Document:

Exhibit 10.9

 

EXECUTION COPY

 

[*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

 

PURCHASE AND SALE AGREEMENT

 

DATED AS OF FEBRUARY 2, 2017

 

BETWEEN

 

PORTOLA PHARMACEUTICALS, INC.,

 

AS SELLER,

 

AND

 

THE ENTITIES MANAGED BY

HEALTHCARE ROYALTY MANAGEMENT, LLC IDENTIFIED
HEREIN,

 

COLLECTIVELY AS PURCHASER

 

 

     

     

    

 

Table of Contents

 

	 	 	 	Page
	ARTICLE I	DEFINED TERMS AND RULES OF CONSTRUCTION	1
	 	Section 1.1	Defined Terms	1
	 	Section 1.2	Rules of Construction	14
	ARTICLE II	PURCHASE AND SALE OF THE PURCHASED RECEIVABLES	15
	 	Section 2.1	Purchase and Sale	15
	 	Section 2.2	Purchase Amount	16
	 	Section 2.3	No Assumed Obligations	16
	 	Section 2.4	Excluded Assets	16
	ARTICLE III	PAYMENTS FOR PURCHASED RECEIVABLES	16
	 	Section 3.1	Payments on Account of the Purchased Receivables	16
	 	Section 3.2	Payment Accounts	17
	 	Section 3.3	Payment Mechanics and Disbursement Account Management	18
	 	Section 3.4	Mode of Payment/Currency Exchange	20
	 	Section 3.5	Included Product Payment Reports and Records Retention	20
	 	Section 3.6	Audits	20
	 	Section 3.7	Transaction Expenses	21
	ARTICLE IV	REPRESENTATIONS AND WARRANTIES OF THE SELLER	21
	 	Section 4.1	Organization	21
	 	Section 4.2	No Conflicts	22
	 	Section 4.3	Authorization	22
	 	Section 4.4	Ownership	22
	 	Section 4.5	Governmental and Third Party Authorizations	23
	 	Section 4.6	No Litigation	23
	 	Section 4.7	Solvency	23
	 	Section 4.8	Tax Matters	24
	 	Section 4.9	No Brokers’ Fees	24

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

     

     

    

 

Table of Contents

(cont’d)

 

	 	 	 	Page
	 	Section 4.10	Compliance with Laws	24
	 	Section 4.11	Intellectual Property Matters	24
	 	Section 4.12	Margin Stock	25
	 	Section 4.13	Regulatory Compliance	25
	 	Section 4.14	Material Contracts	26
	 	Section 4.15	Bankruptcy	26
	 	Section 4.16	Office Locations; Names	27
	ARTICLE V	REPRESENTATIONS AND WARRANTIES OF THE PURCHASER	27
	 	Section 5.1	Organization	27
	 	Section 5.2	No Conflicts	27
	 	Section 5.3	Authorization	27
	 	Section 5.4	Governmental and Third Party Authorizations	28
	 	Section 5.5	No Litigation	28
	 	Section 5.6	Access to Information	28
	 	Section 5.7	No Brokers’ Fees	28
	 	Section 5.8	Funds Available	28
	ARTICLE VI	COVENANTS	 	29
	 	Section 6.1	True Sale	29
	 	Section 6.2	Precautionary Security Interest in Purchased Receivables	29
	 	Section 6.3	Update Meetings	30
	 	Section 6.4	Notices	31
	 	Section 6.5	Public Announcement	32
	 	Section 6.6	Further Assurances	32
	 	Section 6.7	Patent Rights	34
	 	Section 6.8	Tax Matters	34
	 	Section 6.9	Existence	35

 

[*] = Certain confidential information contained in this document,
marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of
the Securities Exchange Act of 1934, as amended.

 

    ii

     

    

 

Table of Contents

(cont’d)

 

	 	 	 	Page
	 	Section 6.10	Commercialization of the Included Product	35
	 	Section 6.11	Material Contracts	35
	 	Section 6.12	Adverse Effect	36
	ARTICLE VII	THE CLOSING	 	36
	 	Section 7.1	Closing	36
	 	Section 7.2	Conditions to Subsequent Closing	36
	 	Section 7.3	Closing Deliverables of the Seller	37
	 	Section 7.4	Closing Deliverables of the Purchaser	38
	ARTICLE VIII	CONFIDENTIALITY	38
	 	Section 8.1	Confidentiality; Permitted Use	38
	 	Section 8.2	Exceptions	39
	 	Section 8.3	Permitted Disclosures	39
	 	Section 8.4	Return of Confidential Information	39
	ARTICLE IX	INDEMNIFICATION	40
	 	Section 9.1	Indemnification by the Seller	40
	 	Section 9.2	Indemnification by the Purchaser	40
	 	Section 9.3	Procedures	41
	 	Section 9.4	Other Claims	42
	 	Section 9.5	Exclusive Remedy	42
	 	Section 9.6	Limitations	43
	ARTICLE X	MISCELLANEOUS	 	43
	 	Section 10.1	Survival	43
	 	Section 10.2	Specific Performance	43
	 	Section 10.3	Notices	44
	 	Section 10.4	Successors and Assigns	45
	 	Section 10.5	Independent Nature of Relationship	46

 

[*] = Certain confidential information contained in this document,
marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of
the Securities Exchange Act of 1934, as amended.

 

    iii

     

    

 

Table of Contents

(cont’d)

 

	 	 		Page
	 	Section 10.6	Entire
    Agreement	46
	 	 	 	 
	 	Section 10.7	Governing
    Law	46
	 	 	 	 
	 	Section 10.8	Waiver
    of Jury Trial	47
	 	 	 	 
	 	Section 10.9	Severability	47
	 	 	 	 
	 	Section 10.10	Counterparts	47
	 	 	 	 
	 	Section 10.11	Amendments;
    No Waivers	47
	 	 	 	 
	 	Section 10.12	No
    Third Party Rights	48
	 	 	 	 
	 	Section 10.13	Table
    of Contents and Headings	48

 

	Schedule 1.1	Knowledge Persons
	Schedule 4.11	Patent Rights
	Schedule 4.14(a)	Material Contracts
	Exhibit A	Form of Bill of Sale
	Exhibit B	Form of Press Release
	Exhibit C	Basic Intercreditor Terms
	Exhibit D	Second Closing Condition

	Annex I	Purchaser Entities

 

[*] = Certain confidential information contained in this document,
marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of
the Securities Exchange Act of 1934, as amended.

 

    iv

     

    

 

PURCHASE AND SALE AGREEMENT

 

This PURCHASE AND SALE
AGREEMENT (this “Agreement”) dated as of February 2, 2017 is between PORTOLA PHARMACEUTICALS, INC.,
a Delaware corporation (the “Seller”), and the entities managed by HealthCare Royalty Management, LLC set forth on
Annex I (collectively, the “Purchaser”). Each of Seller and Purchaser are referred to in this Agreement as a “Party”
and collectively as the “Parties”.

 

W I T N E S S E T H:

 

WHEREAS, the Seller
is developing the product andexanet alfa for the purposes of sale in the Territory (including in the United States under the trademark
AndexXaTM) for use in reversing anticoagulation caused by Factor Xa inhibitors; and

 

WHEREAS, the Seller
desires to sell, assign, transfer, convey and grant to the Purchaser, and the Purchaser desires to purchase, acquire and accept from the
Seller, the Purchased Receivables described herein, upon and subject to the terms and conditions set forth in this Agreement;

 

NOW, THEREFORE, in
consideration of the premises and the mutual agreements, representations and warranties set forth herein and of other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto covenant and agree as follows:

 

Article I

DEFINED TERMS AND RULES OF CONSTRUCTION

 

Section 1.1           Defined
Terms. The following terms, as used herein, shall have the following respective meanings:

 

“Additional Collateral”
means all of Seller’s right, title and interest in, to and under, the following property, whether now owned or hereafter acquired:

 

(a)            the
Collection Account and the Disbursement Account;

 

(b)            all
rights (contractual and otherwise and whether constituting accounts, contract rights, financial assets, cash, investment property or general
intangibles) arising under, connected with or in any way related to the Collection Account and the Disbursement Account; and

 

(c)            all
proceeds resulting from the assets described in the foregoing clauses (a) and (b).

 

“Affiliate”
means, with respect to any Person, any other Person that, directly or indirectly, controls, is controlled by or is under common control
with such Person. For purposes of this definition, “control” of a Person means the possession, directly or indirectly,
of the power

 

[*] = Certain confidential information contained in this document,
marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of
the Securities Exchange Act of 1934, as amended.

 

    1

     

    

 

to direct or cause the direction of the management
and policies of such Person, whether through the ownership of securities entitled to elect the board of directors or management board,
by contract or otherwise, and the terms “controlled” and “controlling” have meanings correlative
to the foregoing.

 

“Annual Net Sales”
means, with respect to any Calendar Year, the aggregate amount of worldwide Net Sales in the Territory for that Calendar Year.

 

“Applicable Law”
means, with respect to any Person, all laws, rules, regulations and orders of Governmental Authorities applicable to such Person or any
of its properties or assets.

 

“Applicable Tiered
Percentage” means the percentage based on the applicable portion of Annual Net Sales and the Purchase Amount, as set forth in
the chart below, and calculated as follows: (a) with respect to a Purchase Amount pursuant to Section 2.2(a) only, the
percentage set forth in the applicable row of column 1, or (b) with respect to a Purchase Amount pursuant to both Section 2.2(a) and
Section 2.2(b), the sum of (i) the percentage set forth in the applicable row of column 1, plus (ii) the percentage set
forth in the applicable row of column 2:

 

	Royalty Tiers based on Annual Net Sales	1. If the Purchase Amount is Pursuant to 

Section 2.2(a) Only	2. If the Purchase Amount is Pursuant to Section 2.2 

(b), Add to Column 1:
	 	 	 
	A.     Portion of Annual Net Sales less than or equal to $150,000,000	2.0%	5.85%
	B.     Portion of Annual Net Sales exceeding $150,000,000 and less than or equal to $[*]	2.0%	[*]%
	C.     Portion of Annual Net Sales in excess of $[*]	2.0%	1.58%

 

provided that as illustrated
in the financial analysis separately provided and agreed to by the Parties, (a) if the Approval Condition has not been satisfied
before [*] then each of the percentages set forth in the applicable rows of column 1 shall be increased by [*]% for each Calendar Quarter,
starting with [*], until [*] and, in addition, (b) if the Manufacturing Approval Condition has not been satisfied before October 1,
2018, then each of the percentages set forth in the applicable row of column 1 shall be increased by [*]% for each Calendar Quarter starting
with [*], until [*].

 

“Approval Conditions”
means either (a) the satisfaction of the condition set forth on Exhibit D, or (b) the receipt from the EMA of Marketing
Authorization for the Included Product.

 

[*] = Certain confidential information contained in this document,
marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of
the Securities Exchange Act of 1934, as amended.

 

    2

     

    

 

“Bankruptcy Event”
means the occurrence of any of the following in respect of a Person: (a) such Person shall generally not, shall be unable to, or
an admission in writing by such Person of its inability to, pay its debts as they come due or a general assignment by such Person for
the benefit of creditors; (b) the filing of any petition or answer by such Person seeking to adjudicate itself as bankrupt or insolvent,
or seeking for itself any liquidation, winding-up, reorganization, arrangement, adjustment, protection, relief or composition of such
Person or its debts under any Applicable Law relating to bankruptcy, insolvency, receivership, winding-up, liquidation, reorganization,
examination, relief of debtors or other similar Applicable Law now or hereafter in effect, or seeking, consenting to or acquiescing in
the entry of an order for relief in any case under any such Applicable Law, or the appointment of or taking possession by a receiver,
trustee, custodian, liquidator, examiner, assignee, sequestrator or other similar official for such Person or for any substantial part
of its property; (c) corporate or other entity action taken by such Person to authorize any of the actions set forth in clause (a) or
clause (b) above; or (d) without the consent or acquiescence of such Person, the commencement of an action seeking entry of
an order for relief or approval of a petition for relief or reorganization or any other petition seeking any reorganization, arrangement,
composition, readjustment, liquidation, dissolution or other similar relief under any present or future bankruptcy, insolvency or similar
Applicable Law, or the filing of any such petition against such Person, or, without the consent or acquiescence of such Person, the commencement
of an action seeking entry of an order appointing a trustee, custodian, receiver or liquidator of such Person or of all or any substantial
part of the property of such Person, in each case where such petition or order shall remain unstayed or shall not have been stayed or
dismissed within 90 days from entry thereof.

 

“Bill of Sale”
means that certain bill of sale dated as of the Closing Date executed by the Seller and the Purchaser substantially in the form of Exhibit A.

 

“Business
Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or
required by Applicable Law to remain closed.

 

“Calendar Quarter”
means, for the first calendar quarter, the period beginning on the Closing Date and ending on the last day of the calendar quarter in
which the Closing Date falls, and thereafter each successive period of three (3) consecutive calendar months ending on March 31,
June 30, September 30 or December 31.

 

“Calendar Year”
means (a) for the first such Calendar Year the period beginning on First Commercial Sale of the Included Product and ending on December 31
of the year in which such First Commercial Sale occurs, (b) for each year of the Term thereafter, each successive period beginning
on January 1 and ending twelve (12) consecutive calendar months later on December 31, and (c) for the last year of the
Term, the period beginning on January 1 of the year in which this Agreement expires or terminates and ending on the effective date
of expiration or termination of this Agreement.

 

“Capital Securities”
means, with respect to any Person, all shares, interests, participations or other equivalents (however designated, whether voting or
non-voting) of such Person’s capital, whether now outstanding or issued after the Closing Date, including common shares, ordinary
shares, preferred shares, membership interests or share capital in a limited liability company or other Person, limited or general partnership
interests in a partnership, beneficial interests in trusts or any other equivalent of such ownership interest or any options, warrants
and other rights to acquire such shares or interests, including rights to allocations and distributions, dividends, redemption payments
and liquidation payments.

 

[*] = Certain confidential information contained in this document, marked by brackets, has been omitted
and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934,
as amended.

 

    3

     

    

 

“CDA” means the Confidentiality Agreement
dated as of [*] by and between HealthCare Royalty Management, LLC and the Seller.

 

“Closing” has the meaning set forth in
Section 7.1.

 

“Closing Date” means the Initial Closing
Date or Subsequent Closing Date, as applicable.

 

“Code” means the U.S. Internal Revenue
Code of 1986, as amended, and the regulations thereunder.

 

“Collateral”
means the Additional Collateral and, in the event of a Recharacterization, the Purchased Receivables and the proceeds thereof.

 

“Collection Account”
means the deposit account established and maintained at any Depositary Bank solely for the purpose of receiving remittance of proceeds
of accounts and royalty receivables of the Seller arising from sales of the Included Product and disbursement thereof as provided herein,
and any successor Collection Account entered into in accordance with Section 3.2(c).

 

“Combination Product”
means an Included Product that is comprised of or contains the Compound in addition to one or more additional active ingredients (whether
co-formulated or co-packaged) that are neither the Compound nor generic or other non-proprietary compositions of matter. Pharmaceutical
dosage form vehicles, adjuvants and excipients shall be deemed not to be “active ingredients”.

 

“Commercialization”
means, on a country-by-country basis, any and all activities with respect to the manufacture, distribution, marketing, detailing, promotion,
selling and securing of reimbursement of the Included Product in a country after Marketing Authorization for the Included Product in that
country has been obtained, which shall include, as applicable, post-marketing approval studies, post-launch marketing, promoting, detailing,
marketing research, distributing, customer service, selling the Included Product, importing, exporting or transporting the Included Product
for sale, and regulatory compliance with respect to the foregoing. When used as a verb, “Commercialize” means to engage
in Commercialization.

 

“Commercially Reasonable
and Diligent Efforts” means, with respect to the efforts to be expended with respect to any Included Product in any country
or regulatory jurisdiction, such efforts and resources normally used by a reasonably prudent company of a size and product portfolio
comparable to Seller and its Subsidiaries in the biopharmaceutical industry, taken as a whole, in such applicable country or jurisdiction,
with respect to a pharmaceutical product for which the same regulatory approval is held as that of the Included Product, which pharmaceutical
product is owned or licensed in the same manner as such Included Product, which pharmaceutical product is at a similar stage in its product
life and of similar market and profit potential as such Included Product, taking into account efficacy, safety, approved labeling, the
competitiveness of alternative products in such country or jurisdiction, pricing/reimbursement for the pharmaceutical product in such
country or jurisdiction relative to other countries and jurisdictions, the intellectual property and regulatory protection of the pharmaceutical
product in such country or jurisdiction, the regulatory structure in such country or jurisdiction and the profitability of the pharmaceutical
product in such country or jurisdiction, all as measured by the facts and circumstances in existence at the time such efforts are due.

 

[*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

 

    4

     

    

 

“Competitor” means any person engaged
in the development, sale or marketing of a product that is [*]. “Compound” means andexanet alfa, a modified human fXa
protein [*].

 

“Confidential Information”
means any and all technical and non-technical non-public information provided by either Party to the other (including, without limitation,
the reports provided pursuant to Section 3.5 and any notices or other information provided pursuant to Section 6.4), either
directly or indirectly, whether in graphic, written, electronic or oral form, and marked or identified at the time of disclosure as confidential,
or which by its context would reasonably be deemed to be confidential, including without limitation information relating to a Party’s
technology, products and services, and any business, financial or customer information relating to a Party. The existence and terms of
this Agreement shall be deemed the Confidential Information of both Parties. For clarity, this Agreement shall supersede the CDA and the
CDA shall cease to be of any force and effect following the execution of this Agreement; provided, however, that all information falling
within the definition of “Confidential Information” set forth in the CDA shall also be deemed Confidential Information disclosed
pursuant to this Agreement, and the use and disclosure of such Confidential Information following the date of this Agreement shall be
subject to the provisions of Article VIII.

 

“Deposit Agreement”
means the deposit account control agreement entered into by the Depositary Bank, the Purchaser Representative and the Seller (and any
Permitted Debt Creditors, if applicable), which shall be in form and substance reasonably acceptable to the Purchaser Representative and
the Seller, as amended, supplemented or otherwise modified from time to time and any replacements thereof.

 

“Depositary Bank”
means [*] or such other bank or financial institution approved by each of the Purchaser and Seller, including any successor Depositary
Bank appointed pursuant to Section 3.2(c).

 

“Disbursement Account”
means the deposit account established and maintained at any Depositary Bank into which funds from the Collection Account are swept in
accordance with instructions provided by the Seller and approved by the Purchaser, and any successor Disbursement Account entered into
in accordance with Section 3.2(c).

 

[*] = Certain confidential information contained in this document,
marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 

 

    5

     

    

 

“Disputes” has the meaning set forth in
Section 4.11(e).

 

“Dollar” or the sign “$” means
United States dollars.

 

“EMA” means the European Medicines Agency
or any successor agency or authority thereto.

 

“Excluded Liabilities and Obligations”
has the meaning set forth in Section 2.3.

 

“Exploit”
shall mean, with respect to any Included Product, the development, process of seeking regulatory approval, manufacture, use, sale, offer
for sale (including marketing and promotion), importation, distribution or other Commercialization; and “Exploitation”
shall have the correlative meaning.

 

“FDA” means the U.S. Food and Drug Administration
or any successor agency or authority thereto.

 

“First Commercial
Sale” means, with respect to the Included Product in the Territory, the first arm’s-length sale, transfer or disposition
for value to a Third Party of the Included Product in any country in the Territory after Marketing Authorization for the Included Product
has been obtained in such country; provided, that, the following shall not constitute a First Commercial Sale: (a) any sale to an
Affiliate or Licensee unless the Affiliate or Licensee is the ultimate end user of the Included Product or (b) any use of the Included
Product in clinical trials, pre-clinical studies or other research or development activities, or disposal or transfer of the Included
Product for a bona fide charitable purpose.

 

“GAAP”
means generally accepted accounting principles in effect as the standard financial accounting guidelines in the United States from time
to time (consistently applied and on a basis consistent with the accounting policies, practices, procedures, valuation methods and principles
used in preparing the Seller’s financial statements), and any successor thereto. For clarity, to the extent a transition in generally
accepted accounting principles would substantively change the recognition of revenue with respect to Net Sales (as currently defined)
and its calculation as set forth this Agreement, then the Parties shall meet and discuss in good faith an adjustment payment and amendment
to the definitions hereunder to address the changes in accounting principles affecting the calculation of the Purchased Receivables.

 

“Governmental Authority”
means the government of the United States, any other nation or any political subdivision thereof, whether state or local, and any agency,
authority (including supranational authority), commission, instrumentality, regulatory body, court, central bank or other Person exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government, including each
Patent Office, the FDA and any other government authority in any jurisdiction.

 

[*] = Certain confidential information contained in this document,
marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of
the Securities Exchange Act of 1934, as amended.

 

    6 

    

    

 

“Government Receivable”
means Medicare, Medicaid and other accounts receivables under which any Governmental Authority of or within the United States is the account
debtor and Applicable Law requires title to such accounts receivables to remain with the Seller.

 

“Included Product”
means any pharmaceutical or biological composition containing the Compound, including the product currently trademarked in the United
States as AndexXaTM. For clarity, references in this Agreement to “an” Included Product or to “the” Included Product
refer to any Included Product.

 

“Included Product
Payment Amount” means, for each Calendar Quarter, an amount equal to the Applicable Tiered Percentage multiplied by the Quarterly
Net Sales for such Calendar Quarter. [*] Notwithstanding the foregoing, on a country-by-country basis, if, in any given Calendar Quarter,
(a) there is no Valid Claim in such country (a “Non-Patent Right Country”) where Net Sales are being made by a
Licensee (and not by Portola or any Affiliate), and (b) the Licensee Net Sales Percentage applicable to the Quarterly Net Sales of
the Included Product in such Non-Patent Right Country is less than the Applicable Tiered Percentage on Quarterly Net Sales in countries
in which a Valid Claim exists, then the Included Product Payment Amount payable on Quarterly Net Sales for such Non-Patent Right Country
shall be an amount equal to the Licensee Net Sales Percentage multiplied by the Quarterly Net Sales in such Non-Patent Right Country,
solely during such Calendar Quarters in which the foregoing subsection (b) applies. [*]

 

“Indebtedness”
of any Person means (a) any obligation of such Person for borrowed money, (b) any obligation of such Person evidenced by a bond,
debenture, note or other similar instrument, (c) any obligation of such Person to pay the deferred purchase price of property or
services (except (i) trade accounts payable that arise in the ordinary course of business, (ii) payroll liabilities and deferred
compensation, and (iii) any purchase price adjustment, royalty, earnout, milestone payments, contingent payment or deferred payment
of a similar nature incurred in connection with any license, lease, contract research and clinic trial arrangements or acquisition), (d) any
obligation of such Person as lessee under a capital lease (under GAAP as in effect on the date hereof), (e) any obligation of such
Person to purchase securities or other property that arises out of or in connection with the sale of the same or substantially similar
securities or property, (f) any non-contingent obligation of such Person to reimburse any other Person in respect of amounts paid
under a letter of credit or other guaranty issued by such other Person, (g) any Indebtedness of others secured by a Lien on any asset
of such Person and (i) any Indebtedness of others guaranteed by such Person; provided that intercompany loans among the Seller and
its Affiliates shall not constitute Indebtedness.

 

“Initial Closing Date” has the meaning
set forth in Section 7.1.

 

“Instruction to Payors”
means the written instruction delivered in accordance with Section 3.2(a) to Licensees and other account debtors in respect
of sales and other dispositions of the Included Product.

 

“Key Commercial Contract” has the meaning
set forth in Section 6.11.

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    7 

    

    

 

“Key Commercial Contract Counterparty”
shall mean a counterparty to any Key Commercial Contract.

 

“Knowledge”
means, with respect to the Seller, (a) for purposes of Article IV, the knowledge, after due inquiry, as of the date of this
Agreement, of any of the officers of the Seller identified on Schedule 1.1, and (b) for all other purposes of this Agreement,
the knowledge, after due inquiry, as of a specified time, of any of the officers of the Seller identified on Schedule 1.1 or any
successor to any such officer holding the same or substantially similar officer position at such time.

 

“Licensee”
means, with respect to the Included Product, a Third Party to whom the Seller or any Affiliate of the Seller has granted a license or
sublicense (or any Third Party to whom any such Third Party has granted a license or sublicense) to develop, have developed, make, have
made, seek Regulatory Approvals for, distribute, use, have used, import, sell, offer to sell, have sold or otherwise Commercialize such
Included Product. As used in this Agreement “Licensee” includes any Third Party to whom the Seller or any Affiliate
of the Seller has granted the right (or any Third Party to whom any such Third Party has granted the right) to distribute the Included
Product provided that the applicable Third Party that has been granted such right has the right to conduct, or the responsibility for,
active sales force promotion of such Included Product anywhere within its distribution territory.

 

“Licensee Net Sales
Percentage” means, with respect to a given Licensee, the portion (expressed as a percentage) of Net Sales of Included Product
by such Licensee (or its Affiliates or sublicensees) payable to Seller or its Affiliates by Licensee by way of royalty payments under
the terms of the license or sublicense granting rights in the Included Product to such Licensee.

 

“Lien”
means any security interest, mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or otherwise),
charge against or interest in property or other priority or preferential arrangement of any kind or nature whatsoever, in each case to
secure payment of a debt or performance of an obligation, including any conditional sale or any sale with recourse.

 

“Loss”
means any loss, assessment, award, cause of action, claim, charge, cost, expense (including reasonable expenses of investigation and reasonable
attorneys’ fees), fine, judgment, liability, obligation or penalty; provided, however that Loss shall not include
any lost profits or revenue or consequential, punitive, special or incidental damages except (a) the amount of any Purchased Receivables
that are not received by Purchaser due to failure by any Third Party to make payment thereof (other than resulting from any matter described
in Section 9.1 (a), (b), (c) or (d)) and (b) any lost profits or revenue or consequential, punitive, special or incidental
damages awarded or payable by Purchaser to a Third Party in connection with a claim or action for which Seller is required to indemnify
Purchaser pursuant to Section 9.1.

 

“Manufacturing Approval
Condition” means FDA approval of the Included Product developed pursuant to the agreement identified as number 2 on Schedule
4.14(a).

 

[*] = Certain confidential information contained in this document,
marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of
the Securities Exchange Act of 1934, as amended.

 

    8 

    

    

 

“Marketing Authorization”
means, with respect to the Included Product, the Regulatory Approval required by Applicable Law to sell the Included Product in a country
or region, including, to the extent required by Applicable Law for the sale of the Included Product, all pricing approvals and government
reimbursement approvals.

 

“Material Adverse
Effect” means any event, circumstance or change that would result, individually or in the aggregate, in a material adverse effect,
in any respect, on [*].

 

“Material Contract” has the meaning set
forth in Section 4.14(a).

 

“Material Contract Counterparty” shall
mean a counterparty to any Material Contract.

 

“Net Sales”
means, with respect to the Included Product the gross amount billed or invoiced or otherwise recognized as revenue by the Seller in accordance
with GAAP in respect of sales or other dispositions of the Included Product in the Territory by the Seller, its Affiliates or Licensees
(or any permitted assignee or transferee hereunder) (but not including sales to an Affiliate or Licensee unless the Affiliate or Licensee
is the ultimate end user of the Included Product), less the following deductions to the extent included in the gross amount billed or
invoiced in respect of sales or other dispositions of the Included Product or otherwise recognized as revenue by the Seller in accordance
with GAAP: (a) credits or allowances actually granted for damaged products, returns or rejections of Included Products, or for retroactive
price reductions and billing errors; (b) normal and customary trade and quantity discounts, allowances and credits (including chargebacks);
(c) excise taxes, sales taxes, duties, VAT taxes and other taxes to the extent imposed upon and paid directly with respect to the
sales price, and a pro rata portion of pharmaceutical excise taxes imposed on sales of pharmaceutical products as a whole and not specific
to Included Products (such as those imposed by the U.S. Patient Protection and Affordable Care Act of 2010, Pub. L. No. 111-148,
as amended) (and excluding in each case national or local taxes based on income); (d) freight, postage, shipping and shipping insurance
expense and other transportation charges directly related to the distribution of the Included Product; (e) distribution services
agreement fees and other similar amounts allowed or paid to Third Party distributors, including specialty distributors of the Included
Product; (f) rebates made with respect to sales paid for by any Governmental Authority, their agencies and purchasers and reimbursers,
managed health care organizations, or to trade customers; (g) the portion of administrative fees paid during the relevant time period
to group purchasing organizations or pharmaceutical benefit managers relating to the Included Product; (h) any invoiced amounts that
are not collected by the Seller, its Affiliates or Licensees, including bad debts; and (i) any customary or similar payments to the
foregoing (a) – (h) that apply to the sale or disposition of pharmaceutical products.

 

In the event that the Included
Product is sold as part of a Combination Product, then Net Sales for such Combination Product, for the purposes of determining the applicable
Included Product Payment Amounts and Purchased Receivables, respectively, to be paid, shall be calculated by multiplying the Net Sales
of the Combination Product by the fraction: A divided by (A+B), in which A is the average selling price of the Included Product sold in
substantial quantities comprising the Compound as the sole therapeutically active ingredient in the applicable country, and B is the average selling
price of any product that is sold separately in substantial quantities comprising the other therapeutically active ingredients in such
country, in each case during the accounting period in which the sales of the Combination Product were made, or if no sales of such Included
Product or product comprising the other therapeutically active ingredients occurred during such period, then such average selling prices
as sold during the most recent accounting period in which such sales did occur in such country.

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    9 

    

    

 

If the Included Product contained
in such Combination Product is not sold separately in finished form in such country, the Seller and the Purchaser shall determine Net
Sales for such Included Product by mutual agreement based on the relative contribution of such Included Product and each such other active
ingredient in such Combination Product in accordance with the above formula, and shall take into account in good faith any applicable
allocations and calculations that may have been made for the same period in other countries.

 

“Patent”
means any pending (including pursuant to a patent application) or issued patent or continuation, continuation in part, division, extension
or reissue thereof, in any country in the world.

 

“Patent Office”
means the applicable patent office, including the United States Patent and Trademark Office and any comparable foreign patent office,
for any Patents.

 

“Patent Rights” means any Patents that
are owned or controlled by the Seller that claim or cover the Included Product.

 

“Payment Term”
means the time period commencing on the date of the First Commercial Sale of the Included Product anywhere in any country in the Territory
and expiring on the date upon which the Purchaser has received cash payments in respect of the Purchased Receivables totaling, in the
aggregate, one hundred ninety-five percent (195%) of the Purchase Amount, or to the extent that Purchaser’s rights with respect
to the Subsequent Closing are terminated pursuant to Section 7.2(b), [*].

 

“Permitted Debt”
means all Indebtedness and other obligations in respect of: (a) any Permitted Debt Facility, (b) any interest rate, foreign
exchange or other commodity swap or hedge instruments, (c) any agreement relating to, treasury, depositary and cash management services
(including, for the avoidance of doubt, credit cards, merchant cards, purchase cards and debit cards) or automated clearinghouse transfer
of funds, (d) any letters of credit, banker’s acceptances or similar credit transaction and (e) all obligations of other
Persons of the type referred to in clauses (a), (b), (c) or (d) for the payment of which the Seller or any of its Subsidiaries
is responsible or liable as a guarantor or surety.

 

“Permitted Debt Facility”
means one or more indentures, debt facilities or commercial paper facilities, providing for the issuance of notes, revolving credit loans,
term loans, receivables financing (including through the sale of receivables to lenders or to special purpose entities formed to borrow
from lenders against such receivables), letters of credit, banker’s acceptances and/or similar instruments, in each case, as amended,
supplemented, modified, extended, restructured, renewed, refinanced, restated, replaced or refunded in whole or in part from time to time.

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    10 

    

    

 

“Permitted Debt Creditors”
means the lenders, and any administrative agent, collateral agent, security agent or similar agent under any Permitted Debt Facility.

 

“Permitted Liens” means:

 

(a)           Liens
created in favor of the Purchaser pursuant to this Agreement;

 

(b)           Liens
incurred by the Purchaser;

 

(c)           inchoate
Liens for taxes not yet delinquent or Liens for taxes which are being contested in good faith and by appropriate proceedings and for which
adequate reserves have been established in accordance with GAAP;

 

(d)           Liens
in respect of property of the Seller imposed by Applicable Law which were incurred in the ordinary course of business and do not secure
Indebtedness for borrowed money, such as carriers’, warehousemen’s, distributors’, wholesalers’, materialmen’s
and mechanics’ liens and other similar Liens arising in the ordinary course of business and secure payment obligations not yet delinquent
and which are not in the aggregate in an amount materially in relation to the value of the Purchased Receivables;

 

(e)           banker’s
liens for collection or rights of set off or similar rights and remedies as to deposit accounts or other funds maintained with depositary
institutions; provided that such deposit accounts or funds are not established or deposited for the purpose of providing collateral for
any Indebtedness and are not subject to restrictions on access by the Seller in excess of those required by applicable banking regulations;
and

 

(f)            Liens
to secure Permitted Debt.

 

“Person”
means any natural person, firm, corporation, limited liability company, partnership, joint venture, association, joint-stock company,
trust, unincorporated organization, Governmental Authority or any other legal entity, including public bodies, whether acting in an individual,
fiduciary or other capacity.

 

“Purchase Amount” has the meaning set
forth in Section 2.2.

 

“Purchased Receivables”
means all of the Seller’s rights, title and interest in and to, free and clear of any and all Liens, that portion of account and
royalty receivables arising out of sales of the Included Product in the United States in an amount equal to the Included Product Payment
Amount for each Calendar Quarter during the Payment Term.

 

“Purchaser” has the meaning set forth
in the preamble.

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    11 

    

    

 

“Purchaser Representative” means HealthCare
Royalty Management, LLC, as collateral agent for the Purchasers.

 

“Purchaser Account” means such
account or accounts as designated by the Purchaser to the Seller in writing from time to time into which the funds held in the Disbursement
Account that are owned by the Purchaser pursuant to this Agreement are transferred in accordance with the terms of this Agreement.

 

“Purchaser Indemnified Party” has the
meaning set forth in Section 9.1.

 “Purpose” has the meaning set forth in Section 8.1.

 

“Quarterly Net Sales” means,
with respect to any Calendar Quarter, the aggregate amount of Net Sales in the Territory for that Calendar Quarter.

 

“Quarterly Payment Date” means
each [*] following the end of the first Calendar Quarter after First Commercial Sale (provided if any such date is not a Business Day,
the Quarterly Payment Date shall be the next succeeding Business Day).

 

“Regulatory Agency” means a
Governmental Authority with responsibility for the approval of the marketing and sale of pharmaceuticals or other regulation of pharmaceuticals
in any jurisdiction.

 

“Regulatory Approvals” means,
collectively, all regulatory approvals, registrations, certificates, authorizations, permits and supplements thereto, as well as associated
materials (including the product dossier) pursuant to which the Included Product may be marketed, sold and distributed in a jurisdiction,
issued by the appropriate Regulatory Agency.

 

“Recharacterization” has the meaning set
forth in Section 6.2.

 

“Recipient” has the meaning set forth
in Section 8.1.

 

“ROW” means all the countries in the world
outside of the United States.

 

“ROW First Sale Date” has the meaning
set forth in Section 3.3(c).

 

“ROW Fraction” has the meaning set forth
in Section 3.3(c).

 

“ROW Net Sales” has the meaning set forth
in Section 3.3(c).

 

“SEC” means the Securities and Exchange
Commission or any successor agency or authority thereto.

 

“Seller” has the meaning set forth in
the preamble.

