Document:

a101redlineplatformlicen

                                                             Exhibit 10.13                                                   ***Text Omitted and Filed Separately with                                                   the Securities and Exchange Commission.                                                   Confidential Treatment Requested Under                                                 17 C.F.R. Sections 200.80(b)(4) and 240.24b-2.                      PLATFORM LICENSE AGREEMENT        This  Platform  License  Agreement  (“Agreement ”)  is  entered  into  effective  March  23, 2015, 2015 (“Effective  Date ”) by OMT, Inc. (“OMT ”), having its principal place of business at 2747  Ross  Road,  Suite  A,  Palo  Alto,  CA  94303, and WuXi AppTec Biopharmaceuticals Co., Ltd. (“Licensee ”), having its principal place of business at 108 Meiliang Rd., Mashan, Wuxi, P.R. China.  In consideration of the mutual covenants and promises set forth in this Agreement, the parties agree as follows:        1.   Definitions .             1.1   “Affiliate”  means,  with  respect  to  a  party,  any Person  that,  directly  or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control  with,  such  party.   For  purposes  of  this  definition,  the  term  “control”  (including,  the correlative meanings, “controlled by” and “under common control with”) means (a) the direct or indirect ownership of more than fifty percent (50%) of the stock or other equity having the right to  vote  for  directors  thereof  (or  general  partnership  interests)  or  (b)  the  ability  to  otherwise control the decisions of the board of directors or equivalent governing body thereof.             1.2   “Animals ”  means  OmniRat,  OmniMouse,  and  OmniFlic  organisms that have  been  delivered to Licensee by or on behalf of OMT hereunder, and any progeny of such delivered organisms generated by or on behalf of Licensee or any Outlicensee.             1.3   “Antibody(ies) ”  means  a  molecule  or  a  gene  encoding  a  molecule comprising  or  containing  one  or  more  immunoglobulin  variable  domains  or  parts  of  such domains,  or  any  existing  or  future  fragments,  variants,  fusion  proteins,  modifications  or derivatives of such molecule or gene, generated by or on behalf of Licensee in connection with the Animals, which the parties agree include the Existing Antibodies.  Notwithstanding anything to the contrary, use of the term “Antibodies” hereunder does not include Animal Improvements.             1.4   “Approved   Affiliate ”  means  an  Affiliate  of  Licensee  that  is  listed  on Exhibit B, only for such period as such entity is an Affiliate of Licensee.             1.5   “Approved Subcontractor ” has the meaning given to it in Section 3.3.             1.6   “China ” means mainland China, Hong Kong, Macau, and Taiwan.             1.7   “China Plus Territory ” means Korea, India, and Russia.             1.8   “China   Outlicensee ”  means  a  third  party  that  is  located  in  China  who executes a China Outlicensing Agreement in accordance with Section 4.3(a), who is authorized to develop and market an Antibody in China, and, upon execution and delivery of a China Plus Addendum, in the applicable China Plus Territory.   US-DOCS\ 102768708.1 102810577.2 

 

           1.9   “Existing   Antibodies ”  means  antibodies  against  targets  of  PD-1, PD-L1, and  PCSK9  which  have  been  generated  under  the  Development  and  Commercialization Agreement by and beteen the parties dated August 20, 2012.             1.10  “Net  Sales ” means the gross amounts invoiced by or for Outlicensees and their licensees (each, a “Selling  Party ”) for the disposition of a unit of Product to a third party end  user  (the  “Gross   Sales   Price ”),  after  deduction  (if  not  already  deducted  in  the  amount invoiced)  of  the  following  expenses  paid  by  the  Selling  Party  for  such  Product  that  are  each actually  incurred  and  itemized  on  such  invoice  by  the  Selling  Party:  (i)  freight,  shipping, transportation and insurance costs; (ii) discounts, in reasonable amounts that are customary in the trade, that are actually given to buying groups, health care insurance carriers, chain pharmacies, mass  merchandisers,  staff  model  HMOs,  pharmacy  benefit  managers,  and  other  similar wholesalers  and  distributors,  for  quantity  purchases  and  prompt  payment;  (iii)  tax,  including sales, use, turnover, excise, import and other taxes, customs or duties borne by the Selling Party imposed by a governmental agency on such disposition, and (iv) credits or allowances actually given or made with respect to a Product by reason of rejection, defects, recalls, returns, rebates, or uncollectable amounts ((i)-(iv) together, “Permitted  Deductions ”).  A Selling Party shall not dispose of any Product for any consideration other than monetary consideration and on bona fide arm’s length terms, without the prior written agreement of OMT and Licensee (that describes in reasonable detail the basis for calculation of Net Sales based on such a transaction).             1.11  “New Antibodies ” means Antibodies that are not Existing Antibodies.             1.12  “OmniFlic ”  means  a  rat  that  has  been  genetically  modified  by  OMT  to have  inactivated  endogenous  immunoglobin  loci  and  transgenic  immunoglobin  loci  with  a rearranged light chain locus.  For clarity, OmniFlic is an organism distinct from OmniRat.             1.13  “OmniMouse ” means a mouse that has been genetically modified by OMT to have inactivated endogenous immunoglobulin loci and transgenic immunoglobulin loci.             1.14  “OmniRat ” means a rat that has been genetically modified by OMT to have inactivated endogenous immunoglobulin loci and transgenic immunoglobulin loci.             1.15  “Person ” means any person or entity.             1.16  “Product ”  means  a  pharmaceutical  product  developed  through the  use (directly or indirectly) of Antibodies.  Notwithstanding anything to the contrary, use of the term “Product” hereunder does not include Animal Improvements.             1.17  “Outlicensing   Agreements ”  means  China  Outlicensing  Agreements  and Ex-China Outlicensing Agreements.             1.18  “Outlicensee ” means China Outlicensees and Ex-China Outlicensees.             1.19  “Royalty  Term ” means, on a Product-by-Product and country-by-country basis, the period beginning on the First Commercial Sale of a Product in such country and ending                                      2 US-DOCS\ 102768708.1 102810577.2 

 

upon the expiration of the last patent that is subject to Section 4.2 covering the manufacture, use, sale, offer for sale or import of such Product in such country.             1.20  “Territory ”  means,  with  respect  to  Licensee,  China,  and  with respect  to OMT, anywhere outside of China.        2.   Termination & Replacement .        The  previous  agreements  between  the  parties,  i.e.  the  Development  and Commercialization  Agreement  by  and  between  the  parties  dated  August  20,  2012,  and  the Strategic Commercial Partner Agreement by and between the parties dated February 22, 2013, are hereby terminated and replaced by the terms and conditions of this Agreement.        3.   Delivery and Maintenance of Animals .             3.1   Delivery   of  Animals .  OMT shall use commercially reasonable efforts to deliver to Licensee or authorize OMT’s authorized animal breeder (“Breeder ”), currently Charles River  Laboratories,  Inc.  (“Charles   River ”)  to  deliver  to  Licensee  Animals  in  accordance  with Licensee’s  written  purchase  order(s)  therefor  (each  an  “Order ”)  designating  the  number  and shipment terms for such Animals.  If OMT authorizes a Breeder to deliver Animals to Licensee, such  Orders  shall  be  issued  pursuant  to  an  agreement  between  Licensee  and  the  applicable Breeder (a “Delivery  Agreement ”).  All Delivery Agreements (and any amendments thereto) are subject  to  OMT’s  prior  written  approval,  such approval not to be unreasonably withheld (and OMT reserves the right to approve any Orders issued pursuant thereto); no Delivery Agreement may contain terms regarding the use, housing, and maintenance of Animals that conflict with the terms herein (including without limitation any restrictions on housing facilities).  All Orders to be fulfilled  by  OMT  are  subject  to  OMT’s  prior  written  approval,  such  approval  not  to  be unreasonably withheld, and such Orders shall be subject to Licensee’s acceptance of Breeder’s standard terms, conditions, disclaimers and limitations and acknowledgement that OMT shall not be liable for any Animals delivered to Licensee by the applicable Breeder (provided the foregoing shall not excuse OMT from any of its obligations set forth in this Agreement).  Licensee shall not obtain Animals from any source other than OMT or OMT’s then-authorized Breeder.  Licensee may  not  request,  and  neither  OMT  nor  a  Breeder  will  fulfill,  Orders  for  delivery  directly  to Approved Subcontractors or Approved Affiliates.  For clarity, any Animal received hereunder is licensed, not sold.  If Animals are received pursuant to a Delivery Agreement, Licensee shall pay to the applicable Breeder the amount(s) specified from time to time by such Breeder pursuant to the terms of such Delivery Agreement; if Animals are received pursuant to an Order fulfilled by OMT, Licensee shall pay to OMT the amount specified from time to time for each such Animal, payable  within  thirty  (30)  days  of  Licensee’s  receipt  of  an  invoice  therefor.   OMT  will  use commercially reasonable efforts to ensure that Licensee is provided enough Animals to support its licensing rights under Section 4 of this Agreement.             3.2   Maintenance;   Annual   Report .   Licensee  shall  (and  shall cause Approved Affiliates  and  Approved  Subcontractors to) maintain the Animals in a secure environment and comply with all OMT guidelines regarding the housing and maintenance of Animals, the current version of which are set forth in Exhibit A.  Licensee shall not (and shall not allow any Approved Affiliate or any Approved Subcontractor to) house or maintain the Animals in any facility that                                     3 US-DOCS\ 102768708.1 102810577.2 

 

has not been expressly approved in writing in advance by OMT.  Without limiting the foregoing, Licensee shall permit OMT, upon five (5) business days’ notice, during normal business hours, to access  Licensee’s  facilities  for  the  purpose  of  examining  and  verifying  Licensee’s  compliance with the provisions of this Agreement with respect to the use and maintenance of the Animals; Licensee shall require Approved Affiliates and its and their respective Approved Subcontractors to  afford  OMT  the  same  rights  granted  by  Licensee  in  the  previous  sentence.   Additionally, within  thirty  (30)  days  after  each  anniversary  of  the  Effective  Date,  Licensee  shall  deliver  to OMT  a  written  report,  in  a  form  reasonably  acceptable  to  OMT,  detailing  the  progress  of Licensee’s  (and  its  Approved  Affiliates  and  its  and  their  respective Approved Subcontractors’ and, with respect to Antibodies only, its China Oulicensees’) research and development activities related  to  the  Animals  and  Antibodies,  during  the  previous  twelve  (12)  month  period.   Such report shall, at a minimum: (i) describe the manner in which Licensee (and its Approved Affiliates and its and their respective Approved Subcontractors) are keeping and maintaining the Animals, including without limitation identification of each facility in which the Animals are kept and the number  of  Animals  and  then  in  existence  and  (ii)  identify  any  Antibodies  generated  by  or  on behalf of Licensee during such period, and the amino or nucleic acid sequences of the same (all of the foregoing, an “Annual Report ”).             3.3   Subcontracting;   Approved   Affiliates .   Licensee  may  use  Approved Affiliates in the housing and maintenance of the Animals and the generation of Antibodies (the “Outsourced Services”), or Licensee or such Approved Affiliates may use subcontractors in the Outsourced Services, provided each subcontractor is expressly approved in advance in writing by OMT,  including  approval  of  the  scope  of  such  subcontractor’s  work  (each,  an  “Approved Subcontractor ”), and provided further that Licensee (a) is responsible and liable for all actions and  omissions  of  Approved  Subcontractors  and  Approved  Affiliates  as  if  each  were  Licensee hereunder  and  (b)  Licensee  binds  each  Approved  Subcontractor  and  Approved  Affiliate  in writing  to  terms  no  less  protective  of  OMT  or  the  Animals  (including  without  limitation  any intellectual  property  right  of  OMT  and  any  restrictions  on  housing,  use,  and  maintenance  of Animals)  than  those  set  forth  herein  (an  “Approved   Subcontractor   Agreement ”  or  “Approved Affiliate  Agreement ,” as applicable).  Licensee shall not permit any (1) Approved Subcontractor to take any action in connection with the Animals that is outside the scope of work approved by OMT under this Agreement or (2) Approved Affiliate from taking any action in connection with the  Animals  that  is  outside  the  scope  of  the  Outsourced  Services.   OMT  agrees  that  each subcontractor  listed  in  Exhibit  B  is  an  Approved  Subcontractor  of  Licensee,  but  only  for  the work specified in Exhibit B for such subcontractor, and provided such subcontractor only uses and  houses  and  maintains  the  Animals  at  the  facility(ies)  listed  in  Exhibit  B  for  such subcontractor.   OMT  may  prohibit  any  Approved  Subcontractor  from  doing  further  work  for Licensee (even if such Approved Subcontractor is then-currently performing work for Licensee) upon written notice to Licensee, if, in OMT’s reasonable belief, such Approved Subcontractor is in breach of (or is incapable of complying with) any of the restrictions set forth herein.        4.   Intellectual Property Rights .             4.1   Ownership of and License to Animals .                   (a)  Subject  to  compliance  with  all  of  the  terms  and conditions  and during  the  term  of  this  Agreement,  OMT  hereby  grants  to  Licensee  a  non-exclusive,                                     4 US-DOCS\ 102768708.1 102810577.2 

