Document:

armp_Ex10_11

		
			Exhibit 10.11
		

		
			CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***]
HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE
COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED.
		

			
					
						

					
					
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			RESEARCH COLLABORATION AND OPTION TO LICENSE AGREEMENT
		

		
			by and between
		

		
			SYNTHETIC GENOMICS, INC.
		

		
			and
		

		
			MERCK SHARP & DOHME CORP.
		

		
			 
		

		
			 
		

		

		 

		

			 

		

	
					
						

					
						

					
					
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			TABLE OF CONTENTS
		

			
					
						10

					
					
						 

					
					
						 

				
	
					
						Article 1 DEFINITIONS. 

					
1
				
	
					
						Article 2 RESEARCH PROGRAM

					
10
				
	
					
						2.1

					
					
						General

					
10
				
	
					
						2.2

					
					
						Performance of Research Plan

					
10
				
	
					
						2.3

					
					
						Joint Steering Committee

					
10
				
	
					
						2.4

					
					
						Alliance Managers

					
11
				
	
					
						2.5

					
					
						Exchange of Information

					
12
				
	
					
						2.6

					
					
						Records and Reports

					
12
				
	
					
						2.7

					
					
						Research Information and Inventions

					
12
				
	
					
						2.8

					
					
						Term of the Research Program(s) 

					
13
				
	
					
						2.9

					
					
						Compliance with Law and Ethical Business Practices

					
13
				
	
					
						2.10

					
					
						Animal Research

					
14
				
	
					
						2.11

					
					
						Materials

					
14
				
	
					
						Article 3 OPTION TO LICENSE; LICENSE; DEVELOPMENT AND COMMERCIALIZATION. 

					
15
				
	
					
						3.1

					
					
						Option

					
15
				
	
					
						3.2

					
					
						Following Option Exercise by Merck. 

					
15
				
	
					
						3.3

					
					
						No Implied Licenses

					
16
				
	
					
						3.4

					
					
						No Grant of Inconsistent Rights by Company

					
16
				
	
					
						3.5

					
					
						Sublicenses

					
16
				
	
					
						3.6

					
					
						Development and Commercialization

					
17
				
	
					
						3.7

					
					
						Exclusivity

					
17
				
	
					
						Article 4 CONFIDENTIALITY AND PUBLICATION. 

					
17
				
	
					
						4.1

					
					
						Nondisclosure Obligation

					
17
				
	
					
						4.2

					
					
						Publication

					
19
				
	
					
						4.3

					
					
						Publicity/Use of Names

					
19
				
	
					
						Article 5 PAYMENTS; ROYALTIES AND REPORTS

					
20
				
	
					
						5.1

					
					
						Payments During the Research Program

					
20
				
	
					
						5.2

					
					
						Payments Upon and After Option Exercise (if any) 

					
21
				
	
					
						Article 6 REPRESENTATIONS AND WARRANTIES

					
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						6.1

					
					
						Representations and Warranties of Each Party

					
27
				
	
					
						6.2

					
					
						Company Representations and Warranties

					
28
				
	
					
						6.3

					
					
						Warranty Disclaimer

					
28
				
	
					
						Article 7 PATENT PROVISIONS. 

					
28
				
	
					
						7.1

					
					
						Filing, Prosecution and Maintenance of Patents

					
28
				
	
					
						7.2

					
					
						Interference, Derivation, Opposition, Reexamination, Reissue, Supplemental Examination, Inter Partes Review and Post-Grant Review Proceedings

					
33
				
	
					
						7.3

					
					
						Enforcement and Defense

					
34
				
	
					
						Article 8 TERM AND TERMINATION

					
36
				
	
					
						8.1

					
					
						Term and Expiration

					
36
				
	
					
						8.2

					
					
						Termination by Merck

					
36
				
	
					
						8.3

					
					
						Termination for Cause

					
36
				
	
					
						8.4

					
					
						Effects of Termination

					
38
				
	
					
						8.5

					
					
						Effect of Expiration or Termination; Survival

					
38
				
	
					
						Article 9 MISCELLANEOUS

					
39
				
	
					
						9.1

					
					
						Indemnification

					
39
				
	
					
						9.2

					
					
						Limitation of Liability

					
39
				
	
					
						9.3

					
					
						Force Majeure

					
40
				
	
					
						9.4

					
					
						Assignment

					
40
				
	
					
						9.5

					
					
						Use of Affiliates

					
40
				
	
					
						9.6

					
					
						Severability

					
40
				
	
					
						9.7

					
					
						Notices

					
40
				
	
					
						9.8

					
					
						Applicable Law

					
41
				
	
					
						9.9

					
					
						Dispute Resolution

					
41
				
	
					
						9.10

					
					
						Entire Agreement; Amendments

					
42
				
	
					
						9.11

					
					
						Headings

					
43
				
	
					
						9.12

					
					
						Independent Contractors

					
43
				
	
					
						9.13

					
					
						Waiver

					
43
				
	
					
						9.14

					
					
						Waiver of Rule of Construction

					
43
				
	
					
						9.15

					
					
						Certain Conventions. 

					
43
				
	
					
						9.16

					
					
						Business Day Requirements

					
43
				
	
					
						9.17

					
					
						Counterparts

					
43
				

		
			 
		

		
			 
		

		

		 

		

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			RESEARCH COLLABORATION AND OPTION TO LICENSE AGREEMENT
		

		
			This Research Collaboration and Option to License Agreement (this “Agreement”) is effective as of May 22, 2017 (the “Effective Date”) and is entered into by and between SYNTHETIC GENOMICS, INC., a corporation organized and existing under the laws of Delaware (“Company”), and MERCK SHARP & DOHME CORP., a corporation organized and existing under the laws of New Jersey (“Merck”).
		

		
			 
		

		
			RECITALS:
		

		
			WHEREAS, Company has developed and is the owner of certain proprietary technology relating to engineering bacteriophages;
		

		
			WHEREAS, Merck is interested in working with the Company to generate a [***] bacteriophage targeting [***] and, [***]
		

		
			WHEREAS, through the [***] Research Plan (as defined below), and, if entered into pursuant to the terms hereof, the [***] Research Plan (as defined below), the Company will endeavor to generate bacteriophages meeting certain criteria as set forth herein; and
		

		
			WHEREAS, during the term of the License Option (as defined below), Merck shall have the exclusive option to exclusively license any such bacteriophage meeting such criteria.
		

		
			NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants contained herein, the receipt and sufficiency of which are hereby acknowledged, Company and Merck hereby agree as follows:
		

		
			ARTICLE 1   DEFINITIONS.
		

		
			Unless specifically set forth to the contrary herein, the following terms, whether used in the singular or plural, shall have the respective meanings set forth below.
		

		
			1.1       “AAALAC” means the Association for Assessment and Accreditation of Laboratory Animal Care International.
		

		
			1.2       “Act” means, as applicable, the United States Federal Food, Drug and Cosmetic Act, 21 U.S.C. §§ 301 et seq., and/or the Public Health Service Act, 42 U.S.C. §§ 262 et seq., as amended from time to time.
		

		
			1.3       “Affiliate” means (i) any corporation or business entity of which, now or hereafter, fifty percent (50%) or more of the securities or other ownership interests representing the equity, the voting
		

		
			 
		

		
			 
		

		
			

		 

		

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			stock or general partnership interest are owned, controlled or held, directly or indirectly, by Merck or Company; or (ii) any corporation or business entity which, now or hereafter, directly or indirectly, owns, controls or holds fifty percent (50%) (or the maximum ownership interest permitted by law) or more of the securities or other ownership interests representing the equity, the voting stock or, if applicable, the general partnership interest, of Merck or Company. A corporation or entity shall be deemed to be an Affiliate only during the period for which it meets the foregoing criteria.
		

		
			1.4       “Agreement” has the meaning given such term in the preamble to this document.
		

		
			1.5       “Agreement Payments” has the meaning set forth in Section 5.2.7.
		

		
			1.6       “Alliance Manager” has the meaning set forth in Section 2.4.
		

		
			1.7       “Calendar Quarter” means the respective periods of three (3) consecutive calendar months ending on March 31, June 30, September 30 and December 31.
		

		
			1.8       “Calendar Year” means each successive period of twelve (12) months commencing on January 1 and ending on December 31.
		

		
			1.9       “Clinical Trial” means a Phase I Clinical Trial, Phase II Clinical Trial, Phase IIb Clinical Trial, Phase III Clinical Trial, and/or Post-approval Clinical Trial.
		

		
			1.10     “Code” has the meaning set forth in Section 8.3.3.
		

		
			1.11     “Combination Product” means a Product that includes one or more pharmaceutically active ingredients other than Product Candidate in combination with Product Candidate.
		

		
			1.12     “Commercially Reasonable Efforts” means, with respect to the efforts to be expended by a Party with respect to any objective, such reasonable and diligent efforts to accomplish such objective as such party would normally use to accomplish a similar objective under similar circumstances, but in any event no less than the efforts consistent with those used by similarly situated companies in the pharmaceutical industry.  It is understood and agreed that with respect to the research, development and sale of Product by either Party, such efforts shall be substantially equivalent to those efforts and resources commonly used by such Party for pharmaceutical or biological products owned by such Party or to which such Party has rights (and in any event no less than the efforts consistent with those used by similarly situated companies in the pharmaceutical industry), which product is at a similar stage in its development or product life and is of similar market potential taking into account efficacy, safety, approved labeling, the competitiveness of alternative products in the marketplace, the patent and other proprietary position of the product, the likelihood of regulatory approval given the Regulatory Authority involved, the profitability of the product including the amounts payable to licensors of patent or other intellectual property rights, alternative products, other risks associated with the development or commercialization of the product and other relevant factors.  Commercially Reasonable Efforts shall be determined on a market-by-market basis for a particular Product, and it is anticipated that the level of effort will be different for different markets, and will change over time, reflecting among other things changes in the status of the Product and the market(s) involved.
		

		
			
		

		
			

		 

		

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			1.13     “Committee” has the meaning set forth in Section 2.3.
		

		
			1.14     “Company” has the meaning given such term in the preamble to this Agreement.
		

		
			1.15     “Company Background IP” means (a) the Patent Rights set forth on Schedule 1.12 and know-how owned or controlled by Company or any of its Affiliates as of the Effective Date and (b) the Company Platform Improvements.
		

		
			1.16     “Company Indemnified Parties” has the meaning set forth in Section 9.1.1.
		

		
			1.17     “Company Information and Inventions” means all protocols, formulas, data, Inventions (but not Company Platform Improvements), know-how and trade secrets, patentable or otherwise, resulting from the Research Program developed or invented solely by employee(s) of Company and/or its Affiliates, and/or a Third Party acting on behalf of Company and/or its Affiliates and not employed by Merck and/or its Affiliates.
		

		
			1.18     “Company Know-How” means all information and materials, including but not limited to discoveries, improvements, processes, methods, protocols, formulas, data, inventions (including without limitation Company Information and Inventions and Company’s rights in Joint Information and Inventions), know-how and trade secrets, patentable or otherwise (but excluding any Company Patent Rights in any of the foregoing), which during the term of this Agreement (i) are in the possession of, and owned or controlled by, Company or its Affiliates, (ii) are not generally known and (iii) are reasonably necessary for the manufacture, marketing, use or sale of Product Candidate or Product in the Territory.
		

		
			1.19     “Company Patent Rights” means Patent Rights that claim or cover Company Information and Inventions.
		

		
			1.20     “Company Platform Improvements” means all Inventions relating to an improvement or enhancement to any invention, process or technique claimed in or covered by the Patent Rights within clause (a) of the definition of Company Background IP, including to any invention, process or technique that relies upon or infringes any Patent Rights within clause (a) of the definition of Company Background IP.
		

		
			1.21     “Competitive Product” means, with respect to a particular Product that has received Marketing Authorization in a country, a product sold by a Third Party in such country of that contains the same bacteriophage, or a bioequivalent form thereof, as such Product resulting in substantially the same antibacterial mechanism of action and generating substantially the same pharmacological outcome with substantially the same relative magnitude.
		

		
			1.22     “Dispute” has the meaning set forth in Section 9.9.1.
		

		
			1.23     “Field” means the use of Product and Product Candidate for any and all purposes.
		

		
			1.24     “First Commercial Sale” means, with respect to any Product, the first sale for end use or consumption of such Product in a country that triggers a royalty payment to Company under this Agreement, excluding, however, any sale or other distribution for use in a Clinical Trial.
		

		
			
		

		
			

		 

		

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			1.25     “GLP” or “Good Laboratory Practice” means the applicable then-current standards for laboratory activities for pharmaceuticals or biologicals, as set forth in the Act and any regulations or guidance documents promulgated thereunder, as amended from time to time, together with any similar standards of good laboratory practice as are required by any Regulatory Authority in the Territory.
		

		
			1.26     “[***] Engineered Phage” means an engineered bacteriophage [***]pursuant to the criteria set forth in the [***] Research Plan.
		

		
			1.27     “[***] License Option” has the meaning set forth in Section 3.1.1.
		

		
			1.28     “[***] Option Term” has the meaning set forth in Section 3.1.1.
		

		
			1.29     “[***] Research Option” has the meaning set forth in Section 2.1.2.
		

		
			1.30     “[***] Research Plan” has the meaning set forth in Section 2.1.1.
		

		
			1.31     “[***] Research Term” has the meaning set forth in Section 2.8.
		

		
			1.32     “[***] Milestone 1” has the meaning set forth in Section 5.1.3.
		

		
			1.33     “[***] Milestone 2” has the meaning set forth in Section 5.1.3.
		

		
			1.34     “[***] Milestone 3” has the meaning set forth in Section 5.1.3.
		

		
			1.35     “[***] Milestone 4” has the meaning set forth in Section 5.1.3.
		

		
			1.36     “[***] Preclinical Milestones” has the meaning set forth in Section 5.1.3.
		

		
			1.37     “IND” means an Investigational New Drug application, Clinical Study Application, Clinical Trial Exemption, or similar application or submission for approval to conduct human clinical investigations filed with or submitted to a Regulatory Authority in conformance with the requirements of such Regulatory Authority.
		

		
			1.38     “Indemnified Party” has the meaning set forth in Section 9.1.3.
		

		
			1.39     “Indemnifying Party” has the meaning set forth in Section 9.1.3.
		

		
			1.40     “Indication” means a separate and distinct disease or medical condition in humans (i) which a Product that is in Clinical Trials is intended to treat, prevent and/or diagnose, and/or (ii) for which a Product has received Marketing Authorization based on a separate Clinical Trial, meaning that such Indication is contained in the Product’s labeling approved by a Regulatory Authority as part of the Marketing Authorization for such Product.
		

		
			1.41     “Information” means any and all information and data, including without limitation all Merck Know-How, all Company Know-How, and all other scientific, pre-clinical, clinical, regulatory, manufacturing, marketing, financial and commercial information or data, whether communicated
		

		
			
		

		
			

		 

		

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			in writing or orally or by any other method, which is provided by one Party to the other Party in connection with this Agreement.
		

		
			1.42     “Initiation” means, with respect to a Clinical Trial, the administration of the first dose to a human subject in such Clinical Trial.
		

		
			1.43     “Invention” means any process, method, composition of matter, article of manufacture, discovery or finding that is conceived and/or reduced to practice as a result of the Research Program.
		

		
			1.44     “In Vivo POC”, with respect to the [***] Research Plan, has the meaning set forth in subsection d. of “COMPANY deliverables” under “[***] Milestone 3: Proof-of-concept efficacy in a [***] animal model [***]” in the [***] Research Plan, and with respect to the [***] Research Plan, has the meaning set forth in subsection c. of “COMPANY deliverables” under “[***] Milestone 3: Proof-of-concept efficacy in a [***]animal model [***]” in the [***] Research Plan.
		

		
			1.45     “Joint Information and Inventions” means all protocols, formulas, data, Inventions (but not Company Platform Improvements), know-how and trade secrets, patentable or otherwise, resulting from the Research Program developed or invented jointly by employee(s) of Merck and/or its Affiliates, and/or a Third Party acting on behalf of Merck and/or its Affiliates, and by employee(s) of Company and/or its Affiliates, and/or a Third Party acting on behalf of Company and/or its Affiliates.
		

		
			1.46     “Joint Patent Rights” means Patent Rights that claim or cover Joint Information and Inventions.
		

		
			1.47     “License Option” has the meaning set forth in Section 3.1.
		

		
			1.48     “Major European Market” means anyone of the following countries:  the United Kingdom, France, Germany, Italy or Spain.
		

		
			1.49     “Major Market” means any one of the following countries: United States, Japan, the United Kingdom, France, Germany, Italy or Spain.
		

		
			1.50     “Marketing Authorization” means all approvals from the relevant Regulatory Authority necessary to market and sell a Product in any country (including without limitation all applicable pricing and governmental reimbursement approvals even if not legally required to sell Product in a country).
		

		
			1.51     “Materials” has the meaning set forth in Section 2.1.1.
		

		
			1.52     “Merck” has the meaning given such term in the preamble to this Agreement.
		

		
			1.53     “Merck Indemnified Parties” has the meaning set forth in Section 9.1.2.
		

		
			1.54     “Merck Information and Inventions” means all protocols, formulas, data, Inventions (but not Company Platform Improvements), know-how and trade secrets, patentable or otherwise, resulting from the Research Program developed or invented solely by employee(s) of Merck
		

		
			
		

		
			

		 

		

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			and/or its Affiliates, and/or a Third Party acting on behalf of Merck and/or its Affiliates, and not employed by Company and/or its Affiliates.
		

		
			1.55     “Merck Know-How” means all information and materials, including but not limited to discoveries, improvements, processes, methods, protocols, formulas, data, inventions (including without limitation Merck Information and Inventions and Merck’s rights in Joint Information and Inventions), know-how and trade secrets, patentable or otherwise, which during the term of this Agreement (i) are in Merck’s possession or control, (ii) are not generally known and (iii) are in Merck’s opinion necessary to Company in the performance of its obligations under the Research Program.
		

		
			1.56     “NDA” means a New Drug Application, Biologics License Application, Marketing Authorization Application, filing pursuant to Section 510(k) of the Act, or similar application or submission for Marketing Authorization of a Product filed with a Regulatory Authority to obtain marketing approval for a biological, pharmaceutical or diagnostic product in that country or in that group of countries.
		

		
			1.57     “Net Sales” means the gross invoice price (not including value added taxes, sales taxes, or similar taxes) of Product sold by Merck or its Related Parties to the first Third Party  (or, if not invoiced, amounts received by Merck or its Related Parties for the sale of Products to Third Parties) after deducting, if not previously deducted, from the amount invoiced or received the following items to the extent included in the gross invoiced sales price of such Product and not separately invoiced:
		

		
			1.57.1  trade and quantity discounts other than early payment cash discounts actually allowed and taken specifically with respect to the sales of Product;
		

		
			1.57.2  returns, rebates, chargebacks and other allowances for the Products actually allowed and taken and applied in a uniform manner among Product and not other products;
		

		
			1.57.3  retroactive price reductions that are actually allowed or granted;
		

		
			1.57.4  deductions for Health Care Reform fees and similar deductions to gross invoice price of Product imposed by Regulatory Authorities or other governmental entities when adjusted for rebates and refunds;
		

		
			1.57.5  a fixed amount equal to three percent (3%) of the amount invoiced to cover bad debt, early payment cash discounts, transportation and insurance and custom duties; and
		

		
			1.57.6  the standard inventory cost of specialty devices or delivery systems used for dispensing or administering Product.
		

		
			With respect to sales of Combination Products in a country during an accounting period, Net Sales shall be calculated on the basis of the gross invoice price of Product(s) containing the same dosage of Product Candidate sold without other active ingredients in such country and during such accounting period.  In the event that Product with a certain dosage of Product Candidate is sold only as a Combination Product in a country during an accounting period, Net Sales shall be calculated on the basis of the gross invoice price of the Combination Product multiplied by a
		

		
			
		

		
			

		 

		

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			fraction, the numerator of which shall be the inventory cost of Product Candidate in the Product and the denominator of which shall be the inventory cost of all of the active ingredients in the Combination Product during such accounting period.  Inventory cost shall be determined in good faith in accordance with Merck's regular accounting methods, consistently applied.  The deductions set forth in Sections 1.37.1 through 1.37.6 will be applied in calculating Net Sales for a Combination Product prior to the application of the calculation in this paragraph.  In the event that Product is sold only as a Combination Product and either Party reasonably believes that the calculation set forth in this Paragraph does not fairly reflect the value of Product Candidate relative to the other active ingredients in the Combination Product, the Parties shall reasonably negotiate other means of calculating Net Sales with respect to Combination Products.
		

		
			1.58     “Officials” has the meaning set forth in Section 2.9.3.
		

		
			1.59     “Party” means Merck or Company, individually, and “Parties” means Merck and Company, collectively.
		

		
			1.60     “Patent Rights” means any and all patents and patent applications in the Territory (which for the purpose of this Agreement shall be deemed to include certificates of invention and applications for certificates of invention), including divisionals, continuations, continuations-in-part, reissues, renewals, substitutions, registrations, re-examinations, revalidations, extensions, supplementary protection certificates, and the like of any such patents and patent applications, and foreign equivalents of the foregoing.
		

		
			1.61     “Payment” has the meaning set forth in Section 2.9.3.
		

		
			1.62     “Person” means any individual, partnership, joint venture, limited liability company, corporation, firm, trust, association, unincorporated organization, governmental authority or agency, or any other entity not specifically listed herein.
		

		
			1.63     “Phage” means a [***] Engineered Phage and/or [***] Engineered Phage.
		

		
			1.64     “Phase I Clinical Trial” means a human clinical trial in any country that would satisfy the requirements of 21 CFR 312.21(a) or its non-United States equivalents.
		

		
			1.65     “Phase II Clinical Trial” means a human clinical trial in any country that would satisfy the requirements of 21 CFR 312.21(b) or its non-United States equivalents.
		

		
			1.66     “Phase IIb Clinical Trial” means a Phase II Clinical Trial of a Product Candidate the principal purpose of which is to confirm efficacy and safety consistent with the efficacy and safety observed in a previous Clinical Trial of such Product Candidate in the target population at the intended dose or doses or range of doses on a sufficient number of subjects and for a sufficient period of time to determine the optimal manner of use of a Product Candidate (dose and dose regimen) prior to the Initiation of a Phase III Clinical Trial of such Product Candidate. For clarity, a Phase IIb Clinical Trial does not include a Phase Ib/IIa clinical trial.
		

		
			1.67     “Phase III Clinical Trial” means a human clinical trial in any country that would satisfy the requirements of 21 CFR 312.21(c) or its non-United States equivalents.
		

		
			
		

		
			

		 

		

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			1.68     “Preclinical Milestone” means a [***] Preclinical Milestone or a [***] Preclinical Milestone and “Preclinical Milestones” means the [***] Preclinical Milestones and the [***] Preclinical Milestones.
		

		
			1.69     “Product(s)” means any pharmaceutical or biological preparation for use in humans in final form containing Product Candidate as an active ingredient (i) for sale by prescription, over-the-counter or any other method; or (ii) for administration to human patients in a Clinical Trial, for any and all uses in the Field, including without limitation any Combination Product.
		

		
			1.70     “Product Candidate” means (a) a [***] Engineered Phage (including [***] Engineered Phage) made by or on behalf of Company under the [***] Research Plan to the extent Merck exercises the [***] License Option, (b) an [***] Engineered Phage (including [***] Engineered Phage) made by or on behalf of Company under the [***] Research Plan to the extent Merck exercises the [***] License Option or (c) a [***] referred to in clauses (a) and (b), and with respect to each of clauses (a), (b), and (c), [***] CMC and regulatory purposes. References to “Product Candidate” in this Agreement will exclude clause (b) above in the event that Merck does not exercise the [***] Research Option.
		

		
			1.71     “Product-Specific Company Patent Right” means any Company Patent Right that specifically claims (i) [***] and/or (ii) [***], and in the case of each of clause (i) and (ii) [***].
		

		
			1.72     “Regulatory Authority” means any applicable government regulatory authority involved in granting approvals for the manufacturing, marketing, reimbursement and/or pricing of a Product in the Territory, including, in the United States, the United States Food and Drug Administration and any successor governmental authority having substantially the same function.
		

		
			1.73     “Related Party” means each of Merck, its Affiliates, and their respective sublicensees (which term does not include distributors), as applicable.
		

		
			1.74     “Research Plan” means the [***] Research Plan or the [***] Research Plan, as applicable.
		

		
			1.75     “Research Program” means the research activities undertaken by the Parties as set forth in Article 2 and the [***] Research Plan and, if Merck exercises the [***] Research Plan Option, the [***] Research Plan.
		

		
			1.76     “Research Program Patent Rights” means Company Patent Rights other than Product-Specific Company Patent Rights.
		

		
			1.77     “Research Term” means the [***] Research Term or the [***] Research Term, as applicable.
		

		
			1.78     “Royalty Period” has the meaning set forth in Section 5.2.3(a)(iii).
		

		
			1.79     “Second Marketing Authorization” means a Marketing Authorization for a different Indication than one for which a Product Candidate has received Marketing Authorization.  For the avoidance of doubt, expansion of an already approved Indication or approval for a subpopulation shall not constitute a Second Marketing Authorization.
		

		
			1.80     “[***] Milestone 1” has the meaning set forth in Section 5.1.2.
		

		
			
		

		
			

		 

		

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			1.81     “[***] Milestone 2” has the meaning set forth in Section 5.1.2.
		

		
			1.82     “[***] Milestone 3” has the meaning set forth in Section 5.1.2.
		

		
			1.83     “[***] Milestone 4” has the meaning set forth in Section 5.1.2.
		

		
			1.84     “[***] Preclinical Milestones” has the meaning set forth in Section 5.1.2.
		

		
			1.85     “[***] Engineered Phage” means an engineered bacteriophage [***] pursuant to the criteria set forth in the [***] Research Plan.
		

		
			1.86     “[***] License Option” has the meaning set forth in Section 3.1.1.
		

		
			1.87     “[***] Option Term” has the meaning set forth in Section 3.1.1.
		

		
			1.88     “[***] Research Plan” has the meaning set forth in Section 2.1.1.
		

		
			1.89     “[***] Research Term” has the meaning set forth in Section 2.8.
		

		
			1.90     “Taxes” has the meaning set forth in Section 5.2.7.
		

		
			1.91     “Territory” means all of the countries in the world, and their territories and possessions.
		

		
			1.92     “Third Party” means an entity other than Merck and its Related Parties, and Company and its Affiliates.
		

		
			1.93     “Third Party License” has the meaning set forth in Section 5.2.3(e).
		

		
			1.94     “Valid Patent Claim” means a claim of an issued, unexpired and in-force patent included within the Company Background IP, the Company Patent Rights or the Joint Patent Rights that claims Product Candidate as a composition of matter or, on a country-by-country basis, a method of treatment of a human disease which has received Marketing Authorization by the appropriate Regulatory Authority in the country in the Territory, which has not been revoked or held unenforceable or invalid by a decision of a court or other governmental agency of competent jurisdiction (which decision is not appealable or has not been appealed within the time allowed for appeal), and which claim has not been disclaimed, denied or admitted to be invalid or unenforceable through reissue, re-examination, supplemental examination or disclaimer or otherwise.
		