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    12 

    

    

 

“Seller Account”
means such account as designated by the Seller to the Purchaser in writing from time to time into which the funds held in the Disbursement
Account that are owned by the Seller (which shall not include Purchased Receivables) pursuant to this Agreement are transferred in accordance
with the terms of this Agreement.

 

“Seller Indemnified Party” has the meaning
set forth in Section 9.2.

 

“Servicer”
means Integrated Commercialization Solutions, Inc. or such other supply chain logistical and financial services provider engaged
by the Seller and reasonably acceptable to the Purchaser.

 

“Set-off” means any set-off, off-set,
reduction or similar deduction.

 “Shortfall Amount” has the meaning set forth in Section 3.3(e)(ii).

 “Subsequent Closing Date” has the meaning set forth in Section 7.1.

 

“Subsidiary”
means with respect to any Person (a) any entity as to which such Person directly or indirectly owns, controls or holds with power
to vote fifty percent (50%) or more of the outstanding voting securities of such entity or (b) any entity as to which fifty percent
(50%) or more of its outstanding voting securities are directly or indirectly owned, controlled or held by such Person with power to vote
such securities. As used in this definition, the term “control” means the possession, directly or indirectly, of the power
to direct or cause the direction of the management and policies of a Person, whether through ownership of securities entitled to elect
the board of directors or management board, by contract or otherwise. [*]

 

“Sweep Period” has the meaning set forth
in Section 3.3(b).

 

“Sweep Percentage” has the meaning set
forth in Section 3.3(b) or 3.3(c), as applicable.

 

“Territory” means worldwide.

 

“Third Party”
means any Person other than (a) the Seller, (b) the Purchaser or (c) an Affiliate of either the Seller or the Purchaser
(as applicable).

 

“Third Party Claim”
means any claim, action, suit or proceeding by a Third Party, excluding any lender, officer, directors, employee or agent or other representative
of a Party, including any investigation by any Government Authority.

 

“Transaction Documents” means this Agreement,
the Deposit Agreement, the Bill of Sale and each Instruction to Payors.

 

“UCC” means
the Uniform Commercial Code as in effect from time to time in New York; provided, that, if, with respect to any financing statement
or by reason of any provisions of Applicable Law, the perfection or the effect of perfection or non-perfection of the backup security
interest or any portion thereof granted pursuant to Section 6.2 is governed by the Uniform Commercial Code as in effect in a jurisdiction
of the United States other than New York, then “UCC” means the Uniform Commercial Code as in effect from time to time
in such other jurisdiction for purposes of the provisions of this Agreement and any financing statement relating to such perfection or
effect of perfection or non-perfection.

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    13 

    

    

 

“U.S.”
or “United States” means the United States of America, its 50 states, each territory and possession thereof and the
District of Columbia.

 

“U.S. Net Sales Revenue” has the meaning
set forth in Section 3.3(a).

 

“Valid Claim”
means, solely with respect to Patents that claim or cover the manufacture, use, sale, offer for sale or import of the Included Product:
(a) an issued claim of any issued Patent owned or controlled by the Seller that has not expired, or been revoked, cancelled, become
abandoned or disclaimed, been declared invalid and/or unenforceable by a Patent Office or a decision or judgment of a court or other appropriate
body of competent jurisdiction; and (b) a claim included in a pending Patent application that is being prosecuted in good faith and
that has not been cancelled, withdrawn from consideration, finally determined to be unallowable by the Patent Office or applicable Governmental
Authority (from which no appeal is or can be taken), or abandoned or disclaimed; provided, however, that, if a claim of a Patent application
has been pending for more than [*] years, such claim will not constitute a Valid Claim for the purposes of this Agreement unless and until
a Patent issues with such claim; provided, further, that, for purposes of the foregoing proviso, any newly filed claim which claims essentially
the same subject matter as any earlier filed claim shall be considered pending for the same period of time as such earlier filed claim
has been pending.

 

Section 1.2              Rules of
Construction. Unless the context otherwise requires, in this Agreement:

 

(a)            An
accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP.

 

(b)            Words
of the masculine, feminine or neuter gender shall mean and include the correlative words of other genders.

 

(c)            The
definitions of terms shall apply equally to the singular and plural forms of the terms defined.

 

(d)            The
terms “include”, “including” and similar terms shall be construed as if followed by the phrase “without
limitation”.

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    14 

    

    

 

(e)            Unless
otherwise specified, references to an agreement or other document include references to such agreement or document as from time to time
amended, restated, reformed, supplemented or otherwise modified in accordance with the terms thereof (subject to any restrictions on such
amendments, restatements, reformations, supplements or modifications set forth herein or in any of the other Transaction Documents) and
include any annexes, exhibits and schedules attached thereto.

 

(f)             References
to any Applicable Law shall include such Applicable Law as from time to time in effect, including any amendment, modification, codification,
replacement or reenactment thereof or any substitution therefor.

 

(g)            References
to any Person shall be construed to include such Person’s successors and permitted assigns (subject to any restrictions on assignment,
transfer or delegation set forth herein or in any of the other Transaction Documents), and any reference to a Person in a particular capacity
excludes such Person in other capacities.

 

(h)            The
word “will” shall be construed to have the same meaning and effect as the word “shall”.

 

(i)             The
words “hereof”, “herein”, “hereunder” and similar terms when used in this Agreement shall refer to
this Agreement as a whole and not to any particular provision hereof, and Article, Section and Exhibit references herein are
references to Articles and Sections of, and Exhibits to, this Agreement unless otherwise specified.

 

(j)             In
the computation of a period of time from a specified date to a later specified date, the word “from” means “from and
including” and each of the words “to” and “until” means “to but excluding”.

 

(k)            Where
any payment is to be made, any funds are to be applied or any calculation is to be made under this Agreement on a day that is not a Business
Day, unless this Agreement otherwise provides, such payment shall be made, such funds shall be applied and such calculation shall be made
on the succeeding Business Day, and payments shall be adjusted accordingly.

 

Article II

PURCHASE AND SALE OF THE PURCHASED RECEIVABLES

 

Section 2.1              Purchase
and Sale. Subject to the terms and conditions of this Agreement, on the Initial Closing Date, the Seller hereby sells, assigns, transfers,
conveys and grants to the Purchaser, and the Purchaser hereby purchases, acquires and accepts from the Seller, all of the Seller’s
rights, title and interest in and to the Purchased Receivables, free and clear of any and all Liens (other than Liens of type described
in clauses (a) and (b) of the definition of Permitted Liens).

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    15 

    

    

 

Section 2.2              Purchase
Amount. In full consideration for the sale, contribution, assignment, transfer, conveyance and granting of the Purchased Receivables,
and subject to the terms and conditions set forth herein, the Purchaser shall pay (or cause to be paid) to the Seller, or the Seller’s
designee, the following:

 

(a)            on
the Initial Closing Date, the sum of fifty million dollars ($50,000,000), in immediately available funds by wire transfer to an account
designated in writing by the Seller to the Purchaser prior to the Initial Closing (the “Purchase Amount”); and

 

(b)            on
the Subsequent Closing Date, the sum of one hundred million dollars ($100,000,000), and the term “Purchase Amount” shall thereafter
be deemed amended to include the funds paid on the Subsequent Closing Date (i.e., an aggregate of one hundred fifty million dollars ($150,000,000)),
less the amount owed by the Seller pursuant to Section 3.7, in immediately available funds by wire transfer to an account designated
in writing by the Seller to the Purchaser prior to the Subsequent Closing Date, except to the extent the Purchaser has delivered notice
of termination of its obligations pursuant to Section 7.2(a) or the events set forth in Section 7.2(b) have occurred.

 

Section 2.3              No
Assumed Obligations. Notwithstanding any provision in this Agreement or any other writing to the contrary, the Purchaser is purchasing,
acquiring and accepting only the Purchased Receivables and is not assuming any liability or obligation of the Seller or any of the Seller’s
Affiliates of whatever nature, whether presently in existence or arising or asserted hereafter. All such liabilities and obligations shall
be retained by and remain liabilities and obligations of the Seller or the Seller’s Affiliates, as the case may be (the “Excluded
Liabilities and Obligations”).

 

Section 2.4              Excluded
Assets. The Purchaser does not, by purchase, acquisition or acceptance of the rights, title or interest granted hereunder or otherwise
pursuant to any of the Transaction Documents, purchase, acquire or accept any assets or contract rights of the Seller, or any other assets
of the Seller, other than the Purchased Receivables and, to the extent provided in the Transaction Documents, the Seller’s interest
in all amounts held in the Collection Account or the Disbursement Account. Subject to Section 6.10, the Seller has sole authority
and responsibility for the research, development, Commercialization and Exploitation of Included Product.

 

Article III

PAYMENTS FOR PURCHASED RECEIVABLES

 

Section 3.1              Payments
on Account of the Purchased Receivables.

 

(a)            In
consideration of the Purchaser paying the Purchase Amounts hereunder, and subject to, and as provided in, Sections 3.1(b), 3.2 and 3.3,
the Purchaser shall be entitled to the Purchased Receivables.

 

(b)            [*].

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    16 

    

    

 

(c)            Upon
the expiration or termination of the Payment Term, (i) the Seller shall have no further obligations to the Purchaser with respect
to the Purchased Receivables that include Included Product in the Territory, and Purchaser will not be entitled to any additional payments
in respect of Purchased Receivables and (ii) the Transaction Documents shall terminate. Immediately upon termination of this Agreement
pursuant to this Section 3.1(c), (A) all Liens on the Collateral granted to the Purchaser Representative pursuant to this Agreement
and the other Transaction Documents shall automatically be released, without the delivery of any instrument or performance of any act
by any Person, (B) the Seller shall be permitted, and is hereby authorized to terminate any financing statement which has been filed
pursuant to the Transaction Documents, and (C) the Purchaser and the Purchaser Representative shall execute and deliver to, or at
the direction of, the Seller, at the Seller’s sole cost and expense, all releases and other documents as the Seller shall reasonably
request to evidence any such release.

 

Section 3.2             Payment
Accounts.

 

(a)            Within
[*] days following the Initial Closing Date, the Seller shall establish with the Depositary Bank the Collection Account and the Disbursement
Account. Seller shall deliver instructions to all Licensees and account debtors (the “Instruction to Payors”) with
respect to proceeds arising from sales of Included Product by Seller in the United States (which instruction shall be in form and substance
reasonably satisfactory to the Purchaser and identify each Purchaser as having a right to a receive a portion of such amounts, and a copy
of which shall be delivered to the Purchaser promptly following delivery to such Licensee or account debtor) to remit all proceeds payable
to Seller in respect of accounts and royalty receivables arising out of sales of Included Product in the United States to the Collection
Account; provided that the proceeds of Governmental Receivables arising out of sales of Included Products in the United States may instead
be remitted to one or more other U.S.-based accounts, not subject to any liens (other than any banker’s lien under Applicable Law)
accounts so long as such accounts are subject to daily sweeps to the Collection Account. To the extent any such proceeds are paid directly
to the Seller, Seller shall remit to the Collection Account all such amounts within [*] Business Days of receipt of any such funds. All
proceeds and other funds deposited into the Collection Account shall be verified and reconciled by the Servicer and any verified and reconciled
funds shall be swept to the Disbursement Account. Funds in the Disbursement Account shall be disbursed in accordance with Section 3.3.

 

(b)            All
fees, expenses and charges owing to the Depositary Bank pursuant to the terms of the Deposit Agreement shall be [*], and shall be paid
to the Depositary Bank from the Disbursement Account prior to transfer of any amounts from the Disbursement Account to either the Purchaser
Account or the Seller Account, by debiting such fee, expense or charge from the Disbursement Account.

 

(c)            Notwithstanding
anything to the contrary herein, Seller shall have the right from time to time to select a replacement Depositary Bank and establish a
replacement Collection Account and a replacement Disbursement Account provided that such replacement Depositary Bank entered into a Deposit
Agreement with respect to such replacement accounts and Seller instructs as required pursuant to Section 3.2(a) to Licensees
and account debtors to make payments to such new accounts. For purposes
of this Agreement, any reference to the “Deposit Agreement,” “Collection Account” or “Disbursement Account”
shall refer to such replacement Deposit Agreement, Collection Account, Disbursement Account or Depositary Bank, as the context requires.

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    17 

    

    

 

Section 3.3              Payment
Mechanics and Disbursement Account Management.

 

(a)            Amounts
in the Disbursement Account may be disbursed to the Seller Account [*] (or such other longer period as the Parties may mutually agree
in writing) (such period, the “Sweep Period”) in an amount for any day equal to the amounts deposited on such day multiplied
by the Sweep Percentage (as defined below). The Seller shall provide the Depositary Bank notice no more frequently than [*] of such amount
to be disbursed to the Seller Account pursuant to this Section 3.3. On or prior to each Quarterly Payment Date, the Seller shall
deliver to the Purchaser a written reconciliation of the amount deposited in the Disbursement Account on each day of the applicable Calendar
Quarter and its calculation of the Sweep Percentage.

 

(b)            Prior
to the ROW First Sale Date, the “Sweep Percentage” shall be equal to the following:

 

[*]

 

No later than [*] prior to the expected date of
the First Commercial Sale of the Included Product outside the United States (the “ROW First Sale Date”), the Parties
shall mutually agree upon a good faith estimate of the ratio of Net Sales of Included Product outside the United States (the “ROW
Net Sales”) to Net Sales of Included Product within the United States (the “ROW Fraction”). If the Parties
are unable to agree upon an estimate of such ROW Fraction, then for the [*] following the ROW First Sale Date, the applicable ROW Fraction
shall be deemed to be the average of the ROW Fractions proposed in good faith by each Party, which proposal shall reflect such Party’s
commercially reasonable performance expectations for the Included Product during such period. For each Calendar Quarter thereafter, the
ROW Fraction shall be revised and shall equal the ratio of ROW Net Sales to Net Sales of Included Product within the United States for
the most recently preceding Calendar Quarter for which Net Sales have been reported. In addition, the ROW Fraction may be revised annually
pursuant to Section 3.3 (c). Following the ROW First Sale Date, during each Sweep Period, the “Sweep Percentage”
shall be calculated as follows:

 

[*]

 

(c)            It
is the intent of the Parties that the ROW Fraction should reasonably represent the actual distribution of Net Sales in the U.S and the
ROW. Accordingly, at least annually, the Parties agree to discuss in good faith whether adjustments should be made to the ROW Fraction
and the Sweep Percentage on the basis of actual Net Sales in the Territory during the [*].

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    18 

    

    

 

(d)               During
the Payment Term, no later than each Quarterly Payment Date, the Seller shall provide to Purchaser the reports relating to Net Sales of
Included Product and calculation of the Purchased Receivables required under Section 3.5.

 

(e)               During
the Payment Term, on each Quarterly Payment Date, and in the following order:

 

(i)            The
Seller shall instruct the Depositary Bank to disburse to the Purchaser Account an amount equal to the lesser of (A) the funds on
deposit in the Disbursement Account, and (B) the Purchased Receivables for the immediately preceding Calendar Quarter; and

 

(ii)           If
the amount disbursed to the Purchaser Account pursuant to Section 3.3(e)(i) above is less than the Purchased Receivables to
which Purchaser is entitled for the relevant Calendar Quarter, the Seller shall cause the Depositary Bank to disburse such amount pursuant
to Section 3.3(e)(i) until such disbursements equal the amount of such shortfall.

 

(iii)          The
Seller shall thereafter be entitled to instruct the Depositary Bank to disburse to the Seller Account an amount equal to the lesser of
(A) the funds on deposit in the Disbursement Account as of the end of the immediately preceding Calendar Quarter, and (B) an
amount equal to the amount deposited in the Disbursement Account during the immediately preceding Calendar Quarter, minus the amounts
disbursed for such Calendar Quarter pursuant to Section 3.3 (e)(i) and (ii) above, minus any amounts disbursed to the Seller
Account during such Calendar Quarter.

 

(f)                Upon
any disbursement of any funds from the Disbursement Account to the Seller Account, any security interest hereunder or under the other
Transaction Documents granted in the Seller’s’ right, title and interest in, to and under such funds shall be automatically
released and terminated.

 

(g)               All
Purchased Receivables required to be paid and not paid to the Purchaser within the time period set forth in Section 3.3(e), shall
bear interest at a rate of [*] from the due date until paid in full or, if less, the maximum interest rate permitted by Applicable Law.
Any such overdue payment shall, when made, be accompanied by, and credited first to, all interest so accrued.

 

(h)               If
Applicable Law requires withholding of income or other taxes imposed upon any payments made by the Seller to the Purchaser under this
Agreement, the Seller shall (i) make such withholding payments as may be required, (ii) subtract, or instruct the Depositary
Bank to subtract, such withholding payments from such payments, (iii) submit appropriate proof of payment of the withholding taxes
to the Purchaser within a reasonable period of time, and (iv) promptly provide the Purchaser with all official receipts with respect
thereto. Such withheld and remitted amounts shall be treated for all purposes of this Agreement as having been paid to the Purchaser (including,
for the avoidance of doubt, for the purpose of calculating the amounts payable pursuant to Section 3.3(e)(ii)).
Any amounts subtracted from payments pursuant to this Section 3.3(h) shall be disbursed to the Seller for the purpose of making
the applicable withholding payments. The Seller shall render the Purchaser reasonable assistance in order to allow the Purchaser to obtain
the benefit of any present or future treaty against double taxation, which may apply to such payments.

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    19 

    

    

 

Section 3.4            Mode
of Payment/Currency Exchange. All payments made by a Party hereunder shall be made by deposit of U.S. Dollars by wire transfer in
immediately available funds into the applicable account. With respect to sales outside the U.S., for the purpose of calculating Net Sales
for the purposes of determining the Purchased Receivables payable under Section 3.1, Net Sales shall be calculated in the currency
of sale, and then such amounts shall be converted into U.S. Dollars at the monthly rate of exchange utilized by the Seller, in accordance
with GAAP, fairly applied and as employed on a consistent basis throughout the Seller’s operations. Should the Seller change its
foreign currency translation methodology, the new methodology will be disclosed in writing to the Purchaser prior to its implementation.
For clarity, to the extent that the Seller receives a payment from a Third Party in U.S. Dollars on which Purchased Receivables are payable
to Purchaser under Section 3.1, the foregoing currency exchange rates shall not apply to such amount, and in particular the Seller
will have no obligation to re-calculate any currency conversion that was employed in connection with such Third Party payment.

 

Section 3.5            Included
Product Payment Reports and Records Retention. On or prior to each Quarterly Payment Date, the Seller shall deliver to the Purchaser
a written report of the amount of gross sales of the Included Product in each country in which Net Sales occurred during the applicable
Calendar Quarter, an itemized calculation of Net Sales on a country-by-country basis, including for any Non-Patent Right Country, and
a calculation of the amount of the Purchased Receivables due under Section 3.1(a) in respect of the applicable Calendar Quarter,
showing the Applicable Tiered Percentage (or if applicable, the Licensee Net Sales Percentage) applied thereto. For [*] after each sale
of the Included Product made by the Seller or any of its Affiliates, the Seller shall keep (and shall ensure that its Affiliates shall
keep) complete and accurate records of such sale in sufficient detail to confirm the accuracy of the applicable Purchased Receivables
paid pursuant to Section 3.1(a). Seller shall include in each contract of Seller related to the Commercialization of an Included
Product entered into on or after the Closing Date, an acknowledgement and consent to the obligations of Seller pursuant to this Section 3.5
and provide that the counterparty to such contract shall furnish to the Seller all information necessary for the Seller to comply with
this Section 3.5 and calculate the Purchased Receivables that are payable as set forth in this Agreement.

 

Section 3.6            Audits.

 

(a)           Upon
the written request of the Purchaser, and not more than [*], the Seller shall permit an independent certified public accounting firm of
national prominence selected by the Purchaser, and reasonably acceptable to the Seller, to have access to and to review, during normal
business hours and upon not less than [*] prior written notice, the relevant documents and records of the Seller and its Affiliates (to
the extent in the possession of the Seller) as may reasonably be necessary to verify the accuracy
and timeliness of the reports and payments (including calculation and payment of any Purchased Receivables) made by the Seller under this
Agreement. Such review may cover the records for sales of the Included Product and payments of Purchased Receivables and any payments
into the Collection Account in any Calendar Year ending no earlier than [*]. The accounting firm shall be permitted to prepare and disclose
to the Purchaser a written report stating only [*].

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    20 

    

    

 

(b)           If
such accounting firm reasonably concludes that any Purchased Receivables were owed and were not paid when due during such period pursuant
to the provisions of this Agreement, the Seller shall pay any late or unpaid Purchased Receivables within [*] after the date the Purchaser
delivers to the Seller a notice including the accounting firm's written report and requesting such payment. If the amount of the underpayment
is greater than the lesser of (i) [*] of the total amount actually owed for the period audited or (ii) [*], then the Seller
shall in addition reimburse the Purchaser for all reasonable costs and fees of the accounting firm related to such audit; otherwise,
the Purchaser shall pay all costs of the audit. In the event of overpayment, any amount of such overpayment shall be fully creditable
against Purchased Receivables payable for the immediately succeeding Calendar Quarter(s). The Purchaser shall (i) treat all information
that it receives under this Section 3.6 or under any license agreement of the Seller in accordance with the provisions of Article VIII
and (ii) cause its accounting firm to enter into a reasonably acceptable confidentiality agreement with the Seller obligating such
firm to retain all such information in confidence pursuant to such confidentiality agreement, in each case except to the extent necessary
for the Purchaser to enforce its rights under this Agreement.

 

Section 3.7             Transaction
Expenses. Within [*] following the execution date of this Agreement, and whether or not the Closing occurs, Purchaser shall invoice
the Seller for its reasonable, documented out-of-pocket fees and expenses incurred in connection with the transactions contemplated by
this Agreement (including legal fees and expenses, and out-of-pocket expenses incurred in connection with Purchaser’s conduct of
its due diligence with respect to such transactions). [*]

 

Article IV

REPRESENTATIONS AND WARRANTIES OF THE SELLER

 

The Seller hereby represents and warrants to the Purchaser
as of the date of each Closing as follows:

 

Section 4.1            Organization.
The Seller is a corporation duly organized, validly existing and in good standing under the laws of Delaware and has all powers and authority,
and all licenses, permits, franchises, authorizations, consents and approvals of all Governmental Authorities, required to own its property
and conduct its business as now conducted. The Seller is duly qualified to transact business and is in good standing in every jurisdiction
in which such qualification or good standing is required by Applicable Law (except where the failure to be so qualified or in good standing
would not result in (a) a Material Adverse Effect, or (b) an adverse effect, in any respect, on the timing, amount or duration
of the Purchased Receivables or the right of the Purchaser to receive the Purchased Receivables).

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    21 

    

    

 

Section 4.2            No
Conflicts.

 

(a)           None
of the execution and delivery by the Seller of any of the Transaction Documents to which the Seller is party, the performance by the Seller
of the obligations contemplated hereby or thereby or the consummation of the transactions contemplated hereby or thereby will: (i) contravene,
conflict with, result in a breach, violation, cancellation or termination of, constitute a default (with or without notice or lapse of
time, or both) under, require prepayment under, give any Person the right to exercise any remedy (including termination, cancellation
or acceleration) or obtain any additional rights under, or accelerate the maturity or performance of or payment under, in any respect,
(A) any Applicable Law or any judgment, order, writ, decree, permit or license of any Governmental Authority to which the Seller
or any of its Subsidiaries or any of their respective assets or properties may be subject or bound, (B) any term or provision of
any contract, agreement, indenture, lease, license, deed, commitment, obligation or instrument to which the Seller or any of its Subsidiaries
is a party or by which the Seller or any of its Subsidiaries or any of their respective assets or properties is bound or committed or
(C) any term or provision of any of the organizational documents of the Seller or any of its Subsidiaries, except in the case of
clause (A) or (B) where any such event would not result in (1) a Material Adverse Effect, or (2) an adverse effect,
in any respect, on the timing, amount or duration of the Purchased Receivables or the right of the Purchaser to receive the Purchased
Receivables; or (ii) except as provided in any of the Transaction Documents to which it is party, result in or require the creation
or imposition of any Lien on the Patent Rights, the Included Product or the Purchased Receivables.

 

(b)           [*].

 

Section 4.3             Authorization.
The Seller has all powers and authority to execute and deliver, and perform its obligations under, the Transaction Documents to which
it is party and to consummate the transactions contemplated hereby and thereby. The execution and delivery of each of the Transaction
Documents to which the Seller is party and the performance by the Seller of its obligations hereunder and thereunder have been duly authorized
by the Seller. Each of the Transaction Documents to which the Seller is party has been duly executed and delivered by the Seller. Each
of the Transaction Documents to which the Seller is party constitutes the legal, valid and binding obligation of the Seller, enforceable
against the Seller in accordance with its respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or
similar Applicable Laws affecting creditors’ rights generally, general equitable principles and principles of public policy.

 

Section 4.4            Ownership.
The Seller is the exclusive owner of the entire right, title (legal and equitable) and interest in, to and under (i) the Purchased
Receivables, free and clear of all Liens, other than Permitted Liens described in clauses (a) and (b) of such definition, and
(ii) the Patent Rights, free and clear of all Liens, other than Permitted Liens. The Seller has duly and legally filed or applied
for registration for its ownership interest in the Patent Rights in the appropriate agencies and in the jurisdictions set forth on Schedule
4.11, and the Seller is the exclusive “owner of record” of such Patents in each such jurisdiction. The Purchased Receivables
sold, assigned, transferred, conveyed and granted to the Purchaser on the Closing Date have not been pledged, sold, assigned, transferred,
conveyed or granted by the Seller to any other Person. The Seller has full right to sell, assign, transfer, convey and grant the Purchased
Receivables to the Purchaser. Upon the sale, assignment, transfer, conveyance and granting by the Seller of the Purchased Receivables
to the Purchaser, the Purchaser shall acquire good and marketable title to the Purchased Receivables free and clear of all Liens, other
than Permitted Liens described in clauses (a) and (b) of such definition, and shall be the exclusive owner of the Purchased
Receivables. Seller has not caused, and to the Knowledge of Seller no other Person has caused, the claims and rights of Purchaser created
by any Transaction Document in and to the Purchased Receivables and any Additional Collateral, in each case, to be subordinated to any
creditor or any other Person.

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    22 

    

    

 

Section 4.5            Governmental
and Third Party Authorizations. The execution and delivery by the Seller of the Transaction Documents to which the Seller is party,
the performance by the Seller of its obligations hereunder and thereunder and the consummation of any of the transactions contemplated
hereunder and thereunder (including the sale, assignment, transfer, conveyance and granting of the Purchased Receivables to the Purchaser)
do not require any consent, approval, license, order, authorization or declaration from, notice to, action or registration by or filing
with any Governmental Authority or any other Person, except for the filing of a Current Report on Form 8-K with the SEC, the filing
of UCC financing statements and those previously obtained.

 

Section 4.6            No
Litigation. There is no action, suit, arbitration proceeding, claim, citation, summons, subpoena, investigation or other proceeding
(whether civil, criminal, administrative, regulatory, investigative or informal, and including by or before a Governmental Authority)
pending or, to the Knowledge of the Seller, threatened by or against the Seller or any of its Subsidiaries, at law or in equity, that
(i) if adversely determined, would result in (A) a Material Adverse Effect, or (B) an adverse effect, in any respect, on
the timing, amount or duration of the Purchased Receivables or the right of the Purchaser to receive the Purchased Receivables, or (ii) challenges
or seeks to prevent or delay the consummation of any of the transactions contemplated by any of the Transaction Documents to which the
Seller is party.

 

Section 4.7            Solvency.
The Seller has determined that, and by virtue of its entering into the transactions contemplated by the Transaction Documents to which
the Seller is party and its authorization, execution and delivery of the Transaction Documents to which the Seller is party, the Seller’s
incurrence of any liability hereunder or thereunder or contemplated hereby or thereby is in its own best interests. Upon consummation
of the transactions contemplated by the Transaction Documents and the application of the proceeds therefrom, (a) the fair saleable
value of the Seller’s assets will be greater than the sum of its debts, liabilities and other obligations, including contingent
liabilities, (b) the present fair saleable value of the Seller’s assets will be greater than the amount that would be required
to pay its probable liabilities on its existing debts, liabilities and other obligations, including contingent liabilities, as they become
absolute and matured, (c) the Seller will be able to realize upon its assets and pay its debts, liabilities and other obligations,
including contingent obligations, as they mature, (d) the Seller will not have unreasonably small capital with which to engage in
its business and will not be unable to pay its debts as they mature, (e) the Seller has not incurred, will not incur and does not
have any present plans or intentions to incur debts or other obligations
or liabilities beyond its ability to pay such debts or other obligations or liabilities as they become absolute and matured, (f) the
Seller will not have become subject to any Bankruptcy Event and (g) the Seller will not have been rendered insolvent within the meaning
of any Applicable Law. No step has been taken or is intended by the Seller or, to its Knowledge, any other Person to make the Seller subject
to a Bankruptcy Event.

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    23 

    

    

 

Section 4.8            Tax
Matters. The Seller has never filed any tax return or report under any name other than its exact legal name. The Seller
has filed (or caused to be filed) all tax returns and reports required by Applicable Law to have been filed by it and has paid all
taxes required to be paid by it, except any such taxes that are being diligently contested in good faith by appropriate proceedings
and for which adequate reserves in accordance with GAAP have been set aside on its books and except where any such failure to file
or pay would not result in (a) a Material Adverse Effect, or (b) an adverse effect, in any respect, on the timing, amount
or duration of the Purchased Receivables or the right of the Purchaser to receive the Purchased Receivables.

 

Section 4.9            No
Brokers’ Fees. The Seller has not taken any action that would entitle any person or entity to any commission or
broker’s fee in connection with the transactions contemplated by this Agreement.

 

Section 4.10          Compliance
with Laws. None of the Seller or any of its Subsidiaries (a) has violated or is in violation of, or, to the
Knowledge of the Seller, is under investigation with respect to or has been threatened to be charged with or been given notice of
any violation of, any Applicable Law or any judgment, order, writ, decree, injunction, stipulation, consent order, permit or license
granted, issued or entered by any Governmental Authority or (b) is subject to any judgment, order, writ, decree, injunction,
stipulation, consent order, permit or license granted, issued or entered by any Governmental Authority, in each case, that would
result in (i) a Material Adverse Effect, or (ii) an adverse effect, in any respect, on the timing, amount or duration of
the Purchased Receivables or the right of the Purchaser to receive the Purchased Receivables. Each of the Seller and any Subsidiary
of the Seller is in compliance with the requirements of all Applicable Laws, a breach of any of which would result in a Material
Adverse Effect, or an adverse effect, in any respect, on the timing, amount or duration of the Purchased Receivables or the right of
the Purchaser to receive the Purchased Receivables.

 

Section 4.11          Intellectual
Property Matters.

 

(a)           [*].

 

(b)           [*]

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    24 

    

    

 

(c)           There
are no unpaid maintenance or renewal fees payable by the Seller to any Third Party that currently are overdue for any of the Patent Rights.
To the Knowledge of the Seller, each individual associated with the filing and prosecution of the Patent Rights, including the named
inventors of the Patent Rights, has complied in all material respects with all applicable duties of candor and good faith in dealing
with any Patent Office, including any duty to disclose to any Patent Office all information known by such inventors to be material to
the patentability of each of the Patent Rights (including any relevant prior art), in each case, in those jurisdictions where such duties
exist.

 

(d)           Subsequent
to the issuance of the Patent Rights, the Seller has not filed any disclaimer or made or permitted any other voluntary reduction in the
scope of the Patent Rights. No allowable or allowed subject matter of the Patent Rights is subject to any competing conception claims
of allowable or allowed subject matter of any Patents of any Third Party and have not been the subject of any interference, re-examination
or opposition proceedings.

 

(e)           There
is no pending or, to the Knowledge of the Seller, threatened opposition, interference, reexamination, injunction, claim, suit, action,
citation, summons, subpoena, hearing, inquiry, investigation (by the International Trade Commission or otherwise), complaint, arbitration,
mediation, demand, decree or other dispute, disagreement, proceeding, claim or inter partes review (other than standard patent prosecution
before a Patent Office) (collectively, “Disputes”) challenging the legality, validity, enforceability or ownership
of any of the Patent Rights or that would reasonably be expected to give rise to any Set-off against the payments due to the Purchaser
under this Agreement. To the Knowledge of the Seller, there are no Disputes by or with any Third Party against the Seller involving the
Included Product. The Patent Rights are not subject to any outstanding injunction, judgment, order, decree, ruling, change, settlement
or other disposition of a Dispute.

 

(f)            [*]

 

(g)           To
the Knowledge of the Seller, there is no Third Party infringing any Patent Rights.

 

(h)           [*].

 

Section 4.12           Margin
Stock. The Seller is not engaged in the business of extending credit for the purpose of buying or carrying margin stock, and no portion
of the Purchase Amount shall be used by the Seller for a purpose that violates Regulation T, U or X promulgated by the Board of Governors
of the Federal Reserve System from time to time.

 

Section 4.13           Regulatory
Compliance. To the Seller’s Knowledge, the Seller, its Subsidiaries and their agents are in material compliance with all statutes,
rules and regulations of the FDA and any regulatory authority with respect to the evaluation, testing, manufacturing and distributing
of the Included Product, including those related to investigational use or premarket clearance, current “Good Manufacturing Practices”,
current “Good Laboratory Practices”, current “Good Clinical Practices”, labeling, advertising, record keeping,
reporting of adverse events, filing of reports and security in those countries in which the Seller or any of its Subsidiaries
is conducting clinical trials for the Included Product. Neither the Seller nor any of its Subsidiaries has received from any Governmental
Authority any Forms 483, notices of adverse findings or warning letters or other correspondence in which such Governmental Authority
asserted that the operations of the Seller or any of its Subsidiaries may not be in material compliance with Applicable Laws, orders,
judgments or decrees in connection with their respective activities relating to the Included Product.

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    25 

    

    

 

 

Section 4.14          Material
Contracts.

 

(a)           Schedule
4.14(a) hereto contains a list of each contract or other agreement that is material to [*] the Included Product (including,
without limitation, all waivers, amendments, supplements and other modifications thereto) (each, a “Material Contract”).
As of the Closing Date, the Seller has provided a true and complete copy of each of the Material Contracts to the Purchaser in the electronic
data room.

 

(b)           Except
as separately disclosed in writing to Purchaser referencing this Section 4.14(b), neither Seller nor any Material Contract Counterparty
is in breach or default of any Material Contract and no circumstances or grounds exist that would, upon the giving of notice, the passage
of time or both, give rise (i) to a claim by Seller or any Material Contract Counterparty of a breach or default of any Material
Contract, or (ii) to a right of rescission, termination, revision, setoff, or any other rights, by any Person, in, to or under any
Material Contract. Seller has not received from, or delivered to, any Material Contract Counterparty, any notice alleging a breach or
default under any Material Contract, which breach or default has not been cured as of the date hereof.

 

(c)           Each
Material Contract is a valid and binding obligation of Seller and, to the Knowledge of Seller, of the applicable Material Contract Counterparty,
enforceable against each of Seller and, to the Knowledge of Seller, each applicable Material Contract Counterparty in accordance with
its terms, except as may be limited by general principles of equity (regardless of whether considered in a proceeding at law or in equity)
and by applicable bankruptcy, insolvency, moratorium and other similar laws of general application relating to or affecting creditors’
rights generally. Seller has not received any notice from any Material Contract Counterparty or any other Person challenging the validity
or enforceability of any Material Contract. Neither Seller, nor to the Knowledge of Seller, any other Person, has delivered or intends
to deliver any written notice to Seller or a Material Contract Counterparty challenging the validity or enforceability of any Material
Contract.

