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Exhibit 10.10    
    

*** Text Omitted and Filed Separately

CONFIDENTIAL TREATMENT REQUESTED

Under 17 C.F.R. §§ 200.80(b)(4) and 230.406  

 LICENSE AGREEMENT  

by and between  

THE SCRIPPS RESEARCH INSTITUTE,

a California nonprofit

public benefit corporation  

and  

OPTIMER PHARMACEUTICALS, Inc.

a Delaware corporation  

 
TABLE OF CONTENTS  

	 
	 
	 	Page

	1.	Definitions	 	1
	 	1.1 Affiliate	 	1
	 	1.2 Agricultural Product	 	1
	 	1.3 Confidential Information	 	1
	 	1.4 Field	 	2
	 	1.5 Licensed Product	 	2
	 	1.6 Major Market Country	 	2
	 	1.7 Net Sales	 	2
	 	1.8 Scripps Patent Rights	 	2
	 	1.9 Scripps Technology	 	2
	 	1.10 Valid Claim	 	2
	

2.	

License Terms and Conditions	
 	

3
	 	2.1 Grant of License	 	3
	 	2.2 Initial License Fee	 	3
	 	2.3 Three Year Anniversary Fee	 	3
	 	2.4 Royalties	 	3
	 	      2.4.1 Percentage Royalty for Human Licensed Products	 	3
	 	      2.4.2 Percentage Royalty for Veterinarian Licensed Products	 	3
	 	      2.4.3 Percentage Royalty on sales by Sublicensees for Human and Veterinarian Licensed Products	 	4
	 	2.5 Milestone Payments	 	4
	 	2.6 Quarterly Payments	 	4
	 	2.7 Term of License	 	4
	 	2.8 Sublicense	 	4
	 	2.9 Duration of Royalty Obligations	 	5
	 	2.10 Reports	 	5
	 	2.11 Records	 	5
	 	2.12 Foreign Sales	 	6
	 	2.13 Foreign Taxes	 	6
	

3.	

Patent Matters	
 	

6
	 	3.1 Patent Prosecution and Maintenance	 	6
	 	3.2 Information to Licensee	 	6
	 	3.3 Patent Costs	 	6
	 	3.4 Ownership	 	7
	 	3.5 Scripps Right to Pursue Patent	 	7
	 	3.6 Infringement Actions	 	7
	 	      3.6.1 Prosecution and Defense of Infringements	 	7
	 	      3.6.2 Allocation of Recovery	 	7
	

4.	

Obligations Related to Commercialization	
 	

7
	 	4.1 Commercial Development Obligation	 	7
	 	4.2 Governmental Approvals and Marketing of Licensed Products	 	8
	 	4.3 Indemnity	 	8
	 	4.4 Patent Marking	 	8
	 	4.5 No Use of Name	 	8
	 	4.6 U.S. Manufacture	 	8
	 	4.7 Foreign Registration	 	8
	 	 	 	 

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5.	

Limited Warranty	
 	

8
	

6.	

Interests in Intellectual Property Rights	
 	

9
	 	6.1 Preservation of Title	 	9
	 	6.2 Royalty-free License to Improvements	 	9
	 	6.3 Governmental Interest	 	9
	 	6.4 Reservation of Rights	 	9
	

7.	

Confidentiality and Publication	
 	

9
	 	7.1 Treatment of Confidential Information	 	9
	 	7.2 Publications	 	9
	 	7.3 Publicity	 	9
	

8.	

Term and Termination	
 	

9
	 	8.1 Term	 	9
	 	8.2 Termination Upon Default	 	9
	 	8.3 Termination Upon Bankruptcy or Insolvency	 	10
	 	8.4 Rights Upon Expiration	 	10
	 	8.5 Rights Upon Termination	 	10
	 	8.6 Work-in-Progress	 	10
	

9.	

Assignment; Successors	
 	

10
	 	9.1 Assignment	 	10
	 	9.2 Binding Upon Successors and Assigns	 	11
	

10.	

General Provisions	
 	

11
	 	10.1 Independent Contractors	 	11
	 	10.2 Arbitration	 	11
	 	      10.2.1 Location	 	11
	 	      10.2.2 Selection of Arbitrators	 	11
	 	      10.2.3 Discovery	 	11
	 	      10.2.4 Case Management	 	11
	 	      10.2.5 Remedies	 	11
	 	      10.2.6 Expenses	 	11
	 	      10.2.7 Confidentiality	 	12
	 	10.3 Entire Agreement; Modification	 	12
	 	10.4 California Law	 	12
	 	10.5 Headings	 	12
	 	10.6 Severability	 	12
	 	10.7 No Waiver	 	12
	 	10.8 Name	 	12
	 	10.9 Attorneys' Fees	 	12
	 	10.10 Notices	 	12
	 	10.11 Compliance with U.S. Laws	 	13
	

 	

Exhibit A Disclosure of Scripps Technology	
 	

 
	 	Exhibit B Sublicense Form	 	 
	 	Exhibit C Milestones	 	 

ii

  

 
 

LICENSE AGREEMENT    
    

        This License Agreement is entered into and made effective as of this 1st day of June 2004, (the "Effective Date") by and
between THE SCRIPPS RESEARCH INSTITUTE, a California nonprofit public benefit corporation ("Scripps") located at 10550 North Torrey Pines Road, La Jolla, California 92037, and OPTIMER
PHARMACEUTICALS, INC., a Delaware corporation ("Licensee") located at 10130 Sorrento Valley Road, Suite D, San Diego, California 92121 with respect to the facts set
forth below. 

 
 

RECITALS    
    

        A.    Scripps
is engaged in fundamental scientific biomedical and biochemical research including research relating to treatments for Feline Immunodefficiency Virus ("FIV") and
Human Immunodefficiency Virus ("HIV"). 

        B.    Licensee
is engaged in research and development of treatments for FIV and HIV for human and veterinarian therapeutics. 

        C.    Scripps
has disclosed to Licensee certain technology described in certain technology disclosures, patents and patent applications listed on Exhibit A attached
hereto and incorporated herein by reference. 

        D.    Scripps
has the exclusive right to grant a license to the technology listed on Exhibit A, subject to certain rights of the U.S. Government to use
such technology for its own purposes, resulting from the receipt by Scripps of certain funding from the U.S. Government. 

        E.    Scripps
desires to grant to Licensee, and Licensee wishes to acquire, an exclusive worldwide right and license to the technology listed on Exhibit A and to
certain patent rights and know-how of Scripps with respect thereto, subject to the terms and conditions set forth herein, with a view to developing and marketing diagnostic and therapeutic
products within the Field (as defined below). 

 
 

AGREEMENT    
    

        NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth herein, Scripps and Licensee hereby agree as follows: 

        1.    Definitions.    Capitalized terms shall have the meaning set forth below. 

        1.1    Affiliate.    The term "Affiliate" shall mean any entity which directly or
indirectly controls, is controlled by or is under common control with Licensee. The term "control" as used herein means the possession of the power to direct or cause the direction of the management
and the policies of an entity, whether through the ownership of a majority of the outstanding voting securities or by contract or otherwise. 

        1.2    Agricultural Products.    The term "Agricultural Product", individually, or
"Agricultural Products", collectively, shall mean any one or more product, device, method, procedure, software, computer program, material, or element utilized by the agricultural and farming industry
for the purpose of improving, restricting or otherwise modifying growth or productivity of plants; or preventing or treating disease or insect or fungal infestation in plants; or controlling or
modifying certain traits of plants or producing improved or modified seeds and plants; or techniques and methods for evaluating efficacy or determining the safety of an Agricultural Product such as
utilization in determining toxicity to living things or otherwise involved in the general field of agriculture. 

        1.3    Confidential Information.    The term "Confidential Information" shall mean any
and all proprietary or confidential information of Scripps or Licensee which may be exchanged between the 

1

 

parties
at any time and from time to time during the term of this Agreement. Information shall not be considered confidential to the extent that it: 

        a.     Is
publicly disclosed through no fault of any party hereto, either before or after it becomes known to the receiving party; or 

        b.     Was
known to the receiving party prior to the date of this Agreement, which knowledge was acquired independently and not from another party hereto (or such party's
employees); or 

        c.     Is
subsequently disclosed to the receiving party in good faith by a third party who has a right to make such disclosure; or 

        d.     Has
been published by a third party as a matter of right. 

        1.4    Field.    The term "Field" shall mean all human and veterinarian applications and
shall exclude Agricultural Products. 

        1.5    Licensed Product.    The term "Licensed Product" shall mean any product which
cannot be developed, manufactured, offered for sale, imported, used or sold without (i) infringing one or more claims under Scripps Patent Rights; or (ii) utilizing any part of Scripps
Technology not otherwise included within Scripps Patent Rights. 

        1.6    Major Market Country.    The term "Major Market Country" shall mean any of the
following countries and their respective territories and possessions: Canada, France, Germany, Italy, Japan, Thailand, the United Kingdom and the United States. 

        1.7    Net Sales.    The term "Net Sales" shall mean the gross amount invoiced by
Licensee, or its Affiliates and sublicensees, or any of them, on all sales of Licensed Products, less (i) discounts actually allowed, (ii) credits for claims, allowances, retroactive
price reductions or returned goods, (iii) prepaid freight and (iv) sales taxes or other governmental charges actually paid in connection with sales of Licensed Products. For purposes of
determining Net Sales, a sale shall be deemed to have occurred when an invoice therefor shall be generated or the Licensed Product is shipped for delivery. Sales of Licensed Products by Licensee, or
an Affiliate or sublicensee of Licensee to any Affiliate or sublicensee which is a reseller thereof shall be excluded, and only the subsequent sale of such Licensed Products by Affiliates or
sublicensees of Licensee to unrelated parties shall be deemed Net Sales hereunder. 

        1.8    Scripps Patent Rights.    The term "Scripps Patent Rights" shall mean rights
arising out of or resulting from (i) any and all U.S. and foreign patent applications and patents covering Scripps Technology, (ii) the patents proceeding from such applications,
(iii) all claims of continuations-in-part directed solely to subject matter specifically described in Scripps Technology, and (iv) divisional, continuations,
reissues, reexaminations, and extensions of any patent or application set forth in (i)-(iii) above, so long as said patents have not been held invalid and/or unenforceable by a court of competent
jurisdiction from which there is no appeal or, if appealable, from which no appeal has been taken. 

        1.9    Scripps Technology.    The term "Scripps Technology" shall mean so much of the
technology as is proprietary to Scripps and disclosed in the patents, patent applications and disclosures listed on Exhibit A which is attached hereto and incorporated herein by reference,
together with materials, information and know-how that are specifically related to the subject matter of the patents, patent applications, and disclosures listed on Exhibit A
and are proprietary to Scripps, whether or not the same is eligible for protection under the patent laws of the United States or elsewhere, and whether or not the same would be
enforceable as a trade secret or the copying of which would be enjoined or restrained by a court as constituting unfair competition. 

        1.10    Valid Claim.    The term "Valid Claim" shall mean a claim of any issued and
unexpired patent within the Scripps Patent Rights which has not been held unenforceable, unpatentable or invalid by a decision of a court or governmental body of competent jurisdiction in a ruling
that is unappealable 

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or
unappealed within the time allowed for appeal, which has not been rendered unenforceable through disclaimer or otherwise, and which has not been lost through an interference proceeding; provided
that if a claim of a pending patent application has not issued as a claim of an issued patent within the Scripps Patent Rights within ten (10) years after the filing date from which such claim
takes priority, such pending claim shall not be a Valid Claim for the purposes of this Agreement. 

        2.    License Terms and Conditions.    

        2.1    Grant of License.    Scripps hereby grants to Licensee an exclusive, worldwide
license, including the right to sublicense, to Scripps Technology and under Scripps Patent Rights, to make, to have made, to import, to use, to offer for sell, and to sell Licensed Products in the
Field, subject to the terms of this Agreement. 

        2.2    Initial License Fee.    In partial consideration for the exclusive license granted
pursuant to Section 2.1 hereof, Licensee shall pay to Scripps a nonrefundable license fee upon execution of this Agreement in the amount of fifty thousand (50,000) shares of Optimer
Pharmaceutical Inc.'s common stock. The license fee described in this Section is consideration for the grant and continuation of the license hereunder, and Scripps shall have no obligation to
return any portion of such license fee, notwithstanding any failure by Licensee to develop any Licensed Product or market any Licensed Product commercially, and notwithstanding the volume of sales of
any such Licensed Product. 

        2.3    Three Year Anniversary Fee.    Upon the third anniversary of the Effective Date of
this License Agreement, Licensee shall pay to Scripps a nonrefundable anniversary fee of [***] [***] ($[***]) dollars. 

        2.4    Royalties.    

        2.4.1    Percentage Royalty for Human Licensed Products.    As additional consideration
for the exclusive license granted pursuant to Section 2.1 hereof, Licensee shall pay to Scripps a continuing royalty for human Licensed Products on a country-by-country
basis in the amount of (i) [***] percent ([***]%) of Net Sales by Licensee of Licensed Products which cannot be made, imported, used or sold in
such country without utilizing one or more Valid Claims with offsets allowed for royalties paid to third parties for required licenses for the commercialization of a Licensed Product, however, the
percentage royalty paid to Scripps may not be reduced below [***] percent ([***]%), (ii) of [***] percent
([***]%) of Net Sales of Licensed Products, in all countries where the manufacture, use or sale of such Licensed Product is not covered by a Valid Claim in such country but is
covered by Scripps Technology with offsets allowed for royalties paid to third parties for required licenses for the commercialization of a Licensed Product, however, the percentage royalty paid to
Scripps may not be reduced below [***] [***] percent ([***]%). 

        2.4.2    Percentage Royalty for Veterinarian Licensed Products.    As additional
consideration for the exclusive license granted pursuant to Section 2.1 hereof, Licensee shall pay to Scripps a continuing royalty for veterinarian Licensed Products on a
country-by-country basis in the amount of (i) [***] percent ([***]%) of Net Sales by Licensee of Licensed Products which
cannot be made, imported, used or sold in such country without utilizing one or more Valid Claims with offsets allowed for royalties paid to third parties for required licenses for the
commercialization of a Licensed Product, however, the percentage royalty paid to Scripps may not be reduced below [***] percent ([***]%); (ii) of
[***] percent ([***]%) of Net Sales of Licensed Products, in all countries where the manufacture, use or sale of such Licensed Product is not covered by
a Valid Claim in such country but is covered by Scripps Technology with offsets allowed for royalties paid to third parties for required licenses for the commercialization of a Licensed Product,
however, the percentage royalty paid to Scripps may not be reduced below [***] [***] percent ([***]%). 

