Document:

EX-10.3

 Exhibit 10.3 

TERMINATION AGREEMENT 

This TERMINATION AGREEMENT (this “Agreement”) is made and entered into as of 8th August, 2017 (the “Termination Date”), by and between Pfenex Inc., a Delaware corporation with a principal place of business at 10790 Roselle Street, San Diego, California 92121
(“Pfenex”), and Stelis Biopharma Private Limited, an India corporation with a principal place of business at Plot No. 293, Bommasandra, Jigani Link Road, Jigani Industrial Area, Anekal Taluk, Bengaluru – 560 105 , India
(“Stelis”). Pfenex and Stelis may each be referred to herein as a “Party” or collectively as the “Parties.” 

BACKGROUND 

A.    Pfenex and Agila entered into that certain Joint Development and License Agreement dated as of December 31,
2012 (collectively, the “Joint Development Agreement”), pursuant to which Pfenex and Agila agreed to collaborate with each other to develop certain therapeutic biological products manufactured using the Pfenex Expression Technology
through the completion of the first Phase I Clinical Trial (each, as defined therein); 
 B.    In furtherance thereof,
Pfenex and Agila entered into that certain Joint Venture Agreement dated as of March 7, 2013 (collectively, the “Joint Venture Agreement”), pursuant to which Pfenex and Agila agreed to establish a joint venture company to
further develop and commercialize one or more therapeutic biological products after the completion of the first Phase I Clinical Trial; and 

C.    Pursuant to certain organizational restructuring, Agila merged with its parent holding entity Stelis and thus Stelis
assumed the obligations under the Joint Development Agreement and Joint Venture Agreement. 
 The Parties now mutually desire to terminate
the Joint Development Agreement and the Joint Venture Agreement, all on the terms and conditions of this Agreement. 
 NOW THEREFORE,
in consideration of the mutual promises, covenants and agreements set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 

1.    Termination of the Joint Development Agreement. Pfenex and Stelis hereby agree that, as of the
Termination Date: 
 (a)    The Joint Development Agreement is hereby terminated, null and void and of no further force
or effect; excepting, however, Articles 1 (Definitions), 9 (Confidentiality) (solely for five (5) years) and 14 (General Provisions) and Sections 10.3 (Collaboration Technology), 10.4 (Pfenex Improvements) and 10.5 (Agila Improvements). For the
avoidance of doubt, all licenses granted by either Party under Section 10.2 of the Joint Development Agreement shall terminate as of the Termination Date. 

 (b)    Pfenex hereby grants to Stelis a fully-paid, irrevocable, non-exclusive license (with the right to grant and authorize sublicenses) under all Pfenex Collaboration Technology and Pfenex Improvements (each, as defined in the Joint Development Agreement) relating to Betaseron® (Interferon beta-1b). Stelis hereby grants to Pfenex a fully-paid, irrevocable, non-exclusive license (with the
right to grant and authorize sublicenses) under all Agila Collaboration Technology and Agila Improvements (each, as defined in the Joint Development Agreement) relating to Betaseron®
(Interferon beta-1b). All rights and licenses granted under this Agreement are limited to the scope expressly granted. Accordingly, except for the rights expressly granted under this Agreement, no right, title
or interest of any nature whatsoever is granted whether by implication, estoppel, reliance or otherwise by either Party to the other Party. 

(c)    The Joint Venture Agreement is hereby terminated, null and void and of no further force or effect. For the
avoidance of doubt, all licenses granted by either Party under Section 11.2 of the Joint Venture Agreement shall terminate as of the Termination Date. 

(d)    The foregoing termination of the Joint Development Agreement and the Joint Venture Agreement shall be deemed to be
termination mutually agreed upon by and between the Parties, and no Party shall have any responsibility or liability as a result of such termination. The Parties hereby waive all rights to notice of termination as may be otherwise provided under the
Joint Development Agreement, the Joint Venture Agreement or Applicable Laws (as defined in the Joint Development Agreement). 

(e)    Each Party (on behalf of itself and all related persons) hereby irrevocably waives and releases the other of and
from all claims, liabilities and causes of action of every type that has arisen or may hereafter arise out of the Joint Development Agreement or the Joint Venture Agreement, including the breach thereof. 

2.    Confidentiality. The Parties shall hold in confidence the information contained in this
Agreement, and all information related to this Agreement, which is not otherwise known to the public, shall be held by each Party as confidential and proprietary information and shall not be disclosed without the prior written consent of the other
Party. Accordingly, the Parties shall not discuss with, or provide nonpublic information to, any Third Party (as defined in the Joint Development Agreement) (except for such Party’s or its Affiliates’ respective directors, officers,
employees, attorneys, accountants and other consultants and professional advisors) concerning this Agreement, except: (a) as required in filings with any governmental authority or any judicial, administrative or arbitration proceedings as
determined by such Party’s legal counsel; or (b) pursuant to public announcements made with the prior written approval of the Parties. 

