Document:

Exclusive Patent and Know How License Agreement, dated April 24, 2003

 EXHIBIT 10.4 
 APRIL 24, 2003 
  

 EXCLUSIVE 
 PATENT AND KNOW HOW LICENSE AGREEMENT 
 BY AND BETWEEN 
 PHARMASSET, LTD
(LICENSOR) 
 AND 
 PRIMAGEN HOLDING B.V. (LICENSEE) 
  

 concerning Pharmasset’s 
 Mitochondrial Toxicity Technology 

			
	 EXCLUSIVE PATENT LICENSE PHARMASSET
	  	CONFIDENTIAL / EXECUTION COPY APRIL 24, 2003

 Certain portions of this Exhibit have been omitted pursuant to a request for confidentiality. Such omitted
portions, which are marked with brackets and asterisks [***], have been separately filed with the Commission. 
 TABLE OF CONTENTS 

 

					
	 PREAMBLE
	  	3
			
	 ARTICLE 1
	  	 DEFINITIONS
	  	4
			
	 ARTICLE 2
	  	 GRANT OF EXCLUSIVE LICENSE
	  	4
			
	 ARTICLE 3
	  	 KNOW HOW AND MATERIALS
	  	6
			
	 ARTICLE 4
	  	 SUBLICENSES
	  	6
			
	 ARTICLE 5
	  	 DILIGENCE
	  	6
			
	 ARTICLE 6
	  	 ROYALTIES AND OTHER CONSIDERATION
	  	8
			
	 ARTICLE 7
	  	 ROYALTY STATEMENTS AND PAYMENT
	  	9
			
	 ARTICLE 8
	  	 RECORD KEEPING AND INSPECTION
	  	10
			
	 ARTICLE 9
	  	 FILING AND MAINTENANCE OF PATENT RIGHTS
	  	11
			
	 ARTICLE 10
	  	 ENFORCEMENT OF TECHNOLOGY RIGHTS
	  	13
			
	 ARTICLE 11
	  	 CONFIDENTIAL INFORMATION
	  	14
			
	 ARTICLE 12
	  	 REPRESENTATIONS, WARRANTIES AND COVENANTS
	  	16
			
	 ARTICLE 13
	  	 INDEMNIFICATION
	  	18
			
	 ARTICLE 14
	  	 TERM AND TERMINATION
	  	18
			
	 ARTICLE 15
	  	 NOTICES
	  	21
			
	 ARTICLE 16
	  	 APPLICABLE LAW AND FORUM
	  	21
			
	 ARTICLE 17
	  	 MISCELLANEOUS
	  	22
	 

			
	 SCHEDULE 1 –
	  	Definitions
		
	 SCHEDULE 2 –
	  	Patent rights (applications)
		
	 SCHEDULE 3 –
	  	Parameters to Support Measuring Efforts
		
	 SCHEDULE 4 –
	  	Running Royalty from Direct Sale
		
	 SCHEDULE 5 –
	  	Stock Option Agreement

  

 2 

 This Agreement is made the 24th day of April 2003 
 Between: 
  

	1.	PHARMASSET, LTD, an International Business Company incorporated and existing under the laws of Barbados with US research laboratories located at 1860 Montreal Road, Tucker,
GA 30084, USA. (“Licensor”), 

 and 
  

	2.	PRIMAGEN HOLDING B.V., a limited liability company incorporated and existing under the laws of the Netherlands, having its registered office at Meibergdreef 59, 1105 BA
Amsterdam (“Primagen”);  

 (Licensor and Licensee hereinafter referred to as “Party” or collectively
“Parties”) 
 WHEREAS: 
  

	i.	Licensor has filed certain patent applications and owns trade secret and substantial know-how relating to mitochondrial toxicity technology (the “Technology
Rights”, as defined hereinafter); 

  

	ii.	Primagen is engaged in the research, development, commercialization and exploitation of processes and products in the field of amongst others diagnostics and is interested in
obtaining from Licensor the exclusive right to use and apply the Technology Rights; 

  

	iii.	Licensor is willing to license to Primagen the exclusive right to use and apply the Technology Rights, subject to the terms and conditions set forth hereinafter;

  

	iv.	In addition to certain patent recovery and royalty payments, Primagen in return is willing to grant Licensor the option to acquire a certain number of shares of the common stock of
Primagen, , all as described and subject to the terms and conditions set forth hereinafter, 

 NOW, THEREFORE, in consideration of the
premises and the terms and conditions contained in this Agreement and other good and valuable consideration the receipt and 

  

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	 EXCLUSIVE PATENT LICENSE PHARMASSET
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sufficiency of which is hereby acknowledged, Licensor and Primagen, intending to be legally bound, have agreed as follows: 
  

	ARTICLE 1    	DEFINITIONS 

  

	1.1	Definitions. In this Agreement the capitalized words and expressions shall have the meanings set out in Schedule 1 hereto. 

  

	1.2	Interpretation. As used in this Agreement, neutral pronouns and any variations thereof shall be deemed to include the feminine and masculine and all terms used in the
singular shall be deemed to include the plural, and vice versa, as the context may require. The words “herein,” “hereof,” “hereto” and “hereunder” and other words of similar import refer to this Agreement as a
whole, including the schedules and exhibits hereto, as the same may from time to time be amended or supplemented and not to any subdivision contained in this Agreement. The word “including” when used herein is not intended to be exclusive
and means “including, without limitation.” References herein to an article, section, schedule or exhibit shall refer to the appropriate section, subsection, clause, schedule or exhibit in or to this Agreement. The headings of the articles,
sections, schedules and exhibits of this Agreement are intended merely to facilitate reference and shall have no bearing upon the interpretation of any of the provisions of this Agreement. 

  

	ARTICLE 2    	GRANT OF EXCLUSIVE LICENSE 

  

	2.1	Exclusive Worldwide License. Licensor hereby grants to Primagen, and Primagen hereby accepts from Licensor, a sole and exclusive and royalty bearing license, with the right
to sublicense, in the Territory, under the Technology Rights during the Term of this Agreement, to research, develop, make, have made, use, import, export, market and sell Products and to practice and have practiced Processes, without any
limitations except for those limitations expressly set forth herein. 

  

	2.2	 Intellectual Property Rights, Improvements and Grant Back. All intellectual and/or industrial property rights in work or resulting from work done by or on
behalf of Primagen pursuant to this Agreement, whether or not in collaboration with Licensor or any of its Affiliates, or with respect to Improvements, shall exclusively vest in Primagen. Primagen shall grant back to Licensor a non-transferable,

  

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non-exclusive right to utilize and practice any and all Improvements, as if and when originated, for the lifetime of any patents, but only for the Authorized
Purpose. 

  

	2.3	Expression of No Interest. Notwithstanding the exclusive rights granted to Primagen under Section 2.1, Licensor shall have the non-transferable non-exclusive right to
utilize and practice the Technology Rights for such commercial purposes, in those parts of the Territory and field of use in which, but only if, as and when, Primagen has affirmatively expressed a lack of commercial interest. It is expressly
understood and agreed that Primagen shall only be obliged to make such expression whether or not it is interested, within sixty (60) calendar days of Licensor’s specific request that Primagen expresses whether or not it is interested.

  

	2.4	Non-exclusive Retained License. Licensor, on behalf of itself and its Affiliates, reserves the non-exclusive, non-transferable, right to utilize and practice the Technology
Rights solely for the purpose of its Core Business, including the right to collaborate with Third Parties to strengthen Licensor’s Core Business only (the “Authorized Purpose”), and provided always that said collaborator(s)
will be bound by confidentiality undertakings which provide at least as much protection to Primagen as those of this Agreement and preventing disclosure of the Technology Rights at all times, except as may be permitted by Primagen. Except for the
Authorized Purpose and as provided under Section 2.3, and irrespective of anything to the contrary herein, it is expressly understood and agreed that neither Licensor nor any of its Affiliates shall have the right to utilize or practice, or
grant or allow Third Parties to utilize or practice, the Technology Rights for any commercial, for-profit purpose or any other purpose that will enable such Third Party to compete with Primagen or any of its Affiliates or Sublicensees or that may
otherwise conflict with or may be to the detriment of Primagen’s interest, as such interest is determined by Primagen. No agreement concerning any permitted collaboration shall relieve Licensor of any of its obligations under this Agreement.

  

	2.5	Non assertion. During the Term of this Agreement and so long as Primagen has not committed any material breach of any obligation that allows Licensor to terminate this
Agreement pursuant to Section 14.2.2, neither Licensor nor any of its Affiliates shall assert any of the Technology Rights licensed hereunder against Primagen to prevent Primagen or any of its Affiliates or Sublicensees from practicing the
rights granted to Licensee pursuant to this Agreement. 

  

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	ARTICLE 3    	KNOW HOW AND MATERIALS 

  

	3.1	Delivery of Know How to Primagen. Within thirty (30) days of the Effective Date, Licensor shall take substantial steps, with the assistance of Primagen, to identify the
Know How and Materials, and thereafter shall promptly deliver to Primagen, at Primagen’s expense, such Know How and Materials. Thereafter, promptly after the end of each calendar year, to the end of this Agreement, Licensor shall similarly
identify and at Primagen’s request deliver to Primagen, at Primagen’s expense, the Know How and Materials. 

  

	3.2	Site visits. For the purpose of facilitating disclosure to Primagen of Know How and Materials, Licensor shall permit duly authorized employees of or representatives of
Primagen to visit laboratories and other Licensor’s facilities at reasonable times, convenient for all Parties involved and with reasonable notice. It is understood between the Parties, that such visits shall not be permitted to affect the
normal course of work within the laboratories. 

  

	ARTICLE 4    	SUBLICENSES 

  

	4.1	Right to Grant Sublicenses. Subject to the provisions of this Agreement, Primagen shall have the right to grant (exclusive and non-exclusive) sublicenses under the license
granted under Section 2.1 to its Affiliates and to Third Parties. Primagen, within its sole discretion, shall determine whether or not to grant a sublicense. 

  

	4.2	Responsibility for Sublicensees. No sublicense shall relieve Primagen of any of its obligations under this Agreement. Each sublicense shall refer to and be generally
consistent with this Agreement in terms of running royalty obligations and diligence requirements, and it shall at all times preserve the rights and reservations of Licensor under this Agreement. Primagen shall forward to Licensor a copy of each
executed sublicense agreement within 30 (thirty) days of its execution. Licensor agrees to maintain such information about the (existence of the) sublicense agreement in confidence. 

  

	ARTICLE 5    	DILIGENCE 

  

	5.1	 Good Faith Commercially Reasonable Efforts. Primagen shall diligently pursue the development and commercialization, including but not limited to marketing
and sales of the Products, using good faith commercially reasonable efforts in accordance with 

  

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	 EXCLUSIVE PATENT LICENSE PHARMASSET
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industry standards. The efforts of a Sublicensee and/or an Affiliate and/or a collaborator of Primagen shall be considered as efforts of Primagen. Subject to
the terms of this Agreement, Primagen shall have sole discretion for making all decisions relating to the development, commercialization and marketing of any Product or Process. 

  

	5.2	Parameters to Support Measuring Efforts. If, in any calendar year, Primagen or its Affiliate and/or a Sublicensee and/or a collaborator of Primagen has performed any one of
the parameters set out in Schedule 3 with respect to the Technology, then Primagen shall be deemed to have complied with Primagen’s obligations under Section 5.1. 

  

	5.3	Licensor’s Right to Terminate Agreement. If Primagen fails to comply with the obligations of Section 5.1 with respect to any calendar year following the second
calendar year as of the Effective Date and, in addition, has not performed at least one of parameters set out in Schedule 3, during that same calendar year, Licensor’s sole and exclusive remedy for Primagen’s failure to comply therewith
shall be the right to terminate this Agreement by written notice to Primagen within ninety (90) days after the end of the applicable calendar year, unless Primagen cures such failure prior to the expiration of thirty (30) days after such
notice. 

  

	5.4	Contestation. If Primagen receives a notice under Section 5.3, Primagen shall have the right to contest such notice by requesting arbitration under Article 16, and if
Primagen requests such arbitration this Agreement shall be terminated pursuant to Section 5.3 only if in such arbitration there is a final determination that Primagen has not met Primagen’s obligation under Section 5.1 in the
applicable calendar year and, in addition, in such calendar year none of the events set out in Schedule 3 has occurred. 

  

	5.5	No Restrictions to Other Businesses. Licensor acknowledges that Primagen is in the business of developing, manufacturing and selling of Products and Processes and that
nothing in this Agreement shall be construed as restricting such business or imposing on Primagen the duty to market, and/or sell and exploit the Products for which royalties are due hereunder to the exclusion of or in preference to any other
product or process. 

  

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	 EXCLUSIVE PATENT LICENSE PHARMASSET
	  	CONFIDENTIAL / EXECUTION COPY APRIL 24, 2003

 Certain portions of this Exhibit have been omitted pursuant to a request for confidentiality. Such omitted
portions, which are marked with brackets and asterisks [***], have been separately filed with the Commission. 
  

	ARTICLE 6    	ROYALTIES AND OTHER CONSIDERATIONS 

  

	6.1	Cash Consideration. In consideration of the rights granted herein to Primagen, Licensor will be entitled to: 

  

	 	6.1.1 	Patent and Research Recovery Fee. Primagen will pay to Licensor US $ [***] for patent and research recovery costs payable in three installments: 

 I. US $ 25,000 due and payable upon signing of this Agreement by the Parties 
 II. US $ [***] on the first anniversary of this Agreement’s Effective Date 
 III. US $[***] upon the
granting or letter of allowance of the first Patent Right concerning the Technology in any part of the Territory. 
  

	 	6.1.2 	Running Royalty from Direct Sale. Primagen will pay to Licensor a running royalty expressed as a percentage of Net Sales of any Products or Process by Primagen or its
Affiliates, said percentage(s) being detailed in Schedule 4. 

