the Initiating Party’s attorneys’ fees and court costs. Any
damages, settlement fees or other consideration received as a result of a suit or action initiated
by Mundipharma shall be divided *** percent (***%) to Mundipharma, *** percent (***%) to BioCryst,
and *** (***%) to licensors under the Pre-Existing Third Party License after Mundipharma deducts
from the damages, settlement fees or other consideration received its actual counsel fees and
out-of-pocket expenses. Any damages, settlement fees or other consideration received as a result
of a suit or action initiated by BioCryst shall be divided *** percent (***%) to BioCryst, ***
percent (***%) to Mundipharma and *** (***%) to licensors under the Pre-Existing Third Party
License after BioCryst deducts from the damages, settlement fees or other consideration received
its actual counsel fees and out-of-pocket expenses.

          8.1.8 If the Initiating Party believes it reasonably necessary, upon written request the other
Party shall join as a Party to the suit or action but shall be under no obligation to participate
except to the extent that such participation is required as the result of its being named a Party
to the suit or action. At the Initiating Party’s written request, the other Party shall offer
reasonable assistance to the Initiating Party in connection therewith at no charge to the
Initiating Party except for reimbursement of reasonable out-of-pocket expenses incurred by the
other Party in rendering such assistance. The other Party shall have the right to participate and
be represented in any such suit or action by its own counsel at its own expense.

          8.1.9 When Mundipharma is the Initiating Party, Mundipharma shall not settle, consent to
judgment or otherwise voluntarily dispose of the suit or action without the prior written consent
of BioCryst, which consent shall not be unreasonably withheld. When BioCryst is the Initiating
Party, BioCryst shall not settle, consent to judgment or otherwise voluntarily dispose of the suit
or action without discussing such action with Mundipharma and considering any objection by
Mundipharma in good faith.

     8.2 Patent Prosecution.

          8.2.1 BioCryst shall prepare, file, prosecute and maintain (hereinafter “Patent Activities”)
the BioCryst Patents in the Territory, and Mundipharma shall reimburse BioCryst for its

 

 

reasonable expenses incurred after the Effective Date in relation thereto (including, but not
limited to, official patent office fees, attorney fees, and out-of-pocket expenses). BioCryst
shall consult with Mundipharma as to the Patent Activities, and shall furnish to Mundipharma copies
of all substantive documents relevant to the Patent Activities for the BioCryst Patents, all in
sufficient time (at least one week) before any action by BioCryst is due, to allow Mundipharma to
provide comments thereon. BioCryst shall consider Mundipharma’s comments in good faith.
Mundipharma shall cooperate with BioCryst in all reasonable ways in connection with the Patent
Activities for the BioCryst Patents.

          8.2.2 Mundipharma shall conduct the Patent Activities in respect of the Mundipharma Patents at
its own expense in the Territory. Mundipharma shall consult with BioCryst as to the Patent
Activities for the Mundipharma Patents, and shall furnish to BioCryst copies of all substantive
documents relevant to the Patent Activities for the Mundipharma Patents, all in sufficient time (at
least one week) before any action by Mundipharma is due, to allow BioCryst to provide comments
thereon. Mundipharma shall consider BioCryst’s comments in good faith. BioCryst shall cooperate
with Mundipharma in all reasonable ways in connection the Patent Activities for the Mundipharma
Patents.

     8.3 Registration of Patent License. Upon request of either Party, the Parties shall enter
into an appropriate memorandum of this license mutually agreed by the Parties which shall be
recorded, as required or appropriate, in the patent or governmental office of any country or
countries in the Territory in which either Party has a patent pending or granted.

     8.4 Royalty Offset. If Mundipharma shall be subject to a final court or other binding order
or ruling requiring the payment of a royalty or other payment to a Third Party holding patents to
the Compound itself, but not to formulations of the Compound or methods of use or administration,
or if the parties mutually agree in good faith that it is in the parties’ best commercial interests
to settle a Third Party patent infringement proceeding initiated against Mundipharma or its
Associates in the Territory on the basis of patents to the Compound itself, but not formulations of
the Compound or methods of use or administration, by taking a license from a Third Party patent
holder in any country in exchange for a royalty or other payment in respect of sales of the
Licensed Products, then the amount of Mundipharma’s royalty payments to BioCryst under Section 6.3
with respect to Net Sales shall be reduced by the amount of the royalty or other payment made to
such Third Party patent holder pursuant to such order, ruling or license, but in no event shall
such reduction exceed *** percent (***%) of such royalties payable to BioCryst.

ARTICLE 9 — REPRESENTATIONS AND WARRANTIES

     9.1 BioCryst’s Representations and Warranties. BioCryst hereby represents and warrants the
following to Mundipharma as of the Effective Date:

          9.1.1 BioCryst is a company duly organized, validly existing, and in good standing under the
laws of Delaware, with its principal place of business as indicated in the preamble of this
Agreement. BioCryst (i) is duly qualified as a corporation and in good standing under the laws of
each jurisdiction where its ownership or lease of property or the conduct of its business requires
such qualification, where the failure to be so qualified would have a material adverse effect on
its financial condition or its ability to perform its obligations under this Agreement; (ii) has
the requisite corporate power and authority and the legal right to conduct its business as now
conducted and hereafter contemplated to be conducted; (iii) has all necessary licenses, permits,
consents, or approvals from or by, and has made all necessary notices to, all governmental
authorities having jurisdiction, to the extent required for such ownership and operation; and (iv)
is in compliance with its instrument of corporate formation and by-laws or similar corporate
governance rules.

          9.1.2 The execution, delivery and performance of this Agreement by BioCryst and all
instruments and documents to be delivered by BioCryst hereunder (i) are within its corporate power;
(ii) are not in contravention of any provision of its instrument of corporate formation and by-laws
or similar corporate governance rules; (iii) to BioCryst’s knowledge do not violate any law or
regulation or any order or decree of any court of governmental instrumentality; (iv) do not violate
any terms of any indenture,

 

 

mortgage, deed of trust, lease, agreement, or other instrument to which it is a party or by
which such entity or any of its property is bound, which violation would have a material adverse
effect on its financial condition or on its ability to perform its obligations under this
Agreement; and (v) do not require any filing or registration with or the consent or approval of any
governmental body, agency, authority or any other Person, which has not been made or obtained
previously, including any consent required under the Pre-Existing Third Party License (other than
approvals required under the Regulatory Approvals required for the sale of Licensed Products and
filings with regulatory authorities required in connection with Licensed Products).

          9.1.3 This Agreement has been duly executed and delivered by BioCryst and constitutes a legal,
valid and binding obligation of BioCryst, enforceable against it in accordance with its terms,
except as such enforceability may be limited by the availability of equitable remedies.