 

non-transferable (except pursuant to Section 11.2), non-sublicensable license to use the Animals, solely at the facilities that are listed in Exhibit B, and then only for the purpose of researching, developing, and making Antibodies.  Licensee shall not (and shall not permit others to) reverse engineer,  improve,  enhance,  or  modify  the  Animals, subject  them  to  testing  procedures  or protocols that may reveal information regarding genetic traits or other attributes related to the development  of  the  Animals,  permit  third  parties  access  to  the  Animals  (except for Approved Affiliates  and  its  and  their  respective  Approved  Subcontractors  during  the  Term,  pursuant  to Section  3.3),  or  breed  the  Animals  or  attempt  to  reverse  the  sterility  of  the  Animals  in  any manner.             4.2   Ownership of Antibodies and Products; Patenting .                   (a)  OMT  and  Licensee  jointly  own  the  Antibodies  and any  Products (including  Products  developed  by  a  China  Outlicensee  or  Ex-China  Outlicensee)  and  all intellectual property rights therein, including any patent rights (collectively, “Joint  Rights ”), and each  hereby  makes  (and  will  cause  each  of  their  respective  Oulicensees  to  make,  and,  with respect to Licensee, will cause Approved Affiliates and its and their Approved Subcontractors to make) all assignments necessary to achieve the foregoing.  Subject to compliance with all terms and  conditions  of  this  Agreement,  OMT  and  Licensee hereby grant the other a non-exclusive, irrevocable,  perpetual,  worldwide,  royalty-free,  non-transferable  (except  in  accordance  with Section 11.2) right and license in and to the Joint Rights, in each case to the extent necessary to achieve such joint ownership and allow each party to exercise its rights hereunder.  Each of OMT and Licensee shall, at the request of the other, execute all documents and do all other acts and things  as  may  be  reasonably  required  in  order  to  vest  fully  and  effectively  in  both  OMT  and Licensee, jointly, all rights in and to such Joint Rights.                   (b)  Licensee  shall  have  the  right  to  file,  prosecute,  and  maintain  all patent rights within China with respect to the Joint Rights (“China  Patent  Rights ”), provided that Licensee may do the foregoing in a China Outlicensee’s name, provided such China Outlicensee is at all times in compliance with the obligations of its China Outlicensing Agreement.  Licensee shall use (or, if applicable pursuant to the previous sentence, cause it’s China Outlicensee to use) commercially  reasonable  efforts  to  so  file,  prosecute,  and maintain such China Patent Rights. Licensee  shall,  at  least  fourteen  (14)  days  prior  to  submission  or within fourteen (14) days of receipt (as applicable), forward to OMT copies of any significant office actions, communications, and  correspondence  relating  to  the  China  Patent  Rights  (including  any  correspondence  of applicable China Outlicensees).  OMT shall have the right to comment on and to discuss such prosecution and maintenance activities with Licensee, and Licensee shall consider (and cause the applicable China Outlicensees to consider) OMT’s comments in good faith.                   (c)  OMT shall have the right to file, prosecute, and maintain all patent rights outside of China (including in the China Plus Territory) with respect to the Joint Rights (“Ex-China   Patent   Rights ”),  and  OMT  shall  use  commercially  reasonable  efforts  to  so  file, prosecute,  and  maintain  such  Ex-China Patent Rights.  OMT shall, at least fourteen (14) days prior to submission or within fourteen (14) days of receipt (as applicable), forward to Licensee copies of any significant office actions, communications, and correspondence relating to the Ex- China  Patent  Rights.   Licensee  shall  have  the  right  to  comment  on  and  to  discuss  such                                     5 US-DOCS\ 102768708.1 102810577.2 

 

prosecution and maintenance activities with OMT, and OMT shall consider Licensee’s comments in good faith.             4.3   Outlicensing .                   (a)  Licensee  may,  in  China,  generate  Antibodies  using  antigens  it selects or provide Antibody generation services to a China Outlicensee using antigens selected by such  China  Outlicensee.   Licensee (i) is responsible and liable for all actions and omissions of China Outlicensees in connection with such Antibodies and (ii) must bind each China Outlicensee to a written agreement that contains terms no less protective of OMT (including its intellectual property rights in the Animals, Antibodies, and Products) than those set forth herein (a “China Outlicensing Agreement ”).  Licensee may provide any such resulting Antibodies to the applicable China Outlicensee that is bound by a China Outlicensing Agreement.  Additionally, Licensee may provide Existing Antibodies to a China Outlicensee that is bound by a written addendum to such China Outlicensing Agreement for use, development, and marketing in the China Plus Territory (a “China  Plus  Addendum ,” which shall be deemed a part of the applicable China Outlicensing Agreement).   Except  as  otherwise  expressly  set  forth  herein,  Licensee  may  not  outlicense  or otherwise  provide  rights  in  any  Antibodies  to  any  third  party  except  for  China  Outlicensees. Each China Outlicensing Agreement will prohibit the licensing, distribution or other transfer of Antibodies or Products outside of China (and, as applicable with respect to Existing Antibodies, the China Plus Territory) by or on behalf of the applicable China Outlicensee, and shall not grant any exclusive license of any Antibody (except solely for use within China (and, as applicable with respect to Existing Antibodies, the China Plus Territory), where “use” includes development of and distribution of Products) without the prior written consent of OMT.                   (b)  OMT may license, distribute or otherwise transfer any Antibodies generated by or on behalf of Licensee (including any generated for China Outlicensees) outside of  China  (excluding  China  Plus  Territory  with  respect  to  the  Existing  Antibodies),  each  such sublicensee of the Antibodies, an “Ex-China  Outlicensee, ” provided the applicable outlicensing agreement  is  approved  in  writing  by  Licensee  (an  “Ex-China   Outlicensing   Agreement ”),  such approval not to be unreasonably withheld.  For clarification purposes, unless otherwise agreed by the parties, OMT agrees that Ex-China Outlicensing Agreements that it enters into will prohibit the Ex-China Outlicensee from selling, manufacturing or exporting into China (and, as applicable with respect to Existing Antibodies, the China Plus Territory) any Product.        As  an  exception  to  the  immediately  preceding  paragraph,  Licensee  may  license  the Existing Antibody to third parties located in and taking delivery (and for use) of such Existing Antibody  in  the  US,  the  EU,  and  Japan,  and  may  license  New  Antibodies  in  the  China  Plus Territory  (each,  an  “Extra-Territory   Outlicensee ”),  provided  the  applicable  outlicensing agreement  is  approved  in  advance  in  writing  by  OMT (an  “Extra-Territory   Outlicensing Agreement ”), such approval not to be unreasonably withheld, and provided further (i) Licensee is responsible and liable for all actions and omissions of Extra-Territory Outlicensees in connection with such Antibodies and (ii) the Extra-Territory Outlicensing Agreement is in writing and must contain terms no less protective of OMT (including its intellectual property rights in the Animals, Antibodies, and Products) than those set forth herein.                                      6 US-DOCS\ 102768708.1 102810577.2 

 

                 (c)  Except as otherwise described in Sections 4.3(a) and (b), if a China Outlicensee provides a written request to Licensee to license an Antibody for a territory outside of China, and OMT has not yet licensed such Antibody outside of China, the parties will discuss such request in good faith, including the applicable financial licensing terms that Licensee would have to pay to expand the China Outlicensee’s license to such market(s).  OMT reserves the right to approve or deny such request in its sole discretion, provided that the parties agree that for a global license (excluding China) to a specific Antibody the fees associated with such Antibody will not exceed (i)  an  aggregated  $10,000,000  in  milestone  payments,  and  (ii)  a  five  percent (5%)   royalty   on   Net   Sales [***] .   For  clarification  purpose,  in  this  case  in  the  preceding sentence, such China Outlicensee will sign the outlicensing agreement with OMT directly solely for  all  Ex-China  licenses  but  Licensee  will  maintain  the  license  with  the  Outlicensee  for  the license rights to China, and, if applicable, US, EU, Japan and China Plus Territory with respect to the Existing Antibodies.                   (d)  Furthermore,  Licensee  has  the  right  to  market  and  attempt  to outlicense an Antibody outside of China in parallel.  If a potential client is located by Licensee, Licensee  will  introduce  in  writing  such  opportunities  to  OMT  and  provided  OMT  has  not otherwise agreed to license such Antibody, OMT will use reasonable efforts (for a commercially reasonable  period  of  time  not  to  exceed  3  months  from  the  date  of  such  introduction)  to negotiate and enter into an outlicensing agreement with such client directly.  During this process, OMT  will  provide  the  necessary  financial  terms  to  Licensee  in  order  to  support  Licensee’s attempts to license the Antibody outside of China.                   (e)  The two parties shall make commercially reasonable efforts to and in good faith market and out-license the Antibody.             4.4   As between the parties, and without limiting any other available remedy, OMT owns (i) the Animals and (ii) any modification, improvement, enhancement, or progeny of the Animals created in violation of Section 3.14.1(a) above or antibodies created in violation of the same Section, and (iii) any Antibodies or Products distributed outside of China in violation of Section  4.3(a)  above  ((ii)  and  (iii)  collectively, “Animal   Improvements ”),  and  all  intellectual property  rights  in  any  of  the  foregoing;  Licensee  hereby  makes  (and  will  cause  its  Approved Affiliates  and  its  and  their  Approved  Subcontractors,  and  any  China  and/or  Extra-Territory Outlicensee,  as  applicable,  to  make)  all  assignments  necessary  to  accomplish  the  foregoing ownership with respect to any Animal Improvements and progeny.  Licensee acknowledges and agrees  that  the  Animals,  together  with  any  related biological  material  or  substance  that  is replicated, synthesized or in any way derived from the Animals (including progeny), except for Antibodies,  include  and  constitute  valuable  trade secrets of OMT, and OMT has used diligent efforts to maintain such items as its trade secrets and Confidential Information.   [***]  Certain information on this page has been omitted and filed separately with the Commission.  Confidential treatment has been requested with respect to the omitted portions.                                     7 US-DOCS\ 102768708.1 102810577.2 

 