  

	 	6.1.3 	Running Royalty from Indirect Sale. Primagen will pay to Licensor a running royalty of [***] percent ([***]%) of all and any Considerations received from its Sublicensees to
commercialize the Technology Rights. 

  

	 	6.1.4 	Minimum Royalty. If royalty payments to Pharmasset are less than US $ [***] on December 31, 2004, or any year thereafter, Primagen shall pay Licensor a minimum royalty
of US $ [***] per year during the Term of this Agreement. The minimum royalty shall be remitted within 60 days of the end of each calendar year, and provided that the minimum royalty shall not be due for any previous calendar year, if the payments
referred in Section 6.1.2 and 6.1.3 due for the Accounting Period relative to the same calendar year are equal or greater than the minimum royalty. 

  

	6.2	Non-cash Consideration: Stock Option. In consideration of the rights granted herein to Primagen, upon execution of this Agreement, Primagen shall grant Licensor an option to
acquire a certain number of shares of the common stock of Primagen subject to the terms and conditions laid down in the stock option agreement enclosed in Schedule 5 (the “Stock Option Agreement”). 

 

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	 EXCLUSIVE PATENT LICENSE PHARMASSET
	  	CONFIDENTIAL / EXECUTION COPY APRIL 24, 2003

 Certain portions of this Exhibit have been omitted pursuant to a request for confidentiality. Such omitted
portions, which are marked with brackets and asterisks [***], have been separately filed with the Commission. 
  

	ARTICLE 7    	ROYALTY STATEMENTS AND PAYMENT 

  

	7.1	Royalty Statements. With each payment, Primagen shall deliver to Licensor a full and accurate accounting of the calculation of the royalties owing hereunder to include at
least the following information: 

  

	 	(a)	Quantity of each Product or Process subject to royalty sold (by country) by Primagen and its Affiliates; 

  

	 	(b)	Net Sales for each Product or Process (by country), including a detailed reconciliation from the gross invoiced sales price to Net Sales; 

  

	 	(c)	The calculation of the gross royalties (before deductions), for each Product or Process (by country) and any deductions, offsets and credits therefrom; 

  

	 	(d)	Total royalties payable to Licensor for each Product or Process (by country) and the total royalties payable to Licensor for all Products or Processes (for all countries);

  

	 	(e)	Considerations received from Sublicensees as referred in Section 6.1.3; 

  

	 	(f)	The calculation and total royalties payable to Licensor in accordance with Section 6.1.3. 

  

	7.2	Payments. All sums payable pursuant to this shall be paid by the due date for payment as specified in this Agreement. If Primagen fails to pay any sum due under this
Agreement in full by the due date for payment then Licensor may, without prejudice to any other right or remedy available to Licensor, charge interest. The interest rate shall be the three months Euribor rate, plus [***] base points, on the second
business day before the relevant payment due date. 

  

	7.3	 Currency and Exchange Ratio. With respect to sales (if any) of Products and Processes invoiced in EURO, the gross sales, Net Sales and/or royalties received,
and royalties payable to Licensor shall be expressed in EURO. With respect to sales of Products and Processes invoiced in a currency other than EURO, the gross sales, Net Sales and/or royalties received, and royalties payable to Licensor shall be
expressed in the currency of the invoice together with the EURO equivalent of the royalty 

  

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payable, calculated using the average rate of exchange published by the ABNAMRO Bank (the Netherlands) for the ninety (90) days of the relevant
Accounting Period. 

  

	7.4	Sales Tax. All sums payable pursuant to this Agreement are exclusive of any value added tax or any other sales tax or duties, which, where applicable, shall be payable by
Primagen in addition. 

  

	7.5	Suspension of Payment. In the event that Licensor materially breaches this Agreement, in addition to any other remedy that Primagen may have, Primagen shall have the right to
notify Licensor in writing of such breach and if such breach is not cured within 60 days thereafter, Primagen shall have the right to suspend payments under this Agreement and no further payment shall be due until such breach is cured. Payments will
be accrued during any dispute and it will all become due, within 30 days of settlement or a final and binding arbitral decision, if Licensor is found not to be at fault. 

  

	7.6	Single Royalty and Non-Royalty Sales. In no event shall more than one royalty be payable under Article 6 with respect to a particular unit of Products or Processes. No
royalty shall be payable under this Article 6 with respect to sales or transfers between Primagen and its Affiliate Sublicensees, to the extent permitted under this Agreement. No royalty shall be payable for (i) Products or Processes used in
clinical trials (for the development of the product), (ii) Products or Processes used for research but excluding Products labelled “For Research Only” or equivalent, (iii) customary quantities of Products distributed as free
samples or (iv) reasonable quantities of Products disposed of as donations to Third Parties (such as humanitarian and charitable organizations). 

  

	7.7	Royalty Relieve for Patent Expiry. A patent or patent application licensed under this Agreement shall cease to fall within the Patent Rights for the purpose of computing
earned royalty payments in any given country on the earliest dates that a Valid Patent Claim is absent. 

  

	ARTICLE 8    	RECORD KEEPING AND INSPECTION 

  

	8.2	 Maintenance of Records. Primagen shall, and shall procure that its (sub)licensees shall, keep at their normal place of business detailed, accurate and up to
date records and books of account showing the quantity, description and value of all Products and Processes supplied by Primagen and its licensees in each country and all sums paid to Primagen by its licensees, in each case for the three
(3) years next following the end 

  

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	 EXCLUSIVE PATENT LICENSE PHARMASSET
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 Certain portions of this Exhibit have been omitted pursuant to a request for confidentiality. Such omitted
portions, which are marked with brackets and asterisks [***], have been separately filed with the Commission. 
  

	 	 
of the Accounting Period to which each pertains. Primagen shall ensure that such records and books of accounts are adequate to ascertain the royalties due to
Licensor under this Agreement. 

  

	8.3	Inspections. Primagen shall, and shall procure that its licensees shall, make its records and books available to the extent reasonably required for inspection during normal
business hours by an independent certified accountant selected by Licensor and reasonably acceptable to Primagen upon reasonable notice during normal business hours at Licensor’s expense for the sole purpose of verifying royalty statements, but
in no event more than once in each calendar year. All information and data offered shall be used only for the purpose of verifying royalties; shall be treated as Primagen Confidential Information subject to the obligations of this Agreement; and
disclosure by such accountant to Licensor shall be limited to the information necessary to quantify any underpayment and to identify the cause thereof, including without limitation the amount, if any, that any such royalties have been underpaid.

  

	8.4	Underpaid Royalties. In the event that for the Accounting Period(s) inspected, Primagen has underpaid royalties then Primagen shall pay to Licensor the amount of the
underpaid royalty plus interest. The interest rate shall be the three months Euribor rate, plus [***] base points, on the second business day before the relevant payment date. If the underpayment exceeds [***] percent ([***]%) of the amount that
should have been paid, then Primagen shall also pay the cost of the inspection. In the event that there are three consecutive audits that indicate that Primagen has underpaid royalties in excess of [***] percent ([***]%), then thereafter the
interest rate on underpayments shall be Euribor plus [***] base points and Licensor shall have the right to conduct inspections under Section 8.3 on a calendar quarter basis. 

  

	ARTICLE 9    	FILING AND MAINTENANCE OF PATENT RIGHTS 

  

	9.1	 Preparation, Filing, Prosecution, and Maintenance by Licensor. Except as otherwise provided in this Article 9, Licensor agrees to take responsibility for,
but to consult with, Primagen in the preparation, filing, prosecution, and maintenance of any and all patent applications or patents included in the Technology Rights and shall furnish copies of relevant patent-related documents to Primagen.
Prosecution for the purposes of this Agreement shall mean all activities relating to the grant of a Patent 

  

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	 EXCLUSIVE PATENT LICENSE PHARMASSET
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 Certain portions of this Exhibit have been omitted pursuant to a request for confidentiality. Such omitted
portions, which are marked with brackets and asterisks [***], have been separately filed with the Commission. 
  

	 	 
Right but to exclude the enforcement of Patent Rights and other Technology Rights as provided in Article 10. 

  

	9.2	Consultation and Opportunity to Comment. Licensor and its patent attorneys or patent agents shall consult with Primagen in all aspects of the preparation, filing, prosecution
and maintenance of patent applications and patents included within the Technology Rights and shall provide Primagen sufficient opportunity to comment on any document that Licensor intends to file or to cause to be filed with the relevant
intellectual property or patent office that may materially affect the duration or scope of any resulting patent right within the Technology Rights. 

  

	9.3	Duty to Cooperate Fully. Primagen agrees to cooperate fully with Licensor, its attorneys, and agents in the preparation, filing, prosecution, and maintenance of any and all
patent applications or patents included in the Technology Rights and to provide Licensor with complete copies of any and all documents or other materials that Licensor deems necessary to undertake such responsibilities. 

  

	9.4	Expenses. All fees and out of pocket costs, including reasonable patent attorney fees, that become due and payable by Licensor as of the Effective Date in connection with the
preparation, filing, prosecution and maintenance of patent applications and patents forming part of the Technology Rights shall be reimbursed by Primagen to the maximum of US $[***] per calendar year, provided that any and all such activities and
costs that are anticipated to exceed US $[***] (i) shall be subject to Primagen prior approval which shall not be withheld unreasonably, and shall be deemed given if not responded to within 5 business days of Licensor’s request for
approval, (ii) shall be properly accounted for by (copies of) notes and (attorneys time and billing) specifications, and (iii) if made relative to countries outside the marketing and sales scope of Primagen, shall be borne by Pharmasset
unless agreed otherwise, on a case by case basis. 

  

	9.5	 Discontinuance. If Licensor declines, abandons or otherwise discontinues the preparation, filing, prosecution, or maintenance of a Patent (application) with
respect to inventions relating to the Technology Rights, either generally or in a specific country, and Primagen believes such a patent or patent application should be prepared, filed, prosecuted or maintained, Primagen shall notify Licensor in
writing of its intent to prepare and file such patent application or undertake said prosecution 

  

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and maintenance. If Licensor does not file such patent application or declare its intention to undertake the requested actions within thirty (30) days of the
date of the notice from Primagen, Primagen shall have the right, at its own account, to prepare and file a patent application or commence or continue the preparation, filing, prosecution, or maintenance, at Primagen’s expense and Licensor shall
cooperate with Primagen in accordance with Section 9.3 (as if it were Primagen). 

  

	ARTICLE 10    	ENFORCEMENT OF TECHNOLOGY RIGHTS 

  

	10.1	Notice of Infringement, Misappropriation or Misuse. Primagen and Licensor agree to notify each other promptly of each infringement or possible infringement or of any
misappropriation or misuse of the Technology Rights and Improvements, as well as any facts which may affect the validity, scope, or enforceability of the Technology Rights of which either Party becomes aware. 

  

	10.2	Enforcement of Rights. Primagen shall have the exclusive right to initiate and prosecute any enforcement action concerning the Technology Rights, including any interference,
opposition, infringement or validity litigation, as Primagen deems fit at its own expense and in its own name, or to control the defence of any actions (including declaratory judgment actions) relating thereto. Any recovery of license fees obtained
as a result of such action, whether by judgment, award, decree or settlement and that was proven to be indebted for the use of Products and Processes shall be treated as Net Sales hereunder, with Licensor being entitled to its attendant royalty as
referred to in Article 6. If Primagen decides not to prosecute any enforcement action, including any interference, opposition, infringement or validity litigation, and Licensor disagrees, Licensor reserves the right to prosecute any enforcement
action, including any interference, opposition, infringement or validity litigation, at Licensor’s cost. Any recovery of license fees obtained as a result of such action by Licensor, whether by judgment, award, decree or settlement and that was
proven to be indebted for the use of Products and Processes shall be treated as Net Sales hereunder, with Primagen being entitled to equivalent Licensors attendant royalty as referred to in Article 6 (in other words, Primagen will receive what
Pharmasset would otherwise receive if Primagen was to take action and recover fees). 

  

	10.3	 Cooperation. In any suit, action or proceeding referred to in this Article 10 (regardless of which Party commences or defends), Licensor and its Affiliates
shall, at Primagen’ expense, fully cooperate with Primagen and supply all assistance reasonably requested by Primagen carrying on the proceeding, including providing 

  

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Primagen with such witnesses, documents and records and other evidence as may be reasonably requested. Primagen shall keep Licensor informed of developments
in any action or proceeding, including, to the extent permissible by law, the status of any settlement negotiations and the terms of any offer related thereto. 

  

	10.4	Revocation or Invalidity Actions. Primagen shall have the right to defend, at its own expense, all suits or proceedings seeking to have any of the Technology Rights revoked
or declared invalid, unpatentable, unenforceable or not infringed. All costs and expenses (including attorneys’ fees) incurred in such action shall be payable by Primagen defending such action. 

  

	ARTICLE 11    	CONFIDENTIAL INFORMATION 

  

	11.1	Confidentiality. Subject to Section 11.5, during the term of this Agreement, it is contemplated that each Party will disclose to the other Party confidential information
and materials which is owned or controlled by the party providing such information and materials or which that party is obligated to maintain in confidence and which is designated by the party providing such information and materials as confidential
(such material and information is individually and collectively “Confidential Information”). Each Party shall have the right to refuse to accept the other Party’s Confidential Information. Subject to Section 11.5, each
Party agrees to retain the other Party’s Confidential Information in confidence, and to limit disclosure of any such Confidential Information to its officers, directors, employees and permitted assigns on a need to know basis and only if the
recipient of the Confidential Information has agreed in writing to maintain confidentiality. Each Party agrees to use the other Party’s Confidential Information only as permitted by this Agreement, and subject to Section 11.5, not to
disclose or provide any such Confidential Information to any other person or entity without the prior written consent of the party providing such Confidential Information. 