          9.1.4 To the knowledge of BioCryst, BioCryst has complied with all Legal Requirements in
connection with the prosecution of the BioCryst Patents, including without limitation the duty of
candor owed to any patent office under such laws, rules and regulations.

          9.1.5 BioCryst has the right to grant Mundipharma the rights and licenses described in this
Agreement.

          9.1.6 BioCryst has not granted any rights with respect to (i) the Compound or the Licensed
Products in the Territory, or (ii) the BioCryst Patents or the BioCryst Know-How in the Field in
the Territory, in each case to any person or entity other than Mundipharma.

          9.1.7 There are no claims or investigations pending or threatened against BioCryst or any of
its Associates, at law or in equity, or before or by any governmental authority relating to the
matters contemplated under this Agreement that would materially adversely affect BioCryst’s ability
to perform its obligations hereunder or thereunder.

          9.1.8 Neither BioCryst nor any of its Associates is under any obligation to any person,
contractual or otherwise, that is in violation of the terms of this Agreement or that would impede
the fulfillment of BioCryst’s obligations hereunder. Neither BioCryst nor any of its Associates
will enter into any obligation to any person, contractual or otherwise, that is in violation of the
terms of this Agreement or that would impede the fulfillment of BioCryst’s obligations hereunder.

          9.1.9 No employee of BioCryst has been debarred or is the subject of debarment proceedings by
any Regulatory Authority. BioCryst shall not use in connection with its performance of its
obligations or duties or its exercise of its rights under this Agreement (including, without
limitation, the Development of any Licensed Products) any employee, consultant or investigator that
has been debarred or the subject or debarment proceedings by any Regulatory Authority.

          9.1.10 To the knowledge of BioCryst, in accordance with the terms hereof, BioCryst has not
received written notice that the exercise of Mundipharma’s rights granted under this Agreement
infringes any Third Party intellectual property rights, and to the knowledge of BioCryst, without
inquiry or investigation, the exercise of Mundipharma’s rights granted under this Agreement, in
accordance with the terms hereof, will not infringe or conflict with any Third Party intellectual
property rights.

          9.1.11 All material renewal and maintenance fees due as of the Effective Date with respect to
the prosecution and maintenance of the BioCryst Patents and the Trademark within the U.S. have been
paid, except as would not have a material adverse effect on Mundipharma’s rights hereunder.

          9.1.12 BioCryst has allowed, and will continue to allow, Mundipharma access to all material
information in its possession or control (i) containing the results of all preclinical testing and
human clinical testing of Licensed Product in its possession or control and (ii) concerning side
effects, injury, toxicity or sensitivity reaction and incidents or severity thereof with respect to
Licensed Product.

 

 

          9.1.13 there is no action or proceeding related to, nor has BioCryst received any written
notice of termination under, the Pre-Existing Third Party License, and to the knowledge of
BioCryst, BioCryst is not in default of any material obligation under the Pre-Existing Third Party
License;

          9.1.14 BioCryst has not licensed or granted any rights in connection with BCX-4208 to any
Third Party in the Field, and BioCryst is under no contractual or other obligation to develop
BCX-4208 in the Field;

          9.1.15 BioCryst has not licensed or granted any rights in connection with the Compound or the
Licensed Products to any Third Party outside the Field, and BioCryst is under no contractual or
other obligation to develop the Compound or the Licensed Products outside the Field.

BioCryst acknowledges that Mundipharma is relying, and is entitled to rely, on the foregoing
representations, warranties and covenants.

     9.2 Mundipharma’s Representations and Warranties. Mundipharma hereby represents and warrants
the following to BioCryst as of the Effective Date:

          9.2.1 Mundipharma (i) is a corporation duly organized, validly existing, and in good standing
under the laws of Bermuda, with its principal place of business as indicated in the preamble of
this Agreement; (ii) is duly qualified as a limited liability company and in good standing under
the laws of each jurisdiction where ownership or lease of property or the conduct of its business
requires such qualification, where the failure to be so qualified would have a material adverse
effect on the financial condition of Mundipharma or the ability of Mundipharma to perform its
obligations hereunder; (iii) has the requisite corporate power and authority and the legal right to
conduct its business as now conducted and hereafter contemplated to be conducted; (iv) has all
necessary licenses, permits, consents, or approvals from or by, and has made all necessary notices
to, all governmental authorities having jurisdiction, to the extent required for such ownership and
operation; and (v) is in compliance with its certificate of formation and limited liability company
agreement.

          9.2.2 The execution, delivery and performance of this Agreement by Mundipharma and all
instruments and documents to be delivered by Mundipharma hereunder: (i) are within the corporate
power of Mundipharma; (ii) are not in contravention of any provision of the certificate of
formation or limited liability company agreement of Mundipharma; (iii) to the knowledge of
Mundipharma will not violate any law or regulation or any order or decree of any court of
governmental instrumentality; (iv) will not violate the terms of any indenture, mortgage, deed of
trust, lease, agreement, or other instrument to which Mundipharma is a party or by which
Mundipharma or any of its property is bound, which violation would have an adverse effect on the
financial condition of Mundipharma or on the ability of Mundipharma to perform its obligations
hereunder; and (v) do not require any filing or registration with, or the consent or approval of,
any governmental body, agency, authority or any other Person, which has not been made or obtained
previously (other than approvals required under the Regulatory Approvals required for the sale of
Licensed Products and filings with regulatory authorities required in connection with Licensed
Products).

          9.2.3 This Agreement has been duly executed and delivered by Mundipharma and constitutes a
legal, valid and binding obligation of Mundipharma, enforceable against Mundipharma in accordance
with its terms, except as such enforceability may be limited by the availability of equitable
remedies.

          9.2.4 There are no claims or investigations pending or threatened against Mundipharma or any
of its Associates, at law or in equity, or before or by any governmental authority relating to the
matters contemplated under this Agreement that would materially adversely affect Mundipharma’s
ability to perform its obligations hereunder or thereunder.

 

 

          9.2.5 Neither Mundipharma nor any of its Associates is under any obligation to any person,
contractual or otherwise, that is in violation of the terms of this Agreement or that would impede
the fulfillment of Mundipharma’s obligations hereunder. Neither Mundipharma nor any of its
Associates will enter into any obligation to any person, contractual or otherwise, that is in
violation of the terms of this Agreement or that would impede the fulfillment of Mundipharma’s
obligations hereunder.