3.    Representations and Warranties. Each Party represents and warrants that it has the power and
authority to enter into this Agreement, and has obtained all necessary corporate and other approvals to enter into and execute this Agreement. 

4.    Limitation of Liability. NEITHER PARTY WILL BE LIABLE TO THE OTHER PARTY FOR INDIRECT,
INCIDENTAL, CONSEQUENTIAL OR SPECIAL DAMAGES INCLUDING BUT NOT LIMITED TO LOST PROFITS ARISING FROM OR RELATING TO THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH DAMAGES. 

  
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 5.    Merger of Understandings; Amendment. This
Agreement contains the entire agreement between the Parties regarding the subject matter hereof and all prior negotiations and understandings between the Parties are deemed to be merged into this Agreement. No agreement or understanding varying or
extending this Agreement shall be binding upon either Party hereto, unless set forth in a writing which specifically refers to the Agreement signed by duly authorized officers or representatives of the respective Parties, and the provisions hereof
not specifically amended thereby shall remain in full force and effect. 
 6.    No Third Party
Beneficiaries. None of the provisions contained in this Agreement are intended by the Parties hereto, nor shall they be deemed, to confer any benefit on any Third Party. 

7.    Incorporation by Reference. The following Sections of the Joint Development Agreement are
incorporated herein by reference, except that any reference to “Agreement” therein shall mean this Agreement for such purposes: Sections 14.2, 14.3, 14.5, 14.6 (except that the details of Stelis be as below), 14.8, 14.9, 14.10 and 14.13.

 For Stelis        :         Stelis
Biopharma Private Limited 
     Plot No. 293, Bommasandra, Jigani Link Road, 

    Jigani Industrial Area, Anekal Taluk, 

    Bangalore – 560 105, India 

    Attention: Mr. Joe Thomas 

    Email: Joe.Thomas@stelis.com 

    Phone: + 91 80 6784 0700 

8.    Counterparts. This Agreement may be executed in any number of counterparts with the same effect
as if all Parties had signed the same document. All such counterparts shall be deemed an original, shall be construed together and shall constitute one and the same instrument. Signatures to this Agreement delivered by facsimile or similar
electronic transmission (e.g., portable document format (PDF)) will be deemed binding as originals. 
 [Signatures on following page]

  
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 TERMINATION AGREEMENT 

IN WITNESS WHEREOF, the Parties hereto have caused their duly authorized representatives to execute this Agreement as of the Termination Date.

  

			
	PFENEX INC.
		
	By:	 	 /s/ Patrick Lucy

	Name:	 	 Patrick Lucy 

	Title:	 	 CBO

	
	STELIS BIOPHARMA PRIVATE LIMITED
		
	By:	 	 /s/ Joe Thomas

	Name:	 	 Joe Thomas

	Title:	 	 CEOMay 17, 2017

Everest International Reinsurance, Ltd.

Seon Place, 4th Floor

141 Front Street

Hamilton, HM 19

P.O. Box HM 845

Telecopy Number: (441) 295-4828

Attention: Sanjoy Mukherjee

Ladies and Gentlemen:

Ref: Amendment Agreement – Standby Letter of Credit Facility

This Letter Agreement (the "Amendment Agreement") is made as of May 17, 2017 between Lloyds Bank plc (the "Bank" or "us") and Everest International Reinsurance, Ltd., a company organized under the laws of Bermuda (the "Company", "you" or "your") in connection to that certain: (i) letter agreement dated as of November 9, 2015 between the Bank and the Company (as the same may have been previously amended, modified, supplemented or otherwise restated the "Facility Letter Agreement"), (ii) Master Agreement for Standby Letters of Credit and Demand Guarantees dated as of November 9, 2015 between the Bank and the Company (as the same may have been previously amended, modified, supplemented or otherwise restated the "Master Agreement"), (iii) the Pledge and Security Agreement dated as of November 9, 2015 (as the same may have been previously amended, modified, supplemented or otherwise restated the "Pledge and Security Agreement") and (iv) Account Control Agreement, dated as of November 9, 2015 made among the Company, the Bank and The Bank of New York Mellon (as the same may have been amended, modified, supplemented or otherwise restated the "Account Control Agreement" together with, the Facility Letter Agreement, the Master Agreement and the Pledge and Security Agreement, the "Existing Documents"). Unless otherwise specified herein, all terms defined in this Amendment Agreement shall have the meanings as provided for in the relevant Related Documents.

You have advised us of your intention, by way of amendment, to increase the aggregate total amount of the committed line of credit provided for in the Facility Letter Agreement   (as such amount may be reduced as hereinafter provided) bilateral FAL facility in support of your obligation to provide Funds at Lloyd's to support your and any Other Party's business assumed as a member of certain syndicates at Lloyd's for the 2017 Year of Account.

In consideration of the mutual covenants and agreements herein contained the parties hereto agree and covenant to amend the Existing Documents as follows:

Amendment:

Facility Letter

	
1.