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        2.4.3    Percentage Royalty on sales by Sublicensees for Human and Veterinarian Licensed
Products.    

For
the royalty on Net Sales by sublicensees the following formula will be used to determine the percentage royalty that Licensee shall pay to Scripps: 

        R=[***][***]
(T-P), 

where,
R= the percentage of royalty to be paid to Scripps; 

where,
T= the percentage royalty paid to Licensee on Net Sales of Licensed Product covered by Scripps Patent Rights by a sublicensee; and 

where,
P= the percentage royalty paid to third parties by Licensee 

Provided
that R shall not be less than [***]% for patented human products covered by an issued claim; and [***]% for human unpatented products; and
[***]% for patented veterinarian products covered by an issued claim; and [***]% for unpatented veterinarian products. 

        2.5    Milestone Payments.    In consideration for the license granted to Licensee,
Licensee shall pay to Scripps within thirty (30) days upon the first occurrence, in a Major Market Country, of each milestone specified below for the first Licensed Product to meet such
milestone. Payment of the milestones shall be in cash or common stock or a combination thereof at Licensee's option. If registered common stock comprises part of the payment, the registered common
stock shall be priced at the arithmetic average of the closing trading prices for the twenty (20) trading days just prior to the date of the milestone. 

	Initiation of First Multi-Center trial (equivalent to Phase III in the U.S.)	 	$	[***]
	Filing of First Market Application to a regulatory agency (ex. PLA)	 	$	[***]
	Market Approval or its equivalent in another country	 	$	[***]

        2.6    Quarterly Payments.    

        2.6.1    Sales by Licensee.    With regard to Net Sales made by Licensee or its
Affiliates, royalties shall be payable by Licensee quarterly, within sixty (60) days after the end of each calendar quarter, based upon the Net Sales of Licensed Products during such preceding
calendar quarter, commencing with the calendar quarter in which the first commercial sale of any Licensed Product is made. 

        2.6.2    Sales by Sublicensees.    With regard to Net Sales made by sublicensees of
Licensee or its Affiliates, royalties shall be payable by Licensee quarterly, within ninety (90) days after the end of each calendar quarter, based upon the Net Sales of Licensed Products by
such sublicensee during such preceding calendar quarter, commencing with the calendar quarter in which the first commercial sale of any Licensed Product is made by such sublicensee. 

        2.7    Term of License.    Unless terminated sooner in accordance with the provisions of
this Agreement, the term of this license shall expire when the last of the royalty obligations set forth in Section 2.10 below have expired. Notwithstanding the foregoing, if applicable
government regulations require a shorter term and/or a shorter term of exclusivity than provided for herein, then the term of this License Agreement shall be so shortened or this License Agreement
shall be amended to provide for a non-exclusive license, and, in such event, the parties shall negotiate in good faith to reduce appropriately the royalties payable as set forth under the
section heading "Royalties" hereof. 

        2.8    Sublicense.    Licensee shall have the sole and exclusive right to grant
sublicenses to any party with respect to the rights conferred upon Licensee under this Agreement, provided, however, that (i) any such sublicense shall be subject in all respects to the
restrictions, exceptions, royalty obligations, reports, termination provisions, and other provisions contained in this Agreement (but not including the payment of a license fee pursuant to
Section 2.2 hereof) and (ii) each such sublicensee, and the form and substance of each such sublicense, shall be subject to the prior written approval of Scripps, which 

4

 

approval
shall not be unreasonably withheld, provided, however, that any sublicense granted to an Affiliate of Licensee shall not be subject to Scripps's prior written approval. No approval shall be
required as to any sublicense which utilizes the form of sublicense attached hereto as Exhibit B. Licensee shall pay Scripps, or cause its Affiliate or sublicensee to pay Scripps, the same
royalties on all Net Sales made by Licensee, its Affiliate or sublicensee. Each Affiliate and sublicensee shall report its Net Sales to Scripps through Licensee, which Net Sales shall be aggregated
with any Net Sales of Licensee for purposes of determining the Net Sales upon which royalties are to be paid to Scripps. 

        Except
as set forth below, any sublicense revenues, other than royalties, due Licensee pursuant to the grant of a sublicense to a party not an Affiliate but excluding any payments for
research, development, or equity ("Sublicense Revenue"), so long as said equity payment reflects the current fair market value of the stock, as determined by such sublicensees' board of directors,
which determination will be acceptable as long as it is reasonable and reflects industry standards in comparable arrangements, shall be reported to Scripps by Licensee. For the first three years of
this Agreement, the calculation of Scripps' percentage of Sublicense Revenue shall be based on a pro-rata contribution of
Scripps Technology if it is sublicensed in combination with non-Scripps technology. For the fourth year and after Scripps shall receive [***]% of the Sublicense
Revenue with no reductions if sublicensed in combination with non-Scripps technology. Licensee shall pay Scripps a portion of Sublicense Revenue according to the following schedule: 

	First six (6) months after execution of this agreement	 	[***]% of the Sublicense Revenue
	Second six (6) months after execution of this agreement	 	[***]% of the Sublicense Revenue
	Third six (6) months after execution of this agreement	 	[***]% of the Sublicense Revenue
	Fourth six (6) months after execution of this agreement	 	[***]% of the Sublicense Revenue
	Third year after execution of this agreement	 	[***]% of the Sublicense Revenue

        2.9    Duration of Royalty Obligations.    The royalty obligations of Licensee as to each
Licensed Product shall terminate: (i) on a country-by-country basis concurrently with the expiration of the last to expire of Scripps Patent Rights utilized by or in
such Licensed Product in each such country; or (ii) with respect to Licensed Products utilizing only Scripps Technology but not Scripps Patent Rights, fifteen (15) years after the date
of first commercial sale of such Licensed Product in such country. 

        2.10    Reports.    Licensee shall furnish to Scripps at the same time as each royalty
payment is made by Licensee, a detailed written report of Net Sales of the Licensed Products and the royalty due and payable thereon, including a description of any offsets or credits deducted
therefrom, on a product-by-product and country-by-country basis, for the calendar quarter upon which the royalty payment is based. 

        2.11    Records.    Licensee shall keep, and cause its Affiliates and sublicensees to
keep, full, complete and proper records and accounts of all sales of Licensed Products in sufficient detail to enable the royalties payable on Net Sales of each Licensed Product to be determined.
Scripps shall have the right to appoint an independent certified public accounting firm approved by Licensee, which approval shall not be unreasonably withheld, to audit the records of Licensee, its
Affiliates and sublicensees as necessary to verify the royalties payable pursuant to this Agreement provided such auditor executes a confidentiality agreement standard for the industry. Licensee, its
Affiliates and sublicensees shall pay to Scripps an amount equal to any additional royalties to which Scripps is entitled as disclosed by the audit, plus interest thereon at the rate of one and
one-half percent (1.5%) per month. Such audit shall be at Scripps's expense; provided, however, that if the audit discloses that Scripps was underpaid royalties with respect to any
Licensed Product by at least five percent (5%) for any calendar quarter, then Licensee, its Affiliates or sublicensee, as the case may be shall reimburse Scripps for any such audit costs. Scripps may
exercise its right of audit as to each of Licensee, its Affiliates or sublicensees no more frequently than once in any calendar year. The accounting firm shall disclose to Scripps only information
relating to the accuracy of the royalty payments. Licensee, its 

5

 

Affiliates
and sublicensees shall preserve and maintain all such records required for audit for a period of three (3) years after the calendar quarter to which the record applies. 

        2.12    Foreign Sales.    The remittance of royalties payable on sales outside the
United States shall be payable to Scripps in United States Dollar equivalents at the official rate of exchange of the currency of the country from which the royalties are payable, as
quoted in the Wall Street Journal for the last business day of the calendar quarter in which the royalties are payable. If the transfer of or the conversion into the United States Dollar
equivalents of any such remittance in any such instance is not lawful or possible, the payment of such part of the royalties as is necessary shall be made by the deposit thereof, in the currency of
the county where the sale was made on which the royalty was based to the credit and account of Scripps or its nominee in any commercial bank or trust company of Scripps's choice located in that
country, prompt written notice of which shall be given by Licensee to Scripps. 

        2.13    Foreign Taxes.    Any tax required to be withheld by Licensee under the laws of
any foreign country for the accounts of Scripps shall be promptly paid by Licensee for and on behalf of Scripps to the appropriate governmental authority, and Licensee shall use its best efforts to
furnish Scripps with proof of payment of such tax together with official or other appropriate evidence issued by the applicable government authority. Any such tax actually paid on Scripps's behalf
shall be deducted from royalty payments due Scripps. 

        3.    Patent Matters.    

        3.1    Patent Prosecution and Maintenance.    From and after the date of this Agreement,
the provisions of this Section 3 shall control the prosecution and maintenance of any patent application and any patent included within Scripps Patent Rights. Subject to the requirements,
limitations, and conditions set forth in this Agreement, Scripps shall direct and control (i) the preparation, filing, and prosecution of the United States and foreign patent
applications within Scripps Patent Rights (including any interferences
and foreign oppositions) and (ii) maintain the patents issuing therefrom. Scripps shall select the patent attorney, which may be independent outside counsel specialized in the Field, subject to
Licensee's written approval, which approval shall not be unreasonably withheld. Both parties hereto agree that Scripps may, at its sole discretion, utilize Scripps's Office of Patent Counsel in lieu
of independent counsel for patent prosecution and maintenance described herein, and the fees and expenses incurred by Scripps with respect to work done by such Office of Patent Counsel shall be paid
as set forth below. Licensee shall have full rights of consultation with the patent attorney so selected on all matters relating to Scripps Patent Rights. Scripps shall use its best efforts to
implement all reasonable requests made by Licensee with regard to the preparation, filing, prosecution and/or maintenance of the patent applications and/or patents within Scripps Patent Rights. 

        3.2    Information to Licensee.    Scripps shall keep Licensee timely informed with
regard to the patent application and maintenance processes. Scripps shall deliver to Licensee copies of all patent applications, amendments, related correspondence, and other related matters within
twenty (20) days of submission or receipt, as applicable, including a monthly updated patent prosecution and maintenance schedule of all patent applications and patents. 

        3.3    Patent Costs.    Licensee acknowledges and agrees that Scripps does not have
independent funding to cover patent costs, and that the license granted hereunder is in partial consideration for Licensee's assumption of patent costs and expenses as described herein. Licensee shall
pay for all expenses incurred by Scripps pursuant to Section 3.1 hereof as of and including May 30, 2000 for the TSRI 609 series, such expenses are twenty-six thousand
two hundred seventy-eight dollars and seventy-five cents ($26,278.75). In addition, Licensee agrees to reimburse Scripps for all patent costs and expenses paid or incurred by Scripps' in
connection with Scripps Patent Rights licensed hereunder. Licensee agrees to pay all such past and future patent expenses directly or to reimburse Scripps for the payment of such expenses within
thirty (30) days after Licensee receives an itemized invoice therefor. 

6

 

In
the event Licensee elects to discontinue payment for the filing, prosecution and/or maintenance of any patent application and/or patent within Scripps Patent Rights, any such patent application or
patent shall be excluded from the definition of Scripps Patent Rights and from the scope of the license granted under this Agreement, and all rights relating thereto shall revert to Scripps and may be
freely licensed by Scripps. Licensee shall give Scripps at least thirty (30) days' prior written notice of such election. No such notice shall have any effect on Licensee's obligations to pay
expenses incurred up to the effective date of such election. 

        3.4    Ownership.    The patent applications filed and the patents obtained by Scripps
pursuant to Section 3.1 hereof shall be owned solely by Scripps, assigned to Scripps and deemed a part of Scripps Patent Rights. 

        3.5    Scripps Right to Pursue Patent.    If at any time during the term of this
Agreement, Licensee's rights with respect to Scripps Patent Rights are terminated, Scripps shall have the right to take whatever action Scripps deems appropriate to obtain or maintain the
corresponding patent protection at its own
expense. If Scripps pursues patents under this Section 3.5, Licensee agrees to cooperate fully, including by providing, at no charge to Scripps, all appropriate technical data and executing all
necessary legal documents in connection with such transfer. 

        3.6    Infringement Actions.    

        3.6.1    Prosecution and Defense of Infringements.    In order to maintain the license
granted hereunder in force, Licensee shall prosecute any and all infringements of any Scripps Patent Rights and shall defend all charges of infringement arising as a result of the exercise of Scripps
Patent Rights by Licensee, its Affiliates or sublicensees, unless otherwise agreed to between Scripps and Licensee. Licensee may enter into settlements, stipulated judgements or other arrangements
respecting such infringement, at its own expense, but only with the prior written consent of Scripps, which consent shall not be reasonably withheld. Scripps shall permit any action to be brought in
its name if required by law, and Licensee shall hold Scripps harmless from any costs, expenses of liability respecting all such infringements or charges of infringement. Scripps agrees to provide
reasonable assistance of a technical nature which Licensee may require in any litigation arising in accordance with the provisions of this Section 3.6.1, for which Licensee shall pay to Scripps
a reasonable hourly rate of compensation. In the event Licensee fails to prosecute any such infringement, Licensee shall notify Scripps in writing promptly and Scripps shall have the right to
prosecute such infringement on its own behalf. Failure on the part of Licensee to prosecute any such infringement shall be grounds for termination of the license granted to Licensee hereunder
(but solely with respect to the patent at issue, which, with respect to the country in which such infringement occurs, shall thereafter be excluded from the the definition of Scripps Patent
Rights) at the option of Scripps. 

        3.6.2    Allocation of Recovery.    Any damages, settlements, or other recovery from an
infringement action undertaken by Licensee pursuant to Section 3.6.1 shall first be used to reimburse the parties for the costs and expenses incurred in such action, and shall thereafter be
allocated between the parties on the same basis as Net Sales of Licensed Products and shall not be deemed to be Sublicense Revenues. 