          9.2.6 No employee of Mundipharma has been debarred or is the subject of debarment proceedings
by any Regulatory Authority. Mundipharma shall not use in connection with its performance of its
obligations or duties or its exercise of its rights under this Agreement (including, without
limitation, the Development of any Licensed Products) any employee, consultant or investigator that
has been debarred or the subject or debarment proceedings by any Regulatory Authority.

          9.2.7 Mundipharma (and its Associates) does not currently own or control rights underlying any
PNP Inhibitor, and currently has no current plans to develop or acquire any PNP Inhibitor other
than the Compound.

     9.3 Mundipharma represents and covenants that it has received all information that it or any
of its Associates has specifically requested from BioCryst with respect to the transactions
contemplated hereby, and has had a reasonable opportunity to ask questions of BioCryst and its
representatives; and BioCryst has answered all inquiries made by Mundipharma, its Associates and
their representatives. Each Party has had the opportunity to verify the accuracy of the
representations and warranties of the other Party and evaluate the merits and risks of the
transactions as contemplated by this Agreement. Furthermore, (i) no oral representations or
warranties have been made by BioCryst to Mundipharma upon which Mundipharma is relying in
connection with the transactions contemplated by this Agreement; (ii) no oral representations or
warranties have been made by Mundipharma to BioCryst upon which BioCryst is relying in connection
with the transactions contemplated by this Agreement; (iii) no written representations or
warranties have been made by BioCryst to Mundipharma upon which Mundipharma is relying in
connection with the transactions contemplated by this Agreement, other than as set forth in this
Agreement; (iv) no written representations or warranties have been made by Mundipharma or any of
its Associates to BioCryst upon which BioCryst is relying in connection with the transactions
contemplated by this Agreement, other than as set forth in this Agreement and in the Guarantees
from Mundipharma’s Associates in the form of Schedule 5.6; (v) no oral or written information
furnished to Mundipharma or Mundipharma’s representatives in connection with the transactions
contemplated by this Agreement were in any way inconsistent with the representations and warranties
of BioCryst in this Agreement; and (vi) no oral or written information furnished to BioCryst or
BioCryst’s representatives in connection with the transactions contemplated by this Agreement were
in any way inconsistent with the representations and warranties of Mundipharma in this Agreement.

     9.4 EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT, THE FOREGOING REPRESENTATIONS AND
WARRANTIES ARE IN LIEU OF ALL OTHER REPRESENTATIONS AND WARRANTIES, EXPRESS OR IMPLIED, INCLUDING
WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF COMPOUND
AND LICENSED PRODUCTS. SPECIFICALLY, (i) BIOCRYST MAKES NO OTHER REPRESENTATIONS OR WARRANTIES IN
RELATION TO THE BIOCRYST PATENTS, THE BIOCRYST KNOW-HOW, THE COMPOUND (INCLUDING COMPOUND AND
LICENSED PRODUCTS SUPPLIED HEREUNDER), THE TRADEMARK OR THE LICENSED PRODUCTS, AND (ii) MUNDIPHARMA
MAKES NO OTHER REPRESENTATIONS OR WARRANTIES IN RELATION TO THE MUNDIPHARMA PATENTS, THE
MUNDIPHARMA KNOW-HOW, ANY SECONDARY TRADEMARKS, THE COMPOUND OR THE LICENSED PRODUCTS. BIOCRYST
SHALL HAVE NO LIABILITY WHATSOEVER ARISING OUT OF OR RELATING TO COMPOUND OR LICENSED PRODUCTS
SUPPLIED TO MUNDIPHARMA HEREUNDER.

ARTICLE 10 — INDEMNITY AND PRODUCT LIABILITY

     10.1 Indemnification and Defense by Mundipharma. Mundipharma shall, at its sole expense,
indemnify, defend and hold harmless BioCryst, its licensors under the Pre-Existing Third Party

 

 

License, Associates and its or their respective officers, directors, agents and employees (the
“BioCryst Indemnitees”) against any Third Party Claim arising out of or resulting from (i) gross
negligence or willful misconduct by Mundipharma, its Associates or sublicensees, and/or (ii)
Licensed Products manufactured, imported, marketed, distributed or sold by or on behalf of
Mundipharma or its Associates, or sublicensees, and all activities related thereto.

     10.2 Indemnification and Defense by BioCryst. BioCryst shall, at its sole expense, indemnify,
defend and hold harmless Mundipharma, its Associates and its or their respective officers,
directors, agents and employees (the “Mundipharma Indemnitees”) against any Third Party Claim
arising out of or resulting from (i) gross negligence or willful misconduct by BioCryst, its
Associates or sublicensees (other than Mundipharma), and/or (ii) Licensed Products manufactured,
imported, marketed, distributed or sold by or on behalf of BioCryst or its Associates, or
sublicensees (other than Mundipharma or its Associates), and all activities related thereto.

     10.3 Defense Procedures. BioCryst and Mundipharma shall notify each other promptly in writing
upon learning of any Third Party Claim in respect of which indemnification may be sought under
Section 10.1 or Section 10.2, as the case may be. The indemnifying Party shall actively defend
against (or settle if appropriate) every Third Party Claim using counsel approved by the
indemnified Party, such approval not to be unreasonably withheld or delayed, shall promptly inform
the indemnified Party and its attorneys of all developments concerning the indemnified Party and
shall generally consult with the indemnified Party regarding the strategy of the defense of any
Third Party Claim. To the extent allowed by law, the BioCryst Indemnitees and the Mundipharma
Indemnitees, as the case may be, shall reasonably cooperate with the indemnifying Party in
defending or settling any such Third Party Claim. No settlement of any Third Party Claim for which
indemnification is sought, shall be made without the prior written approval of the indemnifying
Party. The indemnifying Party will have sole control over the defense and/or settlement, subject
to the BioCryst Indemnitees’ and the Mundipharma Indemnitees’, as the case may be, right to select
and use their own counsel at their sole cost and expense.

     10.4 Insurance. Each Party shall obtain and shall, as long as such Party, directly or
indirectly, is Developing, Commercializing, manufacturing, marketing, testing or distributing the
Licensed Products and for at least *** (***) years thereafter, maintain at such Party’s sole cost
and expense product liability insurance, or shall set up, at its sole cost and expense, a self
insurance arrangement, and such insurance shall meet the following requirements:

          10.4.1 the insurance shall insure such Party against all liability related to the Licensed
Products (whether that Party’s liability arises from its own conduct, that of its Associates,
sublicensees or distributors or by virtue of its participation in this Agreement), including
liability for bodily injury, property damage, wrongful death, and any contractual indemnity
obligations imposed by this Agreement; and

          10.4.2 the insurance shall have a minimum limit of *** U.S. Dollars ($***) per occurrence with
an annual aggregate limit of not less than *** U.S. Dollars ($***).