  

	11.2	Exemptions. The obligations of confidentiality and non-use of Section 11.1 will not apply to: 

  

	 	(a)	portions of the Confidential Information rightfully known to the receiving party, without obligation of confidentiality or non-use, prior to disclosure thereof by the disclosing
party, as demonstrated by written records of the receiving party; 

  

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	 	(b)	portions of the Confidential Information that become generally available to the public, without restriction and without breach of this Agreement by the receiving party; or

  

	 	(c)	portions of the Confidential Information that become rightfully available, without obligation of confidentiality or non-use, to the receiving party from others having no obligation
to hold such Confidential Information in confidence; or 

  

	 	(d)	based on such Party’s good faith judgment with the advice of counsel, is otherwise required to be disclosed in compliance with applicable legal requirements to a public
authority such as, without limitation, the U.S. Food & Drug Administration (FDA), the European Medicines Evaluation Agency (EMEA), or any comparable authority or court of any country having jurisdiction, provided that the Party required to
make the disclosure takes reasonable steps to restrict and maintain confidentiality of such disclosure and provides reasonable prior notice to the other Party. 

  

	11.3	Non Disclosure. Except as provided in Section 11.2 and 11.4, neither Party shall disclose any terms or conditions of this Agreement including without limitation their
existence, terms, or any disputes relating to them, or any information concerning Technology Rights and Confidential Information to any Third Party without the prior consent of the other Party. 

  

	11.4	Permitted Disclosures. A Party may disclose the terms or conditions of this Agreement, (i) on a need-to-know basis to its legal and financial advisors to the extent such
disclosure is reasonably necessary in connection with such Party’s activities expressly permitted by this Agreement and ordinary and customary business operations, and (ii) to a Third Party in connection with (w) an equity investment
in or loan to such party or other financing, (x) a merger, consolidation, change in control or similar transaction by such Party, (y) the transfer or sale of all or substantially all of the assets of such party, or (z) in connection
with the granting of a sublicense under this Agreement. Primagen may provide or disclose Technology Rights and Confidential Information of Licensor to a Third Party for use in a manner that is consistent with the license granted to Primagen,
provided that the Third Party agrees to confidentiality provisions which provide at least as much protection to Licensor as those of this Agreement. Licensor may disclose Technology Rights to a Third Party under an obligation of confidentiality
subject to the provisions of Section 2.4. 

  

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	11.5	The Parties’ obligations under this Article 11 shall terminate five (5) years after the expiration or termination of this Agreement. 

  

	ARTICLE 12    	REPRESENTATIONS, WARRANTIES AND COVENANTS 

  

	12.1	Mutual Representations and Warranties. Each of Licensor and Primagen represents and warrants to the other that: 

  

	 	12.1.1	it has the corporate power and authority and the legal right to enter into this Agreement and to perform its obligations hereunder; 

  

	 	12.1.2	it has taken all necessary corporate action on its part to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder; and

  

	 	12.1.3	this Agreement has been duly executed and delivered on its behalf, and constitutes a legal, valid, binding obligation, enforceable against it in accordance with its terms.

  

	12.2	Licensor’s Representations, Warranties and Covenants. Licensor represents and warrants to and covenants with Primagen that: 

  

	 	12.2.1	it owns all right, title and interest in and to the Technology Rights; 

  

	 	12.2.2	it has not previously granted and, prior to expiration or termination of this Agreement, will not grant any rights in the Technology Rights that conflict with or will be
inconsistent with the rights and licenses granted to Primagen herein; 

  

	 	12.2.3	The execution, delivery and performance of this Agreement by Licensor will not conflict with or result in a breach of, or entitle any party thereto to terminate, any material
agreement or instrument to which Licensor is a party, or by which any of its assets or properties is bound. 

  

	 	12.2.4	as of the Effective Date, it does not own or have rights to patents, patent applications, know how and materials that are useful for the research, development, making, using,
importing, exporting or selling of the Products or Processes other than the patent applications listed in Schedule 2 and the Know How and Materials defined in this Agreement; 

  

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	 	12.2.5	it has neither received from nor delivered any written claim to a Third Party, nor has any actual knowledge that any Third Party intends to assert any claim asserting the
invalidity, unenforceability or misuse of the Technology Rights; 

  

	 	12.2.6	it has provided or will provide (pursuant to Section 3.1) to Primagen all information and data in its possession and control regarding the safety and efficacy of the Technology
Rights. 

  

	12.3	Disclaimer. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN SECTIONS 12.1 and 12.2, NEITHER PARTY MAKES ANY REPRESENTATION OR EXTENDS ANY WARRANTIES OF ANY KIND EITHER
EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE. LICENSOR IN PARTICULAR DOES NOT WARRANT THE VALIDITY OF THE LICENSED TECHNOLOGY HEREUNDER AND MAKES NO REPRESENTATION WHATSOEVER WITH
REGARD TO THE SCOPE OF THE LICENSED TECHNOLOGY OR THAT SUCH LICENSED TECHNOLOGY MAY BE EXPLOITED BY PRIMAGEN OR ITS AFFILIATES WITHOUT INFRINGING OTHER PATENTS. PRIMAGEN POSSESSES THE NECESSARY EXPERTISE AND SKILL IN THE TECHNICAL AREAS IN WHICH THE
LICENSED TECHNOLOGY IS INVOLVED TO MAKE, AND HAS MADE, ITS OWN EVALUATION OF THE CAPABILITIES, SAFETY, UTILITY, AND COMMERCIAL APPLICATION OF THE LICENSED TECHNOLOGY. ACCORDINGLY. LICENSOR MAKES NO REPRESENTATION OR WARRANTY OF ANY KIND WITH RESPECT
TO THE LICENSED TECHNOLOGY AND EXPRESSLY DISCLAIMS ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND ANY OTHER IMPLIED WARRANTIES WITH RESPECT TO THE CAPABILITIES, SAFETY, UTILITY OR COMMERCIAL APPLICATION OF LICENSED
TECHNOLOGY. 

  

	12.4	Licensor’s Reasonable Efforts. Licensor covenants that with respect to each agreement that is entered into by Licensor or its Affiliate(s) that grants rights to Licensor
or its Affiliate(s) with respect to Technology Rights, which rights are potentially usable with respect to Products or Processes by Primagen, Licensor shall use reasonable efforts to secure the right to transfer or license such rights to Primagen.

  

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	ARTICLE 13    	INDEMNIFICATION 

  

	13.1	Indemnification. Primagen agrees to indemnify and hold harmless Licensor, its directors, officers, employees, Affiliates and agents (individually and collectively, the
“Indemnitee”) from and against all losses, liabilities, damages, injuries and expenses (including reasonable attorneys’ fees and costs) incurred in connection with any claims, demands, actions or other proceedings by any Third
Party arising from (a) the research, development, manufacture, use, import, export, marketing or sale under the licenses granted under this Agreement of any Product or utilization of Processes by Primagen, or any of its Affiliates or
Sublicensees, or (b) the use by Primagen, or any of its Affiliates or Sublicensees of the Technology Rights. 

  

	13.2	Sole Expense. If any such claims or actions are made, the Indemnitee shall be defended at Primagen’s sole expense by counsel selected by Primagen provided that the
Indemnitee may, at its own expense, also be represented by counsel of its own choosing. 

  

	13.3	Notification of Claim. The Indemnitee shall notify Primagen promptly of any claim, demand, action or other proceeding under Section 13.1 and shall reasonably cooperate
with all reasonable requests of Primagen with respect thereto. 

  

	13.4	Exclusions. Primagen’s indemnification under Section 13.1 shall not apply to the extent any loss, liability, damage or expense is attributable to the gross
negligence or intentional wrong doing or illegal act of any Indemnitee. 

  

	13.5	Settlement. Primagen may settle any such claim, demand, action or other proceeding or otherwise consent to an adverse judgment that is subject to the indemnity of this
Article 13. The Indemnitee may not settle any claim, demand, action or other proceeding or otherwise consent to an adverse judgment in any such action or other proceeding in each case that is indemnified by Primagen without the express written
permission of Primagen, which shall not be unreasonably withheld. 

  

	ARTICLE 14    	TERM AND TERMINATION 

  

	14.1	 Term of this Agreement. Unless terminated earlier for cause or convenience (as provided in Section 14.3), this Agreement shall become effective as of
the Effective Date and shall continue in force and effect until the end of all obligations of Primagen hereunder, or the last to expire Patent Right, whichever is earlier (the 

  

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“Term”), at which time Primagen shall have a fully paid-up, non-cancellable, nonexclusive license under the Technology Rights that are
granted during the lifetime of this Agreement. 

  

	14.2	Termination for Cause. This Agreement may be terminated upon the occurrence of any of the following: 

  

	 	14.2.1	Bankruptcy. Either Party may terminate this Agreement upon or after the bankruptcy, insolvency, dissolution or winding up of the other Party. All rights and licenses granted
under or pursuant to this Agreement by Licensor to Primagen are, and shall irrevocably be deemed to be, “intellectual property” as defined in Section 101(56) of the U.S. Bankruptcy Code. In the event of the commencement of a case by
or against either Party under any Chapter of the above mentioned Bankruptcy Code, this Agreement shall be deemed an executory contract and all rights and obligations hereunder, but for that purpose only and without prejudice to Article 16 of this
Agreement, shall be determined in accordance with Section 365(n) thereof. Unless a Party rejects this Agreement and the other Party decides not to retain its rights hereunder, the other Party shall be entitled to a complete duplicate of
(or complete access to, as appropriate) all intellectual property and all embodiments of such intellectual property held by the Party and the Party shall not interfere with the rights of the other Party, which are expressly granted hereunder, to
such intellectual property and all embodiments of such intellectual property from another entity. 

  

	 	14.2.2	Material Breach. In the event that either Party commits a breach of any material term or condition of this Agreement and that Party fails to remedy that breach within 60 days
after receipt of written notice of that breach from the other Party, the Party giving notice may, at its option and in addition to any other remedies which it may have at law or in equity, terminate this Agreement by sending written notice of
termination to the other Party, and such termination shall be effective as of the date of the receipt of such notice. 

  

	14.3	 Primagen’s Right to Terminate Agreement. Primagen shall have the right to terminate this Agreement and/or the licenses granted thereunder in its
entirety or with respect to any one or more countries in the Territory or with respect to one or 

  

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more Technology Rights upon one-hundred and twenty (120) days prior written notice to Licensor. Termination with respect to any one or more countries in
the Territory or with respect to one or more Technology Rights will not affect Primagen’s payment obligations under Section 6.1.1 (Patent and Research Recovery Fee payment) or 6.1.4 (Minimum Royalty payment) of this Agreement, except when
terminated for the whole Territory or all Technology Rights at which time no more minimum royalties shall become due for any subsequent Accounting Period. 

  

	14.4	Selling of Inventory after Termination. Upon any termination of this Agreement, at its option, Primagen shall be entitled to sell any inventory of Products under the licenses
granted under this Agreement which remains on hand as of the date of the termination, so long as Primagen pays to Licensor the royalties applicable to said subsequent sales in accordance with the same terms and conditions as set forth in this
Agreement. 

  

	14.5	Position of Sublicensees after Termination. Except for any voluntary termination by Primagen under Section 14.3 hereof, in the event that this Agreement is terminated,
and a Sublicense has been granted under this Agreement then this Agreement shall become an agreement between Licensor and any such Sublicensees subject to the Sublicensee(s) agreeing to be bound under this entire Agreement to Primagen. Primagen will
acknowledge to such Sublicensees Primagen’s obligations to the Sublicensees) under this Section 14.5. 

  

	14.6	Validity of Obligations Matured prior to Termination. Upon expiration or termination of this Agreement for any reason, nothing herein shall be construed to release either
Party from any obligation that matured prior to the effective date of such expiration or termination. 

  

	14.7	Survival. Termination of the Agreement will not affect any rights or obligations of either Party which have accrued prior to termination and are intended by the Parties to
survive termination. Without limiting the foregoing, upon termination of this Agreement, the provisions of Article 11 (Confidentiality), 8.2 (bookkeeping by Primagen), Article 13 (Indemnification), 14.1 (License after term), 14.4 (Selling of
inventory after termination), 14.5 (Position of Sublicensees after termination), 14.6 (Validity of obligations matured prior to termination), 14.2.1 (Intellectual Property under the Bankruptcy Code), and Article 16 (Applicable Law and Forum) shall
survive any expiration or termination of this Agreement. 

  

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	ARTICLE 15    	NOTICES 

  

	15.1	Any notice given under this Agreement shall be in writing and shall be sent by post or fax to the address set out at the start of this Agreement or the fax numbers set out below or
to such other address or fax number subsequently notified by the parties to each other in writing. 

 To Licensor: 

Pharmasset Ltd 
 #2204 
 2881 Peachtree Road 
 Atlanta, Georgia 30305

 U.S.A. 
 Facsimile: + 11 678
395 0030 (telephone confirm: +11 678 395 0050) 
 Attn. Executive Director 
 With a copy to: 
 Pharmasset Inc. 

1860 Montreal Road 
 Tucker, Georgia 30084

 U.S.A. 
 Facsimile: + 11 678
395 0030 (telephone confirm: +11 678 395 0050) 
 Attn. Legal Counsel 
 To Primagen: 
 Primagen Holding B.V.