 

Section 4.15          Bankruptcy.
Neither Seller nor to the Knowledge of Seller, any Material Contract Counterparty is contemplating nor planning to commence any case,
proceeding or other action relating to Material Contract Counterparty’s bankruptcy, insolvency, liquidation or dissolution or reorganization
by any of the foregoing means.

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    26

     

    

 

Section 4.16           Office
Locations; Names.

 

(a)           The
chief place of business, the chief executive office and each office where Seller keeps its records regarding the Purchased Receivables
are, as of the date hereof, each located at 270 East Grand Avenue, South San Francisco, CA 94080.

 

(b)           Seller
(or any predecessor by merger or otherwise) has not, within the five (5) year period preceding the date hereof, had a name that differs
from its name as of the date hereof.

 

Article V

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

 

The entities constituting
collectively the Purchaser hereby represent and warrant, separately (and not jointly), to the Seller as of the date of each Closing (except
to the extent otherwise set forth in Section 5.8) as follows:

 

Section 5.1             Organization.
Such entity is an entity of the type set forth on Annex I duly organized, validly existing and in good standing under the laws of its
state of formation and has all powers and authority, and all licenses, permits, franchises, authorizations, consents and approvals of
all Governmental Authorities, required to own its property and conduct its business as now conducted.

 

Section 5.2             No
Conflicts. None of the execution and delivery by such entity of any of the Transaction Documents to which it is party, the performance
by it of the obligations contemplated hereby or thereby or the consummation of the transactions contemplated hereby or thereby will contravene,
conflict with, result in a breach, violation, cancellation or termination of, constitute a default (with or without notice or lapse of
time, or both) under, require prepayment under, give any Person the right to exercise any remedy (including termination, cancellation
or acceleration) or obtain any additional rights under, or accelerate the maturity or performance of or payment under, in any respect,
(i) any Applicable Law or any judgment, order, writ, decree, permit or license of any Governmental Authority to which such entity
or any of its assets or properties may be subject or bound, (ii) any term or provision of any contract, agreement, indenture, lease,
license, deed, commitment, obligation or instrument to which such entity is a party or by which such entity or any of its assets or properties
is bound or committed or (iii) any term or provision of any of the organizational documents of such entity, except in the case of
clause (i) where any such event would not result in a material adverse effect on the ability of such entity to consummate the transactions
contemplated by the Transaction Documents.

 

Section 5.3             Authorization.
Such entity has all powers and authority to execute and deliver, and perform its obligations under, the Transaction Documents to
which it is party and to consummate the transactions contemplated hereby and thereby. The execution and delivery of each of the
Transaction Documents to which such entity is party, and the performance by it of its obligations hereunder and thereunder, have
been duly authorized by it. Each of the Transaction Documents to which such entity is party has been duly executed and delivered by
it. Each of the Transaction Documents to which such entity is
party constitutes the legal, valid and binding obligation of it, enforceable against it in accordance with its respective terms, subject
to applicable bankruptcy, insolvency, reorganization, moratorium or similar Applicable Laws affecting creditors’ rights generally,
general equitable principles and principles of public policy.

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    27

     

    

 

Section 5.4             Governmental
and Third Party Authorizations. The execution and delivery by such entity of the Transaction Documents to which it is party, the performance
by it of its obligations hereunder and thereunder and the consummation of any of the transactions contemplated hereunder and thereunder
do not require any consent, approval, license, order, authorization or declaration from, notice to, action or registration by or filing
with any Governmental Authority or any other Person, except as described in Section 5.5.

 

Section 5.5             No
Litigation. There is no action, suit, arbitration proceeding, claim, citation, summons, subpoena, investigation or other proceeding
(whether civil, criminal, administrative, regulatory, investigative or informal and including by or before a Governmental Authority) pending
or, to the knowledge of such entity, threatened by or against such entity, at law or in equity, that challenges or seeks to prevent or
delay the consummation of any of the transactions contemplated by any of the Transaction Documents to which it is party.

 

Section 5.6             Access
to Information. Such entity acknowledges that it has (a) reviewed such documents and information relating to the Patent Rights
and the Included Product and (b) had the opportunity to ask such questions of, and to receive answers from, representatives of the
Seller concerning the Patent Rights and the Included Product, in each case, as it deemed necessary to make an informed decision to purchase,
acquire and accept the Purchased Receivables in accordance with the terms of this Agreement. Such entity has such knowledge, sophistication
and experience in financial and business matters that it is capable of evaluating the risks and merits of purchasing, acquiring and accepting
the Purchased Receivables in accordance with the terms of this Agreement.

 

Section 5.7             No
Brokers’ Fees. Such entity has not taken any action that would entitle any person or entity to any commission or broker’s
fee in connection with the transactions contemplated by this Agreement.

 

Section 5.8             Funds
Available. As of the date hereof, such entity has sufficient funds on hand to satisfy its obligations to pay the Purchase Amount due
and payable on the Initial Closing Date and has sufficient funds under commitment to it to satisfy its obligations to pay the Purchase
Amount due and payable on the Subsequent Closing Date. Such entity acknowledges and agrees that its obligations under this Agreement are
not contingent on obtaining financing.

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    28

     

    

 

Article VI

COVENANTS

 

The Parties hereto covenant and agree as follows:

 

Section 6.1             True
Sale. The Purchaser and the Seller intend and agree that the sale, conveyance, assignment and transfer of the Purchased Receivables
shall constitute a true sale by the Seller to the Purchaser of the Purchased Receivables that is absolute and irrevocable and that provides
the Purchaser with the full benefits and detriments of beneficial ownership of the Purchased Receivables, and neither the Purchaser nor
the Seller intends the transactions contemplated hereunder to be a financing transaction, borrowing or a loan from the Purchaser to the
Seller. The Seller disclaims any beneficial ownership interest in the Purchased Receivables upon execution of this Agreement and each
of the Seller and the Purchaser waives any right to contest or otherwise assert that this Agreement is other than a true, absolute and
irrevocable sale and assignment by the Seller to the Purchaser of the Purchased Receivables under Applicable Law, which waiver will be
enforceable against the applicable Party in any bankruptcy, insolvency or similar proceeding relating to such Party. The Seller authorizes
and consents to the Purchaser filing, including with the Secretary of State of the State of Delaware, one or more UCC financing statements
(and continuation statements with respect to such financing statements when applicable) or other instruments and notices, in such manner
and in such jurisdictions as in the Purchaser’s determination may be necessary or appropriate to evidence the purchase, acquisition
and acceptance by the Purchaser of the Purchased Receivables hereunder and to perfect and maintain the perfection of the Purchaser’s
ownership in the Purchased Receivables and the security interest in the Purchased Receivables granted by the Seller to the Purchaser pursuant
to Section 6.2; provided that the Purchaser will provide the Seller with a reasonable opportunity to review any such financing statements
(or similar documents) prior to filing and the collateral identified in any such financing shall be limited to a legally sufficient description
of the “Collateral” as defined herein and proceeds and products thereof. For greater certainty, the Purchaser will not file
this Agreement in connection with the filing of any such financing statements (or similar documents) but may file a summary or memorandum
of this Agreement if required under Applicable Laws providing for such filing. For sake of clarification, the foregoing statements in
this Section 6.1 shall not bind either Party regarding the reporting of the transactions contemplated hereby for GAAP or SEC reporting
purposes.

 

Section 6.2             Collateral
Matters.

 

(a)           Precautionary
Security Interest in Purchased Receivables. Without limiting the provisions of Section 6.1, in an abundance of caution to address
the possibility that, notwithstanding that the Seller and the Purchaser expressly intend and expect for the sale, conveyance, assignment
and transfer of the Purchased Receivables hereunder to be a true and absolute sale and assignment for all purposes, to protect the interests
of the Purchaser in the event that such sale and assignment is recharacterized as something other than a true sale or such sale will for
any reason be ineffective or unenforceable as such, as determined in a judicial, administrative or other proceeding (any of the foregoing
being a “Recharacterization”), the Seller does hereby grant to the Purchaser, a continuing security interest of first
priority in all of the Seller’s right, title and interest in, to
and under the Purchased Receivables, whether now or hereafter existing, and any and all “proceeds” thereof (as such term is
defined in the UCC), in each case, for the benefit of the Purchaser as security for the prompt and complete payment of a loan deemed to
have been made in an amount equal to Purchase Amount together with the performance when due of all of the Seller’s obligations now
or hereafter existing under this Agreement and the other Transaction Documents, which security interest will, upon the filing of a duly
prepared financing statement in the appropriate filing office and to the extent the Purchased Receivables constitute an asset and not
an obligation of the Seller, be perfected and prior to all other Liens thereon, other than Permitted Liens, to the extent that such security
interest in the Collateral can be perfected under the UCC by the filing of financing statement in such filing office. In the event of
a Recharacterization, the Purchaser will have, in addition to the rights and remedies which it may have under this Agreement, all other
rights and remedies provided to a secured creditor after default under the UCC and other Applicable Law, which rights and remedies will
be cumulative. The Parties intend that this Agreement shall constitute a security agreement in respect of such security interest. For
the avoidance of doubt, a Recharacterization in any one jurisdiction shall not constitute a Recharacterization, or otherwise impact the
characterization of the Purchased Receivables in any other jurisdiction.

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

 

    29

     

    

 

(b)           Security
Interest in Additional Collateral. Seller hereby grants to the Purchaser Representative a security interest in all of Seller’s
right, title and interest in, to and under the Additional Collateral, for the benefit of the Purchaser as security for the prompt and
complete payment and performance when due of the obligations of Seller hereunder in respect of the Purchased Receivables owing to the
Purchaser, which security interest will, upon execution of the Deposit Agreement, be perfected and prior to all other Liens thereon (other
than Permitted Liens). The Purchaser Representative agrees that it shall not send an “activation notice” (as defined in the
Deposit Agreement) or otherwise assert exclusive control over the Collection Account or the Disbursement Account until after the occurrence
of a Bankruptcy Event or the breach by Seller of the Transaction Documents, which (if curable) shall remain uncured for a period in excess
of 2 days after notice thereof is provided by the Purchaser.

 

Section 6.3             Update
Meetings. During the Payment Term, but subject to Section 9.4, until the date upon which Seller has paid to the Purchaser an
amount in Purchased Receivables equal to the Purchase Amount, the Purchaser shall be entitled to a [*] update call or meeting, as follows:
at the Purchaser’s request, members of the senior management team of each Party shall meet up to (a) until each of the Approval
Conditions and the Manufacturing Approval Condition have been satisfied, [*] in each Calendar Year and (b) after each of the Approval
Conditions and the Manufacturing Approval Condition have been satisfied, [*] in each Calendar Year (in each case, which may be in-person
at the Seller’s headquarters, or via teleconference or videoconference) in order for the Seller to review with the Purchaser the
[*] Net Sales for the preceding [*] and the related reports delivered by the Seller pursuant to Section 3.5 and to discuss the status
and the historical and potential performance of the Included Product and any regulatory developments. Seller shall also provide to Purchaser
no later than [*] days prior to such update meetings, a list of the Key Commercial Contracts entered into, amended, modified, restated,
supplemented, cancelled, terminated or waived during the preceding [*], or any Key Commercial Contracts then in progress or under negotiation,
including the identity of the Key Commercial Contract Counterparty, and shall provide
Purchaser with reasonably requested information relating to the purpose and content of such Key Commercial Contracts and reasons for any
of the foregoing events relating thereto. Any information disclosed by either Party during such update meetings or calls or provided to
the Purchaser pursuant to its request shall be considered “Confidential Information” of the disclosing Party subject to the
terms of Article VIII.

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    30

     

    

 

Section 6.4             Notices.

 

(a)           To
the extent permitted by Applicable Law, promptly after receipt by the Seller of notice of any action, suit, claim, demand, dispute, investigation,
arbitration or other proceeding (commenced or threatened) relating to the Included Product, the transactions contemplated by any Transaction
Document, or to the Purchased Receivables, the Seller shall (i) inform the Purchaser in writing of the receipt of such notice and
the substance thereof and (ii) if such notice is in writing, furnish the Purchaser with a copy of such notice and any related materials
with respect thereto, and if such notice is not in writing, furnish to the Purchaser a written summary describing in reasonable detail
the contents thereof.

 

(b)           To
the extent permitted by Applicable Law, promptly following receipt by the Seller of any written notice, claim or demand challenging the
legality, validity, enforceability or ownership of any of the Patent Rights or pursuant to which any Third Party commences or threatens
any action, suit or other proceeding against the Seller and relating to the Included Product, the Seller shall (i) inform the Purchaser
in writing of such receipt and (ii) furnish the Purchaser with a copy of such notice, claim or demand, or if such notice is not in
writing, furnish to the Purchaser a written summary describing in reasonable detail the contents thereof.

 

(c)           Seller
shall promptly (and in any event within three (3) Business Days) provide Purchaser with copies of any material information, reports
and notices if the contents of such information, report or notice could reasonably be expected to, individually or in the aggregate, result
in a Material Adverse Effect.

 

(d)           The
Seller shall provide the Purchaser with prompt written notice after the Seller has Knowledge of any of the following: (i) the occurrence
of a Bankruptcy Event in respect of the Seller or any Material Contract Counterparty; (ii) any material breach or default by the
Seller of or under any covenant, agreement or other provision of any Transaction Document; (iii) any representation or warranty made
by the Seller in any of the Transaction Documents or in any certificate delivered to the Purchaser pursuant to this Agreement shall prove
to be untrue, inaccurate or incomplete in any material respect on the date as of which made; or (iv) any change, effect, event, occurrence,
state of facts, development or condition that would result in a Material Adverse Effect.

 

(e)           The
Seller shall notify the Purchaser in writing not less than 10 days prior to any change in, or amendment or alteration of, the Seller’s
(i) legal name, (ii) form of legal entity or (iii) jurisdiction of organization.

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    31

     

    

 

Section 6.5             Public
Announcement.

 

(a)            As
soon as reasonably practicable following the Closing Date, one or both of the Parties shall issue a mutually agreed to press release substantially
in the applicable form attached hereto as Exhibit B. Except as required by Applicable Law (including disclosure requirements
of the SEC, the NASDAQ Global Market or any other stock exchange on which securities issued by a Party or its Affiliates are traded),
neither Party shall make any other public announcement concerning this Agreement or the subject matter hereof without the prior written
consent of the other, which shall not be unreasonably withheld or delayed. In the event of a required public announcement, to the extent
practicable under the circumstances, the Party making such announcement shall provide the other Party with a copy of the proposed text
of such announcement sufficiently in advance of the scheduled release to afford such other Party a reasonable opportunity to review and
comment upon the proposed text.

 

(b)            The
Parties shall coordinate in advance with each other in connection with the filing of this Agreement (including proposed redaction of certain
provisions of this Agreement) with the SEC, the NASDAQ Global Market or any other stock exchange or Governmental Authority on which securities
issued by a Party or its Affiliate are traded, and each Party shall use reasonable efforts to seek confidential treatment for the terms
of this Agreement proposed to be redacted, if any; provided that each Party shall ultimately retain control over what information
to disclose to the SEC, the NASDAQ Global Market or any other stock exchange or Governmental Authority, as the case may be, and provided
further that the Parties shall use their reasonable efforts to file redacted versions with any Governmental Authorities which are consistent
with redacted versions previously filed with any other Governmental Authorities. Other than such obligation, neither Party (nor its Affiliates)
shall be obligated to consult with or obtain approval from the other Party with respect to any filings to the SEC, the NASDAQ Global Market
or any other stock exchange or Governmental Authority. For clarity, once a public announcement or other disclosure is made by a Party
in accordance with this Section 6.5, then no further consent or compliance with this Section 6.5 shall be required for any substantially
similar disclosure thereafter.

 

Section 6.6             Further
Assurances.

 

(a)           Subject
to the terms and conditions of this Agreement, each Party hereto will use its commercially reasonable efforts to take, or cause to be
taken, as may be reasonably requested by the other Party, all actions and to do, or cause to be done, all things necessary under Applicable
Laws to consummate the transactions contemplated by the Transaction Documents, including to (i) perfect the sale, assignment, transfer,
conveyance and granting of the Purchased Receivables to the Purchaser pursuant to this Agreement, (ii) perfect, protect, more fully
evidence, vest and maintain in the Purchaser good, valid and marketable rights and interests in and to the Purchased Receivables free
and clear of all Liens (other than Permitted Liens and other Liens permitted by the Transaction Documents), (iii) create, evidence
and perfect the back-up security interest granted to the Purchaser Representative pursuant to Section 6.2 and (iv) enable the
Purchaser to exercise or enforce any of the Purchaser’s rights under any Transaction Document, including following the Closing Date.

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    32

     

    

 

(b)           The
Seller and the Purchaser shall cooperate and provide assistance as reasonably requested by the other Party hereto, at the expense of such
other Party hereto (except as otherwise set forth herein), in connection with any litigation, arbitration, investigation or other proceeding
(whether threatened, existing, initiated or contemplated prior to, on or after the date hereof) to which the other Party hereto, any of
its Affiliates or controlling persons or any of their respective officers, directors, equityholders, controlling persons, managers, agents
or employees is or may become a party or is or may become otherwise directly or indirectly affected or as to which any such Persons have
a direct or indirect interest, in each case relating to any Transaction Document, the transactions contemplated herein or therein or the
Purchased Receivables but in all cases excluding any litigation brought by the Seller (for itself or on behalf of any Seller Indemnified
Party) against the Purchaser or brought by the Purchaser (for itself or on behalf of any Purchaser Indemnified Party) against the Seller.

 

(c)           The
Seller shall comply with all Applicable Laws with respect to the Transaction Documents and the Purchased Receivables except where any
non-compliance would not result in a Material Adverse Effect.

 

(d)           The
Seller shall not enter into any contract, agreement or other legally binding arrangement (whether written or oral), or grant any right
to any other Person, in any case that would reasonably be expected to conflict with the Transaction Documents or serve or operate to limit
or circumscribe any of the Purchaser’s rights under the Transaction Documents (or the Purchaser’s ability to exercise any
such rights) or create, incur, assume or suffer to exist any Lien, upon or with respect to the Purchased Receivables or the Additional
Collateral (other than Permitted Liens), or agree to do or suffer to exist any of the foregoing; provided that Seller shall be permitted
to incur Indebtedness, including Permitted Debt, in connection with which Seller may grant to the Permitted Debt Creditors a first priority
security lien in Seller’s right, title and interest in, to and under, the Collateral and the proceeds thereof, in each case, other
than to the extent of the Purchased Receivables (provided that any proceeds released to Purchaser from the Disbursement Account shall
be free and clear of any such security interest) and Purchaser and the Purchaser Representative shall enter into a reasonably acceptable
intercreditor agreement or similar agreement with any Permitted Debt Creditor, so long as the terms of such Indebtedness and any intercreditor
agreement do not prohibit, or purport to subordinate, any payments under the Transaction Documents in respect of the Purchased Receivables
(it being agreed that an intercreditor agreement incorporating the terms set forth on Exhibit C shall be deemed reasonably
acceptable) and, if requested by Seller or any Permitted Debt Creditor (or agent or representative thereof), Purchaser Representative
shall enter into an amended or replacement Deposit Agreement that extends perfection in the Collection Account and the Disbursement Account
to the Permitted Debt Creditor, which may be through “control” by the Purchaser Representative over the Additional Collateral
for purposes of Section 9-104 of the UCC or other method of control for such purposes reasonably acceptable to the Purchaser Representative.
Seller shall obtain and maintain any required consents, approvals, acknowledgements, certificates or waivers so that the transactions
contemplated by this Agreement or any other Transaction Document may be consummated and shall not result in any default or breach or termination
of any agreement to which it is party.

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    33

     

    

 

(e)           Without
the prior written consent of Purchaser, neither Seller nor any Subsidiary of Seller shall take any act or fail to take any act that would
reasonably be expected to result in a Material Adverse Effect with respect to an Included Product, the Purchased Receivables or Purchaser’s
rights under the Transaction Documents.

 

Section 6.7             Patent
Rights. The Seller shall (a) take any and all actions, and prepare, execute, deliver and file any and all agreements, documents
and instruments, that are reasonably necessary or desirable to preserve diligently and maintain the Patent Rights, including payment of
maintenance fees or annuities, at the sole expense of the Seller and (b) diligently defend (and enforce) the Patent Rights against
infringement or interference by any other Person, and against any claims of invalidity or unenforceability, in any jurisdiction (including
by bringing any legal action for infringement or defending any counterclaim of invalidity or action of a Third Party for declaratory judgment
of non-infringement or non-interference) , (c) diligently defend against any claim or action by any other Person that the manufacture,
use, marketing, sale, offer for sale, importation or distribution of the Included Product as currently contemplated infringes on any patent
or other intellectual property rights of any other Person or constitutes misappropriation of any other Person’s trade secrets or
other intellectual property rights, and (d) when available in respect of the Included Product and where applicable obtain patent
listing in the FDA Electronic Orange Book or apply for similar data exclusivity where available in other countries in which Net Sales
of Included Product occur, in each case of (a) through (d), except where failure to do so would not reasonably be expected to have
a Material Adverse Effect. The Seller shall not exercise and enforce its applicable rights in any manner that would result in a breach
of this Agreement.

 

Section 6.8             Tax
Matters.

 

(a)           Notwithstanding
anything in this Agreement to the contrary, the Parties intend the transactions contemplated under this Agreement to be characterized
as and treated as a sale of the Purchased Receivables for all U.S. tax purposes and each Party shall prepare and file all tax returns
and reports in a manner consistent with that characterization. The Parties agree that this Agreement does not, and they do not intend
this Agreement to, create a contractual partnership for U.S. federal income tax purposes. [*] The Purchaser understands that, consistent
with the qualified cost sharing arrangement, the Seller and the foreign affiliate intend to enter into an agreement, contemporaneously
with the Seller entering into this Purchase and Sale Agreement, that will obligate the foreign affiliate to make payments to the Seller
equal to the amount of the Included Product Payment Amount resulting from Net Sales that occur outside the United States.

 

(b)           The
Parties hereto agree not to take any position that is inconsistent with the provisions of this Section 6.8 on any tax return or in
any audit or other administrative or judicial proceeding unless (i) the other Party hereto has consented to such actions or (ii) the
Party hereto that contemplates taking such an inconsistent position has been advised by nationally recognized tax counsel in writing that
there is no “reasonable basis” (within the meaning of Treasury Regulation Section 1.6662-3(b)(3)) for the position specified
in this Section 6.8. If there is an inquiry by any Governmental Authority of the Seller or the Purchaser related to this Section 6.8,
the Parties hereto shall cooperate with each other in responding to such inquiry in a reasonable manner consistent with this Section 6.8.

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    34

     

    

 

Section 6.9             Existence.
The Seller shall (a) preserve and maintain its existence, (b) preserve and maintain its rights, franchises and privileges unless
failure to do any of the foregoing would not result in a Material Adverse Effect, (c) qualify and remain qualified in good standing
in each jurisdiction where the failure to preserve and maintain such qualifications would result in a Material Adverse Effect, including
appointing and employing such agents or attorneys in each jurisdiction where it shall be necessary to take action under this Agreement,
and (d) comply with its organizational documents (provided, however, that nothing in this Section 6.9 shall prohibit the Seller
from entering into any merger, consolidation or amalgamation with, or selling or otherwise transferring all or substantially all of its
assets or all or substantially of its assets related to the Included Product to, any other Person in a transaction that complies with
Section 10.4).

 

Section 6.10           Commercialization
of the Included Product. Seller shall use Commercially Reasonable and Diligent Efforts to prepare, execute, deliver and file any and
all agreements, documents or instruments that are necessary or desirable to secure and maintain, Marketing Authorization in the United
States for the Included Product. Seller shall not withdraw or abandon, or fail to take any action necessary to prevent the withdrawal
or abandonment of, Marketing Authorization in the United States once obtained. Following the receipt of a Marketing Authorization in any
country, the Seller agrees to use Commercially Reasonable and Diligent Efforts, itself or through one or more Subsidiaries or Licensees,
to Commercialize the Included Product in each such country.

 

Section 6.11           Material
Contracts.

 

(a)           [*]

 

(b)           Seller
shall use Commercially Reasonable and Diligent Efforts in selecting the applicable Material Contract Counterparty to a Material Contract
and negotiating and agreeing to the terms of such Material Contract (or any amendment, modification, restatement, cancellation, supplement,
termination or waiver thereof).

 

(c)           The
Seller shall, and shall cause its Subsidiaries to, comply with all material terms and conditions of and fulfill all material obligations
under each Material Contract or Key Commercial Contract to which any of them is party. Upon the occurrence of a breach of any such Material
Contract or Key Commercial Contract by any other party thereto, which would reasonably be expected to result in a Material Adverse Effect,
the Seller shall use Commercially Reasonable and Diligent Efforts to seek to enforce all of its (or its Subsidiary’s) rights and
remedies thereunder.

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    35

     

    

 

(d)           To
the extent (i) Seller sells or otherwise disposes of its right, title and/or interest in and to the Included Product to a Third Party,
either on a worldwide or jurisdiction by jurisdiction basis, and the terms of such sale or disposition does not include the payment of
royalties to Seller in respect of Net Sales in an amount equal to or greater than the Applicable Tiered Percentage or (ii) otherwise
enters into any agreement, arrangement or understanding pursuant to which a Third Party is entitled to the Exploitation or Commercialization
of the Included Product, but such agreement, arrangement
or understanding does not include the payment of royalties in respect of Net Sales to Seller in an amount equal to or greater than the
Applicable Tiered Percentage, then Seller shall cause such Third Party to (A) instruct all Licensees of such Third Party and account
debtors (which instruction shall be in form and substance reasonably satisfactory to the Purchaser and identify Purchaser as having a
right to a receive a portion of such amounts, and a copy of which shall be delivered to the Purchaser promptly following delivery to such
Licensee or account debtor) to remit all proceeds payable to such Third Party in respect of accounts and royalty receivables arising out
of sales of Included Product in the United States to the Collection Account to be disbursed in accordance with Section 3.2 and 3.3
(as if such Third Party were the Seller for purposes thereof), in each case, in a manner that preserves Purchaser’s right to receive
the Applicable Tiered Percentage of Net Sales and (B) be bound by the terms of this Section 6.11(d); provided that this
Section 6.11(d) shall not apply to any sale, disposal, agreement arrangement or understanding pursuant to which no proceeds
are payable.

 

Section 6.12           Adverse
Effect. Notwithstanding anything to the contrary in this Agreement, Seller shall not take any action or abstain from taking any action,
directly or indirectly, which action or abstinence could have the effect of altering the terms and conditions of this Agreement or the
other Transaction Documents (or any ancillary documents thereto) in a manner adverse to the Purchaser.

 

Article VII

THE CLOSINGS

 

Section 7.1             Closing.
Subject to the terms of this Agreement, the closings of the transactions contemplated hereby (each, a “Closing”) shall
take place on

 

(a)           for
the initial Closing (the “Initial Closing” and the date hereof, the “Initial Closing Date”) at the
offices of Cooley LLP at 3175 Hanover Street, Palo Alto, CA 94304, or such other place as the parties hereto mutually agree; and

 

(b)           for
the subsequent Closing (the “Subsequent Closing”), on the fifth (5th) Business Day (the “Subsequent
Closing Date”) following the written notification from Seller of satisfaction of the condition set forth on Exhibit D
at the offices of Cooley LLP at 3175 Hanover Street, Palo Alto, CA 94304, or such other place as the parties hereto mutually agree.

 

Section 7.2             Conditions
to Subsequent Closing.

 

(a)           The
obligations of the Purchaser relating to the Subsequent Closing shall be subject to (i) the receipt of the items identified in Section 7.3(b),
(ii) no Bankruptcy Event with respect to the Seller shall have occurred and be continuing and (iii) the satisfaction of the
condition set forth on Exhibit D; provided that (A) if the condition set forth on Exhibit D is not
satisfied on or before September 1, 2018, Purchaser shall have the right, but not the obligation to terminate Purchaser’s rights
and Seller’s obligations relating to the Subsequent Closing by delivering notice of such termination to Seller, and (B) if
the condition set forth on Exhibit D is not satisfied on or before October 1, 2018,
Seller’s obligations with respect to Section 2.2(b) shall not apply, and Purchaser’s rights with respect to the
Subsequent Closing shall automatically terminate.

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    36

     

    

 

(b)           Notwithstanding
Section 7.2(a), if Seller is acquired by a Third Party at any time after the Effective Date and prior to the occurrence of the condition
set forth on Exhibit D, Seller’s obligations with respect to Section 2.2(b) shall not apply, and Purchaser’s
rights with respect to the Subsequent Closing shall automatically terminate.

 

Section 7.3             Closing
Deliverables of the Seller.

 

(a)           At
the Initial Closing, the Seller shall deliver or cause to be delivered to the Purchaser the following:

 

(i)            the
Bill of Sale executed by the Seller; and

 

(ii)           a
certificate of an executive officer of the Seller (the statements made in which shall be true and correct on and as of the applicable
Closing Date): (i) attaching copies, certified by such officer as true and complete, of (x) the organizational documents of
the Seller and (y) resolutions of the governing body of the Seller authorizing and approving the execution, delivery and performance
by the Seller of the Transaction Documents and the transactions contemplated herein and therein; (ii) setting forth the incumbency
of the officer or officers of the Seller who have executed and delivered the Transaction Documents, including therein a signature specimen
of each such officer or officers; and (iii) attaching a copy, certified by such officer as true and complete, of a good standing
certificate of the appropriate Governmental Authority of the Seller’s jurisdiction of organization, stating that the Seller is in
good standing under the Applicable Laws of such jurisdiction,

 

(b)           At
the Subsequent Closing, the Seller shall deliver or cause to be delivered to the Purchaser the following:

 

(i)            a
certificate of an executive officer of the Seller (the statements made in which shall be true and correct on and as of the applicable
Closing Date): (A) attaching copies, certified by such officer as true and complete, of (x) the organizational documents of
the Seller and (y) confirming that resolutions of the governing body of the Seller authorizing and approving the execution, delivery
and performance by the Seller of the Transaction Documents and the transactions contemplated herein and therein remain in full force and
effect; and (B) attaching a copy, certified by such officer as true and complete, of a good standing certificate of the appropriate
Governmental Authority of the Seller’s jurisdiction of organization, stating that the Seller is in good standing under the Applicable
Laws of such jurisdiction;

 

(ii)           a
certificate of an executive officer of the Seller certifying the satisfaction of the condition set forth on Exhibit D; and

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    37

     

    

 

(iii)          a
certificate of an executive officer of the Seller certifying that the representations and warranties set forth in Sections 4.1, 4.2, 4.3,
4.4, 4.5, 4.6, 4.7, 4.10, 4.11, 4.13, 4.15 and 4.16 are true and correct on and as of the applicable Closing Date;

 

Section 7.4             Closing
Deliverables of the Purchaser.

 

(a)           At
the Initial Closing, the Purchaser shall deliver or cause to be delivered to the Seller the following:

 

(i)            the
Bill of Sale executed by the Purchaser; and

 

(ii)           payment
of the Purchase Amount in accordance with Section 2.2(a).

 

(b)           At
the Subsequent Closing, the Purchaser shall deliver or cause to be delivered to the Seller the following:

 

(i)            the
Bill of Sale executed by the Purchaser; and

 

and

 

(ii)           payment
of the second portion of the Purchase Amount in accordance with Section 2.2(b).

 

Article VIII

CONFIDENTIALITY

 

Section 8.1             Confidentiality;
Permitted Use. During the Payment Term and for a period of [*] years thereafter, each Party shall maintain in strict confidence
all Confidential Information and materials disclosed or provided to it by the other Party, except as approved in writing in advance
by the disclosing Party, and shall not use or reproduce the disclosing Party’s Confidential Information for any purpose other
than as required to carry out its obligations and exercise its rights pursuant to this Agreement (the “Purpose”).
The Party receiving such Confidential Information (the “Recipient”) agrees to institute measures to protect the
Confidential Information in a manner consistent with the measures it uses to protect its own most sensitive proprietary and
confidential information, which must not be less than a reasonable standard of care. Notwithstanding the foregoing, the Recipient
may permit access to the disclosing Party’s Confidential Information to those of its employees or authorized representatives
having a need to know such information for the Purpose and who have signed confidentiality agreements or are otherwise bound by
confidentiality obligations at least as restrictive as those contained herein. Each Party shall be responsible for the breach of
this Agreement by its employees or authorized representatives. Each Party shall immediately notify the other Party upon discovery of
any loss or unauthorized disclosure of the other Party’s Confidential Information.

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    38

     

    

 

Section 8.2             Exceptions.
The obligations of confidentiality and non-use set forth in Section 8.1 shall not apply to any portion of Confidential
Information that the Recipient or its Affiliates can demonstrate was: (a) known
to the general public at the time of its disclosure to the Recipient or its Affiliates, or thereafter became generally known to the general
public, other than as a result of actions or omissions of the Recipient, its Affiliates, or anyone to whom the Recipient or its Affiliates
disclosed such portion; (b) known by the Recipient or its Affiliates prior to the date of disclosure by the disclosing Party; (c) disclosed
to the Recipient or its Affiliates on an unrestricted basis from a source unrelated to the disclosing Party and not known by the Recipient
or its Affiliates to be under a duty of confidentiality to the disclosing Party; or (d) independently developed by the Recipient
or its Affiliates by personnel that did not use the Confidential Information of the disclosing Party in connection with such development.

 

Section 8.3             Permitted
Disclosures. The obligations of confidentiality and non-use set forth in Section 8.1 shall not apply to the extent that the receiving
Party or its Affiliates: (a) is required to disclose Confidential Information pursuant to: (i) an order of a court of competent
jurisdiction; (ii) Applicable Laws; (iii) regulations or rules of a securities exchange; (iv) requirement of a Governmental
Authority for purposes related to development or commercialization of an Included Product, or (v) the exercise by each Party of its
rights granted to it under this Agreement or its retained rights or as required to perfect Purchaser’s rights under the Transaction
Documents; or (b) discloses such Confidential Information solely on a “need to know basis” to Affiliates, potential or
actual: acquirers, merger partners, licensees, permitted assignees, collaborators (including Licensees), subcontractors, investment bankers,
investors, limited partners, partners, lenders, or other financial partners, and their respective directors, employees, contractors and
agents, or (c) provides a copy of this Agreement or any of the other Transaction Documents to the extent requested by an authorized
representative of a U.S. or foreign tax authority, (d) discloses Confidential Information in response to a routine audit or examination
by, or a blanket document request from, a Governmental Entity; provided that (A) such Third Party or person or entity in subsection
(b) agrees to confidentiality and non-use obligations with respect thereto at least as stringent as those specified for in this Article VIII;
and (B) in the case of (a)(i) through (iv), to the extent permitted by Applicable Law, the Recipient shall provide prior written
notice thereof to the disclosing Party and provide the opportunity for the disclosing Party to review and comment on such required disclosure
and request confidential treatment thereof or a protective order therefor.

 

Section 8.4             Return
of Confidential Information. Each Party shall return or destroy, at the other Party’s instruction, all Confidential Information
of the other Party in its possession upon termination or expiration of this Agreement, or destroy such Confidential Information; provided,
however, that each Party shall be entitled to retain one (1) copy of such Confidential Information of the other Party for legal archival
purposes and/or as may be required by Applicable Law and neither Party shall be required to return, delete or destroy Confidential Information
or any electronic files or any information prepared by such Party that have been backed-up or archived in the ordinary course of business
consistent with past practice.