Each Party shall provide the other with a Certificate of Insurance evidencing such insurance
coverage upon the request of the other Party. Each Party shall be entitled to substitute a program
of self-insurance for all or a part of such Party’s Third Party insurance required hereunder at its
sole option.

     10.5 Survival. Neither the expiration nor termination of this Agreement shall in any way
affect the provisions of this Article 10 or relieve or discharge any Party with respect thereto.
The Parties understand and agree that the representations, warranties, covenants and agreements,
including without limitation those set forth in this Article 10, shall survive without limitation.

     10.6 Disclaimer of Liability for Consequential Damages. IN NO EVENT SHALL ANY PARTY OR ANY OF
ITS RESPECTIVE AFFILIATES BE LIABLE UNDER THIS AGREEMENT FOR SPECIAL, INDIRECT, INCIDENTAL OR
CONSEQUENTIAL DAMAGES, WHETHER IN CONTRACT, WARRANTY, TORT, NEGLIGENCE, STRICT LIABILITY OR
OTHERWISE, INCLUDING, BUT NOT LIMITED TO, LOSS OF PROFITS OR REVENUE, SUFFERED BY BIOCRYST OR
MUNDIPHARMA,

 

 

RESPECTIVELY, UNDER THIS AGREEMENT, EXCEPT (A) TO THE EXTENT OF ANY SUCH DAMAGES PAID TO A
THIRD PARTY AS PART OF A THIRD PARTY CLAIM WHICH IS INDEMNIFIABLE HEREUNDER, AND (B) IN THE EVENT
OF AN INTENTIONAL AND WILLFUL BREACH IN BAD FAITH OF ANY REPRESENTATION, WARRANTY, COVENANT OR
AGREEMENT BY BIOCRYST OR MUNDIPHARMA OR THEIR RESPECTIVE AFFILIATES (AS THE CASE MAY BE) OF THIS
AGREEMENT.

ARTICLE 11 — TERM AND TERMINATION

     11.1 Term.

          11.1.1 This Agreement shall commence on and as of the Effective Date and shall continue for
the Commercial Life of the Licensed Products, unless terminated earlier as set forth below (the
“Term”). As used in this Section 11.1.1, “Commercial Life” shall mean as long as there is any
Development or Commercialization of the Licensed Products in the Territory by Mundipharma, its
Associates or its permitted Third Party sublicensees or distributors.

     11.2 Termination by Parties.

          11.2.1 By Either Party. Either Party may terminate this Agreement immediately on written
notice to the other Party in the event that the Pre-Existing Third Party License expires.

          11.2.2 Termination by BioCryst. BioCryst may terminate this Agreement as follows:

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

11.2.2.2 BioCryst may notify Mundipharma that a Material Default by
Mundipharma has occurred, in which case BioCryst may terminate this
Agreement, without prejudice to Mundipharma’s right to dispute the notified
Material Default in accordance with the dispute resolution procedures set
out in Article 12 and Schedule C. For purposes of example and not
limitation, Mundipharma’s challenge or any Third Party acting on behalf of
Mundipharma to the validity or enforceability of or opposition to any
BioCryst Patents shall be deemed to be a Material Default of this Agreement
and shall give rise to BioCryst’s right to terminate this Agreement pursuant
to this Section 11.2.2.2.

          11.2.3 Termination by Mundipharma. Mundipharma may terminate this Agreement as follows:

11.2.3.1 If BioCryst is generally unable to meet its debts when due, or
makes a general assignment for the benefit of creditors, or there shall have
been appointed a receiver, trustee or other custodian for BioCryst for all
or a substantial part of its assets, or any case or proceeding shall have
been

 

 

commenced or other action taken by or against BioCryst in bankruptcy or
seeking the reorganization, liquidation, dissolution or winding-up of
BioCryst or any other relief under any bankruptcy, insolvency,
reorganization or other similar act or Legal Requirements, and any such
event (other than any such event which shall have been instituted by
BioCryst) shall have continued for sixty (60) days undismissed, unstayed,
unbonded and undischarged, then Mundipharma may, upon notice to Mundipharma,
terminate this Agreement.

11.2.3.2 Mundipharma may notify BioCryst that a Material Default by BioCryst
has occurred, in which case Mundipharma may terminate this Agreement,
without prejudice to BioCryst’s right to dispute the notified Material
Default in accordance with the dispute resolution procedures set out in
Article 12 and Schedule C.

11.2.3.3 Mundipharma may, in its sole discretion upon sixty (60) days’ prior
written notice to BioCryst, terminate this Agreement; provided that
Mundipharma shall pay to BioCryst the applicable Payments, Royalties and
Out-of-Pocket Development Costs accruing on or prior to the termination
date, and will also reimburse BioCryst for all then-committed uncancelable
Third Party costs and expenses accruing for a period of six (6) months after
termination, other than Third Party costs and expenses accruing in any
Independent Trials then being conducted by or on behalf of BioCryst or its
Associates.

11.2.3.4 Mundipharma may terminate this Agreement immediately on written
notice to BioCryst in the event that a Regulatory Approval in the Territory
or other Regulatory Approval anywhere in the world is cancelled, withdrawn
or suspended as a result of a serious safety issue of the Licensed Products.

11.2.3.5 Mundipharma may terminate this Agreement immediately on written
notice to BioCryst in the event that the Pre-Existing Third Party License
terminates. ***.

     11.3 Rights and Obligations of Parties upon Term Expiration or Termination.

          11.3.1 Any termination (i) shall be without prejudice to a Party’s right to damage or legal
redress that a Party hereto may be entitled to for any breach or Material Default of this
Agreement, provided that neither Mundipharma nor BioCryst will incur any liability to the other
Party by rightfully terminating this Agreement as provided in Section 11.2, whether for loss of
goodwill, anticipated profits or otherwise, (ii) shall not release a Party hereto from any
indebtedness, liability or other obligation incurred hereunder by such Party prior to the date of
termination or expiration, (iii) shall allow both parties to immediately exercise their audit
rights under Section 6.4 whether or not such Party had already exercised such rights in that
calendar year, and (iv) shall be without prejudice to a Party’s right to dispute the existence of a
Material Default notified by the other Party as the basis for termination, in which event the
termination of this Agreement shall be held in abeyance pending the outcome of the dispute
resolution procedures set out in Article 12.