           4.5   Enforcement .                   (a)  Each  of  OMT  and  Licensee  shall  notify  the  other promptly  in writing  when  each  learns  of  or  reasonably  suspects infringement  of  any  Joint  Right  by a third party  (an  “Infringement ”).   With  respect  to  any  Infringement  occurring  or suspected  to  have occurred (i) in China, Licensee, or its China Outlicensee, shall have the first right to enforce any Joint Right and (ii) outside of China, OMT shall have the first right to enforce any Joint Right, and in each case, each party shall at all times keep the other informed as to the status thereof. Each party may, at its own expense, institute suit against any such infringer or alleged infringer within its respective Territory and control, defend and settle such suit in a manner consistent with the  terms  and  provisions  hereof,  and  recover  any  damages,  awards  or  settlements  resulting therefrom, subject to Section 4.5(c).                   (b)  If a party does not bring suit to enforce the applicable Joint Rights with  respect  to  an Infringement within one-hundred and eighty (180) days of becoming aware that an Infringement exists, then the other party may, in its sole judgment and at its own expense, take  steps  to  enforce  any  such  rights,  including  instituting  suit  against  any  such  infringer  or alleged infringer, and control, defend and settle such suit in a manner consistent with the terms and  provisions  hereof,  and  recover  any  damages,  awards  or  settlements  resulting  therefrom, subject  to  Section  4.5(c)  (provided  the  foregoing  shall  not  limit  either  party’s  right  to  pursue equitable relief at any time in any court of competent jurisdiction in order to protect its rights in the Joint Rights).                   (c)  With  respect  to  any  claim  instituted  by  a  party pursuant  to Section 4.5(a)  or  in  4.5(b),  the  other  party  (the  “Non-Enforcing   Party ”)  shall  reasonably cooperate  in  any  such  litigation  at  the  other  party’s  (the  “Enforcing   Party ”)  expense;  where necessary, the Enforcing Party shall join in, or be named as a necessary party to, such litigation. Neither party shall enter into any settlement of any claim described in Section 4.5(a) or in 4.5(b) that admits to the invalidity or unenforceability of the Joint Rights, incurs any financial liability on the part of the other party, requires an admission of liability, wrongdoing or fault on the part of the  other  party,  each  without  the  other  party’s  prior  written  consent,  such  consent  not  to  be unreasonably  withheld.   The  Enforcing  Party  shall  keep  the  Non-Enforcing  Party  reasonably informed of the progress of any such enforcement action, and the Non-Enforcing Party shall have the  individual  right  to  participate  with  counsel  of  its  own  choice  at  its  own  expense.   The selection of such counsel will be subject to the Enforcing Party’s approval (which shall not be unreasonably  withheld).   The  costs  and  expenses  of the  Enforcing Party shall be borne by the Enforcing  Party,  and  any  damages,  settlements  or  other  monetary  awards  recovered  shall  be shared as follows: (i)  the  amount  of  such  recovery  actually  received  by  the  Enforcing  Party shall  first  be  equally  applied  to  the  out-of-pocket  costs  of  both  parties  in  connection  with such  action;  and  then  (ii)  the  remainder  of  the  recovery,  if  any,  shall  be  shared  as  follows: the Enforcing Party shall retain sixty-six percent (66%) of such recovery, and shall pay the remaining thirty-four percent (34%) to the Non-Enforcing Party .[***] .  [***]  Certain information on this page has been omitted and filed separately with the Commission.  Confidential treatment has been requested with respect to the omitted portions.                                     8 US-DOCS\ 102768708.1 102810577.2 

 

           4.6   Defense  of  Third  Party  Claims .  If either (a) any Antibody or any Product becomes the subject of a third party’s claim or assertion of infringement of a patent relating to the manufacture, use, sale, offer for sale or importation of such Antibody or Product, or (b) a declaratory  judgment  action  is  brought  naming  either  OMT  or  Licensee  as  a  defendant  and alleging invalidity or unenforceability of any of the Joint Rights, the party first having notice of the claim or assertion shall promptly notify the other party, and they shall both promptly confer to  consider  the  claim  or  assertion  and  the  appropriate  course  of  action.   Unless  OMT  and Licensee otherwise agree in writing, each shall have the right to defend itself against a suit that names it as a defendant.  Neither OMT nor Licensee shall enter into any settlement of any claim described in this Section 4.6 that admits to the invalidity or unenforceability of the Joint Rights, incurs  any  financial  liability  on  the  part  of  the  other,  or  requires  an  admission  of  liability, wrongdoing or fault on the part of the other, without the other’s prior written consent, in each case,  such  consent  not  to  be  unreasonably  withheld.   In  any  event,  OMT  and  Licensee  shall reasonably  assist  the  other  and  cooperate  in  any  such  litigation  at  the  other’s  request  and expense.             4.7   Reservation   of   Rights .   Except  for  the  rights  specifically  and unambiguously  granted  in  this  Agreement,  no  right  or  license  is  granted  or  implied.   Nothing herein shall be construed to limit or restrict, in any manner, OMT’s ability to use and exploit, or allow  any  Person  to  use  or  exploit,  the  Animals  and/or  any  materials  derived  or  developed therefrom (including antibodies or pharmaceutical products) outside the scope of this Agreement. Without limiting the foregoing and notwithstanding anything to the contrary herein, each party understands and agrees that the other party may perform (or may have performed) immunization services for third parties (and/or may allow third parties to perform immunization services) with respect  to  targets  provided  or  designated  by  third parties,  which  may  produce  (or  may  have produced) similar or identical antibodies to the Antibodies; the foregoing shall not be deemed a breach of this Agreement.        5.   Financial Terms .             5.1   Outlicensing Fees .  (a) For each antigen that Licensee uses to generate and license  Antibodies  to  an  China  Outlicensee,  or  generate  Antibodies  on  behalf  of  an  China Outlicensee,  and  for  each  Existing  Antibody  that  Licensee  properly  licenses  to  a  China Outlicensee,  Licensee  shall  pay  to  OMT one   million   dollars   ($1,000,000) [***] ,  within  thirty (30) days after the Antibody is delivered to and accepted by the applicable China Outlicenseee.                   (b)  For each Antibody to be licensed to Ex-China Outlicensee, OMT will pay to Licensee fort y percent (40%) of any upfront, milestone, royalties or other license   [***]  Certain information on this page has been omitted and filed separately with the Commission.  Confidential treatment has been requested with respect to the omitted portions.                                     9 US-DOCS\ 102768708.1 102810577.2 

 

fees   received   by   OMT [***]   (collectively,  “OMT   License   Revenue ”),  within  thirty  (30)  days after each quarter, under an Ex-China Outlicensing Agreement with such Ex-China Outlicensee.                   (c)  For each Extra-Territory Outlicense as provided in Section 4.3(b), Licensee will pay to OMT sixty  percent  (60%)  of  any  upfront,  milestone,  royalties  or  other license   fees   received   by   License   with   respect   to   the   Antibodies   and   product   covered   by such Extra-Territory Outlicense [***]  (collectively, “Extra-Territory License Revenue ”) within thirty (30) days after each quarter, under an Extra- Territory Outlicensing Agreement.             5.2   Royalty on Net Sales .                   (a)  Licensee shall pay to OMT a royalty of three  percent  (3%) [***] of all Net Sales made within China and, only with respect to Products derived from the Existing Antibodies, the China Plus Territory during the applicable Royalty Term for each Product within thirty  (30)  days  after  Licensee  receives  royalty  payments from its China Outlicensees.  Within sixty  (60)  days  after  the  end  of  each  calendar  quarter  (or,  with  respect  to  a  specific  China Outlicensee,  the  date  Licensee  actually  receives  the  quarterly  report  from  such  China Outlicensee), Licensee shall deliver to OMT, together with the applicable royalty payment due, a detailed written report (in a form reasonably acceptable to OMT) on a country-by-country basis, of Net Sales for such Product for such calendar quarter (if any), including identification of each Selling  Party  and  an  itemization  of  all  applicable Permitted  Deductions  taken.   To  clarify, Licensee  shall  make  royalty  payment  to  OMT  with  respect  to  a  Product  licensed  to  a  China Outlicensee only after Licensee actually receive royalty payments from such China Outlicensee. For  clarity,  with  respect  to  disposition  of  a  Product  in  the  China  Plus  Territory,  the  royalty obligation in this Section 5.2(a) shall only apply to Products derived from Existing Antibodies; and with regard to the license of other Products in such China Plus Territory, only the financial terms described in Section 5.1(c) above shall apply.             5.3   Method  of  Payment .  All payments due to a party under this Agreement shall be paid in United States Dollars by wire transfer to a bank in the U.S. designated in writing by such party.  All references to “dollars” or “$” herein shall refer to United States Dollars.  All amounts paid hereunder are non-refundable and non-creditable.  Any amount owed by a party to the other party under this Agreement that is not paid within the applicable time period set forth herein shall accrue interest at the lower of (a) one percent (1.0%) per month, or (b) the highest rate permitted under applicable law.             5.4   Records .                   (a)  Maintenance .  Each party shall keep complete and accurate books and  records  pertaining  to  its  respective  Outlicensing  Agreements  and  amounts  collected  in connection therewith for a period of at least three (3) years after the relevant payment is owed pursuant  to  this  Agreement.   The  record-keeping  obligations  and  inspection  rights  in  this Section 5.4  shall  supplement,  and  not  replace  or  supersede,  any  similar  rights  or  obligations hereunder.                   (b)  Records   Examination .   Each  party  (the  “Audited   Party ”)  shall permit its books and records relating to this Agreement to be examined by an independent third                                     10 US-DOCS\ 102768708.1 102810577.2 

 

party  auditor  who  is  appointed  by  the  other  party  (the  “Auditing   Party ”)  and  reasonably acceptable to the Audited Party, provided such auditor shall be subject to written obligations of confidentiality no less protective than the confidentiality and non-use provisions set forth herein. Such  inspection  may  only  be  conducted  upon  reasonable  notice  (no  less than ten (10) days in advance thereof), during normal business hours.  Such examination is to be made at the expense of  the  Auditing  Party,  except  in  the  event  that  the  results  of  the  examination  reveal  an underpayment  by  the  Audited  Party  of  five  percent  (5%)  or  more  over  the  period  being examined, in which case the reasonable, out-of-pocket costs and expenses of such examination shall be paid (or reimbursed to the Auditing Party, if such amounts have already been paid by the Auditing  Party)  by  the  Audited  Party.   If  the  examination  establishes  that  the  Audited  Party underpaid  any  amounts  due  hereunder,  the  Audited  Party  shall  pay  the  Audited  Party  such deficiency  within  ten  (10)  days  after  the  Audited  Party’s  receipt  of  a  written  report  thereof, including interest thereon at the rate set forth in Section 5.3, and, if applicable pursuant to the previous  sentence,  the  costs  and  expenses  of  the  examination.   The  results  of  any  such examination shall be the Audited Party’s Confidential Information.             5.5   Taxes .  Any amounts payable by one party to the other party hereunder are exclusive  of  any  and  all  applicable  sales,  use,  VAT,  GST,  excise,  property,  withholding,  and other taxes, levies, duties or fees (collectively, “Taxes ”).  Each party shall be entitled to deduct the  amount  of  any  withholding  taxes  payable  or  required  to  be  withheld  by  it,  its  affiliates, licensees,  or  sublicensees  (as  applicable)  to  the  extent  such  party,  its  affiliates,  licensees,  or sublicensees (as applicable) actually pay such withheld amounts to the appropriate governmental authority on behalf of the other party.  Each party shall use commercially reasonable efforts to minimize any such taxes, levies or charges required to be withheld on behalf of the other party. Each party shall promptly deliver to the other party proof of payment of all such taxes, levies and other  charges,  together  with  copies  of  all  communications  from  or  with  such  governmental authority with respect thereto, and shall reasonably cooperate with the other party in seeking any related tax credits that may be available to the other party with respect thereto.             5.6   Currency Exchange .  All amounts accruing in a currency other than United States dollars will be expressed in such currency and converted to United States dollars using an exchange rate equal to the conversion rate existing in the United States (as reported in the Wall Street Journal ) on the last working day of the applicable calendar quarter for which payment is being made.  The conversion calculations will be provided in any statement reporting converted amounts to the other party.        6.   Confidentiality .             6.1   Definition .   “Confidential   Information ”  means  proprietary  information, materials, and data of a financial, commercial or technical nature that the disclosing party (the “Disclosing  Party ”) has supplied or otherwise made available to the other party hereunder (the “Receiving  Party ”).  Notwithstanding anything to the contrary, (a) any progeny and the Animal Improvements are the Confidential Information of OMT, deemed disclosed by OMT, and (b) the Antibodies and Products (and information regarding the composition and/or sequences thereof) are the Confidential Information of both parties, deemed disclosed by both parties; and in each case, to which the exceptions in Section 5.3(b) and (d) do not apply.                                     11 US-DOCS\ 102768708.1 102810577.2 

 