        4.    Obligations Related to Commercialization.    

        4.1    Commercial Development Obligation.    In order to maintain the license granted
hereunder in force, Licensee shall use reasonable efforts and due diligence to develop Scripps Technology and Scripps Patent Rights which are licensed hereunder into commercially viable Licensed
Products, as promptly as is reasonably and commercially feasible, and thereafter to produce and sell reasonable quantities of Licensed Products. Licensee shall keep Scripps generally informed as to
Licensee's progress in such development, production and sale, including its efforts, if any, to sublicense Scripps Technology and Scripps Patent Rights, and Licensee shall deliver to Scripps an annual
written report and such other reports as Scripps may reasonably request. The parties hereto acknowledge and agree that achievement of the milestones described in Section 2.5 and
Exhibit C attached hereto on or before 

7

 

the
dates set forth therein shall be evidence of compliance by Licensee with its commercial development obligations hereunder for the time periods specified in Exhibit C. In the event Scripps
has a reasonable basis to believe that Licensee is not using reasonable efforts and due diligence as required hereunder, upon notice by Scripps to Licensee which specifies the basis for such belief,
Scripps and Licensee shall negotiate in good faith to attempt to mutually resolve the issue. In the event Scripps and Licensee cannot agree upon any matter related to Licensee's commercial development
obligations, the parties agree to utilize arbitration pursuant to Section 10.2 hereof in order to resolve the matter. If the arbitrator determines that Licensee has not complied with its
obligations hereunder, and such default is not fully cured within sixty (60) days after the arbitrator's decision, Scripps may terminate Licensee's rights under this Agreement. 

        4.2    Governmental Approvals and Marketing of Licensed Products.    Licensee shall be
responsible for obtaining all necessary governmental approvals for the development, production, distribution, sale, and use of any Licensed Product, at Licensee's expense, including, without
limitation, any safety studies. Licensee shall have sole responsibility for any warning labels, packaging, and instructions as to the use of Licensed Products and for the quality control
for any Licensed Product. 

        4.3    Indemnity.    Licensee hereby agrees to indemnify, defend and hold harmless
Scripps and any parent, subsidiary or other affiliated entity and their trustees, officers, employees, scientists and agents from and against any liability or expense arising from any product
liability claim asserted by any party as to any Licensed Product or any claims arising from the use of any Scripps Patent Rights, or Scripps Technology pursuant to this Agreement. Such indemnity and
defense obligation shall apply to any product liability or other claims, including without limitation, personal injury, death or property damage, made by employees, subcontractors, sublicensees, or
agents of Licensee, as well as any member of the general public. 

        4.4    Patent Marking.    To the extent required by applicable law, Licensee shall mark
all Licensed Products or their containers in accordance with the applicable patent marking laws. 

        4.5    No Use of Name.    The use of the name "The Scripps Research Institute",
"Scripps", or any variation thereof in connection with the advertising or sale of Licensed Products is expressly prohibited. 

        4.6    U.S. Manufacture.    To the extent required by applicable
United States laws, if at all, Licensee agrees that Licensed Products will be manufactured in the United States, or its territories, subject to such waivers as may be required, or
obtained, if at all, from the United States Department of Health and Human Services, or its designee. 

        4.7    Foreign Registration.    Licensee agrees to register this Agreement with any
foreign governmental agency which requires such registration, and Licensee shall pay all costs and legal fees in connection therewith. In addition, Licensee shall assure that all foreign laws
affecting this Agreement or the sale of Licensed Products are fully satisfied. 

        5.    Limited Warranty.    Scripps hereby represents and warrants that it has full right
and power to enter into this Agreement and has received an assignment from inventors and/or creators of the Scripps Technology, Scripps Patent Rights, and the Licensed Rights. SCRIPPS MAKES NO OTHER
WARRANTIES CONCERNING SCRIPPS PATENT RIGHTS, OR SCRIPPS TECHNOLOGY COVERED BY THIS AGREEMENT, INCLUDING WITHOUT LIMITATION, ANY EXPRESS OR IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE AS TO SCRIPPS PATENT RIGHTS, SCRIPPS TECHNOLOGY, OR ANY LICENSED PRODUCT. SCRIPPS MAKES NO WARRANTY OR REPRESENTATION AS TO THE VALIDITY OR SCOPE OF SCRIPPS PATENT RIGHTS, OR THAT
ANY LICENSED PRODUCT WILL BE FREE FROM AN INFRINGEMENT ON PATENTS OR OTHER INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES, OR THAT NO THIRD PARTIES ARE IN ANY WAY 

8

 

INFRINGING
SCRIPPS PATENT RIGHTS OR SCRIPPS TECHNOLOGY COVERED BY THIS AGREEMENT. 

        6.    Interests in Intellectual Property Rights.    

        6.1    Preservation of Title.    Scripps shall retain full ownership and title to Scripps
Technology, and Scripps Patent Rights licensed hereunder and shall use its reasonable best efforts to preserve and maintain such full ownership and title, subject to Licensee fully performing all of
its obligations under this Agreement. 

        6.2    Royalty-free License to Improvements.    Licensee hereby grants to
Scripps a non-exclusive, royalty-free license to any improvement to Scripps Technology developed by Licensee, to use for its own non-commercial research purposes or
grant to, subject to Licensee's approval, other nonprofit institutions for their non-commercial research purposes. 

        6.3    Governmental Interest.    Licensee and Scripps acknowledge that Scripps has
received, and expects to continue to receive, funding from the United States Government in support of Scripps's research activities. Licensee and Scripps acknowledge and agree that their
respective rights and obligations pursuant to this Agreement shall be subject to Scripps's obligations and the rights of the United States Government, if any, which arise or result from
Scripps's receipt of research support from the United States Government, including without limitation, the grant by Scripps to the United States a non-exclusive, irrevocable,
royalty-free license to Scripps Technology and Scripps Patent Rights licensed hereunder for governmental purposes. 

        6.4    Reservation of Rights.    Scripps reserves the right to use for any
non-commercial research purposes and the right to allow other nonprofit institutions to use for any non-commercial research purposes any Scripps Technology and Scripps Patent
Rights licensed hereunder, without Scripps or such other institutions being obligated to pay Licensee any royalties or other compensation. 

        7.    Confidentiality and Publication.    

        7.1    Treatment of Confidential Information.    The parties agree that during the term
of this Agreement, and for a period of five (5) years after this Agreement terminates, a party receiving Confidential Information of the other party will (i) maintain in confidence such
Confidential Information to the same extent such party maintains its own proprietary industrial information, (ii) not disclose such Confidential Information to any third party without prior
written consent of the other party and (iii) not use such Confidential Information for any purpose except those permitted by this Agreement. 

        7.2    Publications.    Licensee agrees that Scripps shall have a right to publish in
accordance with its general policies. 

        7.3    Publicity.    Except as otherwise provided herein or required by any law, rule or
regulation, no party shall originate any publication, news release or other public announcement, written or oral, whether in the public press, or otherwise, relating to this Agreement or to any
sublicense hereunder, or to the performance hereunder or any such agreements, without the prior written approval of the other party, which approval shall not be unreasonably withheld. Scientific
publications published in accordance with Section 7.2 of this Agreement shall not be construed as publicity governed by this Section 7.3. 

        8.    Term and Termination.    

        8.1    Term.    Unless terminated sooner in accordance with the terms set forth herein,
this Agreement, and the license granted hereunder, shall terminate as provided in Section 2.6 hereof. 

        8.2    Termination Upon Default.    Any one or more of the following events shall
constitute an event of default hereunder: (i) the failure of a party to pay any amounts when due hereunder and the expiration of thirty (30) days after receipt of a written notice
requesting the payment of such amount; 

9

 

(ii) the
failure of a party to perform any obligation required of it to be performed hereunder, and the failure to cure within sixty (60) days after receipt of notice from the other
party specifying in reasonable detail the nature of such default. Upon the occurrence of any event of default, the non-defaulting party may deliver to the defaulting party written notice
of intent to terminate, such termination to be effective upon the date set forth in such notice. 

        Such
termination rights shall be in addition to and not in substitution for any other remedies that may be available to the non-defaulting party. Termination pursuant to this
Section 8.2 shall not relieve the defaulting party from liability and damages to the other party for breach of this Agreement. Waiver by either party of a single default or a succession of
defaults shall not deprive such party of any right to terminate this Agreement arising by reason of any subsequent default. 

        8.3    Termination Upon Bankruptcy or Insolvency.    This Agreement may be terminated by
Scripps giving written notice of termination to Licensee upon the filing of bankruptcy or bankruptcy of Licensee or the appointment of a receiver of any of Licensee's assets, or the making by Licensee
of any assignment for the benefit of creditors, or the institution of any proceedings against Licensee under any bankruptcy law. Termination shall be effective upon the date specified in
such notice. 

        8.4    Rights Upon Expiration.    Neither party shall have any further rights or
obligations upon the expiration of this Agreement upon its regularly scheduled expiration date with respect to this Agreement, other than the obligation of Licensee to make any and all reports and
payments for the final quarter period. Provided, however, that upon such expiration, each party shall be required to continue to abide by its non-disclosure obligations as described in
Section 7.1, and Licensee shall continue to abide by its obligation to indemnify Scripps as described in Section 4.3 and by its obligations under Section 6.2 hereof. 

        8.5    Rights Upon Termination.    Notwithstanding any other provision of this Agreement,
upon any termination of this Agreement prior to the regularly scheduled expiration date of this Agreement, the license granted hereunder shall terminate. Except as otherwise provided in
Section 8.6 of this Agreement with respect to work-in-progress, upon such termination, Licensee shall have no further right to develop, manufacture or market any
Licensed Product, or to otherwise use any Scripps Patent Rights or any Scripps Technology not otherwise includable therein. Upon any such termination, Licensee shall promptly return all materials,
samples, documents, information, and other materials which embody or disclose Scripps Patent Rights or any Scripps Technology not otherwise includable therein; provided, however, that Licensee shall
not be obligated to provide Scripps with proprietary information which Licensee can show that it independently developed. Any such termination shall not relieve either party from any obligations
accrued to the date of such termination. Upon such termination, each party shall be required to abide by its nondisclosure
obligations as described in Section 7.1, and Licensee shall continue to abide by its obligations to indemnify Scripps as described in Section 4.3. 

        8.6    Work-in-Progress.    Upon any such early termination of
the license granted hereunder in accordance with this Agreement, Licensee shall be entitled to finish any work-in-progress and to sell any completed inventory of a Licensed
Product covered by such license which remain on hand as of the date of the termination, so long as Licensee pays to Scripps the royalties applicable to said subsequent sales in accordance with the
terms and conditions as set forth in this Agreement, provided that no such sales shall be permitted after the expiration of six (6) months after the date of termination. 

        9.    Assignment; Successors.    

        9.1    Assignment.    Any and all assignments of this Agreement or any rights granted
hereunder by Licensee are void except (i) to an Affiliate of Licensee; (ii) to a successor in interest to all or substantially all of the business assets of Licensee whether by way of a
merger, consolidation, sale of all or substantially all of Licensee's assets, change of control, or similar transaction; or (iii) as expressly permitted hereunder without the prior written
consent of Scripps. 

10

   
        9.2    Binding Upon Successors and Assigns.    Subject to the limitations on assignment
herein, this Agreement shall be binding upon and inure to the benefit of any successors in interest and assigns of Scripps and Licensee. Any such successor or assignee of Licensee's interest shall
expressly assume in writing the performance of all the terms and conditions of this Agreement to be performed by Licensee. 

        10.    General Provisions.    

        10.1    Independent Contractors.    The relationship between Scripps and Licensee is that
of independent contractors. Scripps and Licensee are not joint venturers, partners, principal and agent, master and servant, employer or employee, and have no other relationship other than independent
contracting parties. Scripps and Licensee shall have no power to bind or obligate each other in any manner, other than as is expressly set forth in this Agreement. 

        10.2    Arbitration.    Any controversy or claim arising out of or relating to this
Agreement, or the breach thereof, shall be settled by binding arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association ("AAA"), and the procedures
set forth below. In the event of any inconsistency between the Rules of AAA and the procedures set forth below, the procedures set forth below shall control. Judgment upon the award rendered by the
arbitrators may be enforced in any court having jurisdiction thereof. 

        10.2.1    Location.    The location of the arbitration shall be in the County of
San Diego. 

        10.2.2    Selection of Arbitrators.    The arbitration shall be conducted by a panel of
three neutral arbitrators who are independent and disinterested with respect to the parties, this Agreement, and the outcome of the arbitration. Each party shall appoint one neutral arbitrator, and
these two arbitrators so selected by the parties shall then select the third arbitrator. If one party has given written notice to the other party as to the identity of the arbitrator appointed by the
party, and the party thereafter makes a written demand on the other party to appoint its designated arbitrator within the next ten days, and the other party fails to appoint its designated arbitrator
within ten days after receiving said written demand, then the arbitrator who has already been designated shall appoint the other two arbitrators. 

        10.2.3    Discovery.    Unless the parties mutually agree in writing to some additional
and specific pre-hearing discovery, the only pre-hearing discovery shall be (a) reasonably limited production of relevant and non-privileged documents, and
(b) the identification of witnesses to be called at the hearing, which identification shall give the witness's name,
general qualifications and position, and a brief statement as to the general scope of the testimony to be given by the witness. The arbitrators shall decide any disputes and shall control the process
concerning these pre-hearing discovery matters. Pursuant to the Rules of AAA, the parties may subpoena witnesses and documents for presentation at the hearing. 

        10.2.4    Case Management.    Prompt resolution of any dispute is important to both
parties; and the parties agree that the arbitration of any dispute shall be conducted expeditiously. The arbitrators are instructed and directed to assume case management initiative and control over
the arbitration process (including scheduling of events, pre-hearing discovery and activities, and the conduct of the hearing), in order to complete the arbitration as expeditiously as is
reasonably practical for obtaining a just resolution of the dispute. 

        10.2.5    Remedies.    The arbitrators may grant any legal or equitable remedy or relief
that the arbitrators deem just and equitable, to the same extent that remedies or relief could be granted by a state or federal court, provided however, that no punitive damages may be awarded. No
court action may be maintained seeking punitive damages. The decision of any two of the three arbitrators appointed shall be binding upon the parties. 

        10.2.6    Expenses.    The expenses of the arbitration, including the arbitrators' fees,
expert witness fees, and attorney's fees, may be awarded to the prevailing party, in the discretion of the arbitrators, or 

11

 

may
be apportioned between the parties in any manner deemed appropriate by the arbitrators. Unless and until the arbitrators decide that one party is to pay for all (or a share) of such
expenses, both parties shall share equally in the payment of the arbitrators' fees as and when billed by the arbitrators. 