          11.3.2 In case of termination of this Agreement, each Party shall promptly pay to the other
Party all amounts due. To the extent not otherwise required by Legal Requirements, in the event of
termination under Sections 11.2.1, 11.2.2, 11.2.3.3, 11.2.3.4 and 11.2.3.5, Mundipharma shall use
all reasonable efforts to return to BioCryst all documents (including copies) of any kind
concerning the Compound or the Licensed Products received from BioCryst and shall promptly,
diligently and continuously provide to BioCryst all assistance reasonably necessary in order assist
BioCryst in transitioning all aspects of the Parties’ relationship hereunder, including but not
limited to all work in progress, regulatory submissions, Mundipharma Patents and Mundipharma
Know-How.

 

 

          11.3.3 In case of termination of this Agreement under Sections 11.2.1, 11.2.2, 11.2.3.3,
11.2.3.4 and 11.2.3.5, the licenses set forth in Article 2 shall terminate, and Mundipharma shall
and does, at no cost to BioCryst, hereby promptly assign to BioCryst all of its right, title and
interest in and to the Mundipharma Know-How and Mundipharma Patents. In case of termination under
Sections 11.2.3.1 and 11.2.3.2, the licenses set forth in Article 2 shall terminate, and
Mundipharma shall transfer and otherwise assign the Mundipharma Know-How and/or Mundipharma Patents
upon payment by BioCryst of such reasonable remuneration as the Parties agree.

          11.3.4 In case of termination of this Agreement by BioCryst under Section 11.2.2, or by
Mundipharma under Sections 11.2.3.3, 11.2.3.4 or 11.2.3.5, Mundipharma shall promptly assign all
right, title and interest in and to its Independent Data to BioCryst free of charge. In case of
termination of this Agreement for any other reason, Mundipharma will assign all right, title and
interest in and to Mundipharma’s Independent Data upon Mundipharma’s receipt of BioCryst’s payment
of fifty percent (50%) of Mundipharma’s Out-of-Pocket Development Costs incurred in Developing such
Independent Data, and unless or until Mundipharma receives such payment, Mundipharma shall not be
required to assign such Independent Data to BioCryst.

          11.3.5 In case of termination of this Agreement by BioCryst under Section 11.2.2 or
termination by Mundipharma under Sections 11.2.3.3 or 11.2.3.4 Mundipharma shall promptly assign
all of its Trademark applications or registrations in any New Territories and any Secondary Marks
owned by Mundipharma to BioCryst free of charge. In case of termination for any reason other than
under Sections 11.2.2, 11.2.3.3 or 11.2.3.4, Mundipharma will assign to BioCryst all right, title,
and interest in and to any such Trademark applications or registrations and any Secondary Marks,
including the goodwill symbolized thereby, promptly upon receipt of BioCryst’s payment of
Mundipharma’s reasonable cost of acquiring, maintaining and transferring such Trademark
applications or registrations and any Secondary Marks.

          11.3.6 Within *** (***) Business Days from the date of notice of termination of this Agreement
under Sections 11.2.1, 11.2.2, 11.2.3.3 and 11.2.3.4, Mundipharma shall commence all action
necessary or advisable to transfer to BioCryst or such entity as BioCryst may designate, all
rights, contracts, applications and authorizations specifically relating to the Licensed Products
which are then held by Mundipharma or its Associates in the Territory, including those of any
Regulatory Authority, reasonably required by BioCryst or its designee to make, use and sell the
Licensed Products and the Compound in the Territory. Mundipharma’s obligation hereunder shall
include, but not be limited to, the execution and delivery of all necessary documents in form
reasonably acceptable to BioCryst in order to complete and fully implement the definitive transfer
and assignment thereof to BioCryst, and to register all such transfers to BioCryst with a
Regulatory Authority of all such rights, applications and/or authorizations, including but not
limited to all IND and NDA applications and Marketing Authorizations. Such transfer shall be made
free of charge to BioCryst, except as set forth in Section 11.3.10.

          11.3.7 The Parties hereby agree that as soon as any transfer pursuant to Section 11.3.6 of all
rights, applications and authorizations has been registered with a Regulatory Authority, BioCryst
or its designee will be the sole owner of said rights, applications and authorizations other than
any Mundipharma technical information, Mundipharma Know-how, or improvements, Mundipharma patents
or patent applications developed by Mundipharma, which do not constitute Mundipharma Know-How or
Mundipharma Patents.

          11.3.8 In case of termination of this Agreement under Sections 11.2.1, 11.2.2, 11.2.3.3
11.2.3.4 and 11.2.3.5, subject to BioCryst making any payments required to be made to Mundipharma
pursuant to Sections 11.3.3, 11.3.4 and 11.3.5, the intent of the Parties is that all rights and
authorizations specifically relating to the Licensed Products, the Compound, the Mundipharma
Know-How, the Mundipharma Patents, the BioCryst Know-How, the BioCryst Patents, the Trademark,
Secondary Marks, and all intellectual property rights therein and ownership thereof, be transferred
or licensed to BioCryst in a manner so that there is no diminution of the Development or
Commercialization of Licensed Products. Mundipharma agrees, and will cause its Associates, or
anyone acting in concert with Mundipharma, to ensure that all assignments and other actions
necessary in order to effectuate the foregoing are promptly

 

 

completed and that neither Mundipharma nor its Associates shall submit any IND application, or
full NDA, or “Paper NDA”, or Abbreviated New Drug Application (ANDA) for the Compound or the
Licensed Products.

          11.3.9 Promptly after notice of any termination, Mundipharma shall provide BioCryst with
copies of all relevant Third Party sublicenses, agreements with clinical research organizations and
other Third Party agreements relating to Licensed Products hereunder, and allow BioCryst *** (***)
days from the date of such delivery to choose whether to assume any or all of such contracts to the
extent allowed by the applicable contract or law. Mundipharma shall, subject to its ability to do
so, assign to BioCryst those Third Party agreements BioCryst chooses to assume.

          11.3.10 If this Agreement is terminated pursuant to 11.2.3.2 as a result of BioCryst’s uncured
Material Breach, then without prejudice to Sections 11.3.3. 11.3.4 and 11.3.5, BioCryst shall
reimburse Mundipharma for Mundipharma’s reasonable out of pocket expenses incurred in the transfer
of rights and documents required hereunder, which expenses shall be pre-approved by BioCryst before
Mundipharma makes the transfers incurring such expenses.

          11.3.11 Upon termination of this Agreement, Sections 4.11, 4.12, 4.13, 5.1, 5.2, 6.2 (to the
extent that the payment obligation accrues prior to termination), 6.3 (to the extent that the
payment obligation accrues prior to termination), 6.4, 6.5, 6.6, 6.8, 9.4, 11.2.3.3 (to the extent
that the Royalties, Payments and/or Out-of-Pocket Development Costs accrue prior to termination and
the committed, uncancellable Third Party costs and expenses accrue during a period of no more than
six months after the termination date) 11.3, 13.7, 13.8, 13.9, 13.13 and 13.16 and Articles 1, 10,
and 12 (and the Exhibits attached thereto) shall survive without limitation.