		
			1.95     “Violation” means that either Party, or any of its officers or directors has been: (a) convicted of any of the felonies identified among the exclusion authorities listed on the U.S. Department of Health and Human Services, Office of Inspector General (OIG) website, including 42 U.S.C. 1320a-7(a) (https://oig.hhs.gov/exclusions/index.asp); and/or (b) identified in the OIG List of Excluded Individuals/Entities (LEIE) database (https://oig.hhs.gov/exclusions/exclusions_list.asp) or the U.S. General Services Administration's list of Parties Excluded from Federal Programs (https://www.sam.gov/portal/public/SAM/) (each of (a) and (b), singly and collectively, the “Exclusions Lists”).
		

		
			
		

		
			

		 

		

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			ARTICLE 2   RESEARCH PROGRAM
		

		
			2.1       General.
		

		
			2.1.1    Company and Merck shall engage in the Research Program upon the terms and conditions set forth in this Agreement.  Schedule 2.1.1(a) sets forth the activities to be undertaken beginning as of the Effective Date (as the same may be amended, the “[***] Research Plan”). Schedule 2.1.1(b) sets forth the activities to be undertaken, if at all, following exercise by Merck of the [***] Research Option (as the same may be amended, the “[***] Research Plan”).
		

		
			2.1.2    Company hereby grants to Merck an exclusive option, exercisable at any time prior to expiration of the [***] Research Term to require Company to engage in the [***] Research Plan (such option, the “[***] Research Option”). Merck may exercise the [***] Research Option, in Merck’s sole discretion, by sending Company written notice of such exercise, and paying [***] in accordance with Section 5.2.1(a).
		

		
			2.2       Performance of Research Plan.  Each Party shall be responsible for its costs and expenses in connection with the Research Program. Each Party shall proceed diligently and in good faith with the work set out in the Research Plan by using its reasonable efforts to allocate sufficient time, effort, equipment and facilities to the Research Program and to use personnel with sufficient skills and experience as are required to accomplish its activities under the Research Program in accordance with the terms of this Agreement and the Research Plan.  Merck shall be entitled to utilize the services of its Affiliates and Third Parties to perform its Research Program activities.  Company shall be entitled to utilize the service of Third Parties to perform its Research Program activities only upon Merck’s prior written consent, as set forth on Schedule 2.2, or as specifically set forth in the Research Plan.  Notwithstanding any such utilization, each Party shall remain at all times fully liable for its respective responsibilities under the Research Program.
		

		
			2.3       Joint Steering Committee.  The Parties hereby establish a committee to facilitate the Research Program as follows:
		

		
			2.3.1    Composition of the Joint Steering Committee.  The Research Program shall be conducted under the direction of a joint steering committee (the “Committee”) comprised of two (2) senior representatives of Merck (who shall be employees of Merck or its Affiliate, as applicable) and two (2) senior representatives of Company (who shall be employees of Company or its Affiliate, as applicable).  Each Party may change its representatives to the Committee from time to time in its sole discretion, effective upon notice to the other Party of such change.  These representatives shall have appropriate technical credentials, experience and knowledge, and ongoing familiarity with the Research Program.  Additional representative(s) or consultant(s) may, from time to time by mutual consent of the Parties, be invited to attend Committee meetings, subject to such representative’s or consultants written agreement to comply with the requirements of Section 4.1.  The goal of all decision-making of the Committee shall be to achieve consensus.  Decisions of the Committee shall be made unanimously by the representatives.  In the event that the Committee cannot or does not, after reasonable good faith efforts, reach agreement on an issue within the scope of the Committee’s decision-making
		

		
			
		

		
			

		 

		

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			authority as set forth in Section 2.3.2 below, such issue shall be escalated pursuant to Section 9.9 hereof.
		

		
			2.3.2    Scope of Committee Oversight.  The Committee shall be responsible for overseeing the Research Program, including to (i) review and amend the Research Plan from time to time, (ii) review and coordinate the Parties’ activities under the Research Program, (iii) confer regarding the status of the Research Program and the progress under the Research Program and to make determinations and decisions in connection with the Research Plan (including issues of priority), (iv) review results under the Research Program, (v) consider and advise on technical issues a Party wishes to raise to the other Party under the Research Program, and (vi) determine whether the Preclinical Milestones have been achieved.  With respect to any determination by the Committee as to the achievement of a Preclinical Milestone, the Committee shall be required to make any such determination within no less than forty-five (45) days after receiving written notice from the Company of its assessment that such Preclinical Milestone has been achieved. The Committee shall not have the authority to: (w) modify or amend the terms and conditions of this Agreement; (x) waive either Party’s compliance with the terms and conditions of this Agreement; (y) determine any issue in a manner that would conflict with the express terms and conditions of this Agreement; or (z) amend the Research Plan in a manner that would increase the Preclinical Milestones or modify the definitions thereof.
		

		
			2.3.3    Meetings.  During the Research Term, the Committee shall meet in accordance with a schedule established by mutual written agreement of the Parties, but no less frequently than once per Calendar Quarter, with the location for such meetings alternating between Company and Merck facilities (or such other location may be determined by the Committee or by means of teleconference, videoconference or other similar communications equipment).  The Committee shall confer regarding the status of the Research Program, review relevant data, consider and advise on any technical issues that arise, consider issues of priority, and review and advise on any budgetary and economic matters relating to the Research Program which may be referred to the Committee.  Each Party shall bear its own expenses related to the attendance of such meetings by its representatives.
		

		
			2.3.4    Disbandment of Committee.  Upon completion (or earlier termination) of the Research Program, the Committee shall have no further authority with respect to the activities hereunder.  The Committee shall be disbanded upon expiration of the term of the License Option.
		

		
			2.4       Alliance Managers.  Each Party shall have the right to appoint an employee who shall oversee interactions between the Parties for all matters related to this Agreement (each an “Alliance Manager”).  Such persons shall endeavor to ensure clear and responsive communication between the Parties and the effective exchange of information, and may serve as a single point of contact for any matters arising under this Agreement.  The Alliance Managers shall have the right to attend all Committee meetings as non-voting participants and may bring to the attention of the Committee any matters or issues either of them reasonably believes should be discussed, and shall have such other responsibilities as the Parties may mutually agree in writing.  Each Party may designate different Alliance Managers by notice in writing to the other Party.
		

		
			
		

		
			

		 

		

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			2.5       Exchange of Information.  During the Research Term, Company shall disclose to Merck in English and in writing or in an electronic format all results generated by or on behalf of Company under the Research Program and all Company Know-How reasonably necessary for Merck to determine whether to exercise a License Option. If Merck exercises a License Option, Company shall disclose to Merck such other Company Know-How requested by, or required to be disclosed to, a Regulatory Authority in connection with the development or commercialization of a Product or Product Candidate; provided,  however, that if Company reasonably determines that such Company Know-How is particularly sensitive, Company may instead disclose such Company Know-How directly to such Regulatory Authority.  Company shall make itself reasonably available to Merck and such Regulatory Authority in connection with the foregoing.
		

		
			2.6       Records and Reports.
		

		
			2.6.1    Records. Each Party shall maintain records, in sufficient detail and in good scientific manner appropriate for patent and regulatory purposes, which shall fully and properly reflect all work done and results achieved in the performance of the Research Program by or on behalf of such Party.
		

		
			2.6.2    Copies and Inspection of Records. Merck shall have the right, during normal business hours and upon reasonable notice, to inspect and copy all such records of Company referred to in Section 2.6.1.  Merck shall maintain such records and the information disclosed therein in confidence in accordance with Section 4.1.  Merck shall have the right to arrange for its employee(s) and/or consultant(s) involved in the activities contemplated hereunder to visit the offices and laboratories of Company and any of its Third Party contractors as permitted under Section 2.2 during normal business hours and upon reasonable notice, and to discuss the Research Program work and its results in detail with the technical personnel and consultant(s) of Company.  Upon request, Company shall provide copies of the records described in Section 2.6.1.
		

		
			2.6.3    Semi-annual Reports.  Within thirty (30) days after each June 30 and December 31 during the term of this Agreement, Company shall provide to Merck a written progress report in English which shall describe the work performed to date on the applicable Research Plan, evaluate the work performed in relation to the goals of such Research Plan and provide such other information as may be required by such Research Plan or reasonably requested by Merck relating to the progress of the goals or performance of such Research Plan.  Following exercise by Merck of a License Option with respect to a Research Plan, if at all, such reports for such Research Plan shall be considered the Confidential Information of Merck.
		

		
			2.7       Research Information and Inventions.
		

		
			2.7.1    The entire right, title and interest in:
		

		
			(a)        Company Platform Improvements shall be owned solely by Company;
		

		
			(b)        Company Information and Inventions shall be owned solely by Company;
		

		
			(c)        Merck Information and Inventions shall be owned solely by Merck; and
		

		
			
		

		
			

		 

		

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			(d)        Joint Information and Inventions shall be owned jointly by Company and Merck.
		

		
			2.7.2    Each Party shall promptly disclose to the other Party in writing the development, making conception or reduction to practice of Joint Information and Inventions, and Company shall reasonably promptly disclose to Merck in writing the development, making, conception or reduction to practice of Company Information and Inventions. For the purposes of determining ownership under this Section 2.7, inventorship shall be determined in accordance with United States patent laws (regardless of where the applicable activities occurred).  Subject to the licenses granted to the other Party under this Agreement and the other terms and conditions of this Agreement, each Party shall have the non-exclusive right to exploit its interest in Joint Information and Inventions and Joint Patent Rights, and to grant licenses under its interest in Joint Information and Inventions and Joint Patent Rights, as it deems appropriate, without the consent of, and without accounting to, the other Party; provided, however, that for clarity, the foregoing joint ownership rights shall not be construed as granting, conveying or creating any license or other rights to the other Party’s intellectual property, unless otherwise expressly set forth in this Agreement; and further provided that, in the event that any Joint Patent Rights claim or cover a Product Candidate or the manufacturing process therefor, Company shall not grant any license under its interest in such Joint Patent Rights to any Third Party without Merck’s prior written consent.
		

		
			2.8       Term of the Research Program(s).  Unless this Agreement is terminated pursuant to Section 8.2 or 8.3, the term of the [***] Research Program shall commence on the Effective Date and continue until the second anniversary of the Effective Date (the “[***] Research Term”).  To the extent Merck exercises the [***] Research Option, and unless this Agreement is terminated pursuant to Section 8.2 or 8.3, the term of the [***] Research Plan shall expire on the date that is eighteen (18) months after the date of commencement of the [***] Research Plan(the “[***] Research Term”).
		

		
			2.9       Compliance with Law and Ethical Business Practices.
		

		
			2.9.1    Each Party shall conduct the Research Program in accordance with all applicable laws, rules and regulations including, without limitation, all current governmental regulatory requirements concerning Good Laboratory Practices.  Each Party shall notify the other Party in writing of any deviations from applicable regulatory or legal requirements.  Each Party hereby certifies that it has not and will not employ or otherwise use in any capacity the services of any person or entity debarred under Section 21 USC 335a in performing any services hereunder.  Each Party shall notify the other Party in writing immediately if any such debarment occurs or comes to its attention, and shall promptly remove any person or entity so disbarred from performing any activities under the Research Program, or function or capacity related to the Research Program.
		

		
			2.9.2    Company acknowledges that Merck’s corporate policy requires that Merck’s business must be conducted within the letter and spirit of the law.  By signing this Agreement, each Party agrees to conduct the services contemplated herein in a manner which is consistent with both law and good business ethics.
		

		
			
		

		
			

		 

		

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			2.9.3    Each Party warrants that none of its employees, agents, officers or other members of its management are officials, officers, agents or representatives of any government or public international organization (as such term is defined in the Foreign Corrupt Practices Act). Neither Party shall make any payment, either directly or indirectly, of money or other assets, including but not limited to the compensation such Party derives from this Agreement (hereinafter collectively referred as a “Payment”), to government or political party officials, officials of international public organizations, candidates for public office, or representatives of other businesses or persons acting on behalf of any of the foregoing (hereinafter collectively referred as “Officials”) where such Payment would constitute violation of any law.  In addition regardless of legality, neither Party shall make any Payment either directly or indirectly to Officials if such Payment is for the purpose of influencing decisions or actions with respect to the subject matter of this Agreement or any other aspect of the other Party’s business.
		

		
			2.9.4    Company acknowledges that no employee of Merck or its Affiliates shall have authority to give any direction, either written or oral, relating to the making of any commitment by Company or its agents to any Third Party in violation of terms of this or any other provisions of this Agreement.
		

		
			2.9.5    Each Party certifies to the other Party that as of the date of this Agreement it has screened itself, and its officers, directors and employees against the Exclusions Lists and that it has informed the other Party whether it or any of its officers or directors has been in Violation.  After the execution of this Agreement, each Party shall notify the other Party in writing immediately if any such Violation occurs or comes to its attention.
		

		
			2.9.6    Any failure to abide by the provisions of this Section 2.9 shall be deemed a material breach of this Agreement.
		

		
			2.10     Animal Research.  If animals are used in research hereunder, Company will comply with the Animal Welfare Act or any other applicable local, state, national and international laws and regulations relating to the care and use of laboratory animals.  Merck encourages Company to use the highest standards, such as those set forth in the Guide for the Care and Use of Laboratory Animals (NRC, 1996), for the humane handling, care and treatment of such research animals.  Company hereby certifies that it has and shall maintain current and valid accreditation from AAALAC during the Research Term. Any animals which are used in the course of the Research Program, or products derived from those animals, such as eggs or milk, will not be used for food purposes, nor will these animals be used for commercial breeding purposes.
		

		
			2.11     Materials.  Merck may, in its sole discretion, provide Company with certain materials solely for the purpose of enabling Company to perform its activities under the Research Program in accordance with the terms of this Agreement (“Materials”).  To the extent Merck provides such Materials, such Materials are not to be used in humans, nor shall any of the Materials, or any derivatives, analogs, modifications or components thereof be transferred, delivered or disclosed to any Third Party without the prior written approval of Merck.  Any unused Materials and any derivatives, analogs, modifications or components thereof shall be, at Merck’s option, either returned to Merck, or destroyed in accordance with instructions by Merck. To the extent Company provides any biological materials to Merck under this Agreement, (i) such materials are not to be used in humans, and (ii) if this Agreement terminates prior to the exercise of a
		

		
			
		

		
			

		 

		

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			License Option by Merck, any unused amounts of such materials and any derivatives, analogs, modifications or components thereof shall be, at Company’s option, either returned to Company, or destroyed in accordance with instructions by Company.
		

		
			ARTICLE 3   OPTION TO LICENSE; LICENSE; DEVELOPMENT AND COMMERCIALIZATION.
		

		
			3.1       Option.  Company hereby grants to Merck an exclusive option to obtain with respect to any and all Product Candidates developed during any Research Term a worldwide license as set forth in Section 3.2 pursuant to the terms of this Agreement (the “License Option”). Merck may exercise the License Option, in its sole discretion, in the following circumstances by sending Company written notice of such exercise and making the applicable payment in accordance with Section 5.2.1(b) or (c):
		

		
			3.1.1    if Merck does not exercise the [***] Research Option pursuant to Section 2.1.2, Merck may, in its sole discretion, at any time during the [***] Research Term and for a period of ninety (90) days thereafter (the “[***] Option Term”), exercise the License Option with respect to Product and Product Candidates from the [***] Research Plan (the “[***] License Option”); and
		

		
			3.1.2    if Merck exercises the [***] Research Option pursuant to Section 2.1.2, Merck may, in its sole discretion, at any time during the [***] Research Term and for a period of ninety (90) days thereafter (the “[***] Option Term”), exercise its [***] License Option and/or the License Option with respect to Product and Product Candidates from the [***] Research Plan (the “[***] License Option”).
		

		
			3.2       Following Option Exercise by Merck.  Upon and following exercise by Merck of the [***] License Option and/or the [***] License Option, if at all:
		

		
			3.2.1    License Grant.
		

		
			(a)        Company hereby grants to Merck an exclusive license (even as to Company) in the Territory under Company Patent Rights and its interest in Joint Patent Rights, with the right to grant and authorize sublicenses, for any and all uses in the Field, including, without limitation, to make, have made, use, import, offer to sell and sell (but not genetically modify) Product Candidate and Product.
		

		
			(b)        Company hereby grants to Merck an exclusive license (even as to Company) in the Territory under the Patent Rights included in Company Background IP, with the right to grant and authorize sublicenses, for any and all uses in the Field, solely to make, have made, use, import, offer to sell and sell (but not genetically modify) Product Candidate and Product.
		

		
			(c)        Company hereby grants to Merck an exclusive license (even as to Company) in the Territory under Company Know-How, with the right to grant and authorize sublicenses, for any and all uses in the Field, solely to make, have made, use, import, offer to sell and sell (but not genetically modify) Product Candidate and Product.
		

		
			
		

		
			

		 

		

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			3.2.2    Genetic Modifications to Product or Product Candidate for CMC or Regulatory Purposes.  In the event Merck reasonably determines that a modification to Product Candidate is needed for CMC or regulatory purposes, and such modification is genetic in nature, Merck will notify Company, and Company will use reasonable efforts to make such needed modification as requested by Merck. Merck will reimburse Company for its reasonable out-of-pocket expenses and FTEs conducting such work to the extent Company provides appropriate documentation (including original receipts) and an invoice. Until the fifth anniversary of the Effective Date, the FTE rates shall not exceed $360,000 for a full-time equivalent person year, and thereafter the Parties shall agree in good faith on a reasonable increase in FTE rates to reflect inflation and then-current industry standards.  Merck will pay the undisputed amount of such invoice within sixty (60) days after receipt thereof.
		

		
			3.2.3    Non-Exclusive License Grant.  In the event that the making, having made, use, import, offer for sale and/or sale by Merck or its Related Parties of Product Candidate or Product (other than with respect to any pharmaceutically active ingredients controlled by Company or its Affiliate other than Product Candidate) would infringe during the term of this Agreement a claim of an issued letters patent that Company (or its Affiliate)  owns or has the rights to license and which patents are not covered by the grant in Section 3.2.1, Company hereby grants to Merck, to the extent Company is legally able to do so without incurring any payment obligations to any Third Party, a non-exclusive, sublicensable, royalty-free license in the Territory under such issued letters patent for Merck and its Related Parties to make, have made, use, import, offer to sell and sell Product Candidate and Product in the Territory.
		

		
			3.3       No Implied Licenses.  Except as specifically set forth in this Agreement, neither Party shall acquire any license or other intellectual property interest, by implication or otherwise, in any Information disclosed to it under this Agreement or under any patents or patent applications owned or controlled by the other Party or its Affiliates.
		

		
			3.4       No Grant of Inconsistent Rights by Company.  Company (and its Affiliates) shall not assign, transfer, convey or otherwise grant to any Person or otherwise encumber (including through lien, charge, security interest, mortgage, encumbrance or otherwise) (i) any rights to any Company Know-How or Company Patent Rights (or any rights to any intellectual property that would otherwise be included in the Company Know-How or Company Patent Rights), in any manner that is inconsistent with or would interfere with the grant of the rights or licenses to Merck hereunder, or (ii) any rights to any Product Candidates or Products (other than as set forth herein).  Without limiting the foregoing, during the term of the Agreement, Company (and its Affiliates) shall not use (and shall not grant to any Third Party the right to use) any Product Candidate or Products for any purpose (including the development, manufacturing or commercialization thereof).
		

		
			3.5       Sublicenses.  Merck shall have the right to sublicense (through multiple tiers of sublicenses) any or all of the licenses granted to Merck hereunder.  Merck shall be responsible for ensuring that the performance by any of its sublicensees hereunder that are exercising rights under a sublicense hereunder is in accordance with the applicable terms of this Agreement, any breach of the terms of this Agreement by a sublicensee shall be deemed to be a breach by Merck, and the grant of any such sublicense shall not relieve Merck of its obligations under this Agreement (except with
		

		
			
		

		
			

		 

		

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			respect to the diligence obligations to the extent they are performed by any such sublicensee(s) in accordance with this Agreement).
		

		
			3.6       Development and Commercialization.  Following exercise of a License Option by Merck, if at all:
		

		
			3.6.1    Merck shall use Commercially Reasonable Efforts, at its own expense, to develop and commercialize a Product and shall conduct the development and commercialization in accordance with all applicable laws, rules and regulations.  For avoidance of doubt, the satisfaction of Merck’s obligations under this Section 3.6 shall take into account any adverse condition or event relating to the safety or efficacy of the Product, and the obligation of Merck to meet development or marketing diligence milestones for any such Product shall be reasonably delayed or suspended to account for such conditions or events.
		

		
			3.6.2    Until the First Commercial Sale of any Product, Merck shall submit to Company annual written reports providing a status of Merck’s and its Affiliates’ and Sublicensees’ activities related to the research and development of a Product during the preceding twelve (12) months.
		

		
			3.7       Exclusivity. Except as contemplated by a Research Plan, during the [***] Research Term and the [***] Research Term, if any, Company will work exclusively (even as to Company itself) with Merck in any effort targeting [***]. Except as contemplated by a Research Plan: (a) during the term of this Agreement, Company may not conduct research or develop, for any use, (i) any Product Candidate or Product or (ii) any other bacteriophage in the same International Committee on Taxonomy of Viruses taxonomic family as such Product or Product Candidate that targets [***]; and (b) for a period of [***] years following exercise of the [***] License Option and/or the [***] License Option by Merck, if at all, Company may not research or develop [***].
		

		
			ARTICLE 4   CONFIDENTIALITY AND PUBLICATION.
		

		
			4.1       Nondisclosure Obligation.  All Information disclosed by one Party to the other Party hereunder shall be maintained in confidence by the receiving Party and shall not be disclosed to any Third Party or used for any purpose except as set forth herein without the prior written consent of the disclosing Party, except to the extent that such Information:
		

		
			4.1.1    is known by the receiving Party at the time of its receipt, and not through a prior disclosure by the disclosing Party, as documented by the receiving Party’s business records;
		

		
			4.1.2    is in the public domain by use and/or publication before its receipt from the disclosing Party, or thereafter enters the public domain through no fault of the receiving Party;
		

		
			4.1.3    is subsequently disclosed to the receiving Party by a Third Party who may lawfully do so and is not under an obligation of confidentiality to the disclosing Party;
		

		
			4.1.4    is developed by the receiving Party independently of Information received from the disclosing Party, as documented by the receiving Party’s business records;
		

		
			
		

		
			

		 

		

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			4.1.5    is disclosed to governmental or other regulatory agencies in order to obtain patents directed to Company Information and Inventions, Merck Information and Inventions or Joint Information and Inventions, as applicable, or to gain or maintain approval to conduct clinical trials or to market Product, but such disclosure may be only to the extent reasonably necessary to obtain patents or authorizations;
		

		
			4.1.6    is, after the exercise of the [***] License Option and/or the [***] License Option by Merck, reasonably deemed necessary by Merck to be disclosed to Related Parties, agent(s), consultant(s), and/or other Third Parties for any and all purposes Merck and its Affiliates deem necessary or advisable in the ordinary course of business in connection with the development or commercialization of Products in the Field in accordance with this Agreement on the condition that such Third Parties agree to be bound by confidentiality and non-use obligations that substantially are no less stringent than those confidentiality and non-use provisions contained in this Agreement; provided,  however, that the term of confidentiality for such Third Parties shall be no less than ten (10) years;
		

		
			4.1.7    is, prior to exercise of the [***] License Option and/or the [***] License Option by Merck, if at all, reasonably deemed necessary by Company to be disclosed to its Affiliates and consultant(s), and/or other Third Party contractors for purposes of performing Company’s obligations under this Agreement, on the condition that such Third Parties agree to be bound by confidentiality and non-use obligations that substantially are no less stringent than those confidentiality and non-use provisions contained in this Agreement; provided,  however, that the term of confidentiality for such Third Parties shall be no less than ten (10) years; or
		

		
			4.1.8    is reasonably deemed necessary to the receiving Party to be disclosed to such Party’s attorneys, independent accountants or financial advisors for the sole purpose of enabling such attorneys, independent accountants or financial advisors to provide advice to the receiving Party, on the condition that such attorneys, independent accountants and financial advisors agree to be bound by confidentiality and non-use obligations contained this Agreement; provided,  however, that the term of confidentiality for such attorneys, independent accountants and financial advisors shall be no less than ten (10) years.
		

		
			Any combination of features or disclosures shall not be deemed to fall within the foregoing exclusions merely because individual features are published or available to the general public or in the rightful possession of the receiving Party unless the combination itself and principle of operation are published or available to the general public or in the rightful possession of the receiving Party.
		

		
			If a Party is required by judicial or administrative process (including a request for discovery received in an arbitration or litigation proceeding) to disclose Information that is subject to the non-disclosure provisions of this Section 4.1 or Section 4.2, such Party shall promptly inform the other Party of the disclosure that is being sought in order to provide the other Party an opportunity to challenge or limit the disclosure obligations.  Information that is disclosed by judicial or administrative process shall remain otherwise subject to the confidentiality and non-use provisions of this Section 4.1 and Section 4.2, and the Party disclosing Information pursuant to law or court order shall take all steps reasonably necessary, including without limitation obtaining an order of confidentiality, to ensure the continued confidential treatment of such Information.
		

		
			
		

		
			

		 

		

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			4.2       Publication.
		

		
			4.2.1    Prior to the earlier of (x) Merck’s exercise of the [***] License Option and/or the [***] License Option (if at all) and (y) expiration of the term of the License Option, neither Party shall publish results of the [***] Research Plan or the [***] Research Plan, if any, without the other Party’s prior written consent. Provisions governing the filing of patent applications, which may be published by patent offices in which such filing is made, before the earlier of (x) Merck’s exercise of the [***] License Option and/or the [***] License Option (if at all) and (y) expiration of the term of the License Option, by the Parties, are provided under Section 7 of this Agreement.
		

		
			4.2.2    If Merck exercises the [***] License Option and/or the [***] License Option, Company shall have no right to publish results of the applicable Research Plan, and Merck shall have the right to publish results of such Research Plan. Prior to a written publication or oral presentation of any such results, Merck shall deliver to Company a copy of the proposed written publication or an outline of an oral disclosure at least sixty (60) days prior to submission for publication or presentation.  Company shall have the right to: (a) propose modifications to the publication or presentation for patent reasons, trade secret reasons or business reasons or (b) request a reasonable delay in publication or presentation in order to protect patentable information for which Merck does not have filing rights in accordance with Article 7.  If Company requests such a delay, Merck shall delay submission or presentation for a period of up to ninety (90) days as necessary to enable patent applications protecting Company’s rights in such information to be filed in accordance with Article 7.  Upon expiration of such ninety (90) days, Merck shall be free to proceed with the publication or presentation; provided that if Company requests modifications to the publication or presentation, Merck shall edit such publication to prevent disclosure of trade secret or proprietary business information prior to submission of the publication or presentation.  Provisions governing the filing of patent applications by the Parties, which may be published by patent offices in which such filing is made, if Merck exercises the [***] License Option and/or the [***] License Option, are provided under Section 7 of this Agreement.
		

		
			4.2.3    If Merck does not exercise the [***] License Option and/or the [***] License Option prior to the expiration of the term of the License Option, then Company may publish results of any Research Plan for which Merck does not exercise a License Option; provided,  however, that the Company may not make any publication containing Confidential Information of Merck, including any Merck Know-How, or use Merck’s name without Merck’s prior written consent.
		