 

[*]
= Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities
and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

    39

     

    

 

Article IX

INDEMNIFICATION

 

Section 9.1             Indemnification
by the Seller. The Seller agrees to indemnify and hold each of the Purchaser and its Affiliates and any and all of their respective
partners, directors, managers, members, officers, employees, agents and controlling persons (each, a “Purchaser Indemnified Party”)
harmless from and against, and will pay to each Purchaser Indemnified Party the amount of, any and all Losses awarded against or incurred
or suffered by such Purchaser Indemnified Party arising out of (a) any breach of any representation, warranty or certification made
by the Seller in any of the Transaction Documents or certificates given by the Seller to the Purchaser in writing pursuant to this Agreement
or any other Transaction Document, (b) any breach of or default under any covenant or agreement by the Seller to the Purchaser pursuant
to any Transaction Document, (c) any Excluded Liabilities and Obligations and (d) any fees, expenses, costs, liabilities or
other amounts incurred or owed by the Seller to any brokers, financial advisors or comparable other Persons retained or employed by it
in connection with the transactions contemplated by this Agreement; provided, however, that the foregoing shall exclude
any indemnification to any Purchaser Indemnified Party (i) that results from the bad faith or willful misconduct of such Purchaser
Indemnified Party, or (ii) to the extent resulting from acts or omissions of the Seller based upon the written instructions from
any Purchaser Indemnified Party. With respect to indemnification by the Seller pursuant to this Section 9.1, (A) the Seller’s
maximum liability shall not exceed an amount equal to (1) one hundred and ninety five percent (195%) of the Purchase Amount, minus
(2) the aggregate amount collected or received by the Purchaser (and any direct or indirect transferee of the Purchaser to whom
any interest in the Purchased Receivables is transferred) in respect of the Purchased Receivables, minus (3) the aggregate
amount collected or received by the Purchaser (and any direct or indirect transferee of the Purchaser to whom any interest in the Purchased
Receivables is transferred) pursuant to the exercise of its rights under this Section 9.1 (without duplication of any amounts received
pursuant to clause (2)); provided, however, that such limitations on recovery shall not be applicable if the Seller’s indemnification
obligations results from or arises out of the fraud, willful misconduct or gross negligence of Seller.

 

Section 9.2             Indemnification
by the Purchaser. The Purchaser agrees to indemnify and hold each of the Seller and its Affiliates and any and all of their respective
partners, directors, managers, members, officers, employees, agents and controlling Persons (each, a “Seller Indemnified Party”)
harmless from and against, and will pay to each Seller Indemnified Party the amount of, any and all Losses awarded against or incurred
or suffered by such Seller Indemnified Party arising out of (a) any breach of any representation, warranty or certification made
by the Purchaser in any of the Transaction Documents or certificates given by the Purchaser in writing pursuant hereto or thereto, (b) any
breach of or default under any covenant or agreement by the Purchaser pursuant to any Transaction Document and (c) any fees, expenses,
costs, liabilities or other amounts incurred or owed by the Purchaser to any brokers, financial advisors or comparable other Persons retained
or employed by it in connection with the transactions contemplated by this Agreement; provided, however, that the foregoing
shall exclude any indemnification to any Seller Indemnified Party (i) that results from the bad faith or willful misconduct of such
Seller Indemnified Party, (ii) to the extent resulting from acts or omissions of the Purchaser based upon the written instructions
from any Seller Indemnified Party or (iii) for any matter in respect of which any Purchaser Indemnified Party would be entitled to
indemnification under Section 9.1.

 

[*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

 

    40

     

    

 

Section 9.3             Procedures.
If any Third Party Claim shall be brought or alleged against an indemnified party in respect of which indemnity is to be sought
against an indemnifying party pursuant to Section 9.1 or Section 9.2, the indemnified party shall, promptly after receipt
of notice of the commencement of any such Third Party Claim, notify the indemnifying party in writing of the commencement thereof,
enclosing a copy of all papers served, if any; provided, that the omission to so notify such indemnifying party will not
relieve the indemnifying party from any liability that it may have to any indemnified party under Section 9.1 or
Section 9.2 unless, and only to the extent that, the indemnifying party is actually prejudiced by such omission. In the event
that any Third Party Claim is brought against an indemnified party and it notifies the indemnifying party of the commencement
thereof in accordance with this Section 9.3, the indemnifying party will be entitled, at the indemnifying party’s sole
cost and expense, to participate therein and, to the extent that it may wish, to assume the defense thereof, with counsel reasonably
satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the
indemnifying party), and, after notice from the indemnifying party to such indemnified party of its election so to assume the
defense thereof, the indemnifying party will not, subject to the immediately succeeding sentence, be liable to such indemnified
party under this Article IX for any legal or other expenses subsequently incurred by such indemnified party in connection with
the defense thereof other than reasonable costs of investigation. In any such Third Party Claim, an indemnified party shall have the
right to retain its own counsel, but the reasonable fees and expenses of such counsel shall be at the sole cost and expense of such
indemnified party unless (a) the indemnifying party and the indemnified party shall have mutually agreed to the retention of
such counsel, (b) the indemnifying party has assumed the defense of such proceeding and has failed within a reasonable time to
retain counsel reasonably satisfactory to such indemnified party or (c) the named parties to any such Third Party Claim
(including any impleaded parties) include both the indemnifying party and the indemnified party and representation of both parties
by the same counsel would be inappropriate due to actual or potential conflicts of interests between them based on the advice of
counsel to the indemnifying party. It is agreed that the indemnifying party shall not, in connection with any Third Party Claim or
related proceedings in the same jurisdiction, be liable for the reasonable fees and expenses of more than one separate law firm (in
addition to local counsel where necessary) for all such indemnified parties. The indemnifying party shall not be liable for any
settlement of any Third Party Claim effected without its written consent, but, if settled with such consent or if there be a final
judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any Loss by reason of
such settlement or judgment. No indemnifying party shall, without the prior written consent of the indemnified party, effect any
settlement, compromise or discharge of any pending or threatened Third Party Claim in respect of which any indemnified party is or
could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement, compromise
or discharge, as the case may be, (i) includes an unconditional written release of such indemnified party, in form and
substance reasonably satisfactory to the indemnified party, from all liability on claims that are the subject
matter of such claim or proceeding, (ii) does not include any statement as to an admission of fault, culpability or failure to act
by or on behalf of any indemnified party and (iii) does not impose any continuing material obligation or restrictions on such indemnified
party.

 

[*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

 

    41

     

    

 

Section 9.4             Other
Claims. A claim by an indemnified party under this Article IX for any matter not involving a Third Party Claim and in respect
of which such indemnified party seeks indemnification hereunder may be made by delivering, in good faith, a written notice of demand to
the indemnifying party, which notice shall contain (a) a description and the amount of any Losses incurred or suffered or reasonably
expected to be incurred or suffered by the indemnified party, (b) a statement that the indemnified party is entitled to indemnification
under this Article IX for such Losses and a reasonable explanation of the basis therefor, and (c) a demand for payment in the
amount of such Losses. For all purposes of this Section 9.4, the Seller shall be entitled to deliver such notice of demand to the
Purchaser on behalf of the Seller Indemnified Parties, and the Purchaser shall be entitled to deliver such notice of demand to the Seller
on behalf of the Purchaser Indemnified Parties. Within thirty (30) days after receipt by the indemnifying party of any such notice, the
indemnifying party may deliver to the indemnified party that delivered the notice a written response in which the indemnifying party (a) agrees
that the indemnified party is entitled to the full amount of the Losses claimed in the notice from the indemnified party; (b) agrees
that the indemnified party is entitled to part, but not all, of the amount of the Losses claimed in the notice from the indemnified party;
or (c) indicates that the indemnifying party disputes the entire amount of the Losses claimed in the notice from the indemnified
party. If the indemnified party does not receive such a response from the indemnifying party within such thirty (30)-day period, then
the indemnifying party shall be conclusively deemed to have agreed that the indemnified party is entitled to the full amount. If the indemnifying
party and the indemnified party are unable to resolve any dispute relating to any amount of the Losses claimed in the notice from the
indemnified party within thirty (30) days after the delivery of the response to such notice from the indemnifying party, then the parties
shall be entitled to resort to any legal remedy available to such party to resolve such dispute that is provided for in this Agreement,
subject to all the terms, conditions and limitations of this Agreement.

 

Section 9.5             Exclusive
Remedy. Except for any claims for specific performance pursuant to Section 10.2, the indemnification afforded by this Article IX
shall be the sole and exclusive remedy for any and all Losses awarded against or incurred or suffered by the Purchaser Indemnified Parties
against the Seller, and the Seller Indemnified Parties against the Purchaser, as the case may be, in connection with the transactions
contemplated by the Transaction Documents, including with respect to any breach of any representation, warranty or certification made
by a party hereto in any of the Transaction Documents or certificates given by a party hereto in writing pursuant hereto or thereto or
any breach of or default under any covenant or agreement by a party hereto pursuant to any Transaction Document, in each case other than
any breach or default resulting from the fraud or willful misconduct of such party, provided that any action, suit or proceeding brought
with respect to any such claim shall be subject to the monetary limitation on recovery by indemnification pursuant to Section 9.1
(in the aggregate with any other amounts that are subtracted from the Purchase
Amount in determining the monetary limitation on recovery by indemnification pursuant to Section 9.1).

 

[*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

 

    42

     

    

 

Section 9.6             Limitations.
The Purchaser acknowledges and agrees that, other than the representations and warranties of the Seller specifically
contained in Article IV, there are no representations or warranties of the Seller or any other Person either expressed or
implied with respect to the Included Product Payment Amounts, Net Sales, the Patent Rights, the Purchased Receivables, the Included
Product, this Agreement or the transactions contemplated hereby or in any of the other Transaction Documents or otherwise, and that
it does not rely on, and shall have no remedies in respect of, any representation or warranty not specifically set forth in
Article IV. Without limiting the foregoing, the Purchaser acknowledges and agrees that (i) the Purchaser, together with
its Affiliates and their respective representatives, have made their own investigation of the Included Product Payment Amounts, Net
Sales, the Patent Rights, the Purchased Receivables, the Included Product, the creditworthiness of the Seller and its Affiliates,
this Agreement and the transactions contemplated hereby and in the other Transaction Documents and are not relying on, and shall
have no remedies in respect of, any implied warranties or upon any representation or warranty whatsoever (other than any
representation or warranty specifically set forth in Article IV), and (ii) except as expressly set forth in any
representation or warranty in Article IV, the Purchaser shall have no claim or right regarding Losses pursuant to this
Article IX (or otherwise) with respect to any information, documents or materials furnished or made available to the Purchaser
or any of its Affiliates or its or its Affiliates’ representatives in any data room, presentation, interview or in any other
form or manner relating to the transactions contemplated hereby or by any of the other Transaction Documents.

 

Article X

MISCELLANEOUS

 

Section 10.1           Survival.
All representations, warranties and covenants made herein and in any other Transaction Document or any certificate delivered
pursuant to this Agreement shall survive the execution and delivery of this Agreement and the Closing. The rights hereunder to
indemnification and payment of Losses under Article IX or to seek specific performance under Section 10.2 based on such
representations, warranties and covenants shall not be affected by any investigation conducted with respect to, or any knowledge
acquired (or capable of being acquired) at any time (whether before or after the execution and delivery of this Agreement or the
Closing) in respect of the accuracy or inaccuracy of or compliance with, any such representation, warranty or covenant.

 

Section 10.2           Specific
Performance. Each of the Parties hereto acknowledges that the other Party hereto will have no adequate remedy at law if
the other Party fails to perform any of its obligations under any of the Transaction Documents. In such event, each of the Parties
hereto agrees that the other Party hereto shall have the right, in addition to any other rights it may have (whether at law or in
equity), to specific performance of this Agreement without the necessity of posting a bond or proving the inadequacy of monetary
damages as a remedy and to obtain injunctive relief against any breach or threatened breach of the Transaction Documents. The Parties further agree not to assert that a remedy
of specific performance is unenforceable, invalid, contrary to applicable law or inequitable for any reason.

 

[*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

 

    43

     

    

 

Section 10.3           Notices.
All notices, consents, waivers and other communications hereunder shall be in writing and shall be effective (a) upon
receipt when sent through the mails, registered or certified mail, return receipt requested, postage prepaid, with such receipt to
be effective the date of delivery indicated on the return receipt, (b) upon receipt when sent by an overnight courier (costs
prepaid and receipt requested), (c) on the date personally delivered to an authorized officer of the party to which sent or
(d) on the date transmitted by electronic transmission (other than facsimile transmission) with a confirmation of receipt, in
all cases, with a copy emailed to the recipient at the applicable address, addressed to the recipient as follows:

 

if to the Seller, to:

 

Portola Pharmaceuticals, Inc.

270 E. Grand Avenue

South San Francisco, CA 94080

 

Attention: [*]

Telephone: [*]

Email: [*]

 

with a copy to (which shall not constitute notice):

 

Cooley LLP

3175 Hanover St.

Palo Alto, CA 94304

 

Attention: Robert Jones

Telephone: [*]

Email: [*]

 

if to the Purchaser, to:

 

HealthCare Royalty Management, LLC

on behalf of each entity constituting the Purchaser

300 Atlantic Street, Suite 600

Stamford, CT 06901

Attention: [*]

[*]

 

Email: [*]

 

[*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

 

    44

     

    

 

With a copy (which shall not constitute notice) to:

 

HealthCare Royalty Management, LLC

on behalf of each entity constituting the Purchaser

300 Atlantic Street, Suite 600

Stamford, CT 06901

Attention: Chief Legal Officer

Email: [*]

 

with a copy (which shall not constitute notice) to:

 

Cadwalader, Wickersham & Taft LLP

200 Liberty Street

New York, New York 10281

Attn: Ira J. Schacter

E-mail: [*]

 

Each Party hereto may, by notice given in accordance
herewith to the other Party hereto, designate any further or different address to which subsequent notices, consents, waivers and other
communications shall be sent.

 

Section 10.4           Successors
and Assigns.

 

(a)           The
provisions of this Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and
permitted assigns. The Seller shall not be entitled to assign any of its obligations and rights under this Agreement without the prior
written consent of the Purchaser; provided that the Seller may, without the consent of the Purchaser, assign any of its obligations or
rights under this Agreement to any (a) Affiliate receiving an assignment of the right to Exploit or Commercialize the Included Product
and receive underlying Net Sales generating Purchased Receivables; provided that the Seller continues to be liable for all of its
obligations under this Agreement or (b) any other Person with which it may merge or consolidate or to which it may sell all or substantially
all of its assets or all or substantially of its assets related to the Included Product, provided that with respect to clause (a) or
(b), the assignee under any such assignment agrees to be bound by the terms of the Transaction Documents and furnishes a written agreement
to such effect to the Purchaser. The Purchaser may assign any of its obligations and rights hereunder without restriction to any entity
or entities other than a Competitor; provided that the obligations of Seller pursuant to Articles III and VI shall remain solely obligations
to Purchaser unless Purchaser has assigned the entirety to its obligations and rights hereunder to a single Person. The Purchaser shall
give notice of any such assignment to the Seller promptly after the occurrence thereof. The Seller shall be under no obligation to reaffirm
any representations, warranties or covenants made in this Agreement or any of the other Transaction Documents. Any purported assignment
of rights or obligations in violation of this Section 10.4 will be void.

 

[*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

 

    45

     

    

 

Section 10.5                    Independent
Nature of Relationship. The relationship between the Seller and the Purchaser is solely that of seller and purchaser, and neither
the Seller nor the Purchaser has any fiduciary or other special relationship with the other Party hereto or any of its Affiliates. Nothing
contained herein or in any other Transaction Document shall be deemed to constitute the Seller and the Purchaser as a partnership, an
association, a joint venture or any other kind of entity or legal form. The Parties agree that they shall not take any inconsistent position
with respect to such treatment in a filing with any Governmental Authority.

 

Section 10.6                    Entire
Agreement. This Agreement, together with the Exhibits hereto (which are incorporated herein by reference) and the other Transaction
Documents, constitute the entire agreement between the Parties hereto with respect to the subject matter hereof and supersede all prior
agreements, understandings and negotiations, both written and oral, between the Parties hereto with respect to the subject matter of this
Agreement. No representation, inducement, promise, understanding, condition or warranty not set forth herein (or in the Exhibits hereto
or the other Transaction Documents) has been made or relied upon by either Party hereto.

 

Section 10.7                    Governing
Law.

 

(a)            THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL SUBSTANTIVE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE
TO THE RULES THEREOF RELATING TO CONFLICTS OF LAW OR CHOICE OF FORUM OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS
LAW OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
SUCH LAWS.

 

(a)            Each
of the Parties hereto hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of the
Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of
New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement, or for recognition
or enforcement of any judgment, and each of the Parties hereto hereby irrevocably and unconditionally agrees that all claims in respect
of any such action or proceeding may be heard and determined in such New York State court or, to the extent permitted by Applicable Law,
in such federal court. Each of the Parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Applicable Law.

 

(b)            Each
of the Parties hereto hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection
that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement
in any court referred to in Section 10.7(b). Each of the Parties hereto hereby irrevocably waives, to the fullest extent permitted
by Applicable Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

 

[*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

 

    46 

     

    

 

(c)            Each
of the Parties hereto irrevocably consents to service of process in the manner provided for notices in Section 10.3.
Nothing in this Agreement will affect the right of any Party hereto to serve process in any other manner permitted by Applicable
Law. Each of the Parties hereto waives personal service of any summons, complaint or other process, which may be made by any other
means permitted by New York law.

 

Section 10.8           
        Waiver of Jury Trial. EACH PARTY HERETO HEREBY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER
BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE
OTHER PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE OTHER PARTY HERETO WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HERETO HAVE BEEN INDUCED TO ENTER INTO
THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 10.8.

 

Section 10.9                    Severability.
If one or more provisions of this Agreement are held to be invalid, illegal or unenforceable by a court of competent
jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement, which shall
remain in full force and effect, and the Parties hereto shall replace such invalid, illegal or unenforceable provision with a new
provision permitted by Applicable Law and having an economic effect as close as possible to the invalid, illegal or unenforceable
provision. Any provision of this Agreement held invalid, illegal or unenforceable only in part or degree by a court of competent
jurisdiction shall remain in full force and effect to the extent not held invalid, illegal or unenforceable.

 

Section 10.10                  Counterparts.
This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if
the signatures thereto and hereto were upon the same instrument. This Agreement shall become effective when each Party hereto shall
have received a counterpart hereof signed by the other Party hereto. Any counterpart may be executed by facsimile or other
electronic transmission, and such facsimile or other electronic transmission shall be deemed an original.

 

Section 10.11                  Amendments;
No Waivers. Neither this Agreement nor any term or provision hereof may be amended, supplemented, restated, waived,
changed or modified except with the written consent of the Parties hereto. No failure or delay by either Party hereto in exercising
any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude
any other or further exercise thereof or the exercise of any other right, power or privilege. No notice to or demand on either Party
hereto in any case shall entitle it to any notice or demand in similar or other circumstances. No waiver or approval hereunder
shall, except as may otherwise be stated in such waiver or approval, be applicable to subsequent transactions. No waiver or approval
hereunder shall require any similar or dissimilar waiver or approval thereafter to be granted hereunder.
The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by Applicable Law.

 

[*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

 

    47 

     

    

 

Section 10.12                  No
Third Party Rights. Other than the Parties, no Person will have any legal or equitable right, remedy or claim under or with respect
to this Agreement. This Agreement may be amended or terminated, and any provision of this Agreement may be waived, without the consent
of any Person who is not a Party. The Seller shall enforce any legal or equitable right, remedy or claim under or with respect to this
Agreement for the benefit of the Seller Indemnified Parties and the Purchaser shall enforce any legal or equitable right, remedy or claim
under or with respect to this Agreement for the benefit of the Purchaser Indemnified Parties.

 

Section 10.13                  Table
of Contents and Headings. The Table of Contents and headings of the Articles and Sections of this Agreement have been inserted for
convenience of reference only, are not to be considered a part hereof and shall in no way modify or restrict any of the terms or provisions
hereof.

 

{SIGNATURE PAGE FOLLOWS}

 

[*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

 

    48

     

    

 

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the day and year first written above.

 

	 	PORTOLA PHARMACEUTICALS, INC.
	 	 
	 	By:	 /s/ William Lis
	 	 	Name: William Lis
	 	 	Title: Chief Executive Officer
	 	 
	 	HEALTHCARE ROYALTY PARTNERS III, L.P.
	 	 
	 	By:
HealthCare Royalty GP III, LLC,
	 	its general partner
	 	 
	 	By:	 /s/ Clark B. Futch
	 	 	Name: Clark B. Futch
	 	 	Title: Authorized Representative
	 	 
	 	HEALTHCARE ROYALTY PARTNERS II, L.P.
	 	 
	 	By:
HealthCare Royalty GP II, LLC,
	 	its general partner
	 	 
	 	By:	 /s/ Clark B. Futch
	 	 	Name: Clark B. Futch
	 	 	Title: Authorized Representative HCRP OVERFLOW FUND, L.P.
	 	 
	 	By:
HCRP Overflow Fund GP, LLC,
	 	its general partner
	 	 
	 	By:	 /s/ Clark B. Futch
	 	 	Name: Clark B. Futch
	 	 	Title: Authorized Representative
	 	 
	 	MOLAG HEALTHCARE ROYALTY, LLC
	 	 
	 	By:
HCRP MGS Account Management, LLC,
	 	its general partner
	 	 
	 	By:	 /s/ Clark B. Futch
	 	 	Name: Clark B. Futch
	 	 	Title: Authorized Representative

 

[*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

    

     

    

 

SCHEDULE 1.1

 

KNOWLEDGE PERSONS

 

[*]

 

[*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

    

     

    

 

SCHEDULE 4.11

PATENT RIGHTS

 

[*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

    

     

    

 

	Portola Ref.

 No.	Country	Status	Application No.	Filing Date	Patent No.	Patent Issue

 Date	Status	Projected 

Term	Owner
	[*]	[*]	[*]	[*]	[*]	[*]	[*]	[*]	[*]	[*]

 

[*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

    

     

    

 

SCHEDULE 4.14(A)

 

MATERIAL CONTRACTS

 

[*]

 

[*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

    

     

    

 

EXHIBIT A

 

FORM OF BILL OF SALE

 

This BILL OF SALE is dated
as of February 2, 2017 (the “Closing Date”) by Portola Pharmaceuticals, Inc., a Delaware corporation (the
 “Seller”), in favor of HealthCare Royalty Partners III, L.P., a Delaware limited partnership; HealthCare Royalty Partners
II, L.P., a Delaware limited partnership; HCRP Overflow Fund, L.P., a Delaware limited partnership; and MOLAG Healthcare Royalty, LLC,
a Delaware limited liability company (collectively, the “Purchaser”).

 

RECITALS

 

WHEREAS, the Seller and the
Purchaser are parties to that certain Purchase and Sale Agreement, dated as of the Closing Date (the “Agreement”),
pursuant to which, among other things, the Seller agrees to sell, assign, transfer, convey and grant to the Purchaser, and the Purchaser
agrees to purchase, acquire and accept from the Seller, all of the Seller’s right, title and interest in, to and under the Purchased
Receivables, for the consideration described in the Agreement; and

 

WHEREAS, the parties hereto
now desire to carry out the purposes of the Agreement by the execution and delivery of this instrument evidencing the Purchaser’s
purchase, acquisition and acceptance of the Purchased Receivables;

 

NOW, THEREFORE, in consideration
of the premises and the mutual agreements set forth in the Agreement and of other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the parties hereto agree as follows:

 

		1.	The Seller, by this Bill of Sale, does hereby sell, assign, transfer, convey and grant to the Purchaser, and the Purchaser does hereby
purchase, acquire and accept, the Purchased Receivables.

 

		2.	The parties hereto acknowledge that the Purchaser is not assuming any of the Excluded Liabilities and Obligations.

 

		3.	This Bill of Sale (i) is made pursuant to, and is subject to the terms of, the Agreement and (ii) shall
be binding upon and inure to the benefit of the Seller, the Purchaser and their respective successors and permitted assigns, for the uses
and purposes set forth and referred to above, effective immediately upon its delivery to the Purchaser.

 

		4.	THIS BILL OF SALE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL SUBSTANTIVE LAWS
OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE RULES THEREOF RELATING TO CONFLICTS OF LAW OR CHOICE OF FORUM OTHER THAN SECTIONS 5-1401
AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, AND THE OBLIGATIONS,
RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

[*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

    

     

    

 

		5.	This Bill of Sale may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but
all of such counterparts shall together constitute but one and the same instrument.

 

		6.	The following terms as used herein shall have the following respective meanings:

 

“Affiliate”
means, with respect to any Person, any other Person that, directly or indirectly, controls, is controlled by or is under common control
with such Person. For purposes of this definition, “control” of a Person means the possession, directly or indirectly,
of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of securities
entitled to elect the board of directors or management board, by contract or otherwise, and the terms “controlled”
and “controlling” have meanings correlative to the foregoing.

 

“Annual Net Sales”
means, with respect to any Calendar Year, the aggregate amount of worldwide Net Sales in the Territory for that Calendar Year.

 

“Applicable Law”
means, with respect to any Person, all laws, rules, regulations and orders of Governmental Authorities applicable to such Person or any
of its properties or assets.

 

[*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

    

     

    

 

“Applicable Tiered
Percentage” means the percentage based on the applicable portion of Annual Net Sales and the Purchase Amount, as set forth in
the chart below, and calculated as follows: (a) with respect to a Purchase Amount pursuant to Section 2.2(a) only, the
percentage set forth in the applicable row of column 1, or (b) with respect to a Purchase Amount pursuant to both Section 2.2(a) and
Section 2.2(b) of the Agreement, the sum of (i) the percentage set forth in the applicable row of column 1, plus (ii) the
percentage set forth in the applicable row of column 2:

 

	Royalty Tiers based on Annual Net Sales	1. If the Purchase Amount is Pursuant to 

Section 2.2(a) of the Agreement Only	2. If the Purchase Amount is Pursuant to Section 2.2 (b) of the Agreement, Add to Column 1:
	 	 	 
	A.Portion of Annual Net Sales less than or equal to $150,000,000	2.0%	5.85%
	B.Portion of Annual Net Sales exceeding $150,000,000 and less than or equal to $[*]	2.0%	[*]%
	C.Portion of Annual Net Sales in excess of $[*]	2.0%	1.58%

 

 

provided that as illustrated
in the financial analysis separately provided and agreed to by the Parties, (a) if the Approval Condition has not been satisfied
before [*] then each of the percentages set forth in the applicable rows of column 1 shall be increased by [*]% for each Calendar Quarter,
starting with [*], until the Approval Condition has been satisfied and, in addition, (b) if the Manufacturing Approval Condition
has not been satisfied before October 1, 2018, then each of the percentages set forth in the applicable row of column 1 shall be
increased by [*] for each Calendar Quarter starting with [*], until [*].

 

“Approval Conditions”
means either (a) the satisfaction of the condition set forth on Exhibit D of the Agreement, or (b) the receipt from
the EMA of Marketing Authorization for the Included Product.

 

“Calendar Quarter”
means, for the first calendar quarter, the period beginning on the Closing Date and ending on the last day of the calendar quarter in
which the Closing Date falls, and thereafter each successive period of three (3) consecutive calendar months ending on March 31,
June 30, September 30 or December 31.

 

“Calendar Year”
means (a) for the first such Calendar Year the period beginning on First Commercial Sale of the Included Product and ending on December 31
of the year in which such First Commercial Sale occurs, (b) for each year of the Term thereafter, each successive period beginning
on January 1 and ending twelve (12) consecutive calendar months later on December  31, and (c) for the last year of the Term, the period beginning on January 1
of the year in which the Agreement expires or terminates and ending on the effective date of expiration or termination of the Agreement.

 

[*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

    

     

    

 

“Combination Product”
means an Included Product that is comprised of or contains the Compound in addition to one or more additional active ingredients (whether
co-formulated or co-packaged) that are neither the Compound nor generic or other non-proprietary compositions of matter. Pharmaceutical
dosage form vehicles, adjuvants and excipients shall be deemed not to be “active ingredients”.

 

“Compound” means andexanet alfa, a modified
human fXa protein [*].

 

“Dollar” or the sign “$” means
United States dollars.

 

“EMA” means the European Medicines Agency
or any successor agency or authority thereto.

 

“Excluded Liabilities and Obligations”
has the meaning set forth in Section 2.3 of the Agreement.

 

“FDA” means the U.S. Food and Drug Administration
or any successor agency or authority thereto.

 

“First Commercial
Sale” means, with respect to the Included Product in the Territory, the first arm’s-length sale, transfer or disposition
for value to a Third Party of the Included Product in any country in the Territory after Marketing Authorization for the Included Product
has been obtained in such country; provided, that, the following shall not constitute a First Commercial Sale: (a) any sale to an
Affiliate or Licensee unless the Affiliate or Licensee is the ultimate end user of the Included Product or (b) any use of the Included
Product in clinical trials, pre-clinical studies or other research or development activities, or disposal or transfer of the Included
Product for a bona fide charitable purpose.

 

“GAAP”
means generally accepted accounting principles in effect as the standard financial accounting guidelines in the United States from time
to time (consistently applied and on a basis consistent with the accounting policies, practices, procedures, valuation methods and principles
used in preparing the Seller’s financial statements), and any successor thereto. For clarity, to the extent a transition in generally
accepted accounting principles would substantively change the recognition of revenue with respect to Net Sales (as currently defined)
and its calculation as set forth in the Agreement, then the Parties shall meet and discuss in good faith an adjustment payment and amendment
to the definitions hereunder to address the changes in accounting principles affecting the calculation of the Purchased Receivables.

 

“Governmental Authority”
means the government of the United States, any other nation or any political subdivision thereof, whether state or local, and any agency,
authority (including supranational authority), commission, instrumentality, regulatory body, court, central bank or other Person exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government,
including each Patent Office, the FDA and any other government authority in any jurisdiction.

 

[*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

    

     

    

 

“Included Product”
means any pharmaceutical or biological composition containing the Compound, including the product currently trademarked in the United
States as AndexXaTM. For clarity, references in this Bill of Sale to “an” Included Product or to “the” Included
Product refer to any Included Product.

 

“Included Product
Payment Amount” means, for each Calendar Quarter, an amount equal to the Applicable Tiered Percentage multiplied by the Quarterly
Net Sales for such Calendar Quarter. For clarity, the Applicable Tiered Percentage used to calculate the Included Product Payment Amount
for a given Calendar Quarter will be based on the aggregate Net Sales in the Territory billed or invoiced in such Calendar Quarter and
all prior Calendar Quarters in the applicable Calendar Year. Notwithstanding the foregoing, on a country-by-country basis, if, in any
given Calendar Quarter, (a) there is no Valid Claim in such country (a “Non-Patent Right Country”) where Net Sales
are being made by a Licensee (and not by Portola or any Affiliate), and (b) the Licensee Net Sales Percentage applicable to the Quarterly
Net Sales of the Included Product in such Non-Patent Right Country is less than the Applicable Tiered Percentage on Quarterly Net Sales
in countries in which a Valid Claim exists, then the Included Product Payment Amount payable on Quarterly Net Sales for such Non-Patent
Right Country shall be an amount equal to the Licensee Net Sales Percentage multiplied by the Quarterly Net Sales in such Non-Patent Right
Country, solely during such Calendar Quarters in which the foregoing subsection (b) applies. Illustrative calculations for the Included
Product Payment Amount have been separately provided and agreed to by the Parties.

 

“Indebtedness”
of any Person means (a) any obligation of such Person for borrowed money, (b) any obligation of such Person evidenced by a bond,
debenture, note or other similar instrument, (c) any obligation of such Person to pay the deferred purchase price of property or
services (except (i) trade accounts payable that arise in the ordinary course of business, (ii) payroll liabilities and deferred
compensation, and (iii) any purchase price adjustment, royalty, earnout, milestone payments, contingent payment or deferred payment
of a similar nature incurred in connection with any license, lease, contract research and clinic trial arrangements or acquisition), (d) any
obligation of such Person as lessee under a capital lease (under GAAP as in effect on the date hereof), (e) any obligation of such
Person to purchase securities or other property that arises out of or in connection with the sale of the same or substantially similar
securities or property, (f) any non-contingent obligation of such Person to reimburse any other Person in respect of amounts paid
under a letter of credit or other guaranty issued by such other Person, (g) any Indebtedness of others secured by a Lien on any asset
of such Person and (i) any Indebtedness of others guaranteed by such Person; provided that intercompany loans among the Seller and
its Affiliates shall not constitute Indebtedness.

 

“Licensee”
means, with respect to the Included Product, a Third Party to whom the Seller or any Affiliate of the Seller has granted a license or
sublicense (or any Third Party to whom any such Third Party has granted a license or sublicense) to develop, have developed, make, have
made, seek Regulatory Approvals for, distribute, use, have used, import, sell, offer to sell, have sold or otherwise Commercialize such
Included Product. As used in this Bill of Sale, “Licensee” includes any Third Party to whom the Seller or
any Affiliate of the Seller has granted the right (or any Third Party to whom any such Third Party has granted the right) to distribute
the Included Product provided that the applicable Third Party that has been granted such right has the right to conduct, or the responsibility
for, active sales force promotion of such Included Product anywhere within its distribution territory.

 

[*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

    

     

    

 

“Licensee Net Sales
Percentage” means, with respect to a given Licensee, the portion (expressed as a percentage) of Net Sales of Included Product
by such Licensee (or its Affiliates or sublicensees) payable to Seller or its Affiliates by Licensee by way of royalty payments under
the terms of the license or sublicense granting rights in the Included Product to such Licensee.

 

“Lien”
means any security interest, mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or otherwise),
charge against or interest in property or other priority or preferential arrangement of any kind or nature whatsoever, in each case to
secure payment of a debt or performance of an obligation, including any conditional sale or any sale with recourse.

 

“Manufacturing Approval
Condition” means FDA approval of the Included Product developed pursuant to the agreement identified as number 2 on Schedule
4.14(a) of the Agreement.

 

“Marketing Authorization”
means, with respect to the Included Product, the Regulatory Approval required by Applicable Law to sell the Included Product in a country
or region, including, to the extent required by Applicable Law for the sale of the Included Product, all pricing approvals and government
reimbursement approvals.

 

“Net Sales”
means, with respect to the Included Product the gross amount billed or invoiced or otherwise recognized as revenue by the Seller in accordance
with GAAP in respect of sales or other dispositions of the Included Product in the Territory by the Seller, its Affiliates or Licensees
(or any permitted assignee or transferee hereunder) (but not including sales to an Affiliate or Licensee unless the Affiliate or Licensee
is the ultimate end user of the Included Product), less the following deductions to the extent included in the gross amount billed or
invoiced in respect of sales or other dispositions of the Included Product or otherwise recognized as revenue by the Seller in accordance
with GAAP: (a) credits or allowances actually granted for damaged products, returns or rejections of Included Products, or for retroactive
price reductions and billing errors; (b) normal and customary trade and quantity discounts, allowances and credits (including chargebacks);
(c) excise taxes, sales taxes, duties, VAT taxes and other taxes to the extent imposed upon and paid directly with respect to the
sales price, and a pro rata portion of pharmaceutical excise taxes imposed on sales of pharmaceutical products as a whole and not specific
to Included Products (such as those imposed by the U.S. Patient Protection and Affordable Care Act of 2010, Pub. L. No. 111-148,
as amended) (and excluding in each case national or local taxes based on income); (d) freight, postage, shipping and shipping insurance
expense and other transportation charges directly related to the distribution of the Included Product; (e) distribution services
agreement fees and other similar amounts allowed or paid to Third Party distributors, including specialty distributors of the Included
Product; (f) rebates made with respect to sales paid for by any Governmental Authority, their agencies and purchasers and reimbursers, managed health care organizations,
or to trade customers; (g) the portion of administrative fees paid during the relevant time period to group purchasing organizations
or pharmaceutical benefit managers relating to the Included Product; (h) any invoiced amounts that are not collected by the Seller,
its Affiliates or Licensees, including bad debts; and (i) any customary or similar payments to the foregoing (a) – (h) that
apply to the sale or disposition of pharmaceutical products.