 Meibergdreef 59 
 1105 BA
Amsterdam 
 The Netherlands 
 Facsimile: +31 20 566 9081 (telephone confirm: +31 20 566 8575) 
 Attn.: Bob van Gemen, Chief Executive Officer 
  

	ARTICLE 16    	APPLICABLE LAW AND FORUM 

  

	16.1	 Dispute Resolution. In the event of a dispute arising out of or connected to this Agreement, a Party may notify the other Parties of the substance of
the dispute and of 

  

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its desire to attempt to reach an amicable resolution. In this event, the Parties shall endeavour for a period of 60 days after such notice is given to
resolve the dispute through friendly, good faith consultations. If the Parties fail to resolve the dispute through this process within the 60 days, the dispute shall be submitted to and settled by final and binding arbitration in accordance with the
Arbitration Rules by one arbitrator appointed in accordance with said Rules detailed hereinafter, to exclude any other venue. If initiated by Licensor, the arbitration shall be in accordance with the Arbitration Rules of the Netherlands Arbitration
Institute. The venue of arbitration shall be Amsterdam, the Netherlands, and the substantive laws of the Netherlands will be applicable, exclusive of conflict of laws principles and the United Nations Convention on the International Sale of Goods.
If initiated by Primagen, arbitration shall be in accordance with the Arbitration Rules of the American Arbitration Association. The venue will be Atlanta, Georgia, USA and the laws of the State of Georgia will be applicable subject to the same
exclusions. The arbitration shall be conducted in English. The Parties shall endeavour to obtain an arbitration ruling as soon as possible. During the arbitration process, the Parties shall continue to perform this Agreement, except to the extent of
any portion under dispute and being arbitrated. Except as otherwise may be provided in the arbitration award, the costs of arbitration shall be borne by the losing Party. Judgment upon any award made through arbitration may be entered in any court
having jurisdiction, or application made to such court for judicial acceptance of the award and for an order of enforcement, as the case may be. 

  

	ARTICLE 17    	MISCELLANEOUS 

  

	17.1	Entire Agreement. This Agreement, inclusive its schedules and other annexes, contains the entire agreement and cancels and sets aside any prior agreement or commitment or
arrangement concerning the subject matter between the Parties. 

  

	17.2	No Agency or Partnership. Nothing in this Agreement shall create, evidence or imply any agency, partnership or joint venture between the parties. No party shall act or
describe itself as the agent of the other parties nor shall a party have, or represent that it has, any authority to make commitments on behalf of the other. 

  

	17.3	No Assignment. This Agreement is personal to the parties, and neither party shall assign, transfer, sub-contract, charge, or otherwise deal in any rights and obligations
under this Agreement without the prior written consent of the other party. 

  

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	17.4	Assignment and Change of Control. Each Party may assign the rights and obligations under this Agreement in whole, without consent, to an Affiliate or in connection with the
transfer or sale of all or substantially all of its business or in the event of a merger, consolidation or change in control provided that such assignment is in connection with a permitted assignment of this Agreement and to the same assignee as to
which this Agreement is assigned and is subject to this Agreement, and the assignee assumes in writing and becomes directly obligated to the other Party to perform all of the obligations of assignor under this Agreement. 

  

	17.5	Conflicts of Terms. In the event of conflict or inconsistency between the terms and conditions of this Agreement and those of the Stock Option Agreement, with respect to the
events referred in Section 17.4, the terms and conditions of the Stock Option Agreement shall supersede. 

  

	17.6	Legal Compliance. Primagen shall comply with all laws and regulations relating to its manufacture, processing, producing, use, selling, or distributing of products utilizing
the licensed technology. 

  

	17.7	Patent Marking. Primagen shall mark Products sold in the United States with relevant United States patent numbers. Products manufactured or sold in other countries shall be
marked in compliance with the intellectual property laws in force in such countries. 

  

	17.8	Use of Names. Each Party shall obtain the prior written approval of the other Party, to making use of the other Party’s name for any scientific or commercial purpose,
except as required by law. 

  

	17.9	Publications, Announcements and Press Releases. Licensor will be duly recognized in all publications, announcements and press releases associated with the use or sublicensing
of the Technology Rights. Licensor must review all publications, announcements and press releases concerning the Technology Rights prior to submission. 

  

	17.10	 Force Majeure. Any delays in, or failure of, performance of any Party to this Agreement shall not constitute default hereunder, or give rise to any claim for
damages, if and to the extent caused by occurrences beyond the control of the Party affected, including, but not limited to, acts of God, strikes or other work stoppages, 

  

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civil disturbances, fires, floods, explosions, riots, war, rebellion, sabotage, acts of governmental authority or failure of governmental authority to issue
licenses or approvals which may be required. 

  

	17.11	Affiliates’ Compliance. Each Party shall cause its respective Affiliates to comply fully with the provisions of this Agreement to the extent such provisions relate to,
or are intended to relate to, such Affiliates. 

  

	17.12	Amendments in Writing. No change shall be made to this Agreement except in writing and signed by the duly authorised representatives of the Parties. 

SIGNATURES BEGIN ON NEXT PAGE 
  

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 AGREED by the Parties through their duly authorized representatives on the date written at the top of the third page
of this Agreement: 
  

					
	 Pharmasset, Ltd.
	 		 	 Primagen Holding B.V.

			
	 /s/ Martin J. K. Pritchard
	 		 	 /s/ Bob van Gemen

	 Name: Martin J.K. Pritchard
	 		 	 Name: Dr. Bob van Gemen

	 Title: Director
	 		 	 Title: Director

  

	
	 Pharmasset, Ltd.

	
	 /s/ Raymond F. Schinazi

	 Name: Dr. Raymond F. Schinazi

	 Title: Director

  

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 SCHEDULE 1 
  

			
	 DEFINITIONS
	  	
		
	 Accounting Period
	  	means the period for which running royalties are calculated i.e. every period of six months of a calendar year;
		
	 Agreement
	  	means the present document and all schedules and annexes attached thereto or referred to herein;
		
	 Affiliate
	  	means any corporation, partnership or other entity that controls, is controlled by, or is under common control of, a Party to this Agreement. A corporation or other entity shall be regarded as
in control of another corporation or entity if it owns, directly or indirectly, more than 50% of the voting or equity rights of the other corporation or entity. In the case of any other legal entity, ownership and/or control shall exist through the
ability to directly or indirectly control the management and/or business of the legal entity;
		
	 Authorized Purpose
	  	means Licensor’s rights to utilize and practice the Technology Rights for the limited purpose of its Core Business as provided in Section 2.4;
		
	 Background Patents
	  	means all patents owned and/or controlled by the named Party and existing prior to the Effective Date of this Agreement or resulting from activities outside and independently from the framework
of this Agreement, other than the Patent Rights (defined herein);
		
	 Consideration
	  	means upfront payments (including license fees), royalties, milestone payments, issue fees, and any other receipt of value related to the sublicense of all or any of the Technology
Rights.
		
	 Effective Date
	  	means the date of this Agreement as set out at the top of the second page of this Agreement;
		
	 Confidential Information
	  	means all information and materials received by either Party from the other Party prior to the date hereof or pursuant to this Agreement, whether in the form of tangible or electronic media,
oral disclosures or otherwise, as further defined in Section 11.1;
		
	 Core Business
	  	means the core business of Licensor i.e. antiviral and anticancer drug discovery, development, and commercialization;
		
	 Disclosure
	  	means theses, articles, seminars and other written or oral presentations or disclosures containing or referring to Confidential Information disclosed to persons other than bound by the
confidentiality and publication provisions of this Agreement;

  

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	 First Commercial Sale
	  	means the first sale (other than for research or clinical trial purposes for development) of a Product or Process to a Third Party by Primagen or any of its Affiliates or
Sublicensees;
		
	 Improvements
	  	means all patentable and non-patentable inventions, discoveries, technology and information of any type whatsoever, including without limitation, Materials, methods, mechanisms of action,
processes, technical information, knowledge, experience and Know How which are made, licensed to or acquired by Primagen or its Affiliates or Sublicensees during the term of this Agreement related to the Technology Rights, having an effect on
Products or Processes and which:
		
		  	 •      utilize;

		
		  	 •      incorporate;

		
		  	 •      are derived from the Patent Rights;

		
		  	 •      are based on the Patent Rights;

		
		  	 •      could not be conceived, developed; or reduced to practice but for the use of the Patent Rights;
or

		
		  	 •      are necessary or useful in connection with the research, development, manufacture, marketing, sale,
use, commercialization and/or distribution of the Products or Processes;

		
	 Know how
	  	means the information, inventions and data (including, but not limited to, formulae, procedures, processes, protocols, techniques and results of experimentation and testing) concerning the
Technology Rights owned or licensed by Licensor or any of its Affiliates as of the Effective Date or at any time during the term of this Agreement and that are useful for the research and/or development and/or manufacture and/or use of the Product
or Processes, excluding Patent Rights therein;
		
	 Material
	  	means any and all materials, compositions, products and biologicals owned or licensed by Licensor or any of its Affiliates as of the Effective Date or at any time during the term of this
Agreement and that are useful for the research and/or development and/or manufacture and/or use of the Product or Process, and any and all intellectual property rights therein, excluding Patent Rights.
		
	 Net Sales
	  	means, with respect to any royalty bearing Product and Process, the gross amount invoiced on account of the First Commercial Sale of royalty bearing Product and Process by Primagen or its
Affiliates or its Sublicensees, to Third Parties, less the following (i) actual credits, allowances, discounts and rebates to, and chargebacks from the account of, such Third Parties (including without limitation Third Party distributors and
wholesalers) for defective, spoiled, damaged, out-dated, rejected or returned royalty bearing Product and Process; (ii) actual Federal, State, or local

  

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		  	government rebates for royalty bearing Product and Process; (iii) actual freight and insurance costs incurred in transporting such royalty bearing Product and Process to such Third Parties;
(iv) actual cash, quantity and trade discounts; (v) actual sales, use and value-added taxes and other consumption taxes or governmental charges incurred in connection with the exportation or importation of such royalty bearing Product and Process;
(vi) any out of pocket costs for collection and securing of invoiced amounts, and (vi) a reasonable allowance for bad debt, all in accordance with Generally Accepted Accounting Principles in the Netherlands. For purposes of determining Net Sales, a
sale shall have occurred when recognized in accordance with Primagen’s or its Affiliate’s or its Sublicensee ́s, as the case may be, normal accounting practice and consistent with Generally Accepted Accounting Principles in the
Netherlands. Sales of royalty bearing Product and Process by Primagen to any Affiliate that is a reseller thereof shall be excluded, and only the subsequent sale of such royalty bearing Product and Process by the Affiliate to a Third Party shall be
deemed Net Sales hereunder.
		
	 Patent Rights
	  	means (i) the Patents listed in Schedule 2 and (ii) any Patents based on any of the Patents of Appendix A, and (iii) any other Patents that would be infringed by or useful for the
manufacture, use, sale, offer for sale or import of a Product or Process and that are owned by Licensor or any of its Affiliates, as of the Effective Date or at any time during the term of this Agreement and (iv) any Patents that would be infringed
by or useful for the manufacture, use, sale, offer for sale or import of a Product or Process and that are licensed to Licensor as of the Effective Date or at any time during the term of this Agreement. Patents Rights will include any reissues,
confirmations, renewals, extensions, counterparts, divisions, continuations, continuations-in-part, supplemental protection certificates or utility models relating to the patents or patent applications described or referred to herein. It is
expressly understood that Patent Rights exclude Primagen Background Patents and Improvements;
		
	 Products
	  	mean any composition(s), compound(s), product(s), apparatus or Material(s) of which its research, development, manufacture, use, sale, supply or other disposition is covered by, incorporates
or utilizes the Technology Rights and which could not be conceived, developed or reduced to practice but for the use of the Technology Rights;
		
	 Processes
	  	mean any process of which its research, development, manufacture, use, sale, supply, service testing or other disposition is covered by, incorporates or utilizes the Technology
Rights;

  

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	 Sublicensees
	  	means any non-Affiliate that pursuant to a sublicense agreement is granted a sublicense by Primagen under the licenses granted by this Agreement;
		
	 Technology Rights
	  	means one or more of Materials, Know How and Patent Rights;
		
	 Valid Patent Claim
	  	means a claim of an issued and unexpired patent or patent application included within Patent Rights which has not been held permanently revoked, unenforceable or invalid by a decision of a court
or other governmental agency of competent jurisdiction, unappealable or unappealed within the time allowed for appeal, and which has not been disclaimed, denied or admitted to be invalid or unenforceable through reissue or disclaimer or otherwise.
If there should be two or more decisions within the same country that are conflicting with respect to the invalidity of the same claim, the decision of the highest tribunal shall thereafter control. However, should the tribunals be of equal
authority, then the decision or decisions holding the claim valid shall prevail where the conflicting decisions are equal in number and the majority of decisions shall prevail where the conflicting decisions are not equal in number;
		
	 Term
	  	means the date of April 1st 2003, as referred in Section 14.1
		
	 Territory
	  	means all countries of the world;
		
	 Third Party
	  	means a person or entity other than Licensor or Primagen or any of their respective Affiliate.

  

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 SCHEDULE 2 
 PATENT APPLICATION(S) 
 Pharmasset, Ltd.’s patent application, now published as WO 02/33128 and entitled, “Simultaneous
quantification of nucleic acids in diseased cells,” and all divisionals, continuations, continuations-in-part, reissues, substitutions, confirmations, updates, registrations, revalidations, reexaminations, renewals, extensions or the like of
any such patents and patent applications, to the extent that they relate to the mitochondrial toxicity technology. 
 Pharmasset is currently, with
Primagen’s agreement, filing “national phase” applications in the European Patent Office, Canada, Australia, New Zealand, Japan, and pursuing its application in the United States. 

			
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 Certain portions of this Exhibit have been omitted pursuant to a request for confidentiality. Such omitted
portions, which are marked with brackets and asterisks [***], have been separately filed with the Commission. 
  