		
			4.3       Publicity/Use of Names.  No disclosure of the existence, or the terms, of this Agreement may be made by either Party, and no Party shall use the name, trademark, trade name or logo of the other Party, its Affiliates or their respective employee(s) in any publicity, promotion, news release or disclosure relating to this Agreement or its subject matter, without the prior express written permission of the other Party, except (a) as may be required by law (provided that the disclosing party shall seek confidential treatment, or a protective order, as applicable, for the terms of the Agreement to the extent permitted by applicable laws and regulations as determined by such Party), (b) in confidence to its legal and financial advisors to the extent such disclosure is reasonably necessary in connection with such Party's activities in connection with this Agreement
		

		
			
		

		
			

		 

		

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			and (c) to any bona fide potential or actual financial investor or lender (but not including any corporate pharmaceutical venture groups), acquirer or merger partner for the sole purpose of evaluating an actual or potential investment, acquisition, merger or loan; provided that in each case, such disclosees are bound by written obligations of confidentiality consistent with the confidentiality obligations of this Agreement, and the disclosing Party shall be responsible for any breach by any such disclosee of the confidentiality obligations of this Agreement.
		

		
			ARTICLE 5   PAYMENTS; ROYALTIES AND REPORTS
		

		
			5.1       Payments During the Research Program.
		

		
			5.1.1    In partial consideration for Company's performance of its obligations under the Research Program, upon the terms and conditions contained herein, Merck shall pay Company a one-time, non-refundable upfront payment equal to [***], payable within thirty (30) days after the Effective Date.
		

		
			5.1.2    Subject to the terms and conditions of this Agreement, Merck shall pay to Company the applicable milestone payments provided for in this Section 5.1.2 upon the first occurrence of the indicated milestone event during the [***] Research Term.  Following a payment for a milestone set forth in this Section 5.1.2, the subsequent or repeated occurrence of the same milestone event (whether with a different candidate or otherwise or whether during or after the [***] Research Term) will not under any circumstance trigger any additional payment as a result of such event.  Each such milestone payment will be due and payable to the Company within sixty (60) days after the Committee determines that such milestone event has been achieved.
		

			
					
						 

					
					
						 

				
	
					
						Milestone Event 

					
					
						Milestone Payment

				
	
					
						[***] (“[***] Milestone 1”)

					
					
						$[***]

				
	
					
						[***] (“[***] Milestone 2”)

					
					
						$[***]

				
	
					
						[***] (“[***] Milestone 3”)

					
					
						$[***]

				
	
					
						[***]  (“[***] Milestone 4” and together with [***] Milestones 1, 2, and 3, the “[***] Preclinical Milestones”)

					
					
						$[***]

				

		
			 
		

		
			5.1.3    Subject to the terms and conditions of this Agreement, Merck shall pay to Company the applicable milestone payments provided for in this Section 5.1.3 upon the first occurrence of the indicated milestone event during the [***] Research Term, if any.  Following a payment for a milestone set forth in this Section 5.1.3, the subsequent or repeated occurrence of the same milestone event (whether with a different candidate or otherwise or whether during or after the [***] Research Term) will not under any circumstance trigger any additional payment as a result of such event.  Each such milestone payment will be due and payable to the Company within sixty (60) days after the Committee determines that such milestone event has been achieved.
		

		
			 
		

		
			
		

		

		 

		

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						Milestone Event

					
					
						Milestone Payment

				
	
					
						[***] (“[***] Milestone 1”)

					
					
						$[***]

				
	
					
						[***] (“[***] Milestone 2”)

					
					
						$[***]

				
	
					
						[***] (“[***] Milestone 3”)

					
					
						$[***]

				
	
					
						[***] (“[***] Milestone 4” and together with [***] Milestones 1, 2, and 3, the “[***] Preclinical Milestones”)

					
					
						$[***]

				

		
			 
		

		
			5.2       Payments Upon and After Option Exercise (if any).  This Section 5.2 shall apply only if Merck exercises the [***] Research Option and/or a License Option pursuant to Section 3.1 of this Agreement.
		

		
			5.2.1    Option Exercise Payments.
		

		
			(a)        In the event that Merck exercises the [***] Research Option pursuant to Section 2.1.2 of this Agreement, Merck shall pay to Company a one-time, non-refundable payment of [***] within thirty (30) days of the written notice contemplated thereby.
		

		
			(b)        In the event that Merck exercises the [***] License Option and the [***] License Option pursuant to Section 3.1.2 of this Agreement, in consideration for the licenses and other rights granted to Merck herein, upon the terms and conditions contained herein, Merck shall pay to Company, within thirty (30) days of the written notice contemplated thereby, a one-time, non-refundable payment equal to one of the following, as applicable:
		

		
			(i)         [***]; or
		

		
			(ii)       [***]; or
		

		
			(iii)      [***].
		

		
			(c)        In the event that Merck exercises the [***] License Option or the [***] License Option, but not both, pursuant to Section 3.1.1 or 3.1.2, as applicable, in consideration for the licenses and other rights granted to Merck herein, upon the terms and conditions contained herein, Merck shall pay to Company, within thirty (30) days of the written notice contemplated thereby, a one-time, non-refundable payment equal to [***].
		

		
			5.2.2    Milestone Payments.
		

		
			(a)        Subject to the terms and conditions of this Agreement, in the event that Merck has exercised a License Option, Merck shall pay to Company the following milestone
		

		
			
		

		
			

		 

		

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			payments, for which Merck achieves the following milestone events hereunder following such exercise:
		

		
			(i)         Development and Regulatory Milestones
		

			
					
						Milestone Event

					
					
						Milestone Payment

				
	
					
						Initiation of the first Phase I Clinical Trial of a Product in the first Indication.

					
					
						$[***]

				
	
					
						Initiation of the first Phase IIb Clinical Trial of a Product in the first Indication.

					
					
						$[***]

				
	
					
						Initiation of the first Phase III Clinical Trial of a Product in the first Indication.

					
					
						$[***]

				
	
					
						Marketing Authorization for a Product in the United States for the first Indication.

					
					
						$[***]

				
	
					
						Marketing Authorization for a Product (i) in the first Major European Market for the first Indication, or (ii)  from the EMA under a centralized filing for Product for the first Indication 

					
					
						$[***]

				
	
					
						Marketing Authorization for a Product in Japan for the first Indication

					
					
						$[***]

				
	
					
						Initiation of the first Phase III Clinical Trial of a Product in a second Indication.

					
					
						$[***]

				
	
					
						Second Marketing Authorization for a Product in the United States

					
					
						$[***]

				
	
					
						Second Marketing Authorization for a Product (i) in the first Major European Market, or (ii) from the EMA under a centralized filing for Product 

					
					
						$[***]

				
	
					
						Second Marketing Authorization for a Product in Japan

					
					
						$[***]

				

		
			 
		

		
			In the event one or more clinical development milestones set forth in this Section 5.2.2(a)(i) are combined or skipped for any reason (e.g., as a result of FDA’s agreement that an alternative clinical trial design would be appropriate for the Product), the listed payment for the relevant milestone event(s) will be due upon the earlier of (A) achievement of the next clinical development milestone; or (B) the first Marketing Authorization of the Product.
		

		
			
		

		
			

		 

		

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			(ii)       Sales Milestones
		

			
					
						Milestone Event

					
					
						Milestone Payment

				
	
					
						The achievement of aggregate total of worldwide Net Sales of Products in any single Calendar Year of [***]) or more but less than [***].  

					
					
						$[***]

				
	
					
						The achievement of aggregate total of worldwide Net Sales of Products in any single Calendar Year of [***] or more but less than [***].

					
					
						$[***]

				
	
					
						The achievement of aggregate total of worldwide Net Sales of Products in any single Calendar Year of [***] or more but less than [***].

					
					
						$[***]

				
	
					
						The achievement of aggregate total of worldwide Net Sales of Products in any single Calendar Year [***].

					
					
						$[***]

				

		
			 
		

		
			(b)        Merck shall notify Company in writing within sixty (60) days following the achievement of each milestone set forth in Section 5.2.2(a)(i) and (ii). With respect to the achievement of a milestone under Section 5.2.2(a)(i), Merck shall make the appropriate milestone payment within sixty (60) days after the achievement of such milestone. With respect to the achievement of a milestone under Section 5.2.2(a)(ii), Merck shall make the appropriate milestone payment within sixty (60) days after the close of the Calendar Quarter in which such milestone was achieved.  The milestone payments set forth in this Section 5.2.2 shall be payable only upon the initial achievement of such milestone and no amounts shall be due hereunder for subsequent or repeated achievement of such milestone.
		

		
			5.2.3    Royalties.  If Merck has exercised a License Option:
		

		
			(a)        Royalties Payable By Merck.  Subject to the terms and conditions of this Agreement, Merck shall pay Company royalties, calculated on a Product-by-Product basis, as set forth in this Section 5.2.3. Solely in connection with this Section 5.2.3(a), the Parties acknowledge that as of the Effective Date, the Parties [***]. However, if a [***], the Parties will discuss in good faith [***]for purposes of determining the applicable royalty tier would be appropriate.
		

		
			(i)         Patent Royalties. Subject to the provisions of Section 5.2.3(a)(ii), Merck shall pay Company royalties in an amount equal to the following percentage of Net Sales of Products where the sale of Product would infringe a Valid Patent Claim in the country of sale; provided that a Competitive Product is not sold in the country of sale:
		

		
			a.          [***] of worldwide Net Sales in each Calendar Year up to and including [***];
		

		
			b.         [***] of worldwide Net Sales in each Calendar Year for the portion of Net Sales exceeding [***] up to and including [***];
		

		
			
		

		
			

		 

		

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			c.          [***] of worldwide Net Sales in each Calendar Year for the portion of Net Sales exceeding [***] up to and including [***]; and
		

		
			d.         [***] of worldwide Net Sales in each Calendar Year for the portion of Net Sales exceeding [***].
		

		
			(ii)       Know-How Royalty.  Notwithstanding the provisions of Section 5.2.3(a)(i), in countries where the sale of Product by Merck or its Related Parties would not infringe a Valid Patent Claim or a Competitive Product is sold in the country, Merck shall pay royalty rates that shall be set at [***] of the applicable royalty rate determined according to 5.2.3(a)(i). Such royalties shall be calculated after first calculating royalties under Section 5.2.3(a)(i).
		

		
			(iii)      Royalty tiers pursuant to Section 5.2.3(a)(i) and Section 5.2.3(a)(ii) shall be calculated based on worldwide Net Sales of each Product, provided that the determination of whether the royalty shall be calculated under Section 5.2.3(a)(i) or 5.2.3(a)(ii) shall be determined on a country-by-country basis.  Royalties on each Product at the rates set forth above shall continue on a country-by-country basis until the expiration of the later of: (i) the last-to-expire Valid Patent Claim; or (ii) for a period of [***] years after First Commercial Sale of such Product in such country (the “Royalty Period”).
		

		
			(iv)       All royalties are subject to the following conditions:
		

		
			(1)        that only one royalty shall be due with respect to the same unit of Product;
		

		
			(2)        that no royalties shall be due upon the sale or other transfer among Merck or its Related Parties, but in such cases the royalty shall be due and calculated upon Merck’s or its Related Party’s Net Sales to the first independent Third Party;
		

		
			(3)        no royalties shall accrue on the sale or other disposition of Product by Merck or its Related Parties for use in a Clinical Trial; and
		

		
			(4)        no royalties shall accrue on the disposition of Product in reasonable quantities by Merck or its Related Parties as samples (promotion or otherwise) or as donations (for example, to non-profit institutions or government agencies for a non-commercial purpose).
		

		
			(b)        Change in Sales Practices.  The Parties acknowledge that during the term of this Agreement, Merck’s sales practices for the marketing and distribution of Product may change to the extent to which the calculation of the payment for royalties on Net Sales may become impractical or even impossible.  In such event the Parties
		

		
			
		

		
			

		 

		

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			agree to meet and reasonably discuss new ways of compensating Company to the extent currently contemplated under Section 5.2.3(a).
		

		
			(c)        Royalties for Bulk Product Candidate.  In those cases in which Merck or a Related Party sells bulk Product Candidate rather than Product in packaged form to an independent Third Party where neither Merck nor any Related Party receives any consideration for the sales of Product by such Third Party, the royalty obligations of this Section 5.2.3 shall be applicable to the bulk Product Candidate.
		

		
			(d)        Compulsory Licenses.  If a compulsory license is granted to a Third Party with respect to Product Candidate or Product in any country in the Territory with a royalty amount lower than the royalty amount provided by Section 5.2.3(a), then, following the First Commercial Sale of Competitive Product in such country under such compulsory license, the royalty amount to be paid by Merck on Net Sales in that country under Section 5.2.3(a) shall be reduced to the amount paid by the compulsory licensee during the term of such compulsory license.
		

		
			(e)        Third Party Licenses. In the event that Merck obtains (after the Effective Date) a license under, or other rights to, Patent Rights or know-how or other intellectual property from any Third Party(ies) that are necessary in order to make, have made, use, import, offer to sell and/or sell Product(s) (hereinafter “Third Party Licenses”), [***] of the royalties actually paid under such Third Party Licenses by Merck or its Related Parties in connection with the manufacture, use, sale or import, as applicable, of Product(s) in a country for a Calendar Quarter shall be creditable against the royalty payments due Company by Merck with respect to the sale of such Product in such Calendar Quarter in such country.  Notwithstanding the foregoing, (i) in no event shall the royalties owed by Merck to Company for such Calendar Quarter for any Product for sales in a country be reduced by more than [***] pursuant to this Section 5.2.3(e) and (ii) if the Product is a Combination Product, then this Section 5.2.3(e) shall only apply to the extent that the Third Party License applies to the Product Candidate and not to the other pharmaceutically active ingredient. If Merck is not able to fully recover the amounts paid by Merck or its Related Parties under any Third Party License as a result of the foregoing restriction, then Merck shall be entitled to carry forward such right of off-set to future Calendar Quarters with respect to such excess amount.  At the request of Merck, Company shall provide reasonable assistance to Merck (at Merck’s expense) (or its Related Parties) in obtaining any such Third Party Licenses or otherwise taking action with respect Patent Rights or know-how or other intellectual property of any Third Party(ies) that is reasonably necessary in order to make, have made, use, import, offer to sell and/or sell Product(s).
		

		
			5.2.4    Reports; Payment of Royalty.   Following both (a) exercise of a License Option by Merck, if at all, and (b) the First Commercial Sale of a Product: Merck shall furnish to Company a quarterly written report for the Calendar Quarter showing the Net Sales of all Products, on a product-by-product and country-by-country basis, subject to royalty payments sold by Merck and its Related Parties in the Territory during the reporting period and the royalties payable under this Agreement, which reports shall show the aggregate deductions from gross sales under the definition of Net Sales and the calculation of
		

		
			
		

		
			

		 

		

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			royalties from Combination Products, if any, as determined in accordance with the applicable formula under the definition of Net Sales.  Reports shall be due on the sixtieth (60th) day following the close of each Calendar Quarter.  Royalties shown to have accrued by each royalty report shall be due and payable on the date such royalty report is due. Merck shall keep complete and accurate records in sufficient detail to enable the royalties payable hereunder to be determined.
		

		
			5.2.5    Audits. Following both (a) exercise of a License Option by Merck, if at all, and (b) the First Commercial Sale of a Product:
		

		
			(a)        Upon the written request of Company and not more than once in each Calendar Year, Merck shall permit an independent certified public accounting firm of nationally recognized standing selected by Company and reasonably acceptable to Merck, at Company’s expense, to have access during normal business hours to such of the records of Merck as may be reasonably necessary to verify the accuracy of the royalty reports hereunder for any Calendar Year ending not more than thirty-six (36) months prior to the date of such request.  The accounting firm shall disclose to Company only whether the royalty reports are correct or incorrect and the amount of any discrepancy.  No other information shall be provided to Company.
		

		
			(b)        If such accounting firm correctly identifies a discrepancy made during such period, the appropriate Party shall pay the other Party the amount of the discrepancy within thirty (30) days of the date Company delivers to Merck such accounting firm’s written report so correctly concluding, or as otherwise agreed upon by the Parties.  The fees charged by such accounting firm shall be paid by Company;  provided,  however, that if such audit uncovers an underpayment of royalties by Merck that exceeds [***], then the fees of such accounting firm shall be paid by Merck.
		

		
			(c)        Merck shall include in each sublicense granted by it pursuant to this Agreement a provision requiring the sublicensee to make reports to Merck, to keep and maintain records of sales made pursuant to such sublicense and to grant access to such records by Company’s independent accountant to the same extent required of Merck under this Agreement.
		

		
			(d)        Upon the expiration of thirty-six (36) months following the end of any Calendar Year, the calculation of royalties payable with respect to such Calendar Year shall be binding and conclusive upon Company, and Merck and its Related Parties shall be released from any liability or accountability with respect to royalties for such Calendar Year.
		

		
			(e)        Company shall treat all financial information subject to review under this Section 5.2.5 or under any sublicense agreement in accordance with the confidentiality and non-use provisions of this Agreement, and shall cause its accounting firm to enter into an acceptable confidentiality agreement with Merck and/or its Related Parties obligating it to retain all such information in confidence pursuant to such confidentiality agreement.
		

		
			
		

		
			

		 

		

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			5.2.6    Payment Terms.  All payments to be made by Merck to Company under this Agreement shall be made in United States dollars and may be paid by check made to the order of Company or bank wire transfer in immediately available funds to such bank account in the United States as may be designated in writing by Company from time to time.  In the case of sales outside the United States, the rate of exchange to be used in computing the monthly amount of currency equivalent in United States dollars due Company shall be determined by Merck at the monthly rate of exchange utilized by Merck in its worldwide accounting system.
		

		
			5.2.7    Income Tax Withholding.  Company shall be liable for all taxes on Company’s income and other taxes (including interest) (“Taxes”) imposed upon any payments made by Merck to Company under this Article 5 (“Agreement Payments”).  If applicable laws, rules or regulations require the withholding of Taxes, Merck shall make such withholding payments to the appropriate tax authority and shall subtract the amount thereof from the Agreement Payments.  Merck shall submit to Company appropriate proof of payment of the withheld Taxes as well as the official receipts within a reasonable period of time.  Merck shall provide Company reasonable assistance in order to allow Company to obtain the benefit of any present or future treaty against double taxation which may apply to the Agreement Payments.
		

		
			ARTICLE 6 REPRESENTATIONS AND WARRANTIES
		

		
			6.1       Representations and Warranties of Each Party.  Each Party represents and warrants to the other Party that as of the Effective Date:
		

		
			6.1.1    such Party is duly organized and validly existing under the laws of the state or jurisdiction of its organization and has full corporate right, power and authority to enter into this Agreement and to perform its obligations hereunder;
		

		
			6.1.2    the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by the necessary corporate actions of such Party.  This Agreement has been duly executed by such Party.  This Agreement and any other documents contemplated hereby constitute valid and legally binding obligations of such Party enforceable against it in accordance with their respective terms, except to the extent that enforcement of the rights and remedies created thereby is subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws of general application affecting the rights and remedies of creditors; and
		

		
			6.1.3    the execution, delivery and performance by such Party of this Agreement and any other agreements and instruments contemplated hereunder will not (i) in any respect violate any statute, regulation, judgment, order, decree or other restriction of any governmental authority to which such Party is subject, (ii) violate any provision of the corporate charter, by-laws or other organizational documents of such Party, or (iii) constitute a material violation or breach by such Party of any provision of any material contract, agreement or instrument to which such Party is a party or to which such Party may be subject although not a party.
		

		
			
		

		
			

		 

		

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			6.2       Company Representations and Warranties.  Company represents and warrants to Merck that as of the date of this Agreement:
		

		
			6.2.1    to Company’s knowledge, the issued Patent Rights within the Company Background IP are not invalid or unenforceable, in whole or in part;
		

		
			6.2.2    it has the full right, power and authority to enter into this Agreement, to perform the activities hereunder, including the Research Program, and to grant the licenses granted hereunder (including under Article 3);
		

		
			6.2.3    it (and its Affiliates) has not prior to the Effective Date otherwise granted any rights to any Third Parties that would conflict with the rights granted to Merck hereunder;
		

		
			6.2.4    to Company’s knowledge, it owns or controls the Company Background IP, all of which are (and shall be, in the case of Company Information and Inventions) free and clear of any liens, charges and encumbrances;
		

		
			6.2.5    neither it nor any of its Affiliates has received any written notification from a Third Party that the use of the Company Background IP infringes or misappropriates the Patent Rights or know-how owned or controlled by such Third Party, and Company has no actual knowledge that a Third Party has any basis for any such claim;
		

		
			6.2.6    Company has obtained all necessary consents, approvals and authorizations of all governmental authorities and other Persons required to be obtained by it as of the Effective Date, as applicable, in connection with the execution, delivery and performance of this Agreement by Company; and
		

		
			6.2.7    Company (and its Affiliates) has not employed or otherwise used in any capacity, and will not employ or otherwise use in any capacity, the services of any Person debarred under United States law, including under Section 21 USC 335a or any foreign equivalent thereof, in performing any portion of the Research Program.
		

		
			6.3       Warranty Disclaimer.  EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT, NEITHER PARTY MAKES ANY WARRANTY WITH RESPECT TO ANY TECHNOLOGY, PATENTS, GOODS, SERVICES, RIGHTS OR OTHER SUBJECT MATTER OF THIS AGREEMENT, AND EACH PARTY HEREBY DISCLAIMS WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT WITH RESPECT TO ANY AND ALL OF THE FOREGOING.  THE PARTIES ACKNOWLEDGE THAT ANY INFORMATION, BIOLOGICAL MATERIAL AND KNOW-HOW PROVIDED BY ONE PARTY TO ANOTHER HEREUNDER, ARE PROVIDED “AS IS” WITH NO WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED.
		

		
			ARTICLE 7   PATENT PROVISIONS.
		

		
			7.1       Filing, Prosecution and Maintenance of Patents.
		

		
			7.1.1    Patent Rights in Company Background IP.  Company, or, as applicable, Company’s licensors, shall be solely responsible for the preparation, filing, prosecution and
		

		
			
		

		
			

		 

		

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			maintenance of any patent or patent application claiming Company Background IP and during the term of this Agreement, shall keep Merck reasonably informed regarding the filing and prosecution of any such patent applications filed by Company during the Research Term.
		

		
			7.1.2    Company Patent Rights Prior to Option Exercise.  On a program-by-program basis, until the earlier of (i)(A) [***] License Option exercise by Merck or (B) [***] License Option exercise by Merck (as applicable) and (ii) expiration of the later of (A) the [***] Option Term or (B) the [***] Option Term (as applicable), Company shall have the sole right to prosecute all Research Program Patent Rights arising from the applicable program, in consultation with Merck, and in accordance with the following:
		

		
			(a)        Company shall give Merck an opportunity to review the text of any draft patent application before filing. Company shall consult with Merck with respect to such patent application, and shall make all changes to such application reasonably requested by Merck.  Merck shall provide to Company any feedback regarding such application within thirty (30) days of Company consulting with Merck under this section. For clarity, Company shall not be required to make a change requested by Merck to any Research Program Patent Right that Company reasonably determines would be detrimental to any Company Background IP.
		

		
			(b)        Company agrees not to file any patent application that would be a Product-Specific Company Patent Right or Joint Patent Right (in the event that Merck were to exercise the applicable Option).  Merck, in consultation with Company, shall have the right to determine whether claims or unclaimed disclosure in any draft patent application under this section cover such subject matter and, if Merck so determines, then Company will remove such claims or disclosure from the draft.
		

		
			(c)        Company shall supply Merck with a copy of the application as filed, together with notice of its filing date and serial number.
		

		
			(d)        Company shall keep Merck advised of the prosecution and maintenance status of the Research Program Patent Rights and, upon Merck’s request, shall provide advance copies of draft responses to substantive official office actions for review and comment by Merck. Such comments shall be provided by Merck within fourteen (14) days after receipt of such office actions. Company shall follow any reasonable advice and suggestions timely provided by Merck in connection therewith.
		

		
			(e)        Company shall promptly give notice to Merck of the grant, lapse, revocation, surrender, invalidation or abandonment of any Research Program Patent Rights licensed to Merck.
		

		
			(f)        Company shall give notice to Merck of any desire to cease prosecution and/or maintenance of any Research Program Patent Right on a country-by-country basis in the Territory and, in such case, shall permit Merck, in its sole discretion, to continue prosecution or maintenance of such Research Program Patent Right at its own expense.  If Merck elects to continue prosecution or maintenance of such
		

		
			
		

		
			

		 

		

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			Research Program Patent Right, Company shall execute documents in a timely manner as may be reasonably necessary to allow Merck to continue such prosecution and maintenance.  During prosecution of an application, however, Company may on its own, without providing such notice, abandon an application as long as a parent or child of such application is co-pending.
		

		
			7.1.3    Product-Specific Company Patent Rights Following Option Exercise.  If Merck exercises a License Option, from the date of such License Option exercise: Merck shall have the first right to file the corresponding patent applications claiming such Product-Specific Company Patent Rights included within such License Option at its own expense; and the following provisions shall apply with respect to such patent applications in the Product-Specific Company Patent Rights claiming or covering the corresponding subject matter:
		

		
			(a)        Merck shall give Company an adequate opportunity to review the text of any draft patent application before filing. Company shall provide to Merck any feedback regarding such application within thirty (30) days of receipt thereof. Merck shall supply Company with a copy of the application as filed, together with notice of its filing date and serial number.
		

		
			(b)        Upon request from Merck, at Merck’s expense, Company will cooperate with Merck in the drafting, prosecution and filing of Product-Specific Company Patent Rights including, but not limited to, determination of proper inventorship, execution of formal papers (including declarations, powers of attorney and assignments) and providing technical feedback and experimental data.
		

		
			(c)        Merck has the first right to prosecute and maintain the Product-Specific Company Patent Rights and to select countries in which to file the Product-Specific Company Patent Rights.  Merck shall use Commercially Reasonable Efforts with regard to selecting countries in which to file the Product-Specific Company Patent Rights.
		

		
			(d)        Merck shall keep Company advised of the status of the prosecution and maintenance status of the Product-Specific Company Patent Rights and, upon Company’s written request, shall provide copies of office actions related to the prosecution and maintenance of the Product-Specific Company Patent Rights.
		

		
			(e)        Merck shall promptly give notice to Company of the grant, lapse, revocation, surrender, invalidation or abandonment of any Product-Specific Company Patent Rights.
		

		
			(f)        Merck shall give at least fifteen (15) days’ advanced written notice to Company of any desire to cease prosecution and/or maintenance of Product-Specific Company Patent Rights on a country-by-country basis in the Territory and, in such case, shall permit Company, in its sole discretion, to assume and continue prosecution or maintenance of such Product-Specific Company Patent Rights at its own expense. During prosecution of an application, however, Merck may on its own, without providing such notice, abandon an application as long as a parent or child of such application is co-pending.
		

		
			
		

		
			

		 

		

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			7.1.4    Research Program Patent Rights Following Option Exercise.  If Merck exercises a License Option, from the date of such License Option exercise: Company shall have the first right to prosecute all Research Program Patent Rights arising from the applicable program, in consultation with Merck, and in accordance with the following:
		

		
			(a)        Company shall give Merck an opportunity to review the text of any draft patent application before filing. Company shall consult with Merck with respect to such patent application, and shall make all changes to such application reasonably requested by Merck.  Merck shall provide to Company any feedback regarding such application within thirty (30) days of Company consulting with Merck under this section. For clarity, Company shall not be required to make a change requested by Merck to any Research Program Patent Right that Company reasonably determines would be detrimental to any Company Background IP.
		