ARTICLE 12 — DISPUTE RESOLUTION AND GOVERNING LAW 

     12.1 Disputes. Unless otherwise set forth in this Agreement, in the event of a dispute
arising under this Agreement between the Parties and/or their Associates, such dispute shall be
referred to the respective executive officers of the Parties designated below, or their successors,
for good faith negotiations attempting to resolve the dispute. The designated executive officers
are as follows:

	 	 	 	 	 
	 

	 	For Mundipharma:
	 	Regional Director, Europe
	 
	 	 	 	 
	 

	 	For BioCryst:
	 	Chairman and CEO

     12.2 Dispute Resolution.

          12.2.1 Any dispute or claim arising out of or relating to this Agreement (other than with
respect to patent, copyright, trademark or trade secret rights), or to the breach, termination, or
validity of this Agreement, will be resolved as follows: the officers of each Party referred to in
Section 12.1 above will meet to attempt to resolve such dispute by good faith negotiations. If
such officers cannot resolve the dispute within *** days after a Party requests such a meeting,
then each Party will attempt in good faith to settle the dispute by mediation pursuant to Section
12.2.2.

          12.2.2 The mediation of any dispute is to be administered by JAMS or such other mediator as
may be mutually agreed to by the Parties. If mediation is unsuccessful within *** days after the
Parties request mediation pursuant to this Section 12.2.2, the Parties may then resort to the
alternative dispute resolution procedures set forth on Exhibit C.

          12.2.3 Notwithstanding anything to the contrary in Section 12.2.1 or 12.2.2, if either Party
in its sole judgment believes that any such dispute could cause it irreparable harm, such Party (a)

 

 

will be entitled to seek equitable relief in order to avoid such irreparable harm, and (b)
will not be required to follow the procedures set forth in Sections 12.2.1.

     12.3 Governing Law. This Agreement is made in accordance with and shall be governed and
construed under the laws of New York, without regard to its choice of law principles. The parties
hereby irrevocably submit to the jurisdiction of the courts located in the County and State of New
York.

ARTICLE 13 — MISCELLANEOUS

     13.1 BioCryst Sublicensees. Mundipharma acknowledges and agrees that BioCryst may carry out
any of its obligations (or rights) hereunder through one or more sublicensees, Third Party
contractors or subcontractors, provided that BioCryst shall at all times remain primarily
responsible and liable for all such activities as if such activities had been undertaken by
BioCryst, and provided that Mundipharma is notified in writing in advance of such delegation of
obligations to any such sublicense, Third Party contractor or subcontractor.

     13.2 Covenants. Mundipharma covenants that, during the term of this Agreement, it shall carry
out the Development and Commercialization of the Licensed Products and its other obligations and
activities hereunder in accordance with (i) the terms of this Agreement, (ii) accepted applicable
pharmaceutical industry codes of practice and (iii) applicable Legal Requirements. BioCryst
covenants that, during the term of this Agreement, it shall carry out the Development of the
Licensed Products and its other obligations and activities hereunder in accordance with (i) the
terms of this Agreement, (ii) applicable pharmaceutical industry codes of practice, and (iii)
applicable Legal Requirements.

     13.3 ***.

     13.4 Delay of payment. If either Mundipharma or BioCryst shall fail to make a timely payment
pursuant to the terms of this Agreement, interest shall accrue on the past due amount at a rate of
interest equal to the 30-day U.S. Dollar London Inter-Bank Offering Rate (“LIBOR”) in the case of
payments denominated in U.S. Dollars as published in The Financial Times, effective for the date on
which the payment was due; provided, that if such failure to pay continues for more than *** (***)
days, the applicable rate of interest shall be the 30-day LIBOR rate effective for the date on
which payment was due, plus *** percent (***%) for the entire period of delinquency. All interest
due pursuant to this Section shall be computed on an actual/360 basis.

     13.5 Assignment. This Agreement shall not be assignable in part or in whole (by operation of
law or otherwise) by any Party without the prior written consent of the other; provided, however,
that BioCryst, without notice and at any time for any reason, may assign this Agreement in whole or
in part to (i) any of its Associates who agree to be bound by the terms and conditions of this
Agreement or (ii) any successor of BioCryst by merger or sale of all or substantially all of its
business assets to which this Agreement relates, and provided further that Mundipharma, with the
written consent of BioCryst, which consent shall not be unreasonably withheld, may assign this
Agreement in whole or in part to any of its Associates with exactly the same or greater financial
standing and resources as Mundipharma and who agree to be bound by the terms and conditions of this
Agreement. Notwithstanding the foregoing, it is understood that shortly after the Effective Date,
Mundipharma wishes to assign this Agreement to a wholly owned subsidiary that at all times will
remain a wholly owned subsidiary of Mundipharma. Mundipharma may, without BioCryst’s consent,
assign all of its rights under this Agreement to such a wholly owned subsidiary provided that: (x)
such subsidiary has an equivalent or better net worth and financial position as Mundipharma, (y)
all Guarantees of this Agreement remain equally effective in protecting BioCryst (or new guarantees
with the same terms are executed which are reasonably acceptable to BioCryst), (z) such subsidiary
shall agree to be bound by the terms and conditions of this Agreement. This Agreement shall be
binding on each Party’s permitted successors and assigns.

     13.6 Pre-Existing Third Party License. Mundipharma acknowledges and agrees that the terms of
this Agreement are subject in all respects to the terms of the Pre-Existing Third Party License,
which has been previously provided to Mundipharma. Mundipharma further agrees that (i) the
licensors

 

 

under the Pre-Existing Third Party License retained certain rights, which are not granted to
Mundipharma hereunder; (ii) such licensors shall be deemed to be Third Party beneficiaries of this
Agreement, entitled to enforce BioCryst’s rights hereunder; (iii) all Confidential Information
provided to BioCryst hereunder may be shared with such licensors; and (iv) Mundipharma shall fully
cooperate with BioCryst to assist BioCryst in complying with its obligations (including but not
limited to recordkeeping and information sharing) under the Pre-Existing Third Party License.
BioCryst agrees to update Mundipharma on the activities of BioCryst’s licensors under the
Pre-Existing Third Party License, the U.S. government, the National Cancer Institute and the New
Zealand Foundation for Research, Science and Technology in connection with the Compound to the
extent that BioCryst is aware of such activities.