           6.2   Obligations .   The  Receiving  Party  shall  protect  all  Confidential Information against unauthorized disclosure to third parties with the same degree of care as the Receiving  Party  uses  for  its  own  similar  information,  but  in  no  event  less  than  a  reasonable degree  of  care.   The  Receiving  Party  shall  not  use the  Confidential  Information  except  as necessary to exercise its rights and fulfill its obligations under this Agreement.  The Receiving Party  may  disclose  the  Confidential  Information  only  to  its  respective  directors,  officers, employees,  subcontractors,  licensees  (including  potential  licensees),  consultants,  attorneys, accountants, and banks (collectively, “Recipients ”), who have a need-to-know such information in order for Receiving Party to exercise its rights or fulfill its obligations under this Agreement provided that the Receiving Party shall hold all Recipients to written obligations of confidentiality with terms and conditions at least as protective of the Confidential Information as those set forth in this Agreement.  Receiving Party shall be liable for any breach of such written obligations or this Section 5 by its Recipients.  For clarity, each party may provide a copy of this Agreement with  the  financial  terms  redacted  to  licensees  (including  potential  licensee)  if  such  licensee requires in conducting due diligence for evaluating the related license purpose.  For avoidance of doubt,  Licensee  shall  not  disclose  or  make  available  Animals  or  any  information  or  materials regarding  their  composition  or  engineering  to  any  third  party  or  Recipient  (except  to  (a)  its Approved Affiliates, to the sole extent necessary for such Approved Affiliate to exercise its rights pursuant to a sublicense granted to such Affiliate pursuant to Section 4.1, and (b) an Approved Subcontractor, and only then to the sole extent necessary for such Approved Subcontractor to fulfill its obligations pursuant to the applicable Approved Subcontractor Agreement).  For clarity, the terms of this Section 6 shall serve to supplement, and not replace, amend, or abate any other restrictions on use and exploitation of the Animals as set forth herein.  The terms and existence of this  Agreement  are  Confidential  Information  of  both  parties,  but  each  party  may  disclose  the terms and existence of this Agreement to its potential investors and acquirers on a confidential basis in connection with a potential investment or acquisition (as applicable).             6.3   Exceptions .   The  obligations  under  this  Section  6 shall not apply to any information to the extent the Receiving Party can demonstrate by competent evidence that such information:                   (a)  is  (at  the  time  of  disclosure)  or  becomes  (after  the  time  of disclosure) generally known to the public through no breach of this Agreement by the Receiving Party or any Recipients to whom it disclosed such information;                   (b)  was  rightfully  known  by,  or  was  otherwise  in  the  rightful possession of, the Receiving Party prior to the time of disclosure by the Disclosing Party;                   (c)  is disclosed to the Receiving Party on a non-confidential basis by a third party who is entitled to disclose it without breaching any confidentiality obligation (directly or indirectly) to the Disclosing Party; or                   (d)  is independently developed by or on behalf of the Receiving Party, as evidenced by its written records, without use of, reliance upon or access to the Confidential Information.                                      12 US-DOCS\ 102768708.1 102810577.2 

 

           6.4   Disclosure   Pursuant   to   Law   or   Order .   Receiving  Party  may  disclose Confidential  Information  that  it  is required to disclose under applicable laws or a court order, provided that the Receiving Party: (a) provides the Disclosing Party with prompt notice of such disclosure  requirement  if  legally  permitted,  (b)  affords  the  Disclosing  Party  an  opportunity  to oppose  or  limit,  or  secure  confidential  treatment  for  such  required  disclosure  and  (c)  if  the Disclosing  Party  is  unsuccessful  in  its  efforts  pursuant  to  subsection  (b),  discloses  only  that portion of the Confidential Information that the Receiving Party is legally required to disclose.        7.   Representations and Warranties; Disclaimer .             7.1   Representations  and  Warranties  of  Each  Party .  Each party represents and warrants to the other party that:                   (a)  it  is  a  corporation  duly  organized,  validly  existing,  and  in  good standing under the laws of its jurisdiction of formation;                   (b)  it has full corporate power and authority to execute, deliver, and perform under this Agreement, and has taken all corporate action required by applicable law and its organizational documents to authorize the execution and delivery of this Agreement and the consummation of the transactions contemplated by this Agreement;                   (c)  this  Agreement  constitutes  a  valid  and  binding  agreement enforceable against it in accordance with its terms;                   (d)  all  consents,  approvals  and  authorizations  from all  governmental authorities or other third parties required to be obtained by such party in connection with this Agreement have been obtained;                   (e)  the  execution  and  delivery  of  this  Agreement  and  all  other instruments  and  documents  required  to  be  executed  pursuant  to  this  Agreement,  and  the consummation of the transactions contemplated hereby, do not and shall not: (i) conflict with or result in a breach of any provision of its organizational documents, (ii) result in a breach of any agreement to which it is a party that would impair the performance of its obligations hereunder; or (iii) violate any applicable law; and                   (f)  it  shall  comply  with  all  applicable  laws  in  connection  with  this Agreement.             7.2   Representations  and  Warranties  of  OMT .  OMT represents and warrants to Licensee that to OMT’s knowledge as of the Effective Date, there are no existing third party rights that would prevent Licensee from making use of the Animals as contemplated herein.             7.3   Disclaimer .  EXCEPT AS EXPRESSLY STATED IN THIS SECTION 7, (A)  NEITHER  OMT  NOR  ITS  LICENSORS  MAKES  ANY  REPRESENTATIONS  OR EXTEND  ANY  WARRANTIES  OF  ANY  KIND,  EITHER  EXPRESS  OR  IMPLIED, STATUTORY  OR  OTHERWISE,  AND  THE  ANIMALS  AND  ANYTHING  ELSE PROVIDED  BY  OR  ON  BEHALF  OF  OMT  PURSUANT  TO  THIS  AGREEMENT  ARE                                     13 US-DOCS\ 102768708.1 102810577.2 

 

PROVIDED  “AS  IS,”  (B)  OMT,  FOR  ITSELF  AND  ITS  LICENSORS,  DISCLAIMS  ANY AND  ALL  WARRANTIES  OF  ANY  KIND  OR  NATURE,  WHETHER  EXPRESS  OR IMPLIED,  RELATING  TO  THE  SUBJECT  MATTER  HEREUNDER, INCLUDING  ANY WARRANTIES  OF  MERCHANTABILITY,  TITLE,  FITNESS  FOR  A  PARTICULAR PURPOSE, AND NON- INFRINGEMENT.        8.   Indemnification .             8.1   Indemnification  of  Licensee .  Subject to Section 8.3 below, OMT agrees to  indemnify,  hold  harmless  and  defend  Licensee,  its  affiliates,  directors,  officers,  licensors, employees  and  agents  (each  a  “Licensee   Indemnitee ”)  from  and  against  any  and  all  losses, damages,  liabilities,  costs  and  expenses  (including  reasonable  attorneys’  fees  and  expenses) (collectively, “Losses ”) payable to unaffiliated third parties, incurred by Licensee Indemnitees in connection with any and all suits, investigations, claims or demands of a third party (collectively, “Third Party Claims ”) to the extent arising from (a) any alleged infringement or misappropriation of such third party’s intellectual property rights arising from or occurring as a result of the use by Licensee  or  any  Outlicensee  of  Animals  to  generate Antibodies  or  (b)  the  production,  use, marketing,  or  sale  of  Antibodies  or  Products  by  an Ex-China  Outlicensee  (or  its  licensees). Notwithstanding  anything  to  the  contrary  herein,  in  no  event  shall  OMT  be  obligated  to indemnify Licensee Indemnitees for any Third Party Claims to the extent such Third Party Claims (i)  would  be  subject  to  indemnification  by  Licensee  pursuant  to  Section  8.2,  or  (ii)  arise  in connection with any modifications of the Animals, or any combination of the Animals with any other material or organism, in each case not made by OMT, or (iii) arising in connection with any use of the Animals that is not strictly in accordance with this Agreement.             8.2   Indemnification  of  OMT .  Subject to Section 8.3 below, Licensee agrees to  indemnify,  hold  harmless  and  defend  OMT,  its  affiliates,  directors,  officers,  licensors, employees  and  agents  (each  an  “OMT   Indemnitee ”)  from  and  against  all  Losses  incurred  by OMT Indemnitees in connection with any and all Third Party Claims to the extent arising from (a) the production, use, marketing, or sale of Antibodies or Products by Licensee or any China Outlicensee  or  Extra-Territory  Licensee  (or  either of  their  licensees),  and  (b)  the  use  of  any Animals that is not strictly in accordance with this Agreement.             8.3   Indemnification   Procedure .   All  indemnification  claims  provided  for  in Sections  7.1  and  7.2  shall  be  made  solely  by  such  party  to  this  Agreement  seeking indemnification  hereunder  (the  “Indemnified   Party ”).   The  Indemnified  Party  shall  promptly notify  the  indemnifying  party  (the  “Indemnifying   Party ”)  of  any  Third  Party  Claim.   The Indemnified  Party  shall  cooperate  with  the  Indemnifying  Party,  at  the  Indemnifying  Party’s expense, in connection with the defense and settlement of the Third Party Claim, and permit the Indemnifying Party to solely control the defense and settlement of the Third Party Claim.        9.   Term and Termination .             9.1   Term .  The term of this Agreement shall commence on the Effective Date and shall continue indefinitely, unless earlier terminated as provided herein (the “Term ”).                                      14 US-DOCS\ 102768708.1 102810577.2 

 

           9.2   Termination  for  Breach .  Either party may terminate this Agreement upon a  material  breach  of  this  Agreement  by  the  other  party  by  providing  fifteen  (15)  days  prior written notice to the other party.  The termination shall become effective at the end of the notice period unless the breaching party cures such breach during such notice period.  Notwithstanding the foregoing, if the breach, by its nature, is incurable, the non-breaching party may terminate this Agreement immediately upon written notice to the breaching party.             9.3   Termination  for  Convenience .  Licensee may terminate this Agreement at any time for convenience by providing OMT thirty (30) days prior written notice.             9.4   Termination  for  IP  Challenge .  To the fullest extent allowed by applicable law,  OMT  shall  have  the  right,  upon  written  notice to  Licensee,  to  terminate  in  full  (a)  this Agreement,  in  the  event  that  Licensee  directly  challenges  in  any  legal  or  administrative proceeding  the  patentability,  enforceability,  or  validity  of  any  of  OMT’s  intellectual  property rights covering the Animals, or (b) any China Outlicensee’s China Outlicensing Agreement, in the event that such China Outlicensee directly challenges in any legal or administrative proceeding the patentability, enforceability, or validity of any of OMT’s intellectual property rights covering the  Animals;  provided  that  OMT  shall  have  no  right to  terminate  any  China  Outlicensing Agreement under this Section 9.4 for any challenge by a China Outlicensee if such challenge is dismissed  within  sixty  (60)  days  of  OMT’s  notice  to  Licensee  under  this  Section  9.4  and  not thereafter continued.             9.5   Effect of Expiration or Termination .                   (a)  Upon  termination or expiration of this Agreement or any reason, any right to use or exploit the Animals in any manner whatsoever (including its ability to place Orders in accordance with Section 3.1) shall immediately terminate, provided that all other terms shall survive.                   (b)  Upon termination or expiration of this Agreement, each Receiving Party  shall  return  to  the  other  party  or  properly  destroy  (and  certify  destruction  of)  all Confidential  Information  of  the  other  party,  including  any  extracts,  notes,  modifications,  or derivatives thereof; the foregoing shall include, without limitation, Licensee’s return to OMT, or destruction  of,  any  and  all  Animals  and  embodiments  of  either  of  them,  including  derivatives thereof, and any modifications and/or analogs thereof (excluding Antibodies and Products).                                      15 US-DOCS\ 102768708.1 102810577.2 

 

      10.  Limitation of Liability .  To the fullest extent allowed by applicable law, except for breaches of Section 6 and for each party’s indemnification obligations under Section 8, in no event shall either party or its directors, officers, employees, consultants and agents (collectively, its “Agents ”), be responsible or liable in connection with this Agreement for any indirect, special, punitive, incidental or consequential damages or lost profits to the other party or its licensees or Agents, regardless of legal theory.  The above limitations on liability apply even though a party may have been advised of the possibility of such damage.  Licensee shall not, and shall require that its licensees do not, make any statements, representations or warranties or accept any liabilities or responsibilities whatsoever on behalf of OMT or its Agents and with regard to any person or entity that are inconsistent with any disclaimer or limitation in Section 7.3 or this Section 10.        11.  General Provisions .             11.1  Relationship  of  the  Parties .  The parties to this Agreement recognize and agree that each is operating as an independent contractor and not as an agent of the other.  This Agreement shall not constitute a partnership or joint venture, and neither party shall be bound by the other to any contract, arrangement or understanding except as specifically stated herein.             11.2  Assignment .   This  Agreement  is  not  assignable  or  transferable  by  either party (by operation of law or otherwise), without the prior written consent of the other party, provided that either party may assign this Agreement to a successor to all or substantially all of such party’s assets or business to which this Agreement relates.             11.3  Notices .   Any  notice,  report,  approval  or  consent  required  or  permitted hereunder shall be in writing and shall be deemed to have been duly given to a party if delivered personally or mailed by first-class, registered or certified mail, postage prepaid to the address of that party as set forth on the first page of this Agreement; or such other address as is provided by that party to the other upon ten (10) days written notice.             11.4  Force  Majeure .  Except for payment obligations, a party shall not be held liable or responsible to the other party or be deemed to have defaulted under or breached this Agreement for failure or delay in fulfilling or performing any term of this Agreement when such failure  or  delay  is  caused  by  or  results  from  events  beyond  the  reasonable  control  of  the non-performing party, including fires, floods, embargoes, shortages, epidemics, quarantines, war, acts  of  war  (whether  war  be  declared  or  not),  acts of  terrorism,  insurrections,  riots,  civil commotion  or  acts  of  God.   The  non-performing  party  shall  provide  reasonable  notice of any force majeure event to the other party.             11.5  Waiver .  No failure to exercise, and no delay in exercising, on the part of either party, any privilege, power, or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any privilege, right or power hereunder preclude further exercise of any other privilege, right or power hereunder.  Any waivers or amendments shall be effective only if made in writing and signed by authorized representatives of the parties.             11.6  Severability .  If any provision of this Agreement shall be adjudged by any court of competent jurisdiction to be unenforceable or invalid, that provision shall be limited or                                     16 US-DOCS\ 102768708.1 102810577.2 