		
			(b)        Company agrees not to file any patent application that would be a Product-Specific Company Patent Right or Joint Patent Right.  Merck, in consultation with Company, shall have the right to determine whether claims or unclaimed disclosure in any draft patent application under this section cover Product-Specific Company Patent Rights or Joint Patent Rights and, if Merck so determines, then Company will remove such claims or disclosure.
		

		
			(c)        Company shall supply Merck with a copy of the application as filed, together with notice of its filing date and serial number.
		

		
			(d)        Company shall keep Merck advised of the prosecution and maintenance status of the Research Program Patent Rights and, upon Merck’s request, shall provide advance copies of draft responses to substantive official office actions for review and comment by Merck. Such comments shall be provided by Merck within fourteen (14) days after receipt of such office actions. Company shall follow any reasonable advice and suggestions timely provided by Merck in connection therewith.
		

		
			(e)        Company shall promptly give notice to Merck of the grant, lapse, revocation, surrender, invalidation or abandonment of any Research Program Patent Rights licensed to Merck.
		

		
			(f)        Company shall give notice to Merck of any desire to cease prosecution and/or maintenance of Research Program Patent Rights on a country-by-country basis in the Territory and, in such case, shall permit Merck, in its sole discretion, to continue prosecution or maintenance of such Research Program Patent Rights at its own expense.  If Merck elects to continue prosecution or maintenance of such Research Program Patent Rights, Company shall execute documents in a timely manner as may be reasonably necessary to allow Merck to continue such prosecution and maintenance.  During prosecution of an application, however, Company may on its own, without providing such notice, abandon an application as long as a parent or child of such application is co-pending.
		

		
			
		

		
			

		 

		

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			7.1.5    Joint Patent Rights.  Until the earlier of (i)(A) the [***] License Option exercise by Merck or (B) the [***] Option Exercise by Merck and (ii) expiration of the later of (A) the [***] Option Term or (B) the [***] Option Term, neither Party shall, without the other Party’s written consent, file patent applications that claim or cover Joint Information and Inventions. Company shall have the first right to file the corresponding patent applications claiming or covering such Joint Information and Inventions only if Merck does not exercise the corresponding License Option. Following exercise by Merck of a License Option, if at all: Merck shall have the first right to file the corresponding patent applications claiming or covering such Joint Information and Inventions; and the following provisions shall apply with respect to patent applications in such Joint Patent Rights:
		

		
			(a)        Merck shall give Company an adequate opportunity to review the text of any patent application before filing, shall consult with Company with respect thereto, and shall supply Company with a copy of the application as filed, together with notice of its filing date and serial number.
		

		
			(b)        Upon request from Merck, at Merck’s expense, Company will cooperate with Merck in the drafting, prosecution and filing of Joint Patent Rights including, but not limited to, determination of proper inventorship, execution of formal papers (including declarations, powers of attorney and assignments) and providing technical feedback and experimental data.
		

		
			(c)        Merck has the first right to prosecute and maintain the Joint Patent Rights and to select countries in which to file the Joint Patent Rights.
		

		
			(d)        Merck shall keep Company advised of the status of the Joint Patent Rights and, upon Company’s written request, shall provide copies of office actions related to the prosecution and maintenance of the Joint Patent Rights.
		

		
			(e)        Merck shall give notice to Company of the grant, lapse, revocation, surrender, invalidation or abandonment of any Joint Patent Rights.
		

		
			(f)        Merck shall give at least fifteen (15) days’ advanced written notice to Company of any desire to cease prosecution and/or maintenance of Joint Patent Rights on a country-by-country basis in the Territory and, in such case, shall permit Company, in its sole discretion, to assume and continue prosecution or maintenance of such Joint Patent Rights at its own expense. During prosecution of an application, however, Merck may on its own, without providing such notice, abandon an application as long as a parent or child of such application is co-pending.
		

		
			7.1.6    Other Provisions. Following exercise of a License Option by Merck, if at all:
		

		
			(a)        Patent Term Extension.  The Parties shall cooperate fully with each other to provide necessary information and assistance, as the other Party may reasonably request, in obtaining patent term extension or supplemental protection certificates or their equivalents in any country in the Territory where applicable to Company Patent Rights and Joint Patent Rights of the corresponding exercised License Option.  In the event that elections with respect to obtaining such patent term
		

		
			
		

		
			

		 

		

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			extension are to be made, Merck shall have the right to make the election and Company agrees to abide by such election.
		

		
			(b)        Other Cooperation.  The Parties agree to cooperate fully and provide any information and assistance that either may reasonably request for the filing, prosecution and maintenance of Company Patent Rights and Joint Patent Rights.  The Parties further agree to take reasonable actions to maximize the protections available under the safe harbor provisions of 35 U.S.C. 102(c) for U.S. patents and patent applications.
		

		
			7.1.7    Filing, Prosecution and Maintenance Expenses.  With respect to all filing, prosecution and maintenance activities under this Section 7.1, the filing and/or prosecuting Party shall be responsible for payment of all costs and expenses related to such activities.
		

		
			7.1.8    Inventor Remuneration.  Company shall comply with all applicable country-specific inventor remuneration laws and regulations associated with Company Patent Rights and Joint Patent Rights when inventor remuneration obligations are triggered by an employee of Company and/or its Affiliates, or a Third Party acting on behalf of Company and/or its Affiliates.  Merck shall comply with all applicable country-specific inventor remuneration laws and regulations associated with Joint Patent Rights when inventor remuneration obligations are triggered by an employee of Merck and/or its Affiliates, or a Third Party acting on behalf of Merck and/or its Affiliates.
		

		
			7.2       Interference, Derivation, Opposition, Reexamination, Reissue, Supplemental Examination, Inter Partes Review and Post-Grant Review Proceedings.  Following exercise by Merck of the [***] License Option or [***] License Option, if at all, the following provisions shall apply with respect to any Product-Specific Company Patent Rights or Joint Patent Rights corresponding to the exercised License Option:
		

		
			7.2.1    Third Party Initiated Proceedings.  Each Party shall, within ten (10) days of learning of such event, inform the other Party of any request for, or filing or declaration of, any interference, derivation proceeding, opposition, reexamination requested by a Third Party, inter partes review, post-grant review or similar contested administrative proceeding involving a Third Party relating to Product-Specific Company Patent Rights or Joint Patent Rights.  Merck and Company shall thereafter consult and cooperate fully to determine a course of action with respect to any such proceeding.  Merck shall have the right to control such proceedings with respect to Product-Specific Company Patent Rights and Joint Patent Rights, and Company shall have the right to review any submission to be made in connection with such proceeding.  The controlling Party shall bear all costs of conducting such proceedings.
		

		
			7.2.2    Party Initiated Proceedings.  Merck shall have the sole right and discretion to initiate a reexamination, supplemental examination, reissue or similar administrative proceeding relating to Product-Specific Company Patent Rights or Joint Patent Rights.  Company shall have the right to review any submission to be made in connection with such proceeding.  If there is disagreement regarding whether a reexamination, supplemental examination, reissue or similar administrative proceeding relating to Product-Specific Company Patent Rights or Joint Patent Rights should be initiated, such disagreement shall be referred to the
		

		
			
		

		
			

		 

		

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			senior intellectual property officers of the Parties.  In the event that these two executives do not, after reasonable efforts, reach agreement, the resolution and/or course of conduct shall be determined by Merck.  In the event that Merck chooses not to initiate a proceeding under this Section 7.2.2, and upon Merck’s written consent, Company shall have the right to initiate such proceedings.  Merck shall have the right to control such proceedings.
		

		
			7.2.3    Cooperation.  In connection with any administrative proceeding under Section 7.2.1 or 7.2.2, Merck and Company shall cooperate fully and provide each other with any information or assistance that either may reasonably request. The Parties shall keep each other informed of developments in any such action or proceeding, including the status of any settlement negotiations and the terms of any offer related thereto.  For any proceeding not controlled by Merck, Company shall obtain prior approval from Merck of any settlement offer or settlement agreement, which approval shall not be unreasonably withheld, conditioned or delayed.
		

		
			7.2.4    Expenses. The Party controlling any administrative proceeding pursuant to Section 7.2.1 and 7.2.2 shall bear all expenses related thereto.
		

		
			7.3       Enforcement and Defense.  Following exercise by Merck of the [***] License Option or the [***] License Option, if at all, the following provisions shall apply with respect to any Know-How, Product-Specific Company Patent Rights, or Joint Patent Rights; or any Company Background IP or Research Program Patent Rights that claim Product or Product Candidate as a composition-of-matter or, on a country-by-country basis, a method of treatment of a human disease which has received Marketing Authorization by the appropriate Regulatory Authority in the country in the Territory corresponding to the exercised License Option:
		

		
			7.3.1    The Parties shall give notice to each other of either (i) any infringement of Product-Specific Company Patent Rights or Joint Patent Rights; or any Company Background IP or Research Program Patent Rights that claim Product or Product Candidate as a composition-of-matter or, on a country-by-country basis, a method of treatment of a human disease which has received Marketing Authorization by the appropriate Regulatory Authority in the country in the Territory (including filing of a Biosimilar Application filed under Section 351(k) of the Public Health Service Act for which Merck is a reference product sponsor), or (ii) any misappropriation or misuse of Company Know-How, that may come to its attention.  Merck and Company shall thereafter consult and cooperate fully to determine a course of action, including but not limited to the commencement of legal action by either or both Merck and Company, to terminate any infringement of Product-Specific Company Patent Rights or Joint Patent Rights; or any Company Background IP or Research Program Patent Rights that claim Product or Product Candidate as a composition-of-matter or, on a country-by-country basis, a method of treatment of a human disease which has received Marketing Authorization by the appropriate Regulatory Authority in the country in the Territory or any misappropriation or misuse of Company Know-How.  The final decision regarding the course of action, however, will be Merck’s.  Merck, upon notice to Company, shall have the first right to initiate and prosecute such legal action at its own expense and in the name of Merck and/or Company.  Merck will have the right to control such legal action relating to Product-Specific Company Patent Rights, Company Know-How or Joint Patent Rights; or any Company Background IP or Research Program Patent Rights that claim Product or Product Candidate as a composition-of-matter or, on a country-by-country
		

		
			
		

		
			

		 

		

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			basis, a method of treatment of a human disease which has received Marketing Authorization by the appropriate Regulatory Authority in the country in the Territory, including selection of any patents for listing under 42 U.S.C. §262(l), and to control the defense of any declaratory judgment action relating to Product-Specific Company Patent Rights, Company Know-How or Joint Patent Rights; or any Company Background IP or Research Program Patent Rights that claim Product or Product Candidate as a composition-of-matter or, on a country-by-country basis, a method of treatment of a human disease which has received Marketing Authorization by the appropriate Regulatory Authority in the country in the Territory. Each Party shall have the right to be represented by counsel of its own choice.
		

		
			7.3.2    Merck shall promptly inform Company if it elects not to exercise its first right under Section 7.3.1 to initiate and prosecute legal action, and, if Merck consents, Company shall thereafter have the right to either initiate and prosecute such action or to control the defense of such declaratory judgment action in the name of Company and, if necessary, Merck.  If Company elects to do so, the costs of any agreed-upon course of action to terminate infringement of Product-Specific Company Patent Rights or Joint Patent Rights; or any Company Background IP or Research Program Patent Rights that claim Product or Product Candidate as a composition-of-matter or, on a country-by-country basis, a method of treatment of a human disease which has received Marketing Authorization by the appropriate Regulatory Authority in the country in the Territory; or misappropriation or misuse of Company Know-How, including without limitation the costs of any legal action commenced or the defense of any declaratory judgment, shall be paid by Company.  Each Party shall have the right to be represented by counsel of its own choice.
		

		
			7.3.3    For any action to terminate any infringement of Product-Specific Company Patent Rights or Joint Patent Rights; or any Company Background IP or Company Patent Rights that claim Product or Product Candidate as a composition-of-matter or, on a country-by-country basis, a method of treatment of a human disease which has received Marketing Authorization by the appropriate Regulatory Authority in the country in the Territory; or any misappropriation or misuse of Company Know-How, in the event that a Party is unable to initiate or prosecute such action solely in its own name, the other Party will join such action voluntarily and will execute and cause its Affiliates to execute all lawful documents necessary for the Party to initiate litigation to prosecute and maintain such action under this Section 7.3.  In connection with any action or potential action, Merck and Company will cooperate fully and will provide each other with any information or assistance that either may reasonably request, including cooperating with regard to any pre-litigation review of the Product-Specific Company Patent Rights and Joint Patent Rights; or any Company Background IP or Research Program Patent Rights that claim Product or Product Candidate as a composition-of-matter or, on a country-by-country basis, a method of treatment of a human disease which has received Marketing Authorization by the appropriate Regulatory Authority in the country in the Territory.  Each Party shall keep the other informed of developments in any action or proceeding.  For any proceeding not controlled by Merck, Company shall obtain prior approval from Merck of any settlement offer or settlement agreement, such approval not to be unreasonably withheld, delayed or conditioned.
		

		
			
		

		
			

		 

		

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			7.3.4    Any recovery obtained by either or both Merck and Company in connection with or as a result of any action contemplated by this Section, whether by settlement or otherwise, shall be shared in order as follows:
		

		
			(a)        the Party which initiated and prosecuted the action shall recoup all of its costs and expenses incurred in connection with the action;
		

		
			(b)        the other Party shall then, to the extent possible, recover its costs and expenses incurred in connection with the action; and
		

		
			(c)        the amount of any recovery remaining shall then be allocated between the Parties on a pro rata basis taking into consideration the relative economic losses suffered by each Party.
		

		
			ARTICLE 8   TERM AND TERMINATION
		

		
			8.1       Term and Expiration.  This Agreement shall be effective as of the Effective Date and unless terminated earlier pursuant to Sections 8.2 or 8.3, this Agreement shall continue in full force and effect until one or more Products has received Marketing Authorization and, thereafter, until expiration of all royalty obligations hereunder.  Upon expiration of this Agreement, Merck's licenses pursuant to Section 3.2.1 and 3.2.2 shall become fully paid-up, perpetual licenses.
		

		
			8.2       Termination by Merck.
		

		
			8.2.1    During the Term of the License Option. During the term of the License Option, notwithstanding anything contained herein to the contrary, Merck shall have the right to terminate this Agreement, in its sole discretion, by giving ninety (90) days’ advance written notice of such termination to Company. For the avoidance of doubt, termination by Merck under this Section can be effected only through a written notice specifically referring to this Section.
		

		
			8.2.2    Following Option Exercise. Notwithstanding anything contained herein to the contrary, and following exercise of a License Option by Merck, if at all, Merck shall have the right to terminate this Agreement at any time in its sole discretion by giving ninety (90) days’ advance written notice to Company.  For the avoidance of doubt, termination by Merck under this Section can be effected only through a written notice specifically referring to this Section.
		

		
			8.2.3    Termination due to Option Expiration. If Merck does not exercise a License Option on or before the end of the term of the License Option, this Agreement shall terminate automatically with no further action of the Parties.
		

		
			8.3       Termination for Cause.
		

		
			8.3.1    Cause for Termination.  This Agreement may be terminated at any time during the term of this Agreement:
		

		
			
		

		
			

		 

		

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			(a)        upon written notice by either Party if the other Party is in breach of its material obligations hereunder by causes and reasons within its control and has not cured such breach within ninety (90) days after notice requesting cure of the breach; provided,  however, in the event of a good faith dispute with respect to the existence of a material breach, the ninety (90) day cure period shall be tolled until such time as the dispute is resolved pursuant to Section 9; or
		

		
			(b)        by either Party upon the filing or institution of bankruptcy, reorganization, liquidation or receivership proceedings, or upon an assignment of a substantial portion of the assets for the benefit of creditors by the other Party; provided,  however, that in the case of any involuntary bankruptcy proceeding such right to terminate shall only become effective if the Party consents to the involuntary bankruptcy or such proceeding is not dismissed within ninety (90) days after the filing thereof.
		

		
			8.3.2    Effect of Termination by Merck for Cause under Section 8.3.1(a).  In addition to Sections 8.4 and 8.5, if this Agreement is terminated by Merck pursuant to Section 8.3.1(a) following exercise by Merck of a License Option for a material breach by Company of Article 4 of this Agreement, Merck’s licenses pursuant to Sections 3.2.1 and 3.2.2 shall become perpetual licenses subject to the payment of royalties pursuant to the terms of Section 5.2.3 in an amount equal to fifty percent (50%) of any amounts set forth in such Section 5.2.3.
		

		
			8.3.3    Effect of Termination for Cause under Section 8.3.1(b).  In addition to Sections 8.4 and 8.5, if this Agreement is terminated by Merck pursuant to Section 8.3.1(b) due to the rejection of this Agreement by or on behalf of Company under Section 365 of the United States Bankruptcy Code (the “Code”), all licenses and rights to licenses granted under or pursuant to this Agreement by Company to Merck are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the Code, licenses of rights to “intellectual property” as defined under Section 101(35A) of the Code.  The Parties agree that Merck, as a licensee of such rights under this Agreement, shall retain and may fully exercise all of its rights and elections under the Code, and that upon commencement of a bankruptcy proceeding by or against Company under the Code, Merck shall be entitled to a complete duplicate of or complete access to (as Merck deems appropriate), any such intellectual property and all embodiments of such intellectual property.  Such intellectual property and all embodiments thereof shall be promptly delivered to Merck (i) upon any such commencement of a bankruptcy proceeding upon written request therefore by Merck, unless Company elects to continue to perform all of its obligations under this Agreement or (ii) if not delivered under (i) above, upon the rejection of this Agreement by or on behalf of Company upon written request therefore by Merck.  The foregoing provisions of this Section 8.3.3 are without prejudice to any rights Merck may have arising under the Code or other applicable law.
		

		
			8.3.4    Termination of Certain Licenses. If Merck or a Related Party commences or otherwise, directly or indirectly, pursues (or assists Third Parties to do so) any Challenge of any Patent Right included in the Company Patent Rights, Merck’s licenses hereunder shall terminate.  For the purpose of this Section, “Challenge” means any challenge to the validity or enforceability of the applicable Patent Right, including by (i) filing a declaratory judgment action in which the applicable Patent Right is alleged to be invalid or unenforceable, (ii)
		

		
			
		

		
			

		 

		

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			citing prior art pursuant to 35 U.S.C. §301, filing a request for re-examination of the applicable Patent Right, or provoking or becoming party to an interference with the applicable Patent Right pursuant to 35 U.S.C. §135 or (iii) filing or commencing any re-examination, opposition, cancellation, nullity or similar proceedings against the applicable Patent Right, or petitioning for any form of administrative or judicial (or arbitration) review of the applicable Patent Right, including post-grant review, Inter Partes Review, or opposition proceedings.
		

		
			8.4       Effects of Termination.  In the event of any termination of this Agreement (except as otherwise expressly stated):
		

		
			8.4.1    Except for the surviving provisions set forth in Section 8.5, the rights and obligations of the Parties hereunder (including the licenses and option rights under Article 3) shall terminate as of the date of such termination.
		

		
			8.4.2    No later than thirty (30) days after the effective date of termination, each Party shall return or cause to be returned to the other Party all Information  in tangible form received from the other Party and all copies thereof; provided,  however, that each Party may retain any Information reasonably necessary for such Party’s continued practice under any license(s) which do not terminate pursuant to this Section, and may keep one copy of Information received from the other Party in its confidential files for record purposes.
		

		
			8.4.3    Each Party shall pay all amounts then due and owing as of the termination date.
		

		
			8.4.4    The Parties shall confer to determine how the Joint Patent Rights will be addressed.
		

		
			8.4.5    Upon termination of this Agreement by either Party (other than a termination of this Agreement by Merck where Section 8.3.2 applies) following exercise of a License Option by Merck, (i) Merck and its Affiliates, sublicensees and distributors shall be entitled, during the twelve (12)-month period immediately following the effective date of termination, to finish any work-in-progress and to sell any Product or Product Candidate remaining in inventory, in accordance with the terms of this Agreement, subject to royalties therefor, and (ii) the obligations under Article 5 (Payments, Royalties and Reports) in connection with any selling permitted by clause (i) above shall continue in force and effect during such twelve (12)-month period until the expiration of the Royalty Period for each Product (provided for clarity that this clause shall not be construed to grant any licenses to Merck other than the permissions granted pursuant to this Section 8.4.5).
		

		
			8.5       Effect of Expiration or Termination; Survival.  Expiration or termination of this Agreement shall not relieve the Parties of any obligation accruing prior to such expiration or termination.  Any expiration or termination of this Agreement shall be without prejudice to the rights of either Party against the other accrued or accruing under this Agreement prior to expiration or termination, including without limitation the obligation to pay royalties for Product(s) or Product Candidate sold prior to such expiration or termination. The provisions of Section 4.1 shall survive the expiration or termination of this Agreement and shall continue in effect for ten (10) years.  The provisions of Article 1 (Definitions), Article 8 (Termination) and Article 9 (Miscellaneous) and Sections 2.7.1 (Research Information and Inventions), 7.1.5 (Joint Patent Rights), shall survive any expiration or termination of this Agreement.
		

		
			
		

		
			

		 

		

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			ARTICLE 9   MISCELLANEOUS
		

		
			9.1       Indemnification.
		

		
			9.1.1    Indemnification by Merck.  Merck hereby agrees to indemnify, hold harmless and defend Company, its Affiliates and their respective officers, directors, agents, employees, successors and assigns (collectively, the “Company Indemnified Parties”) against any and all losses, costs, expenses, fees or damages arising out of or relating to claims, allegations, suits, actions or proceedings asserted by any Third Party, whether governmental or private, arising out of or relating to (i) breach by Merck of Section 2.9 (Compliance with Law and Ethical Business Practices), or (ii) if a License Option is exercised by Merck, the clinical development, manufacture, use, sale or other disposition of any Product Candidate or Product by Merck any Related Party.
		

		
			9.1.2    Indemnification by Company.  Company agrees to indemnify, hold harmless and defend Merck, its Affiliates and their respective officers, directors, agents, employees, successors and assigns (collectively, the “Merck Indemnified Parties”) against any and all losses, costs, expenses, fees or damages arising out of or relating to claims, allegations, suits, actions or proceedings asserted by any Third Party, whether governmental or private, arising out of or relating to breach by Company of Section 2.9 (Compliance with Law and Ethical Business Practices).
		

		
			9.1.3    Procedure.  If either Party is seeking indemnification under Section 9.1 (the “Indemnified Party”), it shall inform the other Party (the “Indemnifying Party”) of the claim giving rise to the obligation to indemnify pursuant to such Section as soon as reasonably practicable after receiving notice of the claim (provided,  however, any delay or failure to provide such notice shall not constitute a waiver or release of, or otherwise limit, the Indemnified Party’s rights to indemnification under, as applicable, Section 9.1, except to the extent that such delay or failure materially prejudices the Indemnifying Party’s ability to defend against the relevant claims). The Indemnifying Party shall have the right to assume the defense of any such claim for which it is obligated to indemnify the Indemnified Party. The Indemnified Party shall cooperate with the Indemnifying Party and the Indemnifying Party’s insurer as the Indemnifying Party may reasonably request, and at the Indemnifying Party’s cost and expense. The Indemnified Party shall have the right to participate, at its own expense and with counsel of its choice, in the defense of any claim or suit that has been assumed by the Indemnifying Party. The Indemnifying Party shall not settle any claim without the prior written consent of the Indemnified Party, not to be unreasonably withheld or delayed. The Indemnified Party shall not settle or compromise any such claim without the prior written consent of the Indemnifying Party, which it may provide (or not) in its sole discretion. If the Parties cannot agree as to the application of Section 9.1 to any claim, pending resolution of the dispute pursuant to Section 9.9, the Parties may conduct separate defenses of such claims, with each Party retaining the right to claim indemnification from the other Party in accordance with Section 9.1 upon resolution of the underlying claim.
		

		
			9.2       Limitation of Liability.  NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY UNDER ANY THEORY FOR, NOR SHALL ANY INDEMNIFIED PARTY HAVE THE RIGHT TO RECOVER, ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL, INDIRECT OR
		

		
			
		

		
			

		 

		

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			OTHER SIMILAR DAMAGES OR ANY PUNITIVE DAMAGES OR ANY LOST PROFIT, LOST SALE OR LOST OPPORTUNITY DAMAGES (WHETHER SUCH DAMAGES ARE CLAIMED DIRECTLY OR INDIRECTLY) ARISING FROM OR RELATING TO THIS AGREEMENT (INCLUDING BREACH OF THIS AGREEMENT) OR THE EXERCISE OF ITS RIGHTS HEREUNDER, REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH DAMAGES; PROVIDED, HOWEVER, THAT SUCH LIMITATION SHALL NOT APPLY TO DAMAGES PAID OR PAYABLE TO A THIRD PARTY BY AN INDEMNIFIED PARTY FOR WHICH THE INDEMNIFIED PARTY IS ENTITLED TO INDEMNIFICATION HEREUNDER AND WITH RESPECT TO DAMAGES ARISING OUT OF OR RELATED TO A BREACH OF ITS CONFIDENTIALITY OBLIGATIONS UNDER ARTICLE 4.
		

		
			9.3       Force Majeure.  Neither Party shall be held liable to the other Party nor be deemed to have defaulted under or breached this Agreement for failure or delay in performing any obligation under this Agreement to the extent such failure or delay is caused by or results from causes beyond the reasonable control of the affected Party, potentially including, but not limited to, embargoes, war, acts of war (whether war be declared or not), acts of terrorism, insurrections, riots, civil commotions, strikes, lockouts or other labor disturbances, fire, floods, or other acts of God, or acts, omissions or delays in acting by any governmental authority or the other Party.  The affected Party shall notify the other Party of such force majeure circumstances as soon as reasonably practical, and shall promptly undertake all reasonable efforts necessary to cure such force majeure circumstances.
		

		
			9.4       Assignment.  Except as provided in this Section 9.4, this Agreement may not be assigned or otherwise transferred, nor may any right or obligation hereunder be assigned or transferred, by either Party without the consent of the other Party; provided,  however, that (i) Merck may, without such consent, assign, in whole or in part, this Agreement and its rights and obligations hereunder to an Affiliate and (ii) either Party may, without such consent, assign this Agreement in connection with the transfer or sale of all or substantially all of its assets related to the subject matter of this Agreement, or in the event of its merger or consolidation or change in control or similar transaction. Any attempted assignment not in accordance with this Section 9.4 shall be void.  Any permitted assignee shall assume all assigned obligations of its assignor under this Agreement.
		

		
			9.5       Use of Affiliates.  Merck shall have the right to exercise its rights and perform its obligations under this Agreement either itself or through any of its Affiliates; provided, for clarity, that Merck shall remain at all times fully liable for its responsibilities under this Agreement and a Merck Affiliate shall have no right to enforce this Agreement against Company.
		

		
			9.6       Severability.  If any one or more of the provisions contained in this Agreement is held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby, unless the absence of the invalidated provision(s) adversely affects the substantive rights of the Parties.  The Parties shall in such an instance use reasonable efforts to replace the invalid, illegal or unenforceable provision(s) with valid, legal and enforceable provision(s) which, insofar as practical, implement the purposes of this Agreement.
		