 SCHEDULE 3 
 PARAMETERS TO MEASURE EFFORTS 
 (i) expended [***] Euros for research and/or development and/or production of a Product in the applicable
calendar year; 
 (ii) is manufacturing Product for a clinical trial under an approved IND or equivalent; 
 (iii) is in a Phase I trial with respect to a Product; 
 (iv) is in a Phase
II trial with respect to a Product; 
 (v) is in a Phase III trial with respect to a Product; 
 (vi) prepared documents for filing a Biologics License Application and/or a 510(k)/PMA (or its equivalent) in the United States, Europe or Japan with respect to a Product; 
 (vii) filed a Biologics License Application (or its equivalent) in the United States, Europe or Japan for a Product; 
 (viii) pursuing a filed Biologics License Application (or its equivalent) in the United States, Europe or Japan for a Product; 
 (ix) received approval of a Biologics License Application (or its equivalent) for a Product in the United States, Japan or Europe; 
 (x) a Product is launched or is being sold in the United States or Japan or Europe 
 (xi) one or more of the events described in Section 6.2 and 17.4 have occurred 

			
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 Certain portions of this Exhibit have been omitted pursuant to a request for confidentiality. Such omitted
portions, which are marked with brackets and asterisks [***], have been separately filed with the Commission. 
  

 SCHEDULE 4 
 ROYALTIES 
 Royalties on sale of Kits or equivalent, and/or test reagents used in Service Testing (scale up and/or bulk components)
(“Products”) via Primagen or its Affiliates shall be as follows: 
  

	•	 	Net Sales between US $ 0 and [***]: [***]% 

  

	•	 	Net Sales between US $ [***] and [***]: [***]% 

  

	•	 	Net Sales exceeding US $ [***]: [***]% 

 Royalties to be paid concerning
Service Testing will be based on the “kit” equivalents (100 Tests equivalent to 1 Kit). 

			
	 EXCLUSIVE PATENT LICENSE PHARMASSET
	  	CONFIDENTIAL / EXECUTION COPY APRIL 24, 2003

  

			
	SCHEDULE 5 –	  	Stock Option Agreement

			
	 EXCLUSIVE PATENT LICENSE PHARMASSET
	  	CONFIDENTIAL / EXECUTION COPY APRIL 24, 2003

  

 April 24, 2003 
  

 AGREEMENT 
 between 
 PHARMASSET, LTD.

 (“Optionee”) 
 and 
 PRIMAGEN HOLDING B.V. 
 (“Primagen” or the “Company”) 
  

 OPTION TO SUBSCRIBE 
 TO PRIMAGEN
COMMON SHARES 
  

			
	 EXCLUSIVE PATENT LICENSE PHARMASSET
	  	CONFIDENTIAL / EXECUTION COPY APRIL 24, 2003

  

 This Agreement is made the 24th day of April 2003 by and between: 
  

	1.	PHARMASSET LTD, a Barbados International Business Company with US research laboratories located at 1860 Montreal Road, Tucker, Georgia 30084, U.S.A.
(“Optionee”); 

 and 
  

	2.	PRIMAGEN HOLDING B.V., a limited liability company incorporated and existing under the laws of the Netherlands, having its registered office at Meibergdreef 59, 1105 BA
Amsterdam (“Primagen” or the “Company”); 

 The parties hereto referred to individually as
“Party” and collectively as the “Parties” 
 WHEREAS: 
  

	(a)	As of the date hereof, an exclusive patent and know how license agreement (the “License Agreement”) has been entered into by and between the Parties concerning
certain technology rights as defined in the License Agreement (the “Technology Rights”); 

  

	(b)	As partial consideration for the licenses granted under the License Agreement, a non-cash consideration has been agreed between the parties in the form of a stock option grant. In
this respect, article 6.2 of the Licence Agreement reads: 

  

	 	6.2	Non-cash Consideration: Stock option. In consideration of the rights granted herein to Primagen, upon execution of this Agreement, Primagen shall grant Pharmasset an option
to acquire a certain number of shares of the common stock of Primagen subject to the terms and conditions laid down in the Stock Option Agreement enclosed in Schedule 5 (the “Stock Option Agreement”).

  

	(c)	The Parties wish to enter into this agreement (the “Agreement”) in order to govern their respective obligations towards each other, not only in regard to certain
specific obligations of Optionee relating to the exercise of the option granted herein but also in regards of certain obligations of Optionee relating the shares to be acquired following such exercise. 

  

	(d)	The Parties hereto accept the respective obligations imposed upon them under the terms of this Agreement and, accordingly, shall execute this Agreement in evidence thereof.

			
	 EXCLUSIVE PATENT LICENSE PHARMASSET
	  	CONFIDENTIAL / EXECUTION COPY APRIL 24, 2003

 Certain portions of this Exhibit have been omitted pursuant to a request for confidentiality. Such omitted
portions, which are marked with brackets and asterisks [***], have been separately filed with the Commission. 
  

 NOW THEREFORE IT IS AGREED as follows: 
  

							
	 ARTICLE 1    OPTION TO PHARMASSET

			
	1.1	  		    	Grant of Option. Primagen hereby grants to Optionee the right (the “Option”) and Optionee accepts such right, to subscribe for [***] ([***]) common shares
(the “Shares”), each share with a nominal value of € 0,01 (one eurocent) and having an exercise price as specified in Article 3.1, in the capital of the Company, subject to the terms and conditions described in this
Agreement.
	
	 ARTICLE 2    EXERCISE OF OPTION

			
	2.1	  		    	Right to exercise. The Option shall be exercisable only upon the (forthcoming) occurrence of one of the seven events described in article 2.1.1 (the “Triggering
Events”), subject to the terms and conditions of this Agreement. 
			
		  	2.1.1	    	Triggering Events. For the purpose of this Agreement, a Triggering Event means:
				
		  		    	(i)	  	The sale (i) of more then fifty percent (50%) of the issued and outstanding common share capital of the Company as of the date of such (anticipated) sale or (ii) of all (or substantially all) of
the business, assets and liabilities of the Company (the “Sale”).
				
		  		    	(ii)	  	The effective admission and listing of more than fifty percent (50%) of the issued and outstanding common share capital of the Company to the official list of any recognized stock exchange (a
“Stock Exchange Listing”), however to exclude any new shares issued or treasury shares listed in connection with a Stock

  

 2 

			
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		  		    		  	Exchange Listing to raise new capital. (Pharmasset may opt to keep options after this triggering event and exercise anytime thereafter)
				
		  		    	(iii)	  	Primagen’s receipt of Optionee’s notice of termination of the Licence Agreement pursuant to its article 5.3, such notice remaining uncontested for a period of one month following
receipt thereof, or, when contested in accordance of article 5.4 of the License Agreement, Primagens’s receipt of a signed settlement or final and binding arbitration ruling permitting said termination as provided in article 5.4 of the License
Agreement (the “License Termination”);
				
		  		    	(iv)	  	Change of control of Pharmasset, provided the Option is exercised within 30 calendar days after such change of control;
				
		  		    	(v)	  	At Primagen’s request upon Pharmasset approval;
				
		  		    	(vi)	  	At Pharmasset’s request upon Primagen approval;
				
		  		    	(vii)	  	Anytime between January 1 2009 and December 31, 2009.
			
	2.2	  		    	Exercise in whole. The Option may be exercised by Optionee, in whole and for all of the Shares, but not in part or for less than all of the Shares, without the prior
written consent of the Company.
			
	2.3	  		    	Notification of Triggering Event. Primagen shall notify Optionee promptly in writing of the anticipated occurrence of a Sale or a Stock Exchange Listing, it being understood
that the giving of such notice by Primagen shall not be a condition to the right of Optionee to exercise the Option.
			
	2.4	  		    	Method of Exercise. The Option shall be exercisable by written notice (the “Option Notice”) of Optionee to the Company, which shall state the election to
exercise the Option.

  

 3 

			
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	2.5	  		    	Exercise Period. The period during which the Option may be exercised is:
			
		  	(i)	    	In case of a Sale: fourteen calendar days prior to the effective date relating to a Sale of Primagen.
			
		  	(ii)	    	In case of a Stock Exchange Listing: fourteen calendar days prior to the effective date relating to a Stock Exchange Listing, or, if permitted by the applicable stock exchange
having accepted such listing, anytime after fourteen calendar days after a Stock Exchange Listing.
			
		  	(iii)	    	In case of a License Termination: fourteen calendar days following the final and binding date of termination of the License Agreement. 
			
	2.6	  		    	Lapse. If the Option is not exercised during the Exercise Period, the Option shall immediately terminate upon the elapse of the Exercise Period.
			
	2.7	  		    	Adjustments upon changes in capitalization. In the event of any change in the number of issued and outstanding shares of the common stock by reason of any stock
dividend, subdivision, merger, recapitalization, combination, conversion or exchange of shares, or any other change in the corporate or capital structure of the Company (including, without limitation, the declaration or payment of an extraordinary
dividend of cash or securities) which would have the effect of diluting or otherwise adversely affecting Optionee’s rights and privileges under this Agreement, the number and kind of the shares and the consideration payable in respect of the
Shares shall be appropriately and equitably adjusted to restore to Optionee its rights and privileges under this Agreement.

  

 4 

			
	 EXCLUSIVE PATENT LICENSE PHARMASSET
	  	CONFIDENTIAL / EXECUTION COPY APRIL 24, 2003

 Certain portions of this Exhibit have been omitted pursuant to a request for confidentiality. Such omitted
portions, which are marked with brackets and asterisks [***], have been separately filed with the Commission. 
  

							
	2.8	  		    	Confidentiality. Optionee shall at all times (and shall procure that any person connected with Optionee shall at all times) keep all information relating to a Triggering Event
secret and strictly confidential.
	
	 ARTICLE 3    EXERCISE PRICE

			
	3.1	  		    	Exercise Price. The subscription purchase price to be paid for the Shares by Optionee to Primagen shall be [***] ([***]) per share, and as a result the aggregate subscription
price (the “Exercise Price”) shall be ([***] x [***]) [***] ([***]).
			
	3.2	  		    	Payment. Optionee shall pay the Exercise Price in cash (in Euro), in immediately available funds by wire transfer to (i) a bank account designated in writing by Primagen at
the Closing, or (ii) the trusted third party account (kwaliteitstrekening) of the notary elected pursuant to article 4.2 (the “Trust”), held by the Trust as trustee for Optionee. Immediately after the Issuance of the Shares
to Optionee as set out in article 4.2, the Trust shall hold same amount as trustee for Primagen and the Optionee shall be deemed to have paid Primagen.
	
	 ARTICLE 4     ISSUANCE OF SHARES

			
	4.1	  		    	Conditions Precedent to Issue. Notwithstanding the exercise of the Option, no shares will be issued to Optionee unless Optionee, before or simultaneously with the Issue, shall
have unconditionally and irrevocably signed (i) the Deed of Adherence as described in art 5.2 of this Agreement and (ii) a proxy constituting and appointing Biotech Development Group B.V. (“BDG”) or any party designated by BDG as
its attorney in accordance with Dutch law, with full

  

 5 

			
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		  		    	power of substitution and resubstitution, to (a) cause the Shares to be counted as present at any Company Stockholders’ Meeting, (b) vote its shares at any Company
Stockholders’ Meeting, however called, and (c) execute consents in respect of the Shares (the “Voting Proxy”). Should Optionee fail to sign the Deed of Adherence and/or to issue the Voting Proxy within one month following the
Option Notice, this Agreement shall automatically terminate, without the right of Optionee to claim any damages or compensation.
			
	4.2	  		    	Deed and Date of Issuance. Subject to the provisions of this Agreement, the issuance of the Shares (the “Issuance”) to the Optionee shall be executed, without
undue delay following the date of Primagen’s receipt of the Option Notice, by means of a deed of issue to be passed before a Dutch civil-law notary designated by Primagen. The exact date of issuance of the Shares to be issued in connection with
the Option shall be designated by the Company at its sole discretion, provided that Optionee shall timely become the holder of the Shares and the rights related thereto.
			
	4.3	  		    	No Liens. Primagen represents and warrants to Optionee that on the occasion of the Issuance, the Shares will be issued by the Company free from pledges, liens, charges and any
other encumbrances, including but not limited to option rights of third parties, other then those created by this Agreement.
			
	4.4	  		    	Sufficient Authorised Capital. So long as the Option pursuant to this Agreement remains exercisable (or may become exercisable), save with the prior written consent of
Optionee, the Company shall keep available sufficient authorised but unissued capital or treasury shares to satisfy the subscription rights at set forth in this Agreement, after giving effect to all other options, warrants, convertible securities
and other rights of third parties to purchase shares of common stock from Primagen.

  

 6 

			
	 EXCLUSIVE PATENT LICENSE PHARMASSET
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	4.5	  		    	Rights of first refusal: waiver. According to mandatory Dutch law and the Articles of Association of the Company (the “Articles of Association”), the
shareholders of the Company as of the date hereof (the “Current Shareholders”), proportional to their shareholding, have a right of first refusal (“Right of First Refusal”) with respect to any rights to acquire
Shares newly issued, such rights however having been waived by the Current Shareholders according to the statement attached to this Agreement as Appendix 1.
			
	4.6	  		    	Costs. The notarial costs and expenses in relation to the Issue shall be borne by the Company. 
	
	 ARTICLE 5    DRAG ALONG AND ADHERENCE TO EXISTING SHAREHOLDERS ARRANGEMENTS

			
	5.1	  		    	Sale and Drag Along. Regardless of the other provisions of this Article 5 Optionee unconditionally covenants and warrants that, in the event a party, or a consortium of
parties (the “Offeror”) make(s) a bona fide offer to acquire all of (but not less than) the Company’s outstanding Shares and the simple majority of the meeting of shareholders of the Company (the “Accepting
Shareholders”) find(s) such take-over bid (the “Take-Over Bid”) acceptable and resolves to accept the Take-Over Bid, Optionee shall be obliged, if so requested by the Offeror or a party authorised by the same, on a fifteen
days notice by or on behalf of the Accepting Shareholders (the “Take-Over Notice”) to Optionee, to sell and transfer its Shares to the Offeror, pursuant to the terms specified in the Take-Over Bid, for the amount set forth in the
Take-Over Bid and provided that the terms and conditions of the Take-Over Bid shall be substantially identical for all Shareholders. Optionee shall in such case not be required to make any representations or warranties in connection with any sale of
its shares pursuant to this article 5.1,

  

 7 

			
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	  	CONFIDENTIAL / EXECUTION COPY APRIL 24, 2003

  

							
		  		    	other than customary representations relating to (i) the ownership, free and clear of liens, of the Shares being transferred and (ii) the due authorization and enforceability of the
documents relating to such sale and transfer.
			