 

eliminated to the minimum extent necessary so that this Agreement shall otherwise remain in full force and effect and enforceable.             11.7  Governing   Law;   Arbitration .   This  Agreement  shall  be  governed  by  and construed  pursuant  to  the  laws  of  the  State  of  California  without  regard  to  conflicts  of  laws provisions  thereof  and  without  regard  to  the  United  Nations  Convention  on  Contracts for the International  Sale  of  Goods.   All  disputes  hereunder  shall  be  submitted  to  binding  arbitration using the English language (with all documents produced or submitted in connection therewith required  to  be  in  English)  in  accordance  with  the  Comprehensive  Arbitration  Rules  and Procedures  of  Judicial  Arbitration  and  Mediation  Services,  Inc.  (“JAMS ”)  then  in  effect  (the “Rules ”),  by  one  or  more  commercial  arbitrator(s)  with  substantial  experience  in  resolving complex commercial contract and intellectual property disputes, who will be selected from the appropriate list of JAMS arbitrators in accordance with the Rules.  The arbitration will be held in New  York,  New  York.   For  all  purposes  of  this  Agreement,  the  Parties  hereby  submit to the exclusive jurisdiction of the state and federal courts located in San Francisco County, California, provided that notwithstanding anything in this Section 11.7, either party may pursue injunctive or other  equitable  relief  at  any  time  in  any  court  of competent  jurisdiction.   In  any  action  or proceeding  to  enforce  rights  under  this  Agreement, the  prevailing  party  shall  be  entitled  to recover its reasonable costs and attorneys’ fees.             11.8  Publicity .   Neither  party  shall,  without  the  prior  written  consent  of  the other  party,  issue  any  press  release  or  make  any  other  public  announcement  concerning  the existence  of  this  Agreement  or  its  terms  and  conditions,  or  otherwise  use  the  other  party’s name(s), mark(s), and/or logo(s), such consent not to be unreasonably withheld.             11.9  Equitable   Relief .   The  parties  acknowledge  that  money  damages  alone would  not  adequately  compensate  a  party  in  the  event  of  a  breach  by  the  other  party  of  this Agreement  (including,  without  limitation,  any  unauthorized  use  of  the  Animals)  and  that,  in addition to all other remedies available to a party at law or in equity, it shall be entitled to seek equitable relief (including injunction and specific performance) for the enforcement of its rights hereunder, without the requirement of posting a bond.             11.10 Entire   Agreement .   This  Agreement  is  the  complete  and  exclusive statement  of  the  agreement  and  understanding  of  the  parties  and  supersedes  and  cancels  all previous written and oral agreements, understandings and communications relating to the subject matter  of  this  Agreement,  including,  as  provided  in  Section  2  hereof,  the  Development  and Commercialization  Agreement  by  and  between  the  parties  dated  August  20,  2012,  and  the Strategic Commercial Partner Agreement by and between the parties dated February 22, 2013. No amendment or change hereof or addition hereto shall be effective or binding on either of the parties hereto unless reduced to writing and duly executed on behalf of both parties.             11.11 Approval .  Unless otherwise expressly provided herein, anything subject to OMT’s approval herein is subject to such approval in OMT’s sole discretion.             11.12 Headings .  The headings to the sections in this Agreement are not a part of this Agreement, but are included merely for convenience of reference only and shall not affect its                                     17 US-DOCS\ 102768708.1 102810577.2 

 

meaning  or  interpretation.   Any  use  of  the  term  “including”  shall  mean  “including  without limitation.”                                      18 US-DOCS\ 102768708.1 102810577.2 

 

      IN  WITNESS  WHEREOF,  the  parties  hereto  have  caused  this  Agreement  to  be executed so as to be effective on the date set forth above.   Open Monoclonal Technology, Inc.     WuXi AppTec Biopharmaceuticals Co., Ltd.   By:  /s/ Roland Buelow               By: /s/ Chris Chen  Name: Roland Buelow                  Name: Chris Chen  Title: CEO                           Title: SVP & CTO   US-DOCS\ 102768708.1 102810577.2 

 

                                Exhibit A                       Housing and Maintenance Provisions  Federal guidelines for use of vertebrate animals in research contain specific provisions for basic husbandry.  Proper diet and a stress-free, sanitary environment are some of the greatest tools in preventing the development or transmission of disease.  Animals must be housed in accordance with the guidelines set forth in the Guide for the Care and Use of Laboratory Animals, currently available  at  http://grants.nih.gov/grants/olaw/Guide-for-the-Care-and-Use-of-Laboratory- Animals.pdf (the “Guidelines ”), which are adapted from the requirements of the Animal Welfare Act and may be updated from time to time.   US-DOCS\ 102768708.1 102810577.2 

 

                                Exhibit B            Approved Affiliates Approved Facilities; Approved Subcontractors  Approved Affiliates :  WuXi AppTec (Shanghai) Co., Ltd. (In Chinese :上海药明康德新药开发有限公司  )  WuXi Biologics (Shanghai) Co. Ltd. (In Chinese: 上海药明生物技术有限公司)  Approved facilities of Licensee :  108 Meiliang Rd, Wuxi city, PRC  288 FuTe Middle Rd, Shanghai PRC   Approved facilities of, and scope of work for, Approved Subcontractors :  108 Meiliang Rd, Wuxi city, PRC  288 FuTe Middle Rd, Shanghai PRC   US-DOCS\102810577.2 

 

                       Summary report:    Litéra® Change-Pro TDC 10.1.0.400 Document comparison done on                      8/7/2018 11:48:08 AM Style name: L&W with Moves Intelligent Table Comparison: Active Original DMS: iw://US-DOCS/US-DOCS/102810577/1 Modified DMS: iw://US-DOCS/US-DOCS/102810577/2 Changes: Add                                            19 Delete                                         9 Move From                                      0 Move To                                        0 Table Insert                                   0 Table Delete                                   0 Table moves to                                 0 Table moves from                               0 Embedded Graphics (Visio, ChemDraw, Images etc.) 0 Embedded Excel                                 0 Format changes                                 0 Total Changes:                                 28a1014redlineamendmentnum

                                                             Exhibit 10.14                                                   ***Text Omitted and Filed Separately with                                                   the Securities and Exchange Commission.                                                   Confidential Treatment Requested Under                                                 17 C.F.R. Sections 200.80(b)(4) and 240.24b-2.        AMENDMENT NUMBER ONE TO PLATFORM LICENSE AGREEMENT        This Amendment Number One to Platform License Agreement (this “Amendment No. 1 ”) is made by and between OMT, Inc. (“OMT ”), which has its principal place of business at 3911 Sorrento Valley Boulevard, Suite 110, San Diego, California 92121, U.S.A., and WuXi Biologics (Hong Kong) Limited (“Licensee ”), which has its principal place of business at Suite 3701-10, 37F., Jardine Hse, 1 Connaught Place, Central, Hong Kong.  OMT and Licensee may each be referred to herein as a “Party ” and collectively as the “Parties .”        WHEREAS , OMT and WuXi AppTec Biopharmaceuticals Co., Ltd. (“WuXi ”), which has its principal place of business at 108 Meiliang Rd., Mashan, Wuxi, P.R. China, entered into the Platform License Agreement, effective on March 23, 2015 (the “Agreement ”);        WHEREAS ,  pursuant  to  the  Assignment  and  Assumption  Agreement  entered  by  and among the Parties and WuXi as of July 19, 2016, WuXi assigned the Agreement to Licensee; and        WHEREAS , the Parties desire to amend certain terms of the Agreement in accordance with this Amendment No. 1, and this Amendment No. 1 shall be effective as of June 11, 2017 (the “Amendment No. 1 Effective Date ”).        NOW   T HEREFORE ,  for  good  and  valuable  consideration,  the  receipt and  sufficiency  of which is hereby acknowledged by the Parties, the Parties, intending to be legally bound, agree as follows:  1.    All  capitalized  terms  used  in  this  Amendment  No. 1  and  not  otherwise  defined  in  this       Amendment No. 1 shall have the meanings assigned to such terms in the Agreement.  2.    Section  1.8  of  the  Agreement  shall  be  deleted  in its  entirety  and  replaced  with  the       following:                   “China   Outlicensee ”  means   a   third   party   that   executes   a   China            Outlicensing   Agreement   in   accordance   with   Section   4.3(a)   and   that   is            authorized,   including   without   limitation   under   a   license   or   option   grant            and/or   an   appointment   as   distributor,   under   such   China   Outlicensing            Agreement to use, develop, market, distribute, offer for sale, and/or sell an            Antibody   in   China,   and,   upon   execution   and   delivery   of   a   China   Plus            Addendum, in the applicable China Plus Territory. ”  3.    Section  1.10  of  the  Agreement  shall  be  deleted  in  its  entirety  and  replaced  with  the       following:                   “Net  Sales ” means  the  gross  amounts  invoiced  by  or  for  Licensee            and/or   any   Outlicensee,   as   applicable,   (each,   a   “ Selling   Party ”)  for   the                                     1  US-DOCS\102805237.1102810702.2 

 

           disposition  of  a  unit  of  Product  to  a  third  party  end  user  (the  “ Gross  Sales            Price ”), after deduction (if not already deducted in the amount invoiced) of            the  following  expenses  paid  by  the  Selling  Party  for  such  Product  that  are            each  actually  incurred  and  itemized  on  such  invoice  by  the  Selling  Party:            (i)   freight,  shipping,  transportation  and  insurance  costs;  (ii)  discounts,  in            reasonable  amounts  that  are  customary  in  the  trade,  that  are  actually  given            to   buying  groups,  health  care  insurance  carriers,  chain  pharmacies,  mass            merchandisers,  staff  model  HMOs,  pharmacy  benefit  managers,  and  other            similar   wholesalers   and   distributors,   for   quantity   purchases   and   prompt            payment;  (iii)  tax,  including  sales,  use,  turnover,  excise,  import  and  other            taxes,   customs   or   duties   borne   by   the   Selling   Party   imposed   by   a            governmental   agency   on   such  disposition,  and  (iv)  credits  or  allowances            actually  given  or  made  with  respect  to  a  Product  by  reason  of  rejection,            defects,   recalls,   returns,   rebates,   or   uncollectable  amounts   ((i)-(iv)            together, “ Permitted Deductions ”). A Selling Party shall not dispose of any            Product   for  any  consideration  other  than  monetary  consideration  and  on            bona fide arm ’s length terms, without the prior written agreement of OMT            and Licensee (that describes in reasonable detail the basis for calculation of            Net Sales based on such a transaction). ”  4.    Section  1.17  of  the  Agreement  shall  be  deleted  in  its  entirety  and  replaced  with  the       following:                   “Outlicensing Agreements ” means China Outlicensing Agreements,            Ex-China   Outlicensing   Agreements,   and   Territory   Outlicensing            Agreements.”  5.    Section  1.18  of  the  Agreement  shall  be  deleted  in  its  entirety  and  replaced  with  the       following:                   “Outlicensee(s) ”  means   a   China   Outlicensee(s),   Ex-China            Outlicensee(s), and/or Territory Outlicensee(s) .”  6.    Section  1.20  of  the  Agreement  shall  be  deleted  in  its  entirety  and  replaced  with  the       following:                   “Territory ” means worldwide. ”  7.    A new Section 1.21 shall be added to the Agreement as follows:                   “1.21   Ex-China  Outlicensee ” means  a  third  party  that  executes  an            Ex-China  Outlicensing  Agreement  in  accordance  with  Section  4.3(b)  and            that   is   authorized,   including   without  limitation  under  a  license  or  option            grant   and/or   an   appointment   as   distributor,   under   such   Ex-China            Outlicensing  Agreement  to  use,  develop,  market,  distribute,  offer  for  sale,            and/or   sell   an   Antibody   outside   of   China   (excluding   any   China   Plus                                     2  US-DOCS\102805237.1102810702.2 