		
			9.7       Notices.  All notices which are required or permitted hereunder shall be in writing and sufficient if delivered personally, sent by facsimile (and promptly confirmed by personal delivery,
		

		
			
		

		
			

		 

		

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			registered or certified mail or overnight courier), sent by nationally-recognized overnight courier or sent by registered or certified mail, postage prepaid, return receipt requested, addressed as follows:
		

		
			 
		

			
					
						if to Company, to:

					
					
						SYNTHETIC GENOMICS, INC.11149 North Torrey Pines Road

					
						La Jolla, CA 92037

					
						Attention: Chief Executive Officer

					
						 

				
	
					
						 

				
	
					
						 

				
	
					
						 

				
	
					
						and:

					
					
						Attention: Office of General Counsel

					
						 

				
	
					
						 

					
					
						 

				
	
					
						if to Merck, to:

					
					
						Merck Sharp & Dohme Corp.

					
						One Merck Drive

					
						Whitehouse Station, NJ 08889-0100

					
						Attention: Office of Secretary

					
						Facsimile No.:  (908) 735-1246

				
	
					
						and

					
					
						Merck Sharp & Dohme Corp.

					
						2000 Galloping Hill Road

					
						PO Box 539

					
						Mailstop K-1-4161

					
						Kenilworth, NJ 07033-1310

					
						Attention: Senior Vice President, Business Development

					
						 

					
						 

				

		
			 
		

		
			or to such other address(es) as the Party to whom notice is to be given may have furnished to the other Party in writing in accordance herewith.  Any such notice shall be deemed to have been given: (a) when delivered if personally delivered or sent by facsimile on a business day (or if delivered or sent on a non-business day, then on the next business day); (b) on the business day after dispatch if sent by nationally-recognized overnight courier; or (c) on the fifth (5th) business day following the date of mailing, if sent by mail.  The Parties hereby agree that, to the extent permitted by law, any notice provided in accordance with this Section shall constitute due service of process with respect to any legal proceeding between the Parties arising hereunder and that compliance with the Hague Convention for the Service of Process, if otherwise applicable, shall not be required.
		

		
			9.8       Applicable Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York without reference to any rules of conflict of laws or renvoi.
		

		
			9.9       Dispute Resolution.
		

		
			9.9.1    The Parties shall negotiate and use reasonable efforts to settle any dispute, controversy or claim arising from or related to this Agreement or the breach thereof (a “Dispute”). Any Party shall give the other Party written notice of any Dispute not resolved in the normal course of business. Within 20 days from the date of delivery of such notice, the receiving Party shall submit to the other Party a written response.  The notice and response shall include (A) a statement of that Party's position and a summary of arguments supporting
		

		
			
		

		
			

		 

		

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			that position, and (B) the name and title of the executive who will represent that Party and of any other person who will accompany the executive.  Within 45 days from the date of delivery of the initial notice, the executives of both Parties shall meet at a mutually acceptable time and place, and thereafter as often as they reasonably deem necessary, to attempt to resolve the Dispute. These executives shall have the authority to settle the Dispute and shall be at a higher level of management than the persons with direct responsibility for administration of this Agreement. All negotiations pursuant to this paragraph are confidential and shall be treated as compromise and settlement negotiations for purposes of applicable rules of evidence.
		

		
			9.9.2    If the Parties do not fully settle following the procedure in Section 9.9.1, and a Party wishes to pursue the matter, each dispute, controversy or claim arising from or related to this Agreement or the breach thereof that is not an “Excluded Claim” shall be brought in (i) if the suit is initiated by Company, the federal court for the District of New Jersey, if federal jurisdiction is available, or, alternatively, in the state courts in Union County, New Jersey or (ii) if the suit is initiated by Merck, the federal court for the Southern District of California, if federal jurisdiction is available, or, alternatively, in the state courts in San Diego County, California.  Each of the Parties hereby submits to the exclusive jurisdiction of such courts for the purpose of any such litigation; provided, that a final judgment in any such litigation shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Each party irrevocably and unconditionally agrees not to assert (a) any objection which it may ever have to the laying of venue of any such litigation in such courts, (b) any claim that any such litigation brought in any such court has been brought in an inconvenient forum, and (c) any claim that such court does not have jurisdiction with respect to such litigation. EACH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT TO A TRIAL BY JURY AND AGREES THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG THE PARTIES IRREVOCABLY TO WAIVE ITS RIGHT TO TRIAL BY JURY IN ANY LITIGATION.
		

		
			9.9.3    As used in this Section, the term “Excluded Claim” means a dispute, controversy or claim that concerns (a) the validity or infringement of a patent, trademark or copyright; or (b) any antitrust, anti-monopoly or competition law or regulation, whether or not statutory.  Any action concerning Excluded Claims identified in clauses (a) and (b) of this Paragraph may be brought in any court having jurisdiction.
		

		
			9.10     Entire Agreement; Amendments.  This Agreement, together with the Schedules and Exhibits hereto, contains the entire understanding of the Parties with respect to the subject matter hereof.  Any other express or implied agreements and understandings, negotiations, writings and commitments, either oral or written, with respect to the subject matter hereof are superseded by the terms of this Agreement.  The Schedules and Exhibits to this Agreement are incorporated herein by reference and shall be deemed a part of this Agreement.  This Agreement may be amended, or any term hereof modified, only by a written instrument duly executed by authorized representative(s) of both Parties hereto. Notwithstanding anything to the contrary in the foregoing, that certain confidentiality agreement between the Parties dated as of August 17, 2016,
		

		
			
		

		
			

		 

		

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			shall remain in full force and effect with respect to the subject matter thereof and information disclosed thereunder.
		

		
			9.11     Headings.  The captions to the several Articles, Sections and subsections hereof are not a part of this Agreement, but are merely for convenience to assist in locating and reading the several Articles and Sections hereof.
		

		
			9.12     Independent Contractors.  It is expressly agreed that Company and Merck shall be independent contractors and that the relationship between the two Parties shall not constitute a partnership, joint venture or agency.  Neither Company nor Merck shall have the authority to make any statements, representations or commitments of any kind, or to take any action, which shall be binding on the other Party, without the prior written consent of the other Party.
		

		
			9.13     Waiver.  The waiver by either Party hereto of any right hereunder, or of any failure of the other Party to perform, or of any breach by the other Party, shall not be deemed a waiver of any other right hereunder or of any other breach by or failure of such other Party whether of a similar nature or otherwise.
		

		
			9.14     Waiver of Rule of Construction.  Each Party has had the opportunity to consult with counsel in connection with the review, drafting and negotiation of this Agreement.  Accordingly, the rule of construction that any ambiguity in this Agreement shall be construed against the drafting Party shall not apply.
		

		
			9.15     Certain Conventions.  Any reference in this Agreement to an Article, Section, subsection, paragraph, clause, Schedule or Exhibit shall be deemed to be a reference to an Article, Section, subsection, paragraph, clause, Schedule or Exhibit, of or to, as the case may be, this Agreement, unless otherwise indicated.  Whenever this Agreement refers to a number of days, unless otherwise specified, such number refers to calendar days.  Unless the context of this Agreement otherwise requires, (a) words of any gender include each other gender, (b) words such as “herein”, “hereof”, and “hereunder” refer to this Agreement as a whole and not merely to the particular provision in which such words appear, (c) words using the singular shall include the plural, and vice versa, (d) the words “include”, “includes”, and “including” shall be deemed to be followed by the words “without limitation”, unless otherwise specified, and (e) any reference to a statute, directive, regulation or other instrument having the force of law shall be deemed to be a reference to such statute, directive, regulation or instrument as it may be amended from time to time.
		

		
			9.16     Business Day Requirements.  In the event that any notice or other action or omission is required to be taken by a Party under this Agreement on a day that is not a business day, then such notice or other action or omission shall be deemed to be required to be taken on the next occurring business day.
		

		
			9.17     Counterparts.  This Agreement may be signed in any number of counterparts (including by facsimile or electronic transmission), each of which shall be deemed an original, but all of which shall constitute one and the same instrument.  After facsimile or electronic transmission, the Parties agree to execute and exchange documents with original signatures.
		

		
			 
		

		
			
		

		
			

		 

		

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			IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.
		

		
			 
		

			
					
						MERCK SHARP & DOHME CORP.

					
					
						    

					
					
						SYNTHETIC GENOMICS, INC.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						BY: 

					
					
						/s/ Benjamin Thorner

					
					
						 

					
					
						BY:

					
					
						/s/ Oliver Fetzer

				
	
					
						 

					
					
						Benjamin Thorner

					
					
						 

					
					
						 

					
					
						Oliver Fetzer

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						TITLE: SVP & Head of BD&L

					
					
						 

					
					
						TITLE: Chief Executive Officer

				

		
			 
		

		 

		

			45armp_Ex10_12

		
			Exhibit 10.12
		

		
			 
		

		
			CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
		

		
			BY [***] HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY
		

		
			CAUSE COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED.
		

		
			CONFIDENTIAL
		

		
			EXECUTION VERSION
		

		
			ASSET PURCHASE AGREEMENT
		

		
			THIS ASSET PURCHASE AGREEMENT (this “Agreement”), dated as of February 14, 2018, is made by and between C3J THERAPEUTICS, INC., a Washington corporation (“Purchaser”), and SYNTHETIC GENOMICS, INC., a Delaware corporation, and SYNTHETIC GENOMICS VACCINES, INC., a Delaware corporation (collectively, “Seller”). Purchaser and Seller may be referred to herein collectively as the “Parties” and individually as a “Party.”
		

		
			RECITALS
		

		
			A.          Seller operates research and development programs specific to engineering bacteriophage and Exploiting engineered and wild type bacteriophage (the “Business”).  For clarity, and notwithstanding the foregoing, the Business does not include (i) Seller’s research (and use) of phage display as an approach for discovery of antibodies and/or affinity binding reagents within the mammalian synthetic biology and biologics discovery and production programs or (ii) the commercial sale of antibody libraries which may be formatted for phage display (collectively, the “Other Phage Activities”).
		

		
			B.          The Business includes research programs being conducted by Seller pursuant to that certain Research Collaboration and Option to License Agreement between Seller and Merck Sharp and Dohme Corp. (“Merck”) dated May 24, 2017 (the “Merck Agreement”) relating to [***].
		

		
			C.          Seller desires to sell to Purchaser, and Purchaser desires to purchase from Seller, (i) certain of Seller’s assets, properties and rights necessary for the operation of the Business, and (ii) access to certain other assets, properties and rights used in the operation of the Business, in each case as set forth in this Agreement.
		

		
			D.          Contemporaneous with the execution of this Agreement, Dr. Magda Barbu (the “Key Employee”) and Purchaser have duly executed an employment agreement (the “Key Employee Employment Agreement”) which will go into effect upon the Closing.
		

		
			E.          Capitalized terms used herein without definition are defined in Annex A.
		

		
			AGREEMENT
		

		
			Now, Therefore, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, hereby agree as follows:
		

		
			ARTICLE 1
		

		
			PURCHASE AND SALE
		

		
			1.1        Assets to be Purchased and Sold.  Upon the terms and subject to the conditions of this Agreement, Purchaser hereby purchases from Seller, and Seller hereby sells, transfers, grants, conveys, assigns, and relinquishes exclusively to Purchaser, on the Closing Date, free and clear of all Encumbrances, all right, title and interest of Seller in, to and under the following assets (collectively, the “Transferred Assets”):
		

		
			
		

		
			

		 

		

		
			 
		

		
			(a)          all Program Materials (as defined in Schedule 1.1(a)) and other tangible personal property and assets set forth on Schedule 1.1(a);
		

		
			(b)         (i) the  Program Patents and (ii) all Know-How owned or otherwise controlled (with the right to transfer) by Seller and/or its Affiliates and used exclusively in the Business as currently conducted by Seller and its Affiliates (collectively, “Program IP”), together with all goodwill associated therewith and all rights and causes of action for past, present or future infringement, misappropriation, violation, misuse, dilution, unfair trade practice or otherwise associated therewith, and rights of priority and protection of interests therein;
		

		
			(c)         all rights under all Contracts of Seller that are listed on Schedule 1.1(d) (the “Assigned Contracts”), including, without limitation, any and all of Seller’s rights to milestone payments, grant funding and other receivables, earned or unearned, under the Assigned Contracts that have not been received by Seller prior to the date of this Agreement;
		

		
			(d)         all Books and Records; and
		

		
			(e)         all of Seller’s claims, causes of action and other legal rights and remedies, whether or not known as of the Closing Date, resulting from Seller’s ownership of the Transferred Assets and/or the operation of the Business, but excluding causes of action and other legal rights and remedies of Seller (i) against Purchaser with respect to the Transactions; or (ii) relating to the Excluded Assets.
		

		
			1.2        Excluded Assets.  Except for the Transferred Assets, Seller shall not sell, convey, transfer, assign or deliver, and Purchaser shall not purchase or accept assignment from Seller of any other assets of Seller (the “Excluded Assets”).  The Excluded Assets include (and the Transferred Assets do not include) without limitation:
		

		
			(a)         Any equipment or tangible items of any kind except for the Books and Records and assets listed on Schedule 1.1(a);
		

		
			(b)         cash, cash equivalents, accounts receivable, marketable securities or intercompany accounts receivable of Seller (other than receivables and other amounts that are included in the Transferred Assets);
		

		
			(c)         minute books, stock books, Tax Returns and similar corporate records of Seller, other than the Books and Records;
		

		
			(d)         claims and counterclaims with respect to rights of offset against Excluded Liabilities; and
		

		
			(e)         rights of Seller under this Agreement.
		

		
			1.3        Assumed Liabilities.  On the terms and subject to the conditions set forth in this Agreement, at the Closing, Purchaser agrees, effective on the Closing Date, to assume the following specific Liabilities of Seller and no other Liabilities (the “Assumed Liabilities”):
		

		
			(a)         All Liabilities arising under the Assigned Contracts, but only to the extent such Liabilities (i) do not arise from any breach, default, violation or failure to perform by Seller or any of its Affiliates of any provision under any Assigned Contract on or before the Closing Date, (ii) do not arise by reason of events or circumstances occurring on or prior to the Closing Date which with notice or lapse of time, would constitute or result in a breach of any Assigned Contract, (iii) if arising or relating to a
		

		
			
		

		
			

		 

		

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			circumstance in existence as of or prior to the Closing Date, arise in accordance with the express terms of such Assigned Contracts, excluding any such Liabilities that relate to or arise from any failure to perform, improper performance, warranty or other breach, default or violation by Seller or any other Person under any Assigned Contract on or before the Closing Date, or (iv) are not Excluded Liabilities; and
		

		
			(b)         Liabilities arising out of Purchaser’s ownership or operation of the Transferred Assets after the Closing (other than the Excluded Liabilities).
		

		
			For the avoidance of doubt, it is hereby clarified that Purchaser’s assumption of the Assumed Liabilities shall be considered part of the consideration paid for the Transferred Assets.
		

		
			1.4        Excluded Liabilities.  Notwithstanding any other provision in this Agreement, and regardless of any disclosure made to Purchaser, Seller shall retain, and shall be responsible for paying, performing and discharging when due, and Purchaser shall not assume or have any responsibility for, any Liabilities other than the Assumed Liabilities (all such Liabilities other than Assumed Liabilities, collectively the “Excluded Liabilities”), including without limitation the following specific Excluded Liabilities:
		

		
			(a)         all Liabilities of Seller or its Affiliates relating to or arising out of the Excluded Assets;
		

		
			(b)         any Liabilities under Contracts of Seller other than the Liabilities relating to Assigned Contracts that are assumed by Purchaser as provided in Section 1.3(a);
		

		
			(c)         any Liabilities resulting from, caused by or arising out of, directly or indirectly, actions pending prior to the Closing or facts, conditions or circumstances existing on or before the Closing Date, except to the extent included in the Assumed Liabilities as provided in Section 1.3(a)(iii);
		

		
			(d)         any Liabilities arising from Seller’s or its Affiliate’s infringement, misappropriation or misuse of Intellectual Property prior to the Closing Date;
		

		
			(e)         any Liabilities arising from any action, suit, proceeding, claim, arbitration or investigation pending or threatened against Seller on or before the Closing Date; and
		

		
			(f)         any Liabilities of Seller to any Person by reason of the fact that such Person was a manager, officer, employee, director or agent of Seller, including any Liabilities or claims relating to present and/or past employees of Seller with respect to plans, programs, policies, commitments, and other benefit entitlements established or existing on, prior to or after Closing.
		

		
			1.5        Purchase Price.
		

		
			(a)         In addition to the Assumed Liabilities, as consideration for the sale of the Transferred Assets to Purchaser, (i) at the Closing, Purchaser will pay to Seller, by wire transfer of immediately available funds in US Dollars, the sum of $1,000,000 (the “Closing Consideration”), (ii) on the first annual anniversary of the Closing Date, Purchaser will pay to Seller, by wire transfer of immediately available funds in US Dollars, the sum of $1,000,000 (the “First Anniversary Payment”), (iii) on the second annual anniversary of the Closing Date, Purchaser will pay to Seller, by wire transfer of immediately available funds in US Dollars, the sum of $1,000,000 (the “Second Anniversary Payment”), and (iv) on the third annual anniversary of the Closing Date, Purchaser will pay to Seller, by wire transfer of immediately available funds in US Dollars, the sum of $5,000,000 (the “Third Anniversary Payment”).  As further consideration for the sale of the Transferred Assets to Purchaser, within a reasonable time
		

		
			
		

		
			

		 

		

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			following the closing of the initial public offering of Purchaser or an Affiliate of Purchaser (such entity, the “Issuer”) pursuant to an effective registration statement under the Securities Act of 1933, as amended, covering the offer and sale of Common Stock for the account of the Issuer (the “IPO,” and the closing date of the IPO, the “IPO Closing Date), Purchaser shall, or shall cause the Issuer (if Purchaser is not the Issuer) to, issue to Seller that number of shares of Issuer’s Common Stock equal to (A) $27,000,000 divided by (B) the price per share of Issuer’s Common Stock offered to the public in the IPO, rounded down to the nearest full share (such shares, the “Consideration Shares,” and the issuance of such shares, the “Share Payment”).   The Share Payment will be subject to Seller’s execution and delivery of a Common Stock Purchase Agreement substantially in the form attached hereto as Exhibit A and compliance with applicable securities laws.   In the event that the IPO Closing Date occurs prior to the payment of the First Anniversary Payment, the Second Anniversary Payment and/or the Third Anniversary Payment, then Purchaser shall pay to Seller by wire transfer of immediately available funds in US Dollars, immediately following the IPO Closing Date, the First Anniversary Payment, the Second Anniversary Payment and/or the Third Anniversary Payment (in each case only to the extent Purchaser has not previously paid such amounts to Seller).  Seller shall provide Purchaser with its wire instructions at least two Business Days prior to a date on which Purchaser will pay Seller via a wire transfer of funds; provided, that if Seller does not provide Purchaser wire instructions within such two Business Day period, Purchaser shall be entitled to rely on the most recent wire instructions previously provided by Seller.
		

		
			(b)         In the event of a sale by Purchaser to a Third Party of all or substantially all of the assets of Purchaser and its Affiliates (an “Asset Sale”) prior to the IPO Closing Date, Purchaser shall pay to Seller, in full satisfaction of Purchaser’s obligation set forth in Section 1.5(a), (i) the First Anniversary Payment, the Second Anniversary Payment and/or the Third Anniversary Payment, in each case only to the extent Purchaser has not previously paid such amounts to Seller pursuant to Section 1.5(a), and (ii) consideration, in the same form received by Purchaser in the Asset Sale, equal to $27,000,000.
		

		
			(c)         In the event of a consolidation with, or merger of Purchaser into, a Third Party (a “Corporate Transaction”) prior to the IPO Closing Date, (i) if the surviving entity in the Corporate Transaction is not an entity with a class of stock publicly traded on a national securities exchange, the surviving entity shall assume the obligations of Purchaser set forth in Sections 1.5(a) and 1.5(b), as applicable, and (ii) if the surviving entity in the Corporate Transaction is an entity with a class of stock publicly traded on a national securities exchange, Purchaser shall pay to Seller immediately following the closing of the Corporate Transaction, in full satisfaction of Purchaser’s obligations set forth in Section 1.5(a), (A) the First Anniversary Payment, the Second Anniversary Payment and/or the Third Anniversary Payment, in each case only to the extent Purchaser has not previously paid such amounts to Seller pursuant to Section 1.5(a), and (B) consideration, in the same form received by Purchaser in the Corporate Transaction, equal to $27,000,000.
		

		
			(d)         Notwithstanding anything to the contrary in Section 1.5(b)(ii) or 1.5(c)(ii)(B), if Purchaser receives as consideration in an Asset Sale or a Corporate Transaction securities that are traded on a securities exchange, the value of such securities shall be deemed to be the average of the closing prices of the securities on such exchange or market over the thirty (30) day period ending three (3) days prior to the closing of such transaction.
		

		
			(e)         The value of any non-cash consideration to be received by Seller pursuant to Sections 1.5(b) or 1.5(c) shall be as mutually agreed by Seller and Purchaser in good faith and consistent with the valuation ascribed to such non-cash consideration in the definitive agreements with respect to the underlying transaction, and provided that such valuation shall be no less favorable with respect to Seller than with respect to the equityholders of Purchaser in connection with such transaction or any related distribution; provided further, that in connection with such determination, Seller shall be provided with a
		

		
			
		

		
			

		 

		

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			copy of the definitive transaction agreement with respect to the Asset Sale or Corporate Transaction, as applicable.
		

		
			(f)         Prior to the Share Payment, Seller shall have no rights of a shareholder of Purchaser with respect to the Consideration Shares, including, without limitation, any dividend rights, voting rights, liquidation rights, preemptive rights or other equity rights.
		

		
			1.6        Sales and Transfer Taxes.  Seller will bear and pay any and all Taxes, charges, fees or expenses that may become payable in connection with the Transactions.
		

		
			1.7        Allocation of Purchase Price.  Within 60 days after the Closing, Purchaser shall deliver to Seller an allocation statement reasonably acceptable to Seller setting forth Purchaser’s allocation of the Purchase Price for Tax purposes pursuant to Section 1060 of the Code and any other applicable Tax Laws (the “Allocation Statement”).  Purchaser and Seller shall each file all Tax Returns (such as IRS Form 8594, to the extent applicable, or any other forms or reports required to be filed pursuant to Section 1060 of the Code or any comparable provisions of Law) in accordance with the Allocation Statement and, except as otherwise required by Law, Purchaser and Seller shall refrain from taking any action or position inconsistent therewith, including in any examination of any such Tax Return, in any refund claim or in any tax litigation.  In the event of any adjustment to the Purchase Price for any reason, a supplemental Allocation Statement shall be prepared and delivered by Purchaser pursuant to this Section 1.7, and the Parties agree to comply with this Section 1.7 with respect to the supplemental Allocation Statement.
		

		
			1.8        License to Purchaser.  Effective as of the Closing, and subject to all the terms and conditions of this Agreement, Seller hereby grants to Purchaser a perpetual (unless terminated pursuant to 7.1), irrevocable (unless terminated pursuant to Section 7.1), transferrable, royalty-free, fully paid-up, sublicensable through multiple tiers, worldwide license, under any Unfiled Program Know-How Patents and the Program Know-How, solely to operate the Business and Exploit Program Materials. The foregoing license shall be exclusive in the Excluded Field (but not for the Permitted Activities) (each as defined in Section 5.8) and otherwise non-exclusive. For the avoidance of doubt, to the extent any Program Know-How or any Unfiled Program Know-How Patents of Seller and/or its Affiliates fall(s) within the definitions of “Company Know-How,” “Company Patent Rights” or “Company Platform Improvements” (as such terms are defined in the Merck Agreement), the foregoing license shall be exclusive to Purchaser in the Excluded Field. Seller grants no license (by implication or otherwise) under any Intellectual Property except as expressly set forth in this Section 1.8.
		

		
			1.9        Archetype.  In order to facilitate Purchaser’s operation of the Business following the Closing, Seller shall provide Purchaser with access to Seller’s generally commercially available Archetype data sequencing database and software (“Archetype”) for a period of two (2) years from the Closing Date on (and subject to the Parties’ execution of) the terms of Seller’s standard Archetype license agreement in the form attached hereto as Exhibit B (the “Archetype License Agreement”).
		

		
			1.10      Bioinformatics and Sequencing Services.  Seller shall, for a period of two (2) years from the Closing Date, use commercially reasonable efforts to provide bioinformatics and genomic sequencing services of substantially the same type and in substantially the same volume as the bioinformatics and genomic sequencing services used by Seller to conduct the Business as currently conducted (the “Supporting Services”).  The provision of Supporting Services shall be subject to the Parties’ execution of a mutually agreeable services agreement and the price for such services shall not exceed the lowest prices (on a time and materials or service-by-service basis, as applicable) paid by a Third Party to Seller for substantially the same services in substantially the same volume.
		

		
			
		

		
			

		 

		

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			ARTICLE 2
		

		
			CLOSING AND CLOSING DOCUMENTS
		

		
			2.1        Time of Closing and Closing Date.  The closing of the purchase of the Transferred Assets by Purchaser (the “Closing”) shall occur remotely by electronic exchange of signatures on the Closing Date or at such other place as may be agreed upon by the Parties, no later than three Business Days after the satisfaction or waiver of the conditions set forth in Article 6 (other than those conditions that by their nature are to be satisfied at the Closing), unless otherwise agreed upon by the Parties.   For purposes of this Agreement, “Closing Date” means the date as of which the Closing actually takes place.
		

		
			2.2        Items to be Delivered at the Closing.  At the Closing, the following items shall be delivered:
		

		
			(a)         Seller shall deliver an executed Bill of Sale in the form attached hereto as Exhibit C (the “Bill of Sale”);
		

		
			(b)         The Key Employee Employment Agreement shall not have been withdrawn or cancelled by the Key Employee;
		

		
			(c)         Seller shall deliver an executed certificate certifying that Seller is not a foreign person for purposes of Code Section 1445 or that the sale of the Transferred Assets is otherwise exempt from withholding under Code Section 1445 (the “FIRPTA Certificate”);
		

		
			(d)         Seller shall deliver all Required Consents set forth on Schedule 2.2(d);
		

		
			(e)         Seller shall deliver evidence of the release, discharge or termination of all Encumbrances on the Transferred Assets;
		

		
			(f)         Seller shall deliver an executed Patent Assignment Agreement in the form attached hereto as Exhibit D;
		

		
			(g)         Purchaser shall deliver the Closing Consideration to Seller pursuant to the wire instructions to be delivered by Seller no later than two Business Days prior to the Closing.
		

		
			ARTICLE 3
		

		
			REPRESENTATIONS AND WARRANTIES OF SELLER
		

		
			Seller hereby represents and warrants to Purchaser,  and acknowledges that Purchaser is entering into this Agreement in reliance thereon, as follows, subject to any exceptions listed on the disclosure schedule attached hereto (the “Seller Disclosure Schedule”) specifically identifying the relevant subparagraph hereof, which exceptions shall be deemed to be representations and warranties as if made hereunder:
		

		
			3.1        Organization; Authority; Binding Obligation.  Seller is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware.  The execution and performance by Seller of this Agreement and all acts which may be necessary to consummate the Transactions have been authorized by all corporate actions necessary to be taken by Seller for the approval of this Agreement and the Transactions.  This Agreement has been properly executed by Seller and is legally valid and binding upon Seller.  This Agreement is enforceable against Seller according to its terms, except as such enforceability may be limited by principles of public policy and applicable bankruptcy, insolvency, moratorium or other laws affecting the rights of creditors generally and by general principles of equity.
		