        10.2.7    Confidentiality.    Except as set forth below, the parties shall keep
confidential the fact of the arbitration, the dispute being arbitrated, and the decision of the arbitrators. Notwithstanding the foregoing, the parties may disclose information about the arbitration
to persons who have a need to know, such as directors, trustees, management employees, witnesses, experts, investors, attorneys, lenders, insurers, and others who may be directly affected.
Additionally, if a party has stock which is publicly traded, the party may make such disclosures as are required by applicable securities laws. Further, if a party is expressly asked by a third party
about the dispute or the arbitration, the party may disclose and acknowledge in general and limited terms that there is a dispute with the other party which is being (or has been) arbitrated.
Once the arbitration award has become final, if the arbitration award is not promptly satisfied, then these confidentiality provisions shall no longer be applicable. 

        10.3    Entire Agreement; Modification.    This Agreement sets forth the entire agreement
and understanding between the parties as to the subject matter hereof. There shall be no amendments or modifications to this Agreement, except by a written document which is signed by
both parties. 

        10.4    California Law.    This Agreement shall be construed and enforced in accordance
with the laws of the State of California without regard to the conflicts of laws principles thereof. 

        10.5    Headings.    The headings for each article and section in this Agreement have
been inserted for convenience of reference only and are not intended to limit or expand on the meaning of the language contained in the particular article or section. 

        10.6    Severability.    Should any one or more of the provisions of this Agreement be
held invalid or unenforceable by a court of competent jurisdiction, it shall be considered severed from this Agreement and shall not serve to invalidate the remaining provisions thereof. The parties
shall make a good faith effort to replace any invalid or unenforceable provision with a valid and enforceable one such that the objectives contemplated by them when entering this Agreement may
be realized. 

        10.7    No Waiver.    Any delay in enforcing a party's rights under this Agreement or any
waiver as to a particular default or other matter shall not constitute a waiver of such party's rights to the future enforcement of its rights under this Agreement, excepting only as to an express
written and signed waiver as to a particular matter for a particular period of time. 

        10.8    Name.    Whenever there has been an assignment or a sublicense by Licensee as
permitted by this Agreement, the term "Licensee" as used in this Agreement shall also include and refer to, if appropriate, such assignee or sublicensee. 

        10.9    Attorneys' Fees.    In the event of a dispute between the parties hereto or in
the event of any default hereunder, the party prevailing in the resolution of any such dispute or default shall be entitled to recover its reasonable attorneys' fees and other costs incurred in
connection with resolving such dispute or default. 

        10.10    Notices.    Any notices required by this Agreement shall be in writing, shall
specifically refer to this Agreement and shall be sent by registered or certified airmail, postage prepaid, or by telefax, 

12

 

telex
or cable, charges prepaid, or by overnight courier, postage prepaid and shall be forwarded to the respective addresses set forth below unless subsequently changed by written notice to the
other party: 

	For Scripps:	 	The Scripps Research Institute
	 	 	 	 	10550 North Torrey Pines Road, TPC-9

La Jolla, California 92037

Attention: Director, Technology Development

Fax No.: (858) 784-9910
	
 and	
 	

The Scripps Research Institute
	 	 	 	 	10550 North Torrey Pines Road, TPC-8

La Jolla, California 92037

Attention: General Counsel

Fax No.: (858) 784-9910
	
 For Licensee:	
 	

Optimer Pharmaceutical, Inc.
	 	 	 	 	Sorrento Valley Road, Suite D

San Diego, CA 92121

Attention: Michael Chang

Fax No.: (858) 909-0737

Notice
shall be deemed delivered upon the earlier of (i) when received, (ii) three (3) days after deposit into the mail, or (iii) the date notice is sent via telefax, telex
or cable, (iv) the day immediately following delivery to overnight courier (except Sunday and holidays). 

        10.11    Compliance with U.S. Laws.    Nothing contained in this Agreement shall
require or permit Scripps or Licensee to do any act inconsistent with the requirements of any United States law, regulation or executive order as the same may be in effect from time
to time. 

        IN
WITNESS WHEREOF, the parties have executed this Agreement by their duly authorized representatives as of the date set forth above. 

	 SCRIPPS:	 	LICENSEE:
	
    	

 	
 	

 	

 
	
  THE SCRIPPS RESEARCH INSTITUTE	
 	

OPTIMER PHARMACEUTICALS, Inc.
	
    	

 	
 	

 	

 
	
 By:	

/s/ Arnold LaGuardia
	
 	

By:	

/s/ Michael Chang

	
 Title:	

Executive Vice President
	
 	

Title:	

CEO

13

  

 
 

EXHIBIT A    
    
    DISCLOSURE OF TECHNOLOGY    

	
 	
 	

 
	
 TSRI 609.1	
 	

US Patent Application #09/581,044 "HIV/FIV Protease Inhibitors Having a Small P3 Residue" by Drs. Wong, Lee, and Elder
	
 TSRI 609.1	
 	

EP Issued Patent 1039886 "HIV/FIV Protease Inhibitors Having a Small P3 Residue" by Drs. Wong, Lee, and Elder
	
 TSRI 609.1	
 	

PCT WO 99/29322 "HIV/FIV Protease Inhibitors Having a Small P3 Residue" by Drs. Wong, Lee, and Elder

14

 
 
 

EXHIBIT B
  
    FORM OF SUBLICENSE    
    

        This Sublicense Term Sheet is entered into and made effective as of
                                    ,
20            
by and between                                     , a
                                     located at
                                     ("Licensee") and
                                    , a
                                     located at
                                     ("Sublicensee").
 

        Grant
of Sublicense.    Licensee hereby grants to Sublicensee a sublicense under and on all the same terms and conditions of that certain License
Agreement between Licensee and The Scripps Research Institute, a California nonprofit public benefit corporation ("Scripps") attached hereto as Exhibit I (the "Master License
Agreement"), except as set forth below: 

	 	a.    Technology subject to Sublicense:	 	

	

	

	 	
 b.    Term:	
 	

	

	

	 	
 c.    Royalty Payments:	
 	

	

	

	 	
 d.    Commercial Development Obligations:	
 	

	

	

15

 

        By
its signature below, Sublicensee agrees to be bound by all of the terms and conditions of the Master License Agreement, as modified hereby, for the benefit of Licensee
and Scripps. 

	
 LICENSEE:	
 	

SUBLICENSEE:
	
    	

 	
 	

 	

 
	
	 	

	
    	

 	
 	

 	

 
	
 By:	

	
 	

By:	

	
 Title:	

	
 	

Title:	

16

 
 
 

EXHIBIT C
  
    MILESTONES    
    

        Financial: Optimer shall have received at least one and half million dollars ($1,500,000) in funding within three (3) years from the date hereof, or such
license to the Scripps Patent Rights and Scripps Technology shall terminate. 

        Developmental:
Recognizing that Optimer is a small, early stage company, Optimer will provide Scripps with developmental milestones for the technology in the first year following
execution of this Agreement. The developmental milestones provided by Optimer will not be unreasonably rejected by Scripps. 

17

QuickLinks

Exhibit 10.10

LICENSE AGREEMENT

RECITALS

AGREEMENT

EXHIBIT A DISCLOSURE OF TECHNOLOGY

EXHIBIT B FORM OF SUBLICENSE

EXHIBIT C MILESTONESQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.11    
    

*** Test Omitted and Filed Separately

CONFIDENTIAL TREATMENT REQUESTED

Under 17 C.F.R. §§ 200.80(b)(4) and 230.406  

  
 

    Amendment of License Agreement between Optimer Pharmaceutical, Inc Delaware
  Corporation and Optimer Biotechnology, Inc., A Taiwan Corporation    
    

The
license agreement between Optimer Pharmaceuticals, Inc., USA (Optimer) and Optimer Biotechnology, Inc., Taiwan (OBI) was originally signed on December 8, 2003 with the goal to
spin off the Asian operation into an independent entity. Fund raising effort was postponed to focus on Optimer's late-stage pipeline products. OBI's current management team has made
contributions to the overall progress. We have made amendments to the original signed agreement, to give additional credit for OBI contributions and to reflect the spirit of the collaboration
relationship. 

In
addition, Optimer and OBI had agreed in December 2003 to treat all of OBI's post-agreement operational expenses from January 2004 to December 31, 2006, in the
amount of approximately US$2.0M, as an interest-free loan from Optimer to accurately reflect its "independent" status. This agreement will continue, and OBI is to pay back this loan in the
future. However, OBI will not use its raised fund to pay back the loan at this time. OBI will pay back this loan from its royalty income due from Optimer, projected to be starting in 2009. Both
parties have agreed that the loan will be paid back in two equal installments, projected to be on October 1, 2009 and October 1, 2010, respectively. 

This
amendment is effective on September 30, 2006, the projected closing date of OBI's Series A round. 

Article I—Definition  

	1.7
	"OPT-22 Patents
B" means those OPTIMER Patents under the corresponding heading in Exhibit A.

	1.8
	"OPT-22 Patents
C" means those OPTIMER Patents under the corresponding heading in Exhibit A.

	1.12
	"Candidate
Patents" means OPT-22 Patents A, OPT-22 Patents B, and OPT-80 Patents.

	1.26
	"Licensed
Products" means Chemzyme Products, OPopSTM Products, OPT-22 Products and OPT-80 Products. 

Amendment: Delete 1.7 and 1.8. Modify 1.2 and 1.26  

	1.12
	"Candidate Patents" means OPT-22 Patents A, OPT-22 Patents D, OPT-99 patens and
OPT-80 Patents.

 
	1.26
	 "Licensed Products" means OPT-99, OPT-22 Products and OPT-80 Products.  

  
 

    Article II—Grant    
    

Original:  

	2.2
	Candidate Licenses.    Subject to the terms of this Agreement, OPTIMER hereby grants to OBI:

	(i)
	an
exclusive royalty-bearing license in the Candidate Territory under the OPT-22 Patents A in the OPT-22 Field I to make, have
made, use, sell, have sold, import and develop OPT-22 Products I, with the right to grant and authorize sublicenses; 

 

	(ii)
	an
exclusive royalty-bearing license in the Candidate Territory under the OPT-22 Patents B in the OPT-22 Field II to make, have
made, use, sell, have sold, import and develop OPT-22 Products II, with the right to grant and authorize sublicenses;

	(iii)
	a
non-exclusive royalty-bearing license in the Candidate Territory under the OPT-22 Patents A and OPT-22 Patents C in
the OPT-22 Field II, and under OPT-22 Patents D in the OPT-22 Field I and OPT-22 Field II, to make, have made, use, sell,
have sold, import and develop OPT-22 Products I and OPT-22 Products II, with the right to grant and authorize sublicenses;

	(iv)
	an
exclusive license royalty-bearing license in the Candidate Territory under the OPT-80 Patents in the OPT-80 Field to make, have
made, use, sell, have sold, import and develop OPT-80 Products, with the right to grant and authorize sublicenses. 

Amendment: Delete (ii), revise (i), (iii) and (iv) and add (v)—Optimer, USA, has returned patents B and C
(Exhibit A) to MSKCC since June 30, 2005. They are not part of license agreement any more.

	(i)
	an
exclusive royalty-bearing license in the Candidate Territory under the OPT-22 Patents A in the OPT-22 Field I to  manufacture know how, make, have made, use, sell, have sold, import and develop
OPT-22 Products I, with the right to grant and
authorize sublicenses;

	(ii)
	an exclusive royalty-bearing license in the Candidate Territory under the
OPT-22 Patents B in the OPT-22 Field II to manufacturing know how, make, have made, use, sell, have sold, import and develop OPT-22 Products
II, with the right to grant and authorize sublicenses;

	(iii)
	a non-exclusive royalty-bearing license in the Candidate Territory under the OPT-22 Patents A in the
OPT-22 Field II, and under OPT-22 Patents D in the OPT-22 Field I and OPT-22 Field II, to manufacture know how, make, have
made, use, sell, have sold, import and develop OPT-22 Products I and OPT-22 Products II, with the right to grant and authorize sublicenses;

	(iv)
	an
exclusive license royalty-bearing license in the Candidate Territory under the OPT-80 Patents in the OPT-80 Field to  manufacture know how, make, have made, use, sell, have sold, import and
develop OPT-80 Products, with the right to grant and
authorize sublicenses.

	(v)
	an exclusive license or pass-through license in the Candidate Territory under the OPT-99 Patents in the
OPT-99 Field to manufacture know how, make, have made, use, sell, have sold, import and develop OPT-99 Products, with the right to grant and authorize
sublicenses.

 
 

Article III—Due Diligence. Regulatory Matters    
    

Original: Section 3.2 and 3.3  

	3.1
	Within
sixty (60) days of the Effective Date, OPTIMER and OBI shall mutually agree upon a timeline for preclinical and clinical development of Licensed Products with clinical
therapeutic or diagnostic applications ("Timeline") for which OPTIMER holds territorial rights. Agreement to the Timeline for such Licensed Products shall not be unreasonably withheld by OPTIMER. Such
Timeline shall be appended as an Exhibit to this Agreement, and may be amended from time to time as necessary and by mutual consent. In the event that agreement cannot be reached on the Timeline
within sixty (60) days of the Effective Date, or any developmental milestone specified in the Timeline is not met by OBI, OPTIMER shall have the right to terminate this Agreement in accordance
with Section 12.4. 

2

 

	3.2
	In
addition, OBI shall adhere to the following milestones: 

(a)    OBI
shall have delivered to OPTIMER prior to the execution of this Agreement, its detailed business, research and development plan including, for example, relevant schedules of
capital investments needed to implement the plan, financial, equipment, facility plans, number and kind of personnel and time planned for each phase of development of the OPTIMER Patents for a  three year
period, to the extent formed by OBI. Similar reports shall be provided to OPTIMER annually to
relay update and status information on OBI's business, research and development progress, including projections of activity anticipated for the next reporting year. 

(b)    OBI
shall be responsible for diligently and promptly taking all reasonable steps to secure all required and/or necessary governmental approvals to sell, exploit, or market any and all
Licensed Products. OBI shall advise OPTIMER, through annual reports described in Section 3.3(a) above of its program of development for obtaining said approvals. 

Amendment: Amend 3.2 and 3.3  

3.2 and 3.3—OBI had submitted updated Business Plan, Budge and Financial Projections, and Optimer agrees that OBI has full filled these
terms.