 

           Territory   to   the   extent   rights   to   such   Antibody   have   been   granted   to   a            Third Party other than such Ex-China Outlicensee) .”  8.    A new Section 1.22 shall be added to the Agreement as follows:                   “1.22   Territory  Outlicensee ” means  a  third  party  that  executes  a            Territory  Outlicensing  Agreement  in  accordance  with  Section  4.3(c)  and            that   is   authorized,   including   without  limitation  under  a  license  or  option            grant   and/or   an   appointment   as   distributor,   under   such   Territory            Outlicensing  Agreement  to  use,  develop,  market,  distribute,  offer  for  sale,            and/or  sell  an  Antibody  both  in  China  and  outside  of  China  and  the  China            Plus Territory.”  9.    Section  4.2  of  the  Agreement  shall  be  deleted  in its  entirety  and  replaced  with  the       following:                   “(a)  OMT   and   Licensee   jointly   own   the   Antibodies   and   any            Products   (including   Products   developed   by   an   Outlicensee)   and   all            intellectual   property   rights   therein,   including   any   patent   rights            (col lectively,  “ Joint  Rights ”),  and  each  hereby  makes  (and  will  cause  each            of   their   respective   Outlicensees   to   make,   and,   with   respect   to   Licensee,            will  cause  Approved  Affiliates  and  its  and  their  Approved  Subcontractors            to   make)   all   assignments   necessary   to   achieve   the   foregoing.   Subject   to            compliance   with   all   terms   and   conditions   of   this   Agreement,   OMT   and            Licensee   hereby   grant   the   other   a   non-exclusive,   irrevocable,   perpetual,            worldwide,   royalty-free,   non-transferable   (except   in   accordance   with            Section  11.2)  right  and  license  in  and  to  the  Joint  Rights,  in  each  case  to            the  extent  necessary  to  achieve  such  joint  ownership  and  allow  each  party            to  exercise  its  rights  hereunder.  Each  of  OMT  and  Licensee  shall,  at  the            request of the other, execute all documents and do all other acts and things            as  may  be  reasonably  required  in  order  to  vest  fully  and  effectively  in  both            OMT and Licensee, jointly, all rights in and to such Joint Rights.                   (b)  Licensee shall have the right to file, prosecute, and maintain            all   patent   rights   in   the   Territory   with   respect   to   the   Joint   Rights   (“ Joint            Patent   Rights ”),   provided   that   Licensee   may   do   the   foregoing   in   an            Outlicensee ’s  name,   provided   such   Outlicensee   is   at   all   times   in            compliance   with  the  obligations  of  its  Outlicensing  Agreement.  Licensee            shall   use   (or,   if   applicable   pursuant   to   the   previous   sentence,   cause   its            Outlicensee  to  use)  commercially  reasonable  efforts  to  so  file,  prosecute,            and   maintain   such   Joint   Patent   Rights.    Licensee   shall,   at   least   fourteen            (14)  days  prior  to  submission  or  within  fourteen  (14)  days  of  receipt  (as            applicable),   forward   to   OMT   copies   of   any   significant   office   actions,            communications,   and   correspondence   relating   to   the   Joint   Patent   Rights            (including   any   correspondence   of   applicable   Outlicensees).   OMT   shall            have   the   right   to   comment   on   and   to   discuss   such   prosecution   and                                     3  US-DOCS\102805237.1102810702.2 

 

           maintenance   activities   with   Licensee,   and   Licensee   shall   consider   (and            cause  the  applicable  Outlicensees  to  consider)  OMT ’s comments  in  good            faith. ”  10.   Section  4.3  of  the  Agreement  shall  be  deleted  in  its  entirety  and  replaced  with  the       following:                   “Outlicensing .                   (a)  China   Outlicensing   Agreement .  Licensee   may   authorize,            including   without   limitation   under   a   license   or   option   grant   and/or   an            appointment   as   distributor,   a   third   party   to   use,   develop,   market,            distribute,   offer   for   sale,   and/or   sell   an   Antibody   in   China   (and,   as            applicable  with  respect  to  Existing  Antibodies,  the  China  Plus  Territory)            solely   pursuant   to   an   agreement   that   is   consistent   with   the   terms   and            conditions   of   this   Agreement,   including   without   limitation   this   Section            4.3(a),   below   (each   such   third   party   agreement,  a  “ China   Outlicensing            Agreement ”).  Pursuant to a China Outlicensing Agreement, Licensee may            distribute  or  otherwise  transfer  any  Antibodies  generated  by  or  on  behalf            of  Licensee  to  the  applicable  China  Outlicensee  using  antigens  selected  by            Licensee   or   such   China   Outlicensee.    Licensee   shall   be   responsible   and            liable   for   all   actions   and   omissions   of   China   Outlicensees   in   connection            with  such  Antibodies.  Licensee  may  provide  any  such  resulting  Antibodies            to  a  China  Outlicensee  that  is  bound  by  a  China  Outlicensing  Agreement.            Additionally,   Licensee   may   prov ide   Existing   Antibodies   to   a   China            Outlicensee   that   is   bound   by   a   written   addendum   to   such   China            Outlicensing  Agreement  for  use,  development,  and  marketing  in  the  China            Plus Territory (a “ China Plus Addendum ,”  which shall be deemed a part of            the   applicable   China   Outlicensing   Agreement).   Each   China   Outlicensing            Agreement will include payment provisions that enable Licensee to comply            with  its  obligations  to  make  payments  to  OMT  under  this  Agreement,  and            will   prohibit   the   licensing,   distribution,   sale,   offer   for   sale,  use,  or  other            transfer  of  any  Antibody  or  Product  outside  of  China  (and,  as  applicable            with   respect   to   Existing   Antibodies,   the   China   Plus   Territory)   by   or   on            behalf   of   the   applicable   China   Outlicensee,   and   shall   not   grant   any            exclusive license o f any Antibody (except solely for use within China (and,            as   applicable   with   respect   to   Existing   Antibodies,   the   China   Plus            Territory),   where   “use”   includes   development   of   and   distribution   of            Products)  without  the  prior  written  consent  of  OMT,  except  in  each  case            to  the  extent  such  China  Outlicensee  is  also  an  Ex-China  Outlicensee  with            respect to the same Antibody or Product.                   (b)  Ex- China   Outlicensing   Agreement .  Licensee   may            authorize,   including   without   limitation   under   a   license   or   option   grant            and/or an appointment as distributor, a third party to use, develop, market,            distribute,  offer  for  sale,  and/or  sell  an  Antibody  outside  of  China  (and,  as                                     4  US-DOCS\102805237.1102810702.2 

 

           applicable  with  respect  to  Existing  Antibodies,  the  China  Plus  Territory)            solely   pursuant   to   an   agreement   that   is   consistent   with   the   terms   and            conditions   of   this   Agreement,   including   without   limitation   this   Section            4.3(b),  below  (each  such  third  party  agreement,  a “ Ex-China  Outlicensing            Agreement ”).  Pursuant to an Ex-China Outlicensing Agreement, Licensee            may   distribute   or   otherwise   transfer   any   Antibodies   generated   by   or   on            behalf  of  Licensee  to  the  applicable  Ex-China  Outlicensee  using  antigens            selected   by   Licensee   or   such   Ex-China   Outlicensee.    Licensee   shall   be            responsible   and   liable   for   all   actions   and   omissions   of   Ex-China            Outlicensees   in   connection   with   such   Antibodies.   Each   Ex-China            Outlicensing  Agreement  will  prohibit  the  licensing,  distribution,  sale,  offer            for  sale,  use,  or  other  transfer  of  any  Antibody  or  Product  in  and/or  into            China   (and,   as   applicable   with   respect   to   Existing  Antibodies,  the  China            Plus Territory) by or on behalf of the applicable Ex-China Outlicensee, and            shall not grant any exclusive license of any Antibody (except solely for use            outside  China  (and,  as  applicable  with  respect  to  Existing  Antibodies,  the            China   Plus   Territory),   where   “use”   includes   development   of   and            distribution   of   Products)   without   the   prior   written   consent   of   Licensee,            except   in   each   case   to   the   extent   such   Ex-China   Outlicensee   is   also   a            China Outlicensee with respect to the same Antibody or Product.                   (c)  Territory   Outlicensing   Agreement .  Licensee   may            authorize,   including   without   limitation   under   a   license   or   option   grant            and/or an appointment as distributor, a third party to use, develop, market,            distribute,  offer  for  sale,  and/or  sell  an  Antibody  both  in  China  and  outside            of  China  (and,  as  applicable  with  respect  to  Existing  Antibodies,  the  China            Plus  Territory)  solely  pursuant  to  an  agreement  that  is  consistent  with  the            terms  and  conditions  of  this  Agreement,  including  without  limitation  this            Section   4.3(c),   below   (each   such   third   party   agreement,  a  “ Territory            Outlicensing   Agreement ”).    Pursuant   to   a   Territory   Outlicensing            Agreement,  Licensee  may  distribute  or  otherwise  transfer  any  Antibodies            generated   by   or   on   behalf   of   Licensee   to   the   applicable   Territory            Outlicensee   using   antigens   selected   by   Licensee   or   such   Territory            Outlicensee.    Licensee   shall   be   responsible   and   liable   for   all   actions  and            omissions of Territory Outlicensees in connection with such Antibodies.                   (d)  Licensee  may  not  outlicense  or  otherwise  provide  rights  in            any  Antibodies  to  any  third  party  except  for  China  Outlicensees  pursuant            to   Section   4.3(a),   Ex-China   Outlicensees   pursuant   to   Section   4.3(b),            and/or Territory Outlicensees pursuant to Section 4.3(c).                   (e)  Licensee shall make commercially reasonable efforts to and            in   good   faith   market   and   outlicense   the   Antibody;   provided   that,   if            Licensee  does  not  outlicense  any  Antibody  in  accordance  with  the  terms            and   conditions   of   Sections   4.3(a),   (b),   and   (c)   after   using   commercially            reasonable efforts to do so, Licensee shall have the right to market and sell                                     5  US-DOCS\102805237.1102810702.2 