		
			
		

		
			

		 

		

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			3.2        Title to Transferred Assets.  Seller owns the entire rights and interests in and to, and has good and valid title to, or otherwise has valid, transferrable rights, licenses or leasehold interests in, all of the Transferred Assets, free and clear of any Encumbrances, and upon consummation of the Transactions, Purchaser will have acquired good and marketable title to or valid rights, licenses or leasehold interests in each of the Transferred Assets, free and clear of all Encumbrances.
		

		
			3.3        Sufficiency of Assets; Right to License.  Collectively, the Transferred Assets, the Program Know-How, and Archetype constitute all of the assets (including all Intellectual Property) used, held, owned, licensed or otherwise controlled by Seller and its Affiliates that are material to and necessary for the conduct of the Business and the Exploitation of the Program Materials, in each case, as currently conducted by Seller and its Affiliates.  Without limiting the foregoing, the Program Materials constitute and will include, at the time of delivery to Purchaser, all biological materials necessary for the operation of the Business as currently conducted by Seller and its Affiliates.  Seller has the full right, power and authority to grant the license to Purchaser as purported to be granted pursuant to Section 1.8.
		

		
			3.4        No Conflict.  The execution and delivery by Seller of this Agreement, and the consummation of the transactions contemplated hereby, will not (a) result in the creation of any Encumbrance on any of the Transferred Assets or (b) conflict with, or result in any violation of or default under (with or without notice or lapse of time, or both), or give rise to a right of termination, cancellation or acceleration of any obligation or loss of any benefit under, or require any consent, approval or waiver from any Person pursuant to, (i) any provision of the organizational documents of Seller, (ii) any Contract applicable to any of the Transferred Assets, or (iii) any Law applicable to Seller or any of the Transferred Assets, except with respect to clauses (ii) or (iii) that would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.  To the knowledge of Seller, no Person has any right, interest or claim in or to, and neither Seller nor any of its Affiliates has entered into any agreement granting to any Person any right, interest or claim in or to, any material Program Know-How or Unfiled Program Know-How Patents used to a significant extent in the Business and that would conflict with the license to Purchaser as purported to be granted pursuant to Section 1.8.
		

		
			3.5        Approvals of Governmental Authorities.  No consent, waiver, approval or authorization of, or declaration, filing or registration with, or notification to any Governmental Authority is required to be made or obtained by Seller in connection with the execution, delivery or performance of this Agreement, the compliance by Seller with any of the provisions hereof and the consummation of the Transactions.
		

		
			3.6        Legal Proceedings.  To Seller’s knowledge, no action or proceeding has been instituted or  threatened before any court or other Governmental Authority to restrain or prohibit, or to obtain Losses in respect of, or which is related to or arises out of, the Transferred Assets or the Transactions, there is no pending or threatened litigation, arbitration, mediation, suit, claim or other proceeding or investigation before a Governmental Authority with respect to the Transferred Assets or the Business or otherwise that would reasonably be expected to have a Material Adverse Effect, and there is no judgment, decree, injunction or Order against any of the Transferred Assets.
		

		
			3.7        Tax Matters.  All of the Tax Returns required to be filed by Seller that relate in whole or in part to the Business or the Transferred Assets have been filed and (a) all such Tax Returns are true, complete and correct in all material respects, (b) all Taxes required to be paid by Seller that relate in whole or in part to the Business or the Transferred Assets have been paid in full or are being contested in good faith, and (c) there are no outstanding Tax liens that have been filed by any Tax authority against any of the Transferred Assets.
		

		
			
		

		
			

		 

		

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			3.8        Intellectual Property.
		

		
			(a)         All registrations and applications made by or on behalf of Seller (or under obligation of assignment to Seller) with any Governmental Authority for any Patents, Marks and Copyrights specific to the Transferred Assets, the Business as currently conducted or the Program Materials, including, without limitation, the Program Patents (collectively, “Business IP Registrations”), including the jurisdictions in which each such Business IP Registration has been issued or registered or in which any application for such issuance or registration has been filed, are set forth on Section 3.8(a).  To Seller’s knowledge, all of the issued or registered Business IP Registrations are valid, enforceable and subsisting.  There are no actions that must be taken by Seller or Purchaser within 180 days after the date of this Agreement for the purpose of obtaining, maintaining, perfecting, preserving or renewing any Business IP Registration. Seller has not taken (or failed to take) any action, and has not used or enforced (or failed to use or enforce) the Program IP or the Program Know-How in a manner that would result in the abandonment, cancellation or unenforceability of any Business IP Registration, and Seller has not taken (or failed to take) any action that would result in the forfeiture or relinquishment of any of the Business IP Registrations. There have been no interferences, re-examinations or oppositions brought or, to Seller’s knowledge, threatened to be brought involving any of the Program Patents, nor, to Seller’s knowledge, is there any basis for any such interference, re-examination or opposition.
		

		
			(b)         Section 3.8(b) of the Seller Disclosure Schedule sets forth an accurate and complete list of each Contract to which Seller is a party or by which Seller is bound that contains any assignment or license of, or covenant not to assert or enforce any Program IP, or under which any Program IP is licensed or otherwise made available to Seller by any Person (other than licenses for commercial off-the-shelf software), or pursuant to which Seller has granted any Person any license under, or otherwise has granted to any Person any right (whether or not currently exercisable) or interest in, any Program IP.
		

		
			(c)         To Seller’s knowledge, no funding, facilities, or personnel of any Governmental Authority or any public or private university, college, or other educational or research institution were used, directly or indirectly, to develop or create, in whole or in part, any Program IP.
		

		
			(d)         Seller has taken reasonable steps to maintain the confidentiality of and otherwise protect and enforce its rights in all information pertaining to the Program IP and Program Know-How that Seller has intended to maintain as trade secrets or as confidential.
		

		
			(e)         Other than the Program Patents, there are no Patents owned or controlled by Seller or its Affiliates as of the Effective Date and neither Seller nor any of its Affiliates has filed any Patents on or prior to the Effective Date that (i) contain any claims directed to inventions within Program Know-How or within the Know-How included in the Program IP or that otherwise claim or describe any Program Know-How or Know-How included in the Program IP, or (ii) are necessary for or would be infringed by the conduct of the Business or the Exploitation of the Program Materials as currently conducted by Seller and its Affiliates.
		

		
			(f)         Neither Seller nor any of its Affiliates owns or controls or has filed any applications for any “Company Patent Rights” (as such term is defined in the Merck Agreement) as of the Effective Date or owns or controls or otherwise has any interest in any “Joint Patent Rights” (as such term is defined in the Merck Agreement).
		

		
			(g)         To Seller’s knowledge, no Person has infringed, misappropriated, or otherwise violated, and no Person is currently infringing, misappropriating, or otherwise violating, any Program IP or Program Know-How.
		

		
			
		

		
			

		 

		

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			(h)         To Seller’s knowledge, (i) Seller has never infringed (directly, contributorily, by inducement, or otherwise), misappropriated, or otherwise violated or made unlawful use of any Intellectual Property of any other Person or engaged in unfair competition in each case in connection with the creation, discovery, acquisition, development, manufacture, use or other Exploitation of any Program IP, Program Know-How or Program Materials or the conduct of the Business, (ii) no Program IP, Program Know-How or Program Materials or method or process of manufacturing or use or other Exploitation thereof by Seller prior to the Closing Date infringes, violates, or makes unlawful use of any Intellectual Property of, or contains any Intellectual Property misappropriated from, any other Person, and (iii) there is no legitimate basis for a claim regarding the matters set forth in clauses (i) and (ii) of this Section 3.8(h). Seller has never received any written notice or other written communication relating to any actual, alleged, or suspected infringement, misappropriation, or violation of any Intellectual Property of another Person due to the operation of the Business.  Notwithstanding anything to the contrary, Section 3.8(g) and Section 3.8(h) constitutes the sole and exclusive representations or warranties in this Agreement relating to non-infringement of Intellectual Property rights.
		

		
			(i)          Each director, officer, employee, consultant and independent contractor of Seller who has been involved in, or who contributed to, the creation or development of any Program IP has executed and delivered to Seller a valid and enforceable assignment of all rights, title and interests that such Person may have or may hereafter acquire in or to such Program IP and a valid and enforceable waiver of any and all moral rights that such Person may have therein.  No current or former director, officer, employee, consultant or independent contractor of Seller has any rights, title, licenses, claims, moral rights or interests, directly or indirectly, in whole or in part, in or with respect to any Program IP.
		

		
			3.9        Contracts and Commitments.
		

		
			(a)         Each Assigned Contract is valid and enforceable against Seller, and to the knowledge of Seller, against each other party thereto, except in each case, as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally.
		

		
			(b)         Except as would not reasonably be expected to result individually or in the aggregate in a Material Adverse Effect, there exists no default or event of default with respect to Seller or, to Seller’s knowledge, with respect to any other contracting party, which, with the giving of notice, the lapse of time or the happening of any other event or condition, would reasonably be expected to become a default or event of default under any Assigned Contract or give any Person (i) the right to declare a default or exercise any remedy under any Assigned Contract, (ii) the right to accelerate the maturity or performance of any obligation of Seller under any Assigned Contract, or (iii) the right to cancel or terminate any Assigned Contract.  Seller has not received any written notice regarding any material violation of, material default under, or intention to cancel any Assigned Contract.
		

		
			(c)         The Assigned Contracts constitute all of the Contracts necessary for the conduct of the Business as currently conducted, and Seller has made available to Purchaser true and complete copies of all Assigned Contracts.
		

		
			(d)         Section 3.9(d) of the Seller Disclosure Schedule lists the consents to assign the Assigned Contracts to Purchaser and any and all other consents required to transfer, convey and assign the Transferred Assets to Purchaser free and clear of all Encumbrances (the “Required Consents”).  Except for the Required Consents, no consents, waivers or approvals are required to transfer and assign the Assigned Contracts or the other Transferred Assets to Purchaser, and no transfer of an Assigned Contract to Purchaser pursuant hereto will conflict with, or result in any violation of or default under (with or without notice or
		

		
			
		

		
			

		 

		

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			lapse of time, or both), or give rise to a right of termination, cancellation or acceleration of any obligation or loss of any benefit under, or require any consent, approval or waiver from any Person pursuant thereto.
		

		
			(e)         Merck has not exercised the [***] Research Option (as defined in the Merck Agreement) pursuant to Section 2.1.2 of the Merck Agreement and, other than the payment from Merck pursuant to Section 5.1.1 of the Merck Agreement, Seller has not received any payments of any kind from Merck under the Merck Agreement, and, as of the date of this Agreement, no other payments have accrued from Merck under the Merck Agreement.
		

		
			3.10      Compliance with Laws.  Seller has complied in all material respects with, and is not in violation of, any applicable Laws with respect to the conduct of the Business or the ownership or operation of the Transferred Assets.  No event has occurred, and no condition or circumstance exists, that will (with or without notice or lapse of time) constitute or result in a material violation by Seller of, or a failure on the part of Seller to comply with, any applicable Laws. Seller has not received any notice from any Governmental Authority or other Person alleging that the Business is in violation of any applicable Law or Order, except for violations that have been cured or are no longer being asserted. Seller has obtained each federal, state, county, local or foreign governmental consent, license, permit, grant, or other authorization of a Governmental Authority (a) pursuant to which Seller currently operates or holds any interest in any of the Transferred Assets or (b) that is required for the operation of the Business or the holding of any such interest (all of the foregoing consents, licenses, permits, grants, and other authorizations, collectively, the “Business Authorizations”), and all of the Business Authorizations are in full force and effect. Seller has materially complied with all of the terms of the Business Authorizations and Seller has not received any written notice or other written communication from any Governmental Authority regarding (i) any actual or possible violation of any Business Authorization or any failure to comply with any term or requirement of any Business Authorization or (ii) any actual or possible revocation, withdrawal, suspension, cancellation, termination or modification of any Business Authorization.  None of the Business Authorizations will be terminated or impaired, or will become terminable, in whole or in part, as a result of the consummation of the Transactions.
		

		
			3.11      [Intentionally Omitted].
		

		
			3.12      [Intentionally Omitted].
		

		
			3.13      Disclosure. No representation or warranty by Seller in this Agreement and no information or materials provided by Seller to Purchaser in connection with the negotiation or execution of this Agreement or any agreement contemplated hereby contains any untrue statement of a material fact, or omits to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances in which they are made, not misleading.
		

		
			3.14      Brokers and Finders.  Seller is not a party to, nor in any way obligated to make any payment relating to, or have any Liability in respect of, any contract, commitment, undertaking or understanding in connection with the origin, negotiation, execution or performance of this Agreement.
		

		
			 
		

		
			ARTICLE 4
		

		
			REPRESENTATIONS AND WARRANTIES OF PURCHASER
		

		
			Purchaser hereby represents and warrants to Seller as follows:
		

		
			
		

		
			

		 

		

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			4.1        Organization; Authority; Binding Obligation.  Purchaser is a corporation duly and validly organized and existing under the laws of Washington.  The execution and performance of this Agreement and all acts which may be necessary or appropriate to consummate the Transactions have been authorized by company actions necessary to be taken for the approval of this Agreement and the Transactions.  This Agreement has been properly executed by Purchaser and it is legally valid and binding upon Purchaser, is enforceable against Purchaser according to its terms except as such enforceability may be limited by principles of public policy and applicable bankruptcy, insolvency, moratorium or other laws affecting the rights of creditors generally and by general principles of equity.
		

		
			4.2        No Conflict.  The execution and delivery of this Agreement and the consummation of the Transactions do not conflict with or result in any violation of any term or condition of, or constitute a default under, (a) the organizational documents of Purchaser or (b) any requirement of Law or of any Governmental Authority.
		

		
			4.3        Sufficient Funds.  Purchaser has, and will have at Closing or an applicable payment date, as applicable, sufficient unencumbered funds to meet its obligations hereunder.
		

		
			4.4        Legal Proceedings.  No action or proceeding has been instituted or, to the best of Purchaser’s knowledge, threatened before any court or Governmental Agency to restrain or prohibit, or to obtain Losses in respect of, or which is related to or arises out of, this Agreement or the Transactions
		

		
			4.5        Brokers and Finders.  Purchaser is not a party to, nor in any way obligated to make any payment relating to, or has any Liability in respect of, any contract, commitment, undertaking or understanding in connection with the origin, negotiation, execution or performance of this Agreement.
		

		
			ARTICLE 5
		

		
			COVENANTS
		

		
			5.1        Access.  During the period from the date of this Agreement through the Closing Date (the “Pre-Closing Period”), Seller will, after receiving reasonable advance notice from Purchaser, give Purchaser reasonable access (during normal business hours) to Seller’s books and records relating primarily to the Transferred Assets, and will provide Purchaser with such information regarding the Transferred Assets as Purchaser may reasonably request, for the sole purposes of enabling Purchaser (a) to further investigate, at Purchaser’s sole expense, the Transferred Assets; and (b) to verify the accuracy of the representations and warranties set forth in Section 3;  provided, however, that such access shall not interfere with the normal business and operations of the Business or Seller.
		

		
			5.2        Ordinary Course.  Except as explicitly permitted by this Agreement or as otherwise approved by Purchaser in writing in advance, during the Pre-Closing Period:
		

		
			(i)          Seller will (A) operate the Business in the ordinary course and consistent with past practices; and (B) use reasonable efforts to maintain good relations with the parties to the Assigned Contracts.
		

		
			(ii)         Seller will not (A) sell, license, transfer, assign, license, dispose of or create any Encumbrances in the Transferred Assets, or enter into any agreement or undertake any new obligation with any Person with respect to the Transferred Assets; or (B) terminate or amend any of the Assigned Contracts.
		

		
			5.3        Required Consents.  As soon as practicable following the execution date of this Agreement, Seller shall use reasonable efforts to obtain all Required Consents.
		

		
			
		

		
			

		 

		

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			5.4        Prosecution and Maintenance of Program Patents.  Until the Closing, Seller shall use commercially reasonable efforts at its own expense to prosecute the Program Patents and defend any challenge or opposition relating thereto.  Until the Closing, Seller shall inform Purchaser immediately in the event of any challenge or opposition to the Program Patents, which challenge or opposition shall be considered a Material Adverse Effect.
		

		
			5.5        Notification of Certain Matters. During the Pre-Closing Period, promptly after obtaining knowledge thereof, Seller shall notify Purchaser of (i) the occurrence or non-occurrence of any fact or event which causes or would be reasonably likely to cause (A) any representation or warranty of Seller contained in this Agreement to be untrue or inaccurate or (B) any covenant, condition or agreement of Seller in this Agreement not to be complied with or satisfied in full, and (ii) any failure of Seller to comply with or satisfy any covenant, condition or agreement to be complied with or satisfied by it hereunder; provided,  however, that no such notification shall affect the representations or warranties of Seller or Purchaser’s right to rely thereon, or the conditions to the obligations of Purchaser except as provided in this Section 5.5.  Seller shall give prompt notice in writing to Purchaser of any notice or other communication from any Person alleging that the Consent of such Person is or may be required to be obtained by Seller in connection with the Transactions.
		

		
			5.6        Tax Matters.  Seller and Purchaser shall provide each other with such cooperation and information as either of them reasonably may request of the other in filing any Tax Return, amended Tax Return or claim for refund with respect to the Business or the Transferred Assets, in determining liability for Taxes or a right to refund of Taxes or in conducting any audit or other proceeding in respect of Taxes with respect to the Business or the Transferred Assets. Seller shall (i) continue to file all Tax Returns within the time period for filing, and such Tax Returns shall be true, correct and complete in all material respects, and (ii) pay when due any and all Taxes attributable to or levied or imposed upon the Transferred Assets for periods (or portions thereof) through and including the date of the Closing Date whether or not such payment is required to be paid after the Closing Date.
		

		
			5.7        Delivery.  Within thirty (30) days following the Closing, Seller shall complete delivery to Purchaser of all Transferred Assets, including, without limitation, physical delivery of (a) all Program Materials and other Transferred Assets that are tangible assets in Seller’s and/or its Affiliates’ possession or control and (b) copies or other reproductions in writing or electronic format of all Books and Records and all written (including electronic) records of Program Know-How, including written (including electronic) records of “Company Know-How” as defined in the Merck Agreement.
		

		
			5.8        Restrictive Covenants.
		

		
			(a)         In order to protect the value of the Business, for a period of seven (7) years after the Closing Date (the “Restricted Period”), Seller shall not, and shall cause its Affiliates not to, directly or indirectly, either for itself or for or on behalf of any other Person, engage in the research, development, commercialization or other Exploitation of any [***]  (the “Excluded Field”).  For the avoidance of doubt, the Excluded Field includes the “Field” as defined in the Merck Agreement. Notwithstanding the foregoing: (i) the reference to Affiliates in the foregoing of this Section 5.8(a) does not include (and Section 5.8(a) shall not apply to) any of the Acquirer Entities; and (ii) nothing herein shall prohibit Seller from (A) performing any services for Purchaser; or (B) licensing or providing Intellectual Property or Know-How or performing services (e.g. gene-editing, gene synthesis, offering ArchetypeTM), in each case, not specifically directed to the Excluded Field even if the licensee or recipient of such Intellectual Property, Know-How or services uses such to engage in activities in the Excluded Field; or (C) any of the Other Phage Activities (whether alone or with any third party) (collectively, the “Permitted Activities”).
		

		
			
		

		
			

		 

		

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			(b)         For a period of three (3) years after the Closing Date, Seller shall not directly or indirectly through another Person, solicit for employment or induce or attempt to induce or encourage the Key Employee to leave the employ or service of Purchaser or any of its Affiliates or in any way interfere with the employment relationship between Purchaser or any of its Affiliates and the Key Employee; provided, however, that general advertising over the Internet, in print media or other mass media shall not be deemed to be a solicitation or inducement of or interference with respect to the Key Employee in violation of this sentence so long as such general advertising is not targeted or directed at the Key Employee.  Seller and its Affiliates shall not hire or enter into a consulting relationship with or otherwise employ or engage the Key Employee in any capacity that induces the Key Employee to leave the employ or service of Purchaser or any of its Affiliates at any time during the three (3) year period after the Closing Date.
		

		
			(c)         For purposes of this Agreement, “Confidential Information” shall mean all information (whether or not in written or electronic form and whether or not expressly designated as confidential) exclusively relating to the Business and the Transferred Assets. At all times (including after the Restricted Period), Seller shall safeguard and hold all Confidential Information in strict confidence, and shall not, directly or indirectly in any capacity communicate, reveal, report, publish, disclose or transfer any Confidential Information to any Person (other than Purchaser or its Affiliates) or use any Confidential Information in any manner or for the benefit of any Person (other than Purchaser or its Affiliates).  Notwithstanding the foregoing, Seller may disclose Confidential Information: (i) with Purchaser’s prior written consent or following Purchaser’s public disclosure of such Confidential Information; (ii) to a financial advisor or accountant who is subject to an obligation of confidence, solely for the purpose of obtaining advice or services from such Person pertaining to Seller’s Tax Returns or other Tax obligations; or (iii) to the extent the disclosure is required by a valid order of a court or other Governmental Authority having jurisdiction, provided that Seller gives prior written notice to Purchaser of such required disclosure, uses reasonable efforts to obtain (or assist Purchaser in obtaining) a protective order preventing or limiting the disclosure, and discloses only so much of the Confidential Information as is required by such order.  Any copy or reproduction of any Confidential Information relating directly or indirectly to the Business or the Transferred Assets shall, after the Closing, be the property of Purchaser and shall be delivered to Purchaser by Seller pursuant to Section 5.7.  Seller shall not make copies or otherwise reproduce Confidential Information in any form except with Purchaser’s prior written consent, and shall deliver to Purchaser or destroy any and all such copies and reproductions upon Purchaser’s request.
		

		
			(d)         Seller acknowledges that Purchaser has invested and will invest substantial time and money to acquire the Transferred Assets and to develop the Business, and the covenants set forth in Sections 5.8(a), (b), and (c) are a material part of the agreement between the Parties, are an integral part of the obligations of Seller hereunder, are supported by good and adequate consideration, and are reasonable and necessary to protect the legitimate business interests of Purchaser, and Purchaser would not consummate the Transactions unless the covenants set forth in Sections 5.8(a), (b) and (c) were in full force and effect and constituted a binding and enforceable contract of Seller.  Seller further acknowledges that the duration and geographic territory contained in Section 5.8(a) are reasonable in all respects and necessary to protect the goodwill of the Business and that, without such protection, Purchaser’s or any of its Affiliates’ competitive advantage would be adversely affected.  Notwithstanding any other provision of this Agreement (including Section 9.13), the Parties agree that: (i) the covenants in Sections 5.8(a), (b), and (c) are severable and separate, and the unenforceability of any specific covenant will not affect the continuing validity and enforceability of any other covenant; and (ii) in the event any court of competent jurisdiction determines that any of the scope, time or territorial restrictions set forth in Section 5.8(a), (b), or (c) are unreasonable and therefore unenforceable, then the Parties agree that such provision will be enforced to the fullest extent that the court deems reasonable and this Agreement will thereby be reformed.
		

		
			(e)         Seller acknowledges that a breach or threatened breach of any of the provisions in this Section 5.8 would give rise to irreparable harm to Purchaser, for which monetary damages would not
		

		
			
		

		
			

		 

		

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			be an adequate remedy, and hereby agrees that in the event of a breach or a threatened breach by Seller of any such provisions, Purchaser shall, in addition to any and all other rights and remedies that may be available to it in respect of such breach, be entitled to equitable relief, including a temporary restraining order, an injunction, specific performance or any other equitable relief that may be available from a court of competent jurisdiction (without any requirement to post bond).
		

		
			5.9        Further Actions; NIH Grant Assistance.
		

		
			(a)         The Parties shall cooperate reasonably with each other and with their respective representatives in connection with any steps required to be taken as part of their respective obligations under this Agreement, including the timely assignment, conveyance or other Transfer of the Transferred Assets to Purchaser and the consolidation, vesting and recordation of the full ownership thereof.  The Parties shall (i) furnish upon request to each other such further information, (ii) execute and deliver to each other such other documents, and (iii) do such other acts and things, all as the other Party may reasonably request for the purpose of carrying out the intent of this Agreement; provided,  however, that none of the above undertakings shall require the payment of expenses by Purchaser or otherwise materially increase the obligations of Purchaser or Seller beyond those expressly set forth in this Agreement.
		

		
			(b)         The Parties acknowledge that the NIAID R21/R33 Award granted to Seller (the “NIH Grant”) will not be assigned by Seller to Purchaser hereunder.  Upon Purchaser’s request before and after Closing, and at Purchaser’s reasonable expense, Seller shall provide such assistance and take such steps as are reasonably requested by Purchaser with respect to transfer of the NIH Grant to Purchaser, including enabling the Key Employee to initiate the process and petition for the transfer of the NIH Grant prior to the Closing while the Key Employee is still employed by Seller.
		

		
			(c)         Without limiting the above, during the thirty (30) day period following Closing (the “Post-Closing Period”), Seller shall use commercially reasonable efforts to facilitate the ongoing work and wind-down of activities under the Merck Agreement and the transition from Seller to Purchaser of all activities under the Merck Agreement, including, without limitation, by allowing the Designated Personnel (as defined below) to conduct the Research Program (as defined in the Merck Agreement) and maintaining and committing the same resources, equipment, facilities (including laboratory) at Seller as Seller maintained and committed to conduct the Research Program prior to Closing (subject to a reasonable wind-down to transition the Research Program to Purchaser) and by providing the Key Employee with access to such resources, equipment and facilities (including laboratory) at Seller and reasonable assistance from such personnel at Seller in order for the Key Employee, on behalf of Purchaser, to carry out and transition to Purchaser the Research Program and other activities under the Merck Agreement.  Seller agrees that any and all Know-How that is first generated, conceived, developed, discovered, reduced to practice or otherwise made by Designated Personnel in the course of conducting the Research Program or other activities under the Merck Agreement during the Post-Closing Period and all Intellectual Property therein and thereto (collectively, “Merck Program IP”) shall be owned by Purchaser.  “Designated Personnel” shall mean Key Employee, Yvette Del Rosario, Lisa Kieweg-Thompson and Paula Patterson, who shall be the only individuals conducting research and development activities for the Research Program during the Post-Closing Period. Seller hereby irrevocably and unconditionally assigns to Purchaser all right, title and interest worldwide in and to all Merck Program IP. At Purchaser’s request and reasonable expense, Seller shall execute and deliver assignments of Merck Program IP to Purchaser or its designee and shall execute other papers and otherwise assist Purchaser as reasonably requested by Purchaser (including, without limitation, executing documents for prosecuting Patents) to apply for, obtain, perfect, maintain and enforce Purchaser’s right, title and interest in Merck Program IP.  Seller also shall require that any Designated Personnel who conducts the Research Program or other activities under the Merck Agreement for or on behalf of Seller during the Post-Closing Period shall be under an obligation to assign, and shall assign, to Seller any and all Merck Program IP made by such Person.
		