 
 

Article IV—Payments    
    

Original: Section 4.1 (a)  

4.1
(a)—20,400,000 shares (equivalent to $6 MM USD) of Optimer Biotechnology, Inc. Series A Common Stock, par value NT$10 (US$0.294) per share (the "Shares"),
issuable within thirty (30) days on the Effective Date of this Agreement. Shares will be subjected to final audit upon closing of financing. In connection with the issuance of the Shares,
OPTIMER shall enter into the Common Stock Issuance Agreement, attached hereto as Exhibit C ("Common Stock Issuance Agreement"). 

Amendment:  

4.1 (a)—In connection with the issuance of 20,400,000 shares related to technology valuation (equivalent to $6 MM USD) of Optimer Biotechnology, Inc.
Common Stock, par value NT$10 (US$0.294) per share (the "Shares"), OPTIMER and OBI shall enter into the Common Stock Issuance Agreement, attached hereto as Exhibit C ("Common Stock
Issuance Agreement") within sixty days (60) after the Effective Date of this agreement. Shares will be subjected to final auditing upon closing of OBI's Series A
financing.

Original: Section 4.1(b)  

4.1
(b)—For OPT-22 Products and OPT-80 Products, OBI will make payments to OPTIMER upon accomplishing (itself or through a sublicensee) the
following milestones: 

For OPT-22 Products:

	•
	$[***]
upon initiation of the first Phase II (or equivalent) efficacy study in the Discovery Territory

	•
	$[***]
upon commencement of the first pivotal studies in the Discovery Territory

	•
	$[***]
upon first New Drug Application or equivalent in the Discovery Territory

	•
	$[***]
upon the first marketing approval in the first Candidate Territory. 

3

 

For OPT-80 Products:

	•
	$[***]
upon completion of the first Phase II (or equivalent) efficacy study in the United States of America.

	•
	$[***]
upon commencement of the first pivotal studies in the Candidate Territory

	•
	$[***]
upon first New Drug Application or equivalent in the Candidate Territory

	•
	$[***]
upon the first marketing approval in the Candidate Territory. 

Amendment:  

For OPT-22 Products: OBI will proceed with Phase 2/3 pivotal trial directly, therefore the $[***] payment upon initiation of
the first Phase II does not apply.

4.1 (b)—The milestone payments will be deducted from the future royalty payment. The royalty commencing time is projected to be in January 1,
2009. 

Original: Section 4.1 (f)  

4.1
(f) Minimum annual royalty payments, starting in the Royalty Year commencing January 1 after the Execution Date, in the amount of [***] dollars
($[***]). The royalty payments shall be credited against the earned royalty payments required in Section 4.1(c) for the same Royalty Year only, and shall
be paid within thirty days following the end of the Royalty Year. 

Amendment:  

4.1 (f)—There shouldn't be royalty responsibility before any product is approved or launched in the territory. Delete 4.1  

Original: Section 4.4 (a)  

4.4
(a)—OBI shall pay to OPTIMER interest on any amounts not paid when due. Likewise, OPTIMER shall pay to OBI interest on any amounts not paid when due. Such interest will accrue from the
forty-fifth (45th) day after the payment was due at a rate two percent (2%) above the daily prime interest rate, as determined by J.P. Morgan Chase or its successor entity, on
each day the payment is delinquent, and the interest payment will be due and payable on the first day of each month after interest begins to accrue, until full payment of all amounts due OPTIMER or
OBI is made. 

Amendment:  

4.4 (a)—This interest clause will be implemented from July 1, 2009.  

Original: Section 4.5 (a)  

4.5
(a)—A royalty in an amount equal to [***]% of monies received by OPTIMER for OPT-22 Product sales in any or all of the countries outside of
the Candidate Territories. 

Amendment:  

4.5 (a)—A royalty in an amount equal to [***]% (Not [***]%) of monies received by OPTIMER for
OPT-22 Product sales in any or all of the countries outside of the Candidate Territories.

4

 

Original: Section 4.5 (b)  

4.5
(b)—A royalty in an amount equal to [***]% of monies received by OPTIMER for OPT-80 Product sales in any or all of the countries outside of
the Candidate Territories. 

Amendment:  

4.5 (b)—A royalty in an amount equal to [***]% (Not [***]%) of monies received by OPTIMER for
OPT-80 Product sales in any or all of the countries outside of the Candidate Territories.

 
 

Article VI—Patent prosecution    
    

Original: Section 6.1  

6.1—OBI
shall be responsible for and pay all future costs and expenses incurred by OPTIMER for the preparation, filing, prosecution, issuance, and maintenance of Candidate Patents in the
Candidate Territory. For costs and expenses incurred prior to the Effective Date of this Agreement shall be reimbursed to OPTIMER by OBI as a one-time payment of
$[***] and shall be paid by OBI within forty-five (45) days of the Effective Date. Such costs and expenses incurred after the Effective Date shall be paid by
OBI as they are incurred. 

Amendment:  

6.1—OBI shall be responsible for the preparation, filing, prosecution, issuance, and maintenance of Candidate Patents in the Candidate Territory. For costs and
expenses incurred prior to the Effective Date of this Agreement shall be reimbursed to OPTIMER by OBI within 60 days of Series A closing.

 
 

Article X—Non-use of names    
    

OBI
shall not use the names of OPTIMER or its Affiliates, nor any of their employees, nor any adaptation thereof, in any advertising, promotional or sales literature without prior written consent
obtained from OPTIMER in each case; provided that once a particular disclosure has been approved, further disclosures which do not differ materially therefrom may be made by OBI without obtaining any
further consent of OPTIMER. 

Amendment:  

OBI shall not use the names of Optimer Pharmaceuticals, Inc. The official registered name of OBI is Optimer Biotechnology, Inc.

 
 

Article XI—Assignment    
    

	11.1
	This
Agreement may not be assigned by OBI without prior written consent from OPTIMER. OPTIMER may assign this Agreement freely. 

Notwithstanding
the foregoing prohibition, OBI may without OPTIMER's consent assign this Agreement to any entity that it may merge into, consolidate with, or transfer substantially all of its assets
("substantially" being EIGHTY PERCENT (80%) or more thereof) to which this Agreement relates, so long as the successor surviving corporation in any such merger, consolidation, transfer or
reorganization assumes in writing the obligations of this Agreement. Such merger, consolidation, transfer or reorganization shall not in itself be a breach of this Article XI, nor be any
default under this Agreement. 

5

 

Amendment:  

Remove this article since OBI is independent from Optimer Pharmaceuticals, Inc., USA.

 
 

Article XIII—Payments, notices and other communications    
    

Any
payment, notice or other communication pursuant to this Agreement shall be sufficiently made or given when delivered by courier or other means providing proof of delivery to such party at its
address below or as it shall designate by written notice given to the other party: 

In
the case of OPTIMER: 

Optimer
Pharmaceuticals, Inc.

10110 Sorrento Valley Road, Suite C

San Diego, CA 92121 USA

Attention: Norman K. Orida, Ph.D.

Vice President, Business Development 

In
the case of OBI: 

Optimer
Biotechnology, Inc.

Suite D

14th Floor

207 Tun Hwa S. Road

Taipei 106, Taiwan

Attention: Ying-Cheun Lee

Executive Vice President, Commercial Operations 

Amendment:  

In the case of OPTIMER:  

Optimer Pharmaceuticals, Inc.

10110 Sorrento Valley Road, Suite C

San Diego, CA 92121 USA

Attention: Michael N. Chang, Ph.D.

President and CEO  

In the case of OBI:  

Optimer Biotechnology, Inc.

Nankang Software Park, Room D, 14F,

3 Yuan Qu Street

Taipei 115, Taiwan.

Attention: Youe-Kong Shue, Ph.D.

President and CEO  

6

 

IN WITNESS WHEREOF, authorized representatives of the parties have signed and dated this Agreement below. 

	Optimer Pharmaceuticals, Inc.	 	Optimer Biotechnology, Inc.
	
/s/ Michael N. Chang, Ph.D.	
 	

/s/ Youe-Kong Shue, Ph.D.
	
  By: Michael N. Chang, Ph.D.

President and CEO	
 	

By: Youe-Kong Shue, Ph.D.

President and CEO
	
 	
 	

 	
 	

 	
 	

 
	

Date:	
 	

7/17/06
	
 	

Date:	
 	

7/17/06

7

 
 
 

EXHIBIT A—UPDATE    
    

"OPTIMER
Patents" means all the United States patents and patent applications listed below, and their continuations, continuations-in-part, divisionals, and other
continuing applications, all patents issuing on the foregoing, all reissues, re-examinations, extensions of any kind, substitutions, registrations and corresponding foreign patents and
patent applications: 

OPT-22 Patents A  

US
patent 5,708,163 "Synthesis of the Breast Tumor-Associated Antigen Defined by Monoclonal Antibody MBrl and Uses Thereof" 

US
patent 6,090,789 "Synthesis of the Breast Tumor-Associated Antigen Defined by Monoclonal Antibody MBrl and Uses Thereof" 

US
patent application 09/017,611 "Synthesis of Glycoconjugates of the Globo-H Epitope and Uses Thereof" 

OPT-22 Patents D—A nonexclusive in field I, see updated patent portfolio  

US
patent application 09/794,905 "Affinity Matrix Bearing Tumor-Associated Carbohydrate or Glycopeptide-Based Antigens and Uses Thereof" 

OPopSTM Category Patents—See attached patent portfolio.

US
provisional patent application #60/096/001. "Programmed One-Pot Multistep Assembly of Oligosaccharides." 

OPT-80 Patents-See attached patent portfolio  

US
provisional patent application #60/399,956. "Tiacumicin Production." 

OPT-99 NCE and process patent—See attached patent portfolio  

8

  

 
 

LICENSE AGREEMENT    
    

 
 

By and between    
    

 
 

Optimer Pharmaceuticals, Inc.
  A Delaware Corporation    
    

 
 

And    
    

 
 

Optimer Biotechnology, Inc.
  A Taiwan Corporation    
    

 
 

TABLE OF CONTENTS    
    

	PREAMBLE

ARTICLES:
 
	 	 
	 	 

	 	I	 	DEFINITIONS	 	9
	 	II	 	GRANT	 	11
	 	III	 	DUE DILIGENCE, REGULATORY MATTERS	 	13
	 	IV	 	PAYMENTS	 	14
	 	V	 	REPORTS AND RECORDS	 	16
	 	VI	 	PATENT PROSECUTION	 	17
	 	VII	 	INFRINGEMENT	 	17
	 	VIII	 	INDEMNIFICATION, PRODUCT LIABILITY, WARRANTIES	 	18
	 	IX	 	EXPORT CONTROLS	 	19
	 	X	 	NON-USE OF NAMES	 	19
	 	XI	 	ASSIGNMENT	 	19
	 	XII	 	TERMINATION	 	20
	 	XIII	 	PAYMENTS, NOTICES AND OTHER COMMUNICATIONS	 	21
	 	XIV	 	MISCELLANEOUS PROVISIONS	 	21

 
 

CONFIDENTIAL    
    

8

 

This
License Agreement ("Agreement") is effective on the date last subscribed below (the "Effective Date"), and is by and between Optimer Pharmaceuticals,
Incorporated (hereinafter referred to as "OPTIMER"), a Delaware corporation with principal offices at 10110 Sorrento Valley Road, Suite C, San Diego, California 92121,
and Optimer Biotechnology, Inc., a Taiwan corporation with principal offices located at Suite D, 14F, 207 Tun Hwa S. Road, Sec. 2,
Taipei, 106 Taiwan, ROC (hereinafter referred to as "OBI"). 

 
 

WITNESSETH    
    

        WHEREAS, OPTIMER is the owner or licensee of certain patents and know-how and has the right to grant licenses under said patents and
know-how; and 

        WHEREAS,
OPTIMER desires to have said patents and know-how utilized to develop commercial therapeutics in certain fields and territories and is willing to grant a license to
its interest thereunder; and 

        WHEREAS,
OBI seeks to commercially develop said patents and know-how through a thorough, vigorous and diligent program of commercializing the said patents and
know-how in said fields and territories. 

        NOW,
THEREFORE, in consideration of the premises and the mutual covenants contained herein, the parties hereto agree as follows: 

 
 

ARTICLE I—DEFINITIONS    
    

For
the purpose of this Agreement, the following words and phrases shall have the following meanings: 

	1.1
	"Affiliate"
of a party means any person, firm, corporation or other entity controlling, controlled by, or under common control with that party. The term "control" wherever used
throughout this Agreement means ownership, directly or indirectly, of more than 50% of the equity capital.

	1.2
	"OBI"
as used in this Agreement shall include OBI's Affiliates.

	1.3
	"OPTIMER
Patents" shall have the meaning as defined in Exhibit A.

	1.4
	"Chemzyme
Patents" means those OPTIMER Patents under the corresponding heading in Exhibit A.

	1.5
	"OPopSTM
Patents" means those OPTIMER Patents under the corresponding heading in Exhibit A.

	1.6
	"OPT-22 Patents
A" means those OPTIMER Patents under the corresponding heading in Exhibit A.

	1.7
	"OPT-22 Patents
B" means those OPTIMER Patents under the corresponding heading in Exhibit A.

	1.8
	"OPT-22 Patents
C" means those OPTIMER Patents under the corresponding heading in Exhibit A.

	1.9
	"OPT-22 Patents
D" means those OPTIMER Patents under the corresponding heading in Exhibit A.

	1.10
	"OPT-22 Patents"
means OPT-22 Patents A, OPT-22 Patents B, OPT-22 Patents C and
OPT-22 Patents D.

	1.11
	"OPT-80 Patents"
means those OPTIMER Patents under the corresponding heading in Exhibit A.

 
 

CONFIDENTIAL    
    

9

 
	1.12
	"Candidate
Patents" means OPT-22 Patents A, OPT-22 Patents B, and OPT-80 Patents.

	1.13
	"Chemzyme
Field" means the discovery and development using Chemzyme Patents of novel engineered proteins for use in human therapeutic drug applications.

	1.14
	"OPopSTM
Field" means the discovery and development using OPopSTM Patents of new analogs of tiacumicin B and other human therapeutic drugs for use in human
therapeutic drug applications.

	1.15
	"Clustered
Carbohydrate Antigen" means an immunogenic molecule consisting of two or more identical or different carbohydrate antigens attached to a common peptide backbone.

	1.16
	"OPT-22 Field
I" means the treatment or prevention of human cancer with a carbohydrate vaccine comprising Globo H as the sole antigen. Specifically excluded from
OPT-22 Field I are (i) vaccines comprising mixtures of more than one type of carbohydrate antigen, one of which may be Globo H, and (ii) vaccines comprising Clustered
Carbohydrate Antigens wherein the carbohydrate antigens have not been synthesized using OPTIMER's OPopSTM technology.