 

[*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

    

     

    

 

In the event that the Included
Product is sold as part of a Combination Product, then Net Sales for such Combination Product, for the purposes of determining the applicable
Included Product Payment Amounts and Purchased Receivables, respectively, to be paid, shall be calculated by multiplying the Net Sales
of the Combination Product by the fraction: A divided by (A+B), in which A is the average selling price of the Included Product sold in
substantial quantities comprising the Compound as the sole therapeutically active ingredient in the applicable country, and B is the average
selling price of any product that is sold separately in substantial quantities comprising the other therapeutically active ingredients
in such country, in each case during the accounting period in which the sales of the Combination Product were made, or if no sales of
such Included Product or product comprising the other therapeutically active ingredients occurred during such period, then such average
selling prices as sold during the most recent accounting period in which such sales did occur in such country.

 

If the Included Product contained
in such Combination Product is not sold separately in finished form in such country, the Seller and the Purchaser shall determine Net
Sales for such Included Product by mutual agreement based on the relative contribution of such Included Product and each such other active
ingredient in such Combination Product in accordance with the above formula, and shall take into account in good faith any applicable
allocations and calculations that may have been made for the same period in other countries.

 

“Patent”
means any pending (including pursuant to a patent application) or issued patent or continuation, continuation in part, division, extension
or reissue thereof, in any country in the world.

 

“Patent Office”
means the applicable patent office, including the United States Patent and Trademark Office and any comparable foreign patent office,
for any Patents.

 

“Patent Rights” means any Patents that
are owned or controlled by the Seller that claim or cover the Included Product.

 

“Payment Term”
means the time period commencing on the date of the First Commercial Sale of the Included Product anywhere in any country in the Territory
and expiring on the date upon which the Purchaser has received cash payments in respect of the Purchased Receivables totaling, in the
aggregate, one hundred ninety-five percent (195%) of the Purchase Amount, or to the extent that Purchaser’s rights with respect
to the Subsequent Closing are terminated pursuant to Section 7.2(b) of the Agreement, [*].

 

[*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

    

     

    

 

“Person”
means any natural person, firm, corporation, limited liability company, partnership, joint venture, association, joint-stock company,
trust, unincorporated organization, Governmental Authority or any other legal entity, including public bodies, whether acting in an individual,
fiduciary or other capacity.

 

“Purchase Amount” has the meaning set
forth in Section 2.2 of the Agreement.

 

“Purchased Receivables”
means all of the Seller’s rights, title and interest in and to, free and clear of any and all Liens, that portion of account and
royalty receivables arising out of sales of the Included Product in the United States in an amount equal to the Included Product Payment
Amount for each Calendar Quarter during the Payment Term.

 

“Quarterly Net Sales”
means, with respect to any Calendar Quarter, the aggregate amount of Net Sales in the Territory for that Calendar Quarter.

 

“Regulatory Agency”
means a Governmental Authority with responsibility for the approval of the marketing and sale of pharmaceuticals or other regulation of
pharmaceuticals in any jurisdiction.

 

“Regulatory Approvals”
means, collectively, all regulatory approvals, registrations, certificates, authorizations, permits and supplements thereto, as well as
associated materials (including the product dossier) pursuant to which the Included Product may be marketed, sold and distributed in a
jurisdiction, issued by the appropriate Regulatory Agency.

 

“Territory” means worldwide.

 

“U.S.”
or “United States” means the United States of America, its 50 states, each territory and possession thereof and the
District of Columbia.

 

“Valid Claim”
means, solely with respect to Patents that claim or cover the manufacture, use, sale, offer for sale or import of the Included Product:
(a) an issued claim of any issued Patent owned or controlled by the Seller that has not expired, or been revoked, cancelled, become
abandoned or disclaimed, been declared invalid and/or unenforceable by a Patent Office or a decision or judgment of a court or other appropriate
body of competent jurisdiction; and (b) a claim included in a pending Patent application that is being prosecuted in good faith and
that has not been cancelled, withdrawn from consideration, finally determined to be unallowable by the Patent Office or applicable Governmental
Authority (from which no appeal is or can be taken), or abandoned or disclaimed; provided, however, that, if a claim of a Patent application
has been pending for more than five (5) years, such claim will not constitute a Valid Claim for the purposes of the Agreement unless
and until a Patent issues with such claim; provided, further, that, for purposes of the foregoing proviso, any newly filed claim which
claims essentially the same subject matter as any earlier filed claim shall be considered pending for the same period of time as such
earlier filed claim has been pending.

 

[*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

    

     

    

 

IN WITNESS WHEREOF, the parties hereto have executed
this Bill of Sale as of the day and year first written above.

 

	 	PORTOLA PHARMACEUTICALS, INC.
	 	 
	 	By: 	/s/ William
    Lis
	 	 	Name: William Lis
	 	 	Title: Chief Executive Officer
	 	 
	 	HEALTHCARE ROYALTY PARTNERS III, L.P.
	 	 
	 	By:
HealthCare Royalty GP III, LLC,
	 	its general partner
	 	 
	 	By: 	/s/ Clark
    B. Futch
	 	 	Name: Clark B. Futch
	 	 	Title: Authorized Representative
	 	 
	 	HEALTHCARE ROYALTY PARTNERS II, L.P.
	 	 
	 	By:
HealthCare Royalty GP II, LLC,
	 	its general partner
	 	 
	 	By: 	/s/ Clark
    B. Futch
	 	 	Name: Clark B. Futch
	 	 	Title: Authorized Representative HCRP OVERFLOW FUND, L.P.
	 	 
	 	By:
HCRP Overflow Fund GP, LLC,
	 	its general partner
	 	 
	 	By:	 /s/ Clark B. Futch
	 	 	Name: Clark B. Futch
	 	 	Title: Authorized Representative
	 	 
	 	MOLAG HEALTHCARE ROYALTY, LLC
	 	 
	 	By:
HCRP MGS Account Management, LLC,
	 	its general partner
	 	 
	 	By: 	/s/ Clark
    B. Futch
	 	 	Name: Clark B. Futch
	 	 	Title: Authorized Representative

 

[*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

    

     

    

 

EXHIBIT B

 

FORM OF PRESS RELEASE

 

Portola Pharmaceuticals Signs $150 Million Royalty
Agreement with HealthCare Royalty Partners for Development and

Commercialization of Andexanet Alfa

 

SOUTH SAN FRANCISCO, Calif., Feb. 03, 2017
(GLOBE NEWSWIRE) -- Portola Pharmaceuticals, Inc.®(Nasdaq:PTLA) today announced that it has signed a $150 million royalty agreement
with HealthCare Royalty Partners (HCR). Under the terms of the agreement, Portola received $50 million at closing and may receive an additional
$100 million upon U.S. Food and Drug Administration (FDA) approval of AndexXaTM (andexanet alfa) in exchange for a tiered, mid-single-digit
royalty based on worldwide sales of the agent. The agreement is subject to a maximum total royalty payment of 195 percent of the $150
million funded by HCR, at which time the agreement would expire.

 

“We are looking forward to partnering with
HCR on this financing, which will provide us with capital to fund our operations in a non-dilutive manner and successfully launch this
potentially life-saving agent for the benefit of tens of thousands of patients,” said Bill Lis, chief executive officer of Portola.

 

“We are very pleased to partner with Portola
to help fund the development and commercialization of andexanet alfa. Once approved, it will be the first antidote available for the increasing
number of patients admitted to the hospital with a major bleeding episode who currently have no options to reverse the effect of anticoagulation,”
said Dr. Warren Cooper, chief medical officer and managing director at HCR.

 

Clarke Futch, managing partner and chairman of
HCR’s Investment Committee added, “This transaction provides capital to Portola to further the development and commercialization
of andexanet alfa, which we believe will have a significant impact on the lives of affected patients.”

 

Portola will use the proceeds for continued clinical
and regulatory activities and for planned development and commercialization of andexanet alfa, an FDA-designated Breakthrough Therapy.
Andexanet alfa is in development as a potential antidote for Factor Xa inhibitors. Portola received a Complete Response Letter from the
FDA regarding its Biologics License Application for andexanet alfa in August 2016, and expects to resubmit the application in the
first half of 2017. In the EU, the European Medicines Agency is reviewing the Marketing Authorization Application for andexanet alfa.

 

About HealthCare Royalty Partners

 

HCR is a private investment firm that purchases
royalties and uses debt-like structures to invest in commercial or near-commercial stage life science assets. HCR has $3.4 billion in
cumulative capital commitments with offices in Stamford (CT), San Francisco and Boston. Over the past decade, HCR's senior professionals
have completed more than 60 healthcare investments. For more information, visit www.healthcareroyalty.com.

 

[*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

    

     

    

 

About Portola Pharmaceuticals, Inc.

 

Portola Pharmaceuticals is a biopharmaceutical
company developing product candidates that could significantly advance the fields of thrombosis and other hematologic diseases. The Company
is advancing three programs, including betrixaban, an oral, once-daily Factor Xa inhibitor; AndexXaTM (andexanet alfa), a
recombinant protein designed to reverse the anticoagulant effect in patients treated with an oral or injectable Factor Xa inhibitor;
and cerdulatinib, a Syk/JAK inhibitor in development to treat hematologic cancers. Portola's partnered program is focused on developing
selective Syk inhibitors for inflammatory conditions. For more information, visit www.portola.com and follow the Company on Twitter
@Portola_Pharma.

 

Forward-looking Statements

 

Statements contained in this press release regarding
matters that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed
or implied by such forward-looking statements. Such statements include, but are not limited to, statements regarding development of our
product candidates, our regulatory applications and estimated timelines associated therewith. Risks that contribute to the uncertain nature
of the forward-looking statements include: failure to obtain regulatory approval for one or more of our product candidates, failure to
achieve U.S. FDA approval in a timely and sufficient manner to receive the additional $100 million in funding from HCR, whether or not
there will be sales of or royalties on andexanet alfa, our belief that the funds will be sufficient to fund our operations, our expectation
that we will incur losses for the foreseeable future and needs for additional funds to commercialize one or more of our product candidates;
the results of our clinical trials related to the efficacy and safety of our product candidates; our potential inability to manufacture
our product candidates on a commercial scale in a timely or cost-efficient manner; the accuracy of our estimates regarding expenses and
capital requirements; regulatory developments in the United States and foreign countries; our ability to obtain and maintain intellectual
property protection for our product candidates; and our ability to retain key scientific or management personnel. These and other risks
and uncertainties are described more fully in our most recent filings with the Securities and Exchange Commission, including our most
recent quarterly report on Form 10-Q, which was filed on November 7, 2016. All forward-looking statements contained in this
press release speak only as of the date on which they were made. We undertake no obligation to update such statements to reflect events
that occur or circumstances that exist after the date on which they were made.

 

[*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

    

     

    

 

EXHIBIT C

 

BASIC INTERCREDITOR TERMS

 

[*]

 

[*] = Certain confidential information contained in this document,
marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of
the Securities Exchange Act of 1934, as amended.

    

     

    

 

EXHIBIT D

 

SECOND CLOSING CONDITION

 

1.            First
Regulatory Approval of a Biologics License Application by the FDA for the Included Product.

 

[*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

    

     

    

 

ANNEX I

 

PURCHASER ENTITIES

 

1.     HealthCare
Royalty Partners III, L.P., a Delaware limited partnership

 

2.     HealthCare
Royalty Partners II, L.P., a Delaware limited partnership

 

3.     HCRP
Overflow Fund, L.P., a Delaware limited partnership

 

4.     MOLAG
Healthcare Royalty, LLC, a Delaware limited liability company

 

[*] = Certain confidential information contained in this document,
marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of
the Securities Exchange Act of 1934, as amended.Exhibit 10.10

 

CONFIDENTIAL MATERIAL OMITTED AND FILED
SEPARATELY

WITH THE SECURITIES AND EXCHANGE COMMISSION.

DOUBLE ASTERISKS DENOTE SUCH OMISSIONS.

 

ROYALTY INTEREST ACQUISITION AGREEMENT

 

 

 

Dated as of April 22, 2016

 

 

between

 

 

Aviragen Therapeutics, Inc.,

Biota Scientific Management
Pty. Ltd. and

Biota Holdings Pty Ltd

 

 

and

 

 

HealthCare Royalty Partners III, L.P.

 

     

     

    

 

TABLE OF CONTENTS

 

Page

 

	Article I.
	 	 	 
	DEFINITIONS
	 	 	 
	Section 1.01	Definitions.	1
	Section 1.02	Currency.	11
	 	 	 
	Article II.
	 	 	 
	SALE AND ASSIGNMENT
	 	 	 
	Section 2.01	Sale and Assignment.	11
	Section 2.02	Royalty Interest Payments.	11
	Section 2.03	Closing Payment.	11
	Section 2.04	No Assumption.	12
	 	 	 
	Article III.
	 	 	 
	REPRESENTATIONS AND WARRANTIES OF SELLERS
	 	 	 
	Section 3.01	Organization.	12
	Section 3.02	Authorizations; Enforceability.	12
	Section 3.03	Litigation.	12
	Section 3.04	Compliance with Laws.	13
	Section 3.05	Conflicts.	13
	Section 3.06	Ownership.	13
	Section 3.07	Subordination.	14
	Section 3.08	License Agreements.	14
	Section 3.09	Net Sales.	15
	Section 3.10	Broker’s Fees.	15
	Section 3.11	Information.	16
	Section 3.12	Insolvency Event; Material Adverse Effect.	16
	Section 3.13	Patent Rights.	16
	Section 3.14	Exploitation; Material Information.	17
	Section 3.15	Taxes.	17
	 	 	 
	Article IV.
	 	 	 
	REPRESENTATIONS AND WARRANTIES OF BUYER
	 	 	 
	Section 4.01	Organization.	17
	Section 4.02	Authorization.	17
	Section 4.03	Broker’s Fees.	18
	Section 4.04	Conflicts.	18

 

     

     

    

 

	Article V.
	 	 	 
	COVENANTS
	 	 	 
	Section 5.01	Consents and Waivers.	18
	Section 5.02	Compliance.	18
	Section 5.03	Confidentiality; Public Announcement.	19
	Section 5.04	Protective Rights Agreement.	20
	Section 5.05	Further Assurances.	20
	Section 5.06	Notice by Sellers; Enforcement of License Agreements.	21
	Section 5.07	Patent Rights.	22
	Section 5.08	Negative Covenants.	23
	Section 5.09	Future Agreements.	23
	Section 5.10	Records; Access.	23
	Section 5.11	Remittance to Deposit Account; Set-Offs.	24
	Section 5.12	Certain Covenants of Buyer.	25
	 	 	 
	Article VI.
	 	 	 
	THE CLOSING; CONDITIONS TO CLOSING
	 	 	 
	Section 6.01	Closing.	25
	Section 6.02	Conditions Applicable to Buyer.	25
	Section 6.03	Conditions Applicable to Sellers.	26
	 	 	 
	Article VII.
	 
	TERMINATION
	 	 	 
	Section 7.01	Termination.	26
	Section 7.02	Effects of Expiration or Termination.	26
	 	 	 
	Article VIII.
	 	 	 
	MISCELLANEOUS
	 	 	 
	Section 8.01	Survival.	27
	Section 8.02	Notices.	27
	Section 8.03	Successors and Assigns.	28
	Section 8.04	Indemnification.	29
	Section 8.05	Independent Nature of Relationship; Taxes.	30
	Section 8.06	Entire Agreement.	31
	Section 8.07	Amendments; No Waivers.	31
	Section 8.08	Interpretation.	32
	Section 8.09	Headings and Captions.	32
	Section 8.10	Counterparts; Effectiveness.	32
	Section 8.11	Severability.	32
	Section 8.12	Expenses.	32
	Section 8.13	Governing Law; Jurisdiction.	32
	Section 8.14	Waiver of Jury Trial.	33

 

     

     

    

 

	EXHIBITS
	 
	Exhibit A-1	–  Collaboration Agreement
	 	 
	Exhibit A-2	–  Commercialization Agreement
	 
	Exhibit B	–  Assignment
	 
	Exhibit C	–  Daiichi Consent/Amendment
	 
	Exhibit D	–  Protective Rights Agreement
	 
	Exhibit E-1	–  Opinion of Counsel (Transaction Opinion)
	 	 
	Exhibit E-2	 –  Opinion of Counsel (Australian Counsel)
	 
	Exhibit E-3	–  Opinion of Counsel (Buyer Counsel)
	 
	SCHEDULES
	 
	Schedule 3.03	 –  Litigation
	 
	Schedule 3.09	 –  Net Sales for the Fiscal Quarter ending December 31, 2015
	 
	Schedule 3.10	 –  Broker’s Fees
	 
	Schedule 3.13	 –  Patent Rights

 

     

     

    

 

This ROYALTY INTEREST ACQUISITION
AGREEMENT is made and entered into as of April 22, 2016 by and between Aviragen Therapeutics, Inc. (formerly known as Biota
Pharmaceuticals, Inc.), a Delaware corporation (“Aviragen”), Biota Holdings Pty Ltd (formerly known as Biota Holdings
Limited), a corporation organized and existing under the laws of Victoria, Australia (“BHPL”), Biota Scientific Management
Pty. Ltd., a corporation organized and existing under the laws of Victoria, Australia (“BSM”), and HealthCare Royalty
Partners III, L.P., a limited partnership organized under the laws of the State of Delaware (the “Agreement”).

 

RECITALS

 

WHEREAS, BHPL, BSM
and Daiichi Sankyo Company, Limited, a joint stock company organized and existing under the laws of Japan (“Daiichi”)
have entered into (a) that certain Collaboration and License Agreement, effective as of September 29, 2003, with respect to,
among other things, the development of the Product (this and other capitalized terms used and not defined in these Recitals shall have
the meanings provided in ARTICLE I below), a true, correct and complete copy of which, together with all amendments, modifications
and supplements thereto, is attached hereto as Exhibit A-1 (the “Collaboration Agreement”), and (ii) that
certain Commercialization Agreement, effective as of March 27, 2009, with respect to the commercialization of the Product in Japan,
a true, correct and complete copy of which, together with all amendments, modifications and supplements thereto, is attached hereto as
Exhibit A-2 (the “Commercialization Agreement” and, together with the Collaboration Agreement, the “License
Agreements” and each, individually, a “License Agreement”);

 

WHEREAS, pursuant to
the License Agreements, subject to the terms and conditions set forth therein, Sellers have been and remain entitled to receive, during
the Term (as defined in the Commercialization Agreement), Royalties; and

 

WHEREAS, Sellers wish
to sell, assign, convey and transfer to Buyer, and Buyer wishes to accept the sale, assignment, conveyance, and transfer from Sellers
of, the Assigned Rights held by Sellers pursuant to the License Agreements;

 

NOW, THEREFORE, in
consideration of the mutual covenants, agreements representations and warranties set forth herein, the Parties agree as follows:

 

Article I.

 

DEFINITIONS

 

Section 1.01     Definitions.

 

The following terms, as used herein, shall have the following
meanings:

 

“Affiliate”
shall mean, with respect to any Person, any other Person that controls, is controlled by, or is under common control with such Person.
For purposes of this definition, “control” shall mean (i) in the case of corporate entities, direct or indirect
ownership of at least twenty percent (20%) of the stock or shares having the right to vote for the election of directors, and (ii) in
the case of non-corporate entities, direct or indirect ownership of at least twenty percent (20%) of the equity interest with the power
to direct the management and policies of such non-corporate entities.

 

“Agreement” has the meaning given in the
preamble hereto.

 

“Assigned
Rights” shall mean (i) the Royalty Interest and the absolute right to payment and receipt thereof under or pursuant to
the License Agreements, (ii) any right under the License Agreements to receive royalty reports, worksheets, notices and other associated
information to the extent related to the Royalty Interest or Net Sales of the Product in the Territory, and (iii) any right under
the License Agreement to request inspection of records and accounts available in accordance with the License Agreements, to the extent
related to the Royalty Interest or Net Sales of the Product in the Territory.

 

     

     

    

 

“Assignment”
shall mean the Assignment pursuant to which Sellers shall assign, convey and transfer to Buyer Sellers’ rights and interests in
and to the Assigned Rights, which Assignment shall be substantially in the form of Exhibit B.

 

“Australia-Japan
Income Tax Treaty” shall mean the Convention between Australia and Japan for the Avoidance of Double Taxation and the Prevention
of Fiscal Evasion with Respect to Taxes on Income, and all amendments, renewals and successors thereof in effect from time to time from
and after the Economic Commencement Date through and including the License Termination.

 

“Australian Seller”
shall mean either or each of BHPL and/or BSM, as the context indicates, and “Australian Sellers” shall mean both of
entities together.

 

“Aviragen” has the meaning given in the
preamble hereto.

 

“Bankruptcy Law”
shall mean Title 11 of the United States Code entitled “Bankruptcy” and all other liquidation, conservatorship, bankruptcy,
assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief
laws of the United States or other applicable jurisdictions (domestic or foreign) from time to time in effect and affecting the rights
of creditors generally.

 

“Base Amount”
shall mean the amount on any date by which the Closing Amount exceeds [**]; provided that in no event shall the Base Amount be
less than [**].

 

“BHPL” has the meaning
given in the preamble hereto. “BSM” has the meaning given in the preamble hereto.

 

“Business Day”
shall mean any day other than a Saturday, a Sunday, any day which is a legal holiday under the laws of Australia or the State of New York,
or any day on which banking institutions located in Australia or the State of New York are required by law or other governmental action
to close.

 

“Buyer” shall mean HealthCare Royalty
Partners III, L.P., a limited partnership organized under the laws of the State of Delaware.

 

“Buyer Deposit Account”
shall mean an account established, controlled and maintained by Buyer as the account into which Royalty Interest shall be deposited by
Sellers. As of the Closing Date, the “Buyer Deposit Account” shall be:

 

[**]

 

“Buyer Indemnified
Party” shall mean each of Buyer and its Affiliates and any of their respective partners, directors, managers, members, officers,
employees and agents.

 

“Buyer Transaction
Expenses” shall mean the amount of reasonable fees and expenses incurred by Buyer in connection with the consummation of the
transactions contemplated by this Agreement, including reasonable, documented, out-of-pocket fees and expenses incurred in connection
with Buyer’s confirmatory due diligence and the Transaction Documents.

 

    2

     

    

 

“Capital Stock”
of any Person shall mean any and all shares, interests, ownership interest units, rights to purchase, warrants, options, participations
or other equivalents of or interests in (however designated) equity of such Person, including any preferred stock, but excluding any debt
securities convertible into such equity.

 

“Claim” shall mean any claim, demand,
action or proceeding (including any investigation by any Governmental Authority). “Closing” shall mean the closing
of the transactions contemplated under this Agreement in accordance with Section 6.01. “Closing Amount”
shall mean $20,000,000.

 

“Closing Date”
shall mean the date all of the conditions set forth in ARTICLE VI are fulfilled or waived in writing by the applicable Party,
as set forth in such ARTICLE VI.

 

“Collaboration Agreement” has the meaning
given in the Recitals hereto.

 

“Collateral” shall have the meaning provided
therefor in the Protective Rights Agreement.

 

“Commercialization Agreement” has the
meaning given in the Recitals hereto.

 

“Confidential Information”
means any and all information, whether communicated orally, by email or in any physical form, including without limitation, financial
and all other information which Disclosing Party or its authorized Representatives provide to the Recipient, together with such portions
of analyses, compilations, studies, or other documents, prepared by or for the Recipient and its Representatives, which contain or are
derived from information provided by Disclosing Party. Without limiting the foregoing, information shall be deemed to be provided by Disclosing
Party to the extent it is learned or derived by Recipient or Recipient’s Representatives (a) from any inspection, examination
or other review of books, records, contracts, other documentation or operations of Disclosing Party, (b) from communications with
authorized Representatives of Disclosing Party or (c) created, developed, gathered, prepared or otherwise derived by Recipient while
in discussions with Disclosing Party. However, Confidential Information does not include any information which Recipient can demonstrate
(i) is or becomes part of the public domain through no fault of Recipient or its Representatives, (ii) was known by Recipient
on a non-confidential basis prior to disclosure, or (iii) was independently developed by Persons who were not given access to the
Confidential Information disclosed to Recipient by Disclosing Party.

 

“Confidentiality
Agreement” means that certain Confidentiality Agreement by and between Aviragen and HealthCare Royalty Management, LLC dated
as of January 25, 2016.

 

“Contract” shall mean any agreement, contract,
obligation, or undertaking.

 

“CS-8958”
means the less than once per day dosage neuraminidase inhibitor compound listed under the heading “Sankyo Compounds” in Appendix
D to the Collaboration Agreement.

 

“Cumulative Remaining
Shortfall Amount” shall mean, for any Measurement Period, the excess of (a) the aggregate amount of any and all Shortfall
Amounts with respect to all prior Measurement Periods over (b) the aggregate amount of Royalty Interest Payments that Buyer has been
paid with respect to such Shortfall Amounts, which for the avoidance of doubt shall be calculated on a cumulative basis with respect to
all prior Measurement Periods.

 

    3

     

    

 

“Daiichi” has the meaning given in the
Recitals hereto.

 

“Daiichi Consent/Amendment”
shall mean the written amendments to each of the License Agreements providing for the consent from Daiichi with respect to the Assignment
and this Agreement and the amendments to the License Agreements and the other matters set forth therein, in substantially the form set
forth in Exhibit C.

 

“Disclosing Party”
shall mean, with respect to any Confidential Information, the Party disclosing the Confidential Information to the other Party.

 

“Dispute”
shall mean any opposition, interference proceeding, reexamination proceeding, cancellation proceeding, re-issue proceeding, invalidation
proceeding, inter parties review proceeding, injunction, claim, lawsuit, proceeding, hearing, investigation, complaint, arbitration, mediation,
demand, investigation, decree, or any other dispute, disagreement, or claim.

 

“Economic Commencement Date” shall mean
January 1, 2016.

 

“Excluded Liabilities
and Obligations” shall mean each liability or obligation of Sellers or any of their respective Affiliates of whatever nature,
whether presently in existence or arising or asserted hereafter, whether known or unknown, and whether under either License Agreement
or any other Transaction Document or otherwise.

 

“Expense Reimbursement Amount” shall mean
the lesser of (i) [**] and (ii) [**]% of the Buyer Transaction Expenses.

 

“Exploit”
shall mean, with respect to a product such as the Product, the manufacture, use, sale, offer for sale (including marketing and promotion),
importation, distribution or other commercialization; and “Exploitation” shall have the correlative meaning.

 

“First Quarter 2016
Royalty Interest Payment” shall mean the Royalty Interest Payment in the amount payable pursuant to clause (i) of the definition
of Royalty Interest.

 

“Fiscal Quarter” shall mean a calendar
quarter.

 

“Governmental Authority”
shall mean any government, court, regulatory or administrative agency or commission, or other governmental authority, agency or instrumentality,
whether foreign, federal, state or local, including any applicable Japanese patent office, the Ministry of Health of Japan or any other
government authority in any country.

 

“Indemnified Expenses”
shall mean collectively, all Losses with respect to which any Seller is obligated to indemnify any party pursuant to Section 8.04(a).

 

“Initial Royalty Interest Period” shall
mean the period beginning on April 1, 2016 through and including March 31, 2025.

 

“Initial Royalty
Interest Period Cap Amount” shall mean, for any Measurement Period, the sum of (x) [**] earned in such Measurement Period,
regardless whether royalties were received in such Measurement Period or thereafter and (y) any Cumulative Remaining Shortfall Amount.
For purposes of clarification, the Initial Royalty Interest Period Cap Amount shall be net of all Japanese Withholding Taxes.

 

    4

     

    

 

“Initial Royalty
Interest Period Threshold Amount” shall mean, for any Measurement Period, the sum of (x) [**] earned in such Measurement
Period, regardless whether royalties were received in such Measurement Period or thereafter and (y) any Cumulative Remaining Shortfall
Amount. For purposes of clarification, the Initial Royalty Interest Period Threshold Amount shall be net of all Japanese Withholding Taxes.

 

“Insolvency Event” shall mean the occurrence
of any of the following with respect to each Seller:

 

(i)       (A) an
involuntary proceeding shall be commenced or an involuntary petition shall be filed in a court of competent jurisdiction seeking (x) relief
in respect of such Seller or any Subsidiary, or of a substantial part of the property of such Seller or any Subsidiary, under any Bankruptcy
Law now or hereafter in effect, (y) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official
for such Seller or any Subsidiary or for a substantial part of the property of such Seller or any Subsidiary or (z) the winding-up
or liquidation of such Seller or any Subsidiary, which proceeding or petition shall continue undismissed for 60 calendar days or (B) an
order of a court of competent jurisdiction approving or ordering any of the foregoing shall be entered;

 

(ii)      such
Seller or any Subsidiary shall (A) voluntarily commence any proceeding or file any petition seeking relief under any Bankruptcy
Law now or hereafter in effect, (B) apply for the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar
official for such Seller or any Subsidiary or for a substantial part of the property of such Seller or any Subsidiary, (C) fail
to contest in a timely and appropriate manner any proceeding or the filing of any petition described in clause (i) of this definition,
(D) file an answer admitting the material allegations of a petition filed against it in any proceeding described in clause (i) of
this definition, (E) make a general assignment for the benefit of creditors or (F) wind up or liquidate (except as permitted
under this Agreement);

 

(iii)     such
Seller or any Subsidiary shall take any action in furtherance of or for the purpose of effecting, or indicating its consent to, approval
of, or acquiescence in, any of the acts set forth in clause (i) or (ii) of this definition;

 

(iv)     such
Seller or any Subsidiary shall become unable, admit in writing its inability, or fail generally, to pay its debts as they become due;
or

 

(v)      such
Seller shall be in a financial condition such that the sum of its debts, as they become due and mature, is greater than the fair
value of its property on a going concern basis, when taken together on a consolidated basis with its Subsidiaries which are party to
the Transaction Documents.

 

“Japanese Withholding
Tax” shall mean all Japanese withholding taxes on payment of Royalties pursuant to the Australia-Japan Income Tax Treaty.

 

“Knowledge of the
Sellers” shall mean, with respect to each Seller, as applicable, the knowledge of the officers of such Seller and/or any of
its Subsidiaries, as applicable, relating to a particular matter without any obligation to inquire or otherwise investigate relating to
a particular matter; provided, however, that a person charged with responsibility for the aspect of the business relevant
or related to the matter at issue shall be deemed to have knowledge of a particular matter to the extent that such person’s failure
to have knowledge of such matter would constitute negligence in the context of his or her duties and responsibilities in the ordinary
course of business.

 

    5

     

    

 

“Licensee” shall mean Daiichi and/or any
permitted collaborator or permitted sublicensee under the Commercialization Agreement.

 

“License Agreement” and “License
Agreements” have the respective meanings given in the Recitals hereto.

 

“License Termination” means the date of
termination of the Commercialization Agreement under Section 8.1 thereof.

 

“Liens”
shall mean any lien, hypothecation, charge, security agreement, security interest, mortgage, pledge or any other encumbrance, right or
claim of any Person of any kind whatsoever whether choate or inchoate, filed or unfiled, noticed or unnoticed, recorded or unrecorded,
contingent or non-contingent, material or non-material, known or unknown.

 

“Losses”
shall mean collectively, direct damages and the actual, documented out-of-pocket costs, fees and expenses (including reasonable expenses
of investigation and reasonable legal fees and expenses of a single law firm), in any such case arising out of or relating to any claim,
action, suit or proceeding commenced or threatened by any Person or entity (including a Governmental Authority), other than any Seller
or Buyer or any of Buyer’s Affiliates, officers, directors, agents or other representatives, and relating to the activities or matters
contemplated by this Agreement, but specifically excluding all Lost Profits and punitive damages.

 

“Lost Profits”
shall mean collectively, any and all claims, damages and losses in respect of loss of profits and other consequential damages, including
without limitation indirect damages, special damages, incidental damages and exemplary damages.

 

“Material Adverse
Effect” shall mean (i) an Insolvency Event, (ii) a material adverse effect on the ability of any Seller to perform
any of its obligations hereunder, under the other Transaction Documents or under the Daiichi Consent/Amendment, (iii) a material
adverse effect on the right or ability of Buyer to receive the Royalty Interest or any payment due to Buyer hereunder as contemplated
by this Agreement immediately following the Closing, (iv) a material adverse effect on the Royalty Interest or other Assigned Rights,
including, without limitation, any material adverse effect on the Product or the ability of Licensee to distribute, market and/or sell
the Product, or (v) a material breach by any Seller of any obligation owing by such Seller to Licensee pursuant to which Licensee
may reduce or eliminate the amount of the Royalties (whether directly or indirectly, including, without limitation, by counterclaim or
setoff), or the basis for calculation thereof, or to terminate Commercialization Agreement prior to the License Termination.

 

“Measurement Period”
shall mean each period of twelve (12) consecutive calendar months beginning on April 1 of a calendar year and ending on March 31
of the succeeding calendar year; provided that the last Measurement Period of the Second Royalty Interest Period shall begin on
April 1, 2029 and end on December 24, 2029. For the avoidance of doubt, the initial Measurement Period shall begin on April 1,
2016 and end on March 31, 2017.

 

“Net Sales”
shall mean the gross amount invoiced by Daiichi, its Affiliates and any third party collaboration as set forth in Section 1.2.1 of
the Commercialization Agreement (“Collaborator”) to third parties that are not Affiliates or Collaborator (unless such
Affiliate or Collaborator is the end user of such Product in the Territory, in which case the amount billed therefore shall be deemed
to be the amount that would be billed to a third party in an arm's length transaction) for sales or other dispositions of the Product
in the Territory to third parties, less the following items, as allocable to such Product (if not previously deducted from the amount
invoiced): (i) trade discounts, credits or allowances commissions, rebates, chargebacks; (ii) credits or allowances additionally
granted upon returns, rejections or recalls (except where any such recall arises out of a Party's, its Affiliate's or Collaborator's gross
negligence, willful misconduct or fraud); (iii) freight, shipping and insurance charges; (iv) taxes, duties or other governmental
tariffs (other than income taxes); and (v) government mandated rebates. For the avoidance of doubt, the Parties agree that Net Sales
includes sales of the Product not sold under the Pricing and Reimbursement Approval (as defined in the Commercialization Agreement), which
includes but is not limited to sales to a governmental agency as inventory for a pandemic. Furthermore, Net Sales for a calendar quarter
will be less any Product returned in that calendar quarter but sold in the preceding calendar quarter in Japan.

 

    6

     

    

 

“Other Payments”
shall mean any payments in lieu of or in respect of the Royalties or in satisfaction of the obligation to pay the Royalties (including
without limitation any indemnity payments, recoveries, damages, settlement or other amounts to which Sellers are or may become entitled
to pursuant to or in connection with either License Agreement, whether based on actual or alleged infringement, breach, re-licensing or
otherwise), together with the rights to Indemnified Expenses pursuant to and in accordance with the terms and conditions of this Agreement.

 

“Party” shall mean Sellers or Buyer as
the context indicates and “Parties” shall mean Sellers and Buyer. “Patent Rights” shall mean the
patents set forth on Schedule 3.13.