		
			
		

		
			

		 

		

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			ARTICLE 6
		

		
			CONDITIONS OF CLOSING
		

		
			6.1        Conditions to Purchaser’s Performance.  The obligations of Purchaser under this Agreement are subject to the satisfaction, at or prior to the Closing Date, of each of the following conditions; provided,  however, that Purchaser may at its option waive in writing prior to or at Closing the performance of any of the conditions imposed hereunder:
		

		
			(a)         Seller’s representations and warranties set forth in Article 3 shall be true and correct in all material respects (except for such representations and warranties that are qualified by their terms by a reference to “materiality” or “Material Adverse Effect,” which representations and warranties as so qualified shall be true and correct in all respects) as of the Closing Date as if made on and as of the Closing Date (except for any such representations or warranties that, by their terms, speak only as of a specific date or dates, in which case such representations and warranties will be accurate as of such specific date or dates);
		

		
			(b)         Seller shall have performed in all material respects all obligations required by this Agreement to be performed by Seller on or before the Closing Date;
		

		
			(c)         All filings with and other Consents of any Governmental Authority required to be made or obtained in connection with the Transactions and set forth on Schedule 3.5 of the Seller Disclosure Schedule shall have been made or obtained and shall be in full force and effect;
		

		
			(d)         No injunction or other Order preventing the consummation of the Transactions shall have been issued since the date of this Agreement by any court of competent jurisdiction and shall remain in effect and no action shall have been commenced seeking such a result; and no Law that makes consummation of the transactions contemplated by this Agreement illegal shall have been enacted or adopted since the date of this Agreement and shall remain in effect;
		

		
			(e)         There shall not have occurred any event, change, circumstance, occurrence, effect or state of facts that, individually or in the aggregate, has resulted in, or could reasonably be expected to result in a Material Adverse Effect on the Transferred Assets or the Business;
		

		
			(f)         Seller shall have executed and delivered to Purchaser the Bill of Sale in the form attached hereto as Exhibit C;
		

		
			(g)         The Key Employee shall have executed and delivered to Purchaser the Key Employee Employment Agreement, which has not been terminated or revoked;
		

		
			(h)         Seller shall have delivered to Purchaser the original FIRPTA Certificate;
		

		
			(i)          Seller shall have executed and delivered to Purchaser the Patent Assignment Agreement in the form attached hereto as Exhibit D; and
		

		
			(j)         Seller shall have obtained all Required Consents set forth on Schedule 2.2(d) and no such Consents shall have been withdrawn, cancelled or revoked.
		

		
			6.2        Conditions to Seller’s Performance.  The obligations of Seller under this Agreement shall be subject to the satisfaction, at or prior to the Closing Date, of each of the following conditions; provided,  however, that Seller may at its option waive in writing prior to or at Closing the performance of any conditions imposed hereunder:
		

		
			
		

		
			

		 

		

			-  15  -

		

		

		
			 
		

		
			(a)         Purchaser’s representations and warranties set forth in Article 4 shall be true and correct in all material respects (except for such representations and warranties that are qualified by their terms by a reference to “materiality” or “Material Adverse Effect,” which representations and warranties as so qualified shall be true and correct in all respects) as of the Closing Date as if made on and as of the Closing Date (except for any such representations or warranties that, by their terms, speak only as of a specific date or dates, in which case such representations and warranties will be accurate as of such specific date or dates);
		

		
			(b)         Purchaser shall have performed all obligations required by this Agreement to be performed by Purchaser on or before the Closing Date;
		

		
			(c)         All filings with and other Consents of any Governmental Authority required to be made or obtained in connection with the Transactions shall have been made or obtained and shall be in full force and effect; and
		

		
			(d)         No injunction or other Order preventing the consummation of the Transactions shall have been issued since the date of this Agreement by any court of competent jurisdiction and shall remain in effect and no action shall have been commenced seeking such a result; and no Law that makes consummation of the transactions contemplated by this Agreement illegal shall have been enacted or adopted since the date of this Agreement and shall remain in effect.
		

		
			ARTICLE 7
		

		
			TERMINATION
		

		
			7.1        Termination.
		

		
			(a)         This Agreement may be terminated before the Closing:
		

		
			(i)          by mutual written consent of Seller and Purchaser;
		

		
			(ii)         by either Seller or Purchaser by written notice to the other if the Closing has not occurred on or before March 31, 2018;  provided,  however, that the right to terminate this Agreement under this Section 7.1(b) shall not be available to a Party whose breach of any representation, warranty, covenant, or agreement under this Agreement has been the cause of, or resulted in, the failure of the Closing to occur on or before such date;
		

		
			(iii)       by either Seller or Purchaser if a court of competent jurisdiction or other Governmental Authority shall have issued a final and nonappealable order, decree or ruling, or shall have taken any other action, having the effect of permanently restraining, enjoining or otherwise prohibiting any of the Transactions; or
		

		
			(iv)        by either Party if the other Party (the “Breaching Party”) materially breaches any covenant or obligations of the Breaching Party which breach has not been cured within 10 days after delivery of notice of such breach to the Breaching Party by the non-breaching Party.
		

		
			(b)         This Agreement may be terminated by Purchaser before Closing or thereafter on or before the date that is thirty (30) days after the third anniversary of the Closing Date if the Merck Agreement is terminated pursuant to Section 8.2 of the Merck Agreement at any time within three (3) years after the Closing Date.
		

		
			
		

		
			

		 

		

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			7.2        Termination Procedures.  If either Party wishes to terminate this Agreement pursuant to Section 7.1, such Party will deliver to the other Party a written notice stating that such Party is terminating this Agreement and setting forth a brief statement of the basis on which such Party is terminating this Agreement.
		

		
			7.3        Effect of Termination.
		

		
			(a)         Upon the termination of this Agreement pursuant to Article 7: (i) no Party will have any obligation or other Liability to the other Party, except that (A) the Parties will remain bound by the provisions of Article 8, and (B) the termination of this Agreement shall not relieve either Party from any Liability for any breach of any covenant or agreement in this Agreement prior to such termination; and (ii) the license set forth in Section 1.8 shall terminate.  For clarity, Section 1.5 and Section 5.8 shall terminate upon termination of this Agreement.
		

		
			(b)         Notwithstanding the foregoing, if Purchaser terminates this Agreement pursuant to Section 7.1(b), (i) Purchaser shall transfer, convey and assign back, pursuant to a mutually agreeable form of assignment, to Seller all Transferred Assets, including the Assigned Contracts, together with all Assumed Liabilities (mutatis mutandis) (provided, however, that Purchaser shall remain liable for any Assumed Liabilities arising under the Assigned Contracts after the Closing Date and prior to such re-assignment arising from any breach, default, violation or failure to perform by Purchaser or any of its Affiliates of any provision under any Assigned Contract after the Closing Date but on or before the date of such re-assignment or any events or circumstances occurring after the Closing Date but on or before the date of such re-assignment which with notice or lapse of time, would constitute or result in a breach by Purchaser of any Assigned Contract) and (ii) if and to the extent Purchaser owns or controls any Purchaser Transferred Assets IP at the time Purchaser terminates this Agreement pursuant to Section 7.1(b) (the “Termination Date”), Purchaser shall (A) transfer, convey and assign to Seller such Purchaser Transferred Assets IP that is owned or otherwise controlled (with the right to transfer) by Purchaser and/or its Affiliates and used exclusively in the Business as conducted by Purchaser and its Affiliates as of or any time prior to the Termination Date and (B) grant to Seller a perpetual, irrevocable, transferrable, royalty-free, fully paid-up, sublicensable through multiple tiers, worldwide, license under such other Purchaser Transferred Assets IP as existing at the Termination Date and necessary for the operation of the Business as conducted by Purchaser and its Affiliates as of or any time prior to the Termination Date, solely to operate the Business and Exploit Program Materials, which license shall be exclusive in the Excluded Field and otherwise non-exclusive; provided,  however, that Seller shall have no obligation to assume any liabilities of Purchaser with respect to Purchaser Transferred Assets IP. All of such Transferred Assets and the Purchaser Transferred Assets IP that is transferred to Seller pursuant to clause (A) above shall become the confidential information of Seller in the same manner with Purchaser being bound to such information in the same manner as Seller is bound with respect to Confidential Information.  For the avoidance of doubt, Purchaser Transferred Assets IP shall not include any Know-How or other Intellectual Property developed, owned or controlled by Purchaser and/or its Affiliates (1) prior to the Closing Date or (2) at any time after the Closing Date independent of the Transferred Assets or the license in Section 1.8 (i.e., other than exclusively from the use of the Transferred Assets or exercise of the license in Section 1.8), including such prior-existing and/or independently developed Intellectual Property related to the discovery, research, process development and/or manufacturing of bacteriophage and including any Patents claiming or covering, in whole or in part, any such prior-existing and/or independently developed Intellectual Property (collectively, “Purchaser Background IP”), and Seller shall have no rights, interests or licenses in or to, and Purchaser grants no license (by implication or otherwise) to Seller under, any Purchaser Background IP. Without limiting the foregoing, Purchaser Background IP includes, without limitation, all scientific and technical information and other Know-How and material, including but not limited to the isolation, phenotypic and genotypic characterization, evolution, modification, fermentation, purification, formulation, phage cocktails and construction thereof, and the bacterial and phage libraries for the following five (5) phage
		

		
			
		

		
			

		 

		

			-  17  -

		

		

		
			 
		

		
			programs: Klebsiella pneumoniae,  Acinetobacter baumannii,  Streptococcus mutans,  Escherichia coli, and Pseudomonas aeruginosa (but not any Transferred Assets or any Program Know-How relating to Pseudomonas aeruginosa), and any Patents that cover or claim the foregoing in whole or in part, and  Seller acknowledges and agrees that Purchaser is and shall remain the sole and exclusive owner of all right, title, and interest in and to all Purchaser Background IP.
		

		
			ARTICLE 8
		

		
			SURVIVAL; INDEMNIFICATION
		

		
			8.1        Survival.  All representations and warranties in Articles 3 and 4 of this Agreement shall survive the Closing and expire on the date that is twelve (12) months after the Closing Date (the “General Indemnity Termination Date”), except that the representations and warranties of Seller contained in (i) Sections 3.3 (Sufficiency of Assets) and 3.8 (Intellectual Property) (together, the “IP Assets Representations”) shall survive the Closing and expire on the date that is three (3) years after the Closing Date, (ii) Sections 3.1 (Organization; Authority; Binding Obligation), 3.2 (Title to Transferred Assets),  3.13 (Disclosure) and 3.14 (Brokers and Finders) shall survive the Closing and expire on the date that is six (6) years after the Closing Date and (iii) Section 3.7 (Tax Matters) shall survive the Closing and expire on the date that is sixty (60) days after the expiration of the maximum statute of limitations applicable to such matters (such dates in clauses (i), (ii) and (iii) together with the General Indemnity Termination Date, as applied to the applicable representation and warranty, an “Expiration Date,” and the representations and warranties of Seller contained in the Sections referenced in clauses (ii) and (iii), collectively, the “Fundamental Representations”). If Purchaser or Seller delivers to the other Party, before the applicable Expiration Date, either a Claim Notice or an Indemnification Demand based upon a breach of a representation or warranty in Article 3 or 4 of this Agreement, then the demand for indemnification set forth therein shall survive until, but only for purposes of, the resolution of the matter covered by such Claim Notice or Indemnification Demand. Each covenant and agreement in this Agreement shall survive the Closing without limitation as to time until fully performed in accordance with its terms, and any claims based on Fraud will survive the Closing indefinitely.
		

		
			8.2        Indemnification by Seller.  Subject to the other provisions of this Article 8, Seller shall indemnify Purchaser, its Affiliates and their respective directors, officers, employees, agents, advisors, and representatives (the “Purchaser Indemnified Parties”) in respect of, and hold them harmless against, any Losses suffered by a Purchaser Indemnified Party as a result of (a) the breach by Seller of any representation or warranty of Seller contained in this Agreement, (b) the breach by Seller of any covenant or agreement of Seller contained in this Agreement, (c) any Excluded Liability, or (d) any willful breach or Fraud by Seller in connection with this Agreement or the Transactions.
		

		
			8.3        Indemnification by Purchaser.  Subject to the other provisions of this Article 8, Purchaser shall indemnify Seller, its Affiliates and their respective directors, officers, employees, agents, advisors, and representatives (the “Seller Indemnified Parties”) in respect of, and hold them harmless against, any Losses suffered by a Seller Indemnified Party as a result of (a) the breach by Purchaser of any representation or warranty of Purchaser contained in this Agreement, (b) the breach by Purchaser of any covenant or agreement of Purchaser contained in this Agreement, (c) any failure on the part of Purchaser to perform and discharge the Assumed Liabilities on a timely basis, or (d) any Fraud by Purchaser in connection with this Agreement or the Transactions.
		

		
			8.4        Indemnification Claims.
		

		
			(a)         No claim for Losses pursuant to Section 8.2(a) or 8.3(a) shall be brought against an indemnifying Party after the applicable Expiration Date.
		

		
			
		

		
			

		 

		

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			(b)         In the event a Purchaser Indemnified Party becomes aware of a claim by a Third Party (including any action or proceeding commenced or threatened to be commenced by any Third Party) that such Purchaser Indemnified Party reasonably believes may result in a demand against Seller pursuant to Section 8.2, such Purchaser Indemnified Party shall promptly notify Seller in writing of such claim.  Likewise, in the event a Seller Indemnified Party becomes aware of a claim by a Third Party that such Seller Indemnified Party reasonably believes may result in a demand against Purchaser for indemnification pursuant to Section 8.3, such Seller Indemnified Party shall promptly notify Purchaser in writing of such claim.  For purposes of this Section 8.4, the Party giving any such notice (a “Claim Notice”) shall be deemed to be the  “Notifying Party,” and the Party receiving the Claim Notice shall be deemed to be the “Notified Party.”  The Claim Notice shall be accompanied by reasonable supporting documentation submitted by the Third Party making such claim and shall describe in reasonable detail (to the extent known by the Notifying Party) the facts constituting the basis for such claim and the amount of the claimed Losses; provided, however, that no delay or failure on the part of the Notifying Party in delivering a Claim Notice shall relieve the Notified Party from any liability hereunder except to the extent of any damage or liability caused by or arising out of such delay or failure.  Within twenty (20) days after receipt of any Claim Notice, the Notified Party may, upon written notice thereof to the Notifying Party, assume control of the defense of the claim referred to therein at the Notified Party’s sole cost and expense with counsel reasonably satisfactory to the Notifying Party.  If the Notified Party does not so assume control of the defense of such claim, the Notifying Party shall control the defense of such claim at the sole cost and expense of the Notified Party.  The Party not controlling the defense of such claim (the “Non-controlling Party”) may participate therein at its own expense; provided,  however, that if the Notified Party assumes control of the defense of such claim and the Notified Party and the Notifying Party have materially conflicting interests or different defenses available with respect to such claim which cause the Notifying Party to hire its own separate counsel with respect to such claim, the reasonable fees and expenses of counsel to the Notifying Party shall be considered “Losses” for purposes of this Agreement (subject to the proviso in the definition thereof).  The Party controlling the defense of such claim (the “Controlling Party”) shall keep the Non-controlling Party reasonably advised of the status of such claim and the defense thereof and shall consider in good faith recommendations made by the Non-controlling Party with respect thereto.  The Non-controlling Party shall furnish the Controlling Party with such information as it may have with respect to such claim (including copies of any summons, complaint or other pleading which may have been served on such Party and any written claim, demand, invoice, billing or other document evidencing or asserting the same) and shall otherwise cooperate with and assist the Controlling Party in the defense of such claim.  Neither the Notified Party nor the Notifying Party shall agree to any settlement of, or the entry of any judgment arising from, any such claim without the prior written consent of the other Party, which shall not be unreasonably withheld or delayed; provided, however, that the consent of the Notifying Party shall not be required with respect to any such settlement or judgment if the Notified Party agrees in writing to pay or cause to be paid all amounts payable pursuant to such settlement or judgment (subject to the other limitations in this Article 8), including all monetary obligations of the Notifying Party, and such settlement or judgment neither includes nor creates any non-monetary obligations of the Notifying Party.
		

		
			(c)         Except as otherwise provided in Section 8.4(b) with respect to Third Party claims for which notice has previously been provided, in order to seek indemnification under this Article 8, a Person entitled to indemnification under Section 8.2 or Section 8.3 (an “Indemnified Party”) shall deliver a written demand (an “Indemnification Demand”) to Seller (in the case of an Indemnification Demand from a Purchaser Indemnified Party) or Purchaser (in the case of an Indemnification Demand from a Seller Indemnified Party) which contains (i) a description and the amount (the “Asserted Damages Amount”) of any Losses incurred or reasonably expected to be incurred by the Indemnified Party, (ii) a statement that the Indemnified Party is entitled to indemnification under this Article 8 for such Losses and a reasonable explanation of the basis therefor, and (iii) a demand for payment in the amount of such Losses.
		

		
			
		

		
			

		 

		

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			(d)         Within twenty (20) days after delivery of an Indemnification Demand to Seller or Purchaser (as the case may be), such Party shall deliver to the other Party a written response (the “Response”) in which the Party providing the Response shall: (i) agree that the Indemnified Party is entitled to receive all of the Asserted Damages Amount (in which case the Response shall be accompanied by a payment to the Indemnified Party of the full Asserted Damages Amount, by check or wire transfer; (ii) agree that the Indemnified Party is entitled to receive part, but not all, of the Asserted Damages Amount (such portion, the “Agreed Portion”) (in which case the Response shall be accompanied by a payment to the Indemnified Party of the Agreed Portion, by check or by wire transfer); or (iii) dispute that the Indemnified Party is entitled to receive any of the Asserted Damages Amount.
		

		
			(e)         In the event that the Party providing a Response pursuant to Section 8.4(d) shall (i) dispute that the Indemnified Party is entitled to receive any of the Asserted Damages Amount, or (ii) agree that the Indemnified Party is entitled to only the Agreed Portion of the Asserted Damages Amount, Purchaser and Seller shall attempt in good faith to agree upon the rights of the respective Party with respect to each of the indemnification claims that comprise the Asserted Damages Amount (or the portion of the Asserted Damages Amount not comprising the Agreed Portion).  If Purchaser and Seller should so agree, a memorandum setting forth such agreement shall be prepared and signed by both Parties.  If no such agreement can be reached after good faith negotiation within 60 days after delivery of a Response, either Purchaser or Seller may demand arbitration of any matter set forth in the applicable Indemnification Demand.  The matter shall be settled by arbitration conducted by one arbitrator mutually agreeable to Purchaser and Seller.  In the event that, within 30 days after submission of any dispute to arbitration, Purchaser and Seller cannot mutually agree on one arbitrator, then the Parties shall arrange for the American Arbitration Association to designate a single arbitrator in accordance with the rules of the American Arbitration Association.
		

		
			(f)         Any such arbitration shall be held in Los Angeles County, California, under the rules and procedures then in effect of the American Arbitration Association.  The arbitrator shall determine how all expenses relating to the arbitration shall be paid, including the respective expenses of each Party, the fees of the arbitrator and the administrative fee of the American Arbitration Association.  The arbitrator shall set a limited time period and establish procedures designed to reduce the cost and time for discovery while allowing Purchaser and Seller an opportunity, adequate in the sole judgment of the arbitrator, to discover relevant information from the opposing Party about the subject matter of the dispute.  The arbitrator shall rule upon motions to compel or limit discovery and shall have the authority to impose sanctions, including attorneys’ fees and costs, to the same extent as a competent court of law or equity, should the arbitrator determine that discovery was sought without substantial justification or that discovery was refused or objected to without substantial justification.  The decision of the arbitrator as to the validity and amount of any indemnification claim in such Indemnification Demand shall be final, binding and conclusive upon the Parties.  Such decision shall be written and shall be supported by written findings of fact and conclusions which shall set forth the award, judgment, decree or order awarded by the arbitrator.  All payments required by the arbitrator shall be made within 30 days after the decision of the arbitrator is rendered.  Judgment upon any award rendered by the arbitrator may be entered in any court having jurisdiction.
		

		
			8.5        Limitations.  Except for Losses based on Fraud or willful breach, the maximum aggregate amount of Losses for which Seller shall be liable (a) under Section 8.2(a) for breach of (i) any Fundamental Representations shall be limited in the aggregate to the Purchase Price actually paid to Seller, (ii) any IP Assets Representations shall be limited in the aggregate to  the Purchase Price actually paid to Seller up to $8,000,000,, and (iii) any representation or warranty of Seller other than breach of any Fundamental Representations or the IP Assets Representations shall be limited in the aggregate to an amount equal to [***]% of the Purchase Price actually paid to Seller, and (b) under Section 8.2(b) for breach of any covenant shall be limited in the aggregate to the Purchase Price actually paid to Seller.  For purposes of this Section
		

		
			
		

		
			

		 

		

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			8.5, the amount of the Purchase Price actually paid to Seller shall be determined as the amount of the Purchase Price that becomes due and payable to Seller pursuant to Section 1.5(a) hereof and is either received by Seller or validly set-off pursuant to a right of set-off of Purchaser arising from Section 8.6 hereof and shall not be limited by the amount of the Purchase Price actually received by Seller at the time such claim is made.
		

		
			8.6        Set Off.  Purchaser shall have the right to withhold and deduct any Losses for which any Purchaser Indemnified Party is entitled to indemnification under this Agreement after application in full of the provisions of Section 8.4 (subject to Section 8.5 hereof) from any payments, including for the avoidance of doubt any Share Payment, that may be owed to Seller pursuant to Section 1.5 (a “Set Off”).  For purposes of clarity, Purchaser shall not have to right to a Set Off with respect to any amount that is subject to ongoing dispute pursuant to Section 8.4(e). Neither the exercise nor the failure to exercise a Set-Off will constitute an election of remedies or limit the Purchaser Indemnified Party in any manner in the enforcement of any other remedies that may be available to it under this Agreement.
		

		
			ARTICLE 9
		

		
			MISCELLANEOUS
		

		
			9.1        Entirety of Agreement.  This Agreement (including the Schedules and Exhibits hereto), state the entire agreement of the Parties, merge all prior negotiations, agreements and understandings, if any, and state in full all representations, warranties, covenants and agreements which have induced this Agreement.  Each Party agrees that in dealing with third parties no contrary representations will be made.
		

		
			9.2        Notices.  All notices, demands and communications of any kind which a Party hereto may be required or desire to serve upon the other Party under the terms of this Agreement shall be in writing and shall be given by:  (a) personal service upon such other Party; (b) mailing a copy thereof by certified or registered mail, postage prepaid, with return receipt requested; (c) sending a copy thereof by Federal Express or equivalent courier service; or (d) sending a copy thereof by facsimile or confirmed email, in each case to the other Party at its address, facsimile number or email address set forth on the signature pages hereto.  In case of service by Federal Express or equivalent courier service, facsimile or email transmission, or personal service, such service shall be deemed complete upon delivery or transmission, as applicable.  In the case of service by mail, such service shall be deemed complete on the fifth (5th) Business Day after mailing.  The addresses and facsimile numbers to which, and persons to whose attention, notices and demands shall be delivered or sent may be changed from time to time by notice served as hereinabove provided by any party upon any other party.
		

		
			9.3        Amendment.  This Agreement may be modified or amended only by an instrument in writing, duly executed by both Parties.
		

		
			9.4        Waiver.  No waiver by any Party of any term, provision, condition, covenant, agreement, representation or warranty contained in this Agreement (or any breach thereof) shall be effective unless it is in writing executed by the Party against which such waiver is to be enforced.  No waiver shall be deemed or construed as a further or continuing waiver of any such term, provision, condition, covenant, agreement, representation or warranty (or breach thereof) on any other occasion or as a waiver of any other term, provision, condition, covenant, agreement, representation or warranty (or of the breach of any other term, provision, condition, covenant, agreement, representation or warranty) contained in this Agreement on the same or any other occasion.
		

		
			9.5        Counterparts; Facsimile.  For the convenience of the Parties, any number of counterparts hereof may be executed, each such executed counterpart shall be deemed an original and all such
		

		
			
		

		
			

		 

		

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			counterparts together shall constitute one and the same instrument.  Facsimile or electronic (i.e., PDF) transmission of any signed original counterpart shall be deemed the same as the delivery of an original.
		

		
			9.6        Assignment; Binding Nature; No Beneficiaries.  Purchaser may freely assign any or all of its rights under this Agreement, in whole or in part, to any other Person without obtaining the consent or approval of Seller and, after the Closing, Seller may freely assign any or all of its rights under this Agreement, in whole or in part, to any other Person, with written notice to Purchaser but without obtaining the consent or approval of Purchaser.  For the avoidance of doubt, neither Purchaser nor Seller shall be permitted to assign or transfer or delegate any of its obligations under this Agreement without the other Party’s prior written consent, and any such assignment or delegation without the other Party’s prior written consent shall be null and void.  This Agreement shall inure to the benefit of Seller and Purchaser, the Purchaser Indemnified Parties, the Seller Indemnified Parties and the respective successors and assigns (if any) of the foregoing.
		

		
			9.7        Time of the Essence.  Time is of the essence of this Agreement.
		

		
			9.8        Governing Law; Jurisdiction.  This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Washington, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof.
		

		
			9.9        Fees and Expenses.  Subject to Article 8, all fees and expenses incurred in connection with this Agreement and the transactions contemplated by this Agreement shall be paid by the Party incurring such expenses.
		

		
			9.10      Attorneys’ Fees.  Subject to Article 8, if any legal action or other legal proceeding relating to this Agreement or the enforcement of any provision of this Agreement is brought against any Party to this Agreement, the prevailing Party shall be entitled to recover reasonable attorneys’ fees, costs and disbursements (in addition to any other relief to which the prevailing Party may be entitled).
		

		
			9.11      Negotiated Agreement.  Purchaser and Seller acknowledge that they have been advised and represented by counsel in the negotiation, execution and delivery of this Agreement and accordingly agree that if an ambiguity exists with respect to any provision of this Agreement, such provision shall not be construed against any party because such party or its representatives drafted such provision.
		

		
			9.12      Public Announcements.  Neither Seller nor, prior to the Closing Date, Purchaser shall issue any press release or make any other public announcement concerning the Business, this Agreement or the transactions contemplated hereby (including, without limitation, any announcements relating to the direction of or Purchaser’s plans for the Business) without the prior written approval of the other Party.
		

		
			9.13      Severability.  Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction.  If the final judgment of a court of competent jurisdiction declares that any term or provision hereof is invalid or unenforceable, the Parties hereto agree that the court making such determination shall have the power to limit the term or provision, to delete specific words or phrases, or to replace any invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, and this Agreement shall be enforceable as so modified.  In the event such court does not exercise the power granted to it in the prior sentence, the Parties hereto agree to replace such invalid or unenforceable term or provision with a valid and enforceable term or provision that will achieve, to the extent possible, the economic, business and other purposes of such invalid or unenforceable term.
		

		
			
		

		
			

		 

		

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			9.14      WAIVER OF JURY TRIAL.  PURCHASER AND SELLER HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.
		