	5.2	  		    	Adherence to existing shareholders arrangements: Deed of Adherence. Before the Issuance, the Optionee shall sign and execute a written statement (“Deed of
Adherence”) confirming that it has been given and read a copy of the prevailing shareholders agreements(s) as of the date of the Issuance. By way that Deed of Adherence, Optionee shall further, unconditionally and irrevocably, covenant with
each of the other shareholders of Primagen to perform and be bound by all the terms of said shareholders agreement(s), as if the Optionee were a Shareholder who is party to the Shareholders Agreement.

  

 8 

			
	 EXCLUSIVE PATENT LICENSE PHARMASSET
	  	CONFIDENTIAL / EXECUTION COPY APRIL 24, 2003

  

							
	 ARTICLE 6    REPRESENTATIONS, WARRANTIES AND COVENANTS

			
	6.1	  		    	Mutual Representations and Warranties. Each of Optionee and Primagen represents and warrants to the other that:
			
		  	6.1.1	    	it has the corporate power and authority and the legal right to enter into this Agreement and to perform its obligations hereunder;
			
		  	6.1.2	    	it has taken all necessary corporate action on its part to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder;
			
		  	6.1.3	    	this Agreement has been duly executed and delivered on its behalf, and constitutes a legal, valid, binding obligation, enforceable against it in accordance with its terms except as
may be limited by bankruptcy, insolvency, moratorium or other similar laws affecting creditor’s rights; and
			
		  	6.1.4	    	The execution and delivery of this Agreement and related documents to which such Party is a Party and the consummation of the transactions contemplated hereby and thereby do not: (a)
require any material consent, authorization or other action of, or any filing with any governmental authority or any other person (b) violate or conflict with any provision of such Party’s articles of association or other governing documents
(c) constitute a default under, conflict with, violate, or give rise to a right of termination, cancellation or acceleration or to loss of a material benefit under any law, permit or order to which such Party is or hereafter may be a Party or by
which it or its properties are or hereafter may be bound or (d) result in any lien on any property or assets of such Party.
			
		  	6.1.5	    	There is no action pending, or to the best of the knowledge of such Party, threatened against such Party that could reasonably be expected to affect the transactions contemplated by
this Agreement or the related documents.

  

 9 

			
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	6.2	  		    	Reasonable Assurances. Each Party agrees that it will execute and deliver, or cause to be executed and delivered, on or after the date of this Agreement, all such other
instruments and will take all reasonable actions as the other Party may reasonably request from time to time in order to effectuate the provisions and purposes of this Agreement. Unless the Party is required to execute such instruments or take such
actions pursuant to this Agreement, the Party performing such matters will be entitled to recover from the other Party its out-of-pocket costs and expenses.
	
	 ARTICLE 7    OTHER PROVISIONS

			
	7.1	  		    	Entire agreement. This Agreement, inclusive its schedules and other annexes, contains the entire agreement and cancels and sets aside any prior agreement or commitment or
arrangement concerning the subject matter between the Parties.
			
	7.2	  		    	No waiver. No delay or omission on the part of any Party to this Agreement in exercising any right, power or remedy provided by law or under this Agreement shall impair such
right, power or remedy or operate as a waiver thereof. The single or partial exercise of any right, power or remedy provided by law or under this Agreement shall not preclude any other or further exercise thereof or the exercise of any other right,
power or remedy. The rights, powers and remedies provided in this Agreement are cumulative and not exclusive of any rights, powers and remedies provided by law.
			
	7.3	  		    	Partial invalidity. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this
Agreement. Any such invalid or unenforceable provision shall be replaced or be deemed to

  

 10 

			
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	  	CONFIDENTIAL / EXECUTION COPY APRIL 24, 2003

  

							
		  		    	be replaced by a provision that is considered to be valid and enforceable and which interpretation shall be as close as possible to the intent of the invalid
provision.
			
	7.4	  		    	No amendment. No amendment to this Agreement shall be valid or effective unless in writing and executed by each Party.
			
	7.5	  		    	 Notices. All notices, requests and other communications to either party hereunder shall be in writing (including facsimile or
similar writing) and shall be given, if to Optionee, to:
  
 Pharmasset, Ltd.
 #2204
 2881 Peachtree Road
 Atlanta, Georgia 30305, U.S.A.
 Facsimile: +11 678 395 0030 (telephone
confirm: +11 678 395 0050)
 Attn.: Executive Director
  
 With a copy to:
  
 Pharmasset, Inc.
 1860 Montreal Road
 Tucker

Georgia 30084, U.S.A.
 Facsimile: +11 678 395 0030 (telephone confirm: +11
678 395 0050)
 Attn.: Legal Counsel
  
 If to Primagen, to:
  
 Primagen Holding B.V.
 Meibergdreef 59
 1105 BA Amsterdam
 The Netherlands
 Facsimile: +31 20
566 9081 (telephone confirm: +31 20 566 8575)
 Attn.: Bob van Gemen, Chief Executive Officer

  

 11 

			
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		  		    	or to such other address or facsimile number as either party may hereafter specify for the purpose by notice to the other party hereto. Each such notice, request or other
communication shall be effective (i) if given by facsimile, when such facsimile is transmitted to the facsimile number specified in this Section 7.5 and the appropriate facsimile confirmation is received or (ii) if given by any other means, when
delivered at the address specified in this Section 7.5.
			
	7.6	  		    	Assignment. No party shall, unless permitted explicitly in writing by the other party, assign or transfer or purport to assign or transfer any of its rights or obligations
under this Agreement without the prior written consent of the other Party.
			
	7.7	  		    	Confidentiality. Except as otherwise expressly provided in this Agreement, neither Party shall disclose any terms or conditions of this Agreement including without limitation
their existence, terms, or any disputes relating to them, or any information concerning the Option to any third Party without the prior consent of the other Party.
			
	7.8	  		    	Public Announcement. Optionee and Primagen will consult with each other before issuing any press release or making any public statement with respect to this Agreement and the
transactions contemplated hereby and shall not issue any press release or make any public statement without the prior consent of the other Party, which shall not be unreasonably withheld. Notwithstanding the foregoing, any such press release or
public statement as may be required by applicable law or any listing Agreement with any national securities exchange, may be issued prior to such consultation, if the Party making the release or statement has used its reasonable efforts to consult
with the other Party.

  

 12 

			
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	7.9	  		    	Applicable Law. This Agreement shall be exclusively governed by and construed and enforced in accordance with the substantive laws of The Netherlands.
			
		  		    	Dispute Resolution. Any dispute arising out of or in connection with this agreement shall be exclusively settled as defined in Article 16, part 1 of the License
Agreement.
			
	7.10	  		    	Amendments in writing. No change shall be made to this Agreement except in writing and signed by the duly authorised representatives of the Parties.

  

 13 

 IN WITNESS WHEREOF this agreement has been signed and executed in Amsterdam on the day and year first above
written. 
  

									
		 	 Pharmasset, Ltd.
	 		 		 	 Primagen Holding B.V.

			
	 /s/ Martin J.K. Pritchard
	 		 	 /s/ Bob van Gemen

	 Name: 
	 	 Martin J.K. Pritchard
	 		 	 Name: 
	 	 Dr. Bob van Gemen

	 Title: 
	 	 Director
	 		 	 Title: 
	 	 Chief Executive Officer

					
		 	 Pharmasset, Ltd.
	 		 		 	
			
	 /s/ Raymond F. Schinazi
	 		 	
	 Name: 
	 	 Dr. Raymond F. Schinazi
	 		 		 	
	 Title: 
	 	 Director
	 		 		 	

  

 14Non-Exclusive Sublicense Agreement, dated August 26, 2005

 EXHIBIT 10.5 
 NON-EXCLUSIVE SUBLICENSE AGREEMENT 
 Between 
 Apath, L.L.C. 
 And 

Pharmasset, Inc. 
 For

 HCV REPLICON 
 And 
 RELATED INTELLECTUAL PROPERTY 

 Certain portions of this Exhibit have been omitted pursuant to a request for confidentiality. Such omitted
portions, which are marked with brackets and asterisks [***], have been separately filed with the Commission. 
  

 NON-EXCLUSIVE SUBLICENSE AGREEMENT 
 THIS NON-EXCLUSIVE SUBLICENSE AGREEMENT (“Agreement”) is made and entered into August 26, 2005 (the “Effective
Date”) by and between Apath, L.L.C., a limited liability company of the State of Missouri, with a business address at 893 N. Warson Road, St. Louis, Missouri 63141 (“Apath”); and Pharmasset, Inc., a Delaware company, with a
business address at 303A College Road East, Princeton, New Jersey 08540 (“Pharmasset”). Apath and Pharmasset are hereinafter referred to individually as a “Party” or collectively as “Parties.”

 WHEREAS, Apath has obtained from Washington University in St. Louis (“WU”) exclusive commercial license rights, with the
right to grant sublicenses, to certain Intellectual Property and Tangible Property (as those terms are subsequently defined in this Agreement) relating to the Hepatitis C virus (“HCV”) under a license agreement dated October 31, 1997,
as amended pursuant to amendments with effective dates of January 15, 2003 and August 11, 2003 (collectively, the “Primary WU License Agreement”); 
 WHEREAS, the Parties had entered into a License Agreement dated October 18, 2000 and subsequently amended on January 30, 2004 (collectively, the “10/18/2000 License Agreement”) whereby
non-exclusive sublicense rights to the Intellectual Property and Tangible Property had originally been granted by Apath to Pharmasset; 
 WHEREAS, Apath wishes to allow Pharmasset to continue laboratory research and screening using the Intellectual Property and Tangible Property, and for other drug discovery and development purposes, upon the revised terms and conditions
hereinafter set forth in this Agreement (and with the resulting termination of the 10/18/2000 License Agreement), and is willing to grant a sublicense for such use; and 
 WHEREAS, Pharmasset desires to maintain its sublicense for continued use the Intellectual Property and Tangible Property for its own laboratory research and screening use, and for other drug discovery and development
purposes upon the revised terms and conditions hereinafter set forth in this Agreement (and with the resulting termination of the 10/18/2000 License Agreement). 
 NOW THEREFORE, in consideration of the above premises, the mutual promises and covenants contained herein, and other good and valuable consideration, the receipt and legal sufficiency of which is acknowledged by both
Parties, the Parties hereto agree as follows: 
 1. Termination of the 10/18/2000 License Agreement. 

(a) Upon the full execution of this Agreement by the Parties hereto, the 10/18/2000 License Agreement shall terminate in favor of this Agreement and
shall be of no further force or effect. The Parties expressly agree that the termination of the 10/18/2000 License Agreement shall be comprehensive and, notwithstanding any provision contained therein, shall not result in the survival of any rights
or obligations of either Party. Further, the Parties expressly waive the provisions of Section 10.5 of the 10/18/2000 License Agreement requiring three (3) month’s written notice prior to termination. 
 (b) The Parties agree that, as of the Effective Date, (i) each Party is in full compliance with the terms and conditions of the 10/18/2000 License
Agreement, (ii) neither Party is aware of any claim it may have against the other for breach of any provision of the 10/18/2000 License Agreement, and (iii) each Party hereby waives any right to bring suit or other action against the other
under the 10/18/2000 License Agreement. 
  

					
		  	- 2 -	  	 Apath/PHARMASSET
 Non-Exclusive Sublicense Agreement
 (TP/IP)

 Certain portions of this Exhibit have been omitted pursuant to a request for confidentiality. Such omitted
portions, which are marked with brackets and asterisks [***], have been separately filed with the Commission. 
  

 2. Definitions. For the purposes of this Agreement, the following words and phrases
shall have the following meanings: 
 (a) “Affiliate” of a Party means any person, organization, or entity that is, directly
or indirectly, controlling, controlled by, or under common control with the Party. The term “control” (including, with correlative meaning, the terms “controlled by” and “under common control with”), as used with
respect to any person, organization, or entity, means the possession, directly or indirectly, of the power to direct, or cause the direction of, the management and policies of such person, organization, or entity, whether through the ownership of
voting securities, or by contract or court order, or otherwise. The ownership of voting securities of a person, organization, or entity shall not, in and of itself, constitute “control” for purposes of this definition, unless said
ownership is of a majority of the outstanding securities entitled to vote of such a person, organization, or entity. 
 (b)
“Compound” means any inhibitor of HCV viral function made by or for Pharmasset in the course of a research and/or development program for the purpose of finding a therapeutic or prophylactic agent for the treatment of HCV, and which
inhibitor or any precursor thereto is identified or validated by means of the Covered Technology. 
 (c) “Field of Use”
means, subject to the exclusion which follows, Pharmasset’s own drug discovery, screening, research and development programs undertaken with respect to any Compound. Without in any way limiting the foregoing, “Field of Use” shall
include (i) developmental activities such as use in conjunction with research on a Compound before its commercial launch, and (ii) laboratory research and screening intended to identify or validate a Compound. 
 “Field of Use” does not include any laboratory testing and/or research services of the type set out above or otherwise, the primary purpose of
which is intended to or reasonably appears to be intended to identify or develop information to support any regulatory filings needed to make, use or sell a [***] Inhibitor. 
 (d) “Insurance Minimum Amounts” means minimum annual limits of USD $2,000,000 per claim and USD $5,000,000 in the aggregate. 