	
Any and all references to "Related Documents", in any Related Documents, shall be read to include this Amendment Agreement.

	
2.

	
The reference to "£140,000,000" in the first paragraph of the Facility Letter Agreement is deleted and replaced by "£145,000,000".

 

 

 

Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Telephone: 020 7626 1500.Authorised by the Prudential 

Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under number 119278.

Lloyds Bank plc is covered by the Financial Services Compensation Scheme and the Financial Ombudsman Service. (Please note that due to the schemes' eligibility 

criteria not all Lloyds Bank business customers will be covered by these schemes.)

Conditions Precedent:

This Amendment Agreement shall become effective and the effective date shall occur upon the satisfaction of the following conditions (and the documents required to be delivered shall be in form and substance satisfactory to the Bank) (the first date on which all of the following conditions are satisfied or waived by the Bank, the "Effective Date" but which must occur on or before May 17, 2017):

	
1.

	
delivery of this Amendment Agreement duly executed by the Company;

	
2.

	
delivery of copies of the organic documents of the Company certified as true and correct and up to date by the Secretary or Assistant Secretary of the Company or that the documents previously delivered by the Company pursuant to the Facility Letter Agreement have not changed;

	
3.

	
delivery of a certificate of the Secretary or Assistant Secretary of the Company, attaching and certifying copies of the resolutions of its board of directors authorizing the execution and delivery of the Amendment Agreement and the performance of the transactions contemplated herein and therein, and certifying the name, title, and true signature of each officer of the Company authorized to execute the Amendment Agreement and the other Related Documents or that the documents previously delivered by the Company pursuant to the Facility Letter Agreement have not changed;

	
4.

	
delivery of a good standing certificate or comparable certificate relating to the Company's good standing under the laws of the jurisdiction of its organization if such is available in such jurisdiction;

	
5.

	
satisfactory completion by the Bank of all "know your customer" checks;

	
6.

	
delivery of favorable opinions of counsel to the Company addressed to the Bank and covering matters customary for a transaction of this nature;

	
7.

	
Evidence satisfactory to the Bank that all necessary or appropriate steps have been taken (including the filing of a UCC-1 financing statement and the registration of a charge under Bermuda law) have been taken in order to perfect the lien and security interest of the Bank in the collateral pledged to the Bank pursuant to the Pledge and Security Agreement together with satisfactory UCC and Bermuda lien searches;

	
8.

	
The Bank shall have received evidence of acceptance by CT Corporation System of its appointment of agent of service of process for the Company pursuant to Section 19 of the Master Agreement or that the documents previously delivered by the Company pursuant to the Facility Letter Agreement have not changed;

	
9.

	
No Event of Default under the Master Agreement shall have occurred and be continuing; and

		10.	
The representations and warranties set out in the Existing Documents are true and correct in all respects as if made on the Effective Date except to the extent they refer to an earlier date in which case they shall be true and correct as of such date.

Entire Agreement; Restatement:

This Amendment Agreement and the Existing Agreements constitute the entire agreement and understanding of the parties with respect to its subject matter and supersedes all oral communications and prior writings (except as otherwise provided herein) with respect thereto

Save as amended hereby, all terms and conditions of the Existing Documents will continue in full force and effect. References to the Existing Documents will be to the Existing Documents, as amended by this Amendment Agreement.

Counterparts:

2

This Agreement may be executed by the parties hereto individually, or in any combination of the parties hereto, in two or more counterparts, each which shall be deemed an original, but all of which together shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page of this Amendment Agreement by any electronic imaging means (including portable document format) shall be effective as delivery of a manually executed counterpart of this Amendment Agreement; provided, however, that, the Bank shall require any request for a Letter of Credit delivered via email to attach such request, signed by authorized signatories, in portable document format.

Governing Law:

This Amendment Agreement shall be governed by, and construed in accordance with, the laws of the State of New York.

[Signature page to follow]

 

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	 	 	 	Yours sincerely,

LLOYDS BANK PLC

	 
	 	 	 	By: 	/S/ ERIN WALSH	 
	 	 	 	
Name:  Erin Walsh

Title:      Assistant Vice President

               Transaction Execution

               Category A

               W004

	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	By: 	
/S/ DAVEN POPAT

	 
	 	 	 	

Name:  Daven Popat

Title:      Senior Vice President

               Transaction Execution

               Category A

               P003

	 
	 	 	 	 	
 

	 
	 	 	 	 	 	 
	Acknowledged and agreed (in counterpart) this 17th day of May, 2017	 	 	 	 
	 	 	 	 	 	 
	EVEREST INTERNATIONAL REINSURANCE, LTD.	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:	
/S/ PATRICIA GORDON-PAMPLIN

	 	 	 	 
	

Name:  Patricia Gordon-Pamplin

Title:      Vice President and

                  Chief Accountant

	 	 	 	 

 

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