 

“Person”
shall mean an individual, corporation, partnership, limited liability company, limited partnership, association, trust or other entity
or organization, but not including any Governmental Authority.

 

“Product” shall mean a finished pharmaceutical
product that contains CS-8958.

 

“Protective Rights
Agreement” shall mean the Protective Rights Agreement by and between Sellers and Buyer of even date herewith, which Protective
Rights Agreement shall be substantially in the form of Exhibit D. For the avoidance of doubt, the Protective Rights Agreement
is not intended to derogate from the validity of the absolute assignment of the Assigned Rights, as contemplated by this Agreement and
as evidenced by the Assignment, but is being executed and delivered solely to protect Buyer’s interests to the extent such assignment
becomes subject to a Recharacterization despite the Parties’ intentions.

 

“Receiving Party”
shall mean, with respect to any Confidential Information, the Party receiving the Confidential Information from the other Party.

 

“Recharacterization”
shall mean a judgment or order by a court of competent jurisdiction that Sellers’ right, title and interest in, to and under the
License Agreements and the Assigned Rights were not fully sold, assigned and transferred to Buyer pursuant to, as contemplated by, and
subject to the provisions of this Agreement and the Assignment, but instead that such transaction(s) constituted a loan and security
device.

 

“Recipient”
means, with respect to any Confidential Information disclosed by a Party hereto, the other Party which is receiving such Confidential
Information.

 

    7

     

    

 

“Representative”
shall mean, with respect to any Person, directors, officers, employees, agents, co-investors, advisors, potential investors, underwriters,
rating agencies, permitted assignees, sources of financing and trustees of such Person (other than competitors of Buyer and its Affiliates).

 

“Royalties”
shall mean all amounts paid or payable to Sellers under the Commercialization Agreement in respect of or based on Net Sales of the Product
in the Territory from and after the Economic Commencement Date through and including the License Termination.

 

“Royalty Interest” shall mean, as separately
calculated for each Measurement Period:

 

(i)      with
respect to the Fiscal Quarter ending March 31, 2016, [**]% of the sum of (a) Royalties earned and payable in respect of Net
Sales for the Fiscal Quarter ending March 31, 2016, plus (b) Other Payments earned and payable in respect of the Fiscal Quarter
ending March 31, 2016, up to an aggregate amount equal to [**];

 

(ii)     with respect to each Measurement Period to occur
during the Initial Royalty Interest Period:

 

(A)            [**]%
of the sum of (x) Royalties earned and payable in respect of Net Sales in such Measurement Period plus (y) Other Payments earned
and payable in respect of such Measurement Period, up to the Initial Royalty Interest Period Threshold Amount;

 

(B)             [**]%
of the sum of (x) Royalties earned and payable in respect of Net Sales in such Measurement Period plus (y) Other Payments earned
and payable in respect of such Measurement Period, in excess of the Initial Royalty Interest Period Threshold Amount but not to exceed
the Initial Royalty Interest Period Cap Amount; and

 

(C)             [**]%
of the sum of (x) Royalties earned and payable in respect of Net Sales in such Measurement Period plus (y) Other Payments earned
and payable in respect of such Measurement Period, in excess of the Initial Royalty Interest Period Cap Amount; and

 

(iii) with respect to each Measurement Period to occur
during the Second Royalty Interest Period:

 

(A)            [**]%
of the sum of (x) Royalties earned and payable in respect of Net Sales in such Measurement Period plus (y) Other Payments earned
and payable in respect of such Measurement Period, up to the Second Royalty Interest Period Threshold Amount;

 

(B)             [**]%
of the sum of (x) Royalties earned and payable in respect of Net Sales in such Measurement Period plus (y) Other Payments earned
and payable in respect of such Measurement Period, in excess of the Second Royalty Interest Period Threshold Amount but not to exceed
the Second Royalty Interest Period Cap Amount; and

 

(C)             [**]%
of the sum of (x) Royalties earned and payable in respect of Net Sales in such Measurement Period plus (y) Other Payments earned
and payable in respect of such Measurement Period, in excess of the Second Royalty Interest Period Cap Amount.

 

For the avoidance of doubt,
for purposes of calculating Royalty Interest, Royalties shall be applied to the Measurement Period in which the Net Sales giving rise
to the royalty payment occurred notwithstanding that such royalty is actually paid by Licensee during a subsequent Measurement Period.
For example, Royalties with respect to Net Sales that occurred in the Measurement Period ending March 31, 2017 shall be applied to
the Measurement Period ending March 31, 2017 even if the royalty is paid during the Measurement Period ending March 31, 2018.
Other Payments shall be applied to the Measurement Period with respect to which such breach of either License Agreement or infringement
resulting in Other Payments occurred, regardless of when such Other Payments are received. If the Measurement Period in which the breach
or default giving rise to Other Payments cannot be determined, then such Measurement Period shall be determined either (a) by a court
or (b) by a settlement agreement or other writing signed by Sellers and Licensee (and consented to by Buyer, which consent shall
not be unreasonably withheld), as applicable.

 

    8

     

    

 

In the event there shall remain
any Cumulative Remaining Shortfall Amount as of December 24, 2029, then for so long Sellers continue to receive payments in respect
of Royalties and/or Other Payments, “Royalty Interest” shall mean [**]% of the sum of such Royalties and Other Payments until
any and all Cumulative Remaining Shortfall Amount has been paid to Buyer in full.

 

For the avoidance of doubt,
notwithstanding that Royalty Interest is earned and payable to Buyer, Seller shall not be obligated to pay Buyer such Royalty Interest
until Seller is paid the corresponding royalties by the Licensee.

 

“Royalty Interest
Payment” shall mean the payment of the Royalty Interest (including, for the avoidance of doubt, the First Quarter 2016 Royalty
Interest Payment).

 

“Second Royalty Interest Period” shall
mean the period beginning on April 1, 2025 and ending on December 24, 2029.

 

“Second Royalty Interest
Period Cap Amount” shall mean, for any Measurement Period, the sum of (x) $[**] earned in such Measurement Period, regardless
whether royalties were received in such Measurement Period or thereafter and (y) any Cumulative Remaining Shortfall Amount. For purposes
of clarification, the Second Royalty Interest Period Cap Amount shall be net of all Japanese Withholding Taxes.

 

“Second Royalty Interest
Period Threshold Amount” shall mean, for any Measurement Period, the sum of (x) $[**] earned in such Measurement Period,
regardless whether royalties were received in such Measurement Period or thereafter and (y) any Cumulative Remaining Shortfall Amount.
For purposes of clarification, the Second Royalty Interest Period Threshold Amount shall be net of all Japanese Withholding Taxes.

 

“Seller”
shall mean any or each of Aviragen, BHPL and/or BSM, as the context indicates, and “Sellers” shall mean all of entities
collectively.

 

“Seller Deposit Account”
shall mean an account established and maintained by either or both of Australian Sellers as the account into which all amounts that are
or become payable to Australian Sellers under the Commercialization Agreement shall be deposited by Licensee. As of the Closing Date,
the “Seller Deposit Account” shall be:

 

[**]

 

“Seller Indemnified
Party” shall mean each of Sellers, their respective Affiliates and any of their respective partners, directors, managers, officers,
employees and agents.

 

“Shortfall Amount”
shall mean, with respect to any Measurement Period (other than the last Measurement Period of the Second Royalty Interest Period) in which
the sum of (a) Royalties earned and payable in respect of Net Sales in such Measurement Period plus (b) Other Payments earned
and payable in respect of such Measurement Period does not equal or exceed the Initial Royalty Interest Period Threshold Amount or the
Second Royalty Interest Period Threshold Amount, as applicable, the amount equal to the difference of (i) the Initial Royalty Interest
Period Threshold Amount or the Second Royalty Interest Period Threshold Amount, as applicable, minus (ii) the sum of (A) Royalties
earned and payable in respect of Net Sales in such Measurement Period plus (B) Other Payments earned and payable in respect of such
Measurement Period.

 

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“Subsidiary”
shall mean, with respect to any Person, at any time, any entity of which more than fifty percent (50%) of the outstanding Voting Stock
or other equity interest entitled ordinarily to vote in the election of the directors or other governing body (however designated) is
at the time beneficially owned or controlled directly or indirectly by such Person, by one or more such entities or by such Person and
one or more such entities. Unless otherwise indicated herein, “Subsidiary” shall refer a “Subsidiary” of a Seller.

 

“Territory” shall mean Japan.

 

“Third Party” shall mean any Person other
than a Seller or Buyer or their respective Affiliates.

 

“Third Party Patent
Rights” shall mean, with respect to any Third Party, any and all issued patents and pending patent applications as of the date
of this Agreement, including all provisional applications, substitutions, continuations, continuations-in-part, divisions, and renewals,
all letters patent granted thereon, and all patents-of-addition, reissues, reexaminations and extensions or restorations by existing or
future extension or restoration mechanisms (including regulatory extensions), and all supplementary protection certificates of such Third
Party in the Territory.

 

“Transaction Documents”
shall mean, collectively, this Agreement, the Assignment, the Protective Rights Agreement and the Daiichi Consent/Amendment.

 

“UCC” shall mean the Uniform Commercial
Code (or any similar or equivalent legislation) as in effect in any applicable jurisdiction. “Use” shall include the
use, manufacture, marketing, sale, offer for sale, importation, distribution or commercialization.

 

“Valid Claim”
shall mean a claim of an issued and unexpired patent, or a claim of a pending patent application, within the Product Related Patent Rights,
which claim has not been held invalid, unpatentable or unenforceable by a court of competent jurisdiction from which no further appeal
can be further taken, and has not been admitted to be invalid, unpatentable or unenforceable, which claim, but for a right to use such
claim, would be infringed by the Product and/or its Exploitation; provided, however, that if a claim of a pending patent
application shall not have issued as acclaim of an issued patent within five (5) years after the earliest filing date from which
such claim claims priority, then such claim shall not be a “Valid Claim” for purposes of this Agreement unless and until such
claim issues as a claim of an issued patent.

 

“Voting Stock”
shall mean Capital Stock issued by a company, or equivalent interests in any other Person, the holders of which are ordinarily, in the
absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such Person, even
if the right so to vote has been suspended by the happening of such contingency.

 

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Section 1.02 Currency. Unless otherwise
specified, all references to monetary amounts in this Agreement are references to the lawful currency of the United States.

 

Article II.

 

SALE AND ASSIGNMENT

 

Section 2.01 Sale and Assignment.

 

		(a)	Upon the terms and subject to the conditions set forth in this Agreement, at the Closing, Australian Sellers shall sell, assign, transfer
and convey to Buyer, free and clear of all Liens (other than any Liens in favor of Buyer) and subject to the conditions set forth in ARTICLE VI
and the other provisions of this Agreement, the Assigned Rights, and Buyer shall accept such sale, assignment, transfer and conveyance
from Sellers. Such sale, assignment, transfer and conveyance shall be evidenced by the execution and delivery of the Assignment by Sellers
in accordance with Section 6.02.

 

		(b)	Notwithstanding anything to the contrary contained in this Agreement, (i) the sale, assignment, transfer and conveyance to Buyer
of the Assigned Rights pursuant to this Agreement shall not subject Buyer to, or transfer, affect or modify, any obligation or liability
of Sellers under the License Agreements and (ii) Buyer expressly does not assume or agree to become responsible for any obligation
or liability of Sellers whatsoever.

 

		(c)	Sellers and Buyer intend and agree that the sale, assignment, transfer and conveyance of the Assigned Rights under this Agreement
shall be, and is, a true sale by Australian Sellers to Buyer that is absolute and irrevocable and that provides Buyer with the full benefits
of ownership of the Assigned Rights, and neither Sellers nor Buyer intends the transactions contemplated hereunder to be, or for any purpose
characterized as, a loan from Buyer to Sellers or entitle Buyer to any other rights or interests except as expressly set forth in this
Agreement. The Parties waive any right to contest or otherwise assert that this Agreement is anything other than a true sale by Australian
Sellers to Buyer under applicable law, which waiver shall be enforceable against a Party in any bankruptcy or insolvency proceeding relating
to such Party.

 

Section 2.02 Royalty Interest Payments.

 

		(a)	Effective as of the execution and delivery of the Assignment at the Closing and subject to the terms of Section 2.04,
Sellers and Buyer agree that Buyer shall have all of Sellers’ right, title, interest in and to the Assigned Rights, and is entitled
to receive all Royalty Interest Payments (including, for the avoidance of doubt, the First Quarter 2016 Royalty Interest Payment).

 

		(b)	Australian Sellers shall irrevocably instruct Licensee to remit all Royalty Interest amounts payable to Sellers pursuant to the Commercialization
Agreement into the Seller Deposit Account, and Australian Sellers shall irrevocably instruct the bank holding the Seller Deposit Account
to transfer such Royalty Interest amounts from the Seller Deposit Account into the Buyer Deposit Account, in each case pursuant and subject
to Section 5.11.

 

Section 2.03 Closing Payment.

 

Subject to the terms and conditions
set forth herein, at the Closing, Buyer shall pay Sellers the difference of (i) the Closing Amount minus (ii) the Expense Reimbursement
Amount by wire transfer of immediately available funds as directed by Sellers.

 

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Section 2.04 No Assumption.

 

Notwithstanding any provision
in this Agreement or any other Transaction Document or writing to the contrary, Buyer is accepting the purchase and assignment of only
the Assigned Rights and is not assuming any Excluded Liabilities and Obligations. All Excluded Liabilities and Obligations shall be retained
by and remain obligations and liabilities solely of Sellers or their respective Affiliates.

 

Article III.

 

REPRESENTATIONS AND WARRANTIES OF SELLERS

 

Sellers hereby represent and
warrant to Buyer that the following representations are true and complete as of the date of this Agreement, except as otherwise indicated:

 

Section 3.01 Organization.

 

Aviragen is a corporation
duly incorporated, validly existing and in good standing under the laws of Delaware. Each of BHPL and BSM is a corporation duly incorporated,
validly existing and in good standing under the laws of Victoria, Australia. Each Seller has all corporate powers and all licenses, authorizations,
consents and approvals required to carry on its business as now conducted and as proposed to be conducted in connection with the transactions
contemplated by the Transaction Documents and the License Agreements.

 

Section 3.02 Authorizations; Enforceability.

 

		(a)	Each Seller has all necessary corporate power and authority to enter into, execute and deliver this Agreement and the other Transaction
Documents and to perform all of the obligations to be performed by it hereunder and thereunder and to consummate the transactions contemplated
hereunder and thereunder. None of the execution and delivery by any Seller of the Transaction Documents, the performance by any Seller
of any of the obligations to be performed by it hereunder or thereunder, or the consummation by any Seller of any of the transactions
contemplated hereby or thereby, will require any notice to, action, approval or consent by, or in respect of, or filing or registration
with, any Governmental Authority or other Person, except filings necessary to perfect Liens created by the Transaction Documents.

 

		(b)	Once signed, the Transaction Documents will have been duly authorized, executed and delivered by each Seller and each Transaction
Document will then constitute the valid and binding obligation of each Seller, enforceable against each Seller in accordance with their
respective terms, subject, as to enforcement of remedies, to bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors’ rights generally or general equitable principles.

 

Section 3.03 Litigation.

 

Schedule 3.03 sets
forth each (i) Dispute pending or threatened against any Seller, or to the Knowledge of the Sellers, pending or threatened against
Daiichi, and (ii) inquiry of any Governmental Authority pending or threatened against any Seller, or to the Knowledge of the Sellers,
pending or threatened against Daiichi, which, in each instance of clauses (i) and (ii), if adversely determined, could reasonably
be expected to have a Material Adverse Effect.

 

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Section 3.04 Compliance with Laws.

 

No Seller nor any Subsidiary
(i) is in violation of, has violated, or is under investigation with respect to, or (ii) has been threatened to be, charged
with or been given written notice of any violation of any law, rule, ordinance or regulation of, or any judgment, order, writ, decree,
permit or license entered by, any Governmental Authority which, in the case of either clause (i) or clause (ii), could reasonably
be expected to have a Material Adverse Effect.

 

Section 3.05 Conflicts.

 

		(a)	Neither the execution and delivery by Sellers of any of the Transaction Documents nor the performance or consummation of the transactions
contemplated thereby (including, without limitation, the assignment to Buyer of the Royalty Interest) to be performed or consummated by
Sellers will: (i) contravene, conflict with, result in a breach or violation of, constitute a default under, or accelerate the performance
provided by, in any material respects any provisions of: (A) any law, rule, ordinance or regulation of any Governmental Authority,
or any judgment, order, writ, decree, permit or license of any Governmental Authority, in any case, applicable to the Royalty Interest
or the Collateral; or (B) any material contract, agreement, commitment or instrument to which any Seller is a party or by which any
of the Collateral is bound or committed; (ii) except for the filing of the UCC-1 financing statements required hereunder (or under
the Protective Rights Agreement), require any notification to, filing with, or consent of, any Person or Governmental Authority; (iii) give
rise to any right of termination, cancellation or acceleration of any right or obligation of any Seller or any other Person as such right
or obligation relates to the Royalty Interest, the Royalty Interest Payments or any of the other Collateral or to a loss of any benefit
relating to the Royalty Interest, the Royalty Interest Payments or any of the other Collateral; or (iv) result in the creation or
imposition of any Lien on any the Royalty Interest, the Royalty Interest Payments or any of the other Collateral, other than in favor
of Buyer pursuant to the Protective Rights Agreement.

 

		(b)	No Seller has granted or agreed to grant to any Person other than Buyer, nor does there exist, any Lien granted by any Seller on the
Royalty Interest or any other Collateral other than pursuant to the Protective Rights Agreement. No Subsidiary has granted or agreed to
grant to any Person other than Buyer, nor does there exist, any Lien on such Subsidiary’s rights to receive Royalty Interest Payments.

 

		(c)	No Seller, Subsidiary or any of their respective property is subject (i) to any judgment, order, writ or decree of any Governmental
Authority or (ii) to any contract, agreement, commitment or instrument, which, in either case of clause (i) or clause (ii),
the violation or breach of which by such Seller could reasonably be expected to result in a Material Adverse Effect.

 

Section 3.06 Ownership.

 

Sellers, until the Assignment
is delivered, own, and collectively are the sole holders of all of the Assigned Rights, free and clear of any and all Liens (other than
any Liens in favor of Buyer). Each Seller has full right and power to assign and convey the Assigned Rights as contemplated by this Agreement.
No Seller has transferred, sold, conveyed, assigned, or otherwise disposed of, or agreed to transfer, sell, convey, assign, or otherwise
dispose of any portion of the License Agreements and/or the Assigned Rights other than as contemplated by this Agreement. Upon delivery
to Buyer of the executed Assignment, no Person other than Buyer shall have any right to receive the Royalty Interest. Upon delivery to
Buyer of the executed Assignment, Sellers shall have sold, transferred, conveyed and assigned to Buyer, and Sellers shall have done everything
which is required to be done by Sellers to cause Buyer to acquire all of Sellers’ rights, interests and obligations arising on or
after the Economic Commencement Date under the License Agreements and the Assigned Rights, free and clear of any Liens (other than any
Liens in favor of Buyer), but subject to the further provisions of this Agreement. Each Seller is legally competent to execute this Agreement
and the other Transaction Documents and upon such execution by such Seller, the obligations of such Seller hereunder and thereunder shall
constitute the legally binding and enforceable obligations of such Seller, subject to bankruptcy, insolvency, reorganization, moratorium,
ad hoc representative appointment, conciliation, safeguard proceedings, judicial receivership, or other laws affecting creditors’
rights generally or general equitable principles.

 

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Section 3.07 Subordination.

 

No Seller has caused, by any
means, Sellers’ Royalties to be subordinated to the rights of any creditor of Daiichi or any other Person. In addition, no Seller
has caused, and to the Knowledge of the Sellers no other Person has caused, the claims and rights of Buyer created by any Transaction
Document (i) out of or in connection with the License Agreements and/or (ii) in and to the Assigned Rights and any Collateral,
in each case, to be subordinated to any creditor of Daiichi or any other Person; provided, however, that no Seller makes
any representation as to whether Buyer (or any Person acting on behalf of Buyer) has caused any such subordination.

 

Section 3.08 License Agreements.

 

		(a)	Exhibit A-1 hereto contains a true and complete copy of the Collaboration Agreement (including, without limitation, all
amendments, supplements and other modifications thereto). Exhibit A-2 hereto contains a true and complete copy of the Commercialization
Agreement (including, without limitation, all amendments, supplements and other modifications thereto). The Collaboration Agreement and
Commercialization Agreement, together with the agreements described therein, constitute the only applicable agreements (other than this
Agreement and the Transaction Documents) (i) to which Sellers are a party regarding the Royalties, (ii) which relate to Sellers’
entitlement to the Assigned Rights and (iii) which relate to the Product. To the Knowledge of the Sellers, there are no unpaid Royalties
that have become due, and none are expected to become overdue, as of the Closing Date. Pursuant to the Commercialization Agreement, Sellers
are entitled to Royalties at the rates set forth in Section 2.1 thereof, subject to the express terms and conditions set forth in
the Commercialization Agreement.

 

		(b)	No Seller is in breach of either License Agreement and no circumstances or grounds exist that would give rise (i) to a claim
by Daiichi of a breach of either License Agreement and/or any such other agreement which could have a Material Adverse Effect, or (ii) to
a right of rescission, termination, revision, setoff, or any other rights, in, to or under the Assigned Rights. No Seller has unfulfilled
obligations in respect of either License Agreement or the Assigned Rights that were required to be fulfilled on or prior to the date of
this Agreement.

 

		(c)	To the Knowledge of the Sellers, Daiichi is not in breach of or in default under either License Agreement.

 

		(d)	Sellers have the full right, power and authority to grant all rights and interests granted to Buyer in this Agreement.

 

		(e)	No circumstance or grounds exist, that would invalidate, reduce or eliminate, in whole or in part, the
enforceability or scope the Assigned Rights, including, without limitation, Sellers’ right to payments made in respect of Royalties.

 

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		(f)	Neither of the Australian Sellers is in breach of either License Agreement and nothing has occurred and no condition exists that would
permit any other party thereto to terminate either License Agreement. To the Knowledge of the Sellers, both License Agreement are valid
and binding on each other party thereto in accordance with their respective terms, subject to bankruptcy, insolvency, reorganization,
moratorium, ad hoc representative appointment, conciliation, safeguard proceedings, judicial receivership, or other laws affecting creditors’
rights generally or general equitable principles, and is in full force and effect.

 

		(g)	No Seller has:

 

		(i)	forgiven, released, delayed, postponed or compromised any payment
in respect the Royalties;

 

		(ii)	waived, amended, cancelled or terminated, exercised or to the
Knowledge of the Sellers failed to exercise, any material rights constituting or relating to the Assigned Rights or under any agreement
(including the License Agreements);

 

		(iii)	except as set forth on Exhibits A-1 and A-2, amended,
modified, restated, cancelled, supplemented, terminated or waived any provision of either License Agreement, or granted any consent thereunder,
or agreed to do any of the foregoing;

 

		(iv)	exercised any right of rescission, offset, counterclaim or defense,
upon or with respect to the Assigned Rights or the Collateral, or agreed to do or suffer to exist any of the foregoing;

 

		(v)	sold, leased, pledged, licensed, transferred or assigned (or
attempted to do any of the foregoing) all or any portion of the Assigned Rights and/or the License Agreements, except in favor of Buyer
pursuant to the Transaction Documents; or

 

		(vi)	received any advance payments on the Royalties.

 

		(h)	No Seller has been released from any of its obligations under the License Agreements.

 

		(i)	No Seller has received any written notice from Daiichi that Daiichi has granted any sublicense of Sellers or Daiichi’s rights
under the License Agreements.

 

Section 3.09 Net Sales.

 

Schedule 3.09 annexed
hereto sets forth a true and complete list of all Net Sales of the Product provided by Daiichi and payments in respect of the Royalties
paid and, to the Knowledge of the Sellers, payable by Daiichi to Sellers, for the Fiscal Quarter ending December 31, 2015. Buyer
is aware that payments may differ in the future and that past payments made are no guarantee for future payments to be made.

 

Section 3.10 Broker’s Fees.

 

Except as set forth on Schedule
3.10, no Seller has taken any action that would entitle any Person to any commission or broker’s fee in connection with the
transactions contemplated by the Transaction Documents.

 

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Section 3.11 Information.

 

All written information heretofore
or herein supplied by or on behalf of Sellers or any of their respective Subsidiaries to Buyer is accurate and complete in all material
respects, and none of such information, when taken together with all other information furnished, contains any untrue statement of a material
fact or omits to state any material fact necessary to make such information not materially misleading in light of the circumstances under
which made. To the Knowledge of the Sellers, there is no fact or circumstance that could reasonably be expected to have a Material Adverse
Effect that has not been expressly disclosed in this Agreement, in the other Transaction Documents or in any other documents, certificates
and statements furnished to Buyer for use in connection with the transactions contemplated hereby. All representations and warranties
made by Sellers in any of the other Transaction Documents to which it is party are true and correct in all material respects.

 

Section 3.12 Insolvency Event; Material Adverse Effect.

 

No Insolvency Event has occurred
regarding any Seller. To the Knowledge of the Sellers, no event has occurred and no condition exists that could reasonably be expected
to result in a Material Adverse Effect.

 

Section 3.13 Patent Rights.

 

		(a)	Schedule 3.13 sets forth the Patent Rights including the following for each Patent Right: (i) the application number;
(ii) the patent or registration number, if any; (iii) the country or other jurisdiction where the Patent Right was issued, registered,
or filed; (iv) the scheduled expiration date of any issued Patent Right, including a notation if such scheduled expiration date includes
a term extension or supplementary protection certificate; and (v) the registered owner thereof.

 

		(b)	To the Knowledge of the Sellers, each of the Patent Rights is valid, enforceable and subsisting, and there is at least one Valid Claim
in each of the Patent Rights that covers Daiichi’s Exploitation of the Product. Sellers have not received, and to the Knowledge
of Sellers, Daiichi has not received, (i) any opinion of counsel that any of the Patent Rights is invalid or unenforceable or (ii) any
notice of any claim by any Third Party challenging the validity or enforceability of any of the Patent Rights.

 

		(c)	To the Knowledge of the Sellers, there is no pending, decided, settled or threatened Dispute (i) challenging the legality, validity,
enforceability, scope and/or ownership of any Patent Rights, (ii) that could impact the validity and/or enforceability of any of
the claims of the Patent Rights, or otherwise impact whether any claim within the Patent Rights is a Valid Claim, and/or (iii) adjudicating
whether any Third Party Patent Right is or would be infringed by Daiichi’s Exploitation of the Product.

 

		(d)	To the Knowledge of the Sellers, (i) no Third Party Patent Right has been or is infringed by Daiichi’s Exploitation of
the Product; and (ii) Daiichi has not received any notice of any claim by any Third Party asserting that Daiichi’s Exploitation
of the Product does or would infringe such Third Party’s Patent Rights. Seller has not received any opinion of counsel, and to the
Knowledge of Seller, Daiichi has not received any opinion of counsel, regarding infringement or non-infringement of any Third Party Patent
Right by Daiichi’s Exploitation of the Product.

 

		(e)	Each of the Patent Rights is a Patent as defined in the Collaboration Agreement. To the Knowledge of the
Sellers, Daiichi is the exclusive owner of the entire right, title and interest in and to the Patent Rights.

 

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		(f)	The term for which consideration is to be paid pursuant to Section 2.1 of the Commercialization Agreement shall expire no earlier
than December 24, 2029.

 

		(g)	To the Knowledge of the Sellers, the Product currently being Exploited has the formulation as described in the documents entitled
 “Laninamivir Octanoate Hydrate Inavir Powder for Inhalation 20mg 3.2.P Quality Drug Product” and “Laninamivir Octanoate
Hydrate Inavir Powder for Inhalation 20mg 3.2.S Quality Drug Substance”, each published by Daiichi.

 

		(h)	Daiichi has not requested any of the Sellers to assume responsibility for the maintenance of any of the Patent Rights.

 

Section 3.14 Exploitation; Material Information.

 

To the Knowledge of the Sellers, Daiichi is not considering
terminating the Exploitation of the Product.

 

Section 3.15 Taxes.

 

		(a)	No deduction or withholding for or on account of any tax (other than the Japanese Withholding Tax at a rate of 5%) has been made,
or was required to be made, from any payment by Daiichi to Sellers with respect to Royalties payable under the Commercialization Agreement.

 

		(b)	Since the current Australia-Japan Income Tax Treaty became effective, each Seller has been subject to
Japanese Withholding Tax at a rate of 5% with respect to Royalties payable under the Commercialization Agreement.

 

Article IV.

 

REPRESENTATIONS AND WARRANTIES OF BUYER

 

Buyer hereby represents and
warrants to Sellers that the following representations are true and complete as of the date of this Agreement, except as otherwise indicated:

 

Section 4.01 Organization.

 

Buyer is a limited partnership
formed and validly existing under the laws of the State of Delaware, and has all limited partnership powers and all licenses, authorizations,
consents and approvals required to carry on its business as now conducted and as proposed to be conducted in connection with the transactions
contemplated by the Transaction Documents.

 

Section 4.02 Authorization.

 

Buyer has all necessary limited
partnership power and authority to enter into, execute and deliver this Agreement and the other Transaction Documents and to perform all
of the obligations to be performed by it hereunder and thereunder and to consummate the transactions contemplated hereunder and thereunder.
Once signed, the Transaction Documents will have been duly authorized, executed and delivered by Buyer and each Transaction Document will
then constitute the valid and binding obligation of Buyer, enforceable against Buyer in accordance with their respective terms, subject,
as to enforcement of remedies, to bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights
generally or general equitable principles.

 

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Section 4.03 Broker’s Fees.

 

None of Buyer or its Affiliates
has taken any action that would entitle any Person to any commission or broker’s fee in connection with the transactions contemplated
by the Transaction Documents.

 

Section 4.04 Conflicts.

 

Neither the execution and
delivery of this Agreement or any other Transaction Document nor the performance or consummation of the transactions contemplated hereby
or thereby will: (i) contravene, conflict with, result in a breach or violation of, constitute a default under, or accelerate the
performance provided by, in any material respects, any provisions of: (A) any law, rule or regulation of any Governmental Authority,
or any judgment, order, writ, decree, permit or license of any Governmental Authority, to which Buyer or any of its assets or properties
may be subject or bound; or (B) any contract, agreement, commitment or instrument to which Buyer is a party or by which Buyer or
any of its assets or properties is bound or committed; (ii) contravene, conflict with, result in a breach or violation of, constitute
a default under, or accelerate the performance provided by, any provisions of the organizational or constitutional documents of Buyer;
or (iii) require any notification to, filing with, or consent of, any Person or Governmental Authority.

 

Article V.

 

COVENANTS

 

During the term of this Agreement, the following
covenants shall apply:

 

Section 5.01 Consents and Waivers.

 

Sellers and Buyer shall use
commercially reasonable efforts to obtain and maintain any required consents, acknowledgements, certificates or waivers so that the transactions
contemplated by this Agreement or any other Transaction Document may be consummated and shall not result in any default or breach or termination
of either License Agreement.

 

Section 5.02 Compliance.

 

		(a)	Each Seller shall comply with and fulfill, in all material respects, all of its respective obligations under the License Agreements.

 

		(b)	In the event either License Agreement is terminated for any reason whatsoever, each of Buyer and each Seller shall use commercially
reasonable efforts, at each Party’s respective cost and expense, to locate and secure a replacement licensee to develop, make, have
made, use, and sell the Product; provided that Buyer shall have the right to approve (which approval shall not be unreasonably
withheld or delayed) in writing such replacement licensee, and each Seller agrees to undertake in connection with such additional License
Agreement such obligations and liabilities as it currently has under the terminated License Agreement (such replacement arrangement shall,
for purposes of the assignment of the Assigned Rights hereunder, be deemed to constitute a “License Agreement” hereunder and
shall be subject to the terms and conditions hereof and of the other Transaction Documents).

 

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Section 5.03 Confidentiality; Public Announcement.

 

		(a)	Except as expressly authorized in this Agreement or the other Transaction Documents or except with the prior written consent of the
Disclosing Party, the Receiving Party hereby agrees that (i) it will use the Confidential Information of the Disclosing Party solely
for the purpose of the transactions contemplated by this Agreement and the other Transaction Documents and exercising its rights and remedies
and performing its obligations hereunder and thereunder; (ii) it will keep confidential the Confidential Information of the Disclosing
Party; and (iii) it will not furnish or disclose to any Person any Confidential Information of the Disclosing Party.

 

		(b)	Notwithstanding anything to the contrary set forth in this Agreement or any other Transaction Document, the Receiving Party may, without
the consent of the Disclosing Party, but with prior written notice when permissible to the Disclosing Party, furnish or disclose Confidential
Information of the Disclosing Party to (i) the Receiving Party’s Affiliates and their respective Representatives, actual or
potential financing sources, investors or co-investors and permitted assignees, Buyers, transferees or successors-in-interest under Section 8.03,
in each such case, who need to know such information in order to provide or evaluate the provision of financing to the Receiving Party
or any of its Affiliates or to assist the Receiving Party in evaluating the transactions contemplated by this Agreement and the other
Transaction Documents or in exercising its rights and remedies and performing its obligations hereunder and thereunder and who are, prior
to such furnishing or disclosure, informed of the confidentiality and non-use obligations contained in this Section 5.03 and
who are bound by written or professional confidentiality and non-use obligations no less stringent than those contained in this Section 5.03;
and (ii) permitted assignees, Buyers, transferees or successors-in-interest under Section 8.03, in each such case, who
need to know such information in connection with such actual or potential assignment, sale or transfer, including, following any such
assignment, sale or transfer, in order to exercise their rights and remedies and perform their obligations under this Agreement and the
other Transaction Documents and who are, prior to such furnishing or disclosure, informed of the confidentiality and non-use obligations
contained in this Section 5.03 and who are bound by written or professional confidentiality and non-use obligations no less
stringent than those contained in this Section 5.03.

 

		(c)	In the event that the Receiving Party, its Affiliates or any of their respective Representatives is required by applicable law, applicable
stock exchange requirements or legal or judicial process (including by deposition, interrogatory, request for documents, subpoena, civil
investigative demand or similar process) to furnish or disclose any portion of the Confidential Information of the Disclosing Party, the
Receiving Party shall, to the extent legally permitted, provide the Disclosing Party, as promptly as practicable, with written notice
of the existence of, and terms and circumstances relating to, such requirement, so that the Disclosing Party may seek, at its expense,
a protective order or other appropriate remedy (and, if the Disclosing Party seeks such an order, the Receiving Party, such Affiliates
or such Representatives, as the case may be, shall provide, at their expense, such cooperation as such Disclosing Party shall reasonably
require). Subject to the foregoing, the Receiving Party, such Affiliates or such Representatives, as the case may be, may disclose that
portion (and only that portion) of the Confidential Information of the Disclosing Party that is legally required to be disclosed; provided,
however, that the Receiving Party, such Affiliates or such Representatives, as the case may be, shall exercise reasonable efforts
(at their expense) to preserve the confidentiality of the Confidential Information of the Disclosing Party, including by obtaining reliable
assurance that confidential treatment will be accorded any such Confidential Information disclosed. Notwithstanding anything to the contrary
contained in this Agreement or any of the other Transaction Documents, in the event that the Receiving Party or any of its Affiliates
receives a request from an authorized representative of a U.S. or foreign tax authority for a copy of this Agreement or any of the other
Transaction Documents, the Receiving Party or such Affiliate, as the case may be, may provide a copy hereof or thereof to such tax authority
representative without advance notice to, or the consent of, the Disclosing Party; provided, however, that the Receiving
Party shall, to the extent legally permitted, provide the Disclosing Party with written notice of such disclosure as soon as practicable.