(e) “Intellectual Property” means all know-how (including laboratory methodology), research or technical data and Licensed Patent
Rights that are licensed (with right to grant sublicenses) to Apath from WU under the Primary WU License Agreement. 
 (f) “Licensed
Patent Rights” means (i) U.S. Patent Application Serial Nos. [***], all U.S. and ex-U.S. patent applications based or claiming priority thereon or relating thereto, and all patents issuing therefrom, including, but not limited to, U.S.
Patent Nos. [***]; and (ii) any other Patent Rights claiming or encompassing manufacture, use, sale, distribution and/or practice within the Field of Use that are licensed from WU to Apath under the Primary WU License Agreement or any
amendments thereto. 
 (g) “Patent Rights” means all patent applications filed anywhere in the world, and
continuation-in-part, continuation, divisional, and continued-prosecution applications of such patent applications, any patents granted on any aforesaid applications, and any renewals, extensions, patents of addition, revivals, re-examinations, and
reissues thereof, and any patents which may issue therefrom. 
 (h) “[***] Inhibitor” means a HCV viral inhibitor with a
primary mechanism of action derived from interfering with the function of the [***] element of the HCV genome. 
  

					
		  	- 3 -	  	 Apath/PHARMASSET
 Non-Exclusive Sublicense Agreement
 (TP/IP)

 Certain portions of this Exhibit have been omitted pursuant to a request for confidentiality. Such omitted
portions, which are marked with brackets and asterisks [***], have been separately filed with the Commission. 
  

 (i) “Covered Technology” means any Intellectual Property used by Pharmasset
(including Tangible Property and Tangible Property Improvements) within the Field of Use that (i) in the absence of a license from Apath, would infringe a Valid Claim of Licensed Patent Rights and/or (ii) involves a use thereof permitted
to Pharmasset under this Agreement. For the purpose of this Agreement, “Valid Claim” means a patent claim in an issued patent included within the Licensed Patent Rights which has not been disclaimed or canceled; provided, however,
that in the event any claim of a patent that falls within the Licensed Patent Rights hereunder shall be held invalid or not infringed by a court of competent jurisdiction in a final decision from which an appeal cannot be or is not taken, or
certiorari cannot be granted, then, for the purposes of this Agreement, effective as of the date of such final decision, such claim held invalid shall be considered canceled from such patent and any such claim held not infringed shall be considered
limited in scope in accordance with such final decision. 
 (j) “Tangible Property” means: 
  

	 	(i)	Cell lines that express [***] (including the [***]) and the HCV replicon cell lines (including [***]), reagents used to make the cell lines (including [***]), and the [***] ([***]).

  

	 	(ii)	Any other biological materials (whether or not patented) provided by Apath to Pharmasset which have been or are presently being utilized by Pharmasset or others authorized hereunder
as a causative factor in identifying, isolating, or validating a Compound, except such biological materials which are not proprietary to Apath or are generally available to the public. 

 3. Grant. Subject to the terms and conditions of this Agreement, Apath hereby grants to Pharmasset, and Pharmasset hereby accepts, a
non-exclusive, non-transferable sublicense (without the right to sublicense others) under the Intellectual Property to make (i.e., replicate), use (but not sell or for any other commercial purpose) and practice Covered Technology encompassed by the
Intellectual Property. This grant shall be retroactive to Pharmasset’s first use of Covered Technology that would require the grant of rights under the Intellectual Property as contemplated herein. Notwithstanding the foregoing, Apath grants
Pharmasset no license or sublicense under the Intellectual Property, and the sublicense granted hereunder specifically excludes, any rights not included within the definition of the term “Covered Technology”. 
 4. Restrictions on Grant. The sublicense grant set forth in this Agreement is subject to the following conditions and restrictions, in
addition to the other terms of this Agreement: 
 (a) The sublicense granted hereunder shall not be construed to confer any rights upon
Pharmasset by implication, estoppel, or otherwise as to any other technology of WU or of Apath, except as expressly set forth in this Agreement; 
 (b) As between Pharmasset and Apath, title to Intellectual Property and Tangible Property shall remain in WU and/or Apath, and no rights are to be transferred to Pharmasset hereunder other than as specifically set forth herein;
additionally, the transfer of Tangible Property to Pharmasset by Apath is not to be considered a conditional or unconditional sale of goods; provided, however, that Pharmasset will own all rights, including all intellectual property rights,
inventions, ideas, know-how, trade secrets, discoveries and other subject matter 

  

					
		  	- 4 -	  	 Apath/PHARMASSET
 Non-Exclusive Sublicense Agreement
 (TP/IP)

 Certain portions of this Exhibit have been omitted pursuant to a request for confidentiality. Such omitted
portions, which are marked with brackets and asterisks [***], have been separately filed with the Commission. 
  

 
conceived and reduced to practice solely by Pharmasset’s employees, by third parties retained by Pharmasset or by such Pharmasset employees and third
parties working together; 
 (c) Pharmasset shall not distribute Intellectual Property and/or Tangible Property and Tangible Property
Improvements (as defined in Section 5 below) to any third party (including any Affiliate) without obtaining the prior written consent of Apath. Once the consent of Apath is granted (which consent shall not be unreasonably withheld or delayed),
Pharmasset shall be entitled to distribute the Intellectual Property and/or Tangible Property and Tangible Property Improvements to its Affiliates, who shall be bound by the terms of this Agreement by accepting such Intellectual Property and/or
Tangible Property or Tangible Property Improvements. Prior to providing the Tangible Property or Tangible Property Improvement to any Affiliate, Pharmasset shall notify Apath of the identity of such Affiliate, and Pharmasset shall provide such
Affiliate with the terms and conditions of this Agreement and take reasonable measures to ensure that the terms are understood by such Affiliate. Pharmasset shall guarantee the full and complete performance of all duties and obligations hereunder by
any such Affiliate. 
 (d) If through the course of research within the Field of Use conducted by Pharmasset, a candidate for pharmaceutical
products for treatment or prophylaxis of HCV is discovered to act as a [***] Inhibitor, such research on such a [***] Inhibitor must immediately cease unless Pharmasset obtains a further grant of rights therefor. 
 (e) Use of the Tangible Property and Tangible Property Improvements is subject to United States laws governing the export of technical data, computer
software, laboratory prototypes and other commodities. Pharmasset shall be responsible for complying with all applicable laws and regulations regarding its use of the Tangible Property and Tangible Property Improvements. 
 5. Rights to Improvements. Apath agrees that use by Pharmasset of the licensed Tangible Property as provided herein within the Field of Use
shall not give rise to any claim by Apath against Pharmasset with respect to Pharmasset’s intellectual property, including Pharmasset’s pharmaceutical product candidates and products, subject to the following: (i) so long as such
pharmaceutical product candidates and products do not include any biological material containing, in whole or in part, Tangible Property or Tangible Property Improvements, as defined below; (ii) so long as such candidates and products do not
include a [***] Inhibitor; and (iii) except for Tangible Property Improvements. The parties acknowledge that Pharmasset may discover or develop progeny, derivatives and modifications to the licensed Tangible Property (“Tangible Property
Improvements”). In the event that Pharmasset wishes to commercialize such Tangible Property Improvements, then Pharmasset shall notify Apath in a timely way, under the Confidentiality provisions agreed to herein, of the discovery or
development thereof specifying the biological nature and composition thereof as well as the process for making such Tangible Property Improvements. (In the preceding sentence, “commercialize” shall include the sale or license of the
Tangible Property Improvement to a third party, or other commercialization; but “commercialize” shall not include the use of the Tangible Property Improvements in Pharmasset’s internal research and development activities.)
Apath will have the first right to negotiate in a timely way an exclusive commercial license from Pharmasset, with terms to be negotiated in good faith, to commercialize such Tangible Property Improvements. If Apath declines such license or does not
negotiate in a timely way, then Pharmasset will have the right to commercialize such Tangible Property Improvements solely to the extent that such Tangible Property Improvements are not covered by any Intellectual Property; but in any event,
Pharmasset may not license such Tangible Property Improvements at terms less favorable to Pharmasset than those which 

  

					
		  	- 5 -	  	 Apath/PHARMASSET
 Non-Exclusive Sublicense Agreement
 (TP/IP)

 Certain portions of this Exhibit have been omitted pursuant to a request for confidentiality. Such omitted
portions, which are marked with brackets and asterisks [***], have been separately filed with the Commission. 
  

 
Pharmasset offered to Apath and which Apath declined, without first offering such better terms to Apath as set forth above. 
 6. Receipt of Tangible Property. Pharmasset acknowledges that it has received the Tangible Property from Apath. Apath, from time to time,
agrees to provide Pharmasset (if necessary) with additional reasonable quantities of Tangible Property sufficient for Pharmasset to exercise its rights under this Agreement within the Field of Use. 
 7. Safety and Handling. TANGIBLE PROPERTY CONTAINS BIOLOGIC MATERIAL WHICH MAY BE INFECTIOUS OR WHICH MAY PRODUCE OTHER MATERIALS WHICH
MAY BE INFECTIOUS. THE INFECTIVITY OF THE TANGIBLE PROPERTY HAS NOT BEEN TESTED. HCV IS A BLOOD-TRANSMITTED BSL2 LEVEL HUMAN PATHOGEN. AFTER RECEIPT OF THE TANGIBLE PROPERTY, PHARMASSET SHALL ENSURE THAT THE TRANSPORT, HANDLING, INACTIVATION AND
DISPOSAL OF THE TANGIBLE PROPERTY ARE DONE IN ACCORDANCE WITH ALL APPLICABLE RECOMBINANT DNA AND BIOSAFETY RULES, REGULATIONS AND GUIDELINES ACCEPTED AND APPROVED BY PHARMASSET AND ITS COUNTRY OF RESIDENCY. 
 8. Sublicense Fees. In consideration of the rights, privileges, and sublicense granted hereunder, Pharmasset shall pay to Apath fees as set
forth below: 
 (a) Fixed Sublicense Fee. A fixed sublicense fee in the amount of [***] Dollars (USD $[***]), in accordance
with the following schedule: (i) [***] Dollars (USD $[***]) within 30 days of the Effective Date of the Agreement; (ii) [***] Dollars (USD $[***]) on October 18, 2006; and (iii) [***] Dollars (USD $[***]) on October 18,
2007. The entire amount of the fixed sublicense fee specified in this Section 7(a) shall be paid by Pharmasset to Apath according to the schedule set forth above, irrespective of whether Pharmasset exercises its right to terminate the Agreement
as provided in Section 16 (c). 
 (b) Annual Maintenance Fee. An annual license maintenance fee of [***] Dollars (USD
$[***]), payable on October 18, 2005 and on each subsequent anniversary of that date thereafter, provided that this Agreement has not been terminated pursuant to Section 16 prior to the relevant anniversary. 
 Except as expressly provided in this Agreement, Pharmasset will have no other financial obligation to Apath in connection with this Agreement. 
 9. Confidentiality. During the term and in the performance of this Agreement, it is anticipated that either Party
(“Discloser”) may provide the other Party (“Confidant”) with Discloser’s own proprietary information or third party proprietary information in its possession for which it has the obligation to keep confidential
as well as the right to disclose on a confidential basis to Confidant (“Confidential Information”). During the term of this Agreement and for a period of five (5) years following the date of termination of this Agreement,
Confidant shall maintain in confidence all Confidential Information designated in writing by Discloser as “CONFIDENTIAL” (or with another suitable marking) or known by the Parties to be confidential and will take all reasonable steps to
prevent disclosure or dissemination of Discloser’s Confidential Information to any third party without prior written permission from Discloser. The Parties hereto agree, except as otherwise provided in this Agreement, that the terms and
conditions of this Agreement are Confidential Information of Apath and Pharmasset, and shall be subject to the confidentiality protection requirements 

  

					
		  	- 6 -	  	 Apath/PHARMASSET
 Non-Exclusive Sublicense Agreement
 (TP/IP)

 Certain portions of this Exhibit have been omitted pursuant to a request for confidentiality. Such omitted
portions, which are marked with brackets and asterisks [***], have been separately filed with the Commission. 
  

 
provided hereunder. Information shall not be considered to be Confidential Information, however, if: (i) it was independently known by Confidant prior
to its receipt from Discloser, which Confidant can establish by adequate written documentation; (ii) it was made available to Confidant as a matter of lawful right by a third party; (iii) it is generally available in the public domain, or
later becomes available to the public through no fault of or breach of this Agreement by Confidant; or (iv) it is independently developed by Confidant without the benefit of information disclosed hereunder, which Confidant can establish by
adequate written documentation. Notwithstanding the above, if Confidential Information is required by law to be disclosed, the Confidant may do so limiting the disclosure to that information sufficient to meet its legal obligations after notifying
Discloser in advance of its intent to do so. 
 10. Publication. If Pharmasset wishes to publish any articles in scientific
journals or give public presentations referring to the Tangible Property or Tangible Property Improvements or describing the use of the Tangible Property provided hereunder or Tangible Property Improvements, Pharmasset shall acknowledge
Dr. Charles M. Rice as the source of the Tangible Property. No disclosure of the existence of, or the terms of, this Agreement may be made by either Party; except that either Party may disclose the existence and terms of this Agreement to
its respective attorneys, accountants, other professional advisors, and current and prospective investors in the business on a strict “need to know” basis, and who shall be subject to confidentiality requirements no less restrictive than
those set forth in Section 9 above. No Party shall use the name, trademark, trade name or logo of the other Party or of any of their faculty, staff, trustees, managers, members, or employees, or any adaptation thereof, in any publicity, news
release, disclosure, advertising, promotional, or sales literature relating to this Agreement or its subject matter, except as may be required by law, without prior written consent being obtained, as appropriate, from the other Party. 
 11. Indemnification. Pharmasset shall indemnify, defend, and hold Apath and its managers, members, directors, officers, employees,
consultants, representatives, and agents, and each of the aforementioned persons’ heirs and assigns (“Apath Indemnitees”) and WU and its trustees, faculty, staff, employees, and students, and each of the aforementioned
persons’ heirs and assigns (“WU Indemnitees”), harmless from and against any and all claims, demands, actions, costs, or liabilities, in whatever form, including but not limited to claims of infringement related to the products
or activities of Pharmasset (except for infringement with respect to or arising from Pharmasset’s use of the Tangible Property and Intellectual Property licensed hereunder), and including reasonable attorney fees, witness fees, and court costs
at both trial and appellate levels (collectively, “Claims”), for any loss, damage, or injury to persons or property, or loss of life, caused by the acts or omissions of Pharmasset, its officers, agents, or employees, or by third
parties acting on behalf of, or under authorization from, Pharmasset (whether by grant of sublicense or otherwise) or caused by products or portions of products developed, manufactured or sold by Pharmasset or others acting on its behalf or under
its authorization from information or materials received from Apath that were developed or derived from Tangible Property or Intellectual Property provided from Apath hereunder, except, only as to Apath, if such Claim is due to the intentional or
grossly negligent actions or inactions of any Apath Indemnitee or except, only as to WU, if such Claim is due to the intentional or grossly negligent actions or inactions of any WU Indemnitee, provided that: (i) Apath promptly notifies
Pharmasset in writing after any Apath Indemnitee receives notice of any Claim; (ii) WU promptly notifies Pharmasset in writing after any WU Indemnitee receives notice of any Claim; and (iii) Pharmasset is given the opportunity, at its
option (which must be exercised by providing written notice to Apath), to control the defense and trial of any Claim, and any related settlement negotiations, and (iv) the Apath Indemnitees and WU Indemnitees reasonably cooperate with
Pharmasset in the defense of any such Claim. 
 12. Insurance. Pharmasset shall at all times comply, through insurance, with
all applicable statutory workers’ compensation and employers’ liability requirements covering any and all employees with respect to activities performed under this Agreement. In addition to the foregoing, Pharmasset shall obtain and
maintain, claims made Broad Form Commercial General Liability (BFCGL) Insurance with a reputable and financially 