	1.17
	"OPT-22 Field
II" means the treatment or prevention of human cancer with a carbohydrate vaccine comprising Clustered Carbohydrate Antigens wherein the carbohydrate
antigens have been synthesized using OPTIMER's OPopSTM technology.

	1.18
	"OPT-80 Field"
means the treatment of human C. difficile-associated diarrhea with analogs of (tiacumicin B).

	1.19
	"Chemzyme
Products" means any and all products and services within the Chemzyme Field, whether or not covered by OPTIMER Patents.

	1.20
	"OPopSTM
Products" means any and all products and services within the OPopSTM Field, whether or not covered by OPTIMER Patents.

	1.21
	"OPT-22 Products
I" means any and all products and services within the OPT-22 Field I, whether or not covered by OPTIMER Patents.

	1.22
	"OPT-22 Products
II" means any and all products and services within the OPT-22 Field II, whether or not covered by OPTIMER Patents.

	1.23
	"OPT-22 Products"
means OPT-22 Products I and OPT-22 Products II.

	1.24
	"OPT-80 Products"
means any and all products and services within the OPT-80 Field, whether or not covered by OPTIMER Patents.

	1.25
	"Know-How"
means any technical information, know-how, processes, procedures, compositions, devices, methods, formulas, protocols, techniques, designs, data or
other subject matter owned or controlled by OPTIMER which is necessary for the manufacture, sale and/or use of Licensed Products, in each case, which is not in the public domain.

	1.26
	"Licensed
Products" means Chemzyme Products, OPopSTM Products, OPT-22 Products and OPT-80 Products. 

 
 

CONFIDENTIAL    
    

10

 
	1.27
	"Net
Sales" of a Licensed Product means OBI's or its sublicensee's, as indicated, billings for sales of that product to an unaffiliated third party, less the sum of the following:

	a)
	Discounts
allowed in amounts customary in the trade;

	b)
	Sales,
tariff duties and/or use taxes directly imposed and with reference to particular sales;

	c)
	Outbound
transportation prepaid or allowed;

	d)
	Amounts
allowed or credited on returns; and

	e)
	Bad
debts and uncollectible receivables provided that, in any calendar year, such deduction will not exceed four percent (4%) of the total billings for sales of Licensed
Products sold in that year. 

No
deductions shall be made for commissions paid to individuals whether they be with independent sales agencies or regularly employed by OBI or its Affiliates and on its payroll, or for cost of
collections. Licensed Products shall be considered "sold" when billed or invoiced. 

	1.28
	"Royalty
Year" means each twelve month period commencing January 1 and ending December 31 during the term of this Agreement. For the first year of this Agreement, the
Royalty Year shall be the period of time between the signing of the Agreement and December 31.

	1.29
	"Candidate
Territory" means the countries of Taiwan R.O.C., China, the territory of Hong Kong, and the ASEAN Secretariat countries, comprising Thailand, Vietnam, Laos, Cambodia,
Burma, Thailand, Malaysia, Singapore, Brunei, Indonesia, Philippines, Australia, and New Zealand.

	1.30
	"Discovery
Territory" means worldwide. 

 
 

ARTICLE II—GRANT    
    

        2.1    Discovery Licenses.    Subject to the terms of this Agreement, OPTIMER hereby grants to OBI: 

	(i)
	a
non-exclusive royalty-bearing license in the Discovery Territory under the OPopSTM Patents in the OPopSTM Field to make, have made,
use, sell, have sold, import and develop OPopSTM Products, with the right to grant and authorize sublicenses that do not include the right to grant further sublicenses; and

	(ii)
	a
non-exclusive royalty-bearing license in the Discovery Territory under the Chemzyme Patents in the Chemzyme Field to make, have made, use, sell, have
sold, import and develop Chemzyme Products, with the right to grant and authorize sublicenses that do not include the right to grant further sublicenses. 

 
 

CONFIDENTIAL    
    

11

 

        2.2    Candidate Licenses.    Subject to the terms of this Agreement, OPTIMER hereby grants to OBI: 

	(i)
	an
exclusive royalty-bearing license in the Candidate Territory under the OPT-22 Patents A in the OPT-22 Field I to make, have
made, use, sell, have sold, import and develop OPT-22 Products I, with the right to grant and authorize sublicenses;

	(ii)
	an
exclusive royalty-bearing license in the Candidate Territory under the OPT-22 Patents B in the OPT-22 Field II to make, have
made, use, sell, have sold, import and develop OPT-22 Products II, with the right to grant and authorize sublicenses;

	(iii)
	a
non-exclusive royalty-bearing license in the Candidate Territory under the OPT-22 Patents A and OPT-22 Patents C in
the OPT-22 Field II, and under OPT-22 Patents D in the OPT-22 Field I and OPT-22 Field II, to make, have made, use, sell,
have sold, import and develop OPT-22 Products I and OPT-22 Products II, with the right to grant and authorize sublicenses;

	(iv)
	an
exclusive license royalty-bearing license in the Candidate Territory under the OPT-80 Patents in the OPT-80 Field to make, have
made, use, sell, have sold, import and develop OPT-80 Products, with the right to grant and authorize sublicenses.

	2.3
	OPTIMER
shall have the right of first refusal to exclusively license rights to new OPopSTM Products and Chemzyme Products (collectively, "New Candidates") outside of
the Candidate Territory arising from OBI's or its sublicensees' exercise of the licenses in Section 2.1. Prior to commercializing or granting rights to any third party with respect to
any New Candidates, OBI shall engage in good faith negotiations with OPTIMER for a period not to exceed 30 (thirty) days regarding an exclusive license for the New Candidates. Following
such negotiation period, OBI may enter into negotiations with a third party with respect to said New Candidates. Upon arriving at mutually acceptable license terms with a third party, OBI may
enter into a formal license agreement with a third party provided that: (1) OBI first presents the terms of such proposed third party license agreement to OPTIMER and offers to enter into an
agreement with OPTIMER on the same terms (2) OPTIMER has declined that offer, in writing, after a 14 (fourteen) day evaluation period.

	2.4
	Notwithstanding
any other provisions of this Agreement, it is agreed that OPTIMER and its Affiliates and licensors shall retain the right to practice the licensed rights granted under
Section 2.1 and 2.2 for their own teaching, research and patient care activities.

	2.5
	All
rights reserved to the United States Government and others under 35 USC §§200-212, as amended, shall remain and shall in no way
be affected by this Agreement.

	2.6
	OBI
agrees that every sublicensing agreement to which it shall be party and which shall relate to the rights, privileges and license granted hereunder shall contain a statement
describing the date upon which OBI'S exclusive rights, privileges and license hereunder shall terminate. 

 
 

CONFIDENTIAL    
    

12

 
	2.7
	OBI
agrees that any sublicenses granted by it shall be subject to OPTIMER's prior written approval, not to be unreasonably withheld. OBI agrees that any sublicenses granted by it
shall provide that the obligations to OPTIMER of Sections 3.1 and 3.3 and Articles V, VII, VIII, IX, X, XI, XII, and XIV of this Agreement shall be binding upon the
sublicensees as if it were a party to this Agreement. OBI further agrees to attach copies of these Articles to sublicense agreements.

	2.8
	OBI
agrees to forward promptly to OPTIMER a copy of any and all fully executed sublicense agreements, and further agrees to timely forward to OPTIMER a copy of sublicensing revenue
reports received by OBI from its sublicensees during the preceding Royalty Year.

	2.9
	If
OBI receives from sublicensees anything of value in lieu of cash payments based upon payment obligations of any sublicense under this Agreement, OBI shall pay OPTIMER royalty or
other payments as required by Section 4.1, based on the fair market value of such payment, unless OPTIMER waives in writing such payment obligation.

	2.10
	The
license granted hereunder shall not be construed to confer any rights upon OBI by implication, estoppel or otherwise as to any technology not included in the OPTIMER Patents,
except as expressly set forth herein.

	2.11
	All
rights not specifically granted herein are reserved to OPTIMER. Without limitation, OPTIMER explicitly retains the right to grant to third parties exclusive rights outside of the
territories or fields of use granted to OBI hereunder.

	2.12
	OPTIMER
shall cooperate to transfer to OBI a copy of all documentation of Know-How in OPTIMER's possession or control, in a format reasonably acceptable to OBI. 

 
 

ARTICLE III—DUE DILIGENCE, REGULATORY MATTERS    
    

	3.1
	OBI
and its sublicensees shall use commercially reasonable efforts to bring Licensed Products to market through a thorough, vigorous and diligent program for exploitation of the
OPTIMER Patents and to continue active, diligent marketing efforts for one or more Licensed Products or throughout the life of this Agreement.

	3.2
	Within
sixty (60) days of the Effective Date, OPTIMER and OBI shall mutually agree upon a timeline for preclinical and clinical development of Licensed Products with clinical
therapeutic or diagnostic applications ("Timeline") for which OPTIMER holds territorial rights. Agreement to the Timeline for such Licensed Products shall not be unreasonably withheld by OPTIMER. Such
Timeline shall be appended as an Exhibit to this Agreement, and may be amended from time to time as necessary and by mutual consent. In the event that agreement cannot be reached on the Timeline
within sixty (60) days of the Effective Date, or any developmental milestone specified in the Timeline is not met by OBI, OPTIMER shall have the right to terminate this Agreement in accordance
with Section 12.4.

	3.3
	In
addition, OBI shall adhere to the following milestones: 
	(a)
	OBI
shall have delivered to OPTIMER prior to the execution of this Agreement, its detailed business, research and development plan including, for example, relevant schedules of
capital investments needed to implement the plan, financial, equipment, facility plans, number and kind of personnel and time planned for each phase of development of the OPTIMER Patents for a three
year period, to the extent formed by OBI. Similar reports shall be provided to OPTIMER annually to relay update and status information on OBI's business, research and development progress, including
projections of activity anticipated for the next reporting year. 

 
 

CONFIDENTIAL    
    

13

 

	(b)
	OBI
shall be responsible for diligently and promptly taking all reasonable steps to secure all required and/or necessary governmental approvals to sell, exploit, or market any and all
Licensed Products. OBI shall advise OPTIMER, through annual reports described in Section 3.3(a) above of its program of development for obtaining said approvals.

	3.4
	OBI's
failure to perform in accordance with Sections 3.1 and 3.2 above shall be grounds for OPTIMER to terminate this Agreement pursuant to Section 12.4 below.

	3.5
	OPTIMER
shall cooperate with OBI before the U.S. Food and Drug Administration, and any other governmental regulatory agencies in and outside of the U.S. in all matters
regarding Licensed Products. 

 
 

ARTICLE IV—PAYMENTS    
    

	4.1
	For
the rights, privileges and licenses granted hereunder, including the transfer of Know-How, OBI shall pay to OPTIMER, in the manner hereinafter provided, until the end
of the last to expire patent of the OPTIMER Patents or until this Agreement is terminated, whichever occurs first:

	(a)
	20,400,000 shares
(equivalent to $6 MM USD) of Optimer Biotechnology, Inc. Series A Common Stock, par value NT$10 (US$0.294) per share (the "Shares"),
issuable within thirty (30) days on the Effective Date of this Agreement. Shares will be subjected to final audit upon closing of financing. In connection with the issuance of the Shares,
OPTIMER shall enter into the Common Stock Issuance Agreement, attached hereto as Exhibit C ("Common Stock Issuance Agreement").

	(b)
	For
OPT-22 Products and OPT-80 Products, OBI will make payments to OPTIMER upon accomplishing (itself or through a sublicensee) the following
milestones: 

For OPT-22 Products:

	•
	$[***]
upon initiation of the first Phase II (or equivalent) efficacy study in the Discovery Territory

	•
	$[***]
upon commencement of the first pivotal studies in the Discovery Territory

	•
	$[***]
upon first New Drug Application or equivalent in the Discovery Territory

	•
	$[***]
upon the first marketing approval in the first Candidate Territory. 

For OPT-80 Products:

	•
	$[***]
upon completion of the first Phase II (or equivalent) efficacy study in the United States of America.

	•
	$[***]
upon commencement of the first pivotal studies in the Candidate Territory

	•
	$[***]
upon first New Drug Application or equivalent in the Candidate Territory

	•
	$[***]
upon the first marketing approval in the Candidate Territory.

	(c)
	For
Chemzyme Products and OPopSTM Products, a sublicense royalty equivalent to the amount owed by Optimer to The Scripps Research Institute as indicated in the attached
license agreement sections attached hereto as Exhibit C ("Optimer-TSRI License Agreements").

	(d)
	A
royalty in an amount equal to [***]% of Net Sales by OBI or any sublicensees in any or all of the countries within the Candidate Territories for all Licensed
Products in said countries. 

 
 

CONFIDENTIAL    
    

14

 

	(e)
	[***]
percent ([***]%) of all income from sublicensees including (i) sublicense fees, (ii) sublicense maintenance fees,
(iii) milestone payments and (iv) other compensation described in Section 2.9, but excluding (i) verifiable research and development support and expense reimbursement,
(ii) royalties, (iii) sale of equity at fair market value, and, (iv) in cases where OPTIMER Patents are sublicensed in combination with non-OPTIMER patents, a mutually
agreed pro-rata contribution of the non-OPTIMER patents.

	(f)
	Minimum
annual royalty payments, starting in the Royalty Year commencing January 1 after the Execution Date, in the amount of [***] dollars
($[***]). The royalty payments shall be credited against the earned royalty payments required in Section 4.1(c) for the same Royalty Year only, and shall
be paid within thirty days following the end of the Royalty Year.

	4.2
	Royalty
payments to OPTIMER shall be paid in United States dollars in San Diego, CA, USA or at such other place as OPTIMER may reasonably designate consistent with the laws and
regulations controlling in any foreign country, but not in any other currency. If any currency conversion shall be required in connection with the payment of royalties hereunder, such conversion shall
be made by using the exchange rate prevailing at the J.P. Morgan Chase Bank (N.A.) on the last business day of the calendar quarterly reporting period to which such royalty payments relate.