 

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		(d)	Notwithstanding anything to the contrary contained in this Agreement or any of the other Transaction Documents, the Receiving Party
may disclose the Confidential Information of the Disclosing Party, including this Agreement, the other Transaction Documents and the terms
and conditions hereof and thereof, to the extent necessary in connection with the enforcement of its rights and remedies hereunder or
thereunder or as required to perfect the Receiving Party’s rights hereunder or thereunder.

 

		(e)	Neither Party shall, and each Party shall cause its Affiliates not to, without the prior written consent of the other Party (which
consent shall not be unreasonably withheld or delayed), issue any press release or make any other public disclosure with respect to the
transactions contemplated by this Agreement or any other Transaction Document, except if and to the extent that any such release or disclosure
is required by applicable law, by the rules and regulations of any applicable stock exchange or by any Governmental Authority of
competent jurisdiction, in which case, the Party proposing (or whose Affiliate proposes) to issue such press release or make such public
disclosure shall use commercially reasonable efforts to consult in good faith with the other Party regarding the form and content thereof
before issuing such press release or making such public announcement.

 

		(f)	Except with respect to Buyer’s internal communications or private communications with its Representatives, Buyer shall not,
and shall cause its Representatives, its Affiliates and its Affiliates’ Representatives not to make use of the name, nickname, trademark,
logo, service mark, trade dress or other name, term, mark or symbol identifying or associated with any Seller without such Sellers’
prior written consent to the specific use in question; provided that the consent of such Seller shall not be required with respect
to publication of such Seller’s name and logos in Buyer’s promotional materials, including without limitation the websites
for Buyer and its Affiliates consistent with its use of other similarly situated Third Parties’ names and logos.

 

		(g)	Buyer and each Seller hereby (i) agree that, notwithstanding the terms thereof, the Confidentiality Agreement is hereby terminated
and (ii) acknowledge that this Agreement shall supersede such Confidentiality Agreement with respect to the treatment of Confidential
Information by the Parties (including, without limitation, with regard to Confidential Information previously provided pursuant to such
Confidentiality Agreement).

 

Section 5.04 Protective Rights Agreement.

 

For protective purposes only
and to secure each Seller’s performance of its obligations hereunder to the extent the assignment hereunder, as evidenced by the
Assignment, becomes subject to a Recharacterization despite the Parties’ intentions, each Seller shall execute and deliver the Protective
Rights Agreement at the Closing as contemplated by Section 6.02(d).

 

Section 5.05 Further Assurances.

 

		(a)	Subject to the terms and conditions of this Agreement, each of Buyer and Sellers will use commercially reasonable efforts to take,
or cause to be taken, all actions and to do, or cause to be done, all things necessary under applicable laws and regulations to consummate
the transactions contemplated by this Agreement and any other Transaction Document. Buyer and Sellers agree to execute and deliver such
other documents, certificates, agreements and other writings (including any financing statement filings, other documents, certificates
or agreements requested by Buyer) and to take such other actions as may be reasonably necessary to carry out and effectuate all of the
provisions of this Agreement and any other Transaction Document, to consummate the transactions contemplated by this Agreement and any
other Transaction Document and to vest in Buyer all of Sellers’ rights (whether joint, several or joint and several) under the License
Agreements, including, without limitation, the Assigned Rights, free and clear of all Liens, except those Liens created in favor of Buyer
pursuant to the Protective Rights Agreement and subject to the further provisions of this Agreement.

 

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		(b)	Except for disputes between the Parties, each of Buyer and Sellers shall cooperate and provide assistance as reasonably requested
by the other Party (and at no expense to the requesting Party unless the requesting Party is obligated to indemnify the other Party pursuant
to the requesting Party’s indemnification obligations provided for in this Agreement) in connection with any litigation, arbitration
or other proceeding (whether threatened, existing, initiated, or contemplated prior to, on or after the date hereof) to which any Party
or any of its officers, directors, shareholders, agents or employees is or may become a party or is or may become otherwise directly or
indirectly affected or as to which any such Persons have a direct or indirect interests, in each case relating to this Agreement or any
other Transaction Document, and the Assigned Rights, the License Agreements, the Collateral, or the transactions described herein or therein,
and, without limiting the generality of the preceding provision, shall provide promptly to the other Party copies of all correspondence,
reports (including royalty reports and worksheets), notices or other information sent by or on behalf of such Party to, or received by
or on behalf of such Party from, Licensee, in any case relating to the Assigned Rights, the Commercialization Agreement, or, solely to
the extent related to sales of the Product in the Territory, the Collaboration Agreement; it being understood that a Party’s failure
to provide such information shall not limit any otherwise applicable indemnification obligations under this Agreement of the other Party
other than to the extent of any final non-appealable order of a court of competent jurisdiction finding that a Loss was incurred by such
other Party as a result of such failure to provide such information. In particular, without limitation, Sellers shall, upon request of
Buyer, be available and fully cooperate with and support Buyer free of charge in connection with each License Agreement and its performance.

 

Section 5.06 Notice by Sellers; Enforcement of License Agreements.

 

		(a)	Sellers shall provide Buyer with written notice as promptly as practicable (and in any event within five
(5) Business Days) after becoming aware of any of the following:

 

		(i)	any breach or default by any Seller of any covenant, agreement
or other provision of this Agreement or any other Transaction Document;

 

		(ii)	any representation or warranty made or deemed made by any Seller
in any of the Transaction Documents or in any certificate delivered to Buyer pursuant to any Transaction Documents shall prove to be
untrue, inaccurate or incomplete in any material respect on the date as of which made or deemed made;

 

		(iii)	the occurrence of an Insolvency Event with respect to any Seller
or the occurrence of any equivalent event with respect to Licensee;

 

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		(iv)	any material breach or default by Licensee under either License
Agreement; and

 

		(v)	any written notice (including without limitation with respect
to the addition of either licensee under the Collaboration Agreement or any collaborator or sub-licensee under the Commercialization
Agreement), report (including without limitation royalty reports and worksheets) or other communication, together with copies of the
same, received from or on behalf of Licensee with respect to the Royalty Interest, any of the other Assigned Rights, the Commercialization
Agreement, or, solely to the extent related to sales of the Product in the Territory, the Collaboration Agreement.

 

		(b)	In the event any oral communication is received by any Seller from Licensee the substance of which is reasonably likely to materially
adversely impact the Assigned Rights, the Product, any Patent Rights or the ability of Licensee to distribute, market and/or sell the
Product, Sellers shall use their reasonable efforts to promptly inform Buyer of such oral communication and provide a reasonable description
of such oral communication.

 

		(c)	In the event Licensee is in breach or default of an obligation under either License Agreement in a manner that is reasonably likely
to adversely affect the Royalties, the Royalty Interest or the Assigned Rights, Sellers or Buyer, as applicable, shall inform the other
Party of such breach or default and shall provide reasonable detail regarding the nature of such breach or default. Sellers and Buyer
shall consult with each other regarding such breaches and defaults and as to the timing, manner and conduct of any enforcement of Licensee’s
obligations under the License Agreement relating thereto. If after ten (10) Business Days the Parties cannot agree on the timing,
manner and conduct of such enforcement, then Sellers shall take such actions as Buyer shall request to enforce Licensee’s obligations
under the License Agreements.

 

		(d)	Buyer shall have the sole right to determine the timing, manner and conduct of any enforcement of Licensees’ obligations under
the License Agreements as described in Section 5.06(c) above, including, without limitation, the selection of any counsel
to assist in such enforcement, and upon Buyer’s request, Sellers shall enforce compliance by such Licensee with the relevant provisions
of the License Agreements and exercise such rights and remedies relating to such breach or default or alleged breach or default as shall
be available to Sellers and as directed by Buyer, whether under the License Agreements or by operation of applicable law, including bringing
any legal action or suit requested by Buyer. No Seller shall consent to the entry of any judgment or enter into any compromise or settlement
with respect to such enforcement of the License Agreements against a Licensee without the prior written consent of Buyer.

 

		(e)	All out-of-pocket costs and expenses (including counsels’ fees and expenses) incurred in connection
with any enforcement pursuant to this Section 5.06 shall be borne by Buyer, provided that any amounts recovered as
a result of any judgment or other monetary award or settlement in respect of an action brought pursuant to this Section 5.06
shall be first applied to reimburse Buyer for its costs incurred in connection therewith and the remainder, if any, shall then be treated
as Royalty Interest.

 

Section 5.07 Patent Rights.

 

In the event that Daiichi elects to abandon any
pending application for or granted Patent Right material to the Assigned Rights, Sellers shall prosecute, file or maintain such application
or Patent Right to the fullest extent permitted under the License Agreements.

 

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Section 5.08 Negative Covenants.

 

No Seller shall, or shall any Seller permit any of its Subsidiaries
to, without the prior written consent of Buyer:

 

		(a)	forgive, release or reduce any amount, or delay or postpone (other than on a commercially reasonable basis)
any amount, owed to any Seller or its Subsidiaries relating to the Royalties;

 

		(b)	create, incur, assume or suffer to exist any Lien, upon or with respect to the Assigned Rights, the other Collateral or the right
to receive Royalty Interest Payments, or agree to do or suffer to exist any of the foregoing, except for any permitted Liens and any Lien
or agreements in favor of Buyer granted under or pursuant to this Agreement and the other Transaction Documents;

 

		(c)	waive, amend, cancel or terminate, exercise or fail to exercise, any material rights constituting or relating to the Royalties, the
Royalty Interest or any other Assigned Rights;

 

		(d)	amend, modify, restate, cancel, supplement, terminate or waive any provision of either License Agreement in the Territory, or grant
any consent thereunder, or agree to do any of the foregoing, including, without limitation, entering into any agreement with any Licensee
under the provisions of either License Agreement in the Territory; or

 

		(e)	sell, lease, license, transfer or assign (or attempt to do any of the foregoing) all or any portion of
the Patent Rights. Sellers recognize that they have no right to do any of the actions in Section 5.08(e).

 

Section 5.09 Future Agreements.

 

No Seller shall enter into, or permit any of its
Subsidiaries to enter into, any agreement that would or could reasonably be expected to result in a Material Adverse Effect without Buyer’s
prior written consent, which consent may be withheld, delayed or conditioned in Buyer’s sole and absolute discretion.

 

Section 5.10 Records; Access.

 

		(a)	During the term of this Agreement and for a period of two (2) years thereafter, Sellers shall keep and maintain proper books
of record and account in which full, true and correct entries in conformity with U.S. generally accepted accounting principles and all
requirements of applicable law are made of all dealings and transactions as are adequate to correctly calculate and verify the accuracy
of all reports and all Royalty Interest Payments.

 

		(b)	During the term of this Agreement:

 

		(i)	Buyer and its representatives shall have the right, from time
to time during normal business hours and upon at least fifteen (15) Business Days’ prior written notice to Sellers, but no more
frequently than one (1) time per calendar year without cause, as determined by Buyer in its reasonable discretion, to visit the
offices and properties of Sellers and their respective Subsidiaries where books and records relating or pertaining to the Royalty Interest
Payments, the Royalties, the Royalty Interest, the Assigned Rights and the other Collateral are kept and maintained, to inspect and make
extracts from and copies of such books and records, to discuss, with officers of Sellers and their respective Subsidiaries, the business,
operations, properties and financial and other condition of Sellers and their respective Subsidiaries and to verify the accuracy of the
reports, the Royalty Interest Payments and the Royalties. In the event any inspection of such books and records reveals any underpayment
of any Royalty Interest Payment in respect of any Fiscal Quarter, Sellers shall pay promptly (but in any event within five (5) Business
Days thereafter) to Buyer (i) the amount of such underpayment; and

 

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		(ii)	if such underpayment exceeds five percent (5%) of the Royalty
Interest Payment that was required to be made in respect of such Fiscal Quarter, the reasonable out-of-pocket fees and expenses incurred
by Buyer and its Affiliates in connection with such inspection will be borne by Sellers (in all other cases, such fees and expenses will
be borne by Buyer and its Affiliates). All information furnished or disclosed to Buyer or any of its representatives in connection with
any inspection shall constitute Confidential Information of Sellers and shall be subject to the provisions of Section 5.03.

 

		(c)	Sellers shall deliver to Buyer such information and data relating or pertaining to the Royalty Interest
Payments, the Royalties, the Royalty Interest, the Assigned Rights and the other Collateral as Buyer shall reasonably request, promptly
upon such request.

 

		(d)	Sellers shall on, on at least a quarterly basis, or more frequently if requested in writing by Buyer (such notice to be given at least
ten (10) Business Days’ in advance), cause such of the executive officers and employees of Sellers as shall be reasonably identified
by Buyer in such notice to meet, or, at Buyer’s option, to participate in a conference call with, Buyer for the purpose of discussing
the Product and the Assigned Rights.

 

Section 5.11 Remittance to Deposit Account; Set-Offs.

 

(a)           Pursuant
to the Daiichi Consent/Amendment, Australian Sellers shall instruct Licensee to remit all amounts payable to Australian Sellers pursuant
to the Commercialization Agreement directly to the Seller Deposit Account and may not change or otherwise amend such instruction without
the prior written consent of Buyer. All payments made to Australian Sellers on account of the Royalty Interest shall be held by Australian
Sellers in trust for the benefit of Buyer until remitted to Buyer pursuant to Section 5.11(b) of this Agreement. Sellers
shall have no right, title or interest whatsoever in such amounts and shall not create any Lien thereon. Amounts deposited into the Seller
Deposit Account shall be in United States dollars.

 

(b)           Upon
receipt by Australian Sellers from Licensee of amounts in respect of the Royalty Interest, Australian Sellers shall instruct the bank
holding the Seller Deposit Account to transfer such amounts from the Seller Deposit Account into the Buyer Deposit Account on the second
Business Day after such amounts are received in the Seller Deposit Account. Amounts deposited into the Buyer Deposit Account shall be
in United States dollars.

 

(c)           If
any Seller fails to pay any amount that it is contractually obligated to pay to Licensee, and, as a consequence of such failure to pay,
Licensee exercises a right of set-off and reduces amounts payable in respect of the Royalty Interest, then Sellers shall promptly, and
in any event no later than five (5) Business Days, following the date on which any Seller becomes aware of such setoff pay to Buyer
a sum equal to the amount of such reduction and in the currency in which the amount offset is denominated.

 

(d)           No
Seller shall close, change or otherwise modify the Seller Deposit Account or open a new deposit account for remittance of the amounts
payable pursuant to the License Agreements without the prior written consent of Buyer.

 

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Section 5.12 Certain Covenants of Buyer.

 

Subject in all events to the provisions of Section 5.06,

 

(a)            Buyer
will not communicate directly with Daiichi concerning the License Agreements, including the payment of royalties from Net Sales and commercialization
of the Product in the Territory.

 

(b)            Buyer
will not seek to enforce any of its rights under this Agreement directly against Daiichi.

 

Article VI.

 

THE CLOSING; CONDITIONS TO CLOSING

 

Section 6.01 Closing.

 

Subject to the closing conditions
set forth in Sections 6.02 and 6.03, and unless otherwise mutually agreed by the Parties, the closing of the transactions
contemplated under this Agreement shall take place remotely via electronic delivery of the executed Transaction Documents and other deliverables
at 9:00 a.m., Eastern Time, on the Closing Date.

 

Section 6.02 Conditions Applicable to Buyer.

 

The obligations of Buyer to effect the Closing
and pay the Closing Amount pursuant to Section 2.03 hereof, shall be subject to the satisfaction of the following conditions,
as of the Closing Date, any of which may be waived in writing by Buyer in its sole discretion:

 

		(a)	At Closing, the representations and warranties set forth in the Transaction Documents shall be true, correct and complete in all material
respects; provided, however, that if any of the foregoing representations and warranties are qualified as to “materiality”
or “Material Adverse Effect”, then, subject to such qualifications, such representations and warranties shall be true, correct
and complete in all respects; and Sellers shall have confirmed this in writing at the Closing.

 

		(b)	All notices to, consents (including the Daiichi Consent/Amendment), approvals, authorizations and waivers from Third Parties and Governmental
Authorities that are required for the consummation of the transactions contemplated by this Agreement or any of the Transaction Documents
shall have been obtained or provided for and shall remain in effect.

 

		(c)	All of the Transaction Documents (including without limitation, the Assignment) shall have been executed and delivered by Sellers
to Buyer, and Buyer shall have received the same.

 

		(d)	The Protective Rights Agreement shall have been duly executed and delivered by all the parties thereto, together with UCC-1 financing
statements for filing under the UCC in Delaware, Georgia and the District of Columbia, and such agreement shall be in full force and effect,
and such filings and the related registrations shall have been filed or made, as appropriate, and all requisite fees paid in connection
with such filings and registrations.

 

		(e)	Buyer shall have received opinions of counsel to (i) Sellers, substantially in the forms set forth in Exhibits E-1 (for transactional
counsel to Sellers) and E-2 (for Australian counsel to Sellers) and (ii) Buyer, substantially in the form set forth in Exhibit E-3.

 

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		(f)	Sellers shall have complied in all material respects with its obligations hereunder and under the other Transaction Documents.

 

		(g)	There shall not have occurred any event or circumstance (including any development with respect to the efficacy or safety of the Product)
that could reasonably be expected to have a Material Adverse Effect.

 

Section 6.03 Conditions Applicable to Sellers.

 

The obligations of Sellers
to effect the Closing shall be subject to the satisfaction of the following conditions, as of the Closing Date, any of which may be waived
in writing by Sellers in their sole discretion:

 

		(a)	The representations and warranties of Buyer set forth in the Transaction Documents shall be true, correct and complete in all material
respects.

 

		(b)	Buyer shall have complied in all material respects with its covenants set forth in the Transaction Documents.

 

Article VII.

 

TERMINATION

 

Section 7.01 Termination.

 

		(a)	This Agreement may be terminated, effective upon the delivery of written notice prior to or at the Closing:

 

		(i)	by Buyer if any of the conditions set forth in Section 6.02
shall not have been satisfied as of the Closing Date (other than through or as a result of the failure by Buyer to comply with its
obligations under this Agreement), and Buyer has not waived such condition on or before the Closing Date; or

 

		(ii)	by Sellers if any of the conditions set forth in Section 6.03
shall not have been satisfied as of the Closing Date (other than through or as a result of the failure by any Seller to comply with
its obligations under this Agreement), and Sellers have not waived such condition on or before the Closing Date.

 

		(b)	This Agreement shall terminate on the earlier of (x) the date on which this Agreement is terminated by either Party pursuant
to and in accordance with Section 7.01(a) and (y) the License Termination.

 

Section 7.02 Effects of Expiration or Termination.

 

		(a)	The expiration or termination of this Agreement for any reason shall not release either Party any obligation or liability which, at
the time of such expiration or termination, has already accrued to the other Party or which is attributable to a period prior to such
expiration or termination. Accordingly, if any obligations remain unpaid or any amounts are owed or any payments are required to be made
by either Party to the other Party on or after the date on which this Agreement expires or is terminated, this Agreement shall remain
in full force and effect until any and all such obligations, amounts or payments have been indefeasibly paid or made in accordance with
the terms of this Agreement, and solely for that purpose.

 

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		(b)	Notwithstanding anything herein to the contrary, the termination of this Agreement by a Party shall be without prejudice to other
remedies such Party may have at law or in equity (including any enforcement of its rights under any of the Transaction Documents) the
exercise of a right of termination shall not be an election of remedies.

 

		(c)	ARTICLE 1 and Sections 2.01(b), 2.01(c), 2.04, 5.02(b), 5.03, 5.05(b), 5.06(c) and
5.10(a) (but, in the case of Sections 5.02(b), 5.06(c), and 5.10(a), only if closing occurs), this Section 7.02
and ARTICLE VIII shall survive the termination of this Agreement for any reason. Except as otherwise provided in this Section 7.02,
all rights and obligations of the Parties under this Agreement shall terminate upon expiration or termination of this Agreement for any
reason.

 

Article VIII.

 

MISCELLANEOUS

 

Section 8.01 Survival.

 

Each representation and warranty
of the Parties contained herein and any certificate related to such representations and warranties will survive the Closing and continue
in full force and effect until the License Termination. Notwithstanding anything in this Agreement or implied by law to the contrary,
each covenant and obligation in this Agreement and any certificate or document delivered pursuant to this Agreement will survive the Closing.
Unless expressly waived pursuant to this Agreement, no representation, warranty, covenant, right or remedy available to any Person out
of or in connection with this Agreement will be deemed waived by any action or inaction of that Person (including consummation of the
Closing, any inspection or investigation, or the awareness of any fact or matter) at any time, whether before, on or after the Closing.

 

Section 8.02 Notices.

 

All notices, consents, waivers
and communications hereunder given by any Party to the other shall be in writing (including electronic mail) and delivered personally,
by electronic mail, by a recognized overnight courier, or by dispatching the same by certified or registered mail, return receipt requested,
with postage prepaid, in each case addressed:

 

If to Buyer to:

 

HealthCare Royalty Partners III, L.P.

300 Atlantic Street, 6th Floor

Stamford, CT 06901

Attention: Todd Davis

Email: Todd.Davis@hcroyalty.com

 

with courtesy copies (which shall not constitute notice)
to:

 

HealthCare Royalty Partners III, L.P.

300 Atlantic Street, 6th Floor

Stamford, CT 06901

Attention: Chief Legal Officer

Email: royalty-legal@hcroyalty.com

 

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and:

 

Cahill Gordon & Reindel LLP

80 Pine Street

New York, NY 10005

Attention: Geoffrey E. Liebmann

Email: gliebmann@cahill.com

 

If to any Seller to:

 

Aviragen Therapeutics, Inc.

2500 Northwinds Parkway

Suite 100

Alpharetta, GA 30009

Attention: Chief Executive Officer

Email: legal@biotapharma.com

 

with a courtesy copy to (which shall not constitute notice):

 

Dechert LLP

1095 Avenue of the Americas

New York, NY 10036

Attention: David Rosenthal

Email: david.rosenthal@dechert.com

 

or to such other address or addresses as Buyer
or Sellers may from time to time designate by notice as provided herein, except that notices of changes of address shall be effective
only upon receipt. All such notices, consents, waivers and communications shall: (a) when posted by certified or registered mail,
postage prepaid, return receipt requested, be effective five Business Days after dispatch, (b) when sent by electronic mail, be effective
upon receipt by the transmitting party of confirmation of complete transmission or return email or “read” receipt from the
recipient, or (c) when delivered by an internationally recognized overnight courier or in person, be effective upon receipt when
hand delivered.

 

Section 8.03 Successors and Assigns.

 

The provisions of this Agreement
shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns. No Seller shall be entitled
to assign any of its obligations and rights under the Transaction Documents without the prior written consent of Buyer; provided,
however, such consent shall not be required in connection with the merger or other consolidation of such Seller or the assignment
of such Seller’s obligations and rights by operation of law, so long as, the Person into which such Seller has been merged or consolidated
or which has acquired such assets of such Seller has delivered evidence, in form and substance reasonably satisfactory to Buyer, to Buyer
that such Person has assumed all of such Seller’s obligations under the Transaction Documents. Buyer may assign without consent
of Sellers any of its rights and obligations under the Transaction Documents without restriction. Any purported assignment in violation
of this Section 8.03 shall be null and void.

 

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Section 8.04 Indemnification.

 

		(a)	Each Seller hereby indemnifies and holds each Buyer Indemnified Party harmless from and against any and all Losses incurred
or suffered by any Buyer Indemnified Party arising out of (i) any breach of any representation, warranty or certification made by
any Seller in any of the Transaction Documents, (ii) any breach of or default under any covenant or agreement by any Seller pursuant
to any Transaction Document or either License Agreement, including any failure by any Seller to satisfy any of the Excluded Liabilities
and Obligations, or (iii) any claims asserted by any Third Party to the extent based on action taken by Buyer at the direction of
any Seller pursuant to the terms of this Agreement or otherwise at the direction of any Seller other than actions which Buyer would have
been obligated to take even if Buyer had not been so directed by Seller.

 

		(b)	Buyer hereby indemnifies and holds each Seller Indemnified Party harmless from and against any and all Losses incurred or suffered
by a Seller Indemnified Party arising out of (i) any breach of any representation, warranty or certification made by Buyer in any
of the Transaction Documents, (ii) any breach of or default under any covenant or agreement by Buyer pursuant to any Transaction
Document or (iii) any claims asserted by any Third Party to the extent based on action taken by any Seller at the direction of Buyer
pursuant to the terms of this Agreement or otherwise at the direction of Buyer other than actions which such Seller would have been obligated
to take even if such Seller had not been so directed by Buyer.

 

		(c)	If any Claim shall be brought or alleged against an indemnified party in respect of which indemnity is to be sought against an indemnifying
party pursuant to the preceding paragraphs, the indemnified party shall, promptly after receipt of notice of the commencement of any such
Claim, notify the indemnifying party in writing of the commencement of such Claim, enclosing a copy of all papers served, if any; provided
that the omission to so notify such indemnifying party will not relieve the indemnifying party from any liability that it may have
to any indemnified party under the foregoing provisions of this Section 8.04 unless, and only to the extent that, such omission
results in the forfeiture of, or has a material adverse effect on the exercise or prosecution of, substantive rights or defenses by the
indemnifying party. In case any such Claim is brought against an indemnified party and it notifies the indemnifying party of the commencement
thereof, the indemnifying party will be entitled to participate therein and, to the extent that it may wish, jointly with any other indemnifying
party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall not,
except with the consent of the indemnified party, be counsel to the indemnifying party), and after notice from the indemnifying party
to such indemnified party of its election so to assume the defense thereof, the indemnifying party will not be liable to such indemnified
party under this Section 8.04 for any legal or other expenses subsequently incurred by such indemnified party in connection
with the defense thereof other than reasonable costs of investigation. In any such proceeding, an indemnified party shall have the right
to retain its own counsel, but the reasonable fees and expenses of such counsel shall be at the expense of such indemnified party unless
(i) the indemnifying party and the indemnified party shall have mutually agreed to the retention of such counsel, (ii) the indemnifying
party has assumed the defense of such proceeding and has failed within a reasonable time to retain counsel reasonably satisfactory to
such indemnified party or (iii) the named parties to any such proceeding (including any impleaded parties) include both the indemnifying
party and the indemnified party and representation of both parties by the same counsel would be inappropriate due to actual or potential
conflicts of interests between them based on the advice of such counsel. The indemnifying party shall not be liable for any settlement
of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff,
the indemnifying party agrees to indemnify the indemnified party from and against any loss or liability by reason of such settlement or
judgment. No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending
or threatened proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought
hereunder by such indemnified party, unless such settlement includes an unconditional release of such indemnified party from all liability
on claims that are the subject matter of such proceeding.

 

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		(d)	Buyer or any Buyer Indemnified Party may take any action against Sellers to enforce or recover Losses pursuant to the indemnification
obligations of Sellers under this Section 8.04 without any requirement to take any action or exhaust any right or remedy against
any other Person; provided that Buyer agrees that Sellers shall then be subrogated to any and all other rights of Buyer to recovery
to the extent of such indemnification paid by Sellers (but excluding interest amounts and withholding tax gross-up payments). If any proceeds,
benefits or recoveries are received by or on behalf of a Buyer Indemnified Party with respect to Losses after Sellers have made an indemnification
payment to a Buyer Indemnified Party with respect thereto and receipt of such proceeds, benefits or recoveries prior to such payment would
have reduced the amount of such indemnification payment if received prior to such payment, then such Buyer Indemnified Party shall hold
such amounts in trust for the benefit of Sellers and, within three (3) Business Days after receipt thereof, deliver such amounts
(net of any applicable withholding tax) to Sellers by wire transfer of immediately available funds as directed by Sellers.

 

		(e)	Sellers shall not be liable to indemnify Buyer for any Losses arising from a breach of a representation or warranty unless and until
the aggregate amount of those Losses exceeds [**] at which point Sellers shall be liable to indemnify Buyer for all Losses arising from
a breach of a representation or warranty.

 

		(f)	The maximum aggregate indemnification obligation of the Sellers under this Agreement shall be [**] of the Base Amount. Notwithstanding
the foregoing, no maximum indemnification threshold shall apply (i) for breaches of this Agreement in the event such breach is a
result of actual fraud, gross negligence or willful misconduct by a Seller in connection with this Agreement or (ii) to any indemnification
for any failure by any Seller to satisfy any of the Excluded Liabilities and Obligations or for any breach of or default under any covenant
or agreement by any Seller set forth in Section 5.06, Section 5.07 or Section 5.11.

 

Section 8.05 Independent Nature of Relationship; Taxes.

 

		(a)	The relationship between Sellers, on the one hand, and Buyer, on the other hand, is solely that of assignor and assignee, and neither
Buyer, on the one hand, nor any Seller, on the other hand, has any fiduciary or other special relationship with the other or any of their
respective Affiliates. For the avoidance of doubt, nothing in this Agreement shall be read to create any agency, partnership, association
or joint venture of any Seller (or any of its Affiliates) and Buyer (or any of its Affiliates) and each Party agrees not to refer to the
other as a “partner” or the relationship as a “partnership” or “joint venture” or other kind of entity
or legal form.

 

		(b)	Except as otherwise contemplated herein, no Party shall at any time obligate the other Party, or impose on such other Party any obligation,
in any manner or respect to any Third Party.

 

		(c)	For United States federal, state and local tax purposes, each Seller and Buyer shall treat the transactions contemplated by the Transaction
Documents as a sale.

 

    30

    

    

 

		(d)	The Parties hereto agree not to take any position that is inconsistent with the provisions of this Section 8.05 on any
tax return or in any audit or other administrative or judicial proceeding unless (i) the other Party to this Agreement has consented
to such actions, or (ii) the Party that contemplates taking such an inconsistent position has been advised by nationally recognized
tax counsel in writing that it is more likely than not that (x) there is no “reasonable basis” (within the meaning of
Treasury Regulation Section 1.6662-3(b)(3)) for the position specified in this Section 8.05 or (y) taking such a
position would otherwise subject the Party to penalties under the Internal Revenue Code of 1986, as amended. If a Governmental Authority
conducts an inquiry of any Seller or Buyer related to this Section 8.05, the Parties hereto shall cooperate with each other
in responding to such inquiry in a reasonable manner consistent with this Section 8.05.

 

		(e)	All payments to Buyer under this Agreement shall be made without any deduction or withholding for or on account of any tax; provided
that if deduction or withholding is required from any payment under this Agreement, the sum payable shall be increased and paid by Sellers
or any of their respective Affiliates as necessary so that after all required deductions and withholdings have been made, Buyer receives
an amount equal to the amount it would have received had no such deductions or withholding been made: provided further, Sellers
shall not be required to indemnify Buyer under this Section 8.05(e) for any Japanese Withholding Tax deducted or withheld
by Daiichi on the payments of Royalties under the Commercialization Agreement to the extent such Japanese Withholding Tax does not exceed
5% of the Royalties payable by Daiichi under the Commercialization Agreement. Sellers shall promptly notify Buyer in writing in the event
that any deduction or withholding is effected or proposed by Sellers or any Governmental Authority, with respect to any such payments
hereunder.

 

Section 8.06 Entire Agreement.

 

This Agreement, together with
the Exhibits and Schedules hereto (which are incorporated herein by reference), and the other Transaction Documents constitute the entire
agreement between the Parties with respect to the subject matter hereof and supersede all prior agreements (including the Confidentiality
Agreement), understandings and negotiations, both written and oral, between the Parties with respect to the subject matter of this Agreement.
Neither this Agreement nor any provision hereof (other than Section 8.03), is intended to confer upon any Person other than
the Parties any rights or remedies hereunder.

 

Section 8.07 Amendments; No Waivers.

 

		(a)	This Agreement or any term or provision hereof may not be amended, changed or modified except with the written consent of both Parties.
No waiver of any right hereunder shall be effective unless such waiver is signed in writing by the Party against whom such waiver is sought
to be enforced.

 

		(b)	No failure or delay by either Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall
any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

 

		(c)	No waiver or approval hereunder shall, except as may otherwise be stated in such waiver or approval, be applicable to subsequent transactions.
No waiver or approval hereunder shall require any similar or dissimilar waiver or approval thereafter to be granted hereunder. The rights
and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by applicable law.

 

    31

    

    

 

Section 8.08 Interpretation.

 

When a reference is made in
this Agreement to Articles, Sections, Schedules or Exhibits, such reference shall be to an Article, Section, Schedule or Exhibit to
this Agreement unless otherwise indicated. The words “include”, “includes” and “including” when used
herein shall be deemed in each case to be followed by the words “without limitation”. Neither Party shall be or be deemed
to be the drafter of this Agreement for the purposes of construing this Agreement against one Party or the other.

 

Section 8.09 Headings and Captions.

 

The headings and captions
in this Agreement are for convenience and reference purposes only and shall not be considered a part of or affect the construction or
interpretation of any provision of this Agreement.

 

Section 8.10 Counterparts; Effectiveness.

 

This Agreement may be executed
in two or more counterparts, each of which shall be an original, but all of which together shall constitute one and the same instrument.
This Agreement shall become effective when each Party shall have received a counterpart hereof signed by the other Party. Any counterpart
may be executed by facsimile or .pdf signature and such facsimile or .pdf signature shall be deemed an original.

 

Section 8.11 Severability.

 

If any provision of this Agreement
is held to be invalid or unenforceable, the remaining provisions shall nevertheless be given full force and effect. Any provision of this
Agreement held invalid or unenforceable only in part or degree by a court of competent jurisdiction shall remain in full force and effect
to the extent not held invalid or unenforceable.

 

Section 8.12 Expenses.

 

Sellers will pay all of their
fees and expenses in connection with entering into and consummating the transactions contemplated by this Agreement as well as the Expense
Reimbursement Amount.

 

Section 8.13 Governing Law; Jurisdiction.

 

		(a)	This Agreement shall be governed by, and construed, interpreted and enforced in accordance with, the laws of the State of New York,
USA without giving effect to the principles of conflicts of law thereof (other than Section 5-1401 of the General Obligations Law
of the State of New York). Each Party unconditionally and irrevocably consents to the exclusive jurisdiction of the courts of the State
of New York, USA located in the County of New York and the Federal district court for the Southern District of New York located in the
County of New York with respect to any suit, action or proceeding arising out of or relating to this Agreement or the transactions contemplated
hereby. Each Party hereby further irrevocably waives any objection, including any objection to the laying of venue or based on the grounds
of forum non conveniens, which it may now or hereafter have to the bringing of any action or proceeding in such jurisdiction in
respect of any Transaction Document.

 

		(b)	Each Party hereby irrevocably consents to the service of process out of any of the courts referred to in subsection (a) above
of this Section 8.13 in any such suit, action or proceeding by the mailing of copies thereof by registered or certified mail,
postage prepaid, to it at its address set forth in this Agreement. Each Party hereby irrevocably waives any objection to such service
of process and further irrevocably waives and agrees not to plead or claim in any suit, action or proceeding commenced hereunder or under
any other Transaction Document that service of process was in any way invalid or ineffective. Nothing herein shall affect the right of
a Party to serve process on the other Party in any other manner permitted by law.

 

    32

    

    

 

Section 8.14 Waiver of Jury Trial.

 

EACH PARTY HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM
ARISING OUT OF OR RELATING TO ANY TRANSACTION DOCUMENT OR THE TRANSACTIONS CONTEMPLATED UNDER ANY TRANSACTION DOCUMENT (WHETHER BASED
ON CONTRACT, TORT OR ANY OTHER THEORY). THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO
ANY TRANSACTION DOCUMENT. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HERETO HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE OTHER PARTY HERETO WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS,
THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 8.14.