  

					
		  	- 7 -	  	 Apath/PHARMASSET
 Non-Exclusive Sublicense Agreement
 (TP/IP)

 
secure insurance carrier(s) having at least an Excellent rating (A rating or above by A.M. Best), a financial performance rating of at least Strong (A rating
or above by A. M. Best), and an A.M. Best Class Size of at least X, with commercially reasonable deductibles. Deviations from the rating or class size must be approved in advance by Apath and WU. Such BFCGL Insurance shall include, among all other
coverages standing in such BFCGL policies, coverage for product liability and contractual liability including, without limitation, all contractual indemnification obligations assumed herein; such BFCGL policies shall also include cross liability and
severability endorsements. Such insurance shall provide to Pharmasset minimum annual limits of at least the Insurance Minimum Amounts. Upon request, Pharmasset shall provide Apath and WU with a certificate of such insurance no more than once
annually. All such policies shall apply to all claims made arising out of all activities relating to the use of Tangible Property and use of the Licensed Patent Rights, including the development, manufacture, and transfer of any products therefrom,
and for laboratory research and laboratory screening, during the term of this Agreement, and for a period of six (6) years after the termination or expiration of this Agreement, whichever occurs later. No policies of insurance required
hereunder may be canceled or materially revised without thirty (30) days’ prior written notice to and approval by Apath and WU. All such policies shall apply to all claims made arising out of all activities set forth herein and shall
survive termination or expiration of this Agreement. WU is the intended third party beneficiary of this Agreement and has the standing and right to enforce the Agreement against Pharmasset and/or Apath in any court of competent jurisdiction.

 13. Apath Representations and Warranties. As of the Effective Date, Apath represents and warrants to Pharmasset that it has
the lawful right to grant the licenses set forth herein. Furthermore, as of the Effective Date, (i) Apath is not a party to any proceedings or claims and, to the best of Apath’s knowledge, is not aware of any threatened proceedings or
claims, relating to, affecting, or limiting its rights or the rights granted to Pharmasset under this Agreement such as an interference, or a claim of infringement or invalidity regarding any part or all of the Intellectual Property and its use as
contemplated in the underlying patent applications as presently drafted, (ii) the Intellectual Property is free of any liens, encumbrances, restrictions or other legal or equitable claims except for rights reserved by the U.S. Government by law
derived from research performed under a federal funding agreement as provided in Title 35, United States Code, and (iii) Apath has provided to Pharmasset correct and complete copies, except where clearly redacted, of the documents constituting
the Primary WU License Agreement and all amendments of, and/or modifications to, the Primary WU License Agreement. The word “claim” as used in this Section 13 shall mean any charge of infringement which shall be adequate to satisfy
the subject matter jurisdiction requirement in support of a declaratory judgment action challenging such claim. 
 14. Disclaimer and
Limitation of Liability. ALL TANGIBLE PROPERTY AND INTELLECTUAL PROPERTY PROVIDED OR LICENSED BY APATH TO PHARMASSET HEREUNDER IS PROVIDED ON AN “AS-IS” BASIS AND, OTHER THAN AS EXPLICITLY SET FORTH IN THIS AGREEMENT, APATH
MAKES NO REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR NON-INFRINGEMENT OF ANY THIRD PARTY INTELLECTUAL
PROPERTY. 
 NEITHER PARTY WILL BE LIABLE TO THE OTHER FOR ANY LOST PROFITS, COSTS OF PROCURING SUBSTITUTE GOODS OR SERVICES, LOST
BUSINESS, OR FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, PUNITIVE, OR OTHER SPECIAL DAMAGES SUFFERED BY A PARTY ARISING OUT OF OR RELATED TO THIS AGREEMENT FOR ALL CAUSES OF ACTION OF ANY KIND (INCLUDING TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY
AND BREACH OF WARRANTY) EVEN IF THE APPLICABLE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 
  

					
		  	- 8 -	  	 Apath/PHARMASSET
 Non-Exclusive Sublicense Agreement
 (TP/IP)

 15. Representations and Warranties. Each Party represents and warrants to the other that it
has the corporate power and authority to enter into this Agreement and that the making of this Agreement does not violate any separate agreement it has with any other entity. 
 16. Term and Termination. This Agreement shall become effective as of the Effective Date, and expire on the date of expiration, or
earlier termination, of the last to expire, or to be terminated, U.S. patent in the Licensed Patent Rights. 
 (a) In the event of any
uncured breach of this Agreement by Pharmasset, Apath shall have the right to terminate this Agreement and the rights and privileges granted hereunder by providing Pharmasset with thirty (30) days’ prior written notice, which shall specify
the grounds therefor. Termination of the Agreement shall become effective upon expiration of such 30-day notice period unless Pharmasset shall have cured the breach during such 30-day period or, in the case of a breach that cannot be reasonably
cured during such 30-day period continues to use its best efforts until it cures such breach. 
 (b) Notwithstanding the foregoing, should
Pharmasset breach this Agreement by providing Tangible Property or Tangible Property Improvements to a third party without authorization or by failing to maintain any Confidential Information in confidence, then Apath may immediately terminate this
Agreement and apply to a Court of proper jurisdiction for injunctive relief without prejudice to any other remedies that might also be available for such breach. In such event, Pharmasset shall reimburse Apath for all reasonable expenses related to
investigating, applying for and obtaining such injunctive relief, including attorney’s fees, and agrees that no bond need be posted for a Court to issue such injunction. 
 (c) Pharmasset may terminate the Agreement for any reason or no reason by giving Apath thirty (30) days’ prior written notice of termination,
whereupon such termination shall be effective for all purposes hereunder as of the date such notice is received by Apath pursuant to Section 20. 
 (d) If this Agreement is terminated by Pharmasset for any reason or by Apath for cause, Pharmasset shall destroy all Covered Technology in its possession, custody, or control and cease all use thereof; provided,
however, that if this Agreement is terminated by reason of the expiration, or earlier termination, of the last to expire, or to be terminated, U.S. patent in the Licensed Patent Rights, then Pharmasset will be permitted to retain all Covered
Technology in its possession, custody or control and will be permitted to continue its use thereof without any obligation to Apath. Subject to the foregoing, within thirty (30) days following the date of notice of termination by Pharmasset or
by Apath for cause, Pharmasset shall provide to Apath a written certification, signed by an authorized person of Pharmasset, indicating that all Covered Technology in the possession of, or under the control of, Pharmasset has been completely
destroyed and is no longer in use or that Pharmasset is not required to take such action, as applicable. 
 17. Governing Law.
This Agreement shall be construed, governed, interpreted and applied in accordance with the substantive laws of the State of New York, USA, excluding any choice of law rules that would direct the application of the laws of another jurisdiction.

 18. Assignment. Apath may assign this Agreement at its discretion, without the approval of Pharmasset. Pharmasset may not
assign or otherwise transfer this Agreement (including any rights and privileges granted hereunder) without the prior written consent of Apath; provided, however, that Pharmasset may, without such consent, assign this Agreement and its rights and
obligations hereunder in connection with a transfer or sale of all or substantially all of its business, or in the event of its merger or consolidation with another entity. Any purported assignment in violation of the preceding sentence shall be
void. Any permitted assignee shall assume 

  

					
		  	- 9 -	  	 Apath/PHARMASSET
 Non-Exclusive Sublicense Agreement
 (TP/IP)

 
all obligations of its assignor under this Agreement; however, any such assignment shall not relieve any assignor of its obligations and duties hereunder the
performance of which by any assignee shall be guaranteed by such assignor. 
 19. Survivability. The rights and obligations in
Sections 1, 5, 7, 10, 11 and 13 through 27 shall survive the expiration or the earlier termination of this Agreement. Sections 8, 9 and 12 shall survive the expiration or the earlier termination of this Agreement as stated therein. 
 20. Notices. Any notice or other communication to a Party pursuant to this Agreement shall be in writing and shall be deemed:
(a) received (i) five days after the mailing date if sent to the other Party by first-class mail, postage prepaid, (ii) on the date of faxing printed on a fax confirmation if faxed to the other Party, or (iii) two days after the
shipping date if sent to the other Party by overnight courier or delivery service, such as Federal Express; and (b) sufficiently made or given if it is addressed (i) to Apath at notice address identified below or as it shall later
designate by written notice to Pharmasset, or (ii) to Pharmasset at its last business address known to Apath or at such other address as later designated by Pharmasset by written notice to Apath. Payments shall be made solely by overnight
courier or delivery service but shall otherwise be governed by the terms as recited in this Section 20. 
  

			
	 If to Apath, L.L.C.:
	  	If to Pharmasset:
		
	 President and Chief Scientific Officer
 Apath, L.L.C.
 893 N. Warson Road
 St. Louis, Missouri 63141
 Fax: 314-812-8075
  
 With a copy to:
 VP, Business Development
	  	 Senior Vice President, Business
 Development and Strategy
 Pharmasset, Inc.
 303A College Road East
 Princeton, New Jersey 08540
 Fax: 609-613-4150
  
 With a copy to:
 Associate Director, Legal Affairs

 21. Entire Agreement. The Parties acknowledge that this Agreement sets forth the
entire agreement and their mutual understanding as to the subject matter hereof, superseding any prior oral or written communications or agreements (including, for the purpose of clarity, the Parties’ desire to cancel the 10/18/2000 License
Agreement and replace it with this Agreement), and shall not be subject to any change or modification except by the execution of a written instrument subscribed to by authorized representatives of the Parties and specifically referring to this
Agreement. 
 22. Captions. The captions, headings or titles of the various sections of this Agreement are for convenience of
reference only, and shall not be deemed or construed to limit or expand the substantive provisions of such sections. 
 23.
Counterparts; Facsimile. This Agreement may be executed in one or more counterparts, which, taken together, shall constitute an original. This Agreement may be executed by facsimile, which shall constitute an original. 
 24. No Agency. Neither Party shall be deemed to be an agent of the other Party as a result of any transaction under or related to this
Agreement, and shall not in any way pledge the other Party’s credit or incur any obligation on behalf of the other Party. 
  

					
		  	- 10 -	  	 Apath/PHARMASSET
 Non-Exclusive Sublicense Agreement
 (TP/IP)

 25. Severability. The provisions of the Agreement are severable, and in the event that any
provisions of this Agreement are determined to be invalid or unenforceable under any controlling body of law, such invalidity or enforceability shall not in any way affect the validity or enforceability of the remaining provisions hereof.

 26. Force Majeure. If the performance by a Party of any obligation under this Agreement is prevented or impaired by acts of
war, riot, terrorism, acts or defaults of common carriers, or governmental laws, acts or regulations, such Party shall be excused from performance as long as such cause continues to prevent or impair performance; provided, however, the Party
claiming such excuse shall hereto promptly notify the other party of the existence of such cause and shall at all time use diligent efforts to resume and complete performance. Notwithstanding the foregoing, this Section 26 shall not affect
Pharmasset’s obligation to pay fees set forth in Section 8 hereof. 
 27. Amendment and Waiver. None of the terms of
this Agreement can be amended or waived except by a single writing signed by both of the Parties. 
 [signature page follows]

  

					
		  	- 11 -	  	 Apath/PHARMASSET
 Non-Exclusive Sublicense Agreement
 (TP/IP)

 IN WITNESS WHEREOF, the Parties have hereunto set their hands and duly executed this Agreement effective
on the date first above written. 
  

									
	 APATH, L.L.C.
	 		 	 PHARMASSET, INC.

	 “Apath”
	 		 	 “Pharmasset”

					
	 By:
	 	 /s/ Paul D. Olivo
	 		 	 By:
	 	 /s/ P. Schaefer Price

	 Name:
	 	 Paul D. Olivo, M.D., Ph.D.
	 		 	 Name:
	 	 P. Schaefer Price

	 Title:
	 	 President and Chief Scientific Officer
	 		 	 Title:
	 	 President and CEO

  

					
		  	- 12 -	  	 Apath/PHARMASSET
 Non-Exclusive Sublicense Agreement
 (TP/IP)

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