	4.3
	OPTIMER
shall have the right to appoint an independent public accountant, mutually acceptable to the Parties to verify all of OBI's calculations to determine royalty payments
(the "Audit"), to be conducted semiannually. OPTIMER shall bear the cost of such Audit unless the Audit reveals any intentional misstatement of material fact by OBI, or that OBI's calculation
of the Net Sales, Net Units Sold or Average Selling Price per Unit is more than 10% lower than the amounts determined by the Audit, in which case OBI shall bear the cost. If OBI disagrees with the
calculation of the Audit, and Distributor and Company cannot resolve their disagreement, the matter shall be submitted to arbitration in accordance with Section 12.9.

	4.4
	Interest

	(a)
	OBI
shall pay to OPTIMER interest on any amounts not paid when due. Likewise, OPTIMER shall pay to OBI interest on any amounts not paid when due. Such interest will accrue from the
forty-fifth (45th) day after the payment was due at a rate two percent (2%) above the daily prime interest rate, as determined by J.P. Morgan Chase or its successor entity, on
each day the payment is delinquent, and the interest payment will be due and payable on the first day of each month after interest begins to accrue, until full payment of all amounts due OPTIMER or
OBI is made.

	(b)
	OPTIMER's
rights to receive such interest payments shall be in addition to any other rights and remedies available to OPTIMER. Likewise, OBI's rights to receive such interest payments
shall be in addition to any other rights and remedies available to OBI.

	(c)
	If
the interest rate required in this Subsection exceeds the legal rate in a jurisdiction where a claim for such interest is being asserted, the required interest rate shall be
reduced, for such claim only, to the maximum interest rate allowable in the jurisdiction.

	4.5
	For
their contribution towards the development of OPT-22 and OPT-80, OPTIMER shall pay to OBI, in the manner hereinafter provided, until the end of the
last to expire patent of the OPTIMER Patents or until this Agreement is terminated, whichever occurs first:

	(a)
	A
royalty in an amount equal to [***]% of monies received by OPTIMER for OPT-22 Product sales in any or all of the countries outside of the
Candidate Territories. 

 
 

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	(b)
	A
royalty in an amount equal to [***]% of monies received by OPTIMER for OPT-80 Product sales in any or all of the countries outside of the
Candidate Territories.

	(c)
	[***]
percent ([***]%) of all income from sublicensees including (i) sublicense fees, (ii) sublicense maintenance fees,
(iii) milestone payments and (iv) other compensation described in Section 2.9, but excluding (i) verifiable research and development support and expense reimbursement,
(ii) royalties, (iii) sale of equity at fair market value, and, (iv) in cases where OPTIMER Patents are sublicensed in combination with non-OPTIMER patents, a mutually
agreed pro-rata contribution of the non-OPTIMER patents.

	4.6
	Royalty
payments shall be paid in United States dollars in Taiwan, R.O.C., or at such other place as OBI may reasonably designate consistent with the laws and regulations
controlling in any foreign country, but not in any other currency. If any currency conversion shall be required in connection with the payment of royalties hereunder, such conversion shall be made by
using the exchange rate prevailing at the J.P. Morgan Chase Bank (N.A.) on the last business day of the calendar quarterly reporting period to which such royalty payments relate.

	4.7
	OBI
shall have the right to appoint an independent public accountant, mutually acceptable to the Parties to verify all of OPTIMER's calculations to determine royalty payments
(the "Audit"), to be conducted semiannually. OBI shall bear the cost of such Audit unless the Audit reveals any intentional misstatement of material fact by OPTIMER, or that OPTIMER's
calculation of the Net Sales, Net Units Sold or Average Selling Price per Unit is more than 10% lower than the amounts determined by the Audit, in which case OBI shall bear the cost. 

If
OBI disagrees with the calculation of the Audit, and Distributor and Company cannot resolve their disagreement, the matter shall be submitted to arbitration in accordance with Section 12.9. 

 
 

ARTICLE V—REPORTS AND RECORDS    
    

	5.1
	OBI
shall keep full, true and accurate books of account containing all particulars that may be necessary for the purpose of showing the amounts payable to OPTIMER hereunder. Said
books and records shall be maintained for a period of no less than five (5) years following the period to which they pertain. For the term of this Agreement, upon thirty (30) days prior
written notice, OBI shall allow OPTIMER's own accountants or independent accountants selected by OPTIMER, which independent accountants shall be reasonably acceptable to OBI and after entering into a
confidentiality agreement with OBI, to inspect such books and records for the sole purpose of verifying OBI's royalty statement or compliance in other respects with this Agreement. In the case of
independent accountants, such accountants shall report to OPTIMER only whether there has been a royalty underpayment and, if so, the amount thereof. 

Such
inspections shall be during normal working hours of OBI, and shall occur no more frequently than once per calendar year. Should such inspection lead to the discovery of a greater than ten percent
(10%) discrepancy in reporting to OPTIMER's detriment, OBI agrees to pay the full cost of such inspection. 

	5.2
	OBI,
within thirty (30) days after March 31, June 30, September 30 and December 31 of each year, shall deliver to OPTIMER true and accurate reports,
giving such particulars of the business conducted by OBI and its sublicensees during the preceding three-month period under this Agreement as shall be pertinent to a royalty accounting hereunder.
These shall include at least the following, to be itemized per Licensed Product:

	(a)
	Number
of Licensed Products commercially used, manufactured and sold, rented or leased.

	(b)
	Total
billings for Licensed Products commercially used, sold, rented or leased.

	(c)
	Deductions
applicable as provided in Paragraph 1.8. 

 
 

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	(d)
	Total
royalties due.

	(e)
	Names
and addresses of all sublicensees of OBI.

	(f)
	Total
sublicensing fee income described in Section 4.1(d).

	5.3
	With
each such report submitted, OBI shall pay to OPTIMER the royalties due and payable under this Agreement. If no royalties shall be due, OBI shall so report.

	5.4
	Milestone
payments shall be reported and paid with each such report submitted. 

 
 

ARTICLE VI—PATENT PROSECUTION    
    

	6.1
	OBI
shall be responsible for and pay all future costs and expenses incurred by OPTIMER for the preparation, filing, prosecution, issuance, and maintenance of Candidate Patents in the
Candidate Territory. For costs and expenses incurred prior to the Effective Date of this Agreement shall be reimbursed to OPTIMER by OBI as a one-time payment of $10,000 and shall be paid
by OBI within forty-five (45) days of the Effective Date. Such costs and expenses incurred after the Effective Date shall be paid by OBI as they are incurred.

	6.2
	OPTIMER
shall diligently prosecute and maintain the Candidate Patents in such countries as are determined by OPTIMER and agreed to by OBI, using counsel of its choice. If OBI declines
in writing to bear the expense of filing patent applications in any countries in the Candidate Territory in which OPTIMER wishes to obtain patent protection, then OPTIMER may file and prosecute such
applications at its own expense and any license granted hereunder shall exclude such countries.

	6.3
	OPTIMER
shall provide OBI with copies of all relevant documentation so that OBI may be informed and to give OBI reasonable opportunity to advise OPTIMER and comment on the continuing
prosecution of the Candidate Patents. OBI agrees to keep this documentation confidential. 

 
 

ARTICLE VII—INFRINGEMENT    
    

	7.1
	OBI
shall assume primary responsibility for enforcing Candidate Patents within relevant commercial markets in the Candidate Territory in its licensed fields of use. In exercising
these responsibilities, OBI shall promptly contact alleged third party infringers and take all reasonable steps to persuade such third parties to desist from infringing the Candidate Patents,
including initiating and prosecuting an infringement action if necessary, or defending a challenge to the validity of the Candidate Patents. OBI also shall notify OPTIMER of each instance of alleged
infringement and shall keep OPTIMER informed of all stages of Candidate Patents enforcement. OBI may use the name of OPTIMER as party plaintiff. All costs of any action to enforce Candidate Patents in
the Candidate Territory taken by OBI shall be borne by OBI and OBI shall keep any recovery of damages derived therefrom, the excess of such recovery over such costs shall be included in OBI's Net
Sales. No settlement, consent judgment or other voluntary final disposition of the suit may be entered into without the prior written consent of OPTIMER, which consent shall not unreasonably be
withheld.

	7.2
	In
the event OBI becomes aware of infringement of Candidate Patents in the Candidate Territory, either through notice from OPTIMER or by other means, and does not, within six
(6) months (a) secure cessation of the infringement; or (b) enter suit against the infringer; or (c) provide OPTIMER with evidence of pendency of a bona fide negotiation
for sublicensing the infringer, then, thirty (30) days after giving written notice to OBI, OPTIMER shall have the right to (a) sue for the infringement at OPTIMER's own expense, and to
collect for its own use any damages, profits and awards of whatever nature that it may recover for such infringement; and (b) terminate this Agreement according to terms of Article XII. 

 
 

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	7.3
	Each
party shall promptly notify the other in writing in the event that a third party shall bring a claim of infringement against OPTIMER or OBI, either in the United States or
in any foreign country in which there are OPTIMER Patents.

	7.4
	In
the event OBI is sued for patent infringement as a result of its practice of the Candidate Patents, threatened with such suit, or enjoined from exercising its license rights
granted hereunder, OBI may terminate this Agreement according to Article XII or contest the action against it. In any such action, OBI shall be fully responsible for all its costs,
including expenses, judgments and settlements, and shall be entitled to proceeds that it may recover, including judgments, settlements and awards, the excess of such recovery over such costs shall be
included in OBI's Net Sales.

	7.5
	As
between OPTIMER and OBI, OPTIMER shall retain sole control over the enforcement of the OPTIMER Patents except with respect to the Candidate Patents as expressly provided in
Article VII.

	7.6
	In
any infringement suit as either party may institute to enforce the OPTIMER Patents against third parties pursuant to this Agreement, or in any infringement action brought against
either party by a third party, each party hereto shall, at the request and expense of the other party, cooperate in all respects and, to the extent possible, have its employees testify when requested
and make available relevant records, papers, information, samples, specimens, and the like. 

 
 

ARTICLE VIII—INDEMNIFICATION, PRODUCT LIABILITY, WARRANTIES    
    

	8.1
	OBI
shall at all times during the term of this Agreement and thereafter, indemnify, defend and hold OPTIMER and its Affiliates, their Board of Managers, officers, employees and
affiliates, harmless against all claims and expenses, including legal expenses and reasonable attorneys' fees, arising out of the death of or injury to any person or persons or out of any damage to
property and against any other claim, proceeding, demand, expense and liability of any kind whatsoever resulting from the production, manufacture, sale, use, lease, consumption or advertisement of the
Licensed Products, except to the extent such claims or expenses are caused by the gross negligence or willful misconduct of OPTIMER, and its Affiliates, their Board of Managers, officers, or
employees.

	8.2
	For
the term of this Agreement, upon the commencement of clinical use, production, sale, or transfer, whichever occurs first, of any Licensed Products, OBI shall obtain and carry in
full force and effect general liability insurance which shall protect OBI and OPTIMER in regard to events covered by Section 8.1 above. Such insurance shall be written by a reputable insurance
company, shall list OPTIMER as an additional named insured thereunder, shall be endorsed to include liability coverage, and shall require thirty (30) days written notice to be given to OPTIMER
prior to any cancellation or material change thereof. The limits of such insurance shall not be less than one million dollars ($1,000,000) per occurrence with an annual aggregate of three million
dollars ($3,000,000) for personal injury, death or property damage. OBI shall provide OPTIMER with Certificates of Insurance evidencing the same.

	8.3
	OPTIMER
represents and warrants that: (i) it is a Delaware corporation duly organized validly existing and in good standing under the laws of Delaware; (ii) the
execution, delivery and performance of this Agreement have been duly authorized by all necessary corporate action on the part of OPTIMER; (iii) OPTIMER has the right to grant the rights and
licenses granted herein; (iv) to OPTIMER's knowledge, the OPTIMER Patents and Know-How are free and clear of any lien, encumbrance, or security interest; (viii) to OPTIMER's
knowledge, there are no threatened or pending actions, suits, investigations, claims or proceedings in any way relating to the OPTIMER Patents or Know-How. 

 
 

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	8.4
	In
the event that any indemnitee intends to claim indemnification under this Article VIII it shall promptly notify the other party in writing of such potential liability. The
indemnifying party shall have the right to control the defense thereof. The affected indemnitees shall cooperate fully with the indemnifying party and its legal representatives in the investigation
and conduct of any liability covered by this Article VIII. Notwithstanding the foregoing, neither party shall have indemnity obligations for any claim if the indemnitee seeking indemnification
makes any admission, settlement or other communication regarding such claim without the prior written consent of the indemnifying party.

	8.5
	Except
as otherwise expressly set forth in this Agreement, NEITHER PARTY MAKES ANY REPRESENTATIONS OR EXTENDS ANY WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT
LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND VALIDITY OF OPTIMER PATENTS CLAIMS, ISSUED OR PENDING. 

 
 

ARTICLE IX—EXPORT CONTROLS    
    

        It is understood that OPTIMER is subject to United States Laws and regulations controlling the export of technical data, computer software, laboratory
prototypes and other commodities (including the Arms Export Control Act, as amended and the Export Administration Act of 1979), and that its obligations hereunder are contingent on compliance with
applicable United States export laws and regulations. The transfer of certain technical data and commodities may require a license from the cognizant agency of the United States
Government and/or written assurances by OBI that OBI shall not export data or commodities to certain foreign countries without prior approval of such agency. OPTIMER neither represents that a license
shall not be required nor that, if required, it shall be issued. 

 
 

ARTICLE X—NON-USE OF NAMES    
    

        OBI shall not use the names of OPTIMER or its Affiliates, nor any of their employees, nor any adaptation thereof, in any advertising, promotional or sales
literature without prior written consent obtained from OPTIMER in each case; provided that once a particular disclosure has been approved, further disclosures which do not differ materially therefrom
may be made by OBI without obtaining any further consent of OPTIMER. 

 
 

ARTICLE XI—ASSIGNMENT    
    

	11.1
	This
Agreement may not be assigned by OBI without prior written consent from OPTIMER. OPTIMER may assign this Agreement freely.

	11.2
	Notwithstanding
the foregoing prohibition, OBI may without OPTIMER's consent assign this Agreement to any entity that it may merge into, consolidate with, or transfer substantially
all of its assets ("substantially" being EIGHTY PERCENT (80%) or more thereof) to which this Agreement relates, so long as the successor surviving corporation in any such merger, consolidation,
transfer or reorganization assumes in writing the obligations of this Agreement. Such merger, consolidation, transfer or reorganization shall not in itself be a breach of this Article XI,
nor be any default under this Agreement. 