		
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			CONFIDENTIAL
		

		
			EXECUTION VERSION
		

		
			 
		

		
			The Parties hereto have duly executed and delivered this Asset Purchase Agreement as of the date first set forth above.
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						PURCHASER:
C3J THERAPEUTICS, INC.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Todd R. Patrick

				
	
					
						 

					
					
						 

					
					
						Name: Todd R. Patrick

				
	
					
						 

					
					
						 

					
					
						Title: President & CEO

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Address:4503 Glencoe Avenue
Marina del Rey, California 90292

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Facsimile: 310.665.2963

				
	
					
						 

					
					
						Email: tpatrick@c3jtherapeutics.com

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						SELLER:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						SYNTHETIC GENOMICS, INC.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Oliver Fetzer

				
	
					
						 

					
					
						 

					
					
						Name: Oliver Fetzer

				
	
					
						 

					
					
						 

					
					
						Title: Chief Executive Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Address:11149 North Torrey Pines Road
La Jolla, California  92037

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Facsimile: 858.777.5452

				
	
					
						 

					
					
						Email:  ofetzer@syntheticgenomics.com

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						SYNTHETIC GENOMICS VACCINES, INC.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Oliver Fetzer

				
	
					
						 

					
					
						 

					
					
						Name: Oliver Fetzer

				
	
					
						 

					
					
						 

					
					
						Title: Chief Executive Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Address:11149 North Torrey Pines Road
La Jolla, California  92037

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Facsimile: 858.777.5452

				
	
					
						 

					
					
						Email:  ofetzer@syntheticgenomics.com

				

		
			 
		

		
			
		

		
			

		 

		

		
			 
		

		
			ANNEX A
		

		
			DEFINITIONS
		

		
			For purposes of this Agreement, the following terms shall have the meanings specified below:
		

		
			“Acquisition” of an entity (a “Target Entity”) means a transaction or series of related transactions pursuant to which another entity (an “Acquirer”) directly or indirectly (a) obtains control of more than fifty percent (50%) of the voting securities of such Target Entity, or (b) succeeds to substantially all the assets and business of such Target Entity (whether via merger, sale of assets, or otherwise).
		

		
			“Acquirer Entities” means (i) the Acquirer in any Acquisition of Seller or Seller Affiliate; and (ii) any Affiliates of such Acquirer (other than the entity acquired in the corresponding Acquisition and its controlled Affiliates).
		

		
			“Affiliate” means, with respect to any Person, any other Person that, directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such Person, and the term “control” (including the terms “controlled by” and “under common control with”) means ownership, directly or indirectly, of more than fifty percent (50%) of the voting securities, participating profit interest, or other ownership interests of a Person.
		

		
			“Books and Records” means all books, ledgers, files, reports, plans, records, manuals, documentation and other printed, written or electronic materials (or portions thereof), including, without limitation, books of account, invoices, correspondence, memoranda, scientific records and files (including laboratory notebooks, research records and invention disclosures), customer and supplier lists, databases, specifications, operating history information, draft and published manuscripts, market analyses, marketing reports, submissions and correspondence to and from regulatory authorities and inventory records (in all cases, in any form or medium) maintained or generated exclusively for the Business as currently conducted by Seller and its Affiliates and/or the Program Materials.
		

		
			“Business Day” means Monday through Friday, excluding any such day on which banks are closed in the State of New York.
		

		
			“Code” means the Internal Revenue Code of 1986, as amended.
		

		
			“Consent” means any consent, approval or waiver.
		

		
			“Contract” means any written agreement, contract, understanding, arrangement, instrument, note, guaranty, indemnity, warranty, deed, assignment, purchase order, work order, commitment, covenant, assurance or undertaking of any nature.
		

		
			“controlled”, with respect to Intellectual Property or Know-How, means the ability to transfer ownership of such Intellectual Property or Know-How or grant a license or sublicense with respect thereto.
		

		
			“Copyrights” means works of authorship, whether or not registered, and all pending applications for registration of the same.
		

		
			“Encumbrance” shall mean any lien, pledge, hypothecation, mortgage, security interest, equity, trust, equitable interest, encroachment or Order.
		

		
			
		

		
			

		 

		

			 

		

		

		
			 
		

		
			“Exploit” (with correlative meaning for “Exploitation”) means to research, develop, design, test, modify, improve, manufacture, produce, use, sell, offer for sale, promote, lease, import, export, distribute, have made, used and sold, and make other dispositions (including transfer of title or possession), reproduce, market, distribute, license, sublicense, commercialize and otherwise utilize and exploit.
		

		
			“Fraud” means any fraud, intentional misrepresentation or willful misconduct.
		

		
			“GAAP” means United States generally accepted accounting principles and practices.
		

		
			“Governmental Authority” means any national, federal, regional, state, provincial, local, or foreign or other governmental authority or instrumentality, legislative body, court, administrative agency, regulatory body, commission or instrumentality, including any multinational authority having governmental or quasi-governmental powers, or any other industry self-regulatory authority.
		

		
			“Intellectual Property”  means all worldwide intellectual property rights including, without limitation, rights in and to any Patents, Marks, Copyrights and Know-How.
		

		
			“Know-How” means any of the following intangible items, whether patentable or otherwise, and regardless of the form or medium: data, results, know-how, trade secrets, expertise, knowledge, practices, techniques, concepts, methodologies, methods, processes, protocols, designs, ideas, technology, inventions (whether or not reduced to practice), improvements, industrial designs and models, engineering drawings, discoveries, procedures, developments, databases, formulae,  specifications, formulations, assays, screens, software, algorithms, test data, analytical and quality control data and results or descriptions (including pharmacological, biological, chemical, biochemical, toxicological, pre-clinical and clinical test data), raw data, analyzed data and other confidential or proprietary information, including such information contained in lab notebooks, research records, technical information, market analyses, information contained in submissions to and information from regulatory authorities, and marketing and other reports.  Notwithstanding the foregoing, Know-How excludes Patents and any inventions claimed in Patents as of the Effective Date.
		

		
			“knowledge” means the actual knowledge of each of Dr. Magda Barbu, Todd Peterson Ph.D., Anthony Artuso Ph.D., Rob Cutler, Margaret Dunbar, including in each case the knowledge that such person would have obtained after due inquiry in the reasonable conduct of his or her duties after familiarizing himself or herself with the terms and conditions of this Agreement and the Seller Disclosure Schedule. With respect to Intellectual Property, the “due inquiry in the reasonable conduct of his or her duties” does not require the Seller or any of the individuals named in the previous sentence to conduct, have conducted, obtain, or have obtained any freedom-to-operate opinions or similar opinions of counsel or any clearance searches, and no knowledge of any third-party Intellectual Property that would have been revealed by such inquiries, opinions, or searches will be imputed to the Seller or any such individual.
		

		
			“Law”  means any federal, state, local, municipal, foreign or other law, statute, constitution, principle of common law, rule, regulation, ruling or requirement issued, enacted, adopted, promulgated, implemented or otherwise put into effect by or under the authority of any Governmental Authority.
		

		
			“Liability” or “Liabilities” means any debt, loss, damage, adverse claim, liability or obligation (whether direct or indirect, known or unknown, asserted or unasserted, absolute or contingent, accrued or unaccrued, liquidated or unliquidated, or due or to become due, and whether in contract, tort, strict liability or otherwise), and including all costs and expenses relating thereto.
		

		
			“Loss” or “Losses” means any and all losses, costs, claims, damages (other than speculative or indirect damages or punitive or exemplary damages, in each case except to the extent such damages are
		

		
			
		

		
			

		 

		

			 

		

		

		
			 
		

		
			paid or payable to a Third Party), Liabilities, Taxes, judgments, settlements, awards, demands, offsets, reasonable out-of-pocket costs, expenses and attorneys’ fees (including any such reasonable costs, expenses and attorneys’ fees incurred in enforcing an Indemnified Party’s right to indemnification against any indemnifying Party or with respect to any appeal) and penalties and interest, if any.
		

		
			“Marks” means all (a) trademarks, service marks, trade names, service names, brand names, trade dress rights, logos, corporate names and general intangibles of a like nature, together with the goodwill associated with any of the foregoing, and all applications, registrations and renewals thereof, and (b) internet protocol addresses and networks, including internet domain names, e-mail addresses, world wide web and http addresses, network names, network addresses and services, including registrations of and applications for any of the foregoing.
		

		
			“Material Adverse Effect” means any circumstance, development, effect, event, change, condition, occurrence or state of facts which (a) has been, or reasonably could be expected to be, material and adverse with respect to the condition (financial or otherwise), assets, properties, Liabilities, rights, results, operations or prospects of the Business as currently conducted or the Transferred Assets, or (b) materially impairs, or reasonably could be expected to materially impair, the ability of Seller to consummate the Transactions or to perform its obligations under this Agreement; provided, however, that the following shall not be deemed to constitute, and shall not be taken into account in determining whether there has been, a Material Adverse Effect: (a) any adverse effect resulting directly or indirectly from general business or economic conditions; (b) any adverse effect resulting directly or indirectly from conditions generally affecting any industry or industry sector in which the Business as currently conducted operates or competes; (c) any adverse effect resulting directly or indirectly from the announcement, execution or delivery of this Agreement or the pendency or consummation of the Transactions; or (d) any adverse effect resulting directly or indirectly from any change in accounting requirements or principles or any change in applicable Laws or the interpretation thereof (except that the conditions in clauses (a) and (b) shall be taken into account to the extent they have adversely affected the Business to a greater degree than they have affected the business of other companies that conduct business in the same industry or sector as the Business.
		

		
			“Order” means any writ, judgment, decree, injunction, award, assessment, decision, ruling or similar order of any Governmental Authority (in each such case whether preliminary or final).
		

		
			“Patents” means any and all (a) issued patents, (b) patent applications, including all applications and filings made pursuant to the Patent Cooperation Treaty, provisional applications, substitutions, continuations, continuations-in-part, divisionals, converted provisionals, continued prosecution applications and renewals, and all letters of patent granted with respect to any of the foregoing, (c) patents of addition, restorations, extensions, supplementary protection certificates, registration or confirmation patents, utility models, petty patents and design patents, patents resulting from post-grant proceedings, inter partes reviews, oppositions and other existing or future post-issuance proceedings, and extensions revalidations, reissues, re-examinations and supplemental examinations, (d) inventor’s certificates and (e) other forms of government issued rights substantially similar to any of the foregoing.
		

		
			“Person” means any individual, corporation, partnership, firm, joint venture, association, joint-stock company, trust, unincorporated organization, governmental body or other entity.
		

		
			“Program Know-How” means all Know-How owned or otherwise controlled  by Seller and/or its Affiliates as of the Effective Date and necessary for the operation of the Business as currently conducted by Seller and its Affiliates.  Notwithstanding the foregoing, Program Know-How excludes Archetype and any “shrink wrap” and similar generally available commercial licenses to third party software. For the avoidance of doubt, to the extent any “Company Know-How” and/or “Company Platform Improvements”
		

		
			
		

		
			

		 

		

			 

		

		

		
			 
		

		
			(as such terms are defined in the Merck Agreement) is or are not included in Program IP, the same shall be included in the Program Know-How.
		

		
			“Program Patents” means the Patents set forth on Schedule 1.1(b)
		

		
			“Purchase Price” means, collectively, the Share Payment, the Closing Consideration, the First Anniversary Payment, the Second Anniversary Payment and the Third Anniversary Payment.
		

		
			“Purchaser Transferred Assets IP” means (a) any Know-How (excluding inventions claimed in Patents as of the Termination Date (as defined in Section 7.3(b)) specifically related to the Business or the Exploitation of the Program Materials, in each case, arising from Purchaser’s use of the Transferred Assets or exercise of the license in Section 1.8 following the Closing Date and (b) any Patents that both: (i) claim inventions within the Know-How described in clause (a); and (ii) are filed after the Termination Date, in each case, ((a) and (b)), excluding Purchaser Background IP (as defined in Section 7.3(b)).  Notwithstanding the foregoing, the Patents described in clause (b) exclude the claims of any Patents to the extent directed to inventions outside the Know-How described in clause (a) and the Patents described in clause (b) exclude Patents owned or controlled by (A) an Acquirer in any Acquisition of Purchaser or Purchaser Affiliate or (B) any Affiliates of such Acquirer (other than the entity acquired in the corresponding Acquisition and its controlled Affiliates), in either case, ((A) or (B)), prior to the date of such Acquisition (for clarity, the Patents described in clause (b) include any Patents claiming inventions within the Know-How described in clause (a) that are filed by such Acquirer or any Affiliates of such Acquirer after the date of such Acquisition and after the Termination Date).
		

		
			“Tax” or “Taxes”  means any tax (including any income tax, franchise tax, capital gains tax, estimated tax, gross receipts tax, surtax, excise tax, transfer tax, sales tax, use tax, property tax, business tax, occupation tax, inventory tax, occupancy tax, withholding tax or payroll tax), documentary charges, recording fees, levy, assessment, tariff, impost, imposition, toll, duty (including any customs duty), deficiency or fee, and any related charge or amount (including any fine, penalty or interest), that is, has been or may in the future be (a) imposed, assessed or collected by or under the authority of any Governmental Authority, or (b) payable pursuant to any tax‐sharing agreement or similar contract.
		

		
			“Tax Return”  means any return (including any information return), report, statement, declaration, estimate, schedule, notice, notification, form, election, certificate or other document or information that is, has been or may in the future be filed with or submitted to, or required to be filed with or submitted to, any Governmental Authority in connection with the determination, assessment, collection or payment of any Tax or in connection with the administration, implementation or enforcement of or compliance with any Laws relating to any Tax.
		

		
			“Third Party” means any Person other than Purchaser, Seller or their respective Affiliates.
		

		
			“Transactions” mean (a) the execution and delivery of this Agreement and (b) all of the transactions contemplated by this Agreement, including: (i) the sale of the Transferred Assets by Seller to Purchaser in accordance with this Agreement; (ii) the assumption of the Assumed Liabilities by Purchaser; and (iii) the performance by Seller and Purchaser of their respective obligations under this Agreement, and the exercise by Seller and Purchaser of their respective rights under this Agreement.
		

		
			“Unfiled Program Know-How Patents” means Patents (including, without limitation, any “Company Patent Rights” as defined in the Merck Agreement) owned or controlled by Seller or its Affiliates that both: (i) claim inventions within Program Know-How; and (ii) are filed after the Effective Date.  Notwithstanding the foregoing, Unfiled Program Know-How Patents exclude: (A) the claims of any Patents to the extent directed to inventions: (1) outside the Program Know-How; or (2) claimed or described in any
		

		
			
		

		
			

		 

		

			 

		

		

		
			 
		

		
			Patents filed on or prior to the Effective Date; and (B) Patents owned or controlled by any of the Acquirer Entities prior to the date of the corresponding Acquisition (for clarity, Unfiled Program Know-How Patents include any Patents claiming inventions within Program Know-How that are filed by any Acquirer Entity after the date of such Acquisition).
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

		
			EXECUTION VERSION
		

		
			 
		

		
			AMENDMENT TO ASSET PURCHASE AGREEMENT
		

		
			 
		

		
			THIS AMENDMENT TO ASSET PURCHASE AGREEMENT (this “Amendment”) is made and entered into as of December 20, 2018 (the “Amendment Effective Date”) by and between C3J THERAPEUTICS, INC., a Washington corporation (“Purchaser”), and SYNTHETIC GENOMICS, INC., a Delaware corporation, and SYNTHETIC GENOMICS VACCINES, INC., a Delaware corporation (collectively, “Seller”). Purchaser and Seller may be referred to herein collectively as the “Parties” and individually as a “Party.”
		

		
			RECITALS
		

		
			 
		

		
			WHEREAS, Purchaser and Seller entered into that certain Asset Purchase Agreement dated as of February 14, 2018 (the “Agreement”);
		

		
			 
		

		
			WHEREAS, Purchaser and a Third Party have executed a non-binding term sheet pertaining to a potential reverse triangular merger involving Purchaser and such Third Party (the “Merger Transaction”);
		

		
			 
		

		
			WHEREAS, the Parties wish to amend the Agreement to modify the purchase price provisions thereof subject to the closing of the Merger Transaction.
		

		
			 
		

		
			NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:
		

		
			 
		

		
			1.   All capitalized terms used in this Amendment and not otherwise defined herein shall have the same meaning as defined in the Agreement.
		

		
			 
		

		
			2.   ANNEX A to the Agreement (DEFINITIONS) is hereby amended to add the following definitions:
		

		
			 
		

		
			““Covered” means, with respect to a Product and any Program Patents, that, in the absence of ownership of or a license granted under such Program Patents, the manufacture, use, sale, offering for sale or importation of such Product would infringe an issued patent within such Program Patents or, as to a pending application within such Program Patents, the manufacture, use, sale, offering for sale or importation of such Product would infringe such pending application if it were to issue as a patent.”
		

		
			 
		

		
			““Product” means a synthetic bacteriophage product or engineered bacteriophage product that (a) is developed by or on behalf of Purchaser or its Affiliate utilizing bacteriophage from Program Materials that were owned or controlled by or in the possession of Seller and/or its Affiliates and included in the Transferred Assets as of the Closing Date, (b) is developed by or on behalf of a counterparty to an Assigned Contract pursuant to the terms of such Assigned Contract and either utilizes bacteriophage licensed, transferred or otherwise provided to such counterparty pursuant to such Assigned Contract prior to the
		

		
			
		

		
			

		 

		

		
			Closing Date or utilizes bacteriophage from Program Materials that were owned or controlled by or in the possession of Seller and/or its Affiliates and included in the Transferred Assets as of the Closing Date, or (c) is Covered by a Valid Claim.  For clarity, Product excludes any synthetic bacteriophage product or engineered bacteriophage product that is developed by or on behalf of Purchaser, its Affiliate or any counterparty to an Assigned Contract and that (i) utilizes any bacteriophage that (A) was not included in the Program Materials that comprised part of the Transferred Assets sold to Purchaser on the Closing Date or (B) was not licensed, transferred or otherwise provided to a counterparty to an Assigned Contract pursuant to such Assigned Contract prior to the Closing Date, or (ii) is not Covered by a Valid Claim (for example, excluding any such product that may be developed by such counterparty pursuant to an amendment to such Assigned Contract after the Closing Date).”
		

		
			 
		

		
			“Valid Claim” means with respect to the particular country within which the application was filed (a) a claim of an issued and unexpired patent within Program Patents in the relevant country which claim has not: (i) lapsed, been cancelled, permanently revoked or dedicated to the public; (ii) become abandoned; (iii) been held invalid or unenforceable by a court or government agency or other appropriate body of competent jurisdiction (within the US, including the USPTO or PTAB), which holding is unappealable or unappealed within the time allowed for appeal; or (iv) been disclaimed or admitted to be invalid or unenforceable through reissue, inter partes review, post grant review, reexamination, opposition, revocation, disclaimer or otherwise, or (b) a claim of a pending patent application within Program Patents in the relevant country which has not been cancelled, withdrawn, abandoned, finally rejected or expired; provided, that, notwithstanding the foregoing, a patent application pending in the relevant country for more than five (5) years will not be considered to have any Valid Claim for purposes of this Agreement unless and until any Program Patents in the relevant country that meets the criteria set forth in clause (a) above with respect to such application issues.”
		

		
			 
		

		
			3.   Section 1.5 of the Agreement (Purchase Price) is hereby deleted and replaced in its entirety with the following:
		

		
			 
		

		
			“In addition to the Assumed Liabilities, as consideration for the sale of the Transferred Assets to Purchaser:
		

		
			 
		

		
			(a) at the Closing, Purchaser paid to Seller, by wire transfer of immediately available funds in US Dollars, the sum of $1,000,000 (the “Closing Consideration”);
		

		
			 
		

		
			(b) Purchaser will pay to Seller, by wire transfer of immediately available funds in US Dollars, the following amounts on the following dates: (i) $1,000,000 on January 31, 2019; (ii) $1,000,000 on January 31, 2020; and (iii) $2,000,000 on January 31, 2021 (the payments pursuant this Section 1.5(b), collectively, the “Cash Payments”);
		

		
			 
		

		
			(c) Purchaser will pay to Seller the following milestone payments in accordance with the procedure set forth below in this Section 1.5(c) upon the achievement of the following milestone events by Purchaser or its Affiliate or a counterparty to an Assigned Contract with respect to each 
		

		
			
		

		
			

		 

		

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			of the first three (3) Products, on a Product-by-Product basis: (i) $2,000,000 upon the first to occur of (x) dosing of the first human subject in the first Phase 3 clinical study in the U.S. of the first Product or (y) submission of a new drug approval application for the first Product to the regulatory authority with power to approve the use of such Product for therapeutic use in humans in any country; (ii) $5,000,000 upon dosing of the first human subject in the first Phase 3 clinical study in the U.S. of each of the second Product and the third Product; (iii) $7,500,000 upon the first to occur of (x) FDA approval of a BLA or NDA in the U.S. for the first Product or (y) EMA approval in Europe for the first Product; and (iv) with respect to each of the second Product and the third Product, $10,000,000 upon the first to occur of (x) FDA approval of a BLA or NDA in the U.S. for such Product or (y) EMA approval in Europe for such Product (the payments pursuant this Section 1.5(c), collectively, the “Milestone Payments”).  On a Product-by-Product basis, in the event that the applicable FDA approval milestone event set forth in clause (iii) or clause (iv) of this Section 1.5(c) is achieved but the Milestone Payment pursuant to clause (i) or clause (ii) of this Section 1.5(c) (as applicable) has not previously been paid with respect to such Product (e.g., if FDA approval is obtained without conducting a Phase 3 clinical study of such Product), then the Milestone Payment pursuant to clause (i) or clause (ii) of this Section 1.5(c), as applicable, shall become payable upon achievement of the applicable milestone event set forth in clause (iii) or clause (iv) of this Section 1.5(c) with respect to such Product. Purchaser shall notify Seller in writing within thirty (30) days of the achievement of each milestone event set forth in this Section 1.5(c). Following receipt of such written notice, Seller will promptly invoice Purchaser for the applicable Milestone Payment and Purchaser will pay such Milestone Payment to Seller, by wire transfer of immediately available funds in US Dollars, within thirty (30) days of receipt of such invoice.
		

		
			 
		

		
			(d)  Immediately prior to the closing of the Merger Transaction, Purchaser shall issue to Synthetic Genomics, Inc. that number of shares of Purchaser’s Common Stock (as evidenced and confirmed by Purchaser’s capitalization table provided on the date of such issuance) equal to 10% of Purchaser’s fully diluted capitalization (excluding options and restricted stock units) immediately prior to the closing of the Merger Transaction (such shares, the “Consideration Shares,” and the issuance of such shares, the “Share Payment”).  The Share Payment will be subject to Seller’s execution and delivery of a Common Stock Purchase Agreement substantially in the form attached hereto as Exhibit A (with the recitals thereof modified as appropriate) and in compliance with applicable securities laws. Prior to the Share Payment, Seller shall have no rights of a shareholder of Purchaser with respect to the Consideration Shares, including, without limitation, any dividend rights, voting rights, liquidation rights, preemptive rights or other equity right.
		

		
			 
		

		
			(e)  Seller shall provide Purchaser with its wire instructions at least two Business Days prior to a date on which Purchaser will pay Seller via a wire transfer of funds; provided, that if Seller does not provide Purchaser wire instructions within such two Business Day period, Purchaser shall be entitled to rely on the most recent wire instructions previously provided by Seller.”
		

		
			 
		

		
			The Parties acknowledge that Purchaser has paid the Closing Consideration and that Purchaser’s obligation under Section 1.5(a) of the Agreement has been satisfied in full.
		

		
			 
		

		
			
		

		
			

		 

		

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			4.   The last sentence of Section 8.5 of the Agreement (Limitations) is hereby deleted and replaced in its entirety with the following:
		

		
			 
		

		
			“For purposes of this Section 8.5, the amount of the Purchase Price actually paid to Seller shall be determined as the amount of the Purchase Price that becomes due and payable to Seller pursuant to Section 1.5 (subsections (a) through (e) inclusive) hereof and is either received by Seller or validly set-off pursuant to a right of set-off of Purchaser arising from Section 8.6 hereof and shall not be limited by the amount of the Purchase Price actually received by Seller at the time such claim is made.”
		

		
			 
		

		
			5.   The first sentence of Section 8.6 of the Agreement (Set-Off) is hereby deleted and replaced in its entirety with the following:
		

		
			 
		

		
			“Purchaser shall have the right to withhold and deduct any Losses for which any Purchaser Indemnified Party is entitled to indemnification under this Agreement after application in full of the provisions of Section 8.4 (subject to Section 8.5 hereof) from any payments, including for the avoidance of doubt any Share Payment and any Milestone Payment, that may be owed to Seller pursuant to Section 1.5 (subsections (a) through (e) inclusive) hereof (a “Set Off”).”
		

		
			 
		

		
			6.   The definition of “Purchase Price” in ANNEX A to the Agreement (DEFINITIONS) is hereby deleted and replaced in its entirety with the following:
		

		
			 
		

		
			““Purchase Price” means, collectively, the Closing Consideration, the Cash Payments, the Milestone Payments and the Share Payment.”
		

		
			 
		

		
			7.   Notwithstanding anything to the contrary in this Amendment, in the event the closing of the Merger Transaction does not occur on or before June 1, 2019, or such other date as the Parties may agree upon in writing, this Amendment shall be null and void and the Agreement will remain in full force and effect without amendment; provided, however, that the $1,000,000 payment made by Purchaser to Seller on January 31, 2019 pursuant to Paragraph 2 of this Amendment will constitute the “First Anniversary Payment” under the Agreement, and Purchaser’s obligation to make the First Anniversary Payment pursuant to Section 1.5(a)(ii) of the Agreement shall be satisfied in full as a result of such payment under this Amendment.
		

		
			 
		

		
			8.   Each Party hereby represents and warrants to the other that it has the corporate power and authority to enter into this Amendment and this Amendment constitutes a legal, valid and binding obligation, enforceable against such Party in accordance with its terms.
		

		
			 
		

		
			9.   Subject to Paragraph 7 of this Amendment, this Amendment shall be effective upon the Amendment Effective Date set forth above.
		

		
			 
		

		
			10. Except as expressly modified in this Amendment, all of the terms and conditions of the Agreement shall remain in full force and effect.  To the extent that there are any inconsistencies
		

		
			
		

		
			

		 

		

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			between this Amendment and the Agreement, the terms of this Amendment shall govern and shall supersede the Agreement.
		

		
			 
		

		
			11. This Amendment may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Each Party may execute this Amendment by facsimile transmission or in AdobeTM Portable Document Format (PDF) sent by electronic mail.  Facsimile or PDF signatures of authorized signatories of the Parties will be deemed to be original signatures, will be valid and binding upon the Parties, and, upon delivery, will constitute due execution of this Amendment.
		

		
			 
		

		
			[Signature Page Follows]
		

		
			 
		

		
			
		

		
			

		 

		

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			IN WITNESS WHEREOF, the Parties have caused this Amendment to be executed by their duly authorized representatives as of the Amendment Effective Date set forth above.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						PURCHASER:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						C3J Therapeutics, Inc.

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Todd R. Patrick

					
					
						 

				
	
					
						 

					
					
						Name: Todd R. Patrick

					
					
						 

				
	
					
						 

					
					
						Title: President & CEO

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						SELLER:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Synthetic Genomics, Inc.

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Oliver Fetzer

					
					
						 

				
	
					
						 

					
					
						Name: Oliver Fetzer

					
					
						 

				
	
					
						 

					
					
						Title: Chief Executive Officer

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Synthetic Genomics Vaccines, Inc.

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Oliver Fetzer

					
					
						 

				
	
					
						 

					
					
						Name: Oliver Fetzer

					
					
						 

				
	
					
						 

					
					
						Title: Chief Executive Officer

					
					
						 

				
	
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			 
		

		 

		

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