     13.7 Press releases and external communications. The Parties will issue the initial press
release(s) attached hereto as Exhibit D on the Effective Date. Thereafter, neither Party shall
issue press releases or make public announcements relating to this Agreement without the other
Party’s prior written approval, which approval shall not be unreasonably withheld or delayed;
provided, however, that nothing in this Section shall impair either Party’s compliance with any
requirements of the Securities and Exchange Commission or the national securities exchange or other
stock market on which such Party’s securities are traded; and, provided further, that BioCryst may
issue external media and investor communications related to the transactions contemplated by this
agreement if such external media communications are previously approved by Mundipharma, which
approval shall not be unreasonably withheld or delayed. In connection with any filing by either
Party of a copy of this Agreement with the Securities and Exchange Commission (or the national
securities exchange or other stock market on which such Party’s securities are traded), the filing
Party shall endeavor to obtain confidential treatment of economic and trade secret information.
Reasonably in advance of filing, the filing Party shall provide to the other Party a copy of the
proposed filing and the Parties shall work cooperatively in good faith, taking into consideration
the other Party’s suggestions, regarding the information for which the filing Party will seek to
obtain confidential treatment. Notwithstanding the foregoing, BioCryst shall be entitled to make
public disclosures regarding the status of Mundipharma’s Development work provided that no
Confidential Information of Mundipharma is disclosed.

     13.8 Use of Name. Neither Party shall use the other Party’s name or trademarks for publicity
or advertising purposes, except with the prior written consent of the other Party. Notwithstanding
the foregoing, Mundipharma agrees to prominently include on all packaging, labeling, inserts and
other written materials relating to Licensed Products (collectively, “Product Materials”) that
BioCryst is licensor of the Licensed Products, along with relevant BioCryst Patent numbers.
BioCryst shall provide the text and style of the BioCryst company trademark to Mundipharma, and
during the Term hereof hereby grants to Mundipharma a nonexclusive, limited right to use the
BioCryst company trademark designated by BioCryst on such Product Materials.

          13.8.1 Publications. Any studies and results thereof related to the Compound or Licensed
Products shall be published and/or disclosed solely after compliance with the terms of this Section
13.8.1. A Party that wishes to publish or present any studies or results thereof related to the
Compound or the Licensed Products (“Publishing Party”) shall provide the other Party with a copy of
any proposed publication or presentation at least *** (***) days (or at least *** days in the case
of oral presentations) prior to submission for publication so as to provide such other Party with
an opportunity to recommend any changes it reasonably believes are necessary to continue to
maintain the Confidential Information disclosed by the other Party to the Publishing Party in
accordance with the requirements of this Agreement. The incorporation of such recommended changes
shall not be unreasonably refused or delayed; and if such other Party notifies (“Notice”) the
Publishing Party in writing, within *** (***) days after receipt of the copy of the proposed
publication or presentation (or at least *** (***) days in the case of oral presentations), that
such publication or presentation in its reasonable judgment (i) contains an invention, solely or
jointly conceived and/or reduced to practice by the other Party, for which the other Party
reasonably desires to obtain patent protection or (ii) reasonably could be expected to have a
material adverse effect on the commercial value of any Confidential Information disclosed by the
other Party to the Publishing Party, the Publishing Party shall prevent such publication or delay
such publication for a mutually agreeable period of time. In the case of inventions, a delay shall
be for a period reasonably

 

 

sufficient to permit the timely preparation and filing of a patent application(s) on such
invention, and in no event less than *** (***) days from the date of the Notice.

     13.9 Notices. Any notices, requests, reports, approvals, designations, responses, or other
communications provided for in this Agreement to be made by either of the Parties to the other
shall be in writing and shall be sufficiently given when made by prepaid registered or certified
air mail delivered by or by an internationally reputable overnight courier addressed to the other
at its address set forth below. Any such notice or communication may also be given by hand or
telecommunicated. Either Party may by like notice specify an address to which notices and
communications shall thereafter be sent. Any such notice, instruction or communication shall be
deemed to have been delivered upon receipt if delivered by hand, three (3) Business Days after it
is sent by registered or certified mail, return receipt requested, postage prepaid, one (1)
Business Day after it is sent via a internationally reputable overnight courier service, or when
transmitted with electronic confirmation of receipt, if transmitted by facsimile (if such
transmission is on a Business Day; otherwise, on the next Business Day following such
transmission).

	 	 	 	 	 	 	 
	In the case of BioCryst:	 	With a required copy to:
	 

	 	BioCryst Pharmaceuticals, Inc.
	 	 	 	Proskauer Rose LLP
	 

	 	2190 Parkway Lake Drive
	 	 	 	1585 Broadway
	 

	 	Birmingham, Alabama 35244
	 	 	 	New York, New York 10036
	 
	 	 	 	 	 	 
	 

	 	Attention: Chairman and CEO
	 	 	 	Attention: Daryn Grossman, Esq.
	 
	 	 	 	 	 	 
	 

	 	Facsimile No.: 205-444-4640
	 	 	 	Facsimile No.: (212) 969-2900
	 
	 	 	 	 	 	 
	In the case of Mundipharma:	 	With required copies to:
	 

	 	14 Par-la-Ville Road
	 	 	 	Mundipharma International Limited
	 

	 	Hamilton HMJX Bermuda
	 	 	 	Cambridge Science Park
	 

	 	 	 	 	 	Milton Road
	 

	 	 	 	 	 	Cambridge CB4 0GW
	 

	 	Attention: General Manager
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Attention: (1) Managing Director, and
	 

	 	Facsimile No.: +1 809 292 1472
	 	 	 	(2) Associate International General Counsel
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Facsimile No.: +44 1223 424442

     13.10 Effect of Waiver. The waiver from time to time by either of the Parties of any of their
respective rights or privileges or their failure to exercise any remedy shall not operate or be
construed as a continuing waiver of same or of any other of such Party’s rights, privileges or
remedies provided in this Agreement.

     13.11 Effect of Partial Invalidity. If any term, covenant or condition of this Agreement or
the application thereof to any Party or circumstances shall, to any extent, be held to be invalid
or unenforceable, then (i) the remainder of this Agreement, or the application of such term,
covenant or condition to parties or circumstances other than those as to which it is held invalid
or unenforceable, shall not be affected thereby and each term, covenant or condition of this
Agreement shall be valid and be enforced to the fullest extent permitted by law; and (ii) the
Parties hereto covenant and agree to renegotiate any such term, covenant or application thereof in
good faith in order to provide a reasonably acceptable alternative to the term, covenant or
condition of this Agreement or the application thereof that is invalid or unenforceable.