 

           such   Antibody   directly   and/or   through   subcontractors,   provided   that   the            terms   and   conditions   of   Sections   4.3(a),   (b),   and   (c)   shall   apply   to            Licensee  mutatis  mutandis  as  if  Licensee  were  the  applicable  outlicensee.            Notwithstanding   the   foregoing,  if,  within  three  (3)  years  after  OMT  and            Licensee ’s filing  of  a  patent  application  claiming  an  Antibody ’s sequence,            an   Ex-China   Outlicensing   Agreement   or   a   Territory   Outlicensing            Agreement  for  such  Antibody  has  not  been  executed,  then  OMT  may  seek            to   license   the   Antibody   under   an   Ex-China   Outlicensing   Agreement   or            Territory   Outlicensing   Agreement   subject   to   Licensee ’s  approval   of   any            such   Ex-China   Outlicensing   Agreement   or   Territory   Outlicensing            Agreement.   Such   approval   by   Licensee   must   not   be   unreasonably            withheld,  delayed,  or  conditioned.   It will not be deemed unreasonable for            Licensee  to  withhold  its  approval  if  such Ex-China   Outlicensing            Agreement   or   Territory   Outlicensing   Agreement   does  not  contain  terms            that  would  have  the  potential  to  provide  Licensee  a  fair  and  reasonable            return on its investment after taking into account payments made to OMT            under Section 5.                   (f)    Each   Outlicensing   Agreement   shall   contain   terms   no   less            protective   of   OMT   (including   without   limitation   its   intellectual   property            rights   in   the   Animals,   Antibodies,   and   Products)   than   those   set   forth            herein.   Each  Outlicensing  Agreement  shall  refer  to  this  Agreement  and            shall be subordinate to and consistent with the terms and conditions of this            Agreement,  and  shall  not  limit  the  ability  of  Licensee  (individually  or            through  the  activities  of  its  Outlicensee)  to  fully  perform  all  of  its            obligations under this Agreement or OMT’s rights under this Agreement.            Licensee shall require each Outlicensee to agree in writing to be bound by            all  of  the  applicable  terms  and  conditions  of  this Agreement.   Licensee            shall  remain  responsible  for  the  performance  of  this  Agreement  and  the            performance of its Outlicensees under this Agreement, including without            limitation  the  payment  of  all  payments  due,  and  making  reports  and            keeping  books  and  records,  and  shall  cause  such  Outlicensee  to  enable            Licensee  to  comply  with  the  terms  and  conditions  of  this  Agreement.            Licensee shall remain jointly and severally liable for any uncured breach of            an Outlicensing   Agreement  by  a  Outlicensee  to  the  extent  that  such            uncured  breach  would  constitute  a  breach  of  this  Agreement .   Licensee            will use good faith efforts to enforce, including without limitation through            initiation  and  prosecution  of  legal  action,  the  terms  of  any  Outlicensing            Agreement  in  the  event  the  applicable  Outlicensee  is  in  breach  of  such            Outlicensing  Agreement.  Each  Outlicensing  Agreement  shall  terminate            immediately upon the termination of this Agreement (in whole or only with            respect  to  the  rights  that  are  subject  to  such  Outlicensing  Agreement).            Licensee   will   keep   OMT   reasonably   informed   of   the   status   of   any            Outlicensing Agreements, and promptly after execution of the Outlicensing            Agreement,  Licensee  shall  provide  a  summary  of  such  Outlicensing            Agreement to OMT. ”                                     6  US-DOCS\102805237.1102810702.2 

 

11.   Section  4.4  of  the  Agreement  shall  be  deleted  in  its  entirety  and  replaced  with  the       following:                   “As  between  the  parties,  and  without  limiting  any  other  available            remedy,   OMT   owns   (i)   the   Animals   and   (ii)   any   modification,            improvement, enhancement, or progeny of the Animals created in violation            of  Section  3.14.1(a)  above  or  antibodies  created  in  violation  of  the  same            Section,  and  (iii)  any  Antibodies  or  Products  distributed  outside  of  China            in   violation   of  Section   4.3(a)   above   ((ii)   and   (iii)   collectively,   “ Animal            Improvements ”),   and   all   intellectual   property   rights   in   any   of   the            foregoing;  Licensee  hereby  makes  (and  will  cause  its  Approved  Affiliates            and   its   and   their   Approved   Subcontractors,   and   any   Outlicensee,   as            applicable, to make) all assignments necessary to accomplish the foregoing            ownership   with   respect   to   any   Animal   Improvements   and   progeny.            Licensee   acknowledges   and   agrees   that   the   Animals,   together   with   any            related biological material or substance that is replicated, synthesized or in            any   way   derived   from   the   Animals   (including   progeny),   except   for            Antibodies,   include   and   constitute   valuable   trade   secrets   of   OMT,   and            OMT  has  used  diligent  efforts  to  maintain  such  items  as  its  trade  secrets            and Confidential Information .”  12.   Section  4.5(a)  of  the  Agreement  shall  be  deleted  in  its  entirety  and  replaced  with  the       following:                   “Each   of   OMT   and   Licensee   shall   notify   the   other   promptly   in            writing   when   each   learns   of   or   reasonably   suspects   infringement   of   any            Joint   Right   by   a   third   party   (an  “Infringement ”).    Licensee,   or   its            Outlicensee,   shall   have   the   first   right   to   enforce   any   Joint   Right   in   the            Territory,  and  control,  defend  and  settle  such  suit  in  a  manner  consistent            with the terms and provisions hereof, and recover any damages, awards or            settlements resulting therefrom, subject to Section 4.5(c). ”  13.   Section  5.1  of  the  Agreement  shall  be  deleted  in  its  entirety  and  replaced  with  the       following:                   “Outlicensing Fees .                   (a)    China   Outlicensing   Agreements .   For  each  antigen  that            Licensee uses to generate and license Antibodies to a China Outlicensee,            or  generate  Antibodies  on  behalf  of  a  China  Outlicensee,  and  for  each            Existing  Antibody  that  is  subject  to  a  China  Outlicensing  Agreement,            Licensee shall pay to OMT one  million  dollars  ($1,000,000) [***] , within       [***]  Certain information on this page has been omitted and filed separately with the       Commission.  Confidential treatment has been requested with respect to the       omitted portions.                                     7  US-DOCS\102805237.1102810702.2 

 

           thirty  (30)  days  after  the  Antibody  is  delivered  to  and  accepted by such            China Outlicensee.  If a China Outlicensee is also an Ex-China Outlicensee            pursuant  to  an  Ex-China  Outlicensing  Agreement,  then  the            $1,000,000 [***]  payment set forth in the preceding sentence with respect            to a specific Antibody shall be creditable against the applicable ‘Delivery            of Antibodies Production Cell-Line to the Ex-China Outlicensee’ payment            subsequently  payable  under  Section  5.1(b)(i)  or  (ii)  for  such  Ex-China            Outlicensing Agreement with respect to such Antibody, or, if Licensee has            previously  paid  to  OMT  such  ‘Delivery  of  Antibodies  Production  Cell-            Line to the Ex-China Outlicensee’ payment payable under Section 5.1(b)(i)            or (ii) for such Ex-China Outlicensing Agreement with respect to a specific            Antibody,  then  Licensee  shall  not  be  required  to  pay  to  OMT  the            $1,000,000 [***]  payment set forth in the preceding sentence with respect            to such Antibody.                   (b)  Ex-China   Outlicensing   Agreements .   Each  Ex-China            Outlicensing  Agreement  shall  provide  that  any  milestones  and  royalties            shall be paid to Licensee.  Licensee will pay OMT the following payments            per  each  Antibody  that  is  subject  to  such  Ex-China Outlicensing            Agreement:                        (i)   For  each  Ex-China  Outlicensing  Agreement*  that            Licensee  enters  into  prior  to  entering  into  the  third  Outlicensing            Agreement  that  is  an  Ex-China  Outlicensing  Agreement  or  a  Territory            Licensing Agreement:               Execution of such Ex-China Outlicensing Agreement $1,000,000              Delivery  of  Antibodies  Production  Cell-Line  to  the  Ex- $2,000,000*              China Outlicensee                           *              Initiation  of  the  first  Phase  2  Trial  for  each  Antibody $2,000,000              that   is   subject   to   such   Ex-China   Outlicensing              Agreement              Acceptance  of  a  Regulatory  Approval  Application  for $5,000,000              each   Antibody   that   is   subject   to   such   Ex-China              Outlicensing Agreement              Approval   of   a   Regulatory   Approval   Application   for $3,000,000              each   Antibody   that   is   subject   to   such   Ex-China              Outlicensing Agreement                       [***]             *     For clarity, the payments in the table above shall be multiplied by the            number  of  Antibodies  that  are  subject  to  such  Ex-China  Outlicensing            Agreement.            **    If the Ex-China Outlicensee is also a China Outlicensee pursuant to            a China  Outlicensing  Agreement  and  Licensee  has  paid  to  OMT,  as  a            result   of   entering   into   such   China   Outlicensing   Agreement,   the                                     8  US-DOCS\102805237.1102810702.2 

 

           $1,000,000   payment   pursuant   to   the   first   sentence   of   Section   5.1(a)            with   respect   to   a   specific   Antibody,   then   such   $1,000,000   payment            shall   be   creditable   against   the   $2,000,000  ‘Delivery   of   Antibodies            Production  Cell-Line  to  the  Ex-China  Outlicensee ’ payment  payable            under   this   Section   5.1(b)(i)   for   such   Ex-China   Outlicensing            Agreement  with  respect  to  such  Antibody.   Additionally,  if  Licensee            has   previously   entered   into   one   or   more   Territory   Outlicensing            Agreements   and   has   paid   to   OMT,   for   each   such   Territory            Outlicensing  Agreement,  the  $2,000,000  milestone  payment(s)  for  the            ‘Delivery   of   Antibodies   Production   Cell-Line   to   the   Territory            Outlicensee ’  milestone   under   Section   5.1(c)(i),   then   the   $2,000,000            ‘Delivery   of   Antibodies   Production   Cell-Line   to   the   Ex-China            Outlicensee ’  payment   payable   under   this   Section   5.1(c)(i)   shall   be            reduced   to   $1,000,000   for   each   such   Territory   Outlicensing            Agreement entered into.            [***]                                      9  US-DOCS\102805237.1102810702.2 

 

                      (ii)  For  each  Ex-China  Outlicensing  Agreement*  that            Licensee enters into after entering into the second Outlicensing Agreement            that  is  an  Ex-China  Outlicensing  Agreement  or  a  Territory  Licensing            Agreement:               Execution of such Ex-China Outlicensing Agreement $1,000,000              Delivery  of  Antibodies  Production  Cell-Line  to  the  Ex- $1,000,000*              China Outlicensee                           *              Initiation  of  the  first  Phase  1  Trial  for  each  Antibody $1,000,000              that   is   subject   to   such   Ex-China   Outlicensing              Agreement              Initiation  of  the  first  Phase  2  Trial  for  each  Antibody $2,000,000              that   is   subject   to   such   Ex-China   Outlicensing              Agreement              Acceptance  of  a  Regulatory  Approval  Application  for $5,000,000              each   Antibody   that   is   subject   to   such   Ex-China              Outlicensing Agreement              Approval   of   a   Regulatory   Approval   Application   for $3,000,000              each   Antibody   that   is   subject   to   such   Ex-China              Outlicensing Agreement                        [***]             *     For clarity, the payments in the table above shall be multiplied by the            number  of  Antibodies  that  are  subject  to  such  Ex-China  Outlicensing            Agreement.            **    If the Ex-China Outlicensee is also a China Outlicensee pursuant to            a China  Outlicensing  Agreement  and  Licensee  has  paid  to  OMT,  as  a            result   of   entering   into   such   China   Outlicensing   Agreement,   the            $1,000,000   payment   pursuant   to   the   first   sentence   of   Section   5.1(a)            with   respect   to   a   specific   Antibody,   then   such   $1,000,000   payment            shall   be   creditable   against   the   $1,000,000  ‘Delivery   of   Antibodies            Production   Cell-Line   to   Ex-China   Outlicensee ’  payment   payable            under   this   Section   5.1(b)(i)   for   such   Ex-China   Outlicensing            Agreement with respect to such Antibody.            [***]         [***]  Certain information on this page has been omitted and filed separately with the       Commission.  Confidential treatment has been requested with respect to the       omitted portions.                                     10  US-DOCS\102805237.1102810702.2 

 

                      (iii)  Notwithstanding  anything  to  the  contrary  in  Section            5.1(b)(i)  and  (ii),  if  any  Ex-China  Outlicensing  Agreement  does  not            include  the  grant  of  any  rights  outside  of  Brazil, Russia,  India,  Korea,            Indonesia, Thailand, Philippines, Malaysia, Singapore, Vietnam, Myanmar,            Cambodia,  Laos,  and  Brunei,  as  evidenced  by  a  signed  copy  of  the            agreement  with  Licensee  covering  such  country(ies),  then  the  payments            payable to OMT pursuant to this Section 5.1(b) with respect to such Ex-            China Outlicensing Agreement shall be the amount equal to forty  percent            (40%)   of   the   payments   received   by   Licensee   under   such   Ex-China            Outlicensing Agreement [***] .                   (c)  Territory   Outlicensing   Agreements .   Each  Territory            Outlicensing  Agreement  shall  provide  that  any  milestones  and  royalties            shall be paid to Licensee.  Licensee will pay OMT the following payments            per  each  Antibody  that  is  subject  to  such  Territory  Outlicensing            Agreement:                        (i)   For  each  Territory  Outlicensing  Agreement*  that            Licensee  enters  into  prior  to  entering  into  the  third  Outlicensing            Agreement  that  is  an  Ex-China  Outlicensing  Agreement  or  a  Territory            Licensing Agreement:               Execution of such Territory Outlicensing Agreement $1,000,000              Delivery   of   Antibodies   Production   Cell-Line   to   the $2,000,000              Territory Outlicensee              Initiation  of  the  first  Phase  2  Trial  for  each  Antibody $2,000,000              that   is   subject   to   such   Territory   Outlicensing              Agreement              Acceptance  of  a  Regulatory  Approval  Application  for $5,000,000              each   Antibody   that   is   subject   to   such   Territory              Outlicensing Agreement              Approval   of   a   Regulatory   Approval   Application   for $3,000,000              each   Antibody   that   is   subject   to   such   Territory              Outlicensing Agreement                       [***]             *     For clarity, the payments in the table above shall be multiplied by the            number  of  Antibodies  that  are  subject  to  such  Territory  Outlicensing            Agreement.                                      11  US-DOCS\102805237.1102810702.2 