 
 

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ARTICLE XII—TERMINATION    
    

	12.1
	Unless
earlier terminated pursuant to this Article XII, this Agreement shall terminate upon the later to occur of (a) the last to expire of the OPTIMER Patents or
(b) twenty (20) years.

	12.2
	OPTIMER
may terminate this Agreement if OBI becomes insolvent or, a petition in bankruptcy is filed against OBI and is consented to, acquiesced in or remains undismissed for thirty
(30) days; or makes a general assignment for the benefit of creditors, or a receiver is appointed for OBI, and OBI does not return to solvency before the expiration of a thirty (30) day
period.

	12.3
	Should
OBI fail to pay OPTIMER license fees, royalties and patent expenses due and payable hereunder for more than thirty (30) days, OPTIMER shall have the right to terminate
this Agreement on thirty (30) days written notice, unless OBI shall pay OPTIMER within the thirty (30) day period, all such license fees, royalties and patent expenses and interest due
and payable. Upon the expiration of the thirty (30) day period, if OBI shall not have paid all such royalties, patent expenses and interest due and payable, the rights, privileges and license
granted hereunder shall terminate.

	12.4
	As
set out in Section 3.2, should the parties fail to agree upon a Timeline within sixty (60) days of the Effective Date, of if OBI should fail to meet a development
milestone as specified in the Timeline, OPTIMER shall have the right to terminate this Agreement and the rights, privileges and license granted hereunder by sixty (60) days' notice to OBI. Such
termination shall become effective unless mutual agreement is reached, or OBI shall have reached the necessary milestone prior to the expiration of the sixty (60) day period.

	12.5
	Upon
any material breach of this Agreement by OBI, other than those occurrences set out in Sections 12.1, 12.2 and 12.3, which shall always take precedence in that
order over any material breach or default referred to in this Section 12.5, OPTIMER shall have the right to terminate this Agreement and the rights, privileges and license granted hereunder by
sixty (60) days' notice to OBI. Such termination shall become effective unless OBI shall have cured any such breach prior to the expiration of the sixty (60) day period.

	12.6
	Upon
written notice to the OBI for the material breach of the Common Stock Issuance Agreement by the OBI and the failure to cure such material breach within sixty (60) days,
the licenses granted under this Agreement may be terminated by OPTIMER.

	12.7
	OBI
shall be entitled to terminate this Agreement upon (i) sixty (60) days advance written notice to OPTIMER, (ii) in the event of OPTIMER's material breach of
any of the provisions of this Agreement, which breach is not cured (if capable of being cured) within this sixty (60) day period, or (iii) if conditions of Section 7.4
apply.

	12.8
	Upon
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
termination.

	12.9
	Other
than any claim arising from OBI's failure to pay undisputed license fees or patent expenses due under this contract, any controversy or bona fide disputed claim arising between
the parties to this Agreement, which dispute cannot be resolved by mutual agreement shall, by the election of either party, be resolved by submitting to dispute resolution before a
fact-finding mediation body composed of one or more experts in the field, selected by mutual agreement within thirty days of written request by either party. Said dispute resolution shall
be held in San Diego, California at such place as shall be mutually agreed upon in writing by the parties. The fact-finding body shall determine who shall bear the cost of said resolution.
In the event that the parties cannot mutually agree within said thirty (30) days on the dispute resolution body, the parties will go to arbitration in accordance with the Commercial Arbitration
Rules of the American Arbitration Association. 

 
 

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	12.10
	In
the event of any termination of this Agreement any sublicenses granted by OBI shall remain in force and effect and shall be assigned by OBI to OPTIMER, provided, that such
sublicensee is currently in good standing with regard to its obligations under the sublicense or has cured any default or breach within the period provided in such sublicense, and further provided,
that the financial obligations of each such sublicensee shall be limited to those due OPTIMER hereunder for the practice of such a sublicense.

	12.11
	Article VIII
and Article X of this Agreement shall survive termination. 

 
 

ARTICLE XIII—PAYMENTS, NOTICES AND OTHER COMMUNICATIONS    
    

        Any payment, notice or other communication pursuant to this Agreement shall be sufficiently made or given when delivered by courier or other means providing proof
of delivery to such party at its address below or as it shall designate by written notice given to the other party: 

In
the case of OPTIMER: 

Optimer
Pharmaceuticals, Inc.

10110 Sorrento Valley Road, Suite C

San Diego, CA 92121 USA

Attention: Norman K. Orida, Ph.D.

Vice President, Business Development 

In
the case of OBI: 

Optimer
Biotechnology, Inc.

Suite D

14th Floor

207 Tun Hwa S. Road

Taipei 106, Taiwan

Attention: Ying-Cheun Lee

Executive Vice President, Commercial Operations 

 
 

ARTICLE XIV—MISCELLANEOUS PROVISIONS    
    

	14.1
	This
Agreement shall be construed, governed, interpreted and applied in accordance with the laws of the State of California, except that questions affecting the construction and
effect of any patent shall be determined by the law of the country in which the patent was granted.

	14.2
	Except
as expressly provided in this Agreement, neither party shall use for its own benefit or the benefit of any third party, or disclose to any third party with the exception of
any governmental regulatory body, any confidential, proprietary or trade secret information (the "Confidential Information") received from the other party hereto, during the term of this
Agreement and for five (5) years thereafter. 

Disclosure
of Confidential Information to any local governmental regulatory body for grant of approval or marketing of a Licensed Product or in response to any inquiry from a local governmental
regulatory body shall be allowed by mutual written consent of both OPTIMER and OBI. All Confidential Information must be designated as such by disclosing party in writing at or before the disclosure
is made in writing, or within thirty (30) days of such disclosure. 

 
 

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	14.3
	Notwithstanding
Section 14.2 above, Confidential Information shall not include any of the following information which the receiving party can demonstrate by contemporaneous
written evidence:

	a)
	was
already known to the receiving party, other than under an obligation of confidentiality, at the time of disclosure;

	b)
	was
generally available to the public or otherwise part of the public domain at the time of disclosure to the receiving party;

	c)
	became
generally available to the public or otherwise part of the public domain after its disclosure and other than through any act or omission of the receiving party in breach of this
Agreement;

	d)
	was
independently developed by the receiving party without reference to any information or materials disclosed by the disclosing party; or

	e)
	was
subsequently disclosed to the receiving party by a person other than a party without breach of any legal obligation to the disclosing party. 

In
addition, either party may disclose Confidential Information of the other (i) to their legal representatives, employees and Affiliates, and legal representatives and employees of Affiliates,
consultants and sublicensees, to the extent such disclosure is reasonably necessary to achieve the purposes of this Agreement; (ii) in connection with the filing and support of patent
applications as necessary; or (iii) if disclosure is compelled to be disclosed by a court order or applicable law or regulation, provided that the party compelled to make such disclosure
(x) requests confidential treatment of such information, and (y) provides the other party with reasonable advance notice of the compelled disclosure to provide adequate time to seek a
protective order. 

	14.4
	The
provisions of this Agreement are severable, and in the event that any provisions of this Agreement shall be determined to be invalid or unenforceable under any controlling body
of the law, such invalidity or unenforceability shall not in any way affect the validity or enforceability of the remaining provisions hereof.

	14.5
	The
failure of either party to assert a right hereunder or to insist upon compliance with any term or condition of this Agreement shall not constitute a waiver of that right or
excuse a similar subsequent failure to perform any such term or condition by the other party.

	14.6
	The
relationship of the parties hereto is that of independent contractors. The parties hereto are not deemed to be agents, partners or joint ventures of the other for any purpose as
a result of this Agreement or the transactions contemplated thereby.

	14.7
	Neither
party shall lose any rights hereunder or be liable to the other party for damages or losses (except for payment obligations) on account of failure of performance by the
defaulting party if the failure is occasioned by war, strike, fire, Act of God, earthquake, flood, lockout, embargo, governmental acts or orders or restrictions, failure of suppliers, or any other
reason where failure to perform is beyond the reasonable control and not caused by the negligence, intentional conduct or misconduct of the nonperforming party and the nonperforming party has exerted
all reasonable efforts to avoid or remedy such force majeure; provided, however, that in no event shall a party be required to settle any labor dispute or disturbance. 

 
 

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	14.8
	EXCEPT
IN CONNECTION WITH SECTION 8.1 OR A BREACH OF SECTION 14.2, NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL OR INDIRECT DAMAGES
ARISING OUT OF THE PERFORMANCE OF THIS AGREEMENT, HOWEVER CAUSED, UNDER ANY THEORY OF LIABILITY, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

	14.9
	At
any time or from time to time on and after the date of this Agreement, Licensor shall at the written request of OBI (i) deliver to OBI such records, data or other documents
in compliance with the provisions of this Agreement, (ii) execute, and deliver or cause to be delivered, all such consents, documents or further instruments of transfer or license, and
(iii) take or cause to be taken all such actions, as OBI may reasonably deem necessary or desirable in order for OBI to obtain the full benefits of this Agreement and the transactions
contemplated hereby.

	14.10
	This
Agreement sets forth the entire agreement and understanding of the parties with respect to the subject matter hereof, and supersedes all prior discussions, agreements and
writings in relating thereto. This Agreement may not be altered, amended or modified in any way except by a writing signed by both parties.

	14.11
	This
Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be an original and all such counterparts shall together constitute
but one and the same agreement. 

        IN
WITNESS WHEREOF, authorized representatives of the parties have signed and dated this Agreement below. 

	 Optimer Biotechnology, Inc.	 	Optimer Pharmaceuticals, Inc.
	    	 	 	 	 
	By:	/s/ Ying-Cheun Lee	 	By:	/s/ Norman K. Orida, Ph.D.
	 	
	 	 	

	 	Ying-Cheun Lee

Executive Vice President	 	 	Norman K. Orida, Ph.D.

Vice President, Business Development
	    	 	 	 	 
	Date:	12/8/03	 	Date:	12/8/03
	 	
	 	 	

 
 

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EXHIBIT A    
    

        "OPTIMER Patents" means all the United States patents and patent applications listed below, and their continuations,
continuations-in-part, divisionals, and other continuing applications, all patents issuing on the foregoing, all reissues, re-examinations, extensions of any kind,
substitutions, registrations and corresponding foreign patents and patent applications: 

OPT-22 Patents A  

        US patent 5,708,163 "Synthesis of the Breast Tumor-Associated Antigen Defined by Monoclonal Antibody MBrl and Uses Thereof" 

        US
patent 6,090,789 "Synthesis of the Breast Tumor-Associated Antigen Defined by Monoclonal Antibody MBrl and Uses Thereof" 

        US
patent application 09/017,611 "Synthesis of Glycoconjugates of the Globo-H Epitope and Uses Thereof" 

OPT-22 Patents B  

        US patent application 09/083,776 "alpha-O-Linked Glycoconjugates With Clustered
(2, 6)-Epitopes, Methods of Preparation and Uses Thereof" 

        US
patent application 09/276,595 "Trimeric Antigenic O-Linked Glycopeptide Conjugates, Methods of Preparation and Uses Thereof" 

        US
patent application 09/641,742 "Novel Glycoconjugates, Glycoamino Acids, Intermediates Thereto, and Uses Thereof" 

OPT-22 Patents C  

        US patent 5,543,505 "Synthetic Compounds Which Bind to H. Pylori, and Uses Thereof" 

        US
patent 6,303,120 "Synthesis of Glycoconjugates of the Lewis Y Epitope and Uses Thereof," which is jointly owned by OPTIMER and The Trustees of Columbia University in the City of
New York. 

        US
patent 6,238,668 "Colon Cancer KH-1 and N3 Antigens" 

        US
patent application 09/833,327 "Colon Cancer KH-1 and N3 Antigens" 

        US
patent application 09/534,712 "Fucosyl GM1-KLH Conjugate Vaccine Against Small Cell Lung Cancer" 

OPT-22 Patents D  

        US patent application 09/794,905 "Affinity Matrix Bearing Tumor-Associated Carbohydrate- or Glycopeptide-Based Antigens and Uses Thereof" 

Chemzyme Category Patents  

        US provisional patent application #60/096,003 "Alpha 2,8/2,9 Polysialyltransferase" 

OPopSTM Category Patents  

        US provisional patent application #60/096/001. "Programmed One-Pot Multistep Assembly of Oligosaccharides." 

OPT-80 Patents  

        US provisional patent application #60/399,956. "Tiacumicin Production." 

 
 

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EXHIBIT B
  
    Optimer-Scripps Research Institute License Agreement    
    

 
 

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EXHIBIT C
  
    Stock Issuance Agreement    
    

 
 

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QuickLinks

Exhibit 10.11

Amendment of License Agreement between Optimer Pharmaceutical, Inc Delaware Corporation and Optimer Biotechnology, Inc., A Taiwan Corporation

Article II—Grant

Article III—Due Diligence. Regulatory Matters

Article IV—Payments

Article VI—Patent prosecution

Article X—Non-use of names

Article XI—Assignment

Article XIII—Payments, notices and other communications

EXHIBIT A—UPDATE

LICENSE AGREEMENT

By and between

Optimer Pharmaceuticals, Inc. A Delaware Corporation

And

Optimer Biotechnology, Inc. A Taiwan Corporation

TABLE OF CONTENTS

CONFIDENTIAL

WITNESSETH

ARTICLE I—DEFINITIONS

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ARTICLE II—GRANT

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ARTICLE III—DUE DILIGENCE, REGULATORY MATTERS

CONFIDENTIAL

ARTICLE IV—PAYMENTS

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ARTICLE V—REPORTS AND RECORDS

CONFIDENTIAL

ARTICLE VI—PATENT PROSECUTION

ARTICLE VII—INFRINGEMENT

CONFIDENTIAL

ARTICLE VIII—INDEMNIFICATION, PRODUCT LIABILITY, WARRANTIES

CONFIDENTIAL

ARTICLE IX—EXPORT CONTROLS

ARTICLE X—NON-USE OF NAMES

ARTICLE XI—ASSIGNMENT

CONFIDENTIAL

ARTICLE XII—TERMINATION

CONFIDENTIAL

ARTICLE XIII—PAYMENTS, NOTICES AND OTHER COMMUNICATIONS

ARTICLE XIV—MISCELLANEOUS PROVISIONS

CONFIDENTIAL

CONFIDENTIAL

CONFIDENTIAL

EXHIBIT A

CONFIDENTIAL

EXHIBIT B Optimer-Scripps Research Institute License Agreement

CONFIDENTIAL

EXHIBIT C Stock Issuance Agreement

CONFIDENTIAL

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