 

 

     13.12 Force Majeure. Each Party will be excused from the performance of its obligations under
this Agreement to the extent that such performance is prevented by a Force Majeure Event (as
defined below) and the non-performing Party promptly provides written notice to the other Party of
such inability and of the period for which such inability is expected to continue. Such excused
performance will be continued so long as the condition constituting a Force Majeure Event continues
and the non-performing Party takes reasonable efforts to remove or cure the condition. For
purposes of this Agreement, a Force Majeure Event means conditions caused by occurrences beyond the
control of the Party affected, including an act of God, an act, pronouncement, omission or delay in
acting by any Governmental Authority or Regulatory Authority or the other Party, war, an act of
war, terrorism, insurrection, riot, civil commotion, epidemic, failure or default of public
utilities or common carriers, shortages of raw materials or other supplies necessary for
Mundipharma’s Third Party manufacturer to manufacture the Licensed Products, provided that in the
event of such shortages Mundipharma shall use Commercially Reasonable Efforts to obtain supplies of
such raw materials or other supplies from another Third Party supplier as soon as practicable,
sabotage, labor strike, lockout, labor disturbance, embargo, fire, explosion, earthquake, flood,
storm or like catastrophe (each a “Force Majeure Event”).

     13.13 Entire Agreement; Amendment. This Agreement (including the Schedules and Exhibits
hereto) sets forth all the covenants, promises, agreements, warranties, representations, conditions
and understandings between the Parties hereto and supersede and terminate all prior agreements and
understanding between the Parties. There are no covenants, promises, agreements, warranties,
representations, conditions or understandings, either oral or written, between them concerning the
subject matter hereof, other than as are herein and therein set forth. No subsequent alteration,
amendment, change or addition to this Agreement shall be binding upon the Parties hereto unless
reduced to writing and signed by the respective authorized officers of the Parties.

     13.14 Status of Parties. The status of each Party hereunder is that of an independent
contractor. No provision of this Agreement shall be construed to place the Parties in the
relationship of partners or joint venturers. Neither Party is, and neither will represent itself to
be, an agent, representative or employee of the other Party, and neither Party has any right or
authority to obligate the other in any manner or thing whatsoever. No third parties shall be
entitled to rely upon the terms and conditions of this Agreement.

     13.15 Further Assurances. After the Effective Date, the Parties shall and, to the extent this
Agreement expressly imposes obligations on its Associates, each Party shall cause such Associates
to, from time to time, execute and deliver such additional instruments, documents, conveyances or
assurances and take such other action as shall be necessary or other reasonably requested by the
other Party, to confirm and assume the rights and obligations provided for in this Agreement.

     13.16 Performance by Associates. Each of Mundipharma and BioCryst acknowledges that certain
obligations under this Agreement may be performed by Associates of Mundipharma and BioCryst. Each
of Mundipharma and BioCryst guarantees the performance of this Agreement by any of its Associates,
and shall remain responsible therefor. Any Associate of Mundipharma or BioCryst to which rights
are extended or which performs any of the obligations required of the respective Party hereunder
will be deemed to have accepted and be bound by the relevant terms and conditions of this
Agreement, including the dispute resolution procedures set forth in Section 12.2.

     13.17 Intellectual Property. The Parties acknowledge and agree that the BioCryst Patents and
BioCryst Know-How licensed under this Agreement are “intellectual property” within the meaning of
Section 101(35(A)) of Title 11 of the U.S. Code (the “Bankruptcy Code”), and that this Agreement is
an executory contract governed by Section 365(n) of the Bankruptcy Code in the event that a
bankruptcy proceeding is commenced involving BioCryst.

     13.18 Counterparts; Facsimile Signature. This Agreement may be executed in counterparts, each
of which counterparts, when so executed and delivered, will be deemed to be an original, and both
of which counterparts, taken together, will constitute one and the same instrument even if both
Parties
have not executed the same counterpart. Signatures provided by facsimile transmission will be
deemed to be original signatures.

 

 

     IN WITNESS WHEREOF the parties hereto have executed this Agreement by their proper officers on
the date and year first above written.

	 	 	 	 	 	 	 	 	 	 	 
	BIOCRYST PHARMACEUTICALS, INC.	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By: /s/ Charles E. Bugg	 	 	 	By: /s/ Michael A. Darwin
	 	 	 	 	 
	Name: Charles E. Bugg	 	 	 	Name: Michael A. Darwin
	Title: Chairman & CEO	 	 	 	Title: Chief Financial Office
	 
	 	 	 	 	 	 	 	 	 	 
	STATE OF

	 	Alabama
	 	 	)	 	 	 	 	 
	 

	 	 	 	 	)	 	 	 	 	 
	 

	 	 	 	 	: ss.:
	 	 	 	 
	 

	 	 	 	 	)	 	 	 	 	 
	COUNTY OF

	 	Shelby
	 	 	)	 	 	 	 	 

On this 1st day of February, 2006, before me personally came Charles E. Bugg, to me
known, who, being by me duly sworn, did depose and say that he is the Chairman & CEO of
BIOCRYST PHARMACEUTICALS, INC., the corporation described in and which executed the foregoing
instrument and that he signed his name thereto as Chairman & CEO of said corporation.

	 	 	 
	 

	 	/s/ Penelope N. Mann
	 

	 	 
	 

	 	Notary Public
	 
	 	 
	 

	 	My Commission Expires: 1/31/2007

 

 

	 	 	 	 	 	 	 	 	 	 	 
	MUNDIPHARMA INTERNATIONAL HOLDINGS LIMITED	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By: /s/ Douglas Docherty	 	 	 	By: /s/ Marco Montarsolo
	 	 	 	 	 
	Name: Douglas Docherty	 	 	 	Name: Marco Montarsolo
	Title: Director	 	 	 	Title: Director
	 
	 	 	 	 	 	 	 	 	 	 
	BERMUDA

	 	 	 	 	)	 	 	 	 	 
	 

	 	 	 	 	)	 	 	 	 	 
	 

	 	 	 	 	: ss.:
	 	 	 	 
	 

	 	 	 	 	)	 	 	 	 	 
	HAMILTON

	 	 	 	 	)	 	 	 	 	 

On this 1st day of February, 2006, before me personally came DOUGLAS DOCHERTY and MARCO
MONTARSOLO, to me known, who, being by me duly sworn, did depose and say that they are both
directors of MUNDIPHARMA INTERNATIONAL HOLDINGS LIMITED, the limited company described in and
which executed the foregoing instrument and that they signed their names thereto as
directors of said corporation.

	 	 	 	 	 
	 	 	 
	 	                                                     /s/ Michael L. Jones
 	 
	 	Notary Public

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