 

                      (ii)  For  each  Territory  Outlicensing  Agreement*  that            Licensee enters into after entering into the second Outlicensing Agreement            that  is  an  Ex-China  Outlicensing  Agreement  or  a  Territory  Licensing            Agreement:               Execution of such Territory Outlicensing Agreement $1,000,000              Delivery   of   Antibodies   Production   Cell-Line   to   the $1,000,000              Territory Outlicensee              Initiation  of  the  first  Phase  1  Trial  for  each  Antibody $1,000,000              that   is   subject   to   such   Territory   Outlicensing              Agreement              Initiation  of  the  first  Phase  2  Trial  for  each  Antibody $2,000,000              that   is   subject   to   such   Territory   Outlicensing              Agreement              Acceptance  of  a  Regulatory  Approval  Application  for $5,000,000              each   Antibody   that   is   subject   to   such   Territory              Outlicensing Agreement              Approval   of   a   Regulatory   Approval   Application   for $3,000,000              each   Antibody   that   is   subject   to   such   Territory              Outlicensing Agreement             [***]             *     For clarity, the payments in the table above shall be multiplied by the            number  of  Antibodies  that  are  subject  to  such  Territory  Outlicensing            Agreement.”  14.   Section  5.2  of  the  Agreement  shall  be  deleted  in  its  entirety  and  replaced  with  the       following:                   “(a) For  any  Product  that  is  sold  by  or  on  behalf  of  Licensee  in            China   or   by   or   on   behalf   of   a   China   Outlicensee   (that   is  including   any            China  Plus  Territory  for  Existing  Antibodies ),  Licensee  shall  pay  to  OMT            a  royalty   of  three   percent   (3%) [***]   of   all   Net   Sales   of   such   Product            made by or on behalf of Licensee in China or by or on behalf of such China            Outlicensee during the applicable Royalty Term for such Product.                   (b)  For   any   Product   that   is   sold   by   or   on   behalf   of   Licensee            outside  of  China  or  by  or  on  behalf  of  an  ex-China  Outlicensee,  Licensee         [***]  Certain information on this page has been omitted and filed separately with the       Commission.  Confidential treatment has been requested with respect to the       omitted portions.                                     12  US-DOCS\102805237.1102810702.2 

 

           shall   pay   to   OMT   a   royalty   of:    (i)  three   percent   (3%) [***]   of   all            worldwide   Net   Sales   of   such   Product  made  by  or  on  behalf  of  Licensee            outside  of  China  or  by  or  on  behalf  of  such  ex-China  Outlicensee  that  are            less  than  or  equal  to  $2  Billion [***]  U.S.  dollars  in  each  Calendar  Year,            and   (ii)  four   percent   (4%) [***]   of   all   worldwide   Net   Sales   of   such            Product   made   by   or   on   behalf  of  Licensee  outside  of  China  or  by  or  on            behalf  of  such  ex-China  Outlicensee  that  are  greater  than  $2  Billion [***]            U.S.   dollars   in   each   Calendar   Year;   in   each   of   (i)   and   (ii),   during   the            applicable   Royalty   Term   for   such   Product.    For   purposes   of   this            Agreement, “ Calendar Year ” means each year commencing on January 1st            and ending on December 31st.                   (c)  For  any  Product  that  is  sold  by  or  on  behalf  of  a  Territory            Outlicensee,  Licensee  shall  pay  to  OMT  a  royalty  of:   (i)  three  percent            (3%) [***]  of  all  Net  Sales  of  such  Product  made  by  or  on  behalf  of  such            Territory  Outlicensee  in  China;  and  (ii)  (A)  three  percent  (3%) [***]  of            all   worldwide   Net   Sales   of   such   Product   made   by   or   on   behalf   of   such            Territory   Outlicensee   outside   of   China   that   are   less   than   or   equal   to  $2            Billion [***]   U.S.   dollars   in   each   Calendar   Year,   and   (B)  four   percent            (4%) [***]   of   all   worldwide   Net   Sales   of   such   Product   made   by   or   on            behalf  of  such  Territory  Outlicensee  outside  of  China  that  are  greater  than            $2  Billion  [***]  U.S.  dollars  in  each  Calendar  Year;  in  each  of  (i)  and  (ii),            during the applicable Royalty Term for such Product.                   (d)  Within   sixty   (60)   days   after   the   end   of   each   calendar            quarter,   Licensee   shall   deliver   to   OMT,   together   with   the   applicable            royalty   payment   due   under   Sections   5.2(a)   and   (b),   a   detailed   written            report  (in  a  form  reasonably  acceptable  to  OMT)  on  a  country-by-country            basis,   of   Net   Sales   for   such   Product   for   such   calendar   quarter   (if   any),            including   identification   of   each   Selling   Party   and   an   itemization   of   all            applicable  Permitted  Deductions  taken;  provided  that,  if  Licensee  has  not            received  royalties  on  such  sales  made  during  such  calendar  quarter  by  any            Outlicensee,  Licensee  shall  be  permitted  to  delay  its  payment  obligation  to            OMT   under   this  Section  5.2(d),  above,  solely  with  respect  to  such  sales            made  by  such  Outlicensee  to  the  date  that  is  not  later  than  sixty  (60)  days            after   the   end   of   the   calendar   quarter   in   which   Licensee   received   such            royalties   from   such   Outlicensee;   provided,   further,   that   if   such   payment            deadline  is  extended  by  three  (3)  calendar  quarters,  then  Licensee  shall  be            obligated  to  pay,  within  sixty  (60)  days  after  the  end  of  such  third  (3rd)            calendar  quarter,  the  royalties  that  are  payable  under  Sections  5.2(a)  and         [***]  Certain information on this page has been omitted and filed separately with the       Commission.  Confidential treatment has been requested with respect to the       omitted portions.                                     13  US-DOCS\102805237.1102810702.2 

 

           (b)   based   on   such   sales   by   such   Outlicensee   regardless   of   whether            Licensee   has   received   royalties   on   such   sales   from   such   Outlicensee.   In            addition,   within   twenty-five   (25)   days   after   the   end   of   each   calendar            quarter,  Licensee  will  deliver  to  OMT  a  preliminary  report  documenting            the estimated total sales of all Products during such calendar quarter. ”  15.   Section  8.1  of  the  Agreement  shall  be  deleted  in  its  entirety  and  replaced  with  the       following:                   “Indemnification  of  Licensee . Subject to Section 8.3 below, OMT            agrees  to  indemnify,  hold  harmless  and  defend  Licensee,  its  affiliates,            directors,  officers,  licensors,  employees  and  agents  (each  a  “Licensee            Indemnitee ”) from and against any and all losses, damages, liabilities, costs            and  expenses  (including  reasonable  attorneys’  fees and  expenses)            (collectively,  “Losses ”)  payable  to  unaffiliated  third  parties,  incurred by            Licensee Indemnitees in connection with any and all suits, investigations,            claims or demands of a third party (collectively, “Third  Party  Claims ”) to            the  extent  arising  from  any  alleged  infringement  or  misappropriation  of            such third party’s intellectual property rights arising from or occurring as a            result  of  the  use  by  Licensee  or any Outlicensee of Animals to generate            Antibodies.  Notwithstanding anything to the contrary herein, in no event            shall OMT be obligated to indemnify Licensee Indemnitees for any Third            Party Claims to the extent such Third Party Claims (i) would be subject to            indemnification  by  Licensee  pursuant  to  Section  8.2,  or  (ii)  arise  in            connection with any modifications of the Animals, or any combination of            the Animals with any other material or organism, in each case not made by            OMT, or (iii) arising in connection with any use of the Animals that is not            strictly in accordance with this Agreement.”  16.   Section  8.2  of  the  Agreement  shall  be  deleted  in  its  entirety  and  replaced  with  the       following:                   “Indemnification  of  OMT . Subject to Section 8.3 below, Licensee            agrees  to  indemnify,  hold  harmless  and  defend  OMT, its  affiliates,            directors,  officers,  licensors,  employees  and  agents  (each  an  “OMT            Indemnitee”) from and against all Losses incurred by OMT Indemnitees in            connection with any and all Third Party Claims to the extent arising from            (a) the production, use, marketing, or sale of Antibodies or Products by            Licensee or any Outlicensee (or either of their licensees), and (b) the use            of any Animals that is not strictly in accordance with this Agreement.”  17.   Section  9.4  of  the  Agreement  shall  be  deleted  in  its  entirety  and  replaced  with  the       following:                   “Termination   for   IP   Challenge .  To  the  fullest  extent  allowed  by            applicable law, OMT shall have the right, upon written notice to Licensee,                                     14  US-DOCS\102805237.1102810702.2 

 

           to terminate in full (a) this Agreement, in the event that Licensee directly            challenges  in  any  legal  or  administrative  proceeding  the  patentability,            enforceability,  or  validity  of  any  of  OMT’s  intellectual  property  rights            covering the Animals, or (b) any Outlicensee’s Outlicensing Agreement, in            the  event  that  such  Outlicensee  directly  challenges  in  any  legal  or            administrative  proceeding  the  patentability,  enforceability,  or  validity  of            any of OMT’s intellectual property rights covering the Animals; provided            that  OMT  shall  have  no  right  to  terminate  any  Outlicensing  Agreement            under this Section 9.4 for any challenge by a Outlicensee if such challenge            is dismissed within sixty (60) days of OMT’s notice to Licensee under this            Section 9.4 and not thereafter continued.”  18.   In the event of any discrepancies or conflicting terms between this Amendment No. 1 and       the Agreement, the terms of this Amendment No. 1 shall control.  19.   The  Agreement  and  this  Amendment  No.  1  represent  the  complete  and  entire       understanding between the Parties regarding the subject matter hereof and supersede all       prior or contemporaneous negotiations, representations or agreements, either written or       oral, regarding this subject matter.  20.   This Amendment No. 1 and the rights and obligations of the Parties hereunder shall be       governed  by  the  laws  of  the  State  of  California, without regard to the conflicts of law       provisions thereof.  21.   This Amendment No. 1 may be executed in counterparts, each of which shall be deemed       an original and, together, one and the same instrument.  A facsimile, PDF or any other       copy of this Amendment No. 1 signed by a Party is binding upon the signing Party to the       same  extent  as  the  original  of  the  signed  Amendment  No.  1,  and  may  be  delivered       electronically.  22.   Except  for  the  matters  set  forth  in  this  Amendment  No.  1,  all  other  terms  of  the       Agreement shall remain unchanged and in full force and effect.                             [Signature Page Follows ]                                      15  US-DOCS\102805237.1102810702.2 

 

IN W ITNESS  W HEREOF , the Parties hereto have duly executed this Amendment No. 1 as of the Amendment No. 1 Effective Date.  OMT, INC.                               WUXI BIOLOGICS (HONG KONG)                                         LIMITED By:    /s/ Matthew Korenberg            By:   /s/ Chris Chen Name:  Matthew Korenberg                Name: Chris Chen Title: CFO                              Title: Executive director and CEO                                      16  US-DOCS\102805237.1102810702.2 

 

                       Summary report:    Litéra® Change-Pro TDC 10.1.0.400 Document comparison done on                      8/7/2018 11:51:08 AM Style name: L&W with Moves Intelligent Table Comparison: Active Original DMS: iw://US-DOCS/US-DOCS/102810702/1 Modified DMS: iw://US-DOCS/US-DOCS/102810702/2 Changes: Add                                            36 Delete                                         18 Move From                                      0 Move To                                        0 Table Insert                                   0 Table Delete                                   4 Table moves to                                 0 Table moves from                               0 Embedded Graphics (Visio, ChemDraw, Images etc.) 0 Embedded Excel                                 0 Format changes                                 0 Total Changes:                                 58

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