 

[SIGNATURE PAGE FOLLOWS]

 

    33

    

    

 

IN WITNESS WHEREOF, the Parties have caused
this Agreement to be duly executed by their respective authorized officers as of the date first above written.

 

	SELLERS:	Aviragen Therapeutics, Inc.
	 	 	 
	 	By:	                                
	 	Name:
	 	Title:
	 	 	 
	 	 	 
	 	Biota Scientific Management Pty. Ltd.
	 	 	 
	 	By:	     
	 	Name:
	 	Title:
	 	 	 
	 	By:	     
	 	Name:
	 	Title:
	 	 	 
	 	 	 
	 	Biota Holdings Pty Ltd
	 	 	 
	 	By:	     
	 	Name:
	 	Title:
	 	 	 
	 	By:	     
	 	Name:
	 	Title:
	 	 	 
	 	 	 
	BUYER:	HealthCare Royalty Partners III, L.P.
	 	By: HealthCare Royalty GP III, LLC, its general partner
	 	 	 
	 	 	 
	 	By:	 
	 	Name:
	 	Title:

 

[Signature
Page to Royalty Interest Acquisition Agreement]

 

    

    

    

 

Exhibit A-1

 

Collaboration Agreement

 

[See attached]

 

    

    

    

 

Exhibit A-2

 

Commercialization Agreement

 

[See attached]

 

    

    

    

 

Exhibit B

 

Form of Assignment

 

[See attached]

 

    

    

    

 

Exhibit C

 

Form of Daiichi Consent/Amendment

 

[See attached]

 

    

    

    

 

Exhibit D

 

Form of Protective Rights Agreement

 

[See attached]

 

    

    

    

 

Exhibit E-1

 

Form of Opinion of Counsel (Transaction Opinion)

 

[See attached]

 

Exhibit E-2

 

Form of Opinion of Counsel (Australian Counsel)

 

[See attached]Exhibit E-3

 

    

    

    

 

Form of
Opinion of Counsel (Buyer Counsel)

 

[See attached]

 

    

    

    

 

Schedule 3.03

 

Litigation

 

None.

 

    

    

    

 

Schedule
3.09

 

Net Sales for the Fiscal Quarter ending December 31,
2015

 

[See attached]

 

     

     

    

 

Schedule 3.10

 

Broker’s Fees

 

Pursuant
to the terms of the letter agreement dated December 8, 2015 between Aviragen and FBR Capital Markets & Co., Aviragen has
agreed to pay FBR Capital Markets & Co. certain fees and commissions in connection with the transactions contemplated by the
Transaction Agreements.

 

     

     

    

 

Schedule 3.13

 

Patent Rights

 

[See attached]

 

     

     

    

 

10.2

 

PROTECTIVE RIGHTS AGREEMENT

 

THIS PROTECTIVE RIGHTS AGREEMENT (this “Agreement”)
is made and entered into as of April 22, 2016 by and between Aviragen Therapeutics, Inc. (formerly known as Biota Pharmaceuticals, Inc.),
a Delaware corporation (“Aviragen”), Biota Holdings Pty Ltd (formerly known as Biota Holdings Limited), a corporation
organized and existing under the laws of Victoria, Australia (“BHPL”), Biota Scientific Management Pty. Ltd., a corporation
organized and existing under the laws of Victoria, Australia (“BSM” and, together with Aviragen and BHPL, “Grantors”),
and HealthCare Royalty Partners III, L.P., a Delaware limited partnership (“HC Royalty”).

 

RECITALS:

 

A.            Grantors
and HC Royalty are parties to that certain Royalty Interest Acquisition Agreement of even date herewith.

 

B.            The
Royalty Interest Acquisition Agreement provides that Grantors have agreed to assign to HC Royalty, and HC Royalty has agreed to acquire
from Grantors, the Assigned Rights (as defined in the Royalty Interest Acquisition Agreement).

 

C.            Grantors
have agreed pursuant to the terms of the Royalty Interest Acquisition Agreement to enter into this Agreement, under which Grantors grant
to HC Royalty a security interest in and to the Collateral as security for the due performance and payment of all of Grantors’ obligations
to HC Royalty under the Royalty Interest Acquisition Agreement.

 

AGREEMENT:

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Grantors and HC Royalty, with intent to be legally bound hereby, covenant
and agree as follows:

 

SECTION 1.      Definitions.

 

For purposes of this Agreement, capitalized terms
used herein shall have the meanings set forth below. Capitalized terms used herein and not otherwise defined shall have the meaning given
such terms in the UCC or the Royalty Interest Acquisition Agreement, as applicable.

 

“Agreement”
has the meaning set forth in the preamble to this Agreement.

 

“Aviragen” has the meaning set forth in the preamble to this Agreement.

 

“BHPL” has the meaning set forth in the preamble to this Agreement.

 

“BSM” has the meaning set forth in the
preamble to this Agreement.

 

“Collateral” has the meaning set forth in Section 2 of this Agreement.

 

     

     

    

 

“HC Royalty” has the meaning set forth in
the preamble to this Agreement.

 

“Party” means any of the Grantors
or HC Royalty as the context indicates and “Parties” shall mean all of the Grantors and HC Royalty.

 

“Royalty Interest Acquisition Agreement”
means the Royalty Interest Acquisition Agreement entered into as of the date hereof by and between Aviragen, BHPL, BSM and HC Royalty,
as the same may be amended, modified or supplemented in accordance with the terms thereof.

 

“Secured Obligations” means all
obligations and liabilities of every nature of Grantors now or hereafter existing under or arising out of or in connection with the Royalty
Interest Acquisition Agreement and each other Transaction Document to which it is a party, whether for damages, principal, interest, reimbursement
of fees, expenses, indemnities or otherwise (including without limitation interest, fees and other amounts that, but for the filing of
a petition in bankruptcy with respect to a Grantor, would accrue on such obligations, whether or not a claim is allowed against such Grantor
for such interest, fees and other amounts in the related bankruptcy proceeding), whether voluntary or involuntary, direct or indirect,
absolute or contingent, liquidated or unliquidated, whether or not jointly owed with others, and whether or not from time to time decreased
or extinguished and later increased, created or incurred, and all or any portion of such obligations or liabilities that are paid, to
the extent all or any part of such payment is avoided or recovered directly or indirectly from HC Royalty as a preference, fraudulent
transfer or otherwise.

 

“Transfer” means any sale, conveyance, assignment,
disposition, pledge, hypothecation or transfer.

 

“UCC” means the Uniform Commercial
Code, as in effect on the date of this Agreement in the State of New York.

 

SECTION 2.      Grant of Security.

 

Grantors hereby grant HC Royalty a security interest
in all of its right, title, and interest in, to and under the following property, whether now or hereinafter existing or acquired, whether
tangible or intangible and wherever the same may be located (collectively, the “Collateral”):

 

(a)            the
Assigned Rights, including, without limitation, the Royalty Interest, whether it constitutes an account or a payment intangible under
the UCC, and whether or not evidenced by an instrument or a general intangible, and the absolute right to payment and receipt of the Royalty
Interest under or pursuant to the License Agreements;

 

(b)            the
Seller Deposit Account;

 

(c)            all
books, records and databases of Grantors relating to any of the foregoing Collateral; and

 

    - 2 -

     

    

 

(d)            all
Proceeds of or from any and all of the foregoing Collateral, including all payments under any indemnity, warranty or guaranty, and
all money now or at any time in the possession or under the control of, or in transit to, HC Royalty, relating to any of the
foregoing Collateral.

 

Each item of Collateral listed in this Section 2
that is defined in Article 9 of the UCC shall have the meaning set forth in the UCC, it being the intention of Grantors that the
description of the Collateral set forth above be construed to include the broadest possible range of assets described herein.

 

The Assigned Rights have been sold, assigned, transferred
and conveyed to HC Royalty pursuant to the Royalty Interest Acquisition Agreement and it is the intention of the Parties that such transaction
be treated as a true and absolute sale. The security interest granted in this Section 2 is granted as a precaution against
the possibility, contrary to the Parties’ intentions, that the transaction be characterized as other than a true and absolute sale.

 

SECTION 3.      Security for Obligations.

 

This Agreement secures, and the Collateral is collateral
security for, the due and punctual payment or performance in full (including without limitation the payment of amounts that would become
due but for the operation of the automatic stay under Subsection 362(a) of the United States Bankruptcy Code) of all Secured Obligations.

 

SECTION 4.      Grantors to Remain Liable.

 

Anything contained herein to the contrary notwithstanding,
(a) Grantors shall remain liable under any contracts and agreements included in the Collateral, to the extent set forth therein,
to perform all of their respective duties and obligations thereunder to the same extent as if this Agreement had not been executed, (b) the
exercise by HC Royalty of any of its rights hereunder shall not release Grantors from any of their duties or obligations under the contracts
and agreements included in the Collateral, and (c) HC Royalty shall not have any obligation or liability under any contracts, licenses,
and agreements included in the Collateral by reason of this Agreement, nor shall HC Royalty be obligated (i) to perform any of the
obligations or duties of Grantors thereunder, (ii) to take any action to collect or enforce any claim for payment assigned hereunder,
or (iii) to make any inquiry as to the nature or sufficiency of any payment Grantors may be entitled to receive thereunder.

 

SECTION 5.      Representations and Warranties.

 

Grantors represent and warrant as follows:

 

(a)            Validity.
This Agreement creates a valid security interest in the Collateral securing the payment and performance in full of the Secured
Obligations. Upon the filing of appropriate UCC financing statements in the filing offices listed on Schedule 5(b), all
filings, registrations, recordings and other actions necessary or appropriate to create, preserve, protect and perfect a first
priority security interest will have been accomplished and such security interest will be prior to the rights of all other Persons
therein and free and clear of any and all Liens, except any Liens created in favor of HC Royalty pursuant to this Agreement and any
other Transaction Document to which HC Royalty is a party.

 

    - 3 -

     

    

 

(b)            Authorization,
Approval. No authorization, approval, or other action by, and no notice to or filing with, any government or agency of any government
or other Person is required either (i) for the grant by Grantors of the security interest granted hereby or for the execution, delivery
and performance of this Agreement by Grantors; or (ii) for the perfection of, and the first priority of, the grant of the security
interest created hereby or the exercise by HC Royalty of its rights and remedies hereunder, other than in the case of clause (i), the
consent of Daiichi Sankyo Company, Limited pursuant to clause 16.1 of the Commercialization Agreement, and in the case of clause (ii),
the filing of financing statements in the offices listed on Schedule 5(b).

 

(c)            Enforceability.
This Agreement is the legally valid and binding obligation of Grantors, enforceable against Grantors in accordance with its terms, subject,
as to enforcement of remedies, to bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights
generally or general equitable principles.

 

(d)            Office
Locations; Type and Jurisdiction of Organization. The sole place of business, the chief executive office and each office where each
Grantor keeps its records regarding the Collateral are, as of the date hereof, located at the locations set forth on Schedule 5(d);
each Grantor’s type of organization (e.g., corporation) and jurisdiction of organization are listed on Schedule 5(d).

 

(e)            Names.
Except as set forth on Schedule 5(e), no Grantor (or any predecessor by merger or otherwise) has, within the five (5) year
period preceding the date hereof, had a different name from the name listed for such Grantor on the signature pages hereof.

 

(f)            Ownership
of Collateral; No Other Filings. Except for the security interest created by this Agreement, Grantors own the Collateral free and
clear of any Lien, except those Liens created in favor of HC Royalty pursuant to any other Transaction Document to which HC Royalty is
a party. Each Grantor has the power to transfer and grant a lien and security interest in each item of Collateral upon which it purports
to grant a lien or security interest hereunder. Except as such as may have been filed in favor of HC Royalty relating to this Agreement,
no effective financing statement or other instrument similar in effect covering all or any part of the Collateral is on file in any filing
or recording office. No recordation of Licensee’s licensed rights in the subject patents has been made with the United States Patent
and Trademark Office.

 

SECTION 6.       Further Assurances.

 

Grantors agree that from time to time, at their expense,
Grantors will promptly execute and deliver and will cause to be executed and delivered all further instruments and documents, and will
take all further action, that may be necessary, or that HC Royalty may reasonably request, in order to perfect and protect any security
interest granted or purported to be granted hereby or to enable HC Royalty to exercise and enforce its rights and remedies hereunder with
respect to any Collateral. Without limiting the generality of the foregoing, Grantors will: (i) deliver such other instruments or
notices, in each case, as may be necessary, or as HC Royalty may reasonably request, in order to perfect and preserve the security interests
granted or purported to be granted hereby or to enable HC Royalty to exercise and enforce its rights and remedies hereunder with respect
to any Collateral, (ii) furnish to HC Royalty reports in connection with the Collateral as HC Royalty may reasonably request, all
in reasonable detail, (iii) appear in and defend any action or proceeding that may affect Grantors’ title to or HC Royalty’s
security interest in all or any part of the Collateral, and (iv) use commercially reasonable efforts to obtain any necessary consents
of third parties to the assignment and perfection of a security interest to HC Royalty with respect to any Collateral. Grantors hereby
authorize HC Royalty to file one or more financing or continuation statements, and amendments thereto, relative to all or any part of
the Collateral.

 

    - 4 -

     

    

 

Grantors agree to furnish HC Royalty promptly upon
reasonable request by HC Royalty, with any information that is requested by HC Royalty in order to complete such financing statements,
continuation statements, or amendments thereto.

 

SECTION 7.     Certain Covenants of Grantors.

 

Grantors shall:

 

(a)            not
use or permit any Collateral to be used unlawfully or in violation of any provision of the Transaction Documents or any applicable statute,
regulation or ordinance or any policy of insurance covering the Collateral;

 

(b)            give
HC Royalty twenty (20) Business Days’ prior written notice of any change in any Grantor’s name, identity or corporate structure
or reincorporation, reorganization, or taking of any other action that results in a change of the jurisdiction of organization of any
Grantor;

 

(c)            give
HC Royalty twenty (20) Business Days’ prior written notice of any change in any Grantor’s sole place of business, chief executive
office or the office where any Grantor keeps its records regarding the Collateral or a reincorporation, reorganization or other action
that results in a change of the jurisdiction of organization of any Grantor; and

 

(d)            pay
promptly when due all taxes, assessments and governmental charges or levies imposed upon, and all claims against, the Collateral, except
to the extent the validity thereof is being diligently contested in good faith and the applicable Grantor maintains reserves appropriate
therefor under the generally accepted accounting principles used by such Grantor in the preparation of its financial statements; provided
that Grantors shall in any event pay such taxes, assessments, charges, levies or claims not later than three (3) Business Days prior
to the date of any proposed sale under any judgment, writ or warrant of attachment entered or filed against Grantors or any of the Collateral
as a result of the failure to make such payment.

 

    - 5 -

     

    

 

SECTION 8.       Special Covenants With Respect to the
Collateral.

 

(a)            Each
Grantor shall:

 

(i)            diligently
keep reasonable records respecting the Collateral and at all times keep at least one (1) complete set of its records concerning such
Collateral at its chief executive office or principal place of business;

 

(ii)            not
create, incur, assume or cause to exist any Lien on any property included within the definition of Collateral except any Liens created
in favor of HC Royalty pursuant to this Agreement and any other Transaction Document to which HC Royalty is a party; and

 

(iii)            not
Transfer, or agree to Transfer, any Collateral.

 

(b)            Grantors
shall, concurrently with the execution and delivery of this Agreement, execute and deliver to HC Royalty five (5) originals of a
Special Power of Attorney in the form of Exhibit I annexed hereto for execution of an assignment of the Collateral to HC Royalty,
or the implementation of the sale or other disposition of the Collateral pursuant to HC Royalty’s good faith exercise of the rights
and remedies granted hereunder; provided, however, HC Royalty agrees that it will not exercise its rights under such Special
Power of Attorney unless a default under one or more of the Transaction Documents has occurred and is continuing.

 

(c)            Grantors
further agrees that a breach of any of the covenants contained in this Section 8 will cause irreparable injury to HC Royalty,
that HC Royalty has no adequate remedy at law in respect of such breach and, as a consequence, that each and every covenant contained
in this Section 8 shall be specifically enforceable against Grantors, and Grantors hereby waive and agree not to assert any
defenses against an action for specific performance of such covenants (other than any such defense based on the assertion that Grantors
had performed and is performing such covenant(s)).

 

SECTION 9.      Deposit Account Control Agreement.

 

HC Royalty, Grantors and the account bank shall on
the Closing Date enter into a deposit account control agreement in a form and substance reasonably acceptable to HC Royalty providing
that upon any default under the Transaction Documents HC Royalty shall have a right to instruct the account bank with respect to the disposition
of funds in the Seller Deposit Account in order to receive the Royalty Interest and to perfect HC Royalty’s interest in the Seller
Deposit Account by “control” within the meaning of the UCC.

 

SECTION 10.    Standard of Care.

 

The powers conferred on HC Royalty hereunder are
solely to protect its interest in the Collateral and shall not impose any duty upon it to exercise any such powers. Except for the exercise
of good faith and of reasonable care in the accounting for moneys actually received by HC Royalty hereunder, HC Royalty shall have no
duty as to any Collateral or as to the taking of any necessary steps to preserve rights against prior parties or any other rights pertaining
to any Collateral. HC Royalty shall be deemed to have exercised reasonable care in the custody and preservation of Collateral in its possession
if such Collateral is accorded treatment substantially equal to that which HC Royalty accords its own property.

 

    - 6 -

     

    

 

SECTION 11.     Remedies Upon Default.

 

(a)            If,
and only if, any default under one or more of the Transaction Documents shall have occurred and be continuing, HC Royalty may, in good
faith, exercise in respect of the Collateral (I) all rights and remedies provided for herein, under the Royalty Interest Acquisition
Agreement or otherwise available to it, and (II) all the rights and remedies of a secured party on default under the Uniform Commercial
Code, in all relevant jurisdictions.

 

(b)            Anything
contained herein to the contrary notwithstanding, upon the occurrence and during the continuation of a default under one or more of the
Transaction Documents, HC Royalty shall have the right (but not the obligation) to bring suit, in the name of Grantors, HC Royalty or
otherwise, to enforce any Collateral, in which event Grantors shall, at the request of HC Royalty, do any and all lawful acts and execute
any and all documents required by HC Royalty in aid of such enforcement. Grantors shall promptly, upon demand, reimburse and indemnify
HC Royalty as provided in Section 13 hereof in connection with the exercise of its rights under this Section 11.

 

SECTION 12.     Application of Proceeds.

 

Except as expressly provided elsewhere in this Agreement,
all proceeds received by HC Royalty in respect of any sale of, collection from, or other realization upon all or any part of the Collateral
shall be applied in good faith to satisfy (to the extent of the net proceeds received by HC Royalty) such item or part of the Secured
Obligations as HC Royalty may designate.

 

SECTION 13.     Expenses.

 

(a)            Grantors
agree to pay to HC Royalty upon demand the amount of any and all costs and expenses, including the reasonable fees and expenses of its
counsel and of any experts and agents, that HC Royalty may reasonably and actually incur in connection with (i) the custody, preservation,
use or operation of, or the sale of, collection from, or other realization upon, any of the Collateral, (ii) the exercise or enforcement
of any of the rights of HC Royalty hereunder, or (iii) the failure by Grantors to perform or observe any of the provisions hereof.

 

(b)            The
obligations of Grantors in this Section 13 shall survive the termination of this Agreement and the discharge of Grantors’
other obligations under this Agreement and the Royalty Interest Acquisition Agreement.

 

SECTION 14.    Continuing Security Interest; Termination.

 

This Agreement shall create a continuing security
interest in the Collateral and shall (i) remain in full force and effect until termination of the Royalty Interest Acquisition Agreement
in accordance with Section 7.01(b) thereof, (ii) be binding upon each Grantor and its respective successors and
assigns, and (iii) inure, together with the rights and remedies of HC Royalty hereunder, to the benefit of HC Royalty and its successors,
transferees and assigns. Upon termination of the Royalty Interest Acquisition Agreement in accordance with Section 7.01(b) 
thereof, the security interest granted hereby shall terminate and all rights to the Collateral shall revert to Grantors and HC Royalty
shall, at the expense of the Grantors, execute such instruments of release and otherwise take such actions, or permit the Grantors to
take such actions, as the Grantors may reasonably request to release the Collateral from the security interest granted hereby.

 

    - 7 -

     

    

 

SECTION 15.    Amendments.

 

(a)            This
Agreement or any term or provision hereof may not be amended, changed or modified except with the written consent of all Parties and the
approval of such amendment, change or modification by Australian counsel to HC Royalty. No waiver of any right hereunder shall be effective
unless such waiver is signed in writing by the Party against whom such waiver is sought to be enforced.

 

(b)            No
failure or delay by either Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any
single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

 

(c)            No
waiver or approval hereunder shall, except as may otherwise be stated in such waiver or approval, be applicable to subsequent transactions.
No waiver or approval hereunder shall require any similar or dissimilar waiver or approval thereafter to be granted hereunder. The rights
and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by applicable law.

 

SECTION 16.    Notices.

 

All notices, consents, waivers and other communications
hereunder shall be in writing and shall be delivered in accordance with Section 8.02 of the Royalty Interest Acquisition Agreement.

 

SECTION 17.     Severability.

 

If any provision of this Agreement is held to be
invalid or unenforceable, the remaining provisions shall nevertheless be given full force and effect. Any provision of this Agreement
held invalid or unenforceable only in part or degree by a court of competent jurisdiction shall remain in full force and effect to the
extent not held invalid or unenforceable.

 

SECTION 18.     Headings and Captions.

 

The headings and captions in this Agreement are for
convenience and reference purposes only and shall not be considered a part of or affect the construction or interpretation of any provision
of this Agreement.

 

SECTION 19.     Governing Law; Jurisdiction.

 

(a)            This
Agreement shall be governed by, and construed, interpreted and enforced in accordance with, the laws of the State of New York, USA without
giving effect to the principles of conflicts of law thereof (other than Section 5-1401 of the General Obligations Law of the State
of New York). Each Party unconditionally and irrevocably consents to the exclusive jurisdiction of the courts of the State of New York,
USA located in the County of New York and the Federal district court for the Southern District of New York located in the County of New
York with respect to any suit, action or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.
Each Party hereby further irrevocably waives any objection, including any objection to the laying of venue or based on the grounds of
forum non conveniens, which it may now or hereafter have to the bringing of any action or proceeding in such jurisdiction in respect
of any Transaction Document.

 

    - 8 -

     

    

 

(b)            Each
Party hereby irrevocably consents to the service of process out of any of the courts referred to in subsection (a) above of this
Section 19 in any such suit, action or proceeding by the mailing of copies thereof by registered or certified mail, postage
prepaid, to it at its address set forth in this Agreement. Each Party hereby irrevocably waives any objection to such service of process
and further irrevocably waives and agrees not to plead or claim in any suit, action or proceeding commenced hereunder or under any other
Transaction Document that service of process was in any way invalid or ineffective. Nothing herein shall affect the right of a Party
to serve process on the other Party in any other manner permitted by law.

 

SECTION 20.       Waiver
of Jury Trial.

 

EACH PARTY HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED UNDER THIS AGREEMENT (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT. EACH PARTY HERETO
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
THE OTHER PARTY HERETO WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT
IT AND THE OTHER PARTY HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION 20.

 

SECTION 21.        Counterparts;
Effectiveness.

 

This Agreement may be executed
in two or more counterparts, each of which shall be an original, but all of which together shall constitute one and the same instrument.
This Agreement shall become effective when each Party shall have received a counterpart hereof signed by the other Party. Any counterpart
may be executed by .pdf signature and such .pdf signature shall be deemed an original.

 

[SIGNATURE PAGE FOLLOWS]

 

    - 9 -

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the date first above written.

 

	 	AVIRAGEN THERAPEUTICS, INC.
	 	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	 
	 	 
	 	BIOTA SCIENTIFIC
    MANAGEMENT PTY. LTD.
	 	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	 	                       
	 	By:	 
	 	Name:
	 	Title:
	 	 
	 	 
	 	BIOTA HOLDINGS PTY
    LTD
	 	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	 	 
	 	By:	 
	 	Name:
	 	Title:

 

[Signature Page to Protective Rights Agreement]

 

     

     

    

 

	 	HEALTHCARE ROYALTY PARTNERS III, L.P.
	 	 
	 	By: HealthCare Royalty GP III, LLC,
    its general partner
	 	 
	 	 	 
	 	By:	 
	 	 	Name:
 Title:

 

     - 2 -

     

    

 

SCHEDULE 5(b) 

TO 

PROTECTIVE RIGHTS AGREEMENT

 

Filing Offices

 

UCC:

 

Secretary of State of the State of Delaware

 

Fulton County, Georgia

 

Recorder of Deeds of the District of Columbia

 

PPSR:

 

The Personal Property Securities Register ("PPSR"),
maintained by:

 

Australian Financial Security Authority

 

GPO Box 1550

 

Adelaide SA 5001

 

Australia

 

     

     

    

 

SCHEDULE 5(d) 

TO

PROTECTIVE RIGHTS AGREEMENT

Office Locations, Type and Jurisdiction of Organization

 

A.            AVIRAGEN
THERAPEUTICS, INC.

 

Sole Place of Business and Chief Executive Office of Grantor:

 

Aviragen Therapeutics, Inc.

2500 Northwinds Parkway

Suite 100 

Alpharetta, GA 30009

 

Addresses of the Properties at which Grantor Maintains Records
Relating to the Collateral:

 

Aviragen Therapeutics, Inc.

2500 Northwinds Parkway

Suite 100 

Alpharetta, GA 30009

 

Jurisdiction of Organization:

Delaware

 

Type of Organization:

Corporation

 

B.            BIOTA
HOLDINGS PTY LTD

 

Sole Place of Business and Chief Executive Office of Grantor:

 

Unit 10 

585 Blackburn Road

Notting Hill, VIC 3168

Australia

 

     

     

    

 

Addresses of the Properties at which Grantor Maintains Records
Relating to the Collateral:

 

2500 Northwinds Parkway 

Suite 100 

Alpharetta, GA 30009

 

Jurisdiction of Organization:

 

Victoria, Australia

Type of Organization:

 

A registered Australian proprietary
company limited by shares.

 

C. BIOTA SCIENTIFIC MANAGEMENT
PTY. LTD.

 

Sole Place of Business and Chief Executive Office of Grantor:

 

Unit 10 

585 Blackburn Road

Notting Hill, VIC 3168

Australia

 

Addresses of the Properties at which Grantor Maintains Records
Relating to the Collateral:

 

2500 Northwinds Parkway 

Suite 100 

Alpharetta, GA 30009

 

Jurisdiction of Organization:

 

Victoria, Australia

Type of Organization:

 

A registered Australian proprietary company limited by shares.

 

     

     

    

 

SCHEDULE 5(e) 

TO 

PROTECTIVE RIGHTS AGREEMENT

 

Name Changes

 

1)      On
November 7, 2012, “Nabi Biopharmaceuticals” changed its name to “Biota Pharmaceuticals, Inc.”

 

2)      On
February 13, 2015, “Biota Holdings Limited” changed its name to “Biota Holdings Pty Ltd”

 

3)      On
April 11, 2016, “Biota Pharmaceuticals, Inc.” changed its name to “Aviragen Therapeutics, Inc.”

 

     

     

    

 

EXHIBIT I TO

PROTECTIVE RIGHTS AGREEMENT

 

SPECIAL POWER OF ATTORNEY

 

	STATE OF	)
	 	 
	 	)             ss.:
	COUNTY OF	)
	 	 

 

KNOW ALL MEN BY THESE PRESENTS, that each of AVIRAGEN
THERAPEUTICS, INC. (formerly known as Biota Pharmaceuticals, Inc.) (“Aviragen”), BIOTA HOLDINGS PTY
LTD (formerly known as Biota Holdings Limited) (“BHPL”), BIOTA SCIENTIFIC MANAGEMENT PTY. LTD. (“BSM”
and, together with Aviragen and BHPL, “Grantors”), hereby appoints and constitutes HEALTHCARE ROYALTY PARTNERS
III, L.P. (“HC Royalty”) and each of its successors and assignees, its true and lawful attorney, with full power
of substitution and with full power and authority to perform the following acts on behalf of Grantor upon any default under the Transaction
Documents that is continuing (a) to ask for, demand, collect, sue for, recover, compound, receive and give acquittance and receipts
for moneys due and to become due under or in respect of any of the Collateral, (b) to receive, endorse and collect any drafts or
other instruments, documents and chattel paper constituting Collateral in connection with clause (a) above, (c) to file any
claims or take any action or institute any proceedings that HC Royalty may in its good faith sole discretion deem necessary or desirable
for the collection of any of the Collateral, (d) to pay or discharge taxes or liens levied or placed upon or threatened against
the Collateral, the legality or validity thereof and the amounts necessary to discharge the same to be determined by HC Royalty in its
reasonable commercial judgment, any such payments made by HC Royalty to become obligations of Grantors to HC Royalty, due and payable
immediately without demand, and (e) to sign and endorse any invoices, drafts against debtors, verifications, notices and other documents
relating to the Collateral.

 

This Power of Attorney is made pursuant to a Protective
Rights Agreement, dated as of April 22, 2016 between Grantors and HC Royalty (the “Protective Rights Agreement”)
and is subject to the terms and provisions thereof. Terms used herein and not otherwise defined herein shall have the meanings given
to such terms in the Protective Rights Agreement. This Power of Attorney, being coupled with an interest, is irrevocable until the termination
of the Protective Rights Agreement in accordance with Section 14 thereof.

 

	Date:	 	 
	 	 

 

     

     

    

 

	 	AVIRAGEN THERAPEUTICS, INC.
	 	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	 
	 	BIOTA SCIENTIFIC MANAGEMENT PTY. LTD.
	 	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	 
	 	BIOTA HOLDINGS PTY LTD
	 	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	 	 
	 	By:	                    
	 	Name:
	 	Title:

 

[Signature Page to Special Power of Attorney]

 

     

     

    

 

	PRESS RELEASE	

FOR IMMEDIATE RELEASE

 

 

AVIRAGEN THERAPEUTICS COMPLETES ROYALTY DEAL
WITH HEALTHCARE ROYALTY PARTNERS FOR PROCEEDS OF $20 

MILLION

 

Non-Dilutive Financing Provides for Company’s
Continued Participation in Future Royalties

 

ATLANTA, GA -- April 25, 2016 – Aviragen Therapeutics, Inc.
(NASDAQ: AVIR; formerly Biota Pharmaceuticals, Inc.) a pharmaceutical company that is developing the next generation of antivirals,
today announced that it has signed a definitive agreement to receive a cash payment of $20 million from HealthCare Royalty Partners in
exchange for an undisclosed portion of the Company’s royalty rights related to Inavir® , an inhaled neuraminidase
inhibitor that is approved in Japan for the treatment and prevention of influenza. Aviragen plans to use the non-dilutive proceeds to
advance its pipeline of direct-acting antivirals in development to treat infections that have limited therapeutic options.

 

“This transaction allows us to partially monetize our royalty
stream from Inavir® for significant cash consideration, while also retaining the opportunity to benefit from future upside
potential of the product”, said Mark P. Colonnese, Executive Vice President and Chief Financial Officer of Aviragen. “These
proceeds further enhance our balance sheet as we continue to execute our strategic plan that will deliver multiple Phase 2 data readouts
in the second half of 2016.”

 

“We have been following Inavir® for an extended
period and have seen consistently robust sales growth year-over-year as it has established a leading market position among flu medications
in Japan,” commented Todd C. Davis, co-founder and Managing Partner of HealthCare Royalty Partners. “This investment is consistent
with our strategy to invest in market-leading pharmaceutical products marketed by strong commercial organizations with attractive risk-reward
profiles.”

 

FBR Capital Markets & Co. acted as exclusive financial advisor
to Aviragen Therapeutics, Inc. in connection with this transaction.

 

About Aviragen Therapeutics, Inc.

Aviragen Therapeutics is focused on the discovery and development
of the next generation of direct-acting antivirals to treat infections that have limited therapeutic options and affect a significant
number of patients globally. The Company has three product candidates in active clinical development: These include vapendavir, an oral
treatment for human rhinovirus upper (HRV) respiratory infections in moderate-to-severe asthmatics currently being evaluated in the Phase
2b SPIRITUS trial; BTA585, an oral fusion protein inhibitor that has received Fast Track designation by the U.S. FDA, in Phase 2 development
for the treatment and prevention of respiratory syncytial virus (RSV) infections; and BTA074, a topical antiviral treatment in Phase
2 development for condyloma caused by human papillomavirus types 6 & 11. For additional information about the Company, please
visit www.aviragentherapeutics.com.

 

About Inavir®

Since its launch in 2010, Inavir® (laninamivir
octanoate) has become the leading treatment for influenza in Japan. The product is taken via a single inhaled dose, which can be more
convenient than other flu medications that require several days of dosing. Inavir® is sold in Japan by Daiichi Sankyo
and has been approved for both treatment and prevention of the influenza A and influenza B viruses.

 

     

     

    

 

About HealthCare Royalty Partners 

HealthCare Royalty Partners (HCRP) is a global healthcare investment
firm focused on investing primarily in commercial stage healthcare product assets. HCRP has raised over $3 billion in committed capital
and is headquartered in Stamford, CT. Over the past decade, HCRP's senior professionals have completed more than 60 healthcare investments
totaling more than $2.6 billion of capital. For more information, visit www.healthcareroyalty.com.

 

Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 that involve known and unknown risks and uncertainties concerning Aviragen
Therapeutics’ business, operations and financial performance. Any statements that are not of historical facts may be deemed to
be forward-looking statements, including the timing of multiple Phase 2 data readouts. Various important factors could cause actual results,
performance, events or achievements to materially differ from those expressed or implied by forward-looking statements, including: the
U.S. Food and Drug Administration (FDA) or a similar regulatory body in another country, a data safety monitoring board, or an institutional
review board delaying, limiting, suspending or terminating the clinical development of any of the Company's product candidates at any
time for a lack of safety, tolerability, regulatory or manufacturing issues, or any other reason whatsoever; the Company's ability to
secure, manage and retain qualified third-party clinical research data management and contract manufacturing organizations upon which
it relies to assist in the design, development, implementation and execution of the clinical development of all its product candidates
and those organizations’ ability to successfully execute their contracted responsibilities; the Company’s ability to comply
with applicable government regulations in various countries and regions in which we are conducting, or expect to conduct, clinical trials;
and other cautionary statements contained elsewhere in this press release and in our Annual Report on Form 10-K, Quarterly Report
on Form 10-Q and our other reports filed with the Securities and Exchange Commission. There may be events in the future that the
Company is unable to predict, or over which it has no control, and the Company’s business, financial condition, results of operations
and prospects may change in the future. The Company may not update these forward-looking statements more frequently than quarterly unless
it has an obligation under U.S. Federal securities laws to do so.

 

Contacts: 

Mark Colonnese 

Executive Vice President and Chief Financial Officer 

Aviragen Therapeutics, Inc. 

(678) 221-3381 

mcolonnese@aviragentherapeutics.com

 

Beth DelGiacco 

Stern Investor Relations, Inc. 

(212) 362-1200 

beth@sternir.com 

John McKenna 

ICR for Healthcare Royalty Partners 

203-682-8252 

HCRPartners@icrinc.com

 

 

Aviragen Therapeutics, Inc. ● 2500
Northwinds Parkway, Suite 100 ● Alpharetta, GA 30009 ● Tel: (678) 221-3343

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